Document:

Exhibit
4.7

OMNIBUS INSTRUMENT

WHEREAS, parties named herein desire to enter into
certain Program Documents, each such document dated as of the date specified in
this Omnibus Instrument, relating to the issuance by Protective Life Secured
Trust 2003-1 (the “Trust”) of Notes to investors under Protective Life
Insurance Company’s (“Protective Life”) secured notes program;

WHEREAS, if the Pricing Supplement indicates that the
Trust is a Delaware statutory trust, the Trust will be organized under and its
activities will be governed by (i) the provisions of the Statutory Trust
Agreement (set forth in Section A of this Omnibus Instrument), dated as of the
date of the Pricing Supplement (attached to this Omnibus Instrument as Annex A)
(the “Pricing Supplement”), by and between the parties thereto indicated
in Section I herein, and (ii) the certificate of trust of the Trust;

WHEREAS, if the Pricing Supplement indicates that the
Trust is a common law trust, the Trust will be organized under and its
activities will be governed by the provisions of the Common Law Trust Agreement
(set forth in Section A of this Omnibus Instrument), dated as of the date of
the Pricing Supplement, by and between the parties thereto indicated in Section
I herein;

WHEREAS, the Trust will be administered pursuant to
the provisions of the Administrative Services Agreement (set forth in Section B
of this Omnibus Instrument), dated as of the date of the Pricing Supplement, by
and between the parties thereto indicated in Section I herein;

WHEREAS, certain costs and expenses of the Trust and
the service providers to the Trust will be paid pursuant to the Expense and
Indemnity Agreement (set forth in Section C of this Omnibus Instrument), dated
as of the date of the Pricing Supplement, by and between the parties thereto
indicated in Section I herein;

WHEREAS, certain licensing arrangements between the
Trust and Protective Life will be governed pursuant to the provisions of the
License Agreement (set forth in Section D of this Omnibus Instrument), dated as
of the date of the Pricing Supplement, by and between the parties thereto
indicated in Section I herein;

WHEREAS, the Notes will be issued pursuant to the
Indenture (set forth in Section E of this Omnibus Instrument), dated as of the
Original Issue Date, by and between the parties thereto indicated in Section I
herein;

WHEREAS, if the Trust is issuing InterNotes® to retail
investors, then the sale of the Notes will be governed by the Selling Agent
Agreement (set forth in Section F of this

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Omnibus Instrument),
dated as of the date of the Pricing Supplement, by and between the parties
thereto indicated in Section I herein;

WHEREAS, if the Trust is issuing secured medium-term
notes to institutional investors, then the sale of the Notes will be governed
by the Distribution Agreement (set forth in Section G of this Omnibus
Instrument), dated as of the date of the Pricing Supplement, by and between the
parties thereto indicated in Section I herein; and

WHEREAS, certain agreements relating to the Notes and
the Funding Agreement are set forth in the Coordination Agreement (set forth in
Section H of this Omnibus Instrument), dated as of the date of the Pricing
Supplement, by and among the parties thereto indicated in Section I herein.

All capitalized terms used herein and not otherwise
defined will have the meanings set forth in the Indenture.

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SECTION A

Trust Agreement

Section A-1.          Delaware
Statutory Trust

If the Pricing Supplement indicates
that the Trust is a Delaware Statutory Trust, the following shall constitute
the Trust Agreement.

STATUTORY TRUST AGREEMENT 

by and among

AMACAR Pacific Corp., as Trust Beneficial Owner

and

Wilmington Trust Company, as Delaware Trustee 

THIS STATUTORY TRUST AGREEMENT, dated as of the date
of the Pricing Supplement, by and among AMACAR Pacific Corp., a Delaware
corporation (the “Trust Beneficial Owner”) and Wilmington Trust Company,
a Delaware banking corporation, as Delaware Trustee (the “Delaware Trustee”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the Trust Beneficial Owner and the Delaware
Trustee desire to authorize the issuance of a Trust Beneficial Interest and a
Series of Notes in connection with the entry into this Statutory Trust
Agreement;

WHEREAS, all things necessary to make this Statutory
Trust Agreement a valid and legally binding agreement of the Delaware Trustee
and the Administrator, enforceable in accordance with its terms, have been
done;

WHEREAS, the parties intend to provide for, among
other things, (i) the issuance and sale of the Notes (pursuant to
the Indenture and the applicable Program Distribution Agreement) and the Trust
Beneficial Interest, (ii) the use of the proceeds of the sale of
the Notes and Trust Beneficial Interest to acquire the Funding Agreements, and
(iii) all other actions deemed necessary or desirable in connection with
the transactions contemplated by this Statutory Trust Agreement; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Statutory Trust Terms, dated November 7, 2003,
and attached to the Omnibus Instrument as Exhibit A (the “Standard Statutory
Trust Terms”) and all capitalized terms 

 3
 

 

 

not otherwise defined herein (including the recitals
hereof) shall have the meaning set forth in the Standard Statutory Trust Terms
(the Standard Statutory Trust Terms and this Statutory Trust Agreement,
collectively, the “Trust Agreement”).

NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, each party hereby agrees as
follows:

ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements of the
Standard Statutory Trust Terms (except to the extent expressly modified herein)
are hereby incorporated herein by reference with the same force and effect as
though fully set forth herein.  To the
extent that the terms set forth in Article 2 of this Agreement are inconsistent
with the terms of the Standard Statutory Trust Terms, the terms set forth in
Article 2 herein shall apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Statutory Trust Agreement is included as Section A-1.

ARTICLE 2

Section 2.01  Name. 
The Trust created and governed by this Trust Agreement shall be the
trust specified in the Omnibus Instrument, as such name may be modified from
time to time by the Delaware Trustee following written notice to the Trust
Beneficial Owner.

Section 2.02  Initial Capital Contribution and Ownership.  The Trust Beneficial Owner has paid to, or to
an account at the direction of, the Delaware Trustee, on the date hereof, the
sum of $15 (or, if the Trust issues Notes at a discount, the product of $15 and
the issue price (expressed as a percentage of the original principal amount of
the Notes)).  The Delaware Trustee hereby
acknowledges receipt in trust from the Trust Beneficial Owner, as of the date
hereof, of the foregoing contribution, which shall be used along with the
proceeds from the sale of the Series of Notes to purchase one or more Funding
Agreements.  Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register by the Registrar in the name of the Trust Beneficial Owner, the Trust
Beneficial Owner shall be the sole beneficial owner of the Trust.

Section 2.03  Acknowledgment.  The Delaware Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in Section 2.07 of
the Standard Statutory Trust Terms incorporated herein.

Section 2.04  Additional Terms.  None

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Section 2.05  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Trust Agreement will enter into this Trust Agreement by executing the
Omnibus Instrument.

By executing the Omnibus Instrument, the Delaware
Trustee and the Administrator hereby agree that this Trust Agreement will
constitute a legal, valid and binding agreement between the Delaware Trustee
and the Administrator as of the date specified in the Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Trust Agreement will be as specified in the Omnibus
Instrument or Pricing Supplement as indicated herein.

Section 2.06  Counterparts.  This Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

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Section A-2.          Delaware
Common Law Trust

If the Pricing Supplement indicates
that the Trust is a Delaware Common Law Trust, the following shall constitute
the Trust Agreement.

COMMON LAW TRUST AGREEMENT 

by and among

AMACAR Pacific Corp., as Trust Beneficial Owner

and

Wilmington Trust Company, as Trustee

THIS COMMON LAW TRUST AGREEMENT, dated as of the date
of the Pricing Supplement, by and among AMACAR Pacific Corp., a Delaware
corporation (the “Trust Beneficial Owner”) and Wilmington Trust Company,
a Delaware banking corporation, as Trustee (the “Trustee”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the Trust Beneficial Owner and the Trustee
desire to authorize the issuance of a Trust Beneficial Interest and a Series of
Notes in connection with the entry into this Common Law Trust Agreement;

WHEREAS, all things necessary to make this Common Law
Trust Agreement a valid and legally binding agreement of the Trustee and the
Administrator, enforceable in accordance with its terms, have been done;

WHEREAS, the parties intend to provide for, among
other things, (i) the issuance and sale of the Notes (pursuant to
the Indenture and the applicable Program Distribution Agreement) and the Trust
Beneficial Interest, (ii) the use of the proceeds of the sale of
the Notes and Trust Beneficial Interest to acquire the Funding Agreements, and
(iii) all other actions deemed necessary or desirable in connection
with the transactions contemplated by this Common Law Trust Agreement; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Common Law Trust Terms, dated November 7,
2003, and attached to the Omnibus Instrument as Exhibit A (the “Standard
Common Law Trust Terms”) and all capitalized terms not otherwise defined
herein (including the recitals hereof) shall have the meaning set forth in the
Standard Common Law Trust Terms (the Standard Common Law Trust Terms and this
Common Law Trust Agreement, collectively, the “Trust Agreement”).

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NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, each party hereby agrees as
follows:

ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements of the
Standard Common Law Trust Terms (except to the extent expressly modified
herein) are hereby incorporated herein by reference with the same force and
effect as though fully set forth herein. 
To the extent that the terms set forth in Article 2 of this Agreement
are inconsistent with the terms of the Standard Common Law Trust Terms Trust
Agreement, the terms set forth in Article 2 herein shall apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Statutory Trust Agreement is included as Section A-2.

ARTICLE 2

Section 2.01  Name. 
The Trust created and governed by this Trust Agreement shall be the
trust specified in the Omnibus Instrument, as such name may be modified from
time to time by the Trustee following written notice to the Trust Beneficial
Owner.

Section 2.02  Initial Capital Contribution and Ownership.  The Trust Beneficial Owner has paid to, or to
an account at the direction of, the Trustee, on the date hereof, the sum of $15
(or, if the Trust issues Notes at a discount, the product of $15 and the issue
price (expressed as a percentage of the original principal amount of the
Notes)).  The Trustee hereby acknowledges
receipt in trust from the Trust Beneficial Owner, as of the date hereof, of the
foregoing contribution, which shall be used along with the proceeds from the
sale of the Series of Notes to purchase one or more Funding Agreements.  Upon the creation of the Trust and the
registration of the Trust Beneficial Interest in the Securities Register by the
Registrar in the name of the Trust Beneficial Owner, the Trust Beneficial Owner
shall be the sole beneficial owner of the Trust.

Section 2.03  Acknowledgment.  The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in Section 2.07 of
the Standard Common Law Trust Terms incorporated herein.

Section 2.04  Additional Terms.  None

Section 2.05  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Trust Agreement will enter into this Trust Agreement by executing the
Omnibus Instrument.

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By executing the Omnibus Instrument, the Trustee and
the Administrator hereby agree that this Trust Agreement will constitute a
legal, valid and binding agreement between the Trustee and the Administrator as
of the date specified in the Omnibus Instrument.

All terms relating to the Trust or the Series of
Notes  not otherwise included in this
Trust Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement as indicated herein.

Section 2.06  Counterparts.  This Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

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SECTION B

Administrative Services
Agreement

ADMINISTRATIVE
SERVICES AGREEMENT 

by and among

The Protective Life Secured Trust 

specified in the Omnibus Instrument

and

AMACAR Pacific Corp.,
 as Administrator 

THIS ADMINISTRATIVE SERVICES AGREEMENT, dated as of
the date of the Pricing Supplement, by and among the Protective Life Secured
Trust specified in the Omnibus Instrument (the “Trust”) and AMACAR
Pacific Corp., a Delaware corporation (the “Administrator”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the Trust has requested that the
Administrator provide advice and assistance to the Trust and perform various
services for the Trust;

WHEREAS, the Trust desires to avail itself of the
experience, advice and assistance of the Administrator and to have the
Administrator perform various financial, statistical, accounting and other
services for the Trust, and the Administrator is willing to furnish such
services on the terms and conditions herein set forth; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Administrative Services Terms, dated November
7, 2003, and attached to the Omnibus Instrument as Exhibit B (the “Standard
Administrative Services Terms”) and all capitalized terms not otherwise
defined herein (including the recitals hereof) shall have the meaning set forth
in the Standard Administrative Services Terms (the Standard Administrative Services
Terms and this Administrative Services Agreement, collectively, the “Administrative
Services Agreement”).

NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, each party hereby agrees as
follows:

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ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements of the
Standard Administrative Services Terms (except to the extent expressly modified
herein) are hereby incorporated herein by reference with the same force and
effect as though fully set forth herein. 
To the extent that the terms set forth in Article 2 of this Agreement
are inconsistent with the terms of the Standard Administrative Services Terms,
the terms set forth in Article 2 herein shall apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Administrative Services Agreement is included as
Section B.

ARTICLE 2

Section 2.01  Additional Terms.  None.

Section 2.02  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Administrative Services Agreement will enter into this Administrative
Services Agreement by executing the Omnibus Instrument.

By executing the Omnibus Instrument, Wilmington on
behalf of the Trust and the Administrator hereby agree that this Administrative
Services Agreement will constitute a legal, valid and binding agreement between
the Trust and the Administrator as of the date specified in the Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Administrative Services Agreement will be as
specified in the Omnibus Instrument or Pricing Supplement as indicated herein.

Section 2.03  Counterparts.  This Administrative Services Agreement,
through the Omnibus Instrument, may be executed in any number of counterparts,
each of which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

Section 2.04  Third Party Beneficiary.  The parties hereto acknowledge that
Wilmington shall be an express third party beneficiary to this Administrative
Services Agreement, entitled in its own name and on its own behalf to enforce
the provisions hereof against the Trust and the Administrator with respect to
obligations owed to Wilmington by either the Trust or the Administrator;
provided, however, that such right shall be valid only for so long as
Wilmington has any outstanding obligations or potential obligations under the
Trust Agreement.

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SECTION C

Expense and Indemnity
Agreement

EXPENSE AND INDEMNITY AGREEMENT

WHEREAS, in consideration of the Service Providers (as
defined in the Standard Expense and Indemnity Agreement Terms, dated November
7, 2003, and attached to the Omnibus Instrument as Exhibit C (the “Standard
Expense and Indemnity Agreement Terms”)) providing services to the Trust in
connection with the Program and pursuant to the Program Documents under which
the Service Providers will have certain duties and obligations, Protective Life
hereby agrees to the following compensation arrangements and terms of
indemnity; and

WHEREAS, the parties hereto desire to incorporate by
reference the Standard Expense and Indemnity Agreement Terms and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meaning set forth in the Standard Expense and Indemnity
Agreement Terms (the Standard Expense and Indemnity Agreement Terms and this
Expense and Indemnity Agreement, collectively, the “Expense and Indemnity
Agreement”).

NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, each party hereby agrees as
follows:

ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements of the
Standard Expense and Indemnity Terms, dated as of November 7, 2003, and
attached to the Omnibus Instrument as Exhibit C (except to the extent expressly
modified herein) are hereby incorporated herein by reference with the same
force and effect as though fully set forth herein.  To the extent that the terms set forth in
Article 2 of this Agreement are inconsistent with the terms of the Standard
Expense and Indemnity Terms, the terms set forth in Article 2 herein shall
apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Expense and Indemnity Agreement is included as Section
C.

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ARTICLE 2

Section 2.01  Additional Terms.  None

Section 2.02  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Expense and Indemnity Agreement will enter into this Expense and
Indemnity Agreement by executing the Omnibus Instrument.

By executing the Omnibus Instrument, each party hereto
agrees that this Expense and Indemnity Agreement will constitute a legal, valid
and binding agreement by and among such parties as of the date specified in the
Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Expense and Indemnity Agreement will be as specified
in the Omnibus Instrument or Pricing Supplement as indicated herein.

Section 2.03  Counterparts.  This Expense and Indemnity Agreement, through
the Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

 12
 

 

 

SECTION D

License Agreement

LICENSE AGREEMENT

This LICENSE AGREEMENT, dated as of the date of the
Pricing Supplement, is entered into between Protective Life Corporation (the “Licensor”),
a Delaware corporation with its principal place of business at 2801 Highway 280
South, Birmingham, Alabama 35223, and the Protective Life Secured Trust
specified in the Omnibus Instrument (the “Licensee”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, Licensor is the owner of certain trademarks
and service marks and registrations and pending applications therefore, and may
acquire additional trademarks and service marks in the future, all as defined
below;

WHEREAS, Licensee desires to use certain of Licensor’s
trademarks and service marks in connection with Licensee’s activities, as
described more fully below;

WHEREAS, Licensor and Licensee wish to formalize the
agreement between them regarding Licensee’s use of Licensor’s marks; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard License Agreement Terms, dated November 7,
2003, and attached to the Omnibus Instrument as Exhibit D (the “Standard
License Agreement Terms”) and all capitalized terms not otherwise defined
herein (including the recitals hereof) shall have the meaning set forth in the
Standard License Agreement Terms (the Standard License Agreement Terms and this
License Agreement, collectively, the “License Agreement”).

NOW THEREFORE, in consideration of the mutual promises
set forth in this License Agreement and other good and valuable consideration,
the sufficiency and receipt of which is hereby acknowledged, the parties agree
as follows:

ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements set
forth in the Standard License Agreement Terms (except to the extent expressly
modified herein) are hereby incorporated herein by reference with the same
force and effect as though fully set forth herein.  To the extent that the terms set forth in
Article 2 of 

 13
 

 

 

this Agreement are inconsistent with the terms of the Standard License
Agreement Terms, the terms set forth in Article 2 herein shall apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this License Agreement is included as Section D.

ARTICLE 2

Section 2.01  Additional Terms.  None

Section 2.02  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this License Agreement will enter into this License Agreement by executing
the Omnibus Instrument.

By executing the Omnibus Instrument, Licensor and the
Licensee hereby agree that this License Agreement will constitute a legal,
valid and binding agreement between Licensor and the Licensee as of the date
specified in the Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this License Agreement will be as specified in the
Omnibus Instrument or Pricing Supplement as indicated herein.

Section 2.03  Counterparts.  This License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

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SECTION E

Indenture

INDENTURE

This INDENTURE (the “Indenture”) is entered
into as of the Original Issue Date specified in the Pricing Supplement, by and
between the Protective Life Secured Trust specified in the Omnibus Instrument
(the “Trust”), and The Bank of New York, as indenture trustee (the “Indenture
Trustee”).

The Bank of New York in its capacity as Indenture
Trustee, hereby accepts its role as Registrar, Paying Agent, Transfer Agent and
Calculation Agent hereunder.

References herein to “Indenture Trustee,” “Registrar,”
“Transfer Agent,” “Paying Agent” or “Calculation Agent” shall include the
permitted successors and assigns of any such entity from time to time.

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the Trust has duly authorized the execution
and delivery of this Indenture to provide for the issuance of secured Notes;
and

WHEREAS, all things necessary to make this Indenture a
valid and legally binding agreement of the Trust and the other parties to this
Indenture, enforceable in accordance with its terms, have been done, and the
Trust proposes to do all things necessary to make the Notes, when executed by
the Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Indenture Terms dated as of November 7, 2003,
and attached to the Omnibus Instrument as Exhibit E (the “Standard  Indenture
Terms”) and all capitalized terms not otherwise defined herein (including
the recitals hereof) shall have the meaning set forth in the Standard Indenture
Terms (the Standard Indenture Terms and this Indenture, collectively, the “Indenture”);

NOW, THEREFORE, for and in consideration of the
premises and the purchase of the Notes by the Holders thereof, it is mutually
covenanted and agreed by the parties hereto as follows:

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ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements set
forth in the Standard Indenture Terms (except to the extent expressly modified
hereby) are hereby incorporated herein by reference (as if fully set forth
herein).  Should any portion of the
Standard Indenture Terms conflict with the terms of this Indenture, the terms
of this Indenture shall prevail. 
References herein to Articles, Sections or Exhibits shall refer
respectively to the articles, sections or exhibits of the Standard Indenture
Terms, unless otherwise expressly provided.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Indenture is included as Section E.

ARTICLE 2

Section 2.01  Agreement to be Bound.  Each of the Trust, the Indenture Trustee, the
Registrar, the Transfer Agent, the Paying Agent and the Calculation Agent
hereby agrees to be bound by all of the terms, provisions and agreements set
forth herein, with respect to all matters contemplated herein, including,
without limitation, those relating to the issuance of the below referenced
Notes.

Section 2.02  Designation of the Trust and the Notes.  The Trust created by the Trust Agreement and,
if such Trust is a statutory trust, the certificate of trust of the Trust, and
referred to in this Indenture is the Protective Life Secured Trust specified in
the Omnibus Instrument.  The Notes issued
by the Trust and governed by this Indenture shall be the Notes specified in the
Pricing Supplement.

Section 2.03  Additional Terms.  None.

Section 2.04  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Indenture will enter into this Indenture by executing the Omnibus
Instrument and the date of this Indenture will be the day and year specified
therein.

By executing the signature page thereto, the Indenture
Trustee and the Trust hereby agree that this Indenture will constitute a legal,
valid and binding agreement between the Indenture Trustee and the Trust as of
the Original Issue Date specified in the Pricing Supplement.

All terms relating to the Trust or the Notes not
otherwise included in this Indenture will be as specified in the Omnibus Instrument
or the Pricing Supplement, as indicated herein.

Section 2.05  Counterparts.  This Indenture, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be 

 16
 

 

 

deemed to be an original,
and all of which counterparts shall constitute one and the same instrument.

 17
 

 

 

SECTION F

Selling Agent Agreement

SELLING AGENT AGREEMENT

by and among

The Protective Life Secured Trust

specified in the Omnibus Instrument

and

Protective Life Insurance Company

and

The Agents specified in the Pricing Supplement

WHEREAS, the Protective Life Secured Trust specified
in the Omnibus Instrument desires to issue and sell the Notes specified in the
Pricing Supplement to the Purchasing Agent.

ARTICLE 1

Section 1.01  Incorporation by Reference.  All terms, provisions and agreements set
forth in the Standard Selling Agent Agreement Terms, dated as of November 7,
2003, and attached to the Omnibus Instrument as Exhibit F (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein.  To the extent that the terms set forth in
Article 2 of this Agreement are inconsistent with the terms of the Standard
Selling Agent Agreement Terms, the terms set forth in Article 2 herein shall
apply.

Section 1.02  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Selling Agent Agreement is included as Section F.

ARTICLE 2

Section 2.01  Purchase
of Notes.  The Agents specified in
this Pricing Supplement agree to purchase the Notes having the terms and in the
amounts specified in this Pricing Supplement.

Also, in connection with the purchase of the Notes
from the Trust by the Agents, the items specified in Schedule 1 to the Omnibus
Instrument will be delivered on the Original Issue Date.

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ARTICLE 3

Section 3.01  Additional Terms.  None.

Section 3.02  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Selling Agent Agreement will enter into this Selling Agent Agreement by
executing the Omnibus Instrument.

By executing the Omnibus Instrument, each party hereto
agrees that this Selling Agent Agreement will constitute a legal, valid and
binding agreement by and among the Trust, Protective Life Insurance Company and
the Agents specified in the Pricing Supplement as of the date specified in the
Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Selling Agent Agreement will be as specified in the
Omnibus Instrument or Pricing Supplement as indicated herein.

Section 3.03  Counterparts.  This Selling Agent Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

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SECTION G

Distribution Agreement

DISTRIBUTION AGREEMENT

by and among

The Protective Life Secured Trust

specified in the Omnibus Instrument

and

Protective Life Insurance Company

and

The Dealers specified in the Pricing Supplement

This Distribution Agreement (the “Distribution Agreement”), dated as
of the date specified in the Omnibus Instrument, by and among each dealer
specified in the Pricing Supplement (each, a “Dealer”), Protective Life Insurance Company, a Tennessee stock
life insurance company (the “Company”)
and the Protective Life Secured Trust specified in the Omnibus Instrument.

WHEREAS, the Trust has entered into the Indenture (the
“Indenture”), dated as of
the date specified in the Omnibus Instrument, by and between the Trust and The
Bank of New York, as indenture trustee (the “Indenture Trustee”) to provide for the issuance by the Trust
of the secured medium-term notes specified in the Pricing Supplement (the “Notes”); and

WHEREAS, all things necessary to make this
Distribution Agreement a valid and legally binding agreement of the Trust and
the other parties to this Distribution Agreement, enforceable in accordance
with its terms, have been done, and the Trust proposes to do all things necessary
to make the Notes, when executed by the Trust and authenticated and delivered
pursuant hereto and the Indenture, valid and legally binding obligations of the
Trust as hereinafter provided; and

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Distribution Agreement Terms dated as of
November 7, 2003 (the “Standard
Distribution Agreement Terms”) and all capitalized terms not
otherwise defined herein (including the recitals hereof) shall have the meaning
set forth in the Standard Distribution Agreement Terms (the Standard
Distribution Agreement Terms and this Distribution Agreement, collectively, the
“Distribution Agreement”).

 20
 

 

 

NOW, THEREFORE, for and in consideration of the
premises and the issuance of the Notes by the Trust, it is mutually agreed by
the parties hereto as follows:

ARTICLE 1

Section 1.01  Agreement to be Bound.  The Trust and each Dealer hereby agrees to be
bound by all of the terms, provisions and agreements set forth herein, with
respect to all matters contemplated herein, including, without limitation,
those relating to the issuance of the below-referenced Notes.

Section 1.02  Incorporation by Reference.  All terms, provisions and agreements set
forth in the Standard Distribution Agreement Terms and attached to the Omnibus
Instrument as Exhibit G (except to the extent expressly modified hereby)
are hereby incorporated herein by reference (as if fully set forth
herein).  Should any portion of the
Standard Distribution Agreement Terms conflict with the terms of this
Distribution Agreement, the terms of this Distribution Agreement shall
prevail.  References herein to Sections
or Exhibits shall refer respectively to the sections or exhibits of the
Standard Distribution Agreement Terms, unless otherwise expressly provided.

Section 1.03  Designation of the Trust and the Notes.  The Trust created by the Trust Agreement and,
if such Trust is a Delaware statutory trust, the certificate of trust of the
Trust, and referred to in this Distribution Agreement is the Protective Life
Secured Trust specified in the Omnibus Instrument.  The term Trust refers to the Protective Life
Secured Trust specified in this Omnibus Instrument.  The Series of Notes issued by the Trust
pursuant to the Distribution Agreement shall be the Series of notes specified
in the Pricing Supplement.  The term
Notes refers to the notes of this Series of Notes.

Section 1.04  Additional Terms.  Notwithstanding Section 3(a)(i) of the
Standard Distribution Agreement Terms, the parties to this Distribution
Agreement agree to file the Pricing Supplement pursuant to the appropriate
subsection under Rule 424(b) of the Securities Act of 1933, as amended.

Section 1.05  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Distribution Agreement is included as Section G.

ARTICLE 2

Section 2.01  Purchase/Solicitation of Purchases of
Notes.

(a)           If
specified in the Pricing Supplement, the Notes are being purchased by the
Dealer(s) as principal.

 21
 

 

 

(1)           If
the Notes are to be purchased by the Dealer(s) as principal, the Dealer(s)
specified in the Pricing Supplement agree to purchase the Notes having the
terms and in the amounts specified in the Pricing Supplement.

(2)           Also,
in connection with the purchase of Notes from the Trust by the Dealer(s) as
principal, the items specified in Schedule 1 to the Omnibus Instrument will be
delivered on the Original Issue Date.

(b)           If
specified in the Pricing Supplement, the Dealer(s) will be acting as agent.

(1)           If
the Dealer(s) are to solicit the purchase of the Notes acting as agents, the
Dealer(s) will solicit the purchase of Notes pursuant to Section 1(d) of
the Distribution Agreement.

Section 2.02  Funding Agreement.  On the Original Issue Date set forth above,
the Company will issue to the Trust the Funding Agreement(s) identified by
number in the Pricing Supplement.

Section 2.03  Dealer Notice Information.  As specified in Schedule 1 to the Omnibus
Instrument.

ARTICLE 3

Section 3.01  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Distribution Agreement will enter into this Distribution Agreement by
executing the Omnibus Instrument.

By executing the Omnibus Instrument, each party hereto
agrees that this Distribution Agreement will constitute a legal, valid and
binding agreement by and among the Trust, Protective Life Insurance Company and
the Dealers specified in the Pricing Supplement as of the date specified in the
Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Distribution Agreement will be as specified in the
Omnibus Instrument or Pricing Supplement as indicated herein.

Section 3.02  Counterparts.  This Distribution Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

 22
 

 

 

SECTION H

COORDINATION AGREEMENT

This Coordination Agreement, dated as of the date of
the Original Issue Date, is entered into by and among Protective Life, the
Trust and the Indenture Trustee.

W  I
T  N  E  S  S  E  T  H:

WHEREAS, the Trust will
enter into the Funding Agreement with Protective Life dated as of the date of
the Pricing Supplement;

WHEREAS, the Dealer(s) have agreed to sell the Notes
in accordance with the Registration Statement; and

WHEREAS, the Trust intends to issue the Notes in
accordance with the Indenture and to transfer the Funding Agreement to the
Indenture Trustee in accordance with the Indenture to secure payment of the Notes;

NOW, THEREFORE, to give effect to the agreements and
arrangements established under the Distribution Agreement or Selling Agent
Agreement, as applicable, the Trust Agreement, the Indenture, and the Notes,
and in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

Section 1.01  Delivery of the Funding Agreement.  The Trust hereby authorizes the Indenture
Trustee to receive the Funding Agreement from Protective Life pursuant to the
Assignment of the Funding Agreement, to be entered into on the Original Issue
Date, as specified in the Pricing Supplement and included in the closing
instrument dated as of the Original Issue Date set forth in the Pricing
Supplement (the “Closing Instrument”).

Section 1.02  Issuance and Purchase of the Notes.

(a)           Delivery
of the Funding Agreement to the Indenture Trustee pursuant to the Assignment of
the Funding Agreement shall be confirmation of payment by the Trust for the
Funding Agreement.

(b)           The
Trust hereby directs the Indenture Trustee, upon receipt of the Funding
Agreement pursuant to the Assignment of the Funding Agreement, (i) to
authenticate the certificates representing the Notes (the “Notes
Certificates”) in accordance with the Indenture and (ii) to (A)
deliver each relevant Notes Certificate to 

 23
 

 

 

the clearing system or systems identified in each such
Notes Certificate, or to the nominee of such clearing system, for credit to
such accounts as the Dealer(s) may direct, or (B) deliver each relevant
Notes Certificate to the purchasers thereof as identified by the Dealer (s).

Section 1.03  Definitions.  “Omnibus Instrument” means the Omnibus
Instrument in which this Coordination Agreement is included as Section H.

ARTICLE 2

Section 2.01  Directions Regarding Periodic Payments.  As registered owner of the Funding Agreement
as collateral securing payments on the Notes, the Indenture Trustee will
receive payments on the Funding Agreement on behalf of the Trust.  The Trust hereby directs the Indenture
Trustee to use such funds to make payments on behalf of the Trust pursuant to
the Trust Agreement and the Indenture.

Section 2.02  Maturity of the Funding Agreement.  Upon the maturity of the Funding Agreement
and the return of funds thereunder, the Trust hereby directs the Indenture
Trustee to set aside from such funds an amount sufficient for the repayment of
the outstanding principal on the Notes when due.

ARTICLE 3

Section 3.01  No Additional Liability.  Nothing in this agreement shall impose any
liability or obligation on the part of any party to this agreement to make any
payment or disbursement in addition to any liability or obligation such party
has under the Program Documents, except to the extent that a party has actually
received funds which it is obligated to disburse pursuant to this agreement.

Section 3.02  No Conflict.  This agreement is intended to be in
furtherance of the agreements reflected in the documents related to the Program
Documents, and not in conflict.  To the
extent that a provision of this agreement conflicts with the provisions of one
or more Program Documents, the provisions of such documents shall govern.

Section 3.03  Governing Law.  This agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

Section 3.04  Severability.  If any provision in this agreement shall be
invalid, illegal or unenforceable, such provisions shall be deemed severable
from the remaining provisions of this agreement and shall in no way affect the
validity or enforceability of such other provisions of this agreement.

 24
 

 

 

Section 3.05  Counterparts.  This agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of
which shall constitute but one and the same instrument.

Section 3.06  Notices.  All demands, notices and communications under
this agreement shall be in writing and shall be deemed to have been duly given
upon receipt at the addresses set forth below:

if to the Trust, Indenture Trustee or Protective Life,
as specified in the Expense and Indemnity Agreement or at such other address as
shall be designated by any such party in a written notice to the other parties.

ARTICLE 4

Section 4.01  Omnibus Instrument; Execution and
Incorporation of Terms.  The parties
to this Distribution Agreement will enter into this Coordination Agreement by
executing the Omnibus Instrument.

By executing the Omnibus Instrument, each party hereto
agrees that this Coordination Agreement will constitute a legal, valid and
binding agreement by and among the Trust, Protective Life Insurance Company and
the Indenture Trustee as of the date specified in the Omnibus Instrument.

All terms relating to the Trust or the Notes not
otherwise included in this Coordination Agreement will be as specified in the
Omnibus Instrument or Pricing Supplement as indicated herein.

Section 4.02  Counterparts.  This Distribution Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

 25
 

 

 

SECTION I

Miscellaneous and
Execution Pages

Notwithstanding any other provisions of this Omnibus
Instrument, no amendment to this Omnibus Instrument may be made if such
amendment would cause the Trust not to be treated as a grantor trust for U.S.
federal income tax purposes.

This Omnibus Instrument may be executed by each of the
parties hereto in any number of counterparts, and by each of the parties hereto
on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.  Facsimile signatures shall be deemed original
signatures.

Each signatory, by its execution hereof, does hereby
become a party to each of the agreements identified for such party as of the
date specified in such agreements.

IN WITNESS WHEREOF, the undersigned have executed this
Omnibus Instrument.

	
  

  	
  PROTECTIVE LIFE CORPORATION
  (in executing below agrees and becomes a party to the License Agreement set
  forth in Section D herein).

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Judy Wilson

  	
   

  
	
   

  	
   

  	
  Name: Judy Wilson

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
  PROTECTIVE LIFE
  INSURANCE COMPANY (in executing below agrees and becomes a party to (i)
  the Expense and Indemnity Agreement set forth in Section C herein, (ii)
  if the Trust is issuing InterNotes® to retail investors, the Selling Agent
  Agreement set forth in Section F herein, (iii) if the Trust is issuing
  secured medium-term notes to institutional investors, the Distribution
  Agreement set forth in Section G herein and (iv) the Coordination
  Agreement set forth in Section H herein).

  

 

 26
 

 

 

	
  

  	
  By:

  	
  /s/ Judy Wilson

  	
   

  
	
   

  	
   

  	
  Name: Judy Wilson

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
  PROTECTIVE LIFE
  SECURED TRUST specified in the Omnibus Instrument (in executing below
  agreement and becomes a party to (i) the Administrative Services
  Agreement set forth in Section B herein, (ii) the Expense and
  Indemnity Agreement set forth in Section C herein, (iii) the License
  Agreement set forth in Section D herein, (iv) the Indenture set
  forth in Section E herein (v) if the Trust is issuing InterNotes®
  to retail investors, the Selling Agent Agreement set forth in Section F
  herein, (vi) if the Trust is issuing secured medium-term notes to
  institutional investors, the Distribution Agreement set forth in Section G
  herein and (vii) the Coordination Agreement set forth in Section
  H herein).

  
	
   

  	
   

  
	
   

  	
  By: Wilmington
  Trust Company, solely in its capacity as trustee of the Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Name:  Janel
  R. Havrilla

  
	
   

  	
   

  	
  Title: Financial Services Officer

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY (in executing below agrees and becomes a party to (i)(a)
  if the Trust is a Delaware statutory trust, the Statutory Trust Agreement set
  forth in Section A-1 herein as Delaware Trustee or (b) if the Trust is
  a Delaware common law trust, the Common Law Trust Agreement set forth in
  Section A-2 herein as trustee and (ii) the Expense and Indemnity Agreement
  set forth in Section C herein).

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Name: Janel R. Havrilla

  	
   

  
	
   

  	
   

  	
  Title: Financial Services Officer

  

 

 27
 

 

 

	
  

  	
  AMACAR PACIFIC
  CORP. (in executing below agrees and becomes a party to (i) the
  Statutory Trust Agreement or Common Law Trust Agreement set forth in Sections
  A-1 and A-2, respectively, as the case may be, as Trust Beneficial Owner, (ii)
  the Administrative Services Agreement, set forth in Section B herein as
  Administrator and (iii) the Expense and Indemnity Agreement as set
  forth in Section C herein).

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas K. Johnson

  	
   

  
	
   

  	
   

  	
  Name: Douglas K. Johnson

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK (in executing below agrees and becomes a party to (i) the
  Indenture set forth in Section E herein in its capacity as Indenture Trustee,
  Registrar, Transfer Agent, Paying Agent and Calculation Agent, (ii) 
  the Expense and Indemnity Agreement set forth in Section C herein and (iii)
  the Coordination Agreement set forth in Section H herein).

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andres E. Serrano

  	
   

  
	
   

  	
   

  	
  Name: Andres E. Serrano

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS
  INC. (in executing below agrees and becomes a party to the Distribution
  Agreement set forth in Section G herein).

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin Goldberg

  	
   

  
	
   

  	
   

  	
  Name: Martin Goldberg

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 28

 

EXHIBIT A

Standard Statutory Trust Terms/Standard
Common Law Trust Terms

 

 

Section A-1. Standard Statutory Trust
Terms

 

 

STANDARD STATUTORY TRUST TERMS

 

with respect to

 

PROTECTIVE LIFE SECURED TRUSTS

 

Dated as of November 7, 2003

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01 Definitions

  	
   

  	
  1

  
	
  Section 1.02 Usage of Terms

  	
   

  	
  5

  
	
  Section 1.03 Section References

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  CREATION OF TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01 Name of the Trust

  	
   

  	
  5

  
	
  Section 2.02 Office of the Delaware Trustee; Principal Place of
  Business

  	
   

  	
  5

  
	
  Section 2.03 Statutory Trust

  	
   

  	
  5

  
	
  Section 2.04 Trust Beneficial Interest

  	
   

  	
  5

  
	
  Section 2.05 Issuance of the Series of Notes

  	
   

  	
  5

  
	
  Section 2.06 Acquisition of Funding Agreements

  	
   

  	
  6

  
	
  Section 2.07 Security Interest in the Collateral

  	
   

  	
  6

  
	
  Section 2.08 Purposes of the Trust

  	
   

  	
  6

  
	
  Section 2.09 Title to Collateral

  	
   

  	
  6

  
	
  Section 2.10 Payment of Trust Expenses

  	
   

  	
  6

  
	
  Section 2.11 Liability

  	
   

  	
  6

  
	
  Section 2.12 Income Tax Treatment; Tax Returns and Reports.

  	
   

  	
  6

  
	
  Section 2.13 Situs of Trust

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  PAYMENT ACCOUNTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01 Payment Accounts.

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  TRUST SECURITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01 Initial Ownership

  	
   

  	
  8

  
	
  Section 4.02 Notes.

  	
   

  	
  8

  
	
  Section 4.03 Registration of Transfer of Trust Beneficial
  Interest.

  	
   

  	
  8

  
	
  Section 4.04 Persons Deemed Holders of Trust Securities

  	
   

  	
  8

  
	
  Section 4.05 Maintenance of Office

  	
   

  	
  8

  
	
  Section 4.06 Ownership of the Trust Beneficial Interest

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01 Delaware Trustee

  	
   

  	
  8

  
	
  Section 5.02 Trust Beneficial Owner

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  DELAWARE TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01 General Authority.

  	
   

  	
  10

  
	
  Section 6.02 General Duties

  	
   

  	
  13

  
	
  Section 6.03 Specific Duties.

  	
   

  	
  13

  
	
  Section 6.04 Acceptance of Trust and Duties; Limitation on
  Liability

  	
   

  	
  14

  
	
  Section 6.05 Reliance; Advice of Counsel.

  	
   

  	
  16

  
	
  Section 6.06 Delegation of Authorities and Duties

  	
   

  	
  17

  
	
   

  	
   

  	
   

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  DISSOLUTION, LIQUIDATION AND TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01 Dissolution Upon the Expiration Date

  	
   

  	
  17

  
	
  Section 7.02 Termination of Agreement

  	
   

  	
  17

  
	
  Section 7.03 Liquidation

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  SUCCESSOR AND ADDITIONAL DELAWARE TRUSTEES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01 Eligibility Requirements for the Delaware Trustee

  	
   

  	
  18

  
	
  Section 8.02 Resignation or Removal of the Delaware Trustee

  	
   

  	
  18

  
	
  Section 8.03 Successor Delaware Trustee

  	
   

  	
  18

  
	
  Section 8.04 Merger or Consolidation of Delaware Trustee

  	
   

  	
  19

  
	
  Section 8.05 Appointment of Co-Delaware Trustee or Separate
  Delaware Trustee.

  	
   

  	
  19

  
	
  Section 8.06 Delaware Trustee May Own Notes

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  VOTING; ACTS OF SECURITYHOLDERS; MEETINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01 Limitations on Voting Rights

  	
   

  	
  20

  
	
  Section 9.02 Meetings of the Trust Beneficial Owner

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  MISCELLANEOUS PROVISIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01 Limitation on Rights of Securityholders.

  	
   

  	
  20

  
	
  Section 10.02 Amendment.

