Document:

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                                                                     EXHIBIT 4.5
                              DECLARATION OF TRUST

                                       OF

                           COLONIAL CAPITAL TRUST III

         DECLARATION OF TRUST ("Declaration") dated and effective as of
February 22, 2002 by the Trustees (as defined herein), the Sponsor (as defined
herein), and by the holders, from time to time, of undivided beneficial
interests in the assets of the Trust to be issued from time to time.

         WHEREAS, the Trustees and the Sponsor desire to establish a trust (the
"Trust") pursuant to the Delaware Business Trust Act for the purpose of issuing
and selling the Preferred Securities (as defined herein) and investing the
proceeds thereof in certain Debentures of the Debenture Issuer (as both terms
are defined herein); and

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

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1 Definitions.

         Unless the context otherwise requires:

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

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

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

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

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

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

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

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

         "Commission" means the Securities and Exchange Commission.

         "Common Security" means a security representing an undivided beneficial
interest in the assets of the Trust with such terms as may be set out in any
amendment to this Declaration.

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

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

         "Debenture Issuer" means the Parent in its capacity as the issuer of
the Debentures under the Indenture.

         "Debentures" means the series of Debentures to be issued by the
Debenture Issuer and acquired by the Trust.

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

         "Delaware Trustee" has the meaning set forth in Section 3.1.

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

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

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

         "Indenture" means the indenture to be entered into between the Parent
and the Debenture Trustee and any indenture supplemental thereto pursuant to
which the Debentures are to be issued.

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         "Institutional Trustee" has the meaning set forth in Section 3.4.

         "Parent" means Colonial BancGroup, Inc., a Delaware corporation, or any
successor entity in a merger.

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

         "Preferred Security" means a security representing an undivided
beneficial interest in the assets of the Trust with such terms as may be set out
in any amendment to this Declaration.

         "Regular Trustee" means any Trustee other than the Delaware Trustee and
the Institutional Trustee.

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

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

         "Sponsor" means the Parent in its capacity as sponsor of the Trust.

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

                                   ARTICLE II
                                  ORGANIZATION

         SECTION 2.1  Name.

         The Trust created by this Declaration is named "Colonial Capital Trust
III." The activities of the Trust may be conducted under the name of the Trust
or any other name deemed advisable by the Regular Trustees.

         SECTION 2.2  Office.

         The address of the principal office of the Trust is c/o The Colonial
BancGroup, Inc., One Commerce Street, Suite 800, Montgomery, Alabama 36104. At
any time, the Regular Trustees may designate another principal office.

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         SECTION 2.3  Purpose.

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

         SECTION 2.4  Authority.

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

         SECTION 2.5  Title to Property of the Trust.

         Legal title to all assets of the Trust shall be vested in the Trust.

         SECTION 2.6  Powers of the Trustees.

         The Regular Trustees shall have the exclusive power and authority to
cause the Trust to engage in the following activities:

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

         (b)  in connection with the issue and either sale or exchange of the
              Preferred Securities to:

               (i)   execute and file with the Commission one or more
                     registration statements on Form S-3 prepared by the
                     Sponsor, including any and all amendments thereto in
                     relation to the Preferred Securities;

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

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

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

               (v)   execute and enter into a purchase agreement, an
                     underwriting agreement and/or a pricing agreement providing
                     for the sale of the Preferred Securities; and

               (vi)  execute and enter into letters, documents or instruments
                     with The Depository Trust Company.

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

         (d)   to incur expenses which are necessary or incidental to carry out
               any of the purposes of this Declaration; and

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

         SECTION 2.7   Filing of Certificate of Trust.

         On or after the date of execution of this Declaration, the Trustees
shall cause the filing of the Certificate of Trust for the Trust with the
Secretary of State of the State of Delaware.

         SECTION 2.8   Duration of Trust.

         The Trust, absent dissolution pursuant to the provisions of Section
5.2, shall have existence for fifty-five (55) years from the date hereof.

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         SECTION 2.9   Responsibilities of the Sponsor.

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

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

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

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

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

         (e)   to negotiate the terms of a purchase agreement, an underwriting
               agreement and/or a pricing agreement providing for the sale of
               the Preferred Securities; and

         (f)   to negotiate the terms of letters, documents or instruments with
               The Depository Trust Company.

         SECTION 2.10  Declaration Binding on Securities Holders.

         Every Person by virtue of having become a holder of a Security or any
interest therein in accordance with the terms of this Declaration, shall be
deemed to have expressly assented and agreed to the terms of, and shall be bound
by, this Declaration.

                                   ARTICLE III

                                    TRUSTEES

         SECTION 3.1  Trustees.
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         The number of Trustees initially shall be five (5), and thereafter the
number of Trustees shall be such number as shall be fixed from time to time by a
written instrument signed by the Sponsor. The Sponsor is entitled to appoint or
remove without cause any Trustee at any time; provided, however, that the number
of Trustees shall in no event be less than two (2); provided further that one
Trustee, in the case of a natural person, shall be a person who is a resident of
the State of Delaware or that, if not a natural person, is an entity which has
its principal place of business in the State of Delaware (the "Delaware
Trustee"); provided further that there shall be at least one trustee who is an
employee or officer of, or is affiliated with the Parent (a "Regular Trustee").

         SECTION 3.2  Regular Trustees.

         The initial Regular Trustees shall be W. Flake Oakley, Mary L. Bathen,
and William A. McCrary.

         (a)   except as expressly set forth in this Declaration, any power of
               the Regular Trustees may be exercised by, or with the consent of,
               any one such Regular Trustee.

         (b)   Except as otherwise required by applicable law, any Regular
               Trustee is authorized to execute on behalf of the Trust any
               documents which the Regular Trustees have the power and authority
               to cause the Trust to execute pursuant to Section 2.6; and

         (c)   a Regular Trustee may, by power of attorney consistent with
               applicable law, delegate to any other natural person over the age
               of 21 his or her power for the purposes of signing any documents
               which the Regular Trustees have power and authority to cause the
               Trust to execute pursuant to Section 2.6.

         SECTION 3.3   Delaware Trustee.

         The initial Delaware Trustee shall be The Bank of New York (Delaware).

         Notwithstanding any other provision of this Declaration, the Delaware
Trustee shall not be entitled to exercise any of the powers, nor shall the
Delaware Trustee have any of the duties and responsibilities of the Regular
Trustees described in this Declaration. The Delaware Trustee shall be a Trustee
for the sole and limited purpose of fulfilling the requirements of Section 3807
of the Business Trust Act. Notwithstanding anything herein to the contrary, the
Delaware Trustee shall not be liable for the acts or omissions to act of the
Trust or of the Regular Trustees except such acts as the Delaware Trustee is
expressly obligated or authorized to undertake under this Declaration or the
Business Trust Act and except for the gross negligence or willful misconduct of
the Delaware Trustee.

         SECTION 3.4   Institutional Trustee.

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         Prior to the issuance of the Preferred Securities and Common
Securities, the Sponsor shall appoint another trustee (the "Institutional
Trustee") meeting the requirements of an eligible trustee of the Trust Indenture
Act of 1939, as amended, by the execution of an amendment to this Declaration
executed by the Regular Trustees, the Sponsor, the Institutional Trustee and the
Delaware Trustee.

         SECTION 3.5 Not Responsible for Recitals or Sufficiency of Declaration.

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

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

         SECTION 4.1  Exculpation.

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

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

         SECTION 4.2  Fiduciary Duty.

         (a)   To the extent that, at law or in equity, an Indemnified Person
               has duties (including fiduciary duties) and liabilities relating
               thereto to the Trust or to any other Covered Person, an
               Indemnified Person acting under this Declaration shall not be

                                       -8-

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               liable to the Trust or to any other Covered Person for its good
               faith reliance on the provisions of this Declaration. The
               provisions of this Declaration, to the extent that they restrict
               the duties and liabilities of an Indemnified Person otherwise
               existing at law or in equity, are agreed by the parties hereto to
               replace such other duties and liabilities of such Indemnified
               Person;

         (b)   Unless otherwise expressly provided herein:

              (i)    whenever a conflict of interest exists or arises between a
                     Covered Person and an Indemnified Person; or

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

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

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

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

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

         SECTION 4.3   Indemnification.

         (a)   (i)   The Debenture issuer shall indemnify, to the full
                     extent permitted by law, any Company Indemnified Person who
                     was or is a party or is threatened to be made a party to
                     any threatened, pending or completed action, suit or
                     proceeding, whether civil, criminal, administrative or
                     investigative (other than an action by or in the right of
                     the Trust) by

                                        -9-

<PAGE>

                     reason of the fact that he is or was a Company Indemnified
                     Person against expenses (including attorneys, fees),
                     judgments, fines and amounts paid in settlement actually
                     and reasonably incurred by him in connection with such
                     action, suit or proceeding if he acted in good faith and in
                     a manner he reasonably believed to be in or not opposed to
                     the best interests of the Trust, and, with respect to any
                     criminal action or proceeding, had no reasonable cause to
                     believe his conduct was unlawful. The termination of any
                     action, suit or proceeding by judgment, order, settlement,
                     conviction, or upon a plea of nolo contendere or its
                     equivalent, shall not, of itself, create a presumption that
                     the Company Indemnified Person did not act in good faith
                     and in a manner which he reasonably believed to be in or
                     not opposed to the best interests of the Trust, and, with
                     respect to any criminal action or proceeding, had
                     reasonable cause to believe that his conduct was unlawful.

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

              (iii)  To the extent that a Company Indemnified Person shall be
                     successful on the merits or otherwise (including dismissal
                     of an action without prejudice or the settlement of an
                     action without admission of liability) in defense of any
                     action, suit or proceeding referred to in paragraphs (i)
                     and (ii) of this Section 4.3(a), or in defense of any
                     claim, issue or matter therein, he shall be indemnified, to
                     the fullest extent permitted by law, against expenses
                     (including attorneys' fees) actually and reasonably
                     incurred by him in connection therewith.

                                       -10-

<PAGE>

              (iv)   Any indemnification under paragraphs (i) and (ii) of this
                     Section 4.3(a) (unless ordered by a court) shall be made by
                     the Debenture Issuer only as authorized in the specific
                     case upon a determination that indemnification of the
                     Company Indemnified Person is proper in the circumstances
                     because he has met the applicable standard of conduct set
                     forth in paragraphs (i) and (ii). Such determination shall
                     be made (1) by the Regular Trustees by a majority vote of a
                     quorum consisting of such Regular Trustees who were not
                     parties to such action, suit or proceeding, (2) if such a
                     quorum is not obtainable, or, even if obtainable, if a
                     quorum of disinterested Regular Trustees so directs, by
                     independent legal counsel in a written opinion, or (3) by
                     the Common Security Holder of the Trust.

              (v)    Expenses (including attorneys' fees) incurred by a Company
                     Indemnified Person in defending a civil, criminal,
                     administrative or investigative action, suit or proceeding
                     referred to in paragraphs (i) and (ii) of this Section
                     4.3(a) shall be paid by the Debenture Issuer in advance of
                     the final disposition of such action, suit or proceeding
                     upon receipt of an undertaking by or on behalf of such
                     Company Indemnified Person to repay such amount if it shall
                     ultimately be determined that he is not entitled to be
                     indemnified by the Debenture Issuer as authorized in this
                     Section 4.3(a). Notwithstanding the foregoing, no advance
                     shall be made by the Debenture Issuer if a determination is
                     reasonably and promptly made (i) by the Regular Trustees by
                     a majority vote of a quorum of disinterested Regular
                     Trustees, (ii) if such a quorum is not obtainable, or, even
                     if obtainable, if a quorum of disinterested Regular
                     Trustees so directs, by independent legal counsel in a
                     written opinion or (iii) the Common Security Holder of the
                     Trust, that, based upon the facts known to the Regular
                     Trustees, counsel or the Common Security Holder at the time
                     such determination is made, such Company Indemnified Person
                     acted in bad faith or in a manner that such person did not
                     believe to be in or not opposed to the best interests of
                     the Trust, or, with respect to any criminal proceeding,
                     that such Company Indemnified Person believed or had
                     reasonable cause to believe his conduct was unlawful. In no
                     event shall any advance be made in instances where the
                     Regular Trustees, independent legal counsel or Common
                     Security Holder reasonably determine that such person
                     deliberately breached his duty to the Trust or its Common
                     or Preferred Security Holders.

              (vi)   The indemnification and advancement of expenses provided
                     by, or granted pursuant to, the other paragraphs of this
                     Section 4.3(a) shall not be deemed exclusive of any other
                     rights to which those seeking indemnification and
                     advancement of expenses may be entitled under any
                     agreement, vote of stockholders or disinterested directors
                     of the

                                       -11-

<PAGE>

                     Debenture Issuer or Preferred Security Holders or
                     otherwise, both as to action in his official capacity and
                     as to action in another capacity while holding such office.
                     All rights to indemnification under this Section 4.3(a)
                     shall be deemed to be provided by a contract between the
                     Debenture Issuer and each Company Indemnified Person who
                     serves in such capacity at any time while this Section
                     4.3(a) is in effect. Any repeal or modification of this
                     Section 4.3(a) shall not affect any rights or obligations
                     then existing.

              (vii)  The Debenture Issuer or the Trust may purchase and maintain
                     insurance on behalf of any Person who is or was a Company
                     Indemnified Person against any liability asserted against
                     him and incurred by him in any such capacity, or arising
                     out of his status as such, whether or not the Debenture
                     Issuer would have the power to indemnify him against such
                     liability under the provisions of this Section 4.3(a).

              (viii) For purposes of this Section 4.3(a), references to "the
                     Trust" shall include, in addition to the resulting or
                     surviving entity, any constituent entity (including any
                     constituent of a constituent) absorbed in a consolidation
                     or merger, so that any Person who is or was a director,
                     trustee, officer or employee of such constituent entity, or
                     is or was serving at the request of such constituent entity
                     as a director, trustee, officer, employee or agent of
                     another entity, shall stand in the same position under the
                     provisions of this Section 4.3(a) with respect to the
                     resulting or surviving entity as he would have with respect
                     to such constituent entity if its separate existence had
                     continued.

              (ix)   The indemnification and advancement of expenses provided
                     by, or granted pursuant to, this Section 4.3(a) shall,
                     unless otherwise provided when authorized or ratified,
                     continue as to a Person who has ceased to be a Company
                     Indemnified Person and shall inure to the benefit of the
                     heirs, executors and administrators of such a Person.

         (b)  The Debenture Issuer agrees to indemnify (i) the Delaware Trustee,
              (ii) any Affiliate of the Delaware Trustee, and (iii) any
              officers, directors, shareholders, members, partners, employees,
              representatives, nominees, custodians or agents of the Delaware
              Trustee (each of the Persons in (i) through (iii) being referred
              to as a "Fiduciary Indemnified Person") for, and to hold each
              Fiduciary Indemnified Person harmless against, any loss, liability
              or expense incurred without negligence or bad faith on its part,
              arising out of or in connection with the acceptance or
              administration of the trust or trusts hereunder, including the
              costs and expenses (including reasonable legal fees and expenses)
              of defending itself against, or investigating, any claim or
              liability in connection with the exercise or performance of any of
              its powers or duties hereunder. The obligation to indemnify as set
              forth

                                       -12-

<PAGE>

              in this Section 4.3(b) shall survive the termination of this
              Declaration.

         SECTION 4.4  Outside Businesses.

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

                                    ARTICLE V
                     AMENDMENTS, TERMINATION, MISCELLANEOUS

         SECTION 5.1  Amendments.

         At any time before the issue of any Securities, this Declaration may be
amended by, and only by, a written instrument executed by all of the Regular
Trustees and the Sponsor.

         SECTION 5.2   Dissolution of Trust.

         (a)   The Trust shall dissolve:

               (i)   upon the bankruptcy of the Sponsor;

               (ii)  upon the filing of a certificate of dissolution or its
                     equivalent with respect to the Sponsor or the revocation of
                     the Sponsor's charter or of the Trust's certificate of
                     trust;

               (iii) upon the entry of a decree of judicial dissolution of the
                     Sponsor or the Trust; and

               (iv)  before the issue of any Securities, with the consent of all
                     of the Regular Trustees and the Sponsor; and

                                      -13-

<PAGE>

         (b)   As soon as is practicable after the occurrence of an event
               referred to in Section 5.2(a), the Trustees shall wind up the
               affairs of the Trust and file a certificate of cancellation with
               the Secretary of State of the State of Delaware. Upon such
               filing, the Trust shall terminate.

         SECTION 5.3   Governing Law.

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

         SECTION 5.4   Headings.

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

         SECTION 5.5   Successors and Assigns.

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

         SECTION 5.6   Partial Enforceability.

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

         SECTION 5.7   Counterparts.

