Document:

Exhibit 4.3

CUSIP
NO. 74367FAA6

PROTECTIVE LIFE SECURED TRUST 2003-1

SECURED MEDIUM-TERM NOTE

REGISTERED FACE AMOUNT:
$450,000,000

No. 1

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE
INDENTURE (HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF A DEPOSITARY
(AS DEFINED IN THE INDENTURE) OR A NOMINEE OF A DEPOSITARY.  THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY
TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

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Principal Amount:  $450,000,000.

(or principal amount of
foreign or composite currency)

Original Issue Date:  November
24, 2003.

Price to Public:  99.81%.

Stated Maturity Date:  November
24, 2008.

Settlement Date and Time: 
November 24, 2003 at 3:30 p.m., New York City time

Securities Exchange
Listing:  x
Yes  o
No.  If yes, indicate name(s) of
Securities Exchange(s): New York Stock Exchange (NYSE Symbol:                                                  “PLFA
A”).

Depositary:  The Depository Trust
Company.

Authorized Denominations: 
$1,000.

Collateral held in the
Trust:  Protective Life Insurance Company
Funding Agreement No. GA 1847, all proceeds, rights and books and records
related thereto.

Additional Amounts to be Paid: o
Yes  x
No.

Interest Rate or Formula:

Fixed Rate Note: x
Yes o No.  If
yes,

Interest Rate:  3.70%.

Interest Payment
Frequency:

o
Monthly             o
Quarterly

x
Semi-annually   o
Annually

Additional/Other
Terms:  The Interest Payment Dates for
this Note will be the 24th day of each May and November, commencing on
May 24, 2004.

Amortizing Note: o
Yes x No.  If
yes,

Amortization schedule or
formula:  

Additional/Other Terms:

Discount Note: o
Yes x No.  If
yes,

Registered Face Amount:

Total Amount of Discount:

Yield to Maturity:

Additional/Other Terms:

Redemption Provisions: o
Yes  x
No.  If yes,

Initial Redemption Date:

Initial Redemption
Percentage:

Annual Redemption Percentage
Reduction, if any:

Additional/Other Terms:

Repayment Provisions: o
Yes  x
No.  If yes,

Optional Repayment
Date(s):

Additional/Other Terms:

Floating Rate Note: o
Yes x No.  If
yes,

Interest Rate:

Interest Rate Basis(es)
(or Base Rate):

CD Rate o

Commercial Paper Rate o

Federal Funds Rate o

LIBOR o

o
LIBOR Reuters Page:

o
LIBOR Telerate Page:

Designated LIBOR Currency:

Treasury Rate (other than
Constant Maturity Treasury Rate) o

Constant Maturity
Treasury Rate o

Designated CMT Telerate
Page:

    If Telerate Page 7052:

    o
Weekly Average

    o
Monthly Average

Designated CMT Maturity
Index:

Prime Rate o

Other o

Other Base Rate:

Inverse Floating Rate
Note o

Fixed Interest Rate:

Floating Rate/Fixed Rate o

Fixed Interest Rate:

Fixed Rate Commencement
Date:

Index Maturity:

Spread and/or Spread
Multiplier, if any:

Initial Interest Rate, if
any:

Initial Interest Reset
Date:

Interest Reset Dates:

Rate Determination
Date(s):

Interest Payment
Frequency:

o
Monthly              o
Quarterly

o
Semi-Annually   o
Annually

Maximum Interest Rate, if
any:

Minimum Interest Rate, if
any:

Additional/Other Terms:

Regular Record
Date(s):  Each date, whether or not a
business day, that is fifteen calendar days immediately preceding an interest
payment date.

Sinking Fund:  Not applicable.

Day Count Convention:

Computation of Interest:

x
30 over 360           o
Actual over Actual

o
Actual over 360     o
Other (See attached)

Specified Currency:  U.S.
Dollars.

Exchange Rate Agent:  Not
applicable.

Calculation Agent:  Not
applicable.

Additional/Other Terms:  None.

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The Protective Life Secured Trust designated above
(the “Trust”), for value received, hereby promises to pay to Cede & Co., or
its registered assigns, the Principal Amount on the Stated Maturity Date and,
if so specified above, to pay interest thereon from the Original Issue Date
specified above or from the most recent Interest Payment Date specified above
to which interest has been paid or duly provided for at the rate per annum
determined in accordance with the provisions on the reverse hereof and as
specified above, until the principal hereof is paid or made available for
payment and (to the extent that the payment of such interest shall be legally
enforceable) at such rate per annum on any overdue principal and premium and on
any overdue installment of interest as specified above.  Unless otherwise specified above, payments of
principal, premium, if any, and interest hereon will be made in U.S. Dollars,
as defined in the Indenture, dated as of the Original Issue Date specified in
the Pricing Supplement (the “Indenture”), between The Bank of New York (the “Indenture
Trustee”) and the Trust.  If the
Specified Currency set forth above is a currency other than U.S. Dollars, the
Holder shall receive such payments in such Foreign Currency (as hereinafter
defined).  The “Principal Amount” of this
Note at any time means (1) if this Note is a Discount Note (as hereinafter
defined), the Amortized Face Amount (as hereinafter defined) at such time (as
defined in Section 3(b) on the reverse hereof) and (2) in all other
cases, the Registered Face Amount hereof. 
Capitalized terms not otherwise defined herein shall have their meanings
set forth in the Indenture or on the face hereof.

This Note will mature on the Stated Maturity Date,
unless its principal (or, any installment of its principal) becomes due and
payable prior to the Stated Maturity Date whether, as applicable, by the
declaration of acceleration of maturity, notice of redemption at the direction
of the Trust, notice of the Holder’s option to elect repayment or otherwise
(the Stated Maturity Date or any date prior to the Stated Maturity Date on
which the principal amount of this Note becomes due and payable, as the case
may be, are referred to as the “Maturity Date”) with respect to principal of
this Note repayable on such date).

A “Discount Note” is any Note that has an Issue Price
that is less than 100% of the Registered Face Amount thereof by more than a
percentage equal to the product of 0.25% and the number of full years to the Stated
Maturity Date.

Except as provided in the following paragraph, the
Trust will pay interest on each Interest Payment Date specified above,
commencing with the first (1st) Interest Payment Date next succeeding the
Original Issue Date, and on the Maturity Date; provided that
any payment of principal, premium, if any, or interest to be made on any
Interest Payment Date or on a Maturity Date that is not a Business Day (or, if
this Note is a LIBOR Note (as defined in Section 3(d)(v)(D) on the
reverse hereof), a day that is also not a London Business Day (as hereinafter
defined)) shall be made on the next succeeding Business Day (or, if this Note
is a LIBOR Note, on the next succeeding Business Day that is also a London
Business Day) with the same force and effect as if 

 3
 

 

made on such Interest
Payment Date or such Maturity Date, as the case may be, except that with
respect to Interest Payment Dates, other than the Maturity Date, if this Note
is a LIBOR Note and such next succeeding Business Day that is also a London
Business Day falls in the next calendar month, such payment shall be made on
the Business Day that is also a London Business Day immediately preceding the
Interest Payment Date; provided
that, in connection with Floating Rate Notes, and except in the case of an
Interest Payment Date that falls on a Maturity Date, interest will continue to
accrue to but excluding the date the interest is paid.  The term “London Business Day” means a day
other than a Saturday or Sunday on which dealings in deposits in U.S. Dollars
are transacted, or with respect to any future date are expected to be
transacted in the London interbank market. 
Unless otherwise specified above, the interest payable on each Interest
Payment Date or the Maturity Date will be the amount of interest accrued from
and including the Original Issue Date or from and including the last Interest
Payment Date to which interest has been paid or duly provided for, as the case
may be, to, but excluding, such Interest Payment Date or the Maturity Date, as the
case may be.

Unless otherwise specified above, the interest payable
on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Note (or one or more predecessor Notes) is registered
at the close of business on the Regular Record Date for such Interest Payment
Date, which Regular Record Date shall be the fifteenth (15th) calendar day,
whether or not a Business Day, immediately preceding the related Interest
Payment Date; provided
that, notwithstanding any provision of the Indenture to the contrary, interest
payable on any Maturity Date shall be payable to the Person to whom principal
shall be payable; and provided, further, that unless
otherwise specified above, in the case of a Note initially issued between a
Regular Record Date and the Interest Payment Date relating to such Regular
Record Date, interest for the period beginning on the Original Issue Date and
ending on such Interest Payment Date shall be paid on the Interest Payment Date
following the next succeeding Regular Record Date to the registered Holder on
such next succeeding Regular Record Date.

Payments of interest hereon (other than on the
Maturity Date) will be made in accordance with existing arrangements between
the Indenture Trustee and the Depositary. 
Any principal, premium and/or interest payable hereon on the Maturity
Date will be paid by wire transfer in immediately available funds to an account
specified by the Depositary (which account, unless otherwise provided above,
will be at a bank located outside the United States if payable in a Foreign
Currency) upon surrender of this Note at the Corporate Trust Office of the
Indenture Trustee, provided
that this Note is presented to the Indenture Trustee (or any such Paying Agent)
in time for the Indenture Trustee (or any such Paying Agent) to make such
payments in such funds in accordance with its normal procedures.

Unless otherwise specified on the face hereof, the
Holder hereof will not be obligated to pay any administrative costs imposed by
banks in making payments in 

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immediately available
funds by the Trust.  Unless otherwise
specified on the face hereof, any tax assessment or governmental charge imposed
upon payments hereunder, including, without limitation, any withholding tax,
will be borne by the Holder thereof.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS NOTE SET FORTH ON THE REVERSE HEREOF. 
SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
IF SET FORTH AT THIS PLACE.

Unless the certificate of authentication hereon shall
have been executed by the Indenture Trustee pursuant to the Indenture, this
Note shall not be entitled to any benefit under such Indenture or be valid or
obligatory for any purpose.

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IN WITNESS WHEREOF, the Trust has caused this instrument
to be duly executed, by manual or facsimile signature.

	
   

  	
  THE PROTECTIVE LIFE SECURED TRUST

  SPECIFIED ON THE FACE OF THIS NOTE

  
	
   

  	
   

  
	
  Dated: 
  Original Issue Date

  	
  By: Wilmington Trust Company, not in its individual
  capacity but solely as Delaware Trustee.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R. Havrilla

  

 

CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes of the Protective Life
Secured Trust specified on the face of this Note referred to in the
within-mentioned Indenture.