  	
   

  	
  21

  
	
  Section 10.03 Notice

  	
   

  	
  22

  
	
  Section 10.04 No Recourse

  	
   

  	
  22

  
	
  Section 10.05 No Petition

  	
   

  	
  23

  
	
  Section 10.06 Governing Law

  	
   

  	
  23

  
	
  Section 10.07 Severability

  	
   

  	
  23

  
	
  Section 10.08 Trust Securities Nonassessable and Fully Paid

  	
   

  	
  23

  
	
  Section 10.09 Third-Party Beneficiaries

  	
   

  	
  23

  

 

ii

 

This document constitutes the Standard Statutory Trust Terms, dated as
of November 7, 2003, that may be incorporated by reference in one or
more Statutory Trust Agreements (included in Section A
of the Omnibus Instrument, as defined below) between Wilmington Trust Company,
a Delaware banking corporation, as Delaware trustee, (the “Delaware Trustee”), and AMACAR Pacific
Corporation, a Delaware corporation (as “Administrator”
and “Trust Beneficial Owner”).

 

These Standard Statutory Trust Terms shall be of no force and effect
unless and until incorporated by reference in, and then only to the extent not
modified by, a Statutory Trust Agreement.

 

The following terms and provisions shall govern the activities of each
Delaware statutory trust created under the Program (as defined below) subject
to contrary terms and provisions expressly adopted in any Statutory Trust
Agreement which contrary terms shall be controlling.

 

W I T N E S S E T H:

 

WHEREAS, the Delaware Trustee and the Trust Beneficial Owner desire to
establish a statutory trust organized pursuant to the Delaware Statutory Trust
Act (as defined below) for the purpose of issuing Notes (as defined below) to
investors which will be secured, and payments with respect to which will be
funded, solely by the assets held in the Trust (as defined below), the proceeds
of which will be used to purchase Funding Agreements (as defined below) issued
from time to time by Protective Life (as defined below).

 

NOW, THEREFORE, it being the intention of the parties hereto that the
Trust constitute a statutory trust under the Delaware Statutory Trust Act and
that this Agreement constitute the governing instrument of such statutory
trust, the Delaware Trustee and the Trust Beneficial Owner agree as follows:

 

ARTICLE 1

Definitions

 

Section 1.01 Definitions.
The following terms have the meanings set forth below:

 

“Administrative Services Agreement”
means that certain Administrative Services Agreement, dated as of the date
specified in the Omnibus Instrument, between the Administrator and the Delaware
Trustee, on behalf of the Trust, as the same may be amended, modified or
supplemented from time to time.

 

“Administrator” means the
party named as such in the preamble to this Agreement, in its capacity as the
sole administrator of the Trust pursuant to the Administrative Services
Agreement, and shall also include its permitted successors and assigns.

 

“Affiliate” means, as
applied to any Person, any other Person directly or indirectly controlling,
controlled by or under common control with, that Person and, in the case of an
individual, any spouse or other member of that individual’s immediate family.
For the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control
with”), as applied to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities, by contract or
otherwise.

 

“Agreement” means that
certain Statutory Trust Agreement in substantially the same form included
in Section A of the Omnibus
Instrument, as amended, modified or supplemented from time to time, that
incorporates by reference these Standard Statutory Trust Terms.

 

“Business Day” has the
meaning specified in the Indenture.

 

“Calculation Agent” has
the meaning set forth in the Indenture.

 

1

 

“Certificate of Trust”
means the Certificate of Trust of the Trust as filed with the Secretary of
State of the State of Delaware.

 

“Code” means the Internal
Revenue Code of 1986, as amended, including any successor or amendatory
statutes and any applicable rules, regulations, notices or orders promulgated
thereunder.

 

“Collateral” means, with
respect to the Series of Notes, the right, title and interest of the Trust
in and to (a) the Funding Agreements held in the Trust, (b) all
proceeds of the Funding Agreements and all amounts and instruments on deposit
from time to time in the Collection Account, (c) all books and records
pertaining to the Funding Agreements, and (d) all rights of the Trust
pertaining to the foregoing.

 

“Collection Account” has
the meaning set forth in the Indenture.

 

“Commission” means the
Securities and Exchange Commission or any successor body performing such duties
of the Commission.

 

“Contingent Obligation”
has the meaning set forth in the Indenture.

 

“Corporate Trust Office”
means the principal office of the Delaware Trustee located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001.

 

“Delaware Statutory Trust Act”
means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. (§) 3801, et seq., as amended from time to time.

 

“Delaware Trustee” means
the party named as such in the preamble to this Agreement and shall also
include its permitted successors and assigns, or any successor Delaware Trustee
appointed as herein provided, acting not in its individual capacity but solely
as Delaware Trustee under this Agreement. If there shall be at any time more
than one Delaware Trustee hereunder, “Delaware Trustee” shall mean each such
Delaware Trustee.

 

“DTC” means The Depository
Trust Company and its successors and assigns.

 

“Expense and Indemnity Agreement”
means that certain Expense and Indemnity Agreement, dated as of the date
specified in the Omnibus Instrument, by and among Protective Life and each of
the Delaware Trustee, on behalf of the Trust and itself, the Indenture Trustee
and the Administrator and any service provider that may become a party to
such agreement from time to time, as the same may be amended, modified or
supplemented from time to time.

 

“Funding Agreement” means
that certain funding agreement (or funding agreements) identified in the
Pricing Supplement by number, entered into by and between Protective Life and
the Trust and subsequently pledged and collaterally assigned to the Indenture
Trustee for the benefit of the holders of the Series of Notes, as it may be
modified, restated, replaced, supplemented or otherwise amended from time to
time in accordance with the terms thereof.

 

“Funding Agreement Event of Default”
means an “Event of Default” as
defined in the Funding Agreement.

 

“Holder” has the meaning
set forth in the Indenture.

 

“Indebtedness” has the
meaning set forth in the Indenture.

 

“Indenture” means that
certain Indenture dated as of the date specified in the Omnibus Instrument,
between the Trust and the Indenture Trustee, as the same may at any time
be amended, modified or supplemented from time to time.

 

“Indenture Trustee” means
the party named as such in the preamble to the Indenture and, subject to the
provisions of Article 8 of the Indenture, shall also include its
successors and assigns as Indenture Trustee thereunder.

 

2

 

“Investment Company Act”
means the Investment Company Act of 1940, as amended, as it may be amended
or supplemented from time to time, and any successor statute thereto, and the
rules, regulations and published interpretations of the Commission promulgated
thereunder from time to time.

 

“Issuance Date” has the
meaning specified in the Pricing Supplement.

 

“License Agreement” means
that certain License Agreement, dated as of the date specified in the Omnibus
Instrument, between the Delaware Trustee, on behalf of the Trust and Protective
Life Corporation, as the same may be amended, modified or supplemented
from time to time.

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including without
limitation any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the UCC or
comparable law of any jurisdiction).

 

“Note” has the meaning
specified in the Indenture and “Notes”
means the secured notes of the Trust issued pursuant to the Indenture.

 

“Omnibus Instrument”
means the omnibus instrument pursuant to which certain Program Documents are
executed and the Trust is established.

 

“Paying Agent” has the
meaning set forth in the Indenture.

 

“Payment Account” means
each segregated non-interest-bearing corporate trust account for the Trust
maintained by the Delaware Trustee in its trust department in which all amounts
paid to the Delaware Trustee in respect of the Collateral will be held and from
which the Delaware Trustee shall make payments pursuant to Section 3.01(b) and Article 7 hereof, to the extent such
amounts are paid to the Delaware Trustee and deposited in the Payment Account.

 

“Person” means any
natural person, corporation, limited partnership, general partnership, joint
stock company, joint venture, association, company, limited liability company,
trust (including any beneficiary thereof), bank, trust company, land trust,
business trust, statutory trust or other organization, whether or not a legal
entity, and governments and agencies and political subdivisions thereof.

 

“Pricing Supplement”
means, the pricing supplement attached to the Omnibus Instrument as Exhibit G
as prepared by the Trust, in consultation with Protective Life, in connection
with the issuance by the Trust of its Series of Notes and agreed to by
Protective Life, the Trust and the relevant dealers or agents under the
relevant Program Distribution Agreement, as such Pricing Supplement may be
amended, modified, supplemented or replaced from time to time.

 

“Program” has the meaning
set forth in the Indenture.

 

“Program Distribution Agreements”
means, with respect to the Series of Notes, (a) that certain
Distribution Agreement, by and among the Trust, Protective Life and the dealers
named therein relating to the issuance and sale of the Trust’s Notes under the
Secured Medium-Term Notes Program, as the same may be amended, modified or
supplemented or (b) that certain Selling Agent Agreement, by and among the
Trust, Protective Life and the agents named therein relating to the issuance
and sale of the Trust’s Notes under the InterNotes® Program, as the same may be
amended, modified or supplemented.

 

“Program Documents” means
each Note, the Omnibus Instrument, the Indenture, this Agreement, the
Administrative Services Agreement, the License Agreement, the Expense and
Indemnity

 

3

 

Agreement, the relevant Program Distribution Agreement, the Funding
Agreements and any other documents or instruments entered into by, or with
respect to, or on behalf of, the Trust.

 

“Protective Life” means
Protective Life Insurance Company, a life insurance company organized and licensed
under the laws of the State of Tennessee, or any successor thereto.

 

“Ratings Agencies” means
Moody’s Investors Services, Inc., Standard & Poor’s Ratings
Services, a Division of The McGraw-Hill Companies, Inc., and any other
rating agency which provides a rating for any Notes issued by the Trust.

 

“Registrar” has the
meaning specified in Section 4.03.

 

“Register” has the
meaning set forth in the Indenture.

 

“SEC Documents” means (a) any
registration statement, including any preliminary prospectus or prospectus
supplement thereto and the exhibits included therein, any pre-effective or
post-effective amendments thereto and any registration statements filed
thereafter under the Securities Act, relating to the registration under the
Securities Act of the Series of Notes and the Funding Agreements, (b) any
Pricing Supplement relating to the Series of Notes and (c) any
documents, filings or forms required to be filed by the Trust under the
Securities Exchange Act of 1934, as amended, or the Trust Indenture Act, or any
securities laws, rules or regulations of any state or any rules or
regulations of any national securities exchange or market quotation dealer
system or the National Association of Securities Dealers, Inc.

 

“Secretary of State”
means the Secretary of State of the State of Delaware.

 

“Securities Act” means
the Securities Act of 1933, as it may be amended or supplemented from time
to time, and any successor statute thereto, and the rules, regulations and
published interpretations of the Commission promulgated thereunder from time to
time.

 

“Securities Register” has
the meaning specified in Section 4.03.

 

“Securityholder” means
each Person in whose name any Trust Security is registered in the Securities
Register or Register.

 

“Series of Notes”
means the series of Notes issued by the Trust.

 

“Standard Statutory Trust Terms”
means this document, the Standard Statutory Trust Terms.

 

“Standing Order” has the
meaning set forth in Section 3.01(d) of these Standard Statutory
Trust Terms.

 

“Transfer Agent” has the
meaning specified in the Indenture.

 

“Trust” means the
Protective Life Secured Trust specified in the Omnibus Instrument, together
with its permitted successors and assigns.

 

“Trust Beneficial Interest”
means the undivided beneficial interest in the assets held in the Trust, having
such rights as provided for herein.

 

“Trust Beneficial Owner”
means the Person identified as the “Trust Beneficial Owner” in the preamble to
this Agreement, in its capacity as the sole beneficial owner of the Trust.

 

“Trust Expenses” means
any liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to the Trust.

 

“Trust Expiration Date”
means the date specified in the Pricing Supplement or such earlier date as all
of the outstanding Notes of the Series of Notes are redeemed in full by
the Trust.

 

4

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as it may be amended or
supplemented from time to time, and any successor statute thereto, and the
rules, regulations and published interpretations of the Commission promulgated
thereunder from time to time.

 

“Trust Security” means a
Note or the Trust Beneficial Interest.

 

“UCC” means the Uniform Commercial
Code, as from time to time in effect in the State of New York; provided that, with respect to the
perfection, effect of perfection or non-perfection, or priority of any security
interest in the Collateral, “UCC” shall mean the applicable jurisdiction whose
law governs such perfection, non-perfection or priority.

 

Section 1.02 Usage of Terms.
With respect to all terms used in this Agreement, the singular includes the
plural and the plural the singular; words importing any gender include the
other genders; references to “writing” include printing, typing, lithography,
facsimile, electronic transmissions and other means of reproducing words in a
visible form; references to agreements and other contractual instruments
include all subsequent amendments hereto or changes herein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
terms “include” or “including” mean “include without limitation” or “including
without limitation.”

 

Section 1.03 Section References.
All references to Articles, sections, paragraphs, subsections, exhibits and
schedules shall be to such portions of these Standard Statutory Trust Terms
unless otherwise specified.

 

ARTICLE 2

Creation of Trust

 

Section 2.01 Name of the Trust.
The Trust created under this Agreement shall have the name specified in the
Omnibus Instrument. The Trust’s activities shall be conducted under the name of
the Trust.

 

Section 2.02 Office of the
Delaware Trustee; Principal Place of Business. The principal office
of the Trust shall be in care of the Delaware Trustee at the Corporate Trust
Office, or such other address in the State of Delaware as the Delaware Trustee may designate
by written notice to the Trust Beneficial Owner, the Indenture Trustee, the
Administrator and the Ratings Agencies.

 

Section 2.03 Statutory Trust.
It is the intention of the parties hereto that the Trust constitute a statutory
trust organized under the Delaware Statutory Trust Act and that this Agreement
constitute the governing instrument of the Trust. Pursuant to Section 3810
of the Delaware Statutory Trust Act, the Delaware Trustee shall file a
Certificate of Trust with the Delaware Secretary of State to form the
Trust. The parties hereto hereby appoint the Delaware Trustee as trustee of the
Trust, to have all rights, powers and duties set forth herein and in accordance
with the applicable law with respect to accomplishing the purposes of the
Trust.

 

Section 2.04 Trust Beneficial
Interest. Contemporaneously with the execution and delivery of this
Agreement, the Delaware Trustee, on behalf of the Trust, shall cause the Trust
Beneficial Owner to be recorded as the registered owner of the Trust Beneficial
Interest on the Trust’s Securities Register, against payment of $15 (or, if the
Trust issues Notes at a discount, the product of $15 and the issue price
(expressed as a percentage of the original principal amount of the Notes)) by
the Trust Beneficial Owner to, or to an account at the direction of, the
Delaware Trustee.

 

Section 2.05 Issuance of the Series of
Notes. Contemporaneously with the execution and delivery of this
Agreement, the Trust shall, in accordance with the Indenture, issue and deliver
or cause to be issued and delivered the aggregate principal amount of the Series of
Notes specified in the related Pricing Supplement or supplement to the
Indenture against payment therefor. The Holders of the

 

5

 

Series of Notes shall only have a right to receive payments from
the Collateral as described in the Indenture and shall have no right to receive
payments under the assets held in any other trust organized under the Program.

 

Section 2.06 Acquisition of
Funding Agreements. Contemporaneously with the issuance and delivery
of the Series of Notes, the Trust shall acquire the Funding Agreements.

 

Section 2.07 Security Interest
in the Collateral. Contemporaneously with the issuance and delivery
of the Series of Notes, pursuant to the Indenture, the Trust shall collaterally
assign and grant to the Indenture Trustee, for the benefit of the Holders of
such Notes, a first priority perfected security interest in and to the
Collateral, including, without limitation, Funding Agreements purchased by the
Trust.

 

Section 2.08 Purposes of the
Trust. The exclusive purposes and functions of the Trust are (a) to
issue and sell the Notes and the Trust Beneficial Interest, (b) to use the
proceeds of the sale of the Notes and the Trust Beneficial Interest to acquire
one or more Funding Agreements, (c) to pay amounts due in respect of the
Notes and the Trust Beneficial Interest, (d) to enter into the agreements
and to take such actions as the Delaware Trustee has the power and authority to
take pursuant to Section 6.01,
as applicable, and (e) to engage in those activities necessary, advisable
or incidental thereto (such as registering the transfer of the Trust
Securities).

 

Section 2.09 Title to
Collateral. Legal title to the Collateral shall be vested at all
times in the Trust as a separate legal entity and shall be held and
administered by the Delaware Trustee for the benefit of the Trust and each
Securityholder, except that with respect to the Collateral collaterally
assigned to the Indenture Trustee, legal title to the Collateral shall be
vested at all times in the Indenture Trustee, for the benefit of the applicable
Holders and such Collateral shall be held by the Indenture Trustee.

 

Section 2.10 Payment of Trust
Expenses. Any costs and expenses of the Trust shall be paid by
Protective Life pursuant to the Expense and Indemnity Agreement to the extent
provided therein.

 

Section 2.11 Liability.
None of the Delaware Trustee or the Securityholders shall have any personal
liability for any liability or obligation of the Trust.

 

Section 2.12 Income Tax
Treatment; Tax Returns and Reports.

 

(a)                                  The
Trust and the Trust Beneficial Interest Owner agree, and by acceptance of a
beneficial interest in a Note each holder of a beneficial interest in a Note
agrees, for U.S. federal, state and local income and franchise tax purposes, to
treat (i) the Trust as a grantor trust, (ii) such Note as an
ownership interest in such grantor trust and (iii) the Funding Agreements
as debt of Protective Life.

 

(b)                                 The
Delaware Trustee shall, or so long as there is an Administrator, the
Administrator shall, pursuant to the Administrative Services Agreement, prepare
and file or cause to be prepared and filed, consistent with the treatment of
the Trust as a grantor trust, all federal, state and local income tax and information
returns and reports required to be filed with respect to the Trust, and the
Notes under any applicable federal, state or local tax statute or any rule or
regulation under any of them. At the request of the Administrator, the Delaware
Trustee shall sign and, in accordance with instructions provided by the
Administrator, file any federal, state or local income tax and information
returns and reports prepared by, or at the direction of, the Administrator
pursuant to this Section 2.12.
The Delaware Trustee shall keep copies or cause copies to be kept of the tax
and information returns (including Internal Revenue Service Form 1041) and
reports prepared and filed and provided to it by the Administrator.

 

Section 2.13 Situs of Trust.
The Trust shall be located in the State of Delaware and administered in the
State of Delaware subject to the activities of the Administrator in North
Carolina. All bank accounts maintained by the Delaware Trustee on behalf of the
Trust shall be located in the State of Delaware except that those accounts
established under the Indenture shall be maintained with the 

 

6

 

Indenture Trustee in accordance with the Indenture. The Trust shall not
have any employees in any state other than in the State of Delaware. Except as
set forth in the Program Documents, payments will be received by the Trust only
in the State of Delaware and payments will be made by the Trust only from the
State of Delaware.

 

ARTICLE 3

Payment Accounts

 

Section 3.01 Payment Accounts.

 

(a)                                  On
the Issuance Date, the Delaware Trustee shall establish a Payment Account. The
Delaware Trustee and any agent of the Delaware Trustee shall have exclusive
control and sole right of withdrawal with respect to the Payment Accounts for
the purpose of making deposits in and withdrawals from the Payment Accounts in
accordance with this Agreement and the Indenture. Subject to the Indenture, all
monies or other property received by the Delaware Trustee on behalf of the
Trust in respect of the Collateral will be deposited in the Payment Account.
All monies and other property deposited or held from time to time in the
Payment Account shall be held by the Delaware Trustee in the Payment Account
for the exclusive benefit of the Trust Beneficial Owner, subject to the
security interest in the Collateral in favor of the Indenture Trustee on behalf
of the Holders of the Series of Notes, and for distribution by the
Delaware Trustee as herein provided, including (and subject to) any priority of
payments provided for herein.

 

(b)                                 Except
for payments made on the Trust Expiration Date or otherwise pursuant to Section 7.03 of this Agreement and
subject to Section 3.01(a) of
this Agreement, all monies and other property deposited into the Payment
Account shall be distributed by the Trust as follows:

 

first, to the
Indenture Trustee for the payment of all amounts then due and unpaid upon the
Notes, if any, in accordance with the Indenture; and

 

second, to the Trust
Beneficial Owner all of the amounts that would be payable under clause first of
Section 5.02 of the Indenture to the Trust Beneficial Owner if the Trust
Beneficial Owner held a Note with an original principal amount of $15. Any
remaining monies and other property deposited into the Payment Account shall be
distributed ratably in proportion to their original principal amounts to the
Holders last noted in the Register as the Holders of the Notes and the Trust
Beneficial Owner (as if the Trust Beneficial Owner held a Note with an original
principal amount of $15).

 

(c)                                  The
Delaware Trustee shall deposit in the Payment Account, promptly upon receipt,
any payments received with respect to the Collateral. Amounts held in the
Payment Accounts shall not be invested by the Delaware Trustee pending the
distribution of such amounts to cover the Trust’s obligations on the Notes or
the Trust Beneficial Interest.

 

(d)                                 Notwithstanding
anything herein to the contrary, the Delaware Trustee, on behalf of the Trust,
shall issue a standing order (the “Standing Order”) to the Indenture Trustee
pursuant to which the Indenture Trustee shall distribute all amounts due and
unpaid under clause second of Section 3.01(b) herein; provided, however, that all payments to be
made by the Trust to the Trust Beneficial Owner on the Trust Expiration Date or
otherwise pursuant to Section 7.03 of this Agreement shall be made by the
Delaware Trustee on behalf of the Trust. For so long as (i) the Delaware
Trustee, on behalf of the Trust, has not rescinded the Standing Order and (ii) the
Indenture Trustee is able to, and does, comply with the Standing Order, the
Delaware Trustee will not be required to establish separate Payment Accounts in
accordance with Section 3.01; provided,
however, that the Delaware Trustee shall establish separate Payment
Accounts to facilitate payments made on a Trust Expiration Date or otherwise
pursuant to Section 7.03 of this Agreement.

 

7

 

ARTICLE 4

Trust Securities

 

Section 4.01 Initial Ownership.
Upon the creation of the Trust, the Trust Beneficial Owner shall be the sole
beneficial owner of such Trust.

 

Section 4.02 Notes.

 

The Notes will be issued pursuant to and be governed by the Indenture.

 

Section 4.03 Registration of
Transfer of Trust Beneficial Interest.

 

(a)                                  The
Delaware Trustee or its agent (in this capacity, the “Registrar”) shall maintain a register or
registers for the Trust for the purpose of registering the transfer of the
Trust Beneficial Interest (a “Securities
Register”).

 

(b)                                 The
Registrar shall not be required to register the transfer of the Trust
Beneficial Interest in any manner inconsistent with the terms of this Agreement
or the Indenture.

 

Section 4.04 Persons Deemed
Holders of Trust Securities. The Delaware Trustee, Administrator and
the Registrar shall treat the Person in whose name any Trust Beneficial
Interest is registered as the owner of such Trust Beneficial Interest for all
purposes whatsoever, and none of the Delaware Trustee, Administrator and the
Registrar shall be bound by any notice to the contrary. The Delaware Trustee
and the Administrator shall treat the Person determined in accordance with Section 2.12
of the Indenture as the owner of the applicable Note(s) for all purposes
whatsoever, and neither the Delaware Trustee nor the Administrator shall be
bound by any notice to the contrary.

 

Section 4.05 Maintenance of
Office. Subject to the provisions of the Indenture, the Delaware
Trustee shall maintain an office or offices where notices and demands to or
upon the Delaware Trustee in respect of the Trust Securities may be
served. The Delaware Trustee initially designates its Corporate Trust Office as
the office for such purposes. The Delaware Trustee shall give prompt written
notice to the Trust Beneficial Owner and the Indenture Trustee of any change in
the location of the register or any office or agency.

 

Section 4.06 Ownership of the
Trust Beneficial Interest. On the Issuance Date of the Trust, the
Trust Beneficial Owner shall acquire and retain beneficial and record ownership
of the Trust Beneficial Interest. To the fullest extent permitted by law, any
attempted transfer of the Trust Beneficial Interest shall be void.

 

ARTICLE 5

Representations and Warranties

 

Section 5.01 Delaware Trustee.
The Delaware Trustee represents and warrants for the benefit of the
Securityholders as follows:

 

(a)                                  it
is a banking corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and it is a “bank” within the meaning
of Section 581 of the Code;

 

(b)                                 it
is a “United States person” within the meaning of Section 7701(a)(30) of
the Code;

 

(c)                                  it
has full corporate or other power, authority and legal right to execute,
deliver and perform its obligations under this Agreement and has taken all
necessary action to authorize the execution, delivery and performance by it of
this Agreement;

 

(d)                                 this
Agreement has been duly authorized, executed and delivered by it and
constitutes the valid and legally binding agreement of it enforceable against
it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general principles of equity;

 

8

 

(e)                                  neither
the execution or delivery by it of this Agreement, nor the performance by it of
its obligations hereunder or thereunder, will (i) violate its
organizational documents, (ii) violate any provision of, or constitute,
with or without notice or lapse of time, a default under, or result in the
creation or imposition of any Lien on any properties or assets held in the
Trust pursuant to the provisions of, any indenture, mortgage, credit agreement,
license or other agreement or instrument to which it is a party or by which it
is bound, or (iii) violate any law, governmental rule or regulation
of the State of Delaware or the United States governing the banking, trust or
general powers of it or any order, judgment or decree applicable to it;

 

(f)                                    the
authorization, execution or delivery by it of this Agreement and the
consummation of any of the transactions by it contemplated hereby or thereby do
not require the consent or approval of, the giving of notice to, the
registration with or the taking of any other action with respect to any
governmental authority or agency (other than the filing of the Certificate of
Trust with the Secretary of State); and

 

(g)                                 there
are no proceedings pending or, to the best of its knowledge, threatened against
or affecting it in any court or before any governmental authority, agency or
arbitration board or tribunal which, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power
and authority of it to enter into or perform its obligations under this
Agreement.

 

Section 5.02 Trust Beneficial
Owner. The Trust Beneficial Owner hereby represents and warrants
that, to the fullest extent permitted by law, it has irrevocably waived any
right or interest it may have under this Agreement, by operation of law or
equity, to direct or otherwise require the Delaware Trustee to initiate or
consent to any bankruptcy, insolvency or receivership proceedings, it being
expressly understood that any such action by the Delaware Trustee shall be
undertaken or refrained from, to the fullest extent permitted by law, in the
Delaware Trustee’s sole and absolute discretion, without regard to any rights
or interests of the Trust Beneficial Owner.

 

9

 

ARTICLE 6

Delaware Trustee

 

Section 6.01 General Authority.

 

(a)                                  The
Delaware Trustee shall conduct the affairs of the Trust in accordance with the
terms of this Agreement. In addition to any other duties under this Agreement,
the Delaware Trustee shall be the trustee of the Trust for the purpose of
fulfilling the requirements of Section 3807 of the Delaware Statutory
Trust Act. Subject to the limitations set forth in Section 6.01(b) hereof, the Delaware Trustee shall
have the power and authority to act on behalf of the Trust, with respect to the
following matters:

 

(i)                                     to
execute and deliver the Notes and Trust Beneficial Interest in accordance with
this Agreement and the Indenture;

 

(ii)                                  to
cause the Trust to perform this Agreement and to enter into, and to
execute, deliver and perform on behalf of itself, the Omnibus Instrument,
the Indenture, the relevant Program Distribution Agreement, the Trust
Securities, the License Agreement, the Expense and Indemnity Agreement, the
Administrative Services Agreement, the Funding Agreements and such other
certificates, other documents or agreements as may be necessary,
contemplated by or desirable in connection with the purposes and function of
the Trust or any of the above-referenced agreements;

 

(iii)                               subject
to the Indenture, to purchase, receive and maintain custody of the Funding
Agreements and to exercise all of the rights, powers and privileges of an owner
or policyholder of the Funding Agreements;

 

(iv)                              to
grant to the Indenture Trustee a first priority perfected security interest in
the Collateral for the Series of Notes and to collaterally assign the
rights, title and interest of the Trust in such Collateral to the Indenture
Trustee for the benefit of the Holders of such Series of Notes and to seek
release of such security interest upon payment in full of all amounts required
to be paid with respect to the Series of Notes pursuant to the terms and
conditions of the Series of Notes or the Indenture;

 

(v)                                 to
establish the Payment Account;

 

(vi)                              to
cause any transfer of the Trust Beneficial Interest to be registered in
accordance with this Agreement;

 

(vii)                           to
send notices regarding the Trust Securities and the Funding Agreements to
Protective Life, the Indenture Trustee, the Ratings Agencies, the Trust
Beneficial Owner and the applicable agents and dealers appointed under the
applicable Program Distribution Agreements in accordance with the Funding
Agreements and this Agreement;

 

(viii)                        to
take all actions necessary or appropriate to enable the Trust to comply with Section 2.12
hereof regarding income tax treatment, tax returns and information reporting;

 

(ix)                                after
the occurrence of a Funding Agreement Event of Default actually known to a
Responsible Officer of the Delaware Trustee, subject to the Indenture, to take
any action as it may from time to time determine (based solely upon the
advice of counsel) is necessary or advisable to give effect to the terms of
this Agreement and to protect and conserve the Collateral for the benefit of
each Securityholder (without consideration of the effect of any such action on
any particular Securityholder) and, within five Business Days after the
occurrence of a Funding Agreement Event of Default actually known to a
Responsible Officer of the Delaware Trustee, to give notice thereof to the
Trust Beneficial Owner and the Indenture Trustee;

 

(x)                                   to
the extent permitted by this Agreement, to participate in the winding up of the
affairs of and liquidation of the Trust and assist with the preparation,
execution and filing of a certificate of cancellation with the Secretary of
State;

 

10

 

(xi)                                subject
to the Indenture, to take any action and to execute any documents on behalf of
the Trust, incidental to the foregoing as the Delaware Trustee may from
time to time determine (based on the advice of counsel) is necessary or
advisable to give effect to the terms of this Agreement for the benefit of each
Securityholder (without consideration of the effect of any such action on any
particular Securityholder);

 

(xii)                             to
execute and file documents with the Secretary of State; and

 

(xiii)                          to
accept service of process on behalf of the Trust in the State of Delaware.

 

It is expressly understood and agreed that the Delaware Trustee shall
be entitled to engage outside counsel, independent accountants and other
experts appointed with due care to assist the Delaware Trustee in connection
with the performance of its duties and powers set forth in this Section 6.01(a), including, without
limitation, the preparation of all tax reports and returns, securities law
filings, certificates, reports, opinions, notices or any other documents. The
Delaware Trustee shall be entitled to rely conclusively on the advice of such
counsel, accountants and other experts in the performance of all its duties
hereunder and shall have no liability for any documents prepared by such
counsel, accountants or experts or any action or inaction taken pursuant to the
advice of such counsel, accountants or experts. Any expenses of such counsel,
accountants and experts shall be paid by Protective Life in accordance with the
Expense and Indemnity Agreement to the extent provided therein.

 

(b)                                 So
long as this Agreement remains in effect, the Trust (and the Delaware Trustee
and the Administrator acting on behalf of the Trust) shall not undertake any
business, activity or transaction except as expressly provided for or
contemplated by this Agreement, or the Indenture. In particular, the Trust
shall not, except as otherwise contemplated by the Indenture:

 

(i)                                     sell,
transfer, exchange, assign, lease, convey or otherwise dispose of any assets
held in the Trust (as of the date of this Agreement or thereafter acquired),
including, without limitation, any portion of the relevant Collateral, except
as expressly permitted under the Indenture;

 

(ii)                                  engage
in any business or activity other than in connection with, or relating to, the
performance of this Agreement and the execution, delivery and performance of
any documents, including the Program Documents (other than this Agreement as
set forth above), relating to any Notes issued under the Indenture and the
transactions contemplated thereby, and the issuance of the Notes pursuant to
the Indenture;

 

(iii)                               incur
or otherwise become liable, directly or indirectly, for any Indebtedness or
Contingent Obligation except for the Notes issued pursuant to the Indenture and
the transactions contemplated under the Indenture;

 

(iv)                              (a) permit
the validity or effectiveness of the Indenture or any grant of security
interest in or assignment for collateral purposes of the relevant Collateral to
be impaired, or permit a Lien created under the Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to
be released from any covenants or obligations under any document or agreement
assigned to the Indenture Trustee, except as may be expressly permitted
under the Indenture, (b) create, incur, assume or permit any Lien or other
encumbrance (other than a Lien created under the Indenture) on any of its
properties or assets owned or thereafter acquired, or any interest therein or
the proceeds thereof, or (c) permit a Lien created under the Indenture not
to constitute a valid first priority perfected security interest in the
relevant Collateral;

 

(v)                                 amend,
modify or fail to comply with any material provision of this Agreement, except
for any amendment or modification of this Agreement expressly permitted
thereunder;

 

11

 

(vi)                              own
any subsidiary or lend or advance any funds to, or make any investment in, any
Person, except for an investment in Funding Agreements or the investment of any
funds held by the Indenture Trustee, Paying Agent, Delaware Trustee or
Administrator as provided in the Indenture or this Agreement;

 

(vii)                           directly
or indirectly declare or make any distribution or other payment to, or redeem
or otherwise acquire or retire for value the interests of, the Trust Beneficial
Owner if any amount under the Notes is due and unpaid, or directly or
indirectly redeem or otherwise acquire or retire for value any Indebtedness or
Contingent Obligation other than the Notes if the Notes remain outstanding;

 

(viii)                        exercise
any rights with respect to the relevant Collateral except at the written
direction of, or with the prior written approval of, the Indenture Trustee;

 

(ix)                                cause
or, to the fullest extent permitted by law, permit the sale or other transfer
of all or a portion of the Trust Beneficial Interest, or cause or, to the
fullest extent permitted by law, permit the creation, incurrence, assumption or
existence of any Lien on, all or a portion of any relevant Trust Beneficial
Interest;

 

(x)                                   become
an “investment company” or come under the “control” of an “investment company,”
as such terms are defined in the Investment Company Act;

 

(xi)                                enter
into any transaction of merger or consolidation or liquidate or dissolve itself
(or, to the fullest extent permitted by law, suffer any liquidation or
dissolution), or acquire by purchase or otherwise all or substantially all the
business or assets of, or any stock or other evidence of beneficial ownership
of, any Person;

 

(xii)                             have
any subsidiaries, employees or agents other than the Delaware Trustee, the
Administrator and other persons necessary to conduct its business and enter
into transactions contemplated under the Program Documents;

 

(xiii)                          have
an interest in any bank account other than (a) those accounts required
under the Program Documents, and (b) those accounts expressly permitted by
the Indenture Trustee; provided that any interest therein shall be charged or
otherwise secured in favor of the Indenture Trustee;

 

(xiv)                         permit
any Affiliate, employee or officer of Protective Life or any agent of
Protective Life or dealer to be a trustee of the Trust;

 

(xv)                            issue
any Notes under the Indenture unless (a) the Trust has purchased or will
simultaneously purchase one or more Funding Agreements from Protective Life to
secure such Notes, (b) Protective Life has affirmed in writing to the
Trust that it has made or simultaneously will make changes to its books and
records to reflect the granting of a security interest in, and the making of an
assignment for collateral purposes of, the Funding Agreements by the Trust, to
the Indenture Trustee and (c) the Trust has taken such other steps as may be
necessary to cause the grant of security interest in, and assignment for
collateral purposes of, the Collateral to the Indenture Trustee to be perfected
for purposes of the UCC or effective against the Trust’s creditors and
subsequent purchasers of the Collateral pursuant to insurance or other
applicable law;

 

(xvi)                         commingle
the assets held in the Trust with assets of any of its Affiliates, or guarantee
any obligation of any of its Affiliates; or

 

(xvii)                      maintain
any joint account with any Person or become a party, whether as co-obligor or
otherwise, to any agreement to which any Person is a party (other than in
respect of the Program

 

12

 

Documents), or become liable as a guarantor or otherwise with respect
to any Indebtedness or contractual obligation of any Person.

 

(c)                                  The
Trust, Delaware Trustee and Administrator acting on behalf of the Trust shall
not, notwithstanding any other provision of this Agreement, take any action
that would cause the Trust not to be treated as a grantor trust for U.S.
federal income tax purposes.

 

(d)                                 The
Delaware Trustee shall, based on the advice of counsel, defend against all
claims and demands of all Persons at any time claiming any Lien on any of the
assets of the Trust adverse to the interest of the Trust or any Securityholder,
other than the security interests in the Collateral granted in favor of the
Indenture Trustee for the benefit of each Holder of the Series of Notes
pursuant to the Indenture.

 

(e)                                  If
and for so long as the Funding Agreements are held by the Delaware Trustee for
the benefit of the Trust, the Delaware Trustee shall not (i) waive any
default under the relevant Funding Agreements or (ii) consent to any
amendment, modification or termination of the relevant Funding Agreements,
without, in each case, obtaining the prior approval of the Indenture Trustee in
accordance with the Indenture and an opinion of counsel experienced in such
matters to the effect that any such action shall not cause the Trust not to be
treated as a grantor trust for U.S. federal income tax purposes. The Delaware
Trustee, upon a Responsible Officer obtaining actual knowledge of the
occurrence of a Funding Agreement Event of Default, will notify the Indenture
Trustee of any such Funding Agreement Event of Default.

 

(f)                                    The
Delaware Trustee is authorized and directed to conduct the affairs of the Trust
and to operate the Trust (i) so that the Trust will not become required to
register as an “investment company” under the Investment Company Act, and (ii) so
that the Trust will not fail to be treated as a grantor trust for U.S. federal
income tax purposes. In connection with the preceding sentence, the Delaware
Trustee shall have no duty to determine whether any action it takes complies
with the preceding sentence and shall be entitled to rely conclusively on an
opinion of counsel with respect to any such matters.

 

Section 6.02 General Duties.
It shall be the duty of the Delaware Trustee to discharge, or cause to be
discharged, all of its responsibilities pursuant to the terms of this
Agreement, or any other documents or instruments to which it is a party, and to
administer the Trust, in accordance with the provisions of this Agreement and
the other Program Documents and any other documents or instruments to which the
Trust is a party. Notwithstanding the foregoing, the Delaware Trustee shall be
deemed to have discharged its duties and responsibilities under this Agreement
and any other documents or instruments to which it is a party to the extent (a) such
duties and responsibilities shall have been performed by the Administrator and (b) the
Administrator is required or permitted hereunder, under the Administrative
Services Agreement or under any other documents or instruments to which the
Trust is a party to perform such act or discharge such duty of the
Delaware Trustee or the Trust; provided,
however, that the Delaware Trustee shall not be held liable for the
default or failure of the Administrator to carry out its required obligations
hereunder or thereunder.

 

Section 6.03 Specific Duties.

 

(a)                                  The
Delaware Trustee will manage the business and affairs of the Trust in
accordance with the terms of the Delaware Statutory Trust Act; provided, however,
that the Delaware Trustee undertakes to perform only such duties as are
specifically set forth in this Agreement and as it may be directed from
time to time by the Trust Beneficial Owner and the Indenture Trustee in
accordance with the terms of this Agreement and the Indenture.

 

(b)                                 The
Delaware Trustee agrees that it will not manage, control, use, sell, dispose of
or otherwise deal with the Collateral except as expressly required or permitted
by the terms of this Agreement and the Indenture.

