Document:

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                                                                     EXHIBIT 4.1

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                                  ABC BANCORP

                                      AND

                           WILMINGTON TRUST COMPANY,
                                  AS TRUSTEE

                                   INDENTURE

                     __% SUBORDINATED DEBENTURES DUE 2031

                        Dated as of ________ ____, 2001

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                               TABLE OF CONTENTS

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ARTICLE I.   DEFINITION.
   Section 1.1.  Definitions of Terms...............................................................     2

ARTICLE II.  ISSUE, DESCRIPTION, TERMS, CONDITIONS, REGISTRATION AND EXCHANGE OF THE DEBENTURES.
   Section 2.1.  Designation and Principal Amount...................................................    10
   Section 2.2.  Maturity...........................................................................    10
   Section 2.3.  Form and Payment...................................................................    11
   Section 2.4.  Interest...........................................................................    11
   Section 2.5.  Execution and Authentication.......................................................    12
   Section 2.6.  Registration of Transfer and Exchange..............................................    13
   Section 2.7.  Temporary Debentures...............................................................    14
   Section 2.8.  Mutilated, Destroyed, Lost or Stolen Debentures....................................    14
   Section 2.9.  Cancellation.......................................................................    15
   Section 2.10. Benefit of Indenture...............................................................    15
   Section 2.11. Authentication Agent...............................................................    16

ARTICLE III.  REDEMPTION OF DEBENTURES.
   Section 3.1.  Redemption.........................................................................    16
   Section 3.2.  Special Event Redemption...........................................................    16
   Section 3.3.  Optional Redemption by the Company.................................................    17
   Section 3.4.  Notice of Redemption...............................................................    18
   Section 3.5.  Payment upon Redemption............................................................    19
   Section 3.6.  No Sinking Fund....................................................................    19

ARTICLE IV.  EXTENSION OF INTEREST PAYMENT PERIOD.
   Section 4.1.  Extension of Interest Payment Period...............................................    19
   Section 4.2.  Notice of Extension................................................................    20

ARTICLE V.  PARTICULAR COVENANTS OF THE COMPANY.
   Section 5.1.  Payment of Principal and Interest..................................................    21
   Section 5.2.  Maintenance of Agency..............................................................    21
   Section 5.3.  Paying Agents......................................................................    21
   Section 5.4.  Appointment to Fill Vacancy in Office of the Trustee...............................    22
   Section 5.5.  Compliance with Consolidation Provisions...........................................    23
   Section 5.6.  Limitation on Transactions.........................................................    23
   Section 5.7.  Covenants as to the Trust..........................................................    23
   Section 5.8.  Covenants as to Purchases..........................................................    24
   Section 5.9.  Waiver of Usury, Stay or Extension Laws............................................    24
   Section 5.10. Limitation on Additional Junior Indebtedness.......................................    24
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   Section 5.11. No Intent to Commence Extension Period.............................................    26

ARTICLE VI.   THE DEBENTUREHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE.
   Section 6.1.  The Company to Furnish the Trustee Names and Addresses of the Debentureholders.....    26
   Section 6.2.  Preservation of Information Communications with the Debentureholders...............    26
   Section 6.3.  Reports by the Company.............................................................    27
   Section 6.4.  Reports by the Trustee.............................................................    27

ARTICLE VII.  REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS ON EVENT OF DEFAULT.
   Section 7.1.  Events of Default..................................................................    28
   Section 7.2.  Collection of Indebtedness and Suits for Enforcement by the Trustee................    29
   Section 7.3.  Application of Moneys Collected....................................................    31
   Section 7.4.  Limitation on Suits................................................................    31
   Section 7.5.  Rights and Remedies Cumulative; Delay or Omission not Waiver.......................    32
   Section 7.6.  Control by the Debentureholders....................................................    32
   Section 7.7.  Undertaking to Pay Costs...........................................................    33
   Section 7.8.  Direct Action; Right of Set-Off....................................................    33

ARTICLE VIII.  FORM OF THE DEBENTURE AND ORIGINAL ISSUE.
   Section 8.1.  Form of Debenture..................................................................    34
   Section 8.2.  Original Issue of the Debentures...................................................    34

ARTICLE IX.  CONCERNING THE TRUSTEE.
   Section 9.1.  Certain Duties and Responsibilities of the Trustee.................................    34
   Section 9.2.  Notice of Defaults.................................................................    35
   Section 9.3.  Certain Rights of the Trustee......................................................    35
   Section 9.4.  The Trustee not Responsible for Recitals, Etc......................................    37
   Section 9.5.  May Hold the Debentures............................................................    37
   Section 9.6.  Moneys Held in Trust...............................................................    37
   Section 9.7.  Compensation and Reimbursement.....................................................    37
   Section 9.8.  Reliance on Officers' Certificate..................................................    38
   Section 9.9.  Disqualification; Conflicting Interests............................................    38
   Section 9.10. Corporate Trustee Required; Eligibility............................................    38
   Section 9.11. Resignation and Removal; Appointment of Successor..................................    39
   Section 9.12. Acceptance of Appointment by Successor.............................................    40
   Section 9.13. Merger, Conversion, Consolidation or Succession to Business........................    41
   Section 9.14. Preferential Collection of Claims against the Company..............................    41

ARTICLE X.  CONCERNING THE DEBENTUREHOLDERS.
   Section 10.1. Evidence of Action by the Holders..................................................    41
   Section 10.2. Proof of Execution by the Debentureholders.........................................    42
   Section 10.3. Who may be Deemed Owners...........................................................    42
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   Section 10.4. Certain Debentures Owned by Company Disregarded....................................    42
   Section 10.5. Actions Binding on the Future Debentureholders.....................................    43

ARTICLE XI.   SUPPLEMENTAL INDENTURES.
   Section 11.1. Supplemental Indentures without the Consent of the Debentureholders................    43
   Section 11.2. Supplemental Indentures with Consent of the Debentureholders.......................    44
   Section 11.3. Effect of Supplemental Indentures..................................................    44
   Section 11.4. The Debentures Affected by Supplemental Indentures.................................    45

ARTICLE XII.  SUCCESSOR CORPORATION.
   Section 12.1. The Company may Consolidate, Etc...................................................    45
   Section 12.2. Successor Corporation Substituted..................................................    46
   Section 12.3. Evidence of Consolidation, Etc. to Trustee.........................................    46

ARTICLE XIII.  SATISFACTION AND DISCHARGE.
   Section 13.1. Satisfaction and Discharge of Indenture............................................    47
   Section 13.2. Discharge of Obligations...........................................................    47
   Section 13.3. Deposited Moneys to be Held in Trust...............................................    47
   Section 13.4. Payment of Monies Held by Paying Agents............................................    48
   Section 13.5. Repayment to the Company...........................................................    48

ARTICLE XIV.  IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS.
   Section 14.1. No Recourse........................................................................    48

ARTICLE XV.  MISCELLANEOUS PROVISIONS.
   Section 15.1. Effect on Successors and Assigns...................................................    49
   Section 15.2. Actions by Successor...............................................................    49
   Section 15.3. Surrender of the Company Powers....................................................    49
   Section 15.4. Notices............................................................................    49
   Section 15.5. Governing Law......................................................................    49
   Section 15.6. Treatment of the Debentures as Debt................................................    49
   Section 15.7. Compliance Certificates and Opinions...............................................    49
   Section 15.8. Payments on Business Days..........................................................    50
   Section 15.9. Conflict with Trust Indenture Act..................................................    50
   Section 15.10. Counterparts......................................................................    50
   Section 15.11. Separability......................................................................    50
   Section 15.12. Assignment........................................................................    50
   Section 15.13. Acknowledgment of Rights; Right of Setoff.........................................    51
   Section 15.14. Interpretation....................................................................    51

ARTICLE XVI.  SUBORDINATION OF THE DEBENTURES.
   Section 16.1. Agreement to Subordinate...........................................................    52
   Section 16.2. Default on Senior Indebtedness.....................................................    52
   Section 16.3. Liquidation; Dissolution; Bankruptcy...............................................    52
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   Section 16.4. Subrogation........................................................................    53
   Section 16.5. The Trustee to Effectuate Subordination............................................    54
   Section 16.6. Notice by the Company..............................................................    55
   Section 16.7. Rights of the Trustee; Holders of the Senior Indebtedness..........................    55
   Section 16.8. Subordination may not be Impaired..................................................    56
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                             CROSS-REFERENCE TABLE

Section of
Trust Indenture Act                                                   Section of
of 1939, as amended                                                    Indenture
-------------------                                                    ---------

310(a)..........................................................            9.10
310(b)..........................................................       9.9, 9.11
310(c)..........................................................  Not Applicable
311(a)..........................................................            9.14
311(b)..........................................................            9.14
311(c)..........................................................  Not Applicable
312(a)..........................................................     6.1, 6.2(a)
312(b)..........................................................          6.2(c)
312(c)..........................................................          6.2(c)
313(a)..........................................................          6.4(a)
313(b)..........................................................          6.4(b)
313(c)..........................................................  6.4(a), 6.4(b)
313(d)..........................................................          6.4(c)
314(a)..........................................................          6.3(a)
314(b)..........................................................  Not Applicable
314(c)..........................................................            15.7
314(d)..........................................................  Not Applicable
314(e)..........................................................            15.7
314(f)..........................................................  Not Applicable
315(a)..........................................................     9.1(a), 9.3
315(b)..........................................................             9.2
315(c)..........................................................          9.1(a)
315(d)..........................................................          9.1(b)
315(e)..........................................................             7.7
316(a)..........................................................        1.1, 7.6
316(b)..........................................................          7.4(b)
316(c)..........................................................         10.1(b)
317(a)..........................................................             7.2
317(b)..........................................................             5.3
318(a)..........................................................            15.9

Note: This reconciliation and tie sheet shall not, for any purpose, be deemed to
be a part of the Indenture.

                                       v
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                                   INDENTURE

     INDENTURE, dated as of ________ _______, 2001, between ABC BANCORP, a
Georgia corporation (the "Company"), and WILMINGTON TRUST COMPANY, a banking
corporation duly organized and existing under the laws of the State of Delaware,
as trustee (the "Trustee" and, in its separate capacity and not in its capacity
as Trustee, the "Bank").

                                   RECITALS:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of
securities to be known as its __% Subordinated Debentures due 2031 (hereinafter
referred to as the "Debentures"), the form and substance of such Debentures and
the terms, provisions and conditions thereof to be set forth as provided in this
Indenture;

     WHEREAS, ABC Bancorp Capital Trust I, a Delaware statutory business trust
(the "Trust"), has offered to the public $30,000,000 aggregate liquidation
amount of its Preferred Securities (as defined herein) ($30,450,000 if the
Underwriters exercise their Option (as defined herein)) and proposes to invest
the proceeds from such offering, together with the proceeds of the issuance and
sale by the Trust to the Company of $927,850 aggregate liquidation amount of its
Common Securities (as defined herein) ($1,067,030 if the Underwriters exercise
their Option) in $30,927,850 aggregate principal amount of the Debentures
($35,567,030 if the Underwriters exercise their Option);

     WHEREAS, the Company has requested that the Trustee execute and deliver
this Indenture;

     WHEREAS, all requirements necessary to make this Indenture a valid
instrument in accordance with its terms, and to make the Debentures, when
executed by the Company and authenticated and delivered by the Trustee, the
valid obligations of the Company, have been performed, and the execution and
delivery of this Indenture have been duly authorized in all respects;

     WHEREAS, to provide the terms and conditions upon which the Debentures are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of
the Company, in accordance with its terms, have been done;

     NOW, THEREFORE, in consideration of the premises and the purchase of the
Debentures by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of the Debentures:
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                                   ARTICLE I.
                                  DEFINITIONS

     Section 1.1. Definitions of Terms. The terms defined in this Section 1.1
                  --------------------
(except as in this Indenture otherwise expressly provided or unless the context
otherwise requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this Section
1.1.  All other terms used in this Indenture that are defined in the Trust
Indenture Act, or that are by reference in the Trust Indenture Act defined in
the Securities Act (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meanings assigned to such terms in
the Trust Indenture Act and in the Securities Act as in force at the date of the
execution of this instrument. All accounting terms used herein and not expressly
defined shall have the meanings assigned to such terms in accordance with GAAP.

     "Accelerated Maturity Date" means if the Company elects to accelerate the
Maturity Date in accordance with Section 2.2(b), the date selected by the
Company which is prior to the Scheduled Maturity Date, but is after September
30, 2006.

     "Additional Junior Indebtedness" means, without duplication, (A) any
indebtedness, liabilities or obligations of the Company, or any Subsidiary of
the Company, under debt securities (or guarantees in respect of debt securities)
initially issued to any trust, or a trustee of a trust, partnership or other
entity affiliated with the Company that is, directly or indirectly, a finance
subsidiary (as such term is defined in Rule 3a-5) under the Investment Company
Act (or any successor Rule applicable thereto)) or other financing vehicle of
the Company or any Subsidiary of the Company in connection with the issuance by
that entity of preferred securities or other securities that are intended to
qualify for Tier 1 capital treatment (or the then equivalent thereof) for
purposes of the capital adequacy guidelines of the Federal Reserve, as then in
effect and applicable to the Company, other than the Debentures; provided,
however, that the inability of the Company to treat all or any portion of the
Additional Junior Indebtedness as Tier 1 capital shall not disqualify it as
Additional Junior Indebtedness if such inability results from the Company having
cumulative preferred stock, minority interests in consolidated subsidiaries, or
any other class of security or interest to which the Federal Reserve now accords
or may hereafter accord Tier 1 capital treatment (including the Debentures) in
excess of the amount which may qualify for treatment as Tier 1 capital under
applicable capital adequacy guidelines of the Federal Reserve and (B) any
indebtedness, liabilities or obligations of the Company, or any Subsidiary of
the Company, that is junior or otherwise subordinate in right of payment to
Senior Indebtedness of the Company and that has a maturity or is otherwise due
and payable by the Company on a date twelve (12) months or more after its date
of original issuance, other than the Debentures.

     "Additional Payments" shall have the meaning set forth in Section 2.4(c).

     "Additional Senior Obligations" means all indebtedness of the Company
whether incurred on or prior to the date of this Indenture or thereafter
incurred, for claims in respect of derivative products such as interest and
foreign exchange rate contracts, commodity contracts and similar arrangements;
provided, however, that Additional Senior Obligations does not

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include claims in respect of Senior Debt or Subordinated Debt or obligations
which, by their terms, are expressly stated to be not superior in right of
payment to the Debentures or to rank pari passu in right of payment with the
Debentures. For purposes of this definition, "claim" shall have the meaning
assigned thereto in Section 101(4) of the United States Bankruptcy Code of 1978,
as amended.

     "Administrative Trustees" shall have the meaning set forth in the Trust
Agreement.

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

     "Authenticating Agent" means an authenticating agent with respect to the
Debentures appointed by the Trustee pursuant to Section 2.11.

     "Bankruptcy Law" means Title 11, U.S. Code, or any similar federal or state
law for the relief of debtors.

     "Board of Directors" means the Board of Directors of the Company or any
duly authorized committee of such Board.

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

     "Business Day" means, with respect to the Debentures, any day other than a
Saturday or a Sunday or a day on which federal or state banking institutions in
the Borough of Manhattan, the City of New York, are authorized or required by
law, executive order or regulation to close, or a day on which the Corporate
Trust Office of the Trustee or the Property Trustee is closed for business.

     "Capital Treatment Event" means the receipt by the Company and the Trust of
an Opinion of Counsel, rendered by counsel experienced in such matters within a
reasonable period of time after the applicable occurrence, to the effect that,
as a result of any amendment to or change (including any announced prospective
change) in the laws (or any regulations thereunder) of the United States or any
political subdivision thereof or therein, or as a result of any official or
administrative pronouncement, action or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or,
which pronouncement, action or judicial decision is announced on or after the
date of issuance of the Preferred Securities under the Trust Agreement, there is
more than an insubstantial risk of impairment of the Company's ability to

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treat the aggregate Liquidation Amount (as defined in the Trust Agreement) of
the Preferred Securities (or any substantial portion thereof) as Tier 1 capital
(or the then equivalent thereof) for purposes of the capital adequacy guidelines
of the Federal Reserve, as then in effect and applicable to the Company;
provided, however, that the Trust or the Company shall have requested and
received such an Opinion of Counsel with regard to such matters within a
reasonable period of time after the Trust or the Company shall have become aware
of the occurrence or the possible occurrence of any of the events described
above.

     "Change in 1940 Act Law" shall have the meaning set forth in the definition
of "Investment Company Event."

     "Code" means the Internal Revenue Code of 1986, as amended.

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

     "Common Securities" means undivided beneficial interests in the assets of
the Trust which rank pari passu with the Preferred Securities; provided,
however, that upon the occurrence and during the continuation of an Event of
Default, the rights of holders of Common Securities to payment in respect of (a)
distributions, and (b) payments upon liquidation, redemption and otherwise, are
subordinated to the rights of holders of Preferred Securities.

     "Company" means ABC Bancorp, a corporation duly organized and existing
under the laws of the State of Georgia, and, subject to the provisions of
Article XII, shall also include its successors and assigns.

     "Compounded Interest" shall have the meaning set forth in Section 4.1.

     "Corporate Trust Office" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration.

     "Coupon Rate" shall have the meaning set forth in Section 2.4.

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

     "Debentures" shall have the meaning set forth in the Recitals hereto.

     "Debentureholder," "holder of Debentures," "registered holder," or other
similar term, means the Person or Persons in whose name or names a particular
Debenture shall be registered on the Debenture Register in accordance with the
terms of this Indenture.

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     "Debenture Register" shall have the meaning set forth in Section 2.6(b).

     "Debenture Registrar" shall have the meaning set forth in Section 2.6(b).

     "Debt" means with respect to any Person, whether recourse is to all or a
portion of the assets of such Person and whether or not contingent, (a) every
obligation of such Person for money borrowed; (b) every obligation of such
Person evidenced by bonds, debentures, notes or other similar instruments,
including obligations incurred in connection with the acquisition of property,
assets or businesses; (c) every reimbursement obligation of such Person with
respect to letters of credit, bankers' acceptances or similar facilities issued
for the account of such Person; (d) every obligation of such Person issued or
assumed as the deferred purchase price of property or services (but excluding
trade accounts payable or accrued liabilities arising in the ordinary course of
business); (e) every capital lease obligation of such Person; and (f) every
obligation of the type referred to in clauses (a) through (e) of another Person
and all dividends of another Person the payment of which, in either case, such
Person has guaranteed or is responsible or liable, directly or indirectly, as
obligor or otherwise.

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

     "Deferred Payments" shall have the meaning set forth in Section 4.1.

     "Direct Action" shall have the meaning set forth in Section 7.8.

     "Dissolution Event" means that as a result of the occurrence and
continuation of a Special Event, the Trust is to be dissolved in accordance with
the Trust Agreement and the Debentures held by the Property Trustee are to be
distributed to the holders of the Trust Securities issued by the Trust pro rata
in accordance with the Trust Agreement.

     "Distribution" shall have the meaning set forth in the Trust Agreement.

     "Event of Default" means, with respect to the Debentures, any event
specified in Section 7.1, which has continued for the period of time, if any,
and after the giving of the notice, if any, therein designated.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, as in
effect at the date of execution of this Indenture.

     "Extension Period" shall have the meaning set forth in Section 4.1.

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

     "GAAP" means such accounting principles as are generally accepted at the
time of any computation required hereunder.

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     "Governmental Obligations" means securities that are (a) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged; or (b) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any such Governmental
Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of
such depositary receipt; provided, however, that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

     "Guarantee" shall have the meaning set forth in the Trust Agreement.

     "Herein," "hereof," and "hereunder," and other words of similar import,
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into in accordance with the terms hereof.

     "Interest Payment Date" shall have the meaning set forth in Section 2.4(a).

     "Investment Company Act" means the Investment Company Act of 1940, as
amended, as in effect at the date of execution of this Indenture.

     "Investment Company Event" means the receipt by the Trust and the Company
of an Opinion of Counsel, rendered by counsel experienced in such matters within
a reasonable amount of time after the applicable occurrence, to the effect that,
as a result of the occurrence of a change in law or regulation or a change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in 1940 Act Law"),
the Trust is or shall be considered an "investment company" that is required to
be registered under the Investment Company Act, which Change in 1940 Act Law
becomes effective on or after the date of original issuance of the Preferred
Securities under the Trust Agreement; provided, however, that the Trust or the
Company shall have requested and received such an Opinion of Counsel with regard
to such matters within a reasonable period of time after the Trust or the
Company shall have become aware of the occurrence or the possible occurrence of
any such Change in 1940 Act Law.

     "Maturity Date" means the date on which the Debentures mature and on which
the principal shall be due and payable together with all accrued and unpaid
interest thereon including Compounded Interest and Additional Payments, if any.

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     "Ministerial Action" shall have the meaning set forth in Section 3.2.

     "Officers' Certificate" means a certificate signed by the Chairman and
Chief Executive Officer, President or an Executive Vice President and by the
Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary
of the Company that is delivered to the Trustee in accordance with the terms
hereof. Each such certificate shall include the statements provided for in
Section 15.7, if and to the extent required by the provisions thereof.

     "Opinion of Counsel" means an opinion in writing of independent, outside
legal counsel for the Company, that is delivered to the Trustee in accordance
with the terms hereof. Each such opinion shall include the statements provided
for in Section 15.7, if and to the extent required by the provisions thereof.

     "Outstanding," when used with reference to the Debentures, means, subject
to the provisions of Section 10.4, as of any particular time, all Debentures
theretofore authenticated and delivered by the Trustee under this Indenture,
except (a) Debentures theretofore canceled by the Trustee or any Paying Agent,
or delivered to the Trustee or any paying agent for cancellation or that have
previously been canceled; (b) Debentures or portions thereof for the payment or
redemption of which money or Governmental Obligations in the necessary amount
shall have been deposited in trust with the Trustee or with any Paying Agent
(other than the Company) or shall have been set aside and segregated in trust by
the Company (if the Company shall act as its own Paying Agent); provided,
however, that if such Debentures or portions of such Debentures are to be
redeemed prior to the maturity thereof, then notice of such redemption shall
have been given as provided in Article III, or provision satisfactory to the
Trustee shall have been made for giving such notice; and (c) Debentures in lieu
of or in substitution for which other Debentures shall have been authenticated
and delivered pursuant to the terms of Section 2.6; provided, however, that in
determining whether the holders of the requisite percentage of Debentures have
given any request, notice, consent or waiver hereunder, Debentures held by the
Company or any Affiliate of the Company shall not be included; and provided
further, however, that the Trustee shall be protected in relying upon any
request, notice, consent or waiver unless a Responsible Officer of the Trustee
shall have actual knowledge that the holder of such Debenture is the Company or
an Affiliate thereof.

     "Paying Agent" means any paying agent or co-paying agent appointed pursuant
to Section 5.3.

     "Person" means any individual, corporation, partnership, joint venture,
limited liability company, trust, joint-stock company, unincorporated
organization or government or any agency or political subdivision thereof.

     "Predecessor Debenture" means every previous Debenture evidencing all or a
portion of the same debt as that evidenced by such particular Debenture; and,
for the purposes of this definition, any Debenture authenticated and delivered
under Section 2.8 in lieu of a lost, destroyed or stolen Debenture shall be
deemed to evidence the same debt as the lost, destroyed or stolen Debenture.

                                       7
<PAGE>

     "Preferred Securities" means the __% Cumulative Trust Preferred Securities
representing undivided beneficial interests in the assets of the Trust which
rank pari passu with Common Securities issued by the Trust; provided, however,
that upon the occurrence and during the continuation of an Event of Default, the
rights of holders of Common Securities to payment in respect of (a)
distributions, and (b) payments upon liquidation, redemption and otherwise, are
subordinated to the rights of holders of Preferred Securities.

     "Preferred Securities Guarantee" means any guarantee that the Company may
enter into with the Trustee or other Persons that operates directly or
indirectly for the benefit of holders of Preferred Securities.

     "Property Trustee" has the meaning set forth in the Trust Agreement.

     "Redemption Price" shall have the meaning set forth in Section 3.2.

     "Responsible Officer" when used with respect to the Trustee means any
officer within the Corporate Trust Office of the Trustee with direct
responsibility for the administration of this Indenture, including any vice
president, any assistant vice president, any assistant secretary or any other
officer or assistant officer of the Trustee who customarily performs functions
similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

     "Scheduled Maturity Date" means September 30, 2031.

     "Securities Act" means the Securities Act of 1933, as amended, as in effect
at the date of execution of this Indenture.

     "Senior Debt" means the principal of (and premium, if any) and interest, if
any (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not such
claim for post-petition interest is allowed in such proceeding), on all Debt,
whether incurred on or prior to the date of this Indenture or thereafter
incurred, unless, in the instrument creating or evidencing the same or pursuant
to which the same is outstanding, it is provided that such obligations are not
superior in right of payment to the Debentures or to other Debt which is pari
passu with, or subordinated to, the Debentures; provided that Senior Debt shall
not be deemed to include (a) any Debt of the Company which when incurred and
without respect to any election under section 1111(b) of the United States
Bankruptcy Code of 1978, as amended, was without recourse to the Company; (b)
the Guarantee; (c) Debt to any employee of the Company; (d) Debt which by its
terms is subordinated to trade accounts payable or accrued liabilities arising
in the ordinary course of business to the extent that payments made to the
holders of such Debt by the holders of the Debentures as a result of the
subordination provisions of this Indenture would be greater than they otherwise
would have been as a result of any obligation of such holders to pay amounts
over to the obligees on such trade accounts payable or accrued liabilities
arising in the ordinary course of business as a result of subordination
provisions to which such Debt is subject; and (e) Debt which constitutes
Subordinated Debt.

                                       8
<PAGE>

     "Senior Indebtedness" shall have the meaning set forth in Section 16.1.

     "Special Event" means a Tax Event, a Capital Treatment Event or an
Investment Company Event.

     "Subordinated Debt" means the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or
not such claim for post-petition interest is allowed in such proceeding), on
Debt (other than the Debentures), whether incurred on or prior to the date of
this Indenture or thereafter incurred, which is by its terms expressly provided
to be junior and subordinate to other Debt of the Company (other than the
Debentures); provided, however, that Subordinated Debt will not be deemed to
include (a) any Debt of the Company which when incurred and without respect to
any election under section 1111(b) of the United States Bankruptcy Code of 1978,
as amended, was without recourse to the Company; (b) Debt which constitutes
Senior Debt; (c) Debt to any employee of the Company; (d) Debt which by its
terms is subordinated to trade accounts payable or accrued liabilities arising
in the ordinary course of business to the extent that payments made to the
holders of such Debt by the holders of the Debentures as a result of the
subordination provisions of this Indenture would be greater than they otherwise
would have been as a result of any obligation of such holders to pay amounts
over to the obligees on such trade accounts payable or accrued liabilities
arising in the ordinary course of business as a result of subordination
provisions to which such Debt is subject; and (e) any Debt of the Company under
debt securities (and guarantees in respect of these debt securities) initially
issued to any trust, or a trustee of a trust, partnership or other entity
affiliated with the Company that is, directly or indirectly, a financing vehicle
of the Company in connection with the issuance by that entity of preferred
securities or other securities which are intended to qualify for Tier 1 capital
treatment.

     "Subsidiary" means, with respect to any Person, (a) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries; (b) any general partnership,
limited liability company, joint venture, trust or similar entity, at least a
majority of whose outstanding partnership or similar interests shall at the time
be owned by such Person, or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries; and (c) any limited partnership of
which such Person or any of its Subsidiaries is a general partner.

     "Tax Event" means the receipt by the Company and the Trust of an Opinion of
Counsel, rendered by counsel experienced in such matters within a reasonable
amount of time after the applicable occurrence, to the effect that, as a result
of any amendment to, or change (including any announced prospective change) in,
the laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority thereof or therein, or as a result of any
official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of issuance of
the Preferred Securities under the Trust Agreement, there is more than an
insubstantial risk that (a) the Trust is, or shall be within ninety (90) days

                                       9
<PAGE>

after the date of such Opinion of Counsel, subject to United States federal
income tax with respect to income received or accrued on the Debentures; (b)
interest payable by the Company on the Debentures is not, or within ninety (90)
days after the date of such Opinion of Counsel, shall not be, deductible by the
Company, in whole or in part, for United States federal income tax purposes; or
(c) the Trust is, or shall be within ninety (90) days after the date of such
Opinion of Counsel, subject to more than a de minimis amount of other taxes,
duties, assessments or other governmental charges; provided, however, that the
Trust or the Company shall have requested and received such an Opinion of
Counsel with regard to such matters within a reasonable period of time after the
Trust or the Company shall have become aware of the occurrence or the possible
occurrence of any of the events described in clauses (a) through (c) above.

     "Trust" means ABC Bancorp Capital Trust I, a Delaware statutory business
trust.

     "Trust Agreement" means the Amended and Restated Trust Agreement, dated as
of ______________ ____, 2001, of the Trust.

     "Trustee" means Wilmington Trust Company, a Delaware banking corporation,
and, subject to the provisions of Article IX, shall also include its successors
and assigns, and, if at any time there is more than one Person acting in such
capacity hereunder, "Trustee" shall mean each such Person.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
subject to the provisions of Sections 11.1, 11.2, and 12.1, as in effect at the
date of execution of this Indenture.

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

     "Voting Stock," as applied to stock of any Person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.

                                   ARTICLE II.
                     ISSUE, DESCRIPTION, TERMS, CONDITIONS,
                   REGISTRATION AND EXCHANGE OF THE DEBENTURES

     Section 2.1. Designation and Principal Amount. There are hereby authorized
                  --------------------------------
Debentures designated the "____% Subordinated Debentures due 2031," limited in
aggregate principal amount up to $35,567,030, which amount shall be as set forth
in any written order of the Company for the authentication and delivery of
Debentures pursuant to Section 2.5.

     Section 2.2. Maturity.
                  --------

     (a) The Maturity Date shall be either:

          (i)  the Scheduled Maturity Date; or

                                       10
<PAGE>

         (ii)  if the Company elects to accelerate the Maturity Date to be a
               date prior to the Scheduled Maturity Date in accordance with
               Section 2.2(c), the Accelerated Maturity Date.

     (b) The Company may at any time before the day which is ninety (90) days
before the Scheduled Maturity Date and after September 30, 2006, elect to
shorten the Maturity Date only once to the Accelerated Maturity Date provided
that the Company has received the prior approval of the Federal Reserve if then
required under applicable capital guidelines, policies or regulations of the
Federal Reserve.

     (c) If the Company elects to accelerate the Maturity Date in accordance
with Section 2.2(b), then the Company shall give notice to the Trustee and the
Trust (unless the Trust is not the holder of the Debentures, in which case the
Company will give notice to the Trustee, which will then give notice to the
holders of the Debentures) of the acceleration of the Maturity Date and the
Accelerated Maturity Date at least thirty (30) days and no more than 180 days
before the Accelerated Maturity Date; provided, however, that nothing provided
in this Section 2.2 shall limit the Company's rights, as provided in Article III
hereof, to redeem all or a portion of the Debentures at such time or times on or
after September 30, 2006, as the Company may so determine, or at any time upon
the occurrence of a Special Event.

     Section 2.3. Form and Payment. The Debentures shall be issued in fully
                  ----------------
registered certificated form without interest coupons. Principal and interest on
the Debentures issued in certificated form shall be payable, the transfer of
such Debentures shall be registrable and such Debentures shall be exchangeable
for Debentures bearing identical terms and provisions at the office or agency of
the Trustee; provided, however, that payment of interest may be made at the
option of the Company by check mailed to the holder at such address as shall
appear in the Debenture Register or by wire transfer to an account maintained by
the holder as specified in the Debenture Register, provided that the holder
provides proper transfer instructions by the regular record date.
Notwithstanding the foregoing, so long as the holder of any Debentures is the
Property Trustee, the payment of principal of and interest (including Compounded
Interest and Additional Payments, if any) on such Debentures held by the
Property Trustee shall be made at such place and to such account as may be
designated by the Property Trustee.

     Section 2.4. Interest.
                  --------

     (a) Each Debenture shall bear interest at a rate of __% per annum (the
"Coupon Rate") from the original date of issuance until the principal thereof
becomes due and payable, and on any overdue principal and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest at the Coupon Rate, compounded quarterly, payable
(subject to the provisions of Article IV) quarterly in arrears on March 31, June
30, September 30, and December 31 of each year (each, an "Interest Payment
Date"), commencing on December 31, 2001, to the Person in whose name such
Debenture or any Predecessor Debenture is registered, at the close of business
on the regular record date for such interest installment, which shall be the
fifteenth day of the last month of the calendar quarter.

                                       11
<PAGE>

     (b) The amount of interest payable for any period shall be computed on the
basis of a 360-day year consisting of twelve 30-day months. The amount of
interest payable for any period shorter than a full quarterly period for which
interest is computed shall be computed on the basis of the number of days
elapsed in a 360-day year consisting of twelve 30-day months. In the event that
any date on which interest is payable on the Debentures is not a Business Day,
then payment of interest payable on such date shall be made on the next
succeeding day which 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 (and without any reduction of interest or any other
payment in respect of any such acceleration), in each case with the same force
and effect as if made on the date such payment was originally payable.

     (c) If, at any time while the Property Trustee is the holder of any
Debentures, the Trust or the Property 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 case, the Company shall pay as additional payments ("Additional
Payments") on the Debentures held by the Property Trustee, such additional
amounts as shall be required so that the net amounts received and retained by
the Trust and the Property Trustee after paying such taxes, duties, assessments
or other governmental charges shall be equal to the amounts the Trust and the
Property Trustee would have received had no such taxes, duties, assessments or
other government charges been imposed.

     Section 2.5. Execution and Authentication.
                  ----------------------------

     (a) The Debentures shall be signed on behalf of the Company by its Chairman
and Chief Executive Officer, President or one of its Executive Vice Presidents,
under its corporate seal attested by its Secretary or one of its Assistant
Secretaries. Signatures may be in the form of a manual or facsimile signature.
The Company may use the facsimile signature of any Person who shall have been a
Chairman and Chief Executive Officer, President or Executive Vice President
thereof, or of any Person who shall have been a Secretary or Assistant Secretary
thereof, notwithstanding the fact that at the time the Debentures shall be
authenticated and delivered or disposed of such Person shall have ceased to be
the Chairman and Chief Executive Officer, President or an Executive Vice
President, or the Secretary or an Assistant Secretary, of the Company (and any
such signature shall be binding on the Company). The seal of the Company may be
in the form of a facsimile of such seal and may be impressed, affixed, imprinted
or otherwise reproduced on the Debentures. The Debentures may contain such
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Debenture shall be dated the date of its authentication by the
Trustee.

     (b) A Debenture shall not be valid until manually authenticated by an
authorized signatory of the Trustee, or by an Authenticating Agent. Such
signature shall be conclusive evidence that the Debenture so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.

     (c) At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Debentures executed by the Company to
the Trustee for

                                       12
<PAGE>

authentication, together with a written order of the Company for the
authentication and delivery of such Debentures signed by its Chairman and Chief
Executive Officer, President or any Executive Vice President and its Treasurer
or any Assistant Treasurer, and the Trustee in accordance with such written
order shall authenticate and deliver such Debentures.

     (d) In authenticating such Debentures and accepting the additional
responsibilities under this Indenture in relation to such Debentures, the
Trustee shall be entitled to receive, and (subject to Section 9.1) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

     (e) The Trustee shall not be required to authenticate such Debentures if
the issue of such Debentures pursuant to this Indenture shall affect the
Trustee's own rights, duties or immunities under the Debentures and this
Indenture or otherwise in a manner that is not reasonably acceptable to the
Trustee.

