Document:

EXHIBIT 10(e)

SEVERANCE PAY
AGREEMENT

THIS AGREEMENT dated as
of __________, 2001, between THE EMPIRE DISTRICT ELECTRIC COMPANY (the
"Company"), a Kansas corporation, having its principal offices at 602
Joplin Street, Joplin, Missouri, and (the "Executive"), residing at
____________.

WITNESSETH:

WHEREAS, the Company, by
action of its Board of Directors (the "Board"), has adopted The
Empire District Electric Company Change in Control Severance Pay Plan (the
"Plan"), under which the Company intends to
enter into Severance Pay Agreements with certain key executive officers of the
Company or its Subsidiaries; and

WHEREAS, the Executive is
currently a duly elected and acting ____________________ of The Empire District
Electric Company (herein referred to as the "Employing Company"), and
has been designated by the Board as a key executive selected to participate in
the Plan, and with whom the Company has been authorized by the Board to enter
into this Agreement; and

WHEREAS, the Board has
deemed it imperative that the Company be assured of continuity of management in
the event of any actual or threatened Change in Control of the Company; and

WHEREAS, the Company
desires to reward the Executive for his valuable, dedicated service to the
Company and its Subsidiaries should his service be terminated under
circumstances hereinafter described,

NOW, THEREFORE, to assure
the Company of the Executive’s continued dedication and the availability of his
advice and counsel in the event of any such actual or threatened change in
control, to induce the Executive to remain in his current position, and to
reward the Executive for his valuable, dedicated service to the Company and its
Subsidiaries should his service be terminated under circumstances hereinafter
described, and for other good and valuable consideration, the receipt and
adequacy of which each party acknowledges, the Company and the Executive agree
as follows:

 

 

1.              Term of Agreement.  This Agreement shall commence on the date
hereof and shall continue in effect through December 31, ____; provided,
however, that commencing on January 1, ____ and each January 1 thereafter, the
term of this Agreement shall automatically be extended for one additional year
unless, not later than September 30 of the preceding year, the Company shall
have given notice that it does not wish to extend this Agreement; and provided
further that, if a Change in Control of the Company shall have occurred during
the original or extended term of this Agreement, this Agreement shall continue
in effect for a period of thirty-six (36) months beyond the month in which such
Change in Control occurred.  All
capitalized terms used herein shall have the same meaning, unless otherwise
specified, as found in the Plan.

2.              Termination Following a Change in Control of the
Company.

(a)  If a Change in Control of the Company occurs
during the term of this Agreement, the Executive shall be entitled to (i) the
benefits provided in Subsections 3(a) (i), (b) and (c) hereof upon the
Executive’s subsequent Involuntary Termination during the term of this
Agreement, or (ii) the benefits provided in Subsections 3(a) (ii), (b) and (c)
upon the Executive's subsequent Voluntary Termination during the term of this
Agreement.

(b)  If the Executive's employment shall be
terminated following a Change in Control other than pursuant to Section 2(a),
the Employing Company shall pay the Executive his full base salary through the
Date of Termination at the rate in effect at the time Notice of Termination is
given and shall provide any benefits to which the Executive may be entitled
under any other plan, programs and arrangements of the Company or Employing
Company and neither the Company nor the Employing Company shall have any
further obligations to him under this Agreement.

(c)  Any Involuntary Termination of the Executive
by the Company or the Employing Company, other than an Involuntary Termination
at the election of the Executive pursuant to the last paragraph of Section 2.7
of the Plan, shall be communicated by written Notice of Termination by the
Company or by the Employing Company to the Executive.  Any Voluntary Termination by the Executive,
or Involuntary Termination at the election of the Executive pursuant to the
last paragraph of Section 2.7 of the Plan, shall be communicated by written
Notice of Termination by the Executive to the Employing Company.  For purposes of this Agreement, a
"Notice of Termination" shall mean a notice indicating the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances.