 

13

 

Section 6.04 Acceptance of
Trust and Duties; Limitation on Liability. The Delaware Trustee
accepts the trust hereby created and agrees to perform its duties
hereunder with respect to the same, but only upon the terms of this Agreement.
No implied covenants or obligations shall be read into this Agreement. The
Delaware Trustee shall not be liable hereunder under any circumstances or for
any action or failure to act, except for (i) its own willful misconduct,
bad faith or gross negligence, (ii) its failure to use ordinary care to
disburse funds, or (iii) the inaccuracy of any representation or warranty
contained herein expressly made by it. In particular (but without limitation),
subject to the exceptions set forth in the preceding sentence:

 

(a)                                  the
Delaware Trustee shall not be liable for any error of judgment made in good
faith by any of its responsible officers, unless such error of judgment
constitutes gross negligence;

 

(b)                                 the
Delaware Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the written
instructions of the Trust Beneficial Owner or the Indenture Trustee or pursuant
to the advice of counsel, accountants or other experts selected by it in good
faith, so long as such action or omission is consistent with the terms of this
Agreement and the Indenture;

 

(c)                                  no
provision of this Agreement shall require the Delaware Trustee to expend or
risk personal funds or otherwise incur any financial liability in the performance
of any of its rights or powers hereunder if the Delaware Trustee has reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured or provided to it;

 

(d)                                 under
no circumstances shall the Delaware Trustee be liable for indebtedness or other
obligations evidenced by or arising under this Agreement, the Funding
Agreements or any related document, including the principal of and interest on
the Notes and payments on the Trust Beneficial Interests;

 

(e)                                  the
Delaware Trustee shall not be responsible for, or in respect of, the validity
or sufficiency of this Agreement or any related document or for the due
execution hereof or thereof by any party (except by the Delaware Trustee
itself) or for the form, character, genuineness, sufficiency, value or validity
of any of the Collateral, other than, in the case of the Delaware Trustee, the
execution of any certificate;

 

(f)                                    the
Delaware Trustee shall not be liable for any action, inaction, default or
misconduct of the Administrator, the Indenture Trustee or any Paying Agent
under the Indenture, the Notes or any related documents or otherwise, and the
Delaware Trustee shall not have any obligation or liability to perform the
obligations of the Trust under this Agreement or any related document or under
any federal, state, foreign or local tax or securities law, in each case, that
are required to be performed by other Persons, including the Administrator
hereunder or under the Administrative Services Agreement or the Indenture
Trustee under the Indenture;

 

(g)                                 the
Delaware Trustee shall not be liable for any action, inaction, default or
misconduct of Protective Life, and the Delaware Trustee shall not have any
obligation or liability to perform the obligations of Protective Life
under the Funding Agreements or any related documents;

 

(h)                                 the
Delaware Trustee shall not be under any obligation to exercise any of the
rights or powers vested in it by this Agreement, or to institute, conduct or defend
any litigation under this Agreement or otherwise or in relation to this
Agreement or any related document, at the request, order or direction of any
Person unless such Person has offered to the Delaware Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Delaware Trustee. The right of the Delaware Trustee to perform any
discretionary act enumerated in this Agreement or in any related document shall
not be construed as a duty, and the Delaware Trustee shall not be answerable
for other than its gross negligence or willful misconduct in the performance of
any such act;

 

14

 

(i)                                     except
as expressly provided herein, in accepting the trusts hereby created the
Delaware Trustee acts solely as trustee hereunder and not in its individual
capacity, and all persons having any claim against the Delaware Trustee by
reason of the transactions contemplated by this Agreement shall look only to
the Trust’s property for payment or satisfaction thereof;

 

(j)                                     the
Delaware Trustee shall not have any responsibility or liability for or with
respect to the genuineness, value, sufficiency or validity of any Collateral,
and the Delaware Trustee shall in no event assume or incur any liability, duty
or obligation to the Trust Beneficial Owner or any other Person other than as
expressly provided for herein;

 

(k)                                  the
Delaware Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note or
other paper or document;

 

(l)                                     every
provision of this Agreement relating to the Delaware Trustee shall be subject
to the provisions of this Article 6;

 

(m)                               except
in accordance with the written instructions furnished by the Trust Beneficial
Owner or as provided herein, the Delaware Trustee shall have no duty (i) to
see to any recording or filing of any document, (ii) to confirm or verify
any financial statements of the Trust Beneficial Owner or the Indenture
Trustee, (iii) to inspect the Trust Beneficial Owner’s or the Indenture
Trustee’s books and records at any time or (iv) to see to the payment or
discharge of any tax, assessment or other governmental charge or any lien or
encumbrance of any kind owing with respect to, assessed or levied against any part of
the Trust, except to the extent the Delaware Trustee has received funds, on
behalf of the Trust, pursuant to the Expense and Indemnity Agreement from
Protective Life in satisfaction of any such tax, assessment or other
governmental charge or any lien or encumbrance of any kind and in accordance
with payment or transfer instructions provided by Protective Life;

 

(n)                                 the
Delaware Trustee shall have no duty or obligation to manage, control, use,
sell, dispose of or otherwise deal with the Trust or to otherwise take or
refrain from taking any action under this Agreement, except as expressly
required by the terms hereof, or as expressly provided in written instructions
from the Trust Beneficial Owner, and in no event shall the Delaware Trustee
have any implied duties or obligations under this Agreement; the Delaware
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of
the property of the Trust which result from claims against the Delaware Trustee
personally that are not related to the ownership or the administration of the
property of the Trust or the transactions contemplated by the Program
Documents;

 

(o)                                 the
Delaware Trustee shall not be required to take any action under this Agreement
unless the Delaware Trustee shall have been indemnified by Protective Life, in
manner and form satisfactory to the Delaware Trustee, against any
liability, cost or expenses (including counsel fees and disbursements) which may be
incurred in connection therewith, and, if the Trust Beneficial Owner shall have
directed the Delaware Trustee to take any such action or refrain from taking
any action, the Trust Beneficial Owner agrees to furnish such indemnity from
Protective Life as shall be required and, in addition, to cause Protective Life
to pay the reasonable compensation of the Delaware Trustee for the services
performed or to be performed by it pursuant to such direction; provided, that the Delaware Trustee may not
be indemnified by Protective Life, the Trust Beneficial Owner or any other
Person for the Delaware Trustee’s willful misconduct or gross negligence, its
failure to use ordinary care to disburse funds or the inaccuracy of its own
representations or warranties, made in its individual capacity, contained
herein; provided, further, that
any indemnity or payment of compensation shall be made pursuant to the Expense
and Indemnity Agreement and shall be limited to the extent indicated therein;

 

15

 

(p)                                 the
Delaware Trustee shall not be required to take any action under this Agreement
if the Delaware Trustee shall reasonably determine or shall have been advised
by counsel that such action is contrary to the terms of this Agreement or is
otherwise contrary to law;

 

(q)                                 the
Delaware Trustee may fully rely upon and shall have no liability in
connection with calculations or instructions forwarded to the Delaware Trustee
by the Trust Beneficial Owner or the Indenture Trustee, nor shall the Delaware
Trustee have any obligation to furnish information to any Trust Beneficial
Owner or other Person if it has not received such information as it may need
from the Trust Beneficial Owner, or the Indenture Trustee or any other Person;

 

(r)                                    the
Delaware Trustee shall not be liable with respect to any act or omission in
good faith in accordance with the advice or direction of the Trust Beneficial
Owner or Indenture Trustee. Whenever the Delaware Trustee is unable to decide
between alternative courses of action permitted or required by the terms of
this Agreement, or is unsure as to the application, intent, interpretation or meaning
of any provision hereof, the Delaware Trustee may give notice (in such form as
shall be appropriate under the circumstances) to the Trust Beneficial Owner
requesting instructions as to the course of action to be adopted, and, to the
extent the Delaware Trustee acts in good faith in accordance with any such
instruction received, the Delaware Trustee shall not be liable on account of
such action to any Person. If the Delaware Trustee shall not have received
appropriate instructions within ten days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be
necessary under the circumstances), it may, but shall be under no duty to, take
or refrain from taking such action which is consistent, in its view, with this
Agreement and as it shall deem to be in the best interest of the Trust
Beneficial Owner, and the Delaware Trustee shall have no liability to any
Person for such action or inaction;

 

(s)                                  in
no event whatsoever shall the Delaware Trustee be personally liable for any
representation, warranty, covenant, agreement, indebtedness or other obligation
of the Trust;

 

(t)                                    the
Delaware Trustee shall incur no liability if, by reason of any provision of any
present or future law or regulation thereunder, or by any force majeure event,
including but not limited to natural disaster, war or other circumstances
beyond its control, the Delaware Trustee shall be prevented or forbidden from
doing or performing any act or thing which the terms of this Agreement provide shall
or may be done or performed; and

 

(u)                                 notwithstanding
anything contained herein to the contrary, the Delaware Trustee shall not be
required to execute, deliver or certify on behalf of the Trust any filings,
certificates, affidavits or other instruments required under the Sarbanes-Oxley
Act of 2002.

 

Section 6.05 Reliance; Advice
of Counsel.

 

(a)                                  The
Delaware Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper reasonably
believed by it in good faith to be genuine and signed by the proper party or
parties. The Delaware Trustee may accept a certified copy of a resolution
of the board of directors or other governing body of any corporate party as
conclusive evidence that such resolution has been duly adopted by such body and
that the same is in full force and effect. As to any fact or matter the manner
of ascertainment of which is not specifically prescribed herein, the Delaware
Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president or by the treasurer or any assistant treasurer
or the secretary or any assistant secretary of the relevant party, as to such
fact or matter, and such certificate shall constitute full protection to the
Delaware Trustee for any action taken or omitted to be taken by it in good
faith in reliance thereon.

 

(b)                                 In
the exercise or administration of the Trust, the Delaware Trustee (i) may act
directly or, at the expense of the Trust, through agents or attorneys pursuant
to agreements entered into with any of them, and the Delaware Trustee shall not
be liable for the action, inaction, default or misconduct of

 

16

 

such agents or attorneys if such agents or attorneys shall have been
selected by the Delaware Trustee in good faith and with reasonable care, and (ii) may consult
with counsel, accountants and other skilled persons to be selected in good
faith and with reasonable care and employed by it, and it shall not be liable
for anything done, suffered or omitted to be done in good faith by it in
accordance with the written opinion or advice of any such counsel, accountants
or other skilled persons.

 

Section 6.06 Delegation of
Authorities and Duties. The Delaware Trustee delegates to the
Administrator all duties required to be performed by the Administrator pursuant
to the terms of this Agreement and the Administrative Services Agreement. The
Delaware Trustee delegates to the Indenture Trustee all duties required to be
performed by the Indenture Trustee pursuant to the terms of this Agreement and
the Indenture. The Delaware Trustee undertakes no responsibility for the
performance, or non-performance, of any duties delegated to the Indenture
Trustee or the Administrator hereunder or thereunder.

 

ARTICLE 7

Dissolution, Liquidation and Termination

 

Section 7.01 Dissolution Upon
the Expiration Date. Unless earlier dissolved, the Trust shall
automatically dissolve on the Trust Expiration Date.

 

Section 7.02 Termination of
Agreement. This Agreement and the Trust created and continued hereby
shall terminate in accordance with Section 3808 of the Delaware Statutory
Trust Act upon the latest to occur of the following: (a) a distribution by
the Delaware Trustee to Securityholders upon the liquidation of the Trust
pursuant to Section 7.03 of all amounts required to be distributed
hereunder upon the final payment of the Trust Securities; (b) the payment
of, or reasonable provision for payment of, all expenses and other liabilities
owed by the Trust; and (c) the discharge of all administrative duties of
the Delaware Trustee and Administrator including the performance of any tax
reporting obligations with respect to the Trust or the Securityholders.

 

Upon the last event to occur as described above, the Delaware Trustee
shall cause the Certificate of Trust to be canceled by filing a certificate of
cancellation with the Secretary of State. Upon the filing of such certificate
of cancellation, this Agreement shall be of no function, form or effect
and the Trust shall terminate.

 

Section 7.03 Liquidation.
Upon the Trust Expiration Date, the remaining Collateral and any other assets
held in the Trust shall be liquidated, and the Trust shall be wound-up by the
Delaware Trustee in accordance with Section 3808(d) and (e) of
the Delaware Statutory Trust Act. In such event, (i) the Trust shall first
pay all amounts due and unpaid on the Notes, if any, in accordance with the
Indenture, (ii) the Trust shall then pay any other claims, including
expenses relating to such liquidation to the extent not paid, or reasonably
provided for, pursuant to the Expense and Indemnity Agreement, and (iii) the
Trust shall then pay to the Trust Beneficial Owner all of the amounts that
would be payable under clause first of Section 5.02 of the Indenture to
the Trust Beneficial Owner if the Trust Beneficial Owner held a Note with an
original principal amount of $15. Any remaining monies and other property shall
be paid ratably in proportion to their original principal amounts to the
Holders last noted in the Register as the Holders of the Notes and the Trust
Beneficial Owner (as if the Trust Beneficial Owner held a Note with an original
principal amount of $15 and as if each such Holder continued to hold its Notes
after all amounts due on such Notes under the Indenture have been paid).

 

17

 

ARTICLE 8

Successor and Additional Delaware Trustees

 

Section 8.01 Eligibility Requirements
for the Delaware Trustee. The Delaware Trustee shall at all times (a) be
a Person satisfying the provisions of Section 3807(a) of the Delaware
Statutory Trust Act, (b) be authorized to exercise corporate trust powers,
(c) have a combined capital and surplus of at least $50,000,000 and be
subject to supervision or examination by Federal or State authorities, (d) have
(or have a parent which has) a rating of at least Baa3 by Moody’s or BBB- by
Standard & Poor’s, (e) be a “bank” within the meaning of Section 581
of the Code and (f) be a “United States person” within the meaning of Section 7701(a)(30)
of the Code. In addition, the Delaware Trustee shall be an entity with its
Corporate Trust Office in the State of Delaware. If the Delaware Trustee shall
publish reports of condition at least annually, pursuant to applicable law or
to the requirements of the aforesaid supervising or examining authority, then
for the purpose of this Section 8.01,
the combined capital and surplus of the Delaware Trustee shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Delaware Trustee shall cease to be
eligible in accordance with the provisions of this Section 8.01, the Delaware Trustee shall resign
immediately in the manner and with the effect specified in Section 8.02.

 

Section 8.02 Resignation or
Removal of the Delaware Trustee. The Delaware Trustee may at
any time resign and be discharged from its duties hereunder and the Trust hereby
created by giving written notice thereof to the Trust Beneficial Owner and
Indenture Trustee at least 90 days before the date specified in such
instrument. Upon receiving such notice of resignation, the Trust Beneficial
Owner shall promptly appoint a successor Delaware Trustee meeting the
qualifications set forth in Section 8.01
by written instrument, in duplicate, one copy of which instrument shall be
delivered to each of the resigning Delaware Trustee, the successor Delaware
Trustee, any remaining Delaware Trustees, the Administrator, the Indenture
Trustee and Protective Life. If no successor Delaware Trustee shall have been
so appointed and have accepted appointment within 90 days after the giving
of such notice of resignation, the resigning Delaware Trustee may petition
any court of competent jurisdiction for the appointment of a successor Delaware
Trustee.

 

If at any time the Delaware Trustee shall cease to be eligible in
accordance with the provisions of Section 8.01
and shall fail to resign after written request therefor by the Trust Beneficial
Owner and Indenture Trustee, or if at any time the Delaware Trustee shall be
legally unable to act or shall be adjudged bankrupt or insolvent, or a receiver
of the Delaware Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Delaware Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation, then
the Trust Beneficial Owner and Indenture Trustee may remove such Delaware
Trustee. If the Trust Beneficial Owner and Indenture Trustee shall remove the
Delaware Trustee under the authority of the immediately preceding sentence, the
Trust Beneficial Owner shall promptly appoint a successor Delaware Trustee
meeting the qualification requirements of Section 8.01
by (i) the execution of a written instrument, one copy of which instrument
shall be delivered to each of the outgoing Delaware Trustee so removed, the
successor Delaware Trustee, the Administrator, the Indenture Trustee and
Protective Life and (ii) the payment of all fees and expenses owed to the
outgoing Delaware Trustee.

 

Any resignation or removal of the Delaware Trustee and appointment of a
successor Delaware Trustee pursuant to any of the provisions of this Section 8.02 shall not become
effective until all fees and expenses, including any indemnity payments, due to
the outgoing Delaware Trustee have been paid and until acceptance of
appointment by the successor Delaware Trustee pursuant to Section 8.03.

 

Section 8.03 Successor Delaware
Trustee. Any successor Delaware Trustee appointed pursuant to Section 8.02 shall execute,
acknowledge and deliver to the Trust Beneficial Owner, the Administrator, the
Indenture Trustee and the predecessor Delaware Trustee an instrument accepting
such appointment under this Agreement, and thereupon the resignation or removal
of the predecessor Delaware Trustee

 

18

 

shall become effective and such successor Delaware Trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights,
powers, duties, and obligations of its predecessor under this Agreement, with
like effect as if originally named as Delaware Trustee. The predecessor
Delaware Trustee shall deliver to the successor Delaware Trustee all documents
and statements and monies held by it under this Agreement; and the predecessor
Delaware Trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for fully and certainly vesting and
confirming in the successor Delaware Trustee all such rights, powers, duties
and obligations.

 

Any successor Delaware Trustee appointed hereunder shall promptly file
an amendment to the Certificate of Trust with the Secretary of State
identifying the name and principal place of business of such successor Delaware
Trustee in the State of Delaware.

 

No successor Delaware Trustee shall accept appointment as provided in
this Section 8.03 unless at
the time of such acceptance such successor Delaware Trustee shall be eligible
pursuant to Section 8.01.

 

Section 8.04 Merger or
Consolidation of Delaware Trustee. Any Person into which the
Delaware Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Delaware Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Delaware Trustee, shall, without the execution or filing of any instrument or
any further act on the part of any of the parties hereto, anything herein
to the contrary notwithstanding, be the successor of the Delaware Trustee
hereunder; provided, such Person
shall be eligible pursuant to Section 8.01.

 

Section 8.05 Appointment of
Co-Delaware Trustee or Separate Delaware Trustee.

 

(a)                                  Notwithstanding
any other provisions of this Agreement, at any time, for the purpose of meeting
any legal requirements of any jurisdiction in which any part of any
Collateral may at the time be located, the Delaware Trustee shall have the
power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Delaware Trustee to act as co-trustee, jointly with it,
or as separate trustee or separate trustees, of all or any part of any
Collateral, and subject to Section 2.09
of this Agreement to vest in such Person, in such capacity, such title to any
Collateral, or any part thereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Delaware Trustee may consider necessary or desirable. No co-trustee or
separate trustee under this Agreement shall be required to meet the terms of
eligibility as a successor Delaware Trustee pursuant to Section 8.03 and no notice of the appointment
of any co-trustee or separate trustee shall be required; provided, however, that any co-trustee or
separate trustee must be a “United States person” within the meaning of Section 7701(a)(30)
of the Code and a “bank” within the meaning of Section 581 of the Code.

 

(b)                                 Each
separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and conditions:

 

(i)                                     all rights,
powers, duties, and obligations conferred or imposed upon the Delaware Trustee
shall be conferred upon and exercised or performed by the Delaware Trustee and
such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the
Delaware Trustee joining in such act), except to the extent that under any law
of any jurisdiction in which any particular act or acts are to be performed,
the Delaware Trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the discretion of the trustee;

 

(ii)                                  the Administrator and
the Delaware Trustee acting jointly may at any time accept the resignation
of or remove any separate trustee or co-trustee; and

 

19

 

(iii)                               no trustee shall be
personally liable by reason of the act or omission of any other trustee
hereunder.

 

(c)                                  Any
notice, request or other writing given to the Delaware Trustee shall be deemed
to have been given to each of the then separate trustee and co-trustee, as
effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Section 8.05 and the conditions of this Article 8. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instruments of appointment, either
jointly with the Delaware Trustee or separately, as may be provided
therein, subject to all the provisions of this Agreement, specifically
including every provision of this Agreement relating to the conduct of,
affecting the liability of, or affording protection to, the Delaware Trustee.
Each such instrument shall be filed with the Delaware Trustee and a copy
thereof given to the Administrator.

 

(d)                                 Any
separate trustee or co-trustee may at any time appoint the Delaware
Trustee as its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Delaware Trustee, to the extent permitted by law, without the
appointment of a new or successor Delaware Trustee.

 

Section 8.06 Delaware Trustee May Own
Notes. Except to the extent prohibited under the terms of the Series of
Notes, the Delaware Trustee, in its individual or any other capacity, may become
the beneficial owner or pledgee of Notes, to the extent that such ownership
does not inhibit the Trust from relying on Rule 3a-7 promulgated under the
Investment Company Act, with the same rights as it would have if it were not
the Delaware Trustee; provided,
that any Notes so owned or pledged shall not be entitled to participate in any
decisions made or instructions given to the Delaware Trustee or the Indenture
Trustee by the Holders as a group. The Delaware Trustee may deal with the
Trust and the Trust Beneficial Owner in banking and trustee transactions with
the same rights as it would have if it were not the Delaware Trustee.

 

ARTICLE 9

Voting; Acts of Securityholders; Meetings

 

Section 9.01 Limitations on
Voting Rights. Except as provided in this Agreement or in the
Indenture or as otherwise required by law, no Holder of Trust Securities shall
have any right to vote or in any manner otherwise control the administration,
operation and management of the Trust or the obligations of the parties hereto,
nor shall anything herein set forth, or contained in the terms of the Trust
Securities, be construed so as to constitute the Securityholders from time to
time as partners or members of an association.

 

Section 9.02 Meetings of the
Trust Beneficial Owner. No annual or other meeting of the Trust Beneficial
Owner is required to be held.

 

ARTICLE 10

Miscellaneous Provisions

 

Section 10.01 Limitation on
Rights of Securityholders.

 

(a)                                  The
death, bankruptcy, termination, dissolution or incapacity of any Person having
an interest, beneficial or otherwise, in Trust Securities or the Trust shall
not operate to terminate this Agreement, nor to annul, dissolve or terminate
the Trust, nor to entitle the legal successors, representatives or heirs of
such Person or any Securityholder for such Person, to claim an accounting, take
any action or bring any proceeding in any court for a partition or winding up
of the arrangements contemplated hereby, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

 

20

 

(b)                                 Except
as provided in the Indenture, no Securityholder shall have any right by virtue
of any provision of this Agreement to institute any suit, action or proceeding
in equity or at law with respect to this Agreement, unless (i) the
Securityholders shall have made written request upon the Delaware Trustee to
institute such suit, action or proceeding in the name of the Trust and shall
have offered to the Delaware Trustee and the Trust such reasonable indemnity as
they may require against the costs, expenses and liabilities to be
incurred thereby and (ii) the Delaware Trustee, for 30 days after its
receipt of such notice, request and offer of indemnity, shall have neglected or
refused to institute any such suit, action or proceeding. It is expressly
understood and covenanted by each Securityholder with every other
Securityholder, the Trust and the Delaware Trustee, that no one or more
Securityholder shall have any right in any manner whatever by availing itself
or themselves of any provision of this Agreement to affect, disturb or
prejudice the rights of any other Securityholder, or to obtain or seek to
obtain priority over or preference to any other such Securityholder, or to
enforce any right under this Agreement, except in the manner herein provided.

 

Section 10.02 Amendment.

 

(a)                                  At
any time before the issuance of any Notes, this Trust Agreement may be
amended by, and only by, a written instrument executed by Delaware Trustee and
the Trust Beneficial Owner.

 

(b)                                 At
any time after the issuance of any Notes, this Agreement may be amended
from time to time by the Delaware Trustee and the Trust Beneficial Owner, by,
and only by, a written instrument executed by the Delaware Trustee and the
Trust Beneficial Owner, in any way that is not inconsistent with the intent of
this Agreement, including, without limitation, (i) to cure any ambiguity, (ii) to
correct, supplement or modify any provision in this Agreement that is
inconsistent with another provision herein or, (iii) to modify, eliminate
or add to any provisions of this Agreement to the extent necessary to ensure
that the Trust will be classified for U.S. federal income tax purposes as a
grantor trust at all times or to ensure that the Trust will not be required to
register as an investment company under the Investment Company Act and no such
amendment shall require the consent of any other Securityholder, except to the
extent specified in Sections 10.02(c) and
10.02(d).

 

(c)                                  At
any time after the issuance of any Notes and for so long as any Notes remain
outstanding, except as provided in Section 10.02(d),
any amendment to this Trust Agreement that would adversely affect, in any
material respect, the terms of any Notes, other then any amendment of the type
contemplated by clause (iii) of Section 10.02(b),
shall require the prior consent of the Holders of a majority of the outstanding
principal amount of the Notes.

 

(d)                                 At
any time after the issuance of any Notes and for so long as any Notes remain
outstanding, this Agreement may not be amended to (i) change the
amount or timing of any payment of any Notes or (ii) impair the right of
any Holder to institute suit for the enforcement of any right for principal and
interest or other distribution without the consent of each affected Securityholder.

 

(e)                                  The
Delaware Trustee shall not be required to enter into any amendment to this
Agreement which affects its own rights, duties or immunities under this
Agreement.

 

(f)                                    Prior
to execution of any amendment to this Agreement, the Delaware Trustee shall be
entitled to an opinion of counsel as to whether such amendment is permitted by
the terms of this Agreement and whether all conditions precedent to such
amendment have been met.

 

(g)                                 Promptly
after the execution of any such amendment or consent, the Administrator shall
furnish a copy of such amendment or consent (including those obtained or
effected hereby) to the Indenture Trustee, the Trust Beneficial Owner, the
agents and dealers under the Program Distribution Agreements and the Rating
Agencies;

 

21

 

(h)                                 Contemporaneously
with, or promptly after, the execution of any amendment hereto requiring
amendment to the Certificate of Trust, the Delaware Trustee shall cause the
filing of such amendment to the Certificate of Trust with the Secretary of
State of the State of Delaware.

 

(i)                                     Notwithstanding
any other provision of this Agreement, (i) no amendment to this Agreement may be
made if such amendment would cause the Trust not to be treated as a grantor trust
for U.S. federal income tax purposes and (ii) no amendment to this
Agreement may be made without the prior consent of Protective Life.

 

Section 10.03 Notice.
All demands, notices, instructions and other communications shall be in writing
(including telecopied or telegraphic communications) and shall be personally
delivered, mailed or transmitted by telecopy or telegraph, respectively,
addressed as set forth below:

 

If to Delaware Trustee:

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

 

If to the Administrator or Trust Beneficial Owner:

 

AMACAR Pacific Corp.

6525 Morrison Blvd., Suite 318

Charlotte, North Carolina 28211

Attention: Douglas K. Johnson

 

with a copy to:

 

Tannenbaum Helpern Syracuse & Hirschtritt LLP

900 3rd Avenue

New York, NY 10022

Attention: Stephen Rosenberg

 

If to the Indenture Trustee, at

 

The Bank of New York

100 Church Street

8th Floor

New York, New York 10286

Attention: Dealing and Trading

 

or at such other address as shall be designated by any such party in a
written notice to the other parties. Notwithstanding the foregoing, any notice
required or permitted to be mailed to the Trust Beneficial Owner shall be given
by first class mail, postage prepaid, at the address of the Trust
Beneficial Owner as shown in the Securities Register, and any notices mailed
within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given, whether or not the Trust Beneficial Owner received such
notice. Any notice required or permitted to be mailed to any Holder of a Note
shall be given as specified in the Indenture.

 

Section 10.04 No Recourse.
The Trust Beneficial Owner acknowledges that the Trust Beneficial Interest
represents a beneficial interest in the Trust only and does not represent an
obligation of Protective Life, the Delaware Trustee, the Administrator, the
Indenture Trustee or any Affiliate of any of the foregoing and no recourse may be
had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement or the Indenture.

 

22

 

Section 10.05 No Petition.
To the extent permitted by applicable law, each of the Delaware Trustee and the
Trust Beneficial Owner hereby covenants and agrees that it will not institute
against, or join with any other Person in instituting against, the Trust any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under the laws of any jurisdiction. This Section 10.05 shall survive
termination of this Agreement.

 

Section 10.06 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware without regard to the principles of conflicts of laws
thereof and the obligations, rights and remedies of the parties under this
Agreement shall be determined in accordance with such laws.

 

Section 10.07 Severability.
If any provision in this Agreement shall be invalid, illegal or unenforceable,
such provisions shall be deemed severable from the remaining provisions of this
Agreement and shall in no way affect the validity or enforceability of such
other provisions of this Agreement.

 

Section 10.08 Trust Securities
Nonassessable and Fully Paid. Securityholders shall not be
personally liable for the obligations of the Trust. The fractional undivided
beneficial interest in the assets held in the Trust represented by the Trust
Beneficial Interest shall be nonassessable for any losses or expenses related
to the Trust or for any reason whatsoever. The Notes, upon execution thereof by
the Delaware Trustee pursuant to the Indenture and upon receipt of payment
therefore, are and shall be deemed fully paid.

 

Section 10.09 Third-Party
Beneficiaries. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted
assigns. Except as otherwise provided in this Agreement, no other Person shall
have any right or obligation hereunder.

 

23

 

Section A-2. Standard Common Law
Trust Terms

 

 

STANDARD COMMON LAW TRUST TERMS

 

with respect to

 

PROTECTIVE LIFE SECURED TRUSTS

 

Dated as of November 7, 2003

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01 Definitions

  	
   

  	
  1

  
	
  Section 1.02 Usage of Terms

  	
   

  	
  4

  
	
  Section 1.03 Section References

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  CREATION OF TRUST

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01 Name of the Trust

  	
   

  	
  5

  
	
  Section 2.02 Office of the Trustee; Principal Place of Business

  	
   

  	
  5

  
	
  Section 2.03 Appointment of Trustee

  	
   

  	
  5

  
	
  Section 2.04 Trust Beneficial Interest

  	
   

  	
  5

  
	
  Section 2.05 Issuance of the Series of Notes

  	
   

  	
  5

  
	
  Section 2.06 Acquisition of Funding Agreements

  	
   

  	
  5

  
	
  Section 2.07 Security Interest in the Collateral

  	
   

  	
  5

  
	
  Section 2.08 Purposes of the Trust

  	
   

  	
  5

  
	
  Section 2.09 Title to Collateral

  	
   

  	
  6

  
	
  Section 2.10 Payment of Trust Expenses

  	
   

  	
  6

  
	
  Section 2.11 Liability

  	
   

  	
  6

  
	
  Section 2.12 Income Tax Treatment; Tax Returns and Reports.

  	
   

  	
  6

  
	
  Section 2.13 Situs of Trust

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  PAYMENT ACCOUNTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01 Payment Accounts.

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  TRUST SECURITIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01 Initial Ownership

  	
   

  	
  7

  
	
  Section 4.02 Notes.

  	
   

  	
  7

  
	
  Section 4.03 Registration of Transfer of Trust Beneficial
  Interest.

  	
   

  	
  8

  
	
  Section 4.04 Persons Deemed Holders of Trust Securities

  	
   

  	
  8

  
	
  Section 4.05 Maintenance of Office

  	
   

  	
  8

  
	
  Section 4.06 Ownership of the Trust Beneficial Interest

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01 Trustee

  	
   

  	
  8

  
	
  Section 5.02 Trust Beneficial Owner

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01 General Authority.

  	
   

  	
  9

  
	
  Section 6.02 General Duties

  	
   

  	
  12

  
	
  Section 6.03 Specific Duties.

  	
   

  	
  13

  
	
  Section 6.04 Acceptance of Trust and Duties; Limitation on
  Liability

  	
   

  	
  13

  
	
  Section 6.05 Reliance; Advice of Counsel.

  	
   

  	
  15

  
	
  Section 6.06 Delegation of Authorities and Duties

  	
   

  	
  16

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  LIQUIDATION AND TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01 Termination Upon the Expiration Date

  	
   

  	
  16

  
	
  Section 7.02 Termination of Agreement

  	
   

  	
  16

  
	
  Section 7.03 Liquidation

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  SUCCESSOR AND ADDITIONAL TRUSTEES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01 Eligibility Requirements for the Trustee

  	
   

  	
  16

  
	
  Section 8.02 Resignation or Removal of the Trustee

  	
   

  	
  17

  
	
  Section 8.03 Successor Trustee

  	
   

  	
  17

  
	
  Section 8.04 Merger or Consolidation of Trustee

  	
   

  	
  17

  
	
  Section 8.05 Appointment of Co-Trustee or Separate Trustee.

  	
   

  	
  18

  
	
  Section 8.06 Trustee May Own Notes

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  VOTING; ACTS OF SECURITYHOLDERS; MEETINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01 Limitations on Voting Rights

  	
   

  	
  19

  
	
  Section 9.02 Meetings of the Trust Beneficial Owner

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  MISCELLANEOUS PROVISIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01 Limitation on Rights of Securityholders.

  	
   

  	
  19

  
	
  Section 10.02 Amendment.

  	
   

  	
  19

  
	
  Section 10.03 Notice

  	
   

  	
  20

  
	
  Section 10.04 No Recourse

  	
   

  	
  21

  
	
  Section 10.05 No Petition

  	
   

  	
  21

  
	
  Section 10.06 Governing Law

  	
   

  	
  21

  
	
  Section 10.07 Severability

  	
   

  	
  21

  
	
  Section 10.08 Trust Securities Nonassessable and Fully Paid

  	
   

  	
  21

  
	
  Section 10.09 Third-Party Beneficiaries

  	
   

  	
  21

  

 

ii

 

This document constitutes the Standard Common Law Trust Terms, dated as
of November 7, 2003, that may be incorporated by reference in one or
more Common Law Trust Agreements (included in Section A
of the Omnibus Instrument, as defined below) between Wilmington Trust Company,
a Delaware banking corporation, as trustee, (the “Trustee”), and AMACAR Pacific Corporation, a Delaware
corporation (as “Administrator”
and “Trust Beneficial Owner”).

 

These Standard Common Law Trust Terms shall be of no force and effect
unless and until incorporated by reference in, and then only to the extent not
modified by, a Common Law Trust Agreement.

 

The following terms and provisions shall govern the activities of each
Delaware common law trust created under the Program (as defined below) subject
to contrary terms and provisions expressly adopted in any Common Law Trust
Agreement which contrary terms shall be controlling.

 

W I T N E S S E T H:

 

WHEREAS, the Trustee and the Trust Beneficial Owner desire to establish
a common law trust for the purpose of issuing Notes (as defined below) to
investors which will be secured, and payments with respect to which will be
funded, solely by the assets held in the Trust (as defined below), the proceeds
of which will be used to purchase Funding Agreements (as defined below) issued
from time to time by Protective Life (as defined below).

 

NOW, THEREFORE, it being the intention of the parties hereto that this
Agreement constitute the governing instrument of such common law trust, the
Trustee and the Trust Beneficial Owner agree as follows:

 

ARTICLE 1

Definitions

 

Section 1.01 Definitions.
The following terms have the meanings set forth below:

 

“Administrative Services Agreement”
means that certain Administrative Services Agreement, dated as of the date
specified in the Omnibus Instrument, between the Administrator and the Trustee,
on behalf of the Trust, as the same may be amended, modified or
supplemented from time to time.

 

“Administrator” means the
party named as such in the preamble to this Agreement, in its capacity as the
sole administrator of the Trust pursuant to the Administrative Services
Agreement, and shall also include its permitted successors and assigns.

 

“Affiliate” means, as
applied to any Person, any other Person directly or indirectly controlling,
controlled by or under common control with, that Person and, in the case of an
individual, any spouse or other member of that individual’s immediate family.
For the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control
with”), as applied to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities, by contract or
otherwise.

 

“Agreement” means that
certain Common Law Trust Agreement in substantially the same form included
in Section A of the Omnibus
Instrument, as amended, modified or supplemented from time to time, that
incorporates by reference these Standard Common Law Trust Terms.

 

“Business Day” has the
meaning specified in the Indenture.

 

“Calculation Agent” has
the meaning set forth in the Indenture.

 

“Code” means the Internal
Revenue Code of 1986, as amended, including any successor or amendatory
statutes and any applicable rules, regulations, notices or orders promulgated
thereunder.

 

“Collateral” means, with
respect to the Series of Notes, the right, title and interest of the Trust
in and to (a) the Funding Agreements held in the Trust, (b) all
proceeds of the Funding Agreements and

 

 

all amounts and instruments on deposit from time to time in the
Collection Account, (c) all books and records pertaining to the Funding
Agreements, and (d) all rights of the Trust pertaining to the foregoing.

 

“Collection Account” has
the meaning set forth in the Indenture.

 

“Commission” means the
Securities and Exchange Commission or any successor body performing such duties
of the Commission.

 

“Contingent Obligation”
has the meaning set forth in the Indenture.

 

“Corporate Trust Office”
means the principal office of the Trustee located at Rodney Square North, 1100
North Market Street, Wilmington, Delaware 19890-0001.

 

“DTC” means The
Depository Trust Company and its successors and assigns.

 

“Expense and Indemnity Agreement”
means that certain Expense and Indemnity Agreement, dated as of the date
specified in the Omnibus Instrument, by and among Protective Life and each of
the Trustee, on behalf of the Trust and itself, the Indenture Trustee and the
Administrator and any service provider that may become a party to such
agreement from time to time, as the same may be amended, modified or
supplemented from time to time.

 

“Funding Agreement” means
that certain funding agreement (or funding agreements) identified in the
Pricing Supplement by number, entered into by and between Protective Life and
the Trust and subsequently pledged and collaterally assigned to the Indenture
Trustee for the benefit of the holders of the Series of Notes, as it may be
modified, restated, replaced, supplemented or otherwise amended from time to
time in accordance with the terms thereof.

 

“Funding Agreement Event of Default”
means an “Event of Default” as
defined in the Funding Agreement.

 

“Holder” has the meaning
set forth in the Indenture.

 

“Indebtedness” has the
meaning set forth in the Indenture.

 

“Indenture” means that
certain Indenture dated as of the date specified in the Omnibus Instrument,
between the Trust and the Indenture Trustee, as the same may at any time
be amended, modified or supplemented from time to time.

 

“Indenture Trustee” means
the party named as such in the preamble to the Indenture and, subject to the
provisions of Article 8 of the Indenture, shall also include its
successors and assigns as Indenture Trustee thereunder.

 

“Investment Company Act”
means the Investment Company Act of 1940, as amended, as it may be amended
or supplemented from time to time, and any successor statute thereto, and the
rules, regulations and published interpretations of the Commission promulgated
thereunder from time to time.

 

“Issuance Date” has the
meaning specified in the Pricing Supplement.

 

“License Agreement” means
that certain License Agreement, dated as of the date specified in the Omnibus
Instrument, between the Trustee, on behalf of the Trust and Protective Life
Corporation, as the same may be amended, modified or supplemented from
time to time.

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including without
limitation any conditional sale or other title retention agreement, any
financing lease having substantially the same economic

 

2

 

effect as any of the foregoing, and the filing of any financing
statement under the UCC or comparable law of any jurisdiction).

 

“Note” has the meaning
specified in the Indenture and “Notes”
means the secured notes of the Trust issued pursuant to the Indenture.

 

“Omnibus Instrument”
means the omnibus instrument pursuant to which certain Program Documents are
executed and the Trust is established.

 

“Paying Agent” has the
meaning set forth in the Indenture.

 

“Payment Account” means
each segregated non-interest-bearing corporate trust account for the Trust
maintained by the Trustee in its trust department in which all amounts paid to
the Trustee in respect of the Collateral will be held and from which the
Trustee shall make payments pursuant to Section 3.01(b) and
Article 7 hereof, to the
extent such amounts are paid to the Trustee and deposited in the Payment
Account.

 

“Person” means any
natural person, corporation, limited partnership, general partnership, joint
stock company, joint venture, association, company, limited liability company,
trust (including any beneficiary thereof), bank, trust company, land trust,
business trust, statutory trust or other organization, whether or not a legal
entity, and governments and agencies and political subdivisions thereof.

 

“Pricing Supplement”
means, the pricing supplement attached to the Omnibus Instrument as Exhibit G
as prepared by the Trust, in consultation with Protective Life, in connection
with the issuance by the Trust of its Series of Notes and agreed to by
Protective Life, the Trust and the relevant dealers or agents under the
relevant Program Distribution Agreement, as such Pricing Supplement may be
amended, modified, supplemented or replaced from time to time.

 

“Program” has the meaning
set forth in the Indenture.

 

“Program Distribution Agreements”
means, with respect to the Series of Notes, (a) that certain
Distribution Agreement, by and among the Trust, Protective Life and the dealers
named therein relating to the issuance and sale of the Trust’s Notes under the
Secured Medium-Term Notes Program, as the same may be amended, modified or
supplemented or (b) that certain Selling Agent Agreement, by and among the
Trust, Protective Life and the agents named therein relating to the issuance
and sale of the Trust’s Notes under the InterNotes® Program, as the same may be
amended, modified or supplemented.

 

“Program Documents” means
each Note, the Omnibus Instrument, the Indenture, this Agreement, the
Administrative Services Agreement, the License Agreement, the Expense and Indemnity
Agreement, the relevant Program Distribution Agreement, the Funding Agreements
and any other documents or instruments entered into by, or with respect to, or
on behalf of, the Trust.

 

“Protective Life” means
Protective Life Insurance Company, a life insurance company organized and
licensed under the laws of the State of Tennessee, or any successor thereto.

 

“Ratings Agencies” means
Moody’s Investors Services, Inc., Standard & Poor’s Ratings
Services, a Division of The McGraw-Hill Companies, Inc., and any other
rating agency which provides a rating for any Notes issued by the Trust.

 

“Registrar” has the
meaning specified in Section 4.03.

 

“Register” has the
meaning set forth in the Indenture.

 

“SEC Documents” means (a) any
registration statement, including any preliminary prospectus or prospectus
supplement thereto and the exhibits included therein, any pre-effective or
post-effective amendments thereto and any registration statements filed
thereafter under the Securities Act, relating

 

3

 

to the registration under the Securities Act of the Series of
Notes and the Funding Agreements, (b) any Pricing Supplement relating to
the Series of Notes and (c) any documents, filings or forms required
to be filed by the Trust under the Securities Exchange Act of 1934, as amended,
or the Trust Indenture Act, or any securities laws, rules or regulations
of any state or any rules or regulations of any national securities
exchange or market quotation dealer system or the National Association of
Securities Dealers, Inc.

 

“Securities Act” means
the Securities Act of 1933, as it may be amended or supplemented from time
to time, and any successor statute thereto, and the rules, regulations and
published interpretations of the Commission promulgated thereunder from time to
time.

 

“Securities Register” has
the meaning specified in Section 4.03.

 

“Securityholder” means
each Person in whose name any Trust Security is registered in the Securities
Register or Register.

 

“Series of Notes”
means the series of Notes issued by the Trust.

 

“Standard Common Law Trust Terms”
means this document, the Standard Common Law Trust Terms.

 

“Standing Order” has the
meaning set forth in Section 3.01(d) of these Standard Common Law
Trust Terms.

 

“Transfer Agent” has the
meaning specified in the Indenture.

 

“Trust” means the
Protective Life Secured Trust specified in the Omnibus Instrument acting by and
through the Trustee.

 

“Trust Beneficial Interest”
means the undivided beneficial interest in the assets held in the Trust, having
such rights as provided for herein.

 

“Trust Beneficial Owner”
means the Person identified as the “Trust Beneficial Owner” in the preamble to
this Agreement, in its capacity as the sole beneficial owner of the Trust.