     Section 2.6. Registration of Transfer and Exchange.
                  -------------------------------------

     (a) Debentures may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in the Borough of Manhattan,
the City of New York, or at the office of the Debenture Registrar, for other
Debentures and for a like aggregate principal amount in denominations of
integral multiples of $10, upon payment of a sum sufficient to cover any tax or
other governmental charge in relation thereto, all as provided in this Section
2.6. In respect of any Debentures so surrendered for exchange, the Company shall
execute, the Trustee shall authenticate and such office or agency shall deliver
in exchange therefor the Debenture or Debentures that the Debentureholder making
the exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

     (b) The Company shall keep, or cause to be kept, at its office or agency
designated for such purpose, or at the office of the Debenture Registrar, or
such other location designated by the Company a register or registers (herein
referred to as the "Debenture Register") in which, subject to such reasonable
regulations as the Debenture Registrar (as defined below) may prescribe, the
Company shall register the Debentures and the transfers of Debentures as
provided in this Article II and which at all reasonable times shall be open for
inspection by the Trustee. The registrar for the purpose of registering
Debentures and transfer of Debentures as herein provided shall initially be the
Trustee and thereafter as may be appointed by the Company as authorized by Board
Resolution (the "Debenture Registrar"), and the location of the Debenture
Register shall initially be the Corporate Trust Office of the Trustee. Upon
surrender for transfer of any Debenture at the office or agency of the Company
designated for such purpose, the Company shall execute, the Trustee shall
authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Debenture or Debentures for a like aggregate
principal amount. All Debentures presented or surrendered for exchange or
registration of transfer, as provided in this Section 2.6, shall be accompanied
(if so required by the Company or the Debenture Registrar) by a written
instrument or instruments of transfer, in form satisfactory to the Company or
the Debenture Registrar, duly executed by the registered holder or by such
holder's duly authorized attorney in writing.

                                       13
<PAGE>

     (c) No service charge shall be made for any exchange or registration of
transfer of Debentures, or issue of new Debentures in the case of a partial
redemption, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.7, Section 3.5(b) and Section 11.4 not involving any
transfer.

     (d) The Company shall not be required (i) to issue, exchange or register
the transfer of any Debentures during a period beginning at the opening of
business fifteen (15) days before the day of the mailing of a notice of
redemption of less than all the Outstanding Debentures and ending at the close
of business on the day of such mailing; nor (ii) to register the transfer of or
exchange any Debentures or portions thereof called for redemption.

     (e) Debentures may only be transferred, in whole or in part, in accordance
with the terms and conditions set forth in this Indenture. Any transfer or
purported transfer of any Debenture not made in accordance with this Indenture
shall be null and void.

     Section 2.7. Temporary Debentures. Pending the preparation of definitive
                  --------------------
Debentures, the Company may execute, and the Trustee shall authenticate and
deliver, temporary Debentures (printed, lithographed, or typewritten). Such
temporary Debentures shall be substantially in the form of the definitive
Debentures in lieu of which they are issued, but with such omissions, insertions
and variations as may be appropriate for temporary Debentures, all as may be
determined by the Company. Every temporary Debenture shall be executed by the
Company and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with like effect, as the definitive
Debentures. Without unnecessary delay, the Company shall execute and shall
furnish definitive Debentures and thereupon any or all temporary Debentures may
be surrendered in exchange therefor (without charge to the holders), at the
office or agency of the Company designated for the purpose and the Trustee shall
authenticate and such office or agency shall deliver in exchange for such
temporary Debentures an equal aggregate principal amount of definitive
Debentures, unless the Company advises the Trustee to the effect that definitive
Debentures need not be authenticated and furnished until further notice from the
Company. Until so exchanged, the temporary Debentures shall be entitled to the
same benefits under this Indenture as definitive Debentures authenticated and
delivered hereunder.

     Section 2.8. Mutilated, Destroyed, Lost or Stolen Debentures.
                  -----------------------------------------------

     (a) In case any temporary or definitive Debenture shall become mutilated or
be destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company's request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Debenture bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated
Debenture, or in lieu of and in substitution for the Debenture so destroyed,
lost, stolen or mutilated. In every case the applicant for a substituted
Debenture shall furnish to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant's Debenture and of the ownership thereof. The
Trustee shall authenticate

                                       14
<PAGE>

any such substituted Debenture and deliver the same upon the written request or
authorization of the Chairman and Chief Executive Officer, President or any
Executive Vice President and the Treasurer or any Assistant Treasurer of the
Company. Upon the issuance of any substituted Debenture, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee and the Trustee's counsel) connected therewith.
In case any Debenture that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Debenture, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated Debenture) if the applicant
for such payment shall furnish to the Company and the Trustee such security or
indemnity as they may require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Debenture and of the ownership
thereof.

     (b) Every replacement Debenture issued pursuant to the provisions of this
Section 2.8 shall constitute an additional contractual obligation of the Company
whether or not the mutilated, destroyed, lost or stolen Debenture shall be found
at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Debentures duly issued hereunder. All Debentures shall be held and owned upon
the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen
Debentures, and shall preclude (to the extent lawful) any and all other rights
or remedies, notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment of negotiable
instruments or other securities without their surrender.

     Section 2.9. Cancellation. All Debentures surrendered for the purpose of
                  ------------
payment, redemption, exchange or registration of transfer shall, if surrendered
to the Company or any Paying Agent, be delivered to the Trustee for
cancellation, or, if surrendered to the Trustee, shall be canceled by it, and no
Debentures shall be issued in lieu thereof except as expressly required or
permitted by any of the provisions of this Indenture. On request of the Company
at the time of such surrender, the Trustee shall deliver to the Company canceled
Debentures held by the Trustee. In the absence of such request the Trustee may
dispose of canceled Debentures in accordance with its standard procedures and
deliver a certificate of disposition to the Company. If the Company shall
otherwise acquire any of the Debentures, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debentures unless and until the same are delivered to the Trustee for
cancellation.

     Section 2.10. Benefit of Indenture. Nothing in this Indenture or in the
                   --------------------
Debentures, express or implied, shall give or be construed to give to any
Person, other than the parties hereto and the holders of the Debentures (and,
with respect to the provisions of Article XVI, the holders of the Senior
Indebtedness) any legal or equitable right, remedy or claim under or in respect
of this Indenture, or under any covenant, condition or provision herein
contained; all such covenants, conditions and provisions being for the sole
benefit of the parties hereto and of the holders of the Debentures (and, with
respect to the provisions of Article XVI, the holders of the Senior
Indebtedness).

                                       15
<PAGE>

     Section 2.11. Authentication Agent.
                   --------------------

     (a) So long as any of the Debentures remain Outstanding there may be an
Authenticating Agent for any or all such Debentures, which Authenticating Agent
the Trustee shall have the right to appoint. Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Debentures issued
upon exchange, transfer or partial redemption thereof, and Debentures so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. All references in this Indenture to the authentication of Debentures
by the Trustee shall be deemed to include authentication by an Authenticating
Agent. Each Authenticating Agent shall be acceptable to the Company and shall be
a corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by federal or state authorities. If at any
time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.

     (b) Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint a
successor Authenticating Agent eligible under the provisions of Section 2.11(a)
of this Indenture. Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder as if originally named as an Authenticating
Agent pursuant hereto.

                                  ARTICLE III.
                            REDEMPTION OF DEBENTURES

     Section 3.1. Redemption. Subject to the Company having received prior
                  ----------
approval of the Federal Reserve, if then required under the applicable capital
guidelines, policies or regulations of the Federal Reserve, the Company may
redeem the Debentures issued hereunder on and after the dates set forth in and
in accordance with the terms of this Article III.

     Section 3.2. Special Event Redemption. Subject to the Company having
                  ------------------------
received the prior approval of the Federal Reserve, if then required under the
applicable capital guidelines, policies or regulations of the Federal Reserve,
if a Special Event has occurred and is continuing, then, notwithstanding Section
3.3(a) but subject to Section 3.3(b), the Company shall have the right upon not
less than thirty (30) days' nor more than sixty (60) days' notice to the holders
of the Debentures to redeem the Debentures, in whole but not in part, for cash
within 180 days following the occurrence of such Special Event (the "180-Day
Period") at a redemption price equal to 100% of the principal amount to be
redeemed plus any accrued and unpaid interest thereon to the date of such
redemption (the "Redemption Price"); provided that if at the time there is
available to the Company the opportunity to eliminate, within the 180-Day
Period, a Tax Event by taking some ministerial action (a "Ministerial Action"),
such as filing a form or making

                                       16
<PAGE>

an election, or pursuing some other similar reasonable measure which has no
adverse effect on the Company, the Trust or the holders of the Trust Securities
issued by the Trust, the Company shall pursue such Ministerial Action in lieu of
redemption; and provided further that the Company shall have no right to redeem
the Debentures pursuant to this Section 3.2 while it is pursuing any Ministerial
Action pursuant to its obligations hereunder; and provided further that, if it
is determined that the taking of a Ministerial Action would not eliminate the
Tax Event within the 180 Day Period, then the Company's right to redeem the
Debentures pursuant to this Section 3.2 shall be restored and it shall have no
further obligations to pursue the Ministerial Action. The Redemption Price shall
be paid prior to 12:00 noon, New York time, on the date of such redemption or
such earlier time as the Company determines; provided that the Company shall
deposit with the Trustee an amount sufficient to pay the Redemption Price by
10:00 a.m., New York time, on the date such Redemption Price is to be paid.

     Section 3.3. Optional Redemption by the Company.
                  ----------------------------------

     (a) Subject to the provisions of Section 3.3(c), except as otherwise may be
specified in this Indenture, the Company shall have the right to redeem the
Debentures, in whole or in part, from time to time, on or after September 30,
2006, at a Redemption Price equal to 100% of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption. Any
redemption pursuant to this Section 3.3(a) shall be made upon not less than
thirty (30) days' nor more than sixty (60) days' notice to the holders of the
Debentures, at the Redemption Price. If the Debentures are only partially
redeemed pursuant to this Section 3.3(a), then the Debentures shall be redeemed
pro rata or by lot or in such other manner as the Trustee shall deem appropriate
and fair, in its discretion. The Redemption Price shall be paid prior to 12:00
noon, New York time, on the date of such redemption or at such earlier time as
the Company determines; provided that the Company shall deposit with the Trustee
an amount sufficient to pay the Redemption Price by 10:00 a.m., New York time,
on the date such Redemption Price is to be paid.

     (b) Subject to the provisions of Section 3.3(c), the Company shall have the
right to redeem Debentures at any time and from time to time in a principal
amount equal to the Liquidation Amount (as defined in the Trust Agreement) of
any Preferred Securities purchased and beneficially owned by the Company, plus
an additional principal amount of Debentures equal to the Liquidation Amount of
that number of Common Securities that bears the same proportion to the total
number of Common Securities then outstanding as the number of Preferred
Securities to be redeemed bears to the total number of Preferred Securities then
outstanding. Such Debentures shall be redeemed pursuant to this Section 3.3(b)
only in exchange for and upon surrender by the Company to the Property Trustee
of the Preferred Securities and a proportionate amount of Common Securities,
whereupon the Property Trustee shall cancel the Preferred Securities and Common
Securities so surrendered and a Like Amount (as defined in the Trust Agreement)
of Debentures shall be deemed extinguished and no longer be Outstanding.

     (c) If a partial redemption of the Debentures would result in the delisting
of the Preferred Securities from any national securities exchange or in the
termination of inclusion of the Preferred Securities issued by the Trust from
the American Stock Exchange, Inc. or other self-regulatory organization on or in
which the Preferred Securities are then listed, quoted or

                                       17
<PAGE>

included, the Company shall not be permitted to effect such partial redemption
and may only redeem the Debentures in whole.

     Section 3.4. Notice of Redemption.
                  --------------------

     (a) Except in the case of a redemption pursuant to Section 3.3(b), in case
the Company shall desire to exercise such right to redeem all or, as the case
may be, a portion of the Debentures in accordance with the right reserved so to
do, the Company shall, or shall cause the Trustee to upon receipt of forty-five
(45) days' written notice from the Company (which notice shall, in the event of
a partial redemption, include a representation to the effect that such partial
redemption will not result in the delisting of the Preferred Securities as
described in Section 3.3(c) above), give notice of such redemption to holders of
the Debentures to be redeemed by mailing, first class postage prepaid, a notice
of such redemption not less than thirty (30) days and not more than sixty (60)
days before the date fixed for redemption to such holders at their last
addresses as they shall appear upon the Debenture Register unless a shorter
period is specified in the Debentures to be redeemed. Any notice that is mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the registered holder receives the notice. In any case,
failure duly to give such notice to the holder of any Debenture designated for
redemption in whole or in part, or any defect in the notice, shall not affect
the validity of the proceedings for the redemption of any other Debentures. In
the case of any redemption of Debentures prior to the expiration of any
restriction on such redemption provided in the terms of such Debentures or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate evidencing compliance with any such restriction. Each such
notice of redemption shall specify the date fixed for redemption and the
Redemption Price and shall state that payment of the Redemption Price shall be
made at the office or agency of the Company specified in such notice or at the
Corporate Trust Office, upon presentation and surrender of such Debentures, that
interest accrued to the date fixed for redemption shall be paid as specified in
said notice and that from and after said date interest shall cease to accrue. If
less than all the Debentures are to be redeemed, the notice to the holders of
the Debentures shall specify the particular Debentures to be redeemed. If the
Debentures are to be redeemed in part only, the notice shall state the portion
of the principal amount thereof to be redeemed and shall state that on and after
the redemption date, upon surrender of such Debenture, a new Debenture or
Debentures in principal amount equal to the unredeemed portion thereof shall be
issued.

     (b) Except in the case of a redemption pursuant to Section 3.3(b), if less
than all the Debentures are to be redeemed, the Company shall give the Trustee
at least forty-five (45) days' written notice in advance of the date fixed for
redemption as to the aggregate principal amount of Debentures to be redeemed,
and thereupon the Trustee shall select, pro rata or by lot or in such other
manner as it shall deem appropriate and fair in its discretion, the portion or
portions (equal to $10 or any integral multiple thereof) of the Debentures to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Debentures to be redeemed, in whole or in part. The Company may,
if and whenever it shall so elect pursuant to the terms hereof, by delivery of
instructions signed on its behalf by its Chairman and Chief Executive Officer,
President or any Executive Vice President, instruct the Trustee or any Paying
Agent to call all or any part of the Debentures for redemption and to give
notice of redemption in the manner set forth in this Section 3.4, such notice to
be in the name of the Company or its own

                                       18
<PAGE>

name as the Trustee or such Paying Agent may deem advisable. In any case in
which notice of redemption is to be given by the Trustee or any such Paying
Agent, the Company shall deliver or cause to be delivered to, or permit to
remain with, the Trustee or such Paying Agent, as the case may be, such
Debenture Register, transfer books or other records, or suitable copies or
extracts therefrom, sufficient to enable the Trustee or such Paying Agent to
give any notice by mail that may be required under the provisions of this
Section 3.4.

     Section 3.5. Payment upon Redemption.
                  -----------------------

     (a) If the giving of notice of redemption shall have been completed as
above provided, the Debentures or portions of Debentures to be redeemed
specified in such notice shall become due and payable on the date and at the
place stated in such notice at the applicable Redemption Price, and interest on
such Debentures or portions of Debentures shall cease to accrue on and after the
date fixed for redemption, unless the Company shall default in the payment of
such Redemption Price with respect to any such Debenture or portion thereof. On
presentation and surrender of such Debentures on or after the date fixed for
redemption at the place of payment specified in the notice, said Debentures
shall be paid and redeemed at the Redemption Price (but if the date fixed for
redemption is an Interest Payment Date, the interest installment payable on such
date shall be payable to the registered holder at the close of business on the
applicable record date pursuant to Section 3.3).

     (b) Upon presentation of any Debenture that is to be redeemed in part only,
the Company shall execute and the Trustee shall authenticate and the office or
agency where the Debenture is presented shall deliver to the holder thereof, at
the expense of the Company, a new Debenture of authorized denomination in
principal amount equal to the unredeemed portion of the Debenture so presented.

     Section 3.6. No Sinking Fund.  The Debentures are not entitled to the
                  ---------------
benefit of any sinking fund.

                                   ARTICLE IV.
                      EXTENSION OF INTEREST PAYMENT PERIOD

     Section 4.1. Extension of Interest Payment Period. So long as no Event of
                  ------------------------------------
Default has occurred and is continuing, the Company shall have the right, at any
time and from time to time during the term of the Debentures, to defer payments
of interest by extending the interest payment period of such Debentures for a
period not exceeding twenty (20) consecutive quarters (the "Extension Period"),
during which Extension Period no interest shall be due and payable; provided
that no Extension Period may extend beyond the Maturity Date or end on a date
other than an Interest Payment Date. To the extent permitted by applicable law,
interest, the payment of which has been deferred because of the extension of the
interest payment period pursuant to this Section 4.1 and which remains unpaid,
shall bear interest thereon at the Coupon Rate compounded quarterly for each
quarter of the Extension Period ("Compounded Interest"). At the end of the
Extension Period, the Company shall calculate (and deliver such calculation to
the Trustee) and pay all interest accrued and unpaid on the Debentures,
including any Additional Payments and Compounded Interest (together, "Deferred
Payments") that shall be payable to the

                                       19
<PAGE>

holders of the Debentures in whose names the Debentures are registered in the
Debenture Register on the first record date after the end of the Extension
Period. Before the termination of any Extension Period, the Company may further
extend such period so long as no Event of Default has occurred and is
continuing; provided that such period together with all such further extensions
thereof shall not exceed twenty (20) consecutive quarters or extend beyond the
Maturity Date of the Debentures or end on a date other than an Interest Payment
Date. Upon the termination of any Extension Period and upon the payment of all
Deferred Payments then due, the Company may commence a new Extension Period,
subject to the foregoing requirements. No interest shall be due and payable
during an Extension Period, except at the end thereof, but the Company may
prepay at any time all or any portion of the interest accrued during an
Extension Period.

     Section 4.2. Notice of Extension.
                  -------------------

     (a) If the Property Trustee is the only registered holder of the Debentures
at the time the Company selects an Extension Period, then the Company shall give
written notice to the Administrative Trustees, the Property Trustee and the
Trustee of its selection of such Extension Period at least two Business Days
before the earlier of (i) the next succeeding date on which Distributions on the
Trust Securities issued by the Trust are payable; or (ii) the date the Trust is
required to give notice of the record date, or the date such Distributions are
payable, to the American Stock Exchange, Inc. or other applicable exchange or
self-regulatory organization or to holders of the Preferred Securities issued by
the Trust, but in any event at least one Business Day before such record date.

     (b) If the Property Trustee is not the only holder of the Debentures at the
time the Company selects an Extension Period, then the Company shall give the
holders of the Debentures and the Trustee written notice of its selection of
such Extension Period at least two Business Days before the earlier of (i) the
next succeeding Interest Payment Date; or (ii) the date the Company is required
to give notice of the record or payment date of such interest payment to the
American Stock Exchange, Inc. or other applicable exchange or self-regulatory
organization or to holders of the Debentures.

     (c) The quarter in which any notice is given pursuant to paragraphs (a) or
(b) of this Section 4.2 shall be counted as one of the twenty (20) quarters
permitted in the maximum Extension Period permitted under Section 4.1.

     Section 4.3. Limitation on Transactions. If (a) the Company shall exercise
                  --------------------------
its right to defer payment of interest as provided in Section 4.1; or (b) there
shall have occurred and be continuing any Event of Default, then (i) neither the
Company nor any of its Subsidiaries shall declare or pay any dividend on, make
any distributions with respect to, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of its capital stock (other than (A)
dividends or distributions in common stock of the Company, or any declaration of
a non-cash dividend in connection with the implementation of a shareholder
rights plan, or the issuance of stock under any such plan in the future, or the
redemption or repurchase of any such rights pursuant thereto, (B) purchases of
common stock of the Company related to the rights under any of the Company's
benefit plans for its directors, officers or employees, (C) as a result of a

                                       20
<PAGE>

reclassification of its capital stock for another class of its capital stock,
(D) dividends or distributions made by a Subsidiary to the Company, or (E)
dividends or distributions made by a Subsidiary to a Subsidiary); (ii) neither
the Company nor any Subsidiary shall make any payment of interest, principal or
premium, if any, or repay, repurchase or redeem any debt securities issued by
the Company or any Subsidiary which rank pari passu with or junior to the
Debentures or make any guarantee payments with respect to any guarantee by the
Company of any debt securities if such guarantee ranks pari passu with or junior
in interest to the Debentures; provided, however, that notwithstanding the
foregoing, the Company may make payments pursuant to its obligations under the
Preferred Securities Guarantee; and (iii) the Company shall not redeem, purchase
or acquire less than all of the Outstanding Debentures or any of the Preferred
Securities.

                                   ARTICLE V.
                       PARTICULAR COVENANTS OF THE COMPANY

     Section 5.1. Payment of Principal and Interest. The Company shall duly and
                  ---------------------------------
punctually pay or cause to be paid the principal of and interest on the
Debentures at the time and place and in the manner provided herein. Each such
payment of the principal of and interest on the Debentures shall relate only to
the Debentures, shall not be combined with any other payment of the principal of
or interest on any other obligation of the Company, and shall be clearly and
unmistakably identified as pertaining to the Debentures.

     Section 5.2. Maintenance of Agency. So long as any of the Debentures remain
                  ---------------------
Outstanding, the Company shall maintain, or shall cause to be maintained, an
office or agency in the City of Wilmington, Delaware, which shall initially be
the Corporate Trust Office of the Trustee, and at such other location or
locations as may be designated as provided in this Section 5.2, where (a)
Debentures may be presented for payment; (b) Debentures may be presented as
hereinabove authorized for registration of transfer and exchange; and (c)
notices and demands to or upon the Company in respect of the Debentures and this
Indenture may be given or served, such designation to continue with respect to
such office or agency until the Company shall, by written notice signed by its
Chairman and Chief Executive Officer, President or an Executive Vice President
and delivered to the Trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, notices and demands may be made or served
at the Corporate Trust Office of the Trustee, and the Company hereby appoints
the Trustee as its agent to receive all such presentations, notices and demands.
In addition to any such office or agency, the Company may from time to time
designate one or more offices or agencies outside of the City of Wilmington,
Delaware, where the Debentures may be presented for registration or transfer and
for exchange in the manner provided herein, and the Company may from time to
time rescind such designation as the Company may deem desirable or expedient.
The Company shall give the Trustee prompt written notice of any such designation
or rescission thereof.

     Section 5.3. Paying Agents.
                  -------------

                                       21
<PAGE>

     (a) The Company shall be the initial Paying Agent. If the Company shall
appoint one or more Paying Agents for the Debentures, other than the Trustee,
then the Company shall cause each such Paying Agent to execute and deliver to
the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section 5.3:

          (i)    that it shall hold all sums held by it as such agent for the
     payment of the principal of or interest on the Debentures (whether such
     sums have been paid to it by the Company or by any other obligor of such
     Debentures) in trust for the benefit of the Persons entitled thereto;

          (ii)   that it shall give the Trustee notice of any failure by the
     Company (or by any other obligor of such Debentures) to make any payment of
     the principal of or interest on the Debentures when the same shall be due
     and payable;

          (iii)  that it shall, at any time during the continuance of any
     failure referred to in the preceding paragraph (a)(ii) above, upon the
     written request of the Trustee, forthwith pay to the Trustee all sums so
     held in trust by such Paying Agent; and

          (iv)   that it shall perform all other duties of Paying Agent as set
     forth in this Indenture.

     (b) If the Company shall act as its own Paying Agent with respect to the
Debentures, then it shall on or before each due date of the principal of or
interest on such Debentures, set aside, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay such principal
or interest so becoming due on Debentures until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and shall promptly notify
the Trustee of such action, or any failure (by it or any other obligor on such
Debentures) to take such action. Whenever the Company shall have one or more
Paying Agents for the Debentures, it shall, prior to each due date of the
principal of or interest on any Debentures, deposit with the Paying Agent a sum
sufficient to pay the principal or interest so becoming due, such sum to be held
in trust for the benefit of the Persons entitled to such principal or interest,
and (unless such Paying Agent is the Trustee) the Company shall promptly notify
the Trustee of this action or failure so to act.

     (c) Notwithstanding anything in this Section 5.3 to the contrary, (i) the
agreement to hold sums in trust as provided in this Section 5.3 is subject to
the provisions of Section 13.3 and 13.4; and (ii) the Company may at any time,
for the purpose of obtaining the satisfaction and discharge of this Indenture or
for any other purpose, pay, or direct any Paying Agent to pay, to the Trustee
all sums held in trust by the Company or such Paying Agent, such sums to be held
by the Trustee upon the same terms and conditions as those upon which such sums
were held by the Company or such Paying Agent, and, upon such payment by any
Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

     Section 5.4. Appointment to Fill Vacancy in Office of the Trustee. The
                  ----------------------------------------------------
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
shall appoint, in the manner provided in Section 9.11, a Trustee, so that there
shall at all times be a Trustee hereunder.

                                       22
<PAGE>

     Section 5.5. Compliance with Consolidation Provisions. The Company shall
                  ----------------------------------------
not, while any of the Debentures remain Outstanding, consolidate with, or merge
into, or merge into itself, or sell or convey all or substantially all of its
property to any other company unless the provisions of Article XII hereof are
complied with.

     Section 5.6. Limitation on Transactions. If Debentures are issued to the
                  --------------------------
Trust or a trustee of the Trust in connection with the issuance of Trust
Securities by the Trust and (a) there shall have occurred and be continuing an
Event of Default; (b) the Company shall be in default with respect to its
payment of any obligations under the Preferred Securities Guarantee relating to
the Trust; or (c) the Company shall have given notice of its election to defer
payments of interest on such Debentures by extending the interest payment period
as provided in this Indenture and such Extension Period, or any extension
thereof, shall be continuing, then (i) neither the Company nor any of its
Subsidiaries shall declare or pay any dividend on, make any distributions with
respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock (other than (A) dividends or distributions
in common stock of the Company, or any declaration of a non-cash dividend in
connection with the implementation of a shareholder rights plan, or the issuance
of stock under any such plan in the future, or the redemption or repurchase of
any such rights pursuant thereto, (B) purchases of common stock of the Company
related to the rights under any of the Company's benefit plans for its
directors, officers or employees, (C) as a result of a reclassification of its
capital stock, or (D) dividends or distributions made by a Subsidiary to the
Company, or (E) dividends or distributions made by a Subsidiary to a
Subsidiary); (ii) neither the Company nor any Subsidiary shall make any payment
of principal, interest or premium, if any, or repay, repurchase or redeem any
debt securities issued by the Company or any Subsidiary which rank pari passu
with or junior in interest to the Debentures or make any guarantee payments with
respect to any guarantee by the Company of any debt securities if such guarantee
ranks pari passu with or junior in interest to the Debentures; provided,
however, that the Company may make payments pursuant to its obligations under
the Preferred Securities Guarantee; and (iii) the Company shall not redeem,
purchase or acquire less than all of the Outstanding Debentures or any of the
Preferred Securities.

     Section 5.7. Covenants as to the Trust. For so long as the Trust Securities
                  -------------------------
of the Trust remain outstanding, the Company (a) shall maintain 100% direct or
indirect ownership of the Common Securities of the Trust; provided, however,
that any permitted successor of the Company under this Indenture may succeed to
the Company's ownership of the Common Securities; (b) shall not voluntarily
terminate, wind up or liquidate the Trust, except upon prior approval of the
Federal Reserve if then so required under applicable capital guidelines,
policies or regulations of the Federal Reserve; (c) shall use its reasonable
efforts to cause the Trust (i) to remain a business trust (and to avoid
involuntary termination, winding up or liquidation), except in connection with a
distribution of Debentures, the redemption of all of the Trust Securities of the
Trust or certain mergers, consolidations or amalgamations, each as permitted by
the Trust Agreement; and (ii) to otherwise continue not to be treated as an
association taxable as a corporation or partnership for United States federal
income tax purposes; (d) shall use its reasonable efforts to cause each holder
of Trust Securities to be treated as owning an individual beneficial interest in
the Debentures; and (e) including any successor to the Company, shall use
reasonable efforts to maintain the eligibility of the Preferred Securities for
listing, quotation or

                                       23
<PAGE>

inclusion on or in any national securities exchange or other self-regulatory
organization on or in which the Preferred Securities are then listed, quoted or
included (including, if applicable, the American Stock Exchange, Inc.) and shall
use reasonable efforts to keep the Preferred Securities so listed, quoted or
included for so long as the Preferred Securities remain outstanding. In
connection with the distribution of the Debentures to the holders of the
Preferred Securities upon a Dissolution Event, the Company shall use its best
efforts to list such Debentures on the American Stock Exchange, Inc. or such
other exchange or to include such Debentures in such self-regulatory
organization as the Preferred Securities are then listed, quoted or included.

     Section 5.8.  Covenants as to Purchases. Except upon the exercise by the
                   -------------------------
Company of its right to redeem the Debentures pursuant to Section 3.2 upon the
occurrence and continuation of a Special Event, the Company shall not purchase
any Debentures, in whole or in part, from the Trust prior to September 30, 2006.

     Section 5.9.  Waiver of Usury, Stay or Extension Laws. To the fullest
                   ---------------------------------------
extent permitted by law (a) the Company shall not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any usury, stay or extension law wherever enacted, now or at any time hereafter
in force, which may affect the covenants or the performances of this Indenture,
and (b) the Company hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the extension of
every such power as though no such law had been enacted.

     Section 5.10. Limitation on Additional Junior Indebtedness. The Company
                   --------------------------------------------
shall not, and it shall not cause or permit any Subsidiary of the Company to,
incur, issue or be obligated on any Additional Junior Indebtedness, either
directly or indirectly, by way of guarantee, suretyship or otherwise, other
than:

     (a) Additional Junior Indebtedness that, by its terms, is expressly stated
to be junior and subordinate in all respects to the Debentures; or

     (b) Additional Junior Indebtedness that, by its terms, is expressly stated
to be pari passu and rank equally in all respects with the Debentures; provided,
however, that neither the Company nor any of its Subsidiaries shall incur, issue
or otherwise become obligated on any Additional Junior Indebtedness pursuant to
this Section 5.10(b) unless the quotient of "X" divided by "Y" is less than
0.60, where "X" and "Y" are calculated as described in Section 5.10(c) and
5.10(d), respectively.

     (c) As used in Section 5.10(b), "X" means the sum of the following:

         (i)  the aggregate liquidation amount or principal amount, as the case
     may be, of the Debentures Outstanding at the time of the proposed issuance
     of such Additional Junior Indebtedness pursuant to Section 5.10(b), plus

         (ii) the aggregate liquidation amount or principal amount, as the case
     may be, of any Additional Junior Indebtedness previously issued and
     outstanding at the time of

                                       24
<PAGE>

     the proposed issuance of such Additional Junior indebtedness pursuant to
     Section 5.10(b), excluding any such Additional Junior Indebtedness that, by
     its terms, is expressly stated to be junior and subordinate in all respects
     to the Debentures, plus

          (iii)  the aggregate liquidation amount or principal amount, as the
     case may be, of the Additional Junior Indebtedness proposed to be issued or
     otherwise incurred pursuant to Section 5.10(b), plus

          (iv)   the principal amount of any Senior Indebtedness of the Company
     outstanding at the time of the proposed issuance of such Additional Junior
     Indebtedness pursuant to Section 5.10(b) and that has a maturity or is
     otherwise due and payable by the Company on a date twelve (12) months or
     more after the time of the proposed issuance of such Additional Junior
     Indebtedness pursuant to Section 5.10(b).

     (d)  As used in Section 5.10(b), "Y" means the sum of the following:

          (i)    the sum of (y) the "common shareholders' equity" of the
     Company, plus (z) the "perpetual preferred stock" of the Company, each
     calculated on a consolidated basis and in accordance with Appendix A to
     Part 225 (Capital adequacy guidelines for bank-holding companies; risk-
     based measure) of Federal Reserve Regulation Y (12 CFR (S)225, as amended,
     as in effect at the date of execution of this Indenture), without regard to
     limitations therein with respect to the inclusion of perpetual preferred
     stock (whether cumulative or noncumulative) in Tier 1 capital, determined
     as of the last day of the month immediately preceding the month during
     which the proposed issuance of the Additional Junior Indebtedness pursuant
     to Section 5.10(b) is scheduled to occur, (provided, however, that in no
     event shall any portion of the Debentures, the Additional Junior
     Indebtedness or the Senior Indebtedness described in Section 5.10(c) also
     be included in "Y" under this Section 5.10(d)), plus

          (ii)   any other preferred stock of the Company that does not
     otherwise qualify as "perpetual preferred stock" and is not included in
     clause (d)(i) above, plus

          (iii)  the aggregate liquidation amount or principal amount, as the
     case may be, of any Additional Junior Indebtedness, which by its terms is
     expressly stated to be junior and subordinate in all respects to the
     Debentures and which was previously issued and outstanding at the time of
     the proposed issuance of such Additional Junior Indebtedness pursuant to
     Section 5.10(b).

     (e)  Notwithstanding the foregoing, the limitations of this Section 5.10
shall not in any way preclude the Company from merging with or into, or from
acquiring or being acquired by, another Person (including by way of merger,
stock purchase or acquisition of assets) that is not directly or indirectly
controlling, controlled by or under common control with the Company in an arm's
length transaction entered into in good faith, even though the pro forma
consolidated balance sheet of the surviving Person immediately following the
consummation of such merger, or of the acquiror immediately following the
completion of such acquisition transaction, may include Additional Junior
Indebtedness in amounts in excess of amounts that would otherwise be

                                       25
<PAGE>

permitted by this Section 5.10; provided, however, that thereafter the
limitations on future incurrences of Additional Junior Indebtedness in this
Section 5.10 shall continue to apply to the Company (in the event that it is the
surviving corporation in such merger transaction or the acquiror in such
acquisition transaction) and shall apply to the other Person (in the event that
it is the surviving corporation in such merger transaction or the acquiror in
such acquisition transaction) whether or not such other Person is expressly made
a party hereto.

     Section 5.11. No Intent to Commence Extension Period. The Company has no
                   --------------------------------------
present intention to exercise its right under Section 4.1 to defer payments of
interest on the Debentures by selecting an Extension Period. The Company
believes that the likelihood that it would exercise its right under Section 4.1
to defer payments of interest on the Debentures by selecting an Extension Period
at any time during which the Debentures are outstanding is remote because of the
restrictions that would be imposed on the Company pursuant to Sections 4.3 and
5.6 of this Indenture.

                                  ARTICLE VI.
                    THE DEBENTUREHOLDERS' LISTS AND REPORTS
                        BY THE COMPANY AND THE TRUSTEE

     Section 6.1. The Company to Furnish the Trustee Names and Addresses of the
                  -------------------------------------------------------------
Debentureholders. The Company shall furnish or cause to be furnished to the
----------------
Trustee (a) on a quarterly basis on each regular record date (as described in
Section 2.4) a list, in such form as the Trustee may reasonably require, of the
names and addresses of the holders of the Debentures as of such regular record
date; provided that the Company shall not be obligated to furnish or cause to be
furnished such list at any time that the list shall not differ in any respect
from the most recent list furnished to the Trustee by the Company (in the event
the Company fails to provide such list on a quarterly basis, the Trustee shall
be entitled to rely on the most recent list provided by the Company); and (b) at
such other times as the Trustee may request in writing within thirty (30) days
after the receipt by the Company of any such request, a list in similar form and
content as of a date not more than fifteen (15) days prior to the time such list
is furnished; provided, however, that, in either case, no such list need be
furnished if the Trustee shall be the Debenture Registrar.

     Section 6.2. Preservation of Information Communications with the
                  ---------------------------------------------------
Debentureholders.
----------------

     (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Debentures contained in the most recent list furnished to it as provided in
Section 6.1 and as to the names and addresses of holders of Debentures received
by the Trustee in its capacity as Debenture Registrar for the Debentures (if
acting in such capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section
6.1 upon receipt of a new list so furnished.

                                       26
<PAGE>

     (c) Debentureholders may communicate as provided in Section 312(b) of the
Trust Indenture Act with other Debentureholders with respect to their rights
under this Indenture or under the Debentures.

     Section 6.3. Reports by the Company.
                  ----------------------

     (a) The Company covenants and agrees to file with the Trustee, within
fifteen (15) days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) that the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with the rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports that may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

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

     (c) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or reputable overnight delivery service that provides for
evidence of receipt, to the Debentureholders, as their names and addresses
appear upon the Debenture Register, within thirty (30) days after the filing
thereof with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to subsections (a) and (b)
of this Section 6.3 as may be required by rules and regulations prescribed from
time to time by the Commission.

