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EXHIBIT 4(t)    
  

        Draft—May 2, 2003  

 PROTECTIVE LIFE CORPORATION  

to 

THE BANK OF NEW YORK
  (as successor to AmSouth Bank), as Trustee 

SUPPLEMENTAL INDENTURE No. 8  

 Dated as of                         , 20      

        % Subordinated Debentures

Due 20        , Series             

$                   

PROTECTIVE LIFE CORPORATION  

 SUPPLEMENTAL INDENTURE No. 8  

$                  

        % Subordinated Debentures

Due 20        , Series              

        SUPPLEMENTAL
INDENTURE No. 8, dated as of                         , 20       from PROTECTIVE LIFE
CORPORATION, a Delaware
corporation (the "Company"), to AMSOUTH BANK (as successor by merger to AmSouth Bank of Alabama, successor by conversion of charter to AmSouth Bank N.A.), as trustee (the "Trustee"). 

 
 

Recitals    
  

        The Company has heretofore executed and delivered to the Trustee a Subordinated Indenture, dated as of June 1, 1994 as supplemented and amended by
Supplemental Indenture No. 1, dated as of June 9, 1994, Supplemental Indenture No. 2, dated as of August 1, 1994, Supplemental Indenture No. 3, dated as of
April 29, 1997 and Supplemental Indenture No. 4, dated as of November, 1997, Supplemental Indenture No. 5 dated as of August 22, 2001, Supplemental Indenture No. 6
dated as of September 25, 2002 and Supplemental Indenture #7 (as so supplemented and amended, the "Indenture"), providing for the issuance from time to time of series of the Company's
Securities. 

        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 1

Relation to Indenture; Definitions  

        Section 1.1. This Supplemental Indenture No. 8 constitutes an integral part of the Indenture. 

        Section
1.2. For all purposes of this Supplemental Indenture No. 8: 

        (1)  Capitalized
terms used herein without definition shall have the meanings specified in the Indenture; 

        (2)  All
references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture No. 8; and 

        (3)  The
terms "herein", "hereof", "hereunder" and other words of similar import refer to this Supplemental Indenture No. 8. 

 

ARTICLE 2

The Series of Securities  

        Section 2.1. Title of the Securities. There shall be a series of Securities designated the "            % Subordinated
Debentures
Due 20        , Series             " (hereinafter, the "Securities"). 

        Section
2.2. Limitation on Aggregate Principal Amount; Date of Securities. The aggregate principal amount of the Securities shall be limited to
$                        . Each Security shall be dated the date of its authentication. 

        Section
2.3. Principal Payment Dates. Subject to Section 2.6, the principal amount of the Securities Outstanding (together with any accrued and unpaid interest thereon) shall be payable
in a single installment on                         , 20        . 

        Section
2.4. Interest and Interest Rates. The rate of interest on each Security shall be         % per annum, accruing from
                        , 20       and, subject to Section 2.5, interest shall be
payable, in arrears, on March 31, June 30, September 30 and
December 31 of each year (each an "Interest Payment Date"), commencing            , 20  . The amount of interest payable on any Interest Payment Date shall be computed on the basis
of
twelve 30-day months and a 360-day year and, for any period that is shorter than a full 90-day quarter, 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 a Security 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 of 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 Security which is punctually paid or duly provided for on any Interest
Payment Date shall be paid to the Person in whose name such Security is registered at the close of business on the Regular Record Date for such Interest Payment Date, which, for purposes of this
Supplemental Indenture No. 8, shall be the Business Day preceding such Interest Payment Date; provided, that in the event the Securities shall not continue to remain in book-entry only form, the
record dates shall be the March 15, June 15, September 15 and December 15 prior to the applicable Interest Payment Date. The interest so payable
on any Security 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 Security is registered on the
relevant Regular Record Date, and such defaulted interest shall instead be payable to the Person in whose name such Security is registered on the special record date or other specified date determined
in accordance with the Indenture. 

        Section
2.5. Extension of Interest Payment Period. Notwithstanding anything contained herein or in the Indenture to the contrary, the Company shall have the right at any time, and from
time to time, during the term of the Securities to defer payments of interest by extending the interest payment period to the next Interest Payment Date by one or more quarterly periods not exceeding
20 consecutive quarters (each such period, an "Extension Period"), but no such Extension Period may extend beyond
                        ,
20        , or such other date to which the Stated Maturity may have been shortened or extended pursuant to Section 2.6. At the end of any such Extension
Period, the Company shall pay all interest then accrued and unpaid (including any Additional Interest, as hereinafter defined) together with interest thereon compounded quarterly at the rate specified
for the Securities to the extent permitted by applicable law ("Compound Interest"); provided, that during any such Extension Period, (a) the Company shall not declare or pay dividends on, make
any distribution with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to any of its capital stock (other than (i) purchases or acquisitions of shares of the
Company's common stock in connection with the satisfaction by the Company of its obligations under any employee benefit plans or the satisfaction by the Company of its obligation pursuant to any
contract or security requiring it to purchase shares of its common stock, (ii) as a result of a reclassification of the Company's capital stock 

2

 

or the exchange or conversion of one class or series of the Company's capital stock for another class or series of its capital stock, (iii) the purchase of fractional interests in shares of
the Company's capital stock pursuant to an acquisition or the conversion or exchange provisions of such capital stock or the security being converted or exchanged, and (iv) redemptions or
purchases pursuant to the Company's Rights Agreement, dated August 7, 1995, between the Company and The Bank of New York as successor to AmSouth Bank), (b) the Company shall not make any
payment of principal, premium, if any, or interest on or repay, repurchase or redeem any debt securities issued by the Company that rank pari passu with
or junior to the Securities and (c) the Company shall not make any guarantee payments with respect to the foregoing (other than pursuant to the Preferred Securities Guarantee, dated as of
                        , 20       of the Company (the "Guarantee") with respect to
the      % Trust Originated Preferred Securities
(the "Preferred Securities") issued by PLC Capital Trust VI ("PLC Capital"), the Common Securities Guarantee, dated as of
                        ,
20       of the Company (the "Common Guarantee," and together with the Guarantee, the "Guarantees") with respect to the
        % Trust Originated Common Securities (the "Common Securities," and together with the Preferred Securities, the "Trust Securities") issued by PLC Capital, the
Preferred Securities Guarantee Agreement, dated as of                         ,
20      , of the Company, with respect to the
        % Trust Originated Preferred Securities of PLC Capital Trust V and the Common Securities Guarantee Agreement, dated as of
                        , 20      , of the Company, with respect to the
        % Trust Originated Common
Securities of PLC Capital Trust V, the Preferred Securities Guarantee dated as of August 22, 2001 of the Company (the "Series D Preferred Guarantee") with respect to the
71/2% Trust Originated Preferred Securities Series D of PLC Capital Trust III and the Common Securities Guarantee, dated as of August 22, 2001 of the Company (the
"Series D Common Guarantee") with respect to the 71/2% Trust Originated Common Securities of PLC Capital Trust III and the Preferred Securities Guarantee, dated as of
September 25, 2002 of the Company (the "Series E Preferred Guarantee") with respect to the 71/4% Trust Originated Preferred Securities Series E of PLC Capital Trust
IV, and the Common Securities Guarantee dated as of September 25, 2002 of the Company (the "Series E Common Guarantee") with respect to the 71/4% Trust Originated Common
Securities of PLC Capital Trust IV. Prior to the termination of any such Extension Period, the Company may further defer payments of interest by
extending the interest payment period; provided, however, that, such Extension Period, including all such previous and further extensions, may not exceed 20 consecutive quarters or beyond the Stated
Maturity. Upon the termination of any Extension Period and the payment of all amounts then due, the Company may commence a new Extension Period, subject to the terms set forth in this section. No
interest shall be due and payable during any Extension Period, except at the end thereof, but the Company may prepay at any time all or any portion of the interest accrued during an Extension Period.
If the Institutional Trustee (as defined in the Amended and Restated Declaration of Trust of PLC Capital, dated as of
                        ,
20       (the "Declaration of Trust")) shall be the sole holder of the Securities, the Company shall give the Regular Trustees (as defined in the Declaration of
Trust) and the Institutional Trustee (as defined in the Declaration of Trust), notice of its selection of such Extension Period one Business Day prior to the earlier of (i) the date
distributions on the Preferred Securities are payable or (ii) the date the Regular Trustees are required to give notice of the record date or the date such distribution is payable to the New
York Stock Exchange (or other applicable self-regulatory organization) or to holders of the Preferred Securities, but in any event at least one Business Day before such record date. If the
Institutional Trustee shall not be the sole holder of the Securities, the Company shall give the holders of the Securities notice of its selection of such Extension Period at least 10 Business
Days prior to the earlier of (i) the Interest Payment Date or (ii) the date upon which the Company is required to give notice of the record or payment date of such interest payment to
the New York Stock Exchange (or other applicable self-regulatory organization) or to holders of the Securities. The quarter in which any notice is given pursuant to this Section 2.5 shall be
counted as one of the 20 quarters permitted in the maximum Extension Period permitted hereunder. 

