Document:

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                                                                Exhibit 10.5(vi)

                       AMERICAN COMMUNITY BANCSHARES, INC.
                             9% DEFERRABLE INTEREST
                          JUNIOR SUBORDINATED DEBENTURE
                                DUE MARCH 1, 2032

American Community Bancshares, Inc., a North Carolina corporation (the
"Corporation," 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 American Community Capital
Trust I, or registered assigns, the principal sum of One Million Five Hundred
Forty-Six Thousand Four Hundred Dollars ($1,546,400) on March 1, 2032 (the
"Stated Maturity"), and to pay interest on said principal sum from December 31,
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 March 31, 2002, at the
rate of 9% per annum until the principal hereof shall have become due and
payable, and on any overdue principal and (without duplication) on any overdue
installment of interest at the same rate (the "Coupon Rate") compounded
quarterly. Interest on the Debenture shall be calculated on the basis of a
360-day year of 12 30-day months. Any change in the Coupon Rate shall be
effective on the date of such change for the purposes of calculating interest
for any period. Except as provided in the following sentence, 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 actual number of
days elapsed in such period. 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, such
payment shall be made on the 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 15th day of the month preceding the 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 whereof 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 inconsistent with the requirements of any securities exchange on which the
Debentures may be listed, 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 Corporation by check mailed to the registered holder at such
address as shall appear in the Debenture Register.

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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 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, and 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.

This Debenture shall be deemed to be a contract made under the laws of the State
of North Carolina and for all purposes shall be construed in accordance with the
laws of North Carolina without regard to conflicts of laws principles.

This Debenture is one of the subordinated debentures of the Corporation (herein
sometimes referred to as the "Debentures"), specified in the Indenture, all
issued or to be issued under and pursuant to an Indenture dated as of December
31, 2001 (the "Indenture") duly executed and delivered between the Corporation
and Wilmington Trust Company, as Trustee (the "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 Corporation
and the holders of the Debentures. The Debentures are limited in aggregate
principal amount as specified in the Indenture.

All terms used in this Debenture that are defined in the Indenture shall have
the meanings assigned to them in the Indenture. To the extent the provisions of
this Debenture conflict with the provisions of the Indenture, the latter shall
control.

The Corporation has the right to redeem this Debenture at the option of the
Corporation, without premium or penalty (i) at any time on or after February 19,
2007 in whole or in part, or (ii) at any time in certain circumstances in whole
(but not in part) upon the occurrence of a Special Event, in each case at a
Redemption Price equal to 100% of the principal amount plus any accrued but
unpaid interest, to the date of such redemption (the "Redemption Price"). The
Redemption Price shall be paid prior to 12:00 noon, Eastern Standard Time, on
the date of such redemption or at such earlier time as the Corporation
determines, provided that the Corporation shall deposit the Redemption Price
with the Trustee prior to 10:00 a.m. on the redemption date. Any redemption
pursuant to this paragraph shall be made upon not less than 30 days nor more
than 60 days

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notice, at the Redemption Price. If the Debentures are only partially redeemed
by the Corporation, the Debentures shall be redeemed pro rata or by lot or by
any other fair and appropriate method utilized by the Trustee.

In the event of 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 Corporation 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 (i) extend the fixed maturity of the Debentures
except as provided in the Indenture, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon (except for
deferrals of interest as described below), without the consent of the holder of
each Debenture so affected; or (ii) reduce the aforesaid percentage of
Debentures, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Debenture
then outstanding and affected thereby. The Indenture also contains provisions
permitting the holders of 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 therefor or in place thereof
(whether by registration of transfer or otherwise or whether 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 Corporation, 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 money herein prescribed.