     Section 6.4. Reports by the Trustee.
                  ----------------------

     (a) On or before October 15 in each year in which any of the Debentures are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to
the Debentureholders, as their names and addresses appear upon the Debenture
Register, a brief report dated as of the preceding September 30, if and to the
extent required under Section 313(a) of the Trust Indenture Act.

     (b) The Trustee shall comply with Section 313(b) and 313(c) of the Trust
Indenture Act.

     (c) A copy of each such report shall, at the time of such transmission to
Debentureholders, be filed by the Trustee with the Company, with the American
Stock

                                       27
<PAGE>

Exchange, Inc., or other stock exchange on which any Debentures are listed or
any other self-regulatory organization on or in which any Debentures are quoted
or included (if so listed, quoted or included) and also with the Commission. The
Company agrees to notify the Trustee when any Debentures become listed on the
American Stock Exchange, Inc. or on any other stock exchange or designated for
inclusion or quotation in or on any other self-regulatory organization.

                                 ARTICLE VII.
                 REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS
                              ON EVENT OF DEFAULT

     Section 7.1. Events of Default.
                  -----------------

     (a)  Whenever used herein with respect to the Debentures, "Event of
Default" means any one or more of the following events that has occurred and is
continuing:

          (i)   the Company defaults in the payment of any installment of
     interest upon any of the Debentures, as and when the same shall become due
     and payable, and continuance of such default for a period of thirty (30)
     days; provided, however, that a valid extension of an interest payment
     period by the Company in accordance with the terms of this Indenture shall
     not constitute a default in the payment of interest for this purpose;

          (ii)  the Company defaults in the payment of the principal on the
     Debentures as and when the same shall become due and payable whether at
     maturity, upon redemption, by declaration or otherwise;

          (iii) the Company fails to observe or perform any other of its
     covenants or agreements with respect to the Debentures for a period of
     ninety (90) days after the date on which written notice of such failure,
     requiring the same to be remedied and stating that such notice is a "Notice
     of Default" hereunder, shall have been given to the Company by the Trustee,
     by registered or certified mail, or to the Company and the Trustee by the
     holders of at least twenty-five percent (25%) in principal amount of the
     Debentures at the time Outstanding;

          (iv)  the Company, pursuant to or within the meaning of any Bankruptcy
     Law, (A) commences a voluntary case; (B) consents to the entry of an order
     for relief against it in an involuntary case; (C) consents to the
     appointment of a Custodian of it or for all or substantially all of its
     property; or (D) makes a general assignment for the benefit of its
     creditors;

          (v)   a court of competent jurisdiction enters an order under any
     Bankruptcy Law that (A) is for relief against the Company in an involuntary
     case; (B) appoints a Custodian of the Company for all or substantially all
     of its property; or (C) orders the liquidation of the Company, and the
     order or decree remains unstayed and in effect for ninety (90) days; or

                                       28
<PAGE>

          (vi)  the Trust shall have voluntarily or involuntarily dissolved,
     wound-up its business or otherwise terminated its existence except in
     connection with (A) the distribution of Debentures to holders of Trust
     Securities in liquidation of their interests in the Trust; (B) the
     redemption of all of the outstanding Trust Securities of the Trust; or (C)
     certain mergers, consolidations or amalgamations, each as permitted by the
     Trust Agreement.

     (b)  In each and every such case referred to in items (i) through (vi) of
Section 7.1(a), unless the principal of all the Debentures shall have already
become due and payable, either the Trustee or the holders of not less than
twenty-five percent (25%) in aggregate principal amount of the Debentures then
Outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by such Debentureholders) may declare the principal of all the
Debentures to be due and payable immediately, and upon any such declaration the
same shall become and shall be immediately due and payable, notwithstanding
anything contained in this Indenture or in the Debentures.

     (c)  At any time after the principal of the Debentures shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of at least a majority in aggregate principal amount of the Debentures
then Outstanding hereunder, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if: (i) the Company
has paid or deposited with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Debentures and the principal of any and
all Debentures that shall have become due otherwise than by acceleration (with
interest upon such principal, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Debentures to the date of such payment or
deposit) and the amount payable to the Trustee under Section 9.7; and (ii) any
and all Events of Default under this Indenture, other than the nonpayment of
principal on Debentures that shall not have become due by their terms, shall
have been remedied or waived as provided in Section 7.6. No such rescission and
annulment shall extend to or shall affect any subsequent default or impair any
right consequent thereon.

     (d)  In case the Trustee shall have proceeded to enforce any right with
respect to Debentures under this Indenture and such proceedings shall have been
discontinued or abandoned because of such rescission or annulment or for any
other reason or shall have been determined adversely to the Trustee, then and in
every such case the Company and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers
of the Company and the Trustee shall continue as though no such proceedings had
been taken.

     Section 7.2. Collection of Indebtedness and Suits for Enforcement by the
                  -----------------------------------------------------------
Trustee.
-------

     (a)  The Company covenants that (i) in case it shall default in the payment
of any installment of interest on any of the Debentures, and such default shall
have continued for a period of thirty (30) days (other than by reason of a valid
extension of an interest payment period by the Company in accordance with the
terms of this Indenture); or (ii) in case it shall default in

                                       29
<PAGE>

the payment of the principal of any of the Debentures when the same shall have
become due and payable, whether upon maturity of the Debentures or upon
redemption or upon declaration or otherwise, then, upon demand of the Trustee,
the Company shall pay to the Trustee, for the benefit of the holders of the
Debentures, the whole amount that then shall have been become due and payable on
all such Debentures for principal or interest, or both, as the case may be, with
interest upon the overdue principal; and (to the extent that payment of such
interest is enforceable under applicable law and, if the Debentures are held by
the Trust or a trustee of the Trust, without duplication of any other amounts
paid by the Trust or trustee in respect thereof) upon overdue installments of
interest at the rate per annum expressed in the Debentures; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, and the amount payable to the Trustee under Section 9.7.

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

     (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, the Trust, or the creditors or property of either, the
Trustee shall have power to intervene in such proceedings and take any action
therein that may be permitted by the court and shall (except as may be otherwise
provided by law) be entitled to file such proofs of claim and other papers and
documents as may be necessary or advisable in order to have the claims of the
Trustee and of the holders of the Debentures allowed for the entire amount due
and payable by the Company under this Indenture at the date of institution of
such proceedings and for any additional amount that may become due and payable
by the Company after such date, and to collect and receive any moneys or other
property payable or deliverable on any such claim, and to distribute the same
after the deduction of the amount payable to the Trustee under Section 9.7; and
any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of the Debentures to make such payments to the
Trustee, and, in the event that the Trustee shall consent to the making of such
payments directly to such Debentureholders, to pay to the Trustee any amount due
it under Section 9.7.

     (d) All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to the Debentures, may be
enforced by the Trustee without the possession of any of such Debentures, or the
production thereof at any trial or other proceeding relative thereto, and any
such suit or proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 9.7, be
for the ratable benefit of the holders of the Debentures. In case of an Event of
Default hereunder which is continuing, the Trustee may in its discretion proceed
to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to

                                       30
<PAGE>

protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law. Nothing contained herein
shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Debentureholder any plan of reorganization, arrangement,
adjustment or composition affecting the Debentures or the rights of any holder
thereof or to authorize the Trustee to vote in respect of the claim of any
Debentureholder in any such proceeding.

     Section 7.3. Application of Moneys Collected. Any moneys or other assets
                  -------------------------------
collected by the Trustee pursuant to this Article VII with respect to the
Debentures shall be applied in the following order, at the date or dates fixed
by the Trustee and, in case of the distribution of such moneys or other assets
on account of principal or interest, upon presentation of the Debentures, and
notation thereon of the payment, if only partially paid, and upon surrender
thereof if fully paid:

          FIRST: To the payment of costs and expenses of collection and of all
     amounts payable to the Trustee under Section 9.7;

          SECOND: To the payment of all Senior Indebtedness if and to the extent
     required by Article XVI; and

          THIRD: To the payment of the amounts then due and unpaid upon the
     Debentures for principal and interest, in respect of which or for the
     benefit of which such money has been collected, ratably, without preference
     or priority of any kind, according to the amounts due and payable on such
     Debentures for principal and interest, respectively.

     Section 7.4. Limitation on Suits.
                  -------------------

     (a) Except as set forth in this Indenture, no holder of any Debenture shall
have any right by virtue or by availing of any provision of this Indenture to
institute any suit, action or proceeding in equity or at law upon or under or
with respect to this Indenture or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless (i) such holder previously shall have
given to the Trustee written notice of an Event of Default and of the
continuance thereof with respect to the Debentures specifying such Event of
Default, as hereinbefore provided; (ii) the holders of not less than twenty-five
(25%) in aggregate principal amount of the Debentures then Outstanding shall
have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby;
and (iv) the Trustee for sixty (60) days after its receipt of such notice,
request and offer of indemnity shall have failed to institute any such action,
suit or proceeding and during such sixty (60) day period, the holders of not
less than a majority in principal amount of the Debentures do not give the
Trustee a direction inconsistent with the request.

                                       31
<PAGE>

     (b) Notwithstanding anything contained herein to the contrary or any other
provisions of this Indenture, the right of any holder of the Debentures to
receive payment of the principal of and interest on the Debentures, as therein
provided, on or after the respective due dates expressed in such Debenture (or
in the case of redemption, on the redemption date), or to institute suit for the
enforcement of any such payment on or after such respective dates or redemption
date, shall not be impaired or affected without the consent of such holder, and
by accepting a Debenture hereunder it is expressly understood, intended and
covenanted by the taker and holder of every Debenture with every other such
taker and holder and the Trustee that no one or more holders of the Debentures
shall have any right in any manner whatsoever by virtue or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of the
holders of any other of such Debentures, or to obtain or seek to obtain priority
over or preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of the Debentures. For the protection and
enforcement of the provisions of this Section 7.4, each and every
Debentureholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

     Section 7.5. Rights and Remedies Cumulative; Delay or Omission not Waiver.
                  ------------------------------------------------------------

     (a) Except as otherwise provided in Section 2.8(b), all powers and remedies
given by this Article VII to the Trustee or to the Debentureholders shall, to
the extent permitted by law, be deemed cumulative and not exclusive of any other
powers and remedies available to the Trustee or the holders of the Debentures,
by judicial proceedings or otherwise, to enforce the performance or observance
of the covenants and agreements contained in this Indenture or otherwise
established with respect to such Debentures.

     (b) No delay or omission of the Trustee or of any holder of any of the
Debentures to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 7.4, every power and remedy
given by this Article VII or by law to the Trustee or the Debentureholders may
be exercised from time to time, and as often as shall be deemed expedient, by
the Trustee or by the Debentureholders.

     Section 7.6. Control by the Debentureholders. The holders of not less than
                  -------------------------------
a majority in aggregate principal amount of the Debentures at the time
Outstanding, determined in accordance with Section 10.4, shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee; provided, however, that such direction shall not be in conflict with
any rule of law or with this Indenture. Subject to the provisions of Section
9.1, the Trustee shall have the right to decline to follow any such direction if
the Trustee in good faith shall determine that the action so directed would be
unjustly prejudicial to the holders not taking part in such direction or if the
Trustee, being advised by counsel, determines that the action or proceeding so
directed may not lawfully be taken, or if a Responsible Officer or Officers of
the Trustee determine that the proceeding so directed would involve the Trustee
in personal liability. The holders of not less than a majority in aggregate
principal amount of the Debentures at the time Outstanding affected thereby, or
the holders of not less than a majority in liquidation

                                       32
<PAGE>

preference of the Trust Securities of the Trust at the time Outstanding affected
thereby, in each case determined in accordance with Section 10.4, may, on behalf
of the holders of all of the Debentures or of all of the Preferred Securities,
as the case may be, waive any past default in the performance of any of the
covenants contained herein and its consequences or any past Default or Event of
Default, except (i) a default in the payment of the principal of or interest on
any of the Debentures as and when the same shall become due by the terms of such
Debentures otherwise than by acceleration (unless such default has been cured
and a sum sufficient to pay all matured installments of interest and principal
due otherwise than by acceleration has been deposited with the Trustee (in
accordance with Section 7.1(c)); (ii) a default in the covenants contained in
Section 5.7; or (iii) in respect of a covenant or provision hereof which cannot
be modified or amended without the consent of the holder of each Outstanding
Debenture affected; provided, however, that if the Debentures are held by the
Trust or a trustee of the Trust, such waiver or modification to such waiver
shall not be effective until the holders of not less than a majority in
liquidation preference of Trust Securities of the Trust shall have consented to
such waiver or modification to such waiver; and provided further, however, that
if the Debentures are held by the Trust or a trustee of the Trust, and if the
consent of the holder of each Outstanding Debenture is required, then such
waiver shall not be effective until each holder of the Trust Securities of the
Trust shall have consented to such waiver. Upon any such waiver, the default
covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Debentures shall be restored
to their former positions and rights hereunder, respectively, but no such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon.

     Section 7.7. Undertaking to Pay Costs. All parties to this Indenture agree,
                  ------------------------
and each holder of any Debentures, by such holder's acceptance thereof, shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken or omitted by it as the Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; provided, however, that the provisions of this Section 7.7
shall not apply to any suit instituted by the Trustee, to any suit instituted by
any Debentureholder, or group of the Debentureholders holding more than ten
percent (10%) in aggregate principal amount of the Outstanding Debentures, or to
any suit instituted by any Debentureholder for the enforcement of the payment of
the principal of or interest on the Debentures, on or after the respective due
dates expressed in such Debenture or established pursuant to this Indenture.

     Section 7.8. Direct Action; Right of Set-Off. In the event that an Event of
                  -------------------------------
Default has occurred and is continuing and such event is attributable to the
failure of the Company to pay interest on or principal of the Debentures on an
Interest Payment Date or Maturity Date, as applicable, then a holder of
Preferred Securities may institute and prosecute a legal proceeding directly
against the Company for enforcement of payment to such holder of the principal
of or interest on such Debentures having a principal amount equal to the
aggregate Liquidation Amount of the Preferred Securities of such holders (a
"Direct Action"). In connection with such Direct Action, the Company will have a
right of set-off under this Indenture to the extent of any

                                       33
<PAGE>

payment actually made by the Company to such holder of the Preferred Securities
with respect to such Direct Action.

                                 ARTICLE VIII.
                   FORM OF THE DEBENTURE AND ORIGINAL ISSUE

     Section 8.1. Form of Debenture. The Debenture and the Trustee's Certificate
                  -----------------
of Authentication to be endorsed thereon are to be substantially in the forms
attached hereto as Exhibit A and incorporated herein by reference.
                   ---------

     Section 8.2. Original Issue of the Debentures. Debentures in the aggregate
                  --------------------------------
principal amount of $30,927,850 may, upon execution of this Indenture, be
executed by the Company and delivered to the Trustee for authentication. If the
Underwriters exercise their Option and there is an Option Closing Date (as such
terms are defined in that certain Underwriting Agreement dated ________, 2001,
by and among the Company, the Trust, and Sterne, Agee & Leach, Inc., as
Representative of the several Underwriters named therein), then, on such Option
Closing Date, Debentures in the additional aggregate amount of up to $4,639,180
may be executed by the Company and delivered to the Trustee for authentication.
The Trustee shall thereupon authenticate and deliver said Debentures to or upon
the written order of the Company, signed by its Chairman and Chief Executive
Officer, its President, or any Executive Vice President and its Treasurer or an
Assistant Treasurer, without any further action by the Company.

                                  ARTICLE IX.
                            CONCERNING THE TRUSTEE

     Section 9.1. Certain Duties and Responsibilities of the Trustee.
                  --------------------------------------------------

     (a) The Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to
perform with respect to the Debentures such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants shall be read
into this Indenture against the Trustee. In case an Event of Default has
occurred that has not been cured or waived, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of
care and skill in its exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

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

         (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 Trustee shall with respect to
         the Debentures be determined solely by the express provisions of this
         Indenture, and the Trustee shall not be liable with respect to the
         Debentures except for the

                                       34
<PAGE>

         performance of such duties and obligations as are specifically set
         forth in this Indenture, and no implied covenants or obligations shall
         be read into this Indenture against the Trustee; and

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

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

          (iii) the Trustee shall not be liable with respect to any action
     taken or omitted to be taken by it in good faith in accordance with the
     direction of the holders of not less than a majority in principal amount of
     the Debentures at the time Outstanding relating to the time, method and
     place of conducting any proceeding for any remedy available to the Trustee,
     or exercising any trust or power conferred upon the Trustee under this
     Indenture with respect to the Debentures; and

          (iv)  none of the provisions contained in this Indenture shall require
     the Trustee to expend or risk its own funds or otherwise incur personal
     financial liability in the performance of any of its duties or in the
     exercise of any of its rights or powers, if there is reasonable ground for
     believing that the repayment of such funds or liability is not reasonably
     assured to it under the terms of this Indenture or adequate indemnity
     against such risk is not reasonably assured to it.

     Section 9.2. Notice of Defaults. Within ninety (90) days after actual
                  ------------------
knowledge by a Responsible Officer of the Trustee of the occurrence of any
Default hereunder with respect to the Debentures, the Trustee shall transmit by
mail to all holders of the Debentures, as their names and addresses appear in
the Debenture Register, notice of such Default, unless such Default shall have
been cured or waived; provided, however, that, except in the case of a default
in the payment of the principal or interest (including any Additional Payments)
on any Debenture, the Trustee shall be protected in withholding such notice if
and so long as the board of directors, the executive committee or a trust
committee of the directors and/or one or more Responsible Officers of the
Trustee determines in good faith that the withholding of such notice is in the
interests of the holders of such Debentures; and provided further, however, that
in the case of any Default of the character specified in section 7.1(a)(iii), no
such notice to holders of Debentures need be sent until at least thirty (30)
days after the occurrence thereof.

     Section 9.3. Certain Rights of the Trustee. Except as otherwise provided in
                  -----------------------------
Section 9.1:

                                       35
<PAGE>

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

     (b) Any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Board Resolution or an instrument signed in
the name of the Company by its Chairman and Chief Executive Officer, President
or any Executive Vice President and by the Secretary or an Assistant Secretary
or the Treasurer or an Assistant Treasurer thereof (unless other evidence in
respect thereof is specifically prescribed herein);

     (c) The Trustee shall not be deemed to have knowledge of a Default or an
Event of Default, other than an Event of Default specified in Section 7.1(a)(i)
(other than the payment or nonpayment of Additional Payments or Compounded
Interest) or Section 7.1(a)(ii), unless and until it receives written
notification of such Event of Default from the Company or by holders of not less
than twenty-five percent (25%) of the aggregate principal amount of the
Debentures at the time Outstanding;

     (d) The Trustee may consult with counsel, and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection
in respect of any action taken or suffered or omitted hereunder in good faith
and in reliance thereon;

     (e) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Debentureholders, pursuant to the provisions of this Indenture,
unless such Debentureholders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities that may be
incurred therein or thereby; provided, however, that nothing contained herein
shall relieve the Trustee of the obligation, upon the occurrence of an Event of
Default (that is continuing and has not been cured or waived) to exercise with
respect to the Debentures such of the rights and powers vested in it by this
Indenture, and to use the same degree of care and skill in its exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs;

     (f) The Trustee shall not be liable for any action taken or omitted to be
taken by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

     (g) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Debentures
(determined as provided in Section 10.4); provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security
afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition
to so

                                       36
<PAGE>

proceeding, and the reasonable expense of every such examination shall be paid
by the Company or, if paid by the Trustee, shall be repaid by the Company upon
demand; and

     (h) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys, and the 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.

     Section 9.4. The Trustee not Responsible for Recitals, Etc.
                  ---------------------------------------------

     (a) The Recitals contained herein and in the Debentures shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Debentures.

     (c) The Trustee shall not be accountable for the use or application by the
Company of any of the Debentures or of the proceeds of such Debentures, or for
the use or application of any moneys paid over by the Trustee in accordance with
any provision of this Indenture, or for the use or application of any moneys
received by any Paying Agent other than the Trustee.

     Section 9.5. May Hold the Debentures. The Trustee or any Paying Agent or
                  -----------------------
Debenture Registrar for the Debentures, in its individual or any other capacity,
may become the owner or pledgee of the Debentures with the same rights it would
have if it were not Trustee, Paying Agent or Debenture Registrar.

     Section 9.6. Moneys Held in Trust. Subject to the provisions of Section
                  --------------------
13.5, all moneys received by the Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received, but
need not be segregated from other funds except to the extent required by law.
The Trustee shall be under no liability for interest on any moneys received by
it hereunder except such as it may agree  in writing with the Company to pay
thereon.

     Section 9.7. Compensation and Reimbursement.
                  ------------------------------

     (a) The Company covenants and agrees to pay to the Trustee, and the Trustee
shall be entitled to, such reasonable compensation (which shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust), as the Company and the Trustee may from time to time agree in writing,
for all services rendered by it in the execution of the trusts hereby created
and in the exercise and performance of any of the powers and duties hereunder of
the Trustee, and, except as otherwise expressly provided herein, the Company
shall pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except to the extent any such expense, disbursement or

                                       37
<PAGE>

advance arises from the Trustee's own negligence or bad faith. The Company also
covenants and agrees to indemnify each of the Bank and the Trustee (and its
officers, agents, directors and employees) (each, a "Fiduciary Indemnified
Person") for, and to hold each Fiduciary Indemnified Person harmless against,
any loss, liability or expense incurred by such Fiduciary Indemnified Person and
arising out of or in connection with the acceptance or administration of this
Indenture, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
rights, powers or duties hereunder, except to the extent such amount is
attributable to such Fiduciary Indemnified Person's own negligence or bad faith.

     (b)  The Company covenants and agrees to advance expenses (including legal
fees) incurred by a Fiduciary Indemnified Person in defending any claim, demand,
action, suit or proceeding, from time to time, prior to the final disposition of
such claim, demand, action, suit or proceeding, upon receipt by the Depositor of
an undertaking by or on behalf of such Fiduciary Indemnified Person to repay
such amount if it shall be determined that such Fiduciary Indemnified Person is
not entitled to be indemnified as authorized in this subsection.

     (c) The obligations of the Company under this Section 9.7 shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be secured
by a lien prior to that of the Debentures upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the holders of particular Debentures.  The provisions of this Section 9.7 shall
survive the termination of this Indenture and shall survive the resignation or
removal of the Trustee.

     Section 9.8. Reliance on Officers' Certificate. Except as otherwise
                  ---------------------------------
provided in Section 9.1, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting to take any
action hereunder, such matter (unless other evidence in respect thereof is
herein specifically prescribed) may, in the absence of negligence or bad faith
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers' Certificate delivered to the Trustee, and such certificate, in
the absence of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted to be taken by
it under the provisions of this Indenture upon the faith thereof.

     Section 9.9. Disqualification; Conflicting Interests. If the Trustee has or
                  ---------------------------------------
shall acquire any "conflicting interest" within the meaning of Section 310(b) of
the Trust Indenture Act, the Trustee and the Company shall in all respects
comply with the provisions of Section 310(b) of the Trust Indenture Act.

     Section 9.10. Corporate Trustee Required; Eligibility. There shall at all
                   ---------------------------------------
times be a Trustee with respect to the Debentures issued hereunder which shall
at all times be a corporation organized and doing business under the laws of the
United States or any state or territory thereof or of the District of Columbia,
or a corporation or other Person permitted to act as trustee by the Commission,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000, and subject to supervision or
examination by federal, state, territorial or District of Columbia authority. If
such Person publishes reports of condition at

                                       38
<PAGE>

least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 9.10,
the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by or under common control with the Company, serve as
Trustee. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 9.10, the Trustee shall resign
immediately in the manner and with the effect specified in Section 9.11.

     Section 9.11. Resignation and Removal; Appointment of Successor.
                   -------------------------------------------------

     (a) The Trustee or any successor hereafter appointed, may at any time
resign by giving written notice thereof to the Company and by transmitting
notice of resignation by mail, first class postage prepaid, to the
Debentureholders, as their names and addresses appear upon the Debenture
Register. Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee with respect to Debentures by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment within thirty (30) days after the mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to
Debentures, or any Debentureholder who has been a bona fide holder of a
Debenture or Debentures for at least six (6) months may, subject to the
provisions of Sections 9.9 and 9.10, on behalf of himself or herself and all
others similarly situated, petition any such court for the appointment of a
successor trustee. Such court may thereupon after such notice, if any, as it may
deem proper and prescribe, appoint a successor trustee.

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

         (i)   the Trustee shall fail to comply with the provisions of Section
     9.9 after written request therefor by the Company or by any Debentureholder
     who has been a bona fide holder of a Debenture or Debentures for at least
     six (6) months; or

         (ii)  the Trustee shall cease to be eligible in accordance with the
     provisions of Section 9.10 and shall fail to resign after written request
     therefor by the Company or by any such Debentureholder; or

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

     then, in any such case, the Company may remove the Trustee with respect to
     all Debentures and appoint a successor trustee by written instrument, in
     duplicate, executed by order of the Board of Directors, one copy of which
     instrument shall be delivered to the

                                       39
<PAGE>

     Trustee so removed and one copy to the successor trustee, or, subject to
     the provisions of Section 9.10, unless the Trustee's duty to resign is
     stayed as provided herein, any Debentureholder who has been a bona fide
     holder of a Debenture or Debentures for at least six (6) months may, on
     behalf of that holder and all other holders similarly situated, petition
     any court of competent jurisdiction for the removal of the Trustee and the
     appointment of a successor trustee. Such court may thereupon after such
     notice, if any, as it may deem proper and prescribe, remove the Trustee and
     appoint a successor trustee.

     (c) The holders of at least a majority in aggregate principal amount of the
Debentures at the time Outstanding may at any time remove the Trustee by so
notifying the Trustee and the Company and may appoint a successor Trustee with
the consent of the Company.

     (d) Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Debentures pursuant to any of the
provisions of this Section 9.11 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 9.12.

     (e) Any successor trustee appointed pursuant to this Section 9.11 may be
appointed with respect to the Debentures, and at any time there shall be only
one Trustee with respect to the Debentures.

     Section 9.12. Acceptance of Appointment by Successor.
                   --------------------------------------

     (a) In case of the appointment hereunder of a successor trustee with
respect to the Debentures, every successor trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; provided, however, that on
the request of the Company or the successor Trustee, such retiring Trustee
shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

     (b) Upon request of any successor Trustee, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Trustee all such rights, powers and trusts referred to in Section
9.12(a).

     (c) No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article IX.

     (d) Upon acceptance of appointment by a successor Trustee as provided in
this Section 9.12, the Company shall transmit notice of the succession of such
Trustee hereunder by mail, first class postage prepaid, to the Debentureholders,
as their names and addresses appear upon the Debenture Register. If the Company
fails to transmit such notice within ten (10) days

                                       40
<PAGE>

after acceptance of appointment by the successor Trustee, the successor Trustee
shall cause such notice to be transmitted at the expense of the Company.

     Section 9.13. Merger, Conversion, Consolidation or Succession to Business.
                   -----------------------------------------------------------
Any Person into which the Trustee may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding to
all or substantially all the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder; provided that such Person shall be
qualified under the provisions of Section 9.9 and eligible under the provisions
of Section 9.10, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Debentures shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Debentures so authenticated with the same effect as if such
successor Trustee had itself authenticated such Debentures.

     Section 9.14. Preferential Collection of Claims against the Company. The
                   -----------------------------------------------------
Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding
any creditor relationship described in Section 311(b) of the Trust Indenture
Act. A Trustee who has resigned or been removed shall be subject to Section
311(a) of the Trust Indenture Act to the extent included therein.

                                  ARTICLE X.
                        CONCERNING THE DEBENTUREHOLDERS

     Section 10.1. Evidence of Action by the Holders.
                   ---------------------------------

     (a) Whenever in this Indenture it is provided that the holders of not less
than a majority or specified percentage in aggregate principal amount of the
Debentures may take any action (including the making of any demand or request,
the giving of any notice, consent or waiver or the taking of any other action),
the fact that at the time of taking any such action the holders of such majority
or specified percentage have joined therein may be evidenced by any instrument
or any number of instruments of similar tenor executed by such holders of
Debentures in person or by agent or proxy appointed in writing.

     (b) If the Company shall solicit from the Debentureholders any request,
demand, authorization, direction, notice, consent, waiver or other action, then
the Company may, at its option, as evidenced by an Officers' Certificate, fix in
advance a record date for the determination of Debentureholders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other
action, but the Company shall have no obligation to do so. If such a record date
is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other action may be given before or after the record date, but only
the Debentureholders of record at the close of business on the record date shall
be deemed to be Debentureholders for purposes of determining whether
Debentureholders of the requisite proportion of Outstanding Debentures have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the

                                       41
<PAGE>

Outstanding Debentures shall be computed as of the record date; provided,
however, that no such authorization, agreement or consent by such
Debentureholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six
(6) months after the record date.

     Section 10.2. Proof of Execution by the Debentureholders. Subject to the
                   ------------------------------------------
provisions of Section 9.1, proof of the execution of any instrument by a
Debentureholder (such proof shall not require notarization) or such
Debentureholder's agent or proxy and proof of the holding by any Person of any
of the Debentures shall be sufficient if made in the following manner:

     (a) The fact and date of the execution by any such Person of any instrument
may be proved in any reasonable manner acceptable to the Trustee.

     (b) The ownership of Debentures shall be proved by the Debenture Register
of such Debentures or by a certificate of the Debenture Registrar thereof.

     (c) The Trustee may require such additional proof of any matter referred to
in this Section 10.2 as it shall deem necessary.

     Section 10.3. Who May Be Deemed Owners. Prior to the due presentment for
                   ------------------------
registration of transfer of any Debenture, the Company, the Trustee, any Paying
Agent, any Authenticating Agent and any Debenture Registrar may deem and treat
the Person in whose name such Debenture shall be registered upon the books of
the Company as the absolute owner of such Debenture (whether or not such
Debenture shall be overdue and notwithstanding any notice of ownership or
writing thereon made by anyone other than the Debenture Registrar) for the
purpose of receiving payment of or on account of the principal of and interest
on such Debenture (subject to Section 2.3) and for all other purposes, and
neither the Company, nor the Trustee, nor any Paying Agent, nor any
Authenticating Agent, nor any Debenture Registrar shall be affected by any
notice to the contrary.

     Section 10.4. Certain Debentures Owned by Company Disregarded. In
                   -----------------------------------------------
determining whether the holders of the requisite aggregate principal amount of
the Debentures have concurred in any direction, consent or waiver under this
Indenture, the Debentures that are owned by the Company or any other obligor on
the Debentures or by any Person directly or indirectly controlling, controlled
by or under common control with the Company or any other obligor on the
Debentures shall be disregarded and deemed not to be Outstanding for the purpose
of any such determination, except that (a) for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, consent
or waiver, only Debentures that a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded; and (b) for purposes of this Section
10.4, the Trust shall be deemed not to be controlled by the Company. The
Debentures so owned that have been pledged in good faith may be regarded as
Outstanding for purposes of this Section 10.4, if the pledgee shall establish to
the satisfaction of the Trustee such pledgee's right so to act with respect to
such Debentures and that such pledgee is not a Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Company or any such other obligor. In case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee.

                                       42
<PAGE>

     Section 10.5. Actions Binding on the Future Debentureholders. At any time
                   ----------------------------------------------
prior to (but not after) the evidencing to the Trustee, as provided in Section
10.1, of the taking of any action by the holders of not less than a majority or
other percentage in aggregate principal amount of the Debentures specified in
this Indenture in connection with such action, any holder of a Debenture that is
shown by the evidence to be included in the Debentures the holders of which have
consented to such action may, by filing written notice with the Trustee, and
upon proof of holding as provided in Section 10.2, revoke such action so far as
concerns such Debenture. Except as aforesaid, any such action taken by the
holder of any Debenture shall be conclusive and binding upon such holder and
upon all future holders and owners of such Debenture, and of any Debenture
issued in exchange therefor, on registration of transfer thereof or in place
thereof, irrespective of whether or not any notation in regard thereto is made
upon such Debenture. Any action taken by the holders of not less than a majority
or other percentage in aggregate principal amount of the Debentures specified in
this Indenture in connection with such action shall be conclusively binding upon
the Company, the Trustee and the holders of all the Debentures.

                                  ARTICLE XI.
                            SUPPLEMENTAL INDENTURES

     Section 11.1. Supplemental Indentures without the Consent of the
                   --------------------------------------------------
Debentureholders. In addition to any supplemental indenture otherwise authorized
----------------
by this Indenture, the Company and the Trustee may from time to time and at any
time enter into an indenture or indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as then in effect), without
the consent of the Debentureholders, for one or more of the following purposes:

     (a)  to cure any ambiguity, defect or inconsistency herein, or in the
Debentures;

     (b)  to comply with Article X;

     (c)  to provide for uncertificated Debentures in addition to or in place of
certificated Debentures;

     (d)  to add to the covenants of the Company for the benefit of the holders
of all or any of the Debentures or to surrender any right or power herein
conferred upon the Company;

     (e)  to add to, delete from or revise the conditions, limitations and
restrictions on the authorized amount, terms or purposes of issue,
authentication and delivery of Debentures, as herein set forth;

     (f)  to make any change that does not adversely affect the rights of any
Debentureholder in any material respect;

     (g)  to provide for the issuance of and establish the form and terms and
conditions of the Debentures, to establish the form of any certifications
required to be furnished pursuant to the

                                       43
<PAGE>

terms of this Indenture or of the Debentures, or to add to the rights of the
holders of the Debentures;

     (h)  to qualify or maintain the qualification of this Indenture under the
Trust Indenture Act; or

     (i)  to evidence a consolidation or merger involving the Company as
permitted under Section 12.1.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into any such supplemental indenture that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise
(and no such supplemental indenture shall be binding on the Trustee unless
executed by the Trustee).  Any supplemental indenture authorized by the
provisions of this Section 11.1 may be executed by the Company and the Trustee
without the consent of the holders of any of the Debentures at the time
Outstanding, notwithstanding any of the provisions of Section 11.2.

     Section 11.2. Supplemental Indentures with Consent of the Debentureholders.
                   ------------------------------------------------------------
With the consent (evidenced as provided in Section 10.1) of the holders of not
less than a majority in aggregate principal amount of the Debentures at the time
Outstanding, the Company, when authorized by Board Resolutions, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by
Section 11.1 the rights of the holders of the Debentures under this Indenture;
provided, however, that no such supplemental indenture shall without the consent
of the holders of each Debenture then Outstanding and affected thereby, (a)
extend the fixed maturity of any Debentures, reduce the principal amount
thereof, reduce the rate or extend the time of payment of interest thereon, or
limit the right of a holder of Preferred Securities to institute and prosecute a
Direct Action; or (b) reduce the aforesaid percentage of Debentures, the holders
of which are required to consent to any such supplemental indenture; provided
further, however, that if the Debentures are held by the Trust or a trustee of
the Trust, such supplemental indenture shall not be effective until the holders
of not less than a majority in liquidation preference of Trust Securities of the
Trust shall have consented to such supplemental indenture; and provided further,
however, that if the Debentures are held by the Trust or a trustee of the Trust
and if the consent of the holder of each Outstanding Debenture is required, such
supplemental indenture shall not be effective until each holder of the Trust
Securities of the Trust shall have consented to such supplemental indenture. It
shall not be necessary for the consent of the Debentureholders affected thereby
under this Section 11.2 to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such consent shall approve
the substance thereof.

     Section 11.3. Effect of Supplemental Indentures. Upon the execution of any
                   ---------------------------------
supplemental indenture pursuant to the provisions of this Article XI, this
Indenture shall be and

                                       44
<PAGE>

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

     Section 11.4. The Debentures Affected by Supplemental Indentures. The
                   --------------------------------------------------
Debentures affected by a supplemental indenture, authenticated and delivered
after the execution of such supplemental indenture pursuant to the provisions of
this Article XI, may bear a notation in form approved by the Company, provided
such form meets the requirements of any exchange upon which the Debentures may
be listed, as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Debentures so modified as to conform, in the
opinion of the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Debentures then
Outstanding.

