Document:

Exhibit

2016 AMENDMENT TO THE
PROTECTIVE LIFE CORPORATION
EXCESS BENEFIT PLAN

WHEREAS, effective as of September 1, 1984, Protective Life Corporation (the “Company”) established the Protective Life Corporation Excess Benefit Plan (the “Plan”) to provide additional retirement benefits to certain employees of the Company and its subsidiaries; and

WHEREAS, pursuant to Section 14 of the Plan, the Plan may be amended at any time by the Company.

NOW, THEREFORE, the Company hereby amends the Plan effective as of the day and year set forth below, as follows:

1.    Delete the current Section 9 Automatic Lump Sum Provision and substitute in lieu thereof the following:

“9.    Automatic Lump Sum Provision.  Any Plan provisions (other than Sections 10 and 17) to the contrary notwithstanding, if a Participant dies or has a Termination of Employment for any reason and the present value of the Excess Benefit payable to the Participant or the Participant’s Beneficiary under the Plan is less than $100,000 (determined as set forth in Section 11), the Company shall distribute the present value of the Excess Benefit in a single lump sum payment.  Such payment shall be made within 90 days after the Participant’s Termination of Employment (or, if the Participant has died, within 90 days after the Participant’s death).  Any such payment shall be in full satisfaction of the Company’s obligations under the Plan.”

2.    Delete the current Section 10 Change of Control and substitute in lieu thereof the following:

“10.    Change of Control.  Any Plan provision to the contrary notwithstanding, if a Participant has a Termination of Employment for any reason after a Change of Control, the Participant’s Pre-2005 Benefit shall be paid in a single lump sum payment (determined as provided in Section 11(b)) within 30 days after January 1 of the calendar year immediately following such Termination of Employment.”

3.    Delete the current Section 11 Lump Sum Payments and substitute in lieu thereof the following:    

“11.    Calculation of Payments.  (a) The calculation of the present value of an Excess Benefit under Section 9 shall be determined as soon as reasonably practicable before the date of payment, using the mortality table (including any setbacks of ages) and interest rate used for determining lump payment amounts under the Pension Plan as of the date on which the calculation is being made.  

(b)    The calculation of the present value of an Excess Benefit under Section 10 shall be determined as soon as reasonably practicable before the date of payment, using (1) the mortality table (including any setbacks of ages) used for determining lump sum payment amounts under the Pension Plan as of the date on which the calculation is being made, and (2) an interest rate equal to the lesser of (A) the sum of (i) the yield on U.S. 10-year Treasury Notes at constant maturity as most recently published by the Federal Reserve Bank of New York; provided, however, that if such yield has not been so published within 90 days before the date on which the calculation is being made, the interest rate shall be the yield on substantially similar securities on the preceding business day as determined by Regions Bank upon the request of either the Company or the Participant, plus (ii) .75%, and (B) the interest rate used for determining lump sum payment amounts under the Pension Plan as of the date on which the calculation is being made.  

(c)    With respect to any Participant who is employed by the Company on the effective date of a Change of Control, the Excess Benefit payable pursuant to Section 8(e) shall be determined as follows: (1) if such Participant’s Excess Benefit under Section 8(e) is payable as a single lump sum, such lump sum payment shall be determined pursuant to the same calculations applicable to the single lump sum payments described in Section 11(b), or (2) if such Participant’s Excess Benefit under Section 8(e) is payable as an annuity, such Participant’s annuity payments shall be determined by taking the present value of the Excess Benefit determined pursuant to the same calculations applicable to the single lump sum payments described in Section 11(b) and converting the resulting present value into an annuity form of payment that is actuarially equal in value to the present value of the single lump sum payment.” 