3

 

        Section
2.6. Shortening or Extension of Stated Maturity. Notwithstanding anything contained herein or in the Indenture to the contrary, the Company shall have the right to
(i) shorten the Stated Maturity of the principal of the Securities at any time to any date not earlier than
                        ,
20        , and (ii) extend the Stated Maturity of the principal of the Securities at any time at its election for one or more periods, but in no event to a
date later                         , 20      ; provided that, if the Company elects to
exercise its right to extend the Stated Maturity of the
principal of the Securities pursuant to clause (ii), above, at the time such election is made and at the time of extension (A) the Company is not in bankruptcy, otherwise insolvent or in
liquidation, (B) the Company is not in default in the payment of any interest or principal on the Securities, (C) in the case of the Securities held by PLC Capital, PLC Capital is not in
arrears on payments of Distributions (as defined in the Declaration of Trust) on the Preferred Securities and no deferred Distributions are accumulated and (D) the Securities are rated not less
than BBB- by Standard & Poor's Ratings Services or Baa3 by Moody's Investors Service, Inc. or the equivalent by any other nationally recognized statistical rating organization; provided, further, that
the Company may at any time irrevocably waive its right to extend the Stated Maturity date. In the event the Company elects to shorten or extend the Stated Maturity of the Securities or to irrevocably
waive its right to extend the Stated Maturity of the Securities, it shall give notice to the Trustee, and the Trustee shall give notice of such shortening or extension or waiver to the Holders of the
Securities, no less than 30 and no more than 90 days prior to the effectiveness thereof. 

        Section
2.7. Place of Payment. The Place of Payment where the Securities issued in certificated form may be presented or surrendered for payment, where such Securities may be surrendered
for registration of transfer or exchange and where notices and demands to and upon the Company in respect of such Securities and the Indenture may be served shall be the Corporate Trust Office of the
Trustee; provided, however, that payment of interest may be made at the option of the Company by
checks mailed to the Holders at such addresses as shall appear in the Register. Notwithstanding the foregoing, so long as the Holder of any Securities is the Institutional Trustee, the payment of the
principal of and interest (including Compound Interest and Additional Interest, if any) on such Securities held by the Institutional Trustee will be made at such place and to such account as may be
designated by the Institutional Trustee. 

        Section
2.8. Redemption. Subject to the terms and conditions of Article 10 of the Indenture: 

        (1)  Optional
Redemption. The Company may redeem the Securities in whole at any time or in part from time to time, in each case on or after
                        , 20        , but prior to the Stated Maturity, upon
not less than 30 nor more than 60 days' notice, at a redemption
price equal to 100% of the principal amount of the Securities to be redeemed plus any accrued and unpaid interest, including Additional Interest, if any, to the date fixed for redemption (the
"Redemption Price"). 

        (2)  The
Company will have the right at any time to dissolve PLC Capital and cause the Securities to be distributed to the holders of the Trust Securities in accordance with
the Declaration of Trust. 

        (3)  Tax
Event Redemption. "Tax Event" means the receipt by the Company of an opinion of nationally recognized independent tax counsel experienced in such matters to the
effect that, as a result of (i) any amendment to, or change (including any announced prospective change) in, on or after the day before the date of issuance of the Preferred Securities under
the Declaration, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein or (ii) any interpretation or application of,
or pronouncement with respect to, such laws or regulations by any legislative body, court, governmental agency or regulatory authority, which amendment or change is effective or which interpretation,
application or pronouncement is announced on or after the day before the date of issuance of the Preferred 

4

 

Securities under the Declaration, there is more than an insubstantial increase in the risk (x) that PLC Capital is, or will be within 90 days of the date thereof, subject to United States
federal income tax with respect to income received or accrued on the Securities and that PLC Capital would be subject to United States federal income tax if the Securities were distributed to the
holders of the Trust Securities in liquidation of such holders' interests in PLC Capital pursuant to the exercise by the Company of its right to dissolve PLC Capital, (y) that interest payable
by the Company on the Securities is not, or within 90 days of the date thereof, will not be, deductible, in whole or in part, for United States federal income tax purposes, even if the Securities were
distributed to the holders of the Trust Securities in liquidation of such holders' interests in PLC Capital pursuant to the exercise by the Company of its right to dissolve PLC Capital or
(z) that PLC Capital is, or will be within 90 days of the date thereof, subject to more than a de minimis amount of other taxes, duties or other
governmental charges and that PLC Capital would be subject to more than a de minimis amount of taxes, duties or other governmental charges if the
Securities were distributed to the holders of the Trust Securities in liquidation of such holders' interests in PLC Capital pursuant to the exercise by the Company of its right to dissolve PLC
Capital. 

        If,
at any time, a Tax Event shall occur and be continuing, the Company shall have the right, upon not less than 30 nor more than 60 days notice, to redeem the Securities in whole or in
part, for cash in the amount of the Redemption Price, within 90 days following the occurrence of such Tax Event, and, following such redemption, Trust Securities with an aggregate liquidation amount
equal to the aggregate principal amount of the Securities so redeemed shall be redeemed by PLC Capital at the Redemption Price on a pro rata basis; provided, however, that if at the time there is
available to the Company or the Trust the opportunity to eliminate, within such 90 day period, the Tax Event by taking some ministerial action, such as filing a form or making an election or pursuing
some other similar reasonable measure that has no adverse effect on PLC Capital, the Company or the holders of the Trust Securities, the Company or PLC Capital will pursue such measure in lieu of a
redemption. 

        (4)  The
Securities are not entitled to the benefit of any sinking fund. 

        (5)  If
Securities are distributed to the holders of the Preferred Securities, (i) the Company will use its best efforts to cause the Securities to be listed on the
New York Stock Exchange or on such other exchange as the Preferred Securities are then listed, and (ii) the Indenture, this Supplemental Indenture No. 8 and the terms of the Securities
may, thereafter, be modified or amended with the consent of not less than 66-2/3% in principal amount of the Securities at any time outstanding, provided, however, that no such modification or
amendment may, without the consent of the Holder of each Security affected thereby, (a) extend the stated maturity of the principal of any Security (other than as provided in Section 2.6
of this Supplemental Indenture No. 8), or reduce the principal amount thereof or reduce the rate or extend the time of payment of interest thereon (other than as provided in Section 2.5
or this Supplemental Indenture No. 8), or reduce any amount payable on redemption thereof or change the currency in which the principal thereof or interest thereon is payable or impair the
right to institute suit for the enforcement of any payment on any Security when due or (b) reduce the aforesaid principal amount of Securities, the consent of the Holders of which is required
for any such modification. 

        Section 2.9.
Preferred Security Holders' Rights. If an Event of Default constituting the failure to pay interest or principal on the Debentures on the date such interest or
principal is otherwise payable has occurred and is continuing, then a holder of Preferred Securities may directly institute a proceeding for enforcement of payment to such holder directly of the
principal of or interest on the Securities having a principal amount equal to the aggregate liquidation amount of the Preferred Securities of such holder on or after the respective due date specified
in the Securities. The holders of Preferred Securities will not be able to exercise directly any other remedy available to the holders of the 

5

 

Securities under this Supplemental Indenture No. 8 or under the Indenture unless the Institutional Trustee fails to do so. 

        Section
2.10. Additional Covenants. The Company agrees that if (i) there shall have occurred any event that would constitute an Event of Default (as defined herein) or
(ii) the Company shall be in default with respect to its payment of any obligations under the Guarantee or Common Guarantee, or (iii) the Company shall have given notice of its election
to defer payments of interest on such Securities by extending the interest payment period as provided in this Supplemental Indenture No. 8 and such
period, or any extension thereof, shall be continuing, then (a) the Company shall not declare or pay any dividend on, make any distribution with respect to, or redeem, purchase, acquire or make
a liquidation payment with respect to any of its capital stock (other than (i) purchases or acquisitions of shares of the Company's common stock in connection with the satisfaction by the Company of
its obligations under any employee benefit plans or the satisfaction by the Company of its obligation pursuant to any contract or security requiring it to purchase shares of its common stock,
(ii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of its
capital stock, (iii) the purchase of fractional interests in shares of the Company's capital stock pursuant to an acquisition or the conversion or exchange provisions of such capital stock or
the security being converted or exchanged, and (iv) redemptions or purchases pursuant to the Company's Rights Agreement, dated August 7, 1995, between the Company and AmSouth Bank of
Alabama as Rights Agent), (b) the Company shall not make any payment of principal, premium, if any, or interest on or repay, repurchase or redeem any debt securities issued by the Company that
rank pari passu with or junior to the Securities and (c) the Company shall not make any guarantee payments with respect to the foregoing (other
than pursuant to either of the Guarantees, the Series D Guarantees or the Series E Guarantees). 

        The
Company agrees (i) to directly or indirectly maintain 100% ownership of the Common Securities; provided, however, that any permitted successor of the Company under the
Indenture may succeed to the Company's ownership of such Common Securities, (ii) not to voluntarily terminate, wind-up or liquidate PLC Capital, except (a) in connection with a
distribution of Securities to the holders of the Preferred Securities in liquidation of PLC Capital, or (b) in connection with certain mergers, consolidations or amalgamations permitted by the
Declaration of Trust and (iii) to use its reasonable efforts, consistent with the terms and provisions of the Declaration of Trust, to cause PLC Capital to remain a grantor trust and not to be
classified as an association taxable as a corporation for United States federal income tax purposes. 

        Section
2.11. Denomination. The Securities shall be issuable in denominations of $1,000 and integral multiples thereof. 