 

“Trust Expenses” means
any liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to the Trust.

 

“Trust Expiration Date”
means the date specified in the Pricing Supplement or such earlier date as all
of the outstanding Notes of the Series of Notes are redeemed in full by
the Trust.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as it may be amended or
supplemented from time to time, and any successor statute thereto, and the
rules, regulations and published interpretations of the Commission promulgated
thereunder from time to time.

 

“Trust Security” means a
Note or the Trust Beneficial Interest.

 

“Trustee” means the party
named as such in the preamble to this Agreement and shall also include its
permitted successors and assigns, or any successor Trustee appointed as herein
provided, acting not in its individual capacity but solely as Trustee under
this Agreement. If there shall be at any time more than one Trustee hereunder, “Trustee”
shall mean each such Trustee.

 

“UCC” means the Uniform Commercial
Code, as from time to time in effect in the State of New York; provided that, with respect to the
perfection, effect of perfection or non-perfection, or priority of any security
interest in the Collateral, “UCC” shall mean the applicable jurisdiction whose
law governs such perfection, non-perfection or priority.

 

Section 1.02 Usage of Terms.
With respect to all terms used in this Agreement, the singular includes the
plural and the plural the singular; words importing any gender include the
other genders;

 

4

 

references to “writing” include printing, typing, lithography,
facsimile, electronic transmissions and other means of reproducing words in a
visible form; references to agreements and other contractual instruments
include all subsequent amendments hereto or changes herein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
terms “include” or “including” mean “include without limitation” or “including
without limitation.”

 

Section 1.03 Section References.
All references to Articles, sections, paragraphs, subsections, exhibits and
schedules shall be to such portions of these Standard Common Law Trust Terms
unless otherwise specified.

 

ARTICLE 2

Creation of Trust

 

Section 2.01 Name of the Trust.
The Trust created under this Agreement shall have the name specified in the
Omnibus Instrument. The Trust’s activities shall be conducted under the name of
the Trust.

 

Section 2.02 Office of the
Trustee; Principal Place of Business. The principal office of the
Trust shall be in care of the Trustee at the Corporate Trust Office, or such
other address in the State of Delaware as the Trustee may designate by
written notice to the Trust Beneficial Owner, the Indenture Trustee, the
Administrator and the Ratings Agencies.

 

Section 2.03 Appointment of
Trustee. The parties hereto hereby appoint the Trustee as trustee of
the Trust, to have all rights, powers and duties set forth herein and in
accordance with the applicable law with respect to accomplishing the purposes
of the Trust.

 

Section 2.04 Trust Beneficial
Interest. Contemporaneously with the execution and delivery of this
Agreement, the Trustee, on behalf of the Trust, shall cause the Trust
Beneficial Owner to be recorded as the registered owner of the Trust Beneficial
Interest on the Trust’s Securities Register, against payment of $15 (or, if the
Trust issues Notes at a discount, the product of $15 and the issue price
(expressed as a percentage of the original principal amount of the Notes)) by
the Trust Beneficial Owner to, or to an account at the direction of, the
Trustee.

 

Section 2.05 Issuance of the Series of
Notes. Contemporaneously with the execution and delivery of this
Agreement, the Trust shall, in accordance with the Indenture, issue and deliver
or cause to be issued and delivered the aggregate principal amount of the Series of
Notes specified in the related Pricing Supplement or supplement to the
Indenture against payment therefor. The Holders of the Series of Notes
shall only have a right to receive payments from the Collateral as described in
the Indenture and shall have no right to receive payments under the assets held
in any other trust organized under the Program.

 

Section 2.06 Acquisition of
Funding Agreements. Contemporaneously with the issuance and delivery
of the Series of Notes, the Trust shall acquire the Funding Agreements.

 

Section 2.07 Security Interest
in the Collateral. Contemporaneously with the issuance and delivery
of the Series of Notes, pursuant to the Indenture, the Trust shall
collaterally assign and grant to the Indenture Trustee, for the benefit of the
Holders of such Notes, a first priority perfected security interest in and to
the Collateral, including, without limitation, Funding Agreements purchased by
the Trust.

 

Section 2.08 Purposes of the
Trust. The exclusive purposes and functions of the Trust are (a) to
issue and sell the Notes and the Trust Beneficial Interest, (b) to use the
proceeds of the sale of the Notes and the Trust Beneficial Interest to acquire
one or more Funding Agreements, (c) to pay amounts due in respect of the
Notes and the Trust Beneficial Interest, (d) to enter into the agreements 

 

5

 

and to take such actions as the Trustee has the power and authority to
take pursuant to Section 6.01,
as applicable, and (e) to engage in those activities necessary, advisable
or incidental thereto (such as registering the transfer of the Trust
Securities).

 

Section 2.09 Title to
Collateral. Legal title to the Collateral shall be vested at all
times in the Trust as a separate legal entity and shall be held and
administered by the Trustee for the benefit of the Trust and each
Securityholder, except that with respect to the Collateral collaterally
assigned to the Indenture Trustee, legal title to the Collateral shall be
vested at all times in the Indenture Trustee, for the benefit of the applicable
Holders and such Collateral shall be held by the Indenture Trustee.

 

Section 2.10 Payment of Trust
Expenses. Any costs and expenses of the Trust shall be paid by
Protective Life pursuant to the Expense and Indemnity Agreement to the extent
provided therein.

 

Section 2.11 Liability.
None of the Trustee or the Securityholders shall have any personal liability
for any liability or obligation of the Trust.

 

Section 2.12 Income Tax
Treatment; Tax Returns and Reports.

 

(a)                                  The
Trust and the Trust Beneficial Interest Owner agree, and by acceptance of a
beneficial interest in a Note each holder of a beneficial interest in a Note
agrees, for U.S. federal, state and local income and franchise tax purposes, to
treat (i) the Trust as a grantor trust, (ii) such Note as an
ownership interest in such grantor trust and (iii) the Funding Agreements
as debt of Protective Life.

 

(b)                                 The
Trustee shall, or so long as there is an Administrator, the Administrator
shall, pursuant to the Administrative Services Agreement, prepare and file or
cause to be prepared and filed, consistent with the treatment of the Trust as a
grantor trust, all federal, state and local income tax and information returns
and reports required to be filed with respect to the Trust, and the Notes under
any applicable federal, state or local tax statute or any rule or
regulation under any of them. At the request of the Administrator, the Trustee
shall sign and, in accordance with instructions provided by the Administrator,
file any federal, state or local income tax and information returns and reports
prepared by, or at the direction of, the Administrator pursuant to this Section 2.12. The Trustee shall keep
copies or cause copies to be kept of the tax and information returns (including
Internal Revenue Service Form 1041) and reports prepared and filed and
provided to it by the Administrator.

 

Section 2.13 Situs of Trust.
The Trust shall be located in the State of Delaware and administered in the
State of Delaware subject to the activities of the Administrator in North
Carolina. All bank accounts maintained by the Trustee on behalf of the Trust
shall be located in the State of Delaware except that those accounts
established under the Indenture shall be maintained with the Indenture Trustee
in accordance with the Indenture. The Trust shall not have any employees in any
state other than in the State of Delaware. Except as set forth in the Program
Documents, payments will be received by the Trust only in the State of Delaware
and payments will be made by the Trust only from the State of Delaware.

 

6

 

ARTICLE 3

Payment Accounts

 

Section 3.01 Payment Accounts.

 

(a)                                  On
the Issuance Date, the Trustee shall establish a Payment Account. The Trustee
and any agent of the Trustee shall have exclusive control and sole right of
withdrawal with respect to the Payment Accounts for the purpose of making
deposits in and withdrawals from the Payment Accounts in accordance with this
Agreement and the Indenture. Subject to the Indenture, all monies or other
property received by the Trustee on behalf of the Trust in respect of the
Collateral will be deposited in the Payment Account. All monies and other
property deposited or held from time to time in the Payment Account shall be
held by the Trustee in the Payment Account for the exclusive benefit of the
Trust Beneficial Owner, subject to the security interest in the Collateral in
favor of the Indenture Trustee on behalf of the Holders of the Series of
Notes, and for distribution by the Trustee as herein provided, including (and
subject to) any priority of payments provided for herein.

 

(b)                                 Except
for payments made on the Trust Expiration Date or otherwise pursuant to Section 7.03 of this Agreement and
subject to Section 3.01(a) of
this Agreement, all monies and other property deposited into the Payment
Account shall be distributed by the Trust as follows:

 

first, to the
Indenture Trustee for the payment of all amounts then due and unpaid upon the
Notes, if any, in accordance with the Indenture; and

 

second, to the Trust
Beneficial Owner all of the amounts that would be payable under clause first of
Section 5.02 of the Indenture to the Trust Beneficial Owner if the Trust
Beneficial Owner held a Note with an original principal amount of $15. Any
remaining monies and other property deposited into the Payment Account shall be
distributed ratably in proportion to their original principal amounts to the
Holders last noted in the Register as the Holders of the Notes and the Trust
Beneficial Owner (as if the Trust Beneficial Owner held a Note with an original
principal amount of $15).

 

(c)                                  The
Trustee shall deposit in the Payment Account, promptly upon receipt, any
payments received with respect to the Collateral. Amounts held in the Payment
Accounts shall not be invested by the Trustee pending the distribution of such
amounts to cover the Trust’s obligations on the Notes or the Trust Beneficial
Interest.

 

(d)                                 Notwithstanding
anything herein to the contrary, the Trustee, on behalf of the Trust, shall
issue a standing order (the “Standing Order”) to the Indenture Trustee pursuant
to which the Indenture Trustee shall distribute all amounts due and unpaid
under clause second of Section 3.01(b) herein; provided, however, that all payments to be
made by the Trust to the Trust Beneficial Owner on the Trust Expiration Date or
otherwise pursuant to Section 7.03 of this Agreement shall be made by the
Trustee on behalf of the Trust. For so long as (i) the Trustee, on behalf
of the Trust, has not rescinded the Standing Order and (ii) the Indenture
Trustee is able to, and does, comply with the Standing Order, the Trustee will
not be required to establish separate Payment Accounts in accordance with Section 3.01;
provided, however, that the
Trustee shall establish separate Payment Accounts to facilitate payments made
on a Trust Expiration Date or otherwise pursuant to Section 7.03 of this
Agreement.

 

ARTICLE 4

Trust Securities

 

Section 4.01 Initial Ownership.
Upon the creation of the Trust, the Trust Beneficial Owner shall be the sole
beneficial owner of such Trust.

 

Section 4.02 Notes.

 

The Notes will be issued pursuant to and be governed by the Indenture.

 

7

 

Section 4.03 Registration of
Transfer of Trust Beneficial Interest.

 

(a)                                  The
Trustee or its agent (in this capacity, the “Registrar”)
shall maintain a register or registers for the Trust for the purpose of
registering the transfer of the Trust Beneficial Interest (a “Securities Register”).

 

(b)                                 The
Registrar shall not be required to register the transfer of the Trust
Beneficial Interest in any manner inconsistent with the terms of this Agreement
or the Indenture.

 

Section 4.04 Persons Deemed
Holders of Trust Securities. The Trustee, Administrator and the
Registrar shall treat the Person in whose name any Trust Beneficial Interest is
registered as the owner of such Trust Beneficial Interest for all purposes
whatsoever, and none of the Trustee, Administrator and the Registrar shall be
bound by any notice to the contrary. The Trustee and the Administrator shall
treat the Person determined in accordance with Section 2.12 of the
Indenture as the owner of the applicable Note(s) for all purposes whatsoever,
and neither the Trustee nor the Administrator shall be bound by any notice to
the contrary.

 

Section 4.05 Maintenance of
Office. Subject to the provisions of the Indenture, the Trustee
shall maintain an office or offices where notices and demands to or upon the
Trustee in respect of the Trust Securities may be served. The Trustee
initially designates its Corporate Trust Office as the office for such
purposes. The Trustee shall give prompt written notice to the Trust Beneficial
Owner and the Indenture Trustee of any change in the location of the register
or any office or agency.

 

Section 4.06 Ownership of the
Trust Beneficial Interest. On the Issuance Date of the Trust, the
Trust Beneficial Owner shall acquire and retain beneficial and record ownership
of the Trust Beneficial Interest. To the fullest extent permitted by law, any
attempted transfer of the Trust Beneficial Interest shall be void.

 

ARTICLE 5

Representations and Warranties

 

Section 5.01 Trustee.
The Trustee represents and warrants for the benefit of the Securityholders as
follows:

 

(a)                                  it
is a banking corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and it is a “bank” within the meaning
of Section 581 of the Code;

 

(b)                                 it
is a “United States person” within the meaning of Section 7701(a)(30) of
the Code;

 

(c)                                  it
has full corporate or other power, authority and legal right to execute,
deliver and perform its obligations under this Agreement and has taken all
necessary action to authorize the execution, delivery and performance by it of
this Agreement;

 

(d)                                 this
Agreement has been duly authorized, executed and delivered by it and
constitutes the valid and legally binding agreement of it enforceable against
it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general principles of equity;

 

(e)                                  neither
the execution or delivery by it of this Agreement, nor the performance by it of
its obligations hereunder or thereunder, will (i) violate its
organizational documents, (ii) violate any provision of, or constitute,
with or without notice or lapse of time, a default under, or result in the
creation or imposition of any Lien on any properties or assets held in the
Trust pursuant to the provisions of, any indenture, mortgage, credit agreement,
license or other agreement or instrument to which it is a party or by which it
is bound, or (iii) violate any law, governmental rule or regulation
of the State of Delaware or the United States governing the banking, trust or
general powers of it or any order, judgment or decree applicable to it;

 

8

 

(f)                                    the
authorization, execution or delivery by it of this Agreement and the
consummation of any of the transactions by it contemplated hereby or thereby do
not require the consent or approval of, the giving of notice to, the
registration with or the taking of any other action with respect to any
governmental authority or agency; and

 

(g)                                 there
are no proceedings pending or, to the best of its knowledge, threatened against
or affecting it in any court or before any governmental authority, agency or
arbitration board or tribunal which, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power
and authority of it to enter into or perform its obligations under this
Agreement.

 

Section 5.02 Trust Beneficial
Owner. The Trust Beneficial Owner hereby represents and warrants
that, to the fullest extent permitted by law, it has irrevocably waived any
right or interest it may have under this Agreement, by operation of law or
equity, to direct or otherwise require the Trustee to initiate or consent to
any bankruptcy, insolvency or receivership proceedings, it being expressly
understood that any such action by the Trustee shall be undertaken or refrained
from, to the fullest extent permitted by law, in the Trustee’s sole and
absolute discretion, without regard to any rights or interests of the Trust Beneficial
Owner.

 

ARTICLE 6

Trustee

 

Section 6.01 General Authority.

 

(a)                                  The
Trustee shall conduct the affairs of the Trust in accordance with the terms of
this Agreement. Subject to the limitations set forth in Section 6.01(b) hereof, the
Trustee shall have the power and authority to act on behalf of the Trust, with
respect to the following matters:

 

(i)                                     to execute and
deliver the Notes and Trust Beneficial Interest in accordance with this
Agreement and the Indenture;

 

(ii)                                  to cause the Trust to
perform this Agreement and to enter into, and to execute, deliver and perform on
behalf of itself, the Omnibus Instrument, the Indenture, the relevant Program
Distribution Agreement, the Trust Securities, the License Agreement, the
Expense and Indemnity Agreement, the Administrative Services Agreement, the
Funding Agreements and such other certificates, other documents or agreements
as may be necessary, contemplated by or desirable in connection with the
purposes and function of the Trust or any of the above-referenced agreements;

 

(iii)                               subject to the
Indenture, to purchase, receive and maintain custody of the Funding Agreements
and to exercise all of the rights, powers and privileges of an owner or
policyholder of the Funding Agreements;

 

(iv)                              to grant to the Indenture
Trustee a first priority perfected security interest in the Collateral for the Series of
Notes and to collaterally assign the rights, title and interest of the Trust in
such Collateral to the Indenture Trustee for the benefit of the Holders of such
Series of Notes and to seek release of such security interest upon payment
in full of all amounts required to be paid with respect to the Series of
Notes pursuant to the terms and conditions of the Series of Notes or the
Indenture;

 

(v)                                 to establish the Payment
Account;

 

(vi)                              to cause any transfer of
the Trust Beneficial Interest to be registered in accordance with this
Agreement;

 

(vii)                           to send notices regarding
the Trust Securities and the Funding Agreements to Protective Life, the
Indenture Trustee, the Ratings Agencies, the Trust Beneficial Owner and the
applicable

 

9

 

agents and dealers appointed under the applicable Program Distribution
Agreements in accordance with the Funding Agreements and this Agreement;

 

(viii)                        to take all actions necessary
or appropriate to enable the Trust to comply with Section 2.12 hereof
regarding income tax treatment, tax returns and information reporting;

 

(ix)                                after the occurrence of
a Funding Agreement Event of Default actually known to a Responsible Officer of
the Trustee, subject to the Indenture, to take any action as it may from
time to time determine (based solely upon the advice of counsel) is necessary
or advisable to give effect to the terms of this Agreement and to protect and
conserve the Collateral for the benefit of each Securityholder (without
consideration of the effect of any such action on any particular
Securityholder) and, within five Business Days after the occurrence of a
Funding Agreement Event of Default actually known to a Responsible Officer of
the Trustee, to give notice thereof to the Trust Beneficial Owner and the
Indenture Trustee;

 

(x)                                   to the extent
permitted by this Agreement, to participate in the winding up of the affairs of
and liquidation of the Trust; and

 

(xi)                                subject to the
Indenture, to take any action and to execute any documents on behalf of the
Trust, incidental to the foregoing as the Trustee may from time to time
determine (based on the advice of counsel) is necessary or advisable to give effect
to the terms of this Agreement for the benefit of each Securityholder (without
consideration of the effect of any such action on any particular
Securityholder).

 

It is expressly understood and agreed that the Trustee shall be
entitled to engage outside counsel, independent accountants and other experts
appointed with due care to assist the Trustee in connection with the
performance of its duties and powers set forth in this Section 6.01(a), including, without
limitation, the preparation of all tax reports and returns, securities law
filings, certificates, reports, opinions, notices or any other documents. The
Trustee shall be entitled to rely conclusively on the advice of such counsel,
accountants and other experts in the performance of all its duties hereunder
and shall have no liability for any documents prepared by such counsel,
accountants or experts or any action or inaction taken pursuant to the advice
of such counsel, accountants or experts. Any expenses of such counsel,
accountants and experts shall be paid by Protective Life in accordance with the
Expense and Indemnity Agreement to the extent provided therein.

 

(b)                                 So
long as this Agreement remains in effect, the Trust (and the Trustee and the
Administrator acting on behalf of the Trust) shall not undertake any business,
activity or transaction except as expressly provided for or contemplated by
this Agreement, or the Indenture. In particular, the Trust shall not, except as
otherwise contemplated by the Indenture:

 

(i)                                     sell, transfer,
exchange, assign, lease, convey or otherwise dispose of any assets held in the
Trust (as of the date of this Agreement or thereafter acquired), including,
without limitation, any portion of the relevant Collateral, except as expressly
permitted under the Indenture;

 

(ii)                                  engage in any
business or activity other than in connection with, or relating to, the
performance of this Agreement and the execution, delivery and performance of
any documents, including the Program Documents (other than this Agreement as
set forth above), relating to any Notes issued under the Indenture and the
transactions contemplated thereby, and the issuance of the Notes pursuant to
the Indenture;

 

(iii)                               incur or otherwise
become liable, directly or indirectly, for any Indebtedness or Contingent
Obligation except for the Notes issued pursuant to the Indenture and the
transactions contemplated under the Indenture;

 

(iv)                              (a) permit the
validity or effectiveness of the Indenture or any grant of security interest in
or assignment for collateral purposes of the relevant Collateral to be
impaired, or permit a Lien

 

10

 

created under the Indenture to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any
covenants or obligations under any document or agreement assigned to the
Indenture Trustee, except as may be expressly permitted under the
Indenture, (b) create, incur, assume or permit any Lien or other
encumbrance (other than a Lien created under the Indenture) on any of its
properties or assets owned or thereafter acquired, or any interest therein or
the proceeds thereof, or (c) permit a Lien created under the Indenture not
to constitute a valid first priority perfected security interest in the relevant
Collateral;

 

(v)                                 amend, modify or fail
to comply with any material provision of this Agreement, except for any
amendment or modification of this Agreement expressly permitted thereunder;

 

(vi)                              own any subsidiary or
lend or advance any funds to, or make any investment in, any Person, except for
an investment in Funding Agreements or the investment of any funds held by the
Indenture Trustee, Paying Agent, Trustee or Administrator as provided in the
Indenture or this Agreement;

 

(vii)                           directly or indirectly
declare or make any distribution or other payment to, or redeem or otherwise
acquire or retire for value the interests of, the Trust Beneficial Owner if any
amount under the Notes is due and unpaid, or directly or indirectly redeem or
otherwise acquire or retire for value any Indebtedness or Contingent Obligation
other than the Notes if the Notes remain outstanding;

 

(viii)                        exercise any rights with
respect to the relevant Collateral except at the written direction of, or with
the prior written approval of, the Indenture Trustee;

 

(ix)                                cause or, to the
fullest extent permitted by law, permit the sale or other transfer of all or a
portion of the Trust Beneficial Interest, or cause or, to the fullest extent
permitted by law, permit the creation, incurrence, assumption or existence of
any Lien on, all or a portion of any relevant Trust Beneficial Interest;

 

(x)                                   become an “investment
company” or come under the “control” of an “investment company,” as such terms
are defined in the Investment Company Act;

 

(xi)                                enter into any
transaction of merger or consolidation or liquidate or dissolve itself (or, to
the fullest extent permitted by law, suffer any liquidation or dissolution), or
acquire by purchase or otherwise all or substantially all the business or
assets of, or any stock or other evidence of beneficial ownership of, any
Person;

 

(xii)                             have any subsidiaries,
employees or agents other than the Trustee, the Administrator and other persons
necessary to conduct its business and enter into transactions contemplated under
the Program Documents;

 

(xiii)                          have an interest in any bank
account other than (a) those accounts required under the Program
Documents, and (b) those accounts expressly permitted by the Indenture
Trustee; provided that any interest therein shall be charged or otherwise
secured in favor of the Indenture Trustee;

 

(xiv)                         permit any Affiliate, employee
or officer of Protective Life or any agent of Protective Life or dealer to be a
trustee of the Trust;

 

(xv)                            issue any Notes under the
Indenture unless (a) the Trust has purchased or will simultaneously
purchase one or more Funding Agreements from Protective Life to secure such
Notes, (b) Protective Life has affirmed in writing to the Trust that it
has made or simultaneously will make changes to its books and records to
reflect the granting of a security interest in, and the making of an assignment
for collateral purposes of, the Funding Agreements by the Trust, to the

 

11

 

Indenture Trustee and (c) the Trust has taken such other steps as may be
necessary to cause the grant of security interest in, and assignment for
collateral purposes of, the Collateral to the Indenture Trustee to be perfected
for purposes of the UCC or effective against the Trust’s creditors and
subsequent purchasers of the Collateral pursuant to insurance or other
applicable law;

 

(xvi)                         commingle the assets held in
the Trust with assets of any of its Affiliates, or guarantee any obligation of
any of its Affiliates; or

 

(xvii)                      maintain any joint account with
any Person or become a party, whether as co-obligor or otherwise, to any
agreement to which any Person is a party (other than in respect of the Program
Documents), or become liable as a guarantor or otherwise with respect to any
Indebtedness or contractual obligation of any Person.

 

(c)                                  The
Trust, Trustee and Administrator acting on behalf of the Trust shall not,
notwithstanding any other provision of this Agreement, take any action that
would cause the Trust not to be treated as a grantor trust for U.S. federal
income tax purposes.

 

(d)                                 The
Trustee shall, based on the advice of counsel, defend against all claims and
demands of all Persons at any time claiming any Lien on any of the assets of
the Trust adverse to the interest of the Trust or any Securityholder, other
than the security interests in the Collateral granted in favor of the Indenture
Trustee for the benefit of each Holder of the Series of Notes pursuant to
the Indenture.

 

(e)                                  If
and for so long as the Funding Agreements are held by the Trustee for the
benefit of the Trust, the Trustee shall not (i) waive any default under
the relevant Funding Agreements or (ii) consent to any amendment,
modification or termination of the relevant Funding Agreements, without, in
each case, obtaining the prior approval of the Indenture Trustee in accordance
with the Indenture and an opinion of counsel experienced in such matters to the
effect that any such action shall not cause the Trust not to be treated as a
grantor trust for U.S. federal income tax purposes. The Trustee, upon a
Responsible Officer obtaining actual knowledge of the occurrence of a Funding
Agreement Event of Default, will notify the Indenture Trustee of any such
Funding Agreement Event of Default.

 

(f)                                    The
Trustee is authorized and directed to conduct the affairs of the Trust and to
operate the Trust (i) so that the Trust will not become required to
register as an “investment company” under the Investment Company Act, and (ii) so
that the Trust will not fail to be treated as a grantor trust for U.S. federal
income tax purposes. In connection with the preceding sentence, the Trustee
shall have no duty to determine whether any action it takes complies with the
preceding sentence and shall be entitled to rely conclusively on an opinion of counsel
with respect to any such matters.

 

Section 6.02 General Duties.
It shall be the duty of the Trustee to discharge, or cause to be discharged,
all of its responsibilities pursuant to the terms of this Agreement, or any
other documents or instruments to which it is a party, and to administer the
Trust, in accordance with the provisions of this Agreement and the other
Program Documents and any other documents or instruments to which the Trust is
a party. Notwithstanding the foregoing, the Trustee shall be deemed to have
discharged its duties and responsibilities under this Agreement and any other
documents or instruments to which it is a party to the extent (a) such
duties and responsibilities shall have been performed by the Administrator and (b) the
Administrator is required or permitted hereunder, under the Administrative
Services Agreement or under any other documents or instruments to which the
Trust is a party to perform such act or discharge such duty of the Trustee
or the Trust; provided, however,
that the Trustee shall not be held liable for the default or failure of the
Administrator to carry out its required obligations hereunder or thereunder.

 

12

 

Section 6.03 Specific Duties.

 

(a)                                  The
Trustee undertakes to perform only such duties as are specifically set
forth in this Agreement and as it may be directed from time to time by the
Trust Beneficial Owner and the Indenture Trustee in accordance with the terms
of this Agreement and the Indenture.

 

(b)                                 The
Trustee agrees that it will not manage, control, use, sell, dispose of or
otherwise deal with the Collateral except as expressly required or permitted by
the terms of this Agreement and the Indenture.

 

Section 6.04 Acceptance of
Trust and Duties; Limitation on Liability. The Trustee accepts the
trust hereby created and agrees to perform its duties hereunder with
respect to the same, but only upon the terms of this Agreement. No implied
covenants or obligations shall be read into this Agreement. The Trustee shall
not be liable hereunder under any circumstances or for any action or failure to
act, except for (i) its own willful misconduct, bad faith or gross
negligence, (ii) its failure to use ordinary care to disburse funds, or (iii) the
inaccuracy of any representation or warranty contained herein expressly made by
it. In particular (but without limitation), subject to the exceptions set forth
in the preceding sentence:

 

(a)                                  the
Trustee shall not be liable for any error of judgment made in good faith by any
of its responsible officers, unless such error of judgment constitutes gross
negligence;

 

(b)                                 the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written instructions of the Trust
Beneficial Owner or the Indenture Trustee or pursuant to the advice of counsel,
accountants or other experts selected by it in good faith, so long as such
action or omission is consistent with the terms of this Agreement and the
Indenture;

 

(c)                                  no
provision of this Agreement shall require the Trustee to expend or risk
personal funds or otherwise incur any financial liability in the performance of
any of its rights or powers hereunder if the Trustee has reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured or provided to it;

 

(d)                                 under
no circumstances shall the Trustee be liable for indebtedness or other
obligations evidenced by or arising under this Agreement, the Funding
Agreements or any related document, including the principal of and interest on
the Notes and payments on the Trust Beneficial Interests;

 

(e)                                  the
Trustee shall not be responsible for, or in respect of, the validity or
sufficiency of this Agreement or any related document or for the due execution
hereof or thereof by any party (except by the Trustee itself) or for the form,
character, genuineness, sufficiency, value or validity of any of the
Collateral, other than, in the case of the Trustee, the execution of any
certificate;

 

(f)                                    the
Trustee shall not be liable for any action, inaction, default or misconduct of
the Administrator, the Indenture Trustee or any Paying Agent under the
Indenture, the Notes or any related documents or otherwise, and the Trustee
shall not have any obligation or liability to perform the obligations of
the Trust under this Agreement or any related document or under any federal,
state, foreign or local tax or securities law, in each case, that are required
to be performed by other Persons, including the Administrator hereunder or
under the Administrative Services Agreement or the Indenture Trustee under the
Indenture;

 

(g)                                 the
Trustee shall not be liable for any action, inaction, default or misconduct of
Protective Life, and the Trustee shall not have any obligation or liability to
perform the obligations of Protective Life under the Funding Agreements or
any related documents;

 

(h)                                 the
Trustee shall not be under any obligation to exercise any of the rights or
powers vested in it by this Agreement, or to institute, conduct or defend any
litigation under this Agreement or otherwise or in relation to this Agreement
or any related document, at the request, order or direction

 

13

 

of any Person unless such Person has offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Trustee. The right of the Trustee to perform any
discretionary act enumerated in this Agreement or in any related document shall
not be construed as a duty, and the Trustee shall not be answerable for other
than its gross negligence or willful misconduct in the performance of any such
act;

 

(i)                                     except
as expressly provided herein, in accepting the trusts hereby created the
Trustee acts solely as trustee hereunder and not in its individual capacity,
and all persons having any claim against the Trustee by reason of the
transactions contemplated by this Agreement shall look only to the Trust’s
property for payment or satisfaction thereof;

 

(j)                                     the
Trustee shall not have any responsibility or liability for or with respect to
the genuineness, value, sufficiency or validity of any Collateral, and the
Trustee shall in no event assume or incur any liability, duty or obligation to
the Trust Beneficial Owner or any other Person other than as expressly provided
for herein;

 

(k)                                  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note or other
paper or document;

 

(l)                                     every
provision of this Agreement relating to the Trustee shall be subject to the
provisions of this Article 6;

 

(m)                               except
in accordance with the written instructions furnished by the Trust Beneficial
Owner or as provided herein, the Trustee shall have no duty (i) to see to
any recording or filing of any document, (ii) to confirm or verify any
financial statements of the Trust Beneficial Owner or the Indenture Trustee, (iii) to
inspect the Trust Beneficial Owner’s or the Indenture Trustee’s books and
records at any time or (iv) to see to the payment or discharge of any tax,
assessment or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against any part of the Trust,
except to the extent the Trustee has received funds, on behalf of the Trust,
pursuant to the Expense and Indemnity Agreement from Protective Life in
satisfaction of any such tax, assessment or other governmental charge or any
lien or encumbrance of any kind and in accordance with payment or transfer
instructions provided by Protective Life;

 

(n)                                 the
Trustee shall have no duty or obligation to manage, control, use, sell, dispose
of or otherwise deal with the Trust or to otherwise take or refrain from taking
any action under this Agreement, except as expressly required by the terms
hereof, or as expressly provided in written instructions from the Trust
Beneficial Owner, and in no event shall the Trustee have any implied duties or
obligations under this Agreement; the Trustee nevertheless agrees that it will,
at its own cost and expense, promptly take all action as may be necessary
to discharge any liens on any part of the property of the Trust which
result from claims against the Trustee personally that are not related to the
ownership or the administration of the property of the Trust or the
transactions contemplated by the Program Documents;

 

(o)                                 the
Trustee shall not be required to take any action under this Agreement unless
the Trustee shall have been indemnified by Protective Life, in manner and form satisfactory
to the Trustee, against any liability, cost or expenses (including counsel fees
and disbursements) which may be incurred in connection therewith, and, if
the Trust Beneficial Owner shall have directed the Trustee to take any such
action or refrain from taking any action, the Trust Beneficial Owner agrees to
furnish such indemnity from Protective Life as shall be required and, in
addition, to cause Protective Life to pay the reasonable compensation of the
Trustee for the services performed or to be performed by it pursuant to such
direction; provided, that the
Trustee may not be indemnified by Protective Life, the Trust Beneficial
Owner or any other Person for the Trustee’s willful misconduct or gross
negligence, its failure to use ordinary care to disburse funds or the
inaccuracy of its own representations or warranties,

 

14

 

made in its individual capacity, contained herein; provided, further, that any indemnity or
payment of compensation shall be made pursuant to the Expense and Indemnity
Agreement and shall be limited to the extent indicated therein;

 

(p)                                 the
Trustee shall not be required to take any action under this Agreement if the
Trustee shall reasonably determine or shall have been advised by counsel that
such action is contrary to the terms of this Agreement or is otherwise contrary
to law;

 

(q)                                 the
Trustee may fully rely upon and shall have no liability in connection with
calculations or instructions forwarded to the Trustee by the Trust Beneficial
Owner or the Indenture Trustee, nor shall the Trustee have any obligation to
furnish information to any Trust Beneficial Owner or other Person if it has not
received such information as it may need from the Trust Beneficial Owner,
or the Indenture Trustee or any other Person;

 

(r)                                    the
Trustee shall not be liable with respect to any act or omission in good faith in
accordance with the advice or direction of the Trust Beneficial Owner or
Indenture Trustee. Whenever the Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement, or is
unsure as to the application, intent, interpretation or meaning of any
provision hereof, the Trustee may give notice (in such form as shall
be appropriate under the circumstances) to the Trust Beneficial Owner
requesting instructions as to the course of action to be adopted, and, to the
extent the Trustee acts in good faith in accordance with any such instruction
received, the Trustee shall not be liable on account of such action to any
Person. If the Trustee shall not have received appropriate instructions within
ten days of such notice (or within such shorter period of time as reasonably may be
specified in such notice or may be necessary under the circumstances), it
may, but shall be under no duty to, take or refrain from taking such action
which is consistent, in its view, with this Agreement and as it shall deem to
be in the best interest of the Trust Beneficial Owner, and the Trustee shall
have no liability to any Person for such action or inaction;

 

(s)                                  in
no event whatsoever shall the Trustee be personally liable for any representation,
warranty, covenant, agreement, indebtedness or other obligation of the Trust;

 

(t)                                    the
Trustee shall incur no liability if, by reason of any provision of any present
or future law or regulation thereunder, or by any force majeure event, including
but not limited to natural disaster, war or other circumstances beyond its
control, the Trustee shall be prevented or forbidden from doing or performing
any act or thing which the terms of this Agreement provide shall or may be
done or performed; and

 

(u)                                 notwithstanding
anything contained herein to the contrary, the Trustee shall not be required to
execute, deliver or certify on behalf of the Trust any filings, certificates,
affidavits or other instruments required under the Sarbanes-Oxley Act of 2002.

 

Section 6.05 Reliance; Advice
of Counsel.

 

(a)                                  The
Trustee shall incur no liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond or other document or paper reasonably believed by it in good
faith to be genuine and signed by the proper party or parties. The Trustee may accept
a certified copy of a resolution of the board of directors or other governing
body of any corporate party as conclusive evidence that such resolution has
been duly adopted by such body and that the same is in full force and effect.
As to any fact or matter the manner of ascertainment of which is not
specifically prescribed herein, the Trustee may for all purposes hereof
rely on a certificate, signed by the president or any vice president or by the
treasurer or any assistant treasurer or the secretary or any assistant
secretary of the relevant party, as to such fact or matter, and such
certificate shall constitute full protection to the Trustee for any action
taken or omitted to be taken by it in good faith in reliance thereon.

 

15

 

(b)                                 In
the exercise or administration of the Trust, the Trustee (i) may act
directly or, at the expense of the Trust, through agents or attorneys pursuant
to agreements entered into with any of them, and the Trustee shall not be
liable for the action, inaction, default or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Trustee in
good faith and with reasonable care, and (ii) may consult with
counsel, accountants and other skilled persons to be selected in good faith and
with reasonable care and employed by it, and it shall not be liable for
anything done, suffered or omitted to be done in good faith by it in accordance
with the written opinion or advice of any such counsel, accountants or other
skilled persons.

 

Section 6.06 Delegation of
Authorities and Duties. The Trustee delegates to the Administrator
all duties required to be performed by the Administrator pursuant to the terms
of this Agreement and the Administrative Services Agreement. The Trustee
delegates to the Indenture Trustee all duties required to be performed by the
Indenture Trustee pursuant to the terms of this Agreement and the Indenture.
The Trustee undertakes no responsibility for the performance, or
non-performance, of any duties delegated to the Indenture Trustee or the
Administrator hereunder or thereunder.

 

ARTICLE 7

Liquidation and Termination

 

Section 7.01 Termination Upon
the Expiration Date. Unless earlier terminated, the Trust shall
terminate on the Trust Expiration Date.

 

Section 7.02 Termination of
Agreement. This Agreement and the Trust created and continued hereby
shall terminate upon the latest to occur of the following: (a) a
distribution by the Trustee to Securityholders upon the liquidation of the
Trust pursuant to Section 7.03 of all amounts required to be distributed
hereunder upon the final payment of the Trust Securities; (b) the payment
of, or reasonable provision for payment of, all expenses and other liabilities
owed by the Trust; and (c) the discharge of all administrative duties of
the Trustee and Administrator including the performance of any tax reporting
obligations with respect to the Trust or the Securityholders.

 

Section 7.03 Liquidation.
Upon the Trust Expiration Date, the remaining Collateral and any other assets
held in the Trust shall be liquidated and distributed as follows: (i) the
Trust shall first pay all amounts due and unpaid on the Notes, if any, in
accordance with the Indenture, (ii) the Trust shall then pay any other
claims, including expenses relating to such liquidation to the extent not paid,
or reasonably provided for, pursuant to the Expense and Indemnity Agreement, and
(iii) the Trust shall then pay to the Trust Beneficial Owner all of the
amounts that would be payable under clause first of Section 5.02 of the
Indenture to the Trust Beneficial Owner if the Trust Beneficial Owner held a
Note with an original principal amount of $15. Any remaining monies and other
property shall be paid ratably in proportion to their original principal
amounts to the Holders last noted in the Register as the Holders of the Notes
and the Trust Beneficial Owner (as if the Trust Beneficial Owner held a Note
with an original principal amount of $15 and as if each such Holder continued
to hold its Notes after all amounts due on such Notes under the Indenture have
been paid).

 

ARTICLE 8

Successor and Additional Trustees

 

Section 8.01 Eligibility
Requirements for the Trustee. The Trustee shall at all times (a) be
a Person organized and doing business under the laws of the State of Delaware, (b) be
authorized to exercise corporate trust powers, (c) have a combined capital
and surplus of at least $50,000,000 and be subject to supervision or
examination by Federal or State authorities, (d) have (or have a parent
which has) a rating of at least Baa3 by Moody’s or BBB- by Standard &
Poor’s, (e) be a “bank” within the meaning of Section 581 of the Code
and (f) be a “United States person” within the meaning of Section 7701(a)(30)
of the Code. In addition, the Trustee shall be an entity with its Corporate
Trust

 

16

 

Office in the State of Delaware. If the Trustee shall publish reports
of condition at least annually, pursuant to applicable law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section 8.01,
the combined capital and surplus of the Trustee shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 8.01,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 8.02.

 

Section 8.02 Resignation or
Removal of the Trustee. The Trustee may at any time resign and
be discharged from its duties hereunder and the Trust hereby created by giving
written notice thereof to the Trust Beneficial Owner and Indenture Trustee at
least 90 days before the date specified in such instrument. Upon receiving
such notice of resignation, the Trust Beneficial Owner shall promptly appoint a
successor Trustee meeting the qualifications set forth in Section 8.01 by written instrument,
in duplicate, one copy of which instrument shall be delivered to each of the
resigning Trustee, the successor Trustee, any remaining Trustees, the
Administrator, the Indenture Trustee and Protective Life. If no successor
Trustee shall have been so appointed and have accepted appointment within
90 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.01
and shall fail to resign after written request therefor by the Trust Beneficial
Owner and Indenture Trustee, or if at any time the Trustee shall be legally
unable to act or shall be adjudged bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation, then the Trust Beneficial Owner
and Indenture Trustee may remove such Trustee. If the Trust Beneficial
Owner and Indenture Trustee shall remove the Trustee under the authority of the
immediately preceding sentence, the Trust Beneficial Owner shall promptly
appoint a successor Trustee meeting the qualification requirements of Section 8.01 by (i) the
execution of a written instrument, one copy of which instrument shall be
delivered to each of the outgoing Trustee so removed, the successor Trustee,
the Administrator, the Indenture Trustee and Protective Life and (ii) the
payment of all fees and expenses owed to the outgoing Trustee.

 

Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 8.02 shall not become
effective until all fees and expenses, including any indemnity payments, due to
the outgoing Trustee have been paid and until acceptance of appointment by the
successor Trustee pursuant to Section 8.03.