	
  

  	
  THE BANK OF NEW YORK

  
	
   

  	
  As Indenture Trustee

  
	
   

  	
   

  
	
  Dated: 
  Original Issue Date

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Millie Cicero

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  

 6
 

 

[REVERSE OF NOTE]

Section 1.              General.  This Note is one of a duly authorized issue
of Notes of the Protective Life Secured Trust designated on the face hereof
(the “Trust”).  The Series of Notes are
issued pursuant to the Indenture. 
Capitalized terms not otherwise defined herein shall have their meanings
set forth in the Indenture.

Section
2.              Currency.

(a)           Unless specified otherwise on the
face hereof, this Note is denominated in, and payments of principal, premium,
if any, and/or interest, if any, will be made in U.S. Dollars.  If specified as the Specified Currency on the
face hereof this Series of Notes may be denominated in, and payments of
principal, premium, if any, and/or interest, if any, may be made in a currency
other than U.S. Dollars (a “Foreign Currency”). 
If this Note is denominated in a Foreign Currency, the Holder of this
Note is required to pay for this Note in the Specified Currency indicated on
the face hereof.

(b)           Unless otherwise specified on the
face hereof, if payment hereon is required to be made in a Foreign Currency and
such currency is unavailable to the Trust for making payments thereof due to
the imposition of exchange controls or other circumstances beyond the Trust’s
control, or is no longer used by the government of the country which issued
such currency or for the settlement of transactions by public institutions of
or within the international banking community, then the Trust will be entitled
to make payments with respect hereto in U.S. Dollars until such Foreign
Currency is again available or so used. 
The amount so payable on any date in such Foreign Currency shall be
converted into U.S. Dollars at a rate determined by the Exchange Rate Agent on
the basis of the noon buying rate in The City of New York for cable transfers
in the Foreign Currency as certified for customs purposes by the Federal
Reserve Bank of New York (the “Market Exchange Rate”) for such Foreign Currency
on the second (2nd) Business Day prior to such payment date, or on such other
basis as may be specified on the face hereof. 
In the event such Market Exchange Rate is not then available, the Trust
will be entitled to make payments in U.S. Dollars (1) if such Foreign Currency
is not a composite currency, on the basis of the most recently available Market
Exchange Rate for such Foreign Currency or (2) if such Foreign Currency is a
composite currency, including, without limitation, euros, in an amount
determined by the Exchange Rate Agent to be the sum of the results obtained by
multiplying the number of units of each component currency of such composite
currency, as of the most recent date on which such composite currency was used,
by the Market Exchange Rate for such component currency on the second (2nd)
Business Day prior to such payment date (or if such Market Exchange Rate is not
then available, by the most recently available Market Exchange Rate for such
component currency, or as otherwise specified on the face hereof).  Any payment in respect hereof made under such
circumstances in U.S. Dollars will not constitute an Event of Default under the
Indenture.

 7
 

 

(c)           If the official unit of any component
currency of a composite currency is altered by way of combination or
subdivision, the number of units of that currency as a component shall be
divided or multiplied in the same proportion. 
If two or more component currencies are consolidated into a single
currency, the amounts of those currencies as components shall be replaced by an
amount in such single currency equal to the sum of the amounts of the
consolidated component currencies expressed in such single currency.  If any component currency is divided into two
or more currencies, the amount of that original component currency as a
component shall be replaced by amounts of such two or more currencies having an
aggregate value on the date of division equal to the amount of the former
component currency immediately before such division.

(d)           In the event of an official
redenomination of the Specified Currency (including, without limitation, an
official redenomination of any such currency that is a composite currency), the
obligations of the Trust to make payments in or with reference to such currency
shall, in all cases, be deemed immediately following such redenomination to be
obligations to make payments in or with reference to that amount of
redenominated currency representing the amount of such currency immediately
before such redenomination.  In no event
shall any adjustment be made to any amount payable hereunder as a result of (1)
any redenomination of any component currency of any composite currency (unless
such composite currency is itself officially redenominated) or (2) any change
in the value of the specified currency relative to any other currency due
solely to fluctuations in exchange rates.

(e)           All determinations referred to above
made by the Exchange Rate Agent shall be at its sole discretion (except to the
extent expressly provided herein that any determination is subject to approval
by the Trust or the Administrator) and, in the absence of manifest error, shall
be conclusive for all purposes and binding on the Trust, the Indenture Trustee
and the Holder hereof, and the Exchange Rate Agent shall have no liability
therefor.

(f)            All currency exchange costs will be
borne by the Holder hereof by deduction from the payments made hereon.

Section
3.              Determination of
Interest Rate and Certain Other Terms.

(a)           Fixed Rate Notes.

(i)            If this Note is specified on the
face hereof as a “Fixed Rate Note,” for the period from the Original Issue
Date, or from the last Interest Payment Date to which interest has been paid or
duly provided for, as the case may be, the interest rate hereon shall be at the
rate per annum stated on the face hereof until, but excluding the date on which
the Principal Amount is paid or made available 

 8
 

 

for payment.  Unless otherwise specified on the face
hereof, the rate of interest payable on this Note will not be adjusted.

(ii)           Unless otherwise specified on the
face hereof, the Interest Payment Dates for a Note that provides for monthly
interest payments shall be the fifteenth (15th) day of each calendar month,
beginning in the first (1st) calendar month following the month in which the
Note was issued; in the case of a Note that provides for quarterly interest
payments, the Interest Payment Dates shall be the fifteenth (15th) day of every
third (3rd) calendar month, beginning in the third (3rd) calendar month following
the month in which the Note was issued; in the case of a Note that provides for
semi-annual interest payments, the Interest Payment Dates shall be the
fifteenth (15th) day of every sixth (6th) calendar month, beginning in the
sixth (6th) calendar month following the month in which the Note was issued;
and in the case of a Note that provides for annual interest payments, the
Interest Payment Date shall be the fifteenth (15th) day of every twelfth
calendar month, beginning in the twelfth (12th) calendar month following the
month in which the Note was issued. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months or, in the case of an incomplete month, the number of days
elapsed.

(b)           Discount Notes.

(i)            If this Note is specified on the
face hereof as a “Discount Note,” this Note shall bear interest at the rate set
forth on the face hereof in the same manner as set forth in Section 3(a)
above, and payments of principal and interest shall be made as set forth on the
face hereof.

(ii)           In the event a Discount Note is
redeemed, repaid or accelerated, the amount payable to the Holder of such Note
on the Maturity Date will be equal to the sum of (1) the Issue Price (increased
by any accruals of Discount) and, in the event of any redemption of Discount
Notes, if applicable, multiplied by the Initial Redemption Percentage (as
adjusted by the Annual Redemption Percentage Reduction, if applicable); and (2)
any unpaid interest accrued on such Discount Notes to the Maturity Date (the “Amortized
Face Amount”).  For purposes of
determining the amount of Discount that has accrued as of any date on which a
redemption, repayment or acceleration of this Note occurs for Discount Notes,
the Discount will be accrued using a Constant Yield Method.  The Constant Yield Method will be calculated
using a 30-day month, 360-day year convention, a compounding period that,
except for the Initial Period (as defined below), corresponds to the shortest
period between Interest Payment Dates for the Discount Notes (with ratable
accruals within a compounding period), a coupon rate equal to the initial
coupon rate applicable to the applicable Discount Notes and an assumption that
the Stated Maturity Date of such Discount Notes will not 

 9
 

 

be accelerated.  If the period from the Original Issue Date to
the first (1st) Interest Payment Date for Discount Notes (the “Initial Period”)
is shorter than the compounding period for such Discount Notes, a proportionate
amount of the yield for an entire compounding period will be accrued.  If the Initial Period is longer than the
compounding period, then the period will be divided into a regular compounding
period and a short period with the short period being treated as provided
above.

(c)           Amortizing Notes.

(i)            If this Note is specified on the
face hereof as an “Amortizing Note,” this Note shall bear interest at the rate
set forth on the face hereof, in the same manner as set forth in Section
3(a) above and payments of principal, premium (if any) and interest shall
be made as set forth on the face hereof and/or in accordance with Schedule I attached hereto.

(ii)           If it is specified on the face hereof
that this Note is an Amortizing Note, the Trust will make payments combining
principal, premium (if any) and interest, if applicable, on the dates and in
the amounts set forth in the table, or in accordance with the formula,
appearing in Schedule I, attached to this Note.  If this Note is an Amortizing Note, payments
made hereon will be applied first to interest due and payable on each such payment
date and then to the reduction of the Outstanding Face Amount.  The term “Outstanding Face Amount” means, at
any time, the amount of unpaid principal hereof at such time.

(d)           Floating Rate Notes.

(i)            If this Note is specified on the
face hereof as a “Floating Rate Note,” interest on this Note shall accrue and
be payable in accordance with this Section 3(d).  A Floating Rate Note may be a CD Rate Note,
Commercial Paper Rate Note, Federal Funds Rate Note, LIBOR Note, Treasury Rate
Note, Constant Maturity Treasury Rate Note, a Prime Rate Note, an Inverse
Floating Rate Note or a Floating Rate/Fixed Rate Note.  For the period from the Original Issue Date
to, but not including, the first (1st) Interest Reset Date set forth on the
face hereof, the interest rate hereon shall be the Initial Interest Rate
specified on the face hereof. 
Thereafter, the interest rate hereon will be reset as of and be
effective as of each Interest Reset Date; provided, however,
that the interest rate in effect for the ten (10) days immediately prior to the
Maturity Date will be that in effect on the tenth (10th) day preceding such
Maturity Date.

(A)          Unless specified otherwise on the face
hereof, Interest Reset Dates are as follows: 
(1) in the case of Notes that reset daily, each Business Day, (2) in the
case of Notes that reset weekly, other than 

 10
 

 

Treasury Rate Notes, the
Wednesday of each week, (3) in the case of Treasury Rate Notes that reset
weekly and except as provided below under “Treasury Rate Notes,” the Tuesday of
each week, (4) in the case of Notes that reset monthly, the fifteenth (15th)
day of each calendar month, beginning in the first (1st) calendar month
following the month in which the Note was issued, (5) in the case of Notes that
reset quarterly, the fifteenth (15th) day of every third (3rd) calendar month,
beginning in the third (3rd) calendar month following the month in which the
Note was issued, (6) in the case of Notes that reset semiannually, the
fifteenth (15th) day of every sixth (6th) calendar month, beginning in the
sixth (6th) calendar month following the month in which the Note was issued and
(7) in the case of Notes that reset annually, the fifteenth (15th) day of
every twelfth (12th) calendar month, beginning in the twelfth (12th) calendar
month following the month in which the Note was issued.

