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Exhibit 4.(a)(2)    
    

[LETTERHEAD OF PROTECTIVE LIFE INSURANCE COMPANY]

VARIABLE LIFE INSURANCE POLICY  

JOHN DOE 

Policy Number: SPECIMEN 

        This
is an Individual Flexible Premium Variable and Fixed Life Insurance Policy ("Policy") which has been issued to the Owner. This Policy provides a death benefit. 

        THE OWNER HAS THE RIGHT TO RETURN THIS POLICY. The Owner may cancel this Policy after receipt by returning the Policy to the Company's Home Office, or to any
Agent of the Company, with a written request for cancellation within (a) 10 days after receipt; or (b) 45 days after the Application was signed; whichever is later. Return
of this Policy by mail is effective on receipt by the Company. The returned Policy will be treated as if the Company had never issued it. In states where permitted, the Company will promptly refund an
amount equal to the sum of: (a) the difference between the premiums paid (after deduction of any policy fees and other charges) and the amounts allocated to the Fixed Account or the
Sub-Accounts, plus (b) the value of the amounts allocated to the Fixed Account, including any interest credited on such amounts accumulated to the date that this Policy is returned
to the Company, plus (c) the value of the amounts allocated to the Sub-Accounts, adjusted to reflect the net investment experience of such Sub-Accounts, to the date that
this Policy is returned to the Company. This amount may be more or less than the premium payment(s). In states where required, the Company will promptly refund the premium
payment(s).

	/s/  ILLEGIBLE      
President	 	/s/  ILLEGIBLE      
Secretary

        THE POLICY VALUES, THE AMOUNT OF THE DEATH BENEFIT PROVIDED IN THIS CONTRACT, OR THE DURATION OF THE INSURANCE COVERAGE, MAY BE FIXED OR VARIABLE WHEN BASED ON
THE INVESTMENT EXPERIENCE OF THE VARIABLE ACCOUNT, MAY INCREASE OR DECREASE IN ACCORDANCE WITH THE FLUCTUATIONS IN THE NET INVESTMENT FACTOR, AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNTS. THERE IS NO
GUARANTEED MINIMUM FOR THE PORTION OF THE POLICY VALUE IN THE SUB-ACCOUNTS. PLEASE REFER TO THE VARIABLE ACCOUNT SECTION OF THIS POLICY FOR MORE INFORMATION REGARDING THE VARIABLE ACCOUNT.
PLEASE REFER TO THE DEATH BENEFIT SECTION OF THIS POLICY FOR A DESCRIPTION OF THE DEATH BENEFIT.  

 READ THE CONTRACT CAREFULLY

THIS POLICY IS A LEGAL CONTRACT BETWEEN THE OWNER AND THE COMPANY

INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY

NON-DIVIDEND PAYING  

1

  

 
 

INDEX    
    

	POLICY SPECIFICATIONS PAGES	 	3
	

DEFINITIONS	
 	

4
	GENERAL PROVISIONS	 	5
	 	Entire Contract	 	5
	 	Modification of the Contract	 	5
	 	Misstatement of Age or Sex	 	5
	 	Non-Participating	 	5
	 	Suicide Exclusion	 	6
	 	Termination	 	6
	 	Representations and Contestability	 	6
	 	Reports	 	6
	 	Arbitration	 	6
	CONTROL PROVISIONS	 	7
	 	The Parties Involved	 	7
	 	Rights of Owner	 	7
	 	Contingent Owner	 	7
	 	Beneficiary	 	7
	 	Changing the Owner	 	7
	 	Assignment	 	7
	 	Protection of Proceeds	 	7
	 	Suspension or Delay in Payment	 	8
	 	Tax Considerations	 	8
	 	Changes in Policy Cost Factors	 	8
	 	Coverage Limitations	 	8
	PREMIUMS	 	8
	 	Premium Payments	 	8
	 	Planned Premium Payments	 	8
	 	Unscheduled Premium Payments	 	9
	 	Minimum Monthly Premium Guarantee	 	9
	 	Allocation of Net Premiums	 	9
	 	Grace Period	 	9
	 	Reinstatement	 	9
	 	Minimum Values	 	10
	DEDUCTIONS FROM POLICY VALUE	 	10
	COST OF INSURANCE	 	10
	 	Cost of Insurance Charge	 	10
	 	Cost of Insurance Rates	 	10
	BASIS OF COMPUTATION	 	10
	FIXED ACCOUNT	 	10
	 	Calculation of the Fixed Account Value	 	10
	 	Interest Credited	 	10
	VARIABLE ACCOUNT	 	11
	 	General Description	 	11
	 	Sub-Accounts of the Variable Account	 	11
	 	Valuation of Assets	 	11
	 	Calculation of Sub-Account Values	 	11
	 	Net Investment Factor	 	12
	 	Transfers	 	12
	 	 	 

2

 

	DEATH BENEFIT	 	12
	 	Death Benefit Proceeds	 	12
	 	Amount of Death Benefit Proceeds	 	12
	 	Payment of Death Benefit Proceeds	 	13
	 	Suspension of Payment	 	13
	 	Creditor Claims	 	13
	SURRENDERS AND WITHDRAWALS	 	13
	 	Surrenders	 	13
	 	Withdrawals	 	13
	POLICY LOANS	 	14
	 	Right to Make Loans, Policy Debt	 	14
	 	Maximum Loan	 	14
	 	Interest	 	14
	 	Collateral	 	14
	 	Repaying Policy Debt	 	14
	CHANGING THIS POLICY	 	14
	 	Increasing The Face Amount	 	14
	 	Premium Payments Required for a Face Amount Increase	 	15
	 	Cancellation of a Face Amount Increase	 	15
	 	Decreasing The Face Amount	 	15
	 	Changing the Death Benefit Option	 	15
	 	Change Approval	 	15
	SETTLEMENT OPTIONS	 	15
	 	Availability of Options	 	15
	 	Minimum Amounts	 	15
	 	Electing A Settlement Option	 	15
	 	Effective Date and Payment Date	 	16
	 	Description of Options	 	16

3

  

 
 

POLICY SPECIFICATIONS    
    

	POLICY NUMBER: [SPECIMEN]	 	POLICY EFFECTIVE DATE: [SEPTEMBER 1, 2003]
	
POLICY ISSUE DATE: [SEPTEMBER 1, 2003]	
 	
AGE: [35]
	
INSURED: [JOHN Q. DOE]	
 	
[SEX:] [MALE]
	
INITIAL FACE AMOUNT: [$100,000]	
 	
MONTHLY ANNIVERSARY DAY: [1]
	
INITIAL PREMIUM PAYMENT: [$1,475.44]	
 	
DEATH BENEFIT OPTION: [LEVEL]
	
MINIMUM MONTHLY PREMIUM PAYMENT: [$32.00]	
 	
RATE CLASS: [STANDARD NON-TOBACCO]
	
PLANNED PREMIUM PAYMENT: [$1,475.44 PAYABLE ANNUALLY]
	
OWNER: [JOHN Q. DOE]	
 	

 

	
 FORM

NUMBER
 
	
 	

SCHEDULE OF ADDITIONAL BENEFITS
	
 	

MONTHLY CHARGE

DURING FIRST YEAR

	[NONE]	 	 	 	 

 

 

 

 

 
 

*
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

        THIS
POLICY PROVIDES LIFE INSURANCE COVERAGE ON THE INSURED UNTIL TERMINATION, SUBJECT TO THE TERMS OF THIS POLICY. THERE MAY BE LITTLE OR NO SURRENDER VALUE PAYABLE ON CONTRACT
TERMINATION. 

GUARANTEED INTEREST RATE FOR FIXED ACCOUNT—[3% ANNUALLY (.2466% MONTHLY)] 

INITIAL ANNUAL EFFECTIVE INTEREST RATE FOR FIXED ACCOUNT—[4.10%] 

MAXIMUM LOAN INTEREST RATE [5%] YEARS [1-10]—[3.25%]
YEARS [11+] 

MINIMUM MONTHLY PREMIUM GUARANTEE PERIOD: [15] YEARS 

MINIMUM FACE AMOUNT: [$50,000] 

4

 
 
 

DEDUCTION FROM PREMIUM PAYMENTS    
    

        Premium Expense Charge.    A maximum Premium Expense Charge of [3%] will be deducted from each premium
payment. The Company reserves the right to charge less than the maximum charge. Accordingly, the Premium Expense Charge is currently [3%] (subject to the maximum charge
outlined above). 

 
 

MONTHLY DEDUCTIONS    
    

        Beginning as of the Policy Effective Date and continuing on each Monthly Anniversary Day thereafter, the Company will deduct the charges listed below. With the
exception of the Mortality and Expense Risk Charge, each charge will reduce the Sub-Account Value(s) and the Fixed Account Value in the proportion that each Sub-Account Value
and the Fixed Account Value bears to the Unloaned Policy Value. The Mortality and Expense Risk Charge will reduce only the Sub-Account Value(s). 

        Administration Charge.    The monthly Administration Charge is [$8]. 

        Administration Charge for Initial Face Amount.    The maximum monthly Administration Charge for Initial Face Amount is equal to
[$.00] per every $1,000 of Initial Face Amount in Policy Years [1 through 20]. This charge is not assessed after the [20th]
Policy Year. 

        The
Company reserves the right to charge less than the maximum charge. 

        Administration Charge For Increase In Face Amount.    The monthly Administration Charge for Increase in Face Amount is
[$.81] per every $1,000 of increase in Face Amount. This monthly charge applies during the [twelve] month period following the effective date of each
increase in Face Amount. 

        Charge For Benefits Under Riders.    The Company will deduct a monthly charge for any riders. 

        Cost of Insurance Charge.    The Company will deduct a monthly Cost of Insurance Charge for the Face Amount. This charge varies
and is calculated in accordance with the policy provisions. See the Cost of Insurance section of this Policy for details. The Maximum Monthly Cost of Insurance Rates are set forth in the table on the
following page. 

        Mortality and Expense Risk Charge.    The maximum monthly Mortality and Expense Risk Charge is equal to
[.075%] multiplied by the Variable Account Value, which is equivalent to an annual rate of [.90%] of such amount. The Company reserves the right to
charge less than the maximum charge. Accordingly, in Policy Years [11] and thereafter, the monthly Mortality and Expense Risk Charge is currently
[.021%] multiplied by the Variable Account Value, which is equivalent to an annual rate of [.25%] of such amount (subject to the maximum charge outlined
above). 

 
 

OTHER DEDUCTIONS    
    

        Withdrawal Charge.    A Withdrawal Charge equal to the lesser of: (a) [2%] of the amount
withdrawn; or (b) [$25] is deducted from the Fixed Account and Variable Account Value(s) whenever you make a withdrawal. See the Surrenders and Withdrawals section of
this Policy for additional details. 

        Transfer Fee.    A [$25] charge may be deducted from the Fixed Account and Variable Account Value(s)
being transferred for each transfer request in excess of [12] during a Policy Year. See the Variable Account section of this Policy for additional details. 

 
 

SURRENDER CHARGES    
    

        If this Policy is surrendered, lapses at the end of a Grace Period or the Owner reduces the Face Amount during the first [ten] Policy
Years, the Company will deduct a Surrender Charge from the 

4A

 

Fixed
Account and Variable Account Value(s). The Maximum Surrender Charge on surrender or lapse of this Policy is shown in the table below. 

        If
the Face Amount of this Policy is decreased during the first [ten] Policy Years, the partial Surrender Charge imposed will equal the portion of the Surrender
Charge (shown in the table below and reduced by any previous partial Surrender Charge(s)) that corresponds to the percentage by which the Face Amount is reduced. In the event of such a reduction in
the Face Amount, the Company will allocate the partial Surrender Charge to each Sub-Account and the Fixed Account based on the proportion that the value of the Fixed Account and the value
of the Sub-Account(s) bear to the total Unloaned Policy Value. 