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

                                      -14-

<PAGE>

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

                                    W. FLAKE OAKLEY, as Regular Trustee

                                    /s/ W. Flake Oakley
                                    -------------------------------------------

                                    MARY L. BATHEN, as Regular Trustee

                                    /s/ Mary L. Bathen
                                    --------------------------------------------

                                    WILLIAM A. MCCRARY, as Regular Trustee

                                    /s/ William A. McCrary
                                    --------------------------------------------

                                    THE BANK OF NEW YORK (DELAWARE), as
                                    Delaware Trustee

                                    By:  /s/ Michael Santino
                                       -----------------------------------------
                                    Name: Michael Santino
                                    Title: Senior Vice President

                                    THE COLONIAL BANCGROUP, INC., as Sponsor and
                                    Debenture Issuer

                                    By:    /s/ W. Flake Oakley
                                         --------------------------------------
                                    Name: W. Flake Oakley
                                    Title: Chief Financial Officer

                                      -15-<PAGE>

                                                                     EXHIBIT 4.6
                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                           COLONIAL CAPITAL TRUST III

                           Dated as of _____ __, 2002

<PAGE>

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

SECTION 1.1   Definitions ................................................     1

                                   ARTICLE II
                              TRUST INDENTURE ACT

SECTION 2.1   Trust Indenture Act; Application ...........................     8
SECTION 2.2   Lists of Holders of Securities .............................     9
SECTION 2.3   Reports by the Institutional Trustee .......................     9
SECTION 2.4   Periodic Reports to Institutional Trustee ..................     9
SECTION 2.5   Evidence of Compliance with Conditions Precedent ...........    10
SECTION 2.6   Events of Default; Waiver ..................................    10
SECTION 2.7   Event of Default; Notice ...................................    12

                                  ARTICLE III
                                  ORGANIZATION

SECTION 3.1   Name .......................................................    13
SECTION 3.2   Office .....................................................    13
SECTION 3.3   Purposes ...................................................    13
SECTION 3.4   Authority ..................................................    14
SECTION 3.5   Title to Property of the Trust .............................    14
SECTION 3.6   Powers and Duties of the Regular Trustees ..................    14
SECTION 3.7   Prohibition of Actions by the Trust and the Trustees .......    17
SECTION 3.8   Powers and Duties of the Institutional Trustee .............    17
SECTION 3.9   Certain Duties and Responsibilities of the Institutional
              Trustee ....................................................    20
SECTION 3.10  Certain Rights of the Institutional Trustee ................    21
SECTION 3.11  Delaware Trustee ...........................................    23
SECTION 3.12  Execution of Documents .....................................    24
SECTION 3.13  Not Responsible for Recitals or Issuance of Securities .....    24
SECTION 3.14  Duration of Trust ..........................................    24
SECTION 3.15  Mergers ....................................................    24

                                   ARTICLE IV
                                    SPONSOR

SECTION 4.1   Sponsor's Purchase of Common Securities ....................    26
SECTION 4.2   Responsibilities of the Sponsor ............................    26
SECTION 4.3   Right to Proceed ...........................................    26
SECTION 4.4   Expenses ...................................................    27
</TABLE>

                                       i

<PAGE>

<TABLE>
                                   ARTICLE V
                                    TRUSTEES
<S>                                                                          <C>
SECTION 5.1   Number of Trustees .........................................    28
SECTION 5.2   Delaware Trustee ...........................................    28
SECTION 5.3   Institutional Trustee; Eligibility .........................    28
SECTION 5.4   Certain Qualifications of the Regular Trustees and the
              Delaware Trustee Generally .................................    29
SECTION 5.5   Regular Trustees ...........................................    29
SECTION 5.6   Appointment, Removal and Resignation of Trustees ...........    30
SECTION 5.7   Vacancies among Trustees ...................................    31
SECTION 5.8   Effect of Vacancies ........................................    32
SECTION 5.9   Meetings ...................................................    32
SECTION 5.10  Delegation of Power ........................................    32
SECTION 5.11  Merger, Conversion, Consolidation or Succession to
              Business ...................................................    33

                                   ARTICLE VI
                                 DISTRIBUTIONS

SECTION 6.1   Distributions ..............................................    33

                                  ARTICLE VII
                             ISSUANCE OF SECURITIES

SECTION 7.1   General Provisions Regarding Securities ....................    33
SECTION 7.2   Paying Agent ...............................................    35
SECTION 7.3   Outstanding Preferred Securities ...........................    35

                                  ARTICLE VIII
                      DISSOLUTION AND TERMINATION OF TRUST

SECTION 8.1   Dissolution and Termination of Trust .......................    36

                                   ARTICLE IX
                             TRANSFER OF INTERESTS

SECTION 9.1   Transfer of Securities .....................................    37
SECTION 9.2   Transfer of Certificates ...................................    37
SECTION 9.3   Deemed Security Holders ....................................    38
SECTION 9.4   Book-Entry Interests .......................................    39
SECTION 9.5   Notices to Depository Institution ..........................    40
SECTION 9.6   Appointment of Successor Depository Institution ............    40
SECTION 9.7   Definitive Preferred Security Certificates .................    40
SECTION 9.8   Mutilated, Destroyed, Lost or Stolen Certificates ..........    41
</TABLE>

                                       ii

<PAGE>

<TABLE>
                                   ARTICLE X
                           LIMITATION OF LIABILITY OF
                   HOLDERS OF SECURITIES, TRUSTEES OR OTHERS
<S>                                                                          <C>
SECTION 10.1  Liability ..................................................    41
SECTION 10.2  Exculpation ................................................    42
SECTION 10.3  Fiduciary Duty .............................................    42
SECTION 10.4  Indemnification ............................................    43
SECTION 10.5  Outside Businesses .........................................    46
SECTION 10.6  Compensation; Fees .........................................    47

                                   ARTICLE XI
                                   ACCOUNTING

SECTION 11.1  Fiscal Year ................................................    47
SECTION 11.2  Certain Accounting Matters .................................    47
SECTION 11.3  Banking ....................................................    48
SECTION 11.4  Withholding ................................................    48

                                  ARTICLE XII
                            AMENDMENTS AND MEETINGS

SECTION 12.1  Amendments .................................................    49
SECTION 12.2  Meetings of the Holders of Securities; Action by Written
              Consent ....................................................    50

                                  ARTICLE XIII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

SECTION 13.1  Representations and Warranties of Institutional Trustee ....    52
SECTION 13.2  Representations and Warranties of Delaware Trustee .........    52

                                  ARTICLE XIV
                                 MISCELLANEOUS

SECTION 14.1  Notices ....................................................    53
SECTION 14.2  Governing Law ..............................................    54
SECTION 14.3  Intention of the Parties ...................................    55
SECTION 14.4  Headings ...................................................    55
SECTION 14.5  Successors and Assigns .....................................    55
SECTION 14.6  Partial Enforceability .....................................    55
SECTION 14.7  Counterparts ...............................................    55

ANNEX I ..................................................................   A-1
EXHIBIT A-1 Form of Preferred Security Certificate........................  A1-1
EXHIBIT A-2 Form of Common Security Certificate...........................  A2-1
</TABLE>

                                       iii

<PAGE>

                             CROSS-REFERENCE TABLE*

        Section of
        Trust Indenture Act                   Section of
        of 1939, as amended                   Declaration
        -------------------                   -----------
        310(a) ..........................     5.3(a)
        310(b) ..........................     5.3(c)
        310(c) ..........................     Inapplicable
        311(a) and (b) ..................     5.3(c)
        311(c) ..........................     Inapplicable
        312(a) ..........................     2.2(a)
        312(b) ..........................     2.2(b)
        313 .............................     2.3
        314(a) ..........................     2.4
        314(b) ..........................     Inapplicable
        314(c) ..........................     2.5
        314(d) ..........................     Inapplicable
        314(e) ..........................     2.5
        314(f) ..........................     Inapplicable
        315(a) ..........................     3.9(b)
        315(b) ..........................     2.7(a)
        315(c) ..........................     3.9(a)
        315(d) ..........................     3.9(b)
        316(a) and (b) ..................     2.6 and Annex I (Sections 5 and 6)
        316(c) ..........................     3.6(e)
        317(a) ..........................     3.8(e) and (g)
        317(b) ..........................     3.8(h)

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

                                       iv

<PAGE>

                              AMENDED AND RESTATED
                              DECLARATION OF TRUST
                                       OF
                           COLONIAL CAPITAL TRUST III

                                 ______ __, 2002

         THIS AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") is dated
and effective as of _____ __, 2002 by the Trustees (as defined herein), the
Sponsor (as defined herein) and by the holders, from time to time, of undivided
beneficial interests in the assets of the Trust to be issued pursuant to this
Declaration.

         WHEREAS, certain of the Trustees and the Sponsor established Colonial
Capital Trust III (the "Trust"), a statutory business trust under the Business
Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of
______ __, 2002, (the "Original Declaration"), and a Certificate of Trust filed
with the Secretary of State of the State of Delaware on _____ __, 2002, as
amended to date (the "Certificate of Trust") for the purpose of issuing and
selling Securities (as defined herein) and investing the proceeds therefrom in
Debentures of the Debenture Issuer (each as defined herein); and

         WHEREAS, as of the date hereof, no Securities have been issued; and

         WHEREAS, the parties hereto, by this Declaration, hereby amend and
restate each and every term and provision of the Original Declaration.

         NOW, THEREFORE, it being the intention of the parties hereto to
continue the Trust as a business trust under the Business Trust Act and that
this Declaration constitutes the governing instrument of such business trust,
the Trustees declare that all assets contributed to the Trust will be held in
trust for the benefit of the Holders, subject to the provisions of this
Declaration.

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

         SECTION 1.1   Definitions.

         Unless the context otherwise requires:

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

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

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

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

<PAGE>

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

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

         "Additional Interest" has the meaning set forth in Section 2(d) of
Annex I.

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

         "Agent" means any Paying Agent.

         "Authorized Officer" of a Person means any executive officer,
president, vice-president, assistant vice-president, treasurer, assistant
treasurer, secretary, assistant secretary or other officer of such Person
generally authorized to bind such Person.

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

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

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

         "Certificate" means a Common Security Certificate and/or a Preferred
Security Certificate, as the context requires.

         "Certificate of Trust" has the meaning set forth in the first recital
hereto.

         "Closing Date" means the "Closing Time" and each "Date of Delivery,"
each as defined in the Purchase Agreement.

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

         "Commission" means the Securities and Exchange Commission.

         "Common Securities" has the meaning set forth in Section 7.1(a).

         "Common Securities Guarantee" means the guarantee agreement, to be
dated as of the Closing Time, of the Sponsor in respect of the Common
Securities.

         "Common Security Certificate" means a definitive certificate in fully
registered form evidencing one or more Common Securities substantially in the
form of Exhibit A-2.

                                       2

<PAGE>

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

         "Compound Interest" has the meaning set forth in Section 2(a) of Annex
I.

         "Corporate Trust Office" means the office of the Institutional Trustee
at which the corporate trust business of the Institutional Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Declaration is located at 101 Barclay Street, New York, New
York 10286.

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

         "Coupon Rate" has the meaning set forth in Section 2(a) of Annex I.

         "Creditor" has the meaning set forth in Section 4.4.

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

         "Debenture Purchase Agreement" means the purchase agreement to be dated
as of the Closing Time, between the Debenture Trustee and the Trust, relating to
the Debentures.

         "Debentures" means the __% Junior Subordinated Debentures due 2032
issued by the Debenture Issuer to the Trust.

         "Debt Trustee" means The Bank of New York, as trustee under the
Indenture until a successor is appointed thereunder, and thereafter means such
successor trustee.

         "Declaration" has the meaning set forth in the preamble hereto.

         "Definitive Preferred Security Certificate" has the meaning set forth
in Section 9.4.

         "Delaware Trustee" has the meaning set forth in Section 5.2.

         "Depository Institution" shall mean DTC or any other clearing agency or
any successor registered as a clearing agency under the Exchange Act, or other
applicable statute or regulation, which, in each case, shall be designated by
the Debenture Issuer pursuant to either Section 2.03 or 2.11 of the Indenture.

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

         "Direct Action" has the meaning set forth in Section 3.8(e).

                                       3

<PAGE>

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

         "Distribution Payment Date" has the meaning set forth in Section 2(b)
of Annex I.

         "DTC" means The Depository Trust Company.

         "Event of Default" in respect of the Securities means an event of
default within the meaning of, and as defined under, the Indenture has occurred
and is continuing in respect of the Debentures.

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

         "Extension Period" has the meaning set forth in Section 2(b) of Annex
I.

         "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System.

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

         "Fiscal Year" has the meaning set forth in Section 11.1.

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

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

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

         "Indenture" means the Indenture, to be dated as of the Closing Time,
between the Debenture Issuer and the Debt Trustee, and any indenture
supplemental thereto applicable to the Debentures.

         "Institutional Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 5.3.

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

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

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

         "Investment Company Event" has the meaning set forth in Section 4(c) of
Annex I hereto.

                                       4

<PAGE>

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

         "Liquidation Distribution" has the meaning set forth in Section 3 of
Annex I.

         "List of Holders" has the meaning set forth in Section 2.2(a).

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

         "NYSE" means the New York Stock Exchange, Inc.

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

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

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

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

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

         "Original Declaration" has the meaning set forth in the first recital
hereto.

         "Paying Agent" has the meaning set forth in Section 7.2.

         "Payment Amount" has the meaning set forth in Section 6.1.

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

                                       5

<PAGE>

         "Preferred Guarantee Trustee" means The Bank of New York, as trustee
under the Preferred Securities Guarantee until a successor is appointed
thereunder, and thereafter means such successor trustee.

         "Preferred Securities" has the meaning set forth in Section 7.1(a).

         "Preferred Securities Guarantee" means the guarantee agreement, to be
dated as of the Closing Time, between the Sponsor and the Preferred Guarantee
Trustee, in respect of the Preferred Securities.

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

         "Preferred Security Certificate" means a certificate in fully
registered form evidencing one or more Preferred Securities substantially in the
form of Exhibit A-1.

         "Prepayment Price" has the meaning set forth in Section 4(b) of Annex
I.

         "Pro Rata" has the meaning set forth in Section 8 of Annex I.

         "Prospectus" means the prospectus included in the Registration
Statement at the time the Registration Statement was declared effective, as
amended or supplemented by any prospectus supplement and by all other
amendments, including post-effective amendments, and supplements thereto, and
all other material incorporated by reference therein.

         "Purchase Agreement" means the Purchase Agreement for the offering and
sale of Preferred Securities in the form of Exhibit B.

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

         "Redemption/Distribution Notice" has the meaning set forth in Section
4(f)(i) of Annex I.

         "Redemption Price" shall have the meaning set forth in Section 4(a) of
Annex I.

         "Registration Statement" means the registration statement (File No.
333-___) relating to the Preferred Securities, the Preferred Securities
Guarantee and the Debentures that has been filed with the Commission pursuant to
this Declaration, and all amendments (including post-effective amendments)
thereto, and all exhibits and material incorporated by reference therein.

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

         "Regulatory Capital Event" has the meaning set forth in Section 4(c) of
Annex I.

                                       6

<PAGE>

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

         "Resignation Request" has the meaning set forth in Section 5.6(c).

         "Responsible Officer" means, with respect to the Institutional Trustee,
any officer within the Corporate Trust Office of the Institutional Trustee,
including any vice president, any assistant vice president, any assistant
secretary, any assistant treasurer or other officer or agent of the Corporate
Trust Office of the Institutional 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.

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

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

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

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

         "Special Event" has the meaning set forth in Section 4(c) of Annex I.

         "Sponsor" means The Colonial BancGroup, Inc., a Delaware corporation,
or any permitted successor entity in a merger, consolidation or amalgamation, in
its capacity as sponsor of the Trust.

         "Stated Maturity" has the meaning set forth in Section 4(a) of Annex I.

         "Successor Delaware Trustee" has the meaning set forth in Section
5.6(b)(ii).

         "Successor Entity" has the meaning set forth in Section 3.15(b)(i).

         "Successor Institutional Trustee" has the meaning set forth in Section
5.6(b)(i).

         "Successor Securities" has the meaning set forth in Section
3.15(b)(i)(B).

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

         "Tax Event" has the meaning set forth in Section 4(c) of Annex I
hereto.

         "10% in liquidation amount" means, except as provided in the terms of
the Preferred Securities set forth in Annex I hereto or by the Trust Indenture
Act, Holder(s) of outstanding Securities voting together as a single class,
excluding the Trust, the Debenture Issuer and any Affiliate of the Trust or the
Debenture Issuer, or, as the context may require, Holders of

                                       7

<PAGE>

outstanding Preferred Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of 10% or more of the
aggregate liquidation amount (including the liquidation amount that would be
paid on redemption, liquidation or otherwise plus accumulated and unpaid
Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

         "Transfer Agent" has the meaning set forth in Section 9.2(e).

