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Exhibit 10(x)  

 
 

WESTBRIDGE RESEARCH GROUP
  2001 STOCK OPTION PLAN    
  

        1.    PURPOSE.    This Stock Option Plan (the "Plan") is intended to serve as an incentive to, and to encourage stock
ownership by, certain eligible participants rendering services to Westbridge Research Group, a California corporation (the "Corporation"), and certain affiliates as set forth below, so that they may
acquire or increase their proprietary interest in the Corporation. 

        2.    ADMINISTRATION.    

        2.1.    Committee.    The Plan shall be administered by the Board of Directors of the Corporation (the "Board of
Directors") or a committee of two or more members appointed by the Board of Directors (the "Committee") who are Non-Employee Directors as defined in Rule 16b-3
promulgated under Section 16 of the Securities Exchange Act of 1934 and outside directors as defined in Treasury Regulation Section 1.162-27(e)(3). The Committee shall select
one of its members as Chairman and shall appoint a Secretary, who need not be a member of the Committee. The Committee shall hold meetings at such times and places as it may determine and minutes of
such meetings shall be recorded. Acts by a majority of the Committee in a meeting at which a quorum is present and acts approved in writing by a majority of the members of the Committee shall be valid
acts of the Committee. 

        2.2.    Term.    If the Board of Directors selects a Committee, the members of the Committee shall serve on the
Committee for the period of time determined by the Board of Directors and shall be subject to removal by the Board of Directors at any time. The Board of Directors may terminate the function of the
Committee at any time and resume all powers and authority previously delegated to the Committee. 

        2.3.    Authority.    The Committee shall have sole discretion and authority to grant options under the Plan to
eligible participants rendering services to the Corporation or any "parent" or "subsidiary" of the Corporation, as defined in Section 424 of the Internal Revenue Code of 1986, as amended (the
"Code") ("Parent or Subsidiary"), at such times, under such terms and in such amounts as it may decide. For purposes of this Plan and any Stock Option Agreement (as defined below), the term
"Corporation" shall include any Parent or Subsidiary, if applicable. Subject to the express provisions of the Plan, the Committee shall have complete discretion and authority to interpret the Plan, to
prescribe, amend and rescind the rules and regulations relating to the Plan, to determine the details and provisions of any Stock Option Agreement, to accelerate any options granted under the Plan and
to make all other determinations necessary or advisable for the administration of the Plan. 

        2.4.    Type of Option.    The Committee shall have full authority and discretion to determine, and shall specify,
whether the eligible individual will be granted options intended to qualify as incentive options under Section 422 of the Code ("Incentive Options") or options which are not intended to qualify
under Section 422 of the Code ("Non-Qualified Options"); provided, however, that Incentive Options shall only be granted to employees of the Corporation, or a Parent or Subsidiary
thereof, and shall be subject to the special limitations set forth herein attributable to Incentive Options. 

        2.5.    Interpretation.    The interpretation and construction by the Committee of any provisions of the Plan or of
any option granted under the Plan shall be final and binding on all parties having an interest in this Plan or any option granted hereunder. No member of the Committee shall be liable for any action
or determination made in good faith with respect to the Plan or any option granted under the Plan. 

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        3.    ELIGIBILITY.    

        3.1.    General.    All directors, officers, employees of and certain persons rendering services to the Corporation,
or any Parent or Subsidiary, relative to the Corporation's, or any Parent's or Subsidiaries', management, operation or development shall be eligible to receive options under the Plan. The selection of
recipients of options shall be within the sole and absolute discretion of the Committee. No person shall be granted an option under this Plan unless such person has executed the grant representation
letter set forth on Exhibit "A," as such Exhibit may be amended by the Committee from time to time and no person shall be granted an Incentive Option under this Plan unless such person is an employee
of the Corporation, or a Parent or Subsidiary, on the date of grant. No employee shall be granted more than 100,000 options in any one-year period. 

        3.2.    Termination of Eligibility.    

        3.2.1.        If an Optionee ceases to be employed by the Corporation, or its Parent or Subsidiary, is
no longer an officer or member of the Board of Directors of the Corporation or no longer performs services for the Corporation, or its Parent or Subsidiary for any reason (other than for "cause," as
hereinafter defined, or such Optionee's death), any option granted hereunder to such optionee shall expire three months after the date the occurrence giving rise to such termination of eligibility (or
1 year in the event an optionee is "disabled," as defined in Section 22(e)(3) of the Code) or upon the date it expires by its terms, whichever is earlier. Any option that has not vested
in the optionee as of the date of such termination shall immediately expire and shall be null and void. The Committee shall, in its sole and absolute discretion, decide, utilizing the provisions set
forth in Treasury Regulations Section 1.421-7(h), whether an authorized leave of absence or absence for military or governmental service, or absence for any other reason, shall
constitute termination of eligibility for purposes of this Section. 

	I.
	If
an Optionee ceases to be employed by the Corporation, or its Parent or Subsidiary, is no longer an officer or member of the Board of Directors of the Corporation, or no longer
performs services for the Corporation, or its Parent or Subsidiary and such termination is as a result of "cause," as hereinafter defined, then all options granted hereunder to such optionee shall
expire on the date of the occurrence giving rise to such termination of eligibility or upon the date it expires by its terms, whichever is earlier, and such optionee shall have no rights with respect
to any unexercised options. For purposes of this Plan, "cause" shall mean an optionee's personal dishonesty, misconduct, breach of fiduciary duty, incompetence, intentional failure to perform stated
obligations, willful violation of any law, rule, regulation or final cease and desist order, or any material breach of any provision of this Plan, any Stock Option Agreement or any employment
agreement. The Board of Directors shall have complete discretion and authority to determine whether the termination of the Optionee is for cause. 

        3.3.    Death of Optionee and Transfer of Option.    In the event an optionee shall die, an option may be exercised
(subject to the condition that no option shall be exercisable after its expiration and only to the extent that the optionee's right to exercise such option had accrued at the time of the optionee's
death) at any time within six months after the optionee's death by the executors or administrators of the optionee or by any person or persons who shall have acquired the option directly from the
optionee by bequest or inheritance. Any option that has not vested in the optionee as of the date of death or termination of employment, whichever is earlier, shall immediately expire and shall be
null and void. No option shall be transferable by the optionee other than by will or the laws of descent and distribution. 

        3.4.    Limitation on Incentive Options.    No person shall be granted any Incentive Option to the extent that the
aggregate fair market value of the Stock (as defined below) to which 

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such options are exercisable for the first time by the optionee during any calendar year (under all plans of the Corporation as determined under Section 422(d) of the Code) exceeds $100,000. 

        4.    IDENTIFICATION OF STOCK.    The Stock, as defined herein, subject to the options shall be shares of the
Corporation's authorized but unissued or acquired or reacquired common stock (the "Stock"). The aggregate number of shares subject to outstanding options shall not exceed 400,000 shares of Stock
(subject to adjustment as provided in Section 6). If any option granted hereunder shall expire or terminate for any reason without having been exercised in full, the unpurchased shares subject
thereto shall again be available for purposes of this Plan. 

        5.    TERMS AND CONDITIONS OF OPTIONS.    Any option granted pursuant to the Plan shall be evidenced by an agreement
("Stock Option Agreement") in such form as the Committee shall from time to time determine, which agreement shall comply with and be subject to the following terms and conditions: 

        5.1.    Number of Shares.    Each option shall state the number of shares of Stock to which it pertains. 

        5.2.    Option Exercise Price.    Each option shall state the option exercise price, which shall be determined by the
Committee; provided, however, that (i) the exercise price of any Incentive Option shall not be less than the fair market value of the Stock, as determined by the Committee, on the date of grant
of such option, (ii) the exercise price of any Incentive Option granted to an employee who owns more than 10% of the total combined voting power of all classes of the Corporation's stock, as
determined for purposes of Section 422 of the Code, shall not be less than 110% of the fair market value of the Stock, as determined by the Committee, on the date of grant of such option, and
(iii) the exercise price of any Non-Qualified Option shall not be less than 85% of the fair market value of the Stock, as determined by the Committee, on the date of grant of such
option. 

        5.3.    Term of Option.    The term of an option granted hereunder shall be determined by the Committee at the time of
grant, but shall not exceed ten years from the date of the grant. The term of any Incentive Option granted to an employee who owns more than 10% of the total combined voting power of all classes of
the Corporation's stock, as determined for purposes of Section 422 of the Code, shall in no event exceed five years from the date of grant. All options shall be subject to early termination as
set forth in this Plan. In no event shall any option be exercisable after the expiration of its term. 

        5.4.    Method of Exercise.    An option shall be exercised by written notice to the Corporation by the optionee (or
successor in the event of death) and execution by the optionee of an exercise representation letter in the form set forth on Exhibit "B," as such Exhibit may be amended by the Committee from time to
time. Such written notice shall state the number of shares with respect to which the option is being exercised and designate a time, during normal business hours of the Corporation, for the delivery
thereof ("Exercise Date"), which time shall be at least 30 days after the giving of such notice unless an earlier date shall have been mutually agreed upon. At the time specified in the written
notice, the Corporation shall deliver to the optionee at the principal office of the Corporation, or such other appropriate place as may be determined by the Committee, a certificate or certificates
for such shares. Notwithstanding the foregoing, the Corporation may postpone delivery of any certificate or certificates after notice of exercise for such reasonable period as may be required to
comply with any applicable listing requirements of any securities exchange. In the event an option shall be exercisable by any person other than the optionee, the required notice under this Section
shall be accompanied by appropriate proof of the right of such person to exercise the option. 

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        5.5.    Medium and Time of Payment.    The option exercise price shall be payable in full on or before the option
Exercise Date in cash or by certified or bank cashier's check. 

        5.6.    Fair Market Value.    The fair market value of a share of Stock on any relevant date shall be determined in
accordance with the following provisions: 

        5.6.1.        If the Stock at the time is neither listed nor admitted to trading on any stock exchange
nor traded in the over-the-counter market, then the fair market value shall be determined by the Committee after taking into account such factors as the Committee shall deem
appropriate. 

        5.6.2.        If the Stock is not at the time listed or admitted to trading on any stock exchange but
is traded in the over-the-counter market, the fair market value shall be the mean between the highest bid and lowest asked prices (or, if such information is available, the
closing selling price) of one share of Stock on the date in question in the over-the-counter market, as such prices are reported by the National Association of Securities
Dealers through its NASDAQ system or any successor system. If there are no reported bid and asked prices (or closing selling price) for the Stock on the date in question, then the mean between the
highest bid price and lowest asked price (or the closing selling price) on the last preceding date for which such quotations exist shall be determinative of fair market value. 

        5.6.3.        ]If the Stock is at the time listed or admitted to trading on any stock exchange, then
the fair market value shall be the closing selling price of one share of Stock on the date in question on the stock exchange determined by the Committee to be the primary market for the Stock as such
price is officially quoted in the composite tape of transactions on such exchange. If there is no reported sale of Stock on such exchange on the date in question, then the fair market value shall be
the closing selling price on the exchange on the last preceding date for which such quotation exists. 

        5.7.    Rights as a Shareholder.    An optionee or successor shall have no rights as a shareholder with respect to any
Stock underlying any option until the date of the issuance to such optionee of a certificate for such Stock. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights for which the record date is prior to the date such Stock certificate is issued, except as provided in Section 6. 

        5.8.    Modification, Extension and Renewal of Options.    Subject to the terms and conditions of the Plan, the
Committee may modify, extend or renew outstanding options granted under the Plan, or accept the
surrender of outstanding options (to the extent not exercised) and authorize the granting of new options in substitution therefor. 

        5.9.    Vesting and Restrictions.    The Committee shall have complete authority and discretion to set the terms,
conditions, restrictions, vesting schedules and other provisions of any option in the applicable Stock Option Agreement and shall have complete authority to require conditions and restrictions on any
Stock issued pursuant to this Plan. 

        5.10.    Other Provisions.    The Stock Option Agreements shall contain such other provisions, including without
limitation, restrictions or conditions upon the exercise of options, as the Committee shall deem advisable. 

        6.    ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.    

        6.1.    Subdivision or Consolidation.    Subject to any required action by shareholders of the Corporation, the number
of shares of Stock covered by each outstanding option, and the exercise price thereof, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock of the
Corporation resulting from a subdivision or 

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consolidation of shares, including, but not limited to, a stock split, reverse stock split, recapitalization, continuation or reclassification, or the payment of a stock dividend (but only on the
Stock) or any other increase or decrease in the number of such shares effected without receipt of consideration by the Corporation. Any fraction of a share subject to option that would otherwise
result from an adjustment pursuant to this Section shall be rounded downward to the next full number of shares without other compensation or consideration to the holder of such option. 

        6.2.    Capital Transactions.    Upon a sale or exchange of all or substantially all of the assets of the Corporation,
a merger or consolidation in which the Corporation is not the surviving corporation, a merger, reorganization or consolidation in which the Corporation is the surviving corporation and shareholders of
the Corporation exchange their stock for securities or property, a liquidation of the Corporation or similar transaction ("Capital Transaction"), this Plan and each option issued under this Plan,
whether vested or unvested, shall terminate, unless such options are assumed by a successor corporation in a merger or consolidation, immediately prior to such Capital Transaction; provided, however,
that unless the outstanding options are assumed by a successor corporation in a merger or consolidation, subject to terms approved by the Committee, all optionees will have the right, during the
30 days prior to such Capital Transaction, to exercise all vested options. The Committee may (but shall not be obligated to) (i) accelerate the vesting of any option or (ii) apply
the foregoing provisions, including but not limited to termination of this Plan and any options granted pursuant to the Plan, in the event there is a sale of 50% or more of the stock of the
Corporation in any two year period or a Capital Transaction or a transaction similar to a Capital Transaction. 

        6.3.    Adjustments.    To the extent that the foregoing adjustments relate to stock or securities of the Corporation,
such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. 

        6.4.    Ability to Adjust.    The grant of an option pursuant to the Plan shall not affect in any way the right or
power of the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or
any part of its business or assets. 

        6.5.    Notice of Adjustment.    Whenever the Corporation shall take any action resulting in any adjustment provided
for in this Section, the Corporation shall forthwith deliver notice of such action to each optionee, which notice shall set forth the number of shares subject to the option and the exercise price
thereof resulting from such adjustment. 

        6.6.    Limitation on Adjustments.    Any adjustment, assumption or substitution of an Incentive Option shall comply
with Section 425 of the Code, if applicable. 

        7.    NONASSIGNABILITY.    Options granted under this Plan may not be sold, pledged, assigned or transferred in any
manner other than by will or by the laws of intestate succession, and may be exercised during the lifetime of an optionee only by such optionee. Any transfer in violation of this Section shall void
such option and any Stock Option Agreement entered into by the optionee and the Corporation regarding such transferred option shall be void and have no further force or effect. No option shall be
pledged or hypothecated in any way, nor shall any option be subject to execution, attachment or similar process 

        8.    NO RIGHT OF EMPLOYMENT.    Neither the grant nor exercise of any option nor anything in this Plan shall impose
upon the Corporation or any other corporation any obligation to employ or continue to employ any optionee. The right of the Corporation and any other corporation to terminate any employee shall not be
diminished or affected because an option has been granted to such employee. 

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        9.    TERM OF PLAN.    This Plan is effective on the date the Plan is adopted by the Board of Directors and options
may be granted pursuant to the Plan from time to time within a period of ten (10) years from such date, or the date of any required shareholder approval required under the Plan, if earlier.
Termination of the Plan shall not affect any option theretofore granted. 

        10.    AMENDMENT OF THE PLAN.    The Board of Directors of the Corporation may, subject to any required shareholder
approval, suspend, discontinue or terminate the Plan, or revise or amend it in any respect whatsoever with respect to any shares of Stock at that time not subject to options. 

        11.    APPLICATION OF FUNDS.    The proceeds received by the Corporation from the sale of Stock pursuant to options
may be used for general corporate purposes. 

        12.    RESERVATION OF SHARES.    The Corporation, during the term of this Plan, shall at all times reserve and keep
available such number of shares of Stock as shall be sufficient to satisfy the requirements of the Plan. 

        13.    NO OBLIGATION TO EXERCISE OPTION.    The granting of an option shall not impose any obligation upon the
optionee to exercise such option. 

        14.    APPROVAL OF BOARD OF DIRECTORS AND SHAREHOLDERS.    The Plan shall not take effect until approved by the Board
of Directors of the Corporation. This Plan shall be approved by a vote of the shareholders within 12 months from the date of approval by the Board of Directors. In the event such shareholder
vote is not obtained, all options granted hereunder, whether vested or unvested, shall be null and void. Further, any stock acquired pursuant to the exercise of any options under this Agreement may
not count for purposes of determining whether shareholder approval has been obtained. 

        15.    WITHHOLDING TAXES.    Notwithstanding anything else to the contrary in this Plan or any Stock Option Agreement,
the exercise of any option shall be conditioned upon payment by such optionee in cash, or other provisions satisfactory to the Committee, of all local, state, federal or other withholding taxes
applicable, in the Committee's judgment, to the exercise or to later disposition of shares acquired upon exercise of an option (including any repurchase of an option or the Stock). 

        16.    PARACHUTE PAYMENTS.    Any outstanding option under the Plan may not be accelerated to the extent any such
acceleration of such option would, when added to the present value of other payments in the nature of compensation which becomes due and payable to the optionee would result in the payment to such
optionee of an excess parachute payment under Section 280G of the Code. The existence of any such excess parachute payment shall be determined in the sole and absolute discretion of the
Committee. 

        17.    SECURITIES LAWS COMPLIANCE.    Notwithstanding anything contained herein, the Corporation shall not be
obligated to grant any option under this Plan or to sell, issue or effect any transfer of any Stock unless such grant, sale, issuance or transfer is at such time effectively (i) registered or
exempt from registration under the Securities Act of 1933, as amended (the "Act") and (ii) qualified or exempt from qualification under the California Corporate Securities Law of 1968 and any
other applicable state
securities laws. As a condition to exercise of any option, each optionee shall make such representations as may be deemed appropriate by counsel to the Corporation for the Corporation to use any
available exemption from registration under the Act or qualification under any applicable state securities law. 

        18.    RESTRICTIVE LEGENDS.    The certificates representing the Stock issued upon exercise of options granted
pursuant to this Plan will bear the following legends giving notice of restrictions on transfer under the Act and this Plan, as follows: 

	(a)
	THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED OR TRANSFERRED IN A TRANSACTION WHICH WAS NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN 

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EXEMPTION
AFFORDED BY SUCH ACT. NO SALE OR TRANSFER OF THESE SHARES SHALL BE MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT BE REQUIRED TO GIVE ANY EFFECT TO ANY SUCH
TRANSACTION UNLESS (A) SUCH TRANSACTION SHALL HAVE BEEN DULY REGISTERED UNDER THE ACT OR (B) THE ISSUER SHALL HAVE FIRST RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH
REGISTRATION IS NOT REQUIRED. 

	(b)
	Any
other legends required by applicable securities laws as determined by the Committee. 

        19.    NOTICES.    Any notice to be given under the terms of the Plan shall be addressed to the Corporation in care of
its Secretary at its principal office, and any notice to be given to an optionee shall be addressed to such optionee at the address maintained by the Corporation for such person or at such other
address as the optionee may specify in writing to the Corporation. 

        As
adopted by the Board of Directors as of November 6, 2000. 