So long as no Event of Default has occurred and is continuing, the Corporation
shall have the right at any time during the term of the Debentures and from time
to time to extend the interest payment period of such Debentures for up to 20
consecutive quarters (each, an "Extended Interest Payment Period"), at the end
of which period the Corporation shall pay all interest then accrued and unpaid
(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

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of any such Extended Interest Payment Period, the Corporation may further extend
such Extended Interest Payment Period, provided that such Extended Interest
Payment Period together with all such further extensions thereof shall not
exceed 20 consecutive quarters and no Extended Interest Payment Period shall
extend beyond the Stated Maturity. At the termination of any such Extended
Interest Payment Period and upon the payment of all accrued and unpaid interest
and any additional amounts then due, the Corporation may commence a new Extended
Interest Payment 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 of the Corporation, 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
Corporation or the Trustee duly executed by the registered holder hereof or his
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 Corporation 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
Corporation, the Trustee, any paying agent and the Debenture Registrar may deem
and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debenture 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 Corporation 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 of the
Indenture, against any incorporator, stockholder, officer or director, past,
present or future, as such, of the Corporation 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 Debenture is unsecured
by any collateral, including the assets of the Corporation or any of its
subsidiaries or other affiliates.

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IN WITNESS WHEREOF, the Corporation has caused this instrument to be executed.

                                AMERICAN COMMUNITY BANCSHARES, INC.

                                   By: /s/ Randy P. Helton
                                       -----------------------------------------
                                   Name: Randy P. Helton
                                   Title: President and Chief Executive Officer

Attest:

By: /s/ Stephanie D. Helms
    ----------------------
Name: Stephanie D. Helms
      --------------------
Title: Asst. Secretary
       -------------------

                          CERTIFICATE OF AUTHENTICATION

     This is one of the Debentures described in the within-mentioned Indenture.

Dated: March 1, 2002
       -------------

WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Trustee
or Authentication Agent

             By: /s/ Mary C. St. Amand          By:_____________________________
                 ---------------------
                 Authorized Signatory               Authorized Signatory<PAGE>

                                                               Exhibit 10.5(vii)

                              AMENDED AND RESTATED

                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                                 BY AND BETWEEN

                       AMERICAN COMMUNITY BANCSHARES, INC.

                                       AND

                            WILMINGTON TRUST COMPANY,

                              AS GUARANTEE TRUSTEE

                                  MARCH 1, 2002

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                              AMENDED AND RESTATED
                    PREFERRED SECURITIES GUARANTEE AGREEMENT

     THIS AMENDED AND RESTATED PREFERRED SECURITIES GUARANTEE AGREEMENT (the
"Preferred Securities Guarantee"), dated as of March 1, 2002, is executed and
delivered by AMERICAN COMMUNITY BANCSHARES, INC., a North Carolina corporation
(the "Guarantor"), and WILMINGTON TRUST COMPANY, a Delaware banking corporation,
as trustee (the "Guarantee Trustee"), for the benefit of the Holders (as defined
herein) from time to time of the Preferred Securities (as defined herein) of
American Community Capital Trust I, a Delaware statutory business trust (the
"Trust").

                                    RECITALS

     WHEREAS, the Guarantor and the Guarantee Trustee entered into that certain
Preferred Securities Guarantee Agreement, dated as of December 31, 2001 (the
"Interim Guarantee Agreement"); and

     WHEREAS, the Guarantor and the Guarantee Trustee desire to amend and
restate the Interim Guarantee Agreement in its entirety as set forth herein; and

     WHEREAS, pursuant to an Amended and Restated Trust Agreement (the "Trust
Agreement"), dated as of March 1, 2002, among the trustees of the Trust named
herein, the Guarantor, as depositor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust, the Trust is issuing
an additional 1,500 shares of its preferred securities, having an aggregate
liquidation amount of $1,000 per share, designated the 9% Trust Preferred
Securities (the "Preferred Securities," which term shall include all previously
issued and outstanding preferred securities issued by the Trust), representing
undivided beneficial ownership interests in the assets of the Trust and having
the terms set forth in the Trust Agreement; and

     WHEREAS, additional Preferred Securities, in an aggregate liquidation
amount of $1,500,000 will be issued by the Trust and the proceeds thereof,
together with the proceeds from the issuance of the Trust's Common Securities,
will be used to purchase a 9% Deferrable Interest Junior Subordinated Debenture
due March 1, 2032 (the "Debenture") of the Guarantor which will be deposited
with Wilmington Trust Company, as Property Trustee under the Trust Agreement, as
trust assets; and

     WHEREAS, following the issuance of such additional Preferred Securities,
the aggregate liquidation amount of all outstanding Preferred Securities issued
by the Trust will be $3,500,000; and

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

     NOW, THEREFORE, in consideration of the purchase by the Holders of
$1,500,000 aggregate liquidation amount Preferred Securities, which purchase the
Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and
delivers this Preferred Securities Guarantee for the benefit of the Holder, and
any subsequent Holders.

