Document:

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                                                                Exhibit 10.5(iv)

                       AMERICAN COMMUNITY BANCSHARES, INC.

                                       AND

                      WILMINGTON TRUST COMPANY, AS TRUSTEE

                             SUPPLEMENTAL INDENTURE

                                       9 %

                               DEFERRABLE INTEREST
                         JUNIOR SUBORDINATED DEBENTURES

                                DUE MARCH 1, 2032

                            DATED AS OF MARCH 1, 2002

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                             SUPPLEMENTAL INDENTURE

     SUPPLEMENTAL INDENTURE, dated as of March 1, 2002, between AMERICAN
COMMUNITY BANCSHARES, INC., a North Carolina Corporation (the "Corporation") and
WILMINGTON TRUST COMPANY, a Delaware banking corporation (the "Trustee").

                                    RECITALS

     WHEREAS, the Corporation and the Trustee executed that certain Indenture,
dated as of December 31, 2001, to provide for the issuance of unsecured
securities to be known as its 9 % Deferrable Interest Junior Subordinated
Debentures, due December 31, 2031 (the "Debentures"); and

     WHEREAS, American Community Capital Trust I, a Delaware statutory business
trust (the "Trust") invested the proceeds from its sale of Two Million Dollars
($2,000,000) aggregate liquidation amount of its Preferred Securities (as
defined in the Indenture) and the sale of Sixty-One Thousand Eight Hundred Sixty
Dollars ($61,860) aggregate liquidation amount of its Common Securities (as
defined in the Indenture) in Two Million Sixty-One Thousand Eight Hundred Sixty
Dollars ($2,061,860) aggregate liquidation amount of the Debentures; and

     WHEREAS, for its lawful corporate purposes, the Corporation has duly
authorized the execution and delivery of this Supplemental Indenture to provide
for the issuance of additional Debentures to the Trust in an aggregate principal
amount of up to One Million Five Hundred Forty-Six Thousand Four Hundred Dollars
($1,546,400), such that the aggregate liquidation amount of all Debentures
outstanding hereunder is Three Million Six Hundred Eight Thousand Two Hundred
Sixty Dollars ($3,608,260); and

     WHEREAS, the Trust intends to invest the proceeds from its sale of One
Million Five Hundred Thousand Dollars ($1,500,000) aggregate liquidation amount
of its Preferred Securities and the sale of Forty-Six Thousand Four Hundred
Dollars ($46,400) aggregate liquidation amount of its Common Securities in One
Million Five Hundred Forty-Six Thousand Four Hundred Dollars ($1,546,400)
aggregate liquidation amount of the Corporation's Debentures; and

     WHEREAS, the form and substance of such Debentures and the terms and
conditions thereof are as set forth as provided in the Indenture as modified by
this Supplemental Indenture, which modification shall include the alteration of
certain terms of the Debentures, including, but not limited to, the extension of
the Maturity Date (as defined in the Indenture); and

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

     WHEREAS, all requirements necessary to make this Supplemental Indenture and
the Indenture, when together taken as a whole, a valid instrument in accordance
with their terms, and to make the Debentures, when executed by the Corporation
and authenticated and delivered by the trustee, the valid obligations of the
Corporation, have been performed, and the execution and delivery of this
Supplemental Indenture has been duly authorized in all respects; and

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     WHEREAS, all things necessary to make the Indenture and the Supplemental
Indenture, when taken together as a whole, a valid agreement of the Corporation,
in accordance with its terms, have been done.

     NOW, THEREFORE, in consideration of these premises and the purchase of
additional Debentures by the Trust, the terms and conditions of that certain
Indenture, executed by and between the Corporation and the Trustee and dated as
of December 31, 2001, are hereby modified as provided in this Supplemental
Indenture, the sections of which shall replace and supercede the sections of
corresponding number in the Indenture:

SECTION 1.1 DEFINITION OF TERMS.

     "Scheduled Maturity Date" means March 1, 2032.

SECTION 2.1 DESIGNATION AND PRINCIPAL AMOUNT

     There are hereby authorized Debentures designated the "9% Deferrable
Interest Junior Subordinated Debentures due March 1, 2032," limited in aggregate
principal amount to not more than Three Million Six Hundred Eight Thousand Two
Hundred Sixty Dollars ($3,608,260) which amount shall be as set forth in any
written order of the Corporation for the authentication and delivery of
Debentures pursuant to Section 2.5.