4.    Add a new Section 17 Payments Following Death as follows:

“17    Payments Following Death.  Notwithstanding any Plan provision to the contrary, with respect to payments made under this Plan as a result of a Participant’s death, such payment may be paid at any time during the period beginning on the Participant’s date of death and ending on December 31st of the first calendar year following the calendar year during which the death occurs and such payment shall be treated as timely paid if it is paid at any time during this period.  The purpose of this Section 17 is to allow for additional time in which to make payments under the Plan following a Participant’s death without violating Code Section 409A in accordance and consistent with the proposed regulations to Code Section 409A set forth in 81 CFR 40569 published on June 22, 2016.”

5.    All other terms and provisions of the Plan shall remain in full force and effect.

(signature page follows)

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IN WITNESS WHEREOF, the Company has executed this Amendment on this 19th day of December, 2016.

PROTECTIVE LIFE CORPORATION

By:     /s/ D. Scott Adams        
D. Scott Adams
Executive Vice President and Chief
Administrative Officer

3Exhibit

Protective Life Corporation Post Office Box 2606 Birmingham, AL 35202 Phone 205 288 1000
D. Scott Adams Birmingham, Executive Vice President and Chief Administration Officer

Deborah Long 
Executive Vice President, Chief Legal Officer and Secretary 
Protective Life Corporation  
2801 US-280 
Birmingham, AL 35223
December 30, 2016
Re:  Transition Letter Agreement
Dear Debbie:    
We are pleased that you have agreed to continue in employment and are thankful for your more than twenty years of dedicated service to Protective Life Corporation (“Protective,” the “Company” and “we,” “our,” or “us”).  It is our understanding that you intend to retire from the Company on July 31, 2018 (your “Retirement Date”).  This letter sets forth our mutual understanding regarding the benefits and other arrangements related to the transition period prior to your Retirement Date.  For avoidance of doubt, this letter will have no effect on the Employment Agreement between you and the Company, dated as of June 3rd, 2014, which will continue in effect pursuant to its terms.  Capitalized terms used in this letter that are not otherwise defined will have the meaning set forth in your Employment Agreement.
1.Duties and Responsibilities during the Transition Period.  From the date of this letter through December 31, 2017 (such period during which you remain employed by us, the “Initial Period”):
		
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	You will continue to be employed with the Company on a fulltime basis in your current role as Executive Vice President, Chief Legal Officer, and Corporate Secretary. 

		
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	You will continue to serve as a member of the P&A Committee and the Strategic Priorities Committee. 

•    You will report to the Chief Executive Officer of the Company. 
		
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	Your current office and secretarial arrangements will continue through the Initial Period.

 

From January 1, 2018 through the Retirement Date (such period during which you remain employed by us, the “Subsequent Period,” and together with the Initial Period, the “Transition Period”):
		
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	You will continue in employment.  We will mutually agree on your title during the Subsequent Period, which should reflect your continuing responsibilities for the Company, cognizant of your status with the Company prior to the Subsequent Period.

		
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	You will work no more than 20% of the average level of services you performed for the Company during the three years prior to the start of the Subsequent Period.

		
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	You agree to be available for consultation on government affairs matters and assisting with the transition to your successors. 

		
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	If applicable, you will continue your duties as Corporate Secretary and assist in the transition thereof.

		
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	You will not be required to report to the office in the performance of such services. 

		
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	You will continue to be provided office space and secretarial arrangements commensurate with your role and business activities during the Subsequent Period. 

You expressly agree that the changes to your duties and responsibilities during the Transition Period as outlined in this letter will not constitute Good Reason, or serve as the basis for a claim of breach or constructive termination, under the Employment Agreement or otherwise.  Unless there is an earlier termination of your service relationship with the Company under paragraph 4 of this letter, your last day of employment with the Company will be your Retirement Date.
2.Compensation During the Transition Period.    In consideration for your services, we will provide the following payments and benefits during the Transition Period, subject to your continued employment with the Company through your Retirement Date:
		
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	You will continue to receive at least your current base salary through the Retirement Date.  You will be eligible for an increase in your base salary in March 2017, and the amount of such increase will be in the discretion of the Company.

