Document:

Exhibit 10.10

                                                                  EXECUTION COPY

                         LOAN AND STOCK PLEDGE AGREEMENT

      THIS LOAN AND STOCK PLEDGE AGREEMENT (the "Agreement"), entered into as of
June 29, 2005, between NEXITY FINANCIAL CORPORATION, a Delaware corporation (the
"Borrower"), and FLAG BANK, a Georgia banking corporation (the "Lender").

      On the date  hereof the  Borrower is  borrowing  the  principal  amount of
$7,000,000  from the Lender (the  "Loan"),  which will be evidenced by the Note.
The  Lender  is  willing  to make  the Loan to the  Borrower  on the  terms  and
conditions  described  below. The Borrower and Lender agree that the payment and
performance of all obligations  relating to the Loan will be secured through the
pledge to the Lender of all the issued and  outstanding  shares of capital stock
owned or hereafter acquired by the Borrower (the "Stock") in Nexity Bank, having
its main office at 3500 Blue Lake Drive,  Suite 330,  Birmingham,  Alabama 35243
(the "Bank").  Certain  capitalized  terms used in this Agreement are defined in
Section 22 of this Agreement.

      In   consideration   of  the  premises  and  the  mutual   agreements  and
representations in this Agreement, the Lender and the Borrower agree as follows:

      1. Security Interest.
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      (a) The Borrower hereby  unconditionally  grants and assigns to the Lender
and its  successors and assigns a continuing  security  interest in and security
title to the Stock. The Borrower hereby delivers to the Lender all of its right,
title and interest in and to the Stock, together with certificates  representing
the  Stock  and  stock  powers  endorsed  in  blank,  as  security  for  (i) all
obligations  of the  Borrower  to the Lender  hereunder,  and (ii)  payment  and
performance  of all  obligations  of the  Borrower to the Lender under the Note,
whether direct or indirect,  absolute or contingent,  now or hereafter existing,
or due or to become due. If the Borrower  receives,  for any reason  whatsoever,
any  additional  shares of the  capital  stock of the Bank,  such  shares  shall
thereupon  constitute  Stock to be held by the  Lender  under  the terms of this
Agreement and the Borrower shall immediately  deliver such shares to the Lender,
together  with  stock  powers  endorsed  in  blank by the  Borrower.  Beneficial
ownership of the Stock,  including all voting,  consensual and dividend  rights,
shall remain in the Borrower until the occurrence of a Default.

      (b) If, prior to repayment in full of the Loan,  the aggregate  book value
of the Stock becomes less than  $28,500,000 the Borrower shall promptly  deliver
to the Lender on demand additional  collateral of a type and value acceptable to
the Lender  (and the  Lender's  reasonable  judgment  in  valuing  same shall be
conclusive) so that the sum of the value of such additional  collateral plus the
aggregate book value of the Stock is equal to or in excess of  $28,500,000.  The
Borrower  shall also  execute any security  documents  the Lender may request to
evidence and perfect the Lender's  rights in such additional  collateral.  If at
any time such  additional  collateral  is no longer  required  pursuant  to this
Section 1(b), the Lender  promptly  shall release its security  interest in such
additional  collateral upon the request of the Borrower  because the $28,500,000
threshold discussed above is exceeded.

      2. Representations and Warranties. The Borrower represents and warrants to
the Lender as follows:

            (a) The Borrower is a corporation duly organized,  validly existing,
and in good standing under the laws of the State of Delaware and is qualified to
do business in all  jurisdictions  where such  qualification  is necessary.  The
Borrower is registered as a bank holding  company with the Board of Governors of
the Federal Reserve System.  The chief executive  office of the Borrower and the
principal  place of business of the  Borrower  where the records of the Borrower
are kept are located at 3500 Blue Lake  Drive,  Suite 330,  Birmingham,  Alabama
35243, and the Borrower's U.S. employer identification number is 63-1222937.

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            (b) The Bank is a commercial bank duly organized,  validly existing,
and in good standing  under the laws of the State of Alabama.  The Borrower owns
all of the Stock  (consisting of 513 shares) and there are no other  outstanding
shares of capital  stock and no  outstanding  options,  warrants or other rights
which can be converted  into shares of capital  stock of the Bank.  The Bank has
all requisite corporate power and authority and possesses all material licenses,
permits and  authorizations  necessary for it to own its  properties and conduct
its business as presently conducted.

            (c) Each financial statement of the Borrower or any Subsidiary which
has been delivered to the Lender presents fairly the financial  condition of the
Borrower or such Subsidiary as of the date indicated  therein and the results of
its operations for the periods shown therein. There has been no material adverse
change,  either  existing  or,  to  Borrower's  knowledge,  threatened,  in  the
financial  condition or operations of the Borrower or any  Subsidiary  since the
date of such most recent financial statement.

            (d) The Borrower has full  corporate  power and authority to execute
and perform the Financing Documents. The execution, delivery, and performance by
the Borrower of the  Financing  Documents  (i) have been duly  authorized by all
requisite  action by the  Borrower,  (ii) do not violate any provision of law or
regulation, and (iii) do not result in a breach of or constitute a default under
any agreement or other  instrument to which the Borrower or any  Subsidiary is a
party or which the Borrower or any  Subsidiary  is bound.  Each of the Financing
Documents  constitutes the legal,  valid, and binding obligation of the Borrower
enforceable in accordance with its terms.

            (e) Except for the security interest created by this Agreement,  the
Borrower owns the Stock free and clear of all liens,  charges, and encumbrances.
The Stock is duly issued,  fully paid and  non-assessable,  and the Borrower has
the unencumbered right to pledge the Stock.

            (f) There is no action,  arbitration,  or other proceeding at law or
in equity, or by or before any court,  agency,  or arbitrator,  nor is there any
judgment,  order,  or other  decree  pending,  anticipated,  or,  to  Borrower's
knowledge,  threatened  against the Borrower or any Subsidiary or against any of
their properties or assets which might reasonably be expected to have a material
adverse effect on the Borrower,  any Subsidiary,  or their respective properties
or assets,  or which might  reasonably  be expected  to call into  question  the
validity or enforceability of the Financing Documents, or which might reasonably
be expected to involve the alleged  violation by the Borrower or any  Subsidiary
of any material law, rule or regulation.

            (g) No  consent  or other  authorization  or  filing  with or of any
governmental  authority  or other public body on the part of the Borrower or any
Subsidiary is required in connection with the Borrower's execution, delivery, or
performance of the Financing Documents;  or if required,  all such prerequisites
have been fully satisfied.

            (h)  None  of  the  transactions   contemplated  in  this  Agreement
(including,  without  limitation,  the use of the  proceeds  of the  Loan)  will
violate or result in a violation of Section 7 of the Securities  Exchange Act of
1934, or any regulations issued pursuant thereto.

            (i) The following are attached as exhibits hereto: true, correct and
complete copies of (i) the Borrower's and the Bank's  articles of  incorporation
or certificate of incorporation,  respectively, as in effect as of the date here
(as certified by the Delaware or Alabama  Secretary of State,  as  appropriate);
(ii)  certificates  of  existence  for the  Borrower  and the Bank issued by the
Delaware or Alabama Secretary of State, as appropriate;  (iii) the bylaws of the
Borrower in effect immediately prior to the adoption of the resolutions referred
to below (and such bylaws have not been further altered or amended and have been
in full force and effect at all times  since the  adoption  of such  resolutions
through the date hereof); (iv) the bylaws of the Bank as of the date hereof; (v)
resolutions (the  "Resolutions")  of the Board of Directors of the Borrower duly
adopted by written consent in lieu of a meeting duly called and held on June 29,
2005.  The  Resolutions  have been since  adoption and are now in full force and
effect and have not been  modified  in any  respect.  There have been no further
amendments or other documents affecting or altering the Borrower's or the Bank's
articles of incorporation or certificate of incorporation,  respectively,  since
the date

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of the  certifications  referred  to  above  through  the date  hereof,  and the
Borrower  and the Bank have  remained in valid  existence  under the laws of the
State of Alabama since such dates.

      3. Affirmative Covenants.  The Borrower agrees that so long as the Note is
outstanding or this Agreement is in effect:

            (a) The Borrower shall promptly furnish to the Lender: (i) not later
than 120 days after the end of each fiscal year, audited consolidated  financial
statements  of the  Borrower  prepared in  accordance  with  generally  accepted
accounting  principles ("GAAP") and certified by an independent  accounting firm
acceptable to the Lender,  Ernst & Young LLP being hereby  acknowledged as being
acceptable  to the  Lender;  (ii) not  later  than 30 days  after the end of the
respective  semiannual  period,  copies of the  semiannual  reports filed by the
Borrower with the Board of Governors of the Federal  Reserve  System;  (iii) not
later than 30 days  after the end of each of the first  three  quarters  of each
year,  copies of the Report of Condition  and the Report of Income and Dividends
of each of the Bank  Subsidiaries;  (iv)  immediately  after the occurrence of a
material adverse change in the business, properties,  condition,  management, or
prospects (financial or otherwise) of the Borrower or any Subsidiary, including,
without   limitation,   imposition  of  any  letter  agreement,   memorandum  of
understanding,  cease and  desist  order,  or other  similar  regulatory  action
involving the Borrower or any  Subsidiary,  a statement by the Borrower's  chief
executive  officer or chief financial officer setting forth in reasonable detail
such change and the action which the Borrower or any Subsidiary proposes to take
with respect thereto; and (v) from time to time upon request of the Lender, such
other information relating to the operations,  business, condition,  management,
properties,  or prospects of the  Borrower or any  Subsidiary  as the Lender may
request  (including  meetings with the Borrower's or  Subsidiary's  officers and
upon the occurrence of an Event of Default, employees).

            (b) The  Borrower  and  each  Subsidiary  shall  punctually  pay and
discharge prior to their becoming  delinquent  (giving effect to all extensions)
all taxes,  assessments and other governmental charges or levies imposed upon it
or upon its  income  or upon any of its  property  except  to the  extent  being
contested  in good faith by  appropriate  proceedings  and  subject to  adequate
reserve to the extent required by GAAP.

            (c) The  Borrower and each  Subsidiary  shall comply in all material
respects with all requirements of constitutions,  statutes,  rules, regulations,
and orders and all orders and decrees of courts and arbitrators applicable to it
or its  properties,  and which the  failure to comply with would have a material
adverse effect on Borrower and its subsidiaries on a consolidated basis.

            (d) The Borrower shall  immediately upon learning of the same notify
the  Lender of any  change  in the Chief  Executive  Officer,  President,  Chief
Financial  Officer or Chief Lending Officer of the Borrower or in the beneficial
ownership of more than 2% of the  Borrower's  stock by any officer,  director or
25% or greater shareholder of the Borrower.

      4.  Negative  Covenants.  The Borrower  agrees that so long as the Note is
outstanding or this Agreement is in effect:

            (a) From the date hereof, the Borrower shall not permit the ratio of
Tier 1 Capital  to average  total  assets  (the "Tier 1 Leverage  Ratio") of the
Borrower as of the end of any calendar year to be less than 7%.

            (b) From the date hereof,  the Borrower  shall not permit its Tier 1
Risk Based Capital Ratio as of the end of any calendar year to be less than 10%.

            (c) The Borrower  shall not permit the Tier 1 Leverage  Ratio of any
of the Bank Subsidiaries as of the end of any calendar year to be less than 7%.

            (d) The  Borrower  shall not permit  the Tier 1 Risk  Based  Capital
Ratio of any of the Bank  Subsidiaries  as of the end of any calendar year to be
less than 10%.

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            (e) The Borrower shall not permit its Capital at any time during the
term of this Agreement to be less than $28,500,000.

            (f) The  Borrower  shall  not,  and shall not permit any of the Bank
Subsidiaries to, fail to comply at any time with any minimum capital requirement
imposed by any of their  federal or state  regulators.

(g)  Borrower  shall not
permit the Weighted Average Return on Assets for either the Borrower or the Bank
to be less than .80%, on an annualized basis, for each calendar quarter.

            (h) The Borrower  shall not permit the  allowance for loan and lease
losses of any of the Bank  Subsidiaries to be less than the sum of 1.00% of such
Bank Subsidiary's gross loans for each calendar quarter.

            (i) The Borrower shall not permit (i) the net  charge-offs of any of
the Bank Subsidiaries to be .50% or more of the Bank Subsidiary's  average loans
at any calendar quarter end, or (ii) the Non-Performing Loans of any of the Bank
Subsidiaries  to be 1.50% or more of the Bank  Subsidiary's  gross  loans at any
calendar quarter end, or (iii) the  Non-Performing  Loans plus other real estate
owned  of  any of  the  Bank  Subsidiaries  to be  1.50%  or  more  of the  Bank
Subsidiary's total assets at any calendar quarter end.

            (j) The Borrower  shall not incur or permit to exist any  additional
indebtedness  or liability  for borrowed  money in an amount to exceed  $250,000
other than to the Lender or a  wholly-owned  Subsidiary of the Borrower  without
prior Lender  approval,  except that this covenant  shall not apply to deposits,
repurchase  agreements,   federal  funds  borrowings,  Federal  Home  Loan  Bank
advances,   overdrafts,  and  other  banking  transactions  entered  into  by  a
Subsidiary in the ordinary course of its business.

            (k) The  Borrower  shall  not,  directly  or  indirectly,  become  a
guarantor of any obligation of, or an endorser of, or otherwise assume or become
liable upon any notes,  obligations,  or other  indebtedness of any other Person
(other than Lender or a Subsidiary) in any amount except in connection  with the
depositing of checks in the normal and ordinary course of business.

            (l) Without the prior  written  approval of Lender,  which  approval
shall not be unreasonably  withheld,  the Borrower shall not (i) transfer all or
substantially all of its assets to, or consolidate or merge with, or acquire all
or substantially  all of the properties or capital stock of any other Person, or
(ii) permit any Bank  Subsidiary to,  transfer all or  substantially  all of its
assets to or  consolidate  or merge with any other  Person,  or  acquire  all or
substantially  all of the  properties or capital  stock of any other Person,  or
create any Subsidiary or enter into any partnership or joint venture.

            (m) Without the prior  written  approval of Lender,  which  approval
shall not be unreasonably withheld, the Borrower shall not permit any Subsidiary
to issue,  sell or  otherwise  dispose or part with control of any shares of any
class of its stock  (other  than  directors'  qualifying  shares)  except to the
Borrower  or a  wholly-owned  Subsidiary  of the  Borrower or as a result of the
pledge of stock to Lender.

            (n) Without the prior  written  approval of Lender,  which  approval
shall not be  unreasonably  withheld,  the Borrower  shall not sell or otherwise
dispose  or part with  control  of any of the Stock or any other  securities  or
indebtedness of any  Subsidiary,  and the Borrower shall not pledge or otherwise
transfer  or grant a  security  interest  in any of the  capital  stock or other
securities of any of its Subsidiaries other than to Lender.

            (o) The  Borrower  shall  not,  nor permit  any  Subsidiary  to, pay
dividends  if the Loan is in Default or if the payment of such  dividends  would
create a Default, other than dividends payable to the Borrower by a Subsidiary.

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      5. Advances  Under the Loan. The Lender shall not be obligated to make any
advance of the Loan to the Borrower unless:

            (a) All  representations and warranties of the Borrower contained in
this  Agreement  or the Note shall be true in all respects on and as of the date
of each advance of the Loan.

            (b) The Borrower  and each  Subsidiary  shall have  performed in all
material respects all their agreements and obligations required by the Financing
Documents.

            (c) No material adverse change shall have occurred in the Borrower's
or any  Subsidiary's  condition  (financial or  otherwise),  or in the business,
properties, assets, liabilities, prospects, or management of the Borrower or any
Subsidiary since the date of this Agreement.

            (d) No Default or event which,  with the giving of notice or passage
of time (or both),  would constitute a Default under the terms of this Agreement
shall have occurred.

            (e) All other matters  incidental to the making of the Loan upon the
terms and conditions set forth in the Financing  Documents shall be satisfactory
to the Lender.

      6. Default. A "Default" shall exist if any of the following occurs:
         -------

            (a) Failure of the  Borrower  punctually  to make any payment of any
amount  payable,  whether  principal or interest or other amount,  on any of the
Liabilities,  whether  at  maturity,  or at a date fixed for any  prepayment  or
partial  prepayment,  or by  acceleration,  or  otherwise  which  failure  shall
continue for 15 days following notice from Lender.

            (b) Any statement,  representation, or warranty of the Borrower made
in any of the  Financing  Documents or at any time  furnished by or on behalf of
the Borrower to the Lender shall be false or misleading in any material  respect
as of the date made.

            (c) Failure of the Borrower  punctually and fully to comply with (i)
any of the  covenants  in Section 4 of this  Agreement  or (ii) any of the other
covenants set forth in this  Agreement if such failure under this clause (ii) is
not remedied within 30 days after notice from the Lender to the Borrower.

            (d) The  occurrence of a default under any other  agreement to which
the Borrower and the Lender are parties or under any other  instrument  executed
by the  Borrower  in  favor  of the  Lender  which  remains  uncured  after  the
expiration of any cure period provided by such agreement.

            (e) If the Borrower or any Subsidiary  becomes  insolvent as defined
in the Delaware or Alabama Uniform  Commercial Code, as applicable,  or makes an
assignment  for the  benefit  of  creditors;  or if any action is brought by the
Borrower  or  any  Subsidiary  seeking  dissolution  of  the  Borrower  or  such
Subsidiary or liquidation of its assets or seeking the appointment of a trustee,
interim trustee, receiver, or other custodian for any of its property; or if the
Borrower  or any  Subsidiary  commences  a  voluntary  case  under  the  Federal
Bankruptcy  Code;  or  if  any  reorganization  or  arrangement   proceeding  is
instituted by the Borrower or any Subsidiary for the  settlement,  readjustment,
composition or extension of any of its debts upon any terms; or if any action or
petition is otherwise brought by the Borrower or any Subsidiary  seeking similar
relief  or  alleging  that it is  insolvent  or  unable to pay its debts as they
mature.

            (f) Any action is brought  against the  Borrower  or any  Subsidiary
seeking  dissolution of the Borrower or such Subsidiary or liquidation of any of
its assets or seeking the appointment of a trustee,  interim trustee,  receiver,
or other  custodian for any of its property,  and such action is consented to or
acquiesced in by the Borrower or such  Subsidiary or is not dismissed  within 60
days of the date  upon  which it was  instituted;  or any  proceeding  under the
Federal Bankruptcy Code is instituted against the Borrower or any Subsidiary and
(i) an order for relief is entered in such proceeding or (ii) such proceeding

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is consented to or  acquiesced  in by the Borrower or such  Subsidiary or is not
dismissed  within  60 days of the  date  upon  which it was  instituted;  or any
reorganization or arrangement  proceeding is instituted  against the Borrower or
any Subsidiary for the settlement,  readjustment,  composition,  or extension of
any of its  debts  upon  any  terms,  and such  proceeding  is  consented  to or
acquiesced in by the Borrower or such  Subsidiary or is not dismissed  within 60
days of the date upon  which it was  instituted;  or any action or  petition  is
otherwise brought against the Borrower or any Subsidiary  seeking similar relief
or alleging  that it is  insolvent,  unable to pay its debts as they mature,  or
generally  not paying its debts as they become due,  and such action or petition
is consented to or  acquiesced  in by the Borrower or such  Subsidiary or is not
dismissed within 60 days of the date upon which it was brought.

            (g) The Borrower or any Subsidiary  fails to make any payment due on
any indebtedness of the Borrower or any Subsidiary which causes the acceleration
of such  indebtedness,  or fails to  perform  or  observe  any  other  provision
contained in any other  indebtedness of the Borrower or any Subsidiary or in any
agreement  securing  or  relating  to any  indebtedness  of the  Borrower or any
Subsidiary if such failure causes the acceleration of such indebtedness, and the
amount of such indebtedness exceeds $100,000.