(B)           If any Interest Reset Date would
otherwise be a day that is not a Business Day (or, if this Note is a LIBOR
Note, a day or Business Day that is not a London Business Day), such Interest
Reset Date shall be postponed to the next day that is also a Business Day (or,
if this Note is a LIBOR Note, to the next Business Day that is a London
Business Day); provided, however, that if this
Note is a LIBOR Note and such Business Day that is also a London Business Day
is in the next succeeding calendar month, such Interest Reset Date shall be the
Business Day that is also a London Business Day immediately preceding such
Reset Date.  If this Note is a Treasury
Rate Note (as defined below) and an auction date for direct obligations of
United States securities shall fall on any Interest Reset Date, then such
Interest Reset Date shall instead be the first (1st) Business Day immediately
following such auction date.

(C)           If this Note has more than one
Interest Reset Date, accrued interest will be calculated by multiplying the
Principal Amount of the Note specified on the face hereof by an Accrued
Interest Factor.  The Accrued Interest
Factor will be computed by adding the interest factors calculated for each day
in the Interest Reset Period for which accrued interest is being
calculated.  The Interest Reset Period is
the period from each Interest Reset Date to, but not including, the following
Interest Reset Date.  Unless otherwise
specified on the face hereof, the Interest Factor for each such day will be
computed by dividing the interest rate in effect on that day by 360, in the
case of CD Rate Notes, Commercial Paper Rate Notes, Federal Funds Rate Notes,
LIBOR Notes and Prime Rate Notes.  In the
case of Treasury Rate Notes and Constant Maturity Treasury Rate Notes, the
Interest Factor for each such day will be computed by dividing the interest
rate by the actual number of days in the year. 
The Interest 

 11
 

 

Rate Basis shall be set
forth on the face hereof and shall be the Interest Rate Basis, as adjusted in
accordance with any Spread or Spread Multiplier and subject to any Maximum
Interest Rate or Minimum Interest Rate specified on the face hereof.  Notwithstanding Section 3(d)(i)(E)
below, the Interest Factor will be expressed as a decimal calculated to seven
decimal places without rounding.  For
purposes of making the foregoing calculation, the interest rate in effect on
any Interest Reset Date will be the applicable rate as reset on that date.  Unless otherwise specified on the face hereof,
the interest rate that is effective on the applicable Interest Reset Date will
be determined on the applicable Rate Determination Date and calculated on the
applicable Calculation Date.  Unless
otherwise specified on the face hereof, the interest rate in effect for each
day to and excluding the next Interest Reset Date will be the interest rate
that was in effect on the preceding Interest Reset Date.  “Calculation Date” means the date by which
the Calculation Agent specified on the face hereof, is to calculate the
interest rate which will be the earlier of (1) the fifth (5th) Business Day
after the related Rate Determination Date, or if any such day is not a Business
Day, the next Business Day and (2) the Business Day preceding the applicable
Interest Payment Date or the Maturity Date.

(D)          If this Note has one Interest Reset
Date, accrued interest will be calculated by multiplying the Principal Amount
of the Note specified on the face hereof by the interest rate in effect during
the period for which accrued interest is being calculated.  That product is then multiplied by the
quotient obtained by dividing the number of days in the period for which
accrued interest is being calculated by 360, in the case of CD Rate Notes,
Commercial Paper Rate Notes, Federal Funds Rate Notes, LIBOR Notes and Prime
Rate Notes.  In the case of Treasury Rate
Notes and Constant Maturity Treasury Rate Notes, the product is multiplied by
the quotient obtained by dividing the number of days in the period for which
accrued interest is being calculated by the actual number of days in the year.

(E)           Unless otherwise specified on the
face hereof, all percentages resulting from any calculation of the interest
rate on this Note will be rounded, if necessary, to the nearest 1/100,000 of 1%
(.0000001), with five one-millionths of a percentage point rounded upward.  All currency amounts used in, or resulting
from, the calculation on a Floating Rate Note will be rounded to the nearest
one-hundredth of a unit.  For purposes of
such rounding, .005 of a unit will be rounded upward.

 12

 

(ii)           Unless otherwise specified on the
face hereof and except as provided below, interest will be payable as follows:
(1) if the Reset Date for a Note is daily, weekly or monthly, interest will be
payable on the fifteenth (15th) day of each calendar month, beginning in the
first (1st) calendar month following the month in which the Note was issued,
(2) if the Reset Date for a Note is quarterly, interest will be payable on the
fifteenth (15th) day of every third (3rd) calendar month, beginning in the
third (3rd) calendar month following the month in which the Note was issued,
(3) if the Reset Date for a Note is semiannually, interest will be payable on
the fifteenth (15th) day of every sixth (6th) calendar month, beginning in the
sixth (6th) calendar month following the month in which the Note was issued,
(4) if the Reset Date for a Note is annually, interest will be payable on the
fifteenth (15th) day of every twelfth (12th) calendar month, beginning in the
twelfth (12th) calendar month following the month in which the Note was
issued.  In each of these cases, interest
will also be payable on the Maturity Date.

(iii)          If specified on the face hereof, this
Note may have either or both of a Maximum Interest Rate or Minimum Interest
Rate.  If a Maximum Interest Rate is so
designated, the interest rate for a Floating Rate Note cannot ever exceed such
Maximum Interest Rate and in the event that the interest rate on any Interest
Reset Date would exceed such Maximum Interest Rate (as if no Maximum Interest
Rate were in effect) then the interest rate on such Reset Date shall be the
Maximum Interest Rate.  If a Minimum
Interest Rate is so designated, the interest rate for a Floating Rate Note
cannot ever be less than such Minimum Interest Rate and in the event that the
interest rate on any Interest Reset Date would be less than such Minimum
Interest Rate (as if no Minimum Interest Rate were in effect) then the interest
rate on such Reset Date shall be the Minimum Interest Rate.  Notwithstanding anything to the contrary contained
herein, the interest rate on a Floating Rate Note shall not exceed the maximum
interest rate permitted by applicable law.

(iv)          All determinations of interest by the
Calculation Agent will, in the absence of manifest error, be conclusive for all
purposes and binding on the Trust, the Indenture Trustee and the Holder of this
Note and neither the Trust, the Indenture Trustee nor the Calculation Agent
shall have any liability to the Holder of this Note in respect of any
determination, calculation, quote or rate made or provided by the Calculation
Agent.  Upon request of the Holder of
this Note, the Calculation Agent will provide the interest rate then in effect
and, if determined, the interest rate that will become effective on the next
Interest Reset Date with respect to this Note. 
The Calculation Agent will notify the Indenture Trustee, Paying Agent,
Registrar, the Trust and if this Note is listed on a stock exchange, and the
rules of such exchange so require, such exchange of each determination of the interest
rate, Initial Interest Period, Interest Reset Period, and interest amount 

 13
 

 

payable applicable to
this Note promptly after such determination is made.  If the Calculation Agent is incapable or
unwilling to act as such or if the Calculation Agent fails duly to establish
the interest rate for any interest accrual period or to calculate the interest
amount or any other requirements, the Trust will appoint the Paying Agent or
another leading commercial bank to act as such in its place.

(v)           Subject to applicable provisions of
law and except as specified herein, on each Interest Reset Date, the rate of
interest on this Note on and after the first (1st) Interest Reset Date shall be
the interest rate determined in accordance with the provisions of the heading
below which has been designated as the Interest Rate Basis on the face hereof,
the base rate, plus or minus the Spread, if any, specified on the face hereof
and/or multiplied by the Spread Multiplier, if any, specified on the face
hereof.

(A)          CD Rate Notes.  If the Interest Rate Basis is the CD Rate,
this Note shall be deemed to be a “CD Rate Note.” A CD Rate Note will bear
interest at the interest rate calculated with reference to the CD Rate and the
Spread or Spread Multiplier, if any.  The
Calculation Agent will determine the CD Rate for each CD Rate Determination
Date by the Calculation Date pertaining to such CD Rate Determination
Date.  The CD Rate Determination Date is
the second (2nd) Business Day prior to the Interest Reset Date for each
Interest Reset Period.  Unless otherwise
specified on the face hereof, “CD Rate” means the rate for negotiable
certificates of deposit having the Index Maturity specified on the face hereof
as published in H.15(519) under the heading “CDs (Secondary Market)” or, if not
so published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such CD Rate Determination Date, the CD Rate for the Interest
Reset Period will be the rate on such date for negotiable certificates of
deposit of the applicable Index Maturity as published in the H.15 Daily Update
under the heading “CDs (Secondary Market).” 
If such rate is not yet published in either H.15(519) or the H.15 Daily
Update by 3:00 p.m., New York City time, on such Calculation Date, then the CD
Rate will be the arithmetic mean of the secondary market offered rates as of
3:00 p.m., New York City time, on such date, of three (3) leading nonbank
dealers in negotiable U.S. Dollar certificates of deposit in New York City
selected by the Calculation Agent after consultation with the Trust for
negotiable certificates of deposit of major United States money center banks of
the highest credit standing (in the market for negotiable certificates of
deposit) with a remaining maturity closest to the applicable Index Maturity in
a denomination of $5,000,000; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting as mentioned
above, the CD Rate for the applicable Interest Reset Period will be the CD Rate
for the 

 14
 

 

immediately preceding
Interest Reset Period.  If there was no
such Interest Reset Period, the CD Rate shall be the Initial Interest
Rate.  “H.15(519)” means the publication
entitled “Statistical Release H.15(519), Selected Interest Rates,” or any
successor publication, published weekly by the Board of Governors of the
Federal Reserve System; and “H.15 Daily Update” means the daily update of the
Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/update/, or any successor site or
publication.