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                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 DEFINITIONS AND INTERPRETATION.

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

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

     (b) terms defined in the Trust Agreement in effect on the date of execution
of this Preferred Securities Guarantee have the same meaning when used in this
Preferred Securities Guarantee unless otherwise defined herein;

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

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

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

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

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

     "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 executive officer, director or general partner.

     "Business Day" means any day other than a Saturday or Sunday or a day on
which banking institutions in the City of Monroe, North Carolina are authorized
or required by law, executive order or regulation to close or a day on which the
Corporate Trust Office of the Guarantee Trustee is closed for business.

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

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

     "Debentures" means the 9% Deferrable Interest Junior Subordinated
Debentures due March 1, 2032, of the Debenture Issuer held by the Property
Trustee of the Trust.

     "Debenture Issuer" means the Guarantor.

     "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: (i) every
obligation of such Person for money borrowed; (ii) 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; (iii) every reimbursement obligation of such Person with
respect to letters of credit, bankers' acceptances or similar facilities issued
for the account of such Person; (iv) 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); (v) every capital lease obligation of such Person; (vi) all
indebtedness of such person whether incurred on or prior to the date of the
Indenture or thereafter incurred, for claims in respect of derivative products,
including interest rate, foreign exchange rate and commodity forward contracts,
options and swaps and similar arrangements; and (vii) every obligation of the
type referred to in clauses (i) through (vi) of another Person and all dividends
of another Person the payments of which, in either case, such Person has
guaranteed or is responsible or liable, directly or indirectly, as obligor or
otherwise.

     "Event of Default" means a default by the Guarantor on any of its payment
or other obligations under this Preferred Securities Guarantee.

     "Guarantee Trustee" means Wilmington Trust Company, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Preferred Securities Guarantee and thereafter means each
such Successor Guarantee Trustee.

     "Guarantor" means American Community Bancshares, Inc., a North Carolina
corporation, or any permitted successors or assigns.

     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the Preferred Securities, to the extent not paid or
made by the Trust: (i) any accrued and unpaid Distributions (as defined in the
Trust Agreement) that are required to be paid on such Preferred Securities, to
the extent the Trust shall have funds available therefor, (ii) the Redemption
Price, to the extent the Trust has funds available therefor, with respect to any
Preferred Securities called for redemption by the Trust, and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Trust
(other than in connection with the distribution

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of Debentures to the Holders in exchange for Preferred Securities as provided in
the Trust Agreement or a redemption of all of the Preferred Securities), the
lesser of (a) the aggregate of the liquidation amount and all accrued and unpaid
Distributions on the Preferred Securities to the date of payment, to the extent
the Trust shall have funds available therefor, and (b) the amount of assets of
the Trust remaining available for distribution to Holders in liquidation of the
Trust (the "Liquidation Distribution").

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

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

     "Indenture" means the Indenture dated as of December 31, 2001, among the
Debenture Issuer and Wilmington Trust Company, as trustee, and any indenture
supplemental thereto (including but not limited to that certain Supplemental
Indenture dated as of March 1, 2002, among the Debenture Issuer and Wilmington
Trust Company, as trustee) pursuant to which certain subordinated debt
securities of the Debenture Issuer are to be issued to the Property Trustee of
the Trust.

     "Liquidation Distribution" has the meaning provided therefor in the
definition of Guarantee Payments.

     "Majority in liquidation amount of the Preferred Securities" means, except
as provided in the terms of the Preferred Securities or, except as provided by
the Trust Indenture Act, a vote by Holder(s) of Preferred Securities, voting
separately as a class, of more than 50% of the liquidation amount of all of the
Outstanding Preferred Securities.

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

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

     (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer upon which the statements contained in
the certificate are based 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

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

     "Other Debentures" means all junior subordinated debentures ranking pari
passu or junior to the Debentures (other than the Debentures) issued by the
Guarantor from time to time and sold to trusts established or to be established
by the Guarantor, in each case similar to the Trust to issue securities intended
to qualify for Tier I capital treatment.