	 	 	WESTBRIDGE RESEARCH GROUP,

a California corporation
	

 	
 	

By:	

/s/  CHRISTINE KOENEMANN      

	 	 	Its:	President

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EXHIBIT A    
  

                                        ,
2001 

	Westbridge Research Group	 	 
	
	 	 
	
	 	 

        Re:  2001
Stock Option Plan 

To
Whom It May Concern: 

        This
letter is delivered to Westbridge Research Group, a California corporation (the "Corporation"), in connection with the grant
to                        (the "Optionee") of an option (the
"Option") to purchase            shares of common stock of the Corporation (the "Stock") pursuant to the Westbridge Research Group 2001 Stock Option Plan
dated            (the "Plan"). The
Optionee understands that the Corporation's receipt of this letter executed by the Optionee is a condition to the Corporation's willingness to grant the Option to the Optionee. 

        The
Optionee acknowledges that the grant of the Option by the Corporation is in lieu of any and all other promises of the Corporation to the Optionee, whether written or oral, express of
implied, regarding the grant of options or other rights to acquire Stock. Accordingly, in anticipation of the grant of the Option, the Optionee hereby relinquishes all rights, if any, to acquire stock
of the Corporation. 

        In
addition, the Optionee makes the following representations and warranties with the understanding that the Corporation will rely upon them in the Corporation's determination of whether
the grant of the Option meets the requirements of the "private offering" exemption provided in Section 25102(f) of the California Corporations Code and certain exemptions provided under the
Securities Act of 1933, as amended. 

        1.    The
Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee has carefully reviewed the Plan and Agreement. 

        2.    The
Option and the Stock will be acquired by the Optionee for investment only, for the Optionee's own account, and not with a view to or for sale in connection with any
distribution of the Option or the Stock. The Optionee will not take, or cause to be taken, any action which would cause the Optionee, or any entity or person affiliated with the Optionee, to be deemed
an underwriter with respect to the Option or the Stock. 

        3.    The
Optionee either: 

        a.    has
a preexisting personal or business relationship with the Corporation or any of its officers, directors or controlling persons of a nature and duration as would allow
the Optionee to be aware of the character, business acumen, general business and financial circumstances of the Corporation or of the person with whom such relationship exists; or 

        b.    by
reason of the Optionee's business or financial experience, or the business or financial experience of the Optionee's professional advisor who is unaffiliated with and
is not compensated by the Corporation or any affiliate or selling agent of the Corporation, directly or indirectly, the Optionee has the capacity to protect the Optionee's interests in connection with
the grant of the Option and the purchase of the Stock. 

        4.    The
Optionee acknowledges that an investment in the Corporation represents a speculative investment and a high degree of risk. The Optionee acknowledges that the Optionee
has had the opportunity to obtain and review all information from the Corporation necessary to make a reasonably 

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informed investment decision and that the Optionee has had all questions asked of the Corporation answered to the reasonable satisfaction of the Optionee. The Optionee is able to bear the economic
risk of an investment in the Option and the Stock. 

        5.    The
grant of the Option has not been accompanied by the publication of any advertisement. 

        6.    The
Optionee understands and acknowledges that the Stock has not been, and will not be, registered under the Securities Act of 1933, as amended, or qualified under the
California Corporate Securities Law of 1968. The Optionee understands and acknowledges that the Stock may not be sold without compliance with the registration requirements of federal and applicable
state securities laws unless an exemption from such laws is available. The Optionee understands that the certificate representing the Stock shall bear the legends set forth in the Plan. 

        7.    The
Optionee understands and acknowledges that the Option and the Stock are subject to the terms and conditions of the Plan. 

        8.    The
Optionee understands and agrees that, at the time of exercise of any part of the Option for Stock, the Optionee may be required to provide the Corporation with
additional representations, warranties and/or covenants similar to those contained in this letter. 

        9.    The
Optionee is a resident of the State of                        . 

        10.  The
Optionee will notify the Corporation immediately of any change in the above information which occurs before the Option is exercised in full by the Optionee. 

        The
foregoing representations and warranties are given on                        , 2001
at                        . 

	 	OPTIONEE:
	

 	

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EXHIBIT B    
  

                                        
        , 2001
 

	Westbridge Research Group	 	 
	
	 	 
	
	 	 

        Re:  2001
Stock Option Plan 

To
Whom It May Concern: 

        I
(the "Optionee") hereby exercise my right to purchase            shares of common stock (the "Stock") of Westbridge Research Group, a California corporation (the "Corporation"),
pursuant to the Westbridge Research Group 2001 Stock Option Plan dated                        , 2001 (the "Plan") and Stock Option
Agreement (the "Agreement") dated                        ,
            . As
provided in such Plan, I deliver herewith payment as set forth in the Plan in the amount of the aggregate option exercise price. Please deliver to me at my address as set forth above stock
certificates representing the subject shares registered in my name    (and (spouse), as (style of vesting)). 

        The
Optionee hereby represents and agrees as follows: 

        1.    The
Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee has carefully reviewed the Plan and Agreement. 

        2.    The
Optionee either: 

	a.
	has
a preexisting personal or business relationship with the Corporation or any of its officers, directors or controlling persons of a nature and duration as would allow the
undersigned to be aware of the character, business acumen, general business and financial circumstances of the Corporation or of the person with whom such relationship exists; or

	b.
	by
reason of the Optionee's business or financial experience or the business or financial experience of the Optionee's professional advisor(s) who is (are) unaffiliated with and is
(are) not compensated by the Corporation or any affiliate or selling agent of the Corporation, directly or indirectly, has the capacity to protect the Optionee's interests in connection with the
purchase of nonqualified stock options of the Corporation and Stock issuable upon the exercise thereof. 

        3.    The
Optionee is able to bear the economic risk of his investment in the stock options of the Corporation and the Stock issuable upon exercise thereof. 

        4.    The
Optionee acknowledges that an investment in the Corporation represents a speculative investment and a high degree of risk. The Optionee acknowledges that the Optionee
has had the opportunity to obtain and review all information from the Corporation necessary to make a reasonably informed investment decision and that the Optionee has had all questions asked of the
Corporation answered to the reasonable satisfaction of the Optionee. 

        5.    The
grant of Options for Stock and the exercise of the Options has not been accompanied by the publication of any advertisement. 

        6.    The
Optionee understands and acknowledges that the Stock has not, and will not, be registered under the Securities Act of 1933, as amended, or qualified under the
California Securities Law of 1968. The Optionee understands and acknowledges that the Stock may not be sold without compliance with the registration and qualification requirements of federal and
applicable state 

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securities laws unless exemptions from such laws are available. The Optionee understands that the certificate representing the Stock shall bear the legends set forth in the Plan. 

        7.    The
Optionee is a resident of the State of                        . 

        8.    The
Optionee hereby is purchasing for the Optionee's own account and not with a view to or for sale in connection with any distribution of the stock options of the
Corporation or any Stock issuable upon exercise thereof. 

        The
foregoing representations and warranties are given on                        , 2001
at                        . 

	 	OPTIONEE:
	

 	

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QuickLinks

WESTBRIDGE RESEARCH GROUP 2001 STOCK OPTION PLAN

EXHIBIT A

EXHIBIT B<PAGE>
                                                                     EXHIBIT 4.1

                                    INDENTURE

                                     Between

                          THE COLONIAL BANCGROUP, INC.

                                       and

                              THE BANK OF NEW YORK
                                   AS TRUSTEE

                           Dated as of _____ __, 2002

                         JUNIOR SUBORDINATED DEBENTURES

<PAGE>

                                    TIE-SHEET

         Tie-Sheet of provisions of the Trust Indenture Act with Indenture,
dated as of ______ __, 2002, between The Colonial BancGroup, Inc. and The Bank
of New York, Trustee:

TRUST INDENTURE ACT SECTION                INDENTURE SECTION
---------------------------                ------------------

         310(a)(1)...........................  6.09
         310(a)(2)...........................  6.09
         310(a)(3)...........................  N/A
         310(a)(4)...........................  N/A
         310(b)..............................  6.08; 6.10(a), (b) and (d)
         310(c)..............................  N/A
         311(a) and (b)......................  6.13
         11(c)...............................  N/A
         312(a)..............................  4.01; 4.02(a)
         312(b) and (c)......................  4.02(b) and (c)
         313(a)..............................  4.04(a)  N/A
         313(b)..............................  4.04(a) 4.04(b)
         313(d)..............................  4.04(b)
         314(a)..............................  4.03
         314(b)..............................  N/A
         314(c)(1) and (2)...................  13.06
         314(c)(3)...........................  N/A
         314(d)..............................  N/A
         314(e)..............................  13.06
         314(f)..............................  N/A
         315(a), (c) and (d).................  6.01
         315(b)..............................  5.08
         315(e)..............................  5.09
         316(a)(1)...........................  5.07
         316(a)(2)...........................  Omitted
         316(a) last sentence................  7.04
         316(b)..............................  5.04
         317(a)..............................  5.02
         317(b)..............................  3.04(a)
         318(a)..............................  13.07

  THIS TIE-SHEET IS NOT PART OF THE INDENTURE AS EXECUTED.

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                               Page
                                                                               ----
<S>                                                                            <C>
                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01.     Definitions..................................................  1

                                   ARTICLE II

                                   SECURITIES

SECTION 2.01.     Forms Generally..............................................  7
SECTION 2.02.     Form of Trustee's Certificate of Authentication..............  8
SECTION 2.03.     Amount Unlimited; Issuable in Series.........................  8
SECTION 2.04.     Authentication and Dating.................................... 10
SECTION 2.05.     Date and Denomination of Securities.......................... 11
SECTION 2.06.     Execution of Securities...................................... 12
SECTION 2.07.     Exchange and Registration of Transfer of Securities.......... 13
SECTION 2.08.     Mutilated, Destroyed, Lost or Stolen Securities.............. 14
SECTION 2.09.     Temporary Securities......................................... 14
SECTION 2.10.     Cancellation of Securities Paid, etc. ....................... 15
SECTION 2.11.     Global Securities............................................ 15
SECTION 2.12.     CUSIP Numbers................................................ 16

                                   ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01.     Payment of Principal, Premium, if any, and Interest.......... 16
SECTION 3.02.     Offices for Notices and Payments, etc. ...................... 17
SECTION 3.03.     Appointments to Fill Vacancies in Trustee's Office........... 17
SECTION 3.04.     Provision as to Paying Agent................................. 18
SECTION 3.05.     Certificate to Trustee....................................... 18
SECTION 3.06.     Compliance with Consolidation Provisions..................... 19
SECTION 3.07.     Limitation on Dividends; Transactions with Affiliates........ 19
SECTION 3.08.     Covenants as to Colonial Capital Trusts...................... 19
SECTION 3.09.     Notice of Default............................................ 20

                                   ARTICLE IV

        SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION 4.01.     Securityholders' Lists....................................... 20
SECTION 4.02.     Preservation and Disclosure of Lists......................... 20
SECTION 4.03.     Reports by Company........................................... 21
SECTION 4.04.     Reports by the Trustee....................................... 22
</TABLE>

                                       ii

<PAGE>

<TABLE>
                                    ARTICLE V

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
<S>                                                                          <C>
SECTION 5.01.     Events of Default........................................   23
SECTION 5.02.     Payment of Securities on Default; Suit Therefor..........   25
SECTION 5.03.     Application of Moneys Collected by Trustee...............   26
SECTION 5.04.     Proceedings by Securityholders...........................   27
SECTION 5.05.     Proceedings by Trustee...................................   28
SECTION 5.06.     Remedies Cumulative and Continuing.......................   28
SECTION 5.07.     Direction of Proceedings and Waiver of Defaults by
                  Majority of Securityholders..............................   28
SECTION 5.08.     Notice of Defaults.......................................   29
SECTION 5.09.     Undertaking to Pay Costs.................................   30

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

SECTION 6.01.     Duties and Responsibilities of Trustee...................   30
SECTION 6.02.     Reliance on Documents, Opinions, etc. ...................   31
SECTION 6.03.     No Responsibility for Recitals, etc. ....................   33
SECTION 6.04.     Trustee, Authenticating Agent, Paying Agents,
                  Transfer Agents or Registrar May Own Securities..........   33
SECTION 6.05.     Moneys to be Held in Trust...............................   33
SECTION 6.06.     Compensation and Expenses of Trustee.....................   33
SECTION 6.07.     Officers' Certificate as Evidence........................   34
SECTION 6.08.     Conflicting Interest of Trustee..........................   34
SECTION 6.09.     Eligibility of Trustee...................................   34
SECTION 6.10.     Resignation or Removal of Trustee........................   35
SECTION 6.11.     Acceptance by Successor Trustee..........................   36
SECTION 6.12.     Succession by Merger, etc. ..............................   37
SECTION 6.13.     Limitation on Rights of Trustee as a Creditor............   37
SECTION 6.14.     Authenticating Agents....................................   37

                                   ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

SECTION 7.01.     Action by Securityholders................................   39
SECTION 7.02.     Proof of Execution by Securityholders....................   39
SECTION 7.03.     Who Are Deemed Absolute Owners...........................   40
SECTION 7.04.     Securities Owned by Company Deemed Not Outstanding.......   40
SECTION 7.05.     Revocation of Consents; Future Holders Bound.............   40
</TABLE>

                                       iii

<PAGE>

                                  ARTICLE VIII

                           SECURITYHOLDERS' MEETINGS

SECTION 8.01.     Purposes of Meetings......................................  41
SECTION 8.02.     Call of Meetings by Trustee...............................  41
SECTION 8.03.     Call of Meetings by Company or Securityholders............  41
SECTION 8.04.     Qualifications for Voting.................................  42
SECTION 8.05.     Regulations...............................................  42
SECTION 8.06.     Voting....................................................  42

                                   ARTICLE IX

                            SUPPLEMENTAL INDENTURES

SECTION 9.01.     Supplemental Indentures without Consent of
                  Securityholders...........................................  43
SECTION 9.02.     Supplemental Indentures with Consent of Securityholders...  44
SECTION 9.03.     Compliance with Trust Indenture Act; Effect of
                  Supplemental Indentures...................................  45
SECTION 9.04.     Notation on Securities....................................  46
SECTION 9.05.     Evidence of Compliance of Supplemental Indenture to be
                  Furnished Trustee.........................................  46

                                   ARTICLE X

               CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

SECTION 10.01.    Company May Consolidate, etc., on Certain Terms...........  46
SECTION 10.02.    Successor Corporation to be Substituted for Company.......  47
SECTION 10.03.    Opinion of Counsel to be Given Trustee....................  47

                                   ARTICLE XI

                    SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 11.01.    Discharge of Indenture....................................  48
SECTION 11.02.    Deposited Moneys and U.S. Government Obligations to be
                  Held in Trust by Trustee..................................  48
SECTION 11.03.    Paying Agent to Repay Moneys Held.........................  49
SECTION 11.04.    Return of Unclaimed Moneys................................  49
SECTION 11.05.    Defeasance Upon Deposit of Moneys
                  or U.S. Government Obligations............................  49

                                  ARTICLE XII

        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01.    Indenture and Securities Solely Corporate Obligations.....  50

                                       iv

<PAGE>

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION 13.01.    Successors................................................  51
SECTION 13.02.    Official Acts by Successor Corporation....................  51
SECTION 13.03.    Surrender of Company Powers...............................  51
SECTION 13.04.    Addresses for Notices, etc. ..............................  51
SECTION 13.05.    Governing Law.............................................  52
SECTION 13.06.    Evidence of Compliance with Conditions Precedent..........  52
SECTION 13.07.    Trust Indenture Act to Control............................  52
SECTION 13.08.    Table of Contents, Headings, etc. ........................  52
SECTION 13.09.    Execution in Counterparts.................................  52
SECTION 13.10.    Separability..............................................  53

                                   ARTICLE XIV

         REDEMPTION OF SECURITIES - MANDATORY AND OPTIONAL SINKING FUND

SECTION 14.01.    Applicability of Article..................................  53
SECTION 14.02.    Notice of Redemption; Selection of Securities.............  53
SECTION 14.03.    Payment of Securities Called for Redemption...............  54
SECTION 14.04.    Mandatory and Optional Sinking Fund.......................  54

                                   ARTICLE XV

                           SUBORDINATION OF SECURITIES

SECTION 15.01.    Agreement to Subordinate..................................  56
SECTION 15.02.    Default on Senior Indebtedness............................  57
SECTION 15.03.    Liquidation; Dissolution; Bankruptcy......................  57
SECTION 15.04.    Subrogation...............................................  58
SECTION 15.05.    Trustee to Effectuate Subordination.......................  59
SECTION 15.06.    Notice by the Company.....................................  59
SECTION 15.07.    Rights of the Trustee; Holders of Senior Indebtedness.....  60
SECTION 15.08.    Subordination May Not Be Impaired.........................  60

                                        v

<PAGE>

         THIS INDENTURE, dated as of _____ __, 2002, between The Colonial
BancGroup, Inc., a Delaware corporation (hereinafter sometimes called the
"Company"), and The Bank of New York, a New York banking corporation, as trustee
(hereinafter sometimes called the "Trustee"),

                              W I T N E S S E T H :

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issuance from time to time of its debt securities to be issued in one or
more series (the "Securities") up to such principal amount or amounts as may
from time to time be authorized in accordance with the terms of this Indenture
and, to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution, delivery and performance of this Indenture; and

     WHEREAS, all acts and things necessary to make this Indenture a valid and
legally binding agreement according to its terms, have been done and performed;

     NOW, THEREFORE, This Indenture Witnesseth:

     In consideration of the premises, and the purchase of the Securities by the
Securityholders (as defined below) thereof, the Company covenants and agrees
with the Trustee for the benefit of the respective Securityholders from time to
time, as follows:

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.01.     Definitions.
                  ------------

     The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of
this Indenture and any indenture supplemental hereto shall have the respective
meanings specified in this Section 1.01. All other terms used in this Indenture
that are defined in the Trust Indenture Act of 1939, as amended (the "Trust
Indenture Act"), or which are by reference therein defined in the Securities Act
of 1933, as amended (the "Securities Act"), shall (except as herein otherwise
expressly provided or unless the context otherwise requires) have the meanings
assigned to such terms in the Trust Indenture Act and in the Securities Act as
in force at the date of this Indenture as originally executed. All accounting
terms used but not expressly defined herein shall have the meanings assigned to
such terms in accordance with accounting principles generally accepted in the
United States and the term "generally accepted accounting principles" means such
accounting principles as are generally accepted in the United States at the time
of any computation. The words "herein", "hereof" and "hereunder" and other words
of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision. Any reference to the singular includes
the plural and vice versa (unless the context otherwise requires).

     "Additional Sums" has the meaning specified in Section 3.01.

     "Affiliate" means, with respect to a specified Person, (a) any Person
directly or indirectly owning, controlling or holding with power to vote, 10% or
more of the outstanding Voting

                                       1

<PAGE>

Securities or other ownership interests of the specified Person, (b) any
Person 10% or more of whose outstanding Voting Securities or other ownership
interests are directly or indirectly owned, controlled or held with power to
vote by the specified Person, (c) any Person directly or indirectly controlling,
controlled by, or under common control with the specified Person, (d) a
partnership in which the specified Person is a general partner, (e) any officer
or director of the specified Person, and (f) if the specified Person is an
individual, any entity of which the specified Person is an officer, director or
general partner.

