Document:

<PAGE>

                                                                   EXHIBIT 10.12

                            UNUMPROVIDENT CORPORATION
                               STOCK PLAN OF 1999

                        (as approved by Committee 2/8/01)

                                    ARTICLE I

                                     Purpose

      1.1 General. The purpose of the UnumProvident Stock Plan of 1999 (the
"Plan") is to promote the success, and enhance the value, of UnumProvident
Corporation (the "Corporation"), by linking the personal interests of its
employees, officers, producers and directors to those of Corporation
stockholders and by providing such persons with an incentive for outstanding
performance. The Plan is further intended to provide flexibility to the
Corporation in its ability to motivate, attract, and retain the services of
employees, officers, producers and directors upon whose judgment, interest, and
special effort the successful conduct of the Corporation's operation is largely
dependent. Accordingly, the Plan permits the grant of incentive awards from time
to time to selected employees, officers, producers and directors.

                                    ARTICLE 2

                                 Effective Date

      2.1 Effective Date. The Plan was effective as of January 1, 1999, and has
most recently been amended by the Board on February 8, 2001.

                                    ARTICLE 3

                                   Definitions

      3.1 Definitions. When a word or phrase appears in this Plan with the
initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase shall generally be given the meaning ascribed to it in this
Section or in Section 1.1 unless a clearly different meaning is required by the
context. The following words and phrases shall have the following meanings:

            (a) "Award" means any Option, Stock Appreciation Right, Restricted
      Stock Award, or Dividend Equivalent Award, or any other right or interest
      relating to Stock or cash, granted to a Participant under the Plan.

            (b) "Award Agreement" means any written agreement, contract, or
      other instrument or document evidencing an Award.

            (c) "Board" means the Board of Directors of the Corporation.

            (d) "Change in Control" means and includes the occurrence of any of
      the following events:

            "Change in Control" means and includes any of the following events:
<PAGE>

            (i) during any period of two consecutive years, individuals who, at
            the beginning or such period, constitute the Board (the "Incumbent
            Directors") cease for any reason to constitute at least a majority
            of the Board, provided that any person becoming a director and whose
            election or nomination for election was approved by a vote of at
            least two-thirds of the Incumbent Directors then on the Board
            (either by a specific vote or by approval of the proxy statement of
            the Company in which such person is named as a nominee for director,
            without written objection to such nomination) shall be an Incumbent
            Director; provided, however, that no individual initially elected or
                      -----------------
            nominated as a director of the Company as a result of an actual or
            threatened election contest (as described in Rule 14a-11 under the
            Act) ("Election Contest") or other actual or threatened solicitation
            of proxies or consents by or on behalf of any "person" (as such term
            is defined in Section 3(a)(9) of the Act and as used in Sections
            13(d)(3) and 14(d)(2) of the Act) other than the Board ("Proxy
            Contest"), including by reason of any agreement intended to avoid or
            settle any Election or Contest or Proxy Contest, shall be deemed an
            Incumbent Director;

            (ii) any person is or becomes a "beneficial owner" (as defined in
            Rule 13d-3 under the Act), directly or indirectly, of securities of
            the Company representing 20% or more of the combined voting power of
            the Company's then outstanding securities eligible to vote for the
            election of the Board (the "Company Voting Securities"); provided,
                                                                     ---------
            however, that the event described in this paragraph (ii) shall not
            -------
            be deemed to be a Change in Control of the Company by virtue of any
            of the following acquisitions: (A) by the Company of any subsidiary,
            (B) by any employee benefit plan (or related trust) sponsored or
            maintained by the Company or any subsidiary, (C) by an underwriter
            temporarily holding securities pursuant to an offering of such
            securities, (D) pursuant to a Non-Qualifying Transaction (as defined
            in paragraph (iii), or (E) a transaction (other than one described
            in (iii) below) in which Company Voting Securities are acquired from
            the Company, if a majority of the Incumbent Directors approve a
            resolution providing expressly that the acquisition pursuant to this
            clause (E) does not constitute a Change in Control of the Company
            under this paragraph (ii);

            (iii) the consummation of a merger, consolidation, statutory share
            exchange or similar form of corporate transaction involving the
            Company or any of its subsidiaries that requires the approval of the
            Company's stockholders, whether for such transaction or the issuance
            of securities in the transaction (a "Reorganization"), or sale or
            other disposition of all or substantially all of the Company's
            assets to an entity that is not an affiliate of the Company (a
            "Sale"), unless immediately following such Reorganization or Sale:
            (A) more than 50% of the total voting power of (x) the corporation
            resulting from such Reorganization or the corporation which has
            acquired all or substantially all of the assets of the Company (in
            either case, the "Surviving Corporation"), or (y) if applicable, the
            ultimate parent corporation that directly or indirectly has
            beneficial ownership of 100% of the voting securities eligible to
            elect directors of the Surviving Corporation (the "Parent
            Corporation"), is represented by the Company Voting Securities that
            were outstanding immediately prior to such Reorganization or Sale
            (or, if applicable, is represented by shares into which such Company
            Voting Securities were converted pursuant to such Reorganization or
            Sale), and such voting power among the holders thereof is in
            substantially the same proportion as the voting power of such
            Company Voting Securities among the holders thereof immediately
            prior to the Reorganization or Sale, (B) no person (other than any
            employee benefit plan (or related trust) sponsored or maintained by
            the Surviving Corporation or the Parent Corporation) is or becomes
            the beneficial owner, directly or indirectly, of 20% or more of the
            total voting power of the outstanding voting securities eligible to
            elect directors of the Parent Corporation (or, if there is no Parent
            Corporation, the Surviving Corporation) and (C) at least a majority
            of the members of the board of directors of the Parent Corporation
            (or, if there is no
<PAGE>

            Parent Corporation, the Surviving Corporation) following the
            consummation of the Reorganization or Sale were Incumbent Directors
            at the time of the Board's approval of the execution of the initial
            agreement providing for such Reorganization or Sale (any
            Reorganization or Sale which satisfies all of the criteria specified
            in (A), (B) and (C) above shall be deemed to be a "Non-Qualifying
            Transaction"); or

            (iv) the stockholders of the Company approve a plan of complete
            liquidation or dissolution of the Company.

            Notwithstanding the foregoing, a Change in Control of the Company
            shall not be deemed to occur solely because any person acquires
            beneficial ownership of more than 20% of the Company Voting
            Securities as a result of the acquisition of Company Voting
            Securities by the Company which reduces the number of Company Voting
            Securities outstanding; provided, that if after such acquisition by
            the Company such person becomes the beneficial owner of additional
            Company Voting Securities that increases the percentage of
            outstanding Company Voting Securities beneficially owned by such
            person, a Change in Control of the Company shall then occur.

            (e) "Code" means the Internal Revenue Code of 1986, as amended from
      time to time.

            (f) "Committee" means the committee of the Board described in
      Article 4.

            (g) "Corporation" means UnumProvident Corporation , a Delaware
      corporation.

            (h) "Covered Employee" means a covered employee as defined in Code
      Section 162(m)(3).

            (i) "Disability" means any illness or other physical or mental
      condition of a Participant that renders the Participant incapable of
      performing his customary and usual duties for the Corporation, or any
      medically determinable illness or other physical or mental condition
      resulting from a bodily injury, disease or mental disorder which, in the
      judgment of the Committee, is permanent and continuous in nature. The
      Committee may require such medical or other evidence as it deems necessary
      to judge the nature and permanency of the Participant's condition.
      Notwithstanding the above, with respect to an Incentive Stock Option,
      Disability shall mean Permanent and Total Disability as defined in Section
      22(e)(3) of the Code.

            (j) "Dividend Equivalent" means a right granted to a Participant
      under Article 11.

            (k) "Effective Date" has the meaning assigned such term in Section
      2.1.

            (l) "Fair Market Value", on any date, means (i) if the Common Stock
      is listed on a securities exchange or traded over the Nasdaq National
      Market, the average of the high and low market prices reported in The Wall
      Street Journal at which a Share of Common Stock shall have been sold on
      such day or on the next preceding trading day if such date was not a
      trading day, or (ii) if the Common Stock is not listed on a securities
      exchange or traded over the Nasdaq National Market, the mean between the
      bid and offered prices as quoted by Nasdaq for such date, provided that if
      it is determined that the fair market value is not properly reflected by
      such Nasdaq quotations, Fair Market Value will be determined by such other
      method as the Committee determines in good faith to be reasonable.
<PAGE>

            (m) "Incentive Stock Option" means an Option that is intended to
      meet the requirements of Section 422 of the Code or any successor
      provision thereto.

            (n) "Non-Qualified Stock Option" means an Option that is not an
      Incentive Stock Option.

            (o) "Option" means a right granted to a Participant under Article 7
      of the Plan to purchase Stock at a specified price during specified time
      periods. An Option may be either an Incentive Stock Option or a
      Non-Qualified Stock Option.