SECTION 2.1 MATURITY.

     (a) The Maturity Date shall be either:

          (i)  The Scheduled Maturity Date; or

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

     (b) The Corporation may at any time before the day which is 90 days before
the Scheduled Maturity Date and after March 1, 2007, elect to shorten the
Maturity Date only once to the Accelerated Maturity Date provided that the
Corporation has received the prior approval of the Federal Reserve, if then
required under applicable capital guidelines, policies or regulations of the
Federal Reserve.

     (c) If the Corporation elects to accelerate the Maturity Date in accordance
with Section 2.2(b), the Corporation shall give notice to the Trustee and the
Trust (unless the Trust is not the holder of the Debentures, in which case the
trustee will give notice to the holders of the Debentures) of the acceleration
of the Maturity Date and the Accelerated Maturity Date; provided, however, that
nothing provided in this Section 2.2 shall limit the Corporation's rights, as
provided in Article III hereof, to redeem all or a portion of the Debentures at
such time or

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times on or after December 31, 2001, as the Corporation may so determine, or at
any time upon the occurrence of Special Event.

SECTION 2.4 INTEREST.

     (a) Each Debenture shall bear interest at the Coupon Rate from December 31,
2001 until the principal thereof becomes due and payable, and on any overdue
principal and (to the extent that payment of such interest is enforceable under
applicable law) on any overdue installment of interest at the Coupon Rate,
compounded quarterly, payable (subject to the provisions of Article IV)
quarterly in arrears on March 31, June 30, September 30 and December 31 of each
year (each, an "Interest Payment Date," commencing on March 31, 2002), to the
Person in whose name such Debenture or any Predecessor Debenture is registered
at the close of business on the Regular Record Date next preceding such Interest
Payment Date.

SECTION 3.3 OPTIONAL REDEMPTION BY CORPORATION.

     Except as otherwise may be specified in this Indenture but not in
limitation of Section 3.2, the Corporation shall have the right to redeem the
Debentures, in whole or in part, from time to time, on or after March 1, 2007 at
a Redemption Price equal to 100% of the principal amount to be redeemed plus any
accrued and unpaid interest thereon to the date of such redemption. Any
redemption pursuant to this Section 3.3 shall be (i) made in multiples of $1,000
and (ii) made upon not less than 30 days nor more than 60 days notice to the
holder of the Debentures, at the Redemption Price. If the Debentures are only
partially redeemed pursuant to this Section 3.3, the Debentures shall be
redeemed pro rata or by lot or in such other manner as the Trustee shall deem
appropriate and fair in its discretion. The Redemption Price shall be paid prior
to 12:00 noon, Monroe, North Carolina time, on the date of such redemption or at
such earlier time as the Corporation determines provided that the Corporation
shall deposit with the Trustee an amount sufficient to pay the Redemption Price
by 10:00 a.m., Monroe, North Carolina time, on the date such Redemption Price is
to be paid.

SECTION 3.4 NOTICE OF REDEMPTION.

     (a) In case the Corporation shall desire to exercise such right to redeem
all or a portion of the Debentures in accordance with the right reserved so to
do, the Corporation shall, or shall cause the Trustee to, upon receipt of 45
days written notice from the Corporation, give notice of such redemption to
holders of the Debentures to be redeemed by mailing, first class postage
prepaid, a notice of such redemption not less than 30 days and not more than 60
days before the date fixed for redemption to such holders at their last
addresses as they shall appear upon the Debenture Register unless a shorter
period is specified in the Debentures to be redeemed. Any notice that is mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the registered holder receives the notice. In any case,
failure to duly give such notice to the holder of any Debenture designated for
redemption in whole or in part, or any defect in the notice, shall not affect
the validity of the proceedings for the redemption of any other Debentures. In
the case of any redemption of Debentures prior to the expiration of any
restriction on such redemption provided in the terms of such Debentures or
elsewhere in this Indenture, the Corporation shall furnish the Trustee with an

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Officers' Certificate evidencing compliance with any such restriction. Each such
notice of redemption shall identify the Debenture to be redeemed and shall
specify the date fixed for redemption and the Redemption Price and shall state
that payment of the Redemption Price shall be made at the office or agency of
the Corporation or at the Corporate Trust Office, upon presentation and
surrender of such Debentures, that interest accrued to the date fixed for
redemption shall be paid as specified in said notice and that from and after
said date interest shall cease to accrue. If less than all the Debentures are to
be redeemed, the notice to the holders of the Debentures shall specify the
particular Debentures to be redeemed. If any Debenture is to be redeemed in part
only, the notice shall state the portion of the principal amount thereof to be
redeemed (which shall be $10 or a multiple thereof) and shall state that on and
after the redemption date, upon surrender of such Debenture, a new Debenture or
Debentures in principal amount equal to the unredeemed portion thereof shall be
issued.