     "Allocable Amounts" when used with respect to any Senior Indebtedness,
means all amounts due or to become due on such Senior Indebtedness less, if
applicable, any amount which would have been paid to, and retained by, the
Holders of such Senior Indebtedness, (whether as a result of the receipt of
payments by the Holders of such Senior Indebtedness from the Company or any
other obligor thereon or from any Holders of, or trustee in respect of, other
indebtedness that is subordinate and junior in right of payment to such Senior
Indebtedness pursuant to any provision of such indebtedness for the payment over
of amounts received on account of such indebtedness to the Holders of such
Senior Indebtedness or otherwise) but for the fact that such Senior Indebtedness
is subordinate or junior in right of payment to (or subject to a requirement
that amounts received on such Senior Indebtedness be paid over to obligees on)
trade accounts payable or accrued liabilities arising in the ordinary course of
business.

     "Authenticating Agent" shall mean any agent or agents of the Trustee which
at the time shall be appointed and acting pursuant to Section 6.14.

     "Bankruptcy Law" shall mean Title 11, U.S. Code, or any similar Federal or
State law for the relief of debtors.

     "Board of Directors" shall mean the Board of Directors or any other duly
authorized committee thereof of the Company.

     "Board Resolution" shall mean a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification.

     "Business Day" shall mean, unless otherwise specified in a Security or in
an Officers' Certificate or indenture supplemental hereto with respect to any
series of Securities, any day other than a day on which commercial banking
institutions in The City of New York are authorized or obligated by law,
executive order or regulation to close.

     "Certificate of Authentication" shall mean the certificate issued by the
Trustee or the Authenticating Agent authenticating a Security issued under the
Indenture.

     "Colonial BancGroup Common Stock" shall mean the Common Stock, par value
$0.01 per share, of the Company or any other class of stock resulting from
changes or reclassifications of such Common Stock consisting solely of changes
in par value, or from par value to no par value, or from no par value to par
value.

                                       2

<PAGE>

     "Colonial Capital Trust" shall mean Colonial Capital Trust III, a Delaware
business trust, or any other similar trust sponsored by the Company and created
for the purpose of issuing its securities in connection with the issuance of
Securities under this Indenture.

     "Commission" shall mean the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or, if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.

     "Common Securities" shall mean undivided beneficial interests in the assets
of a Colonial Capital Trust which rank pari passu with Preferred Securities
issued by such Colonial Capital Trust; provided, however, that upon the
occurrence of an Event of Default, the rights of registered holders of Common
Securities to payment in respect of distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights of registered holders of
Preferred Securities.

     "Common Securities Guarantee" shall mean any guarantee that the Company may
execute for the benefit of registered holders of the Common Securities of a
Colonial Capital Trust.

     "Company" shall mean The Colonial BancGroup, Inc., a Delaware corporation,
and, subject to the provisions of Article X hereof, shall include its successors
and assigns.

     "Compound Interest" shall mean interest accrued on any overdue principal
and (to the extent enforceable under applicable law) on any overdue interest at
the interest rate payable in respect of a Security, compounded as specified in
the applicable Security.

     "Custodian" shall mean any receiver, trustee, assignee, liquidator, or
similar official under any Bankruptcy Law.

     "Declaration", with respect to a Colonial Capital Trust, shall mean the
governing instrument of such Colonial Capital Trust.

     "Default" means any event, act or condition that, with notice or lapse of
time, or both, would constitute an Event of Default.

     "Defaulted Interest" shall have the meaning given to such term in Section
2.05.

     "Depository Institution" shall mean, with respect to Securities of any
series, for which the Company shall determine that such Securities will be
issued as a Global Security, The Depository Trust Company, another clearing
agency, or any successor registered as a clearing agency under the Exchange Act,
or other applicable statute or regulation.

     "Event of Default" shall mean any event, act or condition specified in
Section 5.01, continued for the period of time, if any, and after the giving of
the notice, if any, therein designated.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

                                       3

<PAGE>

     "Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depository
Institution or pursuant to the Depository Institution's instruction, all in
accordance with the Indenture, which shall be registered in the name of the
Depository Institution or its nominee.

     "Indebtedness" shall mean, whether recourse as to all or a portion of the
assets of the Company and whether or not contingent, every obligation of the
Company for money borrowed, whether or not evidenced by bonds, debentures, notes
or other written instruments, except that "Indebtedness" shall not include trade
accounts payable accrued liabilities arising in the ordinary course of business.

     "Indebtedness Ranking on a Parity with the Securities" shall mean (i)
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks pari passu with and not prior or senior to the Securities in the
right of payment upon the happening of the dissolution, winding-up, liquidation
or reorganization of the Company, and (ii) all debt securities issued to any
Colonial Capital Trust, or a trustee of such trust, partnership or other entity
affiliated with the Company, that is a financing vehicle of the Company in
connection with the issuance by such financing entity of equity securities or
other securities that are similar to the Preferred Securities. The securing of
any Indebtedness otherwise constituting Indebtedness Ranking on a Parity with
the Securities shall not be deemed to prevent such Indebtedness from
constituting Indebtedness Ranking on a Parity with the Securities with respect
to any assets of the Company not securing such Indebtedness.

     "Indebtedness Ranking Junior to the Securities" shall mean any
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such Indebtedness by its
terms ranks junior to and not pari passu with or prior to the Securities in
right of payment upon the happening of the dissolution, winding-up, liquidation
or reorganization of the Company. The securing of any Indebtedness otherwise
constituting Indebtedness Ranking Junior to the Securities shall not be deemed
to prevent such Indebtedness from constituting Indebtedness Ranking Junior to
the Securities with respect to any assets of the Company not securing such
Indebtedness.

     "Indenture" shall mean this instrument as originally executed or, if
amended or supplemented as herein provided, as so amended or supplemented, or
both, and shall include the form and terms of particular series of Securities
established as contemplated hereunder.

     "Institutional Trustee" has the meaning set forth in the Declaration of the
applicable Colonial Capital Trust.

     "Interest" shall mean any and all interest payable in respect of the
Securities and shall include any Additional Sums and Compound Interest.

     "Interest Payment Date", when used with respect to any installment of
interest on a Security of a particular series, shall mean the date specified in
such Security or in an Officers' Certificate or in an indenture supplemental
hereto with respect to such series as the date on which such installment of
interest is due and payable.

                                       4

<PAGE>

     The term "mortgage" shall mean and include any mortgage, pledge, lien,
security interest, conditional sale or other title retention agreement or other
similar encumbrance.

     "Officers' Certificate" shall mean a certificate signed by the [Chairman of
the Board, the President or any Vice President, and by the Treasurer, an
Assistant Treasurer, the Controller, an Assistant Controller, the Secretary or
an Assistant Secretary] of the Company and delivered to the Trustee. Each such
certificate shall include the statements provided for in Section 13.06 if and to
the extent provided by the provisions of such Section.

     "Opinion of Counsel" shall mean an opinion signed by legal counsel
experienced in the matters as to which such opinion is being delivered, who may
be an employee of or counsel to the Company, or may be other counsel
satisfactory to the Trustee. Each such opinion shall include the statements
provided for in Section 13.06 if and to the extent required by the provisions of
such Section.

     The term "outstanding" (except as otherwise provided in Section 7.01), when
used with reference to Securities, shall, subject to the provisions of Section
7.04, mean, as of any particular time, all Securities authenticated and
delivered by the Trustee or the Authenticating Agent under this Indenture,
except

          (a)  Securities theretofore cancelled by the Trustee or the
               Authenticating Agent or delivered to the Trustee for
               cancellation;

          (b)  Securities, or portions thereof, for the payment or redemption of
               which moneys in the necessary amount shall have been deposited in
               trust with the Trustee or with any paying agent (other than the
               Company) or shall have been set aside and segregated in trust by
               the Company (if the Company shall act as its own paying agent);
               provided that, if such Securities, or portions thereof, are to be
               redeemed prior to maturity thereof, notice of such redemption
               shall have been given in accordance with Article XIV or provision
               satisfactory to the Trustee shall have been made for giving such
               notice; and

          (c)  Securities paid pursuant to Section 2.08 or Securities in lieu of
               or in substitution for which other Securities shall have been
               authenticated and delivered pursuant to the terms of Section 2.08
               unless proof satisfactory to the Company and the Trustee is
               presented that any such Securities are held by bona fide
               purchasers in due course.

     "Person" shall mean any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt and as that evidenced by
such particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.08 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

                                       5

<PAGE>

     "Preferred Securities" shall mean undivided beneficial interests in the
assets of a Colonial Capital Trust which rank pari passu with Common Securities
issued by such Colonial Capital Trust, whether or not designated for the
purposes of identification as preferred securities or capital securities;
provided, however, that upon the occurrence of an Event of Default, the rights
of registered holders of Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are
subordinated to the rights of registered holders of Preferred Securities.

     "Preferred Securities Guarantee shall mean any guarantee agreement that the
Company may enter into with The Bank of New York or other trustee for the
benefit of registered holders of the Preferred Securities of a Colonial Capital
Trust.

     "Principal office of the Trustee", or other similar term, shall mean the
principal office of the Trustee at which, at any particular time, its corporate
trust business is administered.

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

     "Securities Act" has the meaning stated in the first paragraph of this
Section 1.01.

     "Security" or "Securities" shall have the meaning stated in the first
recital of this Indenture and, more particularly, means any debt security or
securities, as the case may be, authenticated and delivered under this
Indenture.

     "Security Register" shall have the meaning given to such term in Section
2.07.

     "Securityholder", "Holder of Securities", or other similar terms, shall
mean any person in whose name at the time a particular Security is registered in
the Security Register.

     "Senior Indebtedness" shall mean the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or
not such claim for post petition interest is allowed in such proceedings), on
all Indebtedness, whether outstanding on the date of execution of this
Indenture, or hereafter created, assumed or incurred, except Indebtedness
Ranking on a Parity with the Securities or Indebtedness Ranking Junior to the
Securities, and any deferrals, renewals or extensions of such Senior
Indebtedness.

     "Subsidiary" shall mean with respect to any Person, (i) any corporation a
majority of whose outstanding Voting Securities of which are owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity a majority of whose outstanding partnership or similar
ownership interests shall at the time be owned by such Person, or by one or

                                        6

<PAGE>

more of its Subsidiaries, or by such Person and one or more of its Subsidiaries
and (iii) any limited partnership of which such Person or any of its
Subsidiaries is a general partner.

     "Trustee" shall mean the Person identified as "Trustee" in the first
paragraph hereof, and, subject to the provisions of Article VI hereof, shall
also include its successors and assigns as Trustee hereunder, unless such Person
is not the trustee hereunder for all series of Securities, in which case the
term "Trustee" shall mean the trustee with respect to each particular series of
Securities.

     "Trust Indenture Act" has the meaning stated in the first paragraph of this
Section 1.01.

     "Trust Securities" shall mean the Common Securities and the Preferred
Securities of a Colonial Capital Trust.

     "U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case under
clauses (i) or (ii) are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the
U.S. Government Obligation or the specific payment of interest on or principal
of the U.S. Government Obligation evidenced by such depository receipt.

     "Voting Securities" mean shares, interests, participations or other
equivalents in the equity (however designated) in such Person having ordinary
voting power for the election of a majority of the directors (or their
equivalent) of such Person, other than shares, interests, participations or
other equivalents having such power only by reason of the occurrence of a
contingency.

                                   ARTICLE II

                                   SECURITIES

     SECTION 2.01. Forms Generally.
                   ----------------

     The Securities of each series shall be in substantially the form as shall
be established by or pursuant to a Board Resolution and as set forth in an
Officers' Certificate of the Company or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or

                                        7

<PAGE>

endorsements placed thereon as may be required to comply with any law or with
any rules made pursuant thereto or with any rules of any securities exchange or
all as may, consistently herewith, be determined by the officers of the Company
executing such Securities, as evidenced by their execution of the Securities.

     Definitive Securities shall be printed, lithographed or engraved on steel
engraved borders or may be produced in any other manner, all as determined by
the officers of the Company executing such Securities, as conclusively evidenced
by their execution of such Securities.

     SECTION 2.02. Form of Trustee's Certificate of Authentication.
                   ------------------------------------------------

     The Trustee's Certificate of Authentication on all Securities shall be in
substantially the following form:

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

     The Bank of New York, as Trustee

     By:______________________________
     Authorized Signatory

     SECTION 2.03. Amount Unlimited; Issuable in Series.
                   -------------------------------------

     The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series up to the aggregate principal amount of securities of that series
from time to time authorized by or pursuant to a Board Resolution of the Company
or pursuant to one or more indentures supplemental hereto. Prior to the initial
issuance of Securities of any series, there shall be established in or pursuant
to a Board Resolution of the Company and set forth in an Officers' Certificate
of the Company or established in one or more indentures supplemental:

     (a) the title of the Securities of the series (which shall distinguish the
Securities of the series from all other Securities);

     (b) any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (excep for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Sections
2.07, 2.08, 2.09, 9.04 or 14.03);

     (c) the date or dates on which the principal of or premium, if any, on the
Securities of the series is payable;

     (d) the rate or rates at which the Securities of the series shall bear
interest, if any, or the method by which such interest may be determined, the
date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest shall be payable or the manner of determination of such
Interest Payment Dates and the record dates for the determination of Holders to
whom interest is payable on any such Interest Payment Dates;

                                       8

<PAGE>

     (e) the place or places where the principal of and premium, if any, and any
interest on Securities of the series shall be payable;

     (f) the right, if any, to extend the interest payment periods and the
duration of such extension for Securities of the series;

     (g) the price or prices at which, the period or periods within which or the
date or dates on which, and the terms and conditions upon which, Securities of
the series may be redeemed, in whole or in part, at the option of the Company,
pursuant to any sinking fund or otherwise;

     (h) the obligation, if any, of the Company to redeem, purchase or repay
Securities of the series pursuant to any sinking fund or analogous provisions or
at the option of a Securityholder thereof and the price or prices at which, and
the period or periods within which or the date or dates on which, and the terms
and conditions upon which, Securities of the series shall be redeemed, purchased
or repaid, in whole or in part, pursuant to such obligation;

     (i) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Securities of the series shall be issuable;

     (j) any Events of Default with respect to the Securities of a particular
series, if not set forth herein;

     (k) the form of the Securities of the series, including the form of the
Certificate of Authentication;

     (l) any trustee, authenticating or paying agents, warrant agents, transfer
agents or registrars with respect to the Securities of such series;

     (m) whether the Securities of the series shall be issued in whole or in
part in the form of one or more Global Securities and, in such case, the
Depository Institution for such Global Security or Securities, and whether
beneficial owners of interests in any such Global Securities may exchange such
interests for other Securities of such series in the manner provided in Section
2.11, and the manner and the circumstances under which and the place or places
where any such exchanges may occur if other than in the manner provided in
Section 2.11, and any other terms of the series relating to the book-entry
nature of the Securities of such series and the exchange, registration or
transfer thereof and the payment of any principal thereof, or interest or
premium, if any, thereon; and

     (n) whether the subordination provisions contained in Article XV are
applicable to the Securities of the series;

     (o) any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).

     All Securities of any one series shall be substantially identical except as
to denomination and except as may otherwise be provided in or pursuant to such
resolution of the Board of Directors or in any such indenture supplemental
hereto.

                                       9

<PAGE>

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution of the Company, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate of the Company setting forth the terms of the series.

     SECTION 2.04. Authentication and Dating.
                   --------------------------

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Securities to or upon the written order of the
Company, signed by its [Chairman of the Board of Directors, President or one of
its Vice Presidents and by its Treasurer, any Assistant Treasurer, Secretary or
any Assistant Secretary], without any further action by the Company hereunder.
In authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 6.01) shall be fully protected in
relying upon:

     (a)  a copy of any Board Resolution or Resolutions relating thereto and, if
applicable, an appropriate record of any action taken pursuant to such
resolution, in each case certified by the Secretary or an Assistant Secretary of
the Company;

     (b)  an executed supplemental indenture, if any;

     (c)  an Officers' Certificate setting forth the form and terms of the
Securities as required pursuant to Sections 2.01 and 2.03, respectively; and

     (d)  an Opinion of Counsel prepared in accordance with Section 13.06 which
shall also state:

          (i)    that the form of such Securities has been established by or
     pursuant to a Board Resolution or by a supplemental indenture as permitted
     by Section 2.01 in conformity with the provisions of this I ndenture;

          (ii)   that the terms of such Securities have been established by or
     pursuant to a Board Resolution or by a supplemental indenture as permitted
     by Section 2.03 in conformity with the provisions of this Indenture;

          (iii)  that such Securities, when authenticated and delivered by the
     Trustee and issued by the Company in the manner and subject to any
     customary conditions specified in such Opinion of Counsel, will constitute
     valid and legally binding obligations of the Company;

          (iv)   that all laws and requirements in respect of the execution,
     delivery and performance by the Company of the Securities have been
     complied with and that authentication and delivery of the Securities by the
     Trustee will not violate the terms of the Indenture; and

          (v)    such other matters as the Trustee may reasonably request.

                                       10

<PAGE>

     The Trustee shall have the right to decline to authenticate and deliver any
Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith by its board of directors or trustees, executive committee, or a trust
committee of directors or trustees and/or vice presidents shall determine that
such action would expose the Trustee to personal liability to existing Holders.

     SECTION 2.05. Date and Denomination of Securities.
                   ------------------------------------

     The Securities shall be issuable in such form and in such denominations as
shall be specified as contemplated by Section 2.03. In the absence of any such
specification with respect to the Securities of any series, the Securities of
such Series shall be issuable in fully registered form without coupons and in
the denominations of $1,000 and any multiple thereof. The Securities shall be
numbered, lettered, or otherwise distinguished in such manner or in accordance
with such plans as the officers of the Company executing the same may determine
with the approval of the Trustee, as conclusively evidenced by the execution and
authentication thereof.

     Every Security shall be dated the date of its authentication, shall bear
interest, if any, from such date and shall be payable on such dates, in each
case, as contemplated by Section 2.03. The interest installment on any Security
that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date for Securities of that series shall be paid to the Person in whose
name said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In
the event that any Security of a particular series or portion thereof is called
for redemption and the redemption date (i) falls after an Interest Payment Date,
then interest on such Security payable on such Interest Payment Date shall be
paid to the Holder on the related regular record date or (ii) is subsequent to a
regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, then interest on such Security payable on such redemption
date shall be paid upon presentation and surrender of such Security as provided
in Section 3.01.

     Any interest on any Security that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date for any Security of the same
series (herein called "Defaulted Interest") shall forthwith cease to be payable
to the Holder on the relevant regular record date by virtue of having been such
Holder, and such Defaulted Interest shall be paid by the Company, at its
election, as provided in clause (a) or clause (b) below:

          (i) The Company may make payment of any Defaulted Interest on
     Securities to the Persons in whose names such Securities (or their
     respective Predecessor Securities) are registered at the close of business
     on a special record date for the payment of such Defaulted Interest, which
     shall be fixed in the following manner: the Company shall notify the
     Trustee in writing of the amount of Defaulted Interest proposed to be paid
     on each such Security and the date of the proposed payment, and at the same
     time the Company shall deposit with the Trustee an amount of money equal to
     the aggregate amount proposed to be paid in respect of such Defaulted
     Interest or shall make arrangements satisfactory to the Trustee for such
     deposit prior to the date of the proposed payment, such money when
     deposited to be held in trust for the benefit of the Persons entitled to
     such Defaulted Interest as in this clause provided. Thereupon the Trustee
     shall

                                       11

<PAGE>

     fix a special record date for the payment of such Defaulted Interest which
     shall not be more than 15 nor less than 10 days prior to the date of the
     proposed payment and not less than 10 days after the receipt by the Trustee
     of the notice of the proposed payment. The Trustee shall promptly notify
     the Company of such special record date and, in the name and at the expense
     of the Company, shall cause notice of the proposed payment of such
     Defaulted Interest and the special record date therefor to be mailed, first
     class postage prepaid, to each Securityholder at his or her address as it
     appears in the Security Register, not less than 10 days prior to such
     special record date. Notice of the proposed payment of such Defaulted
     Interest and the special record date therefor having been mailed as
     aforesaid, such Defaulted Interest shall be paid to the Persons in whose
     names such Securities (or their respective Predecessor Securities) are
     registered on such special record date and shall be no longer payable
     pursuant to the following clause (b).