	POLICY

YEARS
	 	SURRENDER

CHARGE
	 	POLICY

YEARS
	 	SURRENDER

CHARGE

	1	 	$	[2650.00]	 	7	 	$	[2425.00]
	2	 	 	[2600.00]	 	8	 	 	[1819.00]
	3	 	 	[2575.00]	 	9	 	 	[1213.00]
	4	 	 	[2550.00]	 	10	 	 	[606.00]
	5	 	 	[2500.00]	 	11	 	 	[0]
	6	 	 	[2475.00]	 	 	 	 	 

 
 

GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATES
  PER $1,000 OF NET AMOUNT AT RISK    
    

	ATTAINED

AGE
	 	RATE
	 	ATTAINED

AGE
	 	RATE
	 	ATTAINED

AGE
	 	RATE
	 	ATTAINED

AGE
	 	RATE
	 	ATTAINED

AGE
	 	RATE

	0	 	 	 	20	 	 	 	 	40	 	$	[.191]	 	60	 	$	[1.054]	 	80	 	$	[7.867]
	1	 	 	 	21	 	 	 	 	41	 	 	[.206]	 	61	 	 	[1.163]	 	81	 	 	[8.617]
	2	 	 	 	22	 	 	 	 	42	 	 	[.221]	 	62	 	 	[1.287]	 	82	 	 	[9.465]
	3	 	 	 	23	 	 	 	 	43	 	 	[.238]	 	63	 	 	[1.428]	 	83	 	 	[10.423]
	4	 	 	 	24	 	 	 	 	44	 	 	[.256]	 	64	 	 	[1.588]	 	84	 	 	[11.473]
	5	 	 	 	25	 	 	 	 	45	 	 	[.277]	 	65	 	 	[1.764]	 	85	 	 	[12.590
	6	 	 	 	26	 	 	 	 	46	 	 	[.299]	 	66	 	 	[1.954]	 	86	 	 	[13.753]
	7	 	 	 	27	 	 	 	 	47	 	 	[.323]	 	67	 	 	[2.160]	 	87	 	 	[14.953]
	8	 	 	 	28	 	 	 	 	48	 	 	[.349]	 	68	 	 	[2.381]	 	88	 	 	[16.165]
	9	 	 	 	29	 	 	 	 	49	 	 	[.378]	 	69	 	 	[2.622]	 	89	 	 	[17.405]
	10	 	 	 	30	 	 	 	 	50	 	 	[.409]	 	70	 	 	[2.894]	 	90	 	 	[18.692]
	11	 	 	 	31	 	 	 	 	51	 	 	[.446]	 	71	 	 	[3.253]	 	91	 	 	[20.047]
	12	 	 	 	32	 	 	 	 	52	 	 	[.489]	 	72	 	 	[3.559]	 	92	 	 	[21.516]
	13	 	 	 	33	 	 	 	 	53	 	 	[.536]	 	73	 	 	[3.969]	 	93	 	 	[23.160]
	14	 	 	 	34	 	 	 	 	54	 	 	[.591]	 	74	 	 	[4.430]	 	94	 	 	[25.260]
	15	 	 	 	35	 	$	[.141]	 	55	 	 	[.652]	 	75	 	 	[4.924]	 	95	 	 	[28.274]
	16	 	 	 	36	 	 	[.148]	 	56	 	 	[.720]	 	76	 	 	[5.451]	 	96	 	 	[33.107]
	17	 	 	 	37	 	 	[.157]	 	57	 	 	[.791]	 	77	 	 	[6.006]	 	97	 	 	[41.685]
	18	 	 	 	38	 	 	[.167]	 	58	 	 	[.869]	 	78	 	 	[6.582]	 	98	 	 	[58.013]
	19	 	 	 	39	 	 	[.178]	 	59	 	 	[.957]	 	79	 	 	[7.195]	 	99	 	 	[83.333]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100+	 	 	[0]

        GUARANTEED
MAXIMUM COST OF INSURANCE RATES FOR THE RATE CLASS SHOWN ON PAGE 3 ARE EQUAL TO THE ABOVE RATES INCREASED BY [$0.000] EACH MONTH. 

4B

 

ALLOCATION OF PREMIUM PAYMENTS:  

	Protective Variable Life Separate Account	 	 
	

Sub-Accounts:	
 	

 
	 	

[Goldman Sachs/PIC Growth & Income]	
 	

[20.00%]
	 	[Goldman Sachs/CORE U.S. Equity]	 	[10.00%]
	 	[Calvert Social Balanced]	 	[10.00%]
	 	[MFS Emerging Growth]	 	[10.00%]
	 	[MFS Growth with Income]	 	[10.00%]
	 	[Oppenheimer Aggresive Growth/VA]	 	[10.00%]
	 	[Oppenheimer Strategic Bond/VA]	 	[10.00%]
	

[Protective Life General Account:]	
 	

 
	 	

[Fixed Account]	
 	

[20.00%]

4C

  

 
 

DEFINITIONS    
    

        Application.    The paperwork completed to apply for this Policy. 

        Attained Age.    The Insured's age as of the [nearest] birthday on the Policy Effective Date plus the
number of complete Policy Years since the Policy Effective Date. 

        Beneficiary.    The Beneficiary is the person entitled to receive the Death Benefit Proceeds upon the death of the Insured. 

         Primary.    Where a Primary Beneficiary is living, such person is the Beneficiary. The Primary Beneficiary is the person named as the
"Primary
Beneficiary" in the Application, unless changed. 

         Contingent.    Where no Primary Beneficiary is living, the "Contingent Beneficiary", as named in the Application, is the Beneficiary,
unless changed. 

         Irrevocable.    An Irrevocable Beneficiary is one whose consent is necessary to change the Beneficiary or exercise certain other rights.

        Cash Value.    It is equal to the Policy Value minus any applicable surrender charge. 

        Death Benefit.    The amount of insurance provided under the Policy as determined by the Death Benefit Option selected. 

        Death Benefit Option.    One of two options (Level Death Benefit or Increasing Death Benefit) that an Owner may select for the
computation of Death Benefit Proceeds. 

        Death Benefit Proceeds.    The amount payable to the Beneficiary if the Insured dies while the Policy is in force which is equal
to the Death Benefit, plus any death benefit under any rider to the Policy, less any Policy debt and unpaid Monthly Deductions if the Insured dies during a grace period. 

        Face Amount.    The Initial Face Amount as shown on the Policy Specifications Page. Thereafter, the Face Amount may be increased
or decreased in accordance with the terms of this Policy. 

        Fixed Account.    Part of the Company's General Account to which Policy Value may be transferred or Net Premiums allocated under
a Policy. 

        Fixed Account Value.    The Policy Value in the Fixed Account. 

        Fund.    An investment portfolio of Protective Investment Company or any other open-end management investment
company or unit investment trust in which a Sub-Account invests. 

        General Account.    The assets of the Company other than those allocated to the Variable Account or another separate account. 

        Home Office.    2801 Highway 280 South, Birmingham, Alabama, 35223. 

        Insured.    The person whose life is covered by the Policy. 

        Issue Age.    The Insured's age as of the nearest birthday on the Policy Effective Date. 

        Issue Date.    The date the Policy is issued. The Issue Date may be a later date than the Policy Effective Date if the initial
premium payment is received at the Home Office before the Issue Date. 

        Lapse.    Termination of the Policy at the expiration of the Grace Period while the Insured is still living. 

5

 

        Loan Account.    An account within the Company's General Account to which the Fixed Account Value and/or Variable Account Value
is transferred as collateral for policy loans. 

        Loan Account Value.    The Policy Value in the Loan Account. 

        Minimum Monthly Premium.    The Minimum Monthly Premium is used in a calculation that is described under the Minimum Monthly
Premium Guarantee section of this Policy. 

        Monthly Anniversary Day.    The same day of the month as the Policy Effective Date. The Monthly Anniversary Day is shown on the
Policy Specifications Page. 

        Monthly Deductions.    The charges deducted monthly from the Sub-Account value(s) and/or Fixed Account value as
described on the Policy Specifications Page. 

        Net Amount at Risk.    The Net Amount at Risk as of any Monthly Anniversary Day is (a) minus (b) where: 

	(a)
	is
the Death Benefit discounted at one plus the monthly guaranteed interest rate; and

	(b)
	is
the Policy Value (prior to deducting the Cost of Insurance), if the Death Benefit Option is Level, or Policy Value (discounted at one plus the monthly guaranteed interest rate and
prior to deducting the Cost of Insurance), if the Death Benefit Option is Increasing. 

        Net Asset Value Per Share.    The value per share of any Fund as computed on any Valuation Day as described in the Fund
prospectus. 

        Net Premium.    The premium payment after deduction of the Premium Expense Charge. 

        Owner.    The person(s) who own(s) the Policy. Herein referred to as "the Owner". 

        Policy Anniversary.    The same day in each Policy Year as the Policy Effective Date. 

        Policy Debt.    The sum of all outstanding policy loans plus accrued interest. 

        Policy Effective Date.    The date shown on the Policy Specifications Page and on which coverage takes effect. Policy Years are
measured from the Policy Effective Date. For any increase, decrease, additions, or changes to coverage, the effective date shall be the Monthly Anniversary Day on or next following the date the
supplemental application is approved by the Company. The Policy Effective Date will never be the 29th, 30th or the 31st of a month. 

        Policy Value.    The sum of the Variable Account Value, the Fixed Account Value and the Loan Account Value. 

        Policy Year.    Each period of 12 months commencing with the Policy Effective Date. 

        Protective Life Insurance Company.    Herein referred to as "the Company". 

        Settlement Option.    Alternatives to a lump sum for payment by the Company under the Death Benefit or surrender provisions of
this Policy. 

        Sub-Account.    A separate division of the Variable Account. Each Sub-Account invests in a corresponding
Fund. 

        Sub-Account Value.    The Policy Value in a Sub-Account as defined on Page 11. 

        Surrender Value.    The Cash Value minus any outstanding Policy Debt. 

6

 

        Unit.    A unit of measurement used to calculate the Sub-Account Values. 

        Unloaned Policy Value.    The sum of the Variable Account Value and the Fixed Account Value. 

        Valuation Day.    Each day the New York Stock Exchange is open for business except Federal and other holidays and days when the
Company is not otherwise open for business. 

        Valuation Period.    The period commencing at the close of regular trading on the New York Stock Exchange on any Valuation Day
and ending at the close of regular trading on the New York Stock Exchange on the next succeeding Valuation Day. 

        Variable Account.    The Protective Variable Life Separate Account, a separate investment account of the Company used to fund
variable life insurance benefits to which Policy value may be transferred or into which Net Premiums may be allocated. 

        Variable Account Value.    The sum of all Sub-Account Values. 

        Withdrawal.    A Withdrawal by the Owner of an amount of Cash Value that is less than the Surrender Value. 

        Written Notice.    A written notice or request that is received by the Company at the Home Office. 

 
 

GENERAL PROVISIONS    
    

        Entire Contract.    This Policy, any riders and/or endorsements attached hereto, and the Application, a copy of which is
attached, and all subsequent applications, copies of which are attached, constitute the entire contract. Any application for reinstatement becomes part of this Policy if the reinstatement is approved
by the Company. The Policy is issued in consideration of payment of the Initial Premium Payment shown on the Policy Specifications Page. 

        Modification of the Contract.    No change or waiver of the terms of this Policy is valid unless made by the Company, in
writing, and approved by the President, Secretary or a Vice President of the Company. The Company reserve the right to change the provisions of this Policy to conform to any applicable laws, or
applicable regulations or rulings issued by a government agency. 

        Misstatement of Age [or Sex].    Questions in the Application concern the Insured's date of birth
[and sex]. If the date of birth [or sex] given in the Application or any Application for riders is not correct, the Death Benefit and any benefits
provided under any riders to this Policy will be adjusted to those which would be purchased by the most recent deduction for the cost of insurance and the cost of any benefits provided by such riders,
at the correct age [and sex]. 

        Non-Participating.    This Policy does not share in the Company's surplus or profits and does not pay dividends. 

        Suicide Exclusion.    If the Insured commits suicide, while sane or insane, within two years from the Policy Effective Date, the
Company's total liability shall be limited to the Premium Payments made before death, less any Policy Debt and less any Withdrawals. If the Insured commits suicide, while sane or insane, within two
years from the effective date of any increase in the Face Amount, the Company's total liability with respect to such increase shall be limited to the sum of the monthly cost of insurance charges
deducted for such increase. 

        Termination.    All coverage under this Policy shall terminate when any one of the following events occurs: 

	(1)
	The
Owner requests a full surrender. A surrender will require a return of this Policy. 

7

 

	(2)
	The
Insured dies.

	(3)
	The
Policy lapses, as described in the sub-section entitled "Grace Period" under "Premiums" and the sub-section entitled "Collateral" under "Policy Loans".