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

         "Trust" has the meaning set forth in the first recital hereto.

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

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

                                   ARTICLE II
                               TRUST INDENTURE ACT

         SECTION 2.1   Trust Indenture Act; Application.

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

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

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

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

                                       8

<PAGE>

         SECTION 2.2   Lists of Holders of Securities.

         (a)  Each of the Sponsor and the Regular Trustees on behalf of the
Trust shall provide the Institutional Trustee (i) within 14 days after each
record date for payment of Distributions, a list, in such form as the
Institutional Trustee may reasonably require, of the names and addresses of the
Holders ("List of Holders") as of such record date, provided that neither the
Sponsor nor the Regular Trustees on behalf of the Trust shall be obligated to
provide such List of Holders at any time the List of Holders does not differ
from the most recent List of Holders given to the Institutional Trustee by the
Sponsor and the Regular Trustees on behalf of the Trust and (ii) at any other
time, within 30 days of receipt by the Trust of a written request for a List of
Holders as of a date no more than 15 days before such List of Holders is given
to the Institutional Trustee. The Institutional Trustee shall preserve, in as
current a form as is reasonably practicable, all information contained in the
Lists of Holders given to it or which it receives in its capacity as Paying
Agent (if acting in such capacity) provided that the Institutional Trustee may
destroy any List of Holders previously given to it on receipt of a new List of
Holders.

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

         SECTION 2.3   Reports by the Institutional Trustee.

         (a)  The Institutional Trustee shall transmit to Holders such reports
concerning the Institutional 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 Institutional Trustee shall, within sixty days after each May 15
following the date of this Indenture deliver to Holders a brief report 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 Holders, be filed by the Institutional Trustee with each stock exchange, if
any, upon which the Securities are listed, with the Commission and with the
Trust. The Trust will promptly notify the Institutional Trustee when the
Securities are listed on any stock exchange and of any delisting thereof.

         SECTION 2.4   Periodic Reports to Institutional Trustee.

         (a)  Each of the Sponsor and the Regular Trustees on behalf of the
Trust covenants and agrees to file with the Institutional Trustee, within 15
days after the Trust 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 Trust may be required to
file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act; or, if the Trust is not required to file information, documents or reports
pursuant to either of such sections, then to file with the Institutional 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

                                       9

<PAGE>

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)  Each of the Sponsor and the Regular Trustees on behalf of the
Trust covenants and agrees to file with the Institutional 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 Trust with the conditions and covenants provided
for in this Declaration as may be required from time to time by such rules and
regulations.

         (c)  Each of the Sponsor and the Regular Trustees on behalf of the
Trust 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 Institutional Trustee, such
summaries of any information, documents and reports required to be filed by the
Trust pursuant to subsections (a) and (b) of this Section 2.4 as may be required
by rules and regulations prescribed from time to time by the Commission.

         (d)  Each of the Sponsor and the Regular Trustees on behalf of the
Trust covenants and agrees to furnish to the Institutional 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
Institutional Trustee is for informational purposes only and the Institutional
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Trust's compliance with any of its covenants hereunder
(as to which the Institutional Trustee is entitled to rely exclusively on
Officers' Certificates).

         SECTION 2.5   Evidence of Compliance with Conditions Precedent.

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

         SECTION 2.6   Events of Default; Waiver.

         (a)  Subject to Section 2.6(c), the Holders of a Majority in
Liquidation Amount of Preferred Securities may, by vote, on behalf of the
Holders of all of the Preferred Securities, waive any past Event of Default in
respect of the Preferred Securities and its consequences, provided that, if the
underlying event of default under the Indenture:

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

              (ii)  requires the consent or vote of more than a simple Majority
         in aggregate principal amount of the holders of the Debentures (a
         "Super Majority") to be waived

                                       10

<PAGE>

         under the Indenture, then the Event of Default may be waived only by
         the vote of the Holders of at least the proportion in aggregate
         liquidation amount of the Preferred Securities that the relevant Super
         Majority represents of the aggregate principal amount of the Debentures
         outstanding; or

              (iii) requires the consent or vote of each holder of Debentures to
         be waived under the Indenture, then the Event of Default may be waived
         only by each Holder of Preferred Securities.

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

         (b)  Subject to Section 2.6(c), the Holders of a Majority in
Liquidation Amount of the Common Securities may, by vote, on behalf of the
Holders of all of the Common Securities, waive any past Event of Default with
respect to the Common Securities and its consequences, provided that, if the
underlying event of default under the Indenture:

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

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

         Notwithstanding the foregoing, each Holder of Common Securities will be
deemed to have waived any such Event of Default and all Events of Default with
respect to the Common Securities and its consequences if all Events of Default
with respect to the Preferred Securities have been cured, waived or otherwise
eliminated, and until such Events of Default have been so cured, waived or
otherwise eliminated, the Institutional Trustee will be deemed to be acting
solely on behalf of the Holders of the Preferred Securities and only the Holders
of the Preferred

                                       11

<PAGE>

Securities will have the right to direct the Institutional Trustee in accordance
with the terms of the Securities set forth in Annex I hereto. If any Event of
Default with respect to the Preferred Securities is waived by the Holders of
Preferred Securities as provided in this Declaration, the Holders of Common
Securities agree that such waiver shall also constitute the waiver of such Event
of Default with respect to the Common Securities for all purposes under this
Declaration without any further act, vote or consent of the Holders of the
Common Securities. Subject to the foregoing provisions of this Section 2.6(b),
upon such waiver, the related default shall cease to exist, and any Event of
Default with respect to the Common Securities arising therefrom shall be deemed
to have been cured for every purpose of this Declaration, but no such waiver
shall extend to any subsequent or other default or Event of Default with respect
to the Common Securities or impair any right consequent thereon. The foregoing
provisions of this Section 2.6(b) shall be in lieu of Sections 316(a)(1)(A) and
316(a)(1)(B) of the Trust Indenture Act and such Sections 316(a)(1)(A) and
316(a)(1)(B) of the Trust Indenture Act are hereby expressly excluded from this
Declaration and the Securities, as permitted by the Trust Indenture Act. Subject
to the foregoing provisions of this Section 2.6(b), upon such waiver, any such
default shall cease to exist and any Event of Default with respect to the Common
Securities arising therefrom shall be deemed to have been cured for every
purpose of this Declaration, but no such waiver shall extend to any subsequent
or other default or Event of Default with respect to the Common Securities or
impair any right consequent thereon.

         (c)  The right of any Holder to receive payment of Distributions, the
Redemption Price and Liquidation Distribution in accordance with this
Declaration and the terms of the Securities set forth in Annex I on or after the
respective due dates therefor, or to institute suit for the enforcement of any
such payment on or after such dates, shall not be impaired without the consent
of each such Holder.

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

         SECTION 2.7   Event of Default; Notice.

         (a)  The Institutional Trustee shall, within 60 days after its
occurrence, transmit by mail, first class postage prepaid, to the Holders,
notice of each default with respect to the Securities actually known to a
Responsible Officer, unless such default has been cured before the giving of
such notice (the term "default" for the purposes of this Section 2.7(a) being
hereby defined to be any default under the Indenture, not including any periods
of grace provided for therein and irrespective of the giving of any notice
provided therein); provided that, except for a default in the payment of
principal of or interest on any of the Debentures, the Institutional Trustee
shall be protected in withholding such notice if and so long as a Responsible
Officer in good faith determines that the withholding of such notice is in the
interests of the Holders; and provided further, that in the case of any default
of the character specified in Section 5.01(c) of the

                                       12

<PAGE>

Indenture, no such notice to Holders shall be given until at least 60 days
after the occurrence thereof but shall be given within 90 days after such
occurrence.

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

              (i)   a default in the payment of principal of or interest on the
         Debentures; or

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

                                  ARTICLE III
                                  ORGANIZATION

         SECTION 3.1   Name.

         The Trust is named "Colonial Capital Trust III," as such name may be
modified from time to time by the Regular Trustees following written notice to
the Holders. The Trust's activities may be conducted under the name of the Trust
or any other name deemed advisable by the Regular Trustees.

         SECTION 3.2   Office.

         The address of the principal office of the Trust is c/o The Colonial
BancGroup, Inc., One Commerce Street, P.O. Box 1108, Montgomery, Alabama
36101-1108. Upon ten (10) Business Days' written notice to the Holders of
Securities, the Regular Trustees may designate another principal office.

         SECTION 3.3   Purposes.

         The exclusive purposes and functions of the Trust are (i) to issue and
sell (a) its Preferred Securities pursuant to the Purchase Agreement in exchange
for cash and (b) its Common Securities to the Sponsor in exchange for cash, and
to use the aggregate proceeds of the sale of the Securities to purchase the
Debentures, (ii) to enter into such agreements and arrangements as may be
necessary in connection with the issuance and sale of the Securities and to take
all actions, and exercise such discretion, as may be necessary or desirable in
connection with the issuance and sale of the Securities and to file such
registration statements or make such other filings under the Securities Act, the
Exchange Act or State securities or "Blue Sky" laws as may be necessary or
desirable in connection with the offer and the issuance and sale of the
Securities, and (iii) except as otherwise limited herein, to engage in only
those other activities necessary or incidental thereto. As more specifically
provided in Section 3.7, the Trust shall not borrow money, incur debt, reinvest
proceeds derived from investments, pledge any of its assets, or otherwise
undertake (or permit to be undertaken) any activity that would cause the Trust
not to be classified for United States federal income tax purposes as a grantor
trust.

                                       13

<PAGE>

         SECTION 3.4   Authority.

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

         SECTION 3.5   Title to Property of the Trust.

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

         SECTION 3.6   Powers and Duties of the Regular Trustees.

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

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

         (b)  in connection with the issue of the Preferred Securities, at the
direction of the Sponsor, to:

              (i)   execute and file with the Commission one or more
         registration statements on Form S-3 prepared by the Sponsor, including
         any and all amendments thereto, pertaining to the Preferred Securities;

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

              (iii) execute and file an application, prepared by the Sponsor, to
         the NYSE or any other national stock exchange or the NASDAQ Stock
         Market's National Market for listing or quotation upon notice of
         issuance of any Preferred Securities;

                                       14

<PAGE>

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

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

              (vi) execute and deliver letters, documents or instruments with
         DTC.

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

         (d)  to give the Sponsor and the Institutional Trustee prompt written
notice of the occurrence of a Special Event;

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

         (f)  to take all actions and perform such duties as may be required of
the Regular Trustees pursuant to the terms of the Securities set forth in
Annex I hereto;

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

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

         (i)  to cause the Trust to comply with the Trust's obligations under
the Trust Indenture Act and, if applicable, the Exchange Act;

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

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

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

                                       15

<PAGE>

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

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

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

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

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

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

provided that such actions do not materially adversely affect the interests of
Holders;

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

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

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

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

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

         The Regular Trustees shall take all actions on behalf of the Trust that
are not specifically required by this Declaration to be taken by any other
Trustee.

                                       16

<PAGE>

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

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

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

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

              (iii)  possess Trust property for other than a Trust purpose or
         execute any mortgage in respect of, or pledge, any Trust property;

              (iv)   make any investments other than investments represented by
         the Debentures;

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

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

              (vii)  make any loans other than in respect of the Debentures or
         incur any indebtedness for borrowed money; or

              (viii) other than as provided in this Declaration or Annex I
         hereto, (A) direct the time, method and place of exercising any trust
         or power conferred upon the Debt Trustee with respect to the
         Debentures, (B) waive any past default that is waivable under the
         Indenture, (C) exercise any right to rescind or annul any declaration
         that the principal of all the Debentures held in the Trust shall be due
         and payable, or (D) consent to any amendment, modification or
         termination of the Indenture or the Debentures if such action would
         cause the Trust to be classified for United States federal income tax
         purposes as other than a grantor trust or would cause the Trust to be
         deemed an Investment Company required to be registered under the
         Investment Company Act.

         SECTION 3.8   Powers and Duties of the Institutional Trustee.

         (a)  The legal title to the Debentures shall be owned by and held of
record in the name of the Institutional Trustee in trust for the benefit of the
Holders. The right, title and interest of the Institutional Trustee to the
Debentures shall vest automatically in each Person who may hereafter be
appointed as Institutional Trustee in accordance with Section 5.6. Such vesting
and cessation of title shall be effective whether or not conveyancing documents
with regard to the Debentures have been executed and delivered.

                                       17

<PAGE>

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

         (c)  The Institutional Trustee shall:

              (i)  establish and maintain a segregated non-interest bearing
         trust account (the "Institutional Trustee Account") in the name of and
         under the exclusive control of the Institutional Trustee on behalf of
         the Holders and, upon the receipt of payments of funds made in respect
         of the Debentures held by the Institutional Trustee, deposit such funds
         into the Institutional Trustee Account and make payments to the Holders
         from the Institutional Trustee Account in accordance with Section 6.1.
         Funds in the Institutional Trustee Account shall be held uninvested
         until disbursed in accordance with this Declaration;

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

              (iii) upon written notice of distribution issued by the Regular
         Trustees in accordance with the terms of the Securities, engage in such
         ministerial activities as shall be necessary or appropriate to effect
         the distribution of the Debentures to Holders in accordance with the
         provisions of the Indenture.

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

         (e)  The Institutional Trustee shall take any Legal Action which arises
out of or in connection with (i) an Event of Default of which a Responsible
Officer has actual knowledge or (ii) the Institutional Trustee's duties and
obligations under this Declaration or the Trust Indenture Act. If the
Institutional Trustee fails to enforce its rights under the Debentures after a
Holder of Preferred Securities has made a written request, such Holder may, to
the fullest extent permitted by law, institute a legal proceeding against the
Debenture Issuer to enforce the Institutional Trustee's rights under the
Debentures without first instituting any legal proceeding against the
Institutional Trustee or any other Person. Notwithstanding the foregoing, if an
Event of Default has occurred and is continuing and such event is attributable
to the failure of the Debenture Issuer to pay interest (including Additional
Interest and Compound Interest) on or principal of the Debentures on the date
such interest or principal is otherwise payable (or in the case of redemption,
on the redemption date), then a Holder of Preferred Securities may directly
institute a proceeding for enforcement of payment to such Holder of the
principal of or interest on the Debentures having aggregate principal amount
equal to the aggregate liquidation amount of the Preferred Securities of such
Holder (a "Direct Action") on or after the respective due date specified in the
Debentures. Notwithstanding any payments made to such Holder of Preferred
Securities by the Debenture Issuer in connection with a Direct Action, the
Debenture Issuer shall remain obligated to pay the principal of or interest on
the Debentures held by the Trust or the Institutional Trustee of the Trust, and
the Holders of the Common Securities shall be subrogated

                                       18

<PAGE>

to the rights of the Holder of such Preferred Securities with respect to
payments on the Preferred Securities to the extent of any payments made by the
Debenture Issuer to such Holder in any Direct Action provided, however, that the
Holder has received full payment in respect of such Preferred Securities. Except
as provided in this paragraph and in the Preferred Securities Guarantee, the
Holders of Preferred Securities will not be able to exercise directly any other
remedy available to the holders of the Debentures.

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

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

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

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

         (h)  The Institutional Trustee may authorize one or more Persons (each,
a "Paying Agent") to pay Distributions, the Redemption Price of the Liquidation
Distribution, as the case may be, on behalf of the Trust with respect to all
Securities and any such Paying Agent shall comply with Section 317(b) of the
Trust Indenture Act. Any Paying Agent may be removed by the Institutional
Trustee at any time and a successor Paying Agent or additional Paying Agents may
be appointed at any time by the Institutional Trustee, in each case without
prior notice to the Holders. The Paying Agent may perform such functions
whenever the Institutional Trustee may do so. Each reference in this Declaration
to payment to the Holders by the Institutional Trustee includes such payment by
a Paying Agent. A Paying Agent has the same rights as the Institutional Trustee
to deal with the Sponsor or an Affiliate, and itself may be the Trust, an
Affiliate of the Trust or a Related Party of the Sponsor. The Institutional
Trustee is hereby appointed to initially act as Paying Agent for the Securities.

         (i)  The Institutional Trustee shall give prompt written notice to the
Holders of the Securities of any notice received by it from the  Debenture
Issuer of the Debenture Issuer's election to defer payments of interest on the
Debentures by extending the interest payment period with respect thereto.

         (j)  The Institutional Trustee shall notify all Holders of the
Preferred Securities of any notice of an event of default received from the Debt
Trustee with respect to the Debentures. Such notice shall state that such event
of default under the Indenture also constitutes an Event of Default hereunder.