          (ii) The Company may make payment of any Defaulted Interest on any
     Securities in any other lawful manner not inconsistent with the
     requirements of any securities exchange on which such Securities may be
     listed, and upon such notice as may be required by such exchange, if, after
     notice given by the Company to the Trustees of the proposed payment
     pursuant to this clause, such manner of payment shall be deemed practicable
     by the Trustee.

     Unless otherwise set forth in a Board Resolution of the Company or one or
more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" shall
mean the fifteenth calendar day (whether or not a Business Day) preceding an
Interest Payment Date.

     Subject to the foregoing provisions of this Section, each Security of a
series delivered under this Indenture upon transfer of or in exchange for or in
lieu of any other Security of such series shall carry the rights to interest
accrued and unpaid, and to accrue, that were carried by such other Security.

     SECTION 2.06. Execution of Securities.
                   ------------------------

     The Securities shall be signed in the name and on behalf of the Company by
the facsimile signature of its Chairman of the Board of Directors, President or
one of its Vice Presidents and by the facsimile signature of its Treasurer, one
of its Assistant Treasurers, Secretary or one of its Assistant Secretaries, by
facsimile or otherwise, and which need not be attested. Only such Securities as
shall bear thereon a Certificate of Authentication substantially in the form
hereinbefore recited, executed by the Trustee or the Authenticating Agent, shall
be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee or the Authenticating Agent upon any
Security executed by the Company shall be conclusive evidence that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the Holder is entitled to the benefits of this Indenture.

     In case any officer of the Company who shall have signed any of the
Securities shall cease to be such officer before the Securities so signed shall
have been authenticated and delivered by the Trustee or the Authenticating
Agent, or disposed of by the Company, such Securities nevertheless may be
authenticated and delivered or disposed of as though the person

                                       12

<PAGE>

who signed such Securities had not ceased to be such officer of the Company; and
any Security may be signed on behalf of the Company by such persons as, at the
actual date of the execution of such Security, shall be the proper officers of
the Company, although at the date of the execution of this Indenture any such
person was not such an officer.

     SECTION 2.07. Exchange and Registration of Transfer of Securities.
                   ----------------------------------------------------

     Securities of any series may be exchanged for a like aggregate principal
amount of Securities of the same series of other authorized denominations.
Securities to be exchanged may be surrendered at the principal office of the
Trustee or at any office or agency to be maintained by the Company for such
purpose as provided in Section 3.02, and the Company or the Trustee shall
execute and register and the Trustee or the Authenticating Agent shall
authenticate and deliver in exchange therefor the Security or Securities which
the Securityholder making the exchange shall be entitled to receive. Upon due
presentment for registration of transfer of any Security of any series at the
principal office of the Trustee or at any office or agency of the Company
maintained for such purpose as provided in Section 3.02, the Company or the
Trustee shall execute and register and the Trustee or the Authenticating Agent
shall authenticate and deliver in the name of the transferee or transferees a
new Security or Securities of the same series for a like aggregate principal
amount. Registration or registration of transfer of any Security by the Trustee
or by any agent of the Company appointed pursuant to Section 3.02, and delivery
of such Security, shall be deemed to complete the registration or registration
of transfer of such Security.

     The Company or the Trustee shall keep, at the designated corporate trust
office of the Trustee, a register for each series of Securities issued hereunder
(the "Security Register") in which, subject to such reasonable regulations as it
may prescribe, the Company or the Trustee shall register ownership and transfer
of ownership of all Securities and shall register the transfer of all Securities
as in this Article II provided. The Security Register shall be in written form
or in any other form capable of being converted into written form within a
reasonable time.

     All Securities presented for registration of transfer or for exchange shall
(if so required by the Company, the Trustee or the Authenticating Agent) be duly
endorsed by, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and the Trustee or the
Authenticating Agent duly executed by, the Holder of such Security or his
attorney duly authorized in writing.

     No service charge shall be made for any exchange or registration of
transfer of Securities, but the Company or the Trustee may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection therewith.

     The Company or the Trustee shall not be required to exchange or register a
transfer of (a) any Security for a period of 15 days preceding the date of
mailing of a notice of redemption of Securities of such series, or (b) any
Securities of any series selected, called or being called for redemption in
whole or in part, except in the case of any Securities of any series to be
redeemed in part, the portion thereof not to be so redeemed, or (c) Securities
Holders of which have elected to have the Company repay, except in the case of
any Securities of any series to be repaid in part, the portion thereof not to be
so repaid.

                                       13

<PAGE>

     SECTION 2.08. Mutilated, Destroyed, Lost or Stolen Securities.
                   ------------------------------------------------

     In case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company shall execute, and upon its request the
Trustee shall authenticate and deliver, a new Security of the same series
bearing a number not contemporaneously outstanding, in exchange and substitution
for the mutilated Security, or in lieu of and in substitution for the Security
so destroyed, lost or stolen. In every case, the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity
as may be reasonably required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of such Security and of the ownership thereof.

     The Trustee may authenticate any such substituted Security and deliver the
same upon the written request or authorization of any officer of the Company.
Upon the issuance of any substituted Security, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses connected therewith.
In case any Security which has matured or is about to mature or has been called
for redemption in full shall become mutilated or be destroyed, lost or stolen,
the Company may, instead of issuing a substitute Security, pay or authorize the
payment of the same (without surrender thereof except in the case of a mutilated
Security) if the applicant for such payment shall furnish to the Company and the
Trustee such security or indemnity as may be reasonably required by them to save
each of them harmless and, in case of destruction, loss or theft, evidence
satisfactory to the Company and to the Trustee of the destruction, loss or theft
of such Security and of the ownership thereof.

     Every substituted Security of any series issued pursuant to the provisions
of this Section 2.08 by virtue of the fact that any such Security is destroyed,
lost or stolen shall constitute an additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Securities of the same series duly
issued hereunder. All Securities shall be held and owned upon the express
condition that, to the extent permitted by applicable law, the foregoing
provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities and shall preclude any and all
other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

     SECTION 2.09. Temporary Securities.
                   ---------------------

     Pending the preparation of definitive Securities of any series, the Company
may execute and the Trustee shall authenticate and deliver temporary Securities
(printed or lithographed). Temporary Securities shall be issuable in any
authorized denomination, and substantially in the form of the definitive
Securities but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Company.
Every such temporary Security shall be executed by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the
same manner, and with the same effect, as the definitive Securities. Without
unreasonable delay the Company will execute and deliver to the

                                       14

<PAGE>

Trustee or the Authenticating Agent definitive Securities and thereupon any or
all temporary Securities of such series may be surrendered in exchange therefor,
at the principal office of the Trustee or at any office or agency maintained by
the Company for such purpose as provided in Section 3.02, and the Trustee or the
Authenticating Agent shall authenticate and deliver in exchange for such
temporary Securities a like aggregate principal amount of such definitive
Securities. Such exchange shall be made by the Company at its own expense and
without any charge therefor except that in case of any such exchange involving a
registration of transfer the Company may require payment of a sum sufficient to
cover any tax, fee or other governmental charge that may be imposed in relation
thereto. Until so exchanged, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series authenticated and delivered hereunder.

     SECTION 2.10. Cancellation of Securities Paid, etc.
                   -------------------------------------

     All Securities surrendered for the purpose of payment, redemption, exchange
or registration of transfer, shall, if surrendered to the Company or any paying
agent, be surrendered to the Trustee and promptly cancelled by it, or, if
surrendered to the Trustee or any Authenticating Agent, shall be promptly
cancelled by it, and no Securities shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture. All Securities
cancelled by any Authenticating Agent shall be delivered to the Trustee. The
Trustee shall dispose of cancelled Securities in accordance with its customary
procedures. If the Company shall acquire any of the Securities, however, such
acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation.

     SECTION 2.11. Global Securities.
                   ------------------

     (a) If the Company shall establish pursuant to Section 2.03 that the
Securities of a particular series are to be represented by one or more Global
Securities, then the Company shall execute and the Trustee shall, in accordance
with Section 2.04, authenticate and deliver, one or more Global Securities that
(i) shall represent in the aggregate, and shall be denominated in an amount
equal to the aggregate principal amount of, all of the outstanding Securities of
such series, (ii) shall be registered in the name of the Depository Institution
or its nominee, (iii) shall be delivered by the Trustee to the Depository
Institution or pursuant to the Depository Institution's instruction and (iv)
shall bear a legend substantially to the following effect: "Except as otherwise
provided in Section 2.11 of the Indenture, this Security may not be transferred
(other than a transfer of this Security as a whole by the Depository Institution
to a nominee of the Depository Institution or another nominee of the Depository
Institution or by the Depository or any such nominee to a successor Depository
or a nominee of such successor Depository)."

     (b) Notwithstanding the provisions of Section 2.07, a Global Security of a
series may not be transferred as a whole except by the Depository Institution to
a nominee of the Depository Institution or another nominee of the Depository
Institution by the Depository Institution or any such nominee to a successor
Depository Institution or a nominee of such successor Depository Institution for
such series.

                                       15

<PAGE>

     (c) If at any time (i) the Depository Institution for a series of the
Securities notifies the Company that it is unwilling or unable to continue as
Depository Institution for such series or if at any time the Depository
Institution for such series shall no longer be registered or in good standing
under the Exchange Act, or other applicable statute or regulation, and a
successor Depository Institution for such series is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, (ii) the Company determines that the Securities
of any series shall no longer be represented by a Global Security or (iii) a
Default or Event of Default with respect to the Securities of a series has
occurred and is continuing, then this Section 2.11 shall no longer be applicable
to the Securities of such series and the Company will execute, and subject to
Section 2.07, the Trustee will authenticate and deliver, the Securities of such
series in definitive fully registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of a Global Security for Securities in definitive
fully registered form, in authorized denominations, such Global Security shall
be cancelled by the Trustee. Such Securities in definitive fully registered form
so issued in exchange pursuant to this Section 2.11(c) shall be registered in
such names and in such authorized denominations as the Depository Institution,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Depository Institution for delivery to the Persons in whose names such
Securities are so registered.

     SECTION 2.12. CUSIP Numbers.
                   --------------

     The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
                                           --------
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify
the Trustee of any change in the "CUSIP" numbers.

                                  ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

     SECTION 3.01. Payment of Principal, Premium, if any, and Interest.
                   ----------------------------------------------------

     The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay or cause to be paid the
principal of, and premium, if any, and interest on, each of the Securities of
that series at the place, at the respective times and in the manner provided in
such Securities or in the applicable Officers' Certificate or indenture
supplemental hereto. Each installment of interest on the Securities of any
series may be paid by mailing checks for such interest payable to the order of
the Holders of Securities entitled thereto as they appear on the Security
Register or by wire transfer to an account appropriately designated by the
Holders of Securities entitled thereto; provided, however, that payments of
interest in respect of Global Securities shall be made by the Company in
same-day funds. Payments of principal of,

                                       16

<PAGE>

and premium, if any, and interest on, the Securities shall be made by the
Company in same-day funds against presentation and surrender thereof.

     In the event Securities are issued to Colonial Capital Trust or a trustee
of such trust in connection with the issuance of Trust Securities by such
Colonial Capital Trust and such Trust or trustee is required to pay any taxes,
duties, assessments or governmental charges of whatever nature (other than
withholding taxes) imposed by the United States, or any other taxing authority,
then, in any such case, the Company will pay as additional interest ("Additional
Interest") on the Securities held by such Trust or trustee such additional
amounts as shall be required so that the net amounts received and retained by
such Trust or trustee after paying such taxes, duties, assessments or other
governmental charges will be equal to the amounts such Trust or trustee would
have received had no such taxes, duties, assessments or other governmental
charges been imposed.

     SECTION 3.02. Offices for Notices and Payments, etc.
                   --------------------------------------

     So long as any of the Securities remains outstanding, the Company will
maintain in the Borough of Manhattan, The City of New York, an office or agency
where the Securities of each series may be presented for payment, where the
Securities of that Series may be presented for registration of transfer and for
exchange as in this Indenture provided and where notices and demands to or upon
the Company in respect of the Securities of that series or this Indenture may be
served. The Company will give to the Trustee written notice of the location of
any such office or agency and of any change of location thereof. Until otherwise
designated from time to time by the Company in a notice to the Trustee, or
specified as contemplated by Section 2.03, any such office or agency for all of
the above purposes shall be the office or agency of the Trustee. In case the
Company shall fail to maintain any such office or agency in the Borough of
Manhattan, The City of New York, or shall fail to give such notice of the
location or of any change in the location thereof, presentations and demands may
be made and notices may be served at the designated corporate trust office of
the Trustee.

     In addition to any such office or agency, the Company may from time to time
designate one or more offices or agencies outside the Borough of Manhattan, The
City of New York, where the Securities may be presented for registration of
transfer and for exchange in the manner provided in this Indenture, and the
Company may from time to time rescind such designation, as the Company may deem
desirable or expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
any such office or agency in the Borough of Manhattan, The City of New York, for
the purposes above mentioned. The Company will give to the Trustee prompt
written notice of any such designation or rescission thereof.

     SECTION 3.03. Appointments to Fill Vacancies in Trustee's Office.
                   ---------------------------------------------------

     The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 6.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

                                       17

<PAGE>

     SECTION 3.04. Provision as to Paying Agent.
                   -----------------------------

     (a) If the Company shall appoint a paying agent other than the Trustee with
respect to the Securities of any series, it will cause such paying agent to
execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provision of this Section 3.04:

          (1) that it will hold all sums held by it as such agent for the
     payment of the principal of, and premium, if any, or interest, if any, on,
     the Securities of such series (whether such sums have been paid to it by
     the Company or by any other obligor on the Securities of such series) in
     trust for the benefit of the Holders of the Securities of such series; and

          (2) that it will give the Trustee notice of any failure by the Company
     (or by any other obligor on the Securities of such series) to make any
     payment of the principal of, and premium, if any, or interest, if any, on,
     the Securities of such series when the same shall be due and payable.

     (b) If the Company shall act as its own paying agent, it will, on or before
each due date of the principal of and premium, if any, or interest, if any, on
the Securities of any series, set aside, segregate and hold in trust for the
benefit of the Holders of the Securities of such series a sum sufficient to pay
such principal, premium or interest so becoming due and will notify the Trustee
of any failure to take such action and of any failure by the Company (or by any
other obligor under the Securities of such series) to make any payment of the
principal of, and premium, if any, or interest, if any, on, the Securities of
such series when the same shall become due and payable.

     (c) Anything in this Section 3.04 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to one or more or all series of Securities hereunder, or
for any other reason, pay or cause to be paid to the Trustee all sums held in
trust for any such series by the Trustee or any paying agent hereunder, as
required by this Section 3.04, such sums to be held by the Trustee upon the
trusts herein contained.

     (d) Anything in this Section 3.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 3.04 is subject to
Sections 11.03 and 11.04.

     SECTION 3.05. Certificate to Trustee.
                   -----------------------

     The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year, commencing with the first calendar year of the issuance of
Securities of any series under this Indenture, so long as Securities of any
series are outstanding hereunder, a certificate from the principal executive,
financial or accounting officer of the Company stating that in the course of the
performance by the signers of their duties as officers of the Company they would
normally have knowledge of any default by the Company in the performance of any
covenants contained herein, stating whether or not they have knowledge of any
such default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof, all without regard to periods of grace or
notice requirements.

                                       18

<PAGE>

     SECTION 3.06. Compliance with Consolidation Provisions.
                   -----------------------------------------

     The Company will not, while any of the Securities remain outstanding,
consolidate with, or merge into, or merge into itself, or sell, convey, transfer
or otherwise dispose of all or substantially all of its property to any other
entity unless the provisions of Article X hereof are complied with.

     SECTION 3.07. Limitation on Dividends; Transactions with Affiliates.
                   ------------------------------------------------------

     If Securities are issued to a Colonial Capital Trust or a trustee of such
trust in connection with the issuance of Trust Securities by such Colonial
Capital Trust and (i) there shall have occurred a Default or an Event of
Default, (ii) the Company shall be in default under the Preferred Securities
Guarantee or Common Securities Guarantee relating to such Colonial Capital Trust
or (iii) the Company has given notice of its election, pursuant to the terms of
the Securities, if applicable, to defer payments of interest in accordance with
the terms, if any, of such Securities and the period of such deferral is
continuing, then (a) the Company shall not declare or pay any dividend on, make
any distribution or other payment with respect to, or redeem, purchase, acquire
or make a liquidation payment with respect to, any of its capital stock or make
any guarantee payment with respect thereto (other than (i) purchases or
acquisitions of shares of Colonial BancGroup Common Stock in connection with the
satisfaction by the Company of its obligations under any employee benefit plans,
(ii) as a result of an exchange or conversion of one class or series of the
Company's capital stock for another class or series of the Company's capital
stock or (iii) the purchase of fractional interests in shares of the Company's
capital stock pursuant to the conversion or exchange provisions of such Company
capital stock or the security being converted or exchanged), (b) the Company
shall not make any payment of interest, principal or premium, if any, on or
repay, repurchase or redeem any debt securities issued by the Company that rank
pari passu with or junior to the Securities; and (c) the Company shall not make
any guarantee payments with respect to the foregoing (other than pursuant to the
Preferred Securities Guarantee).

     SECTION 3.08. Covenants as to Colonial Capital Trusts.
                   ----------------------------------------

     In the event Securities are issued to a Colonial Capital Trust or a trustee
of such trust in connection with the issuance of Trust Securities by such
Colonial Capital Trust, for so long as such Trust Securities remain outstanding,
the Company will (i) maintain 100% direct or indirect ownership of the Common
Securities of such Colonial Capital Trust; provided, however, that any permitted
successor of the Company under this Indenture may succeed to the Company's
ownership of the Common Securities, (ii) use its best efforts to cause such
Colonial Capital Trust (a) to remain a statutory business trust, except in
connection with a distribution of Securities to the registered holders of Trust
Securities in liquidation of such Colonial Capital Trust, the redemption of all
of the Trust Securities of such Colonial Capital Trust or certain mergers,
consolidations or amalgamations, in each case, as permitted by the Declaration
of such Colonial Capital Trust, and (b) to continue to be treated as a grantor
trust, and not an association taxable as a corporation or partnership, for
United States Federal income tax purposes, (iii) use its best efforts to cause
each registered holder of Trust Securities to be treated as owning an individual
beneficial interest in the Securities and (iv) not cause, as sponsor of such
Colonial Capital Trust,

<PAGE>

     or permit, as registered holder of the Common Securities of such Colonial
     Capital Trust, the termination of such Colonial Capital Trust, except as
     permitted by the applicable Declaration.

     SECTION 3.09. Notice of Default.
                    ------------------

     The Company shall file with the Trustee written notice of the occurrence of
any Event of Default within 5 Business Days of its becoming aware of any such
Event of Default.

