Document:

Exhibit 4.2(b)

 

Schedule identifying omitted documents and
setting forth the differences

between the omitted documents and Exhibit 4.2(a) to this Report on Form 8-K

 

This schedule
identifies certain documents omitted from this Report on Form 8-K (the “Omitted
Documents”) and the differences between the Omitted Documents and Exhibit
4.2(a) to this Report on Form 8-K (“Exhibit 4.2(a)”).

 

For purposes
of this Exhibit 4.2(b), the following terms are referred to herein as the “Variable
Terms”.

 

	
  Issuing Entity (the “Trust”):

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Execution Party: The Trust, by Wilmington Trust

  	
   

  	
  CD Rate o

  
	
  Company, not in its individual capacity but solely as

  	
   

  	
  Commercial Paper Rate o

  
	
  Delaware Trustee

  	
   

  	
  Federal Funds (Effective) Rate o

  
	
  Date of Note:

  	
   

  	
  Federal Funds (Open) Rate o

  
	
  Cusip No.:

  	
   

  	
  LIBOR o

  
	
  Principal Amount: $                          

  	
   

  	
   

  	
  o LIBOR Reuters Page:

  
	
  Original Issue Date:

  	
   

  	
   

  	
  o LIBOR Telerate Page:

  
	
  Price to Public:

  	
   

  	
   

  	
  Designated LIBOR

  
	
  Stated Maturity Date:

  	
   

  	
   

  	
  Currency:

  
	
  Settlement Date and Time:

  	
   

  	
  EURIBOR o

  
	
  Securities
  Exchange Listing: o Yes o No. If yes,

  indicate name(s) of Securities Exchange(s)

  	
   

  	
  Treasury Rate (other than Constant

  Maturity Treasury Rate)
  o

  
	
                                                                    .

  	
   

  	
  Constant Maturity Treasury Rate o

  
	
  Depositary:

  	
   

  	
   

  	
  Designated CMT Telerate

  
	
  Authorized Denominations (if other than $1,000):

  	
   

  	
   

  	
  Page:

  
	
  Collateral held in the Trust: Protective Life Insurance

  Company Funding Agreement No.      , all proceeds,

  rights and books and records related thereto.

  	
   

  	
   

  	
  If Telerate Page 7052:

  o Weekly Average
o Monthly Average

  
	
  Interest Rate or Formula:

  	
   

  	
   

  	
  Designated CMT Maturity

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

  	
   

  	
   

  	
  Index:

  
	
  Interest Rate:

  	
   

  	
  Prime Rate o

  
	
  Interest Payment Frequency:

  	
   

  	
  Inverse Floating Rate Note o

  
	
  o Monthly o Quarterly

  	
   

  	
  Fixed Interest Rate:

  
	
  o Semi-annually o Annually

  	
   

  	
  Floating Rate/Fixed Rate o

  
	
  Interest
  Payment Dates, if other than as

  specified on the reverse hereof:

  	
   

  	
  Fixed
  Interest Rate:

  Fixed Rate Commencement Date:

  
	
  Additional/Other Terms:

  	
   

  	
  Index Maturity:

  
	
  Amortizing Note: o Yes o No. If yes,

  	
   

  	
  Spread and/or Spread
  Multiplier, if any:

  
	
  Amortization schedule or formula:

  	
   

  	
  Initial Interest Rate, if
  any:

  
	
  Additional/Other Terms:

  	
   

  	
  Initial Interest Reset
  Date:

  
	
  Discount Note: o Yes o No. If yes,

  	
   

  	
  Interest Reset Dates:

  
	
  Registered Face Amount:

  	
   

  	
  Rate Determination Date(s):

  
	
  Total Amount of Discount:

  	
   

  	
  Interest Payment Frequency:

  
	
  Yield to Maturity:

  	
   

  	
  o Monthly

  	
  o Quarterly

  
	
  Additional/Other Terms:

  	
   

  	
  o Semi-Annually

  	
  o Annually

  
	
  Redemption Provisions: o Yes o No. (If yes, the 

  	
   

  	
   

  
					

 

 

	
  Trust will redeem the Note
  on the date and to the extent that the Funding Agreement (as defined in the
  Indenture) has been redeemed by Protective Life Insurance Company
  (“Protective Life”). Protective Life has the right to redeem the Funding
  Agreement, in full or in part, on                       
  (such date, the “Initial Redemption Date”) or on any other Interest Payment
  Date thereafter).