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

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<PAGE>

         The Institutional Trustee shall exercise the powers set forth in this
Section 3.8 and in Sections 3.9 and 3.10 in a manner that is consistent with the
purposes and functions of the Trust set out in Section 3.3, and the
Institutional Trustee shall not take any action that is inconsistent with the
purposes and functions of the Trust set out in Section 3.3.

         SECTION 3.9   Certain Duties and Responsibilities of the Institutional
Trustee.

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

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

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

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

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

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

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

                                       20

<PAGE>

         place of conducting any proceeding for any remedy available to the
         Institutional Trustee, or exercising any trust or power conferred upon
         the Institutional Trustee under this Declaration;

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

                     (v)    the Institutional Trustee's sole duty with respect
         to the custody, safekeeping and physical preservation of the Debentures
         and the Institutional Trustee Account shall be to deal with such
         property in a similar manner as the Institutional Trustee deals with
         similar property for its own account, subject to the protections and
         limitations on liability afforded to the Institutional Trustee under
         this Declaration and the Trust Indenture Act; (vi) the Institutional
         Trustee shall have no duty or liability for or with respect to the
         value, genuineness, existence or sufficiency of the Debentures or the
         payment of any taxes or assessments levied thereon or in connection
         therewith;

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

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

         SECTION 3.10  Certain Rights of the Institutional Trustee.

         (a)  Subject to the provisions of Section 3.9:

                     (i)    the Institutional 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, debenture or other paper or
         document believed by it to be genuine and to have been signed, sent or
         presented by the proper party or parties;

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

                                       21

<PAGE>

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

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

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

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

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

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

              (ix)   any action taken by the Institutional Trustee or its agents
         hereunder shall bind the Trust and the Holders; and the signature of
         the Institutional Trustee or its agents

                                       22

<PAGE>

         alone shall be sufficient and effective to perform any such action and
         no third party shall be required to inquire as to the authority of the
         Institutional Trustee to so act or as to its compliance with any of the
         terms and provisions of this Declaration, both of which shall be
         conclusively evidenced by the Institutional Trustee's or its agent's
         taking such action;

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

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

              (xii) the Institutional Trustee may request that the Trust 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 Declaration, 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.

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

         SECTION 3.11  Delaware Trustee.

         Notwithstanding any other provision of this Declaration other than
Section 5.2, the Delaware Trustee shall not be entitled to exercise any powers,
nor shall the Delaware Trustee have any of the duties and responsibilities of
the Regular Trustees or the Institutional Trustee described in this Declaration.
Except as set forth in Section 5.2, the Delaware Trustee shall be a Trustee for
the sole and limited purpose of fulfilling the requirements of Section 3807 of
the Business Trust Act. Notwithstanding anything herein to the contrary, the
Delaware Trustee shall not be liable for the acts or omissions to act of the
Trust or of the Regular Trustees except for such acts as the Delaware Trustee is
expressly obligated or authorized to undertake under this Declaration or the
Business Trust Act and except for the negligence or willful misconduct of the
Delaware Trustee.

                                       23

<PAGE>

         SECTION 3.12  Execution of Documents.

         Except as otherwise required by applicable law, any one of the Regular
Trustees is authorized to execute on behalf of the Trust any documents which the
Regular Trustees have the power and authority to execute pursuant to Section
3.6.

         SECTION 3.13  Not Responsible for Recitals or Issuance of Securities.

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

         SECTION 3.14  Duration of Trust.

         The Trust, unless dissolved pursuant to the provisions of Article VIII
hereof, shall have existence until ________, 2032.

         SECTION 3.15  Mergers.

         (a)  The Trust may not consolidate, amalgamate, merge with or into, or
be replaced by, or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to any Person or other entity, except
as described in Section 3.15(b) and (c) or Section 8.1(a)(iv).

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

              (i)   if the Trust is not the survivor, such successor entity (the
         "Successor Entity") either:

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

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

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

                                       24

<PAGE>

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

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

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

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

              (vii)  after giving effect to the transaction, no Event of Default
         and no event which, after notice or lapse of time, or both, would
         become an Event of Default, has occurred and is continuing under the
         Indenture.

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

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

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

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

              (ix)   the Sponsor guarantees the obligations of such Successor
         Entity under the Successor Securities at least to the extent provided
         by the Securities Guarantees and the Indenture.

         (c)  Notwithstanding Section 3.15(b), the Trust shall not, except with
the consent of Holders of 100% in aggregate liquidation amount of the
Securities, consolidate, amalgamate, merge with or into, or be replaced by, any
other entity or permit any other entity to consolidate, amalgamate, merge with
or into, or replace it, if such consolidation, amalgamation, merger or

                                       25

<PAGE>

replacement would cause the Trust or, if applicable, Successor Entity not to
be classified as a grantor trust for United States federal income tax purposes.

                                   ARTICLE IV
                                     SPONSOR

         SECTION 4.1   Sponsor's Purchase of Common Securities.

         On the Closing Date, the Sponsor will purchase all of the Common
Securities issued by the Trust, in an amount at least equal to 3% of the total
capital of the Trust, immediately prior to the issuance of the Preferred
Securities pursuant to the Purchase Agreement.

         SECTION 4.2   Responsibilities of the Sponsor.

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

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

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

         (c)  if so determined by the Sponsor, to prepare for filing by the
Trust an application to the NYSE or any other national stock exchange or the
NASDAQ National Market for listing or quotation upon notice of issuance of the
Preferred Securities;

         (d)  if so determined by the Sponsor, to prepare for filing by the
Trust with the Commission a registration statement on Form 8-A relating to the
registration of the Preferred Securities under Section 12(b) or 12(g) of the
Exchange Act, as the case may be, including any amendments thereto; and

         (e)  to negotiate the terms of the Purchase Agreement providing for the
issuance of the Preferred Securities.

         SECTION 4.3   Right to Proceed.

         The Sponsor acknowledges the rights of the Holders to institute a
Direct Action against the Debenture Issuer as set forth in Section 3.8(e)
hereto.

                                       26

<PAGE>

         SECTION 4.4   Expenses.

         In connection with the offering, sale and issuance of the Securities by
the Trust and the sale of the Debentures by the Debenture Issuer to the Trust,
the Debenture Issuer, in its capacity as borrower with respect to the
Debentures, shall:

         (a)  pay all costs and expenses relating to the offering, sale and
issuance of the Debentures, including commissions payable to the underwriters in
respect of the Preferred Securities pursuant to the Purchase Agreement and
compensation, reimbursement and indemnification of the Trustee under the
Indenture in accordance with the provisions of Section 6.06 of the Indenture;

         (b)  be responsible for and shall pay all debts and obligations (other
than with respect to the Securities) and all costs and expenses of the Trust
(including, but not limited to, costs and expenses relating to the organization,
maintenance and dissolution of the Trust, the offering, sale and issuance of the
Securities (including commissions to the underwriters in connection therewith),
the fees and expenses (including reasonable counsel fees and expenses) of the
Institutional Trustee, the Delaware Trustee and the Regular Trustees (including
any amounts payable under Article X of this Declaration), the costs and expenses
relating to the operation of the Trust, including without limitation, costs and
expenses of accountants, attorneys, statistical or bookkeeping services,
expenses for printing and engraving and computing or accounting equipment,
paying agent(s), registrar(s), transfer agent(s), duplicating, travel and
telephone and other telecommunications expenses and costs and expenses incurred
in connection with the acquisition, financing and disposition of Trust assets
and the enforcement by the Institutional Trustee of the rights of the Holders of
the Preferred Securities);

         (c)  be primarily liable for any indemnification obligations arising
with respect to this Declaration; and

         (d)  pay any and all taxes (other than United States withholding taxes
attributable to the Trust or its assets) and all liabilities, costs and expenses
with respect to such taxes of the Trust.

         The Debenture Issuer's obligations under this Section 4.4 shall be for
the benefit of, and shall be enforceable by, any Person to whom such debts,
obligations, costs, expenses and taxes are owed (a "Creditor"), whether or not
such Creditor has received notice hereof. Any such Creditor may enforce the
Debenture Issuer's obligations under this Section 4.4 directly against the
Debenture Issuer and the Debenture Issuer irrevocably waives any right of remedy
to require that any such Creditor take any action against the Trust or any other
Person before proceeding against the Debenture Issuer. The Debenture Issuer
agrees to execute such additional agreements as may be necessary or desirable in
order to give full effect to the provisions of this Section 4.4.

                                       27

<PAGE>

                                   ARTICLE V
                                    TRUSTEES

         SECTION 5.1   Number of Trustees.

         (a)  The number of Trustees initially shall be five. At any time before
the issuance of any Securities, the Sponsor may, by written instrument, increase
or decrease the number of Trustees. After the issuance of any Securities, the
number of Trustees may be increased or decreased by vote of the Holders of
Majority in Liquidation Amount of the Common Securities voting as a class at a
meeting of the Holders of the Common Securities; provided, however, that, the
number of Trustees shall in no event be less than two; and provided further that
(i) one Trustee shall possess the qualifications specified in Section 5.2; (ii)
there shall be at least one Trustee who is an employee or officer of, or is
affiliated with, the Sponsor (a "Regular Trustee"); and (iii) one Trustee shall
be the Institutional Trustee for so long as this Declaration is required to
qualify as an indenture under the Trust Indenture Act, and such Trustee may also
serve as Delaware Trustee if it meets the applicable requirements.

         (b)  Any action taken by Holders of Common Securities pursuant to this
Article V shall be taken at a meeting of Holders of Common Securities convened
for such purpose or by written consent of such Holders.

         (c)  Except as otherwise provided herein, no amendment may be made to
this Section 5.1 which would change any rights with respect to the number,
existence or appointment and removal of Trustees, except with the consent of
each Holder of Common Securities.

         SECTION 5.2   Delaware Trustee.

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

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

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

         The initial Delaware Trustee shall be The Bank of New York (Delaware),
an affiliate of the Institutional Trustee, until removed or replaced in
accordance with Section 5.6.

         SECTION 5.3   Institutional Trustee; Eligibility.

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

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

                                       28

<PAGE>

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

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

         (c)  If the Institutional Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act or
becomes a creditor of the Sponsor during the time periods specified in Section
311 of the Trust Indenture Act, the Institutional Trustee and the Holder of the
Common Securities (as if it were the obligor referred to in Section 310(b) of
the Trust Indenture Act) shall in all respects comply with the provisions of
Section 310(b) and 311 of the Trust Indenture Act, as applicable.

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

         (e)  The initial Institutional Trustee shall be The Bank of New York
until removed or replaced in accordance with Section 5.6.

         SECTION 5.4   Certain Qualifications of the Regular Trustees and the
Delaware Trustee Generally.

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

         SECTION 5.5   Regular Trustees.

         The initial Regular Trustees shall be Mary L. Bathen, W. Flake Oakley
and William A. McCrary.

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

                                       29

<PAGE>

         (b)  Except as otherwise required by applicable law, any one of the
Regular Trustees is authorized to execute on behalf of the Trust any documents
which the Regular Trustees have the power and authority to execute pursuant to
Section 3.6.

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

         SECTION 5.6   Appointment, Removal and Resignation of Trustees.

         (a)  Subject to Section 5.6(b), Trustees may be appointed or removed
without cause at any time except during an Event of Default:

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

              (ii)  unless an Event of Default shall have occurred and be
         continuing after the issuance of any Securities, by vote of the Holders
         of a Majority in Liquidation Amount of the Common Securities voting as
         a class at a meeting of the Holders of the Common Securities; and

              (iii) if an Event of Default shall have occurred and be
         continuing, with respect to:

                    (A)  the Regular Trustees, by the vote of the Holders of a
              Majority in Liquidation Amount of the Common Securities voting as
              a class at a meeting of the Holders of the Common Securities; and

                    (B)  the Institutional Trustee and the Delaware Trustee, by
              the vote of the Holders of a Majority in Liquidation Amount of the
              Preferred Securities voting as a class at a meeting of the Holders
              of the Preferred Securities.

         (b)  The Trustee that acts as

              (i)   Institutional Trustee shall not be removed in accordance
         with Section 5.6(a) until a successor institutional Trustee possessing
         the qualifications to act as Institutional Trustee under Section 5.3(a)
         (a "Successor Institutional Trustee") has been appointed and has
         accepted such appointment by written instrument executed by such
         Successor Institutional Trustee and delivered to the Regular Trustees,
         the Sponsor and the Institutional Trustee being removed; and

              (ii)  Delaware Trustee shall not be removed in accordance with
         this Section 5.6(a) until a successor Trustee possessing the
         qualifications to act as Delaware Trustee under Sections 5.2 and 5.4 (a
         "Successor Delaware Trustee") has been appointed and has accepted such
         appointment by written instrument executed by such Successor

                                       30

<PAGE>

         Delaware Trustee and delivered to the Regular Trustees, the Sponsor and
         the Delaware Trustee being removed.

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

              (i)   no such resignation of the Trustee that acts as the
         Institutional Trustee shall be effective:

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

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

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

         (d)  The Holders of the Common Securities shall use their best efforts
to promptly appoint a Successor Institutional Trustee or Successor Delaware
Trustee as the case may be if the Institutional Trustee or the Delaware Trustee
delivers a Resignation Request in accordance with this Section 5.6.

         (e)  If no Successor Institutional Trustee or Successor Delaware
Trustee shall have been appointed and accepted appointment as provided in this
Section 5.6 within 60 days after delivery of a notice of removal or a
Resignation Request, the Institutional Trustee or Delaware Trustee resigning or
being removed, as applicable, may petition, at the expense of the Sponsor, any
court of competent jurisdiction for appointment of a Successor Institutional
Trustee or Successor Delaware Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper and prescribe, appoint a
Successor Institutional Trustee or Successor Delaware Trustee, as the case may
be.

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

         SECTION 5.7   Vacancies among Trustees.

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

                                       31

<PAGE>

vacancy shall occur. A resolution certifying the existence of such vacancy by
the Regular Trustees or, if there are more than two, a Majority of the Regular
Trustees, shall be conclusive evidence of the existence of such vacancy. The
vacancy shall be filled with a Trustee appointed in accordance with Section 5.6.

         SECTION 5.8   Effect of Vacancies.

         The death, resignation, retirement, removal, bankruptcy, dissolution,
liquidation, incompetence or incapacity to perform the duties of a Trustee shall
not operate to dissolve, terminate or annul the Trust. Whenever a vacancy in the
number of Regular Trustees shall occur, until such vacancy is filled by the
appointment of a Regular Trustee in accordance with Section 5.6, the Regular
Trustees in office, regardless of their number, shall have all the powers
granted to the Regular Trustees and shall discharge all the duties imposed upon
the Regular Trustees by this Declaration.

         SECTION 5.9   Meetings.

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

         SECTION 5.10  Delegation of Power.

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

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         SECTION 5.11  Merger, Conversion, Consolidation or Succession to
                       Business.

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

                                   ARTICLE VI
                                  DISTRIBUTIONS

         SECTION 6.1   Distributions.

         Holders shall receive Distributions in accordance with the applicable
terms of the relevant Holder's Securities as set forth in Annex I. If and to the
extent that the Debenture Issuer makes a payment of interest (including Compound
Interest and Additional Interest) on and/or principal of the Debentures held by
the Institutional Trustee (the amount of any such payment being a "Payment
Amount"), the Institutional Trustee shall and is directed, to the extent funds
are available for that purpose, to make a distribution (a "Distribution") of the
Payment Amount to Holders in accordance with the terms of the Securities.

                                  ARTICLE VII
                             ISSUANCE OF SECURITIES

         SECTION 7.1   General Provisions Regarding Securities.

         (a) The Regular Trustees shall on behalf of the Trust issue one class
of preferred securities (the "Preferred Securities"), representing undivided
beneficial interests in the assets of the Trust having such terms as are set
forth in Annex I (which terms are incorporated by reference in, and made a part
of, this Declaration as if specifically set forth herein) and one class of
common securities (the "Common Securities"), representing undivided beneficial
interests in the assets of the Trust having such terms as are set forth in Annex
I (which terms are incorporated by reference in, and made a part of, this
Declaration as if specifically set forth herein). The Trust shall issue no
securities or other interests in the assets of the Trust other than the
Preferred Securities and the Common Securities.