            (p) "Parent" means a corporation which owns or beneficially owns a
      majority of the outstanding voting stock or voting power of the
      Corporation. Notwithstanding the above, with respect to Incentive Stock
      Options, the term shall have the same meaning as set forth in Section
      424(e) of the Code.

            (q) "Participant" means a person who, as an employee, officer,
      Producer or director of the Corporation or any Parent or Subsidiary, has
      been granted an Award under the Plan.

            (r) "Plan" means the UnumProvident Corporation Stock Plan of 1999,
      as amended from time to time.

            (s) "Producer" means a producer of insurance business for the
      benefit of the Corporation or its subsidiaries. For purposes of this Plan,
      Producers are deemed to be consultants of the Corporation or its Parent or
      Subsidiaries.

            (t) "Restricted Stock Award" means Stock granted to a Participant
      under Article 10 that is subject to certain restrictions and to risk of
      forfeiture.

            (u) "Retirement" means a Participant's voluntary termination of
      employment with the Corporation , Parent or Subsidiary at or after age 65
      or after attaining age 55 with at least 15 years of service with the
      Corporation or a Parent or Subsidiary or with an entity that has been
      acquired by the Corporation or a Parent or Subsidiary, or with the
      approval of the Committee.

            (v) "Stock" means the $.10 par value common stock of the
      Corporation and such other securities of the Corporation as may be
      substituted for Stock pursuant to Article 12.

            (w) "Stock Appreciation Right" or "SAR" means a right granted to a
      Participant under Article 8 to receive a payment equal to the difference
      between the Fair Market Value of a share of Stock as of the date of
      exercise of the SAR over the grant price of the SAR, all as determined
      pursuant to Article 8.

            (x) "Subsidiary" means any corporation, limited liability company,
      partnership or other entity of which a majority of the outstanding voting
      stock or voting power is beneficially owned directly or indirectly by the
      Corporation. Notwithstanding the above, with respect to Incentive Stock
      Options, the term shall have the meaning set forth in Section 424(f) of
      the Code.

            (y) "1933 Act" means the Securities Act of 1933, as amended from
      time to time.

            (z) "1934 Act" means the Securities Exchange Act of 1934, as amended
      from time to time.
<PAGE>

                                    ARTICLE 4

                                 Administration

      4.1 Committee. The Plan shall be administered by a committee (the
"Committee") appointed by the Board (which Committee shall consist of two or
more directors) or, at the discretion of the Board from time to time, the Plan
may be administered by the Board. It is intended that the directors appointed to
serve on the Committee shall be "non-employee directors" (within the meaning of
Rule 16b-3 promulgated under the 1934 Act) and "outside directors" (within the
meaning of Code Section 162(m) and the regulations thereunder) to the extent
that Rule 16b-3 and, if necessary for relief from the limitation under Code
Section 162(m) and such relief is sought by the Corporation, Code Section
162(m), respectively, are applicable. However, the mere fact that a Committee
member shall fail to qualify under either of the foregoing requirements shall
not invalidate any Award made by the Committee which Award is otherwise validly
made under the Plan. The members of the Committee shall be appointed by, and may
be changed at any time and from time to time in the discretion of, the Board.
During any time that the Board is acting as administrator of the Plan, it shall
have all the powers of the Committee hereunder, and any reference herein to the
Committee (other than in this Section 4.1) shall include the Board.

      4.2 Action By The Committee. For purposes of administering the Plan, the
following rules of procedure shall govern the Committee. A majority of the
Committee shall constitute a quorum. The acts of a majority of the members
present at any meeting at which a quorum is present, and acts approved
unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee is
entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Corporation or
any Parent or Subsidiary, the Corporation's independent certified public
accountants, or any executive compensation consultant or other professional
retained by the Corporation to assist in the administration of the Plan.

      4.3 Authority Of Committee. Except as provided below the Committee has the
exclusive power, authority and discretion to:

            (a) Designate Participants;

            (b) Determine the type or types of Awards to be granted to each
      Participant;

            (c) Determine the number of Awards to be granted and the number of
      shares of Stock to which an Award will relate;

            (d) Determine the terms and conditions of any Award granted under
      the Plan, including but not limited to, the exercise price, grant price,
      or purchase price, any restrictions or limitations on the Award, any
      schedule for lapse of forfeiture restrictions or restrictions on the
      exercisability of an Award, and accelerations or waivers thereof, based in
      each case on such considerations as the Committee in its sole discretion
      determines;
<PAGE>

            (e) Accelerate the vesting or lapse of restrictions of any
      outstanding Award, based in each case on such considerations as the
      Committee in its sole discretion determines;

            (f) Determine whether, to what extent, and under what circumstances
      an Award may be settled in, or the exercise price of an Award may be paid
      in, cash, Stock, other Awards, or other property, or an Award may be
      canceled, forfeited, or surrendered;

            (g) Prescribe the form of each Award Agreement, which need not be
      identical for each Participant;

            (h) Decide all other matters that must be determined in connection
      with an Award;

            (i) Establish, adopt or revise any rules and regulations as it may
      deem necessary or advisable to administer the Plan;

            (j) Make all other decisions and determinations that may be required
      under the Plan or as the Committee deems necessary or advisable to
      administer the Plan;

            (k) Amend the Plan or any Award Agreement as provided herein; and

            (l) Adopt such modifications, procedures, and subplans as may be
      necessary or desirable to comply with provisions of the laws of non-U.S.
      jurisdictions in which the Corporation or any Parent or Subsidiary may
      operate, in order to assure the viability of the benefits of Awards
      granted to Participants located in such other jurisdiction and to meet the
      objectives of the Plan.

      Notwithstanding the above, the Board or the Committee may expressly
      delegate to a special committee consisting of one or more directors who
      are also officers of the Corporation some or all of the Committee's
      authority under subsections (a) through (g) above with respect to those
      eligible Participants who, at the time of the grant are not, and are not
      anticipated to become, either (I) Covered Employees or (ii) persons
      subject to the insider trading rules of Section 16 of the 1934 Act.
      Further, the Committee may delegate its general administrative duties
      under the Plan to an officer or employee or committee of officers or
      employees of the Company.

      4.4. Decisions Binding. The Committee's interpretation of the Plan, any
Awards granted under the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties. No member of the Committee shall be liable for any
act done in good faith.

                                    ARTICLE 5

                           Shares Subject To The Plan

      5.1. Number Of Shares. The aggregate number of shares of Stock reserved
and available for Awards or which may be used to provide a basis of measurement
for or to determine the value of an Award (such as with a Stock Appreciation
Right) shall be 7,500,000 of which not more than twenty percent (20% may be
granted as Awards of Restricted Stock or unrestricted Stock Awards, and not more
than ten percent (10%) shares of Stock shall be granted in the form of Incentive
Stock Options.

<PAGE>

      5.2. Lapsed Awards and Shares Withheld or Tendered. To the extent that an
Award is canceled, terminates, expires or lapses for any reason, any shares of
Stock subject to the Award will again be available for the grant of Awards under
the Plan. Shares subject to SARs or other Awards settled in cash will be
available for the grant of an Award under the Plan. Shares of Stock that are
surrendered or withheld from any Award to satisfy a Participant's income tax
withholding obligations, or shares of Stock owned by a Participant that are
tendered to pay the exercise price of Options granted under the Plan will be
available for the grant of Awards under the Plan. Stock delivered by the
Corporation, any shares of stock with respect to which Awards are made by the
Corporation and any shares of Common Stock with respect to which the Corporation
becomes obligated to make Awards, through the assumption of, or in substitution
for, the outstanding awards previously granted by a acquired entity, shall not
be counted against the shares available for Awards under this Plan.

      5.3. Stock Distributed. Any Stock distributed pursuant to an Award may
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

      5.4. Limitation On Awards. Notwithstanding any provision in the Plan to
the contrary, but subject to adjustment as provided in Section 12.4the maximum
number of shares of Stock with respect to one or more Options and/or SARs that
may be granted during any one calendar year under the Plan to any one
Participant shall be 1,000,000. The maximum Fair Market Value (measured as of
the date of grant) of any Awards other than Options and SARs that may be
received by any one Participant (less any consideration paid by the Participant
for such Award) during any one calendar year under the Plan shall be
$10,000,000.

                                    ARTICLE 6

                                   Eligibility

      6.1. General. Awards may be granted only to individuals who are employees,
officers, Producers or directors of the Corporation or a Parent or Subsidiary.

                                    ARTICLE 7

                                  Stock Options

      7.1. General. The Committee is authorized to grant Options to Participants
on the following terms and conditions:

            (a) Exercise Price. The exercise price per share of Stock under an
      Option shall be determined by the Committee, provided that the exercise
      price for any Option shall not be less than the Fair Market Value as of
      the date of the grant.