 

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(d)  "Date of Termination" means the
date specified in the Notice of Termination, which shall be not more than
ninety (90) days after such Notice of Termination is given; provided, that if
within thirty (30) days after any Notice of Termination is given the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the Termination, the Date of Termination shall be the Date on
which the dispute is finally resolved.

3.     Compensation Upon Involuntary
Termination or Voluntary Termination.

(a)   If the
Executive shall incur an Involuntary Termination or Voluntary Termination,
then:

(i)         In the event of the Executive's
Involuntary Termination, within thirty (30) days following the Executive's Date
of Termination, the Company will pay, or cause the Employing Company to pay, to
the Executive as compensation for services rendered to the Company and its
Subsidiaries, a lump sum cash amount (subject to any applicable payroll or
other taxes required by law to be withheld). 
Such cash amount shall be equal to the Executive's Compensation as
defined in Section 3.1 of the Plan, multiplied by 36; provided, however, that
such payment shall be reduced by the amount paid to the Executive pursuant to
any other severance pay policy of the Company and its Subsidiaries.  The number of months represented by such
multiple shall be considered the "Incremental Period" for purposes of
this Agreement.

(ii)         In
the event the Executive elects a Voluntary Termination, the Company will pay,
or will cause the Employing Company to pay, to the Executive as compensation
for services rendered to the Company and its Subsidiaries, in equal monthly
installments, an amount equal to the quotient determined by dividing the lump
sum amount calculated pursuant to Subsection (a)(i) above by the number of
months in the Incremental Period as defined in (i) above, commencing on the
first day of the month following the Date of Termination. Payments under this
Subsection (a)(ii) shall cease upon the Executive's subsequent employment, including
self-employment in a trade or business in which personal services of the
Executive are a material income-producing factor.

 

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(iii)       If
any payment or benefit received by or in respect of the Executive under the
Plan or any other plan, arrangement or agreement with the Company or any of its
Subsidiaries (determined without regard to any additional payments required
under this Subsection (a)(iii) and Appendix A of the Plan) (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the "Code") (or any similar tax
that may hereafter be imposed) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, being hereinafter collectively referred to as the
"Excise Tax"), the Company shall pay to the Executive with respect to
such Payment at the time specified in Appendix A of the Plan an additional amount
(the "Gross-up Payment") such that the net amount retained by the
Executive from the Payment and the Gross-up Payment, after reduction for any
Excise Tax upon the Payment and any Federal, state and local income and
employment tax and Excise Tax upon the Gross-up Payment, shall be equal to the
Payment.  The calculation and payment of
the Gross-up Payment shall be subject to the provisions of Appendix A of the
Plan.

 

(b)       Special Retirement Benefits.  In addition to any other benefits the
Executive may be legally entitled by contract or pursuant to any plan, program
or arrangement, the Executive will be eligible to receive "Special Retirement
Benefits" as provided herein, on a monthly basis, so that the total
retirement benefit he receives from the Company and its Subsidiaries will equal
the total retirement benefit he would have received under The Empire District
Electric Company Employees' Retirement Plan (or any successor plan) (the
"Retirement Plan") and The Empire District Electric Company
Supplemental Executive Retirement Plan (or any successor plan) (the
"Supplemental Plan") if he had continued in the employ of the Company
and its Subsidiaries for the period from his Termination through the end of the
Incremental Period and his age were the age he would have attained as of the
last day of the Incremental Period.  The
benefits specified in this Subsection (b) will include all ancillary benefits
under the Retirement Plan and Supplemental Plan, such as early retirement and
surviving spouse death benefit rights and benefits available at
retirement.  The amount payable to the
Executive or his spouse hereunder shall equal the excess of:

 

 4
 

 

(i)       the
benefits that would be paid to the Executive or his spouse, if the Incremental
Period is added to his credited service and age under the Retirement Plan and
Supplemental Plan, and his earnings during the Incremental Period are based
upon his earnings during the year in which his Termination occurs (excluding
the cash payment provided in Subsection (a)(i) or (ii)) or, if greater, his
earnings at the rate in effect immediately prior to the date of the Change in
Control (on an annualized basis) over

 

(ii)      the benefit that is payable to the
Executive or his spouse under the Retirement Plan and Supplemental Plan.

