Document:

EXHIBIT 4.1

 

PROTECTIVE LIFE CORPORATION

 

to

 

THE BANK OF NEW YORK MELLON TRUST COMPANY,
N.A., as Trustee

 

SUPPLEMENTAL INDENTURE NO. 12

 

Dated as of October 9, 2009

 

7.375% Senior Notes due October 15, 2019

 

$400,000,000

 

 

 

PROTECTIVE LIFE CORPORATION

 

SUPPLEMENTAL INDENTURE NO. 12

 

$400,000,000

 

7.375% Senior Notes due October 15, 2019

 

SUPPLEMENTAL INDENTURE NO. 12, dated as of October 9, 2009, from
PROTECTIVE LIFE CORPORATION, a Delaware corporation (the “Company”), to THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as
trustee (the “Trustee”).

 

The Company has heretofore executed and
delivered to The Bank of New York a Senior Indenture, dated as of June 1,
1994 (the “Indenture”), providing for the issuance from time to time of series
of the Company’s Securities.

 

The Company, The Bank of New York and the
Trustee have heretofore entered into that certain Agreement of Resignation,
Appointment and Acceptance effective as of August 25, 2006, providing for
the resignation of The Bank of New York as Trustee under the Indenture and the
appointment of the Trustee as successor to The Bank of New York as Trustee
under the Indenture.

 

The Trustee changed its name to The Bank of
New York Mellon Trust Company, N.A. effective October 1, 2006.

 

Section 3.1 of the Indenture provides
for various matters with respect to any series of Securities issued under the
Indenture to be established in an indenture supplemental to the Indenture.

 

Section 8.1(7) of the Indenture
provides for the Company and the Trustee to enter into an indenture
supplemental to the Indenture to establish the form or terms of Securities of
any series as provided by Sections 2.1 and 3.1 of the Indenture.

 

For and in consideration of the premises and
the issuance of the series of Securities provided for herein, it is mutually
covenanted and agreed as follows for the equal and ratable benefit of the
Holders of the Securities of such series:

 

ARTICLE I

 

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.    This
Supplemental Indenture No. 12 constitutes an integral part of the
Indenture.

 

 

Section 1.2.    For
all purposes of this Supplemental Indenture No. 12:

 

Section 1.2.1.    Capitalized
terms used herein without definition shall have the meanings specified in the
Indenture;

 

Section 1.2.2.    All
references herein to Articles and Sections, unless otherwise specified, refer
to the corresponding Articles and Sections of this Supplemental Indenture No. 12;
and

 

Section 1.2.3.    The
terms “herein,” “hereof,” “hereunder” and other words of similar import refer
to this Supplemental Indenture No. 12.

 

ARTICLE II

 

THE SERIES 2009A SENIOR NOTES

 

Section 2.1.    TITLE
OF THE SECURITIES.  There shall be a
series of Securities designated the 7.375% Senior Notes due October 15,
2019 (the “Series 2009A Notes”).

 

Section 2.2.    LIMITATION
ON AGGREGATE PRINCIPAL AMOUNT; DATE OF SERIES 2009A NOTES.  The aggregate principal amount of the Series 2009A
Notes shall be limited to $400,000,000 or such higher principal amount as shall
be outstanding as a result of the issuance of Additional Notes (as defined
herein).  Each Series 2009A Note
shall be dated the date of its authentication.

 

Section 2.3.    PRINCIPAL
PAYMENT DATES.  The principal on the Series 2009A
Notes Outstanding (together with any accrued and unpaid interest thereon) shall
be payable in a single installment on October 15, 2019.

 

Section 2.4.    INTEREST
AND INTEREST RATES.  The rate of interest
on each Series 2009A Note shall be 7.375% per annum, accruing from October 9,
2009 or from the most recent Interest Payment Date to which interest on such Series 2009A
Note has been paid or duly provided for. 
Interest shall be payable in arrears on each Series 2009A Note
semi-annually on April 15 and October 15 of each year (each an “Interest
Payment Date”), commencing on April 15, 2010.  The interest so payable on any Series 2009A
Note which is punctually paid or duly provided for on any Interest Payment Date
shall be paid to the Person in whose name such Series 2009A Note is
registered at the close of business on the April 1 or October 1, as
the case may be, preceding such April 15 or October 15 (each a “Regular
Record Date”).  The interest so payable
on a Series 2009A Note which is not punctually paid or duly provided for
on any Interest Payment Date shall forthwith cease to be payable to the Person
in whose name such Series 2009A Note is registered on the relevant Regular
Record Date, and such defaulted interest shall instead be payable to the Person
in whose name such Series 2009A Note is registered on the Special Record
Date or other specified date determined in accordance with the Indenture.

 

Section 2.5.    PLACE
OF PAYMENT.  The Place of Payment where
the Series 2009A Notes may be presented or surrendered for payment, where
the Series 2009A Notes may be surrendered for registration of transfer or
exchange and where notices and demands to and upon

 

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the Company in respect of the Series 2009A Notes and the Indenture
may be served shall be in the Borough of Manhattan, The City of New York, New
York, and the office or agency maintained by the Company for such purpose shall
initially be the Corporate Trust Office of the Trustee.

 

Section 2.6.    ADDITIONAL
COVENANTS.  For the benefit of the Holders
from time to time of the Series 2009A Notes and in addition to the
covenants set forth in Article 9 of the Indenture, the Company further
covenants and agrees as follows:

 

Section 2.6.1.    Limitations on Disposition of Capital Stock of
Restricted Subsidiaries. The Company will not, and will not permit
any Subsidiary to, sell, assign, transfer or otherwise dispose of any shares of
the capital stock of any Restricted Subsidiary unless the entire capital stock
of such Restricted Subsidiary at the time owned directly or indirectly by the
Company and its Subsidiaries shall be disposed of at the same time for a
consideration consisting of cash or other property which the Board of
Directors, as evidenced in a Board Resolution, has determined to be at least equal
to the fair value thereof. 
Notwithstanding the foregoing provision, (i) the Company shall be
permitted to sell, assign, transfer or otherwise dispose of shares of the
capital stock of a Restricted Subsidiary (A) to any director (or any
individual nominated to become a director) of such Restricted Subsidiary but
only to the extent ownership of such shares is required as directors’
qualifying shares for such director or individual and (B) to any
Subsidiary; and (ii) any Restricted Subsidiary shall be permitted to sell,
assign, transfer or otherwise dispose of shares of its capital stock or the
capital stock of any other Restricted Subsidiary (A) to any director (or
any individual nominated to become a director) of such Restricted Subsidiary
but only to the extent ownership of such shares is required as directors’
qualifying shares for such director or individual, or (B) to the Company
or any Subsidiary.

 

Section 2.6.2.    Limitations upon Creation of Liens on Capital Stock
of Restricted Subsidiaries.

 

(a)           The Company will not, and will not permit any Restricted
Subsidiary to, at any time directly or indirectly, issue, assume, guarantee or
permit to exist any indebtedness secured by a Lien on the capital stock of any
Restricted Subsidiary without making effective provision whereby the Series 2009A
Notes then outstanding (and if the Company so elects, any other indebtedness
ranking on a parity with the Series 2009A Notes) shall be equally and
ratably secured with such indebtedness as to such property so long as such
other indebtedness shall be so secured; provided, however, that the covenant
set forth in this Section 2.6.2. will not be applicable to Liens (i) on
the shares of stock of a subsidiary of a Person that is merged with or into the
Company or a Subsidiary securing debt of such Person, which debt was
outstanding prior to such merger, but only if such pledge and debt were not
incurred in anticipation of such merger, (ii) in favor of the Company
securing debt of a Restricted Subsidiary owed to the Company, (iii) for
taxes or assessments or governmental charges or levies not then due and
delinquent or the validity of which are being contested in good faith or which
are less than $30,000,000, or (iv) created by or resulting from any
litigation or legal proceeding being contested in good faith or which are less
than $30,000,000.