            (b) Time And Conditions Of Exercise. The Committee shall determine
      the time or times at which an Option may be exercised in whole or in part.
      The Committee also shall determine the performance or other conditions, if
      any, that must be satisfied before all or part of an Option may be
      exercised. The Committee may waive any exercise provisions at any time in
      whole or in part based upon factors as the Committee may determine in its
      sole discretion so that the Option becomes exercisable or vested at an
      earlier date.
<PAGE>

            (c) Payment. The Committee shall determine the methods by which the
      exercise price of an Option may be paid, the form of payment, including,
      without limitation, cash, shares of Stock, or other property (including
      "cashless exercise" arrangements), and the methods by which shares of
      Stock shall be delivered or deemed to be delivered to Participants;
      provided, however, that if shares of Stock are used to pay the exercise
      price of an Option, such shares must have been held by the Participant for
      at least six months. When shares of Stock are delivered , such delivery
      may be by attestation of ownership or actual delivery of one or more
      certificates. Failure by the Committee to specify methods by which the
      exercise price of an Option may be paid or the form of payment shall be
      deemed to express the Committee's determination that all methods and forms
      of payment under the Plan are permitted for that Option.

            (d) Evidence Of Grant. All Options shall be evidenced by a written
      Award Agreement between the Corporation and the Participant. The Award
      Agreement shall include such provisions, not inconsistent with the Plan,
      as may be specified by the Committee.

            (e) Additional Options Upon Exercise. The Committee may, in its sole
      discretion, provide in an Award Agreement, or in an amendment thereto, for
      the automatic grant of a new Option to any Participant who delivers shares
      of Stock as full or partial payment of the exercise price of the original
      Option. Any new Option granted in such a case (i) shall be for the same
      number of shares of Stock as the Participant delivered in exercising the
      original Option, (ii) shall have an exercise price of 100% of the Fair
      Market Value of the surrendered shares of Stock on the date of exercise of
      the original Option (the grant date for the new Option), and (iii) shall
      have a term equal to the unexpired term of the original Option.

            (f) Exercise Term. In no event may an Option be exercisable for more
      than ten years from the date of its grant.

      7.2. Incentive Stock Options. The terms of any Incentive Stock Options
granted under the Plan must comply with the following additional rules:

            (a) Exercise Price. The exercise price per share of Stock shall be
      set by the Committee, provided that the exercise price for any Incentive
      Stock Option shall not be less than the Fair Market Value as of the date
      of the grant.

            (b) Exercise. In no event may any Incentive Stock Option be
      exercisable for more than ten years from the date of its grant.

            (c) Lapse Of Option. An Incentive Stock Option shall lapse under the
      earliest of the following circumstances; provided, however, that the
      Committee may, prior to the lapse of the Incentive Stock Option under the
      circumstances described in paragraphs (3), (4) and (5) below, provide in
      writing that the Option will extend until a later date, but if Option is
      exercised after the dates specified in paragraphs (3), (4) and (5) below,
      it will automatically become a Non-Qualified Stock Option:

                  (1) The Incentive Stock Option shall lapse as of the option
            expiration date set forth in the Award Agreement.

                  (2) The Incentive Stock Option shall lapse ten years after it
            is granted, unless an earlier time is set in the Award Agreement.
<PAGE>

                  (3) If the Participant terminates employment for any reason
            other than as provided in paragraph (4) or (5) below, the Incentive
            Stock Option shall lapse, unless it is previously exercised, three
            months after the Participant's termination of employment; provided,
            however, that if the Participant's employment is terminated by the
            Corporation for cause (as determined by the Corporation ), the
            Incentive Stock Option shall (to the extent not previously
            exercised) lapse immediately.

                  (4) If the Participant terminates employment by reason of his
            Disability, the Incentive Stock Option shall lapse, unless it is
            previously exercised, one year after the Participant's termination
            of employment.

                  (5) If the Participant dies while employed, or during the
            three-month period described in paragraph (3) or during the one-
            year period described in paragraph (4) and before the Option
            otherwise lapses, the Option shall lapse one year after the
            Participant's death. Upon the Participant's death, any exercisable
            Incentive Stock Options may be exercised by the Participant's
            beneficiary, determined in accordance with Section 11.6.

      Unless the exercisability of the Incentive Stock Option is accelerated as
provided in Article 11, if a Participant exercises an Option after termination
of employment, the Option may be exercised only with respect to the shares that
were otherwise vested on the Participant's termination of employment.

            (d) Individual Dollar Limitation. The aggregate Fair Market Value
      (determined as of the time an Award is made) of all shares of Stock with
      respect to which Incentive Stock Options are first exercisable by a
      Participant in any calendar year may not exceed $100,000.00.

            (e) Ten Percent Owners. No Incentive Stock Option shall be granted
      to any individual who, at the date of grant, owns stock possessing more
      than ten percent of the total combined voting power of all classes of
      stock of the Corporation or any Parent or Subsidiary unless the exercise
      price per share of such Option is at least 110% of the Fair Market Value
      per share of Stock at the date of grant and the Option expires no later
      than five years after the date of grant.

            (f) Expiration Of Incentive Stock Options. No Award of an Incentive
      Stock Option may be made pursuant to the Plan after the day immediately
      prior to the tenth anniversary of the Effective Date.

            (g) Right To Exercise. During a Participant's lifetime, an Incentive
      Stock Option may be exercised only by the Participant or, in the case of
      the Participant's Disability, by the Participant's guardian or legal
      representative.

            (h) Directors. The Committee may not grant an Incentive Stock Option
      to a non-employee director. The Committee may grant an Incentive Stock
      Option to a director who is also an employee of the Corporation or Parent
      or Subsidiary but only in that individual's position as an employee and
      not as a director.
<PAGE>

                                    ARTICLE 8

                            Stock Appreciation Rights

      8.1. Grant of SARs. The Committee is authorized to grant SARs to
Participants on the following terms and conditions:

            (a) Right To Payment. Upon the exercise of a Stock Appreciation
      Right, the Participant to whom it is granted has the right to receive the
      excess, if any, of:

                  (1) The Fair Market Value of one share of Stock on the date of
            exercise; over

                  (2) The grant price of the Stock Appreciation Right as
            determined by the Committee, which shall not be less than the Fair
            Market Value of one share of Stock on the date of grant.

            (b) Other Terms. All awards of Stock Appreciation Rights shall be
      evidenced by an Award Agreement. The terms, methods of exercise, methods
      of settlement, form of consideration payable in settlement, and any other
      terms and conditions of any Stock Appreciation Right shall be determined
      by the Committee at the time of the grant of the Award and shall be
      reflected in the Award Agreement.

                                    ARTICLE 9

                             Restricted Stock Awards

      9.1. Grant Of Restricted Stock. The Committee is authorized to make Awards
of Restricted Stock to Participants in such amounts and subject to such terms
and conditions as may be selected by the Committee. All Awards of Restricted
Stock shall be evidenced by a Restricted Stock Award Agreement.

      9.2. Issuance And Restrictions. Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times, under
such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

      9.3. Forfeiture. Except as otherwise determined by the Committee at the
time of the grant of the Award or thereafter, upon termination of employment
during the applicable restriction period or upon failure to satisfy a
performance goal during the applicable restriction period, Restricted Stock that
is at that time subject to restrictions shall be forfeited and reacquired by the
Corporation; provided, however, that the Committee may provide in any Award
Agreement that restrictions or forfeiture conditions relating to Restricted
Stock will be waived in whole or in part in the event of terminations resulting
from specified causes, and the Committee may in other cases waive in whole or in
part restrictions or forfeiture conditions relating to Restricted Stock.

      9.4. Certificates For Restricted Stock. Restricted Stock granted under the
Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing shares of Restricted Stock are
<PAGE>

registered in the name of the Participant, certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock.

                                   ARTICLE 10

                              Dividend Equivalents

      10.1 Grant Of Dividend Equivalents. The Committee is authorized to grant
Dividend Equivalents to Participants subject to such terms and conditions as may
be selected by the Committee. Dividend Equivalents shall entitle the Participant
to receive payments equal to dividends with respect to all or a portion of the
number of shares of Stock subject to an Award, as determined by the Committee.
The Committee may provide that Dividend Equivalents be paid or distributed when
accrued or be deemed to have been reinvested in additional shares of Stock, or
otherwise reinvested.

                                   ARTICLE 11

                         Provisions Applicable To Awards

      11.1. Stand-alone, Tandem, And Substitute Awards. Awards granted under the
Plan may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution for, any other Award granted
under the Plan. If an Award is granted in substitution for another Award, the
Committee may require the surrender of such other Award in consideration of the
grant of the new Award. Awards granted in addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the
grant of such other Awards.

      11.2. Term Of Award. The term of each Award shall be for the period as
determined by the Committee, provided that in no event shall the term of any
Incentive Stock Option or a Stock Appreciation Right granted in tandem with the
Incentive Stock Option exceed a period of ten years from the date of its grant
(or, if Section 7.2(e) applies, five years from the date of its grant).