            (h) Any  cease  and  desist  or other  order  has  been  threatened,
noticed,  or entered  against the Borrower or any Subsidiary by any bank or bank
holding  company  regulatory  agency or body, or the Borrower or any  Subsidiary
enters into any form of memorandum of understanding,  plan of corrective action,
or  letter  agreement  with any such  regulatory  agency  or body,  or any other
regulatory  enforcement  action is taken against the Borrower or any  Subsidiary
relating to the capitalization,  management, or operation of the Borrower or any
Subsidiary.

            (i) The  Borrower or any  Subsidiary  is indicted  or  convicted  or
pleads  guilty  or nolo  contendere  to any  charge  that the  Borrower  or such
Subsidiary  has  violated any drug,  controlled  substances,  money  laundering,
currency               reporting,                racketeering,                or
racketeering-influenced-and-corrupt-organization  statute or  regulations  other
forfeiture statute.

            (j) The  Borrower  ceases to own 100% of the issued and  outstanding
capital  stock  of  the  Bank  or  ceases  to  control  any of  the  other  Bank
Subsidiaries.

      7.  Remedies Upon  Default.  Upon the  occurrence of a Default and, to the
extent any  applicable  cure period  relating to the  condition  underlying  the
Default is not required by the  definition  of Default to have  already  expired
before a Default  exists,  the  continuance  of such  Default  beyond  such cure
period,  the Lender  shall be  entitled,  without  limitation,  to exercise  the
following  rights at any time and from time to time,  which the Borrower  hereby
agrees to be commercially reasonable:

            (a) declare any of the Liabilities  due and payable,  whereupon they
immediately will become due and payable  (notwithstanding  any provisions to the
contrary, and without presentment, demand, notice or protest of any kind (all of
which are expressly waived by the Borrower));

            (b) (i)  receive all  amounts  payable in respect of the  Collateral
otherwise  payable to the  Borrower;  (ii)  settle  all  accounts,  claims,  and
controversies relating to the Collateral;  (iii) transfer all or any part of the
Collateral  into the  Lender's  or any  nominee's  name;  and (iv)  execute  all
agreements  and other  instruments;  bring,  defend and  abandon all actions and
other  proceedings;  and take all actions in relation to the  Collateral  as the
Lender in its sole discretion may determine;

            (c) enforce the payment of the Stock and exercise all of the rights,
powers and remedies of the Borrower  thereunder,  including  the exercise of all
voting  rights and other  ownership or  consensual  rights of the Stock (but the
Lender is not hereby  obligated  to exercise  such  rights),  and in  connection
therewith the Borrower  hereby appoints the Lender to be the Borrower's true and
lawful  attorney-in-fact  and IRREVOCABLE  PROXY to vote the Stock in any manner
the Lender  deems  advisable  for or against all matters  submitted to a vote of
shareholders,  and  such  power-of-attorney  is  coupled  with an  interest  and
irrevocable;

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<PAGE>

            (d) sell, assign and deliver,  or grant options to purchase,  all or
any part of or interest in the Collateral in one or more parcels,  at any public
or private sale at any  exchange,  any of the Lender's  offices,  or  elsewhere,
without demand of performance,  advertisement, or notice of intention to sell or
of the time or place of sale or  adjournment  thereof or to redeem or  otherwise
(all of which are hereby expressly and irrevocably waived by the Borrower),  for
cash, on credit, or for other property, for immediate or future delivery without
any  assumption  of credit  risk,  and for such  price and on such  terms as the
Lender in its sole  discretion  may determine;  the Borrower  agrees that to the
extent that notice of sale shall be required by law that at least five  business
days'  notice to the  Borrower  of the time and place of any public  sale or the
time after  which any  private  sale is to be made shall  constitute  reasonable
notification;  the Lender shall not be obligated to make any sale of  Collateral
regardless  of notice of sale  having  been  given;  the Lender may  adjourn any
public or private sale from time to time by  announcement  at the time and place
fixed therefor,  and any such sale may,  without further notice,  be made at the
time and place to which it was so  adjourned;  the  Borrower  hereby  waives and
releases  to the  fullest  extent  permitted  by law  any  right  or  equity  of
redemption  with  respect  to the  Collateral,  whether  before  or  after  sale
hereunder,  and all rights,  if any, of marshalling the Collateral and any other
security  for the Loan or  otherwise;  at any such sale,  unless  prohibited  by
applicable  law,  the  Lender  may bid for and  purchase  all or any part of the
Collateral  so sold free from any such  right or equity of  redemption;  and the
Lender  shall not be liable for failure to collect or realize upon any or all of
the  Collateral  or for any delay in so doing nor shall any of them be under any
obligation to take any action whatsoever with regard thereto;

            (e)  appoint and  dismiss  managers  or other  agents for any of the
purposes  mentioned in the  foregoing  provisions  of this Section 7, all as the
Lender in its sole discretion may determine; and

            (f) generally,  take all such other action as the Lender in its sole
discretion  may  determine as  incidental  or conducive to any of the matters or
powers  mentioned  in this Section 7 and which the Lender may or can do lawfully
and use the  name of the  Borrower  for  such  purposes  and in any  proceedings
arising therefrom.

      8. Application of Proceeds.  The proceeds of the public or private sale or
other disposition of any Collateral  hereunder shall be applied to (i) the costs
incurred in connection with the sale, expressly  including,  without limitation,
any costs under Section 11(a) hereof;  (ii) any unpaid  interest  which may have
accrued on any  obligations  secured hereby;  (iii) any unpaid  principal on any
obligations secured hereby; and (iv) damages incurred by the Lender by reason of
any breach secured  against  hereby,  in such order as the Lender may determine,
and any  remaining  proceeds  shall be paid over to the Borrower or others as by
law provided.  If the proceeds of the sale or other disposition of the Stock are
insufficient  to pay all such amounts,  the Borrower  shall remain liable to the
Lender for the deficiency.

      9. Additional  Rights of Secured Parties.  In addition to its other rights
and privileges  under this Agreement,  the Lender may exercise from time to time
any and all other rights and remedies available to a secured party when a debtor
is in default under a security  agreement as provided in the Uniform  Commercial
Code of Georgia, or available to the Lender under any other applicable law or in
equity, including without limitation the right to any deficiency remaining after
disposition  of the  Collateral.  The Borrower  shall pay all of the  reasonable
costs and expenses (including  documented  reasonable  attorneys' fees) actually
incurred by the Lender in enforcing its rights under this Agreement.

      10.  Return  of  Stock to  Borrower.  Upon  payment  in full of all of the
Liabilities  and full  performance  by the Borrower of all  covenants  and other
obligations  under this  Agreement,  the Lender shall return to the Borrower (i)
all of the then remaining Stock, (ii) all rights received by the Lender as agent
for the Borrower as a result of its possessory  interest in the Stock, and (iii)
all additional collateral (if any) held by Lender pursuant to Section 1(b) above
and release all right therein.

      11.  Disposition of Stock by Agent.  The Stock is not registered under the
various federal or state  securities laws and disposition  thereof after Default
may be subject to prior regulatory approval and may be restricted to one or more
private (instead of public) sales in view of the lack of such registration.

                                       7
<PAGE>

The Borrower  acknowledges that upon such  disposition,  the Lender may approach
only a  restricted  number of  potential  purchasers  and that a sale under such
circumstances  may  yield a lower  price for the  Stock  than if the Stock  were
registered  pursuant to federal and state  securities  laws and sold on the open
market. The Borrower, therefore, agrees that:

            (a) if the Lender  shall,  pursuant to the terms of this  Agreement,
sell or cause any of the Stock to be sold at a private  sale,  the Lender  shall
have the right to rely upon the advice and opinion of any national  brokerage or
investment  firm having  recognized  expertise and experience in connection with
shares of companies in the banking  industry (but shall not be obligated to seek
such advice and the failure to do so shall not be considered in determining  the
commercial reasonableness of the Lender's action) as to the best manner in which
to expose the Stock for sale and as to the best price  reasonably  obtainable at
the private sale thereof; and

            (b) such reliance  shall be conclusive  evidence that the Lender has
handled such disposition in a commercially reasonable manner.

      12. Borrower's Obligations Absolute. The obligations of the Borrower under
this Agreement  shall be direct and immediate and not  conditional or contingent
upon the pursuit of any other remedies against the Borrower or any other Person,
nor against other security or liens  available to the Lender or its  successors,
assigns or  agents.  The  Borrower  hereby  waives any right to require  that an
action be brought  against any other Person or require that resort be had to any
security or to any balance of any deposit  account or credit on the books of the
Lender in favor of any other  Person prior to any exercise of rights or remedies
hereunder,  or to  require  resort  to  rights  or  remedies  of the  Lender  in
connection with the Loan.

      13. Notices.  Except as provided otherwise in this Agreement,  all notices
and other communications under this Agreement are to be in writing and are to be
deemed to have been duly given and to be effective upon delivery to the party to
whom they are directed.  If sent by U.S. mail,  first class,  certified,  return
receipt  requested,  postage  prepaid,  and  addressed  to the  Lender or to the
Borrower at their respective addressees set forth below, such communications are
deemed to have been delivered on the second business day after being so posted.

      If to the Lender:       Flag Bank
                              4365 River Green Parkway
                              Duluth, Georgia 30096
                              Attn: Peter G. Faser, Senior Vice President

      If to the Borrower:     Nexity Financial Corporation
                              3500 Blue Lake Drive, Suite 330
                              Birmingham, Alabama  35243
                              Attn: Greg L. Lee, Chairman and Chief Executive
                                        Officer

      with a copy to:         Balch & Bingham LLP
                              1901 Sixth Avenue North, Suite 2600
                              Birmingham, Alabama  35203
                              Attn: Michael D. Waters

      Either the Lender or the  Borrower  may,  by written  notice to the other,
designate  a different  address  for  receiving  notices  under this  Agreement;
provided,  however,  that no such  change of  address  will be  effective  until
written notice thereof is actually  received by the party to whom such change of
address is sent.

      14. Binding Agreement. The provisions of this Agreement shall be construed
and  interpreted,   and  all  rights  and  obligations  of  the  parties  hereto
determined, in accordance with the laws of the State of

                                       8
<PAGE>

Georgia.  This  Agreement,  together  with all  documents  referred  to  herein,
constitutes  the entire  Agreement  between  the  Borrower  and the Lender  with
respect to the  matters  addressed  herein and may not be  modified  except by a
writing executed by the Lender and delivered by the Lender to the Borrower. This
Agreement  may be  executed  in  multiple  counterparts,  each of which shall be
deemed an original but all of which,  taken together,  shall  constitute one and
the same instrument.

      15.  Participations.  The Lender may, upon 30 days prior written notice to
Borrower, grant participations in or sell, assign, transfer or otherwise dispose
of all or any portion of the indebtedness of the Borrower  outstanding  pursuant
to the  Financing  Documents.  The Borrower  hereby  agrees that any holder of a
participation  in, and any assignee or transferee  of, all or any portion of any
amount  owed by the  Borrower  under the  Financing  Documents,  upon  notice to
Borrower,  (i) shall be  entitled  to the  benefits  of the  provisions  of this
Agreement  as the Lender  hereunder  and (ii) may exercise any and all rights of
the banker's lien,  set-off or counterclaim  with respect to any and all amounts
owed by the Borrower to such assignee,  transferee or holder as fully as if such
assignee, transferee or holder had made the Loan in the amount of the obligation
in which it holds a participation or which is assigned or transferred to it.

      16. Expenses.  All reports and other documents or information furnished to
the Lender under this Agreement  shall be supplied by the Borrower  without cost
to the Lender.  Further,  the Borrower shall  reimburse the Lender on demand for
all  out-of-pocket  costs and expenses  (including  reasonable  documented legal
fees)  actually  incurred  by the  Lender in  connection  with the  preparation,
interpretation,  operation,  and  enforcement of the Financing  Documents or the
protection or  preservation  of any right or claim of the Lender with respect to
such  agreements.  The Borrower will pay all taxes (other than  Lender's  income
taxes and taxes on capital or net worth imposed as an alternative to a tax based
on income) (if any) in connection with the Financing Documents.  The obligations
of the Borrower under this section shall survive the payment of the  Liabilities
and the termination of this Agreement.

      17.  Indemnification.  In  addition  to any other  amounts  payable by the
Borrower under this  Agreement,  the Borrower shall pay and indemnify the Lender
from  and  against  all  claims,   liabilities,   losses,  costs,  and  expenses
(including,  without  limitation,  reasonable  documented  attorneys'  fees  and
expenses)  which the Lender may (other than as a result of the gross  negligence
or  willful  misconduct  of the  Lender)  actually  incur or be  subject to as a
consequence,  directly or  indirectly,  of (i) any breach by the Borrower of any
warranty,  term or condition in, or the occurrence of any default under,  any of
the  Financing  Documents,  including  all fees or expenses  resulting  from the
settlement  (with the prior written  approval of the Borrower) or defense of any
claims or  liabilities  arising as a result of any such breach or default,  (ii)
the Lender's making, holding, or administering the Loan or the Collateral, (iii)
allegations of  participation  or  interference by the Lender in the management,
contractual  relations or other affairs of the Borrower or any Subsidiary,  (iv)
allegations  that the  Lender  has  joint  liability  with the  Borrower  or any
Subsidiary for any reason, and (v) any suit, investigation,  or proceeding as to
which the Lender or such  participant is involved as a consequence,  directly or
indirectly,  of its  execution of any of the Financing  Documents,  or any other
event or transaction  contemplated  by any of the foregoing.  The obligations of
Borrower under this Section 17 shall survive the termination of this Agreement.

      18. Right to Set-Off.  Upon the occurrence and during the continuance of a
Default  hereunder,  the Lender,  without notice or demand of any kind, may hold
and set off against such of the  Liabilities  (whether  matured or unmatured) as
the Lender may elect any balance or amount to the credit of the  Borrower in any
deposit,  agency,  reserve,  holdback or other account of any nature  whatsoever
maintained  by or on  behalf  of the  Borrower  with  the  Lender  at any of its
offices,  regardless  of whether  such  accounts  are  general  or  special  and
regardless  of  whether  such  accounts  are  individual  or joint.  Any  Person
purchasing  an interest in debt  obligations  under this  Agreement  held by the
Lender may exercise all rights of offset with respect to such  interest as fully
as if such Person were a holder of debt  obligations  hereunder in the amount of
such interest.

      19.  Further  Assurances.  If at any time the  Lender  upon  advice of its
counsel shall  determine  that any further  document shall be required to effect
this Agreement and the transactions and other  agreements  contemplated  thereby
upon the terms contained herein and therein, the Borrower shall, and shall

                                       9
<PAGE>

cause its Subsidiaries to, execute and deliver such document and otherwise carry
out the purposes of this Agreement.

      20. Severability. If any paragraph or part thereof shall for any reason be
held or  adjudged  to be  invalid,  illegal,  or  unenforceable  by any court of
competent jurisdiction, such paragraph or part thereof shall be deemed separate,
distinct,  and independent,  and the remainder of this Agreement shall remain in
full force and effect and shall not be affected by such holding or adjudication.

      21. Binding Effect. All rights of the Lender under the Financing Documents
shall inure to the  benefit of its  transferees,  successors  and  assigns.  All
obligations of the Borrower under the Financing  Documents shall bind its heirs,
legal representatives, successors, and assigns.

      22. Definitions.
          -----------

            (a) "Bank  Subsidiaries"  means each banking Subsidiary of Borrower,
now or hereafter in existence, including but not limited to the Bank.

            (b) "Capital" means all capital or all components of capital,  other
than any allowance for loan and lease losses and net of any  intangible  assets,
as defined from time to time by the primary  federal  regulator of the Borrower,
the Bank, or each of the other Bank Subsidiaries (as the case may be).

            (c) "Collateral" means and includes all property assigned or pledged
to the Lender or in which the Lender has been  granted  security  interest or to
which the Lender  has been  granted  security  title,  whether  under any of the
Financing  Documents or any other agreement,  instrument,  or document,  and the
proceeds thereof.

            (d) "Financing  Documents"  means and includes this  Agreement,  the
Note, and all other associated loan and collateral documents including,  without
limitation,  all  guaranties,  suretyship  agreements,  stock  powers,  security
agreements,  security  deeds,  subordination  agreements,  exhibits,  schedules,
attachments,   financing  statements,   notices,  consents,  waivers,  opinions,
letters, reports, records, assignments, documents, instruments,  information and
other writings  related  thereto,  or furnished by the Borrower to the Lender in
connection  therewith  or in  connection  with  any of the  Collateral,  and any
amendments,  extensions,  renewals,  modifications or  substitutions  thereof or
therefor.

            (e)   "Liabilities"   means  all  indebtedness,   liabilities,   and
obligations of the Borrower of any nature whatsoever which the Lender may now or
hereafter  have, own or hold, and which are now or hereafter owing to the Lender
regardless of however and whenever created,  arising or evidenced,  whether now,
heretofore or hereafter  incurred,  whether now, heretofore or hereafter due and
payable,  whether  alone or together with another or others,  whether  direct or
indirect, primary or secondary, absolute or contingent, or joint or several, and
whether as principal, maker, endorser,  guarantor, surety or otherwise, and also
regardless  of  whether  such  Liabilities  are from  time to time  reduced  and
thereafter  increased  or  entirely  extinguished  and  thereafter   reincurred,
including without limitation the Note and any amendments,  extensions, renewals,
modifications or substitutions thereof or therefor.

            (f)  "Non-Performing  Loans" means those loans on non-accrual status
plus all other loans 90 days or more past due,  less the  government  guaranteed
portion of such Loans.

            (g) "Note" shall mean the grid promissory note dated the date hereof
in the principal amount of $7,000,000 and any amendments,  extensions, renewals,
modifications,  or substitutions thereof or therefor in effect at any particular
time.

            (h) "Person" means any individual,  corporation,  partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

                                       10
<PAGE>

            (i) "Subsidiary"  means each of the Bank Subsidiaries and each other
corporation  for which the Borrower has the power,  directly or  indirectly,  to
direct its  management  or  policies  or to vote 25% or more of any class of its
voting securities.

            (j) "Tier 1 Capital"  means Tier 1 capital as defined by the capital
maintenance  regulations of the primary  federal bank  regulatory  agency of the
Borrower or the relevant Bank Subsidiary, as the case may be.

            (k)  "Tier 1 Risk  Based  Capital  Ratio"  means the ratio of Tier 1
Capital to total  risk-weighted  assets as defined  by the  capital  maintenance
regulations of the primary federal bank regulatory agency of the Borrower.

            (l)  "Weighted  Average  Return on Assets" means (i) with respect to
the Borrower,  its net income for the previous  calendar year plus the amount of
any  interest  payments  by it during the  previous  calendar  year on the Loan,
divided by its average  assets during the previous  calendar year, and (ii) with
respect to any Bank  Subsidiary,  its net income for the previous  calendar year
divided by its average assets during the previous calendar year.

            (m) All  accounting  terms not  otherwise  defined  herein  have the
meanings  assigned to them in  accordance  with  generally  accepted  accounting
principles in effect from time to time.

                  (Remainder of page left blank intentionally)

                                       11
<PAGE>

      IN WITNESS  WHEREOF,  the  undersigned  have  hereunto set their hands and
affixed their seals by and through their duly authorized officers, as of the day
and year first above written.

                                    BORROWER:

                                        NEXITY FINANCIAL CORPORATION

                                        By: ____________________________________
                                                Greg L. Lee
                                                Chairman and Chief Executive
                                                Officer

                                        Attest: ________________________________
                                                David E. Long
                                                President

                                                     [CORPORATE SEAL]

      I hereby certify that the representation and warranty contained in Section
2(i)(v) of this Agreement is true and correct in all material respects.