 

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(b)           If the Company shall hereafter be required to secure the Series 2009A
Notes equally and ratably with any other indebtedness pursuant to this Section 2.6.2.,
(i) the Company will promptly deliver to the Trustee an Officers’
Certificate stating that the foregoing covenant has been complied with and an
Opinion of Counsel stating that in the opinion of such counsel the foregoing
covenant has been complied with and that any instruments executed by the
Company or any Restricted Subsidiary in the performance of the foregoing
covenant comply with the requirements of the foregoing covenant and (ii) the
Trustee is hereby authorized to enter into an indenture or agreement
supplemental hereto and to take such action, if any, as it may deem advisable
to enable it to enforce the rights of the Holders of the Series 2009A
Notes.

 

Section 2.6.3.    For
purposes of this Section 2.6., “Restricted Subsidiary” shall mean any
Subsidiary of the Company with assets greater than or equal to 20% of all
assets of the Company and its Subsidiaries, computed and consolidated in
accordance with generally accepted accounting principles.

 

Section 2.6.4.    For
purposes of this Section 2.6., “Lien” shall mean any mortgage, pledge,
lien, charge, security interest, conditional sale or other title retention
agreement or other encumbrance of any nature whatsoever.

 

Section 2.7.    MODIFICATION
OF EVENTS OF DEFAULT.  For the benefit of
the Holders from time to time of the Series 2009A Notes, clause 4 of Section 5.1
of the Indenture is hereby modified by deleting such clause 4 in its entirety
and replacing it with the following:

 

A default under any mortgage, agreement, indenture
or instrument under which there may be issued, or by which there may be
secured, guaranteed or evidenced any Debt of the Company (including this
Indenture) whether such Debt now exists or shall hereafter be created, in an
aggregate principal amount then outstanding of $25,000,000 or more, which
default (a) shall constitute a failure to pay any portion of the principal
of such Debt when due and payable or (b) shall result in such Debt
becoming or being declared due and payable prior to the date on which it would
otherwise become due and payable, and such acceleration shall not be rescinded
or annulled, or such Debt shall not be paid in full, within a period of 30 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 at least 25% in
aggregate principal amount of the Outstanding Securities of the Series 2009A
Notes, a written notice specifying such event of default and requiring the
Company to cause such acceleration to be rescinded or annulled or to pay in
full such Debt and stating that such notice is a “Notice of Default” hereunder;
(it being understood, however, that the Trustee shall not be deemed to have
knowledge of such default under such agreement or instrument unless either (A) a
Responsible Officer of the Trustee shall have actual knowledge of such default
or (B) a Responsible Officer of the Trustee shall have received written
notice thereof from the Company, from any Holder, from the holder of any such indebtedness
or from the trustee under any such agreement or other instrument); PROVIDED,
HOWEVER, that if such default under such mortgage, agreement, indenture or
instrument is remedied or cured by the Company or waived by the holders of such
indebtedness, then the Event of Default hereunder by reason thereof shall be
deemed likewise to have been thereupon remedied, cured or waived without
further action upon the part of either the Trustee or any of such Holders;
PROVIDED, FURTHER, that the 

 

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foregoing shall not apply to any secured Debt
under which the obligee has recourse (exclusive of recourse for ancillary
matters such as environmental indemnities, misapplication of funds, costs of
enforcement and the like) only to the collateral pledged for repayment so long
as the fair market value of such collateral does not exceed 2% of Total Assets
at the time of the “default.”

 

Section 2.8.    REDEMPTION
AT THE OPTION OF THE COMPANY.

 

Section 2.8.1.    Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2009A
Notes at its sole option, in whole or in part, at any time prior to October 15,
2019 at the Redemption Price (as defined below), together with accrued but
unpaid interest on the principal amount to be redeemed to the redemption date,
subject to the terms and conditions set forth in this Section 2.8.

 

Section 2.8.2.    Redemption Price.
 
(a)           The “Redemption Price” as to any date of redemption shall be equal to the greater of (i) 100% of the principal amount of the Series 2009A Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009A Notes to be redeemed on such redemption date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”) plus 50 basis points. The Company shall give the Trustee notice of the amount of the applicable Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.
 
(b)           The “Treasury Rate” with respect to any Calculation Date shall be (i) the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as defined below); provided that if no maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or (ii) if such release (or any successor release) is not published during the week preceding the Calculation Date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.
 
(c)           “Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Senior Trustee after consultation with the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment

 

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banking institution of national standing appointed by the Trustee after consultation with the Company.
 
(d)           “Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term (“Remaining Life”) of the Series 2009A Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2009A Notes.
 
(e)           “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
 
(f)            “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 5:00 p.m., New York City time, on the Calculation Date.
 
(g)           “Reference Treasury Dealer” means each of Banc of America Securities LLC, Barclays Capital Inc., a Primary Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC and two Primary Treasury Dealers selected by the Company, and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.
 

Section 2.8.3.    Notice to Trustee.  If the Company wishes to redeem Series 2009A
Notes pursuant to the terms hereof and of the Series 2009A Notes, it shall
notify the Trustee of the redemption date and the principal amount of Series 2009A
Notes to be redeemed.  The Company shall
give the notice provided for in this Section not less than 45 nor more
than 60 days prior to the redemption date.

 

Section 2.8.4.    Selection of Series 2009A Notes to be Redeemed.  If less than all the Series 2009A Notes
are to be redeemed, the Trustee shall select the Series 2009A Notes to be
redeemed by lot or by any other method the Trustee shall deem fair and
reasonable.  The Trustee shall make the
selection not more than 60 days before the redemption date from Series 2009A
Notes then outstanding that have not been previously called for
redemption.  The Trustee shall promptly
notify the Company in writing of the Series 2009A Notes selected for
redemption and, in the case of any Series 2009A Note selected for partial
purchase or redemption, the principal amount thereof to be purchased or
redeemed.  The Trustee may select for
redemption portions of the principal of Series 2009A Notes that have
denominations larger than $2,000.  Series 2009A
Notes and portions of Series 2009A Notes that the Trustee selects shall be
in amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to 

 

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Series 2009A
Notes called for redemption also apply to portions of Series 2009A Notes
called for redemption.

 

Section 2.8.5.    Notice of Redemption.  At least 30 days but not more than 60 days
before a redemption date, the Company shall mail or cause to be mailed, by
first class mail, a notice of redemption to each Holder whose Series 2009A
Notes are to be redeemed at its registered address.

 

(a)           The notice shall
identify the Series 2009A Notes to be redeemed and shall state:

 

(i)            the redemption date;

 

(ii)           the methodology for determination of the Redemption Price;

 

(iii)          if any Series 2009A Note is being redeemed in part,
the portion of the principal amount of such Series 2009A Note to be
redeemed;

 

(iv)          the name and address of the Paying Agent;

 

(v)           that the Series 2009A Notes called for redemption
must be surrendered to the Paying Agent to collect the Redemption Price;

 

(vi)          that, unless the Company defaults in making such redemption
payment, interest on Series 2009A Notes called for redemption ceases to
accrue on and after the redemption date; and

 

(vii)         that no representation is made as to the correctness or
accuracy of the CUSIP number, if any, listed in such notice or printed on the Series 2009A
Notes.

 

(b)           At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name
and at its expense; provided, however,
that the Company shall have delivered to the Trustee, at least 45 days prior to
the redemption date, an Officers’ Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph (which request may be revoked by so
notifying the Trustee in writing on or before the Business Day immediately
preceding the date requested for the mailing of such notice).