     Section 11.5. Execution of Supplemental Indentures.
                   ------------------------------------

     (a)  Upon the request of the Company, accompanied by its Board Resolutions
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of the Debentureholders
required to consent thereto as aforesaid, the Trustee shall join with the
Company in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture. The Trustee,
subject to the provisions of Sections 9.1, may receive an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article XI is authorized or permitted by, and conforms to, the terms of this
Article XI and that it is proper for the Trustee under the provisions of this
Article XI to join in the execution thereof.

     (b)  Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 11.5, the
Trustee shall transmit by mail, first class postage prepaid, a notice, setting
forth in general terms the substance of such supplemental indenture, to the
Debentureholders as their names and addresses appear upon the Debenture
Register. Any failure of the Trustee to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

                                 ARTICLE XII.
                             SUCCESSOR CORPORATION

   Section 12.1. The Company May Consolidate, Etc. Nothing contained in this
                 --------------------------------
Indenture or in any of the Debentures shall prevent any consolidation or merger
of the Company with or into any other corporation or corporations (whether or
not affiliated with the Company, as the case may be), or successive
consolidations or mergers in which the Company, as the case may be, or its
successor or successors shall be a party or parties, or shall prevent any sale,

                                       45
<PAGE>

conveyance, transfer or other disposition of the property of the Company, as the
case may be, or its successor or successors as an entirety, or substantially as
an entirety, to any other corporation (whether or not affiliated with the
Company, as the case may be, or its successor or successors) authorized to
acquire and operate the same; provided, however, that the Company hereby
covenants and agrees that (a) upon any such consolidation, merger, sale,
conveyance, transfer or other disposition, the due and punctual payment, in the
case of the Company, of the principal of and interest on all of the Debentures,
according to their tenor and the due and punctual performance and observance of
all the covenants and conditions of this Indenture to be kept or performed by
the Company, as the case may be, shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act, as
then in effect) satisfactory in form to the Trustee executed and delivered to
the Trustee by the entity formed by such consolidation, or into which the
Company, as the case may be, shall have been merged, or by the entity which
shall have acquired such property; (b) in case the Company consolidates with or
merges into another Person or conveys or transfers its properties and assets
substantially as an entirety to any Person, the successor Person is organized
under the laws of the United States or any state or the District of Columbia;
and (c) immediately after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing.

     Section 12.2. Successor Corporation Substituted.
                   ---------------------------------

     (a)  In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition and upon the assumption by the successor corporation, by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of, in the case of the Company, the due and punctual
payment of the principal of and interest on all of the Debentures Outstanding
and the due and punctual performance of all of the covenants and conditions of
this Indenture to be performed by the Company, as the case may be, such
successor corporation shall succeed to and be substituted for the Company, with
the same effect as if it had been named as the Company herein, and thereupon the
predecessor corporation shall be relieved of all obligations and covenants under
this Indenture and the Debentures.

     (b)  In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition, such changes in phraseology and form (but not in
substance) may be made in the Debentures thereafter to be issued as may be
appropriate.

     (c)  Nothing contained in this Indenture or in any of the Debentures shall
prevent the Company from merging into itself or acquiring by purchase or
otherwise, all or any part of, the property of any other Person (whether or not
affiliated with the Company).

     Section 12.3. Evidence of Consolidation, Etc. to Trustee. The Trustee,
                   ------------------------------------------
subject to the provisions of Section 9.1, may receive an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale, conveyance,
transfer or other disposition, and any such assumption, comply with the
provisions of this Article XII.

                                       46
<PAGE>

                                 ARTICLE XIII.
                          SATISFACTION AND DISCHARGE

     Section 13.1. Satisfaction and Discharge of Indenture. If at any time: (a)
                   ---------------------------------------
the Company shall have delivered to the Trustee for cancellation all Debentures
theretofore authenticated (other than any Debentures that shall have been
destroyed, lost or stolen and that shall have been replaced or paid as provided
in Section 2.8) and all Debentures for whose payment money or Governmental
Obligations have theretofore been deposited in trust or segregated and held in
trust by the Company (and thereupon repaid to the Company or discharged from
such trust, as provided in Section 13.5); or (b) all such Debentures not
theretofore delivered to the Trustee for cancellation shall have become due and
payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and the Company shall
deposit or cause to be deposited with the Trustee as trust funds the entire
amount in moneys or Governmental Obligations sufficient, or a combination
thereof sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Debentures
not theretofore delivered to the Trustee for cancellation, including principal
and interest due or to become due on such date of maturity or date fixed for
redemption, as the case may be, and if the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall
thereupon cease to be of further effect except for the provisions of Sections
2.3, 2.6, 2.8, 5.1, 5.2, 5.3 and 9.10, which shall survive until the date of
maturity or redemption date, as the case may be, and Sections 9.7 and 13.5,
which shall survive to such date and thereafter, and the Trustee, on demand of
the Company and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture.

     Section 13.2. Discharge of Obligations. If at any time all Debentures not
                   ------------------------
heretofore delivered to the Trustee for cancellation or that have not become due
and payable as described in Section 13.1 shall have been paid by the Company by
depositing irrevocably with the Trustee as trust funds moneys or an amount of
Governmental Obligations sufficient in the opinion of a nationally recognized
certified public accounting firm to pay at maturity or upon redemption all
Debentures not theretofore delivered to the Trustee for cancellation, including
principal and interest due or to become due to such date of maturity or date
fixed for redemption, as the case may be, and if the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then after the
date such moneys or Governmental Obligations, as the case may be, are deposited
with the Trustee, the obligations of the Company under this Indenture shall
cease to be of further effect except for the provisions of Sections 2.3, 2.6,
2.8, 5.1, 5.2 and 5.3, which shall survive until such Debentures shall mature
and be paid, and Sections 9.7 and 13.5, which shall survive to such date and
thereafter.

     Section 13.3. Deposited Moneys to Be Held in Trust. All monies or
                   ------------------------------------
Governmental Obligations deposited with the Trustee pursuant to Sections 13.1 or
13.2 shall be held in trust and shall be available for payment as due, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent), to the holders of the Debentures for the payment or

                                       47
<PAGE>

redemption of which such moneys or Governmental Obligations have been deposited
with the Trustee.

     Section 13.4. Payment of Monies Held by Paying Agents. In connection with
                   ---------------------------------------
the satisfaction and discharge of this Indenture, all moneys or Governmental
Obligations then held by any Paying Agent under the provisions of this Indenture
shall, upon demand of the Company, be paid to the Trustee and thereupon such
Paying Agent shall be released from all further liability with respect to such
moneys or Governmental Obligations.

     Section 13.5. Repayment to the Company. Any monies or Governmental
                   ------------------------
Obligations deposited with any Paying Agent or the Trustee, or then held by the
Company in trust, for payment of principal of or interest on the Debentures that
are not applied but remain unclaimed by the holders of such Debentures for at
least two years after the date upon which the principal of or interest on such
Debentures shall have respectively become due and payable, shall be repaid to
the Company, as the case may be, on September 30 of each year or (if then held
by the Company) shall be discharged from such trust; and thereupon the Paying
Agent and the Trustee shall be released from all further liability with respect
to such moneys or Governmental Obligations, and the holder of any of the
Debentures entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof.

                                 ARTICLE XIV.
                   IMMUNITY OF INCORPORATORS, SHAREHOLDERS,
                            OFFICERS AND DIRECTORS

     Section 14.1. No Recourse. No recourse under or upon any obligation,
                   -----------
covenant or agreement of this Indenture, or of the Debentures, or for any claim
based thereon or otherwise in respect thereof, shall be had against any
incorporator, shareholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, either
directly or through the Company or any such predecessor or successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise, it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations, and that no such personal liability whatever, shall
attach to, or is or shall be incurred by, the incorporators, shareholders,
officers or directors as such, of the Company or of any predecessor or successor
corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements
contained in this Indenture or in any of the Debentures or implied therefrom,
and any and all such personal liability of every name and nature, either at
common law or in equity or by constitution or statute, and any and all such
rights and claims against, every such incorporator, shareholder, officer or
director as such, because of the creation of the indebtedness hereby authorized,
or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any of the Debentures or implied therefrom, are hereby
expressly waived and released as a condition of, and as a consideration for, the
execution of this Indenture and the issuance of such Debentures.

                                       48
<PAGE>

                                  ARTICLE XV.
                           MISCELLANEOUS PROVISIONS

     Section 15.1. Effect on Successors and Assigns. All the covenants,
                   --------------------------------
stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its respective successors and assigns, whether
so expressed or not.

     Section 15.2. Actions by Successor. Any act or proceeding by any provision
                   --------------------
of this Indenture authorized or required to be done or performed by any board,
committee or officer of the Company shall and may be done and performed with
like force and effect by the corresponding board, committee or officer of any
corporation that shall at the time be the lawful sole successor of the Company.

     Section 15.3. Surrender of the Company Powers. The Company by instrument in
                   -------------------------------
writing executed by appropriate authority of its Board of Directors and
delivered to the Trustee may surrender any of the powers reserved to the
Company, and thereupon such power so surrendered shall terminate both as to the
Company, as the case may be, and as to any successor corporation.

     Section 15.4. Notices. Except as otherwise expressly provided herein any
                   -------
notice or demand that by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Debentures
to or on the Company may be given or served by being deposited first class
postage prepaid in a post-office letterbox addressed (until another address is
filed in writing by the Company with the Trustee), as follows: c/o ABC Bancorp,
24 2/nd/ Avenue, S.E., Moultrie, Georgia 31768, Attention: Chairman and Chief
Executive Officer. Any notice, election, request or demand by the Company or any
Debentureholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the Corporate
Trust Office of the Trustee.

     Section 15.5. Governing Law. This Indenture and each Debenture shall be
                   -------------
deemed to be a contract made under the internal laws of the State of Delaware
and for all purposes shall be construed in accordance with the laws thereof.

     Section 15.6. Treatment of the Debentures as Debt. It is intended that the
                   -----------------------------------
Debentures shall be treated as indebtedness and not as equity for federal income
tax purposes. The provisions of this Indenture shall be interpreted to further
this intention. The Company (with respect to its separate books and records),
the Trustee and, by acceptance of a Debenture, each holder of a Debenture, agree
to treat the Debentures as indebtedness of the Company and not as equity for all
tax (including federal income tax) and financial accounting purposes.

     Section 15.7. Compliance Certificates and Opinions.
                   ------------------------------------

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

                                       49
<PAGE>

opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     (b)  Each certificate or opinion of the Company provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant in this Indenture shall include (i) a statement that the
Person making such certificate or opinion has read such covenant or condition;
(ii) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based; (iii) a statement that, in the opinion of such
Person, he or she has made such examination or investigation as, in the opinion
of such Person, is necessary to enable him or her to express an informed opinion
as to whether or not such covenant or condition has been complied with; and (iv)
a statement as to whether or not, in the opinion of such Person, such condition
or covenant has been complied with; provided, however, that each such
certificate shall comply with the provisions of Section 314 of the Trust
Indenture Act.

     Section 15.8.  Payments on Business Days.  In any case where the date of
                    -------------------------
maturity of interest or principal of any Debenture or the date of redemption of
any Debenture shall not be a Business Day, then payment of interest or principal
may (subject to Section 2.4(b)) be made on the next succeeding Business Day with
the same force and effect as if made on the nominal date of maturity or
redemption, and no interest shall accrue for the period after such nominal date.

     Section 15.9.  Conflict with Trust Indenture Act.  If and to the extent
                    ---------------------------------
that any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act,
such imposed duties shall control.

     Section 15.10. Counterparts. This Indenture may be executed in any number
                    ------------
of counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.  Executed counterparts may
be delivered via facsimile transmission if promptly followed by delivery of a
hard copy signature page.

     Section 15.11. Separability. In case any one or more of the provisions
                    ------------
contained in this Indenture or in the Debentures shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Indenture or
of the Debentures, but this Indenture and the Debentures shall be construed as
if such invalid or illegal or unenforceable provision had never been contained
herein or therein.

     Section 15.12. Assignment. The Company shall have the right at all times to
                    ----------
assign any of its respective rights or obligations under this Indenture to a
direct or indirect wholly owned Subsidiary of the Company; provided, however,
that, in the event of any such assignment, the Company shall remain liable for
all such obligations. Subject to the foregoing, this Indenture is binding upon
and inures to the benefit of the parties thereto and their respective successors
and assigns. This Indenture may not otherwise be assigned by the parties
thereto.

                                       50
<PAGE>

     Section 15.13. Acknowledgment of Rights; Right of Setoff.
                    -----------------------------------------

     (a)  The Company acknowledges that, with respect to any Debentures held by
the Trust or a trustee of the Trust, if the Property Trustee fails to enforce
its rights under this Indenture as the holder of the Debentures held as the
assets of the Trust, any holder of Preferred Securities may institute legal
proceedings directly against the Company to enforce such Property Trustee's
rights under this Indenture without first instituting any legal proceedings
against such Property Trustee or any other person or entity. Notwithstanding the
foregoing, and notwithstanding the provisions of Section 7.4(a) hereof, if an
Event of Default has occurred and is continuing and such event is attributable
to the failure of the Company to pay principal or interest on the Debentures on
the date such principal or interest is otherwise payable (or in the case of
redemption, on the redemption date), then the Company acknowledges that a holder
of Preferred Securities may directly institute a proceeding for enforcement of
payment to such holder of the principal of or interest on the Debentures having
a principal amount equal to the aggregate liquidation amount of the Preferred
Securities of such holder on or after the respective due date specified in the
Debentures.

     (b)  Notwithstanding anything to the contrary contained in this Indenture,
the Company shall have the right to setoff any payment it is otherwise required
to make hereunder in respect of any Trust Securities to the extent that the
Company has previously made, or is concurrently making, a payment to the holder
of such Trust Securities under the Preferred Securities Guarantee or in
connection with a proceeding for enforcement of payment of the principal of or
interest on the Debentures directly brought by holders of any Trust Securities.

     Section 15.14. Interpretation.
                    --------------

     (a)  When a reference is made in this Indenture to a section or article,
such reference shall be to a section or article of this Indenture unless
otherwise clearly indicated to the contrary.

     (b)  Whenever the words "include", "includes" or "including" are used in
this Indenture, they shall be deemed to be followed by the words "without
limitation."

     (c)  The meaning assigned to each term defined herein shall be equally
applicable to both the singular and the plural forms of such term, and words
denoting any gender shall include all genders. Where a word or phrase is defined
herein, each of its other grammatical forms shall have a corresponding meaning.

     (d)  A reference to any party to this Indenture or any other agreement or
document shall include such party's successors and permitted assigns.

     (e)  A reference to any statute or to any provision of any statute shall
include any amendment to, and any modification or re-enactment thereof, and all
regulations and statutory instruments issued thereunder or pursuant thereto.

                                       51
<PAGE>

                                 ARTICLE XVI.
                        SUBORDINATION OF THE DEBENTURES

     Section 16.1. Agreement to Subordinate. The Company covenants and agrees,
                   ------------------------
and each holder of the Debentures issued hereunder by such holder's acceptance
thereof likewise covenants and agrees, that all the Debentures shall be issued
subject to the provisions of this Article XVI, and each holder of a Debenture,
whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions. The payment by the Company of the
principal of and interest on all the Debentures issued hereunder shall, to the
extent and in the manner hereinafter set forth, be subordinated and junior in
right of payment to the prior payment in full of all Senior Debt, Subordinated
Debt and Additional Senior Obligations of the Company (collectively, "Senior
Indebtedness") to the extent provided herein, whether outstanding at the date of
this Indenture or thereafter incurred. No provision of this Article XVI shall
prevent the occurrence of any default or Event of Default hereunder.

     Section 16.2. Default on Senior Indebtedness. Upon the occurrence and any
                   ------------------------------
continuation of any default by the Company in the payment of principal, premium,
interest or any other payment due on any Senior Indebtedness, or in the event
that the maturity of any Senior Indebtedness has been accelerated because of
such a default, or in the event of the commencement of a judicial proceeding
with regard to such an alleged default or event of default, then, in any case,
no payment shall be made by the Company with respect to the principal (including
redemption payments) of or interest on the Debentures. In the event that,
notwithstanding the foregoing, any payment shall be received by the Trustee when
such payment is prohibited by the preceding sentence of this Section 16.2, such
payment shall be held in trust for the benefit of, and shall be paid over or
delivered to, the holders of Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Indebtedness may have been issued, as their respective
interests may appear, but only to the extent that the holders of the Senior
Indebtedness (or their representative or representatives or a trustee) notify
the Trustee in writing within 90 days prior to the Trustee's receipt of such
payment of the amounts then due and owing on the Senior Indebtedness and only
the amounts specified in such notice to the Trustee shall be paid to the holders
of the Senior Indebtedness.

     Section 16.3. Liquidation; Dissolution; Bankruptcy
                   ------------------------------------

     (a)  Upon any payment by the Company or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution, winding-up, liquidation or reorganization of the
Company, whether voluntary or involuntary, or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due upon all Senior Indebtedness
shall first be paid in full, or payment thereof provided for in money in
accordance with its terms, before any payment is made by the Company on account
of the principal or interest on the Debentures.  Upon any such dissolution,
winding-up, liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, to which the holders of the Debentures or the Trustee
would be entitled to receive from the Company, except for the provisions of this
Article XVI, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating

                                       52
<PAGE>

trustee, agent or other Person making such payment or distribution, or by the
holders of the Debentures or by the Trustee under this Indenture if received by
them or it, directly to the holders of Senior Indebtedness (pro rata to such
holders on the basis of the respective amounts of Senior Indebtedness held by
such holders, as calculated by the Company) or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Senior Indebtedness may have been issued,
as their respective interests may appear, to the extent necessary to pay such
Senior Indebtedness in full, in money or money's worth, after giving effect to
any concurrent payment or distribution to or for the holders of such Senior
Indebtedness, before any payment or distribution is made to the holders of the
Debentures or to the Trustee.

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

     (c)  For purposes of this Article XVI, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article XVI with respect
to the Debentures to the payment of all Senior Indebtedness, as the case may be,
that may at the time be outstanding, provided that (i) such Senior Indebtedness
is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment; and (ii) the rights of the holders of such
Senior Indebtedness are not, without the consent of such holders, altered by
such reorganization or readjustment. The consolidation of the Company with, or
the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article XII shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 16.3 if such other corporation shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Article
XII. Nothing in Section 16.2 or in this Section 16.3 shall apply to claims of,
or payments to, the Trustee or any other Fiduciary Indemnified Person under or
pursuant to Section 9.7.

     Section 16.4. Subrogation.
                   -----------

     (a)  Subject to the payment in full of all Senior Indebtedness, the rights
of the holders of the Debentures shall be subrogated to the rights of the
holders of such Senior Indebtedness to

                                       53
<PAGE>

receive payments or distributions of cash, property or securities of the
Company, as the case may be, applicable to such Senior Indebtedness until the
principal of and interest on the Debentures shall be paid in full. For the
purposes of such subrogation, no payments or distributions to the holders of
such Senior Indebtedness of any cash, property or securities to which the
holders of the Debentures or the Trustee would be entitled except for the
provisions of this Article XVI, and no payment over pursuant to the provisions
of this Article XVI to or for the benefit of the holders of such Senior
Indebtedness by holders of the Debentures or the Trustee, shall, as between the
Company, its creditors (other than holders of Senior Indebtedness of the
Company), and the holders of the Debentures, be deemed to be a payment by the
Company to or on account of such Senior Indebtedness. It is understood that the
provisions of this Article XVI are and are intended solely for the purposes of
defining the relative rights of the holders of the Debentures, on the one hand,
and the holders of such Senior Indebtedness, on the other hand.

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

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

     Section 16.5. The Trustee to Effectuate Subordination. Each holder of
                   ---------------------------------------
Debentures, by such holder's acceptance thereof, authorizes and directs the
Trustee on such holder's behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article XVI and
appoints the Trustee such holder's attorney-in-fact for any and all such
purposes.

                                       54
<PAGE>

     Section 16.6. Notice by the Company.
                   ---------------------

     (a)  The Company shall give prompt written notice to a Responsible Officer
of the Trustee of any fact known to the Company that would prohibit the making
of any payment of monies to or by the Trustee in respect of the Debentures
pursuant to the provisions of this Article XVI. Notwithstanding the provisions
of this Article XVI or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment of monies to or by the Trustee in respect of the
Debentures pursuant to the provisions of this Article XVI, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder or holders of Senior Indebtedness or from any
trustee therefor.  Before the receipt of any such written notice, the Trustee,
subject to the provisions of Section 9.1, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall
not have received the notice provided for in this Section 16.6 at least two
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including the payment of the principal of or
interest on any Debenture), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
money and to apply the same to the purposes for which they were received, and
shall not be affected by any notice to the contrary that may be received by it
within two Business Days prior to such date.

     (b)  The Trustee, subject to the provisions of Section 9.1, shall be
entitled to conclusively rely on the delivery to it of a written notice by a
Person representing himself or herself to be a holder of Senior Indebtedness (or
a trustee on behalf of such holder) to establish that such notice has been given
by a holder of such Senior Indebtedness or a trustee on behalf of any such
holder or holders. In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a holder
of such Senior Indebtedness to participate in any payment or distribution
pursuant to this Article XVI, the Trustee may request that such Person furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of such
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article XVI, and, if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.

     Section 16.7. Rights of the Trustee; Holders of the Senior Indebtedness.
                   ---------------------------------------------------------

     (a)  The Bank in its individual capacity shall be entitled to all the
rights set forth in this Article XVI in respect of any Senior Indebtedness at
any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Bank of any of its
rights as such holder. The Trustee's or any other Indemnified Person's right to
compensation, reimbursement of expenses and indemnification as set forth in
Section 9.7 shall not be subject to the subordination provisions of this Article
XVI.

     (b)  With respect to the holders of the Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article XVI, and no implied covenants or
obligations with respect to the holders of such

                                       55
<PAGE>

Senior Indebtedness shall be read into this Indenture against the Trustee. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of such
Senior Indebtedness and, subject to the provisions of Section 9.1, the Trustee
shall not be liable to any holder of such Senior Indebtedness if it shall pay
over or deliver to holders of Debentures, the Company or any other Person money
or assets to which any holder of such Senior Indebtedness shall be entitled by
virtue of this Article XVI or otherwise.

     Section 16.8. Subordination May not Be Impaired.
                   ---------------------------------

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

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

                            [Signatures Next Page]

                                       56
<PAGE>

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

                                  ABC BANCORP

Attest:

                                  By: ________________________________________
                                  Name: Kenneth J. Hunnicutt
_________________________         Title: Chairman and Chief Executive Officer

                                  WILMINGTON TRUST COMPANY, as Trustee
Attest:

                                  By: ________________________________________
                                  Name:_______________________________________
_________________________         Title:______________________________________

STATE OF GEORGIA    )
                    ) ss
COUNTY OF COLQUITT  )

     On this _____ day of __________, 2001, before me appeared Kenneth J.
Hunnicutt, to me personally known, who, being by me duly sworn, did say that he
is the Chairman and Chief Executive Officer of ABC Bancorp, and that the seal
affixed to said instrument is the corporate seal of said corporation, and that
said instrument was signed and sealed on behalf of said corporation by authority
of its Board of Directors and said Kenneth J. Hunnicutt acknowledged said
instrument to be the free act and deed of said corporation.

     In testimony whereof I have hereunto set my hand and affixed my official
seal at my office in said county and state the day and year last above written.

               ________________________________________
               Notary Public

               My term expires:________________________

                                       57
<PAGE>

STATE OF DELAWARE   )
                    ) ss
COUNTY OF _________ )

     On this _____ day of ___________, 2001, before me appeared
___________________, to me personally known, who, being by me duly sworn, did
say that he is the _____________________ of Wilmington Trust Company, and that
the seal affixed to said instrument is the corporate seal of said corporation,
and that said instrument was signed and sealed on behalf of said corporation by
authority of its Board of Directors and said _____________________________,
acknowledged said instrument to be the free act and deed of said corporation.

     In testimony whereof I have hereunto set my hand and affixed my official
seal at my office in said county and commonwealth the day and year last above
written.

               _______________________________________
               Notary Public

               My term expires:________________________

                                       58
<PAGE>

                                   EXHIBIT A

                          (Form of Face of Debenture)

No. _____                                                           $___________
CUSIP No._____________.

                                  ABC BANCORP

                          __% SUBORDINATED DEBENTURE

                                   DUE 2031

     ABC Bancorp, a Georgia corporation (the "Company," which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Wilmington Trust Company, as Property
Trustee for ABC Bancorp Capital Trust I, or registered assigns, the principal
sum of __________ ($__________) on September 30, 2031 (the "Stated Maturity"),
and to pay interest on said principal sum from September 30, 2001, or from the
most recent interest payment date (each such date, an "Interest Payment Date")
to which interest has been paid or duly provided for, quarterly (subject to
deferral as set forth herein) in arrears on March 31, June 30, September 30 and
December 31 of each year commencing December 31, 2001, at the rate of __% per
annum until the principal hereof shall have become due and payable, and on any
overdue principal and (without duplication and to the extent that payment of
such interest is enforceable under applicable law) on any overdue installment of
interest at the same rate per annum compounded quarterly. The amount of interest
payable on any Interest Payment Date shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. The amount of interest for any partial
period shall be computed on the basis of the number of days elapsed in a 360-day
year consisting of twelve 30-day months. In the event that any date on which
interest is payable on this Debenture is not a business day, then payment of
interest payable on such date shall 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, payment of such interest will be made on the immediately preceding
business day, in each case, with the same force and effect as if made on such
date. The interest installment so payable, and punctually paid or duly provided
for, on any Interest Payment Date shall, as provided in the Indenture, be paid
to the person in whose name this Debenture (or one or more Predecessor
Debentures, as defined in said Indenture) is registered at the close of business
on the regular record date for such interest installment, which shall be the
close of business on the business day next preceding such Interest Payment Date
unless otherwise provided in the Indenture. Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
registered holders on such regular record date and may be paid to the Person in
whose name this Debenture (or one or more Predecessor Debentures) is registered
at the close of business on a special record date to be fixed by the Trustee for
the payment of such defaulted interest, notice thereof shall be fixed by the
Trustee for the payment of such defaulted interest, notice thereof shall be
given to the registered holders of the Debentures not less than 10 days prior to
such special record date, or may be paid at any time in any other lawful manner
not
<PAGE>

inconsistent with the requirements of any securities exchange or quotation
system on or in which the Debentures may be listed or quoted, and upon such
notice as may be required by such exchange, all as more fully provided in the
Indenture. The principal of and the interest on this Debenture shall be payable
at the office or agency of the Trustee maintained for that purpose in any coin
or currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
registered holder at such address as shall appear in the Debenture Register.
Notwithstanding the foregoing, so long as the holder of this Debenture is the
Property Trustee, the payment of the principal of and interest on this Debenture
shall be made at such place and to such account as may be designated by the
Trustee.

     The Stated Maturity may be shortened at any time by the Company to any date
not earlier than September 30, 2006, subject to the Company having received
prior approval of the Federal Reserve if then required under applicable capital
guidelines, policies or regulations of the Federal Reserve.

     The indebtedness evidenced by this Debenture is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness (as defined in the Indenture). This Debenture
is issued subject to the provisions of the Indenture with respect thereto. Each
holder of this Debenture, by accepting the same, (a) agrees to and shall be
bound by such provisions; (b) authorizes and directs the Trustee on his or her
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided; and (c) appoints the Trustee his or
her attorney-in-fact for any and all such purposes. Each holder hereof, by his
or her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.

     This Debenture shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

     The provisions of this Debenture are continued on the reverse side hereof
and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place.

                            [Signatures Next Page]

                                      A-2
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed.
Dated: _________  __, 2001

                                     ABC BANCORP

                                     By: _______________________________________
                                     Name: Kenneth J. Hunnicutt
                                     Title: Chairman and Chief Executive Officer
Attest:

By: ______________________________
   Name: _________________________
   Title: ________________________

                                      A-3
<PAGE>

                    [Form of Certificate of Authentication]
                         CERTIFICATE OF AUTHENTICATION

     This is one of the Debentures described in the within-mentioned Indenture.
Dated: ______________, 2001

Wilmington Trust Company,
not in its individual capacity
but solely as Trustee

By: _______________________________
     Authorized Signatory

                                      A-4
<PAGE>

                        [Form of Reverse of Debenture]

                      __% SUBORDINATED DEBENTURE DUE 2031

                                  (CONTINUED)

     This Debenture is one of the subordinated debentures of the Company (herein
sometimes referred to as the "Debentures"), all issued or to be issued under and
pursuant to an Indenture dated as of ______ __, 2001 (the "Indenture") duly
executed and delivered between the Company and Wilmington Trust Company, as
Trustee, to which Indenture reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Company and the holders of the Debentures. The Debentures are
limited in aggregate principal amount as specified in the Indenture.

     Because of the occurrence and continuation of a Special Event (as defined
in the Indenture), in certain circumstances, this Debenture may become due and
payable at the principal amount together with any interest accrued thereon (the
"Redemption Price"). The Redemption Price shall be paid prior to 12:00 noon
Eastern Time, on the date of such redemption or at such earlier time as the
Company determines. The Company shall have the right as set forth in the
Indenture to redeem this Debenture at the option of the Company, without premium
or penalty, in whole or in part at any time on or after September 30, 2006 (an
"Optional Redemption"), or at any time in certain circumstances upon the
occurrence of a Special Event, at a Redemption Price equal to 100% of the
principal amount hereof plus any accrued but unpaid interest hereon, to the date
of such redemption. Any redemption pursuant to this paragraph shall be made upon
not less than thirty (30) days' nor more than sixty (60) days' notice, at the
Redemption Price. The Redemption Price shall be paid at the time and in the
manner provided therefor in the Indenture. If the Debentures are only partially
redeemed by the Company pursuant to an Optional Redemption, the Debentures shall
be redeemed pro rata or by lot or by any other method utilized by the Trustee as
described in the Indenture. In the event of an Optional Redemption of this
Debenture in part only, a new Debenture or Debentures for the unredeemed portion
hereof shall be issued in the name of the holder hereof upon the cancellation
hereof.

     In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal of all of the Debentures may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than a majority in aggregate
principal amount of the Debentures at the time Outstanding (as defined in the
Indenture), to execute supplemental indentures for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the
rights of the holders of the Debentures; provided, however, that no such
supplemental indenture shall, except as provided in the Indenture, (i) extend
the fixed maturity of the Debentures, reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon without the
consent of the holder of each Debenture so affected

                                      A-5
<PAGE>

thereby; or (ii) reduce the aforesaid percentage of the Debentures, the holders
of which are required to consent to any such supplemental indenture, without the
consent of the holder of each Debenture then Outstanding and so affected
thereby. The Indenture also contains provisions permitting the holders of not
less than a majority in aggregate principal amount of the Debentures at the time
Outstanding, on behalf of all of the holders of the Debentures, to waive any
past default in the performance of any of the covenants contained in the
Indenture, or established pursuant to the Indenture, and its consequences,
except a default in the payment of the principal of or interest on any of the
Debentures. Any such consent or waiver by the registered holder of this
Debenture (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such holder and upon all future holders and owners of this
Debenture and of any Debenture issued in exchange herefor or in place hereof
(whether by registration of transfer or otherwise), irrespective of whether or
not any notation of such consent or waiver is made upon this Debenture.

     No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal and interest on this Debenture
at the time and place and at the rate and in the manner herein prescribed.

     The Company, as further described in the Indenture, shall have the right at
any time during the term of the Debentures and from time to time to defer
payments of interest by extending the interest payment period of such Debentures
for up to twenty (20) consecutive quarters (each, an "Extension Period"), at the
end of which period the Company shall pay all interest then accrued (together
with interest thereon at the rate specified for the Debentures to the extent
that payment of such interest is enforceable under applicable law). Before the
termination of any such Extension Period, so long as no Event of Default shall
have occurred and be continuing, the Company may further extend such Extension
Period, provided that such Extension Period together with all such further
extensions thereof shall not exceed twenty (20) consecutive quarters, extend
beyond September 30, 2031, or end on a date other than an Interest Payment Date.
At the termination of any such Extension Period and upon the payment of all
Deferred Payments then due, the Company may commence a new Extension Period.

     As provided in the Indenture and subject to certain limitations therein set
forth, this Debenture is transferable by the registered holder hereof on the
Debenture Register (as defined in the Indenture) of the Company, upon surrender
of this Debenture for registration of transfer at the office or agency of the
Trustee accompanied by a written instrument or instruments of transfer in form
satisfactory to the Company or the Trustee duly executed by the registered
holder hereof or his or her attorney duly authorized in writing, and thereupon
one or more new Debentures of authorized denominations and for the same
aggregate principal amount shall be issued to the designated transferee or
transferees. No service charge shall be made for any such transfer, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

     Prior to due presentment for registration of transfer of this Debenture,
the Company, the Trustee, any Paying Agent (as defined in the Indenture) and the
Debenture Registrar may deem and treat the registered holder hereof as the
absolute owner hereof (whether or not this Debenture

                                      A-6
<PAGE>

shall be overdue and notwithstanding any notice of ownership or writing hereon
made by anyone other than the Debenture Registrar) for the purpose of receiving
payment of or on account of the principal hereof and interest due hereon and for
all other purposes, and neither the Company, nor the Trustee, nor any Paying
Agent, nor any Debenture Registrar shall be affected by any notice to the
contrary.

     No recourse shall be had for the payment of the principal of or the
interest on this Debenture, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, shareholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

     The Debentures are issuable only in registered form without coupons in
denominations of $10 and any integral multiple thereof (or such other
denominations and any integral multiple thereof as may be deemed necessary by
the Company for the purpose of maintaining the eligibility of the Debentures for
listing on the American Stock Exchange, Inc. or any successor thereto).