The Special Retirement Benefits are to be provided on
an unfunded basis, are not intended to meet the qualification requirements of
Section 401 of the Internal Revenue Code of 1986, as amended (the
"Code") and shall be payable solely from the general assets of the
Company.  Such benefits shall be payable
in the same form as benefits payable under the Retirement Plan.

(c)           Insurance and Other Special
Benefits.  The Executive's
participation in the life, accident, medical and dental insurance plans,
programs and arrangements of the Company and its Subsidiaries provided the
Executive immediately prior to the date of the Change in Control, shall be
continued by the Company for the Incremental Period or until coverage is
available under a new employer's plan providing coverage of the same type, if
earlier, and the Executive shall be considered a regular full-time employee of
the Employing Company during such period for the purposes of such life,
accident, medical and dental insurance plans, programs and arrangements, and the
Executive shall continue to be entitled to all benefits and service credit for
such plans, programs and arrangements (including meeting any age and service
requirements for post-retirement benefits if the Executive would have met such
requirements if he had remained in employment with the Employing Company for
such period).  Such coverage shall be no
less in scope than that provided to the Executive (and covered family members)
at the time of the Change in Control. 
The Executive shall be required to share the cost of any such coverage
with the Employing Company during such period of coverage by continuing to pay
the same percentage of the cost of such coverage that the Executive was
required to pay at the time of the Change in Control.  If, by reason of the requirements for tax
qualification or any other reason, any benefits or service credits under the
foregoing plans, programs and arrangements shall not be payable or provided to
the Executive or his dependents under such plans, programs and arrangements,
the Company shall pay or provide for payment of such benefits and service
credit for such benefits to the Executive or his dependents, beneficiaries or
estate.

 

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(d)           The obligations of the Company to pay
benefits pursuant to this Section 3 upon an Executive's Involuntary or
Voluntary Termination during the term of this Agreement shall survive the
expiration of the term of this Agreement.

4               Litigation Expenses.  In the event of any litigation or other
proceeding between the Company and the Executive with respect to the subject
matter of the Plan and this Agreement and the enforcement of the Executive's
rights there-under, the Company shall reimburse the Executive for all reasonable
costs and expenses relating to such litigation or other proceeding, including
his reasonable attorney's fees and expenses. The obligation of the Company
under this Section 4 shall survive the Termination for any reason of this
Agreement.

5.              Payment Obligations.  The Company's (or Employing Company's)
obligation to pay (or cause to be paid to) the Executive the compensation and
to make the arrangements provided herein shall be absolute and unconditional
and shall not be affected by any circumstances, including, without limitation,
any setoff, counterclaim, recoupment, defense or other right which the Company
or any of its Subsidiaries may have against him or anyone else. All amounts
payable by the Company or other Employing Company hereunder shall be paid
without notice or demand.  Each and every
payment made hereunder by the Company or other Employing Company shall be final
and neither the Company nor any of its Subsidiaries will seek to recover all or
any part of such payment from the Executive or from whomsoever may be entitled
thereto, for any reason whatsoever.  The
Executive shall not be required to mitigate the amount of any payment provided
for in this Agreement by seeking other employment or otherwise.

6.              Agreement Binding on Successors.  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company, by express
written agreement in form and substance satisfactory to the Executive, to
assume and agree to perform and cause to be performed this Agreement in the
same manner and to the same extent that the Company would be required to
perform and cause it to be performed if no such succession had taken
place.  Failure of the Company to obtain
such agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle the Executive to compensation from
the Company in the same amount and on the same terms as he would be entitled
hereunder if he incurred an Involuntary Termination, except that for the
purposes of implementing the foregoing, effective as of the date on which any
such succession becomes effective shall be deemed the Date of Termination. As
used in this Agreement, "the Company" shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
executes and delivers the agreement provided for in this Subsection or which
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law.