         (b)  The Certificates shall be signed on behalf of the Trust by two
Regular Trustees. Such signature shall be the manual or facsimile signature of
any present or any future Regular Trustees. Typographical and other minor errors
or defects in any such reproduction of any such signature shall not affect the
validity of any Security. In case any Regular Trustee of the Trust who shall
have signed any of the Securities shall cease to be such Regular Trustee before
the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be

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<PAGE>

delivered as though the person who signed such Certificates had not ceased to be
such Regular Trustee; and any Certificate may be signed on behalf of the Trust
by such persons who, at the actual date of execution of such Security, shall be
the Regular Trustees of the Trust, although at the date of the execution and
delivery of the Declaration any such person was not such a Regular Trustee.
Certificates shall be printed, lithographed or engraved or may be produced in
any other manner as is reasonably acceptable to the Regular Trustees, as
evidenced by their execution thereof, and may have such letters, numbers or
other marks of identification or designation and such legends or endorsements as
the Regular Trustees may deem appropriate, or as may be required to comply with
any law or with any rule or regulation of any stock exchange on which Securities
may be listed, or to conform to usage. Pending the preparation of definitive
Preferred Securities, the Regular Trustees on behalf of the Trust may execute
and upon written order of any Regular Trustee, the Institutional Trustee shall
authenticate, temporary Preferred Securities (printed, lithographed or
typewritten), substantially in the form of the definitive Preferred Securities
in lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Preferred Securities all as may
be determined by the Regular Trustees on behalf of the Trust upon the same
conditions and in substantially the same manner, and with like effect, as
definitive Preferred Securities. Without unnecessary delay, the Regular Trustees
on behalf of the Trust will execute and furnish and upon written order of any
Regular Trustee the Institutional Trustee shall authenticate, definitive
Preferred Securities and thereupon any or all temporary Preferred Securities may
be surrendered to the transfer agent and registrar in exchange therefor (without
charge to the Holders).

         (c)  At the time of the delivery of the Preferred Securities, the
Regular Trustees shall cause Preferred Security Certificates to be authenticated
by the Institutional Trustee on behalf of the Trust and delivered to or upon the
written order of the Trust, signed by two Regular Trustees without further
corporate action by the Sponsor, in authorized denominations. A Preferred
Security Certificate shall not be valid until authenticated by the manual
signature of an authorized signatory of the Institutional Trustee. The signature
shall be conclusive evidence that the Preferred Security has been properly
authenticated under this Declaration.

         The Institutional Trustee may appoint an authenticating agent
acceptable to the Trust to authenticate Preferred Securities. An authenticating
agent may authenticate Preferred Securities whenever the Institutional Trustee
may do so. Each reference in this Declaration to authentication by the
Institutional Trustee includes authentication by such agent. An authenticating
agent has the same rights as the Institutional Trustee to deal with the Sponsor
or an Affiliate, and may itself be an Affiliate of the Trust or a Related Party
of the Sponsor.

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

         (e)  Upon issuance of the Securities as provided in this Declaration,
the Securities so issued shall be deemed to be validly issued, fully paid and
nonassessable undivided beneficial interests in the assets of the Trust entitled
to the benefits of this Declaration.

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<PAGE>

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

         SECTION 7.2   Paying Agent.

         In the event that the Preferred Securities are not in book-entry only
form, the Trust shall maintain in the Borough of Manhattan, The City of New
York, State of New York, an office or agency where the Preferred Securities may
be presented for payment ("Paying Agent").  The Regular Trustees may appoint the
Paying Agent and may appoint one or more additional paying agents in such other
locations as it shall determine. The term "Paying Agent" includes any additional
paying agent. The Regular Trustees may change any Paying Agent without prior
notice to any Holder. The Trust shall notify the Institutional Trustee of the
name and address of any Agent not a party to this Declaration. If the Regular
Trustees fail to appoint or maintain another entity as Paying Agent, the
Institutional Trustee shall act as such. The Trust or any of its Affiliates may
act as Paying Agent. The Bank of New York shall initially act as Paying Agent
for the Preferred Securities and the Common Securities. Any successor Paying
Agent or any additional Paying Agent shall execute and deliver to the Regular
Trustees an instrument in which such successor Paying Agent or additional Paying
Agent shall agree with the Regular Trustees that as Paying Agent, such successor
Paying Agent or additional Paying Agent will hold all sums, if any, held by it
for payment to the Holders in trust for the benefit of the Holders entitled
thereto until such sums shall be paid to such Holders, will give the
Institutional Trustee notice of any default by the Trust (or any other obligor
on the Securities) in the making of any payment on the Securities and will, at
any time during the continuance of any such default, upon the written request of
the Institutional Trustee, forthwith pay to the Institutional Trustee all sums
so held in trust by such Paying Agent. The Paying Agent shall return all
unclaimed funds to the Institutional Trustee and upon removal of a Paying Agent
such Paying Agent shall also return all funds in its possession to the
Institutional Trustee. Any reference in this Declaration to the Paying Agent
shall include any co-paying agent unless the context requires otherwise.

         SECTION 7.3   Outstanding Preferred Securities.

         The Preferred Securities outstanding at any time are all the Preferred
Securities authenticated by the Institutional Trustee except for those canceled
by it, those delivered to it for cancellation, and those described in this
Section as not outstanding.

         If a Preferred Security is replaced, paid or purchased, it ceases to be
outstanding unless the Institutional Trustee receives proof satisfactory to it
that the replaced, paid or purchased Preferred Security is held by a bona fide
purchaser.

         If Preferred Securities are considered paid in accordance with the
terms of this Declaration, they cease to be outstanding and Distributions on
them shall cease to accumulate.

         In determining whether the Holders of the required amount of Securities
have concurred in any direction, waiver or consent, Capital Securities owned by
the Trust, the Sponsor or an Affiliate of the Sponsor, as the case may be, shall
be disregarded and deemed not to be

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<PAGE>

outstanding, except that for the purposes of determining whether the Property
Trustee shall be fully protected in relying on any such direction, waiver or
consent, only Securities which the Property Trustee actually knows are so owned
shall be so disregarded.

                                  ARTICLE VIII
                      DISSOLUTION AND TERMINATION OF TRUST

         SECTION 8.1   Dissolution and Termination of Trust.

         (a)  The Trust shall dissolve:

              (i)    on _______, 2032, the expiration of the term of the Trust;

              (ii)   upon the bankruptcy, insolvency or liquidation of the
         Sponsor or the Trust;

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

              (iv)   upon the filing of a certificate of dissolution or its
         equivalent with respect to the Sponsor;

              (v)    upon the consent of the Holders of a Majority in
         Liquidation Amount of the Securities voting together as a single class
         to dissolve the Trust;

              (vi)   upon the revocation of the Sponsor's charter and the
         expiration of 90 days after the date of revocation without a
         reinstatement thereof;

              (vii)  upon the distribution of all of the Debentures (at any time
         at the option of the Sponsor) to the Holders in exchange for all of the
         Securities in accordance with the terms of the Securities, subject to
         the Sponsor's receipt of prior approval of the Federal Reserve Board if
         such approval is then required under applicable law, rules, guidelines
         or policies and the Sponsor's receipt and delivery to the Institutional
         Trustee of an opinion of nationally recognized tax counsel that Holders
         will not recognize gain or loss for United States federal income tax
         purposes as a result of such distribution or exchange; or

              (viii) when all of the Securities shall have been called for
         redemption and the amounts necessary for redemption thereof, including
         any Additional Interest or Compound Interest, shall have been paid to
         the Holders in accordance with the terms of the Securities.

         (b)  As soon as is practicable after the occurrence of an event
referred to in Section 8.1(a) and after the completion of the winding up of the
Trust, the Regular Trustees shall file a certificate of cancellation with the
Secretary of State of the State of Delaware and the Trust shall thereupon be
terminated.

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

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<PAGE>

                                   ARTICLE IX
                              TRANSFER OF INTERESTS

         SECTION 9.1   Transfer of Securities.

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

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

         (c)  For so long as the Securities remain outstanding, the Sponsor
agrees (i) not to transfer ownership of the Common Securities of the Trust,
provided that any permitted successor of the Sponsor under the Indenture may
succeed to the Sponsor's ownership of the Common Securities, (ii) not to cause,
as Sponsor of the Trust, or to permit, as Holder of the Common Securities, the
dissolution, winding-up or liquidation of the Trust, except as provided in this
Declaration and (iii) use its best efforts to cause the Trust (a) to remain a
business trust, except in connection with the distribution of Debentures to the
Holders in liquidation of the Trust, the redemption of all of the Securities, or
certain mergers, consolidations or amalgamations, each as permitted by this
Declaration, and (b) to otherwise continue to be classified as a grantor trust
for United States federal income tax purposes.

         SECTION 9.2   Transfer of Certificates.

         (a)  The Regular Trustees shall provide for the registration of
Certificates and of transfers of Certificates, which will be effected without
charge but only upon payment (with such indemnity as the Regular Trustees may
require) in respect of any tax or other government charges that may be imposed
in relation to it. Upon surrender for registration of transfer of any
Certificate, the Regular Trustees shall cause one or more new Certificates to be
issued and authenticated by the Institutional Trustee in the name of the
designated transferee or transferees. Every Certificate surrendered for
registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Regular Trustees duly executed by the
Holder or such Holder's attorney duly authorized in writing. Each Certificate
surrendered for registration of transfer shall be canceled by the Regular
Trustees. A transferee of a Certificate shall be entitled to the rights and
subject to the obligations of a Holder hereunder upon the receipt by such
transferee of a Certificate. By acceptance of a Certificate, each transferee
shall be deemed to have agreed to be bound by this Declaration.

         (b)  Upon receipt by the Institutional Trustee of a Definitive
Preferred Security Certificate, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Institutional Trustee,
requesting transfer of such Definitive Preferred Security Certificate for a
beneficial interest in a Global Certificate, the Institutional Trustee shall
cancel such Definitive Preferred Security Certificate and cause, or direct the
Depository Institution to cause, the aggregate liquidation amount of Preferred
Securities represented by the appropriate Global Certificate to be increased
accordingly. If no Global Certificates are then outstanding, the Trust

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<PAGE>

shall issue and the Institutional Trustee shall authenticate, upon written
order of any Regular Trustee, a Global Certificate representing an appropriate
liquidation amount of Preferred Securities.

         (c)  Subject to Section 9.7, upon receipt by the Institutional Trustee
from the Depository Institution or its nominee on behalf of any Person having a
beneficial interest in a Global Certificate of written instructions or such
other form of instructions as is customary for the Depository Institution or the
person designated by the Depository Institution, requesting transfer of a
beneficial interest in a Global Certificate for a Definitive Preferred Security
Certificate, then the Institutional Trustee or the securities custodian, at the
direction of the Institutional Trustee, will cause, in accordance with the
standing instructions and procedures existing between the Depository Institution
and the securities custodian, the aggregate liquidation amount of the Global
Certificate to be reduced on its books and records and, following such
reduction, the Trust will execute and the Institutional Trustee will
authenticate and deliver to the transferee a Definitive Preferred Security
Certificate.

         Definitive Preferred Security Certificates issued in exchange for a
beneficial interest in a Global Certificate shall be registered in such names
and in such authorized denominations as the Depository Institution, pursuant to
instructions from its Depository Institution Participants or indirect
participants or otherwise, shall instruct the Institutional Trustee. The
Institutional Trustee shall deliver such Preferred Securities to the persons in
whose names such Preferred Securities are so registered in accordance with the
instructions of the Depository Institution.

         (d)  Notwithstanding any other provisions of this Declaration, a Global
Certificate 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 or by the Depository Institution or any such nominee to a
successor Depository Institution or a nominee of such successor Depository
Institution.

         (e) The Institutional Trustee may appoint a transfer agent and
registrar ("Transfer Agent") acceptable to the Trust to perform the functions
set forth in this Section 9.2. The Transfer Agent may perform such functions
whenever the Institutional Trustee may do so. Each reference in this Declaration
to registration and transfer of Preferred Securities by the Institutional
Trustee includes such activities by the Transfer Agent. The Transfer Agent has
the same rights as the Institutional Trustee to deal with the Sponsor or an
Affiliate, and itself may be an Affiliate of the Trust or a Related Party of the
Sponsor. The Institutional Trustee hereby appoints The Bank of New York to
initially act as Transfer Agent for the Preferred Securities.

         SECTION 9.3   Deemed Security Holders.

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

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<PAGE>

         SECTION 9.4   Book-Entry Interests.

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

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

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

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

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

         Depository Institution Participants shall have no rights under this
Declaration with respect to any Global Certificate held on their behalf by the
Depository Institution or by the Institutional Trustee as the custodian of the
Depository Institution or under such Global Certificate, and the Depository
Institution may be treated by the Trust, the Institutional Trustee and any agent
of the Trust or the Institutional Trustee as the absolute owner of such Global
Certificate for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Trust, the Institutional Trustee or any agent of the
Trust or the Institutional Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository
Institution or impair, as between the Depository Institution and its Depository
Institution Participants, the operation of customary practices of such
Depository Institution governing the exercise of the rights of an owner of a
beneficial interest in any Global Certificate.

         At such time as all beneficial interests in a Global Certificate have
either been exchanged for Definitive Preferred Security Certificates to the
extent permitted by this Declaration or

                                       39

<PAGE>

redeemed, repurchased or canceled in accordance with the terms of this
Declaration, such Global Certificate shall be returned to the Depository
Institution for cancellation or retained and canceled by the Institutional
Trustee. At any time prior to such cancellation, if any beneficial interest in a
Global Certificate is exchanged for Definitive Preferred Security Certificates,
or if Definitive Preferred Security Certificates are exchanged for a beneficial
interest in a Global Certificate, Preferred Securities represented by such
Global Certificate shall be reduced or increased and an adjustment shall be made
on the books and records of the Institutional Trustee (if it is then the
securities custodian for such Global Certificate) with respect to such Global
Certificate, by the Institutional Trustee or the securities custodian, to
reflect such reduction or increase.

         SECTION 9.5   Notices to Depository Institution.

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

         SECTION 9.6   Appointment of Successor Depository Institution.

         If the circumstances specified under clause (a) or (b) of Section 9.7
are applicable, the Regular Trustees may, in their sole discretion, appoint a
successor Depository Institution with respect to such Preferred Securities.

         SECTION 9.7   Definitive Preferred Security Certificates.

         If:

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

         (b)  a Depository Institution ceases to be a clearing agency under the
Exchange Act;

         (c)  the Sponsor elects in its sole discretion to terminate the
book-entry system through the Depository Institution with respect to some or all
of the Preferred Securities, or

         (d)  an Event of Default, or event that with notice or the lapse of
time or both, has occurred and is continuing,

         then:

         (e)  Definitive Preferred Security Certificates shall be prepared by
the Regular Trustees on behalf of the Trust with respect to the Preferred
Securities represented by the related Global Certificate; and

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<PAGE>

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

         SECTION 9.8   Mutilated, Destroyed, Lost or Stolen Certificates.

         If:

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

         (b)  there shall be delivered to the Regular Trustees, the
Institutional Trustee or any authenticating agent such security or indemnity as
may be reasonably required by them to keep each of them harmless,

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

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

         SECTION 10.1   Liability.

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

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<PAGE>

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

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

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

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

         SECTION 10.2  Exculpation.

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

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

         SECTION 10.3  Fiduciary Duty.

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

         (b)  Unless otherwise expressly provided herein:

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<PAGE>

              (i)   whenever a conflict of interest exists or arises between an
         Indemnified Person and any Covered Person; or

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

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

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

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

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

         SECTION 10.4  Indemnification.

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

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<PAGE>

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

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

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

              (v)   Expenses (including attorneys' fees and expenses) incurred
         by a Company Indemnified Person in defending a civil, criminal,
         administrative or investigative action, suit or proceeding referred to
         in paragraphs (i) and (ii) of this Section 10.4(a) shall be paid by the
         Debenture Issuer in advance of the final disposition of such action,
         suit or proceeding upon receipt of an undertaking by or on behalf of
         such Company Indemnified Person to repay such amount if it shall
         ultimately be determined that he is not entitled to be indemnified by
         the Debenture Issuer as authorized in this Section 10.4(a).
         Notwithstanding the foregoing, no advance shall be made by the
         Debenture Issuer if a determination is reasonably and promptly made
         (i) by the Regular Trustees by a Majority vote of a Quorum of
         disinterested Regular Trustees, (ii) if such a Quorum is not

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<PAGE>

         obtainable, or, even if obtainable, if a Quorum of disinterested
         Regular Trustees so directs, by independent legal counsel in a written
         opinion or (iii) by the Debenture Issuer, that, based upon the facts
         known to the Regular Trustees, counsel or the Debenture Issuer, as the
         case may be, at the time such determination is made, such Company
         Indemnified Person acted in bad faith or in a manner that such person
         did not believe to be in, or believed was opposed to, the best
         interests of the Trust, or, with respect to any criminal proceeding,
         that such Company Indemnified Person believed or had reasonable cause
         to believe his conduct was unlawful. In no event shall any advance be
         made in instances where the Regular Trustees, independent legal counsel
         or Debenture Issuer reasonably determine that a Company Indemnified
         Person deliberately breached his duty to the Trust or its Common or
         Preferred Security Holders.