 

Section 8.03 Successor Trustee.
Any successor Trustee appointed pursuant to Section 8.02
shall execute, acknowledge and deliver to the Trust Beneficial Owner, the
Administrator, the Indenture Trustee and the predecessor Trustee an instrument
accepting such appointment under this Agreement, and thereupon the resignation
or removal of the predecessor Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties, and obligations of its predecessor under
this Agreement, with like effect as if originally named as Trustee. The
predecessor Trustee shall deliver to the successor Trustee all documents and
statements and monies held by it under this Agreement; and the predecessor
Trustee shall execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Trustee all such rights, powers, duties and obligations.

 

No successor Trustee shall accept appointment as provided in this Section 8.03 unless at the time of
such acceptance such successor Trustee shall be eligible pursuant to Section 8.01.

 

Section 8.04 Merger or
Consolidation of Trustee. Any Person into which the Trustee may be
merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion

 

17

 

or consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall, without the execution or filing of any instrument or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding, be the successor of the Trustee hereunder; provided, such Person shall be eligible
pursuant to Section 8.01.

 

Section 8.05 Appointment of
Co-Trustee or Separate Trustee.

 

(a)                                  Notwithstanding
any other provisions of this Agreement, at any time, for the purpose of meeting
any legal requirements of any jurisdiction in which any part of any
Collateral may at the time be located, the Trustee shall have the power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee to act as co-trustee, jointly with it, or as separate
trustee or separate trustees, of all or any part of any Collateral, and
subject to Section 2.09 of
this Agreement to vest in such Person, in such capacity, such title to any
Collateral, or any part thereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Trustee may consider necessary or desirable. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of eligibility
as a successor Trustee pursuant to Section 8.03
and no notice of the appointment of any co-trustee or separate trustee shall be
required; provided, however, that
any co-trustee or separate trustee must be a “United States person” within the
meaning of Section 7701(a)(30) of the Code and a “bank” within the meaning
of Section 581 of the Code.

 

(b)                                 Each
separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and conditions:

 

(i)                                     all rights,
powers, duties, and obligations conferred or imposed upon the Trustee shall be
conferred upon and exercised or performed by the Trustee and such separate
trustee or co-trustee jointly (it being understood that such separate trustee
or co-trustee is not authorized to act separately without the Trustee joining
in such act), except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed, the Trustee shall be
incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations (including the holding of title to
the Trust or any portion thereof in any such jurisdiction) shall be exercised
and performed singly by such separate trustee or co-trustee, but solely at the
discretion of the trustee;

 

(ii)                                  the Administrator and
the Trustee acting jointly may at any time accept the resignation of or
remove any separate trustee or co-trustee; and

 

(iii)                               no trustee shall be
personally liable by reason of the act or omission of any other trustee
hereunder.

 

(c)                                  Any
notice, request or other writing given to the Trustee shall be deemed to have
been given to each of the then separate trustee and co-trustee, as effectively
as if given to each of them. Every instrument appointing any separate trustee
or co-trustee shall refer to this Section 8.05
and the conditions of this Article 8.
Each separate trustee and co-trustee, upon its acceptance of the trusts
conferred, shall be vested with the estates or property specified in its
instruments of appointment, either jointly with the Trustee or separately, as may be
provided therein, subject to all the provisions of this Agreement, specifically
including every provision of this Agreement relating to the conduct of,
affecting the liability of, or affording protection to, the Trustee. Each such
instrument shall be filed with the Trustee and a copy thereof given to the
Administrator.

 

(d)                                 Any
separate trustee or co-trustee may at any time appoint the Trustee as its
agent or attorney-in-fact with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement
on its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, 

 

18

 

rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor Trustee.

 

Section 8.06 Trustee May Own
Notes. Except to the extent prohibited under the terms of the Series of
Notes, the Trustee, in its individual or any other capacity, may become
the beneficial owner or pledgee of Notes, to the extent that such ownership
does not inhibit the Trust from relying on Rule 3a-7 promulgated under the
Investment Company Act, with the same rights as it would have if it were not
the Trustee; provided, that any
Notes so owned or pledged shall not be entitled to participate in any decisions
made or instructions given to the Trustee or the Indenture Trustee by the
Holders as a group. The Trustee may deal with the Trust and the Trust
Beneficial Owner in banking and trustee transactions with the same rights as it
would have if it were not the Trustee.

 

ARTICLE 9

Voting; Acts of Securityholders; Meetings

 

Section 9.01 Limitations on
Voting Rights. Except as provided in this Agreement or in the
Indenture or as otherwise required by law, no Holder of Trust Securities shall
have any right to vote or in any manner otherwise control the administration,
operation and management of the Trust or the obligations of the parties hereto,
nor shall anything herein set forth, or contained in the terms of the Trust
Securities, be construed so as to constitute the Securityholders from time to
time as partners or members of an association.

 

Section 9.02 Meetings of the
Trust Beneficial Owner. No annual or other meeting of the Trust
Beneficial Owner is required to be held.

 

ARTICLE 10

Miscellaneous Provisions

 

Section 10.01 Limitation on
Rights of Securityholders.

 

(a)                                  The
death, bankruptcy, termination, dissolution or incapacity of any Person having
an interest, beneficial or otherwise, in Trust Securities or the Trust shall
not operate to terminate this Agreement, nor to annul, dissolve or terminate
the Trust, nor to entitle the legal successors, representatives or heirs of
such Person or any Securityholder for such Person, to claim an accounting, take
any action or bring any proceeding in any court for a partition or winding up
of the arrangements contemplated hereby, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

 

(b)                                 Except
as provided in the Indenture, no Securityholder shall have any right by virtue
of any provision of this Agreement to institute any suit, action or proceeding
in equity or at law with respect to this Agreement, unless (i) the
Securityholders shall have made written request upon the Trustee to institute
such suit, action or proceeding in the name of the Trust and shall have offered
to the Trustee and the Trust such reasonable indemnity as they may require
against the costs, expenses and liabilities to be incurred thereby and (ii) the
Trustee, for 30 days after its receipt of such notice, request and offer
of indemnity, shall have neglected or refused to institute any such suit,
action or proceeding. It is expressly understood and covenanted by each
Securityholder with every other Securityholder, the Trust and the Trustee, that
no one or more Securityholder shall have any right in any manner whatever by
availing itself or themselves of any provision of this Agreement to affect,
disturb or prejudice the rights of any other Securityholder, or to obtain or
seek to obtain priority over or preference to any other such Securityholder, or
to enforce any right under this Agreement, except in the manner herein
provided.

 

Section 10.02 Amendment.

 

(a)                                  At
any time before the issuance of any Notes, this Trust Agreement may be
amended by, and only by, a written instrument executed by Trustee and the Trust
Beneficial Owner.

 

19

 

(b)                                 At
any time after the issuance of any Notes, this Agreement may be amended
from time to time by the Trustee and the Trust Beneficial Owner, by, and only
by, a written instrument executed by the Trustee and the Trust Beneficial
Owner, in any way that is not inconsistent with the intent of this Agreement,
including, without limitation, (i) to cure any ambiguity, (ii) to
correct, supplement or modify any provision in this Agreement that is
inconsistent with another provision herein or, (iii) to modify, eliminate
or add to any provisions of this Agreement to the extent necessary to ensure
that the Trust will be classified for U.S. federal income tax purposes as a
grantor trust at all times or to ensure that the Trust will not be required to
register as an investment company under the Investment Company Act and no such
amendment shall require the consent of any other Securityholder, except to the extent
specified in Sections 10.02(c) and
10.02(d).

 

(c)                                  At
any time after the issuance of any Notes and for so long as any Notes remain
outstanding, except as provided in Section 10.02(d),
any amendment to this Trust Agreement that would adversely affect, in any
material respect, the terms of any Notes, other then any amendment of the type
contemplated by clause (iii) of Section 10.02(b),
shall require the prior consent of the Holders of a majority of the outstanding
principal amount of the Notes.

 

(d)                                 At
any time after the issuance of any Notes and for so long as any Notes remain
outstanding, this Agreement may not be amended to (i) change the
amount or timing of any payment of any Notes or (ii) impair the right of
any Holder to institute suit for the enforcement of any right for principal and
interest or other distribution without the consent of each affected
Securityholder.

 

(e)                                  The
Trustee shall not be required to enter into any amendment to this Agreement
which affects its own rights, duties or immunities under this Agreement.

 

(f)                                    Prior
to execution of any amendment to this Agreement, the Trustee shall be entitled
to an opinion of counsel as to whether such amendment is permitted by the terms
of this Agreement and whether all conditions precedent to such amendment have
been met.

 

(g)                                 Promptly
after the execution of any such amendment or consent, the Administrator shall
furnish a copy of such amendment or consent (including those obtained or
effected hereby) to the Indenture Trustee, the Trust Beneficial Owner, the
agents and dealers under the Program Distribution Agreements and the Rating
Agencies;

 

(h)                                 Notwithstanding
any other provision of this Agreement, (i) no amendment to this Agreement may be
made if such amendment would cause the Trust not to be treated as a grantor
trust for U.S. federal income tax purposes and (ii) no amendment to this
Agreement may be made without the prior consent of Protective Life.

 

Section 10.03 Notice.
All demands, notices, instructions and other communications shall be in writing
(including telecopied or telegraphic communications) and shall be personally
delivered, mailed or transmitted by telecopy or telegraph, respectively,
addressed as set forth below:

 

If to Trustee:

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

 

If to the Administrator or Trust Beneficial Owner:

 

AMACAR Pacific Corp.

6525 Morrison Blvd., Suite 318

 

20

 

Charlotte, North Carolina 28211

Attention: Douglas K. Johnson

 

with a copy to:

 

Tannenbaum Helpern Syracuse & Hirschtritt LLP

900 3rd Avenue

New York, NY 10022

Attention: Stephen Rosenberg

 

If to the Indenture Trustee, at

 

The Bank of New York

100 Church Street

8th Floor

New York, New York 10286

Attention: Dealing and Trading

 

or at such other address as shall be designated by any such party in a
written notice to the other parties. Notwithstanding the foregoing, any notice
required or permitted to be mailed to the Trust Beneficial Owner shall be given
by first class mail, postage prepaid, at the address of the Trust
Beneficial Owner as shown in the Securities Register, and any notices mailed
within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given, whether or not the Trust Beneficial Owner received such
notice. Any notice required or permitted to be mailed to any Holder of a Note
shall be given as specified in the Indenture.

 

Section 10.04 No Recourse.
The Trust Beneficial Owner acknowledges that the Trust Beneficial Interest
represents a beneficial interest in the Trust only and does not represent an
obligation of Protective Life, the Trustee, the Administrator, the Indenture
Trustee or any Affiliate of any of the foregoing and no recourse may be
had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement or the Indenture.

 

Section 10.05 No Petition.
To the extent permitted by applicable law, each of the Trustee and the Trust
Beneficial Owner hereby covenants and agrees that it will not institute
against, or join with any other Person in instituting against, the Trust any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under the laws of any jurisdiction. This Section 10.05 shall survive
termination of this Agreement.

 

Section 10.06 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware without regard to the principles of conflicts of laws
thereof and the obligations, rights and remedies of the parties under this
Agreement shall be determined in accordance with such laws.

 

Section 10.07 Severability.
If any provision in this Agreement shall be invalid, illegal or unenforceable,
such provisions shall be deemed severable from the remaining provisions of this
Agreement and shall in no way affect the validity or enforceability of such
other provisions of this Agreement.

 

Section 10.08 Trust Securities
Nonassessable and Fully Paid. Securityholders shall not be
personally liable for the obligations of the Trust. The fractional undivided
beneficial interest in the assets held in the Trust represented by the Trust
Beneficial Interest shall be nonassessable for any losses or expenses related
to the Trust or for any reason whatsoever. The Notes, upon execution thereof by
the Trustee pursuant to the Indenture and upon receipt of payment therefore,
are and shall be deemed fully paid.

 

Section 10.09 Third-Party
Beneficiaries. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted
assigns. Except as otherwise provided in this Agreement, no other Person shall
have any right or obligation hereunder.

 

21

 

EXHIBIT B

 

 

STANDARD ADMINISTRATIVE SERVICES TERMS

 

with respect to

 

PROTECTIVE LIFE SECURED TRUSTS

 

Dated as of November 7, 2003

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
   

  	
  Administrative Services; Consultations with the Trust

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
   

  	
  Activities of the Trust; Employees; Offices

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
   

  	
  Compensation; Indemnities

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
   

  	
  Term

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
   

  	
  Obligation to Supply Information

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
   

  	
  The Administrator’s Liability, Standard of Care

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
   

  	
  Limited Recourse to Trust

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.

  	
   

  	
  No Recourse

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.

  	
   

  	
  Reliance on Information Obtained from Third Parties

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.

  	
   

  	
  Tax Returns

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.

  	
   

  	
  Amendment

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.

  	
   

  	
  No Joint Venture

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 14.

  	
   

  	
  Assignment

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 15.

  	
   

  	
  GOVERNING LAW, CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 16.

  	
   

  	
  Treatment of Trust

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 17.

  	
   

  	
  Limitation of Trustee Liability

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 18.

  	
   

  	
  Section Headings

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 19.

  	
   

  	
  Nonpetition Covenant

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 20.

  	
   

  	
  Severability

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 21.

  	
   

  	
  Entire Agreement

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 22.

  	
   

  	
  Administrator to Provide Access to Books and Records

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 23.

  	
   

  	
  No Waiver

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 24.

  	
   

  	
  Remedies Cumulative

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 25.

  	
   

  	
  Notices

  	
   

  	
  8

  

 

i

 

This document constitutes the Standard Administrative Services Terms,
dated as of November 7, 2003, that may be incorporated by reference
in one or more Administrative Services Agreements (included in Section B of the Omnibus Instrument,
as defined below) between the Trust and AMACAR Pacific Corporation, a Delaware
corporation (as “Administrator”).

 

These Standard Administrative Services Terms shall be of no force and
effect unless and until incorporated by reference in, and then only to the
extent not modified by, an Administrative Services Agreement.

 

The following terms and provisions shall govern the administration of
the activities of each Delaware statutory trust and Delaware common law trust
created under the Program subject to contrary terms and provisions expressly
adopted in any Administrative Services Trust Agreement which contrary terms
shall be controlling.

 

W I T N E S S E T H

 

WHEREAS, Protective Life Insurance Company, a Tennessee stock life
insurance company (“Protective Life”)
intends to establish the Program pursuant to which up to U.S. $3,000,000,000 of
funding agreement-backed notes will be issued by either (i) a newly
established Delaware statutory trust (each a “Statutory
Trust”) or a newly established Delaware Common Law Trust (each a “Common Law Trust”);

 

WHEREAS, each trust formed under the Program will issue one series of
notes (each a “Series of Notes”)
to the public pursuant to an indenture to be entered into between the Trust (as
defined below) and The Bank of New York, as indenture trustee (the “Indenture Trustee”);

 

WHEREAS, each Statutory Trust will be organized under the laws of the
State of Delaware, pursuant to a Statutory Trust Agreement (each Statutory
Trust Agreement will incorporate the Standard Statutory Trust Terms) to be
entered into between Wilmington Trust Company, as Delaware trustee, and AMACAR
Pacific Corp., as administrator and trust beneficial owner, (each a “Statutory Trust Agreement”);

 

WHEREAS, each Common Law Trust will be organized under the laws of the
State of Delaware, pursuant to a Common Law Trust Agreement (each Common Law
Trust Agreement will incorporate the Standard Common Law Trust Terms) to be
entered into between Wilmington Trust Company, as trustee, and AMACAR Pacific
Corp., as administrator and trust beneficial owner (each a “Common Law Trust
Agreement”);

 

WHEREAS, the proceeds from the sale by the Trust of its Series of
Notes are to be used to purchase one or more Funding Agreements issued by
Protective Life;

 

WHEREAS, the Trust has requested that the Administrator provide advice
and assistance to the Trust and perform various services for the Trust;
and

 

WHEREAS, the Trust desires to avail itself of the experience, advice
and assistance of the Administrator and to have the Administrator perform various
financial, statistical, accounting and other services for the Trust, and the
Administrator is willing to furnish such services on the terms and conditions
herein set forth.

 

NOW THEREFORE, the parties hereto, intending to be legally bound and in
consideration of the premises and the mutual covenants herein contained, agree
as follows:

 

Section 1. Definitions.

 

“Agreement” means that
certain Administrative Services Agreement in substantially the same form included
in Section B of the Omnibus
Instrument, as amended, modified or supplemented from time to time, that
incorporates by reference these Standard Administrative Services Terms.

 

“Omnibus Instrument”
means the omnibus instrument pursuant to which certain Program Documents are
executed and the Trust is established.

 

 

“Pricing Supplement”
means, the pricing supplement attached to the Omnibus Instrument as Exhibit G
as prepared by the Trust, in consultation with Protective Life, in connection
with the issuance by the Trust of its Series of Notes and agreed to by
Protective Life, the Trust and the relevant dealers or agents under the
relevant Program Distribution Agreement, as such Pricing Supplement may be
amended, modified, supplemented or replaced from time to time.

 

“Trust” means the
Protective Life Secured Trust specified in the Omnibus Instrument, together
with its permitted successors and assigns.

 

“Trust Agreement” means
the Statutory Trust Agreement or Common Law Trust Agreement, as applicable,
pursuant to which the Trust is created.

 

“Trustee” means
Wilmington Trust Company, a Delaware banking corporation, and shall also
include its permitted successors and assigns, or any successor Trustee solely
in its capacity as trustee of the Trust and not it its individual capacity.

 

All capitalized terms used herein and not otherwise defined will have
the meanings set forth in that certain Indenture, dated as of the date specified
in the Omnibus Instrument, between the Trust and The Bank of New York, as
indenture trustee (the “Indenture”).

 

Section 2. Administrative
Services; Consultations with the Trust.

 

The Trust hereby authorizes and empowers the Administrator, as its agent,
to perform, and the Administrator hereby agrees to perform, the following
services:

 

(a)                                  Subject to the timely
receipt of all necessary information, providing, or causing to be provided, all
clerical, and bookkeeping services necessary and appropriate for the Trust,
including, without limitation, the following services as well as those other
services specified in the following subsections:

 

(i)                                     maintenance of all
books and records of the Trust relating to the fees, costs and expenses of the
Trust which books and records shall be maintained separately from those of the
Administrator;

 

(ii)                                  maintenance of
records of cash payments and disbursements (excluding principal and interest on
the Funding Agreements) of the Trust in accordance with generally accepted
accounting principles, and preparation for audit of such periodic financial
statements as may be necessary or appropriate;

 

(iii)                               upon request preparation
for execution by the Trust, through a Responsible Officer, of amendments to and
waivers under the Program Documents and any other documents or instruments
deliverable by the Trust thereunder or in connection therewith;

 

(iv)                              holding, maintaining, and
preserving executed copies of the Program Documents and other documents or
instruments executed by the Trust thereunder or in connection therewith, which
shall be maintained separately from those of the Administrator;

 

(v)                                 upon receipt of
notice, taking such action as may be reasonably necessary to enforce the
performance by the other parties to agreements as to which the Trust is a
party, and enforce the obligations of those parties to the Trust under such
agreements;

 

(vi)                              upon request preparing
for a signature by a Responsible Officer such notices, consents, instructions
and other communications that the Trust may from time to time be required
or permitted to give under the Program Documents to which the Trust is a party
or any other document executed by the Trust;

 

(vii)                           obtaining services of
outside counsel, accountants and/or other service providers on behalf of the
Trust;

 

2

 

(viii)                        preparing for a signature by a
Responsible Officer any Trust Order for payment of any amounts due and owing by
the Trust under the Program Documents to which the Trust is a party or any
other document to which the Trust is a party; provided
that the foregoing shall not obligate the Administrator to advance any of its
own monies for such purpose, it being understood that such amounts shall be
payable only to the extent assets held in the Trust are available therefor and
at such times and in such amounts as shall be permitted by the Program
Documents;

 

(ix)                                preparing for a
signature by a Responsible Officer any Trust Order for payment of any amounts
due and owing by the Trust to the Indenture Trustee, the Paying Agent, the
Registrar and other agents on request for all expenses, disbursements and
advances to the extent not paid pursuant to the Expense and Indemnity
Agreement; provided that the
foregoing shall not obligate the Administrator to advance any of its own monies
for such purpose, it being understood that such amounts shall be payable only
to the extent assets held in the Trust are available therefor and at such times
and in such amounts as shall be permitted by the Program Documents; and

 

(x)                                   taking such other
actions as may be incidental or reasonably necessary (i) to the
accomplishment of the actions of the Administrator authorized in this subsection (a) or
(ii) upon receipt of notice from a Responsible Officer directing
specifically the Administrator to do so, to the accomplishment of the duties
and responsibilities, and compliance with the obligations, of the Trust, under
the Program Documents and under any other document to which the Trust is or may be
a party to the extent not otherwise performed by the Indenture Trustee, Paying
Agent, Transfer Agent, Registrar or the Trustee, provided that no such duties
or responsibilities shall materially enlarge the duties and responsibilities of
the Administrator which are set forth specifically in this Agreement.

 

(b)                                 Upon
the issuance of a Series of Notes, directing the Indenture Trustee to pay
the costs and expenses of the Trust relating to such Series of Notes to
the extent not paid pursuant to the Expense and Indemnity Agreement.

 

(c)                                  Subject
to the timely receipt of all necessary information or notices from the Trustee,
and based on the advice of counsel, on behalf of the Trust, (i) filing
with the Commission and, if necessary, executing, in each case solely on behalf
of the Trust and not in the Administrator’s individual capacity such documents,
forms or filings as may be required by the Securities Act, the Securities
Exchange Act, the Trust Indenture Act, or other securities laws in each case
relating to the Trust’s Notes; (ii) the preparation and filing of any
documents or forms required to be filed by any rules or regulations of any
securities exchange, including without limitation, the New York Stock Exchange,
or market quotation dealer system or the National Association of Securities
Dealers, Inc. in connection with the listing of the Trust’s Series of
Notes thereon; (iii) filing and executing solely on behalf of the Trust
and not in the Administrator’s individual capacity, such filings, applications,
reports, surety bonds, irrevocable consents, appointments of attorney for
service of process and other papers and documents as may be necessary or
desirable to register, or establish the exemption from registration of, the
Trust’s Notes under the securities or “Blue Sky” laws of any relevant
jurisdictions; and (iv) executing and delivering, solely on behalf of the
Trust and not in the Administrator’s individual capacity, letters or documents
to, or instruments for filing with, a depositary relating to the Trust’s Notes;
and

 

(d)                                 Undertaking
such other administrative services as may be reasonably requested by the
Trustee, including (i) causing the preparation by the Trust of any
prospectus, prospectus supplement, pricing supplement, registration statement,
amendments, including any exhibits and schedules thereto, any reports or other
filings or documents, or supplement thereto or (ii) securing and
maintaining the listing of the Trust’s Notes on any securities exchange or
complying with the securities or “Blue Sky” laws of any relevant jurisdictions,
in connection with the performance by the Trust of its obligations under the
Program Documents or any other document to which the Trust is a party or other
documents executed thereunder or in connection therewith.

 

3

 

(e)                                  In
connection with the establishment of the Trust, the Administrator shall
purchase from the Trust, the Trust Beneficial Interest in the Trust in
accordance with the Trust Agreement and the Administrator shall be the sole
Trust Beneficial Owner in accordance with the Trust Agreement.

 

Any of the above services (other than those described in Sections 2(c) and
2(d)) may, if the Administrator or the Trust deems it necessary or desirable,
be subcontracted by the Administrator; provided
that notice is given to the Trust of such subcontract and,
notwithstanding such subcontract, the Administrator shall remain responsible
for performance of the services set forth above unless such services are
subcontracted to accountants or legal counsel selected with due care by the
Administrator and reasonably satisfactory to the Trust and in which case the
Administrator shall not remain responsible for the performance of such services
and the Administrator shall not, in any event, be responsible for the costs,
fees or expenses in connection therewith.

 

Section 3. Activities of the
Trust; Employees; Offices.

 

The Administrator agrees to carry out and perform the
administrative activities (as set forth in Section 2 hereof) of the Trust
in the name and on behalf of the Trust as its agent.

 

All services to be furnished by the Administrator under this Agreement may be
furnished by an officer or employee of the Administrator, an officer or
employee of any affiliate of the Administrator, or any other person or agent
designated or retained by it; provided that
the Administrator shall remain ultimately responsible for the provision of such
services by an officer or employee of the Administrator or any of its
affiliates or any other person or agent designated or retained by it, unless
selected with due care and reasonably satisfactory to the Trust in accordance
with the last paragraph of Section 2. No director, officer or employee of
the Administrator or any affiliate of the Administrator shall receive from the
Trust a salary or other compensation.

 

The Administrator agrees to provide its own office space, together with
appropriate materials and any necessary support personnel, for the day to day
activities (as set forth in Section 2 hereof) of the Trust to be carried
out and performed by the Administrator, all for the compensation provided in Section 4
hereof. All services to be furnished by the Administrator under this Agreement
shall be performed only from the Administrator’s office in North Carolina.

 

Section 4. Compensation;
Indemnities.

 

The Administrator will be entitled to payment of fees, reimbursement
for, and indemnification with respect to, costs and expenses for services
rendered hereunder to the extent provided in the Expense and Indemnity Agreement
and the Administrator will not be entitled to seek any payment from the Trust
with respect to its services hereunder.

 

Section 5. Term.

 

The Administrator may terminate this Agreement upon at least
30 days’ written notice to the Trust and Protective Life and the Trust may terminate
this Agreement upon at least 30 days’ notice to the Administrator (copies
of any notice of termination shall also be sent to the Indenture Trustee). Such
termination will not become effective until (i) the Trust appoints a successor
Administrator, (ii) the successor Administrator accepts such appointment
and (iii) the Administrator has obtained the prior written confirmation of
Moody’s Investors Service, Inc. (“Moody’s”)
and Standard & Poor’s Ratings Services (“S&P”) that such action will not result in a reduction or
withdrawal of its then current ratings, if any, of the Program and/or the Trust’s
Notes, as applicable. Upon such notice, the Administrator shall be paid all
accrued and unpaid amounts owed to the Administrator under the Expense and
Indemnity Agreement.

 

4

 

Section 6. Obligation to Supply
Information.

 

The Trustee shall forward to the Administrator such information (which
is in the possession of the Trust) in connection with the Program Documents and
this Agreement as the Administrator may from time to time reasonably
request in connection with the performance of its obligations hereunder. The
Administrator will (i) hold and safely maintain all records, files,
Program Documents and other material of the Trust and (ii) permit the
Trust, the Trustee, and each of their respective officers, directors, agents
and consultants on reasonable notice at any time and from time to time during
normal business hours to inspect, audit, check and make abstracts from the
accounts, records, correspondence, documents and other materials of the Trust,
or relating to the provision of services and facilities under this Agreement.

 

Section 7. The Administrator’s
Liability, Standard of Care.

 

The Administrator assumes no liability for anything other than the
services rendered by it pursuant to Sections 2, 3, 6 and 11 hereof and neither
the Administrator nor any of its directors, officers, employees or affiliates
shall be responsible for any action of the Trust, the Trustee or the officers
or employees thereof taken outside the scope of Sections 2, 3 and 11 hereof and
without direction from the Administrator. Without limiting the generality of
the foregoing, it is agreed that the Administrator assumes no liability with
respect to any of the Trust’s obligations under the Program Documents.

 

The Administrator shall not perform, endeavor to perform or agree
to perform any act on behalf of the Trust not specifically required or
permitted under the Program Documents.

 

The Administrator shall perform its duties hereunder diligently,
in conformity with the Trust’s obligations under the Program Documents and
applicable laws and regulations and in accordance with the same standard of
care exercised by a prudent person in connection with the performance of the
same or similar duties and, in no event with less care than the Administrator
exercises or would exercise in connection with the same or similar obligations
if those obligations were the direct obligations of the Administrator.

 

Section 8. Limited Recourse to
Trust.

 

Notwithstanding anything to the contrary contained herein, all
obligations of the Trust hereunder shall be payable by the Trust only on a
payment date of its Series of Notes and only to the extent of funds
available therefor under the Indenture and, to the extent such funds are not
available or are insufficient for the payment thereof, shall not constitute a
claim against the Trust to the extent of such unavailability or insufficiency
until such time as the Collateral held in the Trust has produced proceeds
sufficient to pay such prior deficiency. This Section 8 shall survive the
termination of this Agreement.

 

Section 9. No Recourse.

 

The obligations of the Trust hereunder are solely the obligations of
the Trust and no recourse shall be had with respect to this Agreement or any of
the obligations of the Trust hereunder or for the payment of any fee or other
amount payable hereunder or for any claim based on, arising out of or relating
to any provision of this Agreement against any trustee, employee, settlor,
affiliate, agent or servant of the Trust. This Section 9 shall survive the
termination of this Agreement.

 

Section 10. Reliance on
Information Obtained from Third Parties.

 

The Trust recognizes that the accuracy and completeness of the records
maintained and the information supplied by the Administrator hereunder is
dependent upon the accuracy and completeness of the information obtained by the
Administrator from the parties to the Program Documents and other sources and
the Administrator shall not be responsible for any inaccurate or incomplete
information so obtained or for any inaccurate or incomplete records maintained
by the Administrator hereunder that may result therefrom. The Administrator
shall have no duty to investigate the accuracy

 

5

 

or completeness of any information provided to it and shall be entitled
to fully rely on all such information provided to it.

 

Section 11. Tax Returns.

 

The Administrator shall, or shall cause accountants retained by it, to
prepare and file, consistent with the treatment of the Trust as a grantor
trust, all federal, state and local income tax and information returns and
reports required to be filed with respect to the Trust and the Trust’s Notes
under any applicable federal, state or local tax statute or any rule or
regulation under any of them. The Administrator shall keep copies of or cause
copies to be kept of the tax information returns (including Internal Revenue
Service Form 1041) and reports prepared and filed and shall provide a copy
of each such return and report to the Trustee.

 

Section 12. Amendment.

 

No waiver, alteration, modification, amendment or supplement of the
terms of this Agreement shall be effective unless (i) accomplished by
written instrument signed by the parties hereto and (ii) at any time after
the issuance of any Notes and for so long as any Notes remain outstanding,
Moody’s and S&P have confirmed in writing that such action will not result
in reduction or withdrawal of its then current ratings, if any, of the Program
and/or the Trust’s Notes, as applicable. The Trust shall provide each of
S&P and Moody’s with a copy of each such waiver, alteration, modification,
amendment or supplement. Notwithstanding anything in this Section 13 to
the contrary, no waiver, alteration, modification, amendment or supplement to
the terms of this Agreement shall be effective without the prior written
consent of Protective Life.

 

Section 13. No Joint Venture.

 

Nothing contained in this Agreement shall constitute the Trust and the
Administrator as members of any partnership, joint venture, association,
syndicate or unincorporated business.

 

Section 14. Assignment.

 

Except as set forth in this Section 15, and subject to the rights
of the Administrator to subcontract pursuant to Section 2 hereof, this
Agreement may not be assigned by either party without (i) the prior
written consent of the other party and (ii) the prior written confirmation
of Moody’s and S&P that such action will not result in a reduction or
withdrawal of its then current ratings, if any, of the Program and/or the Trust’s
Notes, as applicable. Subject to the foregoing, this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Any party’s transfer or assignment in violation of this
Section 15 shall be void as to the other party.

 

Section 15. GOVERNING LAW,
CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
FOR PURPOSES OF ALL LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY
HERETO HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY SUIT, ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT, OR ANY DOCUMENT DELIVERED PURSUANT
HERETO BY THE MAILING OF A COPY THEREOF BY

 

6

 

REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT
REQUESTED, TO ITS RESPECTIVE ADDRESS SPECIFIED AT THE TIME FOR NOTICES UNDER
THIS AGREEMENT OR TO ANY OTHER ADDRESS OF WHICH IT SHALL HAVE GIVEN WRITTEN
NOTICE TO THE OTHER PARTIES. THE FOREGOING SHALL NOT LIMIT THE ABILITY OF ANY
PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER JURISDICTION.

 

EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A
TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY TRANSACTION.

 

Section 16. Treatment of Trust.

 

The Administrator agrees, for U.S. federal, state and local income and
franchise tax purposes, to treat (i) the Trust as a grantor trust, (ii) the
Trust’s Notes as an ownership interest in such grantor trust and (iii) the
Funding Agreements as debt of Protective Life. The Administrator will not take
any action that it knows could cause the Trust not to be treated as a grantor
trust for U.S. federal income tax purposes.

 

Section 17. Limitation of
Trustee Liability.

 

Notwithstanding any provision hereof to the contrary, it is expressly
understood and agreed by the parties that (a) this Agreement is executed
and delivered by the Trustee, not individually or personally, but solely as
trustee, as applicable, in the exercise of the powers and authority conferred
and vested in it, pursuant to the Trust Agreement, (b) each of the
representations, undertakings and agreements herein made on the part of
the Trust is made and intended not as personal representations, undertakings
and agreements by the Trustee but is made and intended for the purpose of
binding only the Trust, (c) nothing herein contained shall be construed as
creating any liability on the Trustee, individually or personally, to perform any
covenant either expressed or implied contained herein, all such liability, if
any, being expressly waived by the parties hereto and by any person claiming
by, through or under the parties hereto, and (d) under no circumstances
shall the Trustee be personally liable for the payment of any indebtedness or
expenses of the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under this
Agreement or any other related documents.

 

Section 18. Section Headings.

 

Section headings used in this Agreement are for convenience only
and shall not affect the construction of this Agreement.

 

Section 19. Nonpetition
Covenant.

 

Notwithstanding any prior termination of this Agreement, the
Administrator as such shall not acquiesce, petition or otherwise, directly or
indirectly, invoke or cause the Trust to invoke the process of any governmental
authority for the purpose of commencing or sustaining a case against the Trust
under any Federal or state bankruptcy, insolvency or similar law or appointing
a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Trust or any substantial part of its property or
ordering the winding up or liquidation of the affairs of the Trust for one year
and one day after last obligation of the Trust has been paid.

 

Section 20. Severability.

 

In case one or more of the provisions contained in this Agreement shall
be or shall be deemed to be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby. If any provision
of this Agreement shall be or shall be deemed to be illegal, invalid or
unenforceable under

 

7

 

the applicable laws and regulations of one jurisdiction, such provision
shall not thereby be rendered illegal, invalid or unenforceable in any other
jurisdiction.

 

Section 21. Entire Agreement.

 

This Agreement constitutes the entire agreement between the parties
hereto with respect to matters covered hereby and supersedes all prior
agreements and understandings with respect to such matters between the parties.

 

Section 22. Administrator to
Provide Access to Books and Records.

 

The Administrator shall provide the Indenture Trustee with access to
the books and records of the Trust, without charge, but only (i) upon the
reasonable request of the Indenture Trustee (for which purpose one Business Day
shall be deemed reasonable during the occurrence and continuation of a Default
or an Event of Default), (ii) during normal business hours, (iii) subject
to the Administrator’s normal security and confidentiality procedures and (iv) at
offices designated by the Administrator.

 

Section 23. No Waiver.

 

No failure on the part of the parties hereto to exercise, and no
delay in exercising, and no course of dealing with respect to, any right, power
or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise thereof or the exercise of any other right, power or
privilege operate as such a waiver.

 

Section 24. Remedies Cumulative.

 

No right, power or remedy of the parties hereunder shall be exclusive
of any other right, power or remedy, but shall be cumulative and in addition to
any other right, power or remedy thereunder or now or hereafter existing by law
or in equity.

 

Section 25. Notices.

 

All notices, demands, instructions and other communications required or
permitted to be given to or made upon either party hereto shall be in writing
(including by facsimile transmission) and shall be personally delivered or sent
by guaranteed overnight delivery or by facsimile transmission (to be followed
by personal or guaranteed overnight delivery) and shall be deemed to be given
for purposes of this Agreement on the day that such writing is received by the
intended recipient thereof in accordance with the provisions of this Section.
Unless otherwise specified in a notice sent or delivered in accordance with the
foregoing provisions of this Section, notices, demands, instructions and other
communications in writing shall be given to or made upon the respective parties
thereto at their respective addresses (or their respective telecopy numbers)
indicated below:

 

Protective Life Secured Trust (followed by the appropriate number of
the Trust designated in the Omnibus Instrument)

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

 

The Administrator:

 

AMACAR Pacific Corp.

6525 Morrison Blvd., Suite 318

Charlotte, North Carolina 28211

Attention: Douglas K. Johnson

Facsimile: (704) 365-1632

 

8

 

EXHIBIT C

 

 

STANDARD EXPENSE AND INDEMNITY AGREEMENT
TERMS

 

with respect to

 

The Service Providers and the Protective Life
Secured Trusts

 

Dated as of November 7, 2003

 

 

This document constitutes the Standard Expense and Indemnity Terms,
dated as of November 7, 2003, that may be incorporated by reference
in one or more Expense and Indemnity Agreements (included in Section C of the Omnibus Instrument,
as defined below) by and among Protective Life Insurance Company, a Tennessee
stock life insurance company (“Protective
Life”), the Trust (as defined below), Wilmington Trust Company (the “Trustee”),
The Bank of New York, as indenture trustee (the “Indenture Trustee”), and AMACAR Pacific Corporation, a
Delaware corporation (as “Administrator”).

 

These Standard Expense and Indemnity Terms shall be of no force and
effect unless and until incorporated by reference in and then only to the
extent not modified by, an Expense and Indemnity Agreement.

 

1.                                       The
following terms, as used herein, have the following meanings:

 

“Agreement” means that
certain Expense and Indemnity Agreement in substantially the same form included
in Section C of the Omnibus
Instrument, as amended, modified or supplemented from time to time, that
incorporates by reference these Standard Expense and Indemnity Terms.

 

“Excluded Amounts” means (i) any
obligation of the Trust to make any payment to any Holder in accordance with
the terms of the Indenture or the Trust’s Notes, (ii) any obligation or
expense of the Trust to the extent that such obligation or expense has actually
been paid utilizing funds available to the Trust from payments under the
Funding Agreement(s), (iii) any cost, loss, damage, claim, action, suit,
expense, disbursement, tax, penalty or liability of any kind or nature
whatsoever resulting from or relating to any insurance regulatory or other
governmental authority asserting that: (a) the Trust’s Notes are, or are
deemed to be, (1) participations in one or more Funding Agreements or (2) contracts
of insurance, or (b) the offer, purchase, sale and/or transfer of the
Trust’s Notes and/or the pledge and collateral assignment of the Funding
Agreements by the Trust to the Indenture Trustee on behalf of the Holders of
the Trust’s Notes (1) constitute the conduct of the business of insurance
or reinsurance in any jurisdiction or (2) requires the Trust or any Holder
of the Trust’s Notes to be licensed as an insurer, insurance agent or broker in
any jurisdiction, (iv) any cost, loss, damage, claim, action, suit,
expense, disbursement, tax, penalty or liability of any kind or nature
whatsoever imposed on a Service Provider that results from the bad faith or
gross negligence of such Service Provider, (v) any costs and expenses
attributable solely to a Service Provider’s administrative overhead unrelated
to the Program, (vi) any tax imposed on fees paid to a Service Provider, (vii) any
withholding taxes imposed on or with respect of payments made under the Funding
Agreement(s), the Indenture or the Trust’s Note and (viii) any Additional
Amounts paid to any Holder.

 

“Fees” means with respect
to each Service Provider the fees agreed to between Protective Life and the
Service Provider as set forth in the fee schedule attached as Exhibit A to these Standard Expense
and Indemnity Agreement Terms or in a separate fee agreement between Protective
Life and such Service Provider or, in relation to any Service Provider which
signs a Service Provider Fee Letter, the fee schedule attached to such
letter.

 

“Indemnified Person”
means any person entitled to indemnity payments pursuant to Section 5 or Annex A, B or C to these
Standard Expense and Indemnity Terms.

 

“Obligation” means any
and all (i) reasonable costs and expenses reasonably incurred (including
the reasonable fees and expenses of counsel), relating to the offering, sale
and issuance of the Notes by the Trust and (ii) costs, expenses and taxes
of the Trust; provided that Obligations do not include Excluded Amounts.

 

“Omnibus Instrument”
means the Omnibus instrument pursuant to which certain Program Documents are
executed and the Trust is established.

 

“Pricing Supplement”
means, the pricing supplement attached to the Omnibus Instrument as Exhibit G
as prepared by the Trust, in consultation with Protective Life, in connection
with the issuance by the Trust of its Series of Notes and agreed to by
Protective Life, the Trust and the relevant dealers or agents under the
relevant Program Distribution Agreement, as such Pricing Supplement may be
amended, modified, supplemented or replaced from time to time.

 

 

“Service Provider” means
each of the Trustee, the Indenture Trustee, the Administrator and any other
party which becomes a party to this Agreement pursuant to a Service Provider
Fee Letter pursuant to Section 8
of this Agreement (such other Service Provider, a “Future Service Provider”).

 

“Service Provider Fee Letter”
is defined in Section 8 of
this Agreement.

 

“Trust” means the
Protective Life Secured Trust specified in the Omnibus Instrument, together
with its permitted successors and assigns.

 

“Trust Agreement” means
either the Statutory Trust Agreement or the Common Law Trust Agreement, as
applicable, pursuant to which the Trust was created.

 

All capitalized terms not otherwise defined herein will have the
meanings set forth in that certain Indenture, dated as of the date specified in
the Omnibus Instrument, between the Trust and the Indenture Trustee (the “Indenture”).