 

 6
 

 

7.              Effect of Death or Incapacity
of Executive on Agreement.  This
Agreement shall inure to the benefit of and be enforceable by the Executive's
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If he should die while any amounts would still be payable to him
hereunder if he had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to his devisee, legatee or other designee or, if there be no such designee, to
his estate.

8.              Notices. 
For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

 

 

If to the Company (or the Employing Company), addressed
to:

The Empire District
Electric Company

602 Joplin Street

Joplin, Missouri 64801

Attention: Secretary

or to such other address as any party may have
furnished to the other in writing in accordance herewith, except that notices
of change of address shall be effective only upon receipt.

9.             Miscellaneous.  Nothing in this Agreement shall give the
Executive the right to be retained in the employment of the Employing Company
or affect the right of the Employing Company to dismiss the Executive.  No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing, signed by the Executive and such officer or officers as
may be specifically designated by the Board of the Company.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement. 
The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Missouri.

 

 7
 

 

10.           Amendment.  This Agreement may not be amended without the
prior written consent of the Company and the Executive.

11.           Validity.  The invalidity or unenforceability of any
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.  Any provision in this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating or affecting the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

12.           Prior
Agreements Superseded.  This
Agreement supersedes any Severance Pay Agreement previously entered into
between the Company and the Executive pursuant to the Plan.

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above set forth.

	
  

  	
  THE EMPIRE DISTRICT ELECTRIC COMPANY

  
	
   

  	
  on behalf of itself and the

  
	
   

  	
  Employing Company, if

  
	
   

  	
  any, specified above

  
	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 8Exhibit 4.(m)

	
  Protective Life Insurance Company

  	
   

  	
  P. O. Box 10648

  	
   

  	
  Birmingham, Alabama
  35202-0648

  

 

RIDER SCHEDULE

	
  Contract #

  	
  Owner 1 Name:

  
	
   

  	
   

  
	
  Rider Effective Date: { <Date> }

  	
  Benefit Cost on the Rider Effective Date:
  {0.50%)

  
	
   

  	
   

  
	
  Benefit Base on the Rider Effective Date:
  { $

  	
  }

  	
   

  
	
   

  	
   

  
	
  Initial Benefit Allocation Model: { <name> Model Portfolio }

  

 

LIFETIME GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER

We are amending the Contract to which this rider is attached to add a
lifetime Guaranteed Minimum Withdrawal Benefit (“GMWB”, or “the Benefit”).  The terms and conditions in this rider
supersede any conflicting provision in the Contact beginning on the Rider
Effective Date and continuing until the rider is terminated.  Contract provisions not expressly modified by
this rider remain in full force and effect.

Lifetime Guaranteed Minimum Withdrawal Benefit:  Subject to the terms and conditions of this rider, beginning on the
Benefit Election Date and continuing on each Contract Anniversary thereafter
during the lifetime of a Covered Person, you may take aggregate annual
withdrawals from the Contract that do not exceed the Annual Withdrawal Amount
regardless of the Contract Value at that time.

DEFINITIONS

Annual Withdrawal Amount - The maximum amount that may be withdrawn from the Contract each
Contract Year after the Benefit Election Date without reducing the Benefit
Base.

Benefit Allocation Model - One of the specific model portfolios available as a required Contract
allocation.

Benefit Base - The
amount determined according to the terms of this rider and used to calculate
the Annual Withdrawal Amount and the monthly fee.  The maximum Benefit Base is $5,000,000 (5
million dollars).

Benefit Base Anniversary Value - After the Rider Effective Date, the Contract
Value as of each Contract Anniversary minus Purchase Payments credited to the
Contract on or after the 2nd anniversary of the Rider Effective Date.

Benefit Election Date - The date as of which we first calculate the Annual Withdrawal Amount
and the date on which guaranteed withdrawals may begin.

Benefit Period - The period of time between the Benefit Election Date and the earlier of
the Annuity Commencement Date or the rider termination date.