                                        ________________________________________
                                        Greg L. Lee
                                        Secretary

                                     LENDER:

                                        FLAG BANK

                                        By: ____________________________________
                                                Peter G. Faser
                                                Senior Vice President

                                                       [BANK SEAL]

                                       12
<PAGE>

                                    EXHIBIT A

                            ARTICLES OF INCORPORATION
                                       OF
                          NEXITY FINANCIAL CORPORATION

<PAGE>

                                    EXHIBIT B

                            CERTIFICATE OF EXISTENCE
                                       OF
                          NEXITY FINANCIAL CORPORATION

<PAGE>

                                    EXHIBIT C

                                     BYLAWS
                                       OF
                          NEXITY FINANCIAL CORPORATION

<PAGE>

                                    EXHIBIT D

                                   RESOLUTIONS
                                       OF
                          NEXITY FINANCIAL CORPORATION

<PAGE>

                        RESOLUTIONS OF BOARD OF DIRECTORS
                                       OF
                          NEXITY FINANCIAL CORPORATION

            RESOLVED,  that the Company is authorized to borrow  $7,000,000 (the
"Loan")  from Flag Bank (the  "Lender")  upon such terms and  conditions  as the
authorized  officers of the Company,  or any one of them,  shall  approve,  such
approval to be  conclusively  evidenced by the  execution and delivery of a loan
and stock pledge  agreement  between the Company and the Lender  concerning  the
Loan (the "Loan Agreement"); and

            RESOLVED, that the Company is authorized to pledge 513 shares of the
common  stock of Nexity  Bank,  3500 Blue Lake  Drive,  Suite  330,  Birmingham,
Alabama 35243 as collateral for the Loan; and

            RESOLVED,  that the  Chairman  and Chief  Executive  Officer  of the
Company,  Greg E. Lee, is  authorized  to execute and deliver,  on behalf of the
Company, the Loan Agreement,  the Note, stock powers,  certificates,  agreements
and other  documents to be executed  and  delivered to the Lender by the Company
pursuant  to  and  in  connection  with  the  Loan   (collectively,   the  "Loan
Documents"),  all in such  form as the  Chairman  and  Chief  Executive  Officer
executing same shall deem to be in the best  interests of the Company,  with the
authority to determine  such form being  conclusively  evidenced by the Chairman
and Chief Executive Officer's execution thereof; and

            RESOLVED,  that the  President  of the  Company,  David E. Long,  is
authorized  and directed to  countersign or attest the signature of the Chairman
and Chief  Executive  Officer on the Loan Agreement and the other Loan Documents
and to  affix  the  corporate  seal of the  Company  thereto  (provided  that no
countersignature,  attestation,  or seal  shall  be  required  to make  any such
document effective, valid, binding or enforceable); and

            RESOLVED,  that  the  Company  is  authorized  to make  payments  of
interest  and  principal  and to perform all  obligations  of the  Company  with
respect to the Loan; and

            RESOLVED, that any act taken or deed done by any officer or agent of
the  Company  in  accordance  with  these   resolutions  or  to  facilitate  the
transactions contemplated by these resolutions is hereby approved,  ratified and
confirmed;  and that the  officers and agents of the Company are  authorized  to
take and do such further acts and deeds, and to execute and deliver,  for and in
the name of the Company,  such other  documents,  papers and instruments as they
deem  necessary,  appropriate,  advisable or required in order to effectuate the
purpose  and intent of these  resolutions  and to  consummate  the  transactions
contemplated  by these  resolutions,  and the taking of any such acts and deeds,
and the executions and delivery of any such documents, papers and instruments is
hereby ratified and approved; and

            RESOLVED,  that  the  President  of the  Company  is  authorized  to
countersign  or attest the  signature of another  officer under any and all such
agreements,  documents,  papers and  instruments and to affix the corporate seal
thereto and to attest the same (provided that no  countersignature,  attestation
or seal shall be required to make any such document effective, valid, binding or
enforceable),  and the  Secretary  of the  Company  is  further  authorized  and
empowered to certify to the passage of the foregoing resolutions.

<PAGE>

      RESOLVED,  that a copy of this Unanimous Consent to Action shall be placed
in the Company's minute book.

<PAGE>

                                    EXHIBIT E

                          CERTIFICATE OF INCORPORATION
                                       OF
                                   NEXITY BANK

<PAGE>

                                    EXHIBIT F

                            CERTIFICATE OF EXISTENCE
                                       OF
                                   NEXITY BANK

<PAGE>

                                    EXHIBIT G

                                     BYLAWS
                                       OF
                                   NEXITY BANKExhibit 10.11

                          NEXITY FINANCIAL CORPORATION
                                    as Issuer

                                    INDENTURE

                            Dated as of May 27, 2004

<PAGE>

                            WILMINGTON TRUST COMPANY
                                   as Trustee

           FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITIES DUE 2034

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                         Page
                                                                                                                         ----
<S>                                                                                                                        <C>
Article I ..............................................................................................................    1

    DEFINITIONS ........................................................................................................    1
    Section 1.01.  Definitions .........................................................................................    1
Article II .............................................................................................................    7

    DEBT SECURITIES ....................................................................................................    7
    Section 2.01.  Authentication and Dating ...........................................................................    7
    Section 2.02.  Form of Trustee's Certificate of Authentication .....................................................    8
    Section 2.03.  Form and Denomination of Debt Securities ............................................................    8
    Section 2.04.  Execution of Debt Securities ........................................................................    8
    Section 2.05.  Exchange and Registration of Transfer of Debt Securities ............................................    9
    Section 2.06.  Mutilated, Destroyed. Lost or Stolen Debt Securities ................................................   11
    Section 2.07.  Section 2.07. Temporary Debt Securities .............................................................   12
    Section 2.08.  Section 2.08. Payment of Interest ...................................................................   12
    Section 2.09.  Section 2.09. Cancellation-of Debt Securities Paid, etc .............................................   14
    Section 2.10.  Computation of Interest .............................................................................   14
    Section 2.11.  Extension of Interest Payment Period ................................................................   15
    Section 2.12.  CUSIP Numbers .......................................................................................   16
Article III ............................................................................................................   16

    PARTICULAR COVENANTS OF THE COMPANY ................................................................................   16
    Section 3.01.  Payment of Principal, Premium and Interest; Agreed Treatment of the Debt Securities .................   16
    Section 3.02.  Offices for Notices and Payments, etc ...............................................................   17
    Section 3.03.  Appointments to Fill Vacancies in Trustee's Office ..................................................   18
    Section 3.04.  Provision as to Paying Agent. .......................................................................   18
    Section 3.05.  Certificate to Trustee ..............................................................................   19
    Section 3.06.  Additional Interest .................................................................................   19
    Section 3.07.  Compliance with Consolidation Provisions ............................................................   19
    Section 3.08.  Limitation on Dividends .............................................................................   19
    Section 3.09.  Covenants as to the Trust ...........................................................................   20
Article IV .............................................................................................................   20

    LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE ...................................................................   20
    Section 4.01.  Securityholders' Lists ..............................................................................   20
    Section 4.02.  Preservation and Disclosure of Lists_ ...............................................................   21
    Section 4.03.  Financial and Other information .....................................................................   22
Article V ..............................................................................................................   22

    REMEDIES OF THE TRUSTEE AND SECURJTYHOLDERS UPON AN EVENT OF DEFAULT ...............................................   22
    Section 5.01.  Events of Default ...................................................................................   22
    Section 5.02.  Payment of Debt Securities on Default; Suit Therefor ................................................   24
    Section 5.03.  Section 5.03. Application of Moneys Collected by Trustee ............................................   25
    Section 5.04.  Proceedings by Securityholders ......................................................................   26
    Section 5.05.  Proceedings by Trustee ..............................................................................   26
    Section 5.06.  Remedies Cumulative and Continuing ..................................................................   26
    Section 5.07.  Direction of Proceedings and Waiver of Defaults by Majority of Securityholders ......................   27
    Section 5.08.  Notice of Defaults ..................................................................................   27
    Section 5.09.  Undertaking to Pay Costs ............................................................................   27
Article VI .............................................................................................................   28
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                                                        <C>
    CONCERNING THE TRUSTEE .............................................................................................   28
    Section 6.01.  Duties and Responsibilities of Trustee ..............................................................   28
    Section 6.02.  Reliance on Documents, Opinions. etc ................................................................   29
    Section 6.03.  No Responsibility for Recitals, etc .................................................................   30
    Section 6.04.  Trustee, Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debt Securities...   30
    Section 6.05.  Moneys to be Held in Trust ..........................................................................   30
    Section 6.06.  Compensation and Expenses of Trustee ................................................................   31
    Section 6.07.  Officers' Certificate as Evidence ...................................................................   31
    Section 6.08.  Eligibility of Trustee ..............................................................................   31
    Section 6.09.  Resignation or Removal of Trustee ...................................................................   32
    Section 6.10.  Acceptance by Successor Trustee .....................................................................   33
    Section 6.11.  Succession by Merger, etc ...........................................................................   34
    Section 6.12.  Authenticating Agents ...............................................................................   34
Article VII ............................................................................................................   35

    CONCERNING THE SECURTTYHOLDERS .....................................................................................   35
    Section 7.01.  Action by Securityholders ...........................................................................   35
    Section 7.02.  Proof of Execution by Securityholders ...............................................................   36
    Section 7.03.  Who Are Deemed Absolute Owners ......................................................................   36
    Section 7.04.  Debt Securities Owned by Company Deemed Not Outstanding .............................................   37
    Section 7.05.  Revocation of Consents; Future Holders Bound ........................................................   37
Article VIII ...........................................................................................................   37

    SECURITYHOLDERS' MEETINGS ..........................................................................................   37
    Section 8.01.  Purposes of Meetings ................................................................................   37
    Section 8.02.  Call of Meetings by Trustee .........................................................................   38
    Section 8.03.  Call of Meetings by Company or Securityholders ......................................................   38
    Section 8.04.  Qualifications for Voting ...........................................................................   38
    Section 8.05.  Regulations .........................................................................................   38
    Section 8.06.  Voting ..............................................................................................   39
    Section 8.07.  Quorum, Actions. ....................................................................................   39
Article IX .............................................................................................................   40

    SUPPLEMENTAL INDENTURES ............................................................................................   40
    Section 9.01.  Supplemental Indentures without Consent of Securityholders ..........................................   40
    Section 9.02.  Supplemental Indentures with Consent of Securityholders .............................................   41
    Section 9.03.  Effect of Supplemental Indentures ...................................................................   42
    Section 9.04.  Notation on Debt Securities .........................................................................   43
    Section 9.05.  Evidence of Compliance of Supplemental Indenture to be Furnished to Trustee .........................   43
Article X ..............................................................................................................   43

    REDEMPTION OF SECURITIES ...........................................................................................   43
    Section 10.01.  Optional Redemption ................................................................................   43
    Section 10.02.  Special Event Redemption ...........................................................................   43
    Section 10.03.  Notice of Redemption; Selection of Debt Securities .................................................   43
    Section 10.04.  Payment of Debt Securities Called for Redemption ...................................................   44
Article XI .............................................................................................................   44

    CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE ..................................................................   45
    Section 11.01.  Company May Consolidate, etc., on Certain Terms ....................................................   45
    Section 11.02.  Successor Entity to be Substituted .................................................................   45
    Section 11.03.  Opinion of Counsel to be Given to Trustee. .........................................................   45
Article XII ............................................................................................................   46

    SATISFACTION AND DISCHARGE OF INDENTURE ............................................................................   46
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                                        <C>
    Section 12.01.  Discharge of Indenture .............................................................................   46
    Section 12.02.  Deposited Moneys to be Held in Trust by Trustee ....................................................   46
    Section 12.03.  Paying Agent to Repay Moneys Held ..................................................................   47
    Section 12.04.  Return of Unclaimed Moneys .........................................................................   47
Article XIII ...........................................................................................................   47

    IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS ....................................................   47
    Section 13.01.  Indenture and Debt Securities Solely Corporate Obligations .........................................   47
Article XIV ............................................................................................................   47

    MISCELLANEOUS PROVISIONS ...........................................................................................   47
    Section 14.01.  Successors .........................................................................................   47
    Section 14.02.  Official Acts by Successor Entity ..................................................................   47
    Section 14.03.  Surrender of Company Powers ........................................................................   48
    Section 14.04.  Addresses for Notices, etc .........................................................................   48
    Section 14.05.  Governing Law ......................................................................................   48
    Section 14.06.  Evidence of Compliance with Conditions Precedent ...................................................   48
    Section 14.07.  Non-Business Days ..................................................................................   49
    Section 14.08.  Table of Contents, Headings, etc ...................................................................   49
    Section 14.09.  Execution in Counterparts ..........................................................................   49
    Section 14.10.  Separability .......................................................................................   49
    Section 14.11.  Assignment .........................................................................................   49
    Section 14.12.  Acknowledgment of Rights ...........................................................................   50
Article XV .............................................................................................................   50

    SUBORDINATION OF DEBT SECURITIES ...................................................................................   50
    Section 15.01.  Agreement to Subordinate ...........................................................................   50
    Section 15.02.  Default on Senior Indebtedness .....................................................................   50
    Section 15.03.  Liquidation; Dissolution; Banlauptcy ...............................................................   51
    Section 15.04.  Subrogation ........................................................................................   52
    Section 15.05.  Trustee to Effectuate Subordination ................................................................   53
    Section 15.06.  Notice by the Company ..............................................................................   53
    Section 15.07.  Rights of the Trustee; Holders of Senior Indebtedness ..............................................   54
    Section 15.08.  Subordination May Not Be Impaired ..................................................................   54
    EXHIBIT A       FORM OF FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITY DUE 2034 ...................................    1
</TABLE>

                                       iii
<PAGE>

            THIS INDENTURE, dated as of May 27, 2004, between Nexity Financial
Corporation, a bank holding company incorporated in Delaware (hereinafter
sometimes called the "Company"), and Wilmington Trust Company, a Delaware
banking corporation, as trustee (hereinafter sometimes called the "Trustee").

                                   WITNESSETH:

            WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issuance of its Floating Rate Junior Subordinated Debt Securities
due 2034 (the "Debt Securities") under this Indenture and to provide, among
other things, for the execution and authentication, delivery and administration
thereof, the Company has duly authorized the execution of this Indenture.

            NOW, THEREFORE, in consideration of the premises, and the purchase
of the Debt Securities by the holders thereof, the Company covenants and agrees
with the Trustee for the equal and proportionate benefit of the respective
holders from time to time of the Debt Securities as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01. Definitions.
                          ------------

            The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of
this Indenture and of any indenture supplemental hereto shall have the
respective meanings specified in this Section 1.01. All accounting terms used
herein and not expressly defined shall have the meanings assigned to such terms
in accordance with generally accepted accounting principles and the term
`generally accepted accounting principles" means such accounting principles as
are generally accepted in the United States at the time of any computation. The
words herein," hereof" and "hereunder" and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

            "Additional Interest" shall have the meaning set forth in Section
3.06.

            "Additional Provisions" shall have the meaning set forth in Section
15.01.

            "Authenticating Agent" means any agent or agents of the Trustee
which at the time shall be appointed and acting pursuant to Section 6.12.

            "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 or the executive
committee or any other duly authorized designated officers of the Company.

            "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 and delivered to the Trustee.

                                       1
<PAGE>

            "Business Day" means any day other than a Saturday, Sunday or any
other day on which banking institutions in Wilmington, Delaware, New York City
or Birmingham, Alabama are permitted or required by any applicable law or
executive order to close.

            "Calculation Agent" means the Person identified as "Trustee" in the
first paragraph hereof with respect to the Debt Securities and the Institutional
Trustee with respect to the Trust Securities.

            "Capital Securities" means undivided beneficial interests in the
assets of the Trust which are designated as "Capital Securities" and rank pari
passu with Common Securities issued by the Trust; provided, however, that if an
Event of Default (as defined in the Declaration) has occurred and is continuing,
the rights of holders of such Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are
subordinated to the rights of holders of such Capital Securities.

            "Capital Securities Guarantee" means the guarantee agreement that
the Company will enter into with Wilmington Trust Company or other Persons that
operates directly or indirectly for the benefit of holders of Capital Securities
of the Trust.

            "Capital Treatment Event" means the receipt by the Company and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of any amendment to, or change in, the laws, rules or regulations of
the United States or any political subdivision thereof or therein, or as the
result of any official or administrative pronouncement or action or decision
interpreting or applying such laws, rules or regulations, which amendment or
change is effective or which pronouncement, action or decision is announced on
or after the date of original issuance of the Debt Securities, there is more
than an insubstantial risk that the Company will not, within 90 days of the date
of such opinion, be entitled to treat an amount equal to the aggregate
Liquidation Amount of the Capital Securities as "Tier I Capital" (or the then
equivalent thereof) for purposes of the capital adequacy guidelines of the
Federal Reserve (or any successor regulatory authority with jurisdiction over
bank holding companies), as then in effect and applicable to the Company,
provided, however, that the distribution of the Debt Securities in connection
with the liquidation of the Trust by the Company shall not in and of itself
constitute a Capital Treatment Event unless such liquidation shall have occurred
in connection with a Tax Event or an Investment Company Event.

            "Certificate" means a certificate signed by any one of the principal
executive officer, the principal financial officer or the principal accounting
officer of the Company.

            "Common Securities" means undivided beneficial interests in the
assets of the Trust which are designated as "Common Securities" and rank pari
passu with Capital Securities issued by the Trust; provided, however, that if an
Event of Default (as defined in the Declaration) has occurred and is continuing,
the rights of holders of such Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are
subordinated to the rights of holders of such Capital Securities.

            "Company" means Nexity Financial Corporation, a bank holding company
incorporated in Delaware, and, subject to the provisions of Article XI, shall
include its successors and assigns.

                                       2
<PAGE>

            "Debt Security" or "Debt Securities" has the meaning stated in the
first recital of this Indenture.

            "Debt Security Register" has the meaning specified in Section 2.05.

            "Declaration" means the Amended and Restated Declaration of Trust of
the Trust dated as of May 27, 2004, as amended or supplemented from time to
time.

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

            "Defaulted Interest" has the meaning set forth in Section 2.08.

            "Deferred Interest" has the meaning set forth in Section 2.11.

            "Event of Default" means any event specified in Section 5.01, which
has continued for the period of time, if any, and after the giving of the
notice, if any, therein designated.

            "Extension Period" has the meaning set forth in Section 2.11.

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

            "Indenture" means this instrument as originally executed or, if
amended or supplemented as herein provided, as so amended or supplemented, or
both.

            "Institutional Trustee" has the meaning set forth in the
Declaration.

            "Interest Payment Date" means January 23, April 23, July 23 and
October 23 of each year, commencing on July 23, 2004, during the term of this
Indenture.

            "Interest Period" has the meaning set forth in Section 2.08.

            "Interest Rate" means a per annum rate of interest, reset quarterly,
equal to LIBOR, as determined on the LIBOR Determination Date immediately
following each Interest Payment Date (except for the first Interest Payment
Date), plus 2.80%.

            "Investment Company Event" means the receipt by the Company and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of a change in law or regulation or written change in interpretation
or application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that
the Trust is or, within 90 days of the date of such opinion will be, considered
an "investment company" that is required to be registered under the Investment
Company Act of 1940, as amended, which change or prospective change becomes
effective or would become effective, as the case may be, on or after the date of
the original issuance of the Debt Securities.

            "LIBOR" means the London Interbank Offered Rate for three-month U.S.
Dollar deposits in Europe as determined by the Calculation Agent according to
Section 2.10(b).