	(4)
	The
Death Benefit Proceeds is equal to or less than zero. 

        Representations and Contestability.    In issuing this Policy, the Company relies on all statements made by or for the Insured
in the Application or in a supplemental application. Legally, these statements are considered to be representations and not warranties, unless fraud is involved. The Company can contest the validity
of this Policy or resist a claim for any material misrepresentation of a fact made on the Application or in a supplemental application for this Policy. The Company also has the right to contest the
validity of any policy change based on material misstatements made in any application for that change. To do so, however, the representation must have been made in the Application, or in a
supplemental application. Also, a copy of such application must have been attached to this Policy when issued or made a part of the Policy when changes in coverage became effective. 

        The
Company cannot bring any legal action to contest the validity of this Policy after it has been in force during the lifetime of the Insured for two years from the Policy Effective
Date unless fraud is involved. 

        If
there was a rider or endorsement added to this Policy after the Issue Date, or benefits added by a supplemental Policy Specifications Page, the Company cannot contest the validity of
any benefits so added after the benefits have been in force during the lifetime of the Insured for two years from the effective date of the addition of the benefits unless fraud is involved. 

        The
Company cannot contest the validity of any reinstated benefits after the reinstated benefits have been in force during the lifetime of the Insured for two years from the date the
Company approves the reinstatement application unless fraud is involved. 

        Reports.    At least once a year the Company will send to the Owner's last known address, a report for this Policy. The report
will show as of the end of the report period: (1) the current Death Benefit; (2) the current Policy Value; (3) the current Fixed Account Value; (4) the current Variable
Account Value; (5) the current Loan Account Value; (6) the current Sub-Account Values; (7) Premium Payments made since the last report; (8) any Withdrawals
since the last report; (9) any policy loans and accrued interest; (10) the current Surrender Value; (11) the Owner's current premium allocations; (12) charges deducted
since the last report; and (13) any other information required by law. 

        In
addition, the Company will provide a Report for this Policy at any time upon the Owner's written request. If the Owner requests this information more frequently than annually, the
Company may charge a fee which shall not exceed $50. 

        Arbitration.    The parties hereby acknowledge that the provision of insurance pursuant to this Policy takes place in and
substantially affects interstate commerce and that the Federal Arbitration Act permits and promotes the use of arbitration as a means of dispute resolution in matters arising from interstate commerce. 

        Any
controversy, dispute or claim by any Owner, Insured or Beneficiary, or their respective assigns (each referred to herein as "Claimant"), arising out of or relating in any way to this
Policy or the solicitation or sale thereof shall be submitted to binding arbitration pursuant to the provisions of the Federal Arbitration Act, 9 U.S.C. Section 1, et seq. Absent consolidation
of arbitration as provided for below, such arbitration shall be governed by the rules and provisions of the Dispute Resolution Program for Insurance Claims of the American Arbitration Association
("AAA"). The arbitration panel shall consist of three (3) arbitrators, one (1) selected by the Company, one (1) selected by the Claimant and one (1) selected by the
arbitrators previously selected. 

8

 

        If
a Claimant, the Company or a third-party have any dispute between or among them or any of them that is directly or indirectly related to any dispute governed by this arbitration
provision, the Claimant and the Company consent to the consolidation of the dispute governed by this arbitration provision with such other dispute; if such other dispute is governed by an arbitration
agreement that selects the forum and rules of the National Association of Securities Dealers, Inc. or the New York Stock Exchange, Inc., the Claimant and the Company shall be deemed to
have consented to the jurisdiction of such other forum to the extent allowed by law and will abide by the rules, provisions and interpretations thereof, including those for selection of arbitrators. 

        It
is understood and agreed that the arbitration shall be binding upon the parties, that the parties are waiving their right to seek remedies in court, including the right to jury trial;
and that an arbitration
award may not be set aside in later litigation except upon the limited circumstances set forth in the Federal Arbitration Act. 

        Judgment
upon the award rendered by the arbitrator(s) may be entered in any Court having jurisdiction thereof. The arbitration expenses shall be borne by the losing party or in such
proportion as the arbitrator(s) shall decide. 

 
 

CONTROL PROVISIONS    
    

        The Parties Involved.    The Owner is the person(s) who owns this Policy as shown on the Policy Specifications Page, on an
endorsement or on an amendment to the Application. The Owner is the Insured unless someone else is named as the Insured. The Insured is the person whose life this Policy insures. 

        Rights of Owner.    While the Insured is living, the Owner may exercise all rights and benefits contained in the Policy or
allowed by the Company. These rights include assigning this Policy, changing Beneficiaries, changing ownership, enjoying all benefits and exercising all policy provisions. The use of these rights may
be subject to the consent of any assignee or irrevocable Beneficiary. 

        If
a Partnership has any rights under this Policy, such rights shall belong to the Partnership as it exists when the right is exercised. 

        Contingent Owner.    If the Owner is not the Insured, the Owner may name a Contingent Owner provided such request is made in
writing on a form acceptable to the Company. The Contingent Owner will become the Owner if the Owner die. If there is not a Contingent Owner named when the Owner die, the estate of the last Owner to
die will become the Owner. 

        Beneficiary.    A Beneficiary is any person named by the Owner on the Company's records to receive the Death Benefit Proceeds on
the Insured's death. There may be different classes of Beneficiaries such as primary and contingent. These classes set the order of payment of the Death Benefit. The Owner may change the Beneficiary
at any time prior to the Insured's death. To make a change, the Company must receive a written request satisfactory to the Company at the Home Office. If an irrevocable Beneficiary has been designated
however, such designation cannot be changed or revoked without the irrevocable Beneficiary's written consent. Any change of Beneficiaries is effective on the date the request was signed. Provided,
however, the Company will not be liable for any payment made before such request has been received and acknowledged at the Home Office. 

        Changing the Owner.    The Owner may be changed at any time prior to the Insured's death. To make a change, the Company must
receive from the Owner a written request satisfactory to the Company at the Home Office. Any such change will be effective on the date the request was signed. Provided, however, the Company will not
be liable for any payment the Company makes before such request has been received and acknowledged at the Home Office. 

9

 

        Assignment.    Upon notice to the Company, the Owner may assign his or her rights under this Policy. However, for this
assignment to be binding on the Company, it must be in writing and filed at the Home Office. The Company assumes no responsibility for the validity of any assignment. Any claim under any assignment
shall be subject to proof of interest and the extent of assignment. Once the Company receives a signed copy of the assignment, the Owner's rights and the interest of any Beneficiary or any other
person will be subject to the assignment. An assignment is subject to any Policy Debt. 

        Protection of Proceeds.    To the extent permitted by law, any payment of Death Benefit Proceeds, surrender value or any
Withdrawal shall be free from legal process from the claim of any creditor of the person entitled to them. 

        Suspension or Delay in Payment.    The Company has the right to suspend or delay the date of payment of a Withdrawal, loan,
surrender, or the Death Benefit Proceeds for any period: 

	(1)
	when
the New York Stock Exchange is closed; or

	(2)
	when
trading on the New York Stock Exchange is restricted; or

	(3)
	when
an emergency exists (as determined by the Securities & Exchange Commission) as a result of which (a) the disposal of securities in the Variable Account is not
reasonably practicable; or (b) it is not reasonably practicable to determine fairly the value of the net assets of the Variable Account; or

	(4)
	when
the Securities & Exchange Commission, by order, so permits for the protection of security holders. 

        As
to amounts allocated to the Fixed Account, the Company may defer payment of Death Benefit proceeds for up to two months and any withdrawal, surrender or the making of a policy loan
for up to six months after a written request is received. 

        If
the Company delays payment of surrender benefits under this Policy, the Company will pay the Owner interest at the rate specified under applicable state law as required, if any, at
the time of the surrender request. 

        Tax Considerations.    In order to receive the tax treatment afforded to life insurance contracts under federal tax laws, this
Policy must qualify at all times as a life insurance contract under the Internal Revenue Code of 1986, as amended, or its successor. The Company reserves the right to: (a) decline to accept a
premium payment; or (b) decline to change the Death Benefit Option; or (c) decline to process a Withdrawal; or (d) refund a premium payment, including any earnings thereon, if
necessary to prevent this Policy from failing to qualify as a life insurance contract. 

        The
Company also reserves the right to make changes to this Policy or to any endorsements or to any riders or to make distributions from this Policy to the extent the Company considers
necessary for this Policy to continue to qualify as a life insurance contract. Such changes will apply uniformly to all affected policies. The Owner will receive advance written notification of such
changes. 

        Changes in Policy Cost Factors.    Changes in non-guaranteed credited rates, cost of insurance charge rates,
mortality and expense risk charge rates, administration charge rates, or expense charge rates, if any, will be by class and will be based upon changes in future expectations of such factors as
investment earnings, mortality, persistency, expenses, and taxes. 

        Coverage Limitations.    Unless the health and other conditions of the Insured on the date that the Policy is delivered to the
Owner is the same as that indicated in the application, the Company reserves the right to cancel the Policy or re-underwrite the Policy and make appropriate adjustments to the monthly Cost
of Insurance Charge. 

10

 

 
 

PREMIUMS    
    

        Premium Payment(s).    Premium payment(s) are payable at the Company's Home Office or to any Agent of the Company. Premium
payment(s) must be made by check payable to Protective Life Insurance Company or by any other method which the Company deems acceptable. The minimum premium payment(s) that the Company will accept is:
(1) $50 if paid by a monthly pre-authorized payment arrangement; or (2) $150 for any other mode of payment accepted by the Company. 

        The
Company reserves the right to refund a premium payment, including any earnings thereon, which: 

	(a)
	in
the first Policy Year, causes the Death Benefit to exceed the Initial Face Amount shown on the Policy Specifications Page, or

	(b)
	increases
the difference between the Death Benefit and the Policy Value, and

	(c)
	exceeds
$20 per $1,000 of Face Amount. 

        The
Company has the right not to accept any premium payment in the event that it is determined in the Company's discretion that the premium payment will cause the Policy to fail to
qualify as a life insurance contract under federal tax laws. 

        No
insurance will take effect until the initial premium payment is paid and the health and other conditions of the Insured are determined to be the same as that described in the
Application on the date the Policy is delivered. 

        Planned Premium Payments.    The amounts and frequency of the planned premium payments in effect on the Policy Effective Date
are shown on the Policy Specifications Page. The Owner does not have to make the planned premium payment. Subject to the limits described above, the Owner may change the frequency and amount of the
planned premium payments at any time. 

        The
Company will send planned premium payment reminder notices to the Owner unless otherwise requested. The owner can choose to have them sent at 12, 6, or 3 month intervals. If
desired, the Company will also arrange for planned premium payments to be made on a monthly basis under a pre-authorized payment arrangement. 

        Unscheduled Premium Payments.    Subject to the limits described above, while this Policy is in force, premium payment(s) other
than the planned premium payments will be accepted by the Company at any time. The Owner may specify in writing that all unscheduled premium payments are to be applied against Policy Debt, if any, as
a loan repayment. 

        Minimum Monthly Premium Guarantee.    In return for paying the Minimum Monthly Premium shown on the Policy Specifications Page
or an amount equivalent thereto by the Monthly Anniversary Day, the Company guarantees, to the extent outlined herein, that the Policy will not Lapse during the Minimum Monthly Premium Guarantee
Period, which is shown on the Policy Specifications Page, if for each month that the policy has been in force (a) equals or exceeds (b). For purposes of the Minimum Monthly Premium Guarantee: 

	(a)
	is
the total premiums paid less any Withdrawals and Policy Debt; and

	(b)
	is
the Minimum Monthly Premium as shown on the Policy Specifications Page multiplied by the number of complete policy months since the Policy Effective Date, including the current
month. 

        Any
change in the benefits provided by this Policy or any riders attached hereto, made subsequent to the Policy Effective Date and during the Minimum Monthly Premium Guarantee Period,
may result in a change to the Minimum Monthly Premium. However, the changes will not extend the time period 

11

 

for
the guarantee. The new Minimum Monthly Premium and its effective date will be shown in a supplemental Policy Specifications Page. 