Covered Person - The person or persons upon whose lives the benefits of this rider are
based.  There may not be more than two
Covered Persons.

RightTimesm - The option to
purchase the Benefit after the Contract’s Effective Date, if we are offering it
at that time.

 1
 

 

GMWB COST AND FEES

Benefit Cost - On
the Rider Effective Date, the annualized Benefit Cost as a percentage of the
Benefit Base is shown in the ‘Schedule’ of this rider. We have the right to
change the Benefit Cost at any time. The new Benefit Cost will be the Benefit
Cost in effect on that date for that option. 
The annualized Benefit Cost will never exceed 0.95% of the Benefit Base.
We will notify you of the new Benefit Cost in writing at the address contained
in our records not less than 30 days prior to the date on which the new Benefit
Cost becomes effective.

You may avoid changes in the Benefit Cost.  We must receive your Written Notice declining
the change before the end of the Valuation Period during which the new Benefit
Cost becomes effective.  However if you
decline a Benefit Cost change, you will no longer be eligible for the Benefit
Base Step-Up on Contract Anniversaries.

Monthly Fee - Beginning
on the Rider Effective Date and continuing monthly until the Benefit
terminates, we will calculate the fee for this rider and deduct that amount
from the Contract Value.  The monthly fee
is calculated as of the end of the Valuation Period that includes the same day
of the month as the Contract Effective Date, or the last Valuation Period of
the month if that date does not occur during the month.  We calculate the monthly fee using the
formula:

Monthly Fee =
[1 – (1 – {Benefit Cost})1/12]
x  Benefit Base as of the calculation
date.

Deducting the Monthly Fee - We deduct the monthly fee as of the Valuation Period immediately following
the Valuation Period during which it was calculated.  The monthly fee is deducted from the
Allocation Options in the same proportion that the value of each bears to the
total Contract Value on that date. 
Deduction of the monthly fee is a partial surrender for the purpose of
determining the Contract Value, but we will not assess a surrender charge on
these deductions and the monthly fee will not reduce any penalty free surrender
amount available under the Contract.

GENERAL PROVISIONS

Restrictions on Allocation and Transfers of Contract Value - We restrict the Contract’s Allocation Options
to one of the available Benefit Allocation Models.  The Benefit Allocation Model you selected on
the Rider Effective Date is shown above.

You may allocate all or part of any Purchase Payment according to the
Benefit Allocation Model or to one or more of the DCA Fixed Accounts available
at that time, subject to the limitations in the ‘Dollar Cost Averaging’
provision in the Contract. We systematically and automatically transfer amounts
allocated to the DCA Fixed Accounts to the Variable Account according to the
Benefit Allocation Model.

You may not transfer Contract Value among the Allocation Options, but
you may change the Benefit Allocation Model by Written Notice.  You may select only one Benefit Allocation
Option from among those available at that time. 
If you change your Benefit Allocation Model, we will re-allocate the
Variable Account Value according to the new Benefit Allocation Model as of end
of the Valuation Period during which we process the change.  In addition, automatic transfers made to
facilitate dollar cost averaging after that date will be allocated according to
the new Benefit Allocation Model.

We rebalance the Variable Account Value to the Benefit Allocation Model
semi-annually based on the Rider Effective Date, unless you instruct us to
rebalance monthly, quarterly or annually.

Partial surrenders and withdrawals including applicable surrender
charges, if any, are deducted from the Allocation Options in the same
proportion that the value of each bears to the total Contract Value on that
date.

 2
 

 

Determining the Benefit Base Prior to the Benefit Election Date - On the Rider Effective Date, the Benefit Base
is equal to the initial Purchase Payment, or the Contract Value as of the end
of the Valuation Period that includes the Rider Effective Date if you purchase
the Benefit by exercising the RightTimesm option.  Thereafter, we increase the Benefit Base
dollar-for-dollar for Purchase Payments credited to the Contract within 2 years
of the Rider Effective Date, if any.  We
reduce the Benefit Base pro-rata for each partial surrender.  The pro-rata reduction for each partial
surrender is the amount that reduces the Benefit Base in the same proportion
that the partial surrender including applicable surrender charges, if any,
reduced the Contract Value as of the Valuation Period during which the partial
surrender was deducted.