(B)           Commercial Paper Rate Notes.  If the Interest Rate Basis is the Commercial
Paper Rate, this Note shall be deemed to be a “Commercial Paper Rate Note.” A
Commercial Paper Rate Note will bear interest for each Interest Reset Period at
the interest rate calculated with reference to the Commercial Paper Rate and
the Spread or Spread Multiplier, if any. 
The Calculation Agent will determine the Commercial Paper Rate for each
Commercial Paper Rate Determination Date by the Calculation Date pertaining to
such Commercial Paper Rate Determination Date. 
The Commercial Paper Rate Determination Date is the second (2nd)
Business Day prior to the Interest Reset Date for each Interest Reset Date for
each Interest Reset Period.  Unless
otherwise specified on the face hereof, “Commercial Paper Rate” means the Money
Market Yield (calculated as described below) on the Calculation Date of the
rate for commercial paper having the Index Maturity specified on the face
hereof as such rate is published in H.15(519) under the heading “Commercial
Paper — Nonfinancial.”  If such rate is
not published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such Commercial Paper Rate Determination Date, then the
Commercial Paper Rate for the Interest Reset Period shall be the Money Market
Yield of the rate on such date for commercial paper having the applicable Index
Maturity as published in the H.15 Daily Update or such other recognized
electronic source used for the purpose of displaying such rate, under the
heading “Commercial Paper — Nonfinancial.” 
If such rate is not yet published in either H.15(519) or H.15 Daily
Update or such other recognized electronic source used for the purpose of
displaying this rate, by 3:00 p.m., New York City time, on such Calculation
Date, then the Commercial Paper Rate for the Interest Reset Period shall be the
Money Market Yield of the arithmetic mean of the offered rates, as of 3:00
p.m., New York City time, on such date, of three (3) leading dealers of
commercial paper in New York City selected by the Calculation Agent after
consultation with the Trust for commercial paper having the applicable Index
Maturity placed for an industrial issuer whose bond rating is “AA” or the
equivalent, from a nationally recognized securities rating agency; provided, however, that if the dealers selected by the
Calculation Agent are not quoting offered rates 

 15
 

 

as mentioned
above, the Commercial Paper Rate for the Interest Reset Period will be the same
as the Commercial Paper Rate for the immediately preceding Interest Reset
Period.  If there was no such Interest
Reset Period, the Commercial Paper Rate will be the Initial Interest Rate.  “Money Market Yield” shall be a yield
calculated in accordance with the following formula:

	
  Money Market Yield

  	
  =

  	
  D X 360

  	
  x

  	
  100

  
	
   

  	
   

  	
  360 - (D X M)

  	
   

  	
   

  

 

where “D” refers
to the per annum rate for commercial paper quoted on a bank discount basis and
expressed as a decimal; and “M” refers to the actual number of days in the
applicable Index Maturity.

(C)           Federal Funds Rate Notes.  If the Interest Rate Basis is the Federal
Funds Rate, this Note shall be deemed to be a “Federal Funds Rate Note.” A
Federal Funds Rate Note will bear interest for each Interest Reset Period at
the interest rate calculated with reference to the Federal Funds Rate and the
Spread or Spread Multiplier, if any.  The
Calculation Agent will determine the Federal Funds Rate for each Federal Funds
Rate Determination Date by the Calculation Date pertaining to such Federal
Funds Rate Determination Date.  The
Federal Funds Rate Determination Date is the second (2nd) Business Day prior to
the Interest Reset Date for each Interest Reset Period.  Unless otherwise specified on the face
hereof, “Federal Funds Rate” means the rate for Federal Funds as published in
H.15(519) under the heading “Federal Funds (Effective),” as this rate is
displayed on Moneyline Telerate, Inc. on page 120, or any successor service or
page (“Telerate Page 120”) or, if not so displayed or published by 3:00 p.m.,
New York City time, on the Calculation Date pertaining to such Rate
Determination Date, the Federal Funds Rate for the Interest Reset Period will
be the rate on such Calculation Date as published in the H.15 Daily Update, or
another recognized electronic source used for the purpose of displaying this
rate, under the heading “Federal Funds (Effective).”  If such rate is not yet published in either
H.15(519), H.15 Daily Update or another recognized electronic source used for
the purpose of displaying this rate by 3:00 p.m., New York City time, on the
Calculation Date then the Federal Funds Rate for such Interest Reset Period
will be the arithmetic mean of the rates, as of 3:00 p.m., New York City time,
on the Calculation Date, for the last transaction in overnight Federal Funds
arranged by three (3) leading brokers of Federal Funds transactions in New York
City selected by the Calculation Agent after consultation with the Trust.  If the dealers selected by the Calculation
Agent, however, are not quoting rates as described above, the Federal 

 16
 

 

Funds Rate for the
Interest Reset Period will be the same as the Federal Funds Rate in effect for
the immediately preceding Interest Reset Period.  If there was no such Interest Reset Period,
the Federal Funds Rate will be the Initial Interest Rate.

If this Note is a Federal
Funds Rate Note that resets daily, the interest rate on the Note for the period
from and including a Monday to, but excluding, the succeeding Monday will be
reset by the Calculation Agent on the second (2nd) Monday, or, if not a
Business Day, on the next Business Day, to a rate equal to the average of the
Federal Funds Rates in effect for each such day in such week.

(D)          LIBOR Notes.  If the Interest Rate Basis is LIBOR, this Note
shall be deemed to be a “LIBOR Note.” A LIBOR Note will bear interest for each
Interest Period at the interest rate calculated with reference to LIBOR and the
Spread or Spread Multiplier, if any.  The
Calculation Agent will determine LIBOR for each LIBOR Determination Date by the
Calculation Date pertaining to such LIBOR Determination Date.  The LIBOR Determination Date is the second
(2nd) London Business Day prior to the Interest Reset Date for each Interest
Reset Period.

(1)           Unless otherwise indicated on the
face hereof, on a LIBOR Determination Date, the Calculation Agent will
determine LIBOR for each Interest Reset Period as follows:

The Calculation Agent
will determine the offered rates for deposits in U.S. Dollars for the period of
the Index Maturity specified on the face hereof, commencing on the Interest
Reset Date, which appears on the “designated LIBOR page” as of 11:00 a.m.,
London time, on that LIBOR Determination Date. 
If “LIBOR Telerate” is designated on the face hereof, “designated LIBOR
page” means the display on Moneyline Telerate, Inc. on page 3750, or any
successor service or page for the purpose of displaying the London interbank
offered rates of major banks.  If “LIBOR
Reuters” is designated on the face hereof, “designated LIBOR page” means the
arithmetic mean determined by the Calculation Agent of the two (2) or more
offered rates (unless the designated LIBOR page by its terms provides only for
a single rate, in which case such single rate shall be used) on the display on
the Reuters Monitor Money Rates Service Page “LIBOR,” or any successor service
or page for the purpose of displaying the London interbank offered rates of
major banks.  If neither “LIBOR Telerate”
nor “LIBOR 

 17
 

 

Reuters” is specified on
the face hereof, LIBOR will be determined as if LIBOR Telerate had been
specified.

(2)           If LIBOR cannot be determined on a
LIBOR Determination Date as described above, then the Calculation Agent will
determine LIBOR as follows:

The Calculation Agent
will select four (4) major banks in the London interbank market after
consultation with the Trust.  The
Calculation Agent will request that the principal London offices of those four
(4) selected banks provide their offered quotations to prime banks in the London
interbank market at approximately 11:00 a.m., London time, on the LIBOR
Determination Date.  These quotations
will be for deposits in U.S. Dollars for the period of the Index Maturity
specified on the face hereof, commencing on the Interest Reset Date.  Offered quotations must be based on a
principal amount equal to an amount that is representative of a single
transaction in U.S. Dollars in the market at the time.  If two (2) or more quotations are provided,
LIBOR for the Interest Reset Period will be the arithmetic mean of the
quotations.  If fewer than two (2)
quotations are provided, the Calculation Agent will select three (3) major
banks in New York City after consultation with the Trust and then determine
LIBOR for the Interest Reset Period as the arithmetic mean of rates quoted by
those three (3) major banks in New York City to leading European banks at
approximately 3:00 p.m., New York City time, on the LIBOR Determination
Date.  The rates quoted will be for loans
in U.S. Dollars, for the period of the Index Maturity specified on the face
hereof, commencing on the Interest Reset Date. 
Rates quoted must be based on a principal amount equal to an amount that
is representative of a single transaction in U.S. Dollars in the market at the
time.  If fewer than three (3) New York
City banks selected by the Calculation Agent are quoting rates, LIBOR for the
Interest Reset Period will be the same as LIBOR for the immediately preceding
Interest Reset Period.  If there was no
such Interest Reset Period, LIBOR will be the Initial Interest Rate.

(E)           Treasury Rate Notes.

(1)           If the Interest Rate Basis is the
Treasury Rate, this Note shall be deemed to be a “Treasury Rate Note.” A
Treasury Rate Note will bear interest for each Interest Reset Period at the
interest rate calculated with reference to the Treasury Rate and the 

 18
 

 

Spread or Spread
Multiplier, if any.  The Calculation
Agent will determine the Treasury Rate for each Treasury Rate Determination
Date by the Calculation Date pertaining to such Treasury Rate Determination
Date.  Unless “Constant Maturity Treasury
Rate” is specified on the face hereof and unless otherwise set forth on the
face hereof, the Treasury Rate for each Interest Reset Period will be the rate
for the auction held on the Treasury Rate Determination Date for the Interest
Reset Period of U.S. treasury securities having the Index Maturity specified on
the face hereof as that rate appears on the display on Moneyline Telerate, Inc.
(or any successor service) on page 56 (or any other page as may replace this
page on that service) under the heading “Investment Rate” or, if not so
published by 3:00 p.m., New York City time, on such Calculation Date pertaining
to the Treasury Rate Determination Date, then the Treasury Rate for the
Interest Reset Period will be the auction average rate (expressed as a bond
equivalent on the basis of a year of 365 or 366 days, as applicable, and
applied on a daily basis) on such Treasury Rate Determination Date as otherwise
announced by the United States Department of the Treasury.  In the event that the results of the auction
are not published or reported as provided above by 3:00 p.m., New York City
time, on such Calculation Date, or if no such auction is held on such Treasury
Rate Determination Date, then the Treasury Rate for such Interest Reset Period
shall be the rate having the Index Maturity specified on the face hereof as
published in H.15(519) under the heading “U.S. Government Securities—Treasury
bills (Secondary Market)” or, if not published by 3:00 p.m., New York City
time, on the Calculation Date, the rate on the Treasury Rate Determination Date
of treasury securities as published in H.15 Daily Update, or another recognized
electronic source used for the purpose of displaying that rate, under the
heading “U.S. Government Securities—Treasury Bills (Secondary Market).”  If none of the above rates is published by
3:00 p.m., New York City time on the Calculation Date, then the Treasury Rate
shall be calculated as a yield to maturity (expressed as a bond equivalent on
the basis of a year of 365 or 366 days, as applicable, and applied on a daily
basis) of the arithmetic mean of the secondary market bid rates as of
approximately 3:30 p.m., New York City time, on such Treasury Rate
Determination Date, of three (3) leading primary United States government securities
dealers selected by the Calculation Agent for the issue of treasury securities
with a remaining maturity closest to the Index Maturity specified on the face
hereof, provided, however, that if the dealers
selected as aforesaid by the 

 19
 

 

Calculation Agent are not
quoting bid rates as mentioned above, then the Treasury Rate for the Interest
Reset Period will be the same as the Treasury Rate for the immediately
preceding Interest Reset Period.  If
there was no such Interest Reset Period, the Treasury Rate will be the Initial
Interest Rate.