      11.3. Form Of Payment For Awards. Subject to the terms of the Plan and any
applicable law or Award Agreement, payments or transfers to be made by the
Corporation or a Parent or Subsidiary on the grant or exercise of an Award may
be made in such form as the Committee determines at or after the time of grant,
including without limitation, cash, Stock, other Awards, or other property, or
any combination, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee.

      11.4. Limits On Transfer. No right or interest of a Participant in any
unexercised or restricted Award may be pledged, encumbered, or hypothecated to
or in favor of any party other than the Corporation or a Parent or Subsidiary,
or shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Corporation or a Parent or Subsidiary. No
unexercised or restricted Award shall be assignable or transferable by a
Participant other than by will or the laws of descent and distribution or,
except in the case of an Incentive Stock Option, pursuant to a domestic
relations order that would satisfy Section 414(p)(1)(A) of the Code if such
Section applied to an Award under the Plan; provided, however, that the
Committee may (but need not) permit other transfers where the Committee
concludes that such transferability (i) does not result in accelerated taxation,
(ii) does not
<PAGE>

cause any Option intended to be an Incentive Stock Option to fail to be
described in Code Section 422(b), and (iii) is otherwise appropriate and
desirable, taking into account any factors deemed relevant, including without
limitation, state or federal tax or securities laws applicable to transferable
Awards.

      11.5 Beneficiaries. Notwithstanding Section 11.4, a Participant may, in
the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant's death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights under the Plan is subject to
all terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise
provide, and to any additional restrictions deemed necessary or appropriate by
the Committee. If no beneficiary has been designated or survives the
Participant, payment shall be made to the Participant's estate. Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the Committee.

      11.6. Stock Certificates. All Stock issuable under the Plan is subject to
any stop-transfer orders and other restrictions as the Committee deems necessary
or advisable to comply with federal or state securities laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded. The Committee
may place legends on any Stock certificate or issue instructions to the transfer
agent to reference restrictions applicable to the Stock.

      11.7 Acceleration Upon Death, Disability Or Retirement. Notwithstanding
any other provision in the Plan or any Participant's Award Agreement to the
contrary, upon the Participant's death or Disability during his employment or
service as a producer or director or upon the Participant's Retirement, all
outstanding Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse. Any Option or Stock Appreciation
Rights Awards shall thereafter continue or lapse in accordance with the other
provisions of the Plan and the Award Agreement. To the extent that this
provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Section 7.2(d), the excess Options shall be deemed to be Non-Qualified
Stock Options.

      11.8. Acceleration Upon A Change In Control. Except as otherwise provided
in the Award Agreement, upon the occurrence of a Change in Control, all
outstanding Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse; provided, however that such
acceleration will not occur if, in the opinion of the Corporation's accountants,
such acceleration would preclude the use of "pooling of interest" accounting
treatment for a Change in Control transaction that (a) would otherwise qualify
for such accounting treatment, and (b) is contingent upon qualifying for such
accounting treatment. To the extent that this provision causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options.

      11.9. Acceleration Upon Certain Events Not Constituting A Change In
Control. In the event of the occurrence of any circumstance, transaction or
event not constituting a Change in Control (as defined in Section 3.1) but which
the Board of Directors deems to be, or to be reasonably likely to lead to, an
effective change in control of the Corporation of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of the 1934
Act, the Committee may in its sole discretion declare all outstanding Options,
Stock Appreciation Rights, and other Awards in the nature of rights that may be
exercised to be fully exercisable, and/or all restrictions on all outstanding
Awards to have lapsed, in each case, as of such date as the Committee may, in
its sole discretion, declare, which may be on or before the
<PAGE>

consummation of such transaction or event. To the extent that this provision
causes Incentive Stock Options to exceed the dollar limitation set forth in
Section 7.2(d), the excess Options shall be deemed to be Non-Qualified Stock
Options.

      11.10. Acceleration For Any Other Reason. Regardless of whether an event
has occurred as described in Section 11.8 or 11.9 above, the Committee may in
its sole discretion at any time determine that all or a portion of a
Participant's Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully or partially exercisable,
and/or that all or a part of the restrictions on all or a portion of the
outstanding Awards shall lapse, in each case, as of such date as the Committee
may, in its sole discretion, declare. The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its
discretion pursuant to this Section 11.10.

      11.11 Effect Of Acceleration. If an Award is accelerated under Section
11.8 or 11.9, the Committee may, in its sole discretion, provide (i) that the
Award will expire after a designated period of time after such acceleration to
the extent not then exercised, (ii) that the Award will be settled in cash
rather than Stock, (iii) that the Award will be assumed by another party to the
transaction giving rise to the acceleration or otherwise be equitably converted
in connection with such transaction, or (iv) any combination of the foregoing.
The Committee's determination need not be uniform and may be different for
different Participants whether or not such Participants are similarly situated.

      11.12. Performance Goals. The Committee may determine that any Award
granted pursuant to this Plan to a Participant (including, but not limited to,
Participants who are Covered Employees) shall be determined solely on the basis
of (a) the achievement by the Corporation , or an individual or a business unit
of the Corporation or a Parent or Subsidiary, of a specified target with respect
to, or target growth in, any of the following areas: (i) return on equity or on
assets, (ii) overall or selected premium or sales growth, (iii) revenues, net
income or earnings per share, (iv) expense efficiency ratios (ratio of expenses
to premium income), (v) customer service measures or indices, (vi) underwriting
efficiency and/or quality, (vii) market share, or (vii) persistency factors, or
(b) the Corporation's s or a Parent's or Subsidiary's stock performance, or (c)
any combination of the goals set forth in any of (a) or (b) above. If an Award
is made on such basis, the Committee shall establish goals prior to the
beginning of the period for which such performance goal relates (or such later
date as may be permitted under Code Section 162(m) or the regulations
thereunder) and the Committee has the right for any reason to reduce (but not
increase) the Award, notwithstanding the achievement of a specified goal. Any
payment of an Award granted with performance goals shall be conditioned on the
written certification of the Committee in each case that the performance goals
and any other material conditions were satisfied.

      11.13. Termination Of Employment. Whether military, government or other
service or other leave of absence shall constitute a termination of employment
shall be determined in each case by the Committee at its discretion, and any
determination by the Committee shall be final and conclusive. A termination of
employment shall not occur in a circumstance in which a Participant transfers
from the Corporation to one of its Parents or Subsidiaries, transfers from a
Parent or Subsidiary to the Corporation, or transfers from one Parent or
Subsidiary to another Parent or Subsidiary or in the discretion of the Committee
as specified at or prior to such occurrence, in the case of a spin-off, sale or
disposition of the Participant's employer from the Corporation or any Parent or
Subsidiary. To the extent that this provision causes the Incentive Stock Options
to extend beyond three months from the date a Participant is deemed to be an
employee of the Corporation, a Parent or Subsidiary for purposes of Section
424(f) of the Code, the Options held by such Participant shall be deemed to be
Non-Qualified Stock Options.
<PAGE>

                                   ARTICLE 12

                          Changes In Capital Structure

      12.1. General. In the event of a corporate transaction involving the
Corporation (including without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization , reorganization, merger,
consolidation split-up, spin-off, combination or exchange of shares) the
authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or
potential benefits of the Awards. Action by the Committee may include: (I)
adjustment of the number and kind of shares which may be delivered under the
Plan; (ii) adjustment of the number and kind of shares subject to outstanding
Awards, adjustment of the exercise price of outstanding Awards; and (iv) any
other adjustments that the Committee determines to be equitable. Without
limiting the foregoing, in the event a stock dividend or stock split is declared
upon the Stock, the authorization limits under Section 5.1 and 5.4 shall be
increased proportionately, and the shares of Stock then subject to each Award
shall be increased proportionately without any change in the aggregate purchase
price therefor.

                                   ARTICLE 13

                     Amendment, Modification And Termination

      13.1. Amendment, Modification And Termination. The Board or the Committee
may, at any time and from time to time, amend, modify or terminate the Plan
without stockholder approval; provided, however, that the Board or Committee may
condition any amendment or modification on the approval of stockholders of the
Corporation if such approval is necessary or deemed advisable with respect to
tax, securities or other applicable laws, policies or regulations.

      13.2 Awards Previously Granted. At any time and from time to time, the
Committee may amend, modify or terminate any outstanding Award without approval
of the Participant; provided, however, that subject to the terms of the
applicable Award Agreement such amendment, modification or termination shall
not, without the Participant's consent, reduce or diminish the value of such
Award determined as if the Award had been exercised, vested, cashed in or
otherwise settled on the date of such amendment or termination; and provided
further that, the original term of any Option may not be extended and, except as
otherwise provided in the anti-dilution provision of the Plan, the exercise
price of any Option may not be reduced. No termination, amendment, or
modification of the Plan shall adversely affect any Award previously granted
under the Plan, without the written consent of the Participant.