        Allocation of Net Premiums.    Net Premiums will be allocated to the Sub-Accounts and the Fixed Account on the date
the Company receives them according to the instructions of the Owner in the Application or subsequent written notice. Owner may change the allocations in effect at any time by Written Notice.
Allocations must be made in whole percentages. The minimum amount that can be
allocated to any Sub-Account or the Fixed Account is 10% of any Net Premiums, and the sum of allocations must add up to 100%. The Company reserves the right to establish (i) a
limitation on the number of Sub-Accounts to which Net Premiums may be allocated and/or (ii) a minimum allocation requirement for the Sub-Accounts and the Fixed Account. 

        If
the Contract is issued in a state where, upon cancellation and within the cancellation period, the Company returns the premium payment(s) made, the Company reserves the right to
allocate the initial premium payment and any additional premium payments made during cancellation period to the Fixed Account or Money Market Sub-Account. Thereafter, allocations will be
made as shown in the Policy Specifications Page in accordance with the selections made by the Owner. 

        Grace Period.    Unless this Policy is otherwise continued under the Minimum Monthly Premium Guarantee, if the Surrender Value
on a Monthly Anniversary Day is insufficient to cover the Monthly Deductions due on that Monthly Anniversary Day, this Policy will stay in force for 61 days. This 61-day period is
called the Grace Period. 

        If
the Owner does not pay sufficient Net Premiums to cover the current and past due Monthly Deductions by the end of the Grace Period, this Policy will terminate without value and all
coverage under this Policy will terminate. At the beginning of the Grace Period, the Company will mail a notice of such premiums due to the Owner's last known address and to the address of any
assignee of record. Coverage continues during the Grace Period. The Company will deduct unpaid Monthly Deductions and Policy Debt from any Death Benefit payable if death occurs during the Grace
Period. 

        Reinstatement.    Prior to the Insured's death and any Surrender of this policy, if this Policy has Lapsed, it can be
reinstated. Reinstatement means to restore the Policy when the Policy has terminated at the end of the Grace Period. The Company will reinstate the Policy if the Company receives: 

	(1)
	the
Owner's written request within five years after the end of the Grace Period,

	(2)
	evidence
of insurability satisfactory to the Company,

	(3)
	payment
of Net Premium equal to all Monthly Deductions that were due and unpaid during the Grace Period with interest at a rate not to exceed 6% per annum compounded annually, if
required by the Company, and payment of Premium Payments at least sufficient to keep this Policy in force for three months (The Company may accept Premium Payments larger than this amount), and

	(4)
	payment
of or reinstatement of any Policy Debt which existed at the end of the Grace Period. 

        The
effective date of a reinstated policy will be the day the Company approves the reinstatement and all of the above requirements have been received. 

        Minimum Values.    The values and benefits of this Policy shall not be less than the minimum benefits required by the statutes
of the state in which this Policy was delivered. 

12

 

 
 

DEDUCTIONS FROM POLICY VALUE    
    

        Monthly Deductions, Other Deductions and Surrender Charges are described on the Policy Specifications Page. 

 
 

COST OF INSURANCE    
    

        Cost of Insurance Charge.    The monthly cost of insurance charge is computed at the beginning of each policy month by
multiplying the Net Amount at Risk (divided by $1,000) by the cost of insurance rate as described in the Cost of Insurance Rate section. 

        The
Cost of Insurance Charge is computed separately for the Initial Face Amount and for each increase in Face Amount. 

        Cost of Insurance Rates.    The monthly cost of insurance rate is based on the sex, issue age, duration and rate class of the
Insured and on the number of years that a Policy has been in force. For each Face Amount increase, the Company will use the issue age, sex, rate class and duration of this Policy at the
time of the request. Monthly cost of insurance rates will be determined by the Company, based on its expectations as to future investment earnings, mortality, persistency, taxes, expenses and other
relevant factors. 

        Any
change in the monthly cost of insurance rates will be by class and based on expectations of future investment earnings, mortality, persistency, taxes, expenses and other relevant
factors. However, the cost of insurance rates will never be greater than those shown in the Guaranteed Maximum Monthly Cost of Insurance Rates Table on the Policy Specifications Page. 

 
 

BASIS OF COMPUTATIONS    
    

        Maximum cost of insurance rates are based on the [Commissioner's 1980 Standard Ordinary Smoker or Non-Smoker, Male or Female Mortality
Table (age nearest birthday)] and the rate class of the Insured. 

 
 

FIXED ACCOUNT    
    

        Calculation of the Fixed Account Value.    The value of the Fixed Account at any time is equal to: 

	(a)
	the
Net Premiums allocated to the Fixed Account; plus

	(b)
	Policy
Value transferred to the Fixed Account; plus

	(c)
	interest
credited to the Fixed Account; less

	(d)
	any
Withdrawals including any withdrawal charges deducted or transfers from the Fixed Account including any transfer fees deducted from the Fixed Account; less

	(e)
	any
surrender charges deducted in the event of a decrease of Face Amount less

	(f)
	Monthly
Deductions. 

        Interest Credited.    The Company guarantees that the interest credited during the first Policy Year to the initial Net Premiums
allocated to the Fixed Account will be at a rate not less than the Initial Annual Effective Interest Rate for the Fixed Account shown on the Policy Specifications Page. 

        For
subsequent Net Premiums allocated to the Fixed Account or Policy Value transferred to the Fixed Account, the guaranteed interest rate applicable will be the annual effective interest
rate in effect on the date the subsequent Net Premium is received by the Company or the date the transfer is made. Such guaranteed interest rate will apply to such amounts for a twelve month period
which begins on the date the Net Premium is allocated or the date the transfer is made. 

13

 

        After
the guaranteed interest rate expires, (i.e., 12 months after the Net Premium or transfer is placed in the Fixed Account) the Company will credit interest on the Fixed
Account Value attributable to such Net Premiums and transfers at the current interest rate in effect. New current interest rates are effective for such Fixed Account Value for 12 months from
the time they are first applied. The Initial Annual Effective Interest Rate and the current interest rates the Company will credit are annual effective interest rates of not less than the annual
Guaranteed Interest Rate for Fixed Account shown on the Policy Specifications Page. For purposes of crediting interest, amounts deducted, transferred or withdrawn from the Fixed Account will be
accounted for on a "first-in, first-out" (FIFO) basis. 

        The
Company reserves the right to apply different interest rate guarantees to certain amounts credited to the Fixed Account. 

 
 

VARIABLE ACCOUNT    
    

        General Description.    The variable benefits under the Policy are provided through the Variable Account. The Variable Account
is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940. 

        The
portion of the assets of the Variable Account equal to the reserves and other contract liabilities of the Variable Account are not chargeable with the liabilities arising out of any
other business the Company may conduct. The Company has the right to transfer to the Company's General Account any assets of the Variable Account which are in excess of such reserves and other
liabilities. The assets of the Variable Account are available to cover the liabilities of the General Account of the Company only to the extent that the assets of the Variable Account exceed the
liabilities of the Variable Account arising under the policies supported by the Variable Account. 

        Sub-Accounts of the Variable Account.    The assets of the Variable Account are divided into a series of
Sub-Accounts that are listed on the Policy Specifications Page and in the current Prospectus the Owner received. Each Sub-Account invests exclusively in shares of a
corresponding Fund. Any amounts of income, dividends, and gains distributed from the shares of a Fund will be reinvested in additional shares of that Fund at its Net Asset Value Per Share. 

        When
permitted by law, the Company may: 

	(1)
	create
new variable accounts;

	(2)
	combine
variable accounts, including the Variable Account;

	(3)
	add
new Sub-Accounts to or remove existing Sub-Accounts from the Variable Account or combine Sub-Accounts;

	(4)
	make
new Sub-Accounts or other Sub-Accounts available to such classes of the Policies as the Company may determine;

	(5)
	add
new Funds or remove existing Funds;

	(6)
	if
shares of a Fund are no longer available for investment or if the Company determine that investment in a Fund is no longer appropriate in light of the purposes of the Variable
Account, substitute a different Fund for any existing Fund;

	(7)
	deregister
the Variable Account under the Investment Company Act of 1940 if such registration is no longer required;

	(8)
	operate
the Variable Account as a management investment company under the Investment Company Act of 1940 or in any other form permitted by law; and

	(9)
	make
any changes to the Variable Account or its operations as may be required by the Investment Company Act of 1940 or other applicable law or regulations. 

14

 

        The
investment policy of the Variable Account will not be changed without approval pursuant to the insurance laws of the State of Tennessee. If required, approval of or change of
investment policy will be filed with the insurance department of the state where this Policy is delivered. 

        The
values and benefits of this Policy provided by the Variable Account depend on the investment performance of the Funds in which the Owner's selected Sub-Accounts are
invested. The company does not guarantee the investment performance of the Funds. The Owner bears the full investment risk for Net Premiums allocated or Policy Value transferred to the
Sub-Accounts. 

        Valuation of Assets.    Assets of Funds held by each Sub-Account will be valued at their Net Asset Value per share
on each Valuation Day. The Prospectus the Owners(s) received for the Funds defines the Net Asset Value per share of the Funds and describes each Fund. 

        Calculation of Sub-Account Values.    The Sub-Account Value for any Sub-Account is equal to
the number of Units this Policy then has in that Sub-Account, multiplied by the value of such units at that time. Amounts allocated, transferred or added to a Sub-Account are
used to purchase Units of that Sub-Account. Units are redeemed when amounts are deducted, transferred, or withdrawn. The number of Units in a Sub-Account at any time is equal
to the number of Units purchased minus the number of Units redeemed up to such time. 

        For
each Sub-Account, the Net Premiums allocated to the Sub-Account or Policy Value transferred to the Sub-Account are converted into Units. The
number of Units credited is determined by dividing the dollar amount directed to each Sub-Account by the value of the Unit for that Sub-Account for the Valuation Day on which
the Net Premiums allocated to or Policy Value transferred are credited to the Sub-Account. The Unit value at the end of every Valuation Day is the Unit value at the end of the previous
Valuation Day times the Net Investment Factor, as described below. 

        Net Investment Factor.    The Unit value for each Sub-Account for any Valuation Period is determined by the Net
Investment Factor. The Net Investment Factor is an index applied to measure the investment performance of a Sub-Account from one Valuation Period to the next. The Net Investment Factor for
a Sub-Account for any Valuation Period is determined by dividing (1) by (2) where 

	(1)
	is
the result of:

	a.
	the
Net Asset Value per share of the Fund held in the Sub-Account, determined at the end of the current Valuation Period; plus

	b.
	the
per share amount of any dividend or capital gain distributions made by the Fund to the Sub-Account, if the "ex-dividend" date occurs during the current
Valuation Period; plus or minus

	c.
	a
per share charge or credit for any taxes reserved for, which is determined by the Company to have resulted from the operations of the Sub-Account.

	(2)
	is
the Net Asset Value per share of the Fund held in the Sub-Account, determined at the end of the last prior Valuation Period. 

        Transfers.    On or after the later of [thirty] days after the Policy Effective Date or six days after
the [ten-day] cancellation period, or such other period as required by law, upon receipt of Written Notice, the Owner may transfer the Fixed Account Value or any
Sub-Account Value to other Sub-Accounts and/or the Fixed Account. The transfer will be effected as of the date the Company receives Written Notice from the Owner. 

        The
amount transferred must be at least $[100] or, if less, the entire amount in the Fixed Account or the Sub-Account(s) each time a transfer is made.
If, after the transfer, the amount remaining in the 

15

 

Fixed
Account or Sub-Account(s) from which the transfer is made is less than $[100], the Company reserves the right to transfer the entire amount instead of the
requested amount. The Company reserves the right to limit the maximum amount which may be transferred from the Fixed Account in any Policy Year. This maximum is currently the greater of
$[2500] or [25]% of the Fixed Account Value. 

        The
Policy Value on the effective date of the transfer will not be affected except to the extent of the transfer fee. The Company reserves the right to limit transfer requests to no more
than [12] per year. For each additional transfer request over [12] during each Policy Year, the Company reserves the right to charge a transfer fee
which is indicated on the Policy Specifications Page. The transfer fee, if any, will be deducted from the amount being transferred. 

        The
Company reserves the right, at any time and without prior notice, to terminate, suspend or modify the transfer privileges described above. 

 
 

DEATH BENEFIT    
    

        Death Benefit Proceeds.    On the Insured's death, provided this Policy is in force, the Company will pay the Death Benefit
Proceeds when satisfactory proof of death of the Insured is received. 