     All terms used in this Debenture that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                   * * * * *

                                      A-7<PAGE>

                                                                     EXHIBIT 4.5

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

                          ABC BANCORP CAPITAL TRUST I

                             AMENDED AND RESTATED
                                TRUST AGREEMENT

                                     AMONG

                          ABC BANCORP, AS DEPOSITOR,

                WILMINGTON TRUST COMPANY, AS PROPERTY TRUSTEE,

                WILMINGTON TRUST COMPANY, AS DELAWARE TRUSTEE,

                                      AND

                   THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

                         Dated as of ___________, 2001

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                         Page
                                                                                                         ----
<S>                                                                                                      <C>
ARTICLE I.   DEFINED TERMS
  Section 1.1. Definitions.............................................................................     1

ARTICLE II.  ESTABLISHMENT OF THE TRUST
  Section 2.1. Name....................................................................................     9
  Section 2.2. Office of the Delaware Trustee; Principal Place of Business.............................    10
  Section 2.3. Initial Contribution of Trust Property; Organizational Expenses.........................    10
  Section 2.4. Issuance of the Preferred Securities....................................................    10
  Section 2.5. Issuance of the Common Securities; Subscription and Purchase of the Debentures..........    10
  Section 2.6. Declaration of Trust....................................................................    11
  Section 2.7. Authorization to Enter into Certain Transactions........................................    11
  Section 2.8. Assets of Trust.........................................................................    15
  Section 2.9. Title to Trust Property.................................................................    15

ARTICLE III.  PAYMENT ACCOUNT
  Section 3.1. Payment Account.........................................................................    15

ARTICLE IV.   DISTRIBUTIONS; REDEMPTION
  Section 4.1. Distributions...........................................................................    15
  Section 4.2. Redemption..............................................................................    16
  Section 4.3. Subordination of the Common Securities..................................................    19
  Section 4.4. Payment Procedures......................................................................    19
  Section 4.5. Tax Returns and Reports.................................................................    19
  Section 4.6. Payment of Taxes, Duties, Etc. of the Trust.............................................    20
  Section 4.7. Payments under the Indenture............................................................    20

ARTICLE V. THE TRUST SECURITIES CERTIFICATES.
  Section 5.1. Initial Ownership.......................................................................    20
  Section 5.2. The Trust Securities Certificates.......................................................    20
  Section 5.3. Execution, Authentication and Delivery of the Trust Securities Certificates.............    20
  Section 5.4. Global Preferred Security...............................................................    21
  Section 5.5. Registration of Transfer and Exchange of the Preferred Securities Certificates..........    22
  Section 5.6. Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates......................    23
  Section 5.7. Persons Deemed the Securityholders......................................................    24
  Section 5.8. Access to List of the Securityholders' Names and Addresses..............................    24
  Section 5.9. Maintenance of Office or Agency.........................................................    24
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                                         Page
                                                                                                         ----
<S>                                                                                                      <C>
  Section 5.10. Appointment of the Paying Agent........................................................    25
  Section 5.11. Ownership of the Common Securities by the Depositor....................................    25
  Section 5.12. The Trust Securities Certificates......................................................    25
  Section 5.13. Notices................................................................................    26
  Section 5.14. Rights of the Securityholders..........................................................    26

ARTICLE VI.  ACTS OF THE SECURITYHOLDERS; MEETINGS; VOTING
  Section 6.1.  Limitations on Voting Rights...........................................................    27
  Section 6.2.  Notice of Meetings.....................................................................    28
  Section 6.3.  Meetings of Holders of Preferred Securities............................................    28
  Section 6.4.  Voting Rights..........................................................................    28
  Section 6.5.  Proxies, Etc...........................................................................    28
  Section 6.6.  Securityholder Action by Written Consent...............................................    29
  Section 6.7.  Record Date for Voting and Other Purposes..............................................    29
  Section 6.8.  Acts of the Securityholders............................................................    29
  Section 6.9.  Inspection of Records..................................................................    30

ARTICLE VII.  REPRESENTATIONS AND WARRANTIES
  Section 7.1.  Representations and Warranties of the Bank and the Property Trustee....................    30
  Section 7.2.  Representations and Warranties of the Delaware Bank and the Delaware Trustee...........    31
  Section 7.3.  Representations and Warranties of the Depositor........................................    32

ARTICLE VIII.  TRUSTEES
  Section 8.1.  Certain Duties and Responsibilities....................................................    33
  Section 8.2.  Certain Notices........................................................................    34
  Section 8.3.  Certain Rights of the Property Trustee.................................................    35
  Section 8.4.  Not Responsible for Recitals or Issuance of Securities.................................    37
  Section 8.5.  May Hold Securities....................................................................    37
  Section 8.6.  Compensation; Indemnity; Fees..........................................................    37
  Section 8.7.  Corporate Property Trustee Required; Eligibility of Trustees...........................    38
  Section 8.8.  Conflicting Interests..................................................................    38
  Section 8.9.  Co-Trustees and Separate Trustee.......................................................    39
  Section 8.10. Resignation and Removal; Appointment of Successor......................................    40
  Section 8.11. Acceptance of Appointment by Successor.................................................    41
  Section 8.12. Merger, Conversion, Consolidation or Succession to Business............................    42
  Section 8.13. Preferential Collection of Claims Against the Depositor or the Trust...................    42
  Section 8.14. Reports by the Property Trustee........................................................    42
  Section 8.15. Reports to the Property Trustee........................................................    43
  Section 8.16. Evidence of Compliance with Conditions Precedent.......................................    43
  Section 8.17. Number of Trustees.....................................................................    43
  Section 8.18. Delegation of Power....................................................................    43
  Section 8.19. Voting.................................................................................    44
</TABLE>

                                      ii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                         Page
                                                                                                         ----
<S>                                                                                                      <C>
ARTICLE IX.  TERMINATION, LIQUIDATION AND MERGER
  Section 9.1.  Termination upon Expiration Date.......................................................    44
  Section 9.2.  Early Termination......................................................................    44
  Section 9.3.  Termination............................................................................    44
  Section 9.4.  Liquidation............................................................................    45
  Section 9.5.  Mergers, Consolidations, Amalgamations or Replacements of the Trust....................    46

ARTICLE X.  MISCELLANEOUS PROVISIONS
  Section 10.1. Limitation of Rights of the Securityholders............................................    47
  Section 10.2. Amendment..............................................................................    47
  Section 10.3. Separability...........................................................................    49
  Section 10.4. Governing Law..........................................................................    49
  Section 10.5. Payments Due on Non-Business Day.......................................................    49
  Section 10.6. Successors.............................................................................    49
  Section 10.7. Headings...............................................................................    49
  Section 10.8. Reports, Notices and Demands...........................................................    49
  Section 10.9. Agreement Not to Petition..............................................................    50
  Section 10.10. Trust Indenture Act; Conflict with Trust Indenture Act................................    50
  Section 10.11. Acceptance of Terms of the Trust Agreement, the Guarantee and the Indenture...........    51
</TABLE>

iii
<PAGE>

                             CROSS-REFERENCE TABLE

Section of                                                    Section of Amended
Trust Indenture Act                                                 and Restated
of 1939, as amended                                              Trust Agreement
-------------------                                              ---------------

310(a)(1).......................................................             8.7
310(a)(2).......................................................             8.7
310(a)(3).......................................................             8.7
310(a)(4).......................................................      2.7(a)(ii)
310(b)..........................................................             8.8
311(a)..........................................................            8.13
311(b)..........................................................            8.13
312(a)..........................................................             5.8
312(b)..........................................................             5.8
312(c)..........................................................             5.8
313(a)..........................................................         8.14(a)
313(a)(4).......................................................         8.14(b)
313(b)..........................................................         8.14(b)
313(c)..........................................................            10.8
313(d)..........................................................         8.14(c)
314(a)..........................................................            8.15
314(b)..........................................................  Not Applicable
314(c)(1).......................................................            8.16
314(c)(2).......................................................            8.16
314(c)(3).......................................................  Not Applicable
314(d)..........................................................  Not Applicable
314(e)..........................................................       1.1, 8.16
315(a)..........................................................  8.1(a), 8.3(a)
315(b)..........................................................       8.2, 10.8
315(c)..........................................................          8.1(a)
315(d)..........................................................        8.1, 8.3
316(a)(2).......................................................  Not Applicable
316(b)..........................................................  Not Applicable
316(c)..........................................................             6.7
317(a)(1).......................................................  Not Applicable
317(a)(2).......................................................  Not Applicable
317(b)..........................................................            5.10
318(a)..........................................................           10.10

Note: This Cross-Reference Table does not constitute part of this Agreement and
shall not affect any interpretation of any of its terms or provisions.

                                      iv
<PAGE>

                     AMENDED AND RESTATED TRUST AGREEMENT

     AMENDED AND RESTATED TRUST AGREEMENT, dated as of ________, 2001, among ABC
BANCORP, a Georgia corporation (including any successors or assigns, the
"Depositor"), WILMINGTON TRUST COMPANY, a banking corporation duly organized and
existing under the laws of the State of Delaware, as property trustee (the
"Property Trustee" and, in its separate corporate capacity and not in its
capacity as Property Trustee, the "Bank"), WILMINGTON TRUST COMPANY, a banking
corporation duly organized and existing under the laws of the State of Delaware,
as Delaware trustee (the "Delaware Trustee," and, in its separate corporate
capacity and not in its capacity as Delaware Trustee, the "Delaware Bank"),
KENNETH J. HUNNICUTT, an individual, MARK D. THOMAS, an individual, and W. EDWIN
LANE, JR., an individual, each of whose address is c/o ABC Bancorp, 24 2/nd/
Avenue, S.E., Moultrie, Georgia 31768 (each an "Administrative Trustee" and
collectively the "Administrative Trustees") (the Property Trustee, the Delaware
Trustee and the Administrative Trustees referred to collectively as the
"Trustees"), and the several Holders (as hereinafter defined).

                                   RECITALS:

     WHEREAS, the Depositor, the Delaware Trustee and the Administrative
Trustees have heretofore duly declared and established a business trust pursuant
to the Delaware Business Trust Act (as hereinafter defined) by the entering into
of that certain Trust Agreement, dated as of ________, 2001 (the "Original Trust
Agreement"), and by the execution and filing by the Delaware Trustee, and the
Administrative Trustees with the Secretary of State of the State of Delaware of
the Certificate of Trust, filed on ________, 2001, the form of which is attached
as Exhibit A; and
   ---------

     WHEREAS, the Depositor, the Delaware Trustee, the Property Trustee and the
Administrative Trustees desire to amend and restate the Original Trust Agreement
in its entirety as set forth herein to provide for, among other things, (a) the
issuance of the Common Securities (as defined herein) by the Trust (as defined
herein) to the Depositor; (b) the issuance and sale of the Preferred Securities
(as defined herein) by the Trust pursuant to the Underwriting Agreement (as
defined herein); (c) the acquisition by the Trust from the Depositor of all of
the right, title and interest in and to the Debentures (as defined herein); and
(d) the appointment of the Trustees;

     NOW THEREFORE, in consideration of the agreements and obligations set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Securityholders (as defined herein),
hereby amends and restates the Original Trust Agreement in its entirety and
agrees as follows:

                                  ARTICLE I.
                                 DEFINED TERMS

     Section 1.1.  Definitions. For all purposes of this Trust Agreement, except
                   -----------
as otherwise expressly provided or unless the context otherwise requires:

                                       1
<PAGE>

     (a)  the terms defined in this Article I have the meanings assigned to them
in this Article I and include the plural as well as the singular;

     (b)  all other terms used herein that are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;

     (c)  unless the context otherwise requires, any reference to an "Article"
or a "Section" refers to an Article or a Section, as the case may be, of this
Trust Agreement;

     (d)  the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Trust Agreement as a whole and not to any
particular Article, Section or other subdivision; and

     (e)  whenever the words "include", "includes" or "including" are used in
this Agreement, they shall be deemed to be followed by the words "without
limitation."

     "Act" has the meaning specified in Section 6.8.

     "Additional Amount" means, with respect to Trust Securities of a given
Liquidation Amount and/or a given period, the amount of additional interest
accrued on interest in arrears and paid by the Depositor on a Like Amount of
Debentures for such period.

     "Additional Payments" has the meaning specified in Section 1.1 of the
Indenture.

     "Administrative Trustee" means each of KENNETH J. HUNNICUTT, MARK D. THOMAS
and W. EDWIN LANE, JR., solely in his capacity as Administrative Trustee of the
Trust continued hereunder and not in his individual capacity, or such
Administrative Trustee's successor in interest in such trustee capacity, or any
successor trustee appointed as herein provided.

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

     "Authenticating Agent" means an authenticating agent with respect to the
Preferred Securities appointed by the Property Trustee pursuant to Section 5.3.

     "Bank" has the meaning specified in the Preamble to this Trust Agreement.

     "Bankruptcy Event" means, with respect to any Person:

                                       2
<PAGE>

     (a)  the entry of a decree or order by a court having jurisdiction in the
premises adjudging such Person a bankrupt or insolvent, or approving as properly
filed a petition seeking liquidation or reorganization of or in respect of such
Person under the United States Bankruptcy Code of 1978, as amended, or any other
similar applicable federal or state law, and the continuance of any such decree
or order unvacated and unstayed for a period of ninety (90) days; or the
commencement of an involuntary case under the United States Bankruptcy Code of
1978, as amended, in respect of such Person, which shall continue undismissed
for a period of ninety (90) days or entry of an order for relief in such case;
or the entry of a decree or order of a court having jurisdiction in the premises
for the appointment on the ground of insolvency or bankruptcy of a receiver,
custodian, liquidator, trustee or assignee in bankruptcy or insolvency of such
Person or of its property, or for the winding up or liquidation of its affairs,
and such decree or order shall have remained in force unvacated and unstayed for
a period of ninety (90) days; or

     (b)  the institution by such Person of proceedings to be adjudicated a
voluntary bankrupt, or the consent by such Person to the filing of a bankruptcy
proceeding against it, or the filing by such Person of a petition or answer or
consent seeking liquidation or reorganization under the United States Bankruptcy
Code of 1978, as amended, or other similar applicable federal or state law, or
the consent by such Person to the filing of any such petition or to the
appointment on the ground of insolvency or bankruptcy of a receiver or custodian
or liquidator or trustee or assignee in bankruptcy or insolvency of such Person
or of its property, or shall make a general assignment for the benefit of
creditors.

     "Bankruptcy Laws" has the meaning specified in Section 10.9.

     "Business Day" means any day other than a Saturday or Sunday or a day on
which federal or state banking institutions in the Borough of Manhattan, the
City of New York, are authorized or required by law, executive order or
regulation to close, or a day on which the Corporate Trust Office of the
Property Trustee or the Corporate Trust Office of the Debenture Trustee is
closed for business.

     "Certificate of Trust" means the certificate of trust filed with the
Secretary of State of the State of Delaware with respect to the Trust, as the
same may be amended or restated from time to time.

     "Clearing Agency" means an organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. DTC
shall be the initial Clearing Agency.

     "Closing Date" means the date of execution and delivery of this Trust
Agreement.

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

                                       3
<PAGE>

     "Common Securities Certificate" means a certificate evidencing ownership of
Common Securities, substantially in the form attached hereto as Exhibit B and
                                                                ---------
incorporated herein by this reference.

     "Common Security" means an undivided beneficial interest in the assets of
the Trust, having a Liquidation Amount of $10 and designated a Common Security
and having the rights provided therefor in this Trust Agreement, including the
right to receive Distributions and a Liquidation Distribution as provided
herein.

     "Company" means ABC Bancorp, a Georgia corporation and registered bank
holding company under the Bank Holding Company Act of 1956, as amended.

     "Corporate Trust Office" means the office at which, at any particular time,
the corporate trust business of the Property Trustee or the Debenture Trustee,
as the case may be, shall be principally administered, which office at the date
hereof, in each such case, is located at Rodney Square North, 1100 North Market
Street, Wilmington, Delaware, 19890-0001 Attention: Corporate Trust
Administration.

     "Debenture Event of Default" means an "Event of Default" as defined in
Section 7.1 of the Indenture.

     "Debenture Redemption Date" means, with respect to any Debentures to be
redeemed under the Indenture, the date fixed for redemption under the Indenture.

     "Debenture Trustee" means Wilmington Trust Company, a banking corporation
organized under the laws of the State of Delaware and any successor thereto, as
trustee under the Indenture.

     "Debentures" means the $30,927,850 (or $35,567,030 if the Underwriters
exercise their Option as such term is defined in the Underwriters Agreement)
aggregate principal amount of the Depositor's ___% Subordinated Debentures due
2031, issued pursuant to the Indenture.

     "Delaware Bank" has the meaning specified in the Preamble to this Trust
Agreement.

     "Delaware Business Trust Act" means Chapter 38 of Title 12 of the Delaware
Code, 12 Delaware Code Sections 3801 et seq., as it may be amended from time to
time.

     "Delaware Trustee" means the commercial bank or trust company identified as
the "Delaware Trustee" in the Preamble to this Trust Agreement solely in its
capacity as Delaware Trustee of the Trust continued hereunder and not in its
individual capacity, or its successor in interest in such trustee capacity, or
any successor trustee appointed as herein provided.

     "Depositary" means DTC or any successor thereto.

     "Depositor" has the meaning specified in the Preamble to this Trust
Agreement.

                                       4
<PAGE>

     "Distribution Date" has the meaning specified in Section 4.1(a).

     "Distributions" means amounts payable in respect of the Trust Securities as
provided in Section 4.1.

     "DTC" means The Depository Trust Company.

     "Early Termination Event" has the meaning specified in Section 9.2.

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

     (a)  the occurrence of a Debenture Event of Default; or

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

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

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Expense Agreement" means the Agreement as to Expenses and Liabilities
between the Depositor and the Trust, substantially in the form attached hereto
as Exhibit C and incorporated herein by this reference, as the same may be
   ---------
amended from time to time.

     "Expiration Date" has the meaning specified in Section 9.1.

     "Extension Period" has the meaning specified in Section 4.1 of the
Indenture.

     "Global Preferred Securities Certificate" means a Preferred Securities
Certificate evidencing ownership of Global Preferred Securities.

     "Global Preferred Security" means a Preferred Security, with the ownership
and transfer of beneficial interests therein made through book entries by a
Clearing Agency as described herein.

     "Guarantee" means the Preferred Securities Guarantee Agreement executed and
delivered by the Depositor and Wilmington Trust Company, as trustee,
contemporaneously with the execution and delivery of this Trust Agreement, for
the benefit of the Holders of the Preferred Securities, as amended from time to
time.

                                       5
<PAGE>

     "Indenture" means the Indenture, dated as of __________________, 2001,
between the Depositor and the Debenture Trustee, as trustee, as the same may be
amended or supplemented from time to time, pertaining to the Debentures of the
Depositor.

     "Investment Company Act," means the Investment Company Act of 1940, as
amended, as in effect at the date of execution of this instrument.

     "Lien" means any lien, pledge, charge, encumbrance, mortgage, deed of
trust, adverse ownership interest, hypothecation, assignment, security interest
or preference, priority or other security agreement or preferential arrangement
of any kind or nature whatsoever.

     "Like Amount" means (a) with respect to a redemption of Trust Securities,
Trust Securities having an aggregate Liquidation Amount equal to the aggregate
principal amount of Debentures to be contemporaneously redeemed in accordance
with the Indenture and the proceeds of which shall be used to pay the Redemption
Price of such Trust Securities; and (b) with respect to a distribution of
Debentures to Holders of Trust Securities in connection with a termination or
liquidation of the Trust, Debentures having a principal amount equal to the
Liquidation Amount of the Trust Securities of the Holder to whom such Debentures
are distributed. Each Debenture distributed pursuant to clause (b) above shall
carry with it accrued interest in an amount equal to the accrued and unpaid
interest then due on such Debenture.

     "Liquidation Amount" means the stated amount of $10 per Trust Security.

     "Liquidation Date" means the date on which Debentures are to be distributed
to Holders of Trust Securities in connection with a termination and liquidation
of the Trust pursuant to Section 9.4(a).

     "Liquidation Distribution" has the meaning specified in Section 9.4(d).

     "Officers' Certificate" means a certificate signed by the Chairman and
Chief Executive Officer, President or a Senior or Executive Vice President and
by the Treasurer or an Assistant Treasurer or the Controller or an Assistant
Controller or the Secretary or an Assistant Secretary of the Depositor, and
delivered to the appropriate Trustee. One of the officers signing an Officers'
Certificate given pursuant to Section 8.16 shall be the principal executive,
financial or accounting officer of the Depositor. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Trust Agreement shall include:

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

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

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

                                       6
<PAGE>

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

     "Opinion of Counsel" means an opinion in writing of independent outside
legal counsel, who may be counsel for the Trust, the Property Trustee, the
Delaware Trustee or the Depositor, and who shall be reasonably acceptable to the
Property Trustee.

     "Option" has the meaning specified in the Underwriting Agreement.

     "Original Trust Agreement" has the meaning specified in the Recitals to
this Trust Agreement.

     "Outstanding", when used with respect to the Preferred Securities, means,
as of the date of determination, all of the Preferred Securities theretofore
executed and delivered under this Trust Agreement, except:

     (a)  the Preferred Securities theretofore canceled by the Property Trustee
or delivered to the Property Trustee for cancellation;

     (b)  the Preferred Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Property Trustee or any
Paying Agent for the Holders of such Preferred Securities; provided, however,
that if such Preferred Securities are to be redeemed, then notice of such
redemption has been duly given pursuant to this Trust Agreement; and

     (c)  the Preferred Securities which have been paid or in exchange for or in
lieu of which other Preferred Securities have been executed and delivered
pursuant to Sections 5.5, 5.6, 5.12 and 5.14; provided, however, that in
determining whether the Holders of the requisite Liquidation Amount of the
Outstanding Preferred Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the Preferred Securities owned
by the Depositor, any Trustee or any Affiliate of the Depositor or any Trustee
shall be disregarded and deemed not to be Outstanding, except that (i) in
determining whether any Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only the
Preferred Securities that such Trustee actually knows to be so owned shall be so
disregarded; and (ii) the foregoing shall not apply at any time when all of the
Outstanding Preferred Securities are owned by the Depositor, one or more of the
Trustees and/or any such Affiliate. The Preferred Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Administrative Trustees the pledgee's
right so to act with respect to such Preferred Securities and the pledgee is not
the Depositor or any other Obligor upon the Preferred Securities or a Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Depositor or any Affiliate of the Depositor.

     "Paying Agent" means any paying agent or co-paying agent appointed pursuant
to Section 5.10 and shall initially be the Property Trustee.

                                       7
<PAGE>

     "Payment Account" means a segregated non-interest-bearing corporate trust
account maintained by the Property Trustee with the Bank in its trust department
for the benefit of the Securityholders in which all amounts paid in respect of
the Debentures shall be held and from which the Property Trustee shall make
payments to the Securityholders in accordance with Sections 4.1 and 4.2.

     "Person" means any individual, corporation, partnership, joint venture,
trust, limited liability company or corporation, unincorporated organization or
government or any agency or political subdivision thereof.

     "Preferred Security" means an undivided beneficial interest in the assets
of the Trust, having a Liquidation Amount of $10 and designated a ____%
Cumulative Trust Preferred Security and having the rights provided therefor in
this Trust Agreement, including the right to receive Distributions and a
Liquidation Distribution as provided herein.

     "Preferred Securities Certificate" means a certificate evidencing ownership
of Preferred Securities, substantially in the form attached hereto as Exhibit D
                                                                      ---------
and incorporated herein by this reference.

     "Property Trustee" means the commercial bank or trust company identified as
the "Property Trustee" in the Preamble to this Trust Agreement, solely in its
capacity as Property Trustee of the Trust heretofore formed and continued
hereunder and not in its individual capacity, or its successor in interest in
such trustee capacity, or any successor property trustee appointed as herein
provided.

     "Redemption Date" means, with respect to any Trust Security to be redeemed,
the date fixed for such redemption by or pursuant to this Trust Agreement;
provided, however, that each Debenture Redemption Date and the stated maturity
of the Debentures shall be a Redemption Date for a Like Amount of Trust
Securities.

     "Redemption Price" means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security, plus accumulated and unpaid
Distributions to the Redemption Date, paid by the Depositor upon the concurrent
redemption of a Like Amount of Debentures, allocated on a pro rata basis (based
on Liquidation Amounts) among the Trust Securities.

     "Relevant Trustee" shall have the meaning specified in Section 8.10.

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

                                       8
<PAGE>

     "Securities Register" and "Securities Registrar" have the respective
meanings specified in Section 5.5.

     "Securityholder" or "Holder" means a Person in whose name a Trust Security
is or Trust Securities are registered in the Securities Register (any such
Person is a beneficial owner within the meaning of the Delaware Business Trust
Act).

     "Trust" means the Delaware business trust continued hereby and identified
on the cover page to this Trust Agreement.

     "Trust Agreement" means this Amended and Restated Trust Agreement, as the
same may be modified, amended or supplemented in accordance with the applicable
provisions hereof, including all exhibits hereto, including, for all purposes of
this Trust Agreement and any such modification, amendment or supplement, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this Trust Agreement and any such modification, amendment or supplement,
respectively.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939, as amended, is
amended after such date, "Trust Indenture Act" means, to the extent required by
any such amendment, the Trust Indenture Act of 1939 as so amended.

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

     "Trust Security" means any one of the Common Securities or the Preferred
Securities.

     "Trust Securities Certificate" means any one of the Common Securities
Certificates or the Preferred Securities Certificates.

     "Trustees" means, collectively, the Property Trustee, the Delaware Trustee
and the Administrative Trustees.

     "Underwriting Agreement" means the Underwriting Agreement, dated as of
__________, 2001, among the Trust, the Depositor, Sterne, Agee & Leach, Inc. and
the underwriters named therein.

                                  ARTICLE II.
                          ESTABLISHMENT OF THE TRUST

     Section 2.1.  Name. The Trust continued hereby shall be known as "ABC
                   ----
Bancorp Capital Trust I," as such name may be modified from time to time by the
Administrative Trustees following written notice to the Holders of Trust
Securities and the other Trustees, in

                                       9
<PAGE>

which name the Trust may engage in the transactions contemplated hereby, make
and execute contracts and other instruments on behalf of the Trust and sue and
be sued.

     Section 2.2.  Office of the Delaware Trustee; Principal Place of Business.
                   -----------------------------------------------------------
The address of the Delaware Trustee in the State of Delaware is c/o Wilmington
Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration, or such other
address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Securityholders and the Depositor. The principal executive
office of the Trust is c/o ABC Bancorp, 24 2/nd/ Avenue, S.E., Moultrie, Georgia
31768, Attention: Chairman and Chief Executive Officer.

     Section 2.3.  Initial Contribution of Trust Property; Organizational
                   ------------------------------------------------------
Expenses. The Trustees acknowledge receipt in trust from the Depositor in
--------
connection with the Original Trust Agreement of the sum of $10, which
constituted the initial Trust Property. The Depositor shall pay organizational
expenses of the Trust as they arise or shall, upon request of any Trustee,
promptly reimburse such Trustee for any such expenses paid by such Trustee. The
Depositor shall make no claim upon the Trust Property for the payment of such
expenses.

     Section 2.4.  Issuance of the Preferred Securities. On ____________, 2001,
                   ------------------------------------
the Depositor, on behalf of the Trust and pursuant to the Original Trust
Agreement, executed and delivered the Underwriting Agreement. Contemporaneously
with the execution and delivery of this Trust Agreement, an Administrative
Trustee, on behalf of the Trust, shall execute in accordance with Section 5.2,
and deliver in accordance with the Underwriting Agreement, Preferred Securities
Certificates, registered in the name of the Persons entitled thereto, evidencing
an aggregate amount of 3,000,000 Preferred Securities having an aggregate
Liquidation Amount of $30,000,000 against receipt of the aggregate purchase
price of such Preferred Securities of $30,000,000, which amount such
Administrative Trustee shall promptly deliver to the Property Trustee. If the
underwriters exercise the Option and there is an Option Closing Date (as such
term is defined in the Underwriting Agreement), then an Administrative Trustee,
on behalf of the Trust, shall execute in accordance with Section 5.2 and deliver
in accordance with the Underwriting Agreement, Preferred Securities
Certificates, registered in the name of the Persons entitled thereto evidencing
an aggregate amount of up to 450,000 Preferred Securities having an aggregate
Liquidation Amount of up to $4,500,000 against receipt of the aggregate purchase
price of such Preferred Securities of up to $4,500,000, which amount such
Administrative Trustee shall promptly deliver to the Property Trustee.
Preferred Securities issued in accordance with this Section 2.4 shall be validly
issued and entitled to the benefits of this Trust Agreement.

     Section 2.5.  Issuance of the Common Securities; Subscription and Purchase
                   ------------------------------------------------------------
of the Debentures.
----------------

     (a)  Contemporaneously with the execution and delivery of this Trust
Agreement, an Administrative Trustee, on behalf of the Trust, shall execute in
accordance with Section 5.2 and deliver to the Depositor, Common Securities
Certificates, registered in the name of the Depositor, in an aggregate amount of
92,785 Common Securities having an aggregate Liquidation Amount of $927,850
against payment by the Depositor of such amount, which

                                       10
<PAGE>

amount such Administrative Trustee shall promptly deliver to the Property
Trustee. Contemporaneously therewith, an Administrative Trustee, on behalf of
the Trust, shall subscribe to and purchase from the Depositor Debentures,
registered in the name of the Property Trustee on behalf of the Trust and having
an aggregate principal amount equal to $30,927,850, and, in satisfaction of the
purchase price for such Debentures, the Property Trustee, on behalf of the
Trust, shall deliver to the Depositor the sum of $30,927,850.

     (b)  If the underwriters exercise the Option and there is an Option Closing
Date, then an Administrative Trustee, on behalf of the Trust, shall execute in
accordance with Section 5.2 and deliver to the Depositor, Common Securities
Certificates, registered in the name of the Depositor, in an additional
aggregate amount of up to 13,918 Common Securities having an aggregate
Liquidation Amount of up to $139,180 against payment by the Depositor of such
amount, which amount such Administrative Trustee shall promptly deliver to the
Property Trustee.  Contemporaneously therewith, an Administrative Trustee, on
behalf of the Trust, shall subscribe to and purchase from the Depositor,
additional Debentures, registered in the name of the Property Trustee on behalf
of the Trust and having an aggregate principal amount of up to $4,639,180 and,
in satisfaction of the purchase price of such Debentures, the Property Trustee,
on behalf of the Trust, shall deliver to the Depositor up to $4,639,180 such
aggregate amount to be equal to the sum of the amounts received from the
Depositor pursuant to this Section 2.5(b) and from one of the Administrative
Trustees pursuant to the last sentence of Section 2.4.

     (c)  Common Securities issued in accordance with this Section 2.5 shall be
validly issued and entitled to the benefits of this Trust Agreement.

     Section 2.6.  Declaration of Trust. The exclusive purposes and functions of
                   --------------------
the Trust are (a) to issue and sell Trust Securities and use the proceeds from
such sale to acquire the Debentures; and (b) to engage in those activities
necessary, convenient or incidental thereto. The Depositor hereby appoints the
Trustees as trustees of the Trust, to have all the rights, powers and duties to
the extent set forth herein, and the Trustees hereby accept such appointment.
The Property Trustee hereby declares that it shall hold the Trust Property in
trust upon and subject to the conditions set forth herein for the benefit of the
Securityholders. The Administrative Trustees shall have all rights, powers and
duties set forth herein and in accordance with applicable law with respect to
accomplishing the purposes of the Trust. 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 Property Trustee or the Administrative
Trustees set forth herein. The Delaware Trustee shall be one of the Trustees of
the Trust for the sole and limited purpose of fulfilling the requirements of
Section 3807 of the Delaware Business Trust Act.

     Section 2.7.  Authorization to Enter Into Certain Transactions.
                   ------------------------------------------------

     (a)  The Trustees shall conduct the affairs of the Trust in accordance with
the terms of this Trust Agreement. Subject to the limitations set forth in
paragraph (b) of this Section 2.7 and Article VIII, and in accordance with the
following provisions (i) and (ii), the Administrative Trustees shall have the
power and authority, and are hereby authorized, to enter into all transactions
and agreements determined by the Administrative Trustees to be appropriate in
exercising the authority, express or implied, otherwise granted to the
Administrative Trustees

                                       11
<PAGE>

under this Trust Agreement, and to perform all acts in furtherance thereof,
including the following:

          (i)  As among the Trustees, each Administrative Trustee, acting singly
     or jointly, shall have the power, duty and authority, and is hereby
     authorized, to act on behalf of the Trust with respect to the following
     matters:

                   (A)  the issuance and sale of the Trust Securities and the
          compliance with the Underwriting Agreement in connection therewith;

                   (B)  to cause the Trust to enter into, and to execute,
          deliver and perform on behalf of the Trust, the Expense Agreement and
          such other agreements or documents as may be necessary or desirable in
          connection with the purposes and function of the Trust;

                   (C)  assisting in the registration of the Preferred
          Securities under the Securities Act of 1933, as amended, and under
          state securities or blue sky laws, and the qualification of this Trust
          Agreement as a trust indenture under the Trust Indenture Act;

                   (D)  assisting in the listing of the Preferred Securities on
          the American Stock Exchange, Inc. or such securities exchange or
          exchanges as shall be determined by the Depositor and the registration
          of the Preferred Securities under the Exchange Act, and the
          preparation and filing of all periodic and other reports and other
          documents pursuant to the foregoing;

                   (E)  the sending of notices (other than notices of default)
          and other information regarding the Trust Securities and the
          Debentures to the Securityholders in accordance with this Trust
          Agreement;

                   (F)  the appointment of a Paying Agent and Securities
          Registrar in accordance with this Trust Agreement;

                   (G)  to the extent provided in this Trust Agreement, the
          winding up of the affairs of and liquidation of the Trust and the
          preparation, execution and filing of the certificate of cancellation
          with the Secretary of State of the State of Delaware;

                   (H)  to take all action that may be necessary or appropriate
          for the preservation and 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 of each other jurisdiction in
          which such existence is necessary to protect the limited liability of
          the Holders of the Preferred Securities or to enable the Trust to
          effect the purposes for which the Trust was created; and

                   (I)  the taking of any action incidental to the foregoing as
          the Administrative Trustees may from time to time determine is
          necessary or

                                       12
<PAGE>

          advisable to give effect to the terms of this Trust Agreement for the
          benefit of the Securityholders (without consideration of the effect of
          any such action on any particular Securityholder).

          (ii)  As among the Trustees, the Property Trustee shall have the
     power, duty and authority, and is hereby authorized, to act on behalf of
     the Trust with respect to the following matters:

                   (A)  the establishment of the Payment Account;

                   (B)  the receipt of the Debentures;

                   (C)  the collection of interest, principal and any other
          payments made in respect of the Debentures in the Payment Account;

                   (D)  the distribution of amounts owed to the Securityholders
          in respect of the Trust Securities in accordance with the terms of
          this Trust Agreement;

                   (E)  the exercise of all of the rights, powers and privileges
          of a holder of the Debentures;

                   (F)  the sending of notices of default and other information
          regarding the Trust Securities and the Debentures to the
          Securityholders in accordance with this Trust Agreement;

                   (G)  the distribution of the Trust Property in accordance
          with the terms of this Trust Agreement;

                   (H)  to the extent provided in this Trust Agreement, the
          winding up of the affairs of and liquidation of the Trust;

                   (I)  after an Event of Default, the taking of any action
          incidental to the foregoing as the Property Trustee may from time to
          time determine is necessary or advisable to give effect to the terms
          of this Trust Agreement and protect and conserve the Trust Property
          for the benefit of the Securityholders (without consideration of the
          effect of any such action on any particular Securityholder);

                   (J)  registering transfers of the Trust Securities in
          accordance with this Trust Agreement; and

                   (K)  except as otherwise provided in this Section 2.7(a)(ii),
          the Property Trustee shall have none of the duties, liabilities,
          powers or the authority of the Administrative Trustees set forth in
          Section 2.7(a)(i).

     (b) So long as this Trust Agreement remains in effect, the Trust (or the
Trustees acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly

                                       13
<PAGE>

provided herein or contemplated hereby. In particular, the Trust shall not (i)
acquire any investments or engage in any activities not authorized by this Trust
Agreement; (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or
otherwise dispose of any of the Trust Property or interests therein, including
to Securityholders, except as expressly provided herein; (iii) take any action
that would cause the Trust to fail or cease to qualify as a "grantor trust" for
United States federal income tax purposes; (iv) incur any indebtedness for
borrowed money or issue any other debt; or (v) take or consent to any action
that would result in the placement of a Lien on any of the Trust Property. The
Administrative Trustees shall defend all claims and demands of all Persons at
any time claiming any Lien on any of the Trust Property adverse to the interest
of the Trust or the Securityholders in their capacity as Securityholders.

     (c)  In connection with the issue and sale of the Preferred Securities, the
Depositor shall have the right and responsibility to assist the Trust with
respect to, or effect on behalf of the Trust, the following (and any actions
taken by the Depositor in furtherance of the following prior to the date of this
Trust Agreement are hereby ratified and confirmed in all respects):

             (i)   the preparation and filing by the Trust with the Commission
     and the execution on behalf of the Trust of a registration statement on the
     appropriate form in relation to the Preferred Securities, the Guarantee,
     and the Debentures, including any amendments thereto;

             (ii)  the determination of the states in which to take
     appropriate action to qualify or register for sale all or part of the
     Preferred Securities and to do any and all such acts, other than actions
     which under the applicable laws of any such states may not be taken by or
     on behalf of the Trust by the Depositor, and advise the Trustees of actions
     they must take on behalf of the Trust, and prepare for execution and filing
     any documents to be executed and filed by the Trust or on behalf of the
     Trust, as the Depositor deems necessary or advisable in order to comply
     with the applicable laws of any such states;

             (iii) the preparation for filing by the Trust and execution on
     behalf of the Trust of an application to the American Stock Exchange, Inc.
     or a national stock exchange or other organization for inclusion, listing
     or quotation upon notice of issuance of any Preferred Securities and to
     file or cause an Administrative Trustee to file thereafter with such
     exchange or organization such notifications and documents as may be
     necessary from time to time;

             (iv)  the preparation for filing by the Trust with the Commission
     and the execution on behalf of the Trust of 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, including any amendments
     thereto;

             (v)   the negotiation of the terms of, and the execution and
     delivery of, the Underwriting Agreement providing for the sale of the
     Preferred Securities; and

             (vi)  the taking of any other actions that the Depositor determines
     are necessary or desirable to carry out any of the foregoing activities.