(2)           The “Treasury Rate Determination Date”
for each Interest Reset Period will be the day of the week in which the
Interest Reset Date for such Interest Reset Period falls on which treasury
securities would normally be auctioned. 
Treasury securities are normally sold at auction on Monday of each week,
unless that day is a legal holiday, in which case the auction is normally held
on the following Tuesday, except that such auction may be held on the preceding
Friday.  If, as the result of a legal
holiday, an auction is so held on the preceding Friday, such Friday will be the
Treasury Rate Determination Date pertaining to the Interest Reset Period
commencing in the next succeeding week. 
If an auction date shall fall on any day that would otherwise be an
Interest Reset Date for a Treasury Rate Note, then such Interest Reset Date
shall instead be the Business Day immediately following such auction date.

(F)           Constant Maturity Treasury Rate
Notes.

(1)           If the Interest Rate Basis is the
Constant Maturity Treasury Rate, this Note shall be deemed to be a “Constant
Maturity Treasury Rate Note.”  A Constant
Maturity Treasury Rate Note will bear interest for each Interest Reset Period
at the interest rate calculated with reference to the Constant Maturity
Treasury Rate and the Spread or Spread Multiplier, if any.  If “Constant Maturity Treasury Rate” is
specified on the face hereof and unless otherwise specified on the face hereof,
“Constant Maturity Treasury Rate” for each Interest Reset Period will be the
rate displayed on the Designated Constant Maturity Treasury Page (as defined
below) under the caption “Treasury Constant Maturities” under the column for
the Designated CMT Maturity Index for either (1) that Constant Maturity Treasury
Rate Determination Date (as hereinafter defined), if the Designated Constant
Maturity Treasury Page is 7051 (or any other page that may replace this page on
that service); or (2) the week, or the month, as set forth on the face hereof,
ended immediately preceding the week in which the Calculation Date pertaining
to the Constant Maturity Treasury Rate Determination Date occurs, if the
Designated Constant 

 20
 

 

Maturity Treasury Page is
7052 (or any other page that may replace this page on that service).

If the Treasury Rate is
no longer displayed on the Designated Constant Maturity Treasury Page, or if
not displayed by 3:00 p.m., New York City time, on the Calculation Date
pertaining to the Constant Maturity Treasury Rate Determination Date, then the
Constant Maturity Treasury Rate will be the Treasury Constant Maturity rate for
the Designated CMT Maturity Index (as hereinafter defined) as published in
H.15(519) for the Constant Maturity Treasury Rate Determination Date.  If the Constant Maturity Treasury Rate is no
longer published, or if not published in H.15(519) by 3:00 p.m., New York City
time, on the Calculation Date pertaining to the Constant Maturity Treasury Rate
Determination Date, then the Constant Maturity Treasury Rate for that Constant
Maturity Treasury Rate Determination Date will be the Treasury Constant
Maturity rate for the Designated CMT Maturity Index (or other United States
Treasury Rate for the Designated CMT Maturity Index) for that Constant Maturity
Treasury Rate Determination Date with respect to the Interest Reset Date then
published by either the Board of Governors of the Federal Reserve System or the
United States Department of the Treasury that the Calculation Agent determines
is comparable to the rate formerly displayed on the Designated Constant
Maturity Treasury Page and published in the relevant H.15(519).  If the information in the immediately
preceding sentence is not available by 3:00 p.m., New York City time, on the
Calculation Date pertaining to the Constant Maturity Treasury Rate
Determination Date, then the Calculation Agent will calculate the Constant
Maturity Treasury Rate to be a yield to maturity, based on the arithmetic mean
of the secondary market offer side prices as of approximately 3:30 p.m., New
York City time, on the Constant Maturity Treasury Rate Determination Date
reported, according to their written records, by three (3) leading primary
United States government securities dealers (each, a “CMT Reference Dealer”) in
the City of New York selected by the Calculation Agent.  The three (3) CMT Reference Dealers shall be
selected from five CMT Reference Dealers selected by the Calculation Agent by
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest), for the most recently issued direct noncallable fixed rate obligations
of the United States (“Treasury Notes”) with an original maturity of
approximately the Designated 

 21
 

 

CMT Maturity Index and a
remaining term to maturity of not less than such Designated CMT Maturity Index
minus one year.  If the Calculation Agent
cannot obtain three (3) Treasury Note quotations as described above, the
Treasury Rate will be a rate with a yield to maturity based on the arithmetic
mean of the secondary market offer side prices as of approximately 3:30 p.m.,
New York City time, on the Constant Maturity Treasury Rate Determination Date
of three (3) CMT Reference Dealers in the City of New York.  The three (3) CMT Reference Dealers shall be
selected from five CMT Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest), for Treasury Notes with an original maturity of the number of years
that is the next highest to the Designated CMT Maturity Index and a remaining
term to maturity closest to the Designated CMT Maturity Index and in an amount
of at least $100 million.  If two (2) of
these Treasury Notes have remaining terms to maturity equally close to the
Designated CMT Maturity Index, the quotes for the Treasury Note with the
shorter remaining term to maturity will be used.  If fewer than five but more than two (2) CMT
Reference Dealers are quoting as described above, then the Treasury Rate will
be based on the arithmetic mean of the offer prices obtained and neither the
highest nor lowest of those quotes will be eliminated; provided,
however, that if fewer than three (3) CMT Reference Dealers are
quoting as described above, then the Constant Maturity Treasury Rate for the
Interest Reset Period will be the same as the Constant Maturity Treasury Rate
for the immediately preceding Interest Reset Period.  If there was no such Interest Reset Period,
the Constant Maturity Treasury Rate will be the Initial Interest Rate.

(2)           For purposes of Constant Maturity
Treasury Rate Notes, the “Constant Maturity Treasury Rate Determination Date”
will be the tenth (10th) Business Day prior to the Interest Reset Date for the
applicable Interest Reset Period.  “Designated
Constant Maturity Treasury Page” means the display on Moneyline Telerate, Inc.
on the page designated on the face hereof, or any successor service or page for
the purpose of displaying Treasury Constant Maturities as reported in
H.15(519).  If that page is not specified
on the face hereof, the Designated Constant Maturity Treasury Page shall be
7052, for the most recent week.  “Designated
CMT Maturity Index” means the original period to maturity of the Treasury Notes
(either 1, 2, 3, 5, 7, 10, 20, or 30 

 22
 

 

years) designated on the
face hereof with respect to which the Constant Maturity Treasury Rate will be
calculated.  If no such maturity is
specified on the face hereof, the Designated CMT Maturity Index shall be 2
years.

(G)           Prime Rate Notes.  If the Interest Rate Basis is the Prime Rate,
this Note shall be deemed to be a “Prime Rate Note.”  A Prime Rate Note will bear interest for each
Interest Reset Period calculated with reference to the Prime Rate and the
Spread or Spread Multiplier, if any, specified on the face hereof.  The Calculation Agent will determine the
Prime Rate for each Interest Reset Period on each Prime Rate Determination Date
by the Calculation Date pertaining to such Prime Rate Determination Date.  The Prime Rate Determination Date is the
second (2nd) Business Day prior to the Interest Reset Date for each Interest
Reset Period.  Unless otherwise specified
on the face hereof, “Prime Rate” means the rate on the Calculation Date made
available and subsequently published on the Calculation Date in H.15(519) under
the heading “Bank Prime Loan” or, if not so published by 3:00 p.m., New York
City time, on the Calculation Date pertaining to such Prime Rate Determination
Date, the Prime Rate will be the rate on that day as published in the H.15
Daily Update or another recognized electronic source used for the purpose of
displaying this rate, under the heading “Bank Prime Loan,” or if neither such
rate is published by 3:00 p.m., New York City time, on such Calculation Date
pertaining to the Prime Rate Determination Date, the Prime Rate will be the
arithmetic mean of the rates of interest offered by various banks that appear
on the Reuters Screen USPRIME1 Page (hereinafter defined) as each such bank’s
prime rate or base lending rate as in effect for the Prime Rate Determination
Date.  If fewer than four (4) such rates
appear on the Reuters Screen USPRIME1 Page, the Calculation Agent will select
three (3) major banks in New York City after consultation with the Trust.  The Prime Rate will be the arithmetic mean of
the prime rates quoted by those three (3) banks on the basis of the actual
number of days in the year divided by a 360-day year as of the close of
business on such Prime Rate Determination Date; provided, however,
that if fewer than three (3) banks in New York City are quoting as mentioned in
this sentence, the Prime Rate for the Interest Reset Period will be the same as
the Prime Rate in effect for the immediately preceding Interest Reset
Period.  If there was no such Interest
Reset Period, the Prime Rate will be the Initial Interest Rate.  “Reuters Screen USPRIME1 Page” means the
display designated as page “USPRIME1” on the Reuters Monitor Money Rates
Service, or any successor service or page, for the purpose of displaying prime
rates or base lending rates of major United States banks.

 23
 

 

(H)          Inverse Floating Rate Notes.  If this Note is designated as an Inverse
Floating Rate Note on the face hereof, the Inverse Floating Rate shall be equal
to (1) in the case of the period, if any, commencing on the Original Issue Date
(or such other date which may be specified on the face hereof as the date on
which this Note shall begin to accrue interest), up to the first (1st) Interest
Reset Date, a fixed rate of interest established by the Trust as specified on
the face hereof, and (2) in the case of each period commencing on an Interest
Reset Date, a fixed rate of interest as specified on the face hereof minus the
interest rate determined based on the Interest Rate Basis as adjusted by the
Spread or Spread Multiplier, if any; provided, however, that (1) the
interest rate will not be less than zero and (2) the interest rate in effect
for the ten (10) days immediately prior to the Maturity Date will be that in
effect on the tenth (10th) day preceding the Maturity Date.

(I)            Floating Rate/Fixed Rate Notes.  If this Note is designated as a “Floating
Rate/Fixed Rate Note” on the face hereof, this Note will be a Floating Rate
Note for a specified portion of its term and a Fixed Rate Note for the
remainder of its term, commencing on the Fixed Rate Commencement Date specified
on the face hereof, in which event the interest rate on this Note will be
determined as provided herein as if it were a Floating Rate Note and a Fixed
Rate Note hereunder for each such respective period.