        Section
2.12. Currency. Principal and interest on the Securities shall be payable in Dollars. 

        Section
2.13. Registered Securities; Form. Except as provided in Section 2.14, the Securities shall be issued as Registered Securities, without coupons and shall be registered in the
name of Wilmington Trust Company, as Institutional Trustee, and its permitted registered assigns. The Securities shall be substantially in the form attached as Exhibit A hereto. 

        Section
2.14. Global Securities Upon Liquidation of Trust. 

        (a)  If,
in accordance with the Declaration of Trust, PLC Capital is to be dissolved and the Securities held by the Institutional Trustee are to be distributed to the holders
of the Trust Securities: 

        (i)    the
Securities in certificated form shall be presented to the Trustee by the Institutional Trustee in exchange for a global Security in an aggregate principal amount
equal to the aggregate principal amount of all outstanding Securities (a "Global Security") to be registered in the name of the Depository (as defined in the Declaration of Trust), or its nominee, and
delivered by the Trustee to the Depository for crediting to the accounts of its participants pursuant to the 

6

 

instructions of the Regular Trustees (as defined in the Declaration of Trust). The Company upon any such presentation shall execute a Global Security in such aggregate principal amount and deliver
the same to the Trustee for authentication and delivery in accordance with the Indenture and this Supplemental Indenture No. 8. Payments on Securities issued as Global Securities will be made
to the Depository; and 

        (ii)  if
any Preferred Securities are held in non book-entry certificated form, the Securities in certificated form may be presented to the Trustee by the Institutional
Trustee and any Preferred Security Certificate (as defined in the Declaration of Trust) which represents Preferred Securities other than Preferred Securities held by the Clearing Agency (as defined in
the Declaration of Trust) or its nominee ("Non Book-Entry Preferred Securities") will be deemed to represent beneficial interests in Securities presented to the Trustee by the Institutional Trustee
having an aggregate principal amount equal to the aggregate liquidation amount of the Non Book-Entry Preferred Securities until such Preferred Security Certificates are presented to the Registrar for
transfer or reissuance at which time such Preferred Security Certificates will be canceled and a Security, registered in the name of the holder of the Preferred Security Certificate or the transferee
of the holder of such Preferred Security Certificate, as the case may be, with an aggregate principal amount equal to the aggregate liquidation amount of the Preferred Security Certificate canceled,
will be executed by the Company and delivered to the Trustee for authentication and delivery in accordance with the Indenture and this Supplemental Indenture No. 8. On issue of such Securities,
Securities with an equivalent aggregate principal amount that were presented by the Institutional Trustee to the Trustee will be deemed to have been canceled. 

        (b)  Unless
and until it is exchanged for the Securities in registered form, a Global Security may be transferred, in whole but not in part, only to another nominee of the
Depository, or to a successor Depository selected or approved by the Company or to a nominee of such successor Depository. 

        (c)  If
at any time the Depository notifies the Company that it is unwilling or unable to continue as Depository or if at any time the Depository for such series shall no
longer be registered or in good standing under the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, and a successor Depository for such series is not appointed
by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, the
Company will execute, and, subject to Article III of the Indenture, the Trustee, upon written notice from the Company, will authenticate and deliver the Securities in definitive registered form
without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security in exchange for such Global Security. In addition, the Company
may at any time determine that the Securities shall no longer be represented by a Global Security. In such event the Company will execute, and subject to Section 3.3 of the Indenture, the
Trustee, upon receipt of an Officer's Certificate evidencing such determination by the Company, will authenticate and deliver the Securities in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security in exchange for such Global Security. Upon the exchange of the Global Security for
such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued
in exchange for the Global Security shall be registered in such names and in such authorized denominations as the Depository, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Depository for delivery to the Persons in whose names such Securities are so registered. 

        Section
2.15. Defeasance and Covenant Defeasance. The provisions of Sections 4.4 and 4.5 of the Indenture shall apply to the Securities. 

7

 

        Section
2.16. Registrar and Paying Agent. The Trustee shall initially serve as Registrar and Paying Agent. 

        Section
2.17. Additional Provisions Regarding Amendments. So long as the Holder of the Securities is PLC Capital, the terms of the Securities may be amended by mutual consent of the
Company and PLC Capital in the manner they shall agree; provided, however, that, so long as any of the Preferred Securities remain outstanding, no such amendment shall be made that adversely affects
the holders of the Preferred Securities, no termination of the Securities shall occur, and no Event of Default or compliance with any covenant under the Securities may be waived by PLC Capital,
without the prior approval of the holders of at least 66-2/3% in liquidation preference of all Preferred Securities then outstanding, in writing or at a duly constituted meeting of such holders. 

        Section
2.18. Additional Provisions Regarding Assignment. The Company shall have the right at all times to assign any of its rights or obligations under the Securities to a direct or
indirect wholly-owned subsidiary of the Company; provided, however, that, in the event of any such assignment, the Company shall remain jointly and severally liable for all such obligations. So long
as PLC Capital is the Holder of the Securities, PLC Capital may not assign any of its rights under the Securities, other than in connection with a merger or consolidation or sale of assets or exchange
permitted under the terms of the Preferred Securities. Subject to the foregoing, the Securities shall be binding upon and inure to the benefit of the Company and PLC Capital and their respective
permitted successors and assigns. Any assignment by the Company or PLC Capital in contravention of such provisions will be null and void. 

        Section
2.19. Miscellaneous Expenses. 

        (a)  In
connection with the offering, sale and issuance of the Securities to the Institutional Trustee and in connection with the sale of the Trust Securities by PLC Capital,
the Company, in its capacity as borrower with respect to the Securities, shall pay (i) all costs and expenses relating to the offering, sale and issuance of the Trust Securities and the
Securities, including commissions to the underwriters payable pursuant to the Purchase Agreement and compensation of the Trustee under the Indenture, (ii) all costs and expenses of PLC Capital
(including, but not limited to, costs and expenses relating to the organization of PLC Capital, the offering sale and issuance of the Trust Securities (including commissions to the underwriters in
connection therewith), the fees and expenses of the Institutional Trustee and the Delaware Trustee, the costs and expenses relating to the operation of the PLC Capital, including, without limitation,
costs and expenses of accountants, attorneys, statistical or bookkeeping services, expenses for printing and engraving and computing or accounting equipment, paying agent(s), registrar(s), transfer
agent(s), duplicating, travel and telephone and other telecommunications expenses and costs and expenses incurred in connection with the acquisition, financing, and disposition of PLC Capital's
assets), and (iii) the enforcement by the Institutional Trustee (as defined in the Declaration of Trust) of the rights of the holders of the Preferred Securities. The Company fully and
unconditionally guarantees the payment of such expenses. 

        (b)  If
at any time PLC Capital shall be required to pay any taxes, duties, assessments or governmental charges of whatever nature (other than withholding taxes) imposed by
the United States, or any other domestic taxing authority, then, in any such case, the Company agrees to pay, as additional interest ("Additional Interest") such additional amounts as shall be
required so that the net amounts received and retained by PLC Capital with respect to the Securities after paying any such taxes, duties, assessments or other governmental charges, as well as all
liabilities, costs and expenses of PLC Capital with respect to any such items, will be not less than the amounts PLC Capital would have received had no such taxes, duties, assessments or other
governmental charges been imposed and no such liabilities, costs and expenses with respect thereto been incurred. 

8

 

ARTICLE 3

Miscellaneous Provisions  

        Section 3.1. The Indenture, as supplemented and amended by this Supplemental Indenture No. 8, is in all respects hereby adopted, ratified and confirmed. 

        Section
3.2. This Supplemental Indenture No. 8 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. 8 AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 

9

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 8 to be duly executed, as of the day and year first written above. 

	 	 	PROTECTIVE LIFE CORPORATION
	
 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	[Seal]	 	 	 	 
	
Attest:	
 	

 	
 	

 
	Name:	 	 	 	 
	Title:	 	 	 	 
	

 	
 	
THE BANK OF NEW YORK, as Trustee
	
 	
 	

By:	
 	

The Bank of New York Trust Company of Florida, N.A., as Agent
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Authorized Signatory
	[Seal]	 	 	 	 
	
Attest:	
 	

 	
 	

 
	Name:	 	 	 	 
	Title:	 	 	 	 

10

 
 

Exhibit A    
  

        FORM OF FACE OF SERIES              SUBORDINATED DEBENTURE  

        THIS SERIES              SUBORDINATED DEBENTURE IS REGISTERED IN THE NAME OF WILMINGTON TRUST COMPANY, AS INSTITUTIONAL
TRUSTEE,
AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF OTHER THAN AS PERMITTED IN THE SUPPLEMENTAL INDENTURE NO. 8 DATED AS OF
                        ,
20    , A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY. 

ARTICLE VIII

FORM OF DEBENTURE  

        [IF THE DEBENTURE IS TO BE A GLOBAL SECURITY INSERT—This  

        Subordinated Debenture is Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of a Depository or a nominee
of the Depository. This Subordinated Debenture is exchangeable for Subordinated Debentures registered in the name of a person other than the Depository or its nominee only in the limited circumstances
described in the Indenture, and no transfer of this Subordinated Debenture (other than a transfer of this Subordinated Debenture as a whole by the Depository to a nominee of the Depository or by a
nominee of the Depository to the Depository or another nominee of the Depository) may be registered except in limited circumstances. 