        Amount of Death Benefit Proceeds.    The Death Benefit Proceeds will be determined as of the date of the Insured's death and
will be equal to: (1), plus (2), minus (3), minus (4) where 

	(1)
	is
the Death Benefit under the Death Benefit option selected;

	(2)
	is
any additional benefits due under any riders attached to this Policy;

	(3)
	is
any Policy Debt; and

	(4)
	is
any unpaid Monthly Deductions if the Insured dies during the Grace Period. 

        The
Death Benefit Proceeds shall be determined under the Level Death Benefit option or Increasing Death Benefit option, whichever is chosen by the Owner and indicated on the Policy
Specifications Page, or any supplemental Policy Specifications Page. 

        Level
Death Benefit—The Death Benefit will be the greater of: 

	(a)
	The
Face Amount of insurance on the Insured's date of death; or

	(b)
	a
specified percentage of the Policy Value on the date of the Insured's death as indicated on the Table of Percentages below. 

        Increasing
Death Benefit—The Death Benefit will be the greater of: 

	(a)
	the
Face Amount of insurance on the Insured's date of death plus the Policy Value on such date; or

	(b)
	a
specified percentage of the Policy Value on the Insured's date of death as indicated on the Table of Percentages below. 

16

  

 
 

TABLE OF PERCENTAGES    
    

	Attained

Age
	 	Percentage
	 	Attained

Age
	 	Percentage
	 	Attained

Age
	 	Percentage

	0-40	 	250%	 	54	 	157%	 	68	 	117%
	41	 	243%	 	55	 	150%	 	69	 	116%
	42	 	236%	 	56	 	146%	 	70	 	115%
	43	 	229%	 	57	 	142%	 	71	 	113%
	44	 	222%	 	58	 	138%	 	72	 	111%
	45	 	215%	 	59	 	134%	 	73	 	109%
	46	 	209%	 	60	 	130%	 	74	 	107%
	47	 	203%	 	61	 	128%	 	75-90	 	105%
	48	 	197%	 	62	 	126%	 	91	 	104%
	49	 	191%	 	63	 	124%	 	92	 	103%
	50	 	185%	 	64	 	122%	 	93	 	102%
	51	 	178%	 	65	 	120%	 	94	 	101%
	52	 	171%	 	66	 	119%	 	95+	 	100%
	53	 	164%	 	67	 	118%	 	 	 	 

        Payment of Death Benefit Proceeds.    The Company will pay the Death Benefit Proceeds to the Beneficiary in a lump sum, unless a
Settlement Option has been selected. If the Primary or Contingent Beneficiary is not living, or if no Beneficiary has been designated, the Company will pay the Owner or Owner's estate. 

        Suspension of Payment.    Payment of Death Benefit Proceeds may be suspended or delayed under the circumstances described herein
for suspension or delay of payment of surrenders or Withdrawals. 

        Creditor Claims.    To the extent permitted by applicable laws, no right or benefit under this Policy shall be subject to claims
of creditors, except as may be provided by an assignment. 

 
 

SURRENDERS AND WITHDRAWALS    
    

        Surrenders.    Prior to the Insured's death, and while the Policy is in force, this Policy may be surrendered for its Surrender
Value. The surrender will be effective as of the Valuation Day on which the Company receives a Written Notice requesting surrender of the Policy. If the Policy is surrendered, any applicable surrender
charge as described on the Policy Specifications Page will be imposed. Once the surrender is effective, all benefits provided by the Policy cease and the Policy cannot be reinstated. 

        Withdrawals.    After the first Policy Year, the Owner may make a written request for a Withdrawal, subject to certain
restrictions. The minimum Withdrawal request is $[500]. The maximum Withdrawal request may be for an amount less than the Surrender Value. As of the date the Company receives
Written Notice from the Owner, the Sub-Account Value(s) and Fixed Account Value will be reduced by the amount withdrawn (including the withdrawal charge as described on the Policy
Specifications Page). The Owner may specify how the Withdrawal and withdrawal charge are to be deducted from the Sub-Account Value(s) and Fixed Account Value. In the event an allocation is
not specified, the Company will allocate the Withdrawal and withdrawal charge based on the proportion that the value in the Fixed Account and the value in the Sub-Accounts bear to the
Unloaned Policy Value. 

        If
a Level Death Benefit is in effect, the Company reserves the right to reduce the Face Amount of the Policy by the amount of the Withdrawal (exclusive of the withdrawal charge). Face
Amount reductions will be effective on the Monthly Anniversary Day that falls on or next following the date the Company approves a written request for a Withdrawal. The order of Face Amount reductions
will be as 

17

 

provided
in the provision "Decreasing the Face Amount". There will be no surrender charge for a Face Amount reduction resulting from a Withdrawal. 

        The
Company reserves the right to decline a Withdrawal request if the remaining Face Amount would be below the minimum amount for which the Company would then issue the Policy under its
rules; or the Company determines that the Withdrawal would cause this Policy to fail to qualify as a life insurance contract under applicable tax laws, as interpreted by the Company. 

 
 

POLICY LOANS    
    

        Right to Make Loans, Policy Debt.    After the first Policy Anniversary and prior to the Insured's death and while this Policy
is in force, loans can be made on this Policy provided it has Surrender Value greater than zero. However, the Policy must be properly assigned to the Company before any policy loan is made. No other
collateral is needed. Any policy loan must be for at least a minimum loan amount of $[500]. The Company may delay making any policy loan from the Fixed Account for up to six
months. 

        Maximum Loan.    The most the Owner can borrow is an amount that equals [90]% of the Cash Value of the
Policy minus any Policy Debt on the date the policy loan request is received. 

        Interest.    The interest charged on any policy loan is at an effective annual rate, shown on the Policy Specifications Page,
compounded yearly on the Policy Anniversary. Interest payments are due for the prior Policy Year on each Policy Anniversary. If interest is not paid when due, it will be added to the amount of the
policy loan and will bear interest at the rate payable on the policy loan. Interest is charged in arrears from the date of the policy loan. Interest, as it accrues from day to day, is considered part
of the Policy Debt. 

        Collateral.    When a policy loan is made, an amount sufficient to secure the policy loan is transferred out of the
Sub-Account(s) and the Fixed Account and into the Policy's Loan Account. The Owner can specify how to allocate the amount to be transferred to the Loan Account as collateral from among the
Sub-Account(s) and the Fixed Account. If an allocation is not specified, the amount will be allocated in the same proportion that the value of the Owner's Fixed Account and the value of
the Owner's Sub-Account(s) bear to the total Unloaned Policy Value on the date the policy loan is made. An amount equal to any unpaid policy loan interest will also be transferred on each
Policy Anniversary to the Loan Account. The Company will allocate the unpaid interest based on the proportion that the value of the Owner's Fixed Account and the value of the Owner's
Sub-Account(s) bear to the total Unloaned Policy Value. The Loan Account Value will be recalculated (1) when policy interest is added to the amount of the loan, (2) when a
loan repayment is made, or (3) when a new policy loan is made. 

        The
Company will credit the Loan Account with interest at an effective annual rate of not less than the Guaranteed Interest Rate for the Fixed Account shown on the Policy Specifications
Page. The Company will determine such rate in advance of each calendar year. This rate will apply to the calendar year which follows the date of determination. On each Policy Anniversary, the interest
earned on the Loan Account since the preceding Policy Anniversary will be transferred to the Sub-Account(s) and the Fixed Account. The interest will be transferred to the
Sub-Account(s) and the Fixed Account in the same proportion that Premium Payments are allocated. 

        If
the Loan Account Value exceeds the Cash Value, the Owner must pay the excess. The Company will send the Owner a notice of the amount the Owner must pay. This amount must be paid
within 31 days after the notice is sent, or the Policy will Lapse. The Company will send the notice to the Owner and to any assignee of record. 

        Repaying Policy Debt.    Policy Debt can be repaid in part or in full any time during the Insured's life while this Policy is in
force. When a loan repayment is made, Policy Value in the Loan Account in 

18

 

an
amount equal to that payment will be transferred to the Sub-Account(s) and the Fixed Account. The Owner may tell the Company how to allocate this transfer among the
Sub-Account(s) and the Fixed Account. If no allocation is specified, the Company will allocate that amount among the Sub-Account(s) and the Fixed Account in the same proportion
that Premium Payments are allocated. 

 
 

CHANGING THIS POLICY    
    

        The Owner can request any one of the following changes subject to certain conditions. The Owner's request must be received in writing at the Company's Home
Office. 

        Increasing the Face Amount.    On or after the first Policy Anniversary, the Owner may submit a supplemental application for an
increase in Face Amount. The Company reserves the right to require satisfactory proof of insurability in connection with evaluating any requested increase in Face Amount. The Insured's current
Attained Age must be less than the maximum issue age. The amount of any increase must be at least $[10,000]. Any increase approved by the Company will be effective on the
effective date shown on the supplemental Policy Specifications Page which will be issued and attached to the Policy and will be subject to monthly cost of insurance deductions for the increase from
the Policy Value of this Policy. 

        Premium Payments Required for a Face Amount Increase.    Additional premium payments may be required in connection with an
increase in Face Amount. The Company will notify the Owner if additional premium payments are required and specify the premium payments required on the supplemental Policy Specifications Page. 

        Cancellation of an Increase of Face Amount.    The cancellation provision on the cover of this Policy applies equally to any
increase in Face Amount except that where no additional premium payments are required in order to increase the Face Amount, only the first monthly cost of insurance deduction and the administration
fee for increases in Face Amount will be credited back to the sub-accounts and fixed account in the proportion that each Sub-Account Value and the Fixed Account Value bears to
the Unloaned Policy Value if the increase is cancelled. 

        Decreasing the Face Amount.    On or after the first Policy Anniversary, the Owner can request in writing a decrease in Face
Amount subject to the following rules. Any decrease will go into effect on the Monthly Anniversary Day that falls on or next following the date the Company approves the written request for change. The
decrease will first be applied against increases in Face Amount in the reverse order in which they occurred. It will then be applied against the Initial Face Amount. The Company reserves the right to
prohibit any decrease: (1) for the three years following an increase in Face Amount; and (2) for one Policy Year following the last decrease in Face Amount. 

        The
Face Amount remaining in effect after any decrease cannot be less than the Minimum Face Amount shown on the Policy Specifications Page. Decreasing the Face Amount may result in lower
Monthly Deductions or a refund in premiums and earnings thereon. Decreasing the Initial Face Amount may result in a surrender charge. The Company reserves the right to refuse a decrease in Face Amount
if such decrease would cause this Policy to fail to qualify as a life insurance contract under applicable tax laws, as interpreted by the Company. 

        Changing the Death Benefit Option.    On or after the first Policy Anniversary, the Owner may request in writing a change in the
Death Benefit Option. The change will go into effect on the Monthly Anniversary Day that falls on or next following the date the Company approves the written request for change. If the Owner requests
a change from Increasing Death Benefit to Level Death Benefit, the Face Amount will be increased to equal the Death Benefit on the effective date of change. There will be no administration charge for
a Face Amount increase resulting from a Death Benefit Option change. If the Owner requests a change from Level Death Benefit to Increasing Death Benefit, the Face Amount will be decreased so that it
equals the Death Benefit less the Policy Value on the date of 

19

 

the
change. There will be no surrender charge for a Face Amount reduction resulting from a Death Benefit Option change. The Company reserves the right to require satisfactory proof of insurability
before permitting a change in Death Benefit options. 

        Change Approval.    All changes must be approved by the Home Office. No agent has the authority to make any changes or waive any
of the terms of this Policy. 

 
 

SETTLEMENT OPTIONS    
    

        Optional Methods of Settlement provide alternative ways in which payment can be made. Payment under these Optional Methods of Settlement will not be affected by
the investment experience of any Sub-Account after the proceeds are applied under such option. 

        Availability of Options.    Upon written request, all or part of the Death Benefit Proceeds or Surrender Value may be applied
under any Settlement Option offered on the option date. The option date is any date this Policy terminates under the termination provision. If this Policy is assigned, either before or after the
choice of an option, any amount due to the assignee will be paid in one sum. The balance, if any, may be applied under any Settlement Option. 

        Minimum Amounts.    If the amount to be applied under any Settlement Option for any one person is less than
$[5,000], the Company may pay that amount in one sum instead. If the payments under any option come to less than $[50] each, the Company has the right
to make payments at less frequent intervals. 