SECTION 5.8 COVENANTS AS TO PURCHASES

     Prior to March 1, 2007, the Corporation shall not purchase any Debentures,
in whole or in part, from the Trust, except as otherwise permitted by Section
3.2.

SECTION 8.2 ISSUE OF DEBENTURES.

     Debentures in an aggregate principal amount of up to Three Million Six
Hundred Eight Thousand Two Hundred Sixty Dollars ($3,608,260) may, upon
execution of this Indenture, be executed by the Corporation and delivered to the
Trustee for authentication, and the Trustee shall thereupon authenticate and
make available for delivery said Debentures upon the written order of the
Corporation, signed by its Chairman, its President, or any Vice President and
its Treasurer, an Assistant Treasurer, its Secretary or Assistant Secretary
without any further action by the Corporation.

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     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed all as of the day and year first written above.

                                        AMERICAN COMMUNITY BANCSHARES, INC.

                                            By:  /s/ Randy P. Helton
                                                 -------------------------------

                                            Name:  Randy P. Helton
                                                   -----------------------------

                                            Title: President and CEO
                                                   -----------------------------

                                        WILMINGTON TRUST COMPANY, AS TRUSTEE

                                            By:  /s/ Mary C. St. Amand
                                                 -------------------------------

                                            Name:  Mary C. St. Amand
                                                   -----------------------------

                                            Title: Senior Vice President
                                                   -----------------------------

                                       6<PAGE>

                                                                 Exhibit 10.5(v)

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

American Community Bancshares, Inc., a North Carolina corporation (the
"Corporation," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
Wilmington Trust Company, as Property Trustee for American Community Capital
Trust I, or registered assigns, the principal sum of Two Million Sixty-One
Thousand Eight Hundred Sixty Dollars ($2,061,860) on March 1, 2032 (the "Stated
Maturity"), and to pay interest on said principal sum from December 31, 2001, or
from the most recent interest payment date (each such date, an "Interest Payment
Date") to which interest has been paid or duly provided for, quarterly (subject
to deferral as set forth herein) in arrears on March 31, June 30, September 30
and December 31 of each year commencing March 31, 2002, at the rate of 9% per
annum until the principal hereof shall have become due and payable, and on any
overdue principal and (without duplication) on any overdue installment of
interest at the same rate (the "Coupon Rate") compounded quarterly. Interest on
the Debenture shall be calculated on the basis of a 360-day year of 12 30-day
months. Any change in the Coupon Rate shall be effective on the date of such
change for the purposes of calculating interest for any period. Except as
provided in the following sentence, the amount of interest payable for any
period shorter than a full quarterly period for which interest is computed,
shall be computed on the basis of the actual number of days elapsed in such
period. In the event that any date on which interest is payable on this
Debenture is not a business day, then payment of interest payable on such date
shall be made on the next succeeding day that is a business day (and without any
interest or other payment in respect of any such delay), except that, if such
business day is in the next succeeding calendar year, such payment shall be made
on the preceding business day, in each case with the same force and effect as if
made on such date. The interest installment so payable, and punctually, paid or
duly provided for, on any Interest Payment Date shall, as provided in the
Indenture, be paid to the person in whose name this Debenture (or one or more
Predecessor Debentures, as defined in said Indenture) is registered at the close
of business on the regular record date for such interest installment, which
shall be the 15th day of the month preceding the Interest Payment Date unless
otherwise provided in the Indenture. Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
registered holders on such regular record date and may be paid to the Person in
whose name this Debenture (or one or more Predecessor Debentures) is registered
at the close of business on a special record date to be fixed by the Trustee for
the payment of such defaulted interest, notice whereof shall be given to the
registered holders of the Debentures not less than 10 days prior to such special
record date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Debentures may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture. The principal of and the
interest on this Debenture shall be payable at the office or agency of the
Trustee maintained for that purpose in any coin or currency of the United States
of America that at the time of payment is legal tender for payment of public and
private debts; provided, however, that payment of interest may be made at the
option of the Corporation by check mailed to the registered holder at such
address as shall appear in the Debenture Register.