        Unless
this Subordinated Debenture is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) to the issuer or its agent
for registration of transfer, exchange or payment, and any Subordinated Debenture issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of the
Depository Trust Company and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.] 

PROTECTIVE LIFE CORPORATION  

        % Subordinated Debentures

Due                         , 20        , Series
             

	No. 1	 	$                        

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                         , the principal sum of
$                         on
                        ,
20         (such date, and any other such other date to which the stated maturity of this Subordinated Debenture may be shortened or extended, as described below, is
hereinafter referred to as the "Stated Maturity") and to pay interest thereon from. Interest shall be payable on this Subordinated Debenture, in arrears, on March 31, June 30,
September 30 and December 31 of each year (each an "Interest Payment Date") commencing                         ,
20    , at the
rate of       % 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         % 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; provided further that, notwithstanding anything contained in the Indenture and Supplemental Indenture
No. 8 (as defined on the reverse hereof) to the contrary, the Company shall have the right at any time, and from time to time, during the term of this Subordinated Debenture to defer payments
of interest by extending the interest payment period to the next Interest Payment Date by one or more quarterly periods not exceeding 20 consecutive quarters (each such period, an "Extension Period"),
but no such Extension Period may extend beyond                         ,
20        , or such other date to which the Stated Maturity may have
been 

 

shortened or extended as described below. At the end of any such Extension Period, the Company shall pay all interest then accrued and unpaid (including any Additional Interest, as hereinafter
defined) together with interest thereon compounded quarterly at the rate specified for this Subordinated Debenture to the extent permitted by applicable law; provided, that during any such Extension
Period, (a) the Company shall not declare or pay dividends on, make any distribution with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to any of its
capital stock (other than (i) purchases or acquisitions of shares of the Company's common stock in connection with the
satisfaction by the Company of its obligations under any employee benefit plans or the satisfaction by the Company of its obligation pursuant to any contract or security requiring it to purchase
shares of its common stock, (ii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another
class or series of its capital stock, (iii) the purchase of fractional interests in shares of the Company's capital stock pursuant to an acquisition or the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, and (iv) redemptions or purchases pursuant to the Company's Rights Agreement, dated August 7, 1995, between the Company and The
Bank of New York (as successor to AmSouth Bank), (b) the Company shall not make any payment of principal, premium, if any, or interest on or repay, repurchase or redeem any debt securities
issued by the Company that rank pari passu with or junior to the Securities (as defined in Supplemental Indenture No. 8) and (c) the Company
shall not make any guarantee payments with respect to the foregoing (other than pursuant to the Preferred Securities Guarantee, dated as of
                        ,
20     of the Company (the "Guarantee") with respect to the         % Trust Originated Preferred Securities (the "Preferred
Securities") issued by PLC Capital Trust VI ("PLC Capital"), the Common Securities Guarantee, dated as of
                        , 20     of
the Company (the "Common Guarantee," and together with the Guarantee, the "Guarantees") with respect to the         % Trust Originated Common Securities (the "Common
Securities," and together with the Preferred Securities, the "Trust Securities") issued by PLC Capital, the Preferred Securities Guarantee Agreement, dated as of
                        , 20    , of the Company, with respect to the
        % Trust Originated Preferred
Securities of PLC Capital Trust V and the Common Securities Guarantee Agreement, dated as of                         ,
20    , of the
Company, with respect to the         % Trust Originated Common Securities of PLC Capital Trust V (together, the "PLC V         %
TOPrS Guarantees"), the Preferred Securities Guarantee dated as of August 22, 2001 of the Company (the "Series D Preferred Guarantee") with respect to the 71/2% Trust
Originated Preferred Securities Series D of PLC Capital Trust III and the Common Securities Guarantee, dated as of August 22, 2001 of the Company (the "Series D Common Guarantee")
with respect to the 71/2% Trust Originated Common Securities of PLC Capital Trust III and the Preferred Securities Guarantee, dated as of September 25, 2002 of the Company (the
"Series E Preferred Guarantee") with respect to the 71/4% Trust Originated Preferred Securities Series E of PLC Capital Trust IV, and the Common Securities Guarantee dated
as of September 25, 2002 of the Company (the "Series E Common Guarantee") with respect to the 71/4% Trust Originated Common Securities of PLC Capital Trust IV. Prior to
the termination of any such Extension Period, the Company may further defer payments of interest by extending the interest payment period; provided, however, that, such Extension Period, including all
such previous and further extensions, may not exceed 20 consecutive quarters or beyond the Stated Maturity. Upon the termination of any Extension Period and the payment of all amounts then due, the
Company may commence a new Extension Period, subject to the terms set forth below. No interest shall be due and payable during any Extension Period, except at the end thereof, but the Company may
prepay at any time all or any portion of the interest accrued during any Extension Period. If the Institutional Trustee (as defined in the Amended and Restated Declaration of Trust of PLC Capital (the
"Declaration of Trust") shall be the sole holder of the Securities, the Company shall give the Regular Trustees (as defined in the Declaration of Trust) and the Institutional Trustee (as defined in
the Declaration of Trust), notice of its selection of such Extension Period one Business Day prior to the earlier of (i) the date distributions on the Preferred Securities are payable or
(ii) the date the Regular Trustees are required to give notice of the record date or the date such distribution is payable to the 

2

 

New York Stock Exchange (or other applicable self-regulatory organization) or to holders of the Preferred Securities, but in any event at least one Business Day before such record date. If the
Institutional Trustee shall not be the sole holder of the Securities, the Company shall give the holders of the Securities notice of its selection of such Extension Period at least 10 Business Days
prior to the earlier of (i) the Interest Payment Date or (ii) the date upon which the Company is required to give notice of the record or payment date of such interest payment to the New
York Stock Exchange (or other applicable self-regulatory organization) or to holders of the Securities. The quarter in which any
notice is given in accordance with the foregoing provisions shall be counted as one of the 20 quarters permitted in the maximum Extension Period permitted hereunder. 

        The
Company shall have the right to (i) shorten the Stated Maturity of the principal of this Subordinated Debenture at any time to any date not earlier than
                        , 20        , and (ii) extend the stated
maturity of the principal of this Subordinated Debenture at any time at
its election for one or more periods, but in no event to a date later than                         ,
20        ; provided that, if the Company
elects to exercise its right to extend the Stated Maturity of the principal of this Subordinated Debenture pursuant to clause (ii), above, at the time such election is made and at the time of
extension (A) the Company is not in bankruptcy, otherwise insolvent or in liquidation, (B) the Company is not in default in the payment of any interest or principal on the Securities,
(C) in the case of the Securities held by PLC Capital, PLC Capital is not in arrears on payments of Distributions (as defined in the Amended and Restated Declaration of Trust of PLC Capital) on
the         % Trust Originated Preferred Securities of PLC Capital and no deferred Distributions are accumulated and (D) the Securities are rated not less
than BBB- by Standard & Poor's Ratings Services or Baa3 by Moody's Investors Service, Inc. or the equivalent by any other nationally recognized statistical rating organization; provided,
further, that the Company may at any time irrevocably waive its right to extend the Stated Maturity date. In the event the Company elects to shorten or extend the Stated Maturity of the Securities or
to irrevocably waive its right to extend the Stated Maturity of the Securities, it shall give notice to the Trustee, and the Trustee shall give notice of such shortening or extension or waiver to the
Holder hereof, no less than 30 and no more than 90 days prior to the effectiveness thereof. 

        The
amount of interest payable on any Interest Payment Date shall be computed on the basis of twelve 30-day months and a 360-day year and, for any period that is shorter than a full
90-day quarter, 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 Security 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 of 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 Subordinated Debenture is registered at the close of business on the Regular Record Date for such Interest Payment Date, which shall be the Business Day next
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 Security is registered on the
relevant Regular Record Date, and such defaulted interest shall instead be payable to the person in whose name this Subordinated Debenture is registered on the special record date for such defaulted
interest or other specified date determined in accordance with the Indenture and the Supplemental Indenture No. 8 referred to on the reverse hereof. 

        Payment
of the principal of and any such interest on this Subordinated Debenture will be made at the Corporate Trust Office of the Trustee, 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, provided, however, that at the option of the Company payment of interest may be paid (i) by check mailed
to the address of 

3

 

the person entitled thereto as such address shall appear in the Register of Holders of the Subordinated Debentures or (ii) by wire transfer to an account maintained by the Person entitled thereto as
specified in the Register of Holders of the Securities. 

        Reference
is hereby made to the further provisions of this Subordinated Debenture 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 Subordinated 

        Debenture
shall not be entitled to any benefit under the Indenture and Supplemental Indenture No. 8 referred to on the reverse hereof or be valid or obligatory for any purpose. 