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

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

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

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

         (b)  The Debenture Issuer agrees to indemnify the (i) Institutional
Trustee, (ii) the Delaware Trustee, (iii) any Affiliate of the Institutional
Trustee and the Delaware Trustee and

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<PAGE>

(iv) any officers, directors, shareholders, members, partners, employees,
representatives, custodians, nominees or agents of the Institutional Trustee and
the Delaware Trustee (each of the Persons in (i) through (iv) including the
Institutional Trustee and the Delaware Trustee in their respective individual
capacities, being referred to as a "Fiduciary Indemnified Person") for, and to
hold each Fiduciary Indemnified Person harmless against, any and all loss,
liability, damage, action, suit, claim or expense including taxes (other than
taxes based on the income of such Fiduciary Indemnified Person) of any kind and
nature whatsoever incurred without negligence or bad faith on the part of such
Fiduciary Indemnified Person, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending
against or investigating any claim (regardless of who has asserted such claim)
or liability in connection with the exercise or performance of any of the powers
or duties of such Fiduciary Indemnified Person hereunder. The obligation to
indemnify as set forth in this Section 10.4(b) shall survive the resignation or
removal of the Institutional Trustee or the Delaware Trustee and the
satisfaction and discharge of this Declaration.

         (c)  The Debenture Issuer agrees to pay the Institutional Trustee and
the Delaware Trustee, from time to time, such compensation for all services
rendered by the Institutional Trustee and the Delaware Trustee hereunder as may
be mutually agreed upon in writing by the Debenture Issuer and the Institutional
Trustee or the Delaware Trustee or the Delaware Trustee, as the case may be,
and, except as otherwise expressly provided herein, to reimburse the
Institutional Trustee and the Delaware Trustee upon its or their request for all
reasonable expenses (including legal fees and expenses), disbursements and
advances incurred or made by the Institutional Trustee or the Delaware Trustee,
as the case may be, in accordance with the provisions of this Declaration,
except any such expense, disbursement or advance as may be attributable to its
or their negligence or bad faith.

         SECTION 10.5  Outside Businesses

         Any Covered Person, the Sponsor, the Delaware Trustee and the
Institutional Trustee (subject to Section 5.3(c)) may engage in or possess an
interest in other business ventures of any nature or description, independently
or with others, similar or dissimilar to the business of the Trust, and the
Trust and the Holders shall have no rights by virtue of this Declaration in and
to such independent ventures or the income or profits derived therefrom, and the
pursuit of any such venture, even if competitive with the business of the Trust,
shall not be deemed wrongful or improper. No Covered Person, the Sponsor, the
Delaware Trustee or the Institutional Trustee shall be obligated to present any
particular investment or other opportunity to the Trust even if such opportunity
is of a character that, if presented to the Trust, could be taken by the Trust,
and any Covered Person, the Sponsor, the Delaware Trustee and the Institutional
Trustee shall have the right to take for its own account (individually or as a
partner or fiduciary) or to recommend to others any such particular investment
or other opportunity. Any Covered Person, the Delaware Trustee and the
Institutional Trustee may engage or be interested in any financial or other
transaction with the Sponsor or any Affiliate of the Sponsor, or may act as
depositary for, trustee or agent for, or act on any committee or body of holders
of, securities or other obligations of the Sponsor or its Affiliates.

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<PAGE>

         SECTION 10.6   Compensation; Fees

         The Sponsor agrees:

         (a)  to pay to the Trustees from time to time such compensation as the
Trust and the Trustees shall agree to in writing for all services rendered by
them hereunder (which compensation shall not be limited by any provision of law
in regard to compensation of a trustee of an express trust);

         (b)  except as otherwise expressly provided herein, to reimburse the
Trustees upon request for all reasonable expenses, disbursements and advances
incurred or made by the Trustees in accordance with any provision of this
Declaration (including the reasonable compensation and the expenses and
disbursements of their respective agents and counsel), except any such expense,
disbursement or advance as may be attributable to their respective negligence or
bad faith; and

         (c)  the provisions of this Section 10.6 shall survive the termination
of this Declaration and the resignation or removal of the Trustees.

                                   ARTICLE XI
                                   ACCOUNTING

         SECTION 11.1 Fiscal Year.

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

         SECTION 11.2 Certain Accounting Matters.

         (a)  At all times during the existence of the Trust, the Regular
Trustees shall keep, or cause to be kept, full books of account, records and
supporting documents, which shall reflect in reasonable detail, each transaction
of the Trust. The books of account shall be maintained on the accrual method of
accounting, in accordance with generally accepted accounting principles,
consistently applied. The Trust shall use the accrual method of accounting for
United States federal income tax purposes. The books of account and the records
of the Trust shall be examined by and reported upon as of the end of each Fiscal
Year of the Trust by a firm of independent certified public accountants selected
by the Regular Trustees. The books and records of the Trust, together with a
copy of the Declaration and a certified copy of the Certificate of Trust, and
any amendment thereto shall at all times be maintained at the principal office
of the Trust and shall be open for inspection for any examination by any Holder
or its duly authorized representative for any purpose reasonably related to its
interest in the Trust during normal business hours.

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

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<PAGE>

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

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

         SECTION 11.3 Banking.

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

         SECTION 11.4 Withholding.

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

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<PAGE>

                                  ARTICLE XII
                             AMENDMENTS AND MEETINGS

         SECTION 12.1 Amendments.

         (a) Except as otherwise provided in this Declaration or by any
applicable terms of the Securities, this Declaration may only be modified and
amended by a written instrument approved and executed by:

              (i)   the Regular Trustees (or, if there are more than two Regular
         Trustees, a Majority of the Regular Trustees);

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

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

         (b) No amendments, and any such purported amendment shall be void and
ineffective:

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

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

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

                    (B) an opinion of counsel (who may be counsel to the Sponsor
              or the Trust) that such amendment is permitted by, and conforms
              to, the terms of this Declaration (including the terms of the
              Securities); and

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

                    (A) cause the Trust to fail to continue to be classified for
              purposes of United States federal income taxation as a grantor
              trust;

                    (B) reduce or otherwise adversely affect the powers of the
              Institutional Trustee in contravention of the Trust Indenture Act;
              or

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<PAGE>

                    (C) cause the Trust to be deemed to be an Investment Company
              required to be registered under the Investment Company Act.

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

         (d) Sections 3.8(e), 4.4, 9.1(c), 10.1(c) and this Section 12.1 shall
not be amended without the consent of all of the Holders of the Securities;

         (e) Article IV shall not be amended without the consent of the Holders
of a Majority in Liquidation Amount of the Common Securities;

         (f) The rights of the Holders of the Common Securities under Article V
to increase or decrease the number of, and appoint and remove Trustees shall not
be amended without the consent of the Holders of a Majority in Liquidation
Amount of the Common Securities; and

         (g) Notwithstanding Section 12.1(c), this Declaration may be amended by
the Regular Trustees without the consent of the Holders to:

              (i) cure any ambiguity;

              (ii) correct or supplement any provision in this Declaration that
         may be defective or inconsistent with any other provision of this
         Declaration;

              (iii) add to the covenants, restrictions or obligations of the
         Sponsor;

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

              (v) preserve the status of the Trust as a grantor trust for United
         States federal income tax purposes, which amendment does not have a
         material adverse effect on the right, preferences or privileges of the
         Holders.

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

         (a) Meetings of the Holders of any class of Securities may be called at
any time by the Regular Trustees (or as provided in the terms of the Securities)
to consider and act on any matter on which Holders of such class of Securities
are entitled to act under the terms of this Declaration, the terms of the
Securities or the rules of any stock exchange on which the Preferred Securities
are listed or admitted for trading. The Regular Trustees shall call a meeting of
the Holders of such class if directed to do so by the Holders of at least 10% in
liquidation amount of such class of Securities. Such direction shall be given by
delivering to the Regular Trustees one or more calls in a writing stating that
the signing Holders wish to call a meeting and indicating

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<PAGE>

the general or specific purpose for which the meeting is to be called. Any
Holders calling a meeting shall specify in writing the Certificates held by the
Holders exercising the right to call a meeting and only those Securities
specified shall be counted for purposes of determining whether the required
percentage set forth in the second sentence of this paragraph has been met.

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

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

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

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

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

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<PAGE>

                                  ARTICLE XIII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

         SECTION 13.1 Representations and Warranties of Institutional Trustee.

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

         (a) the Institutional Trustee is a banking corporation, a national
banking association or a bank or trust company, duly organized, validly existing
and in good standing under the laws of the United States or any state thereof,
as the case may be, with corporate power and authority to execute and deliver,
and to carry out and perform its obligations under the terms of, this
Declaration;

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

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

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

         (e) on the Closing Date, the Institutional Trustee will be the record
holder of the Debentures and the Institutional Trustee has not knowingly created
any liens or encumbrances on such Debentures; and

         (f) the Institutional Trustee satisfies the qualifications set forth in
Section 5.3.

         SECTION 13.2 Representations and Warranties of Delaware Trustee.

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

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<PAGE>

         (a) the Delaware Trustee is a Delaware banking corporation, duly
organized, validly existing and in good standing under the laws of the State of
Delaware, with authority to execute and deliver, and to carry out and perform
its obligations under the terms of, this Declaration;

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

         (c) no consent, approval or authorization of, or registration with or
notice to, any State or Federal banking authority is required for the execution,
delivery or performance by the Delaware Trustee of this Declaration; and

         (d) the Delaware Trustee is a natural person who is a resident of the
State of Delaware or, if not a natural person, an entity which has its principal
place of business in the State of Delaware and meets the requirements of Section
5.2.

                                   ARTICLE XIV
                                  MISCELLANEOUS

         SECTION 14.1 Notices.

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

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

                  Colonial Capital Trust III
                  c/o The Colonial BancGroup, Inc.
                  One Commerce Street
                  P.O. Box 1108
                  Montgomery, Alabama  36101-1108
                  Attention:  William A. McCrary, Senior Counsel

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

                  The Bank of New York (Delaware)
                  White Clay Center
                  Route 273
                  Newark, Delaware  19711
                  Attention:  Corporate Trust Administration

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<PAGE>
                  with a copy to:

                  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

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

                  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

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

                  The Colonial BancGroup, Inc.
                  One Commerce Street
                  P.O. Box 1108
                  Montgomery, Alabama  36101-1108
                  Attention:  William A. McCrary, Senior Counsel

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

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

         SECTION 14.2 Governing Law.

         THIS DECLARATION AND THE RIGHTS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS.

                                       54

<PAGE>

         SECTION 14.3 Intention of the Parties.

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

         SECTION 14.4 Headings.

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

         SECTION 14.5 Successors and Assigns.

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

         SECTION 14.6 Partial Enforceability.

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

         SECTION 14.7 Counterparts.

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

                                       55

<PAGE>

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

                                        ________________________________________
                                        Mary L. Bathen, as Regular Trustee

                                        ________________________________________
                                        William A. McCrary, as Regular Trustee

                                        ________________________________________
                                        W. Flake Oakley, as Regular Trustee

                                        THE BANK OF NEW YORK (DELAWARE),
                                        as Delaware Trustee

                                        ________________________________________
                                        Name:
                                        Title:

                                        THE BANK OF NEW YORK,
                                        as Institutional Trustee

                                        ________________________________________
                                        Name:
                                        Title:

                                        THE COLONIAL BANCGROUP, INC.
                                        as Sponsor, Common Securities Holder and
                                        Debenture Issuer

                                        ________________________________________
                                        Name: W. Flake Oakley
                                        Title: Chief Financial Officer

                                       56

<PAGE>

                                     ANNEX I
                        TERMS OF __% PREFERRED SECURITIES
                         TERMS OF __% COMMON SECURITIES

         Pursuant to Section 7.1 of the Amended and Restated Declaration of
Trust, dated as of _____ __, 2002 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Securities are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration or, if not defined in the Declaration, as defined in the
Prospectus):

         1. Designation and Number.

         (a) Preferred Securities. Up to ________ Preferred Securities of the
Trust with an aggregate liquidation amount with respect to the assets of the
Trust of __ million dollars ($________) and a liquidation amount with respect to
the assets of the Trust of $25 per preferred security, are hereby designated for
the purposes of identification only as "__% Preferred Securities" (the
"Preferred Securities"). The Preferred Security Certificates evidencing the
Preferred Securities shall be substantially in the form of Exhibit A-1 to the
Declaration, with such changes and additions thereto or deletions therefrom as
may be required by ordinary usage, custom or practice or to conform to the rules
of any stock exchange on which the Preferred Securities are listed.

         (b) Common Securities. Up to ______ Common Securities of the Trust with
an aggregate liquidation amount with respect to the assets of the Trust of
_______ dollars ($____) and a liquidation amount with respect to the assets of
the Trust of $25 per common security, are hereby designated for the purposes of
identification only as "__% Common Securities" (the "Common Securities"). The
Common Security Certificates evidencing the Common Securities shall be
substantially in the form of Exhibit A-2 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice.

         (c) The Preferred Securities and the Common Securities (referred to
collectively as the "Securities") represent undivided beneficial interests in
the assets of the Trust.

         (d) In connection with the purchase of the Securities, the Sponsor will
deposit in the Trust, and the Trust will purchase, respectively, as trust
assets, Debentures of the Sponsor having an aggregate principal amount of up to
_____ dollars ($____), and bearing interest at an annual rate equal to the
annual Distribution rate on the Securities and having payment and
prepayment/maturity provisions which correspond to the payment and redemption
provisions of the Securities.

         2. Distributions.

         (a) Distributions payable on each Security will be fixed at a rate per
annum of __% (the "Coupon Rate") of the liquidation amount of $25 per Security,
such rate being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears

<PAGE>

beyond the applicable Distribution Payment Date (as defined below) will bear
interest thereon compounded quarterly at the Coupon Rate ("Compound Interest")
(to the extent permitted by applicable law). The term "Distributions," as used
herein, includes such cash distributions and any such interest (including
Additional Interest and Compound Interest) payable unless otherwise stated. A
Distribution will be made by the Institutional Trustee only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee
and to the extent the Trust has funds available in the Institutional Trustee
Account. The amount of Distributions payable for any period will be computed for
any full quarterly Distribution period on the basis of a 360-day year of twelve
30-day months and for any period shorter than a full quarterly Distribution
period, on the basis of the actual number of days elapsed in a calendar month
(but not to exceed 30 days in any month).

         (b)   Distributions on the Securities will be cumulative, will accrue
from ____ __, 2002 and, except as otherwise described below, will be payable
quarterly in arrears, on _______, _______, _______ and _______ of each year,
commencing on _______, 2002 when, as and if available for payment, except as
otherwise described below (each, a "Distribution Payment Date"). So long as no
Event of Default under the Indenture has occurred and is continuing, the
Debenture Issuer has the right under the Indenture to defer payments of interest
on the Debentures by extending the interest payment period from time to time on
the Debentures for a period not exceeding 20 consecutive quarterly periods
(each, an "Extension Period"), during which Extension Period no interest shall
be due and payable on the Debentures, provided that no Extension Period shall
last beyond the Stated Maturity or earlier prepayment of the Debentures. As a
consequence of such deferral, Distributions will also be deferred. Despite such
deferral, quarterly Distributions will continue to accrue with interest thereon
(to the extent permitted by applicable law) at the Coupon Rate compounded
quarterly (to the extent permitted by law) during any such Extension Period.
Prior to the termination of any such Extension Period, the Debenture Issuer may
further extend such Extension Period; provided that such Extension Period,
together with all such previous and further extensions thereof, may not exceed
20 consecutive quarterly periods or extend beyond the Stated Maturity or earlier
prepayment of the Debentures. Any interest accrued on the Debentures during an
Extension Period shall be paid Pro Rata to holders of Debentures on the first
payment date following the Extension Period and the Payment Amount shall be paid
Pro Rata to the Holders on the first Distribution Payment Date following the
Extension Period. Upon the termination of any Extension Period and the payment
of all amounts then due, the Debenture Issuer may commence a new Extension
Period, subject to the above requirements. In the event that the Debenture
Issuer exercises this right, then (i) the Debenture Issuer shall not declare or
pay any dividend on, make a distribution or other payment with respect to, or
redeem, purchase, acquire, or make a liquidation payment relating to, any of its
capital stock (other than (a) repurchases, redemptions or other acquisitions of
shares of capital stock of the Debenture Issuer in connection with employee
benefit plans, (b) as a result of an exchange or conversion of any class or
series of such capital stock for any other class or series of the Debenture
Issuer's capital stock or (c) the purchase of fractional interests in shares of
the Debenture Issuer's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged),
(ii) the Debenture Issuer shall not make any payment of interest, principal or
premium, if any, on or repay, repurchase or redeem any debt securities issued by
the Debenture Issuer that rank pari passu with or junior to such

                                       A-2

<PAGE>

Debentures and (iii) the Debenture Issuer shall not make any guarantee payments
with respect to the foregoing (other than pursuant to the Preferred Securities
Guarantee).