     "Other Guarantees" means all guarantees (other than the Preferred
Securities Guarantee), issued or to be issued by the Guarantor from time to time
with respect to preferred securities or preference stock issued to trusts (other
than the Trust) established or to be established by the Guarantor, in each case
similar to the Trust.

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

     "Preferred Securities" means all of the outstanding 9% Trust Preferred
Securities issued by American Community Capital Trust I.

     "Redemption Price" has the meaning provided therefor in Section 3.2 of the
Indenture.

     "Responsible Officer" means, with respect to the Guarantee Trustee, any
officer of the Guarantee Trustee, including any vice-president, any assistant
vice-president, any assistant secretary, any assistant treasurer or other
officer 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.

     "Senior Debt" means the principal of (and premium, if any) and interest, if
any (including interest accruing on or after the filing or any petition in
bankruptcy or for reorganization relating to the Guarantor whether or not such
claim for post-petition interest is allowed in such proceeding), on Debt,
whether incurred on or prior to the date of the 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 however, that Senior
Debt shall not be deemed to include (i) any debt of the Guarantor 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
Guarantor, (ii) any debt of the Guarantor to any of its subsidiaries and (iii)
debt to any employee of the Guarantor.

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

<PAGE>

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

                                   ARTICLE II
                               TRUST INDENTURE ACT

SECTION 2.1 TRUST INDENTURE ACT; APPLICATION.

     (a) This Preferred Securities Guarantee is not subject to the provisions of
the Trust Indenture Act pursuant to the exemption provided in Sections 304(a)(9)
and 304(b) of such act. However, notwithstanding the foregoing, the parties
hereto agree to be governed by the provisions of the Trust Indenture Act as they
apply to the rights and obligations of the Guarantor, Preferred Securities
Trustee and Holders.

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

SECTION 2.2 LISTS OF HOLDERS OF SECURITIES.

     (a) The Guarantor shall provide the Guarantee Trustee with a list, in such
form as the Guarantee Trustee may reasonably require, of the names and addresses
of the Holders of the Preferred Securities ("List of Holders") as of January 1
and June 30 of each year, and at such other times as the Guarantee Trustee may
reasonably request in writing within 30 days after the receipt by the
Corporation of any such request; provided, that the Guarantor shall not be
obligated to provide such List of Holders at any time the List of Holders does
not differ from the most recent List of Holders given to the Guarantee Trustee
by the Guarantor. The Guarantee Trustee shall preserve the list of Holders and
all information contained therein in as current a form as is reasonably
practicable, but may destroy any List of Holders previously given to it on
receipt of a new List of Holders.

     (b) The Guarantee Trustee shall comply with its obligations under Section
311(a) of the Trust Indenture Act (but excluding from the operation of such
Section a creditor relationship arising in the circumstances described in
Section 311(b) of the Trust Indenture Act) and under Section 312(b) of the Trust
Indenture Act.

SECTION 2.3 REPORTS BY THE GUARANTEE TRUSTEE.

     The Guarantee Trustee shall provide to the Holders of the Preferred
Securities such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by, and otherwise in
compliance with, Section 313 of the Trust Indenture Act, where applicable. The
Guarantee Trustee shall also comply with the requirements of Section 313(d) of
the Trust Indenture Act, where applicable.

<PAGE>

SECTION 2.4 PERIODIC REPORTS TO GUARANTEE TRUSTEE.

     The Guarantor shall provide to the Guarantee 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 of the Trust
Indenture Act in the form, in the manner and at the times required by Section
314 of the Trust Indenture Act. Delivery of such reports, information and
documents to the Guarantee Trustee is for informational purposes only and the
Guarantee Trustee's receipt of such shall not constitute constructive notice of
any information contained therein or determinable from information contained
herein, including the Guarantor's compliance with any of its covenants hereunder
(as to which the Guarantee Trustee is entitled to rely exclusively on Officers'
Certificates). The Guarantor also shall transmit to the Holders of the Preferred
Securities, in the manner and to the extent provided in Section 313(c) of the
Trust Indenture Act, such summaries of the foregoing documents, reports and
information as may be required by rules and regulations prescribed by the
Commission.

SECTION 2.5 EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

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

SECTION 2.6 EVENTS OF DEFAULT; WAIVER.