4

 

        IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

Dated:

	 	 	 	 	PROTECTIVE LIFE CORPORATION
	
 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	

	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	

	[CORPORATE SEAL]	 	 	 	 
	

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

 	
 	

 	
 	
THE BANK OF NEW YORK, as Trustee
	

 	
 	

 	
 	

By:	
 	

The Bank of New York Trust Company of Florida, N.A., as Agent
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
Authorized Signatory

5

 
[FORM OF REVERSE OF SERIES              SUBORDINATED DEBENTURE]

        This
Subordinated Debenture 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
Subordinated Indenture, dated as of June 1, 1994 (herein, together with all indentures supplemental thereto, including Supplemental Indenture No. 1, dated as of June 9, 1994, Supplemental
Indenture No. 2, dated August 1, 1994, Supplemental Indenture No. 3, dated April 29, 1997, Supplemental Indenture No. 4, dated November 20, 1997 Supplemental Indenture
No. 5, dated August 22, 2001, Supplemental Indenture No. 6, dated September 25, 2002, Supplemental Indenture No. 7, dated
                        ,
20       and Supplemental Indenture No. 8, dated                         ,
20      , called the
"Indenture"), from the Company to The Bank of New York (as successor to AmSouth Bank) (herein called the "Trustee", which term includes any successor 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, the holders of Senior Indebtedness 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 $                         and is issued pursuant to Supplemental Indenture No. 8, dated as of
                        ,
20       from the Company to the Trustee, relating to the Securities of this series (herein called "Supplemental Indenture No. 8"). 

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

        The
Securities of this series are subject to redemption at any time in whole or from time to time in part, on or after
                        ,
20      , but prior to their stated maturity (or such other date to which the stated maturity of this Subordinated Debenture may be shortened or extended, as
described on the face of this Subordinated Debenture), or, in whole at any time or in part from time to time if a Tax Event shall
have occurred, upon not less than 30 nor more than 60 days notice, at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, including Additional
Interest, if any, to the redemption date within 90 days following the occurrence of such Tax Event; provided, however, that if at the time there is available to the Company or PLC Capital the
opportunity to eliminate, within such 90 day period, the Tax Event by taking some ministerial action, such as filing a form or making an election or pursuing some other similar reasonable measure that
has no adverse effect on PLC Capital, the Company or the holders of the Trust Securities, the Company or PLC Capital will pursue such measure in lieu of redemption. 

        In
the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of
the Holder hereof upon the cancellation hereof. 

        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 contains provisions for defeasance at any time of the indebtedness of this Security or of certain restrictive covenants and Events of Default with respect to this Security,
in each case upon 

6

 

compliance by the Company with certain conditions set forth therein, which provisions apply to this Security. 

        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 out standing of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in 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 the 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 herefor 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. 8 and no provision of this Security or of the Indenture or of Supplemental Indenture No. 8 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. 

        As
provided in the Indenture and subject to certain limitations as therein set forth, the transfer of this Security is registrable in 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 $1,000 and any integral multiple thereof. 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 like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 

        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 shall be affected by notice to the
contrary. 

        The
Company and the Holder of this Security agree (i) that for United States federal, state and local tax purposes it is intended that this Security constitute indebtedness and
(ii) to file all United States federal, state and local tax returns and reports on such basis (unless the Company or such Holder, as the case may be, shall have received an opinion of
independent nationally recognized tax counsel to the effect that as a result of a change in law after the date of the issuance of this Security the Company or such Holder, as the case may be, is
prohibited from filing on such basis). 

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

7

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EXHIBIT 4(y)    
  

        PREFERRED SECURITIES GUARANTEE AGREEMENT  

 PLC CAPITAL TRUST V  

 Dated as of                         ,
20          

  

 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	 
	 	Page

	ARTICLE I.	 	 
	

 	
 	

DEFINITIONS AND INTERPRETATION	
 	

 
	 	 	SECTION 1.1.	 	Definitions and Interpretation	 	2
	

ARTICLE II.	
 	

 
	

 	
 	

TRUST INDENTURE ACT	
 	

 
	 	 	SECTION 2.1.	 	Trust Indenture Act; Application	 	5
	 	 	SECTION 2.2.	 	Lists of Holders of Securities	 	5
	 	 	SECTION 2.3.	 	Reports by the Preferred Guarantee Trustee	 	6
	 	 	SECTION 2.4.	 	Periodic Reports to Preferred Guarantee Trustee	 	6
	 	 	SECTION 2.5.	 	Evidence of Compliance with Conditions Precedent	 	6
	 	 	SECTION 2.6.	 	Events of Default; Waiver	 	6
	 	 	SECTION 2.7.	 	Event of Default; Notice	 	6
	 	 	SECTION 2.8.	 	Conflicting Interests	 	7
	

ARTICLE III.	
 	

 
	

 	
 	

POWERS, DUTIES AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE	
 	

 
	 	 	SECTION 3.1.	 	Powers and Duties of the Preferred Guarantee Trustee	 	7
	 	 	SECTION 3.2.	 	Certain Rights of Preferred Guarantee Trustee	 	9
	 	 	SECTION 3.3.	 	Not Responsible for Recitals or Issuance of Guarantee	 	11
	

ARTICLE IV.	
 	

 
	

 	
 	

PREFERRED GUARANTEE TRUSTEE	
 	

 
	 	 	SECTION 4.1.	 	Preferred Guarantee Trustee; Eligibility	 	11
	 	 	SECTION 4.2.	 	Appointment, Removal and Resignation of Preferred Guarantee Trustees	 	12
	

ARTICLE V.	
 	

 
	

 	
 	

GUARANTEE	
 	

 
	 	 	SECTION 5.1.	 	Guarantee	 	13
	 	 	SECTION 5.2.	 	Waiver of Notice and Demand	 	13
	 	 	SECTION 5.3.	 	Obligations Not Affected	 	13
	 	 	SECTION 5.4.	 	Rights of Holders	 	15
	 	 	SECTION 5.5.	 	Guarantee of Payment	 	15
	 	 	SECTION 5.6.	 	Subrogation	 	15
	 	 	SECTION 5.7.	 	Independent Obligations	 	15
	

ARTICLE VI.	
 	

 
	

 	
 	

LIMITATION OF TRANSACTIONS; SUBORDINATION	
 	

 
	 	 	SECTION 6.1.	 	Limitation of Transactions	 	16
	 	 	SECTION 6.2.	 	Ranking	 	16
	

ARTICLE VII.	
 	

 
	

 	
 	

TERMINATION	
 	

 
	 	 	SECTION 7.1.	 	Termination	 	17
	

ARTICLE VIII.	
 	

 

i

 

	

 	
 	

INDEMNIFICATION	
 	

 
	 	 	SECTION 8.1.	 	Exculpation	 	17
	 	 	SECTION 8.2.	 	Indemnification	 	18
	

ARTICLE IX.	
 	

 
	

 	
 	

MISCELLANEOUS	
 	

 
	 	 	SECTION 9.1.	 	Successors and Assigns	 	18
	 	 	SECTION 9.2.	 	Amendments	 	18
	 	 	SECTION 9.3.	 	Notices	 	19
	 	 	SECTION 9.4.	 	Benefit	 	19
	 	 	SECTION 9.5.	 	Governing Law	 	19

ii

 
 

PREFERRED SECURITIES GUARANTEE AGREEMENT    
  

        This GUARANTEE AGREEMENT (the "Preferred Securities Guarantee"), dated as of
                        ,
20        , is executed and delivered by Protective Life Corporation, a Delaware corporation (the "Guarantor"), and Wilmington Trust Company, as trustee (the
"Preferred Guarantee Trustee"), for the benefit of the Holders (as defined herein) from time to time of the Preferred Securities (as defined herein) of PLC Capital Trust V, a Delaware statutory
business trust (the "Issuer"). 

        WHEREAS,
pursuant to an Amended and Restated Declaration of Trust (the "Declaration"), dated as of                         ,
20        , among the trustees of the Issuer named therein, the Guarantor, as sponsor, and the holders from time to time of undivided beneficial interests in the
assets of the Issuer, the Issuer is issuing on the date hereof                          preferred securities, having an
aggregate liquidation amount of
$                   , designated the       % Trust Originated Preferred Securities (the "Preferred Securities");

        WHEREAS,
as incentive for the Holders to purchase the Preferred Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth in this Preferred
Securities Guarantee, to pay to the Holders of the Preferred Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein; and 

        WHEREAS,
the Guarantor is also executing and delivering a guarantee agreement (the "Common Securities Guarantee") in substantially identical terms to this Preferred Securities Guarantee
for the benefit of the holders of the Common Securities (as defined herein), except that if an Event of Default (as defined in the Indenture), has occurred and is continuing, the rights of holders of
the Common Securities to receive Guarantee Payments under the Common Securities Guarantee are subordinated to the rights of Holders of Preferred Securities to receive Guarantee Payments under this
Preferred Securities Guarantee. 

        NOW,
THEREFORE, in consideration of the purchase by each Holder of Preferred Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes
and delivers this Preferred Securities Guarantee for the benefit of the Holders. 

ARTICLE I.

DEFINITIONS AND INTERPRETATION  

        SECTION 1.1. Definitions and Interpretation. In this Preferred Securities Guarantee, unless the context otherwise requires: 

        (a)  Capitalized
terms used in this Preferred Securities Guarantee but not defined in the preamble above have the respective meanings assigned to them in this Section 1.1; 

        (b)  a
term defined anywhere in this Preferred Securities Guarantee has the same meaning throughout; 

        (c)  all
references to "the Preferred Securities Guarantee" or "this Preferred Securities Guarantee" are to this Preferred Securities Guarantee as modified, supplemented or
amended from time to time; 

        (d)  all
references in this Preferred Securities Guarantee to Articles and Sections are to Articles and Sections of this Preferred Securities Guarantee, unless otherwise
specified; 

        (e)  a
term defined in the Trust Indenture Act has the same meaning when used in this Preferred Securities Guarantee, unless otherwise defined in this Preferred Securities
Guarantee or unless the context otherwise requires; and 

        (f)    a
reference to the singular includes the plural and vice versa. 