                                   ARTICLE IV

        SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

     SECTION 4.01. Securityholders' Lists.
                   -----------------------

     The Company covenants and agrees that it will furnish or cause to be
furnished to the Trustee:

          (a) on a semi-annual basis on each regular record date for each series
     of Securities, a list, in such form as the Trustee may reasonably require,
     of the names and addresses of the Securityholders of such series of
     Securities as of such record date (and on dates to be determined pursuant
     to Section 2.03 for non-interest bearing securities in each year); and

          (b) at such other times as the Trustee may request in writing, within
     30 days after the receipt by the Company, of any such request, a list of
     similar form and content as of a date not more than 15 days prior to the
     time such list is furnished,

except that no such lists need be furnished so long as the Trustee is in
possession thereof by reason of its acting as Security registrar for such
series.

          SECTION 4.02. Preservation and Disclosure of Lists.
                        -------------------------------------

     (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders of
each series of Securities (1) contained in the most recent list furnished to it
as provided in Section 4.01 or (2) received by it in the capacity of Securities
registrar (if so acting) hereunder. The Trustee may destroy any list furnished
to it as provided in Section 4.01 upon receipt of a new list so furnished.

     (b) In case three or more Holders of Securities of any series (hereinafter
referred to as "applicants") apply in writing to the Trustee and furnish to the
Trustee reasonable proof that each such applicant has owned a Security of such
series for a period of at least 6 months preceding the date of such application,
and such application states that the applicants desire to communicate with other
Holders of Securities of such series or with Holders of all Securities with
respect to their rights under this Indenture or under such Securities and is
accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall within 5 Business Days
after the receipt of such application, at its election, either:

                                       20

<PAGE>

          (1) afford such applicants access to the information preserved at the
     time by the Trustee in accordance with the provisions of subsection (a) of
     this Section 4.02; or

          (2) inform such applicants as to the approximate number of Holders of
     such series or all Securities, as the case may be, whose names and
     addresses appear in the information preserved at the time by the Trustee in
     accordance with the provisions of subsection (a) of this Section 4.02, and
     as to the approximate cost of mailing to such Securityholders the form of
     proxy or other communication, if any, specified in such application.

          If the Trustee shall elect not to afford such applicants access to
     such information, the Trustee shall, upon the written request of such
     applicants, mail to each Securityholder of such series or all Securities,
     as the case may be, whose name and address appear in the information
     preserved at the time by the Trustee in accordance with the provisions of
     subsection (a) of this Section 4.02 a copy of the form of proxy or other
     communication which is specified in such request with reasonable promptness
     after a tender to the Trustee of the material to be mailed and of payment,
     or provision for the payment, of the reasonable expenses of mailing, unless
     within 5 days after such tender, the Trustee shall mail to such applicants
     and file with the Commission, together with a copy of the material to be
     mailed, a written statement to the effect that, in the opinion of the
     Trustee, such mailing would be contrary to the best interests of the
     Holders of Securities of such series or all Securities, as the case may be,
     or would be in violation of applicable law. Such written statement shall
     specify the basis of such opinion. If the Commission, after opportunity for
     a hearing upon the objections specified in the written statement so filed,
     shall enter an order refusing to sustain any of such objections or if,
     after the entry of an order sustaining one or more of such objections, the
     Commission shall find, after notice and opportunity for hearing, that all
     the objections so sustained have been met and shall enter an order so
     declaring, the Trustee shall mail copies of such material to all such
     Securityholders with reasonable promptness after the entry of such order
     and the renewal of such tender; otherwise the Trustee shall be relieved of
     any obligation or duty to such applicants respecting their application.

     (c) Each and every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any paying agent shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders of Securities
in accordance with the provisions of subsection (b) of this Section 4.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under said subsection (b).

     SECTION 4.03. Reports by Company.
                   -------------------

     (a) The Company covenants and agrees to file with the Trustee, within 15
days after the Company is required to file the same with the Commission, copies
of the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may from time
to time by rules and regulations prescribe) which the Company may be required to
file with the Commission pursuant to Section 13 or Section

                                       21

<PAGE>

15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

     (b) The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations.

     (c) The Company covenants and agrees to transmit by mail to all Holders of
Securities, as the names and addresses of such Holders appear upon the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the
Company pursuant to subsections (a) and (b) of this Section 4.03 as may be
required by rules and regulations prescribed from time to time by the
Commission.

     (d) The Company covenants and agrees to furnish to the Trustee within 120
days of the end of each fiscal year, the compliance certificate required by
Section 314(a)(4) of the Trust Indenture Act.

     (e) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

     SECTION 4.04. Reports by the Trustee.
                   -----------------------

     (a) The Trustee shall transmit to Securityholders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant
thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee
shall, within sixty days after each May 15 following the date of this Indenture
deliver to Holders a brief report, dated as of such May 15, which complies with
the provisions of such Section 313(a).

     (b) A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with each stock exchange, if any, upon
which the Securities are listed, with the Commission and with the Company. The
Company will promptly notify the Trustee when the Securities are listed on any
stock exchange and of any delisting thereof.

                                       22

<PAGE>

                                   ARTICLE V

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

     SECTION 5.01. Events of Default.
                   ------------------

     One or more of the following events of default shall constitute an Event of
Default with respect to Securities of any series or such other events as may be
established with respect to the Securities of that series as contemplated by
Section 2.03 hereof shall have occurred and be continuing:

     (a) default in the payment of any interest upon any Securities of that
series when it becomes due and payable, and continuance of such default for a
period of 30 days; provided, however, that a valid extension of an interest
payment period by the Company in accordance with the terms of any particular
series of Securities established as contemplated in this Indenture shall not
constitute a default in the payment of interest for this purpose; or

     (b) default in the payment of all or any part of the principal of, or
premium, if any, on, any Securities of that series as and when the same shall
become due and payable, whether at maturity, upon redemption (including
redemption for a sinking fund, if any), by declaration or otherwise; provided,
however, that a valid extension of the maturity of such Securities in accordance
with the terms of any particular series of Securities established as
contemplated in this Indenture shall not constitute a default in the payment of
principal or premium, if any, for this purpose; or

     (c) default in the performance, or breach, of any covenant or warranty of
the Company in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with and other than those set forth exclusively in terms of any particular
series of Securities established as contemplated in this Indenture), and
continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 25% in principal amount
of the outstanding 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; or

     (d) a court having jurisdiction in the premises shall enter a decree or
order for relief in respect of the Company in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Company or for all or any substantial
part of its property, or ordering the winding-up or liquidation of its affairs
and such decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

     (e) the Company shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, shall
consent to the entry of an order for relief in an involuntary case under any
such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or for all or any substantial part of its
property, or shall make

                                       23

<PAGE>

any general assignment for the benefit of creditors, or shall fail generally to
pay its debts as they become due; or

     (f) in the event Securities are issued to a Colonial Capital Trust or a
trustee of such trust in connection with the issuance of Trust Securities by
such Colonial Capital Trust, such Colonial Capital Trust shall have voluntarily
or involuntarily dissolved or liquidated, wound-up its business or otherwise
terminated its existence except in connection with (i) the distribution of
Securities to holders of Trust Securities in liquidation of their interests in
such Colonial Capital Trust, (ii) the redemption of all of the outstanding Trust
Securities of such Colonial Capital Trust or (iii) certain mergers,
consolidations or amalgamations, in each case, as permitted by the Declaration
of such Colonial Capital Trust;

     If an Event of Default occurs and is continuing, and in each and every such
case, unless the principal of all of the Securities of such series shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Securities of that series then
outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by Securityholders), may declare the entire principal of all Securities
of that series and the interest accrued thereon, if any, to be due and payable
immediately, and upon any such declaration the same shall become immediately due
and payable, provided that, if, upon an Event of Default, the Trustee or the
Holders of at least 25% in aggregate principal amount of the Securities of the
applicable series then outstanding fail to declare the principal amount of all
the Securities of such series to be due and immediately payable, the registered
holders of at least 25% in aggregate liquidation amount of the Preferred
Securities then outstanding of any related Colonial Capital Trust shall have
such right by a notice in writing to the Company and the Trustee.

     The foregoing provisions, however, are subject to the condition that if, at
any time after the principal of the Securities of any series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of such series and the
principal of and premium, if any, on any and all Securities of such series which
shall have become due otherwise than by acceleration (with interest upon such
principal and premium, if any, and, to the extent that payment of such interest
is enforceable under applicable law, on overdue installments of interest, at the
same rate as the rate of interest then borne by the Securities of such series,
to the date of such payment or deposit) and such amount as shall be sufficient
to cover compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and all other expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee
except as a result of negligence or bad faith, and if any and all Events of
Default under the Indenture, other than the non-payment of the principal of or
premium, if any, on Securities which shall have become due by acceleration,
shall have been cured, waived or otherwise remedied as provided in this
Indenture, then and in every such case the Holders of a majority in aggregate
principal amount of the Securities of such series then outstanding, by written
notice to the Company and to the Trustee, may waive all defaults with respect to
that series and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon. If the Holders
of a majority in aggregate principal

                                       24

<PAGE>

amount of the Securities of the applicable series then outstanding fail to
rescind and annul such declaration and its consequences, the registered holders
of a majority in aggregate liquidation amount of the Preferred Securities then
outstanding of any related Colonial Capital Trust shall have such right by
written notice to the Company and the Trustee, subject to the satisfaction of
the conditions set forth above.

     In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such rescission or annulment or for any other reason or shall have been
determined adversely to the Trustee, then and in every such case the Company,
the Trustee, the Holders of the Securities and the registered holders of any
Preferred Securities shall be restored respectively to their several positions
and rights hereunder, and all rights, remedies and powers of the Company, the
Trustee, the Holders of the Securities and the registered holders of any
Preferred Securities shall continue as though no such proceeding had been taken.

     SECTION 5.02. Payment of Securities on Default; Suit Therefor.
                   ------------------------------------------------

     The Company covenants that in case an Event of Default under Section
5.01(a), (b), (c) or (f) shall have occurred and be continuing, then, upon
demand of the Trustee, the Company will pay to the Trustee, for the benefit of
the Holders of the Securities of that series, the whole amount that then shall
have become due and payable on all such Securities of that series for principal
and premium, if any, or interest, or both, as the case may be, with interest
upon the overdue principal and premium, if any, and (to the extent that payment
of such interest is enforceable under applicable law and, if the Securities are
held by Colonial Capital Trust or a trustee of such trust, without duplication
of any other amounts paid by Colonial Capital Trust or a trustee in respect
thereof) upon the overdue installments of interest at the rate borne by the
Securities of that series; and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including a
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
any expenses or liabilities incurred by the Trustee hereunder other than through
its negligence or bad faith.

     In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on such
Securities and collect in the manner provided by law out of the property of the
Company or any other obligor on such Securities wherever situated the moneys
adjudged or decreed to be payable.

     In case an Event of Default under Section 5.01(d) or (e) shall have
occurred, the Trustee, irrespective of whether the principal of the Securities
of any series shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made
any demand pursuant to the provisions of this Section 5.02, shall be entitled
and empowered, by intervention in such proceedings or otherwise, to file and
prove a claim or claims for the whole amount of principal and interest owing and
unpaid in respect of the Securities of such series and, in case of any judicial
proceedings, to file such proofs of claim and other papers

                                       25

<PAGE>

or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for reasonable compensation to the Trustee and each
predecessor Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor Trustee, except as a result of negligence or
bad faith) and of the Securityholders allowed in such judicial proceedings
relative to the Company or any other obligor on the Securities of any series, or
to the creditors or property of the Company or such other obligor, unless
prohibited by applicable law and regulations, to vote on behalf of the Holders
of the Securities or any series in any election of a trustee or a standby
trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or person performing similar functions in comparable
proceedings, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute the same after the deduction
of its charges and expenses; and any receiver, assignee or trustee in bankruptcy
or reorganization is hereby authorized by each of the Securityholders to make
such payments to the Trustee, and, in the event that the Trustee shall consent
to the making of such payments directly to the Securityholders, to pay to the
Trustee such amounts as shall be sufficient to cover reasonable compensation to
the Trustee, each predecessor Trustee and their respective agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor Trustee except as a result of negligence or
bad faith.

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

     All rights of action and of asserting claims under this Indenture, or under
any of the Securities, may be enforced by the Trustee without the possession of
any of the Securities, or the production thereof on any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall be for the ratable benefit of the Holders of the
Securities.

     In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the Holders
of the Securities, and it shall not be necessary to make any Holders of the
Securities parties to any such proceedings.

     SECTION 5.03. Application of Moneys Collected by Trustee.
                   -------------------------------------------

     Any moneys collected by the Trustee shall be applied in the order
following, at the date or dates fixed by the Trustee for the distribution of
such moneys, upon presentation of the several Securities in respect of which
moneys have been collected, and stamping thereon the payment, if only partially
paid, and upon surrender thereof if fully paid:

     First: To the payment of costs and expenses of collection applicable to
such series and compensation to the Trustee, its agents, attorneys and counsel,
and of all other expenses and

                                       26

<PAGE>

liabilities incurred, and all advances made, by the Trustee except as a result
of its negligence or bad faith;

     Second: To the payment of all Senior Indebtedness of the Company if and to
the extent required by Article XV hereof;

     Third: In case the principal of the outstanding Securities in respect of
which moneys have been collected shall not have become due and be unpaid, to the
payment of the amounts then due and unpaid upon Securities of such series for
principal of (and premium, if any) and interest on the Securities of such
series, in respect of which or for the benefit of which money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due on such Securities for principal (and premium, if any) and interest,
respectively.

     SECTION 5.04. Proceedings by Securityholders.
                   -------------------------------

     No Holder of any Security of any series shall have any right by virtue of
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such Holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with
respect to the Securities of such series specifying such Event of Default, as
hereinbefore provided, and unless also the Holders of not less than 25% in
aggregate principal amount of the Securities of that series then outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee security or indemnity reasonably satisfactory to the Trustee as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity shall have failed to institute any such action, suit or
proceeding, it being understood and intended, and being expressly covenanted by
the taker and Holder of every Security with every other taker and Holder and the
Trustee, that no one or more Holders of Securities of any series shall have any
right in any manner whatever by virtue of or by availing of any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holder of
Securities, or to obtain or seek to obtain priority over or preference to any
other such Holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
Holders of Securities of the applicable series.

     Notwithstanding any other provisions in this Indenture, however, the right
of any Holder of any Security to receive payment of the principal of (and
premium, if any) and interest, if any, on such Security, on or after the same
shall have become due and payable, or to institute suit for the enforcement of
any such payment, shall not be impaired or affected without the consent of such
Holder and by accepting a Security hereunder. For the protection and enforcement
of the provisions of this Section, each and every Securityholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

     The Company acknowledges that, with respect to any Securities held by a
Colonial Capital Trust or a trustee of such trust, if the Institutional Trustee
of such Trust fails to enforce its rights under this Indenture as the Holder of
the series of Securities held as the assets of such Colonial Capital Trust, any
registered holder of Preferred Securities may institute legal

                                       27

<PAGE>

proceedings directly against the Company to enforce such Institutional Trustee's
rights under this Indenture without first instituting any legal proceedings
against such Institutional Trustee or any other person or entity.
Notwithstanding the foregoing, the Company and the Trustee acknowledge that the
Declaration of a Colonial Capital Trust may entitle registered holders of the
Preferred Securities of such Colonial Capital Trust, in the circumstances and
subject to the limitations set forth therein, to commence a Direct Action (as
defined therein) with respect to any Event of Default under Section 5.01(a) or
(b) and, if such registered holders are so entitled, the Company acknowledges
their right to institute a Direct Action against the Company.

     SECTION 5.05. Proceedings by Trustee.
                   -----------------------

     In case of an Event of Default, the Trustee may in its discretion proceed
to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either by suit in equity or by action at
law or by proceeding in bankruptcy or otherwise, whether for the specific
enforcement of any covenant or agreement contained in this Indenture or in aid
of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.

     SECTION 5.06. Remedies Cumulative and Continuing.
                   -----------------------------------

     Except as otherwise provided in the last paragraph of Section 2.08 with
respect to the replacement or payment of mutilated, lost or stolen Securities,
all powers and remedies given by this Article V to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any other powers and remedies available to the Trustee, the
Holders of the Securities or any registered holder of any Preferred Securities,
by judicial proceedings or otherwise, to enforce the performance or observance
of the covenants and agreements contained in this Indenture or otherwise
established with respect to such series, and no delay or omission of the
Trustee, any Holder of any of the Securities or any registered holder of any
Preferred Securities to exercise any right or power accruing upon any Event of
Default occurring and continuing as aforesaid shall impair any such right or
power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 5.04, every
power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

     SECTION 5.07. Direction of Proceedings and Waiver of Defaults by Majority
                   -----------------------------------------------------------
                   of Securityholders.
                   -------------------

     The Holders of a majority in aggregate principal amount of the Securities
of any series at the time outstanding shall have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, in respect
of such Securities; provided, however, that (subject to the provisions of
Section 6.01) the Trustee shall have the right to decline to follow any such
direction if the Trustee shall determine that the action so directed would be
unjustly prejudicial to the Holders that are entitled but fail to take part in
such direction or if the Trustee being advised by counsel determines that the
action or proceeding so directed may not lawfully be taken or if the Trustee

                                       28

<PAGE>

in good faith by its board of directors or trustees, executive committee, or a
trust committee of directors or trustees and/or Responsible Officers shall
determine that the action or proceedings so directed would involve the Trustee
in personal liability. Prior to any declaration accelerating the maturity of any
series of the Securities, the Holders of a majority in aggregate principal
amount of the Securities of that series at the time outstanding may on behalf of
the Holders of all of the Securities of such series waive any past default or
Event of Default, including any default established pursuant to Section 2.03 and
its consequences, except a default (a) in the payment of principal of, or
premium, if any, or interest on any of the Securities, (b) in respect of
covenants or provisions hereof which cannot be modified or amended without the
consent of the Holder of each Security affected, or (c) a default of the
covenants contained in Section 3.06; provided, however, that if the Securities
of such series are held by a Colonial Capital Trust or a trustee of such trust,
such waiver or modification to such waiver shall not be effective until the
registered holders of a majority in aggregate liquidation amount of Preferred
Securities then outstanding of the applicable Colonial Capital Trust shall have
consented to such waiver or modification to such waiver; provided further, that
if the consent of the Holder of each outstanding Security is required, such
waiver or modification to such waiver shall not be effective until each
registered holder of the Preferred Securities then outstanding of the applicable
Colonial Capital Trust shall have consented to such waiver. Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the Holders of the Securities
of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon. Whenever any default or Event of Default
hereunder shall have been waived as permitted by this Section 5.07, said default
or Event of Default shall for all purposes of the Securities of that series and
this Indenture be deemed to have been cured and to be not continuing.

     The foregoing provisions shall be in lieu of Sections 316(a)(1)(A) and
316(a)(1)(B) of the Trust Indenture Act and such sections are hereby expressly
excluded from this Indenture and the Securities, as permitted by the Trust
Indenture Act.