 

2.                                       Protective
Life hereby agrees to pay each Service Provider its Fees. In the event of a
substantive change in the nature of a Service Provider’s duties, agreed to by
such Service Provider, such Service Provider reserves the right to negotiate an
adjustment to its Fees with Protective Life.

 

3.                                       In
the event that any Service Provider resigns or its appointment is revoked
pursuant to any of the Program Documents under which the Service Provider has
duties or obligations, the Service Provider will repay to Protective Life such part of
any fee paid to it as may be agreed between the relevant Service Provider
and Protective Life.

 

4.                                       In
the event that a Service Provider or the Trust delivers written notice and
evidence, reasonably satisfactory to Protective Life, of any Obligation of the
Service Provider or the Trust, Protective Life shall, upon receipt of such
notice promptly pay such Obligation. Notice of any Obligation (including any
invoices) should be sent to Protective Life at its address set forth below, or
at such other address as such party shall hereafter furnish in writing:

 

Protective Life Insurance Company

111 N. First St. Suite 209

Burbank, CA 91502

Attention: Judy Wilson

Telephone: 818-729-1900

Telecopier: 818-729-1800

 

Each Service Provider or the Trust, as appropriate, will (i) from
time to time execute all such instruments and other agreements and take all
such other actions as may be necessary or desirable, or that Protective
Life may reasonably request, to protect any interest of Protective Life
with respect to any Obligation or to enable Protective Life to exercise or
enforce any right, interest or remedy it may have with respect to any such
Obligation, and (ii) release to Protective Life any amount received from
Protective Life relating to any Obligation or any portion of any Obligation,
immediately after any such amount relating to such Obligation, or any portion
of any such Obligation, is otherwise received by the relevant Service Provider
or the Trust from a party other than Protective Life.

 

Protective Life, the Trust and the Service Providers hereby agree that
all payments due under this Agreement in respect of any Obligation shall be
effected, and any responsibility of Protective Life to pay such Obligation
pursuant to this Agreement shall be discharged, by the payment by Protective
Life to the account of the person to whom such Obligation is owed.

 

5.                                       Subject
to the remaining paragraphs of this Section 5,
Protective Life hereby agrees to indemnify, and to hold harmless, to the full
extent permitted by law, the Trust and any Future Service Provider, including
its officers, directors, successors, assigns, legal representatives and
servants, who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit

 

2

 

or proceeding relating to or arising out of the performance or
non-performance by the Indemnified Person of its duties or fulfillment of its
obligations under the Program Documents or any other agreement relating to the
Program to which the Trust and the relevant Service Provider are or become a
party, whether civil, criminal, administrative or investigative (other than an
action by or in the right of the Trust), against losses, out-of-pocket costs
and expenses (including, without limitation, interest and reasonable attorneys’
fees and expenses), liabilities (including liabilities for penalties),
judgments, damages and fines incurred by such party in connection with the
defense or settlement of such action, suit or proceeding, except where any such
claim for indemnification is or relates to any Excluded Amount. Subject to the
remaining paragraphs of this Section 5,
The Bank of New York, Wilmington Trust Company and AMACAR Pacific Corp. and
their respective officers, directors, successors, assigns, legal
representatives, agents and servants will be indemnified by Protective Life to the
extent provided in Annex A, B and C to these Standard Expense and Indemnity
Terms, respectively. The indemnity provisions set forth in Annex A, B and C to
these Standard Expense and Indemnity Terms, are incorporated into this Section 5.

 

The indemnification provided for herein supersedes in all respects any
indemnification provision contained in any other Program Document or any other
agreement relating to the Program to which the Trust and the relevant Service
Provider are or become parties.

 

An Indemnified Person shall give prompt written notice to Protective
Life of any action, suit or proceeding commenced or threatened against the
Indemnified Person. In case any such action, suit or proceeding shall be
brought involving an Indemnified Person, Protective Life may, in its sole
discretion, elect to assume the defense of the Indemnified Person, and if it so
elects, Protective Life shall, in consultation with such Indemnified Person,
select counsel, reasonably acceptable to the Indemnified Person, to represent
the Indemnified Person and pay the reasonable fees and expenses of such
counsel; provided, that if the Indenture Trustee is the Indemnified Person,
such counsel shall be on the Indenture Trustee’s approved counsel list. In any
such action, investigation or proceeding, the Indemnified Person shall have the
right to retain its own counsel but Protective Life shall not be obligated to
pay the fees and disbursements of such counsel unless (i) Protective Life
and the Indemnified Person shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such action, investigation or
proceeding (including any impleaded parties) include (a) both Protective
Life and the Indemnified Person or (b) two or more Indemnified Persons
affiliated with different Service Providers and, in each case, representation
of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. It is understood that Protective
Life shall not, in connection with any proceeding or related proceeding in the
same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all Indemnified Persons
who are affiliated with one Service Provider.

 

If the indemnification provided for herein is invalid or unenforceable
in accordance with its terms, then Protective Life shall contribute to the
amount paid or payable by an Indemnified Person as a result of such liability
in such proportion as is appropriate to reflect the relative benefits received
by Protective Life and the Trust, (if the Trust is not an Indemnified Person),
on one hand, and the relevant Service Provider or the Trust (if the Trust is an
Indemnified Person) on the other hand, from the transactions contemplated by
the Program Documents. For this purpose, the benefits received by Protective
Life or the Trust (if applicable) shall be the aggregate value of the relevant
Collateral, and the benefits received by the relevant Service Provider shall be
the fees it has been paid up to that point as the Service Provider less costs
and unreimbursed expenses incurred by it as Service Provider in relation to
such Collateral, and the benefits received by the Trust (if applicable) shall
be determined by the Administrator (and in the event that the Administrator is
an Indemnified Party, the Trust and not the Administrator shall make such
determination) and Protective Life. If, however, the allocation provided by the
immediately preceding two sentences is not permitted by applicable law, then
Protective Life shall contribute to such amount paid or payable by the
Indemnified Person in such

 

3

 

proportion as is appropriate to reflect not only such relative benefits
but also the relative fault of Protective Life and the Trust (if applicable),
on the one hand, and the relevant Service Provider or the Trust (if applicable)
on the other hand, in connection with the actions or omissions which resulted
in such liability, as well as any other relevant equitable considerations.

 

Protective Life shall be subrogated to any right of the Indemnified
Person in respect of the matter as to which any indemnity was paid hereunder.

 

The Indemnified Person may not settle any action, investigation or
proceeding without the consent of Protective Life, not to be unreasonably
withheld.

 

Notwithstanding any provision contained herein to the contrary, the
obligations of Protective Life under this Section 5
to any Indemnified Person shall survive the termination of this Agreement
pursuant to Section 9.

 

6.                                       No
waiver, modification or amendment of this Agreement shall be valid unless
executed in writing by the parties hereto.

 

7.                                       This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to conflicts of laws principles.

 

8.                                       In
addition to the Service Providers listed in this Agreement, (i) Protective
Life and all trusts organized under the Program that are a party to an
agreement that incorporates these Standard Expense and Indemnity Terms may from
time to time appoint new service providers in respect of the Program generally
or (ii) Protective Life and the Trust may from time to time appoint
new service providers in respect of that Trust’s Series of Notes only; in
which event, upon execution by such service provider of a fee letter (the “Service Provider Fee Letter”)
substantially in the form of Exhibit B
to these Standard Expense and Indemnity Agreement Terms such service provider
shall become a party to the applicable agreement that incorporates these
Standard Expense and Indemnity Terms, subject as provided below, with all the
authority, rights, powers, duties and obligations of a Service Provider as if
originally named as Service Provider therein; provided further that, in the
case of a service provider which has become a Service Provider in relation to
the Trust’s Series of Notes, following the issuance of the Trust’s Series of
Notes, such new Service Provider shall have no further authority, rights,
powers, duties or obligations except such as may have accrued or been
incurred prior to, or in connection with, the issuance of such Trust’s Series of
Notes. Protective Life agrees that it will pay the fees of any new Service
Provider in accordance with a fee schedule to be agreed upon between
Protective Life and the relevant Service Provider attached to the Service
Provider Fee Letter.

 

9.                                       This
Agreement shall terminate and be of no further force and effect upon the date
on which (i) there is no Obligation due and payable under this Agreement
and (ii) each Program Document has terminated; provided, however,
that this Agreement shall continue to be effective or shall be reinstated, as
the case may be, if at any time any Service Provider must restore payment
of any sums paid under any Obligation or under this Agreement for any reason
whatsoever. This Agreement is continuing, irrevocable, unconditional and
absolute.

 

10.                                 Protective
Life shall (i) file as an exhibit to the Trust’s Annual Reports on Form 10-K
(each a “10-K”), filed under the
Securities Exchange Act of 1934, as amended, a compliance certificate in the form attached
to these Expense and Indemnity Agreement Terms as Annex D and (ii) at
its expense, cause a firm of independent public accountants that is a member of
the American Institute of Certified Public Accountants to furnish to the
management of Protective Life and to the Trustee a report (the “Auditor’s Report”) in the form attached
to these Standard Expense and Indemnity Agreement Terms as Annex E. The
Auditor’s Report shall be filed as an exhibit to the Trust’s 10-K(s).

 

11.                                 All
notices, demands, instructions and other communications required or permitted
to be given to or made upon either party hereto shall be in writing (including
by facsimile transmission) and

 

4

 

shall be personally delivered or sent by guaranteed overnight delivery
or by facsimile transmission (to be followed by personal or guaranteed
overnight delivery) and shall be deemed to be given for purposes of this
Expense and Indemnity Agreement on the day that such writing is received by the
intended recipient thereof in accordance with the provisions of this Section.
Unless otherwise specified in a notice sent or delivered in accordance with the
foregoing provisions of this Section, notices, demands, instructions and other
communications in writing shall be given to or made upon the respective parties
thereto at their respective addresses (or their respective telecopy numbers)
indicated below:

 

Protective Life Secured Trust (followed by the appropriate number of
the Trust

designated in the Omnibus Instrument)

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

 

The Administrator:

 

AMACAR Pacific Corp.

6525 Morrison Blvd., Suite 318

Charlotte, North Carolina 28211

Attention: Douglas K. Johnson

Facsimile: (704) 365-1632

 

Protective Life Insurance Company

2801 Highway 280 South

Birmingham, Alabama 35223

Attention:

Facsimile:

 

The Bank of New York

100 Church Street

8th Floor

New York, New York 10286

Attention: Dealing and Trading

 

5

 

ANNEX A

 

Protective Life covenants to fully indemnify and defend The Bank of New
York and its officers, directors, employees, controlling Persons, agents and
representatives for, and to hold it harmless against, any and all loss,
liability, claim, damage or reasonable expense (including the reasonable compensation,
expenses and disbursements of its counsel) (i) arising out of or in
connection with the acceptance by The Bank of New York, in its capacity as
Indenture Trustee or as an Agent, of administration of the Indenture or the
trusts thereunder and/or the performance of its duties and/or the exercise of
its respective rights thereunder, including the costs and expenses of defending
itself against or investigating any claim of liability in the premises, except
to the extent such loss, liability, claim, damage or expense is due to the
Indenture Trustee’s or such Agent’s own negligence or willful misconduct and (ii) in
connection with the imposition of any stamp, issue, registration, documentary
or other similar taxes and duties, including interest and penalties in respect
of the creation, issue and offering of the Trust’s Notes, except to the extent
any such loss, liability or expense is caused by the Indenture Trustee’s or
such Agent’s negligence or willful misconduct. Notwithstanding anything to the
contrary, Protective Life shall have no obligation to indemnify or defend The
Bank of New York for any loss, liability, claim, damage or expense relating to (i) any
costs and expenses attributable solely to the Indenture Trustee’s or such Agent’s
administrative overhead unrelated to the Program or (ii) any tax imposed
on the fees paid to the Indenture Trustee or any Agent.

 

 

ANNEX B

 

To the fullest extent permitted by law and notwithstanding anything to
the contrary, Protective Life hereby agrees, whether or not any of the
transactions contemplated by the Trust Agreement will be consummated, to assume
liability for and hereby indemnifies, protects, saves and keeps harmless
Wilmington Trust Company and its officers, directors, successors, assigns,
legal representatives, agents and servants (each a “Wilmington Indemnified Person”), from and against any and
all liabilities, obligations, losses, damages, penalties, taxes, claims,
actions, investigations, proceedings, costs, expenses or disbursements
(including reasonable legal fees and expenses) of any kind and nature
whatsoever which may be imposed on, incurred by or asserted at any time
against a Wilmington Indemnified Person in any way relating to or arising out
of the Trust Agreement or any other Program Document relating to the Trust or
the enforcement of any of the terms thereof, the administration of the Trust
and its property or the action or inaction of Wilmington Trust Company (in its
capacity as trustee) under the Trust Agreement, except, in any such case to the
extent that any such liabilities, obligations, losses, damages, penalties,
taxes, claims, actions, investigations, proceedings, costs, expenses and
disbursements (i) are the result of any of the matters described in the
third sentence of Section 6.04
of the Trust Agreement or (ii) relate to (a) any costs and expenses
attributable solely to the Delaware Trustee’s or Common Law Trustee’s, as
applicable, administrative overhead unrelated to the Program or (b) any
tax imposed on the fees paid to the Delaware Trustee.

 

 

ANNEX C

 

To the fullest extent permitted by law and notwithstanding anything to
the contrary, Protective Life hereby agrees, whether or not any of the
transactions contemplated by the Trust Agreement will be consummated, to assume
liability for and hereby indemnifies, protects, saves and keeps harmless the
Administrator and its officers, directors, successors, assigns, legal
representatives, agents and servants (each an “AMACAR
Indemnified Person”), from and against any and all liabilities, obligations,
losses, damages, penalties, taxes, claims, actions, investigations,
proceedings, costs, expenses or disbursements (including reasonable legal fees
and expenses) of any kind and nature whatsoever which may be imposed on,
incurred by or asserted at any time against an AMACAR Indemnified Person in any
way relating to or arising out of the Administrative Services Agreement or the
Trust Agreement or the enforcement of any of the terms thereof, the
administration of the Trust or the action or inaction of the Administrator
under the Administrative Services Agreement, except, in any such case to the
extent that any such liabilities, obligations, losses, damages, penalties,
taxes, claims, actions, investigations, proceedings, costs, expenses and
disbursements (i) results from the bad faith or gross negligence of an
AMACAR Indemnified Person (or ordinary negligence in the handling or
disbursement of funds) or (ii) relate to (a) any costs and expenses
attributable solely to the Administrator’s administrative overhead unrelated to
the Program or (b) any tax imposed on the fees paid to the Administrator.

 

 

ANNEX D

 

Annual Statement of Compliance

 

I [identify the certifying individual], a duly elected and acting
officer of The Bank of New York (“Indenture Trustee”), do hereby certify on
behalf of the Indenture Trustee, that:

 

1.                                       I
have reviewed and examined the performance by the Indenture Trustee of the
application of trust money collected by the Indenture Trustee pursuant to Section 5.02
and, if applicable, Section 6.06 of the Indenture pursuant to which the
Trust’s notes (the “Notes”) were issued during the fiscal year ending December 31,
200 •
(the “Relevant Year”); and

 

2.                                       Based
upon my review and examination described in 1 above, and except as provided in
the Independent Auditor’s Report on Applying Agreed Upon Procedures, dated   • 
, 200 •, prepared by the Trust’s independent public accountants
in accordance with Section 10 of the Expense and Indemnity Agreement, to
the best of my knowledge, the application of trust money collected by the
Indenture Trustee pursuant to Section 5.02 and, if applicable, Section 6.06
of the Indenture was performed in a satisfactory manner in all material
respects throughout the Relevant Year.

 

 

	
  THE BANK OF NEW YORK, as Indenture Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
  Date:

  	
   

  	
   

  

 

 

ANNEX E

 

Independent Auditor’s Report

 

On Applying Agreed-Upon Procedures

 

To the Management of Protective Life Insurance Company (“Protective
Life”) and Wilmington Trust Company, as trustee (the “Trustee”) of Protective
Life Secured Trust [  •  ] (the “Trust”):

 

We have performed the procedures enumerated below, which were agreed to
by the Management of Protective Life and the Trustee, solely to assist you in
evaluating the proper and prompt payments of amounts by The Bank of New York,
as indenture trustee (the “Indenture Trustee”), of amounts payable under
Protective Life’s secured notes program (the “Program”) for the [year] [period]
ended December 31, 200 • . Protective
Life’s management is responsible for the proper and prompt payments of amounts
due under the funding agreements which support the payment of amounts due on
the secured notes (the “Notes”) issued by the Trust. This agreed-upon
procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The
sufficiency of these procedures is solely the responsibility of those parties
specified in this report. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for which
this report has been requested or for any other purpose.

 

The procedures and the associated findings are as follows:

 

1.                                       We requested and
obtained a copy of the Indenture Trustee’s History
of Transactions List which details the payments received from
Protective Life on the funding agreements that secured the Notes, for the
[year] [period] ended December 31, 200X. We reviewed the History of Transactions List and noted
that the Indenture Trustee properly recorded the receipt of payments due from
Protective Life.

 

We noted [no exceptions] [the following exceptions] in our testing of
amounts received from Protective Life by the Indenture Trustee.

 

2.                                       We requested and
obtained from the Indenture Trustee a copy of the Transmission by Database Report, which details the
components of the bulk wire transfers to Cede & Co., the nominee of
the Depository Trust Company, and noted that the amounts due on the Notes were
a component of the bulk wire transfers as noted on the Transmission by Database Report on the
applicable dates tested.

 

We noted [no exceptions] [the following exceptions] in our testing of
the components of the bulk wire transfers to Cede & Co, the nominee of
the Depository Trust Company, by the Indenture Trustee on the applicable dates
tested, as detailed by the Transmission by
Database Report.

 

3.                                       We requested and
obtained from the Indenture Trustee a copy of the bulk wire transfer
confirmation to Cede & Co, the nominee of the Depository Trust
Company, and noted that the amount wired agreed to the Transmission by Database Report on the
applicable dates tested.

 

We noted [no exceptions] [the following exceptions] in our testing of
the bulk wire transfers from the Indenture Trustee to Cede & Co, the
nominee of the Depository Trust Company, to the Transmission by Database Report
provided by the Indenture Trustee.

 

We were not engaged to and did not conduct an audit, the objective of
which would be the expression of an opinion on funding agreement liabilities.
Accordingly, we do not express such an opinion. Had we performed additional
procedures, other matters might have come to our attention that would have been
reported to you.

 

This report is intended solely for the information and use of the management
of Protective Life and the Trustee and is not intended to be and should not be
used by anyone other than these specified parties.

 

 

EXHIBIT A

 

Fees

 

1.                                       The
Bank of New York, in its capacity as Indenture Trustee, Registrar, Paying
Agent, Transfer Agent and Calculation Agent with respect to each series of
notes issued under the Program shall be entitled to receive the following fees
at the times set forth below:

 

2.                                       Wilmington
Trust Company as trustee of each trust created under the Program shall be
entitled to receive the following fees at the times set forth below:

 

3.                                       In
consideration of the one time, upfront Program establishment fee of $15,000
paid on November 1, 2002, AMACAR Pacific Corp. as Administrator of each
trust created under the Program shall be entitled to receive the following fees
at the times set forth below:

 

an administrative fee of $25,000 payable annually, in advance, (the
first such administrative fee was paid on November 1, 2002), until all
Notes issued under the Program are fully paid.

 

4.                                       AMACAR
Pacific Corp. as Trust Beneficial Owner of each trust created under the Program
shall be entitled to receive the following fees at the times set forth below:

 

upon the organization of a trust, a one time, upfront establishment fee
of $15 (or, if the Trust issues Notes at a discount, the product of $15 and the
issue price (expressed as a percentage of the original principal amount of the
Notes)).

 

 

EXHIBIT B

 

[New Service Provider]

[Address]

 

Dear Sirs,

 

U.S.$

Secured Note Program (the “Program”)

with respect to

[Protective Life Secured Trust [            ]

[The Protective Life Secured Trusts]

 

We refer to the [                       
] Agreement entered into between [Protective Life Secured Trust [    ] and yourselves], appointing you as a
Service Provider [in respect of Protective Life Secured Trust [    ]’s series of notes (the “Series of
Notes”)(1)] under the Program. We further refer to the Expense and Indemnity
Agreement, dated             , entered
into in respect of the above Program (such agreement, as modified or amended
from time to time, the “Expense and
Indemnity Agreement”) between Protective Life Insurance Company,
each trust organized under the Program that is a party thereto and each of the
Service Providers, governing the compensation arrangements, expense
reimbursement and terms of indemnity between Protective Life Insurance Company
and such trusts and the Service Providers. By signing this letter you will
become a party to the Expense and Indemnity Agreement for all purposes, with,
all the authority, rights, powers, duties and obligations of a Service Provider
under the Expense and Indemnity Agreement[except that, following the issuance
of the Series of Notes, you shall have no further authority, rights,
powers, duties or obligations except as may have accrued or been incurred
prior to, or in connection with, the issuance of the Series of Notes]*.
Please return to us a copy of this letter signed by an authorized signatory.
For the purposes of your Fees, you will be compensated in accordance with the
fee schedule as set forth in Schedule I to this letter.(2)

 

This letter is governed by, and shall be construed in accordance with,
the laws of the State of New York. Capitalized terms used and not otherwise
defined in this letter shall have the meanings assigned to them in the Expense
and Indemnity Agreement.

 

	
   

  	
   

  	
  Yours faithfully,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PROTECTIVE LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  AGREED AND ACCEPTED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [SERVICE PROVIDER]

  	
   

  	
   

  	
   

  

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

(1)                                  Insert
only where the new Services Provider is being appointed in relation to a
particular trust’s series of notes.

 

(2)                                  Attach
the relevant fee schedule agreed upon between Protective Life Insurance
Company, and the new Service Provider.

 

 

EXHIBIT D

 

STANDARD LICENSE AGREEMENT TERMS

 

This Standard License Agreement Terms, dated as of November 7,
2003, that may be incorporated by reference in one or more License
Agreements (included in Section D
of the Omnibus Instrument as defined below) between Protective Life Corporation
(the “Licensor”), a Delaware
corporation with its principal place of business at 2801 Highway 280 South,
Birmingham, Alabama 35223, and the Protective Life Secured Trust specified in
the Omnibus Instrument, (the “Licensee”)
a Delaware statutory trust with an address at c/o Wilmington Trust Company,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001.

 

These Standard License Agreement Terms shall be of no force and effect
unless and until incorporated by reference in, and then only to the extent not
modified by, a License Agreement.

 

The following terms and provisions shall govern the activities of each
Delaware statutory trust and Delaware common law trust created under the
Program subject to contrary terms and provisions expressly adopted in any
License Agreement which contrary terms shall be controlling.

 

W I T N E S S E T H:

 

WHEREAS, Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor and may acquire
additional trademarks and service marks in the future, all as defined below;
and

 

WHEREAS, Licensee desires to use certain of Licensor’s trademarks and
service marks in connection with Licensee’s activities, as described more fully
below; and

 

WHEREAS, Licensor and Licensee wish to formalize the agreement between
them regarding Licensee’s use of Licensor’s marks;

 

NOW THEREFORE, in consideration of the mutual promises set forth in
this Agreement and other good and valuable consideration, the sufficiency and
receipt of which is hereby acknowledged, the parties agree as follows:

 

ARTICLE 1

Definitions

 

Section 1.01 Definitions. Capitalized words or phrases used and
not otherwise defined herein shall have the meanings ascribed thereto in the Indenture,
dated the date specified in the Omnibus Instrument between the Licensee and The
Bank of New York, as indenture trustee.

 

Section 1.02 The following items have the meanings set forth
below:

 

“Agreement” means a
License Agreement substantially in the form included in Section D of the Omnibus Instrument,
as amended, modified or supplemented from time to time, that incorporates by
reference these Standard License Agreement Terms.

 

“Licensed Marks” shall
include all marks listed in the attached Appendix A,
as amended from time-to-time by the parties, as provided for in Article 5
hereof.

 

“Licensed Services” shall
be defined as the activities undertaken by Licensee, in connection with the
establishment and conduct of the Program established by Protective Life
Insurance Company for the issuance of debt obligations of the Licensee, such as
the issuance of Notes to investors and any actions incident to the foregoing.

 

D-1

 

“Omnibus Instrument”
means the omnibus instrument pursuant to which certain Program Documents are
executed and the Trust is established.

 

“Territory” shall be
defined as follows: World-wide.

 

“Trustee” means
Wilmington Trust Company, solely in its capacity as trustee of the Trust and
not in its individual capacity.

 

ARTICLE 2

Grant of License

 

Section 2.01  Grant of License. Subject to the terms and
conditions set forth herein, Licensor hereby grants to Licensee for the
duration of this Agreement a non-exclusive, non-transferable, royalty-free
right and license to use the Licensed Marks in connection with the Licensed
Services within the Territory. Licensee agrees and acknowledges that the
limited rights and licenses granted in this Section 2.01 are revocable by
Licensor immediately and that this Agreement is terminable by Licensor as
provided in Article 8.

 

ARTICLE 3

Ownership and Maintenance of the Licensed
Marks

 

Section 3.01  Licensee
acknowledges that Licensor is the sole owner of the Licensed Marks, agrees that
it will do nothing inconsistent with such ownership, agrees that all use of the
Licensed Marks by Licensee, including all goodwill associated therewith, shall
inure solely to the benefit of Licensor, and agrees to assist Licensor in
executing any additional documents that may be necessary to effect the
purposes of this provision, including but not limited to the execution of any
and all documents required by governmental agencies in order to register or
maintain the current registrations of the Licensed Marks. Licensee agrees that it
will not represent that it has any ownership interest in the License Marks or
any registration thereof. Licensee admits the validity of the Licensed Marks
and agrees that it will not, directly or indirectly, attack or challenge in any
way the validity of the Licensed Marks, Licensor’s rights in and to the
Licensed Marks or the validity or enforceability of this Agreement. Licensee
acknowledges that nothing in this Agreement shall give Licensee any right,
title or interest in the Licensed Marks or any goodwill associated therewith,
other than those rights expressly granted hereunder.

 

Section 3.02  Licensee
acknowledges that its use of a Licensed Mark of Licensor prior to this License
Agreement creates no ownership rights for Licensee in a Licensed Mark in any
jurisdiction. Upon termination of the rights granted by the Agreement, Licensee
agrees it shall not claim any ownership rights to any Licensed Mark of Licensor
as a result of such use.

 

Section 3.03  Licensor shall
use commercially reasonable efforts to maintain the Licensed Marks and all
registrations thereof and/or applications therefor in the Territory. Licensee
shall execute all documents as are reasonably necessary or expedient to aid in,
and shall otherwise cooperate at Licensor’s expense with, Licensor’s efforts to
prepare, obtain, file, record and maintain all such registrations and
applications.

 

Section 3.04  Licensor shall
have no further maintenance obligations as to the Licensed Marks or any
registration thereof or application therefor upon giving written notice to
Licensee that it does not intend to continue such maintenance; provided,
however that Licensor shall have no such right of termination of its
maintenance obligations in the event any Series of Notes is outstanding.
Notwithstanding anything to the contrary contained herein, after giving such
notice, Licensor shall not be liable to Licensee in any manner for any failure
by Licensor to maintain any Licensed Marks.

 

D-2

 

ARTICLE 4

Quality Control

 

Section 4.01  At all times,
Licensee agrees to use the Licensed Marks in the Territory only in accordance
with such quality standards and specifications as may be established by
Licensor and communicated to Licensee from time to time. All use of the
Licensed Marks made by Licensee hereunder shall faithfully reproduce the design
and appearance of the Licensed Marks as reflected on Appendix A.

 

Section 4.02  Licensee
agrees that the nature and quality of all Licensed Services shall conform to
the quality standards and specifications, as may be established by
Licensor and communicated to Licensee from time to time and shall not deviate
materially from the current quality of services and products included in the
Licensed Services.

 

Section 4.03  Licensor has
the sole and exclusive right to control the appearance of the Licensed Marks,
including the quality of the mark in the Licensed Marks. Licensor shall have
the right to inspect, upon reasonable notice and at all reasonable times, the
business facilities and records of Licensee and, upon reasonable request, to
obtain written materials of Licensee at any time during the term of this
Agreement so that Licensor may determine whether Licensee is appropriately
maintaining Licensor’s quality standards pertaining to the Licensed Marks and
to the Licensed Services. Licensee will immediately modify or discontinue any
use of the Licensed Marks that Licensor deems not to be in compliance with its
quality standards.

 

Section 4.04  Upon request
by Licensor, Licensee shall provide Licensor with representative samples of all
promotional materials, packaging, labels, advertisements or any other materials
that include any of the Licensed Marks so that Licensor may ensure that
said materials are in conformance with Licensor’s quality standards.

 

Section 4.05  Licensee
agrees that all activities conducted in accordance with this License Agreement
shall be in conformance with all applicable laws, rules and regulations.
Licensee shall affix to all materials that bear a Licensed Mark, including, but
not limited to, all stationery, labels, packaging, advertising and promotional
materials, manuals, invoices and all other printed materials, (a) notices
in compliance with applicable trademark laws and (b) such legend as
Licensor may reasonably designate by written notice and is required or
otherwise reasonably necessary to allow adequate protection of the Licensed
Marks and the benefits thereof under applicable trademark laws from time to
time.

 

ARTICLE 5

Amendment of License Agreement

 

This Agreement may be amended at any time by the parties to add or
delete Licensed Marks or to modify the scope of Licensed Services. Such
amendment(s) may be accomplished by a simple letter agreement outlining
the amendment(s) and signed by both parties.

 

ARTICLE 6

Manner of Use

 

Section 6.01  Licensee
agrees to use the Licensed Marks only in the form and manner, and with
appropriate ownership legends, as prescribed from time to time by Licensor.

 

Section 6.02  Licensee shall
have the right to use the mark shown in Appendix A
in connection with Licensee’s name, but aside from this right, Licensee shall
not have the right to (a) change or modify the Licensed Marks, or create
any design variation of the Licensed Marks, without obtaining the prior written
consent of Licensor, (b) join any name, mark or logo with the Licensed
Marks so as to form a composite trade name or mark, (c) use the
Licensed Marks in any manner that reflects

 

D-3

 

improperly upon the Licensed Marks, or (d) use any other mark that
is confusingly similar to the Licensed Marks.

 

Section 6.03  Licensee’s use
of Licensed Marks for any Licensed Services other than the Program is subject
to the prior written approval of Licensor.

 

Section 6.04  Licensee shall
not at any time do or suffer to be done any act or thing, including without
limitation, opposing Licensor’s registration of the Licensed Marks that will,
in any way impair Licensor’s rights in the Licensed Marks.

 

Section 6.05  Licensee shall
promptly notify Licensor of any country in which Licensee intends to use a
Licensed Mark. Licensee hereby notifies Licensor that Licensee intends to use
the Licensed Marks in the United States. Licensor may, but shall have no
obligation to, apply for trademark registration in such country, or otherwise
initiate action to protect its trademark rights in that country. If necessary
or requested by Licensor, the Licensee shall join in such application, shall
execute any documents, and shall take any action as may be or requested by
Licensor to implement such application or to retain, enforce or defend the
Licensed Marks.

 

Section 6.06 Licensee shall not at any time, without the prior
written consent of Licensor, acquire a registration or file and prosecute a trademark
application or applications to register the Licensed Marks, or any component,
variation or derivation thereof, or any name or mark confusingly similar
thereto, for any goods or services anywhere in the world. If Licensee at any
time, without the prior written consent of Licensor, files or causes to be
filed, in its own name or otherwise on its behalf, an application to register
or otherwise takes steps under applicable laws to obtain trademark protection
of the Licensed Marks in any country, territory or jurisdiction, Licensee
shall, at the direction of Licensor, either (a) assign and transfer to
Licensor, without further consideration, all right, title and interest in or to
the Licensed Marks in such country, territory or jurisdiction, or (b) surrender
and abandon such registration or application for registration.

 

ARTICLE 7

Infringement or Dilution Proceedings

 

Section 7.01  Licensee
agrees to promptly notify Licensor of any unauthorized use of any of the
Licensed Marks as such unauthorized use comes to Licensee’s attention. Licensor
shall have the sole right and discretion to take any action relating to the
Licensed Marks, and Licensee agrees to cooperate fully, should Licensor decide
to take such action.

 

Section 7.02  If
infringement or dilution proceedings relating to the Licensed Marks result in
an award of damages or the payment of any sums to Licensor, any such damages or
payments shall belong solely to Licensor.

 

Section 7.03  Licensee will
promptly notify Licensor of any claim, complaint, allegation or threatened
litigation (a “Claim”) relating to the Licensed Marks, including, but not
limited to any Claim of infringement or dilution by any third party. Licensor
shall have sole authority to address, settle or litigate any Claim at its
expense, provided, however, Licensee shall fully cooperate with Licensor in any
Claim brought.

 

ARTICLE 8

Term and Termination

 

Section 8.01  This Agreement
shall continue in force and effect for so long as the Program is in effect, but
no later than December 31, 2099, unless it is sooner terminated as
provided for herein.

 

D-4

 

Section 8.02  Licensor may terminate
this Agreement forthwith, upon written notice to Licensee, if, in Licensor’s
sole discretion and determination there is a material breach of Licensee’s
obligations under this Agreement.

 

Section 8.03  Either party may terminate
this Agreement, without cause, by giving thirty (30) days written notice
to the other party.

 

Section 8.04 
Notwithstanding Section 8.03, for the further protection of the
Licensed Marks, the license granted herein shall automatically and immediately
terminate, without any notice by or any action required on the part of
Licensor, in the event that there is an Event of Default relating to the Trust’s
Notes which results in such Notes becoming due and payable prior to their
stated maturity.

 

ARTICLE 9

Effect of Termination

 

Section 9.01  Immediately
upon termination of this Agreement, Licensee shall cease and desist from any
and all use of the Licensed Marks, amend its certificate of trust documents and
other organizational documents, take all other actions necessary or desirable
to change its name to a name that does not include any of the Licensed Marks,
or any confusingly similar term, cease to distribute all materials bearing the
Licensed Marks, and destroy any remaining inventory of documents bearing the
Licensed Marks.

 

Section 9.02  Immediately
upon termination of a license, Licensee shall cease and desist from any and all
use of the Licensed Marks, cease to distribute all materials that bear the
Licensed Marks, and destroy any remaining inventory of documents that bear the
Licensed Marks.

 

Section 9.03  Upon
termination of this Agreement, Licensee agrees to cooperate fully with Licensor
to amend or cancel any governmental recordations or approvals pertaining to any
marks or names which consist of or include any of the Licensed Marks.

 

Section 9.04  Upon
termination of this License Agreement, any and all rights in the Licensed Marks
and the goodwill connected therewith shall remain the exclusive property of
Licensor.

 

ARTICLE 10

Miscellaneous Provisions

 

Section 10.01  Interpretation and Enforcement of Agreement.
This Agreement shall be interpreted according to the laws of the State of Tennessee,
and the parties agree that exclusive jurisdiction over the enforcement of this
License Agreement shall be appropriate in the state or federal courts of the
State of Tennessee. The parties agree that any breaches hereof shall cause
irreparable injury to the nonbreaching party and that an injunction shall be an
appropriate remedy.

 

Section 10.02  Amendment and Waiver. No amendment,
modification or discharge of this Agreement, and no waiver hereunder, shall be
valid or binding unless set forth in writing and duly executed by the party
against whom enforcement of the amendment, modification, discharge or waiver is
sought. Any such waiver shall constitute a waiver only with respect to the
specific matter described in such writing and shall in no way impair the rights
of the party granting such waiver in any other respect or at any other time.
Neither the waiver by either of the parties hereto of a breach of or a default
under any of the provisions of this Agreement, nor the failure by either of the
parties, on one or more occasions, to enforce any of the provisions of this
Agreement or to exercise any right or privilege hereunder, shall be construed
as a waiver of any other breach or default of a similar nature, or as a waiver
of any of such provisions, rights or privileges hereunder. The rights and
remedies herein provided are cumulative and are not exclusive of any rights or
remedies that either party otherwise may have at law or in equity.

 

D-5

 

Section 10.03  Severability. In the event any provision
of this Agreement shall be invalid or unenforceable, it shall be deemed to be
separate and shall not affect any other provision of this License Agreement.

 

Section 10.04  Assignment. This Agreement including the
licenses granted herein is not assignable or transferable by agreement or by
operation of law without the express written consent of Licensor. Any such
unauthorized assignment or transfer shall be null and void and of not legal
effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, successors and permitted assigns.

 

Section 10.05  Notices. All notices, requests, demands
and other communications required to be in writing under this Agreement shall
be addressed as follows and notice shall be considered given five (5) days
following dispatch by first class mail, postage prepaid or if transmitted
by facsimile, when confirmed:

 

If to Licensor:

 

Protective Life Corporation

2801 Highway 280 South

Birmingham, Alabama 35223

Telephone: (205) 879-9230

Facsimile: (818) 729-1800

Attn: Judy Wilson

 

If to Licensee:

 

The Protective Life Secured Trust specified in the Omnibus Investment

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Telephone: (302) 636-6000

Facsimile: (302) 636-4140

Attn: Corporate Trust Administration

 

Section 10.06 Trustee.
This Agreement has been executed on behalf of the Licensee by the Trustee
solely in its capacity as trustee of the Licensee, and not in its individual
capacity. In no case shall the Trustee (or any entity acting as successor or
additional trustee) be personally liable for or on account of any of the
statements, representations, warranties, covenants or obligations of the
Licensee hereunder, any right to assert any such liabilities against the
Trustee (or any entity acting as successor or additional trustee) being hereby
waived by the other party hereto; provided, however, that such waiver shall not
affect the liability of the Trustee (or any entity acting as successor or
additional trustee) to any person under any other agreement to the extent
expressly agreed to in its individual capacity thereunder.

 

Section 10.07 Counterparts.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.

 

Section 10.08 Equitable Relief.
Licensee acknowledges that Licensor will suffer irreparable harm as a result of
the material breach by Licensee of any covenant or agreement to be performed or
observed by Licensee under this Agreement, and acknowledges that Licensor shall
be entitled to apply for and receive from any court or administrative body of
competent jurisdiction a temporary restraining order, preliminary injunction
and/or permanent injunction, without any necessity of proving damages,
enjoining Licensee from further breach of this Agreement or further
infringement or impairment of the rights of Licensor.

 

Section 10.09 Further
Assurances. Each of the parties hereto agrees to execute all such
further instruments and documents and to take all such further action as the
other party may reasonably require in order to effectuate the terms and
purposes of this Agreement. The parties shall act in good faith in the
performance of their obligations under this Agreement.