                                       3
<PAGE>

            "LIBOR Banking Day" has the meaning set forth in Section 2.10(b)(1).
"LIBOR Business Day" has the meaning set forth in Section 2.10(b)(1). "LIBOR
Determination Date" has the meaning set forth in Section 2.10(b). "Liquidation
Amount" means the stated amount of $1,000 per Trust Security. "Maturity Date"
means July 23, 2034.

            "Officers' Certificate" means a certificate signed by the Chairman
of the Board, the Vice Chairman, the President or any Vice President, and by the
Chief Financial Officer, the Treasurer, an Assistant Treasurer, the Comptroller,
an Assistant Comptroller, the Secretary or an Assistant Secretary of the
Company, and delivered to the Trustee. Each such certificate shall include the
statements provided for in Section 14.06 if and to the extent required by the
provisions of such Section.

            "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company, or may be other
counsel reasonably satisfactory to the Trustee. Each such opinion shall include
the statements provided for in Section 14.06 if and to the extent required by
the provisions of such Section.

            The term "outstanding," when used with reference to Debt Securities,
subject to the provisions of Section 7.04, means, as of any particular time, all
Debt Securities authenticated and delivered by the Trustee or the Authenticating
Agent under this Indenture, except

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

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

            (c) Debt Securities paid pursuant to Section 2.06 or in lieu of or
      in substitution for which other Debt Securities shall have been
      authenticated and delivered pursuant to the terms of Section 2.06 unless
      proof satisfactory to the Company and the Trustee is presented that any
      such Debt Securities are held by bona fide holders in due course.

            "Paying Agent" means any paying agent appointed pursuant to Section
3.04.

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

            "Predecessor Security" of any particular Debt Security means every
previous Debt Security evidencing all or a portion of the same debt as that
evidenced by such particular Debt Security; and, for the purposes of this
definition, any Debt Security authenticated and delivered under Section 2.06 in
lieu of a lost, destroyed or stolen Debt Security shall be deemed to evidence
the same debt as the lost, destroyed or stolen Debt Security.

                                       4
<PAGE>

            "Principal Office of the Trustee" means the office of the Trustee,
at which at any particular time its corporate trust business shall be
principally administered, which at all times shall be located within the United
States and at the time of the execution of this Indenture shall be Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001.

            "Purchase Agreement" means the Purchase Agreement dated as of May
27, 2004 among the Company, the Trust and NBC Capital Markets Group, Inc.

            "Redemption Date" has the meaning set forth in Section 10.01.

            "Redemption Price" means 100% of the principal amount of the Debt
Securities being redeemed plus accrued and unpaid interest on such Debt
Securities to the Redemption Date or, in the case of redemption at maturity, the
Maturity Date, or, in the case of a redemption due to the occurrence of a
Special Event, to the Special Redemption Date if such Special Redemption Date is
on or after July 23, 2009.

            "Responsible Officer" means, with respect to the Trustee, any
officer within the Principal Office of the Trustee with direct responsibility
for the administration of the Indenture, including any vice-president, any
assistant vice-president, any secretary, any assistant secretary, the treasurer,
any assistant treasurer, any trust officer or other officer of the Principal
Office of the 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.

            "Securityholder," "holder of Debt Securities" or other similar
terms, means any Person in whose name at the time a particular Debt Security is
registered on the Debt Security Register.

            "Senior Indebtedness" means, with respect to the Company, (i) the
principal, premium, if any, and interest in respect of (A) indebtedness of the
Company for money borrowed and (B) indebtedness evidenced by securities,
debentures, notes, bonds or other similar instruments issued by the Company;
(ii) all capital lease obligations of the Company, (iii) all obligations of the
Company issued or assumed as the deferred purchase price of property, all
conditional sale obligations of the Company and all obligations of the Company
under any title retention agreement (but excluding trade accounts payable
arising in the ordinary course of business); (iv) all obligations of the Company
for the reimbursement of any letter of credit, any banker's acceptance, any
security purchase facility, any repurchase agreement or similar arrangement, any
interest rate swap, any other hedging arrangement, any obligation under options
or any similar credit or other transaction; (v) all obligations of the type
referred to in clauses (i) through (iv) above of other Persons for the payment
of which the Company is responsible or liable as obligor, guarantor or
otherwise; and (vi) all obligations of the type referred to in clauses (i)
through (v) above of other Persons secured by any lien on any property or asset
of the Company (whether or not such obligation is assumed by the Company),
whether incurred on or prior to the date of this Indenture or thereafter
incurred, unless, with the prior approval of the Federal Reserve if not
otherwise generally approved, 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 or are pari passu in right of payment to the Debt
Securities.

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

                                       5
<PAGE>

            "Special Redemption Date" has the meaning set forth in Section
10.02.

            "Special Redemption Price" means, with respect to the redemption of
any Debt Security following a Special Event, an amount in cash equal to the
percentage for the principal amount of the Debt Securities that is specified
below for the Special Redemption Date plus unpaid interest accrued thereon to
the Special Redemption Date:

        ----------------------------------------------------------------------
        Special Event Redemption During         Percentage of Principal Amount
        -------------------------------         ------------------------------
              Period Beginning On
              -------------------
        ----------------------------------------------------------------------
                 May 27, 2004                                 104.40
        ----------------------------------------------------------------------
                 July 23, 2005                                103.52
        ----------------------------------------------------------------------
                 July 23, 2006                                102.64
        ----------------------------------------------------------------------
                 July 23, 2007                                101.76
        ----------------------------------------------------------------------
                 July 23, 2008                                100.88
        ----------------------------------------------------------------------
         July 23, 2009 and thereafter                         100.00
        ----------------------------------------------------------------------

            "Subsidiary" means, with respect to any Person, (i) any corporation,
at least a majority of the outstanding voting stock of which is owned, directly
or indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity, at least a majority of the outstanding partnership or
similar interests of which 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 (iii) any limited partnership of which such Person or any of
its Subsidiaries is a general partner. For the purposes of this definition,
"voting stock" means shares, interests, participation 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.

            "Tax Event" means the receipt by the Company and the Trust of an
Opinion of Counsel experienced in such matters 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 (including any private letter ruling,
technical advice memorandum, regulatory procedure, notice or announcement (an
"Administrative Action")) or judicial decision interpreting or applying such
laws or regulations, regardless of whether such Administrative Action or
judicial decision is issued to or in connection with a proceeding involving the
Company or the Trust and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debt. Securities, there is more than an insubstantial risk that: (i) the
Trust is, or will be within 90 days of the date of such. opinion, subject to
United States federal income tax with respect to income received or accrued on
the Debt Securities; (ii) interest payable by the Company on the Debt Securities
is not, or within 90 days of the date of such opinion, will not be, deductible
by the Company, in whole or in part, for United States

                                       6
<PAGE>

federal income tax purposes; or (iii) the Trust is, or will be within 90 days of
the date of such opinion, subject to more than a de minimis amount of other
taxes (including withholding taxes), duties, assessments or other governmental
charges.

            "Trust" means Nexity Capital Trust II, the Delaware statutory trust,
or any other similar trust created for the purpose of issuing Capital Securities
in connection with the issuance of Debt Securities under this Indenture, of
which the Company is the sponsor.

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

            "Trust Securities" means Common Securities and Capital Securities of
Nexity Capital Trust II.

            "Trustee" means the Person identified as "Trustee" in the first
paragraph hereof, and, subject to the provisions of Article. VI hereof, shall
also include its successors and assigns as Trustee hereunder.

            "United States" means the United States of America and the District
of Columbia.

            "U.S. Person" has the meaning given to United States Person as set
forth in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

                                   ARTICLE II

                                 DEBT SECURITIES

            Section 2.01. Authentication and Dating.
                          --------------------------

            Upon the execution and delivery of this Indenture, or from time to
time thereafter, Debt Securities in an aggregate principal amount not in excess
of $12,372,000 maybe executed and delivered by the Company to the Trustee for
authentication, and the Trustee shall thereupon authenticate and make available
for delivery said Debt Securities to or upon the written order of the Company,
signed by its Chairman of the Board of Directors, Vice Chairman, President or
Chief Financial Officer or one of its Vice Presidents, without any further
action by the Company hereunder. In authenticating such Debt Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Debt Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.01) shall be fully protected in relying upon a copy of any Board
Resolution or Board Resolutions relating thereto and, if applicable, an
appropriate record of any action taken pursuant to such resolution, in each case
certified by the Secretary or an-Assistant Secretary or other officer with
appropriate delegated authority of the Company as the case may be.

            The Trustee shall have the right to decline to authenticate and
deliver any Debt Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if a
Responsible Officer of the Trustee in good faith shall determine that such
action would expose the Trustee to personal liability to existing
securityholders.

                                       7
<PAGE>

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

            Section 2.02. Form of Trustee's Certificate of Authentication.

            The Trustee's certificate of authentication on all Debt Securities
shall be in substantially the following form:

            This is one of the Debt Securities referred to in the
within-mentioned Indenture.

            WILMINGTON TRUST COMPANY, not in its individual capacity but solely
            as trustee

            By _____________________
               Authorized Officer

            Section 2.03. Form and Denomination of Debt Securities.
                          -----------------------------------------

            The Debt Securities shall be substantially in the form of Exhibit A
hereto. The Debt Securities shall be in registered, certificated form without
coupons and in minimum denominations of $100,000 and any multiple of $1,000 in
excess thereof. The Debt Securities shall be numbered, lettered, or otherwise
distinguished in such manner or in accordance with such plans as the officers
executing the same may determine with the approval of the Trustee as evidenced
by the execution and authentication thereof.

            Section 2.04. Execution of Debt Securities.
                          -----------------------------

            The Debt Securities shall be signed in the name and on behalf of the
Company by the manual or facsimile signature of its Chairman of the Board of
Directors, Vice Chairman, President or Chief Financial Officer or one of its
Executive Vice Presidents, Senior Vice Presidents or Vice Presidents, under its
corporate seal which may be affixed thereto or printed, engraved or otherwise
reproduced thereon, by facsimile or otherwise, and which need not be attested.
Only such Debt Securities as shall bear thereon a certificate of authentication
substantially in the form herein before recited, executed by the Trustee or the
Authenticating Agent by the manual signature of an authorized officer, shall be
entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee or the Authenticating Agent upon any
Debt Security executed by the Company shall be conclusive evidence that the Debt
Security so authenticated has been duly authenticated and delivered hereunder
and that the holder is entitled to the benefits of this Indenture.

            In case any officer of the Company who shall have signed any of the
Debt Securities shall cease to be such officer before the Debt Securities so
signed shall have been authenticated and delivered by the Trustee or the
Authenticating Agent, or disposed of by the Company, such Debt Securities
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed such Debt Securities had not ceased to be such officer of the
Company; and any Debt Security may be signed on behalf of the Company by such
Persons as, at the actual date of the execution of such Debt Security, shall be
the proper officers of the Company, although at the date of the execution of
this Indenture any such person was not such an officer.

                                       8
<PAGE>

            Every Debt Security shall be dated the date of its authentication.

            Section 2.05. Exchange and Registration of Transfer of Debt
Securities.

            The Company shall cause to be kept, at the office or agency
maintained for the purpose of registration of transfer and for exchange as
provided in Section 3.02, a register (the "Debt Security Register") for the Debt
Securities issued hereunder in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration and transfer of
all Debt Securities as provided in this Article II. Such register shall be in
written form or in any other form capable of being converted into written form
within a reasonable time.

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

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

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

            The Company or the Trustee shall not be required to exchange or
register a transfer of any Debt Security for a period of 15 days immediately
preceding the date of selection of Debt Securities for redemption.

            Notwithstanding the foregoing, Debt Securities may not be
transferred except in compliance with the restricted securities legend set forth
below, unless otherwise determined by the Company in accordance with applicable
law, which legend shall be placed on each-Debt Security:

            THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOPFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE

                                       9
<PAGE>

ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT ("RULE 144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS
A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT
TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN
"ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2),(3) OR (7)
OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE
INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

            THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES,
REPRESENTS AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS
INVOLVING THIS SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE
SECURITIES ACT.

            THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
(EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLANS INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE
UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR
HOLDER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER

                                       10
<PAGE>

PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON
OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION
UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO
APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

            IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

            THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A
PRINCIPAL AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE
THE HOLDER OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL
BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

            THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT
INSURANCE CORPORATION (THE "FDIC"). THIS OBLIGATION IS SUBORDINATED TO THE
CLAIMS OF DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE
COMPANY, IS INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS
SUBSIDIARIES AND IS NOT SECURED.

            Section 2.06. Mutilated, Destroyed. Lost or Stolen Debt Securities.
                          -----------------------------------------------------

            In case any Debt Security shall become mutilated or be destroyed,
lost or stolen, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, a new Debt Security bearing-a number not
contemporaneously outstanding, in exchange and substitution for the mutilated
Debt Security, or in lieu of and in substitution for the Debt Security so
destroyed, lost or stolen. In every case the applicant for a substituted Debt
Security 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
such Debt Security and of the ownership thereof.

            The Trustee may authenticate any such substituted Debt Security and
deliver the same upon the written request or authorization of any officer of the
Company. Upon the issuance of any substituted Debt-Security, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses connected
therewith In case any Debt Security which has matured or is about to mature or
has been called for redemption in full shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substitute Debt Security,
pay or authorize the payment of the same (without surrender thereof

                                       11
<PAGE>

except in the case of a mutilated Debt Security) if the applicant for such
payment 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 case of
destruction, loss or theft, evidence satisfactory to the Company and to the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.

            Every substituted Debt Security issued pursuant to the provisions of
this Section 2.06 by virtue of the fact that any such Debt Security is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Debt Security shall
be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Debt Securities
duly issued hereunder. All Debt Securities shall be held and owned upon the
express condition that, to the extent permitted by applicable law, the foregoing
provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Debt Securities and shall preclude any and
all other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

            Section 2.07. Section 2.07. Temporary Debt Securities.
                          ----------------------------------------

            Pending the preparation of definitive Debt Securities, the Company
may execute and the Trustee shall authenticate and make available for delivery
temporary Debt Securities that are typed, printed or lithographed. Temporary
Debt Securities shall be issuable in any authorized denomination, and
substantially in the form of the definitive Debt Securities but with such
omissions, insertions and variations as may be appropriate for temporary Debt
Securities, all as may be determined by the Company. Every such temporary Debt
Security shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with the same
effect, as the definitive Debt Securities. Without unreasonable delay, the
Company will execute and deliver to the Trustee or the Authenticating Agent
definitive Debt Securities and thereupon any or all temporary Debt Securities
may be surrendered in exchange therefor, at the Principal Office of the Trustee
or at any office or agency maintained by the Company for such purpose as
provided in Section 3.02, and the Trustee or the Authenticating Agent shall
authenticate and make available for delivery in exchange for such temporary Debt
Securities a like aggregate principal amount of such definitive Debt Securities.
Such exchange shall be made by the Company at its own expense and without any
charge therefor except that in case of any such exchange involving a
registration of transfer the Company may require payment of a sum sufficient to
cover any tax, fee or other governmental charge that may be imposed in relation
thereto. Until so exchanged, the temporary Debt Securities shall in all respects
be entitled to the same benefits under this Indenture as definitive Debt
Securities authenticated and delivered hereunder.

            Section 2.08. Section 2.08. Payment of Interest.
                          ----------------------------------

            Each Debt Security will bear interest at the then applicable
Interest Rate from and including each Interest Payment Date or, in the case of
the first interest period, the original date of issuance of such Debt Security
to, but excluding, the next succeeding Interest Payment Date or, in the case of
the last interest period, the Redemption Date, Special Redemption Date or
Maturity Date, as applicable (each such period an "Interest Period"), on the
principal thereof, on any overdue principal and (to the extent that payment of
such interest is enforceable under applicable law) on Deferred Interest and on
any overdue installment of interest (including Defaulted Interest), payable
(subject to the provisions of Article XII) on each Interest Payment Date
commencing on July 23, 2004. Interest and any Deferred

                                       12
<PAGE>

Interest on any Debt Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name said Debt Security (or one or more Predecessor Securities) is registered at
the close of business on the regular record date for such interest installment,
except that interest and any Deferred Interest payable on the Maturity Date, the
Redemption Date or the Special Redemption Date, as the case may be, shall be
paid to the Person to whom principal is paid. In the event that any Debt
Security or portion thereof is called for redemption and the redemption date is
subsequent to a regular record date with respect to any Interest Payment Date
and prior to such Interest Payment Date, interest on such Debt Security will be
paid upon presentation and surrender of such Debt Security.

            Any interest on any Debt Security, other than Deferred Interest,
that is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease
to be payable to the registered holder on the relevant regular record date by
virtue of having been such holder, and such Defaulted Interest shall be paid by
the Company to the Persons in whose names such Debt Securities (or their
respective Predecessor Securities) are registered at the close of business on a
special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner: the Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each such Debt
Security and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to-such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a special record date for the payment
of such Defaulted Interest which shall not be more than fifteen nor less than
ten days prior to the date of the proposed payment and not less than ten days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such special record date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the special record date therefor to be
mailed, fast class postage prepaid, to each Securityholder at his or her address
as it appears in the Debt Security Register, not less than ten days prior to
such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been mailed as aforesaid,
such Defaulted Interest shall be paid to the Persons in whose names such Debt
Securities (or their respective Predecessor Securities) are registered on such
special record date, and thereafter the Company shall have no further payment
obligation in respect of the Defaulted Interest.

            Any interest scheduled to become payable on an Interest Payment Date
occurring during an Extension Period shall not be Defaulted Interest and shall
be payable on such other date as may be specified in the terms of such Debt
Securities.

            The term "regular record date" as used in this Section shall mean
the fifteenth day prior to an Interest Payment Date whether or not such date is
a Business Day.

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

                                       13
<PAGE>

            Section 2.09. Section 2.09. Cancellation-of Debt Securities Paid,
etc.

            All Debt Securities surrendered for the purpose of payment,
redemption, exchange or registration of transfer, shall, if surrendered to the
Company or any paying agent, be surrendered to the Trustee and promptly canceled
by it, or, if surrendered to the Trustee or any Authenticating Agent, shall be
promptly canceled by it, and no Debt Securities shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. All
Debt Securities canceled by any Authenticating Agent shall be delivered to the
Trustee. The Trustee shall destroy all canceled Debt Securities unless the
Company otherwise directs the Trustee in writing, in which case the Trustee
shall dispose of such Debt Securities as directed by the Company. If the Company
shall acquire any of the Debt Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debt Securities unless and until the same are surrendered to the Trustee for
cancellation.

            Section 2.10. Computation of Interest.
                          ------------------------

            (a) The amount of interest payable for any interest period will be
computed on the basis of a 360-day year and the actual number of days elapsed in
the relevant interest period; provided, however, that upon the occurrence of a
Special Event redemption pursuant to Section 10.02 the amounts payable pursuant
to this Indenture shall be calculated as set forth in the definition of Special
Redemption Price.

            (b) LIBOR shall be determined by the Calculation Agent for each
Interest Period in accordance with the following provisions:

                  (1) On the second LIBOR Business Day (provided, that on such
            day commercial banks are open for business (including dealings in
            foreign currency deposits) in London (a ""IBOR Banking Day"), and
            otherwise the next preceding LIBOR Business Day that is also a LIBOR
            Banking Day) prior to January 23, April 23, July 23 and October 23,
            as the case may be, immediately preceding the commencement of such
            Interest Period (or, in the case of the first Interest Period, prior
            to May 27, 2004), (each such day, a "LIBOR Determination Date"),
            LIBOR shall equal the rate, as obtained by the Calculation Agent for
            three-month U.S. Dollar deposits in Europe, which appears on
            Telerate Page 3750 (as defined in the International Swaps and
            Derivatives Association, Inc. 1991 Interest Rate and Currency
            Exchange Definitions) or such other page as may replace such
            Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR
            Determination Date, as reported by Bloomberg Financial Markets
            Commodities News; provided, however, that in the case of the first
            Interest Period, LIBOR will be interpolated from LIBOR for one-month
            U.S. Dollar deposits in Europe and LIBOR for two month U.S. Dollar
            deposits in Europe on a straight-line basis. "LIBOR Business Day"
            means any day that is not a Saturday, Sunday or other day on which
            commercial banking institutions in New York, New York or Wilmington,
            Delaware are authorized or obligated by law or executive order to be
            closed. If such rate is superseded on Telerate Page 3750 by a
            corrected rate before 12:00 noon (London time) on the same LIBOR
            Determination Date, the corrected rate as so substituted will be the
            applicable LIBOR for that LIBOR Determination Date.