Section 4.              Optional Redemption.  If no redemption right is set forth on the
face hereof, this Note may not be redeemed prior to the Stated Maturity Date,
except as set forth in the Indenture.  If
a Redemption Right is set forth on the face of this Note, the Trust shall elect
to redeem this Note on the Interest Payment Date after the Initial Redemption
Date set forth on the face hereof on which the Funding Agreement is to be
redeemed in whole or in part by Protective Life Insurance Company (“Protective
Life”) (each, a “Redemption Date”), in which case this Note must be redeemed on
such Redemption Date in whole or in part, as applicable, in increments of
$1,000 at the applicable Redemption Price (as defined below), together with
unpaid interest accrued thereon to the applicable Redemption Date.  “Redemption Price” shall mean an amount equal
to the Initial Redemption Percentage (as adjusted
by the Annual Redemption Percentage Reduction, if applicable) multiplied by the
unpaid Principal Amount of this Note to be redeemed.  The unpaid Principal Amount of this Note to
be redeemed shall be determined by multiplying (1) the Outstanding Principal
Amount of this Note by (2) the quotient derived by dividing (A) the outstanding
principal amount of the Funding Agreement to be redeemed by Protective Life, by
(B) the outstanding principal amount of the Funding Agreement.  The Initial Redemption Percentage, if any,
applicable to this Note shall decline at each anniversary of the Initial
Redemption Date by an amount equal to the applicable Annual Redemption
Percentage Reduction, if any, until the Redemption 

 24
 

 

Price is equal to 100% of the Principal Amount thereof
to be redeemed.  Notice must be given not
more than seventy-five (75) nor less than thirty (30) calendar days prior to
the proposed redemption date.  In the
event of redemption of this Note in part only, a new Note for the unredeemed
portion hereof shall be issued in the name of the Holder hereof upon the surrender
hereof.  If less than all of the Notes
are redeemed, the Depositary will select by lot the amount of the interest of
each direct participant in the Trust to be redeemed.  Unless otherwise specified herein, the Trust
may not redeem the Notes after the date that is thirty (30) days prior to the
Stated Maturity Date.

Section 5.              Sinking Funds and Amortizing Notes.  Unless this Note is specified as an
Amortizing Note on the face hereof, this Note will not be subject to any
sinking fund.

Section 6.              Optional Repayment.  If no repayment right is set forth on the
face hereof, this Note may not be repaid at the option of the Holder hereof
prior to the Stated Maturity Date.  If a
Repayment Right is granted on the face of this Note, this Note may be subject
to repayment at the option of the Holder on any Interest Payment Date on and
after the date, if any, indicated on the face hereof (each, a “Repayment Date”).  On any Repayment Date, unless otherwise
specified on the face hereof, this Note shall be repayable in whole or in part
in increments of $1,000 at the option of the Holder hereof at a repayment price
equal to 100% of the Principal Amount to be repaid, together with interest
thereon payable to the date of repayment. 
For this Note to be repaid in whole or in part at the option of the
Holder hereof, this Note must be received by the Indenture Trustee, with the
form entitled “Option to Elect Repayment,” below, duly completed by the
Indenture Trustee.  Exercise of such
repayment option by the Holder hereof shall be irrevocable.

Section 7.              Modification and Waivers.  The Indenture contains provisions permitting
the Trust and the Indenture Trustee (1) at any time without notice to, or the
consent of, the Holders of any Notes issued under the Indenture to execute supplemental
indentures for certain enumerated purposes and (2) with the consent of the
Holders of not less than a majority in aggregate principal amount of the
Outstanding Notes affected thereby, to execute supplemental indentures for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of the Indenture or of modifying in any manner the rights
of Holders of Notes under the Indenture; provided,
that, with respect to certain enumerated provisions, no such supplemental
indenture may be entered into without the consent of the Holder of each Note
affected thereby.  Any such consent or waiver by the
Holder of this Note shall be conclusive and binding upon such Holder and upon
all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note or such other Notes.

 25
 

 

Section 8.              Obligations Unconditional.  No reference herein to the Indenture and no
provisions of this Note or of the Indenture shall impair the right of each
Holder of any Note, which is absolute and unconditional, to receive payment of
the principal of, and any interest on, such Note on the respective Stated
Maturity Date thereof and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such
Holder.

Section 9.              Events of Default.  If an Event of Default with respect to Notes
of this Series shall occur and be continuing, the principal of the Notes of
this Series may be declared due and payable, or may be automatically
accelerated, as the case may be, in the manner and with the effect provided in
the Indenture.  In the event that this
Note is a Discount Note, the amount of principal of this Note that becomes due
and payable upon such acceleration shall be equal to the amount calculated as
set forth in Section 3(b) hereof.

Section 10.            Withholding; Additional Amounts;
Tax Event.  All
amounts due on this Note will be made net of any applicable withholding or
deduction for or on account of any present or future taxes, duties, levies,
assessments or other governmental charges of whatever nature imposed or levied
by or on behalf of any governmental authority, unless such withholding or
deduction is required by law.  Unless
otherwise specified on the face hereof, the Trust will not pay any Additional
Amounts to the Holders of this Series of Notes in respect of any such withholding
or deduction and any such withholding or deduction will not give rise to an
Event of Default or any independent right or obligation to redeem the Notes of
the Series.  If set forth on the face
hereof, in the event the Trust is required, or based on an opinion of
independent legal counsel selected by Protective Life a material probability
exists that the Trust will be required to pay additional amounts in respect of
such withholding or deduction, Protective Life will have the right to redeem
the Funding Agreement and, if Protective Life redeems the Funding Agreement,
the Trust will redeem this Note at the Redemption Price set forth on the face
hereof with no less than thirty (30) days and no more than seventy-five (75)
days notice.

If (1) a Tax Event (defined below) as to the relevant
Funding Agreement(s) occurs and (2) Protective Life redeems the Funding
Agreement in whole or in part, the Trust will redeem the Notes, subject to the
terms and conditions of Section 2.04 of the Indenture, at the Tax Event
Redemption Price (defined below) together with unpaid interest accrued thereon
to the applicable redemption date.  “Tax
Event” means that Protective Life shall have received an opinion of independent
legal counsel stating in effect that as a result of (a) any amendment to, or
change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision or
taxing authority therefor or therein or (b) any amendment to, or change in, an
interpretation or application of any such laws or regulations by any
governmental authority in the United States, which amendment or change is
enacted, 

 26
 

 

promulgated, issued or announced on or after the date
the applicable Funding Agreement is entered into, there is more than an
insubstantial risk that (i) the Trust is, or will be within ninety (90) days of
the date thereof, subject to U.S. federal income tax with respect to interest
accrued or received on the relevant Funding Agreement or (ii) the Trust is, or
will be within ninety (90) days of the date thereof, subject to more than a de
minimis amount of taxes, duties or other governmental charges.  “Tax Event Redemption Price” means an amount
equal to the unpaid principal amount of this Note to be redeemed.  The unpaid principal amount of this Note to be
redeemed shall be determined by multiplying (1) the Outstanding Principal
Amount of this Note by (2) the quotient derived by dividing (A) the outstanding
principal amount to be redeemed by Protective Life of the Funding Agreement by
(B) the outstanding principal amount of the Funding Agreement.

Section 11.            Listing.  Unless otherwise specified on the face
hereof, this Series of Notes will not be listed on any securities exchange.

Section 12.            No Recourse Against Certain Persons.  No recourse shall be had for the payment of
the principal of or the interest on this Note, or for any claim based hereon,
or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against the Nonrecourse Parties, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such personal liability being, by
the acceptance hereof and as part of the consideration for issue hereof,
expressly waived and released.

Section
13.            Miscellaneous.

(a)           This Note is issuable only as a
registered Note without coupons in denominations of $1,000 and any integral
multiple in excess thereof unless otherwise specifically agreed between the
parties and provided on the face of this Note.

(b)           Prior to due presentment for
registration of transfer of this Note, the Trust, the Indenture Trustee, the
Registrar, the Paying Agent, any Agent, and any other agent of the Trust or the
Indenture Trustee may treat the Person in whose name this Note is registered as
the owner hereof for the purpose of receiving payment as herein provided
(subject to Section 2.09 of the Indenture) and for all other purposes,
whether or not this Note be overdue, and none of the Trust, the Indenture
Trustee, the Registrar, the Paying Agent, any Agent, and any other agent of the
Trust or the Indenture Trustee shall be affected by notice to the contrary.

(c)           The Notes are being issued by means
of a book-entry-only system with no physical distribution of certificates to be
made except as provided in the Indenture. 
The book-entry system maintained by DTC will evidence ownership of the
Notes, with transfers of ownership effected on the records of DTC and its
participants pursuant to 

 27
 

 

rules and procedures established by DTC and its
participants.  The Trust and the
Indenture Trustee will recognize Cede & Co., as nominee of DTC, as the
registered owner of the Notes, as the Holder of the Notes for all purposes,
including payment of principal, premium (if any) and interest, notices and
voting.  Transfer of principal, premium
(if any) and interest to participants of DTC will be the responsibility of DTC,
and transfer of principal, premium (if any) and interest to beneficial holders
of the Notes by participants of DTC will be the responsibility of such
participants and other nominees of such beneficial holders.  So long as the book-entry system is in
effect, the selection of any Notes to be redeemed or repaid will be determined
by DTC pursuant to rules and procedures established by DTC and its
participants.  Neither the Trust nor the
Indenture Trustee will not be responsible or liable for such transfers or
payments or for maintaining, supervising or reviewing the records maintained by
DTC, its participants or persons acting through such participants.

(d)           This Note or portion hereof may not
be exchanged for Definitive Notes of this Series of Notes, except in the
limited circumstances provided for in the Indenture.  The transfer or exchange of Definitive Notes
shall be subject to the terms of the Indenture. 
No service charge will be made for any registration of transfer or
exchange, but the Trust may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

Section 14.            GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAW PRINCIPLES.

 28
 

 

OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and
instruct(s) the Trust to repay this Note (or portion hereof specified below)
pursuant to its terms at a price equal to the Principal Amount hereof together
with interest to the repayment date, to the undersigned, at:

	
  

  
	
   

  

(Please print or typewrite name and address of the
undersigned).

For this Note to be repaid, the Indenture Trustee (or
the Paying Agent on behalf of the Indenture Trustee) must receive at its
Corporate Trust Office, or at such other place or places of which the Trust
shall from time to time notify the Holder of this Note, not more than sixty
(60) nor less than thirty (30) days prior to a Repayment Date, if any, shown on
the face of this Note, this Note with this “Option to Elect Repayment” form
duly completed.