 

Section 2.8.6.    Effect of Notice of Redemption.  Once notice of redemption is mailed in
accordance with the provisions hereof, Series 2009A Notes called for
redemption become irrevocably due and payable on the redemption date at the
Redemption Price.  A notice of redemption
may not be conditional.

 

Section 2.8.7.    Deposit of Redemption Price.

 

(a)           One Business Day
prior to the redemption date, the Company shall deposit with the Trustee or
with the Paying Agent money sufficient to pay the Redemption Price

 

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of,
and accrued interest, if any, on all Series 2009A Notes to be redeemed on
that date.  The Trustee or the Paying
Agent shall promptly return to the Company any money deposited with the Trustee
or the Paying Agent by the Company in excess of the amounts necessary to pay
the redemption price of, and accrued interest on, all Series 2009A Notes
to be redeemed.

 

(b)           If the Company
complies with the provisions of the preceding paragraph, on and after the
redemption date, interest shall cease to accrue on the Series 2009A Notes
or the portions of Series 2009A Notes called for redemption.  If a Series 2009A Note is redeemed on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest shall be paid to the Person in whose
name such Series 2009A Note was registered at the close of business on
such record date.  If any Series 2009A
Notes called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until
such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Series 2009A
Notes and in Section 2.4. hereof.

 

Section 2.8.8.    Series 2009A Notes Redeemed in Part.  Upon surrender of a Series 2009A Note
that is redeemed in part, the Company shall issue and, upon the Company’s
written request, the Trustee shall authenticate for the Holder at the expense
of the Company, a new Series 2009A Note equal in principal amount to the
unredeemed portion of the Series 2009A Notes surrendered; provided, however, that so long as the Series 2009A
Notes are issued in the form of global securities as provided in Section 2.11.
hereof, then, in lieu of surrendering the Series 2009A Note being redeemed
in part, the principal amount of the applicable global Series 2009A Note
shall be reduced as and to the extent provided in Section 2.11.4. hereof.

 

Section 2.9.    DENOMINATION.  The Series 2009A Notes shall be issuable
in denominations of $2,000 and integral multiples of $1,000 above that amount.

 

Section 2.10.    CURRENCY.  Principal and interest on the Series 2009A
Notes shall be payable in U.S. Dollars.

 

Section 2.11.    REGISTERED
SECURITIES IN GLOBAL FORM.

 

Section 2.11.1.    The
Series 2009A Notes will be issued in the form of one or more fully
registered global securities, representing the aggregate principal amount of
the Series 2009A Notes, that will be deposited with, or on behalf of, The
Depository Trust Company (“DTC”), and registered in the name of Cede &
Co., the nominee of DTC.

 

Section 2.11.2.    Except
as provided in Section 3.5 of the Indenture, Beneficial Owners of
interests in the Series 2009A Notes may not exchange such interests for
certificated Series 2009A Notes.

 

Section 2.11.3.    In
addition to the legend specified in Section 2.4 of the Indenture, each
certificate evidencing the Series 2009A Notes shall bear the following
legend:

 

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UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

Section 2.11.4.    If
the Series 2009A Notes are redeemed pursuant to Section 2.8. hereof
in whole or in part, the principal amount of the applicable global Series 2009A
Note shall be reduced by the amount of the principal, or portion thereof, so
redeemed and an endorsement shall be made on such Series 2009A Note by the
Trustee to reflect such reduction.

 

Section 2.12.    FORM OF
SERIES 2009A SENIOR NOTES.  The Series 2009A
Notes shall be substantially in the form attached as Exhibit A hereto.

 

Section 2.13.    DEFEASANCE
AND COVENANT DEFEASANCE.  The provisions
of Section 4.4 of the Indenture shall apply to the Series 2009A
Notes.  The provisions of Section 4.5
of the Indenture shall apply to the Series 2009A Notes with respect to the
covenants specified in said Section 4.5 and the covenants set forth in Section 2.6.
of this Supplemental Indenture No. 12.

 

Section 2.14.    REGISTRAR
AND PAYING AGENT.  The Trustee shall
initially serve as Registrar and Paying Agent.

 

Section 2.15.    ADDITIONAL
SERIES 2009A NOTES.  The Company shall, without
the consent of the holders of the Series 2009A Notes, be entitled to issue
additional Series 2009A Notes (the “Additional Notes”) under this
Supplemental Indenture No. 12 which shall have substantially identical
terms to the initial Series 2009A Notes, other than with respect to the
date of issuance, issue price and amount of interest payable on the first
interest payment date applicable thereto. 
The initial Series 2009A Notes and any Additional Notes shall be
treated as a single class for all purposes under this Supplemental Indenture No. 12.

 

ARTICLE 3

 

MISCELLANEOUS PROVISIONS

 

Section 3.1.    The
Indenture, as supplemented and amended by this Supplemental Indenture No. 12,
is in all respects hereby adopted, ratified and confirmed.

 

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Section 3.2.    This
Supplemental Indenture No. 12 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 3.3.    THIS
SUPPLEMENTAL INDENTURE NO. 12 AND EACH SERIES 2009A NOTE SHALL BE DEEMED TO BE
A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture No. 12 to be duly executed, as of the
day and year first written above.

 

	
   

  	
   

  	
  PROTECTIVE LIFE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard J. Bielen

  
	
   

  	
   

  	
  Name:

  	
  Richard J. Bielen

  
	
   

  	
   

  	
  Title:

  	
  Vice Chairman and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Seal)

  	
   

  	
  By:

  	
  /s/ Carl S. Thigpen

  
	
   

  	
   

  	
  Name:

  	
  Carl S. Thigpen

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Investments

  
	
   

  	
   

  	
   

  	
  and Chief Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Harriette Hyche

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Harriette Hyche

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Assistant Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK MELLON TRUST

  
	
   

  	
   

  	
  COMPANY, N.A., as Trustee

  
	
  (Seal)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Charles S. Northen, IV

  
	
   

  	
   

  	
  Name:

  	
  Charles S. Northen, IV

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Stuart E. Statham

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stuart E. Statham

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  	
   

  

 

[Signature Page to Supplemental Indenture No. 12]

 

11

 

 

EXHIBIT A TO

SUPPLEMENTAL INDENTURE NO. 12

 

(FORM OF FACE OF SENIOR NOTE DUE OCTOBER 15, 2019)

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SENIOR NOTE IS IN GLOBAL FORM WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A
NOMINEE OF DTC. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SENIOR NOTES IN CERTIFICATED FORM IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
DTC TO A NOMINEE OF DTC, OR BY A NOMINEE OF DTC TO ANOTHER NOMINEE OF DTC, OR
BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

 

PROTECTIVE LIFE CORPORATION

7.375% Senior Note due October 15, 2019

 

	
  No. 1

  	
   

  	
  $400,000,000

  
	
   

  	
   

  	
  CUSIP:  743674 AX1

  

 

Protective Life Corporation, a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company,” which term
includes any successor corporation under the Indenture (as defined on the
reverse hereof), for value received, hereby promises to pay to Cede & Co.,
or registered assigns, the principal sum of $400,000,000 (Four Hundred Million
and No/100  Dollars), or such
other amount as indicated on the Schedule of Redemptions attached hereto, on October 15,
2019, and to pay interest thereon from October 9, 2009, or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for.  Interest shall be payable on the
Company’s 7.375% Senior Note due October 15, 2019 (“Series 2009A Note”)
semi-annually on April 15 and October 15 of each year (each an “Interest
Payment Date”), commencing on April 15, 2010 at the rate of 7.375% per
annum, until the principal hereof is paid or made available for payment;
PROVIDED that any such installment of interest which is overdue shall bear
interest at the rate of 7.375% per annum (to the extent that the payment of
such interest shall be legally enforceable) from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be
payable on demand.  The amount of
interest payable on any Interest Payment Date shall be computed on the basis of