        "Affiliate"
has the same meaning as given to that term in Rule 405 of the Securities Act of 1933, as amended, or any successor rule thereunder. 

 

        "Authorized
Officer" of a Person means any Person that is authorized to bind such Person. 

        "Business
Day" means any day other than a day on which banking institutions in the City of New York, New York are authorized or required by any applicable law to close. 

        "Common
Securities" means the securities representing common undivided beneficial interests in the assets of the Issuer. 

        "Corporate
Trust Office" means the office of the Preferred Guarantee Trustee at which the corporate trust business of the Preferred Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this Agreement is located at Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Corporate Trust Administration. 

        "Covered
Person" means any Holder or beneficial owner of Preferred Securities. 

        "Debentures"
means the series of junior subordinated debt securities of the Guarantor designated the       % Subordinated Debentures due
20            , Series              held by the Institutional Trustee (as defined in the Declaration) of the Issuer.

        "Event
of Default" means a default by the Guarantor on any of its payment or other obligations under this Preferred Securities Guarantee. 

        "Guarantee
Payments" means the following payments or distributions, without duplication, with respect to the Preferred Securities, to the extent not paid or made by the Issuer: (i) any
accrued and unpaid Distributions (as defined in the Declaration) that are required to be paid on such Preferred Securities to the extent the Issuer shall have funds available therefor, (ii) the
redemption price, including all accrued and unpaid Distributions to the date of redemption (the "Redemption Price") to the extent the Issuer has funds available therefor, with respect to any Preferred
Securities called for redemption by the Issuer, and (iii) upon a voluntary or involuntary dissolution, winding-up or termination of the Issuer (other than in connection with the distribution of
Debentures to the Holders in exchange for Preferred Securities as provided in the Declaration), the lesser of (a) the aggregate of the liquidation amount and all accrued and unpaid Distributions on
the Preferred Securities to the date of payment, to the extent the Issuer shall have funds available therefor, and (b) the amount of assets of the Issuer remaining available for distribution to
Holders in liquidation of the Issuer (in either case, the "Liquidation Distribution"). If an event of default under the Indenture has occurred and is continuing, the rights of holders of the Common
Securities to receive payments under the Common Securities Guarantee Agreement are subordinated to the rights of Holders of Preferred Securities to receive Guarantee Payments. 

        "Holder"
shall mean any holder, as registered on the books and records of the Issuer of any Preferred Securities; provided, however, that, in determining whether the holders of the
requisite percentage of Preferred Securities have given any request, notice, consent or waiver hereunder, "Holder" shall not include the Guarantor or any Affiliate of the Guarantor. 

        "Indemnified
Person" means the Preferred Guarantee Trustee, any Affiliate of the Preferred Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Preferred Guarantee Trustee. 

        "Indenture"
means the Indenture dated as of June 1, 1994, among the Guarantor (the "Debenture Issuer") and AmSouth Bank (as successor by merger to AmSouth Bank of Alabama, successor by
conversion of charter to AmSouth Bank N.A.), as trustee, and any indenture supplemental thereto pursuant to which certain subordinated debt securities of the Debenture Issuer are to be issued to the
Institutional Trustee of the Issuer. 

2

 

        "Majority
in liquidation amount of the Securities" means, except as provided by the Trust Indenture Act, a vote by Holder(s) of Preferred Securities, voting separately as a class, of
more than 50% of the liquidation amount (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the date upon which the voting
percentages are determined) of all Preferred Securities. 

        "Officers'
Certificate" means, with respect to any Person, a certificate signed by two Authorized Officers of such Person. Any Officers' Certificate delivered with respect to compliance
with a condition or covenant provided for in this Preferred Securities Guarantee shall include: 

        (a)  a
statement that each officer signing the Officers' Certificate has read the covenant or condition and the definition relating thereto; 

        (b)  a
brief statement of the nature and scope of the examination or investigation undertaken by each officer in rendering the Officers' Certificate; 

        (c)  a
statement that each such officer has made such examination or investigation as, in such officer's opinion, is necessary to enable such officer to express an informed
opinion as to whether or not such covenant or condition has been complied with; and 

        (d)  a
statement as to whether, in the opinion of each such officer, such condition or covenant has been complied with. 

        "Person"
means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust,
unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 

        "Preferred
Guarantee Trustee" means Wilmington Trust Company until a Successor Preferred Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of
this Preferred Securities Guarantee and thereafter means each such Successor Preferred Guarantee Trustee. 

        "Responsible
Officer" means, with respect to the Preferred Guarantee Trustee, any officer within the Corporate Trust Office of the Preferred Guarantee Trustee, including any
vice-president, any assistant vice-president, any assistant secretary, the treasurer, any assistant treasurer or other officer of the Corporate Trust Office of the Preferred Guarantee Trustee
customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer's knowledge of and familiarity with the particular subject. 

        "Successor
Preferred Guarantee Trustee" means a successor Preferred Guarantee Trustee possessing the qualifications to act as Preferred Guarantee Trustee under Section 4.1. 

        "Trust
Indenture Act" means the Trust Indenture Act of 1939, as amended. 

ARTICLE II.

TRUST INDENTURE ACT  

        SECTION 2.1. Trust Indenture Act; Application. (a) This Preferred Securities Guarantee is subject to the provisions of the Trust Indenture Act that are required
to be part of this Preferred Securities Guarantee and shall, to the extent applicable, be governed by such provisions; and (b) if and to the extent that any provision of this Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 

        SECTION
2.2. Lists of Holders of Securities. (a) The Guarantor shall provide the Preferred Guarantee Trustee with a list, in such form as the Preferred Guarantee Trustee may reasonably
require, 

3

 

of the names and addresses of the Holders of the Preferred Securities ("List of Holders") as of such date, (i) concurrently with the provision of such a list to the Institutional Trustee
pursuant to the Declaration, and (ii) at any time within 30 days of receipt by the Guarantor of a written request for a List of Holders as of a date no more than 14 days before such List of Holders is
given to the Preferred Guarantee Trustee provided, that the Guarantor shall not be obligated to provide such List of Holders at any time the List of Holders does not differ from the most recent List
of Holders given to the Preferred Guarantee Trustee by the Guarantor. The Preferred Guarantee Trustee may destroy any List of Holders previously given to it on receipt of a new List of Holders. 

        (b)  The
Preferred Guarantee Trustee shall comply with its obligations under Section 311(a), 311(b) and Section 312(b) of the Trust Indenture Act. 

        SECTION
2.3. Reports by the Preferred Guarantee Trustee. Within 60 days after May 15 of each year, the Preferred Guarantee Trustee shall provide to the Holders of the Preferred
Securities such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The Preferred Guarantee
Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act. 

        SECTION
2.4. Periodic Reports to Preferred Guarantee Trustee. The Guarantor shall provide to the Preferred Guarantee Trustee such documents, reports and information as required by
Section 314 (if any) and the compliance certificate required by Section 314 of the Trust Indenture Act in the form, in the manner and at the times required by Section 314 of the Trust Indenture Act. 

        SECTION
2.5. Evidence of Compliance with Conditions Precedent. The Guarantor shall provide to the Preferred Guarantee Trustee such evidence of compliance with any conditions precedent,
if any, provided for in this Preferred Securities Guarantee that relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an Officers' Certificate. 

        SECTION
2.6. Events of Default; Waiver. The Holders of a Majority in liquidation amount of Preferred Securities may, by vote, on behalf of the Holders of all of the Preferred Securities,
waive any past Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Preferred Securities Guarantee, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

        SECTION
2.7. Event of Default; Notice. (a) The Preferred Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders of the Preferred Securities, notices of all Events of Default actually known to a Responsible Officer of the Preferred Guarantee Trustee, unless such defaults have been cured
before the giving of such notice, provided, that, the Preferred Guarantee Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Preferred Guarantee
Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Preferred Securities. 

        (b)  The
Preferred Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless the Preferred Guarantee Trustee shall have received written notice,
or unless a Responsible Officer of the Preferred Guarantee Trustee charged with the administration of the Declaration shall have obtained actual knowledge thereof. 

        SECTION
2.8. Conflicting Interests. The Declaration shall be deemed to be specifically described in this Preferred Securities Guarantee for the purposes of clause (i) of the first
proviso contained in Section 310(b) of the Trust Indenture Act. 

4

 

ARTICLE III.

POWERS, DUTIES AND RIGHTS OF

PREFERRED GUARANTEE TRUSTEE  

        SECTION 3.1. Powers and Duties of the Preferred Guarantee Trustee. 

        (a)  This
Preferred Securities Guarantee shall be held by the Preferred Guarantee Trustee for the benefit of the Holders of the Preferred Securities, and the Preferred
Guarantee Trustee shall not transfer this Preferred Securities Guarantee to any Person except a Holder of Preferred Securities exercising his or her rights pursuant to Section 5.4(b) or to a Successor
Preferred Guarantee Trustee on acceptance by such Successor Preferred Guarantee Trustee of its appointment to act as Successor Preferred Guarantee Trustee. The right, title and interest of the
Preferred Guarantee Trustee shall automatically vest in any Successor Preferred Guarantee Trustee, and such vesting and cessation of title shall be effective whether or not conveyancing documents have
been executed and delivered pursuant to the appointment of such Successor Preferred Guarantee Trustee. 