  	
   

  	
  Maximum
  Interest Rate, if any:

  Minimum Interest Rate, if any:

  Additional/Other Terms:

  Regular Record Date(s):

  Sinking Fund:

  Day Count Convention:

  
	
  Initial Redemption Percentage:

  	
   

  	
  o 30 over 360 

  	
  o Actual over Actual

  
	
  Annual Redemption Percentage Reduction,if any:

  	
   

  	
  o Actual over 360 

  	
  o Other (See attached)

  
	
  Additional/Other Terms:

  	
   

  	
  Specified Currency: U.S.
  Dollars

  
	
  Repayment Provisions: o Yes o No. (If yes, the

  	
   

  	
  Calculation Agent:

  
	
  Holder of this Note has the
  right to repayment of this Note on any

  	
   

  	
  Additional/Other Terms:

  
	
  Interest Payment Date after                         ).

  	
   

  	
   

  
	
  Additional/Other Terms:

  	
   

  	
   

  
	
  Survivor’s Option: o Yes o No. (If yes, the attached Survivor’s Option
  is incorporated into this Note).

  	
   

  	
   

  
	
  Trust Put Limitation:                               

  	
   

  	
   

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

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
   

  

 

1.
Omitted Document 1: 
5.55% Callable InterNotes® due March 15, 2014 of Protective Life Secured
Trust 2006-3

 

Differences:

 

The Variable
Terms of the notes represented by Omitted Document 1 (the “Notes”) differ from
the terms set forth in Exhibit 4.2(a) as and to the extent the terms set forth
in the Pricing Supplement filed by Protective Life Insurance Company with the
Securities and Exchange Commission pursuant to Rule 424(b) of the rules and
regulations of the SEC under the Securities Act of 1933, as amended, with
respect to the Notes, differ from the analogous terms set forth in Exhibit
4.2(a).

 

2.
Omitted Document 2: 
5.55% Callable InterNotes® due March 15, 2015 of Protective Life Secured
Trust 2006-4

 

Differences:

 

The Variable
Terms of the notes represented by Omitted Document 2 (the “Notes”) differ from
the terms set forth in Exhibit 4.2(a) as and to the extent the terms set forth
in the Pricing Supplement filed by Protective Life Insurance Company with the
Securities and Exchange Commission pursuant to Rule 424(b) of the rules and
regulations of the SEC under the Securities Act of 1933, as amended, with
respect to the Notes, differ from the analogous terms set forth in Exhibit
4.2(a).

 

 

3.
Omitted Document 3: 
5.5% Callable InterNotes® due March 15, 2012 of Protective Life Secured
Trust 2006-5

 

Differences:

 

The Variable
Terms of the notes represented by Omitted Document 3 (the “Notes”) differ from
the terms set forth in Exhibit 4.2(a) as and to the extent the terms set forth
in the Pricing Supplement filed by Protective Life Insurance Company with the
Securities and Exchange Commission pursuant to Rule 424(b) of the rules and
regulations of the SEC under the Securities Act of 1933, as amended, with
respect to the Notes, differ from the analogous terms set forth in Exhibit
4.2(a).

 

4.
Omitted Document 4: 
5.75% Callable InterNotes® due April 15, 2016 of Protective Life Secured
Trust 2006-6

 

Differences:

 

The Variable
Terms of the notes represented by Omitted Document 4 (the “Notes”) differ from
the terms set forth in Exhibit 4.2(a) as and to the extent the terms set forth
in the Pricing Supplement filed by Protective Life Insurance Company with the
Securities and Exchange Commission pursuant to Rule 424(b) of the rules and
regulations of the SEC under the Securities Act of 1933, as amended, with
respect to the Notes, differ from the analogous terms set forth in Exhibit
4.2(a).Exhibit 4.4(a)

 

FUNDING AGREEMENT

 

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

 

Protective Life Secured Trust 2006-2

(the “Owner”)

 

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

 

Section I:                      Definitions

 

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

 

Section III:              Contract Type

 

	
  ý
  Section III-A: Fixed Rate Contract Terms

  	
   

  	
  o
  Section III-B: Floating Rate Contract Terms

  
	
  o
  Section III-C: Amortizing Contract Terms

  	
   

  	
  o
  Section III-D: Discount Contract Terms

  

 

Section IV:              General Provisions

 

	
  Riders:

  	
  ý
  Rider A: Survivor’s Option

  	
   

  	
  ý
  Rider B: Redemption Provisions

  
	
   

  	
  o
  Rider C: Repayment Options

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Contract Number: GA 6078

  	
   

  	
  Effective Date: February 16, 2006

  
	
   

  	
   

  	
   

  
	
  Related Series of Notes: 2006-2

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Protective Life Secured

  Trust specified above

  c/o Wilmington Trust Company 

  Rodney Square North 

  1100 North Market Street 

  Wilmington, Delaware 19890-0001

  By: Wilmington Trust
  Company, not in its

  individual capacity but solely as Trustee

  	
   