                                       14
<PAGE>

     (d)  Notwithstanding anything herein to the contrary, the Administrative
Trustees are authorized and directed to conduct the affairs of the Trust and to
operate the Trust so that the Trust shall not be deemed to be an "investment
company" required to be registered under the Investment Company Act, shall be
classified as a "grantor trust" and not as an association taxable as a
corporation for United States federal income tax purposes and so that the
Debentures shall be treated as indebtedness of the Depositor for United States
federal income tax purposes. In this connection, subject to Section 10.2, the
Depositor and the Administrative Trustees are authorized to take any action and
the Administrative Trustees are authorized to direct the Property Trustee in
writing to take any action, not inconsistent with applicable law or this Trust
Agreement, that each of the Depositor and the Administrative Trustees determines
in their discretion to be necessary or desirable for such purposes. The Property
Trustee is authorized to take any action so directed by one or more of the
Administrative Trustees.

     Section 2.8.  Assets of Trust. The assets of the Trust shall consist of the
                   ---------------
Trust Property.

     Section 2.9.  Title to Trust Property. Legal title to all Trust Property
                   -----------------------
shall be vested at all times in the Property Trustee (in its capacity as such)
and shall be held and administered by the Property Trustee for the benefit of
the Securityholders in accordance with this Trust Agreement.

                                 ARTICLE III.
                                PAYMENT ACCOUNT

     Section 3.1.  Payment Account.
                   ---------------

     (a)  On or prior to the Closing Date, the Property Trustee shall establish
the Payment Account. The Property Trustee and any agent of the Property Trustee
shall have exclusive control and sole right of withdrawal with respect to the
Payment Account for the purpose of making deposits and withdrawals from the
Payment Account in accordance with this Trust Agreement. All monies and other
property deposited or held from time to time in the Payment Account shall be
held by the Property Trustee in the Payment Account for the exclusive benefit of
the Securityholders and for distribution as herein provided, including (and
subject to) any priority of payments provided for herein.

     (b)  The Property Trustee shall deposit in the Payment Account, promptly
upon receipt, all payments of principal of or interest on, and any other
payments or proceeds with respect to, the Debentures. Amounts held in the
Payment Account shall not be invested by the Property Trustee pending
distribution thereof.

                                  ARTICLE IV.
                           DISTRIBUTIONS; REDEMPTION

     Section 4.1.  Distributions.
                   -------------

     (a)  Distributions on the Trust Securities shall be cumulative, and shall
accumulate whether or not there are funds of the Trust available for the payment
of Distributions.

                                       15
<PAGE>

Distributions shall accumulate from the date of issuance of the Trust
Securities, and, except during any Extension Period with respect to the
Debentures, shall be payable quarterly in arrears on March 31, June 30,
September 30 and December 31 of each year, commencing on December 31, 2001. If
any date on which a Distribution is otherwise payable on the Trust Securities is
not a Business Day, then the payment of such Distribution shall 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 (and without any reduction in interest or any other
payment in respect of any such acceleration), in each case with the same force
and effect as if made on such date (each date on which distributions are payable
in accordance with this Section 4.1(a), a "Distribution Date").

     (b)  The Trust Securities constitute undivided beneficial interests in the
Trust Property. Distributions on the Trust Securities shall be payable at a rate
of ___% per annum of the Liquidation Amount of the Trust Securities. The amount
of Distributions payable for any full period shall be computed on the basis of a
360-day year consisting of twelve 30-day months. The amount of Distributions for
any partial period shall be computed on the basis of the number of days elapsed
in a 360-day year consisting of twelve 30-day months. During any Extension
Period with respect to the Debentures, Distributions on the Preferred Securities
shall be deferred for a period equal to the Extension Period. The amount of
Distributions payable for any period shall include the Additional Amounts, if
any.

     (c)  Distributions on the Trust Securities shall be made by the Property
Trustee solely from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Trust has funds then on hand and
immediately available by 12:30 p.m. on each Distribution Date in the Payment
Account for the payment of such Distributions.

     (d)  Distributions on the Trust Securities with respect to a Distribution
Date shall be payable to the Holders thereof as they appear on the Securities
Register for the Trust Securities on the relevant record date, which shall be
the 15th day of March, June, September or December for Distributions payable on
the last calendar day of the respective month; provided, however, that for any
Trust Securities held in global form, Distributions with respect to a
Distribution Date shall be payable to the Holder thereof as it appears on the
Securities Register as of one Business Day immediately preceding the
Distribution Date.

     Section 4.2.  Redemption.
                   ----------

     (a)  On each Debenture Redemption Date and at maturity of the Debentures,
the Trust shall be required to redeem a Like Amount of Trust Securities at the
Redemption Price.

     (b)  Notice of redemption shall be given by the Property Trustee by first-
class mail, postage prepaid, mailed not less than thirty (30) nor more than
sixty (60) days prior to the Redemption Date to each Holder of Trust Securities
to be redeemed, at such Holder's address appearing in the Securities Register.
The Property Trustee shall have no responsibility for the accuracy of any CUSIP
number contained in such notice. All notices of redemption shall state:

                                       16
<PAGE>

             (i)   the Redemption Date;

             (ii)  the Redemption Price;

             (iii) the CUSIP number;

             (iv)  if less than all the outstanding Trust Securities are to be
     redeemed, the identification and the aggregate Liquidation Amount of the
     particular Trust Securities to be redeemed;

             (v)   that, on the Redemption Date, the Redemption Price shall
     become due and payable upon each such Trust Security to be redeemed and
     that Distributions thereon shall cease to accumulate on and after said
     date, except as provided in Section 4.2(d); and

             (vi)  the place or places at which Trust Securities are to be
     surrendered for the payment of the Redemption Price.

     (c) The Trust Securities redeemed on each Redemption Date shall be redeemed
at the Redemption Price with the proceeds from the contemporaneous redemption of
the Debentures.  Redemptions of the Trust Securities shall be made and the
Redemption Price shall be payable on each Redemption Date only to the extent
that the Trust has immediately available funds then on hand and available in the
Payment Account for the payment of such Redemption Price.

     (d) If the Property Trustee gives a notice of redemption in respect of any
Preferred Securities, then, by 12:00 noon, New York City time, on the Redemption
Date, subject to Section 4.2(c), the Property Trustee, subject to Section
4.2(c), shall, with respect to Preferred Securities held in global form, deposit
with the Clearing Agency for such Preferred Securities, to the extent available
therefor, funds sufficient to pay the applicable Redemption Price and will give
such Clearing Agency irrevocable instructions and authority to pay the
Redemption Price to the Holders of the Preferred Securities. With respect to
Trust Securities that are not held in global form, the Property Trustee, subject
to Section 4.2(c), shall deposit with the Paying Agent funds sufficient to pay
the applicable Redemption Price and shall give the Paying Agent irrevocable
instructions and authority to pay the Redemption Price to the Holders thereof
upon surrender of their Trust Securities Certificates. Notwithstanding the
foregoing, Distributions payable on or prior to the Redemption Date for any
Trust Securities called for redemption shall be payable to the Holders of such
Trust Securities as they appear on the Securities Register for the Trust
Securities on the relevant record dates for the related Distribution Dates. If
notice of redemption shall have been given and funds deposited as required, then
upon the date of such deposit, (i) all rights of Securityholders holding Trust
Securities so called for redemption shall cease, except the right of such
Securityholders to receive the Redemption Price, but without interest, (ii) such
Trust Securities shall cease to be Outstanding, (iii) the Clearing Agency for
the Preferred Securities or its nominee, as the registered Holder of the Global
Preferred Securities Certificate, shall receive a registered global certificate
or certificates representing the Debentures to be delivered upon such
distribution with respect to Preferred Securities held by the Clearing Agency or
its nominee, and (iv) any Trust Securities Certificates not held by the Clearing
Agency for the Preferred Securities or its nominee as specified in clause (iii)
above will be deemed to represent

                                       17
<PAGE>

Debentures having a principal amount equal to the stated Liquidation Amount of
the Trust Securities represented thereby and bearing accrued and unpaid interest
in an amount equal to the accumulated and unpaid Distributions on such Trust
Securities until such certificates are presented to the Securities Registrar for
transfer or reissuance. In the event that any date on which any Redemption Price
is payable is not a Business Day, then payment of the Redemption Price payable
on such date shall 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 (and without any
reduction of interest or any other payment in respect of any such acceleration),
in each case with the same force and effect as if made on such date. In the
event that payment of the Redemption Price in respect of any Trust Securities
called for redemption is improperly withheld or refused and not paid either by
the Trust or by the Depositor pursuant to the Guarantee, Distributions on such
Trust Securities shall continue to accumulate, at the then applicable rate, from
the Redemption Date originally established by the Trust for such Trust
Securities to the date such Redemption Price is actually paid, in which case the
actual payment date shall be the date fixed for redemption for purposes of
calculating the Redemption Price.

     (e) Payment of the Redemption Price on the Trust Securities shall be made
to the Holders thereof as they appear on the Securities Register for the Trust
Securities on the relevant record date, which shall be the date fifteen (15)
days prior to the relevant Redemption Date; provided, however, that for any
Trust Securities held in global form, payment of the Redemption Price shall be
made to the Holder thereof as it appears on the Securities Register as of one
Business Day immediately preceding the Redemption Date.

     (f) Subject to Section 4.3(a), if less than all the Outstanding Trust
Securities are to be redeemed on a Redemption Date, then the aggregate
Liquidation Amount of Trust Securities to be redeemed shall be allocated on a
pro rata basis (based on Liquidation Amounts) among the Common Securities and
the Preferred Securities. The particular Preferred Securities to be redeemed
shall be selected not more than sixty (60) days prior to the Redemption Date by
the Property Trustee from the Outstanding Preferred Securities not previously
called for redemption, by such method (including by lot) as the Property Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions (equal to such Liquidation Amount or an integral multiple
of such Liquidation Amount in excess thereof) of the Liquidation Amount of the
Preferred Securities; provided, however, that in the event the redemption
relates only to Preferred Securities purchased and held by the Depositor being
redeemed for a Like Amount of Debentures, the Property Trustee shall select
those particular Preferred Securities for redemption. The Property Trustee shall
promptly notify the Securities Registrar (if other than the Property Trustee) in
writing of the Preferred Securities selected for redemption and, in the case of
any Preferred Securities selected for partial redemption, the Liquidation Amount
thereof to be redeemed. For all purposes of this Trust Agreement, unless the
context otherwise requires, all provisions relating to the redemption of the
Preferred Securities shall relate, in the case of any Preferred Securities
redeemed or to be redeemed only in part, to the portion of the Liquidation
Amount of the Preferred Securities which has been or is to be redeemed.

                                       18
<PAGE>

     Section 4.3. Subordination of the Common Securities.
                  --------------------------------------

     (a) Payment of Distributions (including Additional Amounts, if applicable)
on, and the Redemption Price of, the Trust Securities, as applicable, shall be
made, subject to Section 4.2(f), pro rata among the Common Securities and the
Preferred Securities based on the Liquidation Amount of the Trust Securities;
provided, however, that if on any Distribution Date or Redemption Date any Event
of Default resulting from a Debenture Event of Default shall have occurred and
be continuing, no payment of any Distribution (including Additional Amounts, if
applicable) on, or Redemption Price of, any Common Security, and no other
payment on account of the redemption, liquidation or other acquisition of the
Common Securities, shall be made unless payment in full in cash of all
accumulated and unpaid Distributions (including Additional Amounts, if
applicable) on all Outstanding Preferred Securities for all Distribution periods
terminating on or prior thereto, or in the case of payment of the Redemption
Price the full amount of such Redemption Price on all Outstanding Preferred
Securities then called for redemption, shall have been made or provided for, and
all funds immediately available to the Property Trustee shall first be applied
to the payment in full in cash of all Distributions (including Additional
Amounts, if applicable) on, or the Redemption Price of, the Preferred Securities
then due and payable.

     (b) In the case of the occurrence of any Event of Default resulting from a
Debenture Event of Default, the Holder of the Common Securities shall be deemed
to have waived any right to act with respect to any such Event of Default under
this Trust Agreement until the effect of all such Events of Default with respect
to the Preferred Securities shall have been cured, waived or otherwise
eliminated. Until any such Event of Default under this Trust Agreement with
respect to the Preferred Securities shall have been so cured, waived or
otherwise eliminated, the Property Trustee shall act solely on behalf of the
Holders of the Preferred Securities and not the Holder of the Common Securities,
and only the Holders of the Preferred Securities shall have the right to direct
the Property Trustee to act on their behalf.

     Section 4.4. Payment Procedures. Payments of Distributions (including
                  ------------------
Additional Amounts, if applicable) in respect of the Preferred Securities shall
be made by check mailed to the address of the Person entitled thereto as such
address shall appear on the Securities Register or, if the Preferred Securities
are held by a Clearing Agency, such Distributions shall be made to the Clearing
Agency in immediately available funds, which will credit the relevant accounts
on the applicable Distribution Dates. Payments in respect of the Common
Securities shall be made in such manner as shall be mutually agreed between the
Property Trustee and the Common Securityholder.

     Section 4.5. Tax Returns and Reports. The Administrative Trustees shall
                  -----------------------
prepare (or cause to be prepared), at the Depositor's expense, and file all
United States federal, state and local tax and information returns and reports
required to be filed by or in respect of the Trust. In this regard, the
Administrative Trustees shall (a) prepare and file (or cause to be prepared and
filed) the appropriate Internal Revenue Service form required to be filed in
respect of the Trust in each taxable year of the Trust; and (b) prepare and
furnish (or cause to be prepared and furnished) to each Securityholder the
appropriate Internal Revenue Service forms required to be furnished to such
Securityholder or the information required to be provided on such forms. The

                                       19
<PAGE>

Administrative Trustees shall provide the Depositor with a copy of all such
returns and reports promptly after such filing or furnishing. The Property
Trustee shall comply with United States federal withholding and backup
withholding tax laws and information reporting requirements with respect to any
payments to the Securityholders under the Trust Securities.

     Section 4.6. Payment of Taxes, Duties, Etc. of the Trust.   Upon receipt
                  -------------------------------------------
under the Debentures of Additional Payments, the Property Trustee, at the
direction of an Administrative Trustee or the Depositor, shall promptly pay any
taxes, duties, assessments or governmental charges of whatsoever nature (other
than withholding taxes) imposed on the Trust by the United States or any other
taxing authority.

     Section 4.7. Payments under the Indenture. Any amount payable hereunder to
                  ----------------------------
any Holder of Preferred Securities shall be reduced by the amount of any
corresponding payment such Holder has directly received under the Indenture
pursuant to Section 5.14(b) or (c) hereof.

                                  ARTICLE V.
                       THE TRUST SECURITIES CERTIFICATES

     Section 5.1. Initial Ownership. Upon the creation of the Trust and the
                  -----------------
contribution by the Depositor pursuant to Section 2.3 and until the issuance of
the Trust Securities, and at any time during which no Trust Securities are
Outstanding, the Depositor shall be the sole beneficial owner of the Trust.

     Section 5.2. The Trust Securities Certificates. The Preferred Securities
                  ---------------------------------
Certificates shall be issued in minimum denominations of the Liquidation Amount
and integral multiples of such Liquidation Amount in excess thereof, and the
Common Securities Certificates shall be issued in denominations of the
Liquidation Amount and integral multiples thereof. The Trust Securities
Certificates shall be executed on behalf of the Trust by manual or facsimile
signature of at least one Administrative Trustee. The Trust Securities
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on
behalf of the Trust, shall be validly issued and entitled to the benefits of
this Trust Agreement, notwithstanding that such individuals, or any of them,
shall have ceased to be so authorized prior to the delivery of such Trust
Securities Certificates or did not hold such offices at the date of delivery of
such Trust Securities Certificates. A transferee of Trust Securities shall
become a Securityholder, and shall be entitled to the rights and subject to the
obligations of a Securityholder hereunder, upon due registration of such Trust
Securities in such transferee's name pursuant to Sections 5.5, 5.12 and 5.14.

     Section 5.3. Execution, Authentication and Delivery of the Trust Securities
                  --------------------------------------------------------------
Certificates.
------------

     (a) On the Closing Date and, if applicable, the Option Closing Date, as
such term is defined in the Underwriting Agreement, or upon the occurrence of
any of the events described in clauses (i) through (iii) of Section 5.4(b), the
Administrative Trustees shall cause Trust Securities Certificates, evidencing an
aggregate Liquidation Amount of Trust Securities as provided in Sections 2.4 and
2.5, to be executed on behalf of the Trust by the manual or facsimile signature

                                       20
<PAGE>

of at least one of the Administrative Trustees and delivered to or upon the
written order of the Depositor, signed by its Chairman and Chief Executive
Officer, President, any Senior or Executive Vice President, the Treasurer or any
Assistant Treasurer without further corporate action by the Depositor.

     (b) A Preferred Securities Certificate shall not be valid until
authenticated by the manual signature of an authorized signatory of the Property
Trustee in substantially the form of Exhibit E attached hereto. The signature
                                     ---------
shall be conclusive evidence that the Preferred Securities Certificate has been
authenticated under this Trust Agreement. Each Preferred Security Certificate
shall be dated the date of its authentication.

     (c) Upon the written order of the Trust signed by one of the Administrative
Trustees, the Property Trustee shall authenticate and make available for
delivery the Preferred Securities Certificates.

     (d) The Property Trustee may appoint an Authenticating Agent acceptable to
the Trust to authenticate the Preferred Securities. An Authenticating Agent may
authenticate the Preferred Securities whenever the Property Trustee may do so.
Each reference in this Trust Agreement to authentication by the Property Trustee
includes authentication by such agent. An Authenticating Agent has the same
rights as the Property Trustee to deal with the Depositor or the Trust.

     Section 5.4. Global Preferred Security.
                  -------------------------

     (a) Any Global Preferred Security issued under this Trust Agreement shall
be registered in the name of the nominee of the Clearing Agency and, unless or
until other arrangements are requested by the Clearing Agency, delivered to and
held by the Property Trustee as custodian for the Clearing Agency (and the
Property Trustee is hereby authorized to serve as such custodian), and such
Global Preferred Security shall constitute a single Preferred Security for all
purposes of this Trust Agreement.

     (b) Notwithstanding any other provision in this Trust Agreement, no Global
Preferred Security may be exchanged for Preferred Securities registered in the
names of persons other than the Depositary or its nominee unless (i) the
Depositary notifies the Administrative Trustees and Property Trustee in writing
that it is unwilling or unable to continue as a depositary for such Global
Preferred Securities and the Depositor is unable to locate a qualified successor
depositary, (ii) the Depositor executes and delivers to the Administrative
Trustees and Property Trustee a written order stating that it elects to
terminate the book-entry system through the Depositary, or (iii) there shall
have occurred and be continuing a Debenture Event of Default.

     (c) If a Preferred Security that is not a Global Security is to be
exchanged in whole or in part for a beneficial interest in a Global Preferred
Security, then either (i) the Global Preferred Security Certificate evidencing
such Global Preferred Security shall be so surrendered for exchange or
cancellation as provided in this Article V, or (ii) the Liquidation Amount
thereof shall be reduced or increased by an amount equal to the portion thereof
to be so exchanged or canceled, or equal to the Liquidation Amount of such other
Preferred Securities to be so exchanged for a beneficial interest therein, as
the case may be, by means of an appropriate

                                       21
<PAGE>

adjustment made on the records of the Securities Registrar, whereupon the
Property Trustee shall instruct the Clearing Agency or its authorized
representative to make a corresponding adjustment to its records. Upon any such
surrender or adjustment of a Global Preferred Security by the Clearing Agency,
accompanied by registration instructions, the Administrative Trustees shall
execute and the Property Trustee shall, subject to Section 5.5(b) and as
otherwise provided in this Article V, authenticate and deliver any Preferred
Securities issuable in exchange for such Global Preferred Security (or any
portion thereof) in accordance with the instructions of the Clearing Agency. The
Property Trustee shall not be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be fully protected in
relying on, such instructions.

     (d) Every Preferred Security executed, authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global
Preferred Security or any portion thereof, whether pursuant to this Article V or
otherwise, shall be executed, authenticated and delivered in the form of, and
shall be, a Global Preferred Security, unless such Global Preferred Security is
registered in the name of a Person other than the Clearing Agency for such
Global Preferred Security or a nominee thereof.

     (e) The Clearing Agency or its nominee, as the registered owner of a Global
Preferred Security, shall be the Holder of the Preferred Securities represented
by such Global Preferred Security for all purposes under this Trust Agreement
and the Preferred Securities, and owners of beneficial interests in such Global
Preferred Security shall hold such interests pursuant to the rules and
procedures of such Clearing Agency (the "Applicable Procedures"), and shall not
be considered the Holders thereof under this Trust Agreement and, except as
otherwise provided herein, shall not be entitled to receive physical delivery of
any such Preferred Securities in definitive form.  Accordingly, any such owner's
beneficial interest in the Global Preferred Securities shall be shown only on,
and the transfer of such interest shall be effected only through, records
maintained by the Clearing Agency or its nominee. Neither the Property Trustee,
the Securities Registrar nor the Depositor shall have any liability in respect
of any transfers effected by the Clearing Agency.

     (f) The rights of owners of beneficial interests in a Global Preferred
Security shall be exercised only through the Clearing Agency and shall be
limited to those established by law and agreements between such owners and the
Clearing Agency.

     Section 5.5. Registration of Transfer and Exchange of the Preferred
                  ------------------------------------------------------
Securities Certificates.
-----------------------

     (a) The Depositor shall keep or cause to be kept, at the office or agency
maintained pursuant to Section 5.9, a register or registers for the purpose of
registering the Trust Securities Certificates and, subject to the provisions of
Section 5.4, transfers and exchanges of the Preferred Securities Certificates
(herein referred to as the "Securities Register") in which the registrar
designated by the Depositor (the "Securities Registrar"), subject to such
reasonable regulations as it may prescribe, shall provide for the registration
of the Preferred Securities Certificates and the Common Securities Certificates
(subject to Section 5.11 in the case of the Common Securities Certificates) and
registration of transfers and exchanges of the Preferred Securities

                                       22
<PAGE>

Certificates as herein provided. The Depositor hereby designates the Property
Trustee as the initial Securities Registrar.

     (b) Subject to the provisions of Section 5.4, upon surrender for
registration of transfer of any Preferred Securities Certificate at the office
or agency maintained pursuant to Section 5.9, the Administrative Trustees or any
one of them shall execute in accordance with Section 5.2 and the Property
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Preferred Securities Certificates in authorized
denominations of a like aggregate Liquidation Amount dated the date of
authentication. The Securities Registrar shall not be required to register the
transfer of any of the Preferred Securities that have been called for
redemption. At the option of a Holder, the Preferred Securities Certificates may
be exchanged for other Preferred Securities Certificates in authorized
denominations of the same class and of a like aggregate Liquidation Amount upon
surrender of the Preferred Securities Certificates to be exchanged at the office
or agency maintained pursuant to Section 5.9.

     (c) Every Preferred Securities Certificate presented or surrendered for
registration of transfer or exchange, subject to the provisions of Section 5.4,
shall be accompanied by a written instrument of transfer in form satisfactory to
the Property Trustee and the Securities Registrar duly executed by the Holder or
his attorney duly authorized in writing. Each Preferred Securities Certificate
surrendered for registration of transfer or exchange shall be canceled and
subsequently disposed of by the Property Trustee in accordance with its
customary practice. The Trust shall not be required to (i) issue, register the
transfer of, or exchange any of the Preferred Securities during a period
beginning at the opening of business 15 calendar days before the date of mailing
of a notice of redemption of any of the Preferred Securities called for
redemption and ending at the close of business on the day of such mailing; or
(ii) register the transfer of or exchange any of the Preferred Securities so
selected for redemption, in whole or in part, except the unredeemed portion of
any such Preferred Securities being redeemed in part.

     (d) No service charge shall be made for any registration of transfer or
exchange of Preferred Securities Certificates, subject to the provisions of
Section 5.4, but the Securities Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Preferred Securities
Certificates.

     (e) Preferred Securities may only be transferred, in whole or in part, in
accordance with the terms and conditions set forth in this Trust Agreement. Any
transfer or purported transfer of any Preferred Security not made in accordance
with this Trust Agreement shall be null and void. A Preferred Security that is
not a Global Preferred Security may be transferred, in whole or in part, to a
Person who takes delivery in the form of another Preferred Security that is not
a Global Preferred Security as provided in this Section 5.5. A beneficial
interest in a Global Preferred Security may be exchanged for a Preferred
Security that is not a Global Preferred Security only as provided in Section
5.4.

     Section 5.6. Mutilated, Destroyed, Lost or Stolen Trust Securities
                  -----------------------------------------------------
Certificates. If (a) any mutilated Trust Securities Certificate shall be
------------
surrendered to the Securities Registrar, or if the Securities Registrar shall
receive evidence to its satisfaction of the destruction, loss or theft of

                                       23
<PAGE>

any Trust Securities Certificate; and (b) there shall be delivered to the
Securities Registrar, the Property Trustee and the Administrative Trustees such
security or indemnity as may be required by them to save each of them harmless,
then in the absence of notice that such Trust Securities Certificate shall have
been acquired by a protected purchaser, the Administrative Trustees, or any one
of them, on behalf of the Trust shall execute and make available for delivery,
and the Property Trustee shall authenticate if necessary, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Trust Securities
Certificate, a new Trust Securities Certificate of like class, tenor and
denomination. In connection with the issuance of any new Trust Securities
Certificate under this Section 5.6, the Administrative Trustees or the
Securities Registrar 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 Trust Securities Certificate issued pursuant to this Section 5.6
shall constitute conclusive evidence of an undivided beneficial interest in the
assets of the Trust, as if originally issued, whether or not the lost, stolen or
destroyed Trust Securities Certificate shall be found at any time.

     Section 5.7. Persons Deemed the Securityholders. The Trustees, the Paying
                  ----------------------------------
Agent and the Securities Registrar shall treat the Person in whose name any
Trust Securities Certificate shall be registered in the Securities Register as
the owner of such Trust Securities Certificate for the purpose of receiving
Distributions and for all other purposes whatsoever, and neither the Trustees
nor the Securities Registrar shall be bound by any notice to the contrary.

     Section 5.8. Access to List of the Securityholders' Names and Addresses. At
                  ----------------------------------------------------------
any time when the Property Trustee is not also acting as the Securities
Registrar, the Administrative Trustees or the Depositor shall furnish or cause
to be furnished to the Property Trustee (a) within five Business Days prior to
March 15, June 15, September 15 and December 15 in each year, a list, in such
form as the Property Trustee may reasonably require, of the names and addresses
of the Securityholders as of the most recent record date; and (b) promptly after
receipt by any Administrative Trustee or the Depositor of a request therefor
from the Property Trustee in order to enable the Property Trustee to discharge
its obligations under this Trust Agreement, in each case to the extent such
information is in the possession or control of the Administrative Trustees or
the Depositor and is not identical to a previously supplied list or has not
otherwise been received by the Property Trustee in its capacity as Securities
Registrar. The rights of the Securityholders to communicate with other
Securityholders with respect to their rights under this Trust Agreement or under
the Trust Securities, and the corresponding rights of the Trustee shall be as
provided in the Trust Indenture Act. Each Holder, by receiving and holding a
Trust Securities Certificate, and each owner shall be deemed to have agreed not
to hold the Depositor, the Property Trustee or the Administrative Trustees
accountable by reason of the disclosure of its name and address, regardless of
the source from which such information was derived.

     Section 5.9. Maintenance of Office or Agency. The Administrative Trustees
                  -------------------------------
shall maintain in a location or locations designated by the Administrative
Trustees, an office or offices or agency or agencies where the Preferred
Securities Certificates may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Trustees in respect of the
Trust Securities Certificates may be served. The Administrative Trustees
initially designate the Corporate Trust Office of the Property Trustee as the
office for such purposes. The Administrative Trustees shall give prompt written
notice to the Depositor and to the

                                       24
<PAGE>

Securityholders of any change in the location of the Securities Register or any
such office or agency.

     Section 5.10. Appointment of the Paying Agent. The Paying Agent shall
                   -------------------------------
initially be the Property Trustee, and any co-paying agent chosen by the
Property Trustee must be acceptable to the Administrative Trustees and the
Depositor. The Paying Agent shall make Distributions to the Securityholders from
the Payment Account and shall report the amounts of such Distributions to the
Property Trustee and the Administrative Trustees. Any Paying Agent shall have
the revocable power to withdraw funds from the Payment Account for the purpose
of making the Distributions referred to above. The Administrative Trustees may
revoke such power and remove the Paying Agent if such Trustees determine, in
their sole discretion, that the Paying Agent shall have failed to perform its
obligations under this Trust Agreement in any material respect. Any Person
acting as Paying Agent shall be permitted to resign as Paying Agent upon thirty
(30) days' written notice to the Administrative Trustees, the Property Trustee
and the Depositor. In the event that the Property Trustee shall no longer be the
Paying Agent or a successor Paying Agent shall resign or its authority to act be
revoked, the Administrative Trustees shall appoint a successor (which shall be a
bank or trust company) that is acceptable to the Property Trustee and the
Depositor to act as the Paying Agent. The Administrative Trustees shall cause
such successor Paying Agent or any additional Paying Agent appointed by the
Administrative Trustees to execute and deliver to the Trustees an instrument in
which such successor Paying Agent or additional Paying Agent shall agree with
the Trustees that as Paying Agent, such successor Paying Agent or additional
Paying Agent shall hold all sums, if any, held by it for payment to the
Securityholders in trust for the benefit of the Securityholders entitled thereto
until such sums shall be paid to such Securityholders. The Paying Agent shall
return all unclaimed funds to the Property Trustee and, upon removal of a Paying
Agent, such Paying Agent shall also return all funds in its possession to the
Property Trustee. The provisions of Sections 8.1, 8.3 and 8.6 shall apply to the
Property Trustee also in its role as the Paying Agent, for so long as the
Property Trustee shall act as Paying Agent and, to the extent applicable, to any
other Paying Agent appointed hereunder. Any reference in this Trust Agreement to
the Paying Agent shall include any co-paying agent unless the context requires
otherwise.

     Section 5.11. Ownership of the Common Securities by the Depositor. On the
                   ---------------------------------------------------
Closing Date, the Depositor shall acquire and retain beneficial and record
ownership of the Common Securities. To the fullest extent permitted by law, any
attempted transfer of the Common Securities (other than a transfer in connection
with a merger or consolidation of the Depositor into another corporation
pursuant to Section 12.1 of the Indenture) shall be void. The Administrative
Trustees shall cause each Common Securities Certificate issued to the Depositor
to contain a legend stating "THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN
COMPLIANCE WITH SECTION 5.11 OF THE TRUST AGREEMENT".

     Section 5.12. The Trust Securities Certificates.
                   ---------------------------------

     (a) Upon the issuance of the Preferred Securities Certificates, the
Trustees shall recognize the record holders of the Preferred Securities
Certificates as the Securityholders. The Preferred Securities Certificates shall
be issued in the form of one or more fully registered Global Preferred
Securities Certificates which will be deposited with or on behalf of the
Clearing

                                       25
<PAGE>

Agency and registered in the name of the Clearing Agency's nominee. Unless and
until it is exchangeable in whole or in part for the Preferred Securities in
definitive form, a Global Preferred Security may not be transferred except as a
whole by the Clearing Agency to a nominee of the Clearing Agency or by a nominee
of the Clearing Agency to the Clearing Agency or another nominee of the Clearing
Agency or by the Clearing Agency or any such nominee to a successor of such
Clearing Agency or a nominee of such successor.

     (b) A single Common Securities Certificate representing the Common
Securities shall be issued to the Depositor in the form of a definitive Common
Securities Certificate.

     Section 5.13. Notices. To the extent that a notice or other communication
                   -------
to the Holders is required under this Trust Agreement, for so long as Preferred
Securities are represented by a Global Preferred Securities Certificate, the
Trustees shall give all such notices and communications specified herein to be
given to the Clearing Agency, and shall have no obligation to provide notice to
the owners of the beneficial interest in the Global Preferred Securities.

     Section 5.14. Rights of the Securityholders.
                   -----------------------------

     (a) The legal title to the Trust Property is vested exclusively in the
Property Trustee (in its capacity as such) in accordance with Section 2.9, and
the Securityholders shall not have any right or title therein other than the
undivided beneficial interest in the assets of the Trust conferred by their
Trust Securities, and they shall have no right to call for any partition or
division of property, profits or rights of the Trust except as described below.
The Trust Securities shall be personal property giving only the rights
specifically set forth therein and in this Trust Agreement. The Trust Securities
shall have no preemptive or similar rights to subscribe for additional Trust
Securities.  When issued and delivered to Holders of the Preferred Securities
against payment of the purchase price therefor, the Preferred Securities shall
be fully paid and, subject to the next following sentence, nonassessable
undivided beneficial interests in the assets of the Trust. The Holders of the
Preferred Securities, in their capacities as such, 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.

     (b) For so long as any of the Preferred Securities remain Outstanding, if,
upon a Debenture Event of Default, the Debenture Trustee fails or the holders of
not less than twenty-five percent (25%) in principal amount of the outstanding
Debentures fail to declare the principal of all of the Debentures to be
immediately due and payable, the Holders of at least twenty-five percent (25%)
in Liquidation Amount of the Preferred Securities then Outstanding shall have
such right by a notice in writing to the Depositor and the Debenture Trustee,
and upon any such declaration such principal amount of and the accrued interest
on all of the Debentures shall become immediately due and payable, provided that
the payment of principal and interest on such Debentures shall remain
subordinated to the extent provided in the Indenture.

     (c) For so long as any of the Preferred Securities remain Outstanding, upon
a Debenture Event of Default arising from the failure to pay interest or
principal on the Debentures, the Holders of any of the Preferred Securities then
Outstanding shall, to the fullest extent permitted

                                       26
<PAGE>

by law, have the right to directly institute proceedings for enforcement of
payment to such Holders of principal of or interest on the Debentures having a
principal amount equal to the Liquidation Amount of the Preferred Securities of
such Holders.

                                  ARTICLE VI.
                 ACTS OF THE SECURITYHOLDERS; MEETINGS; VOTING

     Section 6.1. Limitations on Voting Rights.
                  ----------------------------

     (a) Except as provided in this Section 6.1, in Sections 5.14, 8.10 and 10.2
and in the Indenture and as otherwise set forth in the Guarantee or as required
by law, no Holder of Preferred Securities shall have any right to vote or in any
manner otherwise control the administration, operation and management of the
Trust or the obligations of the parties hereto; nor shall anything herein set
forth or contained in the terms of the Trust Securities Certificates be
construed so as to constitute the Securityholders from time to time as partners
or members of an association.

     (b) So long as any Debentures are held by the Property Trustee, on behalf
of the Trust, the Trustees shall not (i) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee or
executing any trust or power conferred on the Debenture Trustee with respect to
such Debentures; (ii) waive any past default which is waivable under Article VII
of 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, without, in each case,
obtaining the prior approval of the Holders of not less than a majority in
Liquidation Amount of all the Outstanding Preferred Securities; provided,
however, that where a consent under the Indenture would require the consent of
each holder of outstanding Debentures affected thereby, no such consent shall be
given by the Property Trustee without the prior written consent of each Holder
of the Preferred Securities. The Trustees shall not revoke any action previously
authorized or approved by a vote of the Holders of the Outstanding Preferred
Securities, except when authorized by a subsequent vote of the Holders of the
Outstanding Preferred Securities. The Property Trustee shall notify each Holder
of the Outstanding Preferred Securities of any notice of default received from
the Debenture Trustee with respect to the Debentures. In addition to obtaining
the foregoing approvals of the Holders of the Preferred Securities, prior to
taking any of the foregoing actions, the Trustees shall, at the expense of the
Depositor, obtain an Opinion of Counsel experienced in such matters to the
effect that the Trust shall continue to be classified as a grantor trust and not
as an association taxable as a corporation for United States federal income tax
purposes on account of such action.