                                   ARTICLE 14

                               General Provisions

      14.1. No Rights To Awards. No Participant or employee, officer, producer
or director shall have any claim to be granted any Award under the Plan, and
neither the Corporation nor the Committee is obligated to treat Participants or
eligible participants uniformly.

      14.2. No Stockholder Rights. No Award gives the Participant any of the
rights of a stockholder of the Corporation unless and until shares of Stock are
in fact issued to such person in connection with such Award.
<PAGE>

      14.3. Withholding. The Corporation or any Parent or Subsidiary shall have
the authority and the right to deduct or withhold, or require a Participant to
remit to the Corporation, an amount sufficient to satisfy federal, state, and
local taxes (including the Participant's FICA obligation) required by law to be
withheld with respect to any taxable event arising as a result of the Plan. With
respect to withholding required upon any taxable event under the Plan, the
Committee may, at the time the Award is granted or thereafter, require or permit
that any such withholding requirement be satisfied, in whole or in part, by
withholding from the Award shares of Stock having a Fair Market Value on the
date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures
as the Committee establishes.

      14.4. No Right To Continued Service. Nothing in the Plan or any Award
Agreement shall interfere with or limit in any way the right of the Corporation
or any Parent or Subsidiary to terminate any Participant's employment or status
as an officer, Producer or director at any time, nor confer upon any Participant
any right to continue as an employee, officer, Producer or director of the
Corporation or any Parent or Subsidiary.

      14.5. Unfunded Status Of Awards. The Plan is intended to be an "unfunded"
plan for incentive and deferred compensation. With respect to any payments not
yet made to a Participant pursuant to an Award, nothing contained in the Plan or
any Award Agreement shall give the Participant any rights that are greater than
those of a general creditor of the Corporation or any Parent or Subsidiary.

      14.6. Relationship To Other Benefits. No payment under the Plan shall be
taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or benefit plan of the
Corporation or any Parent or Subsidiary unless provided otherwise in such other
plan.

      14.7. Expenses. The expenses of administering the Plan shall be borne by
the Corporation and its Parents or Subsidiaries.

      14.8. Titles And Headings. The titles and headings of the Sections in the
Plan are for convenience of reference only, and in the event of any conflict,
the text of the Plan, rather than such titles or headings, shall control.

      14.9. Gender And Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural.

      14.10. Fractional Shares. No fractional shares of Stock shall be issued
and the Committee shall determine, in its discretion, whether cash shall be
given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up.

      14.11. Government and other Regulations. The obligation of the Corporation
to make payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals by government
agencies as may be required. The Corporation shall be under no obligation to
register under the 1933 Act, or any state securities act, any of the shares of
Stock issued in connection with the Plan. The shares issued in connection with
the Plan may in certain circumstances be exempt from registration under the 1933
Act, and the Corporation may restrict the transfer of such shares in such manner
as it deems advisable to ensure the availability of any such exemption.
<PAGE>

      14.12. Governing Law. To the extent not governed by federal law, the Plan
and all Award Agreements shall be construed in accordance with and governed by
the laws of the State of Tennessee.

      14.13. Additional Provisions. Each Award Agreement may contain such other
terms and conditions as the Committee may determine; provided that such other
terms and conditions are not inconsistent with the provisions of this Plan.

      The foregoing is hereby acknowledged as being the Provident Companies,
Inc. 1999 Stock Plan as adopted and amended by the Compensation Committee of the
Board of Directors of the Corporation on February 8, 20001, and approved by the
stockholders of the Corporation on May 10, 2001.

                                             UNUMPROVIDENT CORPORATION.

                                               By:

                                               Its:<PAGE>

                                                                   EXHIBIT 10.13

                            UNUMPROVIDENT CORPORATION
                 NON-EMPLOYEE DIRECTOR COMPENSATION PLAN OF 1998

      1. Establishment of Plan.

      (a) Purpose. The purpose of the UnumProvident Corporation Non-Employee
Director Compensation Plan of 1998 is to attract, retain and compensate
highly-qualified individuals who are not employees of UnumProvident Corporation
or any of its subsidiaries or affiliates for service as members of the Board by
providing them with an opportunity to increase their ownership interest in the
Common Stock of the Company. The Company intends that the Plan will benefit the
Company and its stockholders by allowing Non-Employee Directors to have a
personal financial stake in the Company through an ownership interest in the
Common Stock and will closely associate the interests of Non-Employee Directors
with that of the Company's stockholders.

      (b) Status of Plan. The Plan is intended, in part, to be a nonqualified,
unfunded plan of deferred compensation under the Internal Revenue Code of 1986,
as amended. Although the plan is unfunded for tax purposes, the Company may
establish a trust under Revenue Procedure 92-64 to provide benefits under the
Plan.

      (c) Establishment of Trust. As noted above, the Company may establish a
trust to fund benefits provided under the terms of the Plan ("Trust"). It is
intended that a transfer of assets into the Trust will not generate taxable
income (for federal income tax purposes) to the Participants until such assets
are actually distributed or otherwise made available to the Participants.

      2. Defined Terms. Unless the context clearly indicates otherwise, the
following terms shall have the following meanings:

      "Annual Retainer" means the annual retainer payable by the Company at the
beginning of each Plan Year to a Non-Employee Director for service as a director
of the Company, as such amount may be changed from time to time. Until changed
by the Board, the Annual Retainer will be $80,000.

      "Board" means the Board of Directors of the Company.

      "Change in Control" means the occurrence of any of the following after the
Effective Date:

            (i) during any period of two consecutive years, individuals who, at
            the beginning or such period, constitute the Board (the "Incumbent
            Directors") cease for any reason to constitute at least a majority
            of the Board, provided that any person becoming a director and whose
            election or nomination for election was approved by a vote of at
            least two-thirds of the Incumbent Directors then on the Board
            (either by a specific vote or by approval of the proxy statement of
            the Company in which such person is named as a nominee for director,
            without written objection to such nomination) shall be an Incumbent
            Director; provided, however, that no individual initially elected or
            nominated as a director of the Company as a result of an actual or
            threatened election contest (as described in Rule 14a-11 under the
            Act) ("Election Contest") or other actual or threatened solicitation
            of proxies or consents by or on behalf of any "person" (as such term
            is defined in Section 3(a)(9) of the Act and as used in Sections
            13(d)(3) and 14(d)(2) of the Act) other than the Board ("Proxy
            Contest"), including by reason of any agreement intended to avoid or
            settle any Election or Contest or Proxy Contest, shall be deemed an
            Incumbent Director;
<PAGE>

            (ii) any person is or becomes a "beneficial owner" (as defined in
            Rule 13d-3 under the Act), directly or indirectly, of securities of
            the Company representing 20% or more of the combined voting power of
            the Company's then outstanding securities eligible to vote for the
            election of the Board (the "Company Voting Securities"); provided,
            however, that the event described in this paragraph (ii) shall not
            be deemed to be a Change in Control of the Company by virtue of any
            of the following acquisitions: (A) by the Company of any subsidiary,
            (B) by any employee benefit plan (or related trust) sponsored or
            maintained by the Company or any subsidiary, (C) by an underwriter
            temporarily holding securities pursuant to an offering of such
            securities, (D) pursuant to a Non-Qualifying Transaction (as defined
            in paragraph (iii), or (E) a transaction (other than one described
            in (iii) below) in which Company Voting Securities are acquired from
            the Company, if a majority of the Incumbent Directors approve a
            resolution providing expressly that the acquisition pursuant to this
            clause (E) does not constitute a Change in Control of the Company
            under this paragraph (ii);

            (iii) the consummation of a merger, consolidation, statutory share
            exchange or similar form of corporate transaction involving the
            Company or any of its subsidiaries that requires the approval of the
            Company's stockholders, whether for such transaction or the issuance
            of securities in the transaction (a "Reorganization"), or sale or
            other disposition of all or substantially all of the Company's
            assets to an entity that is not an affiliate of the Company (a
            "Sale"), unless immediately following such Reorganization or Sale:
            (A) more than 50% of the total voting power of (x) the corporation
            resulting from such Reorganization or the corporation which has
            acquired all or substantially all of the assets of the Company (in
            either case, the "Surviving Corporation"), or (y) if applicable, the
            ultimate parent corporation that directly or indirectly has
            beneficial ownership of 100% of the voting securities eligible to
            elect directors of the Surviving Corporation (the "Parent
            Corporation"), is represented by the Company Voting Securities that
            were outstanding immediately prior to such Reorganization or Sale
            (or, if applicable, is represented by shares into which such Company
            Voting Securities were converted pursuant to such Reorganization or
            Sale), and such voting power among the holders thereof is in
            substantially the same proportion as the voting power of such
            Company Voting Securities among the holders thereof immediately
            prior to the Reorganization or Sale, (B) no person (other than any
            employee benefit plan (or related trust) sponsored or maintained by
            the Surviving Corporation or the Parent Corporation) is or becomes
            the beneficial owner, directly or indirectly, of 20% or more of the
            total voting power of the outstanding voting securities eligible to
            elect directors of the Parent Corporation (or, if there is no Parent
            Corporation, the Surviving Corporation) and (C) at least a majority
            of the members of the board of directors of the Parent Corporation
            (or, if there is no Parent Corporation, the Surviving Corporation)
            following the consummation of the Reorganization or Sale were
            Incumbent Directors at the time of the Board's approval of the
            execution of the initial agreement providing for such Reorganization
            or Sale (any Reorganization or Sale which satisfies all of the
            criteria specified in (A), (B) and (C) above shall be deemed to be a
            "Non-Qualifying Transaction"); or

            (iv) the stockholders of the Company approve a plan of complete
            liquidation or dissolution of the Company.