 

A-1

 

twelve 30-day months and a 360-day year and, for any period that is
shorter than a full calendar month, will be calculated 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 Series 2009A
Note is not a Business Day, then payment of the interest payable on such date
will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect to any such delay), except that, if
such Business Day is in the next succeeding calendar year, such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date. 
The interest so payable on any Interest Payment Date which is punctually
paid or duly provided for on any Interest Payment Date will, as provided in the
Indenture referred to on the reverse hereof, be paid to the Person in whose
name this Series 2009A Note is registered at the close of business on the
Regular Record Date for such Interest Payment Date, which shall be the April 1
or October 1, as the case may be, preceding such Interest Payment
Date.  Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Person in whose name this Series 2009A Note is registered on the relevant
Regular Record Date, and such defaulted interest shall instead be payable to
the Person in whose name this Series 2009A Note is registered on the
Special Record Date or other specified date determined in accordance with the
Indenture and Supplemental Indenture No. 12, referred to on the reverse
hereof.

 

Payment of the principal of and interest on this Series 2009A Note
will be made at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, The City of New York (which shall initially be the
Corporate Trust Office of the Trustee), in same day funds by wire transfer to
an account maintained by the Person entitled thereto as specified in the Register
of Holders of the Series 2009A Notes, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

 

Reference is hereby made to the further provisions of this Series 2009A
Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Series 2009A
Note shall not be entitled to any benefit under the Indenture and Supplemental
Indenture No. 12 referred to on the reverse hereof or be valid or
obligatory for any purpose.

 

A-2

 

IN WITNESS WHEREOF, Protective Life
Corporation has caused this instrument to be executed under its corporate seal.

 

	
  Dated: October 9, 2009

  	
   

  	
   

  
	
  (Corporate Seal)

  	
  PROTECTIVE LIFE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Richard J. Bielen

  
	
   

  	
   

  	
  Vice Chairman and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Carl S. Thigpen

  
	
   

  	
   

  	
  Executive Vice President, Investments

  
	
   

  	
   

  	
  and Chief Investment Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Dated: October 9, 2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK MELLON TRUST

  
	
   

  	
   

  	
   

  	
  COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

A-3

 

(FORM OF REVERSE OF SERIES 2009A NOTE)

 

This Series 2009A Note is one of a duly authorized issue of
securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under a Senior Indenture, dated as of June 1,
1994 (herein, together with all indentures supplemental thereto, including
Supplemental Indenture No. 12, dated as of October 9, 2009, called
the “Indenture”), from the Company to The Bank of New York Mellon Trust
Company, N.A. (herein called the “Trustee,” which term includes any successor
or replacement trustee under the Indenture), to which Indenture reference is
hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This
Security is one of the series designated on the face hereof, limited in
aggregate principal amount to $400,000,000  or such higher principal amount as shall be
outstanding as a result of the issuance of Additional Notes (as defined
herein), and is issued pursuant to Supplemental Indenture No. 12, dated as
of October 9, 2009 from the Company to the Trustee, relating to the
securities of this series (herein called “Supplemental Indenture No. 12”).  Notwithstanding the foregoing, the Company
shall, without the consent of the holders of the Series 2009A Notes, be
entitled to issue additional Series 2009A Notes (the “Additional Notes”)
under this Supplemental Indenture No. 12 which shall have substantially
identical terms to the initial Series 2009A Notes, other than the respect
to the date of issuance, issue price and amount of interest payable on the
first interest payment date applicable thereto. 
The initial Series 2009A Notes and any Additional Notes shall be
treated as a single class for all purposes under Supplemental Indenture No. 12.

 

The Company shall have no obligation to redeem or purchase the
Securities pursuant to any sinking fund.

 

Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2009A
Notes at its sole option, in whole or in part, at any time prior to October 15,
2019 at the Redemption Price (as defined below), together with accrued but
unpaid interest on the principal amount to be redeemed to the redemption date,
subject to the terms and conditions set forth in the Indenture.

 

The “Redemption Price” as to any date of redemption shall be equal to the greater of (i) 100% of the principal amount of the Series 2009A Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009A Notes to be redeemed on such redemption date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”) plus 50 basis points. The Company shall give the Trustee notice of the amount of the applicable Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.
 
The “Treasury Rate” with respect to any Calculation Date shall be (i) the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption

 

A-4

 
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as defined below); provided that if no maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or (ii) if such release (or any successor release) is not published during the week preceding the Calculation Date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.
 
“Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Senior Trustee after consultation with the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment banking institution of national standing appointed by the Trustee after consultation with the Company.
 
“Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term (“Remaining Life”) of the Series 2009A Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2009A Notes.
 
“Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
 
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 5:00 p.m., New York City time, on the Calculation Date.
 
“Reference Treasury Dealer” means each of Banc of America Securities LLC, Barclays Capital Inc., a Primary Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC and two Primary Treasury Dealers selected by the Company, and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.
 

Selection of Series 2009A Notes to be Redeemed.  If less than all the Series 2009A Notes
are to be redeemed, the Trustee shall select the Series 2009A Notes to be
redeemed by lot or by any other method the Trustee shall deem fair and
reasonable.  The Trustee shall make the
selection not more than 60 days before the redemption date from Series 2009A
Notes then outstanding that have not been previously called for
redemption.  The Trustee shall promptly
notify the Company in writing of the Series 2009A Notes selected for
redemption and, in the case of any Series 2009A Note selected for partial
purchase or redemption, the principal amount thereof to be purchased or
redeemed.  The Trustee may select for
redemption portions of the principal of Series 2009A Notes that have
denominations larger than $2,000.  Series 2009A

 

A-5

 

Notes
and portions of Series 2009A Notes that the Trustee selects shall be in
amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to Series 2009A
Notes called for redemption also apply to portions of Series 2009A Notes
called for redemption.

 

Events of Default.  The Indenture contains provisions for
defeasance at any time of the indebtedness on this Security or of certain
restrictive covenants and Events of Default with respect to this Security, in
each case upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Security.

 

If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of at least a majority in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any
such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.  No reference
herein to the Indenture or to Supplemental Indenture No. 12 and no
provision of this Security or of the Indenture or of Supplemental Indenture No. 12
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, and interest on, this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

Transfer or Exchange of Series 2009A Notes.  As provided in the Indenture and subject to
certain limitations as set forth therein and in Supplemental Indenture No. 12,
the transfer of this Security is registrable on the Register, upon surrender of
this Security for registration of transfer at the office or agency of the
Company in any place where the principal of and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company, the Trustee and the Registrar duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in registered form
without coupons in denominations of $2,000 and any integral multiples of $1,000
above that amount.  As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of Securities
of this series of a like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

 

A-6

 

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

 

Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the person in whose name this Security is registered as the owner hereof for
all purposes, whether or not the Security be overdue, and neither the Company,
the Trustee nor any such agent of the Company or the Trustee shall be affected
by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

 

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

 

A-7

 

SCHEDULE OF REDEMPTIONS

 

The
following redemptions of interests in this Global Note have been made:

 

	
  Date
  of

  Redemption

  	
   

  	
  Amount of Decrease

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount of the

  Global Note

  Following Such

  Decrease

  	
   

  	
  Signature of

  Authorized

  Officer

  of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8EXHIBIT 4.3

 

PROTECTIVE LIFE CORPORATION

 

to

 

THE BANK OF NEW YORK MELLON TRUST COMPANY,
N.A., as Trustee

 

SUPPLEMENTAL INDENTURE NO. 13

 

Dated as of October 9, 2009

 

8.450% Senior Notes due October 15, 2039

 

$300,000,000

 

 

PROTECTIVE LIFE CORPORATION

 

SUPPLEMENTAL INDENTURE NO. 13

 

$300,000,000

 

8.450% Senior Notes due October 15, 2039

 

SUPPLEMENTAL INDENTURE NO. 13, dated as of October 9, 2009, from
PROTECTIVE LIFE CORPORATION, a Delaware corporation (the “Company”), to THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as
trustee (the “Trustee”).