     (c) If any proposed amendment to the Trust Agreement provides for, or the
Trustees otherwise propose to effect, (i) any action that would adversely affect
in any material respect the powers, preferences or special rights of the Holders
of the Preferred Securities, whether by way of amendment to this Trust Agreement
or otherwise; or (ii) the dissolution, winding-up or termination of the Trust,
other than pursuant to the terms of this Trust Agreement, then the Holders of
the Outstanding Preferred Securities, as a class, shall be entitled to vote on
such amendment or proposal, and such amendment or proposal shall not be
effective except with the

                                       27
<PAGE>

approval of the Holders of at least a Majority in Liquidation Amount of the
Outstanding Preferred Securities. No amendment to this Trust Agreement may be
made if, as a result of such amendment, the Trust would cease to be classified
as a grantor trust or would be classified as an association taxable as a
corporation for United States federal income tax purposes.

     Section 6.2. Notice of Meetings. Notice of all meetings of the Holders of
                  ------------------
Preferred Securities, stating the time, place and purpose of the meeting, shall
be given by the Property Trustee pursuant to Section 10.8 to each such Holder,
at his or her registered address, at least fifteen (15) days and not more than
ninety (90) days before the meeting. At any such meeting, any business properly
before the meeting may be so considered whether or not stated in the notice of
the meeting. Any adjourned meeting may be held as adjourned without further
notice.

     Section 6.3. Meetings of Holders of Preferred Securities.
                  -------------------------------------------

     (a) No annual meeting of the Securityholders is required to be held. The
Administrative Trustees, however, shall call a meeting of the Securityholders to
vote on any matter in respect of which the Holders of Preferred Securities are
entitled to vote upon the written request of the Holders of not less than
twenty-five percent (25%) in Liquidation Amount of all Outstanding Preferred
Securities, and the Administrative Trustees or the Property Trustee may, at any
time in their discretion, call a meeting of the Holders of Preferred Securities
to vote on any matters as to which such Holders are entitled to vote.

     (b) The Holders of not less than fifty percent (50%) in Liquidation Amount
of all Outstanding Preferred Securities, present in person or by proxy, shall
constitute a quorum at any meeting of the Securityholders.

     (c) If a quorum is present at a meeting, an affirmative vote by the Holders
of not less than a majority in Liquidation Amount of the Preferred Securities
held by the Holders present, either in person or by proxy, at such meeting shall
constitute the action of the Securityholders, unless this Trust Agreement
requires a different number of affirmative votes.

     Section 6.4. Voting Rights. The Securityholders shall be entitled to one
                  -------------
vote for each dollar value of Liquidation Amount represented by their Trust
Securities (with any fractional multiple thereof rounded up or down as the case
may be to the closest integral multiple) in respect of any matter as to which
such Securityholders are entitled to vote (and such dollar value shall be $10
per Preferred Security until such time, if any, as the Liquidation Amount is
changed as provided herein).

     Section 6.5. Proxies, Etc. At any meeting of the Securityholders, any
                  ------------
Securityholder entitled to vote thereat may vote by proxy, provided that no
proxy shall be voted at any meeting unless it shall have been placed on file
with the Administrative Trustees, or with such other officer or agent of the
Trust as the Administrative Trustees may direct, for verification prior to the
time at which such vote shall be taken. Only Holders shall be entitled to vote.
When Trust Securities are held jointly by several persons, any one of them may
vote at any meeting in person or by proxy in respect of such Trust Securities,
but if more than one of them shall be present at such meeting in person or by
proxy, and such joint owners or their proxies so present disagree as

                                       28
<PAGE>

to any vote to be cast, such vote shall not be received in respect of such Trust
Securities. A proxy purporting to be executed by or on behalf of a
Securityholder shall be deemed valid unless challenged at or prior to its
exercise, and, the burden of proving invalidity shall rest on the challenger. No
proxy shall be valid more than three years after its date of execution.

     Section 6.6. Securityholder Action by Written Consent. Any action which may
                  ----------------------------------------
be taken by the Securityholders at a meeting may be taken without a meeting if
the Securityholders holding Trust Securities having an aggregate Liquidation
Amount not less than a majority of the aggregate Liquidation Amount of all of
the outstanding Trust Securities entitled to vote in respect of such action (or
such larger proportion thereof as shall be required by any express provision of
this Trust Agreement) shall consent to the action in writing.

     Section 6.7. Record Date for Voting and Other Purposes. For the purposes of
                  -----------------------------------------
determining the Securityholders who are entitled to notice of and to vote at any
meeting or by written consent, or to participate in any Distribution on the
Trust Securities in respect of which a record date is not otherwise provided for
in this Trust Agreement, or for the purpose of any other action, the
Administrative Trustees or the Property Trustee may from time to time fix a
date, not more than ninety (90) days prior to the date of any meeting of the
Securityholders or the payment of Distribution or other action, as the case may
be, as a record date for the determination of the identity of the
Securityholders of record for such purposes.

     Section 6.8. Acts of the Securityholders.
                  ---------------------------

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Trust Agreement to be given, made
or taken by the Securityholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Securityholders in
person or by an agent duly appointed in writing, and, except as otherwise
expressly provided herein, such action shall become effective when such
instrument or instruments are delivered to an Administrative Trustee. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Securityholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Trust Agreement and (subject to Section 8.1) conclusive in favor
of the Trustees, if made in the manner provided in this Section 6.8.

     (b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him or her the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his or her authority. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which any Trustee receiving the same deems
sufficient.

     (c) The ownership of the Preferred Securities shall be proved by the
Securities Register.

                                       29
<PAGE>

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Securityholder of any Trust Security shall bind every future
Securityholder of the same Trust Security and the Securityholder of every Trust
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustees or the Trust in reliance thereon, whether or not
notation of such action is made upon such Trust Security.

     (e) Without limiting the foregoing, a Securityholder entitled hereunder to
take any action hereunder with regard to any particular Trust Security may do so
with regard to all or any part of the Liquidation Amount of such Trust Security
or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such Liquidation Amount.

     (f) A Securityholder may institute a legal proceeding directly against the
Depositor under the Guarantee to enforce its rights under the Guarantee without
first instituting a legal proceeding against the Guarantee Trustee (as defined
in the Guarantee), the Trust or any Person.

     Section 6.9. Inspection of Records. Upon reasonable notice to the
                  ---------------------
Administrative Trustees and the Property Trustee, the records of the Trust shall
be open to inspection at the principal executive office of the Trust (as
indicated in Section 2.2) to Holders of the Trust Securities during normal
business hours for any purpose reasonably related to such Securityholder's
interest as a Securityholder.

                                 ARTICLE VII.
                        REPRESENTATIONS AND WARRANTIES

     Section 7.1. Representations and Warranties of the Bank and the Property
                  -----------------------------------------------------------
Trustee. The Bank and the Property Trustee, each severally on behalf of and as
-------
to itself only, as of the date hereof, and each successor Property Trustee at
the time of the successor Property Trustee's acceptance of its appointment as
Property Trustee hereunder (in the case of a successor Property Trustee, the
term "Bank" as used herein shall be deemed to refer to such successor Property
Trustee in its separate corporate capacity) hereby represents and warrants (as
applicable) for the benefit of the Depositor and the Securityholders that:

     (a) the Bank is a banking corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware;

     (b) the Bank has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Trust Agreement;

     (c) this Trust Agreement has been duly authorized, executed and delivered
by the Property Trustee and constitutes the valid and legally binding agreement
of the Property Trustee, enforceable against it in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general principles of equity;

                                       30
<PAGE>

     (d) the execution, delivery and performance by the Property Trustee of this
Trust Agreement has been duly authorized by all necessary corporate or other
action on the part of the Property Trustee and does not require any approval of
the stockholders of the Bank, and such execution, delivery and performance shall
not (i) violate the Bank's charter or by-laws; (ii) violate any provision of, or
constitute, with or without notice or lapse of time, a default under, or result
in the creation or imposition of any Lien on any properties included in the
Trust Property pursuant to the provisions of, any indenture, mortgage, credit
agreement, license or other agreement or instrument to which the Property
Trustee or the Bank is a party or by which it is bound; or (iii) violate any
State of Delaware or United States federal law, governmental rule or regulation
as the case may be, governing the banking or trust powers of the Bank or the
Property Trustee (as appropriate in context) or any order, judgment or decree
applicable to the Property Trustee or the Bank;

     (e) neither the authorization, execution or delivery by the Property
Trustee of this Trust Agreement nor the consummation of any of the transactions
by the Property Trustee contemplated herein requires the consent or approval of,
the giving of notice to, the registration with or the taking of any other action
with respect to any governmental authority or agency under any State of Delaware
or United States federal law governing the banking or trust powers of the Bank
or the Property Trustee, as the case may be;

     (f) there are no proceedings pending or, to the best of the Property
Trustee's knowledge, threatened against or affecting the Bank or the Property
Trustee in any court or before any governmental authority, agency or arbitration
board or tribunal which, individually or in the aggregate, would materially and
adversely affect the Trust or would question the right, power and authority of
the Property Trustee to enter into or perform its obligations as one of the
Trustees under this Trust Agreement; and

     (g) the Property Trustee is a Person eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000.

     Section 7.2. Representations and Warranties of the Delaware Bank and the
                  -----------------------------------------------------------
Delaware Trustee. The Delaware Bank and the Delaware Trustee, each severally on
----------------
behalf of and as to itself only, as of the date hereof, and each successor
Delaware Trustee at the time of the successor Delaware Trustee's acceptance of
appointment as Delaware Trustee hereunder (the term "Delaware Bank" being used
to refer to such successor Delaware Trustee in its separate corporate capacity),
hereby represents and warrants (as applicable) for the benefit of the Depositor
and the Securityholders that:

     (a) the Delaware Bank is a banking corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware;

     (b) the Delaware Bank has full corporate power, authority and legal right
to execute, deliver and perform its obligations under this Trust Agreement and
has taken all necessary action to authorize the execution, delivery and
performance by it of this Trust Agreement;

                                       31
<PAGE>

     (c) this Trust Agreement has been duly authorized, executed and delivered
by the Delaware Trustee and constitutes the valid and legally binding agreement
of the Delaware Trustee, enforceable against it in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general principles of equity;

     (d) the execution, delivery and performance by the Delaware Trustee of this
Trust Agreement has been duly authorized by all necessary corporate or other
action on the part of the Delaware Trustee and does not require any approval of
the stockholders of the Delaware Bank, and such execution, delivery and
performance shall not (i) violate the Delaware Bank's charter or by-laws; (ii)
violate any provision of, or constitute, with or without notice or lapse of
time, a default under, or result in the creation or imposition of any Lien on
any properties included in the Trust Property pursuant to the provisions of, any
indenture, mortgage, credit agreement, license or other agreement or instrument
to which the Delaware Bank or the Delaware Trustee is a party or by which it is
bound; or (iii) violate any State of Delaware or United States federal law,
governmental rule or regulation, as the case may be, governing the banking or
trust powers of the Delaware Bank or the Delaware Trustee (as appropriate in
context) or any order, judgment or decree applicable to the Delaware Bank or the
Delaware Trustee;

     (e) neither the authorization, execution or delivery by the Delaware
Trustee of this Trust Agreement nor the consummation of any of the transactions
by the Delaware Trustee contemplated herein requires the consent or approval of,
the giving of notice to, the registration with or the taking of any other action
with respect to any governmental authority or agency under any State of Delaware
or United States federal law governing the banking or trust powers of the
Delaware Bank or the Delaware Trustee, as the case may be; and

     (f) there are no proceedings pending or, to the best of the Delaware
Trustee's knowledge, threatened against or affecting the Delaware Bank or the
Delaware Trustee in any court or before any governmental authority, agency or
arbitration board or tribunal which, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power and
authority of the Delaware Trustee to enter into or perform its obligations as
one of the Trustees under this Trust Agreement.

     Section 7.3. Representations and Warranties of the Depositor. The Depositor
                  -----------------------------------------------
hereby represents and warrants for the benefit of the Trustees and the
Securityholders that:

     (a) the Trust Securities Certificates issued on the Closing Date or the
Option Closing Date, if applicable, on behalf of the Trust have been duly
authorized and, shall have been duly and validly executed, issued and delivered
by the Administrative Trustees pursuant to the terms and provisions of, and in
accordance with the requirements of, this Trust Agreement, and the
Securityholders shall be, as of such date, entitled to the benefits of this
Trust Agreement;

     (b) there are no taxes, fees or other governmental charges payable by the
Trust (or the Trustees on behalf of the Trust) under the laws of the State of
Delaware or any political subdivision thereof in connection with the execution,
delivery and performance by the Bank, the Property Trustee or the Delaware
Trustee, as the case may be, of this Trust Agreement;

                                       32
<PAGE>

     (c)  the Depositor is a corporation duly organized, validly existing and in
good standing under the laws of the State of Georgia;

     (d)  the Depositor has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Trust Agreement and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Trust Agreement;

     (e)  this Trust Agreement has been duly authorized, executed and delivered
by the Depositor and constitutes the valid and legally binding agreement of the
Depositor, enforceable against it in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
and to general principles of equity;

                                 ARTICLE VIII.
                                   TRUSTEES

     Section 8.1. Certain Duties and Responsibilities.
                  -----------------------------------

     (a)  The duties and responsibilities of the Trustees shall be as provided
by this Trust Agreement and, in the case of the Property Trustee, by the Trust
Indenture Act. Notwithstanding the foregoing, no provision of this Trust
Agreement shall require any Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. No Administrative
Trustee nor the Delaware Trustee shall be liable for its act or omissions
hereunder except as a result of its own gross negligence or willful misconduct.
The Property Trustee's liability shall be determined under the Trust Indenture
Act. Whether or not therein expressly so provided, every provision of this Trust
Agreement relating to the conduct or affecting the liability of or affording
protection to the Trustees shall be subject to the provisions of this Section
8.1. To the extent that, at law or in equity, the Delaware Trustee or an
Administrative Trustee has duties (including fiduciary duties) and liabilities
relating thereto to the Trust or to the Securityholders, such Trustee shall not
be liable to the Trust or to any Securityholder for such Trustee's good faith
reliance on the provisions of this Trust Agreement. The provisions of this Trust
Agreement, to the extent that they restrict the duties and liabilities of the
Delaware Trustee or the Administrative Trustees otherwise existing at law or in
equity, are agreed by the Depositor and the Securityholders to replace such
other duties and liabilities of the Delaware Trustee and the Administrative
Trustees, as the case may be.

     (b)  All payments made by the Property Trustee or a Paying Agent in respect
of the Trust Securities shall be made only from the revenue and proceeds from
the Trust Property and only to the extent that there shall be sufficient revenue
or proceeds from the Trust Property to enable the Property Trustee or a Paying
Agent to make payments in accordance with the terms hereof. Each Securityholder,
by its acceptance of a Trust Security, agrees that it shall look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees are not personally
liable to it for any amount distributable in respect of any Trust Security or
for any other liability in respect of any Trust

                                       33
<PAGE>

Security. This Section 8.1(b) does not limit the liability of the Trustees
expressly set forth elsewhere in this Trust Agreement or, in the case of the
Property Trustee, in the Trust Indenture Act.

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

          (i)    the Property Trustee shall not be liable for any error of
     judgment made in good faith by an authorized officer of the Property
     Trustee, unless it shall be proved that the Property Trustee was negligent
     in ascertaining the pertinent facts;

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

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

          (iv)   the Property Trustee shall not be liable for any interest on
     any money received by it except as it may otherwise agree in writing with
     the Depositor, and money held by the Property Trustee need not be
     segregated from other funds held by it except in relation to the Payment
     Account maintained by the Property Trustee pursuant to Section 3.1 and
     except to the extent otherwise required by law; and

          (v)    the Property Trustee shall not be responsible for monitoring
     the compliance by the Administrative Trustees or the Depositor with their
     respective duties under this Trust Agreement, nor shall the Property
     Trustee be liable for the negligence, default or misconduct of the
     Administrative Trustees or the Depositor.

     Section 8.2. Certain Notices.
                  ---------------

     (a)  Within five (5) Business Days after the occurrence of any Event of
Default actually known to a Responsible Officer of the Property Trustee, the
Property Trustee shall transmit, in the manner and to the extent provided in
Section 10.8, notice of such Event of Default to the Securityholders, the
Administrative Trustees and the Depositor, unless such Event of Default shall
have been cured or waived. For purposes of this Section 8.2, the term "Event of
Default" means any event that is, or after notice or lapse of time or both would
become, an Event of Default.

                                       34
<PAGE>

     (b)  The Administrative Trustees shall transmit to the Securityholders in
the manner and to the extent provided in Section 10.8 notice of the Depositor's
election to begin or further extend an Extension Period on the Debentures
(unless such election shall have been revoked), and of any election by the
Depositor to accelerate the Maturity Date of the Debentures within the time
specified for transmitting such notice to the holders of the Debentures pursuant
to the Indenture as originally executed.

     Section 8.3. Certain Rights of the Property Trustee. Subject to the
                  --------------------------------------
provisions of Section 8.1:

     (a)  the Property Trustee may rely and shall be protected in acting or
refraining from acting in good faith upon any resolution, Opinion of Counsel,
certificate, written representation of a Holder or transferee, certificate of
auditors or any other certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

     (b)  if (i) in performing its duties under this Trust Agreement the
Property Trustee is required to decide between alternative courses of action; or
(ii) in construing any of the provisions of this Trust Agreement, the Property
Trustee finds the same ambiguous or inconsistent with other provisions contained
herein; or (iii) the Property Trustee is unsure of the application of any
provision of this Trust Agreement, then, except as to any matter as to which
Holders of the Preferred Securities are entitled to vote under the terms of this
Trust Agreement, the Property Trustee shall deliver a notice to the Depositor
requesting written instructions of the Depositor as to the course of action to
be taken and the Property Trustee is authorized to take such action, or refrain
from taking such action, as the Property Trustee shall be instructed in writing
to take, or to refrain from taking, by the Depositor; provided, however, that if
the Property Trustee does not receive such instructions of the Depositor within
ten (10) Business Days after it has delivered such notice, or such reasonably
shorter period of time set forth in such notice (which to the extent practicable
shall not be less than two (2) Business Days), it may, but shall be under no
duty to, take or refrain from taking such action as it shall deem advisable and
in the best interests of the Securityholders, in which event the Property
Trustee shall have no liability except for its own bad faith, negligence or
willful misconduct;

     (c)  any direction or act of the Depositor or the Administrative Trustees
contemplated by this Trust Agreement shall be sufficiently evidenced by an
Officers' Certificate;

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

     (e)  the Property Trustee shall have no duty to see to any recording,
filing or registration of any instrument (including any financing or
continuation statement under the Uniform

                                       35
<PAGE>

Commercial Code of the State of Delaware or any other jurisdiction or, except as
otherwise specifically provided in Section 4.5, any filing under tax or
securities laws) or any re-recording, refiling or reregistration thereof;

     (f)  the Property Trustee may consult with counsel of its choice (which
counsel may be counsel to the Depositor or any of its Affiliates) and the advice
of such counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon and in accordance with such advice, and such counsel may
be counsel to the Depositor or any of its Affiliates, and may include any of its
employees; the Property Trustee shall have the right at any time to seek
instructions concerning the administration of this Trust Agreement from any
court of competent jurisdiction;

     (g)  the Property Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Trust Agreement at the request, order
or direction of any of the Securityholders, pursuant to this Trust Agreement,
unless such Securityholders shall have offered to the Property Trustee security
or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities that might be incurred by it in compliance with such request, order
or direction; provided, however, that nothing contained herein shall relieve the
Property Trustee of the obligation, upon the occurrence of an Event of Default
(that has not been cured or waived) actually known to a Responsible Officer of
the Property Trustee, to exercise such of the rights and powers vested in it by
this Trust Agreement, and to use the same degree of care and skill in their
exercise as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs;

     (h)  the Property Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other evidence of indebtedness or other paper or document,
unless requested in writing to do so by the Holders of not less than a majority
in Liquidation Amount of the Outstanding Preferred Securities, but the Property
Trustee may make such further inquiry or investigation into such facts or
matters as it may see fit;

     (i)  the Property Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through its agents or
attorneys, provided that the Property Trustee shall be responsible for its own
negligence or recklessness with respect to selection of any agent or attorney
appointed by it hereunder;

     (j)  whenever in the administration of this Trust Agreement the Property
Trustee shall deem it desirable to receive instructions with respect to
enforcing any remedy or right or taking any other action hereunder, the Property
Trustee (i) may request instructions from the Holders of the Trust Securities,
which instructions may only be given by the Holders of the same proportion in
Liquidation Amount of the Trust Securities as would be entitled to direct the
Property Trustee under the terms of the Trust 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 acting in accordance with such instructions;

                                       36
<PAGE>

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

     (l)  no provision of this Trust Agreement shall be deemed to impose any
duty or obligation on the Property Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in any
jurisdiction in which it shall be illegal, or in which the Property Trustee
shall be unqualified or incompetent in accordance with applicable law to perform
any such act or acts, or to exercise any such right, power, duty or obligation;
and

     (m)  no permissive power or authority available to the Property Trustee
shall be construed to be a duty.

     Section 8.4. Not Responsible for Recitals or Issuance of Securities. The
                  ------------------------------------------------------
Recitals contained herein and in the Trust Securities Certificates shall be
taken as the statements of the Trust, and the Trustees do not assume any
responsibility for their correctness. The Trustees shall not be accountable for
the use or application by the Depositor of the proceeds of the Debentures.

     Section 8.5. May Hold Securities. Any Trustee or any other agent of any
                  -------------------
Trustee or the Trust, in its individual or any other capacity, may become the
owner or pledgee of the Trust Securities and, subject to Sections 8.8 and 8.13
and except as provided in the definition of the term "Outstanding" in Article I,
may otherwise deal with the Trust with the same rights it would have if it were
not a Trustee or such other agent.

     Section 8.6. Compensation; Indemnity; Fees. The Depositor agrees:
                  -----------------------------

     (a)  to pay to the Trustees from time to time reasonable compensation for
all services rendered by them hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust, in the case of the Property Trustee as set forth in a written agreement
between the Depositor and the Property Trustee);

     (b)  except as otherwise expressly provided herein, to reimburse any
Trustee upon request for all reasonable expenses, disbursements and advances
incurred or made by such Trustee in accordance with any provision of this Trust
Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except to the extent any such expense,
disbursement or advance is attributable to such Trustee's negligence, bad faith
or willful misconduct (or, in the case of the Administrative Trustees or the
Delaware Trustee, to the extent any such expense, disbursement or advance is
attributable to its, his or her gross negligence, bad faith or willful
misconduct);

     (c)  to the fullest extent permitted by applicable law, to indemnify each
of the Trustees, any predecessor Trustee, the Bank and the Delaware Bank (each a
"Fiduciary Indemnified Person") for, and to hold each Fiduciary Indemnified
Person harmless against, any loss, damage, claims, liability, penalty or expense
incurred by such Fiduciary Indemnified Person and arising out of or in
connection with the acceptance or administration of this Trust Agreement,
including the costs and expenses of defending itself against any claim or
liability in connection with the

                                       37
<PAGE>

exercise or performance of any of its powers or duties hereunder, except to the
extent such amount is attributable to such Fiduciary Indemnified Person's own
negligence (in the case of the Property Trustee), gross negligence (in the case
of the Administrative Trustees or the Delaware Trustee), or bad faith or willful
misconduct; and

     (d)  to advance expenses (including legal fees) incurred by a Fiduciary
Indemnified Person in defending any claim, demand, action, suit or proceeding,
from time to time, prior to the final disposition of such claim, demand, action,
suit or proceeding, upon receipt by the Depositor of an undertaking by or on
behalf of such Fiduciary Indemnified Person to repay such amount if it shall be
determined that such Fiduciary Indemnified Person is not entitled to be
indemnified as authorized in this subsection.

     No Trustee may claim any Lien or charge on any Trust Property as a result
of any amount due pursuant to this Section 8.6.

     The provisions of this Section 8.6 shall survive the termination of the
Trust and this Trust Agreement and shall survive the resignation or remand of
any and all Trustees.

     Section 8.7. Corporate Property Trustee Required; Eligibility of Trustees.
                  ------------------------------------------------------------

     (a)  There shall at all times be a Property Trustee hereunder with respect
to the Trust Securities. The Property Trustee shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital
and surplus of at least $50,000,000. If any such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section 8.7,
the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Property Trustee with respect to the Trust
Securities shall cease to be eligible in accordance with the provisions of this
Section 8.7, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article VIII. The Property Trustee and the
Delaware Trustee may, but need not be, the same Person.

     (b)  There shall at all times be one or more Administrative Trustees
hereunder with respect to the Trust Securities. Each Administrative Trustee
shall be either a natural person who is at least twenty-one (21) years of age or
a legal entity that shall act through one or more Persons authorized to bind
that entity.

     (c)  There shall at all times be a Delaware Trustee with respect to the
Trust Securities. The Delaware Trustee shall either be (i) a natural person who
is at least twenty-one (21) years of age and a resident of the State of
Delaware; or (ii) a legal entity with its principal place of business in the
State of Delaware and that otherwise meets the requirements of applicable
Delaware law that shall act through one or more Persons authorized to bind such
entity.

     Section 8.8. Conflicting Interests. If the Property Trustee has or shall
                  ---------------------
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Property Trustee shall

                                       38
<PAGE>

either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the Trust Indenture Act and this
Trust Agreement.

     Section 8.9. Co-Trustees and Separate Trustee.
                  --------------------------------

     (a)  Unless a Debenture Event of Default shall have occurred and be
continuing, at any time or times, for the purpose of meeting the legal
requirements of the Trust Indenture Act or of any jurisdiction in which any part
of the Trust Property may at the time be located, the Depositor shall have power
to appoint, and upon the written request of the Property Trustee, the Depositor
shall for such purpose join with the Property Trustee in the execution, delivery
and performance of all instruments and agreements necessary or proper to
appoint, one or more Persons approved by the Property Trustee either to act as
co-trustee, jointly with the Property Trustee, of all or any part of such Trust
Property, or to the extent required by law to act as separate trustee of any
such property, in either case with such powers as may be provided in the
instrument of appointment, and to vest in such Person or Persons in the capacity
aforesaid, any property, title, right or power deemed necessary or desirable,
subject to the other provisions of this Section 8.9. If the Depositor does not
join in such appointment within fifteen (15) days after the receipt by it of a
request so to do, or in case a Debenture Event of Default has occurred and is
continuing, the Property Trustee alone shall have power to make such
appointment. Any co-trustee or separate trustee appointed pursuant to this
Section 8.9 shall either be (i) a natural Person who is at least twenty-one (21)
years of age and a resident of the United States; or (ii) a legal entity with
its principal place of business in the United States that shall act through one
or more Persons authorized to bind such entity.

     (b)  Should any written instrument from the Depositor be required by any
co-trustee or separate trustee so appointed for more fully confirming to such
co-trustee or separate trustee such property, title, right or power, any and all
such instruments shall, on request, be executed, acknowledged and delivered by
the Depositor.

     (c)  Every co-trustee or separate trustee shall, to the extent permitted by
law, but to such extent only, be appointed subject to the following terms,
namely:

          (i)   The Trust Securities shall be executed and delivered and all
     rights, powers, duties and obligations hereunder in respect of the custody
     of securities, cash and other personal property held by, or required to be
     deposited or pledged with, the Trustees specified hereunder, shall be
     exercised solely by such Trustees and not by such co-trustee or separate
     trustee.

          (ii)  The rights, powers, duties and obligations hereby conferred or
     imposed upon the Property Trustee in respect of any property covered by
     such appointment shall be conferred or imposed upon and exercised or
     performed by the Property Trustee or by the Property Trustee and such co-
     trustee or separate trustee jointly, as shall be provided in the instrument
     appointing such co-trustee or separate trustee, except to the extent that
     under any law of any jurisdiction in which any particular act is to be
     performed, the Property Trustee shall be incompetent or unqualified to
     perform such act, in which event

                                       39
<PAGE>

     such rights, powers, duties and obligations shall be exercised and
     performed by such co-trustee or separate trustee.

          (iii) The Property Trustee at any time, by an instrument in writing
     executed by it, with the written concurrence of the Depositor, may accept
     the resignation of or remove any co-trustee or separate trustee appointed
     under this Section 8.9, and, in case a Debenture Event of Default has
     occurred and is continuing, the Property Trustee shall have the power to
     accept the resignation of, or remove, any such co-trustee or separate
     trustee without the concurrence of the Depositor. Upon the written request
     of the Property Trustee, the Depositor shall join with the Property Trustee
     in the execution, delivery and performance of all instruments and
     agreements necessary or proper to effectuate such resignation or removal. A
     successor to any co-trustee or separate trustee so resigned or removed may
     be appointed in the manner provided in this Section 8.9.

          (iv)  No co-trustee or separate trustee hereunder shall be personally
     liable by reason of any act or omission of the Property Trustee or any
     other trustee hereunder.

          (v)   The Property Trustee shall not be liable by reason of any act of
     a co-trustee or separate trustee.

          (vi)  Any Act of the Holders delivered to the Property Trustee shall
     be deemed to have been delivered to each such co-trustee and separate
     trustee.

     Section 8.10. Resignation and Removal; Appointment of Successor.
                   -------------------------------------------------

     (a)  No resignation or removal of any Trustee (the "Relevant Trustee") and
no appointment of a successor Trustee pursuant to this Article VIII shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 8.11.

     (b)  Subject to the immediately preceding paragraph, the Relevant Trustee
may resign at any time with respect to the Trust Securities by giving written
notice thereof to the Securityholders. If the instrument of acceptance by the
successor Trustee required by Section 8.11 shall not have been delivered to the
Relevant Trustee within thirty (30) days after the giving of such notice of
resignation, the Relevant Trustee may petition, at the expense of the Depositor,
any court of competent jurisdiction for the appointment of a successor Relevant
Trustee with respect to the Trust Securities.

     (c)  Unless a Debenture Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by an Act of the Holder of
the Common Securities. If a Debenture Event of Default shall have occurred and
be continuing, the Property Trustee or the Delaware Trustee, or both of them,
may be removed at such time by an Act of the Holders of not less than a majority
in Liquidation Amount of the Preferred Securities, delivered to the Relevant
Trustee (in its individual capacity and on behalf of the Trust). An
Administrative Trustee may be removed by the Holder of the Common Securities at
any time.

                                       40
<PAGE>

     (d)  If any Trustee shall resign, be removed or become incapable of acting
as Trustee, or if a vacancy shall occur in the office of any Trustee for any
cause, at a time when no Debenture Event of Default shall have occurred and be
continuing, the Holder of the Common Securities, by an Act of such Holder
delivered to the retiring Trustee, shall promptly appoint a successor Trustee or
Trustees with respect to the Trust Securities and the Trust, and the successor
Trustee shall comply with the applicable requirements of Section 8.11. If the
Property Trustee or the Delaware Trustee shall resign, be removed or become
incapable of continuing to act as the Property Trustee or the Delaware Trustee,
as the case may be, at a time when a Debenture Event of Default shall have
occurred and is continuing, the Holders of the Preferred Securities, by an Act
of the Securityholders of not less than a majority in Liquidation Amount of the
Preferred Securities then Outstanding delivered to the retiring Relevant
Trustee, shall promptly appoint a successor Relevant Trustee or Trustees with
respect to the Trust Securities and the Trust, and such successor Trustee shall
comply with the applicable requirements of Section 8.11. If an Administrative
Trustee shall resign, be removed or become incapable of acting as an
Administrative Trustee, at a time when a Debenture Event of Default shall have
occurred and be continuing, the Holder of the Common Securities, by an Act of
such Holder delivered to an Administrative Trustee, shall promptly appoint a
successor Administrative Trustee or Administrative Trustees with respect to the
Trust Securities and the Trust, and such successor Administrative Trustee or
Administrative Trustees shall comply with the applicable requirements of Section
8.11. If no successor Relevant Trustee with respect to the Trust Securities
shall have been so appointed by the Holder of the Common Securities or the
Holders of the Preferred Securities and accepted appointment in the manner
required by Section 8.11, any Securityholder who has been a Securityholder of
Trust Securities for six (6) consecutive months on behalf of himself or herself
and all others similarly situated may petition a court of competent jurisdiction
for the appointment of a successor Relevant Trustee with respect to the Trust
Securities.

     (e)  The Property Trustee shall give notice of each resignation and each
removal of a Trustee and each appointment of a successor Trustee to all the
Securityholders in the manner provided in Section 10.8 and shall give notice to
the Depositor. Each notice shall include the name of the successor Relevant
Trustee and the address of its Corporate Trust Office if it is the Property
Trustee.

     (f)  Notwithstanding the foregoing or any other provision of this Trust
Agreement, in the event any Administrative Trustee or a Delaware Trustee who is
a natural person dies or becomes, in the opinion of the Depositor, incompetent
or incapacitated, the vacancy created by such death, incompetence or incapacity
may be filled by (a) the unanimous act of the remaining Administrative Trustees
if there are at least two of them; or (b) otherwise by the Depositor (with the
successor in each case being a Person who satisfies the eligibility requirement
for Administrative Trustees set forth in Section 8.7).

     Section 8.11. Acceptance of Appointment by Successor.
                   --------------------------------------

     (a)  In case of the appointment hereunder of a successor Relevant Trustee
with respect to the Trust Securities and the Trust, the retiring Relevant
Trustee and each successor Relevant Trustee with respect to the Trust Securities
shall execute and deliver an instrument hereto wherein each successor Relevant
Trustee shall accept such appointment and which shall contain

                                       41
<PAGE>

such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, each successor Relevant Trustee all the rights, powers, trusts
and duties of the retiring Relevant Trustee with respect to the Trust Securities
and the Trust, and upon the execution and delivery of such instrument, the
resignation or removal of the retiring Relevant Trustee shall become effective
to the extent provided therein, and each such successor Relevant Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Relevant Trustee with respect
to the Trust Securities and the Trust; provided, however, that on request of the
Trust or any successor Relevant Trustee, such retiring Relevant Trustee shall
duly assign, transfer and deliver to such successor Relevant Trustee all the
Trust Property, all proceeds thereof and all money held by such retiring
Relevant Trustee hereunder with respect to the Trust Securities and the Trust.

     (b)  Upon request of any such successor Relevant Trustee, the Trust shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Relevant Trustee all such rights, powers and trusts
referred to in the immediately preceding paragraph, as the case may be.

     (c)  No successor Relevant Trustee shall accept its appointment unless at
the time of such acceptance such successor Relevant Trustee shall be qualified
and eligible under this Article VIII.

     Section 8.12. Merger, Conversion, Consolidation or Succession to Business.
                   -----------------------------------------------------------
Any Person into which the Property Trustee, the Delaware Trustee or any
Administrative Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Relevant Trustee shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of such
Relevant Trustee, shall be the successor of such Relevant Trustee hereunder,
provided such Person shall be otherwise qualified and eligible under this
Article VIII, without the execution or filing of any paper or any further act on
the part of any of the parties hereto.

     Section 8.13. Preferential Collection of Claims Against the Depositor or
                   ----------------------------------------------------------
the Trust. If and when the Property Trustee or the Delaware Trustee shall be or
---------
become a creditor of the Depositor or the Trust (or any other obligor upon the
Debentures or the Trust Securities), the Property Trustee or the Delaware
Trustee, as the case may be, shall be subject to and shall take all actions
necessary in order to comply with the provisions of the Trust Indenture Act
regarding the collection of claims against the Depositor or the Trust (or any
such other obligor).

     Section 8.14. Reports by the Property Trustee.
                   -------------------------------

     (a)  The Property Trustee shall transmit to the Securityholders such
reports concerning the Property Trustee, its actions under this Trust Agreement
and the property and funds in its possession in its capacity as the Property
Trustee as may be required pursuant to the Trust Indenture Act at the times and
in the manner provided pursuant thereto.

     (b)  A copy of each such report shall, at the time of such transmission to
the Holders, be filed by the Property Trustee with the American Stock Exchange,
Inc., and each national

                                       42
<PAGE>

securities exchange or other organization upon which the Trust Securities are
listed, and also with the Commission and the Depositor.