     SECTION 5.08. Notice of Defaults.
                   -------------------

     The Trustee shall, within 60 days after the occurrence of a default with
respect to the Securities of any series, mail to all Securityholders of that
series, as the names and addresses of such Holders appear upon the Security
Register, notice of all defaults with respect to that series known to the
Trustee, unless such defaults shall have been cured before the giving of such
notice (the term "defaults" for the purpose of this Section 5.08 being hereby
defined to be the events specified in clauses (a), (b), (c), (d), (e) and (f) of
Section 5.01, not including periods of grace, if any, provided for therein, and
irrespective of the giving of any written notice provided for therein); and
provided that, except in the case of default in the payment of the principal of,
or premium, if any, or interest on any of the Securities of such series, the
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 Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Securityholders of such
series; and provided further, that in the case of any default of the character
specified in Section 5.01(c), no such notice to Securityholders of such series
shall be given until at least 60 days after the Trustee

                                       29

<PAGE>

has notified the Company of such occurrence but shall be given within 90 days
after such occurrence.

     SECTION 5.09. Undertaking to Pay Costs.
                   -------------------------

     All parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 5.09 shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, of any series, holding in the aggregate 10% or more in
aggregate principal amount of the Securities of that series outstanding, or to
any suit instituted by any Securityholder for the enforcement of the payment of
the principal of (or premium, if any) or interest on any Security against the
Company on or after the same shall have become due and payable.

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

     SECTION 6.01. Duties and Responsibilities of Trustee.
                   ---------------------------------------

     With respect to the Holders of any series of Securities issued hereunder,
the Trustee, prior to the occurrence of an Event of Default with respect to
securities of that series and after the curing or waiving of all Events of
Default which may have occurred, with respect to securities of that series,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default with respect to the
Securities of a series has occurred (which has not been cured or waived) the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, 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.

     No provision of this Indenture shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct, except that

     (a) prior to the occurrence of an Event of Default with respect to
Securities of a series and after the curing or waiving of all Events of Default
with respect to that series which may have occurred

          (1) the duties and obligations of the Trustee with respect to
     Securities of a series shall be determined solely by the express provisions
     of this Indenture, and the Trustee shall not be liable except for the
     performance of such duties and obligations with respect to such series as
     are specifically set forth in this Indenture, and no implied covenants or
     obligations shall be read into this Indenture against the Trustee; and

                                       30

<PAGE>

          (2) in the absence of bad faith on the part of the Trustee, the
     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 Trustee and conforming to the requirements of
     this Indenture; but, in the case of any such certificates or opinions which
     by any provision hereof are specifically required to be furnished to the
     Trustee, the Trustee shall be under a duty to examine the same to determine
     whether or not they conform to the requirements of this Indenture;

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

     (c) the 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
Securityholders pursuant to Section 5.07, relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

     None of the provisions contained in this Indenture shall require the
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 there is reasonable ground for believing that the
repayment of such funds or liability is not reasonably assured to it under the
terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

     SECTION 6.02. Reliance on Documents, Opinions, etc.
                   -------------------------------------

     Except as otherwise provided in Section 6.01:

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

     (b) any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any Board
Resolution may be evidenced to the Trustee by a copy thereof certified by the
Secretary or an Assistant Secretary of the Company;

     (c) the Trustee may consult with counsel of its selection and any advice or
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel;

     (d) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders, pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities which
may be incurred therein or thereby;

                                       31

<PAGE>

     (e) the Trustee shall not be liable for any action taken or omitted by it
in good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default with respect to a series of the Securities (that has not been
cured or waived) to exercise with respect to Securities of that series such of
the rights and powers vested in it by this Indenture, and to 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;

     (f) the Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, debenture,
coupon or other paper or document, unless requested in writing to do so by the
Holders of not less than a majority in principal amount of the outstanding
Securities of the series affected thereby; provided, however, that if the
payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
indemnity satisfactory to the Trustee against such expense or liability as a
condition to so proceeding;

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

     (h) the 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 Indenture;

     (i) the Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is
received by the Trustee at the designated corporate trust office of the Trustee,
and such notice references the Securities and this Indenture;

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

     (k) the Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any person authorized to sign an
Officers' Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

                                       32

<PAGE>

     SECTION 6.03. No Responsibility for Recitals, etc.
                   ------------------------------------

     The recitals contained herein and in the Securities (except in the
Certificate of Authentication of the Trustee or the Authenticating Agent) shall
be taken as the statements of the Company and the Trustee and the Authenticating
Agent assume no responsibility for the correctness of the same. The Trustee and
the Authenticating Agent make no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee and the
Authenticating Agent shall not be accountable for the use or application by the
Company of any Securities or the proceeds of any Securities authenticated and
delivered by the Trustee or the Authenticating Agent in conformity with the
provisions of this Indenture.

     SECTION 6.04. Trustee, Authenticating Agent, Paying Agents, Transfer Agents
                   or Registrar May Own Securities.
                   -------------------------------------------------------------

     The Trustee or any Authenticating Agent or any paying agent or any transfer
agent or any Security registrar, in its individual or any other capacity, may
become the owner or pledgee of Securities with the same rights it would have if
it were not Trustee, Authenticating Agent, paying agent, transfer agent or
Security registrar.

     SECTION 6.05. Moneys to be Held in Trust.
                   ---------------------------

     Subject to the provisions of Section 11.04, all moneys received by the
Trustee or any paying agent shall, until used or applied as herein provided, be
held in trust for the purpose for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
and any paying agent shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.
So long as no Event of Default shall have occurred and be continuing, all
interest allowed on any such moneys shall be paid from time to time upon the
written order of the Company, signed by the Chairman of the Board of Directors,
the President, any Vice President, the Treasurer or any Assistant Treasurer of
the Company.

     SECTION 6.06. Compensation and Expenses of Trustee.
                   -------------------------------------

     The Company covenants and agrees to pay to the Trustee from time to time,
and the Trustee shall be entitled to, such compensation as shall be agreed in
writing between the Company and the Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust), and the Company will pay or reimburse the Trustee upon its request for
all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all persons not regularly in its employ and any amounts paid by the
Trustee to any Authenticating Agent pursuant to Section 6.14) except any such
expense, disbursement or advance as may arise from its negligence or bad faith.
The Company also covenants to indemnify each of the Trustee and any predecessor
Trustee (and its officers, agents, directors and employees) for, and to hold it
harmless against, any and all loss, liability, damages, claim or expense,
including taxes (other than taxes based on the income of the Trustee) incurred
without negligence or bad faith on the part of the Trustee and arising out of or
in connection with the acceptance or administration of

                                       33

<PAGE>

this trust, including the costs and expenses of defending itself against any
claim (whether asserted by the Company, a Holder of Securities or any other
Person) of liability in the premises. The obligations of the Company under this
Section 6.06 to compensate and indemnify the Trustee and to pay or reimburse the
Trustee for expenses, disbursements and advances shall constitute additional
indebtedness hereunder, and shall survive the resignation or removal of the
Trustee and the termination of this Indenture. Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the benefit of the Holders of particular Securities.

     When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.01(d) or Section 5.01(e), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency or
other similar law.

     The provisions of this Section shall survive the termination of this
Indenture.

     SECTION 6.07. Officers' Certificate as Evidence.
                   ----------------------------------

     Except as otherwise provided in Sections 6.01 and 6.02, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
omitting any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers' Certificate delivered to the Trustee, and such
certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken or omitted by
it under the provisions of this Indenture upon the faith thereof.

     SECTION 6.08. Conflicting Interest of Trustee.
                   --------------------------------

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

     SECTION 6.09. Eligibility of Trustee.
                   -----------------------

     The Trustee hereunder shall at all times 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 other
Person permitted to act as trustee by the Commission authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least $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 aforesaid supervising or examining authority, then for the purposes of
this Section 6.09 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.

                                       34

<PAGE>

     The Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee.

     In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 6.09, the Trustee shall resign immediately
in the manner and with the effect specified in Section 6.10.

     SECTION 6.10. Resignation or Removal of Trustee.
                   ----------------------------------

     (a) The Trustee, or any trustee or trustees hereafter appointed, may at any
time resign with respect to one or more or all series of Securities by giving
written notice of such resignation to the Company and by mailing notice thereof
to the Holders of the applicable series of Securities at their addresses as they
shall appear on the Security Register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee or trustees
with respect to the applicable series by written instrument, in duplicate,
executed by order of its Board of Directors, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed with respect to any series of
Securities and have accepted appointment within 30 days after the mailing of
such notice of resignation to the affected Securityholders, the resigning
Trustee may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor trustee, or any Securityholder
who has been a bona fide Holder of a Security or Securities of the applicable
series for at least six months may, subject to the provisions of Section 5.09,
on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b) In case at any time any of the following shall occur -

          (i) the Trustee shall fail to comply with the provisions of Section
     6.08 after written request therefor by the Company or by any Securityholder
     who has been a bona fide Holder of a Security or Securities for at least
     six months, or

          (ii) the Trustee shall cease to be eligible in accordance with the
     provisions of Section 6.09 and shall fail to resign after written request
     therefor by the Company or by any such Securityholder, or

          (iii) the Trustee shall become incapable of acting, or shall be
     adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
     property shall be appointed, or any public officer shall take charge or
     control of the Trustee or of its property or affairs for the purpose of
     rehabilitation, conservation or liquidation,

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 5.09, any Securityholder who has been a bona fide Holder
of a Security or Securities of the applicable series for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of
a successor trustee. Such court may thereupon, after such

                                       35

<PAGE>

notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the
Securities of any series at the time outstanding may at any time remove the
Trustee with respect to such series and nominate a successor trustee with
respect to the applicable series of Securities or all series, as the case may
be, which shall be deemed appointed as successor trustee with respect to the
applicable series unless within 10 days after such nomination the Company
objects thereto, in which case the Trustee so removed or any Securityholder of
the applicable series, upon the terms and conditions and otherwise as provided
in subsection (a) of this Section 6.10, may petition, at the expense of the
Company, any court of competent jurisdiction for an appointment of a successor
trustee with respect to such series.

     (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 6.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 6.11.

     SECTION 6.11. Acceptance by Successor Trustee.
                   --------------------------------

     Any successor trustee appointed as provided in Section 6.10 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the retiring trustee with respect to all or any applicable series
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to such series of its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the
written request of the Company or of the successor trustee, the trustee ceasing
to act shall, upon payment of any amounts then due it pursuant to the provisions
of Section 6.06, execute and deliver an instrument transferring to such
successor trustee all the rights and powers of the trustee so ceasing to act and
shall duly assign, transfer and deliver to such successor trustee all property
and money held by such retiring trustee thereunder. Upon request of any such
successor trustee, the Company shall execute any and all instruments in writing
for more fully and certainly vesting in and confirming to such successor trustee
all such rights and powers. Any trustee ceasing to act shall, nevertheless,
retain a lien upon all property or funds held or collected by such trustee to
secure any amounts then due it pursuant to the provisions of Section 6.06.

     If a successor trustee is appointed with respect to the Securities of one
or more (but not all) series, the Company, the retiring trustee and each
successor trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring trustee with respect to the
Securities of any series as to which the predecessor trustee is not retiring
shall continue to be vested in the predecessor trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trustee hereunder by more than one
trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such trustees co-trustees of the same trust and that
each such trustee shall be trustee of a trust or

                                       36

<PAGE>

trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such trustee.

     No successor trustee shall accept appointment as provided in this Section
6.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 6.08 and eligible under the provisions
of Section 6.09.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 6.11, the Company shall mail notice of the succession of such trustee
hereunder to the Holders of Securities of any applicable series at their
addresses as they shall appear on the Security Register. If the Company fails to
mail such notice within 10 days after the acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be mailed at
the expense of the Company.

     SECTION 6.12. Succession by Merger, etc.
                   --------------------------

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder without
the execution or filing of any paper or any further act on the part of any of
the parties hereto.

     In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Securities of any series shall have
been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor trustee, and deliver
such Securities so authenticated; and in case at that time any of the Securities
of any series shall not have been authenticated, any successor to the Trustee
may authenticate such Securities either in the name of any predecessor hereunder
or in the name of the successor trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Securities of such series
or in this Indenture provided that the certificate of the Trustee shall have;
provided, however, that the right to adopt the certificate of authentication of
any predecessor Trustee or authenticate Securities of any series in the name of
any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation.

     SECTION 6.13. Limitation on Rights of Trustee as a Creditor.
                   ----------------------------------------------

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent included therein.

     SECTION 6.14. Authenticating Agents.
                   ----------------------

     There may be one or more Authenticating Agents appointed by the Trustee
upon the request of the Company with power to act on its behalf and subject to
its direction in the authentication and delivery of Securities of any series
issued upon exchange or transfer thereof as fully to all intents and purposes as
though any such Authenticating Agent had been expressly

                                       37

<PAGE>

authorized to authenticate and deliver Securities of such series; provided, that
the Trustee shall have no liability to the Company for any acts or omissions of
the Authenticating Agent with respect to the authentication and delivery of
Securities of any series. Any such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States or
of any State or territory thereof or of the District of Columbia authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of at least $5,000,000 (US) and being 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 the requirements of such authority, then for the purposes of this Section
6.14 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. If at any time an Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect herein specified in this Section.

     Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, if such successor corporation is
otherwise eligible under this Section 6.14 without the execution or filing of
any paper or any further act on the part of the parties hereto or such
Authenticating Agent.

     Any Authenticating Agent may at any time resign with respect to one or more
or all series of Securities by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of
any Authenticating Agent with respect to one or more or all series of Securities
by giving written notice of termination to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any Authenticating Agent shall cease to be eligible under
this Section 6.14, the Trustee may, and upon the request of the Company shall,
promptly appoint a successor Authenticating Agent with respect to the applicable
series eligible under this Section 6.14, shall give written notice of such
appointment to the Company and shall mail notice of such appointment to all
Holders of the applicable series of Securities as the names and addresses of
such Holders appear on the Security Register. Any successor Authenticating Agent
with respect to all or any series upon acceptance of its appointment hereunder
shall become vested with all rights, powers, duties and responsibilities with
respect to such series of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein.

     The Company agrees to pay to any Authenticating Agent from time to time
reasonable compensation for its services. Any Authenticating Agent shall have no
responsibility or liability for any action taken by it as such in accordance
with the directions of the Trustee.

                                       38

<PAGE>

                                  ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

     SECTION 7.01. Action by Securityholders.
                   --------------------------

     Whenever in this Indenture it is provided that the Holders of a specified
percentage in aggregate principal amount of the Securities of any or all series
may take any action (including the making of any demand or request, the giving
of any notice, consent or waiver or the taking of any other action) the fact
that at the time of taking any such action the Holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by such Securityholders in
person or by agent or proxy appointed in writing, or (b) by the record of such
Holders of Securities voting in favor thereof at any meeting of such
Securityholders duly called and held in accordance with the provisions of
Article VIII hereof, or (c) by a combination of such instrument or instruments
and any such record of such a meeting of such Securityholders.

     If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

     SECTION 7.02. Proof of Execution by Securityholders.
                   --------------------------------------

     Subject to the provisions of Section 6.01, 6.02 and 8.05, proof of the
execution of any instrument by a Securityholder or his agent or proxy shall be
sufficient if made in accordance with such reasonable rules and regulations as
may be prescribed by the Trustee or in such manner as shall be satisfactory to
the Trustee. The ownership of Securities shall be proved by the Security
Register or by a certificate of the Security registrar. The Trustee may require
such additional proof of any matter referred to in this Section as it shall deem
necessary.

     The record of any Securityholders' meeting shall be proved in the manner
provided in Section 8.06.

                                       39

<PAGE>

     SECTION 7.03. Who Are Deemed Absolute Owners.
                   -------------------------------

     Prior to due presentment for registration of transfer of any Security, the
Company, the Trustee, any Authenticating Agent, any paying agent, any transfer
agent and any Security registrar may deem the person in whose name such Security
shall be registered upon the Security Register to be, and may treat him as, the
absolute owner of such Security (whether or not such Security shall be overdue)
for the purpose of receiving payment of or on account of the principal of, and
premium, if any, and interest on such Security and for all other purposes; and
neither the Company nor the Trustee nor any Authenticating Agent nor any paying
agent nor any transfer agent nor any Security registrar shall be affected by any
notice to the contrary.

     SECTION 7.04. Securities Owned by Company Deemed Not Outstanding.
                   ---------------------------------------------------

     In determining whether the Holders of the requisite aggregate principal
amount of Securities have concurred in any direction, consent or waiver under
this Indenture, Securities which are owned by the Company or any other obligor
on the Securities or by any person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
other obligor on the Securities shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver, only Securities which a Responsible Officer
of the Trustee actually knows are so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 7.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee's right to vote such Securities and that
the pledgee is not the Company or any such other obligor or person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor. In the case of a dispute as
to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

     SECTION 7.05. Revocation of Consents; Future Holders Bound.
                   ---------------------------------------------

     At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 7.01, of the taking of any action by the Holders of the
percentage in aggregate principal amount of the Security specified in this
Indenture in connection with such action, any Holder of a Security (or any
Security issued in whole or in part in exchange or substitution therefor) the
serial number of which is shown by the evidence to be included in the Securities
the Holders of which have consented to such action may, by filing written notice
with the Trustee at its principal office and upon proof of holding as provided
in Section 7.02, revoke such action so far as concerns such Security (or so far
as concerns the principal amount represented by any exchanged or substituted
Security). Except as aforesaid any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Security, and of any Security issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Security or any Security issued in exchange or
substitution therefor.

<PAGE>

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

     SECTION 8.01. Purposes of Meetings.
                   ---------------------

     A meeting of Securityholders of any or all series may be called at any time
and from time to time pursuant to the provisions of this Article VIII for any of
the following purposes:

     (a) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default hereunder
and its consequences, or to take any other action authorized to be taken by
Securityholders pursuant to any of the provisions of Article V hereof;

     (b) to remove the Trustee and nominate a successor trustee pursuant to the
provisions of Article VI hereof;

     (c) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 9.02; or

     (d) to take any other action authorized to be taken by or on behalf of the
Holders of any specified aggregate principal amount of such Securities under any
other provision of this Indenture or under applicable law.

     SECTION 8.02. Call of Meetings by Trustee.
                   ----------------------------

     The Trustee may at any time call a meeting of Securityholders of any or all
series to take any action specified in Section 8.01, to be held at such time and
at such place in the Borough of Manhattan, The City of New York, as the Trustee
shall determine. Notice of every meeting of the Securityholders of any or all
series, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be mailed to
Holders of Securities of each series affected at their addresses as they shall
appear on the Securities register of such series. Such notice shall be mailed
not less than 20 nor more than 180 days prior to the date fixed for the meeting.

     SECTION 8.03. Call of Meetings by Company or Securityholders.
                   -----------------------------------------------

     In case at any time the Company pursuant to a resolution of the Board of
Directors, or the Holders of at least 10% in aggregate principal amount of the
Securities of any or all series, as the case may be, then outstanding, shall
have requested the Trustee to call a meeting of Securityholders of any or all
series, as the case may be, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not
have mailed the notice of such meeting within 20 days after receipt of such
request, then the Company or such Securityholders may determine the time and the
place in said Borough of Manhattan for such meeting and may call such meeting to
take any action authorized in Section 8.01, by mailing notice thereof as
provided in Section 8.02.

                                       41

<PAGE>

     SECTION 8.04. Qualifications for Voting.
                   --------------------------

     To be entitled to vote at any meeting of Securityholders a person shall (a)
be a Holder of one or more Securities with respect to which the meeting is being
held or (b) a person appointed by an instrument in writing as proxy by a Holder
of one or more such Securities. The only persons who shall be entitled to be
present or to speak at any meeting of Securityholders shall be the persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.