 

D-6

 

APPENDIX A

LICENSED MARKS

 

[Protective Life Corporation Logo]

 

[Protective Life Corporation Logo]

 

Doing the right
thing is smart business.®

 

D-7

 

EXHIBIT E

 

STANDARD
INDENTURE TERMS

 

with
respect to

 

PROTECTIVE
LIFE SECURED TRUSTS

 

Secured
Medium-Term Notes and InterNotes®

 

Dated
as of November 7, 2003

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1

  	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  	
   

  
	
  SECTION 1.01.
  Definitions

  	
   

  	
   

  
	
  SECTION 1.02.
  Compliance Certificates and Opinions

  	
   

  	
   

  
	
  SECTION 1.03. Form of
  Documents Delivered to Indenture Trustee

  	
   

  	
   

  
	
  SECTION 1.04.
  Acts of Holders

  	
   

  	
   

  
	
  SECTION 1.05.
  Notices

  	
   

  	
   

  
	
  SECTION 1.06.
  Notice to Holders; Waiver

  	
   

  	
   

  
	
  SECTION 1.07.
  Severability

  	
   

  	
   

  
	
  SECTION 1.08.
  Successors and Assigns

  	
   

  	
   

  
	
  SECTION 1.09.
  Benefits of Indenture

  	
   

  	
   

  
	
  SECTION 1.10.
  Language of Notices

  	
   

  	
   

  
	
  SECTION 1.11.
  Governing Law

  	
   

  	
   

  
	
  SECTION 1.12.
  Waiver of Jury Trial

  	
   

  	
   

  
	
  SECTION 1.13.
  Counterparts

  	
   

  	
   

  
	
  SECTION 1.14.
  Third Party Beneficiaries

  	
   

  	
   

  
	
  SECTION 1.15.
  Conflict with Trust Indenture Act

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
   

  
	
  THE NOTES

  	
   

  	
   

  
	
  SECTION 2.01.
  Forms Generally

  	
   

  	
   

  
	
  SECTION 2.02.
  No Limitation on Aggregate Principal Amount of Notes

  	
   

  	
   

  
	
  SECTION 2.03.
  Listing

  	
   

  	
   

  
	
  SECTION 2.04.
  Redemption

  	
   

  	
   

  
	
  SECTION 2.05.
  Execution, Authentication and Delivery Generally

  	
   

  	
   

  
	
  SECTION 2.06.
  Registration

  	
   

  	
   

  
	
  SECTION 2.07.
  Transfer

  	
   

  	
   

  
	
  SECTION 2.08.
  Mutilated, Destroyed, Lost and Stolen Notes

  	
   

  	
   

  
	
  SECTION 2.09.
  Payment of Interest; Rights To Interest Preserved

  	
   

  	
   

  
	
  SECTION 2.10.
  Cancellation

  	
   

  	
   

  
	
  SECTION 2.11.
  Persons Deemed Owners

  	
   

  	
   

  
	
  SECTION 2.12.
  Tax Treatment; Tax Returns and Reports

  	
   

  	
   

  
	
  SECTION 2.13.
  No Partners

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
   

  
	
  COVENANTS, REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
  SECTION 3.01.
  Payment of Principal and any Premium, Interest and Additional Amounts

  	
   

  	
   

  
	
  SECTION 3.02.
  Collection Account

  	
   

  	
   

  
	
  SECTION 3.03.
  Agreements of the Paying Agent

  	
   

  	
   

  
	
  SECTION 3.04.
  Maintenance of Office or Agency

  	
   

  	
   

  
	
  SECTION 3.05.
  Duties of the Agents

  	
   

  	
   

  
	
  SECTION 3.06.
  Duties of the Transfer Agent

  	
   

  	
   

  
	
  SECTION 3.07.
  Duties of the Registrar

  	
   

  	
   

  
	
  SECTION 3.08.
  Unclaimed Monies

  	
   

  	
   

  

 

i

 

	
  SECTION 3.09.
  Protection of Collateral

  	
   

  	
   

  
	
  SECTION 3.10.
  Opinions as to Collateral; Annual Statement as to Compliance

  	
   

  	
   

  
	
  SECTION 3.11.
  Performance of Obligations

  	
   

  	
   

  
	
  SECTION 3.12.
  Existence

  	
   

  	
   

  
	
  SECTION 3.13.
  Reports; Financial Information; Notices of Defaults

  	
   

  	
   

  
	
  SECTION 3.14.
  Payment of Taxes and Other Claims

  	
   

  	
   

  
	
  SECTION 3.15.
  Negative Covenants

  	
   

  	
   

  
	
  SECTION 3.16.
  Non-Petition

  	
   

  	
   

  
	
  SECTION 3.17.
  Title to the Collateral

  	
   

  	
   

  
	
  SECTION 3.18.
  Withholding and Payment of Additional Amounts

  	
   

  	
   

  
	
  SECTION 3.19.
  Additional Representations and Warranties

  	
   

  	
   

  
	
  SECTION 3.20.
  Ancillary Documents

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
   

  
	
  GRANTING OF SECURITY INTEREST AND ASSIGNMENT FOR COLLATERAL PURPOSES

  	
   

  	
   

  
	
  SECTION 4.01.
  Creation

  	
   

  	
   

  
	
  SECTION 4.02.
  Scope

  	
   

  	
   

  
	
  SECTION 4.03.
  Termination of Security Interest

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE; SUBROGATION

  	
   

  	
   

  
	
  SECTION 5.01.
  Satisfaction and Discharge of Indenture

  	
   

  	
   

  
	
  SECTION 5.02.
  Application of Trust Money

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  	
   

  
	
  SECTION 6.01.
  Events of Default

  	
   

  	
   

  
	
  SECTION 6.02.
  Acceleration of Maturity Date; Rescission and Annulment

  	
   

  	
   

  
	
  SECTION 6.03.
  Collection of Indebtedness and Suits for Enforcement

  	
   

  	
   

  
	
  SECTION 6.04.
  Indenture Trustee May File Proofs of Claim

  	
   

  	
   

  
	
  SECTION 6.05.
  Indenture Trustee May Enforce Claims Without Possession of Notes

  	
   

  	
   

  
	
  SECTION 6.06.
  Application of Money Collected

  	
   

  	
   

  
	
  SECTION 6.07.
  Limitation on Suits

  	
   

  	
   

  
	
  SECTION 6.08.
  Unconditional Rights of Holders to Receive Payments

  	
   

  	
   

  
	
  SECTION 6.09.
  Restoration of Rights and Remedies

  	
   

  	
   

  
	
  SECTION 6.10.
  Rights and Remedies Cumulative

  	
   

  	
   

  
	
  SECTION 6.11.
  Delay or Omission Not Waiver

  	
   

  	
   

  
	
  SECTION 6.12.
  Control by Holders

  	
   

  	
   

  
	
  SECTION 6.13.
  Waiver of Past Defaults

  	
   

  	
   

  
	
  SECTION 6.14.
  Undertaking for Costs

  	
   

  	
   

  
	
  SECTION 6.15.
  Waiver of Stay or Extension Laws

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
   

  
	
  THE INDENTURE TRUSTEE AND OTHER AGENTS

  	
   

  	
   

  
	
  SECTION 7.01.
  Duties of Indenture Trustee and Agents

  	
   

  	
   

  
	
  SECTION 7.02.
  No Liability to Invest

  	
   

  	
   

  
	
  SECTION 7.03.
  Performance Upon Default

  	
   

  	
   

  

 

ii

 

	
  SECTION 7.04.
  No Assumption by Paying Agent, Transfer Agent, Calculation Agent or Registrar

  	
   

  	
   

  
	
  SECTION 7.05.
  Notice of Default

  	
   

  	
   

  
	
  SECTION 7.06.
  Rights of Indenture Trustee

  	
   

  	
   

  
	
  SECTION 7.07.
  Not Responsible for Recitals or Issuance of Notes

  	
   

  	
   

  
	
  SECTION 7.08.
  Indenture Trustee May Hold Notes

  	
   

  	
   

  
	
  SECTION 7.09.
  Money Held in Trust

  	
   

  	
   

  
	
  SECTION 7.10.
  Compensation and Reimbursement

  	
   

  	
   

  
	
  SECTION 7.11.
  Eligibility

  	
   

  	
   

  
	
  SECTION 7.12.
  Resignation and Removal; Appointment of Successor

  	
   

  	
   

  
	
  SECTION 7.13.
  Acceptance of Appointment by Successor

  	
   

  	
   

  
	
  SECTION 7.14.
  Merger, Conversion, Consolidation or Succession to Business of Indenture
  Trustee

  	
   

  	
   

  
	
  SECTION 7.15.
  Co-trustees

  	
   

  	
   

  
	
  SECTION 7.16.
  Appointment and Duties of the Calculation Agent

  	
   

  	
   

  
	
  SECTION 7.17.
  Changes in Agents

  	
   

  	
   

  
	
  SECTION 7.18.
  Limitation of Wilmington Liability

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
   

  
	
  SECTION 8.01.
  Supplemental Indentures Without Consent of Holders

  	
   

  	
   

  
	
  SECTION 8.02.
  Supplemental Indenture With Consent of Holders

  	
   

  	
   

  
	
  SECTION 8.03.
  Execution of Supplemental Indentures

  	
   

  	
   

  
	
  SECTION 8.04.
  Effect of Supplemental Indenture

  	
   

  	
   

  
	
  SECTION 8.05.
  Reference in Notes to Supplemental Indentures

  	
   

  	
   

  
	
  SECTION 8.06.
  Conformity with Trust Indenture Act

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
   

  
	
  NON-RECOURSE PROVISIONS

  	
   

  	
   

  
	
  SECTION 9.01.
  Nonrecourse Enforcement

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
   

  
	
  MEETINGS OF HOLDERS OF NOTES

  	
   

  	
   

  
	
  SECTION 10.01.
  Purposes for Which Meetings May be Called

  	
   

  	
   

  
	
  SECTION 10.02.
  Call, Notice and Place of Meetings

  	
   

  	
   

  
	
  SECTION 10.03.
  Persons Entitled to Vote at Meetings

  	
   

  	
   

  
	
  SECTION 10.04.
  Quorum; Action

  	
   

  	
   

  
	
  SECTION 10.05.
  Determination of Voting Rights; Conduct and Adjournment of Meetings

  	
   

  	
   

  
	
  SECTION 10.06.
  Counting Votes and Recording Action of Meetings

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
   

  
	
  NOTES IN FOREIGN CURRENCIES

  	
   

  	
   

  
	
  SECTION 11.01.
  Notes in Foreign Currencies

  	
   

  	
   

  

 

iii

 

EXHIBITS

 

	
  Exhibit A-1

  	
  Form of Retail Note

  
	
  Exhibit A-2

  	
  Form of Institutional Global Note

  
	
  Exhibit A-3

  	
  Form of Institutional Definitive Note

  

 

iv

 

Reconciliation and tie between

Trust Indenture Act of 1939 (the “Trust Indenture Act”)

and Indenture

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  §310(a)

  	
   

  	
  7.11

  
	
   (b)

  	
   

  	
  7.11

  
	
  §311(a)

  	
   

  	
  7.08

  
	
  §312(a)

  	
   

  	
  3.13

  
	
   (b)

  	
   

  	
  3.13

  
	
   (c)

  	
   

  	
  3.13

  
	
  §313(a)

  	
   

  	
  3.13

  
	
   (b)

  	
   

  	
  3.13

  
	
   (c)

  	
   

  	
  3.13

  
	
   (d)

  	
   

  	
  3.13

  
	
  §314(a)

  	
   

  	
  3.10

  
	
   (b)

  	
   

  	
  3.10

  
	
   (c)

  	
   

  	
  3.10

  
	
   (d)

  	
   

  	
  3.10

  
	
   (e)

  	
   

  	
  1.03, 3.10

  
	
  §315(c)

  	
   

  	
  7.01

  
	
  §316(a)(1) (A)

  	
   

  	
  6.02, 6.12

  
	
   (a)(1)(B)

  	
   

  	
  6.13

  
	
   (b)

  	
   

  	
  6.08

  
	
   (c)

  	
   

  	
  1.04

  
	
  §317(a)(1)

  	
   

  	
  6.03

  
	
  (a)(2)

  	
   

  	
  6.04

  
	
  (b)

  	
   

  	
  3.03

  
	
  §318(a)

  	
   

  	
  1.15

  
	
   (c)

  	
   

  	
  1.15

  

 

Note:  This reconciliation and tie shall not, for
any purpose, be deemed to be part of the Indenture.

 

Attention should also be directed to Section 318(c) of the
Trust Indenture Act, which provides that certain provisions of Sections 310 to
and including 317 are a part of and govern every qualified indenture,
whether or not physically contained herein.

 

v

 

STANDARD
INDENTURE TERMS

 

This document constitutes the Standard
Indenture Terms, dated as of November 7, 2003, which are incorporated by
reference in one or more Indentures (included in Section E of the Omnibus
Instrument, as defined below), by and among a Protective Life Secured Trust and
the Indenture Trustee, Registrar, Transfer Agent, Paying Agent and Calculation
Agent for such Trust, in connection with the Program (all as defined herein).

 

These Standard Indenture Terms shall be of no
force and effect unless and until incorporated by reference into, and then only
to the extent not modified by, an Indenture.

 

The following terms and provisions shall
govern the Notes subject to contrary terms and provisions expressly adopted in
any Indenture, any supplemental indenture or the Notes which contrary terms
shall be controlling.

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

SECTION 1.01. Definitions. For all purposes of this Indenture, of all
indentures supplemental hereto and of all Notes issued hereunder or thereunder,
except as otherwise expressly provided or unless the context otherwise
requires:

 

(a)                                  the terms defined in
this Indenture have the meanings assigned to them in this Article 1, and
include the plural as well as the singular;

 

(b)                                 all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with generally accepted accounting principles in the United States, and, except
as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder
shall mean such accounting principles as are generally accepted at the date of
such computation in the United States;

 

(c)                                  the word “including”
shall be construed to be followed by the words “without limitation”;

 

(d)                                 Article and Section headings
are for the convenience of the reader and shall not be considered in
interpreting this Indenture or the intent of the parties hereto; and

 

(e)                                  the words “hereby”, “herein”,
“hereof” and “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section, Exhibit or
other subdivision.

 

(f)                                    References herein
to Articles, Sections, Exhibits and Schedules shall, refer respectively to
Articles, Sections, Exhibits and Schedules of these Standard Indenture Terms,
unless otherwise expressly provided.

 

“Act”,
with respect to any Holder, has the meaning set forth in Section 1.04.

 

1

 

“Additional Amounts”  means additional amounts which are required
hereby to be paid by the Trust to Holders pursuant to Section 3.18
or additional amounts which are required pursuant to the Funding Agreement,
under circumstances specified therein, to be paid by Protective Life to the
Funding Agreement Holder, to compensate for any withholding or deduction for or
on the account of any present or future taxes, duties, levies, assessments or
governmental charges of whatever nature imposed or levied on payments in
respect of such Note or Funding Agreement, as applicable, by or on behalf of
any governmental authority in the United States having the power to tax, so
that the net amount received by the Holder or the Funding Agreement Holder,
will equal the amount that would have been received under such Note or Funding
Agreement, had no such deduction or withholding been required.

 

“Administrative
Services Agreement” means that certain Administrative Services
Agreement, dated as of the date specified in the Omnibus Instrument, by and
between Wilmington, on behalf on the Trust and the Administrator, as the same may be
amended, modified or supplemented from time to time.

 

“Administrator”
means, unless otherwise specified in this Indenture, AMACAR Pacific Corporation
in its capacity as Administrator pursuant to the Administrative Services
Agreement, and shall also include its permitted successors and assigns as
Administrator thereunder.

 

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with,
that Person and, in the case of an individual, any spouse or other member of
that individual’s immediate family. For the purposes of this definition, “control”
(including with correlative meanings, the terms “controlling”, “controlled by”
and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise.

 

“Agent” means
any of the Registrar, Transfer Agent, Paying Agent or Calculation Agent.

 

“Authorized
Newspaper” means a newspaper, in an official language of the place
of publication or in the English language, customarily published on each day
that is a business day in the place of publication, whether or not published on
days that are not business days in the place of publication, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and, in each case, on any day that is a business day in
the place of publication.

 

“Authorized
Signatories” mean Responsible Officers authorized to execute
documents on behalf of the Trust.

 

“Banking
Day”  means a day (other than
a Saturday or Sunday) on which commercial banks are generally open for business
(including dealings in foreign exchange and foreign currency deposits) in the
place where the specified office of the Paying Agent or, as the case may be,
the Registrar, is located.

 

2

 

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

 

“Calculation
Agent” means, in relation to the Notes, the institution appointed as
calculation agent for the purposes of the Notes and named as such in the
relevant Pricing Supplement. For such purpose, the Paying Agent accepts its
appointment as such pursuant to Section 7.16.

 

“Clearing
System” means DTC and any other Clearing System specified in the
relevant Pricing Supplement.

 

“Code”
means the Internal Revenue Code of 1986, as amended, including any successor or
amendatory statutes and any applicable rules, regulations, notices or orders
promulgated thereunder.

 

“Collateral”
means, with respect to the Notes, the right, title and interest of the Trust in
and to (i) the Funding Agreements held in the Trust, (ii) all
proceeds of the Funding Agreement and all amounts and instruments on deposit
from time to time in the Trust’s Collection Account, (iii) all books and
records pertaining to the Funding Agreement(s), and (iv) all rights of the
Trust pertaining to the foregoing.

 

“Collection
Account” means an account with the Indenture Trustee in the name of
the Trust or such other account with a depositary institution that is rated at
least  AA- or Aa3 by a nationally
recognized statistical rating organization as may be designated by
Wilmington or the Administrator, which account shall be segregated from other
accounts held by the Indenture Trustee or such other depositary institution.

 

“Commission”
means the Securities and Exchange Commission or any successor body performing
such duties of the Commission.

 

“Contingent
Obligation” means, as applied to any Person, without duplication,
any direct or indirect liability, contingent or otherwise, of that Person (i) with
respect to any Indebtedness, lease, dividend, letter of credit or other
obligation of another if the primary purpose or intent thereof by the Person
incurring the Contingent Obligation is to provide assurance to the obligee of
such obligation of another that such obligation of another will be paid or
discharged, or that any agreements relating thereto will be complied with, or
that the holders of such obligation will be protected (in whole or in part)
against loss in respect thereof, (ii) under any letter of credit issued
for the account of or for which that Person is otherwise liable for
reimbursement thereof, (iii) under agreements providing for the hedging or
limitation of interest

 

3

 

rate or currency risk, (iv) under any performance bond or other
surety arrangement, (v) under any direct or indirect guaranty, endorsement
(otherwise than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by such Person of
the obligation of another, or (vi) for the obligations of another through
any agreement (contingent or otherwise).

 

“Corporate
Trust Office” means the office of the Indenture Trustee at which the
corporate trust business of the Indenture Trustee shall, at any particular
time, be principally administered, which office at the date of this Indenture
is located as indicated in Section 1.05.

 

“Dealer”
means the dealers identified in the Distribution Agreement or the agents
identified in the Selling Agent Agreement, as applicable.

 

“Default”
means any occurrence that is, or with notice or the lapse of time or both would
become, an Event of Default.

 

“Defaulted
Interest” has the meaning set forth in Section 2.09.

 

“Definitive
Note” means a Note in certificated and registered form.

 

“Depositary”
means the Person designated as Depositary by the Trust pursuant to this
Indenture, which Person, if required by any applicable law, regulation or
exchange requirement, must be a clearing agency registered under the Securities
Exchange Act and, if so provided with respect to any Note, any successor to
such Person. Initially, the “Depositary” shall be DTC.

 

“Distribution
Agreement” means that certain Distribution Agreement, dated as of
the date specified in the Omnibus Instrument, by and among the Trust,
Protective Life and the dealers named therein relating to the issuance and sale
of the Notes under the Trust’s Secured Medium-Term Note Program, as the same may be
amended, modified or supplemented.

 

“Dollars”,
“$”, “U.S.  $” and “U.S. Dollars” mean such coin or currency of
the United States as at the time shall be legal tender for the payment of
public or private debts.

 

“DTC”
means The Depository Trust Company, and its successors and assigns.

 

“Event of
Default” has the meaning set forth in Section 6.01.

 

“Expense
and Indemnity Agreement” means that certain Expense and Indemnity
Agreement, dated as of the date specified in the Omnibus Instrument, by and
among Protective Life and each of Wilmington, on behalf of the Trust and
itself, the Indenture Trustee, and the Administrator and any service provider
that may become a party to such agreement from time to time, as the same may be
amended, modified or supplemented from time to time.

 

“European
Union Directive” means any law, regulation, directive or any
interpretation by the European Union or a member nation of the European Union
which requires the withholding or deduction of any amounts payable under the
Notes or the Funding Agreement.

 

4

 

“Funding
Agreement” means that certain funding agreement (or funding
agreements), entered into by and between Protective Life and the Trust and
subsequently pledged and collaterally assigned to the Indenture Trustee for the
benefit of the holders of the Notes, as it may be modified, restated,
replaced, supplemented or otherwise amended from time to time in accordance
with the terms thereof.

 

“Funding
Agreement Holder”  means the holder of the Funding
Agreement specified as such in the Funding Agreement.

 

“Global
Note” means a Note issued in book-entry and registered form.

 

“Holder”
means the Person in whose name such Note is registered in the Register.

 

“Indebtedness”
means, as applied to any Person, (i) all indebtedness for borrowed money
or for the deferred purchase price of property or services in respect of which
such Person is liable, contingent or otherwise, or in respect of which such
Person otherwise assures a creditor against loss (excluding trade accounts
payable and accrued expenses arising in the ordinary course of business as
determined in good faith by such Person), (ii) that portion of obligations
with respect to capital leases which is properly classified as a liability on a
balance sheet in conformity with generally accepted accounting principles, (iii) obligations
evidenced by bonds, notes, debentures or similar instruments of such Person,
and notes payable by such Person and drafts accepted by such Person
representing extensions of credit whether or not representing obligations for
borrowed money, (iv) the face amount of all drafts drawn thereunder; and (v) all
indebtedness secured by any Lien on any property or asset owned or held by that
Person regardless of whether the indebtedness secured thereby shall have been
assumed by that Person or is non-recourse to the credit of that Person.

 

“Indenture”
means that certain Indenture, dated as of the date specified in the Omnibus
Instrument, by and between the Indenture Trustee and the Trust, as amended or
supplemented from time to time which incorporates by reference these Standard
Indenture Terms, and shall include the terms of the Notes established as
contemplated hereunder and thereunder.

 

“Indenture
Trustee” means, unless otherwise specified in this Indenture, The
Bank of New York and, subject to the provisions of Article 7
hereof, shall also include its successors and assigns as Indenture Trustee
hereunder.

 

“Interest
Payment Date” means, with respect to the Notes, each date on which
interest is paid to the Holders of the Notes as specified in this Indenture.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended,
as it may be amended or supplemented from time to time, and any successor
statute thereto, and the rules, regulations and published interpretations of
the Commission promulgated thereunder from time to time.

 

“Issuance
Date” means the original date of issuance of the Notes.

 

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

 

5

 

“License
Agreement” means that certain License Agreement between Wilmington,
on behalf of the Trust and Protective Life Corporation, dated as of the date
specified in the Omnibus Instrument, as the same may be amended, modified
or supplemented from time to time.

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), or preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including without limitation any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing, and the filing of any financing statement under the UCC
or comparable law of any jurisdiction).

 

“Maturity
Date” means, with respect to the Notes, the date on which the
principal of the Notes becomes due and payable as therein or herein provided,
whether at the Stated Maturity Date thereof or by declaration of acceleration
or otherwise.

 

“Nonrecourse
Parties” has the meaning set forth in Section 9.01.

 

“Note”
means any note designated in this Indenture and authenticated and delivered
under this Indenture, which is in registered form and may be
represented by a Global Note or a Definitive Note, and which shall be
substantially in the forms attached as Exhibit A-1, Exhibit A-2
and Exhibit A-3, and “Notes”
means the secured notes of the Trust represented by such Note.

 

“Notice of
Default” has the meaning set forth in Section 6.01.

 

“Office or
Agency” means with respect to the Notes, an office or agency of the
Trust, the Indenture Trustee, the Paying Agent or the Registrar, as the case may be,
maintained or designated as the Place of Payment for such Notes pursuant to Section 3.04
or any other office or agency of the Trust, Indenture Trustee, Paying Agent or
Registrar, as the case may be, maintained or designated for such Notes
pursuant to Section 3.04.

 

“Omnibus
Instrument” means the omnibus instrument pursuant to which certain
Program Documents are executed and the Trust is established.

 

“Opinion of
Counsel” means a written opinion addressed to the Indenture Trustee
(among other addressees) by legal counsel, who may be internal legal
counsel to Protective Life, who may, except as otherwise expressly provided in
this Indenture, be counsel for the Trust or Protective Life or other counsel and who shall be
reasonably satisfactory to the Indenture Trustee.

 

“Outstanding”
means, with respect to the Notes, as of any date of determination, all of the
Notes theretofore authenticated and delivered under this Indenture or in one or
more indentures supplemental hereto or thereto, except:

 

(i)                                     Notes theretofore
cancelled by the Indenture Trustee or delivered to the Indenture Trustee for
cancellation;

 

6

 

(ii)                                  Notes or portions
thereof for the payment or redemption of which money in the necessary amount
has been theretofore deposited with the Indenture Trustee or any Paying Agent
in trust for the Holders of such Notes, provided
that, if such Notes are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Indenture Trustee has been made;

 

(iii)                               Notes in exchange for or
in lieu of which other Notes have been authenticated and delivered pursuant to
this Indenture unless proof satisfactory to the Indenture Trustee is presented
that any such Notes are held by a holder in due course;

 

(iv)                              Notes alleged to have
been destroyed, lost, stolen or mutilated and surrendered to the Indenture
Trustee for which either replacement Notes have been issued or payment has been
made as provided for in Section 2.08 unless proof satisfactory to
the Indenture Trustee is presented that any such Notes are held by a holder in
due course; and

 

(v)                                 Notes represented by
Global Notes to the extent that they shall have been duly exchanged for
Definitive Notes pursuant to this Indenture unless proof satisfactory to the
Indenture Trustee is presented that any such Notes are held by a holder in due
course;

 

provided further, however, that
in determining whether the Holders of the requisite percentage of the principal
amount of the Outstanding Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Notes owned by the Trust or any
Affiliate of the Trust shall be disregarded and deemed not to be Outstanding,
except that in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that the Indenture Trustee knows to be so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Indenture Trustee that the pledgee is entitled so to act with respect to such
Notes and that the pledgee is not the Trust or any Affiliate of the Trust.

 

“Paying
Agent” means, unless otherwise specified in this Indenture or a
supplemental indenture, the Indenture Trustee, in its capacity as paying agent
under this Indenture or its successors or assigns.

 

“Person”
means any natural person, corporation, limited partnership, general
partnership, joint stock company, joint venture, association, company, limited
liability company, trust (including any beneficiary thereof), bank, trust
company, land trust, business trust or other organization, whether or not a
legal entity, and governments and agencies and political subdivisions thereof.

 

“Place of
Payment” means the place where the principal of, premium, if any,
and interest on the Notes are payable which, unless otherwise specified in this
Indenture, shall be the address specified in Section 1.05 for the
Indenture Trustee.

 

7

 

“Pricing
Supplement” means the pricing supplement attached to the Omnibus
Instrument as Exhibit G as prepared by the Trust in connection with the
issuance by the Trust of its Notes and agreed to by Protective Life, the Trust
and the relevant dealers or agents appointed under the Distribution Agreement
and/or Selling Agent Agreement, as the case may be, as such Pricing
Supplement may be amended, modified, supplemented or replaced from time to
time.

 

“Principal
Financial Center” means, as applicable, the capital city of the
country issuing the Specified Currency; provided,
however, that with respect to United States Dollars, Australian
dollars, Canadian dollars, and Swiss francs, the “Principal Financial Center”
shall be The City of New York, Sydney, Toronto and Zurich, respectively.

 

“Proceeds”
means all of the proceeds of, and all other profits, products, rents, principal
payments, interest payments or other receipts, in whatever form, arising from
the collection, sale, lease, exchange, assignment, licensing or other
disposition or maturity of, or other realization upon, a Funding Agreement,
including without limitation all claims of the Trust against third parties for
loss of, damage to or destruction of, or for proceeds payable under, a Funding
Agreement, in each case whether now existing or hereafter arising.

 

“Program”
means, the Secured Note Program of the Protective Life Secured Trusts.

 

“Program
Documents” means this Indenture, each Note, the Omnibus Instrument,
the Trust Agreement, the Funding Agreement, the Distribution Agreement, the
Selling Agent Agreement, the Administrative Services Agreement, the License
Agreement and the Expense and Indemnity Agreement and any other documents or
instruments entered into by, with respect to, or on behalf of, the Trust.

 

“Protective
Life” means Protective Life Insurance Company, a Tennessee insurance
company, or any successor thereto.

 

“Rating
Agency” means any rating agency that has rated either the Program
for the issuance of Notes as set forth in the Registration Statement or the
Notes.

 

“Redemption
Price” means the price at which the Notes are to be redeemed
pursuant to Section 2.04, as set forth in the applicable Pricing
Supplement or a supplemental indenture.

 

“Register”
has the meaning set forth in Section 2.06.

 

“Registrar”
means, unless otherwise specified in this Indenture or a supplemental
indenture, the Indenture Trustee, in its capacity as registrar under this
Indenture, or its successors or assigns.

 

“Registration
Statement” means (a) a registration statement on Form S-3
or other appropriate form, including the prospectus, prospectus supplements and
the exhibits included therein, any pre-effective or post-effective amendments
thereto and any registration statements filed subsequent thereto under rules promulgated
under the Securities Act, relating to the registration under the Securities Act
of the Notes of the Trust and the Funding Agreement, (b) any preliminary
prospectus or prospectus supplements thereto relating to the Notes of the Trust
required to be filed pursuant to the Securities Act and any documents or
filings incorporated

 

8

 

therein by reference, and (c) a registration statement and such
other documents, forms or filings as may be required by the Securities Act
or the Trust Indenture Act, or other securities laws in each case relating to
the  Notes of the Trust.

 

“Regular
Record Date” for the interest payable on any Interest Payment Date
on the Notes means the date specified for that purpose in such Note or this
Indenture.

 

“Relevant
Financial Center” means such financial center or centers as may be
specified in the relevant Pricing Supplement in relation to the relevant
currency for the purposes of the definition of “Specified Business Day.”

 

“Relevant
Purchasing Agent” means the lead purchasing agent (in a firm
commitment offering of Notes) or lead selling agent (in a best efforts offering
of Notes) appointed pursuant to the Distribution Agreement or the Selling Agent
Agreement, as the case may be.

 

“Responsible
Officer” means, with respect to the Indenture Trustee or Wilmington,
any vice president, assistant vice president, any assistant secretary, any assistant
treasurer, any trust officer or assistant trust officer, or any other officer
of the Indenture Trustee or Wilmington, as the case may be, customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his or her knowledge
of and familiarity with the particular subject, and also, with respect to
Wilmington, having direct responsibility for the administration of the Trust,
or with respect to the Indenture Trustee, having direct responsibility for the
administration of this Indenture.

 

“Secured
Obligations” means the obligations of the Trust secured under the
Notes and this Indenture, including (i) all principal of, premium, if any,
and interest (including, without limitation, any interest which accrues after
the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of the Trust, whether or not allowed
or allowable as a claim in any such proceeding) on such Notes or pursuant to
this Indenture, (ii) all other amounts payable by the Trust hereunder or
under such Notes including all Additional Amounts (if applicable) and all costs
and expenses (including without limitation attorneys’ fees) incurred by the
Indenture Trustee (to the extent not paid pursuant to the Expense and Indemnity
Agreement) and (iii) any renewals or extensions of the foregoing.

 

“Securities
Act” means the Securities Act of 1933, as it may be amended or
supplemented from time to time, and any successor statute thereto, and the
rules, regulations and published interpretations of the Commission promulgated
thereunder from time to time.

 

“Securities
Exchange Act” means the Securities Exchange Act of 1934, as it may be
amended or supplemented from time to time, and any successor statute thereto,
and the rules, regulations and published interpretations of the Commission
promulgated thereunder from time to time.

 

“Selling
Agent Agreement” means that certain Selling Agent Agreement, dated
as of the date specified in the Omnibus Instrument, by and among the Trust,
Protective Life and the agents named therein relating to the issuance and sale
of the Notes under the Trust’s InterNotes® Program, as the same may be
amended, modified or supplemented.

 

9

 

“Series of Notes” means the series of
Notes issued by the Trust; and a Series of Notes may comprise Notes
in more than one denomination.

 

“Special
Record Date” means a date fixed by the Indenture Trustee pursuant to
Section 2.09 for the payment of any Defaulted Interest on any Note.

 

“Specified
Business Day” means a day (other than a Saturday or Sunday or a
legal holiday) on which commercial banks and foreign exchange markets are
generally open for business and settle payments in the Relevant Financial
Center in respect of the Notes or, in relation to Notes payable in euro, a day
on which the TARGET System is operating and, in either case, a day (other than
a Saturday or Sunday) on which commercial banks are generally open for business
and foreign exchange markets settle payments in any place specified in the
relevant Pricing Supplement.

 

“Specified
Currency” means the currency in which the Notes are denominated (or,
if such currency is no longer legal tender for the payment of public and
private debts in the country issuing such currency or, in the case of euro, in
the member states of the European Union that have adopted the single currency
in accordance with the Treaty on establishing the European Community, as
amended by the Treaty on European Union, such currency which is then such legal
tender).

 

“Standard
Indenture Terms” means this document, the Standard Indenture Terms.

 

“Stated
Maturity Date” means, with respect to any Note or any installment of
interest thereon, the date specified in such Note, as the fixed date on which
the principal of such Note or such installment of interest is due and payable.

 

“Sterling”
means such coin or currency of the United Kingdom as at the time shall be legal
tender for the payment of public or private debts.

 

“TARGET
System” means the
Trans-European Automated Real-Time Gross Settlement Express Transfer System.

 

“Transfer
Agent” means, unless otherwise specified in this Indenture or a
supplemental indenture, the Indenture Trustee, in its capacity as transfer
agent under this Indenture or its successors or assigns.

 

“Treasury
Regulations” means the regulations promulgated by the United States
Treasury Department pursuant to the Code.

 

“Trust”
means the Protective Life Secured Trust specified in the Omnibus Instrument,
which shall be a statutory trust or a common law trust (as indicated in the
Pricing Supplement), formed under the laws of the State of Delaware, in the
case of a common law trust, acting by and through Wilmington and/or the
Administrator, as the case may be, together with its permitted successors
and assigns.

 

10

 

“Trust
Agreement” means that certain Statutory Trust Agreement or Common
Law Trust Agreement, as applicable, included in the Omnibus Instrument,
declaring and establishing the Trust, as may be amended, modified or
supplemented from time to time.

 

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

 

“Trust
Beneficial Owner” means the beneficial owner of the Trust Beneficial
Interest.

 

“Trust
Certificate” means a certificate signed by one or more Responsible
Officers of Wilmington on behalf of the Trust and delivered to the Indenture
Trustee.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as it may be
amended or supplemented from time to time, and any successor statute thereto,
and the rules, regulations and published interpretations of the Commission
promulgated thereunder from time to time.

 

“Trust
Order” or “Trust Request”
means a written statement, request or order of the Trust signed in its name by
Wilmington and delivered to the Indenture Trustee.

 

“UCC”
means the Uniform Commercial Code, as from time to time in effect in the
State of New York; provided that,
with respect to the perfection, effect of perfection or non-perfection, or
priority of any security interest in the Collateral, “UCC” shall mean the Uniform Commercial
Code, as from time to time in effect in the applicable jurisdiction whose law
governs such perfection, non-perfection or priority.

 

“United
States” means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas subject
to its jurisdiction.

 

“Wilmington”
means, unless otherwise specified in this Indenture, Wilmington Trust Company,
not in its individual capacity, but solely as Trustee under the Trust
Agreement, and shall also include its permitted successors and assigns
hereunder.

 

SECTION 1.02. Compliance Certificates and Opinions. Upon any application
or request by the Trust to the Indenture Trustee to take any action under any
provision of this Indenture, the Trust shall furnish to the Indenture Trustee a
Trust Certificate stating that all conditions precedent, if any, provided for
in this Indenture relating to the proposed action have been complied with and
an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

 

SECTION 1.03. Form of Documents Delivered to Indenture Trustee.

 

(a)                                  In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

11

 

(b)                                 Any certificate or
opinion of the Trust may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless the
Trust knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon
which its certificate or opinion is based are erroneous. Any such certificate
or opinion or any Opinion of Counsel may be based, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by,
the Trust stating that the information with respect to such factual matters is
in the possession of the Trust, unless such counsel knows, or in the exercise
of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous. Any Opinion of
Counsel may be based on the written opinion of other counsel, in which
event such Opinion of Counsel shall be accompanied by a copy of such other
counsel’s opinion and shall include a statement to the effect that such counsel
believes that such counsel and the Indenture Trustee may reasonably rely
upon the opinion of such other counsel. Any certificate or opinion of the Trust
or of counsel may be based, insofar as it relates to accounting matters,
upon a certificate or opinion of or representations by an accountant or firm of
accountants in the employ of Protective Life or the Trust, unless the Trust
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the accounting matters upon which
its certificate, statement or opinion is based are erroneous.

 

(c)                                  Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

(d)                                 Wherever in this
Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Trust shall deliver any document as
a condition of the granting of such application, or as evidence of compliance
with any term hereof, it is intended that the truth and accuracy, at the time
of the granting of such application or at the effective date of such
certificate or report (as the case may be), of the facts and opinions
stated in such document shall in such case be conditions precedent to the right
of the Trust to have such application granted or to the sufficiency of such
certificate or report. The foregoing shall not, however, be construed to limit
the Indenture Trustee’s right to rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Section 7.01.

 

(e)                                  Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (including one furnished pursuant to specific requirements of
this Indenture relating to a particular application or request) shall
substantially include:

 

(i)                                     a statement that
each individual signing such certificate or opinion has read such covenant or
condition and the definitions herein relating thereto;

 

(ii)                                  a brief statement as
to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based;

 

12

 

(iii)                               a statement that, in the
opinion of each such individual, he has made such examination or investigation
as is necessary to enable him or her to express an informed opinion as to
whether or not such covenant or condition has been complied with; and

 

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

 

SECTION 1.04. Acts of Holders.

 

(a)                                  Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by any Holder may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holder in person or by one or more agents duly appointed in writing. Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may,
alternatively, be embodied in and evidenced by the record of Holders of Notes
voting in favor thereof, either in person or by proxies duly appointed in
writing, at any meeting of Holders of Notes duly called and held in accordance
with the provisions of Article 10, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or
record or both are delivered to the Indenture Trustee. Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments or
so voting at any meeting. Proof of execution of any such instrument or of
writing appointing any such agent, or of the holding by any Person of a Note,
shall be sufficient for any purpose of this Indenture and (subject to Section 7.01)
conclusive in favor of the Indenture Trustee, and the Trust, if made in the
manner provided in this Section 1.04. The record of any meeting of
Holders of Notes shall be proved in the manner provided in Section 10.06.
Without limiting the generality of this Section 1.04, unless
otherwise provided in or pursuant to this Indenture, a Clearing System that is
or whose nominee is a Holder of a Global Note may allow its account
holders who have beneficial interests in such Global Note credited to accounts
with such Clearing System to direct such Clearing System in taking such action
through such Clearing System’s standing instructions and customary practices. The
Clearing System shall report only one result of its solicitation of proxies to
the Indenture Trustee.

 

(b)                                 Subject to Section 7.01,
the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by the certificate of
a notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him or her the execution thereof. Whenever such execution is by
a signer acting in a capacity other than his or her individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his or her
authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may be proved
in any other manner that the Indenture Trustee deems sufficient.

 

13

 

(c)                                  The ownership,
principal amount and serial numbers of Notes held by any Person, and the date
of the commencement and the date of the termination of holding the same, shall
be proved by the Register.

 

(d)                                 Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Note shall bind every future Holder of the same Note and the Holder of
every Note issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Indenture Trustee or the Trust in reliance thereon, whether or
not notation of such action is made upon such Note.

 

(e)                                  Except as provided in
subsection (f) below, if the Trust shall solicit from the Holders of
Notes any Act referred to in Section 1.04(a), the Trust may, at its
option, fix in advance a record date for the determination of Holders entitled
to vote or consent in  connection with
any such Act, but the Trust shall have no obligation to do so. If such record
date is fixed, such Act may be given after such record date, but only the
Holders of record at the close of business on such record date shall be deemed
to be Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Notes have authorized or agreed or consented to such
Act, and for that purpose the Outstanding Notes shall be computed as of such
record date; provided, that no
such Act by Holders on such record date shall be deemed effective unless it
shall become effective pursuant to the provisions of this Indenture not later
than six months after the record date. Nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Notes on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trust shall cause
notice of such record date and the proposed action by Holders to be given to
the Indenture Trustee in writing and to each Holder of the Notes in the manner
set forth in Section 1.06.

 

(f)                                    The Indenture
Trustee may set any day as a record date for the purpose of determining
the Holders entitled to join in the giving or making of (i) any notice
delivered pursuant to Section 6.01(d), (ii) any declaration of
acceleration referred to in Section 6.02, (iii) any request to
institute proceedings referred to in Section 6.07(b) or (iv) any
direction referred to in Section 6.12. If such a record date is
fixed pursuant to this paragraph, the relevant action may be taken or
given after such record date, but only the Holders of record at the close of
business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding Notes
have authorized or agreed or consented to such action, and for that purpose the
Outstanding Notes shall be computed as of such record date; provided, that no such action by Holders
on such record date shall be deemed effective unless it shall become effective
pursuant to the  provisions of this
Indenture not later than six months 
after the record date. Nothing in this paragraph shall be construed to
prevent the Indenture Trustee from setting a new record date for any action for
which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no
action by any Person be cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Notes on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Indenture Trustee shall cause notice of such record date and the proposed
action by Holders to be given to the Trust in writing and to each Holder of the
Notes in the manner set forth in Section 1.06.

 

14

 

SECTION 1.05. Notices. Any request, demand, authorization, direction,
notice, consent, waiver or other action required or permitted by this Indenture
to be made upon, given or furnished to, or filed with, the Indenture Trustee,
the Registrar, the Transfer Agent, the Paying Agent, the Calculation Agent, the
Trust and the Rating Agencies shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and sent by fax,
telex, or mailed, first-class mail or overnight courier, in each case
postage prepaid, at the address specified in this Section 1.05 or
at any other address previously furnished in writing.

 

	
  Such notices shall be addressed

  
	
   

  
	
  if to the Indenture Trustee, to:

  
	
   

  
	
  The Bank of New York

  
	
  100 Church Street

  
	
  8th Floor

  
	
  New York, New York  10286

  
	
  Facsimile: (212) 437-6151

  
	
  Attention: 
  Dealing and Trading

  
	
   

  
	
  if to the Registrar, Transfer Agent, Paying
  Agent and Calculation Agent, to:

  
	
   

  
	
  The Bank of New York

  
	
  100 Church Street

  
	
  8th Floor

  
	
  New York, New York  10286

  
	
  Facsimile: (212) 437-6151

  
	
  Attention: Dealing and Trading

  
	
   

  
	
  if to the Trust, to:

  
	
   

  
	
  Protective Life Secured Trust (followed by
  the number of the Trust designated in the Omnibus Instrument)

  
	
  c/o Wilmington Trust Company

  
	
  Rodney Square North

  
	
  1100 North Market Street

  
	
  Wilmington, Delaware  19890-0001

  
	
  Facsimile: (302) 636-4140

  
	
  Attention: 
  Corporate Trust Administration

  
	
   

  
	
  if to the Rating Agencies, to:

  
	
   

  
	
  Standard & Poor’s Rating Services

  
	
  55 Water Street

  
	
  33rd Floor

  
	
  New York, New York  10041

  
	
  Facsimile: (212) 438-5215

  
	
  Attention: 
  Capital Markets Group

  

 

15

 

	
  Moody’s Investors Service, Inc.