        Electing A Settlement Option.    To elect any Settlement Option, the Company requires that a written request, satisfactory to
it, be received at its Home Office. The Owner may elect a Settlement Option during the Insured's lifetime. If the Death Benefit Proceeds are payable in one sum when the Insured dies, the Beneficiary
may elect a Settlement Option with the Company's consent. 

        Effective Date and Payment Date.    The effective date of a Settlement Option is the date the amount is applied under that
option. For Death Benefit Proceeds, this is the date that due proof of the Insured's death is received at the Company's Home Office. For the Surrender Value, it is the effective date of surrender. 

        A
later date for the first payment may be requested in the Settlement Option election. All payment dates will fall on the same day of the month as the first one. No payment will become
due until a payment date. No partial payment will be made for any period shorter than the time between payment dates. 

        If
the Surrender Value is applied under any option, the Company may delay payment for up to six months. Interest at the rate in effect for Option 3 during this period will be paid on the
amount of the delayed payment. 

        Description of Options.    The Company's Settlement Options are described below. Any other Settlement Option agreed to by the
Company may be elected. The Settlement Options are described in terms of monthly payments. 

        Option 1—Payment For A Fixed Period.    Equal monthly payments will be made for any period selected up to
30 years. The amount of each payment depends on the total amount applied, the period selected and the monthly payment rates the Company is using when the first payment is due. The rate of any
payment for each $1,000 of proceeds applied will not be less than shown in the Option 1 Table. The payments shown in this table are based on an interest rate of [3]% per year. 

20

 

 
 

Option 1 Table    
    

	Minimum Monthly Payment Rates for Each $1,000 Applied

	Years
	 	Monthly

Payment
	 	Years
	 	Monthly

Payment
	 	Years
	 	Monthly

Payment

	1	 	$	 	 	11	 	$	[8.86]	 	21	 	$	[5.32]
	2	 	 	[42.86]	 	12	 	 	[8.24]	 	22	 	 	[5.15]
	3	 	 	[28.99]	 	13	 	 	[7.71]	 	23	 	 	[4.99]
	4	 	 	[22.06]	 	14	 	 	[7.26]	 	24	 	 	[4.84]
	5	 	 	[17.91]	 	15	 	 	[6.87]	 	25	 	 	[4.71]
	6	 	 	[15.14]	 	16	 	 	[6.53]	 	26	 	 	[4.59]
	7	 	 	[13.16]	 	17	 	 	[6.23]	 	27	 	 	[4.47]
	8	 	 	[11.68]	 	18	 	 	[5.96]	 	28	 	 	[4.37]
	9	 	 	[10.53]	 	19	 	 	[5.73]	 	29	 	 	[4.27]
	10	 	 	[9.61]	 	20	 	 	[5.51]	 	30	 	 	[4.18]

        Option 2—Life Income with Payments for a Guaranteed Period.    Equal monthly payments are based on the life of the
named person. Payments will continue for the lifetime of that person with payments guaranteed for 10 or 20 years. Payments stop at the end of the selected guaranteed period or when the named
person dies, whichever is later. 

        The
Option 2 Table shows the minimum monthly payment for each $1,000 applied. The actual payments will be based on the monthly payment rates the Company is using when the first payment
is due. They will not be less than shown in the Table, which is based on [the Annuity 2000 Mortality Table with interest at 3% per annum. One year will be deducted from the Attained Age of
the named person for every completed three years beyond the year 1996. The Age of the payee is the age at the birthday nearest to the effective date of the Option]. 

21

THIS
PAGE INTENTIONALLY LEFT BLANK 

 
 

INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY
  NON-DIVIDEND PAYING    
    

 
[LETTERHEAD OF PROTECTIVE LIFE INSURANCE COMPANY]

 
 

POLICY LOAN ENDORSEMENT    
    

        The Company has issued this endorsement as a part of the Policy to which it is attached, "the Policy". This endorsement changes provisions of the Policy. 

        The
Policy is amended as follows: 

	1.
	The
provision entitled "Policy Loans" shall be deleted in its entirety, and in its place the following provision shall be substituted: 

 
 

POLICY LOANS    
    

         Right to Make Loans, Policy Debt.    A loan can be made prior to the death of the Last Survivor of the Joint Insureds and while the Policy
is in force
and the Policy has Surrender Value greater than zero. A loan can be a standard loan or a carryover loan. After the first Policy Anniversary, standard loans can be made on the Policy. However, the
Policy must be properly assigned to the Company before any policy loan is made. No other collateral is needed. Any policy loan must be for at least a minimum loan amount of $500. The Company may delay
making any policy loan from the Fixed Account for up to six months. The Company refers to all outstanding loans plus accrued interest as Policy Debt. 

         Maximum Loan.    The most the Owner can borrow is an amount that equals 90% of the Cash Value of the Policy minus any Policy Debt on the
date the policy
loan request is received. 

         Carryover Loan.    An initial carryover loan is a loan on the Policy the amount of which must (a) be transferred from another policy
that is
exchanged for the Policy such that the exchange qualifies under Section 1035 of the Internal Revenue Code, as amended, or its successor and (b) be approved by the Company. Additional
carryover loans are loans on the Policy made to cover carryover loan interest. 

         Standard Loan.    A standard loan is any loan that is not a carryover loan. 

         Interest.    The maximum interest charged on standard and carryover loans is at an effective annual rate shown in item 3 below, compounded
yearly on the
Policy Anniversary. Interest payments are due for the prior Policy Year on each Policy Anniversary. If interest on a standard loan is not paid when due, it will be added to the standard loan portion
of the Policy Debt and will bear interest at the rate payable on a standard loan. If interest on a carryover loan is not paid when due, it will be added to the carryover loan portion of the Policy
Debt and will bear interest at the rate payable on a carryover loan. Interest is charged in arrears from the date of the policy loan. Interest, as it accrues from day to day, is considered part of the
Policy Debt. 

         Collateral.    When a policy loan is made, an amount sufficient to secure the policy loan is transferred out of the Sub-Account(s) and the
Fixed Account and into the Policy's Loan Account. The Owner can specify, on a standard loan, how to allocate the amount to be transferred to the Loan Account as collateral from among the
Sub-Account(s) and the Fixed Account. If an allocation is not specified, the amount will be allocated in the same proportion that the value of the Owner's Fixed Account and the value of
the Owner's Sub-Account(s) bear to the total Unloaned Policy Value on the date the policy loan is made. An amount equal to any unpaid policy loan interest will also be transferred on each
Policy Anniversary to the Loan Account. The Company will allocate the unpaid interest based on the proportion that the value of the Owner's Fixed Account and the value of the Owner's
Sub-Account(s) bear to the total Unloaned Policy 

1

 

Value.
The Loan Account Value will be recalculated (1) when Policy interest is added to the amount of the loan, (2) when a loan repayment is made, or (3) when a new policy loan is
made. 

        The
Company will credit the Loan Account with interest at an effective annual rate of not less than the Guaranteed Interest Rate for the Fixed Account shown on the Policy Specifications
Page. The Company will determine such rate in advance of each calendar year. This rate will apply to the calendar year which follows the date of determination. On each Policy Anniversary, the interest
earned on the Loan Account since the preceding Policy Anniversary will be transferred to the Sub-Account(s) and the Fixed Account. The interest will be transferred to the
Sub-Account(s) and the Fixed Account in the same proportion that premium payments are allocated. 

        If
the Loan Account Value exceeds the Cash Value, the Owner must pay the excess. The Company will send the Owner a notice of the amount the Owner must pay. This amount must be paid
within 31 days after the notice is sent, or the Policy will Lapse. The Company will send the notice to the Owner and to any assignee of record. 

         Repaying Policy Debt.    Policy Debt can be repaid in part or in full any time prior to the death of the Last Survivor of the Joint
Insureds and while
the Policy is in force. After the Policy Effective Date, any Policy Debt repayment will first reduce the standard loan portion of the Policy Debt until all standard loan Policy Debt has been repaid.
After the standard loan Policy Debt has been repaid, any Policy Debt repayment will reduce the carryover loan portion of the Policy Debt. When a loan repayment is made, Policy Value in the Loan
Account in an amount equal to that payment will be transferred to the Sub-Account(s) and the Fixed Account. The Owner may tell the Company how to allocate this transfer among the
Sub-Account(s) and the Fixed Account. If no allocation is specified, the Company will allocate that amount among the Sub-Account(s) and the Fixed Account in the same proportion
that premium payments are allocated. 

	2.
	The
provision entitled "Loan Interest Rate" or "Maximum Loan Interest Rate" on the Policy Specifications Page shall be deleted in its entirety, and in its place the following provision
shall be substituted: 

         Maximum Loan Interest Rate.    In the first 10 Policy Years, the maximum annual interest rate charged on any carryover loan will be
[3.00%-8.00%] and the maximum annual interest rate charged on any standard loan will be [3.00%-8.00%]. For Policy Years 11 and
after, the maximum annual interest rate charged on any policy loan will be [3.00%-8.00%]. 

        Signed
for the Company as of the Policy Effective Date of the Policy. 

	 	 	PROTECTIVE LIFE INSURANCE COMPANY
	

 	
 	

/s/  DEBORAH J. LONG      
Secretary

2

QuickLinks

Exhibit 4.(a)(2)

INDEX

POLICY SPECIFICATIONS

DEDUCTION FROM PREMIUM PAYMENTS

MONTHLY DEDUCTIONS

OTHER DEDUCTIONS

SURRENDER CHARGES

GUARANTEED MAXIMUM MONTHLY COST OF INSURANCE RATES PER $1,000 OF NET AMOUNT AT RISK

DEFINITIONS

GENERAL PROVISIONS

CONTROL PROVISIONS

PREMIUMS

DEDUCTIONS FROM POLICY VALUE

COST OF INSURANCE

BASIS OF COMPUTATIONS

FIXED ACCOUNT

VARIABLE ACCOUNT

DEATH BENEFIT

TABLE OF PERCENTAGES

SURRENDERS AND WITHDRAWALS

POLICY LOANS

CHANGING THIS POLICY

SETTLEMENT OPTIONS

Option 1 Table

INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY NON-DIVIDEND PAYING

POLICY LOAN ENDORSEMENT

POLICY LOANSExhibit 4.3

REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS
AGREEMENT, dated as of this 17th day of March, 1987, is made and entered into
by OII Holdings Corporation, a Delaware corporation (the “Company”), KKR
Partners II, L.P., a Delaware limited partnership, OII Associates, L.P., a
Delaware limited partnership, OII Associates II, L.P., a Delaware limited
partnership, and KKR Associates, a New York limited partnership.

1.             Background.
The Company has entered into various securities purchase agreements with
certain of the parties hereto (the “Purchase Agreements”) pursuant to which the
Company has agreed to issue and sell to such parties, and such purchasers have
agreed to purchase, an aggregate of 36,000,000 shares of the Company’s Common
Stock, par value $.01 per share (the “Common Stock”), at a purchase price of
$5.00 per share, as follows: KKR Partners II, L.P. — 848,600 shares of Common
Stock; OII Associates, L.P. — 34,920,000 shares of Common Stock; OII Associates
II, L.P. — 231,400 shares of Common Stock. Such shares of Common Stock in the
aggregate will comprise 100% of the issued and outstanding shares of Common
Stock of the Company. This Agreement shall become effective upon the issuance
of the Common Stock to be sold under all such Purchase Agreements.

2.             Definitions.

As used in this Agreement,
the following capitalized terms shall have the following respective meanings:

Exchange Act - The
Securities Exchange Act of 1934, as amended, or any similar federal statute
then in effect, and a reference to a particular section thereof shall be deemed
to include a reference to the comparable section, if any, of any such similar
federal statute.

Holder - Any party
hereto (other than the Company) and any holder of Registrable Securities who
agrees in writing to be bound by the provisions of this Agreement.

Person - Any
individual, partnership, joint venture, corporation, trust, unincorporated
organization or government or any department or agency thereof.

Registrable  Securities
- Any Common Stock issued or issuable pursuant to a Purchase Agreement and any
Common Stock which may be issued or distributed in respect thereof by way of
stock dividend or stock split or other distribution, recapitalization or
reclassification. As to any particular Registrable Securities, once issued such
Securities shall cease to be Registrable Securities when (i) a registration
statement with respect to the sale of such Securities shall have become
effective under the Securities Act and such Securities shall have been disposed
of in accordance with such registration statement, (ii) they shall have been
distributed to the public pursuant to Rule 144 (or any successor
provision) under the Securities Act, (iii) they shall have been otherwise
transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent disposition of
them

 

 

shall
not require registration or qualification of them under the Securities Act or
any state securities or blue sky law then in force, or (iv) they shall have
ceased to be outstanding.