     SECTION 8.05. Regulations.
                   ------------

     Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Securities and of the
appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Securityholders as provided in Section 8.03, in which case the
Company or the Securityholders calling the meeting, as the case may be, shall in
like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.

     Subject to the provisions of Section 7.04, at any meeting each Holder of
Securities with respect to which such meeting is being held or proxy therefor
shall be entitled to one vote for each $1,000 principal amount of Securities
held or represented by him; provided, however, that no vote shall be cast or
counted at any meeting in respect of any Security challenged as not outstanding
and ruled by the chairman of the meeting to be not outstanding. The chairman of
the meeting shall have no right to vote other than by virtue of Securities held
by him or instruments in writing as aforesaid duly designating him as the person
to vote on behalf of other Securityholders. Any meeting of Securityholders duly
called pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from
time to time by a majority of those present, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.

     SECTION 8.06. Voting.
                  -------

     The vote upon any resolution submitted to any meeting of Holders of
Securities with respect to which such meeting is being held shall be by written
ballots on which shall be subscribed the signatures of such Holders or of their
representatives by proxy and the serial number or numbers of the Securities held
or represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or against
any resolution and who shall make and file with the secretary of the meeting
their verified written reports in triplicate of all votes cast at the meeting. A
record in duplicate of the proceedings of each meeting of Securityholders shall
be prepared by the secretary of the meeting and there shall be attached to said
record the original reports of the inspectors of votes on any

                                       42

<PAGE>

vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 8.02. The record
shall show the serial numbers of the Securities voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.

     Any record so signed and verified shall be conclusive evidence of the
matters therein stated.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     SECTION 9.01. Supplemental Indentures without Consent of Securityholders.
                   -----------------------------------------------------------

     The Company and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect), without the consent of
the Securityholders, for one or more of the following purposes:

     (a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by the successor corporation of the
covenants, agreements and obligations of the Company pursuant to Article X
hereof;

     (b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less
than all series of Securities stating that such covenants are expressly being
included for the benefit of such series) as the Board of Directors and the
Trustee shall consider to be for the protection of the Holders of such
Securities, and to make the occurrence, or the occurrence and continuance, of a
default in any of such additional covenants, restrictions or conditions a
default or an Event of Default permitting the enforcement of all or any of the
several remedies provided in this Indenture as herein set forth; provided,
however, that in respect of any such additional covenant, restriction or
condition such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such
default;

     (c) to provide for the issuance under this Indenture of Securities in
bearer form and to provide for exchangeability of such Securities with the
Securities issued hereunder in fully registered form and to make all appropriate
changes for such purpose;

     (d) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture, or to make such other provisions in regard to matters or questions
arising under this Indenture; provided that any such action shall not adversely
affect the interests of the Holders of the Securities in any material respect;

                                       43

<PAGE>

     (e) to add to, delete from, or revise the terms of Securities of any series
as permitted by Section 2.01 and 2.03, including, without limitation, any terms
relating to the issuance, exchange, registration or transfer of Securities
issued in whole or in part in the form of one or more Global Securities and the
payment of any principal thereof, or interest or premium, if any, thereon;

     (f) to evidence and provide for the acceptance of appointment hereunder by
a successor trustee with respect to the Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one trustee, pursuant to the requirements of Section 6.11;

     (g) to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or

     (h) to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series, to establish the form of any
certifications required to be furnished pursuant to the terms of this Indenture
or any series of Securities, or to add to the rights of the Holders of any
series of Securities.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section
9.01 may be executed by the Company and the Trustee without the consent of the
Holders of any of the Securities at the time outstanding, notwithstanding any of
the provisions of Section 9.02.

     SECTION 9.02. Supplemental Indentures with Consent of Securityholders.
                   --------------------------------------------------------

     With the consent (evidenced as provided in Section 7.01) of the Holders of
a majority in aggregate principal amount of the Securities at the time
outstanding of each series affected by such supplemental indenture, the Company,
when authorized by a Board Resolution, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act then in effect) for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Securities of each
series so affected; provided, however, that no such supplemental indenture
shall, without the consent of the Holders of each Security affected thereby, (i)
change the stated Maturity of any such Security, or reduce the rate (or change
the manner of calculation of the rate) or change any date on which interest
thereon is payable, or reduce the principal amount thereof or any premium
thereon, or change any redemption or repayment date or period or price, or make
the principal thereof or any interest or premium thereon payable in any coin or
currency other than that provided in such Security, or impair or

                                       44

<PAGE>

affect the right of any Securityholder to institute suit for payment thereof,
(ii) reduce the aforesaid percentage of Securities the Holders of which are
required to consent to any such supplemental indenture or (iii) otherwise
materially and adversely affect the interests of the Holders of any such
Security; provided, further, that if the Securities of such series are held by a
Colonial Capital Trust or a trustee of such trust, such supplemental indenture
shall not be effective until the registered holders of a majority in aggregate
liquidation amount of Trust Securities of such Colonial Capital Trust shall have
consented to such supplemental indenture; provided further, that if the consent
of the Holder of each outstanding Security is required, such supplemental
indenture shall not be effective until each registered holder of the Trust
Securities of the applicable Colonial Capital Trust shall have consented to such
supplemental indenture.

     A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of Securityholders of such series with respect to such covenant or
provision, shall be deemed not to affect the rights under this Indenture or the
Securityholders of any other series.

     Upon the request of the Company accompanied by a copy of a resolution of
the Board of Directors certified by its Secretary or Assistant Secretary
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture. The Trustee may receive an Opinion of Counsel
as conclusive evidence that any supplemental indenture executed pursuant to this
Article is authorized or permitted by, and conforms to, the terms of this
Article and that it is proper for the Trustee under the provisions of this
Article to join in the execution thereof.

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, to be prepared by
the Company, setting forth in general terms the substance of such supplemental
indenture, to the Securityholders of all series affected thereby as their names
and addresses appear upon the Security Register. Any failure of the Trustee to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders under this
Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

     SECTION 9.03. Compliance with Trust Indenture Act; Effect of Supplemental
                   Indentures.
                   -------------------------------------------------------------

     Any supplemental indenture executed pursuant to the provisions of this
Article IX shall comply with the Trust Indenture Act, as then in effect. Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article IX, this Indenture shall be and be deemed to

                                       45

<PAGE>

be modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Company and the Holders of Securities of each series
affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

     SECTION 9.04. Notation on Securities.
                   -----------------------

     Securities of any series authenticated and delivered after the execution of
any supplemental indenture affecting such series pursuant to the provisions of
this Article IX may bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared and executed by the Company, authenticated by the Trustee or the
Authenticating Agent and delivered in exchange for the Securities of any series
then outstanding.

     SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be
                   Furnished Trustee.
                   ------------------------------------------------------

     The Trustee, subject to the provisions of Sections 6.01 and 6.02, may
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant hereto complies with
the requirements of this Article IX.

                                   ARTICLE X

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     SECTION 10.01. Company May Consolidate, etc., on Certain Terms.
                    ------------------------------------------------

     Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company, as the case may be), or successive
consolidations or mergers in which the Company or its successor or successors,
as the case may be, shall be a party or parties, or shall prevent any sale,
conveyance, transfer or lease of the property of the Company, or its successor
or successors, as the case may be, as an entirety, or substantially as an
entirety, to any other Person (whether or not affiliated with the Company or its
successor or successors, as the case may be) authorized to acquire and operate
the same; provided, that (a) the Company is the surviving Person, or the Person
formed by or surviving any such consolidation or merger (if other than the
Company) or to which such sale, conveyance, transfer or lease of property is
made is a corporation, partnership, trust or other entity organized and existing
under the laws of the United States or any State thereof or the District of
Columbia, (b) if the Company is not the surviving Person, upon any such
consolidation, merger, sale, conveyance, transfer or lease, the due and punctual
payment of the principal of and interest on the Securities according to their
tenor, and the due and punctual performance and observance of all the covenants
and conditions of this Indenture to be kept or performed by the Company shall be
expressly assumed by the

                                       46

<PAGE>

surviving Person, by supplemental indenture (which shall conform to the
provisions of the Trust Indenture Act as then in effect) satisfactory in form to
the Trustee executed and delivered to the Trustee by the Person formed by such
consolidation, or into which the Company shall have been merged, or by the
Person which shall have acquired such property, as the case may be, (c) after
giving effect to such consolidation, merger, sale, conveyance, transfer or
lease, no Default or Event of Default shall have occurred and be continuing, and
(d) such consolidation, merger, sale, conveyance, transfer or lease is permitted
under the Declaration and Preferred Securities Guarantee and does not give rise
to any breach or violation of the Declaration or Preferred Securities Guarantee.

     SECTION 10.02. Successor Corporation to be Substituted for Company.
                    ----------------------------------------------------

     In case of any such consolidation, merger, conveyance or transfer and upon
the assumption by the successor corporation, by supplemental indenture, executed
and delivered to the Trustee and satisfactory in form to the Trustee, of the due
and punctual payment of the principal of and premium, if any, and interest on
all of the Securities and the due and punctual performance and observance of all
of the covenants and conditions of this Indenture to be performed or observed by
the Company, such successor corporation shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein as the party of
the first part, and the Company thereupon shall be relieved of any further
liability or obligation hereunder or upon the Securities. Such successor
corporation thereupon may cause to be signed, and may issue either in its own
name or in the name of The Colonial BancGroup, Inc., any or all of the
Securities issuable hereunder which theretofore shall not have been signed by
the Company and delivered to the Trustee or the Authenticating Agent; and, upon
the order of such successor corporation instead of the Company and subject to
all the terms, conditions and limitations in this Indenture prescribed, the
Trustee or the Authenticating Agent shall authenticate and deliver any
Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee or the Authenticating Agent for authentication,
and any Securities which such successor corporation thereafter shall cause to be
signed and delivered to the Trustee or the Authenticating Agent for that
purpose. All the Securities so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all
of such Indentures had been issued at the date of the execution hereof.

     SECTION 10.03. Opinion of Counsel to be Given Trustee.
                    ---------------------------------------

     The Trustee, subject to the provisions of Sections 6.01 and 6.02, may
receive an Opinion of Counsel as conclusive evidence that any consolidation,
merger, conveyance or transfer, and any assumption, permitted or required by the
terms of this Article X complies with the provisions of this Article X.

                                       47

<PAGE>

                                   ARTICLE XI

                     SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 11.01. Discharge of Indenture.
                    -----------------------

     When (a) the Company shall deliver to the Trustee for cancellation all
Securities theretofore authenticated (other than any Securities which shall have
been destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.08) and not theretofore cancelled, or (b) all the
Securities not theretofore cancelled or delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become
due and payable within one year or are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and the Company shall deposit with the Trustee, in trust, (A) funds,
(B) U.S. Government Obligations or (C) a combination of (A) and (B) sufficient,
in the opinion (with respect to (B) and (C) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee and the Defeasance Agent, if any, to pay at maturity or
upon redemption all of the Securities (other than any Securities which shall
have been destroyed, lost or stolen and which shall have been replaced or paid
as provided in Section 2.08) not theretofore cancelled or delivered to the
Trustee for cancellation, including principal and interest (including Compound
Interest and Additional Sums, if any) due or to become due to such date of
maturity or redemption date, as the case may be, but excluding, however, the
amount of any moneys for the payment of principal of, and premium, if any, or
interest on the Securities (1) theretofore repaid to the Company in accordance
with the provisions of Section 11.04, or (2) paid to any State or to the
District of Columbia pursuant to its unclaimed property or similar laws, and if,
in either case, the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect, except that the provisions of Sections 2.05, 2.07, 2.08, 3.01,
3.02, 3.04, 6.06, 6.10 and 11.04 hereof shall survive until such Securities
shall mature and be paid. Thereafter, Sections 6.06 and 11.04 shall survive, and
the Trustee, on demand of the Company accompanied by any Officers' Certificate
and an Opinion of Counsel and at the cost and expense of the Company, shall
execute proper instruments acknowledging satisfaction of and discharging this
Indenture, the Company, however, hereby agreeing to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the Trustee
in connection with this Indenture or the Securities.

     SECTION 11.02. Deposited Moneys and U.S. Government Obligations to be Held
                    in Trust by Trustee.
                    ------------------------------------------------------------

     Subject to the provisions of Section 11.04, all moneys and U.S. Government
Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.05 shall
be held in trust and applied by it to the payment, either directly or through
any paying agent (including the Company if acting as its own paying agent), to
the Holders of the particular Securities for the payment of which such moneys or
U.S. Government Obligations have been deposited with the Trustee, of all sums
due and to become due thereon for principal, premium, if any, and interest.

                                       48

<PAGE>

SECTION 11.03.    Paying Agent to Repay Moneys Held.
                  ----------------------------------

     Upon the satisfaction and discharge of this Indenture all moneys then held
by any paying agent of the Securities (other than the Trustee) shall, upon
written demand of the Company, be repaid to it or paid to the Trustee, and
thereupon such paying agent shall be released from all further liability with
respect to such moneys.

SECTION 11.04.    Return of Unclaimed Moneys.
                  ---------------------------

     Any moneys deposited with or paid to the Trustee or any paying agent for
payment of the principal of, and premium, if any, or interest on Securities and
not applied but remaining unclaimed by the Holders of Securities for two years
after the date upon which the principal of, and premium, if any, or interest on
such Securities, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee or such paying agent on written demand; and
the Holder of any of the Securities shall thereafter look only to the Company
for any payment which such Holder may be entitled to collect and all liability
of the Trustee or such paying agent with respect to such moneys shall thereupon
cease.

SECTION 11.05.    Defeasance Upon Deposit of Moneys or U.S. Government
                  ----------------------------------------------------
                  Obligations.
                  ------------

     (a) The Company shall be deemed to have been Discharged (as defined below)
from its respective obligations with respect to any series of Securities upon
satisfaction of the applicable conditions set forth below with respect to any
series of Securities:

          (i) The Company shall have deposited or caused to be deposited
     irrevocably with the Trustee or the Defeasance Agent (as defined below) as
     trust funds in trust, specifically pledged as security for, and dedicated
     solely to, the benefit of the Holders of the Securities of such series (A)
     money in an amount, or (B) U.S. Government Obligations which through the
     payment of interest and principal in respect thereof in accordance with
     their terms will provide, not later than one day before the due date of any
     payment, money in an amount, or (C) a combination of (A) and (B),
     sufficient, in the opinion (with respect to (B) and (C)) of a nationally
     recognized firm of independent public accountants expressed in a written
     certification thereof delivered to the Trustee and the Defeasance Agent, if
     any, to pay and discharge each installment of principal (including any
     mandatory sinking fund payments) of, and interest and premium, if any, on,
     the outstanding Securities of such series on the dates such installments of
     principal, interest or premium are due;

          (ii) if the Securities of such series are then listed on any national
     securities exchange, the Company shall have delivered to the Trustee and
     the Defeasance Agent, if any, an Opinion of Counsel to the effect that the
     exercise of the option under this Section 11.05 would not cause such
     Securities to be delisted from such exchange;

          (iii) no Event of Default or event which with notice or lapse of time
     would become an Event of Default with respect to the Securities of such
     series shall have occurred and be continuing on the date of such deposit;
     and

                                       49

<PAGE>

          (iv) the Company shall have delivered to the Trustee and the
     Defeasance Agent, if any, an Opinion of Counsel to the effect that Holders
     of the Securities of such series will not recognize income, gain or loss
     for United States Federal income tax purposes as a result of the exercise
     of the option under this Section 11.05 and will be subject to United States
     Federal income tax on the same amount and in the same manner and at the
     same times as would have been the case if such option had not been
     exercised, and, in the case of the Securities of such series being
     Discharged, such opinion shall be accompanied by a private letter ruling to
     that effect received from the United States Internal Revenue Service or a
     revenue ruling pertaining to a comparable form of transaction to that
     effect published by the United States Internal Revenue Service.

     (b) "Discharged" means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities of such series and to have satisfied all the obligations under this
Indenture relating to the Securities of such series (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except (A) the rights of Holders of Securities of such series to receive,
from the trust fund described in clause (1) above, payment of the principal of
and the interest and premium, if any, on such Securities when such payments are
due; (B) the Company's obligations with respect to such Securities under
Sections 2.07, 2.08, 5.03 and 11.04; and (C) the rights, powers, trusts, duties
and immunities of the Trustee hereunder.

     (c) "Defeasance Agent" means a financial institution (including the
Trustee) which is eligible to act as Trustee hereunder and which assumes all of
the obligations of the Trustee necessary to enable the Trustee to act hereunder.
In the event such a Defeasance Agent is appointed pursuant to this section, the
following conditions shall apply:

          (i) The Trustee shall have approval rights over the document
     appointing such Defeasance Agent and the document setting forth such
     Defeasance Agent's rights and responsibilities;

          (ii) The Defeasance Agent shall provide verification to the Trustee
     acknowledging receipt of sufficient money and/or U.S. Government
     Obligations to meet the applicable conditions set forth in this Section
     11.05;

          (iii) The Trustee shall determine whether the Company shall be deemed
     to have been Discharged from its respective obligations with respect to any
     series of Securities.

                                  ARTICLE XII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

         SECTION 12.01. Indenture and Securities Solely Corporate Obligations.
                        ------------------------------------------------------

         No recourse for the payment of the principal of or premium, if any, or
interest on any Security, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in this Indenture or in any supplemental indenture, or in any
Security, or because of the creation of any indebtedness

                                       50

<PAGE>

represented thereby, shall be had against any incorporator, stockholder, officer
or director, as such, past, present or future, of the Company or of any
successor corporation of the Company, either directly or through the Company or
any successor corporation of the Company, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that all such liability is hereby
expressly waived and released as a condition of, and as a consideration for, the
execution of this Indenture and the issue of the Securities.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

         SECTION 13.01. Successors.
                        -----------

         All the covenants, stipulations, promises and agreements in this
Indenture contained by the Company shall bind its successors and assigns whether
so expressed or not.

         SECTION 13.02. Official Acts by Successor Corporation.
                        ---------------------------------------

         Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
like board, committee or officer of any corporation that shall at the time be
the lawful sole successor of the Company.

         SECTION 13.03. Surrender of Company Powers.
                        ----------------------------

         The Company by instrument in writing executed by authority of 2/3
(two-thirds) of its Board of Directors and delivered to the Trustee may
surrender any of the powers reserved to the Company, and thereupon such power so
surrendered shall terminate both as to the Company, as the case may be, and as
to any successor corporation.

         SECTION 13.04.    Addresses for Notices, etc.
                           ---------------------------

         Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the Holders of
Securities on the Company may be given or served by being deposited postage
prepaid by first class mail in a post office letter box addressed (until another
address is filed by the Company with the Trustee for the purpose) to the
Company, One Commerce Street, P.O. Box 1108, Montgomery, Alabama 36101-1108,
Attention: William A. McCrary, Senior Counsel. Any notice, direction, request or
demand by any Securityholder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or made in writing at the
office of the Trustee, addressed to the Trustee, The Bank of New York, c/o The
Bank of New York Trust Company of Florida, N.A., 10161 Centurion Parkway,
Jacksonville, Florida 32256, Attention: Corporate Trust Administration.

                                       51

<PAGE>

         SECTION 13.05.    Governing Law.
                           --------------

         This Indenture and each Security shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to conflicts
of laws principles thereof.