 

The Company has heretofore executed and
delivered to The Bank of New York a Senior Indenture, dated as of June 1,
1994 (the “Indenture”), providing for the issuance from time to time of series
of the Company’s Securities.

 

The Company, The Bank of New York and the
Trustee have heretofore entered into that certain Agreement of Resignation,
Appointment and Acceptance effective as of August 25, 2006, providing for
the resignation of The Bank of New York as Trustee under the Indenture and the
appointment of the Trustee as successor to The Bank of New York as Trustee
under the Indenture.

 

The Trustee changed its name to The Bank of
New York Mellon Trust Company, N.A. effective October 1, 2006.

 

Section 3.1 of the Indenture provides
for various matters with respect to any series of Securities issued under the
Indenture to be established in an indenture supplemental to the Indenture.

 

Section 8.1(7) of the Indenture
provides for the Company and the Trustee to enter into an indenture
supplemental to the Indenture to establish the form or terms of Securities of
any series as provided by Sections 2.1 and 3.1 of the Indenture.

 

For and in consideration of the premises and
the issuance of the series of Securities provided for herein, it is mutually
covenanted and agreed as follows for the equal and ratable benefit of the
Holders of the Securities of such series:

 

ARTICLE I

 

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.        This Supplemental Indenture No. 13
constitutes an integral part of the Indenture.

 

Section 1.2.        For all purposes of this Supplemental
Indenture No. 13:

 

 

Section 1.2.1.     Capitalized terms used herein without
definition shall have the meanings specified in the Indenture;

 

Section 1.2.2.     All references herein to Articles and
Sections, unless otherwise specified, refer to the corresponding Articles and
Sections of this Supplemental Indenture No. 13; and

 

Section 1.2.3.     The terms “herein,” “hereof,” “hereunder”
and other words of similar import refer to this Supplemental Indenture No. 13.

 

ARTICLE II

 

THE SERIES 2009B SENIOR NOTES

 

Section 2.1.        TITLE OF THE SECURITIES.  There shall be a series of Securities
designated the 8.450% Senior Notes due October 15, 2039 (the “Series 2009B
Notes”).

 

Section 2.2.        LIMITATION ON AGGREGATE PRINCIPAL
AMOUNT; DATE OF SERIES 2009B NOTES.  The
aggregate principal amount of the Series 2009B Notes shall be limited to
$300,000,000 or such higher principal amount as shall be outstanding as a
result of the issuance of Additional Notes (as defined herein).  Each Series 2009B Note shall be dated
the date of its authentication.

 

Section 2.3.        PRINCIPAL PAYMENT DATES.  The principal on the Series 2009B Notes
Outstanding (together with any accrued and unpaid interest thereon) shall be
payable in a single installment on October 15, 2039.

 

Section 2.4.        INTEREST AND INTEREST RATES.  The rate of interest on each Series 2009B
Note shall be 8.450% per annum, accruing from October 9, 2009 or from the
most recent Interest Payment Date to which interest on such Series 2009B
Note has been paid or duly provided for. 
Interest shall be payable in arrears on each Series 2009B Note
semi-annually on April 15 and October 15 of each year (each an “Interest
Payment Date”), commencing on April 15, 2010.  The interest so payable on any Series 2009B
Note which is punctually paid or duly provided for on any Interest Payment Date
shall be paid to the Person in whose name such Series 2009B Note is
registered at the close of business on the April 1 or October 1, as
the case may be, preceding such April 15 or October 15 (each a “Regular
Record Date”).  The interest so payable
on a Series 2009B Note which is not punctually paid or duly provided for
on any Interest Payment Date shall forthwith cease to be payable to the Person
in whose name such Series 2009B Note is registered on the relevant Regular
Record Date, and such defaulted interest shall instead be payable to the Person
in whose name such Series 2009B Note is registered on the Special Record
Date or other specified date determined in accordance with the Indenture.

 

Section 2.5.        PLACE OF PAYMENT.  The Place of Payment where the Series 2009B
Notes may be presented or surrendered for payment, where the Series 2009B
Notes may be surrendered for registration of transfer or exchange and where
notices and demands to and upon the Company in respect of the Series 2009B
Notes and the Indenture may be served shall be in the Borough of Manhattan, The
City of New York, New York, and the office or agency

 

2

 

maintained by the Company for such purpose shall initially be the
Corporate Trust Office of the Trustee.

 

Section 2.6.        ADDITIONAL COVENANTS.  For the benefit of the Holders from time to
time of the Series 2009B Notes and in addition to the covenants set forth
in Article 9 of the Indenture, the Company further covenants and agrees as
follows:

 

Section 2.6.1.     Limitations
on Disposition of Capital Stock of Restricted Subsidiaries. The
Company will not, and will not permit any Subsidiary to, sell, assign, transfer
or otherwise dispose of any shares of the capital stock of any Restricted
Subsidiary unless the entire capital stock of such Restricted Subsidiary at the
time owned directly or indirectly by the Company and its Subsidiaries shall be
disposed of at the same time for a consideration consisting of cash or other
property which the Board of Directors, as evidenced in a Board Resolution, has
determined to be at least equal to the fair value thereof.  Notwithstanding the foregoing provision, (i) the
Company shall be permitted to sell, assign, transfer or otherwise dispose of
shares of the capital stock of a Restricted Subsidiary (A) to any director
(or any individual nominated to become a director) of such Restricted
Subsidiary but only to the extent ownership of such shares is required as
directors’ qualifying shares for such director or individual and (B) to
any Subsidiary; and (ii) any Restricted Subsidiary shall be permitted to
sell, assign, transfer or otherwise dispose of shares of its capital stock or
the capital stock of any other Restricted Subsidiary (A) to any director
(or any individual nominated to become a director) of such Restricted
Subsidiary but only to the extent ownership of such shares is required as
directors’ qualifying shares for such director or individual, or (B) to
the Company or any Subsidiary.

 

Section 2.6.2.     Limitations
upon Creation of Liens on Capital Stock of Restricted Subsidiaries.

 

(a)        The Company will not, and will not permit
any Restricted Subsidiary to, at any time directly or indirectly, issue,
assume, guarantee or permit to exist any indebtedness secured by a Lien on the
capital stock of any Restricted Subsidiary without making effective provision
whereby the Series 2009B Notes then outstanding (and if the Company so
elects, any other indebtedness ranking on a parity with the Series 2009B
Notes) shall be equally and ratably secured with such indebtedness as to such
property so long as such other indebtedness shall be so secured; provided,
however, that the covenant set forth in this Section 2.6.2. will not be
applicable to Liens (i) on the shares of stock of a subsidiary of a Person
that is merged with or into the Company or a Subsidiary securing debt of such
Person, which debt was outstanding prior to such merger, but only if such
pledge and debt were not incurred in anticipation of such merger, (ii) in
favor of the Company securing debt of a Restricted Subsidiary owed to the
Company, (iii) for taxes or assessments or governmental charges or levies
not then due and delinquent or the validity of which are being contested in
good faith or which are less than $30,000,000, or (iv) created by or
resulting from any litigation or legal proceeding being contested in good faith
or which are less than $30,000,000.