Registration Expenses - Any and all
expenses incident to performance of or compliance with this Agreement,
including, without limitation, (i) all SEC and stock exchange or National
Association of Securities Dealers, Inc. registration and filing fees,
(ii) all fees and expenses of complying with securities or blue sky laws
(including fees and disbursements of counsel for the underwriters in connection
with blue sky qualifications of the Registrable Securities), (iii) all
printing, messenger and delivery expenses, (iv) all fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange pursuant to clause (viii) of Section 5, (v) the fees
and disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits and/or “cold comfort”
letters required by or incident to such performance and compliance,
(vi) the reasonable fees and disbursements of one counsel selected by the
Holders of a majority of the Registrable Securities being registered to
represent all Holders of the Registrable Securities being registered in
connection with each such registration, (vii) any fees and disbursements
of underwriters customarily paid by the issuers or sellers of securities,
including liability insurance if the Company so desires or if the underwriters
so require, and the reasonable fees and expenses of any special experts
retained in connection with the requested registration, but excluding
underwriting discounts and commissions and transfer taxes, if any.

Securities Act - The
Securities Act of 1933, as amended, or any similar federal statute then in
effect, and a reference to a particular section thereof shall be deemed to
include a reference to the comparable section, if any, of any such similar
federal statute.

SEC - The
Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act or the Exchange Act.

3.             Incidental
Registrations.

(a)           Right to Include Registrable
Securities. If the Company at any time after the date hereof proposes to
register its Common Stock under the Securities Act (other than a registration
on Form S-4 or S-8, or any successor or other forms promulgated for similar
purposes), whether or not for sale for its own account, in a manner which would
permit registration of Registrable Securities for sale to the public under the
Securities Act, it will each such time give prompt written notice to all
Holders of Registrable Securities of its intention to do so and of such
Holders’ rights under this Section 3. Upon the written request of any such
Holder made within 15 days after the receipt of any such notice (which request
shall specify the Registrable Securities intended to be disposed of by such
Holder), the Company will use its best efforts to effect the registration under
the Securities Act of all Registrable Securities which the Company has been so
requested to register by the Holders thereof, to the extent requisite to permit
the disposition of the Registrable Securities so to be registered; provided, that (i) if, at any time after
giving written notice of its intention to register any securities and prior to
the

 

 

 

2

 

effective date of the registration statement
filed in connection with such registration, the Company shall determine for any
reason not to proceed with the proposed registration of the securities to be
sold by it, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection
with such registration (but not from its obligation to pay the Registration
Expenses in connection therewith), and (ii) if such registration involves an
underwritten offering, all Holders of Registrable Securities requesting to be
included in the Company’s registration must sell their Registrable Securities
to the underwriters selected by the Company on the same terms and conditions as
apply to the Company, with such differences, including any with respect to indemnification
and liability insurance, as may be customary or appropriate in combined primary
and secondary offerings. If a registration requested pursuant to this
Section 3(a) involves an underwritten public offering, any Holder of
Registrable Securities requesting to be included in such registration may
elect, in writing prior to the effective date of the registration statement
filed in connection with such registration, not to register such securities in
connection with such registration.

(b)           Expenses. The Company will pay
all Registration Expenses in connection with each registration of Registrable
Securities requested pursuant to this Section 3.

(c)           Priority in Incidental
Registrations. If a registration pursuant to this Section 3 involves
an underwritten offering and the managing underwriter advises the Company in
writing that, in its opinion, the number of securities requested to be included
in such registration exceeds the number which can be sold in such offering, so
as to be likely to have an adverse effect on such offering as contemplated by
the Company (including the price at which the Company proposes to sell such
securities), then the Company will include in such registration (i) first, 100%
of the securities the Company proposes to sell, (ii) second, to the extent of
the number of Registrable Securities requested to be included in such
registration which, in the opinion of such managing underwriter, can be sold
without having the adverse effect referred to above, the number of Registrable
Securities which the Holders have requested to be included in such
registration, such amount to be allocated pro rata among all requesting Holders
on the basis of the relative number of shares of Registrable Securities then
held by each such Holder (provided that any shares thereby allocated to any
such Holder that exceed such Holder’s request will be reallocated among the
remaining requesting Holders in like manner). For purposes of this provision,
the term Holders shall include all members of management of the Company and the
term Registrable Securities shall include all shares of Common Stock held by or
subject to options granted to such persons, to the extent necessary to reflect
all rights of registration to which such persons may be entitled with respect
to such shares prior to a public offering after the date hereof of shares of
Common Stock pursuant to an effective registration statement under the
Securities Act.

4.             Registration on Request.

(a)           Request by
Holders. After any Common Stock of the Company has been registered
after the date hereof under the Securities Act (other than a registration on

 

3

 

 

Form S-4 or
S-8, or any successor or other forms promulgated for similar purposes), upon
the written request of any Holder or Holders requesting that the Company effect
the registration under the Securities Act of all or part of such Holder’s or
Holders’ Registrable Securities (constituting in the aggregate at least
5,000,000 shares or such lesser number of Registrable Securities then
outstanding) and specifying the intended method of disposition thereof, the
Company will promptly give written notice of such requested registration to all
other Holders of Registrable Securities, and thereupon will, as expeditiously
as possible, use its best efforts to effect the registration under the
Securities Act of:

(i)            the Registrable Securities which the
Company has been so requested to register by such Holder or Holders; and

(ii)           all other Registrable Securities
which the Company has been requested to register by any other Holder thereof by
written request given to the Company within 15 days after the giving of such
written notice by the Company (which request shall specify the intended method
of disposition of such Registrable Securities),

all to the extent necessary to permit the disposition
(in accordance with the intended method thereof as aforesaid) of the
Registrable Securities so to be registered; provided,
that, unless Holders of a majority of the shares of Registrable Securities held
by Holders consent thereto in writing, the Company shall not be obligated to
file a registration statement relating to any registration request under this
Section 4(a) (A) unless the aggregate requests by the Holder or Holders for
such registration cover an aggregate of 5,000,000 or more shares of the
Registrable Securities (or such lesser number of Registrable Securities then
outstanding), (B) (other than a registration statement on Form S-3 or any
successor or similar short-form registration statement) within a period of nine
months after the effective date of any other registration statement relating to
any registration request under this Section 4(a) which was not effected on Form
S-3 (or any successor or similar short-form registration statement) or relating
to any registration effected under
Section 3, (C) if with respect thereto, the managing underwriter, the SEC, the
Securities Act or the rules and regulations thereunder, or the form on which
the registration statement is to be filed, would require the conduct of an
audit other than the regular audit conducted by the Company at the end of its
fiscal year, in which case the filing may be delayed until the completion of
such regular audit (unless the Holders agree to pay the expenses of the Company
in connection with such an audit other than the regular audit).

(b)           Registration Statement Form.
If any registration requested pursuant to this Section 4 which is proposed
by the Company to be effected by the filing of a registration statement on Form
S-3 (or any successor or similar short-form registration statement) shall be in
connection with an underwritten public offering, and if the managing
underwriter shall advise the Company in writing that, in its opinion, the use
of another form of registration statement is of material importance to the
success of such proposed offering, then such registration shall be effected on
such other form.

 

 

4

 

(c)           Expenses. The
Company will pay all Registration Expenses in connection with the first six (6)
registrations of Registrable Securities pursuant to this Section 4 upon the
written request of any of the Holders. All expenses for any subsequent
registrations of Registrable Securities pursuant to this Section 4 shall be
paid pro rata by the Company and all other Persons (including the Holders) participating in such registration on the
basis of the relative number of shares of Common Stock of each such person
included in such registration.

(d)           Effective Registration Statement.
A registration requested pursuant to this Section 4 will not be deemed to have
been effected unless it has become effective; provided,
that if, within 180 days after it has become effective, the offering of
Registrable Securities pursuant to such registration is interfered with by any
stop order, injunction or other order or requirement of the SEC or other
governmental agency or court, such registration will be deemed not to have been
effected.

(e)           Selection of
Underwriters. If a requested registration pursuant to this Section
4 involves an underwritten offering, the Company shall have the right to select
the investment banker or bankers and managers to administer the offering; provided, however, that such investment banker or bankers and managers
shall be satisfactory to holders of a majority of the shares of Registrable
Securities which are held by Holders and-which the Company has been requested
to register.

(f)            Priority in Requested
Registrations. If a requested registration pursuant to this Section 4
involves an underwritten offering and the managing underwriter advises the
Company in writing that, in its opinion, the number of securities requested to
be included in such registration (including securities of the Company which are
not Registrable Securities) exceeds the number which can be sold in such
offering, the Company will include in such registration only the Registrable
Securities requested to be included in such registration. In the event that the
number of Registrable Securities requested to be included in such registration
exceeds the number which, in the opinion of such managing underwriter, can be
sold, the number of such Registrable Securities to be included in such
registration shall be allocated pro rata among all requesting Holders on the
basis of the relative number of shares of Registrable Securities then held by
each such Holder (provided that any shares thereby allocated to any such Holder
that exceed such Holder’s request shall be reallocated among the remaining requesting
Holders in like manner). In the event that the number of Registrable Securities
requested to be included in such registration is less than the number which, in
the opinion of the managing underwriter, can be sold, the Company may include
in such registration the securities the Company proposes to sell up to the
number of securities that, in the opinion of the underwriter, can be sold.

(g)           Additional Rights. If the
Company at any time grants to any other hollers of Common Stock any rights to
request the Company to effect the registration under the Securities Act of any
such shares of Common Stock on terms more favorable to such holders than the
terms set forth in this Section 4, the terms of this Section 4 shall
be deemed amended or supplemented to the extent necessary to provide the
Holders such more favorable rights and benefits.

 

5

 

 

5.             Registration Procedures. If
and whenever the Company is required to use its best efforts to effect or cause
the registration of any Registrable Securities under the Securities Act as
provided in this Agreement, the Company will, as expeditiously as possible:

(i)            prepare and, in any event within 120
days after the end of the period within which a request for registration may be
given to the Company, file with
the SEC a registration statement with respect to such Registrable Securities
and use its best efforts to cause such registration statement to become
effective, provided, however,
that the Company may discontinue any registration of its securities which is
being effected pursuant to Section 3 at any time prior to the effective date of
the registration statement relating thereto;

(ii)           prepare
and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection therewith as
may be necessary to keep such registration statement effective for a period not
in excess of 180 days and to comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by the seller or sellers thereof set forth in such registration
statement; provided, that before
filing a registration statement or prospectus, or any amendments or supplements
thereto, the Company will furnish to one counsel selected by the Holders of a
majority of the Registrable Securities covered by such registration statement
to represent all Holders of Registrable Securities covered by such registration
statement, copies of all documents proposed to be filed, which documents will
be subject to the review of such counsel;

(iii)          furnish to each seller of such
Registrable Securities such number of copies of such registration statement and
of each amendment and supplement thereto (in each case including all exhibits),
such number of copies of the prospectus included in such registration statement
(including each preliminary prospectus and summary prospectus), in conformity
with the requirements of the Securities Act, and such disposition of the
Registrable Securities by such seller;

(iv)          use
its best efforts to register
or qualify such Registrable Securities covered by such registration statement
under such other securities or blue sky laws of such jurisdictions as each
seller shall reasonably request, and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate
the disposition in such jurisdictions of the Registrable Securities owned by
such seller, except that the Company shall not for any such purpose be required
to qualify generally to do business as a foreign corporation in any
jurisdiction where, but for the requirements of this clause (iv), it would
not be obligated to be so qualified, to subject itself to taxation in any such
jurisdiction, or to consent to general service of process in any such
jurisdiction;

 

6

 

 

(v)           use
its best efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental
agencies or authorities as may be necessary to enable the seller or sellers
thereof to consummate the disposition of such Registrable Securities;

(vi)          notify
each seller of any such Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act within the appropriate period mentioned in
clause (ii) of this Section 5, of the Company’s becoming aware that the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and at the request
of any such seller, prepare and furnish to such seller a reasonable number of
copies of an amended or supplemental prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing;

(vii)         otherwise
use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable (but not more than eighteen months) after the effective date of the
registration statement, an earnings statement which shall satisfy the
provisions of Section 11(a) of the Securities Act and the rules and regulations
promulgated thereunder;

(viii)        use
its best efforts to list such Registrable Securities on any securities exchange
on which the Common Stock is then listed, if such Registrable Securities are
not already so listed and if such listing is then permitted under the rules of
such exchange, and to provide a transfer agent and registrar for such
Registrable Securities covered by such registration statement not later than
the effective date of such registration statement;

(ix)           enter
into such customary agreements (including an underwriting agreement in
customary form) and take such other actions as sellers of a majority of shares
of such Registrable Securities or the underwriters, if any, reasonably request
in order to expedite or facilitate the disposition of such Registrable
Securities;

(x)            obtain
a “cold comfort” letter or letters from the Company’s independent public
accountants in customary form and covering matters of the type customarily
covered by “cold comfort” letters as the seller or sellers of a majority of
shares of such Registrable Securities shall reasonably request (provided that Registrable
Securities constitute at least 257 of the securities covered by such
registration statement); and.