Benefit Base Step-Up on Contract Anniversaries - On each Contract Anniversary following the
Rider Effective Date, we compare the Benefit Base to the Benefit Base
Anniversary Value.  If the Benefit Base
Anniversary Value is greater than the Benefit Base, we step-up the Benefit Base
to equal the Benefit Base Anniversary Value as of the end of the Valuation
Period that contains that Contract Anniversary.

Termination - This
rider, every benefit it provides, and deduction of the monthly fee terminate at
the end of the Valuation Period during which any of the following first occur.

	
  1.

  	
  We receive your
  instruction to:

  
	
   

  	
  (a)

  	
  allocate a Purchase Payment to an Allocation Option
  other than a DCA Fixed Account or the Benefit Allocation Model; or,

  
	
   

  	
  (b)

  	
  dollar cost average into an Allocation Option other
  than the Benefit Allocation Model; or,

  
	
   

  	
  (c)

  	
  transfer any Contract Value to an Allocation Option
  other than the Benefit Allocation Model; or,

  
	
   

  	
  (d)

  	
  deduct a partial surrender or withdrawal from a
  specific Allocation Option; or,

  
	
   

  	
  (e)

  	
  stop portfolio
  rebalancing.

  
	
   

  	
   

  	
   

  
	
  2.

  	
  We receive your instruction to terminate this rider
  more than 10 years after its Rider Effective Date.

  
	
   

  	
   

  
	
  3.

  	
  We receive your instruction to change a Covered
  Person after the Benefit Election Date.

  
	
   

  	
   

  
	
  4.

  	
  We receive your instruction to annuitize the Contract.

  
	
   

  	
   

  
	
  5.

  	
  We receive any instruction
  that terminates the Contract to which this rider is attached.

  

 

We will notify you in writing that the rider has terminated and
identify the cause.  If this rider
terminated as a result of a prohibited instruction described in item #1 of this
provision, you may reinstate it within 30 days of the rider termination date unless the rider terminated after
the Benefit Election Date and a Purchase Payment was applied to the Contract
since the rider termination date.

We must receive your Written Notice requesting reinstatement and
instructing us to allocate the Contract Value to a current Benefit Allocation
Model and/or resume portfolio rebalancing within 30 days of this rider’s
termination date.  We will any deduct
fees and make any other adjustments that were scheduled during the period of
termination so that after the reinstatement, the Contract and this rider will
be as though the termination never occurred.

Exercising the RightTimesm Option After the Rider Terminates - If the rider terminates as a result of any of
the reasons in the ‘Terminations’ provision other than annuitization or
termination of the Contract to which it is attached, you may purchase the
Benefit using the  RightTimesm option, if:

1.     we are offering the RightTimesm option
when we receive your request to purchase it; and,

2.     5 years or more have elapsed since this
rider terminated; and,

3.     the oldest Owner or Annuitant will not be
older than age 85 on the new Rider Effective Date; and,

4.     the Contract has not reached the Annuity
Commencement Date.

If this rider terminates because you instruct us to change a Covered
Person, we will waive the 5-year waiting period in described in item #2 of this
provision.

 3
 

 

BENEFIT PERIOD

Establishing the Benefit Election Date - You must establish the Benefit Election Date
to start the Benefit Period and access the guaranteed withdrawals provided by
this rider.  To establish the Benefit
Election Date, you must send a Written Notice that instructs us to calculate
the Annual Withdrawal Amount based on either one or two lives, and include
proof of age for each Covered Person. 
The Benefit Election Date may not be earlier than the date on which the
Covered Person (or the younger of the two Covered Persons) attains age 59 1⁄2,
nor later than the Annuity Commencement Date.

We will not accept additional Purchase Payments on or after the Benefit
Election Date.  Therefore, any Automatic
Purchase Payment Plan in effect on the Benefit Election Date will be terminated
as of that date.