                                       14
<PAGE>

                  (2) If, on any LIBOR Determination Date, such rate does not
            appear on Telerate Page 3750 as reported by Bloomberg Financial
            Markets Commodities News or such other page as may replace such
            Telerate Page 3750, the Calculation Agent shall determine the
            arithmetic mean of the offered quotations of the Reference Banks (as
            defined below) to leading banks in the London interbank market for
            three-month U.S. Dollar deposits in Europe (in an amount determined
            by the Calculation Agent) by reference to requests for quotations as
            of approximately 11:00 a.m. (London time) on the LIBOR Determination
            Date made by the Calculation Agent to the Reference Banks. If, on
            any LIBOR Determination Date, at least two of the Reference Banks
            provide such quotations, LIBOR shall equal the arithmetic mean of
            such quotations. If, on any LIBOR Determination Date, only one or
            none of the Reference Banks provide such a quotation, LIBOR shall be
            deemed to be the arithmetic mean of the offered quotations that at
            least two leading banks in the City of New York (as selected by the
            Calculation Agent) are quoting on the relevant LIBOR Determination
            Date for three-month U.S. Dollar deposits in Europe at approximately
            11:00 a.m. (London time) (in an amount determined by the Calculation
            Agent). As used herein, "Reference Banks" means four major banks in
            the London interbank market selected by the Calculation Agent.

                  (3) If the Calculation Agent is required but is unable to
            determine a rate in accordance with at least one of the procedures
            provided above, LIBOR shall be LIBOR in effect on the previous LIBOR
            Determination Date (whether or not LIBOR for such period was in fact
            determined on such LIBOR Determination Date).

            (c) All percentages resulting from any calculations on the Debt
Securities will be rounded, if necessary, to the nearest one hundred-thousandth
of a percentage point, with five one-millionths of a percentage point rounded
upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)),
and all dollar amounts-used in or resulting from such calculation will be
rounded to the nearest cent (with one-half cent being rounded upward).

            (d) On each LIBOR Determination Date, the Calculation Agent shall
notify, in writing, the Company and the Paying Agent of the applicable Interest
Rate in effect for the related Interest Payment Date. The Calculation Agent
shall, upon the request of the holder of any Debt Securities, provide the
Interest Rate then in effect. All calculations made by the Calculation Agent in
the absence of manifest error shall be conclusive for all purposes and binding
on the Company and the holders of the Debt Securities. The Paying Agent shall be
entitled to rely on information received from the Calculation Agent or the
Company as to the Interest Rate. The Company shall, from time to time, provide
any necessary information to the Paying Agent relating to any original issue
discount and interest on the Debt Securities that is included in any payment and
reportable for taxable income calculation purposes.

            Section 2.11. Extension of Interest Payment Period.
                          -------------------------------------

            So long as no Event of Default has occurred and is continuing, the
Company shall have the right, from time to time and without causing an Event of
Default,_ to defer payments of interest on the Debt Securities by extending the
interest payment period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to twenty consecutive quarterly
periods (each

                                       15
<PAGE>

such extended interest payment period, an "Extension Period'), during which
Extension Period no interest shall be due and payable (except any Additional
Interest that may be due and payable). No Extension Period may end on a date
other than an Interest Payment Date. During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued interest
(such accrued interest and interest thereon referred to herein as "Deferred
Interest") will accrue, at the Interest Rate, compounded quarterly from the date
such Deferred Interest would have been payable were it not for the Extension
Period, both to the extent permitted by law. No interest or Deferred Interest
shall be due and payable during an Extension Period, except at the end thereof
At the end of any such Extension Period the Company shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided,-however that
no Extension Period may extend beyond the Maturity Date, Redemption Date or
Special Redemption Date; and provided further however, that during any such
Extension Period, the Company shall be subject to the restrictions set forth in
Section 3.08 of this Indenture. Prior to the termination of any Extension
Period, the Company may further extend such period, provided, that such period
together with all such previous and further consecutive extensions thereof shall
not exceed twenty consecutive quarterly periods, or extend beyond the Maturity
Date. Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Company may commence a new Extension Period, subject to
the foregoing requirements. The Company must give the Trustee notice of its
election to begin such Extension Period at least one Business Day prior to the
earlier of () the next succeeding date on which interest on the Debt Securities
would have been payable except for the election to begin such Extension Period
or (ii) the date such interest is payable, but in any event not later than the
related regular record date. The Trustee shall give notice of the Company's
election to begin a new Extension Period to the Securityholders.

            Section 2.12. CUSIP Numbers.
                          --------------

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

                                   ARTICLE III

                      PARTICULAR COVENANTS OF THE COMPANY

            Section 3.01. Payment of Principal, Premium and Interest; Agreed
Treatment of the Debt Securities.

            (a) The Company covenants and agrees that it will duly and
punctually pay or cause to be paid all payments due on the Debt Securities at
the place, at the respective times and in the manner provided in this Indenture
and the Debt Securities. At the option of the Company, each installment of
interest on the Debt Securities may be paid (i) by mailing checks for such
interest payable to the order of the holders of Debt Securities entitled thereto
as they appear on the Debt Security Register or (ii) by wire transfer to any
account with a banking institution located in the United States designated by
such Person to the paying agent no later than the related record date.

                                       16
<PAGE>

            (b) The Company will treat the Debt Securities as indebtedness, and
the interest payable in respect of such Debt Securities as interest, for all
U.S. federal income tax purposes. All payments in respect of such Debt
Securities will be made free and clear of U.S. withholding tax to any beneficial
owner thereof that has provided an Internal Revenue Service Form W-8BEN (or any
substitute or successor form) establishing its non-U.S. status for U.S. federal
income tax purposes.

            (c) As of the date of this Indenture, the Company has no intention
to exercise its right under Section 2.11 to defer payments of interest on the
Debt Securities by commencing an Extension Period.

            (d) As of the date of this Indenture, the Company believes that the
likelihood that it would exercise its right under Section 2.11 to defer payments
of interest on the Debt Securities by commencing an Extension Period at any time
during which the Debt Securities are outstanding is remote because of the
restrictions that would be imposed on the Company's ability to declare or pay
dividends or distributions on, or to redeem, purchase or make a liquidation
payment with respect to, any of its outstanding equity and on the Company's
ability to make any payments of principal of or interest on, or repurchase or
redeem, any of its debt securities that rank pari passu in all respects with (or
junior in interest to) the Debt Securities.

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

            So long as any of the Debt Securities remain outstanding, the
Company will maintain in Wilmington, Delaware or in Birmingham, Alabama an
office or agency where the Debt Securities may be presented for payment, an
office or agency where the Debt Securities may be presented for registration of
transfer and for exchange as provided in this Indenture- and an office or agency
where notices and demands to or upon the Company in respect of the Debt
Securities or of this Indenture may be served. The Company will give to the
Trustee written notice of the location of any such office or agency and of any
change of location thereof. Until otherwise designated from time to time by the
Company in a notice to the Trustee, or specified as contemplated by Section
2.05, such office or agency for all of the above purposes shall be the Principal
Office of the Trustee. In case the Company shall fail to maintain any such
office or agency in Wilmington, Delaware or in Birmingham, Alabama or shall fail
to give such notice of the location or of any change in the location thereof,
presentations and demands may be made and notices may be served at the Principal
Office of the Trustee.

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

                                       17
<PAGE>

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

            The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 6.09, a
Trustee, so that there shall at all times be a Trustee hereunder.

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

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

                  (1) that it will hold all sums held by it as such agent for
            the payment of all payments due on the Debt Securities (whether such
            sums have been paid to it by the Company or by any other obligor on
            the Debt Securities) in trust for the benefit of the holders of the
            Debt Securities;

                  (2) that it will give the Trustee prompt written notice of any
            failure by the Company (or by any other obligor on the Debt
            Securities) to make any payment on the Debt Securities when the same
            shall be due and payable; and

                  (3) that it will, at any time during the continuance of any
            Event of Default, upon the written request of the Trustee, forthwith
            pay to the Trustee all sums so held in trust by such paying agent.

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

            Whenever the Company shall have one or more paying agents for the
Debt Securities, it will, on or prior to each due date of the payments on the
Debt Securities, deposit with a paying agent a sum sufficient for pay all
payments so becoming due, such sum to be held in trust for the benefit of the
Persons entitled thereto and (unless such paying agent is the Trustee) the
Company shall promptly notify the Trustee in writing of its action or failure to
act.

            (c) Anything in this Section 3.04 to the contrary notwithstanding,
the Company may, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to the Debt Securities, or for any other reason, pay, or
direct any paying agent to pay to the Trustee all sums held in trust by the
Company or any such paying agent, such sums to be held by the Trustee upon the
same terms and conditions herein contained.

            (d) Anything in this Section 3.04 to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section 3.04 is subject
to Sections 12.03 and 12.04.

            (e) The Company hereby initially appoints the Trustee to act as
paying agent.

                                       18
<PAGE>

            Section 3.05. Certificate to Trustee.
                          -----------------------

            The Company will deliver to the. Trustee on or before 120 days after
the end of each fiscal year, so long as Debt Securities are outstanding
hereunder, a Certificate stating that in the course of the performance by the
signers of their duties as officers of the Company they would normally have
knowledge of any default by the Company in the performance of any covenants
contained herein, stating whether or not they have knowledge of any such default
and, if so, specifying each such default of which the signers have knowledge and
the nature thereof

            Section 3.06. Additional Interest.
                          --------------------

            If and for so long as the Trust is the holder of all Debt Securities
and is subject to, or otherwise required to pay, or is required to withhold from
distributions to holders of Trust Securities, any additional taxes (including
withholding taxes), duties, assessments or other governmental charges as a
result of a Tax Event, the Company will pay such additional amounts (the
"Additional Interest) on the Debt Securities as shall be required so that the
net amounts received and retained by the Trust after paying taxes, duties,
assessments or other governmental charges will be equal to the amounts the Trust
would have received if no such taxes, duties, assessments or other governmental
charges had been imposed. Whenever in this Indenture or the Debt Securities
there is a reference in any context to the payment of principal of or interest
on the Debt Securities, such mention shall be deemed to include mention of
payments of the Additional Interest provided for in this paragraph to the extent
that, in such context, Additional. Interest is, was or would be payable in
respect thereof pursuant to the provisions of this paragraph and express mention
of the payment of Additional Interest (if applicable) in any provisions hereof
shall not be construed as excluding Additional Interest in those provisions
hereof where such express mention is not made, provided, however, that the
deferral of the payment of interest during an Extension Period pursuant to
Section 2.11 shall not defer the payment of any Additional Interest that may be
due and payable.

            Section 3.07. Compliance with Consolidation Provisions.
                          -----------------------------------------

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

            Section 3.08. Limitation on Dividends.
                          ------------------------

            If Debt Securities are initially issued to the Trust or a trustee of
such Trust in connection with the issuance of Trust Securities by the Trust
(regardless of whether Debt Securities continue to be held by such Trust) and
(i) there shall have occurred and be continuing an Event of Default, (ii) the
Company shall be in default with respect to its payment of any obligations under
the Capital Securities Guarantee or (iii) the Company shall have given notice of
its election to defer payments of interest on the Debt Securities by extending
the interest payment period as provided herein and such period, or any extension
thereof, shall have commenced and be continuing, then the Company may not (A))
declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation payment with respect to, any of the Company's capital
stock or (B) make any payment of principal of or interest or premium, if any, on
or repay, repurchase or redeem any debt securities of the Company that rank pari
passu in all respects with or junior in interest to the Debt Securities (other

                                       19
<PAGE>

than (a) repurchases, redemptions or other acquisitions of shares of capital
stock of the Company (I) in connection with any employment contract, benefit
plan or other similar arrangement with or for the benefit of one or more
employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan or (III) in connection
with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the occurrence of (i), (ii) or (iii) above,
(b) as a result of any exchange or conversion of any class or series of the
Company's capital stock (or any capital stock of a subsidiary of the Company)
for any class or series of the Company's capital stock or of any class or series
of the Company's, indebtedness for any class or series of the Company's capital.
stock, (c) the purchase of factional. interests in shares of the Company's
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged, (d) any declaration of a
dividend in connection with any stockholder's rights plan, or the issuance of
rights, stock or other property under any stockholder's rights plan, or the
redemption or repurchase of rights pursuant thereto, or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the
same stock as that on which the dividend is being paid or ranks pari passu with
or junior to such stock).

            Section 3.09. Covenants as to the Trust.
                          --------------------------

            For so long as such Trust Securities remain outstanding, the Company
shall maintain 100% ownership of the Common Securities; provided, however, that
any permitted successor of the Company under this Indenture that is a U.S.
Person may succeed to the Company's ownership of such Common Securities. The
Company, as owner of the Common Securities, shall use commercially reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in connection
with a distribution of Debt Securities to the holders of Trust Securities in
liquidation of the Trust, the redemption of all of the Trust Securities or
certain mergers, consolidations or amalgamations, each as permitted by the
Declaration, (b) to otherwise continue to be classified as a grantor trust for
United States federal income tax purposes and (c) to cause each holder of Trust
Securities to be treated as owning an undivided beneficial interest in the Debt
Securities.

                                   ARTICLE IV

                LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

            Section 4.01. Securityholders' Lists.
                          -----------------------

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

            (a) on each regular record date for an Interest Payment Date, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Securityholders of the Debt Securities as of such record date;
and

            (b) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time
such list is furnished; except that no such lists need be furnished under this

                                       20
<PAGE>

Section 4.01 so long as the Trustee is in possession thereof by reason of its
acting as Debt Security registrar.

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

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

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

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

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

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

                                       21
<PAGE>

promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

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

            Section 4.03. Financial and Other information.
                          --------------------------------

            (a) The Company shall deliver to each holder of the Capital
Securities (1) each report on Form 10-K and Form 10-Q prepared by the Company
and any Subsidiaries (as defined in the Purchase Agreement) and filed with the
Securities and Exchange Commission inn accordance with the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), within 90 days after the filing of
each Form 10-K and within 30 days after the filing of each Form 10-Q (or such
earlier number of days prescribed by the Securities and Exchange Commission for
the filing of such Form by companies subject to the information reporting
requirements of the Exchange Act), (2) if the Company or any of its Subsidiaries
is not then (y) subject to Section 13 or 15(d) of the Exchange Act or (z) exempt
from reporting pursuant to Rule 12g3 2(b) thereunder, the audited annual
financial statements of the Company and any Subsidiaries within 90 days after
the end of the fiscal year, and (3) within 30 days after the end of the fiscal
year of the Company and any of its Subsidiaries, Form 1099 or such other annual
U.S. federal income tax information statement required by the Internal Revenue
Code of 1986, as amended (the "Code), containing such information with regard to
the Debt Securities held by such holder as is required by the Code and the
income tax regulations of the U.S. Treasury thereunder.

            (b) If and so long as the holder of the Capital Securities is NBC
Capital Markets Group, Inc. or the initial transferee thereof, the Company will
cause copies of its reports on Form FR Y-9C to be delivered to the holder
promptly following their filing with the Federal Reserve.

                                   ARTICLE V

          REMEDIES OF THE TRUSTEE AND SECURJTYHOLDERS UPON AN EVENT OF
                                     DEFAULT

            Section 5.01. Events of Default.
                          ------------------

            The following events shall be "Events of Default" with respect to
Debt Securities:

            (a) the Company defaults in the payment of any interest upon any
Debt Security when it becomes due and payable, and continuance of such default
for a period of 30 days; for the avoidance of doubt, an extension of any
interest payment period by the Company in accordance with Section 2.11 of this
Indenture shall not constitute a default under this clause 5.01(a); or

                                       22
<PAGE>

            (b) the Company defaults in the payment of all or any part of the
principal of (or premium, if any, on) any Debt Securities as and when the same
shall become due and payable either at maturity, upon redemption, by declaration
of acceleration or otherwise; or

            (c) the Company defaults in the performance of; or breaches, any of
its covenants or agreements in Sections 3.06, 3.07, 3.08 or 3.09 of this
Indenture. (other than a covenant or agreement a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of 90 days after there has
been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the holders of not less than 25% in aggregate
principal amount of the outstanding Debt Securities, a written notice specifying
such default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder; or .

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

            (e) the Company shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, shall
consent to the entry of an order for relief in an involuntary case under any
such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or of any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due; or

            (f) the Trust shall have voluntarily or involuntarily liquidated,
dissolved, wound-up its business or otherwise terminated its existence except in
connection with (1) the distribution of the Debt Securities to holders of the
Trust Securities in liquidation of their interests in the Trust, (2) the
redemption of all of the outstanding Trust Securities or (3) certain mergers,
consolidations or amalgamations, each as permitted by the Declaration.

            If an Event of Default occurs and is continuing with respect to the
Debt Securities, then, and in each and every such case, unless the principal of
the Debt Securities shall have already become due and payable, either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Debt Securities then outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by Securityholders), may declare the entire
principal of the Debt Securities and the interest accrued, but unpaid; thereon,
if any, to be due and payable immediately, and upon any such declaration the
same shall become immediately due and payable.

            The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Debt Securities 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, (i)
the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
all matured installments of interest upon all the Debt Securities and all
payments on the Debt Securities which shall have become due otherwise than by
acceleration (with interest upon all such payments and Deferred

                                       23
<PAGE>

Interest, to the extent permitted by law) and such amount as shall be sufficient
to cover reasonable compensation to the Trustee and each predecessor Trustee,
their respective agents, attorneys and counsel, and all other amounts due to the
Trustee pursuant to Section 6.06, if any, and (ii) all Events of Default under
this Indenture, other than the non-payment of the payments on Debt Securities
which shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein, then and in every such case the holders
of a majority in aggregate principal amount of the Debt Securities then
outstanding, by written notice to the Company and to the Trustee, may waive all
defaults and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon.

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

            Section 5.02. Payment of Debt Securities on Default; Suit Therefor.
                          -----------------------------------------------------

            The Company covenants that upon the occurrence of an Event of
Default pursuant to clause 5.01(a) or 5.01(b) and upon-demand of the Trustee,
the Company will pay to the Trustee, for the benefit of the holders of the Debt
Securities, the whole amount that then shall have become due and payable on all
Debt Securities, including Deferred Interest accrued on the Debt Securities;
and, in. addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including a reasonable compensation to the
Trustee, its agents, attorneys and counsel, and any other amounts due to the
Trustee under Section 6.06. In case the Company shall fail forthwith to pay such
amounts upon such demand, the Trustee, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any actions or
proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company or
any other obligor on such Debt Securities and collect in the manner provided by
law out of the property of the Company or any other obligor on such Debt
Securities wherever situated the moneys adjudged or decreed to be payable.