 

 

 

7

 

(xi)           make
available for inspection by any seller of such Registrable Securities covered
by such registration statement, by any underwriter participating in any
disposition to be effected pursuant to such registration statement and by any
attorney, accountant or other agent retained by any such seller or any such
underwriter, all pertinent financial and other records, pertinent corporate
documents and properties of the Company, and cause all of the Company’s
officers, directors and employees to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with such registration statement.

The Company may require each
seller of Registrable Securities as to which any registration is being effected
to furnish the Company with such information regarding such seller and
pertinent to the disclosure requirements relating to the registration and the
distribution of such securities as the Company may from time to time reasonably
request in writing.

Each Holder of Registrable
Securities agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in clause (vi) of this Section 5,
such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to the registration statement covering such Registrable Securities
until such Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by clause (vi) of this Section 5, and, if so directed
by the Company, such Holder will deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities current at
the time of receipt of such notice. In the event the Company shall give any
such notice, the period mentioned in clause (ii) of this Section 5 shall be
extended by the number of days during the period from and including the date of
the giving of such notice pursuant to clause (vi) of this Section 5 and
including the date when each seller of Registrable Securities covered by such
registration statement shall have received the copies of the supplemented or
amended prospectus contemplated by clause (vi) of this Section 5.

6.             Indemnification.

(a)           Indemnification
by the Company. In the event of any registration of
any securities of the Company under the Securities Act pursuant to Section 3 or
4, the Company will, and it hereby does, indemnify and hold harmless, to the
extent permitted by law, the seller of any Registrable Securities covered by
such registration statement, each affiliate of such seller and their respective
directors and officers or general and limited partners (and the directors,
officers, affiliates and controlling Persons thereof), each other Person who
participates as an underwriter in the offering or sale of such securities and
each other Person, if any, who controls such seller or any such underwriter
within the meaning of the Securities Act (collectively, the “Indemnified
Parties”), against any and all losses, claims, damages or liabilities, joint or
several, and expenses to which such seller, any such director or officer or
general or limited partner or affiliate or any such underwriter or controlling Person
may become subject under the Securities Act, common law or otherwise, insofar
as such losses, claims, damages or liabilities (or 

 

 

8

 

actions or proceedings in respect
thereof, whether or not such Indemnified Party is a party thereto) arise out of
or are based upon (a) any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which such
securities were registered under the Securities Act, any preliminary, final or
summary prospectus contained therein, or any amendment or supplement thereto,
or (b) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and the Company
will reimburse such Indemnified Party for any legal or any other expenses
reasonably incurred by it in connection with investigating or defending any
such loss, claim, liability, action or proceeding; provided, that the Company shall not be liable to any
Indemnified Party in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement or
amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information
furnished to the Company through an instrument duly executed by such seller specifically stating that it
is for use in the preparation thereof; and provided,
further, that the Company will not be liable to any Person
who participates as an underwriter in the offering or sale of Registrable Securities
or any other Person, if any, who controls such underwriter within the meaning
of the Securities Act, under the indemnity agreement in this Section 6(a) with
respect to any preliminary prospectus or the final prospectus or the final
prospectus as amended or supplemented, as the case may be, to the extent that
any such loss, claim, damage or liability of such underwriter or controlling
Person results from the fact that such underwriter sold Registrable Securities
to a person to whom there was not sent or given, at or prior to the written
confirmation of such sale, a copy of the final prospectus (including any
documents incorporated by reference therein) or of the final prospectus as then
amended or supplemented (including any documents incorporated by reference
therein), whichever is most recent, if the Company has previously furnished
copies thereof to such underwriter. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such seller
or any indemnified Party and shall survive the transfer of such securities by
such seller.

(b)           Indemnification
by the Sellers. The Company may require, as a
condition to including any Registrable Securities in any registration statement
filed in accordance with Section 5 herein, that the Company shall have received
an undertaking reasonably satisfactory to it from the prospective seller of
such Registrable Securities or any underwriter to indemnify and hold harmless
(in the same manner and to the same extent as set forth in subdivision (a) of
this Section 6) the Company and all other prospective sellers with respect to
any statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary, final or summary prospectus contained
therein, or any amendment or supplement, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity
with written information furnished to the Company through an instrument duly
executed by such seller or underwriter specifically stating that it is for use
in the preparation of such registration statement, preliminary, final or
summary prospectus or amendment or supplement, or a document incorporated by
reference into any of the 

 

9

 

foregoing. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Company or any of the prospective sellers, or any of their
respective affiliates, directors,
officers or controlling Persons and shall survive the transfer of such
securities by such seller.

(c)           Notices of Claims, Etc.
Promptly after receipt by an indemnified party hereunder of written notice of
the commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 6, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to the latter of the commencement of such action; provided, that the failure of the
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under the preceding subdivisions of this
Section 6, except to the extent that the indemnifying party is actually
prejudiced by such failure to give notice. In case any such action is brought
against an indemnified party, unless in such indemnified party’s reasonable
judgment a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such claim, the indemnifying party will be entitled
to participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party will consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term
thereof, the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect to such claim or litigation.

(d)           Other Indemnification.
Indemnification similar to that specified in the preceding subdivisions of this
Section 6 (with appropriate modifications) shall be given by the Company and
each seller of Registrable Securities with respect to any required registration
or other qualification of securities under any federal or state law or
regulation or governmental authority other than the Securities Act.

(e)           Non-Exclusivity. The obligations
of the parties under this Section 6 shall be in addition to any liability which
any party may otherwise have to any other party.

7.             Rule
144. If the Company shall have filed a registration statement pursuant to
the requirements of Section 12 of the Exchange Act or a registration statement
pursuant to the requirements of the Securities Act, the Company covenants that
it will file the reports required to be filed by it under the Securities Act
and the Exchange Act and the rules and regulations adopted by the SEC
thereunder (or, if the Company is not required to file such reports, it will,
upon the request of any Holder of Registrable Securities, make publicly
available such information), and it will take such further action as any Holder
of Registrable Securities may reasonably request, all to the extent required
from time to time to enable such Holder to sell shares of Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by 

 

10

 

 

(i)
Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon
the request of any Holder of Registrable Securities, the Company will deliver
to such Holder a written statement as to whether it has complied with such
requirements. Notwithstanding anything contained in this Section 7, the Company
may deregister under Section 12 of the Exchange Act if it then is permitted to
do so pursuant to the Exchange Act and the rules and regulations thereunder.

8.             Miscellaneous.

(a)           Holdback
Agreement. If any such registration shall be in connection with
an underwritten public offering, each Holder of Registrable Securities agrees
not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any
equity securities of the Company, or of any security convertible into or
exchangeable or exercisable for any equity security of the Company (in each
case, other than as part of such underwritten public offering), within 7 days
before or 90 days (or such lesser period as the managing underwriters may
permit) after the effective date of such registration, and the Company hereby
also so agrees and agrees to cause each other Holder of any equity security, or
of any security convertible into or exchangeable or exercisable for any equity
security, of the Company purchased from the Company (at any time other than in
a public offering) to so agree.

(b)           Amendments
and Waivers. This Agreement may be amended and the Company may
take any action herein prohibited, or omit to perform any act herein required
to be performed by it, only if the
Company shall have obtained the written consent to such amendment, action or
omission to act, of the Holders of a majority of the Registrable. Securities
then outstanding. Each Holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by any consent authorized by this Section
9(b), whether or not such Registrable Securities shall have been marked to
indicate such consent.

(c)           Successors, Assigns and
Transferees. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns. In
addition, and whether or not any express assignment shall have been made, the
provisions of this Agreement which are for the benefit of the parties hereto
other than the Company shall also be for the benefit of and enforceable by any
subsequent Holder of any Registrable Securities, subject to the provisions
contained herein.

(d)           Notices. All notices and other
communications provided for hereunder shall be in writing and shall be sent by
first class mail, telex, telecopier or hand delivery:

	
  (i)

  	
   

  	
  if to
  the Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OII Holdings Corporation

  
	
   

  	
   

  	
  c/o Kohlberg Kravis Roberts & Co.

  

 

11

 

	
   

  	
   

  	
  101 California Street

  
	
   

  	
   

  	
  San Francisco, California 94111

  
	
   

  	
   

  	
  Attention: Robert I. MacDonnell

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OII Holdings Corporation

  
	
   

  	
   

  	
  One Seagate

  
	
   

  	
   

  	
  Toledo, Ohio 43604

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  if to
  any of the partnerships, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KKR Partners II, L.P.,

  
	
   

  	
   

  	
  OII Associates, L.P., or

  
	
   

  	
   

  	
  OII Associates II, L.P.,

  
	
   

  	
   

  	
  as the case may be,

  
	
   

  	
   

  	
  c/o Kohlberg Kravis Roberts & Co.

  
	
   

  	
   

  	
  9 West 57th Street

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attention: James H. Greene, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Latham & Watkins

  
	
   

  	
   

  	
  885 Third Avenue

  
	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
  Attention: Randall C. Bassett, Esq.

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  if to
  any other holder of Registrable Securities, to the address of such other
  holder as shown in the stock record book of the Company, or to such other address as any of the above
  shall have designated in writing to all of the other above.

  

 

All such notices and communications shall be deemed to
have been given or made (1) when delivered by hand, (2) five business days
after being deposited in the mail, postage prepaid, (3) when telexed
answer-back received or (4) when telecopied, receipt acknowledged.

(e)           Descriptive
Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms
contained herein.

(f)            Severability. In the
event that any one or more of the provisions, paragraphs, words, clauses,
phrases or sentences contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision,
paragraph,

 

 

12

 

word, clause, phrase or sentence in
every other respect and of the remaining provisions, paragraphs, words,
clauses, phrases or sentences hereof shall not be in any way impaired, it being
intended that all rights, powers and privileges of the parties hereto shall be
enforceable to the fullest extent permitted
by law.

(g)           Counterparts. This Agreement
may he executed in two or more counterparts, and by different parties on
separate counterparts, each of which shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument, and it
shall not be necessary in making proof of this Agreement to produce or account
for more than one such counterpart.

(h)           Governing Law. This Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of New York applicable to contracts made and to be performed therein.
The parties to this Agreement hereby agree to submit to the jurisdiction-of
the courts of the State of New York in any action or proceeding arising out of
or relating to this Agreement.

[signature page to
follow]

 

 

13

 

IN WITNESS WHEREOF, each of the undersigned has
executed this Agreement or caused this Agreement to be executed on its behalf
as of the date first written above.

	
   

  	
  OII HOLDINGS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: /s/ James H.
  Greene

  
	
   

  	
   

  
	
   

  	
  KKR PARTNERS II, L.P.

  
	
   

  	
  By: KKR Associates,

  
	
   

  	
        the
  General Partner

  
	
   

  	
   

  
	
   

  	
  By: /s/ Signature

  
	
   

  	
   

  
	
   

  	
  OII ASSOCIATES, L.P.

  
	
   

  	
  By: KKR Associates,

  
	
   

  	
        the
  General Partner

  
	
   

  	
   

  
	
   

  	
  By: /s/ Signature

  
	
   

  	
   

  
	
   

  	
  OII ASSOCIATES II, L.P.

  
	
   

  	
  By: KKR Associates,

  
	
   

  	
        the
  General Partner

  
	
   

  	
   

  
	
   

  	
  By: /s/ Signature

  
	
   

  	
   

  

 

 

14

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