         SECTION 13.06.    Evidence of Compliance with Conditions Precedent.
                           -------------------------------------------------

         Upon any application or demand by the Company to the Trustee to take
any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that in the opinion of
the signers all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

         Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (1) a statement that the person
making such certificate or opinion has read such covenant or condition; (2) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

         SECTION 13.07.    Trust Indenture Act to Control.
                           -------------------------------

(a) If and to the extent that any provision of this Indenture limits, qualifies
or conflicts with another provision included in this Indenture which is required
to be included in this Indenture by any of Sections 310 to 317, inclusive, of
the Trust Indenture Act, such required provision shall control.

(b) Notwithstanding the foregoing, any provisions contained in this Indenture as
to directions and waivers by Securityholders or impairment of Securityholders'
rights to payment shall be in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B) of
the Trust Indenture Act and such sections are hereby expressly excluded from
this Indenture and the Securities, as permitted by the Trust Indenture Act.

         SECTION 13.08.    Table of Contents, Headings, etc.
                           ---------------------------------

         The table of contents and the titles and headings of the articles and
sections of this Indenture have been inserted for convenience of reference only,
are not to be considered a part hereof, and shall in no way modify or restrict
any of the terms or provisions hereof.

         SECTION 13.09.    Execution in Counterparts.
                           --------------------------

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

                                       52

<PAGE>

         SECTION 13.10. Separability.
                        -------------

         In case any one or more of the provisions contained in this Indenture
or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

                                  ARTICLE XIV

         REDEMPTION OF SECURITIES - MANDATORY AND OPTIONAL SINKING FUND

         SECTION 14.01.    Applicability of Article.
                           -------------------------

         The provisions of this Article shall be applicable to the Securities of
any series which are redeemable before their maturity or to any sinking fund for
the retirement of Securities of a series except as otherwise specified as
contemplated by Section 2.03 for Securities of such series.

         SECTION 14.02.    Notice of Redemption; Selection of Securities.
                           ----------------------------------------------

         In case the Company shall desire to exercise the right to redeem all,
or, as the case may be, any part of the Securities of any series in accordance
with their terms, it shall fix a date for redemption and shall mail a notice of
such redemption at least 30 and not more than 60 days prior to the date fixed
for redemption to the Holders of Securities of such series so to be redeemed as
a whole or in part at their last addresses as the same appear on the Security
Register. Such mailing shall be by first class mail. The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, failure to give
such notice by mail or any defect in the notice to the Holder of any Security of
a series designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Security of such
series.

         Each such notice of redemption shall identify the Securities to be
redeemed (including CUSIP numbers), specify the date fixed for redemption, the
redemption price at which Securities of such series are to be redeemed, the
place or places of payment, that payment will be made upon presentation and
surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice and that on and after said
date interest thereon or on the portions thereof to be redeemed will cease to
accrue. If less than all the Securities of such series are to be redeemed the
notice of redemption shall specify the numbers of the Securities of that series
to be redeemed. In case any Security of a series is to be redeemed in part only,
the notice of redemption shall state the portion of the principal amount thereof
to be redeemed and shall state that on and after the date fixed for redemption,
upon surrender of such Security, a new Security or Securities of that series in
principal amount equal to the unredeemed portion thereof will be issued.

         Prior to 10:00 a.m. New York City time on the redemption date specified
in the notice of redemption given as provided in this Section, the Company will
deposit with the Trustee or with one or more paying agents an amount of money
sufficient to redeem on the redemption date all

                                       53

<PAGE>

the Securities so called for redemption at the appropriate redemption price,
together with accrued interest to the date fixed for redemption.

         If the Securities of a series are to be redeemed, the Company will give
the Trustee notice not less than 60 days prior to the redemption date as to the
aggregate principal amount of Securities of that series to be redeemed and, in
the case of a partial redemption, the Trustee shall select, in such manner as in
its sole discretion it shall deem appropriate and fair, the Securities of that
series or portions thereof (in integral multiples of $1,000, except as otherwise
set forth in the applicable form of Security) to be redeemed.

         SECTION 14.03.    Payment of Securities Called for Redemption.
                           --------------------------------------------

         If notice of redemption has been given as provided in Section 14.02 or
Section 14.04, the Securities or portions of Securities of the series with
respect to which such notice has been given shall become due and payable on the
date and at the place or places stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for
redemption, and on and after said date (unless the Company shall default in the
payment of such Securities at the redemption price, together with interest
accrued to said date) interest on the Securities or portions of Securities of
any series so called for redemption shall cease to accrue. On presentation and
surrender of such Securities at a place of payment specified in said notice, the
said Securities or the specified portions thereof shall be paid and redeemed by
the Company at the applicable redemption price, together with interest accrued
thereon to the date fixed for redemption.

         Upon presentation of any Security of any series redeemed in part only,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder thereof, at the expense of the Company, a new Security or Securities of
such series of authorized denominations, in principal amount equal to the
unredeemed portion of the Security so presented.

         SECTION 14.04.    Mandatory and Optional Sinking Fund.
                           ------------------------------------

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". The last date on which any such payment may be made is
herein referred to as a "sinking fund payment date".

         In lieu of making all or any part of any mandatory sinking fund payment
with respect to any Securities of a series in cash, the Company may at its
option (a) deliver to the Trustee Securities of that series theretofore
purchased by the Company and (b) may apply as a credit Securities of that series
which have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of optional sinking fund
payments pursuant to the next succeeding paragraph, in each case in satisfaction
of all or any part of any mandatory sinking fund payment, provided that such
Securities have not been previously so credited. Each such Security so delivered
or applied as a credit shall be credited at the sinking fund redemption price
for such Securities and the amount of any mandatory sinking fund shall be
reduced accordingly. If the Company intends so to deliver or credit such
Securities

                                       54

<PAGE>

with respect to any mandatory sinking fund payment it shall deliver to the
Trustee at least 60 days prior to the next succeeding sinking fund payment date
for such series (a) a certificate signed by any Vice President, the Treasurer or
any Assistant Treasurer of the Company specifying the portion of such sinking
fund payment, if any, to be satisfied by payment of cash and the portion of such
sinking fund payment, if any, which is to be satisfied by delivering and
crediting such Securities and (b) any Securities to be so delivered. All
Securities so delivered to the Trustee shall be cancelled by the Trustee and no
Securities shall be authenticated in lieu thereof. If the Company fails to
deliver such certificate and Securities at or before the time provided above,
the Company shall not be permitted to satisfy any portion of such mandatory
sinking fund payment by delivery or credit of Securities.

         At its option the Company may pay into the sinking fund for the
retirement of Securities of any particular series, on or before each sinking
fund payment date for such series, any additional sum in cash as specified by
the terms of such series of Securities. If the Company intends to exercise its
right to make any such optional sinking fund payment, it shall deliver to the
Trustee at least 60 days prior to the next succeeding sinking fund payment date
for such Series a certificate signed by any Vice President, the Treasurer or any
Assistant Treasurer of the Company stating that the Company intends to exercise
such optional right and specifying the amount which the Company intends to pay
on such sinking fund payment date. If the Company fails to deliver such
certificate at or before the time provided above, the Company shall not be
permitted to make any optional sinking fund payment with respect to such sinking
fund payment date. To the extent that such right is not exercised in any year it
shall not be cumulative or carried forward to any subsequent year.

         If the sinking fund payment or payments (mandatory or optional) made in
cash plus any unused balance of any preceding sinking fund payments made in cash
shall exceed $50,000 (or a lesser sum if the Company shall so request) with
respect to the Securities of any particular series, it shall be applied by the
Trustee or one or more paying agents on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the date fixed for
redemption. The Trustee shall select, in the manner provided in Section 14.02,
for redemption on such sinking fund payment date a sufficient principal amount
of Securities of such series to absorb said cash, as nearly as may be, and the
Trustee shall, at the expense and in the name of the Company, thereupon cause
notice of redemption of Securities of such series to be given in substantially
the manner and with the effect provided in Sections 14.02 and 14.03 for the
redemption of Securities of that series in part at the option of the Company,
except that the notice of redemption shall also state that the Securities of
such series are being redeemed for the sinking fund. Any sinking fund moneys not
so applied or allocated by the Trustee or any paying agent to the redemption of
Securities of that series shall be added to the next cash sinking fund payment
received by the Trustee or such paying agent and, together with such payment,
shall be applied in accordance with the provisions of this Section 14.04. Any
and all sinking fund moneys held by the Trustee or any paying agent on the
maturity date of the Securities of any particular series, and not held for the
payment or redemption of particular Securities of such series, shall be applied
by the Trustee or such paying agent, together with other moneys, if necessary,
to be deposited sufficient for the purpose, to the payment of the principal of
the Securities of that series at maturity.

                                       55

<PAGE>

         On or before each sinking fund payment date, the Company shall pay to
the Trustee or to one or more paying agents in cash a sum equal to all interest
accrued to the date fixed for redemption on Securities to be redeemed on the
next following sinking fund payment date pursuant to this Section.

         Neither the Trustee nor any paying agent shall redeem any Securities of
a series with sinking fund moneys, and the Trustee shall not mail any notice of
redemption of Securities for such series by operation of the sinking fund,
during the continuance of a default in payment of interest on such Securities or
of any Event of Default (other than an Event of Default occurring as a
consequence of this paragraph), except that if the notice of redemption of any
Securities shall theretofore have been mailed in accordance with the provisions
hereof, the Trustee or any paying agent shall redeem such Securities if cash
sufficient for that purpose shall be deposited with the Trustee or such paying
agent for that purpose in accordance with the terms of this Article XIV. Except
as aforesaid, any moneys in the sinking fund for such series at the time when
any such default or Event of Default shall occur and any moneys thereafter paid
into the sinking fund shall, during the continuance of such default or Event of
Default, be held as security for the payment of all such Securities; provided,
however, that in case such Event of Default or default shall have been cured or
waived as provided herein, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date on which such moneys may be applied
pursuant to the provisions of this Section 14.04.

                                   ARTICLE XV

                           SUBORDINATION OF SECURITIES

         SECTION 15.01.    Agreement to Subordinate.
                           -------------------------

         If specified in an Officers' Certificate or an indenture supplemental
hereto relating to the Securities of any series, this Article XV shall apply.
The Company covenants and agrees, and each Holder of Securities issued
hereunder, by such Securityholder's acceptance thereof, likewise covenants and
agrees, that all Securities shall be issued subject to the provisions of this
Article XV; and each Holder of a Security, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such
provisions.

         The payment by the Company of the principal of, premium, if any, and
interest (including Compound Interest and Additional Sums, if any) on all
Securities issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to the prior payment
in full of all Senior Indebtedness of the Company and rank pari passu and
equivalent to creditor obligations of those holding general unsecured claims not
entitled to statutory priority under the United States Bankruptcy Code or
otherwise, in each case whether outstanding at the date of this Indenture or
thereafter incurred.

         No provision of this Article XV shall prevent the occurrence of any
default or Event of Default hereunder.

                                       56

<PAGE>

         SECTION 15.02.    Default on Senior Indebtedness.
                           -------------------------------

         No payment may be made of the principal of, premium, if any, or
interest on the Securities, or in respect of any redemption, retirement,
purchase or other acquisition of any of the Securities, at any time when (i)
there is a default in the payment of the principal of, premium, if any, interest
on or otherwise in respect of any Senior Indebtedness, whether at maturity or at
a date fixed for prepayment or by declaration or otherwise, or (ii) any event of
default with respect to any Senior Indebtedness has occurred and is continuing,
or would occur as a result of such payment on the Securities or any redemption,
retirement, purchase or other acquisition of any of the Securities, permitting
the Holders of such Senior Indebtedness (or a trustee on behalf of the Holders
thereof) to accelerate the maturity thereof.

         In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 15.02, such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the Holders of Senior
Indebtedness or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent
that the Holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and
only the amounts specified in such notice to the Trustee shall be paid to the
Holders of Senior Indebtedness.

         SECTION 15.03.    Liquidation; Dissolution; Bankruptcy.
                           -------------------------------------

         Upon any payment by the Company or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution, winding-up, liquidation or reorganization of the
Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due upon all Senior Indebtedness
of the Company shall first be paid in full, or payment thereof provided for in
money in accordance with their terms, before any payment is made by the Company
on account of the principal or interest (including Compound Interest and
Additional Sums, if any) on the Securities; and upon any such dissolution or
winding-up or liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, to which the Securityholders or the Trustee would be
entitled to receive from the Company, except under the provisions of this
Article XV, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Securityholders or by the Trustee under the Indenture if
received by them or it, directly to the Holders of Senior Indebtedness of the
Company (pro rata to such Holders on the basis of the respective amounts of
Senior Indebtedness held by such Holders, as calculated by the Company) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay such Senior Indebtedness in full, in money or money's worth,
after giving effect to any concurrent payment or distribution to or for the
Holders of such Senior Indebtedness, before any payment or distribution is made
to the Securityholders or to the Trustee.

                                       57

<PAGE>

         In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee before all Senior Indebtedness of the Company are paid in full, or
provision is made for such payment in money in accordance with its terms, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the Holders of such Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, and their respective interests may appear, as calculated
by the Company, for application to the payment of all Senior Indebtedness of the
Company, as the case may be, remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit of
the Holders of such Senior Indebtedness.

         For purposes of this Article XV, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article XV with respect
to the Securities to the payment of all Senior Indebtedness of the Company, as
the case may be, that may at the time be outstanding, provided that (i) such
Senior Indebtedness are assumed by the new corporation, if any, resulting from
any such reorganization or readjustment, and (ii) the rights of the Holders of
such Senior Indebtedness are not, without the consent of such Holders, altered
by such reorganization or readjustment. The consolidation of the Company with,
or the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article X of this Indenture shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes
of this Section 15.03 if such other corporation shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions stated
in Article X of this Indenture. Nothing in Section 15.02 or in this Section
15.03 shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 6.06 of this Indenture.

         SECTION 15.04.    Subrogation.
                           ------------

         Subject to the payment in full of all Senior Indebtedness of the
Company, the rights of the Securityholders shall be subrogated to the rights of
the Holders of such Senior Indebtedness to receive payments or distributions of
cash, property or securities of the Company, as the case may be, applicable to
such Senior Indebtedness until all amounts owing on the Securities shall be paid
in full; and, for the purposes of such subrogation, no payments or distributions
to the Holders of such Senior Indebtedness of any cash, property or securities
to which the Securityholders or the Trustee would be entitled except under the
provisions of this Article XV, and no payment over pursuant to the provisions of
this Article XV to or for the benefit of the Holders of such Senior Indebtedness
by Securityholders or the Trustee, shall, as between the Company, its creditors
other than Holders of Senior Indebtedness of the Company, and the Holders of the
Securities, be deemed to be a payment by the Company to or on account of such
Senior Indebtedness. It is understood that the provisions of this Article XV are
and are intended solely for the purposes of defining the relative rights of the
Holders of the Securities, on the one hand, and the Holders of such Senior
Indebtedness, on the other hand.

                                       58

<PAGE>

         Nothing contained in this Article XV or elsewhere in this Indenture or
in the Securities is intended to or shall impair, as between the Company, its
creditors other than the Holders of Senior Indebtedness of the Company, and the
Holders of the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of,
premium, if any, and interest (including Compound Interest and Additional Sums,
if any) on, the Securities as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative
rights of the Holders of the Securities and creditors of the Company, as the
case may be, other than the Holders of Senior Indebtedness of the Company, as
the case may be, nor shall anything herein or therein prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under the Indenture, subject to the rights, if any,
under this Article XV of the Holders of such Senior Indebtedness in respect of
cash, property or securities of the Company, as the case may be, received upon
the exercise of any such remedy.

         Upon any payment or distribution of assets of the Company referred to
in this Article XV, the Trustee, subject to the provisions of Article VI of this
Indenture, and the Securityholders shall be entitled to conclusively rely upon
any order or decree made by any court of competent jurisdiction in which such
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the Holders of Senior Indebtedness
and other indebtedness of the Company, as the case may be, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article XV.

         SECTION 15.05.    Trustee to Effectuate Subordination.
                           ------------------------------------

         Each Securityholder by such Securityholder's acceptance thereof
authorizes and directs the Trustee on such Securityholder's behalf to take such
action as may be necessary or appropriate to effectuate the subordination
provided in this Article XV and appoints the Trustee such Securityholder's
attorney-in-fact for any and all such purposes.

         SECTION 15.06.    Notice by the Company.
                           ----------------------

         The Company shall give prompt written notice to a Responsible Officer
of any fact known to the Company that would prohibit the making of any payment
of monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article XV. Notwithstanding the provisions of this Article XV
or any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to
the provisions of this Article XV, unless and until a Responsible Officer shall
have received written notice thereof from the Company or a Holder or Holders of
Senior Indebtedness or from any trustee therefor; and before the receipt of any
such written notice, the Trustee, subject to the provisions of Article VI of
this Indenture, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice
provided for in this Section 15.06 at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of

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the principal of or interest on any Security), then, anything herein contained
to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purposes for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

         The Trustee, subject to the provisions of Article VI of this Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by a Person representing himself to be a Holder of Senior Indebtedness of the
Company, as the case may be (or a trustee on behalf of such Holder), to
establish that such notice has been given by a Holder of such Senior
Indebtedness or a trustee on behalf of any such Holder or Holders. In the event
that the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a Holder of such Senior Indebtedness to
participate in any payment or distribution pursuant to this Article XV, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article XV, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

         SECTION 15.07.   Rights of the Trustee; Holders of Senior Indebtedness.
                          ------------------------------------------------------

         The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XV in respect of any Senior Indebtedness at any
time held by it, to the same extent as any other Holder of Senior Indebtedness
and nothing in this Indenture shall deprive the Trustee of any of its rights as
such Holder.

         Nothing in this Article XV shall apply to claims of, or payments to,
the Trustee under or pursuant to Section 6.06.

         With respect to the Holders of Senior Indebtedness of the Company, the
Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article XV, and no implied
covenants or obligations with respect to the Holders of such Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the Holders of such Senior Indebtedness and,
subject to the provisions of Article VI of this Indenture, the Trustee shall not
be liable to any Holder of such Senior Indebtedness if it shall pay over or
deliver to Securityholders, the Company or any other Person money or assets to
which any Holder of such Senior Indebtedness shall be entitled by virtue of this
Article XV or otherwise.

         SECTION 15.08.    Subordination May Not Be Impaired.
                           ----------------------------------

         No right of any present or future Holder of any Senior Indebtedness of
the Company to enforce subordination as herein provided shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company, as the case may be, or by any act or failure to act, in good faith, by
any such Holder, or by any noncompliance by the Company, as the case may be,
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such Holder may have or otherwise be charged with.

                                       60

<PAGE>

         Without in any way limiting the generality of the foregoing paragraph,
the Holders of Senior Indebtedness of the Company may, at any time and from time
to time, without the consent of or notice to the Trustee or the Securityholders,
without incurring responsibility to the Securityholders and without impairing or
releasing the subordination provided in this Article XV or the obligations
hereunder of the Holders of the Securities to the Holders of such Senior
Indebtedness do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, such
Senior Indebtedness, or otherwise amend or supplement in any manner such Senior
Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing such
Senior Indebtedness; (iii) release any Person liable in any manner for the
collection of such Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company, as the case may be, and any other
Person.

         The Bank of New York hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions hereinabove set forth.

                                       61

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed by their respective officers or agents thereunto duly authorized,
all as of the day and year first above written.

                                             THE COLONIAL BANCGROUP, INC.
Attest:

________________________________             By:________________________________
Name:                                           Name:
Title:                                          Title:

                                             THE BANK OF NEW YORK,
                                             as Trustee

                                             By:________________________________
                                                Name:
                                                Title:

                                       62

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