        (b)  If
an Event of Default actually known to a Responsible Officer of the Preferred Guarantee Trustee has occurred and is continuing, the Preferred Guarantee Trustee shall
enforce this Preferred Securities Guarantee for the benefit of the Holders of the Preferred Securities. 

        (c)  The
Preferred Guarantee Trustee, before the occurrence of any Event of Default and after the curing of all Events of Default that may have occurred, shall undertake to
perform only such duties as are specifically set forth in this Preferred Securities Guarantee, and no implied covenants shall be read into this Preferred Securities Guarantee against the Preferred
Guarantee Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6) and is actually known to a Responsible Officer of the Preferred Guarantee
Trustee, the Preferred Guarantee Trustee shall exercise such of the rights and powers vested in it by this Preferred Securities Guarantee, and use the same degree of care and skill in its exercise
thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 

        (d)  No
provision of this Preferred Securities Guarantee shall be construed to relieve the Preferred Guarantee Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that: 

        (i)
prior to the occurrence of any Event of Default and after the curing or waiving of all such Events of Default that may have occurred: 

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

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

        (ii)
the Preferred Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Preferred Guarantee Trustee, unless it shall be
proved 

5

 

that the Preferred Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made; 

        (iii)
the Preferred Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of
not less than a Majority in liquidation amount of the Preferred Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Preferred Guarantee
Trustee, or exercising any trust or power conferred upon the Preferred Guarantee Trustee under this Preferred Securities Guarantee; and 

        (iv)
no provision of this Preferred Securities Guarantee shall require the Preferred Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in
the performance of any of its duties or in the exercise of any of its rights or powers, if the Preferred Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds
or liability is not reasonably assured to it under the terms of this Preferred Securities Guarantee or indemnity, reasonably satisfactory to the Preferred Guarantee Trustee, against such risk or
liability is not reasonably assured to it. 

        SECTION
3.2. Certain Rights of Preferred Guarantee Trustee. (a) Subject to the provisions of Section 3.1: 

        (i)
The Preferred Guarantee Trustee may conclusively rely, and shall be fully protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties. 

        (ii)
Any direction or act of the Guarantor contemplated by this Preferred Securities Guarantee shall be sufficiently evidenced by a Direction (as defined in the Declaration) or an
Officers' Certificate. 

        (iii)
Whenever, in the administration of this Preferred Securities Guarantee, the Preferred Guarantee Trustee shall deem it desirable that a matter be proved or established before
taking, suffering or omitting any action hereunder, the Preferred Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officers' Certificate which, upon receipt of such request, shall be promptly delivered by the Guarantor. 

        (iv)
The Preferred Guarantee Trustee shall have no duty to see to any recording, filing or registration of any instrument (or any rerecording, refiling or registration thereof). 

        (v)
The Preferred Guarantee Trustee may consult with counsel, and the written advice or opinion of such counsel with respect to legal matters shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the Guarantor or any of its
Affiliates and may
include any of its employees. The Preferred Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Preferred Securities Guarantee from any court
of competent jurisdiction. 

        (vi)
The Preferred Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Preferred Securities Guarantee at the request or direction
of any Holder, unless such Holder shall have provided to the Preferred Guarantee Trustee such security and indemnity, reasonably satisfactory to the Preferred Guarantee Trustee, against the costs,
expenses (including attorneys' fees and expenses and the expenses of the Preferred Guarantee Trustee's agents, nominees or custodians) and liabilities that might be incurred by it in complying 

6

 

with such request or direction, including such reasonable advances as may be requested by the Preferred Guarantee Trustee; provided that, nothing contained in this Section 3.2(a)(vi) shall be taken
to relieve the Preferred Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this Preferred Securities Guarantee. 

        (vii)
The Preferred Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Preferred Guarantee Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see fit. 

        (viii)
The Preferred Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, custodians or
attorneys, and the Preferred Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

        (ix)
Any action taken by the Preferred Guarantee Trustee or its agents hereunder shall bind the Holders of the Preferred Securities, and the signature of the Preferred Guarantee Trustee
or its agents alone shall be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Preferred Guarantee Trustee to so act or as to
its compliance with any of the terms and provisions of this Preferred Securities Guarantee, both of which shall be conclusively evidenced by the Preferred Guarantee Trustee's or its agent's taking
such action. 

        (x)
Whenever in the administration of this Preferred Securities Guarantee the Preferred Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any
remedy or right or taking any other action hereunder, the Preferred Guarantee Trustee (i) may request instructions from the Holders of a Majority in liquidation amount of the Preferred Securities,
(ii) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be protected in conclusively relying on or acting in accordance
with such instructions. 

        (b)
No provision of this Preferred Securities Guarantee shall be deemed to impose any duty or obligation on the Preferred Guarantee Trustee to perform any act or acts or exercise any
right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Preferred Guarantee Trustee shall be unqualified or incompetent in
accordance with applicable law, to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Preferred Guarantee Trustee
shall be construed to be a duty. 

        SECTION
3.3. Not Responsible for Recitals or Issuance of Guarantee. The recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Preferred
Guarantee Trustee does not assume any responsibility for their correctness. The Preferred Guarantee Trustee makes no representation as to the validity or sufficiency of this Preferred Securities
Guarantee. 

ARTICLE IV.

PREFERRED GUARANTEE TRUSTEE  

        SECTION 4.1. Preferred Guarantee Trustee; Eligibility. (a) There shall at all times be a Preferred Guarantee Trustee which shall: 

        (i)
not be an Affiliate of the Guarantor; and 

        (ii)
be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or
Person permitted by the Securities and Exchange Commission to act as an institutional trustee 

7

 

under the Trust Indenture Act, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to
supervision or examination by Federal, State, Territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of the supervising or examining authority referred to above, then, for the purposes of this Section 4.1(a)(ii), the combined capital and surplus of such corporation shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published. 

        (b)  If
at any time the Preferred Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee shall immediately resign in the
manner and with the effect set out in Section 4.2 (c). 

        (c)  If
the Preferred Guarantee Trustee has or shall acquire any "conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act, the Preferred
Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act. 

        SECTION
4.2. Appointment, Removal and Resignation of Preferred Guarantee Trustees. (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may be appointed or removed without
cause at any time by the Guarantor. 

        (b)  The
Preferred Guarantee Trustee shall not be removed in accordance with Section 4.2(a) until a Successor Preferred Guarantee Trustee has been appointed and has accepted
such appointment by written instrument executed by such Successor Preferred Guarantee Trustee and delivered to the Guarantor. 

        (c)  The
Preferred Guarantee Trustee appointed to office shall hold office until a Successor Preferred Guarantee Trustee shall have been appointed or until its removal or
resignation. The Preferred Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by an instrument in writing executed by the Preferred Guarantee Trustee and
delivered to the Guarantor, which resignation shall not take effect until a Successor Preferred Guarantee Trustee has been appointed and has accepted such appointment by instrument in writing executed
by such Successor Preferred Guarantee Trustee and delivered to the Guarantor and the resigning Preferred Guarantee Trustee. 

        (d)  If
no Successor Preferred Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery to the
Guarantor of an instrument of resignation, the resigning Preferred Guarantee Trustee may petition any court of competent jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Preferred Guarantee Trustee. 

        (e)  No
Preferred Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Preferred Guarantee Trustee. 

        (f)    Upon
termination of this Preferred Securities Guarantee or removal or resignation of the Preferred Guarantee Trustee pursuant to this 

        Section
4.2, the Guarantor shall pay to the Preferred Guarantee Trustee all amounts accrued to the date of such termination, removal or resignation. 

ARTICLE V.

GUARANTEE  

        SECTION 5.1. Guarantee. The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer may have or 

8

 

assert. The Guarantor's obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts
to the Holders. 

        SECTION
5.2. Waiver of Notice and Demand. The Guarantor hereby waives notice of acceptance of this Preferred Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands. 

        SECTION
5.3. Obligations Not Affected. The obligations, covenants, agreements and duties of the Guarantor under this Preferred Securities Guarantee shall in no way be affected or
impaired by reason of the happening from time to time of any of the following: 

        (a)  the
release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition
relating to the Preferred Securities to be performed or observed by the Issuer; 

        (b)  the
extension of time for the payment by the Issuer of all or any portion of the Distributions, Redemption Price, Liquidation Distribution or any other sums payable
under the terms of the Preferred Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with, the Preferred Securities (other than an
extension of time for payment of Distributions, Redemption Price, Liquidation Distribution or other sum payable that results from the extension of any interest payment period on the Debentures or any
extension of the maturity date of the Debentures permitted by the Indenture); 

        (c)  any
failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the
Holders pursuant to the terms of the Preferred Securities, or any action on the part of the Issuer granting indulgence or extension of any kind; 

        (d)  the
voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 

        (e)  any
invalidity of, or defect or deficiency in, the Preferred Securities; 

        (f)    the
settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 

        (g)  any
other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this Section 5.3 that
the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 

        There
shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect to the happening of any of the foregoing. 