 

(b)        If the Company shall hereafter be
required to secure the Series 2009B Notes equally and ratably with any
other indebtedness pursuant to this Section 2.6.2., (i)

 

3

 

the Company will promptly deliver to the
Trustee an Officers’ Certificate stating that the foregoing covenant has been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel the foregoing covenant has been complied with and that any instruments
executed by the Company or any Restricted Subsidiary in the performance of the
foregoing covenant comply with the requirements of the foregoing covenant and (ii) the
Trustee is hereby authorized to enter into an indenture or agreement supplemental
hereto and to take such action, if any, as it may deem advisable to enable it
to enforce the rights of the Holders of the Series 2009B Notes.

 

Section 2.6.3.     For purposes of this Section 2.6., “Restricted
Subsidiary” shall mean any Subsidiary of the Company with assets greater than
or equal to 20% of all assets of the Company and its Subsidiaries, computed and
consolidated in accordance with generally accepted accounting principles.

 

Section 2.6.4.     For purposes of this Section 2.6., “Lien”
shall mean any mortgage, pledge, lien, charge, security interest, conditional
sale or other title retention agreement or other encumbrance of any nature
whatsoever.

 

Section 2.7.        MODIFICATION OF EVENTS OF DEFAULT.  For the benefit of the Holders from time to
time of the Series 2009B Notes, clause 4 of Section 5.1 of the
Indenture is hereby modified by deleting such clause 4 in its entirety and
replacing it with the following:

 

A default under any mortgage, agreement,
indenture or instrument under which there may be issued, or by which there may
be secured, guaranteed or evidenced any Debt of the Company (including this
Indenture) whether such Debt now exists or shall hereafter be created, in an
aggregate principal amount then outstanding of $25,000,000 or more, which default
(a) shall constitute a failure to pay any portion of the principal of such
Debt when due and payable or (b) shall result in such Debt becoming or
being declared due and payable prior to the date on which it would otherwise
become due and payable, and such acceleration shall not be rescinded or
annulled, or such Debt shall not be paid in full, within a period of 30 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 at least 25% in
aggregate principal amount of the Outstanding Securities of the Series 2009B
Notes, a written notice specifying such event of default and requiring the
Company to cause such acceleration to be rescinded or annulled or to pay in full
such Debt and stating that such notice is a “Notice of Default” hereunder; (it
being understood, however, that the Trustee shall not be deemed to have
knowledge of such default under such agreement or instrument unless either (A) a
Responsible Officer of the Trustee shall have actual knowledge of such default
or (B) a Responsible Officer of the Trustee shall have received written
notice thereof from the Company, from any Holder, from the holder of any such
indebtedness or from the trustee under any such agreement or other instrument);
PROVIDED, HOWEVER, that if such default under such mortgage, agreement,
indenture or instrument is remedied or cured by the Company or waived by the
holders of such indebtedness, then the Event of Default hereunder by reason thereof
shall be deemed likewise to have been thereupon remedied, cured or waived
without further action upon the part of either the Trustee or any of such
Holders; PROVIDED, FURTHER, that the foregoing shall not apply to any secured
Debt under which the obligee has recourse (exclusive of recourse for ancillary
matters such as environmental indemnities, 

 

4

 

misapplication of funds, costs of enforcement
and the like) only to the collateral pledged for repayment so long as the fair
market value of such collateral does not exceed 2% of Total Assets at the time
of the “default.”

 

Section 2.8. REDEMPTION AT THE OPTION OF
THE COMPANY.

 

Section 2.8.1.     Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2009B
Notes at its sole option, in whole or in part, at any time prior to October 15,
2039 at the Redemption Price (as defined below), together with accrued but
unpaid interest on the principal amount to be redeemed to the redemption date,
subject to the terms and conditions set forth in this Section 2.8.

 

Section 2.8.2.     Redemption Price.
 
(a)        The “Redemption Price” as to any date of redemption shall be equal to the greater of (i) 100% of the principal amount of the Series 2009B Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009B Notes to be redeemed on such redemption date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”) plus 50 basis points. The Company shall give the Trustee notice of the amount of the applicable Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.
 
(b)        The “Treasury Rate” with respect to any Calculation Date shall be (i) the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as defined below); provided that if no maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or (ii) if such release (or any successor release) is not published during the week preceding the Calculation Date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.
 
(c)        “Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Senior Trustee after consultation with the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment banking institution of national standing appointed by the Trustee after consultation with the Company.

 

5

 

(d)        “Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term (“Remaining Life”) of the Series 2009B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2009B Notes.
 
(e)        “Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
 
(f)         “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 5:00 p.m., New York City time, on the Calculation Date.
 
(g)        “Reference Treasury Dealer” means each of Banc of America Securities LLC, Barclays Capital Inc., a Primary Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC and two Primary Treasury Dealers selected by the Company, and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.
 

Section 2.8.3.     Notice to Trustee.  If the Company wishes to redeem Series 2009B
Notes pursuant to the terms hereof and of the Series 2009B Notes, it shall
notify the Trustee of the redemption date and the principal amount of Series 2009B
Notes to be redeemed.  The Company shall
give the notice provided for in this Section not less than 45 nor more
than 60 days prior to the redemption date.

 

Section 2.8.4.     Selection of Series 2009B Notes to be Redeemed.  If less than all the Series 2009B Notes
are to be redeemed, the Trustee shall select the Series 2009B Notes to be
redeemed by lot or by any other method the Trustee shall deem fair and
reasonable.  The Trustee shall make the
selection not more than 60 days before the redemption date from Series 2009B
Notes then outstanding that have not been previously called for redemption.  The Trustee shall promptly notify the Company
in writing of the Series 2009B Notes selected for redemption and, in the
case of any Series 2009B Note selected for partial purchase or redemption,
the principal amount thereof to be purchased or redeemed.  The Trustee may select for redemption
portions of the principal of Series 2009B Notes that have denominations
larger than $2,000.  Series 2009B
Notes and portions of Series 2009B Notes that the Trustee selects shall be
in amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to Series 2009B
Notes called for redemption also apply to portions of Series 2009B Notes
called for redemption.

 

Section 2.8.5.     Notice of Redemption.  At least 30 days but not more than 60 days
before a 

 

6

 

redemption
date, the Company shall mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Series 2009B Notes are to be
redeemed at its registered address.

 

(a)        The
notice shall identify the Series 2009B Notes to be redeemed and shall
state:

 

(i)               the
redemption date;

 

(ii)              the
methodology for determination of the Redemption Price;

 

(iii)             if
any Series 2009B Note is being redeemed in part, the portion of the
principal amount of such Series 2009B Note to be redeemed;

 

(iv)             the
name and address of the Paying Agent;

 

(v)              that
the Series 2009B Notes called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price;

 

(vi)             that,
unless the Company defaults in making such redemption payment, interest on Series 2009B
Notes called for redemption ceases to accrue on and after the redemption date;
and

 

(vii)            that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Series 2009B
Notes.

 

(b)        At
the Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense; provided,
however, that the Company shall have delivered to the Trustee, at
least 45 days prior to the redemption date, an Officers’ Certificate requesting
that the Trustee give such notice and setting forth the information to be
stated in such notice as provided in the preceding paragraph (which request may
be revoked by so notifying the Trustee in writing on or before the Business Day
immediately preceding the date requested for the mailing of such notice).

 

Section 2.8.6.     Effect of Notice of Redemption.  Once notice of redemption is mailed in
accordance with the provisions hereof, Series 2009B Notes called for
redemption become irrevocably due and payable on the redemption date at the
Redemption Price.  A notice of redemption
may not be conditional.

 

Section 2.8.7.     Deposit of Redemption Price.