Partial Automatic Withdrawals established prior to the Benefit Period
terminate as of the Benefit Election Date.

Individuals Eligible to be a Covered Person - A Covered Person must be a living person who
is either:

1.               an Owner of the Contract; or,

2.               if the spouse of the sole Owner of the
Contract, the sole Primary Beneficiary.

If there is one Owner, the Owner is the Covered Person.

If there is one Owner and the sole Primary Beneficiary is the Owner’s
spouse, the Owner is the Covered Person if the Annual Withdrawal Amount is
based on one life.  If there is one Owner
and the sole Primary Beneficiary is the Owner’s spouse, both are Covered
Persons if the Annual Withdrawal Amount is based on two lives.

If there are two Owners and they are married to each other, the older
of the two is the Covered Person if the Annual Withdrawal Amount is based on
one life.  If there are two Owners and
they are married to each other, both are Covered Persons if the Annual
Withdrawal Amount is based on two lives.

If there are two Owners and they are not married to each other, only
the older of the two is the Covered Person.

For the purposes of the GMWB, the terms ‘married’ and ‘spouse’ include
bona fide domestic partners in states that afford legal recognition to same-sex
Civil Unions.

Calculating the Annual Withdrawal Amount - We calculate the initial Annual Withdrawal
Amount as of the end of the Valuation Period during which we receive your
Written Notice establishing the Benefit Election Date.  The initial Annual Withdrawal Amount is equal
to the Benefit Base on that date multiplied by the applicable GMWB withdrawal
percentage from the table below.  The
GMWB withdrawal percentage is based on the number and age(s) of the Covered
Person(s) on the Benefit Election Date, and the number of full years that have
elapsed since the Rider Effective Date.

GMWB
WITHDRAWAL PERCENTAGES

	
   

  	
   

  	
  And the Benefit Election Date is:

  	
   

  
	
  Age of (younger) Covered Person 

  	
   

  	
  less than 10 years after

  	
   

  	
  10 years or more after

  	
   

  
	
  on the Benefit Election Date

  	
   

  	
  the Rider Effective Date

  	
   

  	
  the Rider Effective Date

  	
   

  
	
  at least 59 1⁄2 but less
  than 70 (One Covered Person)

  	
   

  	
  5.00

  	
  %

  	
  6.00

  	
  %

  
	
  at least 59 1⁄2 but less
  than 70 (Two Covered Persons)

  	
   

  	
  4.50

  	
  %

  	
  5.50

  	
  %

  
	
  70-years old or more
  (One Covered Person)

  	
   

  	
  6.00

  	
  %

  	
  7.00

  	
  %

  
	
  70-years old or more (Two Covered Persons)

  	
   

  	
  5.50

  	
  %

  	
  6.50

  	
  %

  

 

 4
 

 

During
the Benefit Period, aggregate withdrawals in any Contract Year that do not
exceed the Annual Withdrawal Amount do not reduce the Benefit Base.

We re-calculate the Annual Withdrawal Amount only
on a Contract Anniversary and only if the Benefit Base changed since the prior
Contract Anniversary.  The new Annual
Withdrawal Amount is equal to the Benefit Base on the Contract Anniversary
multiplied by the GMWB withdrawal percentage established on the Benefit Election
Date.

Accessing the Annual Withdrawal Amount - During the Benefit Period, you may request
withdrawals individually or instruct us to send you specific amounts
periodically.  Your Written Notice must
include all the information necessary for us to complete and remit the
requested amounts.

Withdrawals made during the Benefit Period reduce the Contract Value in
the same manner as partial surrenders made prior to the Benefit Election
Date.  We do not assess surrender charges
on aggregate withdrawals during a Contract Year that do not exceed the Annual
Withdrawal Amount.  However, withdrawals
count against any penalty free surrender amounts that would otherwise be
available.

The Annual Withdrawal Amount is not cumulative.  You may take the entire Annual Withdrawal
Amount each Contract Year, but if you do not, the remaining portion does not
carry forward.