        SECTION
5.4. Rights of Holders. (a) The Holders of a Majority in liquidation amount of the Preferred Securities have the right to direct the time, method and place of conducting of any
proceeding for any remedy available to the Preferred Guarantee Trustee in respect of this Preferred Securities Guarantee or exercising any trust or power conferred upon the Preferred Guarantee Trustee
under this Preferred Securities Guarantee. 

        (b)  If
the Preferred Guarantee Trustee fails to enforce this Preferred Securities Guarantee with respect to the right of any Holders to receive any Guarantee Payment in
accordance herewith, such Holder may directly institute a proceeding against the Guarantor for enforcement of the Preferred Security Guarantee for such payment. The Guarantor waives any right or
remedy to require that any 

9

 

action be brought first against the Issuer or any other Person or entity before proceeding directly against the Guarantor. 

        SECTION
5.5. Guarantee of Payment. This Preferred Securities Guarantee creates a guarantee of payment and not of collection. 

        SECTION
5.6. Subrogation. The Guarantor shall be subrogated to all (if any) rights of the Holders of Preferred Securities against the Issuer in respect of any amounts paid to such
Holders by the Guarantor under this Preferred Securities Guarantee; provided, however, that the Guarantor shall not
(except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Preferred Securities Guarantee, if, at the time of any such payment, any amounts are due and unpaid under this Preferred Securities Guarantee.
If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders. 

        SECTION
5.7. Independent Obligations. The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer with respect to the Preferred Securities,
and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Preferred Securities Guarantee notwithstanding the occurrence of
any event referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof. 

ARTICLE VI.

LIMITATION OF TRANSACTIONS; SUBORDINATION  

        SECTION 6.1. Limitation of Transactions. So long as any Preferred Securities remain outstanding, if there shall have occurred and be continuing an Event of
Default or an event of default under the Declaration, then (a) the Guarantor shall not declare or pay any dividend on, make any distributions with respect to, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of its capital stock (other than (i) purchases or acquisitions of shares of its common stock in connection with the satisfaction by the Guarantor of its
obligations under any employee benefit plans or the satisfaction by the Guarantor of its obligations pursuant to any contract or security requiring the Guarantor to purchase shares of its common
stock, (ii) as a result of a reclassification of its capital stock or the exchange or conversion of one class or series of its capital stock for another class or series of its capital stock, (iii) the
purchase of fractional interests in shares of its capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, and (iv)
redemptions or purchases pursuant to the Guarantor's Rights Agreement, dated August 7, 1995, between the Guarantor and AmSouth Bank of Alabama as Rights Agent), (b) the Guarantor shall not make any
payment of interest, principal or premium, if any, on or repay, repurchase or redeem any debt securities (including guarantees) issued by the Guarantor which rank pari
passu with or junior to the Debentures and (c) the Guarantor shall not make any guarantee payments with respect to the foregoing (other than pursuant to this Agreement, the
Common Securities Guarantee, dated as of                         ,
20         (the "Common Guarantee") of the Guarantor with respect to the
      % Trust Originated Common Securities of the Trust, the Preferred Securities Guarantee dated as of August 22, 2001 and the Common Securities Guarantee,
dated August 22, 2001 of the Company with respect to the 71/2% Trust Originated Preferred Securities Series D of PLC Capital Trust III and the Preferred Securities
Guarantee, dated as of September 25, 2002, the Common Securities Guarantee dated as of September 25, 2002 of the Company with respect to the 71/4% Trust Originated
Preferred Securities Series E of PLC Capital Trust IV. 

        SECTION
6.2. Ranking. This Preferred Securities Guarantee will constitute an unsecured obligation of the Guarantor and will rank (i) subordinate and junior in right of payment to all
present and future Senior Indebtedness (as such term is defined in the Indenture), (ii) pari passu with the 

10

 

Common Guarantee, the Debentures, the Company's Guarantee of PLC Capital Trust III's 71/2% Trust Originated Preferred Securities, having an aggregate liquidation amount of
$100.0 million, the Company's Guarantee of PLC Capital Trust III's 71/2% Trust Originated Common Securities, having an aggregate liquidation amount of $3.1 million, the
Company's 71/2% Subordinated Debentures due 2031, Series D, having an aggregate liquidation amount of $103.1 million, the Company's Guarantee of PLC Capital Trust IV's
71/4% Trust Originated Preferred Securities, having an aggregate liquidation amount of $115.0 million, the Company's Guarantee of PLC Capital Trust IV's 71/4%
Trust Originated Common Securities, having an aggregate liquidation amount of $3.6 million and the Company's 71/4% Subordinated Debentures due 2032, Series E, having an
aggregate liquidation amount of $118.6 million, and any other liabilities or obligations that may be pari passu by their terms and (iii) senior
to the Guarantor's common stock, the most senior preferred or preference stock now or hereafter issued by the Guarantor and with any guarantee now or hereafter entered into by the Guarantor in respect
of any preferred or preference stock of any affiliate of the Guarantor. 

ARTICLE VII.

TERMINATION  

        SECTION 7.1. Termination. This Preferred Securities Guarantee shall terminate upon (i) full payment of the Redemption Price of all Preferred Securities, (ii) upon
the distribution of the Debentures to the Holders of all of the Preferred Securities or (iii) upon full payment of the amounts payable in accordance with the Declaration upon liquidation of the
Issuer. Notwithstanding the foregoing, this Preferred Securities Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of Preferred Securities
must restore payment of any sums paid under the Preferred Securities or under this Preferred Securities Guarantee. 

ARTICLE VIII.

INDEMNIFICATION  

        SECTION 8.1. Exculpation. (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Guarantor or any Covered Person for
any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith in accordance with this Preferred Securities Guarantee and in a manner
that such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Preferred Securities Guarantee or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such Indemnified Person's negligence or willful misconduct with respect to such acts or omissions. 

        (b)  An
Indemnified Person shall be fully protected in relying in good faith upon the records of the Guarantor and upon such information, opinions, reports or statements
presented to the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of
the Guarantor, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount
of assets from which Distributions to Holders of Preferred Securities might properly be paid. 

        SECTION
8.2. Indemnification. (a) To the fullest extent permitted by applicable law, the Guarantor shall indemnify and hold harmless each Indemnified Person from and against any loss,
damage or claim incurred by such Indemnified Person by reason of any act or omission performed or omitted by such Indemnified Person in good faith in accordance with this Guarantee Agreement and in a
manner such Indemnified Person reasonably believed to be within the scope of authority conferred on such Indemnified Person by this Guarantee Agreement, except that no Indemnified Person shall be
entitled to be indemnified in respect of any loss, damage or claim incurred by such Indemnified Person by reason of negligence or willful misconduct with respect to such acts or omissions. 

11

 

        (b)  To
the fullest extent permitted by applicable law, reasonable expenses (including legal fees) incurred by an Indemnified Person in defending any claim, demand, action,
suit or proceeding shall, from time to time, be advanced by the Guarantor prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Guarantor of an
undertaking by or on behalf of the Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified as authorized in Section 8.2(a). 

        (c)  The
obligation to indemnify as set forth in this Section 8.2 shall survive the termination of the Preferred Securities Guarantee. 

ARTICLE IX.

MISCELLANEOUS  

        SECTION 9.1. Successors and Assigns. All guarantees and agreements contained in this Preferred Securities Guarantee shall bind the successors, assigns, receivers,
trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Preferred Securities then outstanding. 

        SECTION
9.2. Amendments. Except with respect to any changes that do not adversely affect the rights of Holders (in which case no consent of Holders will be required), this Preferred
Securities Guarantee may only be amended with the prior approval of the Holders of at least a Majority in liquidation amount (including the stated amount that would be paid on redemption, liquidation
or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are determined) of all the outstanding Preferred Securities. The provisions of Section 12.2 of the
Declaration with respect to meetings of Holders of the Securities apply to the giving of such approval. 

        SECTION
9.3. Notices. All notices provided for in this Preferred Securities Guarantee shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied
or mailed by registered or certified mail, as follows: 

        (a)  if
given to the Preferred Guarantee Trustee, at the Preferred Guarantee Trustee's mailing address set forth below (or such other address as the Preferred Guarantee
Trustee may give notice of to the Holders of the Preferred Securities): 

Wilmington
Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Corporate Trust Administration 

        (b)  If
given to the Guarantor, at the Guarantor's mailing address set forth below (or such other address as the Guarantor may give notice of to the Holders of the Preferred
Securities): 

Protective
Life Corporation

2801 Highway 280 South

Birmingham, Alabama 35223

Attention: Secretary 

        (c)  If
given to any Holder of Preferred Securities, at the address set forth on the books and records of the Issuer. 

        All
such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid except that if a notice or
other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver. 

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        SECTION
9.4. Benefit. This Preferred Securities Guarantee is solely for the benefit of the Holders of the Preferred Securities and, subject to Section 3.1(a), is not separately
transferable from the Preferred Securities. 

        SECTION
9.5. Governing Law. THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

        THIS
PREFERRED SECURITIES GUARANTEE is executed as of the day and year first above written. 

	 	 	PROTECTIVE LIFE CORPORATION, as Guarantor
	
 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	Title:	 	 
	

 	
 	

WILMINGTON TRUST COMPANY, as Preferred

Guarantee Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 

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EXHIBIT 4(y)

TABLE OF CONTENTS

PREFERRED SECURITIES GUARANTEE AGREEMENT

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