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Notwithstanding the foregoing, so long as the holder of this Debenture is the
Property Trustee, the payment of the principal of and interest on this Debenture
shall be made at such place and to such account as may be designated by the
Trustee.

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

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

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

This Debenture is one of the subordinated debentures of the Corporation (herein
sometimes referred to as the "Debentures"), specified in the Indenture, all
issued or to be issued under and pursuant to an Indenture dated as of December
31, 2001 (the "Indenture") duly executed and delivered between the Corporation
and Wilmington Trust Company, as Trustee (the "Trustee"), to which Indenture
reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Corporation
and the holders of the Debentures. The Debentures are limited in aggregate
principal amount as specified in the Indenture.

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

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

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

In the event of redemption of this Debenture in part only, a new Debenture or
Debentures for the unredeemed portion hereof shall be issued in the name of the
holder hereof upon the cancellation hereof.

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

The Indenture contains provisions permitting the Corporation and the Trustee,
with the consent of the holders of not less than a majority in aggregate
principal amount of the Debentures at the time Outstanding, as defined in the
Indenture, to execute supplemental indentures for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the
rights of the holders of the Debentures; provided, however, that no such
supplemental indenture shall (i) extend the fixed maturity of the Debentures
except as provided in the Indenture, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon (except for
deferrals of interest as described below), without the consent of the holder of
each Debenture so affected; or (ii) reduce the aforesaid percentage of
Debentures, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Debenture
then outstanding and affected thereby. The Indenture also contains provisions
permitting the holders of a majority in aggregate principal amount of the
Debentures at the time Outstanding, on behalf of all of the holders of the
Debentures, to waive any past default in the performance of any of the covenants
contained in the Indenture, or established pursuant to the Indenture, and its
consequences, except a default in the payment of the principal of or interest on
any of the Debentures. Any such consent or waiver by the registered holder of
this Debenture (unless revoked as provided in the Indenture) shall be conclusive
and binding upon such holder and upon all future holders and owners of this
Debenture and of any Debenture issued in exchange therefor or in place thereof
(whether by registration of transfer or otherwise or whether any notation of
such consent or waiver is made upon this Debenture).

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

So long as no Event of Default has occurred and is continuing, the Corporation
shall have the right at any time during the term of the Debentures and from time
to time to extend the interest payment period of such Debentures for up to 20
consecutive quarters (each, an "Extended Interest Payment Period"), at the end
of which period the Corporation shall pay all interest then accrued and unpaid
(together with interest thereon at the rate specified for the Debentures to the
extent that payment of such interest is enforceable under applicable law).
Before the termination

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of any such Extended Interest Payment Period, the Corporation may further extend
such Extended Interest Payment Period, provided that such Extended Interest
Payment Period together with all such further extensions thereof shall not
exceed 20 consecutive quarters and no Extended Interest Payment Period shall
extend beyond the Stated Maturity. At the termination of any such Extended
Interest Payment Period and upon the payment of all accrued and unpaid interest
and any additional amounts then due, the Corporation may commence a new Extended
Interest Payment Period.

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

Prior to due presentment for registration of transfer of this Debenture, the
Corporation, the Trustee, any paying agent and the Debenture Registrar may deem
and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debenture shall be overdue and notwithstanding any notice of ownership
or writing hereon made by anyone other than the Debenture Registrar) for the
purpose of receiving payment of or on account of the principal hereof and
interest due hereon and for all other purposes, and neither the Corporation nor
the Trustee nor any paying agent nor any Debenture Registrar shall be affected
by any notice to the contrary.

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

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

                                AMERICAN COMMUNITY BANCSHARES, INC.

                                    By: /s/ Randy P. Helton
                                        ----------------------------------------

                                    Name: Randy P. Helton

                                    Title: President and Chief Executive Officer

Attest:

By: /s/ Stephanie D. Helms
    ----------------------

Name: Stephanie D. Helms
      --------------------

Title: Asst. Secretary
       -------------------

                          CERTIFICATE OF AUTHENTICATION

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

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

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

                 By: /s/ Mary C. St. Amand           By:
                     ---------------------               _______________________
                     Authorized Signatory            Authorized Signatory

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