Excess Withdrawals - During the Benefit Period any portion of a withdrawal that, when
aggregated with all prior withdrawals during that Contract Year, exceeds the
Annual Withdrawal Amount constitutes an excess withdrawal.  We will not recalculate the Annual Withdrawal
Amount until the next Contract Anniversary, so any subsequent withdrawal taken
that Contract Year is also an excess withdrawal.  We assess applicable surrender charges, if
any, on excess withdrawals.

Each excess withdrawal results in an immediate reduction of the Benefit
Base.  If, immediately after the excess
withdrawal, the Contract Value minus any non-excess portion of the withdrawal
is greater than the Benefit Base, we reduce the Benefit Base by the amount of
the excess withdrawal including applicable surrender charges, if any.  Otherwise, we reduce the Benefit Base by the
same proportion that the excess withdrawal including applicable surrender charges,
if any, reduced the Contract Value as of the Valuation Period during which the
excess withdrawal request was processed.  
If the excess withdrawal including applicable surrender charges, if any,
reduces the Contract Value to $0, the Contract will terminate as of that date.

If you have instructed us to send you all or a portion of the Annual
Withdrawal Amount periodically in specific amounts, an excess withdrawal
automatically terminates those periodic withdrawals.  If any Contract Value remains after the
excess withdrawal, you may resume periodic withdrawals beginning on the next
Contract Anniversary based on the recalculated Annual Withdrawal Amount by
sending us instructions in a Written Notice.

Death of the Covered Person(s) - If the Annual Withdrawal Amount is based on
the life of one Covered Person, this rider terminates upon the Covered Person’s
death.  If the Annual Withdrawal Amount
is based on the lives of two Covered Persons, this rider terminates upon the
death of the last surviving Covered Person.

Spousal Continuation - The surviving spouse of a sole Covered Person who, pursuant to the
Contract’s ‘Payment of the Death Benefit’ provision, continues the Contract and
becomes the new sole Owner may purchase the RightTimesm option
immediately, if we are offering at that time. 
If not purchased immediately, we will waive the 5-year waiting period in
described in item #2 of the ‘Exercising the RightTimesm Option
After the Rider Terminates’ provision. 
However, regardless of when the RightTimesm option
is exercised, only the surviving spouse is eligible to be a Covered Person
under the new rider.

 5
 

 

Annuity Commencement Date - You must begin periodic distributions of the entire interest in the
Contract not later than the Annuity Commencement Date.  If the Benefit Period has begun but you are
not taking periodic withdrawals, we will begin monthly withdrawals of the
Annual Withdrawal Amount on the Annuity Commencement Date.  You may change the frequency of the withdrawals,
but must take the entire Annual Withdrawal Amount available each Contract Year.

If the Benefit Period has not begun, we will notify you in writing of
the upcoming Annuity Commencement Date and request the information necessary to
establish the Benefit Election Date.  If
we have not received your Written Notice with the necessary information and
proof of age for the Covered Person(s) by the Annuity Commencement Date and you
have not selected an Annuity Option, we will begin monthly payments to you
based on the greater of:

1.               the Annual Withdrawal Amount using the
withdrawal percentage associated with One Covered Person and  Owner 1’s age (or the older of Owner 1 and
Owner 2 if there are two Owners of the Contract), and establishing the Annuity
Commencement Date as the Benefit Election Date; or,

2.               the application of the Contract Value plus
any applicable annuitization bonus to Annuity Option B with a 10-year Certain
Period based on the life of the named Annuitant.

If we have not received your Written Notice with the information and
proof of age for the Covered Person(s) by the Annuity Commencement Date but you
have previously selected an Annuity Option, we will begin distributing the
entire interest in the Contract according to the Annuity Option you have
selected.

Signed for the Company and made a part of the Contract as of the Rider
Effective Date.

Protective Life Insurance Company

	
  

  	
   

  
	
  Secretary

  	
   

  

 

 6

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