		
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	You will be eligible for an annual incentive award for the 2017 performance year under the Company’s Annual Incentive Plan, and your target award percentage will be the same as currently in effect (your “AIP Award”).  The payout of your AIP Award will be based on actual Company performance and 

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will be calculated in the same manner and paid on the same date as for other members of the P&A Committee.
		
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	You will be eligible for a 2017 long-term incentive compensation award under the Company’s long-term incentive compensation plan with a value equal to no less than $580,000 (the “LTI Award”), which LTI Award shall be awarded to you in the same proportion of restricted stock units and performance units as other members of the P&A Committee.  The settlement of your performance units will be based on actual performance achieved against performance objectives established by the Company.

		
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	You will be eligible to receive the remaining installments of your retention bonus due and payable under your Employment Agreement (your “Retention Award”), pursuant to and subject to the terms of Section 4(f) of your Employment Agreement.  With respect to the final installment of your Retention Award payable during the Subsequent Period, provided that you continue to be employed through the applicable payment date, in recognition of the fact that you have deferred payment of the prior installments, we will pay you on such date an amount equal to the supplemental matching contribution of 4% of the amount of such installment that you would have received had this installment also been deferred.

		
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	The applicable terms and conditions of the applicable plan documents and award agreements with respect to your outstanding LTI awards will apply, including the ability of the Compensation Committee to determine in its discretion to fully vest such awards upon your retirement. The Committee has exercised such discretion in the past in circumstances where the retiring executive faithfully executed an agreed-upon transition plan such as is contemplated by this letter and, as has been discussed with the Committee, we anticipate the Committee would do the same for you upon your retirement. 

		
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	During the Initial Period, you will continue to participate in the Company’s benefit plans and programs for employees and P&A Committee members at the same level as in effect on the date hereof.  During the Subsequent Period, you will continue to participate in such benefit plans and programs, except that (i) you will no longer accrue service credit under the Company’s qualified defined benefit pension plan or the Company’s supplemental or excess pension plan, (ii) you will no longer be eligible to participate in the Company’s 401(k) savings plan and (iii) you will no longer accrue vacation time or other paid time off.  For the avoidance of doubt, you will receive matching payments for the “401k shadow” deferments of income earned in 2017. You will also continue to receive advisory services from AYCO for a period of one year post your Retirement Date.  It is our expectation that you will incur a “separation of service” upon commencement of the Subsequent Period and thereby be eligible during the Subsequent Period for distributions 

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pursuant to the Company’s non-qualified deferred compensation and the Company’s supplemental or excess pension plan, subject to the terms and conditions of such plans.
		
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	Provided you remain employed through the Transition Period and terminate your service relationship with us on the Retirement Date, you will receive a final pension benefit under the Company’s qualified defined benefit pension plan and supplemental or excess pension plan equal to the greater of (i) $5,100,000 in the aggregate or (ii) the amount as calculated in accordance with such plans (the “Pension Floor Benefit”).

3.COBRA Coverage; Employee Benefits.  Following the termination of your service relationship with the Company by reason of your retirement on the Retirement Date, provided that you timely and properly elect COBRA continuation coverage under the Company’s group health plans, the Company will pay the cost of such COBRA coverage for you and your eligible dependents from your termination date through July 31, 2019.  Other than as set forth in the immediately preceding sentence, upon the termination of your service relationship with the Company on or prior to the Retirement Date, you will cease to be eligible to participate in the Company’s employee benefit plans or to accrual any additional benefits thereunder.
4.Payments and Benefits upon a Termination of Employment Prior to the Retirement Date.  In the event that your separation from employment with the Company occurs prior to your Retirement Date, you will be eligible for the payments and benefits as set forth below.
		
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	Termination prior to the Retirement Date under the Employment Agreement.  Notwithstanding anything herein to the contrary, in the event of a termination of your service relationship with the Company prior to the end of the Protection Period, you will be entitled only to the payments and benefits as provided under Section 6 of the Employment Agreement.