            In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor on the Debt Securities
under Bankruptcy Law, or in case a receiver or trustee shall have been appointed
for the property of the Company or such other obligor, or in the case of any
other similar judicial proceedings relative to the Company or other obligor upon
the Debt Securities, or to the creditors or property of the Company or such
other obligor, the Trustee, irrespective of whether the principal of the Debt
Securities shall then be due and payable as therein expressed or by declaration
of acceleration or otherwise and irrespective of whether the Trustee shall have
made any demand pursuant to the provisions of this Section 5.02, shall be
entitled and empowered, by intervention in such proceedings or otherwise, to
file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Debt Securities and, in case of any judicial
proceedings, to file such proofs of claim and other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee (including
any claim for reasonable compensation to the Trustee and each predecessor
Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all other amounts due to the Trustee under Section 6.06) and of
the Securityholders allowed in such judicial proceedings relative to the

                                       24
<PAGE>

Company or any other obligor on the Debt Securities, or to the creditors or
property of the Company or such other obligor, unless prohibited by applicable
law and regulations; to vote on behalf of the holders of the Debt Securities in
any election of a trustee or a standby trustee in arrangement, reorganization,
liquidation or other bankruptcy or insolvency proceedings or Person performing
similar functions in comparable proceedings, and to collect and receive any
moneys or other property payable or deliverable on any such claims, and to
distribute the same after the deduction of its charges and expenses; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the Securityholders to make such payments to the Trustee,
and, in the event that the Trustee shall consent to the making of such payments
directly to the Securityholders, to pay to the Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other
amounts due to the Trustee under Section 6.06.

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

            All rights of action and of asserting claims under this Indenture,
or under any of the Debt Securities, may be enforced by the Trustee without the
possession of any of the Debt Securities, 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 be for the ratable benefit of the holders of
the Debt Securities.

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

            Section 5.03. Section 5.03. Application of Moneys Collected by
Trustee.

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

            First: To the payment of costs and expenses incurred by, and
reasonable fees of, Trustee, its agents, attorneys and counsel, and of all other
amounts due to the Trustee under Section 6.06;

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

            Third: To the payment of the amounts then due and unpaid upon Debt
Securities, in respect of which or for the benefit of which money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due on such Debt Securities; and

            Fourth: The balance, if any, to the Company.

                                       25
<PAGE>

            Section 5.04. Proceedings by Securityholders.

            No holder of any Debt Security shall have any right to institute any
suit, action or proceeding for any remedy hereunder, unless such holder
previously shall have given to the Trustee written notice of an Event of Default
with respect to the Debt Securities and unless the holders of not less than 25%
in aggregate principal amount of the Debt Securities then outstanding shall have
given the Trustee a written request to institute such action, suit or.
proceeding and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred thereby,
and the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity shall have failed to institute any such action, suit or proceeding;
provided, that no holder of Debt Securities shall have any right to prejudice
the rights of any other holder of Debt Securities, obtain priority or preference
over any other such holder or enforce any right under this Indenture except in
the manner herein provided - and for the equal, ratable and common benefit of
all holders of Debt Securities.

            Notwithstanding any other provisions in this Indenture, however, the
right of any holder of any Debt Security to receive payment of the principal of,
premium, if any, and interest such Debt Security when due, or to institute suit
for the enforcement of any such payment, shall not be impaired or affected
without the consent of such holder. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

            Section 5.05. Proceedings by Trustee.
                          -----------------------

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

            Section 5.06. Remedies Cumulative and Continuing.
                          -----------------------------------

            Except as otherwise provided in Section 2.06, all powers and
remedies .given by this Article V to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of
any other powers and remedies available to the Trustee or the holders of the
Debt Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to the Debt Securities, and no
delay or omission of the Trustee or of any holder of any of the Debt Securities
to exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or shall be
construed to be a waiver of any such default or an acquiescence therein; and,
subject to the provisions of Section 5.04, every power and remedy given by this
Article V or by law to the Trustee or to the Securityholders may be exercised
from time to time, and as often as shall be deemed expedient, by the Trustee or
by the- Securityholders.

                                       26
<PAGE>

            Section 5.07. Direction of Proceedings and Waiver of Defaults by
Majority of Securityholders.

            Trustee being advised by counsel determines that the action or
proceeding so directed may not lawfully be taken or if a Responsible Officer of
the Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability. Prior to any declaration accelerating
the maturity of the Debt Securities, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may on behalf of
the holders of all of the Debt Securities waive (or modify any previously
granted waiver of) any past default or Event of Default and its consequences,
except a default (a) in the payment of principal of, premium, if any, or
interest on arty of the Debt Securities; (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of the
holder of each Debt Security affected, or (c) in respect of the covenants
contained in Section 3.09; provided, however, that if the Debt Securities are
held by the Trust or a trustee of such trust, such waiver or modification to
such waiver shall not be effective until the holders of a majority in
liquidation- preference of the Trust Securities of the Trust shall have
consented to such waiver or modification to such waiver; provided, further, that
if the consent of the holder of each outstanding Debt Security is required, 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 Debt Securities shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon. Whenever any default or Event of Default
hereunder shall have been waived as permitted by this Section 5.07, said default
or Event of Default shall for all purposes of the Debt Securities and this
Indenture be deemed to have been cured and to be not continuing.

            Section 5.08. Notice of Defaults.
                          -------------------

            The Trustee shall, within 90 days after a Responsible Officer of the
Trustee shall have actual knowledge or received written notice of the occurrence
of a default with respect to the Debt Securities, mail to all Securityholders,
as the names and addresses of such holders appear upon the Debt .Security
Register, notice of all defaults with respect to the Debt Securities known to
the Trustee, unless such defaults shall have been cured before the giving of
such notice (the term "defaults" for the purpose of this Section 5.08 being
hereby defined to be the events specified in subsections (a), (b), (c), (d) and
(e) of Section 5.01, not including periods of grace, if any, provided for
therein); provided, that, except in the case of default in the payment of the
principal of, premium, if any, or interest on any of the Debt Securities, the
Trustee shall be protected in withholding such notice if and so long as a
Responsible Officer of the Trustee in good faith determines that the withholding
of such notice is in the interests of the Securityholders.

            Section 5.09. Undertaking to Pay Costs.
                          -------------------------

            All parties to this Indenture agree, and each holder of any Debt
Security 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 Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in such suit, having
due regard to the

                                       27
<PAGE>

merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 5.09 shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than 10% in principal amount of
the Debt Securities outstanding, or to any suit instituted by any Securityholder
for the enforcement of the payment of the principal of (or premium, if any) or
interest on any Debt Security against the Company on or after the same shall
have become due and payable.

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

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

            With respect to the holders of Debt Securities issued hereunder, the
Trustee, prior to the occurrence of an Event of Default with respect to the Debt
Securities and after the curing or waiving of all Events of Default which may
have occurred, with respect to the Debt Securities, undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default with respect to the Debt Securities has occurred (which
has not been cured or waived) the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill
in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

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

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

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

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

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

                                       28
<PAGE>

            (c) the Trustee- shall not be liable with respect to any action
taken or omitted to be taken by it in good faith, in accordance with the
direction of the Securityholders pursuant to Section 5.07, relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture; and

            (d) the Trustee shall not be charged with knowledge of any Default
or Event of Default with respect to the Debt Securities unless either (1) a
Responsible Officer shall have actual knowledge of such Default or Event of
Default or (2) written notice of such Default or Event of Default shall have
been given to the Trustee by the Company or any other obligor on the Debt
Securities or by any holder of the Debt Securities, except with respect to an
Event of Default pursuant to Sections 5.01 (a) or 5.01(b) hereof (other than an
Event of Default resulting from the default in the payment of Additional
Interest or premium, if any, if the Trustee does not have actual knowledge or
written notice that such payment is due and payable), of which the Trustee shall
be deemed to have knowledge.

            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_

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

            Except as otherwise provided in Section 6.01:

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

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

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

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

            (e) the Trustee shall not be liable for any action taken or omitted
by it in good faith and believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Indenture; nothing contained
herein shall, however, relieve the Trustee of the obligation, upon the
occurrence of an Event of Default with respect to the Debt Securities (that has
not been cured or waived) to exercise with respect to the Debt Securities such
of the rights and powers vested in it by this Indenture, and to use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of such person's own affairs;

                                       29
<PAGE>

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

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

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

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

            Section 6.04. Trustee, Authenticating Agent, Paying Agents, Transfer
Agents or Registrar May Own Debt Securities.

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

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

            Subject to the provisions of Section 12.04, all moneys received by
the Trustee or any paying agent shall, until used or applied as herein provided,
be held in trust for the purpose for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
and any paying agent shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.
So long as no Event of Default shall have occurred and be continuing, all
interest allowed on any such moneys, if any, shall be paid from time to time to
the Company upon the written order of the Company, signed by the Chairman of the
Board of Directors, the President, the Chief Operating Officer, a Vice
President, the Treasurer or an Assistant Treasurer of the Company.

                                       30
<PAGE>

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

            The Company covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, such compensation as shall be agreed
to in writing between the Company and the Trustee (which Shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust), and the Company will pay or reimburse the Trustee upon its written
request for all documented 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 reasonable
expenses and disbursements of its counsel and of all Persons not regularly in
its employ) except any such expense, disbursement or advance that arises from
its negligence or bad faith. The Company also covenants to indemnify each of the
Trustee (including in its individual capacity) and any predecessor Trustee (and
its officers, agents, directors and employees) for, and to hold it harmless
against, any and all loss, damage, claim, liability or expense including taxes
(other than taxes based on the income of the Trustee), except to the extent such
loss, damage, claim, liability or expense results from the negligence or bad
faith of such indemnitee, arising out of or in connection with the acceptance or
administration of this Trust, including the costs and expenses of defending
itself against any claim or liability in the premises. The obligations of the
Company under this Section 6.06 to compensate and indemnify the Trustee and to
pay or reimburse the Trustee for documented expenses, disbursements and advances
shall constitute additional indebtedness hereunder. Such additional indebtedness
shall be secured by a lien prior to that of the Debt Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the benefit of the holders of particular Debt Securities.

            Without prejudice to any other rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified inn subsections (d), (e) or (f) of
Section 5.01, the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable federal or state bankruptcy,
insolvency or other similar law.

            The provisions of this Section shall survive the resignation or
removal of the Trustee and the defeasance or other termination of this
Indenture.

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

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

            Section 6.08. Eligibility of Trustee.
                          -----------------------

            The Trustee hereunder shall at all times be a U.S. Person that is a
banking corporation or national association organized and doing business under
the laws of the United States of America or any state thereof or of the District
of Columbia and authorized under such laws to exercise corporate trust

                                       31
<PAGE>

powers, having a combined capital and surplus of at least fifty million U.S.
dollars ($50,000,000) and subject to supervision or examination by federal,
state, or District of Columbia authority. If such corporation or national
association publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 6.08 the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital
and surplus as set forth in its most recent records 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, notwithstanding that such corporation or national association shall be
otherwise eligible and qualified under this Article.

            In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.08, the Trustee shall resign
immediately in the manner and with the effect specified in Section 6.09.

            If the  Trustee  has or shall  acquire  any  "conflicting  interest"
within the meaning of ss. 310(b) of the Trust  Indenture  Act, the Trustee shall
either  eliminate  such  interest  or  resign,  to the  extent and in the manner
provided by, and subject to this Indenture.

            Section 6.09. Resignation or Removal of Trustee.
                          ----------------------------------

            (a) The Trustee, or any trustee or trustees hereafter appointed, may
at any time resign by giving written notice of such resignation to the Company
and by mailing notice thereof, at the Company's expense, to the holders of the
Debt Securities at their addresses as they shall appear on the Debt Security
Register. Upon receiving such notice of resignation, the - Company shall
promptly appoint a successor trustee or trustees~by written instrument, in
duplicate, executed by order of its Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor Trustee. If no successor Trustee shall have been so appointed and have
accepted appointment within 30 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor Trustee,
or any Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, subject to the provisions of Section
5.09, 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 of the following shall occur -

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

                  (2) the Trustee shall cease to be eligible in accordance with
            the provisions of Section 6.08 and shall fail to resign after
            written request therefor by the Company or by any such
            Securityholder, or

                  (3) the Trustee shall become incapable of acting, or shall be
            adjudged bankrupt or insolvent, or a receiver of the Trustee or of
            its property shall be appointed, or

                                       32
<PAGE>

            any public officer shall take charge or control of the Trustee or of
            its property or affairs for the purpose of rehabilitation,
            conservation or liquidation, then, in any such case, the Company may
            remove the Trustee and appoint a successor Trustee_ by written
            instrument, in duplicate, executed by order of the Board of
            Directors, one copy of which instrument shall be delivered to the
            Trustee so removed and one copy to the successor Trustee, or,
            subject to the provisions of Section 5.09, if no successor Trustee
            shall have been so appointed and have accepted appointment within 30
            days of the occurrence of any of (1),(2) or (3) above, any
            Securityholder who has been a bona fide holder of a Debt Security or
            Debt Securities for at least six months may, on behalf of himself or
            herself and all others similarly situated, petition any court of
            competent jurisdiction for the removal of the Trustee and the
            appointment of a successor Trustee. Such court may thereupon, after
            such notice, if any, as it may deem proper and prescribe, remove the
            Trustee and appoint a successor Trustee.

            (c) Upon prior written notice to the Company and the Trustee, the
holders of a majority in aggregate principal amount of the Debt Securities at
the time outstanding may at any time remove the Trustee and nominate a successor
Trustee, which shall be deemed appointed as successor Trustee unless within ten
Business Days after such nomination the Company objects thereto, in which case
or in the case of a failure by such holders to nominate a successor Trustee, the
Trustee so removed or any Securityholder, upon the terms and conditions and
otherwise as in subsection (a) of this Section 6.09 provided, may petition any
court of competent jurisdiction for an appointment of a successor.

            (d) Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 6.09 shall
become effective upon acceptance of appointment by the successor Trustee as
provided in Section 6.10.

            Section 6.10. Acceptance by Successor Trustee.
                          --------------------------------

            Any successor Trustee appointed as provided in Section 6.09 shall
execute, acknowledge and deliver to the Company and to its predecessor Trustee
an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, duties and obligations with respect to the
Debt Securities of its predecessor hereunder, with like effect as if originally
named as Trustee herein; but, nevertheless, on the written request of the
Company or of the successor Trustee, the Trustee ceasing to act shall, upon
payment of the amounts then due it pursuant to the provisions of Section 6.06,
execute and deliver an instrument transferring to such successor Trustee all the
rights and powers of the Trustee so ceasing to act and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder. Upon request of any such successor Trustee, the
Company shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor Trustee all such rights
and powers. Any Trustee ceasing to act shall, nevertheless, retain a lien upon
all property or funds held or collected by such Trustee to secure any amounts
then due it pursuant to the provisions of Section 6.06.

            If a successor Trustee is appointed, the Company, the retiring
Trustee and the successor Trustee --hall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the

                                       33
<PAGE>

retiring Trustee with respect to the Debt Securities as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee,
and shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the Trust hereunder
by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be Trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee.

            No successor Trustee shall accept appointment as provided in this
Section 6.10 unless at the time of such acceptance such successor Trustee shall
be eligible under the provisions of Section 6.08. In no event shall a retiring
Trustee be liable for the acts or omissions of any successor Trustee hereunder.

            Upon acceptance of appointment by a successor Trustee as provided in
this Section 6.10, the Company shall mail notice of the succession of such
Trustee hereunder to the holders of Debt Securities at their addresses as they
shall appear on the Debt Security Register. If the Company fails to mail such
notice within ten Business Days after the acceptance of appointment by the
successor Trustee, the successor Trustee shall cause such notice to be mailed at
the expense of the Company.

            Section 6.11. Succession by Merger, etc.
                          --------------------------

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

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

            Section 6.12. Authenticating Agents.
                          ----------------------

            There may be one or more Authenticating Agents appointed by the
Trustee upon the request of the Company with power to act on its behalf and
subject to its direction in the authentication and delivery of Debt Securities
issued upon exchange or registration of transfer thereof as fully to all intents
and purposes as though any such Authenticating Agent had been expressly
authorized to authenticate and deliver Debt Securities; provided that the
Trustee shall have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities. Any such Authenticating Agent shall at all times be a banking
corporation or a national

                                       34
<PAGE>

association organized and doing business under the laws of the United States or
of any state or territory thereof or of the District of Columbia authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of at least $50,000,000 and being subject to supervision or examination
by federal, state, territorial or District of Columbia authority. If such
banking corporation or national association publishes reports of condition at
least annually pursuant to law or the requirements of such authority, then for
the purposes of this Section 6.12 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.

            Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, if such successor corporation is
otherwise eligible under this Section 6.12 without the execution or filing of
any paper or any further act on the part of the parties hereto or such
Authenticating Agent.

            Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any Authenticating Agent with respect to the Debt
Securities by giving written notice of termination to such Authenticating Agent
and to the Company. Upon receiving such a notice of resignation or upon such a
termination, or in -case at any time any Authenticating Agent shall cease to be
eligible under this Section 6.12, the Trustee may, and upon the request of the
Company shall, promptly appoint a successor Authenticating Agent eligible under
this Section 6.12, shall give written notice of such appointment to the Company
and shall mail notice of such appointment to all holders of Debt Securities as
the names and addresses of such holders appear on the Debt Security Register.
Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all rights, powers, duties and responsibilities with
respect to the Debt Securities of its predecessor hereunder, with like a effect
as if originally named as Authenticating Agent herein.

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

                                  ARTICLE VII

                         CONCERNING THE SECURTTYHOLDERS

            Section 7.01. Action by Securityholders.
                          --------------------------

            Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Debt Securities may
take any action (including the making of any demand or request, the giving of
any notice, consent or waiver or the taking of any other action), the fact that
at the time of taking any such action the holders of such specified percentage
have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by such

                                       35
<PAGE>

Securityholders in person or by agent or proxy appointed in writing, or (b) by
the record of such holders of Debt Securities voting in favor thereof at any
meeting of such Securityholders duly called and held in accordance with the
provisions of Article VIII, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of such Securityholders or (d)
by any other method the Trustee deems satisfactory.

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

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

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

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

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

            Prior to due presentment for registration of transfer of any Debt
Security, the Company, the Trustee, any Authenticating Agent, any paying agent,
any transfer agent and any Debt Security registrar may deem the Person in whose
name such Debt Security shall be registered upon the Debt Security Register to
be, and may treat such Person as, the absolute owner of such Debt Security
(whether or not such Debt Security shall be overdue) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
interest on such Debt Security and for all other purposes; and neither the
Company nor the Trustee nor any Authenticating Agent nor any paying agent nor
any transfer agent nor any Debt Security registrar shall be affected by any
notice to the contrary. All such payments so made to any holder for the time
being or upon such holder's order shall be valid, and, to the extent of the sum
- or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Debt Security.

                                       36
<PAGE>

            Section 7.04. Debt Securities Owned by Company Deemed Not
Outstanding.

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

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

            At any time prior to (but not after) the evidencing to the Trustee,
as provided in Section 7.01, of the taking of any action by the holders of the
percentage in aggregate principal amount of the Debt Securities specified in
this Indenture in connection with such action, any holder (in cases where no
record date has been set pursuant to Section 7.01) or any holder as of an
applicable record date (in cases where a record date has been set pursuant to
Section 7.01) of a Debt Security (or any Debt Security issued in whole or in
part in exchange or substitution therefor) the serial number of which is shown
by the evidence to be included in the Debt Securities the holders of which have
consented to such action may, by filing written notice with the Trustee at the
Principal Office of the Trustee and upon proof of holding as provided in Section
7.02, revoke such action so far as concerns such Debt Security (or so far as
concerns the principal amount represented by any exchanged or substituted Debt
Security). Except as aforesaid any such action taken by the holder of any Debt
Security shall be conclusive and binding upon such holder and upon all future
holders and owners of such Debt Security, and of any Debt Security issued in
exchange or substitution therefor or on registration of transfer thereof,
irrespective of whether or not any notation in regard thereto is made upon such
Debt Security or any Debt Security issued in exchange or substitution therefor.