 

(a)        One
Business Day prior to the redemption date, the Company shall deposit with the
Trustee or with the Paying Agent money sufficient to pay the Redemption Price
of, and accrued interest, if any, on all Series 2009B Notes to be redeemed
on that date.  The Trustee or the Paying
Agent shall promptly return to the Company any money deposited with the Trustee
or the Paying Agent by the Company in excess of the amounts necessary to pay
the redemption price of, and accrued interest on, all Series 2009B Notes

 

7

 

to
be redeemed.

 

(b)        If
the Company complies with the provisions of the preceding paragraph, on and
after the redemption date, interest shall cease to accrue on the Series 2009B
Notes or the portions of Series 2009B Notes called for redemption.  If a Series 2009B Note is redeemed on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest shall be paid to the Person in whose
name such Series 2009B Note was registered at the close of business on
such record date.  If any Series 2009B
Notes called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until
such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Series 2009B
Notes and in Section 2.4. hereof.

 

Section 2.8.8.     Series 2009B Notes Redeemed in Part.  Upon surrender of a Series 2009B Note
that is redeemed in part, the Company shall issue and, upon the Company’s
written request, the Trustee shall authenticate for the Holder at the expense
of the Company, a new Series 2009B Note equal in principal amount to the
unredeemed portion of the Series 2009B Notes surrendered; provided, however, that so long as the Series 2009B
Notes are issued in the form of global securities as provided in Section 2.11.
hereof, then, in lieu of surrendering the Series 2009B Note being redeemed
in part, the principal amount of the applicable global Series 2009B Note
shall be reduced as and to the extent provided in Section 2.11.4. hereof.

 

Section 2.9.        DENOMINATION.  The Series 2009B Notes shall be issuable
in denominations of $2,000 and integral multiples of $1,000 above that amount.

 

Section 2.10.      CURRENCY. 
Principal and interest on the Series 2009B Notes shall be payable
in U.S. Dollars.

 

Section 2.11.
REGISTERED SECURITIES IN GLOBAL FORM.

 

Section 2.11.1.   The Series 2009B Notes will be issued in
the form of one or more fully registered global securities, representing the
aggregate principal amount of the Series 2009B Notes, that will be
deposited with, or on behalf of, The Depository Trust Company (“DTC”), and
registered in the name of Cede & Co., the nominee of DTC.

 

Section 2.11.2. Except as provided in Section 3.5
of the Indenture, Beneficial Owners of interests in the Series 2009B Notes
may not exchange such interests for certificated Series 2009B Notes.

 

Section 2.11.3. In addition to the
legend specified in Section 2.4 of the Indenture, each certificate
evidencing the Series 2009B Notes shall bear the following legend:

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS 

 

8

 

REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

Section 2.11.4.   If the Series 2009B Notes are redeemed
pursuant to Section 2.8. hereof in whole or in part, the principal amount of
the applicable global Series 2009B Note shall be reduced by the amount of
the principal, or portion thereof, so redeemed and an endorsement shall be made
on such Series 2009B Note by the Trustee to reflect such reduction.

 

Section 2.12.      FORM OF SERIES 2009B SENIOR
NOTES.  The Series 2009B Notes shall
be substantially in the form attached as Exhibit A hereto.

 

Section 2.13.      DEFEASANCE AND COVENANT DEFEASANCE.  The provisions of Section 4.4 of the
Indenture shall apply to the Series 2009B Notes.  The provisions of Section 4.5 of the
Indenture shall apply to the Series 2009B Notes with respect to the
covenants specified in said Section 4.5 and the covenants set forth in Section 2.6.
of this Supplemental Indenture No. 13.

 

Section 2.14.      REGISTRAR AND PAYING AGENT.  The Trustee shall initially serve as
Registrar and Paying Agent.

 

Section 2.15.      ADDITIONAL SERIES 2009B NOTES.  The Company
shall, without the consent of the holders of the Series 2009B Notes, be
entitled to issue additional Series 2009B Notes (the “Additional Notes”)
under this Supplemental Indenture No. 13 which shall have substantially
identical terms to the initial Series 2009B Notes, other than with respect
to the date of issuance, issue price and amount of interest payable on the
first interest payment date applicable thereto. 
The initial Series 2009B Notes and any Additional Notes shall be
treated as a single class for all purposes under this Supplemental Indenture No. 13.

 

ARTICLE 3

 

MISCELLANEOUS PROVISIONS

 

Section 3.1.        The Indenture, as supplemented and
amended by this Supplemental Indenture No. 13, is in all respects hereby
adopted, ratified and confirmed.

 

Section 3.2.        This Supplemental Indenture No. 13
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 3.3.    THIS SUPPLEMENTAL INDENTURE NO. 13 AND EACH
SERIES 2009B NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF

 

9

 

THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.

 

10

 

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture No. 13 to be duly executed, as of the
day and year first written above.

 

 

	
   

  	
   

  	
   

  	
  PROTECTIVE LIFE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard J. Bielen

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Richard J. Bielen

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  Chairman and 

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Seal)

  	
   

  	
   

  	
  By:

  	
  /s/ Carl S. Thigpen

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Carl S. Thigpen

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Investments 

  and Chief Investment Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Harriette Hyche

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Harriette Hyche

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Assistant Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  THE BANK OF NEW YORK MELLON TRUST 

  COMPANY, N.A., as Trustee

  
	
  (Seal)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Charles S. Northen, IV

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Charles S. Northen, IV

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Stuart E. Statham

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stuart E. Statham

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  	
   

  

 

 

[Signature Page to
Supplemental Indenture No. 13]

 

11

 

EXHIBIT A TO

SUPPLEMENTAL INDENTURE NO. 13

 

(FORM OF FACE OF SENIOR NOTE DUE OCTOBER 15, 2039)

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SENIOR NOTE IS IN GLOBAL FORM WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF DTC OR A
NOMINEE OF DTC. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SENIOR NOTES IN CERTIFICATED FORM IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
DTC TO A NOMINEE OF DTC, OR BY A NOMINEE OF DTC TO ANOTHER NOMINEE OF DTC, OR
BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

 

PROTECTIVE LIFE CORPORATION

8.450% Senior Note due October 15, 2039

 

	
  No. 1

  	
  $300,000,000

  
	
   

  	
  CUSIP: 743674 AY9

  

 

Protective Life Corporation, a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company,” which
term includes any successor corporation under the Indenture (as defined on the
reverse hereof), for value received, hereby promises to pay to Cede & Co.,
or registered assigns, the principal sum of $300,000,000 (Three Hundred Million
and No/100  Dollars), or such
other amount as indicated on the Schedule of Redemptions attached hereto, on October 15,
2039, and to pay interest thereon from October 9, 2009, or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for.  Interest shall be payable on the
Company’s 8.450% Senior Note due October 15, 2039 (“Series 2009B Note”)
semi-annually on April 15 and October 15 of each year (each an “Interest
Payment Date”), commencing on April 15, 2010 at the rate of 8.450% per
annum, until the principal hereof is paid or made available for payment;
PROVIDED that any such installment of interest which is overdue shall bear
interest at the rate of 8.450% per annum (to the extent that the payment of
such interest shall be legally enforceable) from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be
payable on demand.  The amount of
interest payable on any Interest Payment Date shall be computed on the basis of

 

A-1

 

twelve 30-day months and a 360-day year and, for any period that is
shorter than a full calendar month, will be calculated 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 Series 2009B
Note is not a Business Day, then payment of the interest payable on such date
will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect to any such delay), except that, if
such Business Day is in the next succeeding calendar year, such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date. 
The interest so payable on any Interest Payment Date which is punctually
paid or duly provided for on any Interest Payment Date will, as provided in the
Indenture referred to on the reverse hereof, be paid to the Person in whose
name this Series 2009B Note is registered at the close of business on the
Regular Record Date for such Interest Payment Date, which shall be the April 1
or October 1, as the case may be, preceding such Interest Payment
Date.  Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Person in whose name this Series 2009B Note is registered on the relevant
Regular Record Date, and such defaulted interest shall instead be payable to
the Person in whose name this Series 2009B Note is registered on the
Special Record Date or other specified date determined in accordance with the
Indenture and Supplemental Indenture No. 13, referred to on the reverse
hereof.