     Section 8.15. Reports to the Property Trustee. The Depositor and the
                   -------------------------------
Administrative Trustees on behalf of the Trust shall provide to the Property
Trustee such documents, reports and information as required by Section 314 of
the Trust Indenture Act (if any) and the compliance certificate required by
Section 314(a) of the Trust Indenture Act in the form, in the manner and at the
times required by Section 314 of the Trust Indenture Act.

     Section 8.16. Evidence of Compliance with Conditions Precedent. Each of the
                   ------------------------------------------------
Depositor and the Administrative Trustees on behalf of the Trust shall provide
to the Property Trustee such evidence of compliance with any conditions
precedent, if any, provided for in this Trust Agreement 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) of the Trust Indenture Act shall be given in the form of an Officers'
Certificate.

     Section 8.17. Number of Trustees.
                   ------------------

     (a)  The number of Trustees shall be five, provided that the Holder of all
of the Common Securities by written instrument may increase or decrease the
number of the Administrative Trustees. The Property Trustee and the Delaware
Trustee may be the same Person.

     (b)  If a Trustee ceases to hold office for any reason and the number of
the Administrative Trustees is not reduced pursuant to Section 8.17(a), or if
the number of the Trustees is increased pursuant to Section 8.17(a), a vacancy
shall occur. The vacancy shall be filled with a Trustee appointed in accordance
with Section 8.10.

     (c)  The death, resignation, retirement, removal, bankruptcy, incompetence
or incapacity to perform the duties of a Trustee shall not operate to annul the
Trust. Whenever a vacancy in the number of the Administrative Trustees shall
occur, until such vacancy is filled by the appointment of an Administrative
Trustee in accordance with Section 8.10, the Administrative Trustees in office,
regardless of their number (and notwithstanding any other provision of this
Agreement), shall have all the powers, authority and authorization granted to
the Administrative Trustees and shall discharge all the duties imposed upon the
Administrative Trustees by this Trust Agreement.

     Section 8.18. Delegation of Power.
                   -------------------

     (a)  Any Administrative Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of twenty-one
(21) his or her power for the purpose of executing any documents contemplated in
Section 2.7(a); and

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

                                       43
<PAGE>

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

     Section 8.19. Voting. Except as otherwise provided in this Trust Agreement,
                   ------
the consent or approval of the Administrative Trustees shall require consent or
approval by not less than a majority of the Administrative Trustees, unless
there are only two, in which case both must consent.

                                  ARTICLE IX.
                      TERMINATION, LIQUIDATION AND MERGER

     Section 9.1.  Termination upon Expiration Date. Unless earlier dissolved,
                   --------------------------------
the Trust shall automatically dissolve on September 30, 2031 (the "Expiration
Date") subject to distribution of the Trust Property in accordance with Section
9.4.

     Section 9.2.  Early Termination. The first to occur of any of the following
                   -----------------
events is an "Early Termination Event":

     (a)  the occurrence of a Bankruptcy Event in respect of, or the dissolution
or liquidation of, the Depositor;

     (b)  delivery of written direction to the Property Trustee by the Depositor
at any time (which direction is wholly optional and within the discretion of the
Depositor, subject to Depositor having received prior approval of the Board of
Governors of the Federal Reserve System if so required under applicable
guidelines, policies or regulations thereof) to dissolve the Trust and
distribute the Debentures to the Securityholders in exchange for the Preferred
Securities in accordance with Section 9.4;

     (c)  the redemption of all of the Preferred Securities in connection with
the redemption of all of the Debentures (whether upon a Debenture Redemption
Date or the maturity of the Debentures); and

     (d)  the entry of an order for dissolution of the Trust shall have been
entered by a court of competent jurisdiction.

     Section 9.3.  Termination. The respective obligations and responsibilities
                   -----------
of the Trustees and the Trust created and continued hereby shall terminate upon
the latest to occur of the following: (a) the distribution by the Property
Trustee to the Securityholders upon the liquidation of the Trust pursuant to
Section 9.4, or upon the redemption of all of the Trust Securities pursuant to
Section 4.2, of all amounts required to be distributed hereunder upon the final
payment of the Trust Securities; (b) the payment of any expenses owed by the
Trust; (c) the discharge of all administrative duties of the Administrative
Trustees, including the performance of any tax reporting obligations with
respect to the Trust or the Securityholders; and (d) the filing of a Certificate
of Cancellation by the Administrative Trustees under the Delaware Business Trust
Act.

                                       44
<PAGE>

     Section 9.4. Liquidation.
                  -----------

     (a)  If an Early Termination Event specified in clause (a), (b), or (d) of
Section 9.2 occurs or upon the Expiration Date, the Trust shall be liquidated by
the Trustees as expeditiously as the Trustees determine to be possible by
distributing, after satisfaction of liabilities to creditors of the Trust as
provided by applicable law, to each Securityholder a Like Amount of Debentures,
subject to Section 9.4(d). Notice of liquidation shall be given by the Property
Trustee by first-class mail, postage prepaid, mailed not less than thirty (30)
nor more than sixty (60) days prior to the Liquidation Date to each Holder of
Trust Securities at such Holder's address appearing in the Securities Register.
All notices of liquidation shall:

          (i)   state the Liquidation Date;

          (ii)  state that from and after the Liquidation Date, the Trust
     Securities shall no longer be deemed to be Outstanding and any Trust
     Securities Certificates not surrendered for exchange shall be deemed to
     represent a Like Amount of Debentures; and

          (iii) provide such information with respect to the mechanics by which
     the Holders may exchange the Trust Securities Certificates for the
     Debentures, or, if Section 9.4(d) applies, receive a Liquidation
     Distribution, as the Administrative Trustees or the Property Trustee shall
     deem appropriate.

     (b)  Except where Section 9.2(c) or 9.4(d) applies, in order to effect the
liquidation of the Trust and distribution of the Debentures to the
Securityholders, the Property Trustee shall establish a record date for such
distribution (which shall be not more than forty-five (45) days prior to the
Liquidation Date) and, either itself acting as exchange agent or through the
appointment of a separate exchange agent, shall establish such procedures as it
shall deem appropriate to effect the distribution of Debentures in exchange for
the Outstanding Trust Securities Certificates.

     (c)  Except where Section 9.2(c) or 9.4(d) applies, after the Liquidation
Date, (i) the Trust Securities shall no longer be deemed to be outstanding; (ii)
certificates representing a Like Amount of the Debentures shall be issued to the
Holders of Trust Securities Certificates upon surrender of such certificates to
the Administrative Trustees or their agent for exchange; (iii) the Depositor
shall use its reasonable efforts to have the Debentures included in the American
Stock Exchange, Inc. or on such other securities exchange or other organization
as the Preferred Securities are then listed or traded; (iv) any Trust Securities
Certificates not so surrendered for exchange shall be deemed to represent a Like
Amount of Debentures, accruing interest at the rate provided for in the
Debentures from the last Distribution Date on which a Distribution was made on
such Trust Securities Certificates until such certificates are so surrendered
(and until such certificates are so surrendered, no payments of interest or
principal shall be made to the Holders thereof with respect to such Debentures);
and (v) all rights of the Securityholders holding the Trust Securities shall
cease, except the right of such Securityholders to receive the Debentures upon
surrender of the Trust Securities Certificates.

                                       45
<PAGE>

     (d)  In the event that, notwithstanding the other provisions of this
Section 9.4, whether because of an order for dissolution of the Trust entered by
a court of competent jurisdiction or otherwise, distribution of the Debentures
in the manner provided herein is determined by the Property Trustee not to be
practical, the Trust Property shall be liquidated, and the Trust shall be
dissolved, wound-up and terminated, by the Property Trustee in such manner as
the Property Trustee determines. In such event, on the date of the dissolution,
winding-up or other termination of the Trust, the Securityholders shall be
entitled to receive out of the assets of the Trust available for distribution to
the Securityholders, after satisfaction of liabilities to creditors of the Trust
as provided by applicable law, an amount equal to the Liquidation Amount per
Trust Security plus accumulated and unpaid Distributions thereon to the date of
payment (such amount being the "Liquidation Distribution"). If, upon any such
dissolution, winding-up or termination, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets available to pay in full
the aggregate Liquidation Distribution, then, subject to the next succeeding
sentence, the amounts payable by the Trust on the Trust Securities shall be paid
on a pro rata basis (based upon Liquidation Amounts, subject to Section 4.7).
The Holder of the Common Securities shall be entitled to receive the Liquidation
Distributions upon any such dissolution, winding-up or termination pro rata
(determined as aforesaid) with the Holders of the Preferred Securities, except
that, if a Debenture Event of Default has occurred and is continuing, the
Preferred Securities shall have a priority over the Common Securities.

     Section 9.5. Mergers, Consolidations, Amalgamations or Replacements of the
                  -------------------------------------------------------------
Trust. The Trust may not merge with or into, consolidate, amalgamate or be
-----
replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to, any corporation or other Person, except
pursuant to this Section 9.5. At the request of the Depositor, with the consent
of the Administrative Trustees and without the consent of the Holders of the
Preferred Securities, the Property Trustee or the Delaware Trustee, the Trust
may merge with or into, consolidate, amalgamate or be replaced by, or convey,
transfer or lease its properties and assets substantially as an entirety to, a
trust organized as such under the laws of any State; provided, however, that (a)
such successor entity either (i) expressly assumes all of the obligations of the
Trust with respect to the Preferred Securities; or (ii) 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 in priority with
respect to distributions and payments upon liquidation, redemption and
otherwise; (b) the Depositor expressly appoints a trustee of such successor
entity possessing substantially the same powers and duties as the Property
Trustee as the holder of the Debentures; (c) the Successor Securities are listed
or traded, or any Successor Securities shall be listed or traded upon
notification of issuance, on any national securities exchange or other
organization on which the Preferred Securities are then listed, if any; (d) such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Preferred Securities (including any Successor Securities) in any material
respect; (e) such successor entity has a purpose substantially identical to that
of the Trust; (f) prior to such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, the Depositor has received an
Opinion of Counsel to the effect that (i) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the Holders of the Preferred
Securities (including any Successor Securities) in any material respect; and
(ii) following such merger, consolidation,

                                       46
<PAGE>

amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor
such successor entity shall be required to register as an "investment company"
under the Investment Company Act; and (g) the Depositor owns all of the Common
Securities of such successor entity and guarantees the obligations of such
successor entity under the Successor Securities at least to the extent provided
by the Guarantee, the Debentures, this Trust Agreement and the Expense
Agreement. For purposes of this Section 9.5, any such consolidation, merger,
sale, conveyance, transfer or other disposition as a result of which (a) the
Company is not the surviving Person, and (b) the same Person is not both (i) the
primary obligor in respect of the Debentures and (ii) the Guarantor under the
Preferred Securities Guarantee shall be deemed to constitute a replacement of
the Trust by a successor entity; and provided further, however, that,
notwithstanding the foregoing, in the event that upon the consummation of such a
consolidation, merger, sale, conveyance, transfer or other disposition, the
parent company (if any) of the Company, or its successor, is a bank holding
company or financial holding company or comparably regulated financial
institution, such parent company shall guarantee the obligations of the Trust
(and any successor thereto) under the Preferred Securities (including any
Successor Securities) at least to the extent provided by the Guarantee, the
Debentures, the Trust Agreement and the Expense Agreement. Notwithstanding the
foregoing, the Trust shall not, except with the consent of the Holders of 100%
in Liquidation Amount of the Preferred Securities, consolidate, amalgamate,
merge with or into, or be replaced by, or convey, transfer or lease its
properties and assets substantially as an entirety to, any other Person, or
permit any other Person to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger or replacement would
cause the Trust or the successor entity to be classified as other than a grantor
trust for United States federal income tax purposes.

                                  ARTICLE X.
                           MISCELLANEOUS PROVISIONS

     Section 10.01. Limitation of Rights of the Securityholders. The death or
                    -------------------------------------------
incapacity of any Person having an interest, beneficial or otherwise, in the
Trust Securities shall not operate to terminate this Trust Agreement, nor
entitle the legal representatives or heirs of such Person or any Securityholder
for such Person to claim an accounting, take any action or bring any proceeding
in any court for a partition or winding-up of the arrangements contemplated
hereby, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

     Section 10.2.  Amendment.
                    ---------

     (a)  This Trust Agreement may be amended from time to time by the Trustees
and the Depositor, without the consent of any Securityholders, (i) as provided
in Section 8.11 with respect to acceptance of appointment by a successor
Trustee; (ii) to cure any ambiguity, correct or supplement any provision herein
or therein which may be inconsistent with any other provision herein or therein,
or to make any other provisions with respect to matters or questions arising
under this Trust Agreement, that shall not be inconsistent with the other
provisions of this Trust Agreement; (iii) to modify, eliminate or add to any
provisions of this Trust Agreement to such extent as shall be necessary to
ensure that the Trust shall be classified for United States federal income tax
purposes as a grantor trust at all times that any of the Trust Securities are
outstanding or to ensure that the Trust shall not be required to register as an
"investment company" under the Investment Company Act; or (iv) to reduce or
increase the Liquidation

                                       47
<PAGE>

Amount per Trust Security and simultaneously to correspondingly increase or
decrease the number of Trust Securities issued and Outstanding solely for the
purpose of maintaining the eligibility of the Preferred Securities for quotation
or listing on any national securities exchange or other organization on which
the Preferred Securities are then included, quoted or listed (including, if
applicable, the American Stock Exchange, Inc.); provided, however, that in the
case of clause (ii), such action shall not adversely affect in any material
respect the interests of any Securityholder; and provided further, however, that
in the case of clause (iv) the aggregate Liquidation Amount of the Trust
Securities Outstanding upon completion of any such reduction must be the same as
the aggregate Liquidation Amount of the Trust Securities outstanding immediately
prior to such reduction or increase, and any amendments of this Trust Agreement
shall become effective when notice thereof is given to the Securityholders (or,
in the case of an amendment pursuant to clause (iv), as of the date specified in
the notice).

     (b)  Except as provided in Section 6.1(c) or Section 10.2(c) hereof, any
provision of this Trust Agreement may be amended by the Trustees and the
Depositor (i) with the consent of the Holders of not less than a majority in
Liquidation Amount of the Trust Securities then Outstanding; and (ii) upon
receipt by the Trustees of an Opinion of Counsel to the effect that such
amendment or the exercise of any power granted to the Trustees in accordance
with such amendment shall not affect the Trust's status as a grantor trust for
United States federal income tax purposes or the Trust's exemption from the
status of an "investment company" under the Investment Company Act.

     (c)  In addition to and notwithstanding any other provision in this Trust
Agreement, without the consent of each affected Securityholder (such consent
being obtained in accordance with Section 6.3 or 6.6 hereof), this Trust
Agreement may not be amended to (i) change the amount or timing of any
Distribution on the Trust Securities or otherwise adversely affect the amount of
any Distribution required to be made in respect of the Trust Securities as of a
specified date; or (ii) restrict the right of a Securityholder to institute suit
for the enforcement of any such payment on or after such date.  In addition, and
notwithstanding any other provision herein, without the unanimous consent of the
Securityholders (such consent being obtained in accordance with Section 6.3 or
6.6 hereof), this Section 10.2(c) may not be amended.

     (d)  Notwithstanding any other provisions of this Trust Agreement, no
Trustee shall enter into or consent to any amendment to this Trust Agreement
which would cause the Trust to fail or cease to qualify for the exemption from
the status of an "investment company" under the Investment Company Act or to
fail or cease to be classified as a grantor trust for United States federal
income tax purposes.

     (e)  Notwithstanding anything in this Trust Agreement to the contrary,
without the consent of the Depositor, this Trust Agreement may not be amended in
a manner which imposes any additional obligation on the Depositor.

     (f)  In the event that any amendment to this Trust Agreement is made, the
Administrative Trustees shall promptly provide to the Depositor a copy of such
amendment.

                                       48
<PAGE>

     (g)  Neither the Property Trustee nor the Delaware Trustee shall be
required to enter into any amendment to this Trust Agreement which affects its
own rights, duties or immunities under this Trust Agreement, and no such
amendment shall be binding on them without their prior written consent thereto.
The Property Trustee shall be entitled to receive an Opinion of Counsel and an
Officers' Certificate stating that any amendment to this Trust Agreement is
permitted and authorized under, or has been effected in compliance with, this
Trust Agreement.

     Section 10.3. Separability. In case any provision in this Trust Agreement
                   ------------
or in the Trust Securities Certificates shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     Section 10.4. Governing Law. THIS TRUST AGREEMENT AND THE RIGHTS AND
                   -------------
OBLIGATIONS OF EACH OF THE SECURITYHOLDERS, THE TRUST AND THE TRUSTEES WITH
RESPECT TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE (WITHOUT
REGARD TO ITS CONFLICT OF LAWS PRINCIPLES).

     Section 10.5. Payments Due on Non-Business Day. If the date fixed for any
                   --------------------------------
payment on any Trust Security shall be a day that is not a Business Day, then
such payment need not be made on such date but may be made on the next
succeeding day which is a Business Day, except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day (and without any reduction of interest or any other
payment in respect of any such acceleration), in each case with the same force
and effect as though made on the date fixed for such payment, and no
distribution shall accumulate thereon for the period after such date.

     Section 10.6. Successors. This Trust Agreement shall be binding upon and
                   ----------
shall inure to the benefit of any successor to the Depositor, the Trust or the
Relevant Trustee(s), including any successor by operation of law. Except in
connection with a consolidation, merger or sale involving the Depositor that is
permitted under Article XII of the Indenture and pursuant to which the assignee
agrees in writing to perform the Depositor's obligations hereunder, the
Depositor shall not assign its obligations hereunder.

     Section 10.7. Headings. The Article and Section headings are for
                   --------
convenience only and shall not affect the construction of this Trust Agreement.

     Section 10.8. Reports, Notices and Demands. Any report, notice, demand or
                   ----------------------------
other communication which by any provision of this Trust Agreement is required
or permitted to be given or served to or upon any Securityholder or the
Depositor may be given or served in writing by deposit thereof, first-class
postage prepaid, in the United States mail, hand delivery or facsimile
transmission, in each case, addressed, (a) in the case of a Holder of Preferred
Securities, to such Securityholder as such Securityholder's name and address may
appear on the Securities Register; and (b) in the case of the Holder of Common
Securities or the Depositor, to ABC Bancorp, 24 2/nd/ Avenue, S.E., Moultrie,
Georgia 31768, Attention: Chairman and Chief Executive Officer, facsimile no.:
(229) 890-2235. Such notice, demand or other communication

                                       49
<PAGE>

to or upon a Securityholder shall be deemed to have been sufficiently given or
made, for all purposes, upon hand delivery, mailing or transmission.

     Any notice, demand or other communication which by any provision of this
Trust Agreement is required or permitted to be given or served to or upon the
Trust, the Property Trustee or the Administrative Trustees shall be given in
writing addressed (until another address is published by the Trust) as follows:
(a) with respect to the Property Trustee, to Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration - ABC Bancorp Capital Trust I; (b)
with respect to the Delaware Trustee, to Wilmington Trust Company, at the
address above; and (c) with respect to the Administrative Trustees, to them at
the address above for notices to the Depositor, marked "Attention:
Administrative Trustees of ABC Bancorp Capital Trust I, c/o ABC Bancorp" Such
notice, demand or other communication to or upon the Trust or the Property
Trustee shall be deemed to have been sufficiently given or made only upon actual
receipt of the writing by the Trust or the Property Trustee.

     Section 10.9.  Agreement Not to Petition. Each of the Trustees and the
                    -------------------------
Depositor agrees for the benefit of the Securityholders that, until at least one
year and one day after the Trust has been terminated in accordance with Article
IX, they shall not file, or join in the filing of, a petition against the Trust
under any bankruptcy, insolvency, reorganization or other similar law (including
the United States Bankruptcy Code of 1978, as amended) (collectively,
"Bankruptcy Laws") or otherwise join in the commencement of any proceeding
against the Trust under any Bankruptcy Law. In the event the Depositor or any of
the Trustees takes action in violation of this Section 10.9, the Property
Trustee agrees, for the benefit of the Securityholders, that at the expense of
the Depositor (which expense shall be paid prior to the filing), it shall file
an answer with the bankruptcy court or otherwise properly contest the filing of
such petition by the Depositor or such Trustee against the Trust or the
commencement of such action and raise the defense that the Depositor or such
Trustee has agreed in writing not to take such action and should be stopped and
precluded therefrom. The provisions of this Section 10.9 shall survive the
termination of this Trust Agreement.

     Section 10.10. Trust Indenture Act; Conflict with Trust Indenture Act.
                    ------------------------------------------------------

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

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

     (c)  If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in this Trust Agreement by any
of the provisions of the Trust Indenture Act, such required provision shall
control. If any provision of this Trust Agreement modifies or excludes any
provision of the Trust Indenture Act which may be so modified or

                                       50
<PAGE>

excluded, the latter provision shall be deemed to apply to this Trust Agreement
as so modified or to be excluded, as the case may be.

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

     Section 10.11. Acceptance of Terms of the Trust Agreement, the Guarantee
                    ---------------------------------------------------------
and the Indenture. THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY
-----------------
INTEREST THEREIN BY OR ON BEHALF OF A SECURITYHOLDER OR ANY BENEFICIAL OWNER,
WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE
UNCONDITIONAL ACCEPTANCE BY THE SECURITYHOLDER AND ALL OTHERS HAVING A
BENEFICIAL INTEREST IN SUCH TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF
THIS TRUST AGREEMENT AND AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER
TERMS OF THE GUARANTEE AND THE INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT OF
THE TRUST, SUCH SECURITYHOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF
THIS TRUST AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE
TRUST AND SUCH SECURITYHOLDER AND SUCH OTHERS. WITHOUT LIMITING THE FOREGOING,
BY ACCEPTANCE OF A PREFERRED SECURITY, EACH HOLDER THEREOF SHALL BE DEEMED TO
HAVE AGREED TO TREAT, FOR ALL UNITED STATES FEDERAL INCOME TAX AND FINANCIAL
ACCOUNTING PURPOSES, THE DEBENTURES AS INDEBTEDNESS OF THE DEPOSITOR AND THE
PREFERRED SECURITIES AS EVIDENCING AN UNDIVIDED BENEFICIAL OWNERSHIP INTEREST IN
THE DEBENTURES.

                            [Signatures Next Page]

                                       51
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Trust Agreement, or caused this Trust Agreement to be executed and delivered by
its duly authorized officer, all as of the date first above written.

                              ABC BANCORP,
                              as Depositor

                              By: ___________________________________________
                              Name: Kenneth J. Hunnicutt
                              Title: Chairman and Chief Executive Officer

                              WILMINGTON TRUST COMPANY,
                              as Property Trustee

                              By:____________________________________________
                              Name:
                              Title:

                              WILMINGTON TRUST COMPANY,
                              as Delaware Trustee

                              By:____________________________________________
                              Name:
                              Title:

                              _______________________________________________
                              KENNETH J. HUNNICUTT, as Administrative Trustee

                              _______________________________________________
                              MARK D. THOMAS, as Administrative Trustee

                              _______________________________________________
                              W. EDWIN LANE, JR., as Administrative Trustee

                                       52
<PAGE>

                                   EXHIBIT A

                             CERTIFICATE OF TRUST
                                      OF
                          ABC BANCORP CAPITAL TRUST I

     THIS CERTIFICATE OF TRUST OF ABC BANCORP CAPITAL TRUST I (the "Trust"), is
being duly executed and filed by the undersigned, as trustees, to form a
business trust under the Delaware Business Trust Act (12 Del. C. Section 3801 et
seq.) (the "Act").

     1.   NAME. The name of the business trust formed hereby is ABC Bancorp
Capital Trust I.

     2.   DELAWARE TRUSTEE. The name and business address of the trustee of the
Trust in the State of Delaware is Wilmington Trust Company, Rodney Square North,
1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate
Trust Administration.

     3.   EFFECTIVE DATE. This Certificate of Trust shall be effective on the
date of filing.

     IN WITNESS WHEREOF, each of the undersigned, being a trustee of the Trust,
has executed this Certificate of Trust in accordance with Section 3811 of the
Act.

                                        WILMINGTON TRUST COMPANY, as Trustee

                                        By:___________________________________
                                        Name:_________________________________
                                        Title:________________________________

                                        ______________________________________
                                        Kenneth J. Hunnicutt, as Trustee

                                        ______________________________________
                                        Mark D. Thomas, as Trustee

                                        ______________________________________
                                        W. Edwin Lane, Jr., as Trustee
<PAGE>

                                   EXHIBIT B

                     THIS CERTIFICATE IS NOT TRANSFERABLE
                           EXCEPT IN COMPLIANCE WITH
                      SECTION 5.11 OF THE TRUST AGREEMENT

     CERTIFICATE NUMBER _________ NUMBER OF COMMON SECURITIES __________.
                   CERTIFICATE EVIDENCING COMMON SECURITIES
                                      OF
                          ABC BANCORP CAPITAL TRUST I

                               COMMON SECURITIES
                  LIQUIDATION AMOUNT $10 PER COMMON SECURITY

     ABC BANCORP CAPITAL TRUST I, a statutory business trust created under the
laws of the State of Delaware (the "Trust"), hereby certifies that ABC BANCORP
(the "Holder") is the registered owner of ____________________ (________) common
securities of the Trust representing undivided beneficial interests in the
assets of the Trust and designated the Common Securities (liquidation amount $10
per Common Security) (the "Common Securities"). In accordance with Section 5.11
of the Trust Agreement (as defined below), the Common Securities are not
transferable and any attempted transfer hereof shall be void. The designations,
rights, privileges, restrictions, preferences, and other terms and provisions of
the Common Securities are set forth in, and this certificate and the Common
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of, the Amended and Restated Trust Agreement of the
Trust dated as of ______________ _____, 2001, as the same may be amended from
time to time (the "Trust Agreement"), including the designation of the terms of
the Common Securities as set forth therein. The Trust shall furnish a copy of
the Trust Agreement to the Holder without charge upon written request to the
Trust at its principal place of business or registered office.

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

     IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has
executed this certificate this __ day of ____________ 2001.

                                        ABC BANCORP CAPITAL TRUST I

                                        By: _____________________________
                                        Name: ___________________________
                                        Title:___________________________
<PAGE>

                                   EXHIBIT C

                   AGREEMENT AS TO EXPENSES AND LIABILITIES

     AGREEMENT AS TO EXPENSES AND LIABILITIES (this "Agreement") dated as of
___, 2001 between ABC BANCORP, a Georgia corporation (the "Company"), and ABC
BANCORP CAPITAL TRUST I, a Delaware business trust (the "Trust").

                                   RECITALS

     WHEREAS, the Trust intends to issue its common securities (the "Common
Securities") to, and receive ____% Subordinated Debentures (the "Debentures")
from, the Company and to issue and sell up to 3,450,000 ____% Cumulative Trust
Preferred Securities (the "Preferred Securities") with such powers, preferences
and special rights and restrictions as are set forth in the Amended and Restated
Trust Agreement of the Trust dated as of ______________, 2001, as the same may
be amended from time to time (the "Trust Agreement");

     WHEREAS, the Company shall directly or indirectly own all of the Common
Securities of the Trust and shall issue the Debentures;

     NOW, THEREFORE, in consideration of the purchase by each holder of the
Preferred Securities, which purchase the Company hereby agrees shall benefit the
Company and which purchase the Company acknowledges shall be made in reliance
upon the execution and delivery of this Agreement, the Company, including in its
capacity as holder of the Common Securities, and the Trust hereby agree as
follows:

                                   ARTICLE I

     Section 1.1.  Guarantee by the Company.

     Subject to the terms and conditions hereof, the Company, including in its
capacity as holder of the Common Securities, hereby irrevocably and
unconditionally guarantees to each person or entity to whom the Trust is now or
hereafter becomes indebted or liable (the "Beneficiaries") the full payment when
and as due, of any and all Obligations (as hereinafter defined) to such
Beneficiaries. As used herein, "Obligations" means any costs, expenses or
liabilities of the Trust other than obligations of the Trust to pay to the
holders of any Preferred Securities or other similar interests in the Trust the
amounts due such holders pursuant to the terms of the Preferred Securities or
such other similar interests, as the case may be. This Agreement is intended to
be for the benefit of, and to be enforceable by, all such Beneficiaries, whether
or not such Beneficiaries have received notice hereof.

     Section 1.2.  Term of Agreement.

     This Agreement shall terminate and be of no further force and effect upon
the later of (a) the date on which full payment has been made of all amounts
payable to all holders of all the Preferred Securities (whether upon redemption,
liquidation, exchange or otherwise); and (b) the
<PAGE>

date on which there are no Beneficiaries remaining; provided, however, that this
Agreement shall continue to be effective or shall be reinstated, as the case may
be, if at any time any holder of the Preferred Securities or any Beneficiary
must restore payment of any sums paid under the Preferred Securities, under any
obligation under the Preferred Securities Guarantee Agreement dated the date
hereof by the Company and Wilmington Trust Company, as guarantee trustee, or
under this Agreement for any reason whatsoever. This Agreement is continuing,
irrevocable, unconditional and absolute.

     Section 1.3.  Waiver of Notice.

     The Company hereby waives notice of acceptance of this Agreement and of any
obligation to which it applies or may apply, and the Company hereby waives
presentment, demand for payment, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

     Section 1.4.  No Impairment.

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

     (a)  the extension of time for the payment by the Trust of all or any
portion of the Obligations or for the performance of any other obligation under,
arising out of, or in connection with, the Obligations;

     (b)  any failure, omission, delay or lack of diligence on the part of the
Beneficiaries to enforce, assert or exercise any right, privilege, power or
remedy conferred on the Beneficiaries with respect to the Obligations or any
action on the part of the Trust granting indulgence or extension of any kind; or

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

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

     Section 1.5.  Enforcement.

     Each of the  Beneficiaries may enforce this Agreement directly against the
Company, and the Company waives any right or remedy to require that any action
be brought against the Trust or any other person or entity before proceeding
against the Company.
<PAGE>

                                  ARTICLE II

     Section 2.1.  Binding Effect.

     All guarantees and agreements contained in this Agreement shall bind the
successors, assigns, receivers, trustees and representatives of the Company and
shall inure to the benefit of the Beneficiaries.

     Section 2.2.  Amendment.

     So long as there remains any Beneficiary or any Preferred Securities of any
series are outstanding, this Agreement shall not be modified or amended in any
manner adverse to such Beneficiary or to the holders of the Preferred
Securities.

     Section 2.3.  Notices.

     Any notice, request or other communication required or permitted to be
given hereunder shall be given in writing by delivering the same by facsimile
transmission (confirmed by mail), telex, or by registered or certified mail,
addressed as follows (and if so given, shall be deemed given when mailed or upon
receipt of an answer back, if sent by telex):

     ABC Bancorp Capital Trust I, c/o ABC Bancorp, 24 2/nd/ Avenue, S.E.,
Moultrie, Georgia 31768, Facsimile No.: (229) 890-2235. Attention: Chairman and
Chief Executive Officer.

     ABC Bancorp, 24 2/nd/ Avenue, S.E., Moultrie, Georgia 31768, Facsimile No.:
(229) 890-2235. Attention: Chairman and Chief Executive Officer.

     Section 2.4.  Governing Law.

     This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of Delaware (without regard to conflict of
laws principles).

        [The remainder of this page has been left blank intentionally]
<PAGE>

THIS AGREEMENT is executed as of the day and year first above written.

                                    ABC BANCORP

                                    By:_____________________________________
                                    Name: Kenneth J. Hunnicutt
                                    Title: Chairman and Chief Executive Officer

                                    ABC BANCORP CAPITAL TRUST I

                                    By:_____________________________________
                                    Name:
                                    Title: Administrative Trustee
<PAGE>

                                   EXHIBIT D

Certificate Number___________  Number of Preferred Securities _________ CUSIP
NO. ____________

Certificate Evidencing Preferred Securities
of
ABC Bancorp Capital Trust I

____% Cumulative Trust Preferred Securities

     ABC BANCORP CAPITAL TRUST I, a statutory business trust created under the
laws of the State of Delaware (the "Trust"), hereby certifies that
______________ (the "Holder") is the registered owner of _____ preferred
securities of the Trust representing undivided beneficial interests in the
assets of the Trust and designated the ____% Cumulative Trust Preferred
Securities (Liquidation Amount $10 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 as provided in Section
5.5 of the Trust Agreement (as defined herein). The designations, rights,
privileges, restrictions, preferences, and other terms and provisions of the
Preferred Securities are set forth in, and this Certificate and the Preferred
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of, the Amended and Restated Trust Agreement of the
Trust dated as of _______________ , 2001, as the same may be amended from time
to time (the "Trust Agreement"), including the designation of the terms of the
Preferred Securities as set forth therein. The Holder is entitled to the
benefits of the Preferred Securities Guarantee Agreement entered into by ABC
Bancorp, a Georgia corporation, and Wilmington Trust Company, as guarantee
trustee, dated as of ____________ , 2001 (the "Guarantee"), to the extent
provided therein. The Trust shall furnish a copy of the Trust Agreement and the
Guarantee to the Holder without charge upon written request to the Trust at its
principal place of business or registered office.

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

     Unless the Certificate of Authentication has been manually executed by the
Property Trustee or the Authentication Agent, this Certificate is not valid or
effective.

     Capitalized terms used but not defined in this Certificate shall have the
respective meanings provided for such terms in the Trust Agreement.
<PAGE>

     IN WITNESS WHEREOF, the Administrative Trustees of the Trust have executed
this Certificate as of this ________ day of ___________ 2001.

                                             ABC BANCORP CAPITAL TRUST I

                                             By:____________________________
                                             Kenneth J. Hunnicutt
                                             Administrative Trustee

                                             By:____________________________
                                             Mark D. Thomas
                                             Administrative Trustee

                                             By:____________________________
                                             W. Edwin Lane, Jr.
                                             Administrative Trustee

                                    LEGEND

                          FOR CERTIFICATES EVIDENCING

                       GLOBAL PREFERRED SECURITIES ONLY:

Unless this certificate is presented by an authorized representative of the
Depository Trust Company, a New York corporation ("DTC"), to the Trust or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is required by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.
<PAGE>

                       [FORM OF REVERSE OF CERTIFICATE]

     The Trust will furnish without charge to any registered owner of Preferred
Securities who so requests, a copy of the Trust Agreement and the Guarantee. Any
such request should be in writing and addressed to ABC Bancorp Capital Trust I,
c/o ABC Bancorp, 24 2/nd/ Avenue, S.E., Moultrie, Georgia 31768 or to the
Securities Registrar named in the Trust Agreement.

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common
UNIF GIFT MIN ACT -......Custodian....... (Cust) (Minor)
TEN ENT - as tenants by the entireties under Uniform Gifts to Minors
Act............ (State)
JT TEN    as joint tenants with right
UNIF TRF MIN ACT  -......Custodian of survivorship and not as (until
age)............tenants in common .........under Uniform (Minor)
Transfers to Minors Act ................... (State)
TOD  - transfer on death direction
in event owner's death, to person named on face and subject to TOD rules
referenced Additional abbreviations may also be used though not in the above
list.

FOR VALUE RECEIVED, the undersigned hereby sell, assign and transfer unto:
______________________________________________________________________________
(Please insert Social Security or other identifying number of assignee)

____________________________________
____________________________________
____________________________________
____________________________________

(PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

Preferred Securities represented by the within Certificate, and do(es) hereby
irrevocably constitute and appoint _______________________ attorney to transfer
the said Preferred Securities on the books of the within-named Trust with full
power of substitution in the premises.

Dated:___________________

Signature: _____________________________

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
OR ENLARGEMENT OR ANY CHANGE WHATEVER.
<PAGE>

SIGNATURE(S) GUARANTEED:

______________________________________________________________________________

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.
<PAGE>

                                   EXHIBIT E

                     FORM OF CERTIFICATE OF AUTHENTICATION

                         CERTIFICATE OF AUTHENTICATION

     This is one of the ____% Cumulative Trust Preferred Securities referred to
in the within-mentioned Amended and Restated Trust Agreement.

Dated:

WILMINGTON TRUST COMPANY,
not in its individual capacity but solely as Property Trustee

By: _____________________________
    Authorized Signatory

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