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

            Section 8.01. Purposes of Meetings.
                          ---------------------

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

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

                                       37
<PAGE>

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

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

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

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

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

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

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

            Section 8.04. Qualifications for Voting.
                          --------------------------

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

            Section 8.05. Regulations.
                          ------------

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

                                       38
<PAGE>

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

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

            Section 8.06. Voting.
                          -------

            The vote upon any resolution submitted to any meeting of holders of
Debt Securities with respect to which such meeting is being held shall be by
written ballots on which shall be subscribed the signatures of such holders or
of their representatives by proxy and the serial number or numbers of the Debt
Securities held or represented by them. The permanent chairman of the meeting
shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Securityholders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more Persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 8.02. The record
shall show the serial numbers of the Debt Securities voting in favor of or
against any resolution. The record shall be signed and verified by the
affidavits of the permanent chairman-and secretary of the meeting and one of the
duplicates shall be delivered to the Company and the other to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting.

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

            Section 8.07. Quorum, Actions.
                          ----------------

            The Persons entitled to vote a majority in outstanding principal
amount of the Debt Securities shall constitute a quorum for a meeting of
Securityholders; provided, however, that if any action is to be taken at such
meeting with respect to a consent, waiver, request, demand, notice,
authorization, direction or other action which may be given by the holders of
not less than a specified percentage in outstanding principal amount of the Debt
Securities, the Persons holding or representing such specified percentage in
outstanding principal amount of the Debt Securities will constitute a .quorum.
In the absence of a quorum within 30 minutes of the time appointed for any such
meeting, the meeting shall, if

                                       39
<PAGE>

convened at the request of Securityholders, be dissolved. In any other case the
meeting may be adjourned for a period of not less than 10 days as determined by
the permanent chairman of the meeting prior to the adjournment of such meeting.
In the absence of a quorum at any such adjourned meeting, such adjourned meeting
maybe further adjourned for a period of not less than 10 days as determined by
the permanent chairman of the meeting prior to the adjournment of such adjourned
meeting. Notice of the reconvening of any adjourned meeting shall be given as
provided in Section 8.02, except that such notice need be given only once not
less than five days prior to the date on which the meeting is scheduled to be
reconvened. Notice of the reconvening of an adjourned meeting shall state
expressly the percentage, as provided above, of the outstanding principal amount
of the Debt Securities which shall constitute a quorum.

            Except as limited by the proviso in the first paragraph of Section
9.02, any resolution presented to a meeting or adjourned meeting duly reconvened
at which a quorum is present as aforesaid may be adopted by the affirmative vote
of the holders of not less than a majority in outstanding principal amount of
the Debt Securities; provided, however, that, except as limited by the proviso
in the first paragraph of Section 9.02, any resolution with respect to any
consent, waiver, request, demand, notice, authorization, direction or other
action that this Indenture expressly provides may be given by the holders of not
less than a specified percentage in outstanding principal amount of the Debt
Securities may be adopted at a meeting or an adjourned meeting duly reconvened
and at which a quorum is present as aforesaid only by the affirmative vote of
the holders of not less than such specified percentage in outstanding principal
amount of the Debt Securities.

            Any resolution passed or decision taken at any meeting of holders of
Debt Securities duly held in accordance with this Section shall be binding on
all the Securityholders, whether or not present or represented at the meeting.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

            Section 9.01. Supplemental Indentures without Consent of
Securityholders.

            The Company, when authorized by a Board Resolution, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto, without the consent of the Securityholders, for one or more
of the following purposes:

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

            (b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the holders of Debt Securities
as the Board of Directors shall consider to be for the protection of the holders
of such Debt Securities, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions or
conditions a default or an Event of Default permitting the enforcement of all or
any of the several remedies provided in this Indenture as herein set forth;
provided, however that in respect of any such additional covenant, restriction
or condition such supplemental indenture may provide for a particular period of
grace after

                                       40
<PAGE>

default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such default or
may limit the remedies available to the Trustee upon such default;

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

            (d) to add to, delete from, or revise the terms of Debt Securities,
including, without limitation, any terms relating to the issuance, exchange,
registration or transfer of Debt Securities, including to provide for transfer
procedures and restrictions substantially similar to those applicable to the
Capital Securities, as required by Section 2.05 (for purposes of assuring that
no registration of Debt Securities is required under the Securities Act of 1933,
as amended); provided, that any such action shall not adversely affect the
interests of the holders of the Debt Securities then outstanding (it being
understood, for purposes of this proviso, that transfer restrictions on Debt
Securities substantially similar to those applicable to Capital Securities shall
not be deemed to adversely affect the holders of the Debt Securities);

            (e) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Debt Securities and to add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 6.10;

            (f) to make any change (other than as elsewhere provided in this
paragraph) that does not adversely affect the rights of any Securityholder in
any material respect; or

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

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

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

            Section 9.02. Supplemental Indentures with Consent of
Securityholders.

            With the consent (evidenced as provided in Section 7.01) of the
holders of not less than a majority in aggregate principal amount of the Debt
Securities at the time outstanding affected by such supplemental indenture
(voting as a class), the Company, when authorized by a Board Resolution, and the
Trustee may from time to time and at any time enter into an indenture or
indentures supplemental

                                       41
<PAGE>

hereto (which shall conform to the provisions of the Trust Indenture Act, then
in effect, applicable to indentures qualified thereunder) for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of thus Indenture or of any supplemental indenture or of modifying in
any manner the rights of the holders of the Debt Securities; provided, however,
that no such supplemental indenture shall without such consent of the holders of
each Debt Security then outstanding and affected thereby (i) extend the fixed
maturity of any Debt Security, or reduce the principal amount thereof or any
premium thereon, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on redemption thereof or make the
principal thereof or any interest or premium thereon payable in any coin or
currency other than that provided in the Debt Securities, or impair or affect
the right of any Securityholder to institute suit for payment thereof or impair
the right of repayment, if any, at the option of the holder, or (ii) reduce the
aforesaid percentage of Debt Securities the holders of which are required to
consent to any such supplemental indenture; and provided, further, that if the
Debt Securities are held by the Trust or a trustee of such trust, such
supplemental indenture shall not be effective until the holders of a majority in
liquidation preference of the Trust Securities shall have consented to such
supplemental indenture; provided, further, that if the consent of the
Securityholder of each outstanding Debt Security is required, such supplemental
indenture shall not be effective until each holder of the Trust Securities shall
have consented to such supplemental indenture.

            Upon the request of the Company accompanied by a Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

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

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

            Section 9.03. Effect of Supplemental Indentures.
                          ----------------------------------

            Upon the execution of any supplemental indenture pursuant to the
provisions of this Article IX, this Indenture shall be and 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 Debt Securities 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.

                                       42
<PAGE>

            Section 9.04. Notation on Debt Securities.
                          ----------------------------

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

            Section 9.05. Evidence of Compliance of Supplemental Indenture to be
Furnished to Trustee.

            The Trustee, subject to the provisions of Sections 6_01 and 6.02,
shall, in addition to the documents required by Section 14_06, receive an
Officers' Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article IX. The Trustee shall receive an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article IX is authorized or permitted by, and conforms to, the terms of this
Article IX and that it is proper for the Trustee under the provisions of this
Article IX to join in the execution thereof.

                                   ARTICLE X

                            REDEMPTION OF SECURITIES

            Section 10.01. Optional Redemption.
                           --------------------

            At any time the Company shall have the right, subject to the receipt
by the Company of prior approval from the Federal Reserve, if then required
under applicable capital guidelines or policies of the Federal Reserve, to
redeem the Debt Securities, in whole or in part, on any January 23, April 23,
July 23 and October 23 on or after July 23, 2009 (the "Redemption Date"), at the
Redemption Price.

            Section 10.02. Special Event Redemption.
                           -------------------------

            If a Special Event shall occur and be continuing, the Company shall
have the right, subject to the receipt by the Company of prior approval from the
Federal Reserve if then required under applicable capital guidelines or policies
of the Federal Reserve, to redeem the Debt Securities, in whole but not in part,
at any time within 90 days following the occurrence of such Special Event (the
"Special Redemption Date"), at the Special Redemption Price.

            Section 10.03. Notice of Redemption; Selection of Debt Securities.
                           ---------------------------------------------------

            In case the Company shall desire to exercise the right to redeem
all, or, as the case may be, any part of the Debt Securities, it shall fix a
date for redemption and shall mail a notice of such redemption at least 30 and
not more than 60 days prior to the date fixed for redemption to the holders of
Debt Securities so to be redeemed as a whole or in part at their last addresses
as the same appear on the Debt Security Register. Such mailing shall be by first
class mail. The notice if mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the holder

                                       43
<PAGE>

receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the holder of any Debt Security designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Debt Security.

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

            Prior to 10:00 a.m. New York City time on the Redemption Date or the
Special Redemption Date specified in the notice of redemption given as provided
in this Section, the Company will deposit with the Trustee or with one or more
paying agents an amount of money sufficient to redeem on the redemption date all
the Debt Securities so called for redemption at the appropriate redemption
price, together with accrued interest to the date fixed for redemption.

            The Company will give the Trustee notice not less than 45 nor more
than 60 days prior to the redemption date as to the redemption price at which
the Debt Securities are to be redeemed and the aggregate principal amount of
Debt Securities to be redeemed and the Trustee shall select, in such manner as
in its sole discretion it shall deem appropriate and fair, the Debt Securities
or portions thereof (in integral multiples of $1,000) to be redeemed.

            Section 10.04. Payment of Debt Securities Called for Redemption.
                           -------------------------------------------------

            If notice of redemption has been given as provided in Section 10.03,
the Debt Securities or portions of Debt Securities with respect to which such
notice has been given shall become due and payable on the Redemption Date or the
Special Redemption Date (as the case may be) and at the place or places stated
in such notice at the applicable redemption price, together with interest
accrued to the date fixed for redemption, and on and after said Redemption Date
or the Special Redemption Date (unless the Company shall default in the payment
of such Debt Securities at the redemption price, together with interest accrued
to said date) interest on the Debt Securities or portions of Debt Securities so
called for redemption shall cease to accrue. On presentation and surrender of
such Debt Securities at a place of payment specified in said notice, such Debt
Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price, together with interest accrued
thereon to the Redemption Date or the Special Redemption Date (as the case may
be). Upon presentation of any Debt Security redeemed in part only, the Company
shall execute and the Trustee shall authenticate and make available for delivery
to the holder thereof, at the expense of the Company, a new Debt Security or
Debt Securities of authorized denominations in principal amount equal to the
unredeemed portion of the Debt Security so presented.

                                       44
<PAGE>

                                   ARTICLE XI

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

            Section 11.01. Company May Consolidate, etc., on Certain Terms.
                           ------------------------------------------------

            Nothing contained in this Indenture or in the Debt Securities shall
prevent any consolidation or merger of the Company with or into any other
corporation or corporations (whether or not affiliated with the Company) or
successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance,
transfer or other disposition o f the property or capital stock of the Company
or its successor or successors as an entirety, or substantially as an entirety,
to any other corporation (whether or not affiliated with the Company, or its
successor or successors) authorized to acquire and operate the same; provided,
however, that the Company hereby covenants and agrees that, upon any such
consolidation, merger (where the Company is not the surviving corporation),
sale, conveyance, transfer or other disposition, the due and punctual payment of
all payments due on all of the Debt Securities in accordance with their terms,
according to their tenor, and the due and punctual performance and observance of
all the covenants and conditions of this Indenture to be kept or performed by
the Company, shall be expressly assumed by supplemental indenture reasonably
satisfactory in form to the Trustee executed and delivered to the Trustee by the
entity formed by such consolidation, or into which the Company shall have been
merged, or by the entity which shall have acquired such property or capital
stock.

            Section 11.02. Successor Entity to be Substituted.
                           -----------------------------------

            In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition contemplated in Section 11.01 and upon the
assumption by the successor entity, by supplemental indenture, executed and
delivered to the Trustee and reasonably satisfactory in form to the Trustee, of
the due and punctual payment of the principal of and premium, if any, and
interest on all of the Debt Securities and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be
performed or observed by the Company, such successor entity shall succeed to and
be substituted for the Company, with the same effect as if it had been named
herein as the Company, and thereupon the predecessor entity shall be relieved of
any further liability or obligation hereunder or upon the Debt Securities. Such
successor entity thereupon may cause to be signed, and may issue either in its
own name or in the name of the Company, any or all of the Debt Securities
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee or the Authenticating Agent; and, upon the order of
such successor entity instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee or the
Authenticating Agent shall authenticate and deliver any Debt Securities which
previously shall have been signed and delivered by the officers of the Company,
to the Trustee or the Authenticating Agent for authentication, and any Debt
Securities which such successor entity thereafter shall cause to be signed and
delivered to the Trustee or the Authenticating Agent for that purpose. All the
Debt Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Debt Securities theretofore or thereafter
issued in accordance with the terms of this Indenture as though all of such Debt
Securities had been issued at the date of the execution hereof.

            Section 11.03. Opinion of Counsel to be Given to Trustee.
                           ------------------------------------------

            The Trustee, subject to the provisions of Sections 6.01 and 6.02,
shall receive, in addition to the Opinion of Counsel required by Section 9.05,
an Opinion of Counsel as conclusive evidence that any

                                       45
<PAGE>

consolidation, merger, sale, conveyance, transfer or other disposition, and any
assumption, permitted or required by the terms of this Article XI complies with
the provisions of this Article XI.

                                  ARTICLE XII

                     SATISFACTION AND DISCHARGE OF INDENTURE

            Section 12.01. Discharge of Indenture.
                           -----------------------

            When (a) the Company shall deliver to the Trustee for cancellation
all Debt Securities theretofore authenticated (other than any Debt Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.06) and not theretofore canceled, or
(b) all the Debt Securities not theretofore canceled or delivered to the Trustee
for cancellation shall have become due and payable, or are by their. terms to
become due and payable within one year or are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption, and the Company shall deposit with the Trustee, in trust, funds,
which shall be immediately due and payable, sufficient to pay at maturity or
upon redemption all of the Debt Securities (other than any Debt Securities which
shall have been destroyed, lost or stolen and which shall have been replaced or
paid as provided in Section 2.06) not theretofore canceled or delivered to the
Trustee for cancellation, including principal and premium, if any, and interest
due or to become due to such date of maturity or redemption date, as the case
may be, but excluding, however, the amount of any moneys for the payment of
principal of, and premium, if any, or interest on the Debt Securities (1)
theretofore repaid to the Company in accordance with the provisions of Section
12.04, or (2) paid to any state or to the District of Columbia pursuant to its
unclaimed property or similar laws, and if in the case of either clause (a) or
clause (b) the Company shall also pay or cause to be paid all other sums payable
hereunder by the Company, then this Indenture shalll cease to be of further
effect except for the provisions of Sections 2.05, 2.06, 3.01, 3.02, 3.04, 6.06,
6.09 and 12.04 hereof, which shall survive until such Debt Securities shall
mature or are redeemed, as the case may be, and are paid. Thereafter, Sections
6.06, 6.09 and 12.04 shall survive, and the Trustee, on demand of the Company
accompanied by an Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with, and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture, the Company, however, hereby
agreeing to reimburse the Trustee for any costs or expenses thereafter
reasonably and properly incurred by the Trustee in connection with this
Indenture or the Debt Securities.

            Section 12.02. Deposited Moneys to be Held in Trust by Trustee.
                           ------------------------------------------------

            Subject to the provisions of Section 12.04, all moneys deposited
with the Trustee pursuant to Section 12.01 shall be held in trust and applied by
it to the payment, either directly or through any paying agent (including the
Company if acting as its own paying agent), to the holders of the particular
Debt Securities for the payment of which such moneys have been deposited with
the Trustee, of all sums due and to become due thereon for principal, and
premium, if any, and interest.

                                       46
<PAGE>

            Section 12.03. Paying Agent to Repay Moneys Held.
                           ----------------------------------

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

            Section 12.04. Return of Unclaimed Moneys.
                           ---------------------------

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

                                  ARTICLE XIII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

            Section 13.01. Indenture and Debt Securities Solely Corporate
Obligations.

            No recourse for the payment of the principal of or premium, if any,
or interest on any Debt Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture . or in any supplemental indenture,
or in any such Debt Security, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
officer, director, employee or agent, as such, past, present or future, of the
Company or of any predecessor or successor corporation of the Company, either
directly or through the Company or any successor corporation of the Company,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Debt Securities.

                                  ARTICLE XIV

                            MISCELLANEOUS PROVISIONS

            Section 14.01. Successors.
                           -----------

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

            Section 14.02. Official Acts by Successor Entity.
                           ----------------------------------

            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

                                       47
<PAGE>

performed with like force and effect by the like board, committee, officer or
other authorized Person of any entity that shall at the time be the lawful
successor of the Company.

            Section 14.03. Surrender of Company Powers.
                           ----------------------------

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

            Section 14.04. Addresses for Notices, etc.
                           ---------------------------

            Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the
Securityholders on the Company may be given or served in writing by being
deposited postage prepaid by registered or certified mail in a post office
letter box addressed (until another address is filed by the Company with the
Trustee for such purpose) to the Company at:

            950 48th Avenue North, Suite 203
            Myrtle Beach, South Carolina 29577
            Attention: John J. Moran

      Any notice, direction, request or demand by any Securityholder or the
Company to or upon the Trustee shall be deemed to have been sufficiently given
or made, for all purposes, if given or made in writing at the office of
Wilmington Trust Company at

            Rodney Square North
            1100 North Market Street Wilmington, Delaware 19890
            Attention: Corporate Trust Administration

            Section 14.05. Governing Law.
                           --------------

            This Indenture and each Debt Security shall be deemed to be a
contract made under the law of the State of New York, and for all purposes shall
be governed by and construed in accordance with the law of said State, without
regard to conflict of laws principles thereof

            Section 14.06. Evidence of Compliance with Conditions Precedent.
                           -------------------------------------------------

            Upon any application or demand by the Company to the Trustee to take
any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that in the opinion of
the signers all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with (except that no such Opinion of Counsel is
required to be furnished to the Trustee in connection with the authentication
and issuance of Debt Securities issued on the date of this Indenture).

            Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture (except certificates

                                       48
<PAGE>

delivered pursuant to Section 3.05) shall include (a) a statement that the
person making such certificate or opinion has read such covenant or condition;
(b) 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; (c) a statement that, in the opinion of such
person, he or she has made such examination or investigation as 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 (d) a statement as to whether
or not, in the opinion of such person, such condition or covenant has been
complied with.

            Section 14.07. Non-Business Days.
                           ------------------

            Notwithstanding anything to the contrary contained herein, if any
Interest Payment Date, other than the Maturity Date, any Redemption Date or the
Special Redemption Date, falls on a day that is not a Business Day, then any
interest payable will be paid on, and such Interest Payment Date will be moved
to, the next succeeding Business Day, and additional interest will accrue for
each day that such payment is delayed as a result thereof. If the Maturity Date,
any Redemption Date or the Special Redemption Date falls on a day that is not a
Business Day, then the principal, premium, if any, and/or interest payable on
such date will be paid on the next succeeding Business Day, and no additional
interest will accrue in respect of such payment made on such next succeeding
Business Day.