		
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	Company-Initiated Termination.  If the Company accelerates your transition to retirement and terminates your service relationship with the Company without Cause prior to the Retirement Date, you will receive your Earned Salary and the Accrued Obligations, plus, subject to your signing and not revoking a release of claims in favor of the Company, the payments and benefits you otherwise would have received under this letter through the end of the Transition Period as if your employment had continued until your retirement occurred on the Retirement Date, payable as set forth below; provided, that, if your LTI Award has not yet been awarded, you shall receive $580,000 in cash rather than in the form of an LTI Award.  Such amounts shall be paid as follows:  (a) any cash amounts payable in respect of your base salary, LTI Award and any unpaid installments of your Retention Award will be paid in cash in a single lump sum on the first payroll date following the 30th day following your termination date, (b) any cash amounts payable in respect of your AIP Award will be based on actual performance and will be paid at the same time as for active executives but in no event later than March 15, 2018, (c) the Earned Salary will be 

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paid as soon as practicable but no later than 10 business days following your termination date, and (d) the Accrued Obligations, which shall include application of the Pension Floor Benefit, will be paid in accordance with the terms of the applicable plan, policy, program or arrangement.
		
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	Your Termination by Reason of Death or Disability.  If your service relationship with the Company is terminated by reason of your death or Disability prior to the Retirement Date, your estate and/or beneficiaries will receive your Earned Salary and the Accrued Obligations, which shall include application of the Pension Floor Benefit, plus, the payment of any unpaid installments of your Retention Award.  You, your estate and/or beneficiaries will also receive such additional amounts, if any, as the Compensation Committee may award in its sole discretion in recognition of the lost opportunity to earn the amounts you would otherwise have been able to receive under this Agreement but for such unexpected termination. Such amounts shall be paid as follows:  (a) any unpaid installments of your Retention Award will be paid in cash in a single lump sum on the first payroll date following the 30th day following your termination date, (b) the Earned Salary will be paid as soon as practicable but no later than 10 business days following your termination date, and (c) the Accrued Obligations, which shall include application of the Pension Floor Benefit, will be paid in accordance with the terms of the applicable plan, policy, program or arrangement.  Any additional amounts which may be awarded by the Committee shall be paid as the Committee shall determine.

		
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	Your Voluntary Termination or a Termination for Cause.  If your service relationship with the Company is terminated for Cause or if you voluntarily terminate your service relationship with the Company prior to the Retirement Date, the Company shall pay you your Earned Salary in cash in a single lump sum as soon as practicable but in no event more than 10 business days following your termination date, and the Accrued Obligations (without applying the Pension Floor Benefit) in accordance with the terms of the applicable plan, policy, program or arrangement.  For avoidance of doubt, you will not be eligible for any other payments or benefits under this letter or your Employment Agreement, including but not limited to any unpaid installments of your Retention Award; and any entitlements under the Company’s qualified defined benefit pension plan and supplemental or excess pension plan shall be calculated in accordance with the plan documents without application of the Pension Floor Benefit.

5.Attorneys’ Fees.  The Company will pay or you will be reimbursed for your legal fees incurred in negotiating this letter up to a maximum of $20,000, provided that any such payment will be made on or before March 15, 2017.
6.Miscellaneous.  This letter represents the entire agreement between you and the Company with regard to this subject matter. The provisions of Section 12 of the Employment Agreement are incorporated by reference into this letter and shall have the same force and effect as if they had been initially set forth in this letter.

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We thank you again for your many years of service to the Company and the impact you’ve had on the success of our business.  We look forward to continuing to work with you through your Retirement Date.  If you are in agreement with the terms of this letter as set forth herein, please sign below and return a copy of this letter to me.

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Sincerely, 

/s/ D. SCOTT ADAMS
D. Scott Adams 
Executive Vice President and Chief Administrative Officer 
Protective Life Corporation
Agreed and accepted by:
/s/ DEBORAH LONG 
                        Deborah Long

Dec. 30, 2016 
                        Date

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