If less than the entire
Principal Amount of this Note is to be repaid, specify the portion hereof
(which shall be in increments of $1,000) which the Holder elects to have repaid
and specify the denomination or denominations (which shall be $          
or an integral multiple of $1,000 in excess of $          )
of the Notes to be issued to the Holder for the portion of this Note not being
repaid (in the absence of any such specification, one such Note will be issued
for the portion not being repaid).

	
  $                 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NOTICE: The signature on this Option to Elect 

  
	
  DATE:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Repayment must correspond with the name as written 

  
	
   

  	
   

  	
   

  	
   

  	
  upon the face of this Note in every particular,
  without alteration or enlargement or any change whatever.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered Face
  Amount to be repaid, if amount to be repaid is less than the Registered Face
  Amount of this Note (Registered Face Amount remaining must be an authorized
  denomination)

  	
   

  	
   

  	
   

  	
  Fill in for registration of Notes if to be issued
  otherwise than to the registered Holder:

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
  $                 

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Please print name and 

  address including zip code)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SOCIAL SECURITY OR OTHER TAXPAYER ID
  NUMBER:                

  
									

 

 29Exhibit 4.4

FUNDING AGREEMENT

In consideration of the Owner’s deposit under the
terms hereof (this “Contract”), Protective Life Insurance Company (“Protective”)
agrees to make payments under this Contract in accordance with and subject to
its terms and issues this Contract to:

Protective Life Secured Trust 2003-1

(the “Owner”)

This Contract will be construed according to the laws
of the State of Delaware.  The following
Sections will be incorporated into and form a part of this Contract:

	
  Section I:               Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section II:              Deposit,
  Establishment of Funding Account & Specified Currency

  
	
   

  	
   

  	
   

  
	
  Section III:             Contract Type

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  x
  Section III-A: Fixed Rate Contract Terms

  	
   

  	
  o
  Section III-B: Floating Rate Contract Terms

  
	
   

  	
   

  	
   

  
	
  o
  Section III-C: Amortizing Contract Terms

  	
   

  	
  o
  Section III-D: Discount Contract Terms

  
	
   

  	
   

  	
   

  
	
  Section IV:             General
  Provisions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Riders:       o
  Rider A: Survivor’s Option

  	
   

  	
  o
  Rider B: Redemption Provisions

  
	
   

  	
   

  	
   

  
	
  o
  Rider C: Repayment Options

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Contract Number: GA 1847

  	
   

  	
  Effective Date: November 24, 2003

  
	
   

  	
   

  	
   

  
	
  Related Series of Notes: 2003-1

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Protective Life Secured

  Trust specified above

  c/o Wilmington Trust Company

  Rodney Square North

  1100 North Market Street

  Wilmington, Delaware 19890-0001

  	
   

  	
  Protective Life Insurance Company

  P.O. Box 2606

  Birmingham, Alabama 35202

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Wilmington Trust Company, not in its

  individual capacity but solely as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Janel R. Havrilla 

  	
   

  	
   

  	
  By:

  	
  /s/ Judy Wilson

  	
   

  
	
   

  	
   

  	
   

  	
  Senior Vice President 

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Kathleen A. Pedelini

  	
   

  	
   

  	
  Attest:

  	
  /s/ Michael Miyagishima

  	
   

  
										

THIS IS A LEGAL CONTRACT

READ YOUR CONTRACT CAREFULLY

 1

 

SECTION I

Definitions

“Business Day” means (i) any day, other than a
Saturday or Sunday, that is neither a legal holiday nor a day on which
commercial banks are authorized or required by law, regulation or executive
order to close in The City of New York, (ii) for purposes of interest
determination dates for LIBOR Contracts only, any day on which dealings in
deposits in U.S. Dollars are transacted, or with respect to any future date are
expected to be transacted, in the London interbank market, (iii) for Contracts
that are denominated in a Foreign Currency other than Euros, any day that, in
the Principal Financial Center of the country of the Foreign Currency, is not a
day on which banking institutions generally are authorized or obligated by law
to close, and (iv) for Contracts that are denominated in Euros, a day on which
the TARGET System is open.

“Calculation Agent” means the institution appointed as
calculation agent for the purposes of the Notes in accordance with the
Indenture and, if applicable, named as such in the relevant Pricing Supplement.

“Deposit” has the meaning set forth in Section II.A.of
this Contract.

“Effective Date” shall be the date set forth on the
face of this Contract.

“Event of Default” has the meaning set forth in
Section IV.A of this Contract.

“Exchange Rate Agent” means the institution appointed
as Exchange Rate Agent as specified in the Related Series of Notes.

“Foreign Currency” means a Specified Currency other
than U.S. dollars.

“Funding Account” has the meaning set forth in Section
II.B of this Contract.

“Indenture” means the Indenture, dated the date
specified in the Omnibus Instrument, between the Trust and The Bank of New
York, as indenture trustee,

“Initial Period” has the meaning set forth in Section
III-D.F of this Contract.

“Interest Payment Dates” has the meaning set forth in
the Related Series of Notes.

“Interest Period” has the meaning set forth in Section
III-B.D.

“Interest Reset Date” has the meaning set forth in the
Related Series of Notes.

“Issue Price” has the meaning set forth in Section
III-D.D.

“LIBOR Notes” means Notes that bear interest based on
LIBOR (as defined in the Notes).

“Maturity Date” means the date as specified in this
Contract on which the Funding Account becomes due and payable as herein
provided, whether at the Stated Maturity Date or by declaration of acceleration
or otherwise.

“Notes” means the Related Series of Notes related to
this Contract.

“Original Agreement” has the meaning set forth in
Section IV.K of this Contract.

“Specified Currency” has the meaning set forth in the
Related Series of Notes.

 I - 1
 

 

“Stated Maturity Date” means the date specified in
this Contract as the fixed date on which the principal of this Contract or such
installment of interest is due and payable.

“Supplemental Agreement” has the meaning set forth in
Section IV.K of this Contract.

“Tax Event” has the meaning set forth in Section IV.J
of this Contract.

“Trust Agreement” means that certain Trust Agreement,
declaring and establishing the Trust, as may be amended, modified or supplemented
from time to time.

“Trust Beneficial Interest” has the meaning set forth
in the Trust Agreement.

“Trust Beneficial Owner” means AMACAR Pacific Corp.

Capitalized terms not otherwise defined herein shall
have the meanings set forth in the Indenture or the Notes.

 I - 2

 

SECTION  II

Deposit,
Establishment of Funding Account & Specified Currency

A.            Deposit:   On the Effective Date, the amount of
$450,000,015.00 denominated in United States dollars will be deposited under
this Contract (the “Deposit”).  The
Deposit is equal to the sum of (i) the net proceeds of the sale of the Notes
(ii) the proceeds from the sale of the related Trust Beneficial Interest to the
Trust Beneficial Owner and (iii) other amounts contributed by Protective as
reimbursement of the Owner’s selling expenses.

B.            Funding Account:   Upon receipt of the Deposit, Protective will
create a bookkeeping account (the “Funding Account”) to be set up under this
Contract. At the end of any day the amount of the Funding Account shall be
equal to the Deposit plus accrued but unpaid interest to such date (credited
daily), less any amounts of the Deposit withdrawn under this Contract. In
connection with Discount Contracts, at the end of any day the amount of the
Funding Account shall be equal to the Deposit, plus accrual of discount to such
date, plus accrued interest (if any) to such date, less any amounts of the
Deposit withdrawn under this Contract. 
On the Effective Date, the beginning value of the Funding Account shall
equal the Deposit.

C.            Wire Instructions:   Funds will be wired to Protective according
to the following instructions:

	
  Bank:

  	
   

  	
  AmSouth Bank

  
	
   

  	
   

  	
  Birmingham, Alabama

  
	
  ABA:

  	
   

  	
  062000019

  
	
  Account Number:

  	
   

  	
  17 442 613

  
	
  Account Name:

  	
   

  	
  Protective Life Insurance Company

  
	
   

  	
   

  	
  GIC Depository Account

  
	
  Credit To:

  	
   

  	
  GA 1847

  

 

D.            Currency:  The Deposit shall be made by the Owner in the
Specified Currency.  Payments made on
this Contract shall be made to the Owner in the Specified Currency.

E.              Availability of
Currency:   If payment hereon is
required to be made in a Foreign Currency and such currency is unavailable to
Protective for making payments thereof due to the imposition of exchange
controls or other circumstances beyond Protective’s control, or is no longer
used by the government of the country which issued such currency or for the
settlement of transactions by public institutions of or within the
international banking community, then Protective will be entitled to make
payments with respect hereto in U.S. dollars until such Foreign Currency is
again available or so used.  The Exchange
Rate Agent shall notify Protective, in writing, (i) of the rate at which the
amount so payable on any date in such Foreign Currency shall be converted into
U.S. dollars or (ii) that Protective is entitled to make payments in U.S.
dollars.  Any payment in respect hereof
made pursuant to this Section II.E in U.S. dollars will not constitute an Event
of Default.

If the official unit of any component currency of a composite currency
is altered by way of combination or subdivision, the number of units of that
currency as a component shall be divided or multiplied in the same
proportion.  If two or more component
currencies are consolidated into a single currency, the amounts of those
currencies as components shall be replaced by an amount in such single currency
equal to the sum of the amounts of the consolidated component currencies
expressed in such single currency.  If
any component currency is divided into two or more currencies, the amount of that
original component currency as a component shall be replaced by amounts of such
two or more currencies having an aggregate value on the date of division equal
to the amount of the former component currency immediately before such
division.

In the event of an official redenomination of the Specified Currency
(including, without limitation, an official redenomination of any such currency
that is a composite currency), the obligations of Protective

 II - 1
 

 

to make payments in or with reference to such currency shall, in all
cases, be deemed immediately following such redenomination to be obligations to
make payments in or with reference to that amount of redenominated currency
representing the amount of such currency immediately before such
redenomination.  In no event shall any
adjustment be made to any amount payable hereunder as a result of (1) any
redenomination of any component currency of any composite currency (unless such
composite currency is itself officially redenominated) or (2) any change in the
value of the specified currency relative to any other currency due solely to
fluctuations in exchange rates.