  	
  Protective Life Insurance Company

  P.O. Box 2606

  Birmingham, Alabama 35202

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jennifer A. Luce

  	
   

  	
   

  	
  By:

  	
  /s/ Judy Wilson

  	
   

  
	
   

  	
  Title: Financial Services Officer

  	
   

  	
   

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Erwin Soriano

  	
   

  	
   

  	
  Attest:

  	
  /s/ April Stotts-Molina

  	
   

  
										

 

THIS IS A LEGAL CONTRACT

READ YOUR CONTRACT CAREFULLY

 

Page 1

 

SECTION  I

 

Definitions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Page I-1

 

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

 

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

 

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

 

“Trust Beneficial
Owner” means AMACAR Pacific Corp.

 

Capitalized terms
not otherwise defined herein shall have the meanings set forth in the Indenture
or the Notes, and such terms are hereby incorporated by reference and shall form a
part of this Contract as if such terms were set forth in their entirety
herein.

 

Page I-2

 

SECTION  II

 

Deposit,
Establishment of Funding Account & Specified Currency

 

A.            Deposit:   On the Effective Date, the amount of $28,500,015.00
denominated in United States dollars will be deposited under this Contract (the
“Deposit”). The Deposit is equal to the sum of (i) the net proceeds of the
sale of the Notes (ii) the proceeds from the sale of the related Trust
Beneficial Interest to the Trust Beneficial Owner and (iii) other amounts
contributed by Protective as reimbursement of the Owner’s selling expenses.

 

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

 

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

 

	
  Bank:

  	
   

  	
  Bank of New York

  
	
   

  	
   

  	
  New York, New York

  
	
  ABA:

  	
   

  	
  021000018

  
	
  Account Number:

  	
   

  	
  0000294412

  
	
  Account Name:

  	
   

  	
  Protective Life Insurance Company

  
	
   

  	
   

  	
  2801 Highway 280 South

  Birmingham, AL 35223

  
	
  Credit To:

  	
   

  	
  GA 6078

  

 

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

 

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

 

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

 

Page II-1

 

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

 

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

 

Page II-2

 

SECTION  III-A

 

Fixed Rate
Contract Terms

 

A.            Interest
Rate:  The interest rate payable
under this Contract is 5.40% per annum.

 

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

 

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

 

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

 

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

 

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

 

G.            Sinking
Fund:  None

 

H.            Additional/Other
Terms: None

 

Page III-A-1

 

SECTION  IV

 

General Provisions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Page IV-1

 

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

 

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

 

H.            Agreed Tax Treatment:  Protective and the Owner (and each transferee
or assignee) agree for U.S. federal, state and local income and franchise tax
purposes to treat (i) the Owner as disregarded and (ii) the Notes as
representing debt of Protective Life.

 

I.                 Withholding
Tax Treatment and Early Termination:

 

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

 

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

 

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

 

Page IV-2

 

	
  If to the Owner:

  	
   

  	
  If to Protective:

  
	
   

  	
   

  	
   

  
	
  The Protective Life Secured Trust

  specified in this Contract

  	
   

  	
  Protective Life Insurance Company

  111 North First Street, Suite 209

  
	
  c/o Wilmington Trust Company

  	
   

  	
  Burbank, CA 91502-1864

  
	
  Rodney Square North

  	
   

  	
  Telephone: 818/729-1900

  
	
  1100 North Market Street

  	
   

  	
  Facsimile: 818/729-1800

  
	
  Wilmington, Delaware 19890-0001

  	
   

  	
   

  
	
  Attention: Corporate Trust Department

  	
   

  	
   

  
	
  Telephone: 302/636-6000

  	
   

  	
   

  
	
  Facsimile: 302/636-4140

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  And to:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  AMACAR Pacific Corp.

  	
   

  	
  Protective Life Insurance Company

  
	
  6525 Morrison Boulevard

  	
   

  	
  Attn: Legal Department

  
	
  Suite 318

  	
   

  	
  P.O. Box 2606

  
	
  Charlotte, North Carolina 28211

  	
   

  	
  Birmingham, AL 35202

  
	
  Attention: Douglas K. Johnson

  	
   

  	
  Telephone: 800/627-0220

  
	
   

  	
   

  	
  Facsimile: 205/268-3597

  

 

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

 

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

 

	
  Bank:

  	
   

  	
  The Bank of New
  York

  
	
  ABA:

  	
   

  	
  021-000-018

  
	
  Credit To:

  	
   

  	
  GLA 111-565

  
	
  TAS Account:

  	
   

  	
  294959

  
	
  Attn:

  	
   

  	
  Joseph Lloret

  
	
  Re:

  	
   

  	
  Protective Life
  Secured Trust 2006-2

  

 

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

 

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

 

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

 

Page IV-3

 

SCHEDULE A

 

Additional Events of Default

 

Not applicable

 

Page IV-4

 

RIDER A

 

Survivor’s Option

 

Unless this Contract has
been declared due and payable prior to its Stated Maturity Date by reason of
any Event of Default, or has been previously redeemed or otherwise repaid, the
Owner may request repayment of this Contract upon the valid exercise of
the Survivor’s Option in the Notes by the Representative (defined in the Notes)
of the deceased beneficial owner of such Notes (a “Survivor’s Option”).

 

Except as provided below,
upon the tender and acceptance by Protective of this Contract (or portion
thereof) securing the Notes as to which the Survivor’s Option has been
exercised, Protective shall repay to the Owner the amount of the Funding
Account equal to 100% of the principal amount of the Notes as to which the
Survivor’s Option has been exercised, plus accrued and unpaid interest to the
date of repayment. However, Protective shall not be obligated to repay:

 

•                  the
greater of $2,000,000 or 2%  (or such
other amounts, as specified in the Pricing Supplement) in aggregate principal
amount for all funding agreement contracts securing all outstanding notes
issued to retail investors under any Protective Life secured notes program as
of the end of the most recent calendar year (the “Annual Put Limitation”);

 

•                  more
than $250,000 (or such other amounts, as specified in the Pricing Supplement)
in aggregate principal amount of funding agreement contracts securing
outstanding notes issued under any Protective Life secured notes program as to
which the Survivor’s Option has been exercised on behalf of any individual
deceased Beneficial Owner in any calendar year (the “Individual Put Limitation”);
or

 

•                  more
than the aggregate principal amount of funding agreement contracts securing
Outstanding Notes of the Related Series of Notes specified in the Pricing
Supplement (the “Series Put Limitation”).

 

Protective shall not make
repayments pursuant to the Owner’s request for repayment upon exercise of the
Survivor’s Option in amounts that are less than the minimum authorized
denomination of the Notes, and, in the event that the limitations described in
the preceding sentence would result in the partial repayment of this Contract,
the principal amount of this Contract remaining outstanding after repayment
must be at least the minimum authorized denomination of the Notes. A request
for repayment by the Owner upon an otherwise valid election to exercise the
Survivor’s Option may not be withdrawn.

 

Any Contract (or portion
thereof) accepted for repayment shall be repaid on the first Interest Payment
Date for the related Series of Notes that occurs 20 or more calendar days
after the date of such acceptance.

 

In order to obtain
repayment of this Contract (or portion thereof) upon exercise of the Survivor’s
Option, the Owner must provide to Protective (i) a written request for
repayment signed by the Owner, and (ii) any additional information
Protective requires to evidence satisfaction of any conditions to the repayment
of this Contract (or portion thereof).

 

Page A-1

 

RIDER B

 

Redemption Provisions

 

1.              Initial Redemption
Date: Shall be as set forth in the Notes.

 

2                 Initial
Redemption Percentage: Shall be as set forth in the Notes.

 

3.              Annual Redemption
Percentage Reduction: Shall be as set forth in the Notes.

 

4.              Additional Redemption
Terms:

 

Protective may redeem
this Contract, in full or in part, on any date after the Initial Redemption
Date and prior to the Stated Maturity Date, in increments of $1,000 or any
other integral multiple of an authorized denomination specified in the Notes
(provided that any remaining Deposit hereof shall be at least $1,000 or other
minimum authorized denomination applicable to the Notes), at the applicable
Redemption Price (as hereinafter defined), together with unpaid interest
accrued hereon to the redemption date. Protective must give written notice to
the Owner not more than 75 nor less than 35 calendar days prior to the
redemption date. “Redemption Price” shall mean an amount equal to the Initial
Redemption Percentage  (as adjusted by
the Annual Redemption Percentage Reduction, if applicable) multiplied by the
unpaid Principal Amount (defined below) of this Contract to be redeemed. The
Initial Redemption Percentage, if any, shall decline at each anniversary of the
Initial Redemption Date by an amount equal to the applicable Annual Redemption
Percentage Reduction, if any, until the Redemption Price is equal to 100% of
the unpaid amount thereof to be redeemed. For purposes of this Rider B, the “Principal
Amount” of this Contract at any time means (i) if this Contract is a
Discount Contract, the Issue Price (increased by any accruals of discount) and (ii) in
all other cases, the Deposit hereof.

 

Page B-1

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