 

Payment of the principal of and interest on this Series 2009B Note
will be made at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, The City of New York (which shall initially be the
Corporate Trust Office of the Trustee), in same day funds by wire transfer to
an account maintained by the Person entitled thereto as specified in the Register
of Holders of the Series 2009B Notes, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

 

Reference is hereby made to the further provisions of this Series 2009B
Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Series 2009B
Note shall not be entitled to any benefit under the Indenture and Supplemental
Indenture No. 13 referred to on the reverse hereof or be valid or
obligatory for any purpose.

 

A-2

 

IN WITNESS WHEREOF, Protective Life
Corporation has caused this instrument to be executed under its corporate seal.

 

	
  Dated:

  	
  October 9, 2009

  	
   

  	
   

  
	
  (Corporate Seal)

  	
   

  	
  PROTECTIVE LIFE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Richard J. Bielen

  
	
   

  	
   

  	
   

  	
  Vice Chairman and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Carl S. Thigpen

  
	
   

  	
   

  	
   

  	
  Executive Vice President, Investments 

  and Chief Investment Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  October 9, 2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK
  MELLON TRUST 

  
	
   

  	
   

  	
   

  	
  COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Authorized Signatory

  
							

 

A-3

 

(FORM OF REVERSE OF SERIES 2009B NOTE)

 

This Series 2009B Note is one of a duly authorized issue of
securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under a Senior Indenture, dated as of June 1,
1994 (herein, together with all indentures supplemental thereto, including
Supplemental Indenture No. 13, dated as of October 9, 2009, called
the “Indenture”), from the Company to The Bank of New York Mellon Trust
Company, N.A. (herein called the “Trustee,” which term includes any successor
or replacement trustee under the Indenture), to which Indenture reference is
hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This
Security is one of the series designated on the face hereof, limited in
aggregate principal amount to $300,000,000  or such higher principal amount as shall be
outstanding as a result of the issuance of Additional Notes (as defined
herein), and is issued pursuant to Supplemental Indenture No. 13, dated as
of October 9, 2009 from the Company to the Trustee, relating to the
securities of this series (herein called “Supplemental Indenture No. 13”).  Notwithstanding the foregoing, the Company
shall, without the consent of the holders of the Series 2009B Notes, be
entitled to issue additional Series 2009B Notes (the “Additional Notes”)
under this Supplemental Indenture No. 13 which shall have substantially
identical terms to the initial Series 2009B Notes, other than the respect
to the date of issuance, issue price and amount of interest payable on the
first interest payment date applicable thereto. 
The initial Series 2009B Notes and any Additional Notes shall be
treated as a single class for all purposes under Supplemental Indenture No. 13.

 

The Company shall have no obligation to redeem or purchase the
Securities pursuant to any sinking fund.

 

Redemption Right at Company’s Option.  The Company has the right to redeem the Series 2009B
Notes at its sole option, in whole or in part, at any time prior to October 15,
2039 at the Redemption Price (as defined below), together with accrued but
unpaid interest on the principal amount to be redeemed to the redemption date,
subject to the terms and conditions set forth in the Indenture.

 

The “Redemption Price” as to any date of redemption shall be equal to the greater of (i) 100% of the principal amount of the Series 2009B Notes to be redeemed on such redemption date and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Series 2009B Notes to be redeemed on such redemption date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) calculated as of the third Business Day immediately preceding the applicable redemption date (the “Calculation Date”) plus 50 basis points. The Company shall give the Trustee notice of the amount of the applicable Redemption Price promptly after the calculation thereof, and the Trustee shall have no responsibility for such calculation.
 
The “Treasury Rate” with respect to any Calculation Date shall be (i) the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption

 

A-4

 
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as defined below); provided that if no maturity is within three months before or after the Remaining Life (as defined below), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month; or (ii) if such release (or any successor release) is not published during the week preceding the Calculation Date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Calculation Date.
 
“Calculation Agent” means one of the Reference Treasury Dealers (as defined below) appointed by the Senior Trustee after consultation with the Company, or if that firm is unwilling or unable to select the Comparable Treasury Issue, an investment banking institution of national standing appointed by the Trustee after consultation with the Company.
 
“Comparable Treasury Issue” means the U.S. Treasury security selected by the Calculation Agent as having a maturity comparable to the remaining term (“Remaining Life”) of the Series 2009B Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Series 2009B Notes.
 
“Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations (as defined below) for such Calculation Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Calculation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
 
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer (as defined below) and any Calculation Date, the average, as determined by the Calculation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Calculation Agent at 5:00 p.m., New York City time, on the Calculation Date.
 
“Reference Treasury Dealer” means each of Banc of America Securities LLC, Barclays Capital Inc., a Primary Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC and two Primary Treasury Dealers selected by the Company, and their respective successors; provided that, if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer.
 

Selection of Series 2009B Notes to be Redeemed.  If less than all the Series 2009B Notes
are to be redeemed, the Trustee shall select the Series 2009B Notes to be
redeemed by lot or by any other method the Trustee shall deem fair and
reasonable.  The Trustee shall make the
selection not more than 60 days before the redemption date from Series 2009B
Notes then outstanding that have not been previously called for
redemption.  The Trustee shall promptly
notify the Company in writing of the Series 2009B Notes selected for
redemption and, in the case of any Series 2009B Note selected for partial
purchase or redemption, the principal amount thereof to be purchased or
redeemed.  The Trustee may select for
redemption portions of the principal of Series 2009B Notes that have
denominations larger than $2,000.  Series 2009B

 

A-5

 

Notes
and portions of Series 2009B Notes that the Trustee selects shall be in
amounts of $2,000 or integral multiples of $1,000 above that amount.  Provisions of this Indenture that apply to Series 2009B
Notes called for redemption also apply to portions of Series 2009B Notes
called for redemption.

 

Events of Default.  The Indenture contains provisions for
defeasance at any time of the indebtedness on this Security or of certain
restrictive covenants and Events of Default with respect to this Security, in
each case upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Security.

 

If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of at least a majority in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any
such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.  No reference
herein to the Indenture or to Supplemental Indenture No. 13 and no
provision of this Security or of the Indenture or of Supplemental Indenture No. 13
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, and interest on, this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

Transfer or Exchange of Series 2009B Notes.  As provided in the Indenture and subject to
certain limitations as set forth therein and in Supplemental Indenture No. 13,
the transfer of this Security is registrable on the Register, upon surrender of
this Security for registration of transfer at the office or agency of the
Company in any place where the principal of and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company, the Trustee and the Registrar duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in registered form
without coupons in denominations of $2,000 and any integral multiples of $1,000
above that amount.  As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of Securities
of this series of a like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

 

A-6

 

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

 

Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the person in whose name this Security is registered as the owner hereof for
all purposes, whether or not the Security be overdue, and neither the Company,
the Trustee nor any such agent of the Company or the Trustee shall be affected
by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

 

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

 

A-7

 

SCHEDULE OF REDEMPTIONS

 

The
following redemptions of interests in this Global Note have been made:

 

	
  Date of

  Redemption

  	
   

  	
  Amount of Decrease

  in Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount of the

  Global Note

  Following Such

  Decrease

  	
   

  	
  Signature of

  Authorized

  Officer

  of Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8

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