            Section 14.08. Table of Contents, Headings, etc.
                           ---------------------------------

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

            Section 14.09. Execution in Counterparts.
                           --------------------------

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

            Section 14.10. Separability.
                           -------------

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

            Section 14.11. Assignment.
                           -----------

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

                                       49
<PAGE>

            Section 14.12. Acknowledgment of Rights.
                           -------------------------

            The Company acknowledges that, with respect to any Debt Securities
held by the Trust or the Institutional Trustee of the Trust, if the
Institutional Trustee of the Trust fails to enforce its rights under this
Indenture as the holder of Debt Securities held as the assets of the Trust after
the holders of a majority in Liquidation Amount of the Capital Securities of the
Trust have so directed in writing such Institutional Trustee, a holder of record
of such Capital Securities may to the fullest extent permitted by law institute
legal proceedings directly against the Company to enforce such Institutional
Trustee's rights under this Indenture without first instituting any legal
proceedings against such Institutional Trustee' or any other Person.
Notwithstanding the foregoing, if an Event of Default has occurred and is
continuing and such event is attributable to the failure of the Company to pay
interest (or premium, if any) or principal on the Debt Securities on the date
such interest (or premium, if any) or principal is otherwise due and payable (or
in the case of redemption, on the redemption date), the Company acknowledges
that a holder of record of Capital Securities of the Trust may directly
institute a proceeding against the Company for enforcement of payment to such
holder directly of the principal of (or premium, if any) or interest on the Debt
Securities having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Capital Securities of such holder on or after the
respective due date specified in the Debt Securities.

                                   ARTICLE XV

                        SUBORDINATION OF DEBT SECURITIES

            Section 15.01. Agreement to Subordinate.
                           -------------------------

            The Company covenants and agrees, and each holder of Debt Securities
issued hereunder and under any supplemental indenture (the "Additional
Provisions") by such Securityholder's acceptance thereof likewise covenants and
agrees, that all Debt Securities shall be issued subject to the provisions of
this Article XV; and each holder of a Debt Security, whether upon original issue
or upon transfer or assignment thereof, accepts and agrees to be bound by such
provisions.

            The payment by the Company of the payments due on all Debt
Securities issued hereunder and under any Additional Provisions shall, to the
extent and in the manner hereinafter set forth, be subordinated and junior in
right of payment to the prior payment in full of all Senior Indebtedness of the
Company, whether outstanding at the date of this Indenture or thereafter
incurred.

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

            Section 15.02. Default on Senior Indebtedness.
                           -------------------------------

            In the event and during the continuation of any default by the
Company in the payment of principal, premium, interest or any other payment due
on any Senior Indebtedness of the Company following any applicable grace period,
or in the event that the maturity of any Senior Indebtedness of the Company has
been accelerated because of a default, and such acceleration has not been
rescinded or canceled and such Senior Indebtedness has not been paid in full
then, in either case, no payment shall be-made by the Company with respect to
the payments due on the Debt Securities.

                                       50
<PAGE>

            In the event that, notwithstanding the foregoing, any payment shall
be received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 15.02, such payment shall, subject to Section 15.06,
be held in tryst for the benefit of, and shall be paid over or delivered to, the
holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Senior
Indebtedness may have been issued, as their respective interests may appear, but
only to the extent that the holders of the Senior Indebtedness (or their
representative or representatives or a trustee) notify the Trustee in writing
within 90 days of such payment of the amounts then due and owing on the Senior
Indebtedness and only the amounts specified in such notice to the Trustee shall
be paid to the holders of Senior Indebtedness.

            Section 15.03. Liquidation; Dissolution; Banlauptcy.
                           -------------------------------------

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

            In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee before all Senior Indebtedness of the Company 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 of the
Company remaining unpaid to the extent necessary to pay such Senior Indebtedness
in full in money in accordance with its teems, after giving effect to any
concurrent payment or distribution to or for the benefit of the holders of such
Senior Indebtedness.

            For purposes of this Article XV, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment

                                       51
<PAGE>

of which is subordinated at least to the extent provided in this Article XV with
respect to the Debt Securities to the payment of all Senior Indebtedness of the
Company, that may at the time be outstanding, provided, that (a) such Senior
Indebtedness is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (b) 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 XI of this Indenture shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes
of this Section 15.03 if such other corporation shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions stated
in Article XI of this Indenture. Nothing in Section 15.02 or in this Section
15.03 shall apply to claims of; or payments to, the Trustee under or pursuant to
Section 6.06 of this Indenture.

            Section 15.04. Subrogation.
                           ------------

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

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

            Upon any payment or distribution of assets of the Company referred
to in this Article XV, the Trustee, subject to the provisions of Article VI of
this Indenture, and the Securityholders shall be entitled to conclusively rely
upon any order or decree made by any court of competent jurisdiction in which
such dissolution, winding up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidation
trustee, agent or other Person making such payment or

                                       52
<PAGE>

distribution, delivered to the Trustee or to the Securityholders, for the
purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article XV.

            Section 15.05. Trustee to Effectuate Subordination.
                           ------------------------------------

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

            Section 15.06. Notice by the Company.
                           ----------------------

            The Company shall give prompt written notice to a Responsible
Officer of the Trustee at the Principal Office of the Trustee of any fact known
to the Company that would prohibit the making of any payment of moneys to or by
the Trustee in respect of the Debt Securities pursuant to the provisions of this
Article XV. Notwithstanding the provisions of this Article XV or any other
provision of this Indenture or any Additional Provisions, the Trustee shall not
be charged with knowledge of the existence of any facts that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article XV, unless and until a
Responsible Officer of the Trustee at the Principal Office 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; and before the receipt of any
such written notice, the Trustee, subject to the provisions of Article VI of
this Indenture, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the notice
provided for in this Section 15.06 at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (or premium, if
any) or interest on any Debt Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purposes for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

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

                                       53
<PAGE>

            Section 15.07. Rights of the Trustee; Holders of Senior
Indebtedness.

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

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

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

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

            No right of any present or future holder of any Senior Indebtedness
of the Company to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to at 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.

            Without in any way limiting the generality of the foregoing
paragraph, the holders of Senior Indebtedness of the Company may, at any time
and from time to time, without the consent of or notice to the Trustee or the
Securityholders, without incurring responsibility to the Securityholders and
without impairing or releasing the subordination provided in this Article XV or
the obligations hereunder of the holders of the Debt Securities to the holders
of such Senior Indebtedness, do any one or more of the following: (a) 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; (b) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
such Senior Indebtedness; (c) release any Person liable in any manner for the
collection of such Senior Indebtedness; and (d) exercise or refrain from
exercising any rights against the Company, and any other Person.

            Wilmington Trust Company, in its capacity as Trustee, hereby accepts
the trusts in this Indenture declared and provided, upon the terms and
conditions herein above set forth.

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

                                       54
<PAGE>

                                        By
                                        Name: Greg L. Lee
                                        Title: Chairman and Chief Executive
                                               Officer

                                        WILMINGTON TRUST COMPANY, as Trustee

                                        By
                                        Name:
                                        Title:

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

                                        NEXITY FINANCIAL CORPORATION

                                        BY    __________________________________
                                        Name: Greg L. Lee
                                        Title: Chairman and Chief Executive
                                               Officer

                                        WILMINGTON TRUST COMPANY, as Trustee

                                        /s/ Denise M. Geran
                                        ----------------------------------
                                        Name: Denise M. Geran
                                        Title: Vice President

<PAGE>

                                                                       EXHIBIT A

        FORM OF FLOATING RATE JUNIOR SUBORDINATED DEBT SECURITY DUE 2034

                           [FORM OF FACE OF SECURITY1
                           --------------------------

            THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (TIC "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH. (a) (1), (2),(3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT,
OR FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
COMPANY'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES
(C) OR (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A
COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY
ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

            THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES,
REPRESENTS AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS
INVOLVING THIS SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE
SECURITIES ACT.

            THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, . INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975. OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
(EACH A "PLAN', OR AN ENTITY WHOSE UNDERLYING ASSETS

                                     A-1-1
<PAGE>

INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE' ENTITY AND NO
PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR
ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U. S. DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 96-23,95-60,91-38,90-1 OR 84-14 OR ANOTHER
APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT
PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO
SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF
SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (iii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

            IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

            THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A
PRINCIPAL AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO
BE. THE HOLDER OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO,
THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

            THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT
INSURANCE CORPORATION (THE "FDIC"). THIS OBLIGATION IS SUBORDINATED TO THE
CLAIMS OF DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE
COMPANY, IS INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS
SUBSIDIARIES AND IS NOT SECURED.

                                     A-1-2
<PAGE>

            Floating Rate Junior Subordinated Debt Security due 2034

                                       of

                          NEXITY FINANCIAL CORPORATION
                          ----------------------------

            Nexity Financial Corporation, a bank holding company incorporated in
Delaware (the "Company'), for value received promises to pay to Wilmington Trust
Company, not in its individual capacity but solely as Institutional Trustee for
Nexity Capital Trust II, a Delaware statutory trust (the `Molder"), or
registered assigns, the principal sum of _________ Dollars ($__________) on July
23, 2034 and to pay interest on said principal sum from May 27, 2004, 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 January 23, April 23, July 23 and
October 23 of each year commencing July 23, 2004, at a variable per annum rate
equal to LIBOR (as defined in the Indenture) plus 2.80% (the "interest Rate")
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 an annual rate equal to the Interest Rate in effect for each such
Extension Period compounded quarterly. The amount of interest payable on any
Interest Payment Date shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant interest period. Notwithstanding
anything to the contrary contained herein, if any Interest Payment Date, other
than the Maturity Date, any Redemption Date or the Special Redemption Date,
falls on a day that is not a Business Day, then any interest payable will be
paid on, and such Interest Payment Date will be moved to, the next succeeding
Business Day, and additional interest will accrue for each day that such payment
is delayed as a result thereof. If the Maturity Date, any Redemption Date or the
Special Redemption Date falls on a day that is not a Business Day, then the
principal, premium, if any, and/or interest payable on such date will be paid on
the next succeeding Business Day, and no additional interest will accrue in
respect of such payment made on such next succeeding Business Day. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name this Debt Security (or one or more Predecessor Securities, as
defined in said Indenture) is registered at the close of business on the regular
record date for such interest installment, except that interest and any Deferred
Interest payable on the Maturity Date shall be paid to the Person to whom
principal is paid. 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 Debt
Security (or one or more Predecessor Debt Securities) 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 Debt Securities not less than 10 days prior to such special
record date, all as more fully provided in the Indenture. The principal of and
interest on this Debt Security shall be payable at the office or agency of the
Trustee (or other paying agent appointed by the Company) 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
Debt Security Register or by wire transfer to an account appropriately
designated by the holder hereof. Notwithstanding the foregoing, so long as the
holder of this Debt Security is the Institutional Trustee, the payment of the
principal of and interest on Ibis Debt Security will be made in immediately
available funds at such place and to such account as may be designated by the
Trustee.

                                     A-1-3
<PAGE>

            So long as no Event of Default has occurred and is continuing, the
Company shall have the right, from time to time and without causing an Event of
Default, to defer payments of interest on the Debt Securities by extending the
interest payment period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to 20 consecutive quarterly
periods (each such extended interest payment period, an "Extension Period"),
during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period,
interest will continue to accrue on the Debt Securities; and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as "Deferred Interest") will accrue, at the Interest Rate, compounded quarterly
from the date such Deferred Interest would have been payable were it not for the
Extension Period, both to the extent permitted by law. No Extension Period may
end on a date other than an Interest Payment Date. At the end of any such
Extension Period the Company shall pay all Deferred Interest then accrued and
unpaid on the Debt Securities; provide however, that no Extension Period may
extend beyond the Maturity Date, Redemption Date or Special Redemption Date and
provided, further. however, during any such Extension Period, the Company may
not (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire, or make a liquidation payment with respect to, any of the Company's
capital stock or (ii) make any payment on or repay, repurchase or redeem any
debt securities of the Company that rank pari passu in all respects with or
junior in interest to the Debt Securities (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company (A)
in connection with any employment contract, benefit plan or other similar
arrangement with or for . the benefit of one or more employees, officers,
directors or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Company (or securities convertible into or exercisable for
such capital stock), as consideration in an acquisition transaction entered into
prior to the applicable . Extension Period, (b) as a result of any exchange or
conversion of any class or series of the Company's capital stock (or any capital
stock of a subsidiary of the Company) for any class or series of the Company's
capital stock or of any class or series of the Company's indebtedness for any
class or series of the Company's capital stock, (c) the purchase of fractional
interests in shares of the Company's capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being converted or
exchanged, (d) any declaration of a dividend in connection with any
stockholder's rights plan, or the issuance of rights, stock or other property
under any stockholder's rights plan, or the redemption or repurchase of rights
pursuant thereto, or (e) any dividend in the form of stock, warrants, options or
other rights where the dividend stock or the stock issuable upon exercise of
such-warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock). Prior
to the termination of any Extension Period, the Company may further extend such
period, provided, that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods, or extend beyond the Maturity Date. Upon the termination of any
Extension Period and upon the payment of all Deferred Interest, the Company may
commence a new Extension Period, subject to the foregoing requirements. No
interest or Deferred Interest shall be due and payable during an Extension
Period, except at the end thereof, but interest shall accrue upon each
installment of interest that would otherwise have been due and payable during
such Extension Period until such installment is paid. The Company must give the
Trustee notice of its election to begin such Extension Period at least one
Business Day prior to the earlier of (i) the next succeeding date on which
interest on the Debt Securities would have been payable except for the election
to begin such Extension Period or (ii) the date such interest is payable, but in
any event not later than the related regular record date_

            The indebtedness evidenced by this Debt Security is, to the extent
provided in the Indenture, subordinate and junior in right of payment to the
prior payment in full of all Senior

                                     A-1-4
<PAGE>

Indebtedness, and this Debt Security is issued subject to the provisions of the
Indenture with respect thereto. Each holder of this Debt Security, by accepting
the same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Trustee on such holder's behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination so
provided and (c) appoints the Trustee such holder's attorney-in-fact for any and
all such purposes_ Each holder hereof, by such holder's 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.

            The Company waives demand, presentment for payment, notice of
nonpayment, notice of protest, and all other notices.

            This Debt Security shall not be entitled to any benefit under the
Indenture hereinafter referred to and shall not 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 Debt Security 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.

            IN WITNESS WHEREOF, the Company has duly executed this certificate.

                                        NEXITY FINANCIAL CORPORATION

                                        By:_______________________________
                                           Name: Greg L. Lee
                                           Title: Chairman and Chief Executive
                                                  Officer

Dated:_______________, 2004

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Debt Securities referred to in the within mentioned
          Indenture.

                                        WILMINGTON TRUST COMPANY, not in its
                                        individual capacity but solely as the
                                        Trustee

                                        By:_________________________________
                                              Authorized Officer
Dated:____________, 2004

                                     A-1-5
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

            This Debt Security is one of a duly authorized series of Debt
Securities of the Company, all issued or to be issued pursuant to an Indenture
(the "Indenture"), dated as of May 27, 2004, duly executed and delivered between
the Company and Wilmington Trust Company, as Trustee (the "Trustee"), to which
Indenture and all indentures supplemental thereto 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 Debt
Securities (referred to herein as the `Debt Securities") of which this Debt
Security is a part. The summary of the terms of this Debt Security contained
herein does not purport to be complete and is qualified by reference to the
Indenture.

            Upon the occurrence and continuation of a Tax Event, an Investment
Company Event or a Capital Treatment Event, this Debt Security may become due
and payable, in whole but not in part, at any time, within 90 days following the
occurrence of such Tax Event, Investment Company Event or Capital Treatment
Event (the "Special Redemption Date"), as the case may be, at the Special
Redemption Price. The Company shall also have the right to redeem this Debt
Security at the option of the Company, in whole or in part, on any January 23,
April 23, July 23 and October 23 on or after July 23, 2009 (a "Redemption
Date"), at the Redemption Price.

            Any redemption pursuant to the preceding paragraph will be made,
subject to the receipt by the Company of prior approval from the Board of
Governors of the Federal Reserve System (the "Federal Reserve") if then required
under applicable capital guidelines or policies of the Federal Reserve, upon not
less than 30 days' nor more than 60 days' notice. If the Debt Securities are
only partially redeemed by the Company, the Debt Securities will be redeemed pro
rata or by lot or by any other method utilized by the Trustee.

            "Redemption Price" means 100% of the principal amount of the Debt
Securities being redeemed plus accrued and unpaid interest on such Debt
Securities to the Redemption Date or, in the case of a redemption due to the
occurrence of a Special Event, to the Special Redemption Date if such Special
Redemption Date is on or after July 23, 2009.

            "Special Redemption Price" means, with respect to the redemption of
any Debt Security following a Special Event, an amount in cash equal to the
percentage for the principal amount of the Debt Securities that is specified
below for the Special Redemption Date plus unpaid interest accrued thereon to
the Special Redemption Date:

         ----------------------------------------------------------------------
         Special Event Redemption During         Percentage of Principal Amount
         ----------------------------------------------------------------------
               Period Beginning On
         ----------------------------------

         ----------------------------------------------------------------------
                  May 27, 2004                                 104.40
         ----------------------------------------------------------------------
                  July 23, 2005                                103.52
         ----------------------------------------------------------------------
                  July 23, 2006                                102.64
         ----------------------------------------------------------------------
                  July 23, 2007                                101.76
         ----------------------------------------------------------------------
                  July 23, 2008                                100.88
         ----------------------------------------------------------------------
          July 23, 2009 and thereafter                         100.00
         ----------------------------------------------------------------------

                                       6
<PAGE>

            In the event of redemption of this Debt Security in part only, anew
Debt Security Debt Securities for the unredeemed portion hereof will 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 Debt Securities may be
declared due and payable, and upon such declaration of acceleration 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 Debt Securities at the time outstanding
affected thereby, as specified 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 Debt
Securities; provided, however, that no such supplemental indenture shall, among
other things, without the consent of the holders of each Debt Security then
outstanding and affected thereby (i) extend the fixed maturity of the Debt
Securities, or reduce the principal amount thereof or any redemption premium
thereon, or reduce the rate or extend the time of payment of interest thereon,
or make payments due on the Debt Securities payable in any coin or currency
other than that provided in the Debt Securities, impair or affect the right of
any holder of Debt Securities to institute suit for the payment thereof, or (ii)
reduce the aforesaid percentage of Debt Securities, the holders of which are
required to consent to any such supplemental indenture. The Indenture also
contains provisions permitting the holders of a majority in aggregate principal
amount of the Debt Securities at the time outstanding, on behalf of all of the
holders of the Debt Securities, 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 payments due on any of the
Debt Securities. Any such consent or waiver by the registered holder of this
Debt Security (unless revoked as provided in the Indenture) shall be conclusive
and binding upon such holder and upon all future holders and owners of this Debt
Security and of any Debt Security 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 Debt Security.

            No reference herein to the Indenture and no provision of this Debt
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay all payments due on this
Debt Security at the time and place and at the rate and in the money herein
prescribed.

            As provided in the Indenture and subject to certain limitations
herein and therein set forth, this Debt Security is transferable by the
registered holder hereof on the Debt Security Register of the Company, upon
surrender of this Debt Security for registration of transfer at the office or
agency of the Trustee in Wilmington, Delaware 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 such holder's attorney
duly authorized in writing, and thereupon one more new Debt Securities of
authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
made for any such registration of transfer, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
relation thereto.

<PAGE>

            Prior to due presentment for registration of transfer of this Debt
Security, the Company, the Trustee, any Authenticating Agent, any paying agent,
any transfer agent and the Debt Security registrar may deem and treat the
registered holder hereof as the absolute owner hereof (whether or not this Debt
Security shall be overdue and notwithstanding any notice of ownership or writing
hereon) 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 Authenticating Agent nor any paying agent nor
any transfer agent nor any Debt Security 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 Debt Security, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, 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 Debt Securities are issuable only in registered certificated
form without coupons. As provided in the Indenture and subject to certain
limitations herein and therein set forth, Debt Securities are exchangeable for a
like aggregate principal amount of Debt Securities of a different authorized
denomination, as requested by the holder surrendering the same.

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

            THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE
DEBT SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

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