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

SECTION 2.7 EVENT OF DEFAULT; NOTICE.

     (a) The Guarantee Trustee shall, within 90 days after the occurrence of a
default hereunder, transmit by mail to the Holders of the Preferred Securities
in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act notice of all defaults hereunder actually known to the Guarantee
Trustee, unless such defaults have been cured before the giving of such notice;
provided, that except in the case of payment defaults, the Guarantee Trustee
shall be protected in withholding such notice if and so long as the Guarantee
Trustee determines in accordance with Section 315(b) of the Trust Indenture Act
in good faith that the withholding of such notice is in the interest of the
Holders of the Preferred Securities.

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

<PAGE>

Officer of the Guarantee Trustee charged with the administration of the Trust
Agreement shall have obtained actual knowledge.

SECTION 2.8 CONFLICTING INTERESTS.

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

                                   ARTICLE III
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

SECTION 3.1 POWERS AND DUTIES OF THE GUARANTEE TRUSTEE.

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

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

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

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

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

<PAGE>

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

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

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

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

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

<PAGE>

SECTION 3.2 CERTAIN RIGHTS OF GUARANTEE TRUSTEE.

     (a)  Subject to the provisions of Section 3.1:

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

          (ii) any direction or act of the Guarantor contemplated by this
               Preferred Securities Guarantee shall be sufficiently evidenced by
               an Officers' Certificate;

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

          (iv) the Guarantee Trustee shall have no duty to see any recording,
               filing or registration of any instrument (or any rerecording,
               refilling, or reregistration thereof);

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

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

<PAGE>

               of an Event of Default, of its obligation to exercise the rights
               and powers vested in it by this Preferred Securities Guarantee;

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

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

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

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

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

SECTION 3.3 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE.

     The Recitals contained in this Guarantee shall be taken as the statements
of the Guarantor, and the Guarantee Trustee does not assume any responsibility
for their correctness. The

<PAGE>

Guarantee Trustee makes no representation as to the validity or sufficiency of
this Preferred Securities Guarantee.

                                   ARTICLE IV
                                GUARANTEE TRUSTEE

SECTION 4.1 GUARANTEE TRUSTEE; ELIGIBILITY.

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

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

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

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

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

SECTION 4.2 APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEES

     (a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or
removed with or without cause at any time by the Guarantor.

     (b) The Guarantee Trustee may be removed for cause at any time by Act
(within the meaning of Section 608 of the Trust Agreement) of the Holders of at
least a Majority in liquidation amount of the Preferred Securities, delivered to
the Guarantee Trustee.

<PAGE>

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

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

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

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

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

                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1 GUARANTEE.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by the Trust), as and when due, regardless of any defense, right of set-off or
counterclaim that the Trust may have or assert. The Guarantor's obligation to
make a Guarantee Payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holders or by causing the Trust to pay such
amounts to the Holders.

SECTION 5.2 WAIVERS.

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

<PAGE>

SECTION 5.3 OBLIGATIONS NOT AFFECTED.

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

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

     (b) the extension of time for the payment by the Trust of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures);

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

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

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

     (f) any failure or omission to receive any regulatory approval or consent
required in connection with the Preferred Securities (or the common equity
securities issued by the Trust), including the failure to receive any regulatory
approval required in connection with the redemption of the Preferred Securities;

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

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

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

<PAGE>

SECTION 5.4 RIGHTS OF HOLDERS.

     (a) The Guarantor expressly acknowledges that: (i) this Guarantee will be
deposited with the Guarantee Trustee to be held for the benefit of the Holders;
(ii) the Guarantee Trustee has the right to enforce this Preferred Securities
Guarantee; and (iii) Holders of a Majority in liquidation amount of the
Preferred Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Guarantee Trustee in
respect of this Preferred Securities Guarantee or exercising any trust or power
conferred upon the Guarantee Trustee under this Preferred Securities Guarantee.

     (b) Any Holder of Preferred Securities may institute a legal proceeding
directly against the Guarantor to enforce its rights under this Preferred
Securities Guarantee, without first instituting a legal proceeding against the
Trust, the Guarantee Trustee or any other Person.

SECTION 5.5 GUARANTEE OF PAYMENT.