            Notwithstanding the foregoing, a Change in Control of the Company
            shall not be deemed to occur solely because any person acquires
            beneficial ownership of more than 20% of the Company Voting
            Securities as a result of the acquisition of Company Voting
            Securities by the Company which reduces the number of Company Voting
            Securities outstanding; provided, that if after such acquisition by
            the Company such person becomes the beneficial owner of additional
            Company
<PAGE>

      Voting Securities that increases the percentage of outstanding Company
      Voting Securities beneficially owned by such person, a Change in Control
      of the Company shall then occur.

      "Company" means Provident Companies, Inc., a Delaware corporation.

      "Committee" has the meaning assigned such term in Section 3.

      "Common Stock" means the common stock, par value $.10 per share, of the
Company.

      "Deferred Share Right" means a right, granted under Section 7, to receive
one share of Common Stock on the Payment Date.

      "Deferral Period" has the meaning set forth in Section 7(f) of the Plan.

      "Deferral Termination Date" has the meaning set forth in Section 7(e) of
the Plan.

      "Disability" means any illness or other physical or mental condition of a
Participant that renders the Participant incapable of performing his customary
and usual duties for the Corporation, or any medically determinable illness or
other physical or mental condition resulting from a bodily injury, disease or
mental disorder which, in the judgment of the Committee, is permanent and
continuous in nature. The Committee may require such medical or other evidence
as it deems necessary to judge the nature and permanency of the Participant's
condition.

      "Payment Date" has the meaning set forth in Section 7(e) of the Plan.

      "Director Retirement Program" means the Company's program which provides
certain retirement benefits to directors elected for the first time prior to May
4, 1994.

      "Distributions" has the meaning set forth in Section 7(f) of the Plan.

      "Election Form" means a form approved by the Committee pursuant to which a
Non-Employee Director elects a method of payment of Annual Retainer and the
payment terms for Deferred Share Rights, if applicable.

      "Election Period" means the period designated by the Committee each year
during which Non-Employee Directors may elect to receive Options or Deferred
Share Rights as payment of some or all of their Annual Retainer. The Election
Period shall end on or before April 30 of each year for the following Plan Year.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "Fair Market Value", on any date, means (i) if the Common Stock is listed
on a securities exchange or traded over the Nasdaq National Market, the average
of the high and low market prices reported in The Wall Street Journal at which a
Share of Common Stock shall have been sold on such day or on the next preceding
trading day if such date was not a trading day, or (ii) if the Common Stock is
not listed on a securities exchange or traded over the Nasdaq National Market,
the mean between the bid and offered prices as quoted by Nasdaq for such date,
provided that if it is determined that the fair market value is not
<PAGE>

properly reflected by such Nasdaq quotations, Fair Market Value will be
determined by such other method as the Committee determines in good faith to be
reasonable.

      "Grant Date" means the date on which Options are granted pursuant to
Section 6 or Deferred Share Rights are granted pursuant to Section 7, which, in
each case, shall be the date on which the Annual Retainer is payable in each
Plan Year.

      "Hardship" has the meaning set forth in Section 7(h) of the Plan.

      "Non-Employee Director" means a director of the Company who is not an
employee of the Company or of any of its subsidiaries or affiliates.

      "Option" means an option to purchase Shares granted under Section 6.
Options granted under the Plan are not incentive stock options within the
meaning of Section 422 of the Internal Revenue Code.

      "Optionee" means a Non-Employee Director of the Company to whom an Option
has been granted or, in the event of such Non-Employee Director's death prior to
the expiration of an Option, such Non-Employee Director's estate or other
designated beneficiary.

      "Option Notice" means a written notice, agreement or certificate with a
Non-Employee Director from the Company evidencing an Option.

      "Option Valuation Percentage" means the percentage determined by the
Committee on or before the Election Date in each Plan Year as being the
approximate fair value of an Option relative to a share of Common Stock on the
date of the grant of the Option. The Option Valuation Percentage may not be less
than 30%. Until changed by the Committee, the Option Valuation Percentage shall
be 33%.

      "Participant" means any Non-Employee Director who is participating in the
Plan.

      "Permitted Transferee" of an Optionee means (i) one or more of the
following family members of the Optionee: spouse, former spouse, child (whether
natural or adopted), stepchild, any other lineal descendent of the Optionee;
(ii) a trust, partnership or other entity established and existing for the sole
benefit of, or under the sole control of, one or more of the above family
members of the Optionee, or (iii) any other transferee specifically approved by
the Committee after taking into account any state or federal tax, securities or
other laws applicable to transferable options.

      "Plan" means the Provident Companies, Inc. Non-Employee Director
Compensation Plan of 1998, as amended from time to time.

      "Plan Year" means the approximately twelve-month period beginning on the
date of the annual meeting of the stockholders of the Company ("annual meeting")
in any year and ending on the date of the following annual meeting, which, for
purposes of the Plan, is the period for which Annual Retainers are earned.

      "Retirement" means a Participant's termination of service as a director
after attaining mandatory retirement age, or, in the event there is no mandatory
retirement age for directors, as determined by the Committee in its reasonable
judgment.
<PAGE>

      "Rule 16b-3" means Rule 16b-3, as amended from time to time, of the
Securities and Exchange Commission as promulgated under the Exchange Act.

      "Securities Act" means the Securities Act of 1933, as amended.

      "Shares" means shares of Common Stock.

      3. Administration. The Plan shall be administered by the Compensation
Committee of the Board (the "Committee"). Subject to the provisions of the Plan,
the Committee shall be authorized to interpret the Plan, to establish, amend and
rescind any rules and regulations relating to the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan;
provided, however, that the Committee shall have no discretion with respect to
the eligibility or selection of Non-Employee Directors to receive awards under
the Plan, the number of Shares subject to any such awards or the time at which
any such awards are to be granted. The Committee's interpretation of the Plan,
and all actions taken and determinations made by the Committee pursuant to the
powers vested in it hereunder, shall be conclusive and binding upon all parties
concerned including the Company, its stockholders and persons granted awards
under the Plan. The Committee may appoint a plan administrator to carry out the
ministerial functions of the Plan, but the administrator shall have no other
authority or powers of the Committee. Notwithstanding the foregoing, the Board
shall exercise any and all rights, duties and powers of the Committee under the
Plan to the extent required by the applicable exemptive conditions of Rule
16b-3, as determined by the Board its sole discretion.

      4. Shares Subject to Plan. The Shares issued under the Plan shall not
exceed in the aggregate 365,000 Shares of Common Stock. Such Shares may be
acquired on the open market or issued out of authorized and unissued Shares or
treasury Shares.

      5. Participation.

      (a) Eligibility. All active Non-Employee Directors shall be eligible to
participate in the Plan.

      (b) Annual Retainer Elections. A Participant may elect on or before the
Election Date for a Plan Year to receive up to 100% of his or her Annual
Retainer in the form of Options or Deferred Share Rights in accordance with the
terms of the Plan and the Election Form. A Participant may not elect to receive
both Options and Deferred Share Rights in any one Plan Year. Any amount of the
Annual Retainer not elected to be received in the form of Options of Deferred
Share Rights shall be paid to the Participant in cash.

      (c) Accrued Balances under Director Retirement Program. Each Non-Employee
Director having an accrued account balance in the Director Retirement Program as
of the Effective Date shall be required to convert the net present value of such
account either 100% to Options in accordance with the procedures described in
Section 6 below with respect to Annual Retainer, or 100% to Deferred Share
Rights, in accordance with the procedures described in Section 7 below with
respect to Annual Retainer. The election as to which form of payment shall be
made on an Election Form filed during the Election Period.

      (d) Deferral Accounts. For bookkeeping purposes, any amounts which the
Participant elects to receive in the form of Deferred Share Rights, and any
Distributions credited in accordance with Section 7(f), shall be transferred to
and held in individual deferral accounts.