All determinations referred to above made by the Exchange Rate Agent
shall be at its sole discretion (except to the extent expressly provided herein
that any determination is subject to approval by Protective) and, in the
absence of manifest error, shall be conclusive for all purposes and binding on
Protective and the Trust, and the Exchange Rate Agent shall have no liability
therefor.

 II - 2

 

SECTION  III-A

Fixed
Rate Contract Terms

A.            Interest Rate:  The interest rate payable under this Contract
is 3.70% per annum.

B.            Day Count Convention:  Unless otherwise specified in the Notes,
interest will be computed on the basis of a 360-day year of twelve 30-day
months or, in the case of an incomplete month, the number of days elapsed.

C.            Interest Payment
Dates:  Shall be as set forth in the
Notes and payment of interest shall be made in accordance with the Business Day
Convention specified in the Notes.

D.            Interest Payments:  On each Interest Payment Date, adjusted if
applicable, Protective will pay to the Owner the interest accrued from the last
Interest Payment Date or, in the case of the first Interest Payment Date, from
the Effective Date, up to but not including the current Interest Payment
Date.  Interest on the Deposit shall
accrue from and including the Effective Date to but excluding the Maturity
Date.

E.              Stated Maturity
Date:  Shall be as set forth in the
Notes and payment of principal shall be made in accordance with the Business
Day Convention specified in the Notes.

F.              Termination:  On the Stated Maturity Date, Protective will
pay to the Owner the amount of the Funding Account, unless the Funding Account
becomes due and payable prior to the Stated Maturity Date whether, as
applicable, by the declaration of acceleration of maturity, redemption by
Protective, notice of the Owner’s option to elect repayment or otherwise (the
Stated Maturity Date or any date prior to the Stated Maturity Date on which
this Contract becomes due and payable, as the case may be, is referred to as
the “Maturity Date” with respect to the Funding Account repayable on such
date).

G.            Sinking Fund:  None

H.            Additional/Other
Terms:  None

 

 III-A - 1

SECTION  IV

General Provisions

A.            Events of
Default:  Upon the occurrence and
continuation of an Event of Default, as defined hereunder, the Owner shall have
the right, in addition to any other rights and remedies it may have at law or
in equity, to accelerate and demand immediate payment of the Funding
Account.  Each of the following events
shall constitute an Event of Default under this Contract:

1.               failure by
Protective to make any payment of principal when due, subject to any provisions
to the contrary in this Contract, which failure to pay principal continues for
one Business Day, and failure to make any payment of interest when due, which
failure to pay interest, subject to any provisions to the contrary in this
Contract, continues for five Business Days, following the receipt by Protective
of written notice thereof from the Owner; or

2.               a court or agency
of supervisory authority having jurisdiction in respect of Protective has
instituted a proceeding or entered a decree or order for the appointment of a
receiver or liquidator in any insolvency, rehabilitation, readjustment of debt,
marshaling of assets and liabilities or similar arrangements involving
Protective or all or substantially all of its property, or for the winding up
or liquidation of its affairs; or

3.               any other Event of
Default set forth on Schedule A.

B.            The Obligation of
Protective:   This Contract is an unconditional obligation
of Protective.  Protective will make
payments hereunder without counterclaim, subrogation or set off by Protective
against amounts due and owing to Protective by the Owner, or any other person,
under any other contract. The foregoing will not constitute a waiver of any
rights that Protective may have against the Owner or any other person.
Protective will not pay under this Contract any amounts in excess of deposits
received hereunder and interest accrued thereon.

C.            Entire Contract:  This Contract (along with any amendments
agreed upon in writing and executed by the parties) is the entire contract
between the parties.  The Owner’s
statements will be deemed representations and not warranties.  Any amendment, change, or waiver of any
provision of this Contract must be in writing and signed by Protective’s
President or Vice President.  Protective
may rely on any action taken or omitted by the Owner under this Contract.  The Owner will name its representatives who
may act for it.

D.            Persons to Receive
Payments:  Protective has no duty to
inquire as to the authority of any payee to receive payments under this
Contract.

E.              Owner:  The Owner, by signing this Contract,
represents that it has full authority and power to enter into this
Contract.  The Owner represents that
actions taken under this Contract by the Owner will conform with applicable
law. Protective is not liable for its good faith reliance upon any actions by
the Owner which do not conform to applicable law.

F.              Protective:  Protective represents and warrants that this
Contract has been duly authorized, executed and delivered by it and, assuming
the due authorization, execution and delivery hereof by the other parties
hereto, constitutes a legal, valid and binding obligation of it enforceable
against it in accordance with the terms hereof, except (i) as enforcement may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally or by
general principles of equity, regardless of whether enforcement is sought in a
proceeding in equity or at law and (ii) that no representation or warranty is
made with respect to the enforceability of this Contract to the extent that the
source of the funds used by the Owner to purchase this Contract renders such
funds, or any property or investment acquired with such funds, subject to
governmental seizure or other penalty under the USA Patriot Act of 2001, as
amended, or 

 IV - 1
 

any other law,
rule or regulation, relating to money laundering, terrorist financing or other
illegal activities.

G.            Transfer:  Other than any assignment, transfer, pledge,
hypothecation or sale of this Contract in accordance with the terms of the
Indenture, the Owner may not assign, transfer, hypothecate or sell this
Contract without the consent of Protective. 
Protective will maintain a record of ownership of this Contract as part
of its books and records. Notwithstanding anything in this Contract to the
contrary, no transfer or assignment of an interest in this Contract or any
right to receive payments of principal or interest under this Contract will be
effective until Protective has changed its books and records to reflect the
transfer or assignment.

H.            Tax Forms:  On or prior to the Effective Date, the Owner
will provide to Protective a duly executed and properly completed IRS Form W-9,
W-8BEN, W-8ECI or W-8IMY (together with all appropriate attachments) (or other
appropriate form).  The Owner will from
time to time update any such forms as necessary and, in the case of any sale or
assignment of an interest in this contract, the transferee or assignee will
provide such forms to Protective on or prior to such transfer or assignment.

I.                 Agreed Tax
Treatment:  Protective and the Owner
(and each transferee or assignee) agree to treat this Contract as debt of
Protective for U.S. federal, state and local income and franchise tax purposes.

J.              Withholding Tax
Treatment and Early Termination:

1.               All amounts due in
respect of this Contract will be made free and clear of any applicable
withholding or deduction for or on account of any present or future taxes,
duties, levies, assessments or other governmental charges of whatever nature
imposed or levied by or on behalf of any governmental authority, unless such
withholding or deduction is required by law. 
Protective will not pay any additional amounts to the Owner (or any
transferee or assignee) in respect of any such withholding or deduction, and
any such withholding or deduction will not give rise to an Event of Default or
any independent right or obligation to redeem this Contract.

2.               If there is a Tax
Event (as defined below), Protective may with written notice redeem this
Contract prior to its scheduled Stated Maturity Date at the Redemption Price
(defined below) together with all accrued but unpaid interest to the date fixed
for redemption (if any).  Protective may
redeem this Contract pursuant to this Section IV.J.2 by giving not less than
thirty (30) days and no more than seventy-five (75) days prior written notice
to the Owner.  For purposes of this
Section IV.J.2, “Tax Event” means that Protective shall have received an
opinion of independent legal counsel stating in effect that as a result of (x)
any amendment to, or change (including any announced prospective change) in,
the laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority therefor or therein or (y) any amendment to, or
change in, an interpretation or application of any such laws or regulations by
any governmental authority in the United States, which amendment or change is
enacted, promulgated, issued or announced on or after the date hereof, there is
more than an insubstantial risk that (i) the Owner is, or will be within 90
days of the date thereof, subject to U.S. federal income tax with respect to
interest accrued or received on this Contract or (ii) the Owner is, or will be
within 90 days of the date thereof, subject to more than a de minimis amount of
taxes, duties or other governmental charges. 
For purposes of this Section IV.J, “Redemption Price” means the balance
of the Funding Account as of the date of redemption.

K.            Notices; Statements;
Wiring Instructions: Communications between the Owner and Protective will
be in writing to the addresses shown below. 
Each may change its address by written notice to the other party.

 IV - 2
 

 

	
  If to the Owner:

  	
   

  	
  If to Protective:

  
	
   

  	
   

  	
   

  
	
  The Protective
  Life Secured Trust specified in this Contract

  	
   

  	
  Protective Life Insurance Company

  111 North First Street, Suite 209

  
	
  c/o Wilmington
  Trust Company

  	
   

  	
  Burbank, CA 91502-1864

  
	
  Rodney Square
  North

  	
   

  	
  Telephone: 818/729-1900

  
	
  1100 North
  Market Street

  	
   

  	
  Facsimile:818/729-1800

  
	
  Wilmington,
  Delaware 19890-0001

  	
   

  	
   

  
	
  Attention:
  Corporate Trust Department

  	
   

  	
   

  
	
  Telephone:
  302/636-6000

  	
   

  	
   

  
	
  Facsimile:302/636-4140

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  And to:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  AMACAR Pacific
  Corp.

  	
   

  	
  Protective Life Insurance Company

  
	
  6525 Morrison
  Boulevard

  	
   

  	
  Attn: Legal Department

  
	
  Suite 318

  	
   

  	
  P.O. Box 2606

  
	
  Charlotte, North
  Carolina 28211

  	
   

  	
  Birmingham, AL 35202

  
	
  Attention:
  Douglas K. Johnson

  	
   

  	
  Telephone: 800/627-0220

  
	
   

  	
   

  	
  Facsimile: 205/268-5516

  

 

By the tenth day of the month Protective will provide
to the Owner a statement of activity in the Funding Account for the prior
month.

Unless otherwise stated, references to dollars and
cents in this Contract refer to the currency of the United States of
America.  Unless otherwise stated, all
payments by Protective will be made by wire transfer of immediately available
funds to the following account:

	
  Bank:

  	
   

  	
  The Bank of New York

  
	
  ABA:

  	
   

  	
  021-000-018

  
	
  TAS Account:

  	
   

  	
  294419

  
	
  RE:

  	
   

  	
  Protective Life Secured Trust 2003-1 – Millie Cicero

  

 

Protective agrees that the foregoing instructions
identify a satisfactory payee and that unless otherwise instructed by the Owner
it will make payments in accordance with such instructions.

L.             Invalidity of
Provisions: If any provision of this Contract is invalid, the rest of the
Contract will remain valid.

M.          Non-Waiver: Either
party can delay enforcing its rights under this Contract without losing
them.  The fact that either party waives
its rights in one instance does not mean that it will waive them in other
instances.

 IV - 3

 

SCHEDULE
A

Additional
Events of Default

Not Applicable

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