     This Preferred Securities Guarantee creates a guarantee of payment and not
of collection. This Preferred Securities Guarantee will not be discharged except
by payment of the Guarantee Payments in full (without duplication of amounts
theretofore paid by the Trust).

SECTION 5.6 SUBROGATION.

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

SECTION 5.7 INDEPENDENT OBLIGATIONS.

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

<PAGE>

                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 LIMITATION OF TRANSACTIONS.

     So long as any Preferred Securities remain outstanding, if there shall have
occurred an Event of Default under this Preferred Securities Guarantee, an Event
of Default under the Trust Agreement or during an Extended Interest Payment
Period (as defined in the Indenture), then (a) the Guarantor shall not and shall
not permit any Subsidiary to declare or pay any dividend on, make any
distributions with respect to, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of its capital stock (other than (i)
the reclassification of any class of the Corporation's capital stock into
another class of capital stock, (ii) dividends or distributions payable in any
class of the Corporation's common stock, (iii) any declaration of a 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 and (iv) purchases of the Corporation's common
stock related to the rights under any of the Corporation's benefit plans for its
or its subsidiaries' directors, officers or employees), and (b) the Guarantor
shall not and shall not permit any Subsidiary to make any payment of interest or
principal on or repay, repurchase, redeem or make guarantee payments related to
any debt securities issued by the Guarantor (including Other Debentures) or any
Subsidiary which rank pari passu with or junior to the Debentures; and (c) the
Guarantor shall not redeem, purchase or acquire less than all of the outstanding
Debentures or any of the Preferred Securities.

SECTION 6.2 RANKING.

     This Preferred Securities Guarantee will constitute an unsecured obligation
of the Guarantor and will rank (i) subordinate and junior in right of payment to
all Senior Debt of the Guarantor, (ii) pari passu with the Debentures, and (iii)
senior to the Guarantor's stock.

                                   ARTICLE VII
                                   TERMINATION

SECTION 7.1 TERMINATION.

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

<PAGE>

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1 EXCULPATION.

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

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

SECTION 8.2 INDEMNIFICATION.

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

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1 SUCCESSORS AND ASSIGNS.

     All guarantees and agreements contained in this Preferred Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Preferred Securities then outstanding. Guarantor shall not assign its
obligations hereunder except in connection with a consolidation, merger, sale or
other transaction involving the Guarantor that is permitted under Article XII of
the Indenture and unless the assignee thereof agrees in writing, in form and
substance reasonably satisfactory to the

<PAGE>

Preferred Guaranty Trustee, to perform all the Guarantor's obligations hereunder
with the same effect as if it had been named herein as Guarantor, and any
purported assignment that is not in accordance with these provisions shall be
void.

SECTION 9.2 AMENDMENTS.

     Except with respect to any changes that do not materially adversely affect
the rights of Holders (in which case no consent of Holders will be required),
this Preferred Securities Guarantee may only be amended with the prior written
approval of the Holders of at least a Majority in liquidation amount of the
Preferred Securities; provided that such prior written approval shall be
required with respect to all changes whatsoever during any time there are five
or fewer Holders.

SECTION 9.3 NOTICES.

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

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

            Wilmington Trust Company
            Rodney Square North
            1100 North Market Street
            Wilmington, DE 19890
            Facsimile No.:  (302) 651-8882
            Attention:  Corporate Trust Administration

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

            American Community Bancshares, Inc.
            2593 West Roosevelt Boulevard
            Monroe, NC  28110
            Attention: Chief Executive Officer

     (c) If given to any Holder of Preferred Securities, at the address set
forth on the books and records of the Trust.

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

<PAGE>

 SECTION 9.4 BENEFIT.

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

SECTION 9.5 GOVERNING LAW.

     THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA WITHOUT
REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

     This Preferred Securities Guarantee is executed as of the day and year
first above written.

AMERICAN COMMUNITY BANCSHARES, INC.,        WILMINGTON TRUST COMPANY,
GUARANTOR                                   AS GUARANTEE TRUSTEE

By: /s/ Randy P. Helton                     By: /s/ Mary C. St. Amand
    ---------------------                       -------------------------

Name:  Randy P. Helton                      Name:  Mary C. St. Amand
       ------------------                          ----------------------

Title: President and CEO                    Title: Senior Vice President
       ------------------                          ----------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]