      6. Stock Option Awards.
<PAGE>

      (a) Election to Receive Options. A Non-Employee Director may elect each
year to receive up to 100% of his or her Annual Retainer in the form of Options
in accordance with this Section 6. A Non-Employee Director who wishes to receive
some or all of his or her Annual Retainer for a Plan Year in the form of Options
must irrevocably elect to do so during the Election Period for such Plan Year,
by delivering a valid Election Form to the Committee or the plan administrator.
A Non-Employee Director's participation in Section 6 of the Plan will be
effective with respect to the Annual Retainer to be earned in the first Plan
Year beginning after the Committee or the plan administrator receives the
Non-Employee Director's Election Form.

      (b) Irrevocable, Annual Election. Elections to receive Options as payment
of Annual Retainer are irrevocable and shall be valid only for one Plan Year.
New elections must be made for participation in Section 6 of the Plan for
subsequent Plan Years.

      (c) Time of Grant. Options shall be granted to each Non-Employee Director
who, during the applicable Election Period, filed with the Committee or the plan
administrator a written irrevocable election to receive Options as payment of
some or all of such Non-Employee Director's Annual Retainer payable in the
following Plan Year. Such Options will be granted on the date the Annual
Retainer for such Plan Year is otherwise payable (the "Grant Date").

      (d) Number of Options. The number of Shares subject to an Option granted
pursuant to this Section 6 shall be the number of whole Shares equal to (i) the
dollar amount of the Annual Retainer that the Non-Employee Director elects shall
be payable in the form of Options, divided by (ii) the Option Valuation
Percentage times the Fair Market Value per Share on the Grant Date. In
determining the number of Shares subject to an Option, Shares will be rounded to
the nearest 100 Shares. For example:

      Assume that a Non-Employee Director has elected to receive $50,000 of his
or her Annual Retainer in the form of Options, that the Option Valuation
Percentage is 33%, and that the Fair Market Value per Share on the Grant Date is
$36. The Non-Employee Director would be granted 4,200 Options as payment of the
$50,000 compensation. $50,000 divided by 33% of $36 FMV = 4,200 Options granted
(rounded to the nearest 100 Shares).

      (e) Exercise Price. The total price paid per Share under each Option
granted under this Section 6 shall be the Fair Market Value per Share on the
Grant Date.

      (f) Exercise of Options. An Option, or portion thereof, may be exercised
in whole or in part only with respect to whole Shares. Each Option shall be
fully exercisable on the first anniversary of the date of grant or upon the
earlier death, Disability or Retirement of the Optionee or the occurrence of a
Change in Control. Each Option will remain exercisable for 10 years from the
Grant Date; provided, however, that:

            (i) if a Participant terminates his or her service as a director for
      any reason after four years of service on the Board, or due to Retirement,
      death or Disability, his or her unexercised Options shall expire on the
      earlier of (A) the original expiration date of the Option or (B) the fifth
      anniversary of such termination of service; and

            (ii) if a Participant has served as a director for fewer than four
      years and terminates his or her service as a director for any reason other
      than Retirement, death or Disability, his or her unexercised Options shall
      expire on the date of such termination of service.
<PAGE>

      (g) Payment of Exercise Price. The Committee shall determine the methods
by which the exercise price of an option may be paid, the form of payment,
including, without limitation, cash, shares of stock, or other property
(including "cashless exercise" arrangements), and the methods by which shares of
stock shall be delivered or deemed to be delivered to participants; provided,
however, that if shares of stock are used to pay the exercise price of an
option, such shares must have been held by the participant for at least six
months. When shares of stock are delivered, such delivery may be by attestation
of ownership or actual delivery of one or more certificates. Failure by the
Committee to specify methods by which the exercise price of an option may be
paid or the form of payment shall be deemed to express the Committee's
determination that all methods and forms of payment presented under the Plan are
permitted under the grant.

      (h) Option Notice. Each Option granted under the Plan shall be evidenced
by an Option Notice which shall be executed by an authorized officer of the
Company. Such Option Notice shall contain provisions regarding (a) the number of
Shares that may be issued upon exercise of the Option, (b) the exercise price
per Share of the Option and the means of payment therefor, (c) the term of the
Option, and (d) such other terms and conditions not inconsistent with the Plan
as may be determined from time to time by the Committee.

      (i) Transferability of Options. No Option shall be assignable or
transferable by the Optionee other than by will or the laws of descent and
distribution or to a Permitted Transferee. Any transfer to a Permitted
Transferee shall be subject to the following terms and conditions:

            (i) An Option transferred to a Permitted Transferee shall not be
      assignable or transferable by the Permitted Transferee other than by will
      or the laws of descent and distribution.

            (ii) Transferred Options shall continue to be subject to all the
      terms and conditions of the Option as applicable to the original Optionee
      (other than the ability to further transfer the Option).

            (iii) The Optionee and the Permitted Transferee shall execute any
      and all documents reasonably requested by the Committee or the plan
      administrator, including without limitation documents (A) to confirm the
      status of the transferee as a Permitted Transferee, (B) to satisfy any
      requirements for an exemption for the transfer under applicable federal
      and state securities laws, and (C) to evidence the transfer.

            (iv) Shares acquired by a Permitted Transferee through exercise of
      an Option may not be transferred, nor will any assignee or transferee
      thereof be recognized as an owner of such Shares by the Company for any
      purpose, unless a registration statement under the Securities Act and any
      applicable state securities act with respect to such Shares shall then be
      in effect or unless the availability of an exemption from registration
      with respect to any proposed transfer or disposition of such Shares shall
      be established to the satisfaction of counsel for the Company.

7. Deferred Share Rights.

      (a) Election to Receive Deferred Share Rights. A Non-Employee Director may
elect each year to receive up to 100% of his or her Annual Retainer in the form
of Deferred Share Rights in accordance with this Section 7. A Non-Employee
Director who wishes to receive some or all of his or her Annual Retainer for a
Plan Year in the form of Deferred Share Rights must irrevocably elect to do so
during the Election Period for such Plan Year, by delivering a valid Election
Form to the Committee or the plan
<PAGE>

administrator. A Non-Employee Director's participation in Section 7 of the Plan
will be effective with respect to the Annual Retainer to be earned in the first
Plan Year beginning after the Committee or the plan administrator receives the
Non-Employee Director's Election Form.

      (b) Irrevocable, Annual Election. Elections to receive Deferred Share
Rights as payment of Annual Retainer shall be valid only for one Plan Year. New
elections must be made for participation in Section 7 of the Plan for subsequent
Plan Years. The deferral Election Form signed by the Participant prior to the
Plan Year will be irrevocable except in case of Hardship (as defined in Section
7(h)) as determined in good faith by the Board pursuant to Section 7(h);
provided, however, that the Participant may, at least one year in advance of the
original Deferral Termination Date, designate a later Deferral Termination Date.

      (c) Time of Grant. Deferred Share Rights shall be granted to each
Non-Employee Director who, during the applicable Election Period, filed with the
Committee or the plan administrator a written irrevocable election to receive
Deferred Share Rights as payment of some or all of such Non-Employee Director's
Annual Retainer payable in the following Plan Year. Such Deferred Share Rights
will be granted on the date the Annual Retainer for such Plan Year is otherwise
payable (the "Grant Date").

      (d) Number of Deferred Share Rights. The number of Deferred Share Rights
granted pursuant to this Section 7 shall be the number of whole Shares equal to
(i) the dollar amount of the Annual Retainer that the Non-Employee Director
elects shall be payable in the form of Deferred Share Rights, divided by (ii)
90% of the Fair Market Value per Share on the Grant Date. In determining the
number of Deferred Share Rights, any fraction of a Deferred Share Right will be
rounded to the next highest whole number of Deferred Share Rights. For example:

      Assume that a Non-Employee Director has elected to defer $50,000 of his or
her Annual Retainer and that the Fair Market Value per Share on the Grant Date
is $36. The Non-Employee Director would be granted 1,544 Deferred Share Rights
as payment of the $50,000 compensation. $50,000 divided by (90% of $36 FMV) =
1,544 Deferred Share Rights granted (rounded to the next highest whole number).

      (e) Nature of Deferred Share Rights. Each Deferred Share Right constitutes
the right to receive one Share of Common Stock on the earlier of (i) the
Participant's termination of service as a director or (ii) another designated
date at least three years after the date of such deferral election (in either
case, the "Deferral Termination Date"). Pursuant to the Election Form, the
Participant will elect whether the Shares will be (a) granted within 30 days
after the Deferral Termination Date or (b) granted in approximately equal annual
installments of Shares over a period of three, five or seven years (as the
Participant may elect) after the Deferral Termination Date, each such annual
grant to be made within 30 days after the anniversary of the Deferral
Termination Date. No Shares will be issued until the payment date(s) (the
"Payment Date") at which time the Company agrees to issue Shares of Common Stock
to the Participant. The Participant will have no rights as a stockholder with
respect to the Deferred Share Rights, and the Deferred Share Rights will be
unsecured.