         (c) Distributions on the Securities will be payable promptly by the
Institutional Trustee upon receipt of immediately available funds to the Holders
thereof as they appear on the books and records of the Trust on the relevant
record dates, which will be, as long as the Preferred Securities remain in
book-entry form, the close of business on the Business Day prior to the relevant
Distribution Payment Date and, in the event the Preferred Securities are not in
book-entry form, the fifteenth calendar day prior to the relevant Distribution
Payment Date. The record dates and Distribution Payment Dates shall be the same
as the record dates and interest payment dates on the Debentures. Distributions
payable on any Securities that are not punctually paid on any Distribution
Payment Date, as a result of the Debenture Issuer having failed to make the
corresponding interest payment on the Debentures, will forthwith cease to be
payable to the Person in whose name such Securities are registered on the
relevant record date, and such defaulted Distribution will instead be payable to
the Person in whose name such Securities are registered on the special record
date established by the Regular Trustees, which record date shall correspond to
the special record date or other specified date determined in accordance with
the Indenture; provided, however, that Distributions shall not be considered
payable on any Distribution Payment Date falling within an Extension Period
unless the Debenture Issuer has elected to make a full or partial payment of
interest accrued on the Debentures on such Distribution Payment Date.
Distributions on the Securities will be paid by the Trust. All Distributions
paid with respect to the Securities shall be paid on a Pro Rata basis to Holders
thereof entitled thereto. If any date on which Distributions are payable on the
Securities is not a Business Day, then payment of the Distributions payable on
such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay) except that,
if such Business Day is in the next succeeding calendar year, such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date.

         (d) If at any time while the Institutional Trustee is the Holder of any
Securities, the Trust or the Institutional 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 Debenture Issuer will pay as additional interest
("Additional Interest") on the Debentures held by the Institutional Trustee,
such amounts as shall be required so that the net amounts received and retained
by the Trust and the Institutional Trustee after paying any such taxes, duties,
assessments or other governmental charges will be equal to the amounts the Trust
and the Institutional Trustee would have received had no such taxes, duties,
assessments or other governmental charges been imposed.

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

         3. Liquidation Distribution Upon Dissolution.

                                       A-3

<PAGE>

         In the event of any dissolution of the Trust (other than in connection
with the redemption of the Securities), the Trust shall be liquidated by the
Regular Trustees as expeditiously as the Regular Trustees determine to be
possible by distributing to the Holders, after satisfaction of liabilities to
creditors of the Trust as provided by applicable law, a Like Amount (as defined
below) of the Debentures, unless such distribution is determined by the
Institutional Trustee not to be practicable, in which event such Holders will be
entitled to receive out of the assets of the Trust legally available for
distribution to Holders, after satisfaction of liabilities to creditors of the
Trust as provided by applicable law, an amount equal to the aggregate of the
liquidation amount of $25 per Security plus accumulated and unpaid Distributions
thereon to the date of payment (such amount being the "Liquidation
Distribution").

         "Like Amount" means (i) with respect to a redemption of the Securities,
Securities having a liquidation amount equal to the principal amount of
Debentures to be paid in accordance with their terms and (ii) with respect to a
distribution of Debentures upon the liquidation of the Trust, Debentures having
a principal amount equal to the liquidation amount of the Securities of the
Holder to whom such Debentures are distributed.

         If, upon any such liquidation, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets legally available to pay
in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust with respect to the Securities shall be paid on a Pro Rata
basis.

         4. Redemption and Distribution.

         (a) Redemption of the Securities will occur simultaneously with any
repayment of the Debentures, whether at maturity or earlier prepayment. The
Debentures will mature on _______, 2032 (the "Stated Maturity"), unless prepaid
earlier as provided in this Section 4.

         Upon the repayment of the Debentures in whole or in part, whether at
maturity or earlier prepayment, the proceeds from such repayment shall be
simultaneously applied to redeem Securities having an aggregate liquidation
amount equal to the aggregate principal amount of the Debentures so repaid at
the Redemption Price. The "Redemption Price" shall be $25 per Security plus an
amount equal to unpaid Distributions thereon accumulated to the date of
redemption, payable in cash. If fewer than all the outstanding Securities are to
be so redeemed, the Securities will be redeemed Pro Rata and the Preferred
Securities to be redeemed will be as described in Section 4(f)(ii) below. Any
prepayment of the Debentures and related redemption of Preferred Securities
under subsection (b) below may require the prior approval of the Federal Reserve
Board if such approval is then required under applicable law, rules, guidelines
or policies.

         (b) The Debentures are prepayable prior to the Stated Maturity at the
option of the Company (i) in whole or in part, from time to time, on or after
_______, 2007 or (ii) at any time prior to _______, 2007, in whole but not in
part, upon the occurrence and continuation of a Special Event, in either case at
a prepayment price (the "Prepayment Price") equal to 100% of the principal
amount thereof plus unpaid interest thereon (including Additional Interest and
Compound Interest, if any) accrued to the date of prepayment.

                                       A-4

<PAGE>

         (c)   The following terms used herein shall be defined as follows:

         "Investment Company Event" means that the Regular Trustees shall have
received an opinion of nationally recognized independent counsel experienced in
such matters, who shall not be an officer or employee of the Sponsor or any of
its Affiliates, to the effect that, as a result of the occurrence of a change in
law or regulation or a written change (including any announced prospective
change) in interpretation or application of law or regulation by any legislative
body, court, governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or will be considered an "investment
company" that is required to be registered under the Investment Company Act,
which change or prospective change becomes effective or would become effective,
as the case may be, on or after the date of the issuance of the Preferred
Securities.

         "Regulatory Capital Event" means that the Debenture Issuer shall have
received an opinion of nationally recognized independent bank regulatory counsel
experienced in such matters, who shall not be an officer or employee of the
Sponsor or any of its Affiliates, to the effect that, as a result of (a) any
amendment to, or change (including any announced prospective change) in, the
laws (or any regulations thereunder) of the United States or any rules,
guidelines or policies of the Federal Reserve Board or (b) any official
administrative pronouncement or judicial decision interpreting or applying such
laws or regulations, which amendment or change is effective or such
pronouncement or decision is announced on or after the date of original issuance
of the Securities, the Preferred Securities do not constitute, or within 90 days
of the date thereof, will not constitute, Tier 1 capital (or its equivalent) for
purposes of the Federal Reserve Board's capital guidelines for bank holding
companies; provided, however, that the distribution of the Debentures in
connection with the liquidation of the Trust by the Debenture Issuer and the
treatment thereafter of the Debentures as other than Tier 1 capital shall not in
and of itself constitute a Regulatory Capital Event unless such liquidation
shall have occurred in connection with a Tax Event.

         "Special Event" means a Tax Event, an Investment Company Event or a
Regulatory Capital Event, as the case may be.

         "Tax Event" means that the Regular Trustees shall have received an
opinion of a nationally recognized independent tax counsel experienced in such
matters, who shall not be an officer or employee of the Sponsor or any of its
Affiliates, to the effect that, as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws or any regulations
thereunder of the United States or any political subdivision or taxing authority
thereof or therein or (b) any official administrative pronouncement or judicial
decision interpreting or applying such laws or regulations, which amendment or
change is effective or such pronouncement or decision is announced on or after
the date of the original issuance of the Debentures, there is more than an
insubstantial risk that (i) the Trust is, or will be within 90 days of the date
of such opinion, subject to United States federal income tax with respect to
income received or accrued on the Debentures, (ii) interest payable on the
Debentures is not, or within 90 days of the date thereof will not be, deductible
by the Company, in whole or in part, for United States federal income tax
purposes or (iii) the Trust is, or will be within 90 days of the date

                                       A-5

<PAGE>

thereof, subject to more than a de minimis amount of other taxes, duties or
other governmental charges.

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

         (e) The Debenture Issuer will have the right at any time to dissolve
the Trust and cause the Debentures to be distributed to the Holders, subject to
the prior approval of the Federal Reserve Board if such approval is then
required under applicable law, rules, guidelines or policies and the receipt by
the Debenture Issuer of an opinion of a nationally recognized tax counsel that
Holders will not recognize gain or loss for United States Federal income tax
purposes as a result of such distribution or exchange. If the Debentures are
distributed to the Holders and the Preferred Securities are then listed on an
exchange, the Debenture Issuer will use its best efforts to cause the Debentures
to be listed on the NYSE or on such other exchange as the Preferred Securities
are then listed.

         On the date fixed for any distribution of Debentures upon dissolution
of the Trust, (i) the Preferred Securities will no longer be deemed to be
outstanding, (ii) the Depository Institution or its nominee, as the record
holder of the Preferred Securities, will receive a registered global certificate
or certificates representing the Debentures to be delivered upon such
distribution and (iii) any certificates representing Preferred Securities not
held by the Depository Institution or its nominee will be deemed to represent
Debentures having an aggregate principal amount equal to the aggregate
liquidation amount of, with an interest rate identical to the Coupon Rate of,
and accrued and unpaid interest equal to accumulated and unpaid Distributions
on, such Preferred Securities until such certificates are presented to the
Debenture Issuer or its agent for transfer or reissuance.

         (f) Redemption or Distribution Procedures.

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

                                       A-6

<PAGE>

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

     (iii)  If Securities are to be redeemed and the Trust gives a
            Redemption/Distribution Notice, which notice may only be issued if
            the Debentures are redeemed as set out in this Section 4 (which
            notice will be irrevocable), then by 10:00 a.m., New York City
            time, on the redemption date, the Debenture Issuer will deposit
            with one or more paying agents an amount of money sufficient to
            redeem on the redemption date all the Securities so called for
            redemption at the Redemption Price. If a Redemption/Distribution
            Notice shall have been given and funds deposited as required, if
            applicable, then immediately prior to the close of business on
            the date of such deposit, or on the redemption date, as
            applicable, Distributions will cease to accrue on the Securities
            so called for redemption and all rights of Holders of such
            Securities so called for redemption will cease, except the right
            of the Holders of such Securities to receive the Redemption
            Price, but without interest on such Redemption Price. 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
            Trust at the Redemption Price. Neither the Regular Trustees nor
            the Trust shall be required to register or cause to be registered
            the transfer of any Securities that have been so called for
            redemption. If any date fixed for redemption of Securities is not
            a Business Day, then payment of the Redemption Price payable on
            such date will be made on the next succeeding day that is a
            Business Day (and without any interest or other payment in
            respect of any such delay) except that, if such Business Day
            falls in the next calendar year, such payment will be made on the
            immediately preceding Business Day, in each case with the same
            force and effect as if made on such date fixed for redemption. If
            payment of the Redemption Price in respect of any Securities is
            improperly withheld or refused and not paid either by the
            Institutional Trustee or by the Sponsor as guarantor pursuant to
            the relevant Securities Guarantee, Distributions on such
            Securities will continue to accumulate from the original
            redemption date to the actual date of payment, in which case the
            actual payment date will be considered the date fixed for
            redemption for purposes of calculating the Redemption Price.

     (iv)   The Trust shall not be required to (i) issue, or register the
            transfer or exchange of, any Securities during a period beginning at
            the opening of business 15 days before the mailing of a notice of
            redemption of Securities and ending at the close of business on the
            day of the mailing of the relevant notice of redemption and (ii)
            register the transfer or exchange of any Securities so selected for
            redemption, in

                                      A-7

<PAGE>

            whole or in part, except the unredeemed portion of any Securities
            being redeemed in part.

     (v)    Subject to the foregoing and applicable law (including, without
            limitation, United States federal securities laws and regulations of
            the Federal Reserve Board), the Sponsor or any of its subsidiaries
            may at any time and from time to time purchase outstanding Preferred
            Securities by tender, in the open market or by private agreement.

     5.     Voting Rights - Preferred Securities.

     (a)    Except as provided under Sections 5(b), 6(b) and 7 and as otherwise
required by law and the Declaration, the Holders of the Preferred Securities
will have no voting rights.

     (b)    Subject to the requirements set forth in the immediately following
paragraph, the Holders of a Majority in Liquidation Amount of the Preferred
Securities, voting separately as a class, have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or to direct the exercise of any trust or power conferred
upon the Institutional Trustee under the Declaration, including the right to
direct the Institutional Trustee, as holder of the Debentures, to (i) exercise
the remedies available to it under the Indenture as holder of the Debentures,
(ii) waive any past Event of Default and its consequences that is waivable under
the Indenture, (iii) exercise any right to rescind or annul a declaration that
the principal of all the Debentures shall be due and payable or (iv) consent to
any amendment, modification or termination of the Indenture or the Debentures
where such consent shall be required; provided, however, that, where a consent
or action under the Indenture would require the consent or act of a Super
Majority, only the Holders of at least such Super Majority in aggregate
liquidation amount of the Preferred Securities may direct the Institutional
Trustee to give such consent or take such action; and provided further, that
where a consent or action under the Indenture is only effective against each
holder of Debentures who has consented thereto, such consent or action will only
be effective against a Holder of Preferred Securities who directs the
Institutional Trustee to give such consent or take such action. The
Institutional Trustee shall not revoke any action previously authorized or
approved by a vote of the Holders of the Preferred Securities. If the
Institutional Trustee fails to enforce its rights under the Debentures after a
holder of record of Preferred Securities has made a written request, such Holder
of Preferred Securities may, to the fullest extent permitted by law, institute a
legal proceeding directly against the Debenture Issuer to enforce the
Institutional Trustee's rights under the Debentures without first instituting
any legal proceeding against the Institutional Trustee or any other Person.

     Notwithstanding the foregoing, if an Event of Default has occurred and
is continuing and such event is attributable to the failure of the Debenture
Issuer to pay interest on or principal of the Debentures on the date such
interest or principal is otherwise payable (or in the case of redemption, on the
redemption date), then a Holder of Preferred Securities may institute a Direct
Action for enforcement of payment to such Holder of the principal of or interest
on the Debentures having an aggregate principal amount equal to the aggregate
liquidation amount of the Preferred Securities of such Holder on or after the
respective due date specified in the

                                      A-8

<PAGE>

Debentures. Notwithstanding any payments made to such Holder of Preferred
Securities by the Debenture Issuer in connection with a Direct Action, the
Debenture Issuer shall remain obligated to pay the principal of or interest on
the Debentures held by the Trust or the Institutional Trustee of the Trust, and
the Holders of the Common Securities shall be subrogated to the rights of the
Holder of such Preferred Securities with respect to payments on the Preferred
Securities under the Declaration to the extent of any payments made by the
Debenture Issuer to such Holder in any Direct Action provided, however, that the
Holder has received full payment in respect of such Preferred Securities. Except
as provided in this paragraph and Section 3.8(e) of the Declaration, the Holders
of Preferred Securities will not be able to exercise directly any other remedy
available to the holders of the Debentures.

     Except with respect to directing the time, method and place of conducting
a proceeding for a remedy, the Institutional Trustee shall not take any of the
actions described in clauses (i) through (iv) above unless the Institutional
Trustee has obtained an opinion of a nationally recognized tax counsel
experienced in such matters to the effect that, taking such action into account,
the Trust will continue to be classified as a grantor trust for United States
federal income tax purposes.

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

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

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

     6.  Voting Rights - Common Securities.

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

     (b) Unless an Event of Default shall have occurred and be continuing, the
Holders of the Common Securities are entitled, in accordance with Article V of
the Declaration, to vote to appoint, remove or replace any Trustee or to
increase or decrease the number of Trustees. If an Event of Default has occurred
and is continuing, the Institutional Trustee and the Delaware Trustee may be
removed at such time only by the Holders of a Majority in Liquidation Amount

                                      A-9

<PAGE>

of the outstanding Preferred Securities. In no event will the Holders of the
Preferred Securities have the right to vote to appoint, remove or replace the
Regular Trustees, which voting rights are vested exclusively in the Sponsor as
the Holder of the Common Securities. No resignation or removal of a Trustee and
no appointment of a successor trustee shall be effective until the acceptance of
appointment of a successor trustee in accordance with the provisions of the
Declaration.

     During an Event of Default, no vote or consent of the Holders of the
Common Securities will be required or obtained by the Regular Trustees with
respect to that Event of Default, until that Event of Default has been cured or
waived. During that Event of Default, the Institutional Trustee will act on
behalf of the Holders of the Preferred Securities without regard to any vote or
consent by the Holders of the Common Securities.

     (c) Subject to Section 2.6 of the Declaration and only after the Event of
Default with respect to the Preferred Securities has been cured, waived, or
otherwise eliminated and subject to the requirements of the second to last
sentence of this paragraph, the Holders of a Majority in Liquidation Amount of
the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,
method, place of conducting any proceeding for any remedy available to the Debt
Trustee, or exercising any trust or power conferred on the Debt Trustee with
respect to the Debentures, (ii) waive any past default and its consequences that
is waivable under Section 5.07 of the Indenture or (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall be
due and payable; provided that, where a consent or action under the Indenture
would require the consent or act of a Super Majority of Holders of Debentures
affected thereby the Institutional Trustee may only give such consent or take
such action at the written direction of the Holders of at least the proportion
in liquidation amount of the Common Securities which the relevant Super Majority
represents of the aggregate principal amount of the Debentures outstanding; and
provided further, that where a consent or action under the Indenture would
require the consent or action of each holder of Debentures, each Holder of
Preferred Securities must direct the Institutional Trustee to give such consent
or take such action. Pursuant to this Section 6(c), the Institutional Trustee
shall not revoke any action previously authorized or approved by a vote of the
Holders of the Preferred Securities. Except with respect to directing the time,
method and place of conducting a proceeding for a remedy, the Institutional
Trustee shall not take any action in accordance with the directions of the
Holders of the Common Securities under this paragraph unless the Institutional
Trustee has obtained an opinion of a nationally recognized tax counsel
experienced in such matters to the effect that, as a result of such action, the
Trust will not fail to be classified as a grantor trust for United States
federal income tax purposes. If the Institutional Trustee fails to enforce its
rights under the Declaration, any Holder of Common Securities may, to the
fullest extent permitted by law, institute a legal proceeding directly against
any Person to enforce the Institutional Trustee's rights under the Declaration,
without first instituting a legal proceeding against the Institutional Trustee
or any other Person.

                                      A-10

<PAGE>

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

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

     7.  Amendments to Declaration and Indenture.

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

     (b) In the event the consent of the Institutional Trustee, as the holder
of the Debentures, is required under the Indenture with respect to any
amendment, modification or termination on the Indenture, the Institutional
Trustee shall request the written direction of the Holders of the Securities
with respect to such amendment, modification or termination and shall vote with
respect to such amendment, modification or termination as directed by the
Holders of a Majority in Liquidation Amount of the Securities voting together as
a single class; provided, however, that where a consent under the Indenture
would require the consent of a Super Majority, the Institutional Trustee may
only give such consent at the direction of the Holders of at least the
proportion in liquidation amount of the Securities which the relevant Super
Majority represents of the aggregate principal amount of the Debentures
outstanding; and provided, further, that where a consent or action under the
Indenture is only effective against each holder of Debentures who has consented
thereto, such consent or action will only be effective against a Holder of
Preferred Securities who directs the Institutional Trustee to give such consent
or take such action; and provided, further, that the Institutional Trustee shall
not take any action in accordance with the directions of the Holders of the
Securities under this Section 7(b) unless the Institutional Trustee has obtained
an opinion of a nationally recognized tax counsel experienced

                                      A-11

<PAGE>

in such matters to the effect that for the purposes of United States federal
income tax the Trust will be classified as a grantor trust taking such action
into account.

     (c) Notwithstanding the foregoing, no amendment or modification may be
made to the Declaration if such amendment or modification would (i) cause the
Trust not to be classified for purposes of United States federal income taxation
as a grantor trust, (ii) reduce or otherwise adversely affect the powers of the
Institutional Trustee or (iii) cause the Trust to be deemed an "investment
company" which is required to be registered under the Investment Company Act.

     8.  Pro Rata.

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

     9.  Ranking.

     The Preferred Securities rank pari passu, and payment thereon shall be
made Pro Rata, with the Common Securities except that, where an Event of Default
occurs and is continuing, the rights of Holders of the Common Securities to
receive payment of periodic Distributions and payments upon liquidation,
redemption and otherwise will be subordinated to the rights of the Holders of
the Preferred Securities.

     10. Listing.

     The Regular Trustees shall use their best efforts to cause the Preferred
Securities to be listed for quotation on the NYSE.

     11. Acceptance of Securities Guarantee and Indenture.

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

     12. No Preemptive Rights.

                                      A-12

<PAGE>

     The Holders shall have no preemptive or similar rights to subscribe for
any additional securities of the Trust or otherwise.

     13. Miscellaneous.

     These terms constitute a part of the Declaration.

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

                                      A-13

<PAGE>

                                   EXHIBIT A-1
                     FORM OF PREFERRED SECURITY CERTIFICATE

IF THE PREFERRED SECURITY IS A GLOBAL CERTIFICATE, INSERT-THIS PREFERRED
SECURITY IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE DECLARATION OF TRUST
AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (THE "DEPOSITORY")
OR A NOMINEE OF THE DEPOSITORY. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR
PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
DECLARATION OF TRUST AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A
TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF
THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THE PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL BECAUSE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

Certificate Number    [ ]                 Number of Preferred Securities     [ ]
CUSIP No.  [ ]
                   Certificate Evidencing Preferred Securities
                                       of
                           COLONIAL CAPITAL TRUST III
                            __% Preferred Securities
                 (liquidation amount $25 per Preferred Security)

     COLONIAL CAPITAL TRUST III, a statutory business trust created under the
laws of the State of Delaware (the "Trust"), hereby certifies that
______________ (the "Holder") is the registered holder of _______ preferred
securities of the Trust representing undivided beneficial interests in the
assets of the Trust, designated the __% Preferred Securities (liquidation amount
$25 per Preferred Security) (the "Preferred Securities"). The Preferred
Securities are transferable on the books and records of the Trust, in person or
by a duly authorized attorney, upon surrender of this certificate duly endorsed
and in proper form for transfer. The designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Preferred
Securities represented hereby are issued and shall in all respects be subject to
the provisions of the

                                      A1-1

<PAGE>

Amended and Restated Declaration of Trust of the Trust, dated as of ____ __,
2002, as the same may be amended from time to time (the "Declaration of Trust"),
including the designation of the terms of the Preferred Securities as set forth
in Annex I to the Declaration of Trust. Capitalized terms used herein but not
defined shall have the meaning given them in the Declaration of Trust. The
Holder is entitled to the benefits of the Preferred Securities Guarantee to the
extent provided therein. The Sponsor will provide a copy of the Declaration of
Trust, the Preferred Securities Guarantee and the Indenture to a Holder without
charge upon written request to the Trust at its principal place of business.

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

     In addition, the Holder is deemed to have (i) agreed to the terms of the
Indenture and the Debentures, including that the Debentures are subordinate and
junior in right of payment to all present and future Senior Indebtedness (as
defined in the Indenture) as and to the extent provided in the Indenture and
(ii) agreed to the terms of the Preferred Securities Guarantee, including that
the Preferred Securities Guarantee is subordinate and junior in right of payment
to all other liabilities of the Sponsor, including the Debentures, except those
made pari passu or subordinate by their terms, and pari passu with the most
senior preferred or preference stock now or hereafter issued by the Sponsor and
with any guarantee now or hereafter entered into by the Sponsor in respect of
any preferred or preference stock of any Affiliate of the Sponsor. In addition,
each Holder hereof by his or her acceptance hereof, hereby agrees to treat the
Debentures as indebtedness for all United States federal income tax purposes.

     THIS SECURITY IS NOT A SAVINGS OR DEPOSIT ACCOUNT OR OTHER OBLIGATION OF A
BANK AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY.

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

     Unless the Institutional Trustee's Certificate of Authentication hereon
has been properly executed, these Preferred Securities shall not be entitled to
any benefit under the Declaration or be valid or obligatory for any purpose.

                                      A1-2

<PAGE>

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

                                        COLONIAL CAPITAL TRUST III

                                        By:  ___________________________________
                                        Name:
                                        Title:  Regular Trustee

                                        By:  ___________________________________
                                        Name:
                                        Title:   Regular Trustee

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Preferred Securities referred to in the
within-mentioned Declaration of Trust.

Dated _____________, ________           The Bank of New York, as Institutional
                                        Trustee

                                        By:  ___________________________________
                                             Authorized Signatory

                                      A1-3

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Preferred Security will be fixed at a rate
per annum of __% (the "Coupon Rate") of the liquidation amount of $25 per
Preferred Security, such rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Distributions in arrears
beyond the applicable Distribution Payment Date (as defined below) will bear
interest thereon compounded quarterly at the Coupon Rate ("Compound Interest")
(to the extent permitted by applicable law). The term "Distributions," as used
herein, includes such cash distributions and any such interest (including
Additional Interest and Compound Interest) payable unless otherwise stated. A
Distribution will be made by the Institutional Trustee only to the extent that
payments are made in respect of the Debentures held by the Institutional Trustee
and to the extent the Institutional Trustee has funds available in the
Institutional Trustee Account. The amount of Distributions payable for any
period will be computed for any full quarterly Distribution period on the basis
of a 360-day year of twelve 30-day months and for any period shorter than a full
quarterly Distribution period on the basis of the actual number of days elapsed
in a calendar month (but not to exceed 30 days in any month).

     Except as otherwise described below, Distributions on the Preferred
Securities will be cumulative, will accrue from _____ __, 2002 and will be
payable quarterly in arrears on _______, _______, _______ and _______ of each
year, commencing on _______, 2002 (each, a "Distribution Payment Date"), to
Holders of record on the relevant record dates, which will be, as long as the
Preferred Securities remain in book-entry form, the close of business on the
Business Day prior to the relevant Distribution Payment Date and, in the event
the Preferred Securities are not in book-entry form, the fifteenth calendar day
prior to the relevant Distribution Payment Date. Such Distribution Payment Dates
shall correspond to the interest payment dates on the Debentures. The Debenture
Issuer has the right under the Indenture to defer payments of interest by
extending the interest payment period from time to time on the Debentures for a
period not exceeding 20 consecutive quarterly periods (each, an "Extension
Period"), provided that no Extension Period shall last beyond the maturity or
earlier prepayment of the Debentures and, as a consequence of such deferral,
quarterly Distributions will also be deferred. Despite such deferral, quarterly
Distributions will continue to accrue with interest thereon (to the extent
permitted by applicable law) at the Coupon Rate compounded quarterly during any
such Extension Period. Prior to the termination of any such Extension Period,
the Debenture Issuer may further extend such Extension Period; provided that
such Extension Period together with all such previous and further extensions
thereof may not exceed 20 consecutive quarterly periods or extend beyond the
maturity or earlier prepayment of the Debentures. Payments of Distributions will
be payable to Holders as they appear on the books and records of the Trust on
the first record date after the end of the Extension Period. Upon the
termination of any Extension Period and the payment of all amounts then due, the
Debenture Issuer may commence a new Extension Period, subject to the above
requirements.

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

                                      A1-4

<PAGE>

                                   ASSIGNMENT

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

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

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

--------------------------------------------------------------------------------
        (Insert assignee's social security or tax identification number)

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

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

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

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

and irrevocably appoints

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

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

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

Date:  ____________________

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

(Signature(s) must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Trustee, which requirements include membership or
participation in STAMP or such other "signature guaranty program" as may be
determined by the Trustee in addition to or in substitution for STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.)

                                      A1-5

<PAGE>

                                   EXHIBIT A-2
                       FORM OF COMMON SECURITY CERTIFICATE

THIS CERTIFICATE IS NOT TRANSFERABLE, SUBJECT TO THE TERMS OF THE DECLARATION OF
TRUST (AS DEFINED HEREIN)

Certificate Number    [ ]                 Number of Common Securities        [ ]

                    Certificate Evidencing Common Securities
                                       of
                           COLONIAL CAPITAL TRUST III

                              __% Common Securities
                  (liquidation amount $25 per Common Security)

     COLONIAL CAPITAL TRUST III, a statutory business trust created under the
laws of the State of Delaware (the "Trust"), hereby certifies that The Colonial
BancGroup, Inc. (the "Holder") is the registered holder of _______ common
securities of the Trust representing undivided beneficial interests in the
assets of the Trust, designated the __% Common Securities (liquidation amount
$25 per Common Security) (the "Common Securities"). The Common Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for transfer. The designation, rights, privileges, restrictions,
preferences and other terms and provisions of the Common Securities represented
hereby are issued and shall in all respects be subject to the provisions of the
Amended and Restated Declaration of Trust of the Trust, dated as of _____ __,
2002, as the same may be amended from time to time (the "Declaration of Trust"),
including the designation of the terms of the Common Securities as set forth in
Annex I to the Declaration of Trust. Capitalized terms used herein but not
defined shall have the meaning given them in the Declaration of Trust. The
Holder is entitled to the benefits of the Common Securities Guarantee to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Common Securities Guarantee and the Indenture to a Holder without charge upon
written request to the Sponsor at its principal place of business.

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

     In addition, the Holder is deemed to have (i) agreed to the terms of the
Indenture and the Debentures, including that the Debentures are subordinate and
junior in right of payment to all present and future Senior Indebtedness (as
defined in the Indenture) as and to the extent provided in the Indenture and
(ii) agreed to the terms of the Common Securities Guarantee, including that the
Common Securities Guarantee is subordinate and junior in right of payment to all
other liabilities of the Sponsor, including the Debentures, except those made
pari passu or subordinate by their terms, and pari passu with the most senior
preferred or preference stock now or hereafter issued by the Sponsor and with
any guarantee now or hereafter entered into by the Sponsor in respect of any
preferred or preference stock of any Affiliate of the Sponsor. In addition, each
Holder hereof, by his or her acceptance hereof, hereby agrees to treat the
Debentures as indebtedness for all United States federal income tax purposes.

                                      A2-1

<PAGE>

     THIS SECURITY IS NOT A SAVINGS OR DEPOSIT ACCOUNT OR OTHER OBLIGATION OF A
BANK AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY.

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

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

                                        COLONIAL CAPITAL TRUST III

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

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

                                      A2-2

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be fixed at a rate per
annum of __% (the "Coupon Rate") of the liquidation amount of $25 per Common
Security, such rate being the rate of interest payable on the Debentures to be
held by the Institutional Trustee. Distributions in arrears beyond the
applicable Distribution Payment Date (as defined below) will bear interest
thereon compounded quarterly at the Coupon Rate ("Compound Interest") (to the
extent permitted by applicable law). The term "Distributions," as used herein,
includes such cash distributions and any such interest (including Additional
Interest and Compound Interest) payable unless otherwise stated. A Distribution
will be made by the Institutional Trustee only to the extent that payments are
made in respect of the Debentures held by the Institutional Trustee and to the
extent the Institutional Trustee has funds available in the Institutional
Trustee Account. The amount of Distributions payable for any period will be
computed for any full quarterly Distribution period on the basis of a 360-day
year of twelve 30-day months and for any period shorter than a full quarterly
Distribution period on the basis of the actual number of days elapsed in a
calendar month (but not to exceed 30 days in any month).

     Except as otherwise described below, distributions on the Common
Securities will be cumulative, will accrue from _______, 2002 and will be
payable quarterly in arrears, on _______, _______, _______ and _______ of each
year, commencing on _______, 2002 (each a "Distribution Payment Date"), to
Holders of record on the relevant record dates, which will be, as long as the
Preferred Securities remain in book-entry form, the close of business on the
Business Day prior to the relevant Distribution Payment Date and, in the event
the Preferred Securities are not in book-entry form, the fifteenth calendar day
prior to the relevant Distribution Payment Date. Such Distribution Payment Dates
shall correspond to the interest payment dates on the Debentures. The Debenture
Issuer has the right under the Indenture to defer payments of interest by
extending the interest payment period from time to time on the Debentures for a
period not exceeding 20 consecutive quarterly periods (each, an "Extension
Period"), provided that no Extension Period shall last beyond the maturity or
earlier prepayment of the Debentures and, as a consequence of such deferral,
quarterly Distributions will also be deferred. Despite such deferral, quarterly
Distributions will continue to accrue with interest thereon (to the extent
permitted by applicable law) at the Coupon Rate compounded quarterly during any
such Extension Period. Prior to the termination of any such Extension Period,
the Debenture Issuer may further extend such Extension Period; provided that
such Extension Period together with all such previous and further extensions
thereof may not exceed 20 consecutive quarterly periods or extend beyond the
maturity or earlier prepayment of the Debentures. Payments of Distributions will
be payable to Holders as they appear on the books and records of the Trust on
the first record date after the end of the Extension Period. Upon the
termination of any Extension Period and the payment of all amounts then due, the
Debenture Issuer may commence a new Extension Period, subject to the above
requirements.

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

                                      A2-3

<PAGE>

                                   ASSIGNMENT

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

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

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

--------------------------------------------------------------------------------
        (Insert assignee's social security or tax identification number)

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

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

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

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

and irrevocably appoints

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

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

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

Date:  ____________________

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

(Signature(s) must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Trustee, which requirements include membership or
participation in STAMP or such other "signature guaranty program" as may be
determined by the Trustee in addition to or in substitution for STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.)

                                      A2-4

<PAGE>

                                    EXHIBIT B

                               PURCHASE AGREEMENT

                                See Exhibit 1.

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