      (f) Deferred Dividend Account. If any dividends or other rights or
distributions of any kind ("Distributions") are distributed to holders of Common
Stock during the period from the applicable Grant Date until the Deferral
Termination Date (the "Deferral Period") but prior to the Participant's
termination of service, an amount equal to the cash value of such Distributions
on their distribution date, as such value is determined by the Committee, will
be credited to a deferred dividend account for the Participant as follows: the
account will be credited with the right to receive Shares having a Fair Market
Value as of the date of the Distribution equal to the cash value of the
Distribution. The Company will issue Shares equal
<PAGE>

to the cumulative total of rights to Shares in such account within 30 days after
the Participant's Deferral Termination Date.

      If a Distribution is distributed to holders of Common Stock after the
Participant's Deferral Termination Date but prior to the settlement in full of
the Participant's Deferred Share Rights, an amount equal to the cash value of
such Distributions pertaining to the Participant's outstanding Deferred Share
Rights shall be converted into Shares equivalent in value to the Distribution
(based on the Fair Market Value as of the date of Distribution) and such Shares
will be issued to the Participant as soon as practical after the date of the
Distribution.

      (g) Transferability of Deferred Share Rights. No Deferred Share Rights
shall be assignable or transferable by the Participant other than by will or the
laws of descent and distribution. No right or interest in the Deferred Share
Rights or in the deferred dividend account shall be subject to liability for the
debts, contracts or engagements of the Participant or shall be subject to
disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment or
any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect; provided,
however, that nothing in this Section 7(g) shall prevent transfers by will or by
the applicable laws of descent and distribution.

      (h) Hardship. The Board may accelerate the payment in Shares of all or a
portion of a Participant's Deferred Share Rights on account of his or her
Hardship, subject to the following requirements: (i) the value of such
accelerated distribution shall not exceed the amount necessary to satisfy the
Hardship, less the amount which can be satisfied from other resources which are
reasonably available to the Participant, (ii) the denial of the Participant's
request for a Hardship acceleration would result in severe financial hardship to
the Participant, and (iii) the Participant has not received an accelerated
distribution on account of Hardship within the 12-month period preceding the
acceleration. For purposes of this Plan, "Hardship" of a Participant, as
determined by the Board in its discretion on the basis of all relevant facts and
circumstances and in accordance with the following nondiscriminatory and
objective standards uniformly interpreted and consistently applied, shall mean a
severe financial hardship to the Participant resulting from a sudden and
unexpected illness or accident of the Participant or of his or her dependent,
loss of the Participant's property due to casualty, or other extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant. A financial need shall not constitute a Hardship unless it is
for at least $1,000,000 or the entire value of the principal amount of the
Participant's Deferred Share Rights.

      (i) Funding. Deferred Share Rights shall be paid from the general assets
of the Company or as otherwise directed by the Company. To the extent that any
Participant acquires the right to receive Deferred Share Rights under the Plan,
such right shall be no greater than that of an unsecured general creditor of the
Company. Participants and their Beneficiaries shall not have any preference or
security interest in the assets of the Company other than as a general unsecured
creditor.

      (j) Designation of Beneficiary. Each Participant from time to time may
designate any person or persons (who may be designated contingently or
successively and who may be an entity other than a natural person) as his or her
beneficiary or beneficiaries to whom the Participant's Deferred Share Rights are
to be paid if the Participant dies before receipt of Shares. Each beneficiary
designation shall be on the form prescribed by the Committee and will be
effective only when filed with the Committee during the Participant's lifetime.
Each beneficiary designation filed with the Committee will cancel all
beneficiary
<PAGE>

designations previously filed with the Committee. The revocation of a
beneficiary designation, no matter how effected, shall not require the consent
of any designated beneficiary.

      8. Prorated Grants. If on any date, Shares of Common Stock are not
available under the Plan to grant to Non-Employee Directors the full amount of a
grant (Options or Deferred Share Rights) contemplated by the Plan, then each
such director shall receive an award of Options or Deferred Share Rights, as the
case may be, equal to the number of Shares of Common Stock then available under
the Plan divided by the number of Non-Employee Directors entitled to a grant of
Options or Deferred Share Rights on such date. Fractional Shares shall be
ignored and not granted. Any shortfall resulting from such proration shall be
paid in the form of cash.

      9. Income Tax Withholding. The Company shall have the authority and the
right to deduct or withhold, or require a participant to remit to the Company,
an amount sufficient to satisfy federal, state, and local taxes (including the
participant's FICA obligation) required by law to be withheld with respect to
any taxable event arising as a result of the Plan. With respect to withholding
required upon any taxable event under the Plan, the Committee may, at the time
the Award is granted or thereafter, require or permit that any such withholding
requirement be satisfied, in whole or in part, by withholding from the award
shares of stock having a Fair Market Value on the date of withholding equal to
the minimum amount (and not any greater amount) required to be withheld for tax
purposes, all in accordance with such procedures as the Committee establishes.

      10. Adjustments.

            (a) Notwithstanding any other term of this Plan, in the event that
      the Committee determines that any Distribution (whether in the form of
      cash, Common Stock, other securities, or other property),
      recapitalization, reclassification, stock split, reverse stock split,
      reorganization, merger, consolidation, split-up, spin-off, combination,
      repurchase, or exchange of Common Stock or other securities of the
      Company, issuance of warrants or other rights to purchase Common Stock or
      other securities of the Company, or other similar corporate transaction or
      event, in the Committee's sole discretion, affects the Common Stock such
      that an adjustment is determined by the Committee to be appropriate in
      order to prevent dilution or enlargement of the benefits or potential
      benefits intended to be made available under the Plan or with respect to
      an award or awards hereunder, then the Committee shall, in such manner as
      it may deem equitable, adjust the number and type of shares (or other
      securities or property) which may be granted under the Plan (including,
      but not limited to, adjustments of the maximum number and kind of
      securities which may be issued).

            (b) Notwithstanding any other term of this Plan, in the event of any
      corporate transaction or event described in paragraph (a) which results in
      Shares being exchanged for or converted into cash, securities or other
      property (including securities of another corporation), all Deferred Share
      Rights granted under Section 7 shall become the right to receive such
      cash, securities or other property, and there shall be substituted on an
      equitable basis for each Share of Common Stock then subject to an Option
      granted pursuant to Section 6 the consideration payable with respect to
      the outstanding Shares of Common Stock in connection with such corporate
      transaction or event, all without any change in the aggregate purchase
      price for the Shares then subject to the Option.

            (c) The number of Shares finally granted under this Plan shall
      always be rounded to the next highest whole Share.
<PAGE>

            (d) Any decision of the Committee pursuant to the terms of this
      Section 10 shall be final, binding and conclusive upon the Participants,
      the Company and all other interested parties.

      11. Amendment. The Committee may terminate or suspend the Plan at any
time, without stockholder approval. The Committee may amend the Plan at any time
and for any reason without stockholder approval; provided, however, that the
Committee may condition any amendment on the approval of stockholders of the
Company if such approval is necessary or deemed advisable with respect to tax,
securities or other applicable laws, policies or regulations. No termination,
modification or amendment of the Plan may, without the consent of a Participant,
adversely affect a Participant's rights under an award granted prior thereto.

      12. Responsibility for Investment Choices. Each Participant is solely
responsible for any decision to receive Annual Retainer in the form of Options
or Deferred Share Rights and accepts all investment risks entailed by such
decision, including the risk of loss and a decrease in the value of the amounts
he or she elects to receive in the form of Options or Deferred Share Rights.

      13. Indemnification. Each person who is or has been a member of the
Committee or who otherwise participates in the administration or operation of
this Plan shall be indemnified by the Company against, and held harmless from,
any loss, cost, liability or expense that may be imposed upon or incurred by him
or her in connection with or resulting from any claim, action, suit or
proceeding in which such person may be involved by reason of any action taken or
failure to act under the Plan and shall be fully reimbursed by the Company for
any and all amounts paid by such person in satisfaction of judgment against him
or her in any such action, suit or proceeding, provided he or she will give the
Company an opportunity, by written notice to the Committee, to defend the same
at the Company's own expense before he or she undertakes to defend it on his or
her own behalf. This right of indemnification shall not be exclusive of any
other rights of indemnification.

      The Committee and the Board may rely upon any information furnished by the
Company, its public accountants and other experts. No individual will have
personal liability by reason of anything done or omitted to be done by the
Company, the Committee or the Board in connection with the Plan.

      14. Duration of the Plan. The Plan shall remain in effect until the fifth
anniversary of the Effective Date, unless terminated earlier by the Committee.

      15. Expenses of the Plan. The expenses of administering the Plan shall be
borne by the Company.

      The foregoing is hereby acknowledged as being the UnumProvident
Corporation Non-Employee Director Compensation Plan of 1998 as adopted by the
Board of Directors of the Company on March 26, 1998, approved by the
stockholders of the Company on May 6, 1998, and amended by the Compensation
Committee on February 8, 2001.

                                             UNUMPROVIDENT CORPORATION

                                             By:
                                             Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]