  
	
  Life Insurance Group

  
	
  99 Church Street

  
	
  New York, New York  10007

  
	
  Facsimile: 
  (212) 553-4805

  
	
  Attention: 
  Protective Life Secured Trusts

  
	
   

  
	
  or at such other address previously
  furnished in writing by one party to the other.

  

 

SECTION 1.06. Notice to Holders; Waiver.

 

(a)                                  Except as otherwise
expressly provided in or pursuant to this Indenture, notices to Holders required
under the Notes shall be sufficiently given upon the mailing by overnight
courier or first-class mail (or equivalent), or (if posted to an overseas
address) by airmail, postage prepaid, of such notices to each Holder of the
Notes at their registered addresses as recorded in the Register.

 

(b)                                 Where this Indenture
provides for notice in any manner, such notice may be waived in writing by
the Person entitled to receive such notice, either before or after the event,
and such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Indenture Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver. In any case, neither the failure to give such notice, nor any defect in
any notice to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders, and any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given.

 

(c)                                  In the case by reason
of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as
shall be made with the approval of the Indenture Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

SECTION 1.07. Severability. In case any provision in or obligation under
this Indenture or the Notes shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby to the
fullest extent permitted under applicable law.

 

SECTION 1.08. Successors and Assigns. All covenants, stipulations,
promises and agreements in this Indenture by the Trust shall bind its
successors and assigns, whether so expressed or not.

 

SECTION 1.09. Benefits of Indenture. Nothing in this Indenture or in any
Note, expressed or implied, shall give to any Person other than the parties
hereto and their successors and the Holders, any legal or equitable right,
remedy or claim under this Indenture.

 

16

 

SECTION 1.10. Language of Notices. Any request, demand, authorization,
direction, notice, consent, election or waiver required or permitted under this
Indenture shall be in the English language, except that, if the Trust so
elects, any published notice may be in an official language of the country
of publication.

 

SECTION 1.11. Governing Law.

 

(a)                                  This Indenture and
the Notes (unless otherwise specified in the Pricing Supplement) shall be
governed by, and construed in accordance with, the laws of the State of New
York without regard to conflict of law principles, except as required by
mandatory provisions of law and except to the extent that the validity or
perfection of the Trust’s ownership of the Funding Agreements, the perfection
of the Indenture Trustee’s security interest therein, or remedies under this
Indenture in respect thereof may be governed by laws of a jurisdiction
other than the State of New York.

 

(b)                                 ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST THE TRUST, THE ASSETS OF THE TRUST, THE INDENTURE
TRUSTEE, REGISTRAR, TRANSFER AGENT OR PAYING AGENT OR ANY OTHER AGENT, ARISING
OUT OF OR RELATING TO THIS INDENTURE, ANY NOTE OR ANY PORTION OF THE COLLATERAL
MAY BE BROUGHT IN A UNITED STATES FEDERAL COURT LOCATED IN NEW YORK CITY,
THE BOROUGH OF MANHATTAN, AND BY EXECUTION AND DELIVERY OF THIS INDENTURE EACH
OF THE TRUST, THE INDENTURE TRUSTEE,  THE
REGISTRAR, THE TRANSFER AGENT, THE PAYING AGENT, AND ANY OTHER AGENT, (IN SUCH
CAPACITIES) ACCEPT  (AND WITH RESPECT TO
THE TRUST, IN CONNECTION WITH ITS PROPERTY ACCEPTS), GENERALLY AND
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURT AND WAIVE
ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREE TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS INDENTURE, ANY NOTE OR ANY
PORTION OF THE COLLATERAL.

 

SECTION 1.12. Waiver of Jury Trial. EACH OF THE PARTIES TO THIS INDENTURE
HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS INDENTURE, THE NOTES OR ANY
DEALINGS AMONG THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION. The
scope of this waiver is intended to encompass any and all disputes that may be
filed in any court and that relate to the subject matter of this transaction
including without limitation contract claims, tort claims, breach of duty
claims, and all other common law and statutory claims. Each party hereto
acknowledges that this waiver is a material inducement to enter into a business
relationship, that such party has already relied on the waiver in entering into
this Indenture, and that such party will continue to rely on the waiver in its
related future dealings. Each party hereto further warrants and represents that
it has reviewed this waiver with its legal counsel, and that it knowingly and
voluntarily waives its jury trial rights following consultation with legal
counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS

 

17

 

INDENTURE OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
INDENTURE. In the event of litigation, this Indenture may be filed as a
written consent to a trial by the court.

 

SECTION 1.13. Counterparts. This Indenture and any amendments, waivers,
consents or supplements hereto or thereto, may be executed in any number
of counterparts, and by different parties hereto in separate counterparts, and
each of which when so executed and delivered shall be deemed an original, but
all such counterparts together shall constitute but one and the same instrument.
This Indenture shall become effective upon the execution of a counterpart hereof
by each of the parties hereto.

 

SECTION 1.14. Third Party Beneficiaries. This Indenture will inure to the
benefit of and be binding upon the parties hereto, and Wilmington and their
respective successors and permitted assigns.

 

SECTION 1.15. Conflict with Trust Indenture Act. If any provision of this
Indenture limits, qualifies or conflicts with any duties imposed by any of
Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of
Section 318(c) thereof, such imposed duties shall control.

 

ARTICLE 2

THE NOTES

 

SECTION 2.01. Forms Generally.

 

(a)                                  The Notes constitute
direct, unconditional, unsubordinated and secured non-recourse obligations of
the Trust and rank equally among themselves. The Notes shall be in
substantially the form set forth in Exhibit A-1, Exhibit A-2
and Exhibit A-3 attached hereto, as applicable, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required by this Indenture or as may in the Trust’s judgment be
necessary, appropriate or convenient to permit such Notes to be issued and
sold, or to comply, or facilitate compliance, with applicable laws, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of
any securities exchange on which such Notes may be listed, or as may,
consistently herewith, be determined by the Trust (based conclusively on the
advice of counsel) as evidenced by its execution thereof. Any portion of the
text of any Note may be set forth on the reverse thereof with an appropriate
reference on the face of the Note.

 

(b)                                 The terms and
provisions contained in the Notes shall constitute, and are hereby expressly
made a part of this Indenture, and, to the extent applicable, the
Indenture Trustee, by its execution and delivery of this Indenture, and the
Trust by its execution and delivery of this Indenture, expressly agrees to such
terms and provisions and to be bound thereby.

 

(c)                                  Except as described
in this Section 2.01(c), no Global Note evidencing any of the Notes
and deposited with or on behalf of any Clearing System shall be exchangeable
for Definitive Notes. Subject to the foregoing sentence, if (i) such
Clearing System notifies the Trust that it is unwilling or unable to continue
as Depositary or the Trust becomes aware that the

 

18

 

Clearing System has ceased to be a clearing agency registered under the
Securities Exchange Act and in any such case the Trust fails to appoint a
successor depositary within ninety (90) days, (ii) an Event of Default
shall have occurred and is continuing with respect to the Notes or (iii) the
Trust shall have decided in its sole discretion that the Notes should no longer
be evidenced solely by one or more Global Notes, then, pursuant to written
instructions by the Trust to the Indenture Trustee (in the case of clause (i)),
or upon written request of the Holder (or accountholder of such Clearing System
with an interest in the Notes) (in the case of clause (ii)), or pursuant to
written instructions by the Trust to the Indenture Trustee and Clearing System
(in the case of clause (iii)):

 

(A)                              with respect to each
Global Note evidencing such Notes, the Trust shall execute, and the Indenture
Trustee shall authenticate and deliver Definitive Notes in authorized
denominations in exchange for the Global Note, in an aggregate principal amount
equal to the Outstanding principal amount of the related Global Note. Upon the
exchange of the Global Note for the Definitive Notes, such Global Note shall be
cancelled by the Registrar. Definitive Notes issued in exchange for a Global
Note pursuant to this Section 2.01(c) shall be registered in
the Register in such names and in such denominations as the Clearing System for
such Global Note, pursuant to the instructions from its direct or indirect
participants or otherwise, shall instruct the Indenture Trustee, serving as
custodian, on behalf of the nominee of the Depositary, of the Global Note. The
Indenture Trustee shall immediately provide the information to the Registrar. Immediately
after the authentication of the Definitive Notes by the Indenture Trustee, the
Indenture Trustee shall deliver such Definitive Notes to the Holders of such
Notes;

 

(B)                                if Definitive Notes are
issued in exchange for any portion of a Global Note after the close of business
at the Office or Agency for such Note where such exchange occurs on (1) any
Regular Record Date for such Notes and before the opening of business at such
Office or Agency on the next Interest Payment Date, or (2) any Special
Record Date for such Notes and before the opening of business at such Office or
Agency on the related proposed date for payment of interest or Defaulted
Interest, as the case may be, interest shall not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of such Definitive Notes, but shall be payable on such Interest Payment
Date or proposed date for payment, as the case may be, only to the Person
to whom interest in respect of such portion of such Global Note shall be
payable in accordance with the provisions of this Indenture; and

 

(C)                                if for any reason
Definitive Notes are not issued, authenticated and delivered to the Holders in
accordance with paragraph (A) of this Section 2.01(c), then:

 

(1)                                  the
Clearing System or its successors may provide to each of its
accountholders a statement of such accountholder’s interest in the Notes
evidenced by each Global Note held by such Clearing System or its successors,
together with a copy of such Global Note; and

 

19

 

(2)                                  subject
to the limitations on individual Holder action contained in the Notes or this
Indenture, each such accountholder or its successors and assigns (x) shall have
a claim, directly against the Trust, for the payment of any amount due or to
become due in respect of such accountholder’s interest in the Notes evidenced
by such Global Note, and shall be empowered to bring any claim, to the extent
of such accountholder’s interest in the Notes evidenced by such Global Note and
to the exclusion of such Clearing System or its successors, that as a matter of
law could be brought by the Holder of such Global Note and the Person in whose
name the Notes are registered and (y) may, without the consent and to the
exclusion of such Clearing System or its successors, file any claim, take any
action or institute any proceeding, directly against the Trust, to compel the
payment of such amount or enforce any such rights, as fully as though the
interest of such accountholder in the Notes evidenced by such Global Note were
evidenced by a Definitive Note in such accountholder’s actual possession and as
if an amount of Notes equal to such accountholder’s stated interest were
registered in such accountholder’s name and without the need to produce such
Global Note in its original form.

 

Notwithstanding anything in this paragraph (C) to
the contrary, the Indenture Trustee shall not be required to recognize any
account holder or any of its successors and assigns referred to in said paragraph
as a Holder for any purpose of this Indenture or the Notes and shall be
entitled to treat the Person in whose name the Global Note is registered as a
Holder for all purposes of this Indenture and the Notes until Definitive Notes
are issued to and registered in the names of such accountholders or their
successors and assigns.

 

The account records of any Clearing System or its successor shall, in
the absence of manifest error, be conclusive evidence of the identity of each
accountholder that has any interest in the Notes evidenced by the Global Note
held by such Clearing System or its successor and the amount of such interest.
Definitive Notes shall be issued only in denominations as specified in the
relevant Pricing Supplement.

 

(d)                                 Subject to the other provisions
of this Indenture, if any Global Note is exchanged for Definitive Notes, then:

 

(i)                                     the Trust, the
Indenture Trustee and any Paying Agent will have the right to treat each Holder
of Definitive Notes as the Person exclusively entitled to receive interest and
other payments or property in respect of or in exchange for the Notes, and
otherwise to exercise all the rights and powers with respect to any Note
(subject to the record date provisions hereof and of the Notes); and

 

20

 

(ii)                                  the obligation of the
Trust to make payments of principal, premium, if any, interest and other
amounts with respect to the relevant Notes shall be discharged at the time
payment in the appropriate amount is made in accordance with this Indenture to
each Holder.

 

SECTION 2.02. No Limitation on Aggregate Principal Amount of Notes. The
aggregate principal amount of Notes which may be authenticated and
delivered under this Indenture is unlimited. Unless otherwise specified in the applicable
Pricing Supplement, Notes shall be issued in denominations of $1,000 and any
larger amount that is a multiple of $1,000; the authorized denominations of
Notes that have a Specified Currency other than U.S. Dollars will be the
approximate equivalent in such Specified Currency. The specific terms and
conditions of each Series of Notes shall be set out in a Pricing
Supplement and, if applicable, a supplemental indenture entered into pursuant
to Section 8.01(h) of this Indenture.

 

SECTION 2.03. Listing. If specified in the Pricing Supplement, the Notes
will be listed on the securities exchange set forth in such Pricing Supplement.

 

SECTION 2.04. Redemption.

 

(a)                                  Except as otherwise
provided in the Pricing Supplement or a supplemental indenture and the Notes or
in Section 6.02, the Trust will redeem the Notes only if Protective
Life redeems the Funding Agreement securing such Notes in an amount equal to
the amount of the related Notes to be redeemed whether in accordance with the
terms of this Indenture or the Pricing Supplement, and the Trust will not
redeem the Notes if Protective Life does not redeem the Funding Agreement(s)
securing such Notes in an amount equal to the amount of the Notes to be
redeemed in accordance herewith. Unless otherwise specified in the relevant
Pricing Supplement or a supplemental indenture and the Notes, the Trust may not
redeem the Notes after the date that is thirty (30) days prior to the Stated
Maturity Date of the Notes.

 

(b)                                 If, but only if,
specified in the Pricing Supplement or a supplemental indenture and the Notes,
such Notes will be repayable at the option of the Holders thereof in accordance
with the repayment provisions included in the Pricing Supplement or
supplemental indenture and the Notes.

 

(c)                                  In connection with
the redemption by the Trust of the Notes under Section 2.04(a) hereunder,
the Trust will give written notice to the Holders in accordance with Section 1.06
hereunder not less than thirty (30) days and no more than seventy-five (75)
days prior to the date set for such redemption. All notices of redemption shall
state:

 

(i)                                     the redemption
date;

 

(ii)                                  the Redemption Price
or, if not then ascertainable, the manner of calculation thereof;

 

(iii)                               that on the redemption
date the Redemption Price will become due and payable on the Notes to be
redeemed and that interest thereon will cease to accrue on and after said date;
and

 

21

 

(iv)                              the place or places where
the Notes to be redeemed are to be surrendered for payment of the Redemption
Price.

 

(d)                                 Prior to any
redemption date, the Trust shall deposit with the Paying Agent an amount of
money sufficient to pay the Redemption Price of and (except if the redemption
date shall be an Interest Payment Date) accrued and unpaid interest on, all
Notes which are to be redeemed on that date.

 

(e)                                  Upon notice of
redemption having been given pursuant to Section 2.04(c) hereunder,
the Notes to be so redeemed shall, on the redemption date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Trust shall default in the payment of the Redemption Price and
accrued interest, if any) such Notes shall cease to bear or accrue any interest.
Upon surrender of the Notes for redemption in accordance with said notice, such
Notes shall be paid by the Trust at the Redemption Price, together with any
accrued but unpaid interest to, but not including the redemption date provided that, installments of interest
whose Stated Maturity Date is on or prior to the redemption date will be
payable to the Holders of such Notes, or one or more predecessor Notes,
registered as such at the close of business on the relevant Record Date
according to their terms and the provisions of Section 2.09.

 

(f)                                    The election of the
Trust to redeem any Notes shall be evidenced by a Trust Certificate. In case of
any redemption at the election of the Trust, the Trust shall, at least
forty-five (45) days prior to the redemption date fixed by the Trust (unless a
shorter notice shall be satisfactory to the Indenture Trustee), notify the
Indenture Trustee of such redemption date, and of the principal amount of Notes
to be redeemed. In the case of any redemption of Notes (a) prior to the
expiration of any restriction on such redemption provided in the terms of such
Notes or elsewhere in this Indenture, or (b) pursuant to an election of
the Trust which is subject to a condition specified in the terms of such Notes
or elsewhere in this Indenture, the Trust shall furnish the Indenture Trustee
with a Trust Certificate evidencing compliance with such restriction or
condition.

 

(g)                                 If less than all of
the Notes are to be redeemed (unless such redemption affects only a single
Note), the particular Notes to be redeemed shall be selected not more than
seventy-five (75) days prior to the redemption date by the Indenture Trustee,
from the Outstanding Notes not previously called for redemption, by lot or, if
the particular Notes to be redeemed are not issued in book-entry form, in its
discretion, on a pro rata basis, in accordance with the customary procedures of
the Indenture Trustee; provided
that the unredeemed portion of the principal amount of any Note shall be in an
authorized denomination (which shall not be less than the minimum authorized denomination)
for such Note.

 

The Indenture Trustee shall promptly notify
the Trust in writing of the Notes selected for redemption as aforesaid and, in
the case of any Notes selected for partial redemption as aforesaid, the
principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless
the context otherwise requires, all provisions relating to the redemption of
Notes shall relate, in the case of any Notes redeemed or

 

22

 

to be redeemed only in part, to the portion of the principal amount of
such Notes which has been or is to be redeemed.

 

(h)                                 Any Note which is to
be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Trust or the Indenture Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory
to the Trust and the Indenture Trustee duly executed by, the Holder thereof or
his attorney duly authorized in writing), and the Trust shall execute, and the
Indenture Trustee shall authenticate and deliver to the Holder of such Note
without service charge, a new Note or Notes, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Note so
surrendered.

 

SECTION 2.05. Execution, Authentication and Delivery Generally.

 

(a)                                  Upon the execution of
any Distribution Agreement or Selling Agent Agreement (if the Dealers agree to
purchase the Notes on a principal basis), the acceptance of an offer to
purchase Notes solicited by a Dealer on an agency basis, or the acceptance of a
direct offer of Notes for sale by the Trust, the Trust shall, as soon as
practicable but in any event (unless otherwise agreed by the parties), not later
than 1:00 p.m. (New York time) on the second Banking Day prior to the
proposed Issuance Date:

 

(i)                                     confirm by fax to
the Indenture Trustee, the Paying Agent and the Registrar, all such information
as the Indenture Trustee, the Paying Agent or the Registrar may reasonably
require to carry out their respective functions under this Indenture,
including, in particular, the settlement and payment procedures that will apply
to the Notes and, if applicable, the account of the Trust to which payment
should be made;

 

(ii)                                  deliver a copy, of
the Pricing Supplement or duly executed supplemental indenture to the Indenture
Trustee, the Paying Agent and the Registrar; and

 

(iii)                               unless a Global Note is
to be used and the Trust shall have provided such document to the Registrar,
ensure that there is delivered to the Registrar a stock of Definitive Notes (in
unauthenticated form and with the names of the registered Holders left
blank but executed on behalf of the Trust and otherwise complete) in relation
to the Notes.

 

(b)                                 The Trust will deliver
to the Indenture Trustee on the Issuance Date for the Series of Notes a
duly executed original of the Funding Agreement and Trust Agreement (unless
previously delivered) and all documentation relating to the foregoing for the
Notes.

 

(c)                                  The Registrar shall,
having been advised in accordance with Section 2.05(a) on
behalf of the Trust, on which securities exchange, if any, the Notes are to be
listed, deliver a copy of the Pricing Supplement or supplemental indenture in
relation to the Notes to such exchange or the relevant listing agent for such
exchange as soon as practicable but in any event no later than two (2) Specified
Business Days prior to the proposed Issuance Date therefor.

 

23

 

(d)                                 Having received from
the Trust the documents referred to in Section 2.05(a) and (b) (to
the extent applicable) (such documents constituting for all purposes of this
Indenture a Trust Order for the authentication and delivery of the Notes), on
or before 10:00 a.m. (New York time) on the Issuance Date in relation to
the Series of Notes (unless otherwise agreed by the parties), the
Indenture Trustee shall authenticate and deliver the relevant Global Note to
the relevant custodian for DTC and/or any other relevant Clearing System or
otherwise in accordance with such Clearing System’s procedures. The Registrar
shall give instructions to DTC and/or any other relevant Clearing System to
credit Notes represented by a Global Note registered in the name of a nominee
for such Clearing System, to the Registrar’s distribution account and to hold
each such Note to the order of the Trust pending delivery to the Relevant
Purchasing Agent(s) on a delivery against payment basis (or on such other basis
as shall have been agreed between the Trust and the Relevant Purchasing
Agent(s) and notified to the Registrar) in accordance with the normal
procedures of DTC or such other Clearing System, as the case may be and,
following payment (unless otherwise agreed), to debit the Notes represented by
such Global Note to such securities account(s) as shall have been notified in
writing to the Registrar by the Trust. The Indenture Trustee shall on the
Issuance Date in respect of the Notes, and upon receipt of funds from the
Relevant Purchasing Agent(s), transfer, or cause to be transferred, the
proceeds of issue (net of any applicable commissions, fees or like amounts
specified in writing by Protective Life) to or as directed by Protective Life
on behalf of the Trust to satisfy the deposit requirement pursuant to the
Funding Agreement (as specified by Protective Life in such direction).

 

If no such securities account(s) shall have
been specified, or the Series of Notes not intended to be cleared through
any Clearing System, the Registrar shall authenticate and make available at its
specified office on the Issuance Date in respect of the Series of Notes
the relevant Global Note or the relevant Definitive Notes, as the case may be,
duly executed and made available to the Registrar by the Trust.

 

(e)                                  If the Indenture
Trustee should pay an amount (an “advance”) to the Trust in the belief
that a payment has been or will be received from a purchasing agent or selling
agent, and if such payment is not received by the Indenture Trustee on the date
that the Indenture Trustee pays the Trust, the Trust shall forthwith repay the
advance (unless prior to such repayment the payment is received from such
purchasing agent or selling agent) and shall pay interest on such amount which
shall accrue (after as well as before judgment) on the basis of a year of 360
days (365 days (366 days in the case of a leap year) in the case of an advance
paid in Sterling) and the actual number of days elapsed from the date of
payment of such advance until the earlier of (i) repayment of the advance
or (ii) receipt by the Indenture Trustee of the payment from such
purchasing agent or selling agent, and at the rate per annum which is the
aggregate of one per cent per annum and the rate determined and certified by
the Indenture Trustee and expressed as a rate per annum as reflecting its cost
of funds for the time being in relation to the unpaid amount.

 

(f)                                    The Notes shall be
executed on behalf of the Trust by a Responsible Officer of Wilmington. The
signature of any of these officers on the Notes may be manual or
facsimile.

 

24

 

Notes bearing the manual or facsimile
signatures of individuals who were at any time Responsible Officers of
Wilmington shall bind the Trust, notwithstanding that any such individuals have
ceased to hold such offices prior to the authentication and delivery of such
Notes or did not hold such offices at the date of such Notes.

 

Each Note shall be dated the date of its
authentication.

 

No Note shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose unless there
appears on such Note a certificate of authentication substantially in the form provided
for herein executed by the Indenture Trustee by manual signature of an
authorized officer, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

 

The Indenture Trustee’s certificate of
authentication shall be in substantially the following form:

 

This is one of the Notes of Protective Life
Secured Trust [ ] referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  As Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  

 

Notes bearing the manual signatures of
individuals who were at any time authorized officers of the Indenture Trustee
shall bind the Trust, notwithstanding that any such individuals have ceased to
hold such offices prior to the delivery of such Notes or did not hold such
offices at the date of such Notes.

 

In authenticating Notes hereunder, the
Indenture Trustee shall be entitled to conclusively assume that any Note
authenticated by it has been duly executed on behalf of, and is a legal, valid,
binding and enforceable obligation of, the Trust and is entitled to the
benefits of this Indenture, and that the Trust Agreement and the Funding
Agreement have been duly executed by, and are the legal, valid, binding and
enforceable obligations of, the parties thereto.

 

(g)                                 The Trust undertakes
to notify the Paying Agent, the Registrar and, if different, the Indenture
Trustee, in writing, of any changes in the identity of the purchasing agents
and selling agents appointed generally in respect of the Program.

 

SECTION 2.06. Registration. All Notes shall be registered and may be
represented either as Global Notes or Definitive Notes. Unless otherwise
specified in the relevant Pricing Supplement, Global Notes will be registered
in the name of a nominee for, and deposited with, a custodian for DTC. The
Registrar shall maintain a register (herein sometimes referred to as the “Register”) in which, subject to such reasonable regulations as it may prescribe,
the Registrar

 

25

 

shall provide for the registration of the Notes and registration of
transfer of the Notes. The Register shall be in written form in English or
in any other form capable of being converted into such form within a
reasonable time. The Indenture Trustee is hereby initially appointed as the
Registrar. In the event that the Indenture Trustee shall not be the Registrar,
it shall have the right to examine the Register at all reasonable times. The
Trust, the Indenture Trustee, Registrar, Paying Agent or any other Agent or
Protective Life may become the owner or pledgee of Notes and may deal
with such Notes with the same rights of any other Holder of such Notes.

 

SECTION 2.07. Transfer.

 

(a)                                  Subject to Section 2.01(c) and
(d), (A) upon surrender for registration of transfer of any Note in
accordance with its terms, Wilmington, on behalf of the Trust shall execute,
and the Indenture Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes denominated as
authorized in or pursuant to this Indenture, of a like aggregate principal
amount bearing a number not contemporaneously outstanding and containing identical
terms and provisions and (B) at the option of the Holder, Notes may be
exchanged, in accordance with their terms, for other Notes containing identical
terms and provisions, in any authorized denominations, and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Office or
Agency of the Indenture Trustee. Whenever any Notes are surrendered for
exchange as contemplated by this Section 2.07(a), the Trust shall
execute, and the Indenture Trustee shall authenticate and deliver, the Notes
which the Holder making the exchange is entitled to receive. Beneficial
interests in Global Notes may be transferred or exchanged only through the
Depositary. No Global Note may be transferred except as a whole by a
nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or another nominee of the Depositary to a
successor of the Depositary or a nominee of a successor to the Depositary. With
respect to any Global Note, the Depositary or its nominee is the Holder of such
Global Note for the purposes of this Indenture. Except as set forth in Section 2.01(c),
the beneficial owners of any Global Note will not be entitled to receive
Definitive Notes and shall not be considered “Holders” under this Indenture.

 

(b)                                 All Notes issued upon
a registration of transfer or exchange of Notes shall be the valid obligations
of the Trust evidencing the same debt and entitling the Holders thereof to the
same benefits under this Indenture as the Notes surrendered upon such
registration of transfer or exchange.

 

(c)                                  No service charge
shall be made for any registration of transfer or exchange, of Notes, but the
Indenture Trustee  may require
payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes.

 

SECTION 2.08. Mutilated, Destroyed, Lost and Stolen Notes.

 

(a)                                  If (i) any
mutilated Note is surrendered to the Indenture Trustee directly or through any
Paying Agent or (ii) in the case of an alleged destroyed, lost or stolen
Note, the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of the Note and there is delivered to the Indenture
Trustee, the Registrar and the Trust such security or indemnity as may be
required by the Indenture Trustee, the Registrar and the Trust to save the

 

26

 

Indenture Trustee, the Registrar and the Trust harmless, then in either
case the Trust shall execute and the Indenture Trustee shall authenticate and
deliver, in exchange for or in lieu of such mutilated, destroyed, lost or
stolen Note, a new Note, of the same maturity, tenor and principal amount as
such mutilated, destroyed, lost or stolen Note, bearing a number not
contemporaneously outstanding; provided,
however, that if any such mutilated, destroyed, lost or stolen Note
shall have become or shall be about to become due and payable, instead of
issuing a new Note, the Trust may pay such Note without surrender of such
Note, except that any mutilated Note shall be surrendered.

 

(b)                                 Upon the issuance of
any new Note, under this Section 2.08, the Indenture Trustee or the
Trust may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any
other reasonable expenses (including the fees and expenses of the Indenture
Trustee, Registrar or any Paying Agent) connected therewith.

 

(c)                                  Every new Note issued
pursuant to this Section 2.08 in lieu of any destroyed, lost or
stolen Note shall constitute a separate obligation of the Trust, whether or not
the destroyed, lost or stolen Note shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder. The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

 

SECTION 2.09. Payment of Interest; Rights To Interest Preserved.

 

(a)                                  The Notes shall bear
interest at a rate and on terms stated on the Notes.

 

(b)                                 Any interest on any
Note which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date, shall be paid to the Person in whose name that Note is
registered at the close of business on the Regular Record Date for such
interest payment.

 

(c)                                  Any interest on any
Note which is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of their having been such
Holder, and such Defaulted Interest shall be paid by the Trust to the Persons
in whose names such Notes (or their respective predecessor Notes) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The
Trust shall notify the Indenture Trustee within fifteen (15) days of the date
interest became due and payable in writing of the amount of Defaulted Interest
to be paid on each Note, which shall be equal to the amount of Defaulted
Interest due on such Note and not any lesser amount, and the date of such
payment (such date to be no more than forty-five (45) days following the date
interest became due and payable). Thereupon the Indenture Trustee shall fix a
record date for the payment of such Defaulted Interest which shall be not more
than fifteen (15) days and not less than ten (10) days prior to the date
of such payment and not less than ten (10) days after the receipt by the
Indenture Trustee of the notice of  such
payment (the “Special Record Date”). The Indenture
Trustee shall promptly notify the Trust of such Special Record Date and, in the
name of the Trust shall cause notice of

 

27

 

the payment of such Defaulted Interest and the Special Record Date therefor
to be given to each Holder in accordance with Section 1.06. The
Trust may make payment of any Defaulted Interest on the Notes in any other
lawful manner not inconsistent with the requirements of any securities
exchange, if any, on which such Notes may be listed, and upon such notice
as may be required by such exchange, if, after notice given by the Trust
to the Indenture Trustee of the payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Indenture Trustee. Subject to the
foregoing provisions of this Section, each Note delivered under this Indenture
upon registration of transfer of or in exchange for or in lieu of any other
Note shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Note.

 

SECTION 2.10. Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled by it. Protective Life may at any time deliver to the
Indenture Trustee for cancellation any Note previously authenticated and
delivered hereunder that Protective Life, may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange
for any Notes cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Notes held by the Indenture Trustee
shall be disposed of by the Indenture Trustee in accordance with its customary
procedures, unless the Trust shall otherwise direct by a Trust Order.

 

SECTION 2.11. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Trust, the Indenture Trustee, the
Registrar, the Paying Agent, any Agent, and any other agent of the Trust, or
the Indenture Trustee may treat the Person in whose name any Note is
registered as the absolute and sole owner of such Note for the purpose of receiving
payment of the principal of, any premium, or interest on or any Additional
Amounts with respect to such Note and for all other purposes whatsoever,
whether or not such Note shall be overdue, and, except as otherwise required by
applicable law, none of the Trust, the Indenture Trustee, the Registrar, the
Paying Agent, any Agent, or any other agent of the Trust or the Indenture
Trustee shall be affected by notice to the contrary.

 

SECTION 2.12. Tax Treatment; Tax Returns and Reports.

 

(a)                                  The Trust and the
Trust Beneficial Owner agree, and by acceptance of a beneficial interest in a
Note each holder of a beneficial interest in a Note agrees, for U.S. federal,
state and local income and franchise tax purposes, to treat (i) the Trust
as a separate grantor trust, (ii) such Note as an ownership interest in
such grantor trust and (iii) the Funding Agreement as debt of Protective
Life.

 

(b)                                 Wilmington shall, or,
so long as there is an Administrator, the Administrator shall, pursuant to the
Administrative Services Agreement, prepare and file or cause to be prepared or
filed, consistent with the treatment of the Trust as a grantor trust, all
federal, state and local income tax and information returns and reports
required to be filed with respect to the Trust, and the Notes under any
applicable federal, state or local tax statute or any rule or regulation
under any of them. At the request of the Administrator, Wilmington shall sign
and, in accordance with instructions provided by the Administrator, file any
federal, state or local

 

28

 

income tax and information returns and reports prepared by, or at the
direction of, the Administrator pursuant to this Section 2.12(b). Wilmington
shall keep copies or cause copies to be kept of any such tax and information
returns (including Internal Revenue Service (“IRS”) Form 1041) and reports
prepared and filed and provided to it by the Administrator.

 

SECTION 2.13. No Partners. Nothing set forth in this Indenture shall be
construed to constitute the Holders of Notes, from time to time, as partners or
members of an association.

 

ARTICLE 3

COVENANTS, REPRESENTATIONS AND WARRANTIES

 

SECTION 3.01. Payment of Principal and any Premium, Interest and Additional Amounts. The
Trust covenants and agrees, for the benefit of the Holders of Notes, that it
will:

 

(a)                                  Pay or cause to be
paid to the Paying Agent on or before the date on which any payment becomes
due, an amount equal to the amount of principal (and premium, if any) and
interest and any additional amount payable in respect of the Notes then
becoming due in respect of such Notes.

 

(b)                                 Pay each amount
payable to the Paying Agent under Section 3.01(a) by transfer
of immediately available funds denominated in the Specified Currency not later
than 10:00 a.m. (at the Place of Payment) on the date when such amounts
are due and payable in respect of the Notes.

 

(c)                                  Confirm, before 10:00 a.m.
(at the Place of Payment) on the second Business Day before the due date of
each payment by it under Section 3.01(a) to the Paying Agent
by confirmed facsimile, that irrevocable instructions have been given by it,
for the transfer of the relevant funds to the Paying Agent and the name and the
account of the bank through which such payment is being made.

 

An installment of principal, premium, if any, or interest and any other
amount payable in respect of the Notes shall be considered paid on the date it
is due if the Trust has deposited, or caused to be deposited, with the Paying
Agent by such date money designated for, and capable of being applied towards,
and sufficient to pay the installment.

 

SECTION 3.02. Collection Account. The Indenture Trustee shall, on or prior
to each Issuance Date, establish an account with the Indenture Trustee or such
other depository institution that is rated at least AA- or Aa3 by a nationally
recognized statistical rating organization as may be designated by
Wilmington or the Administrator, in the name of the Notes, which account shall
be segregated from other accounts held by the Indenture Trustee or such other
depositary institution.

 

SECTION 3.03. Agreements of the Paying Agent. The Paying Agent agrees
that:

 

(a)                                  The Paying Agent
shall be entitled to deal with each amount paid to it hereunder in the same
manner as other amounts paid to it as a banker by its customers provided that:

 

29

 

(i)                                     the Paying Agent
shall not, against the Trust or any Holder of a Note, exercise any lien, right
of set-off or similar claim in respect thereof (except as otherwise provided or
permitted under this Indenture);

 

(ii)                                  the Paying Agent
shall not be liable to any person for interest thereon;

 

(iii)                               the Paying Agent need
not segregate any money held by it except as required by law or as otherwise
provided under this Indenture; and

 

(iv)                              the Paying Agent shall
comply with the provisions of Sections 317(b) of the Trust Indenture Act
and agrees that it will, during the continuance of any default by the Trust (or
any other obligor upon the Notes) in the making of any payment in respect of
the Notes, upon the written request of the Indenture Trustee, forthwith pay to
the Indenture Trustee all sums held in trust by such Paying Agent for payment
in respect of the Notes.

 

(b)                                 The Paying Agent shall
pay or cause to be paid by transfer of immediately available funds denominated
in the Specified Currency to the Holders all moneys received by the Paying
Agent for such purpose from the Trust pursuant to Section 3.01. In
the event a Note is issued between a Regular Record Date or Special Record Date
and the related Interest Payment Date, interest for the period beginning on the
original issue date for such Note or the previous Interest Payment Date, as the
case may be, and ending on the subject Interest Payment Date will be paid
on the immediately following Interest Payment Date to the Person who was the
registered Holder of such Note as of the immediately preceding Regular Record
Date. With respect to Global Notes, the Paying Agent shall pay principal,
premium, if any, interest and any other amounts due on such Global Notes in
accordance with the arrangements established by and between the Indenture
Trustee and the Depositary. Notwithstanding anything herein to the contrary,
payments of principal in respect of Definitive Notes shall be made as provided
in or pursuant to this Indenture against presentation and surrender of the
relevant Definitive Notes at the designated office of the Registrar in The City
of New York, as provided herein or in the applicable Definitive Note. Notwithstanding
anything herein to the contrary, interest on Definitive Notes shall be paid to
the person shown in the applicable Register at the close of business on the
Regular Record Date or Special Record Date, as applicable, as provided in or
pursuant to this Indenture before the due date for payment thereof. Notwithstanding
anything herein to the contrary, payments of interest on each Definitive Note
shall be made in the currency in which such payments are due by check drawn on
a bank in the Principal Financial Center of the country of the Specified
Currency and mailed to the holder (or to the first named of joint holders) of
such Definitive Note at its address appearing in the  applicable Register. Upon application by a
Holder of at least $250,000 in aggregate principal amount of Notes (or its
equivalent in the Specified Currency other than U.S. Dollars) to the specified
office of the Paying Agent at least five (5) Business Days before the
Regular Record Date or Special Record Date, as applicable, such payment of
interest may be made by transfer to an account in the Specified Currency
maintained by the payee with a bank in the Principal Financial Center or, in
the case of Definitive Notes denominated in euro, in a city in which banks have
access to the TARGET System. All  moneys
paid to the Paying Agent by the Trust in respect of any Note shall be held by
the Paying Agent from the moment when such moneys are received until the

 

30

 

time of actual payment thereof, for the persons entitled thereto, and
shall be applied in accordance with Section 3.03 (c) through (h);
provided, that the obligation of the Paying Agent to hold such moneys shall be
subject to the provisions of Section 3.08.

 

(c)                                  The Paying Agent
acting through its specified office shall make payments of interest and
Additional Amounts (if applicable) or, as the case may be, principal in
respect of the Notes in accordance with the 
terms thereof and of this Indenture, provided that such Paying Agent
shall not be obliged (but shall be entitled) to make such payments if it is not
able to establish that it has received (whether or not at the due time) the
full amount of the relevant payment due to it under Section 3.01(a).
Payment of any Note redemption amount (together with accrued interest) due in
respect of Notes will be made against presentation and surrender of the
relevant Notes at the specified office of the Paying Agent, subject to Section 2.04(h).
Payment of amounts (whether principal, interest or otherwise) due in respect of
Notes will be paid by the Paying Agent to the Holder thereof (or, in the case
of joint Holders, the first named) which shall be the person appearing as
Holder in the register kept by the Registrar as at the close of business (local
time in the place of the specified office of the Registrar) on the Regular
Record Date.

 

(d)                                 The Paying Agent shall
not exercise any lien, right of set-off or similar claim against any person to
whom it makes any payment under paragraph (c) in respect thereof, nor
shall any commission or expense be charged by it to any such person in respect
thereof.

 

(e)                                  If a Paying Agent
makes any payment in accordance with paragraph (c), it shall be entitled to
appropriate for its own account out of the funds received by it under Section 
3.01(a) an amount equal to the amount so paid by it.

 

(f)                                    If a Paying Agent
makes a payment in respect of Notes at a time at which it has not received the
full amount of the relevant payment due to it under Section 3.01(a) and
is not able to reimburse itself out of funds received by it under Section 3.01(a) therefor
by appropriation under paragraph (e) the Trust shall from time to time on
demand pay to the Paying Agent for its own account:

 

(i)                                     the amount so paid
out by such Paying Agent and not so reimbursed to it; and

 

(ii)                                  interest on such
amount from the date on which such Paying Agent made such payment until the
date of reimbursement of such amount;

 

provided
that any payment made under paragraph (i) above shall satisfy pro tanto the Trust’s obligations under Section 3.01(a).

 

(g)                                 Interest shall accrue
for the purpose of paragraph (2) of paragraph (f) (as well after as
before judgment) on the basis of a year of 360 days (365 days (366 days in the
case of a leap year) in the case of an amount in Sterling) and the actual
number of days elapsed and at the rate per annum which is the aggregate of one
percent per annum and the rate per annum specified by the Paying Agent as
reflecting its cost of funds for the time being in relation to the unpaid
amount.

 

31

 

(h)                                 If at any time and for
any reason a Paying Agent makes a partial payment in respect of any Note
surrendered for payment to it, such Paying Agent shall endorse thereon and in the
register a statement indicating the amount and date of such payment.

 

SECTION 3.04. Maintenance of Office or Agency.

 

(a)                                  The Trust will
maintain in the Place of Payment an Office or Agency where Notes may be
presented or surrendered for payment, where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Trust in respect of the Notes and this Indenture may be served; provided, however, that if the Notes are
listed on any stock exchange and the rules of such stock exchange shall so
require, the Trust shall maintain an Office or Agency in any other required
city so long as the Notes are listed on such exchange. The Trust will give
prompt written notice to the Indenture Trustee of the location, and any change
in the location, of such Office or Agency. If at any time the Trust shall fail
to maintain any such required Office or Agency or shall fail to furnish the
Indenture Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of
the Indenture Trustee and the Trust hereby appoints the Indenture Trustee as
its agent to receive such respective presentations, surrenders, notices and
demands. The Trust shall promptly notify the Indenture Trustee of the name and
address of each Paying Agent appointed by it and will notify the Indenture
Trustee of the resignation or termination of any Paying Agent.

 

(b)                                 The Trust may also
from time to time designate one or more other Offices or Agencies where the
Notes may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner
relieve the Trust of its obligation to maintain the Offices or Agencies for
Notes in the Place of Payment for the foregoing purposes. The Trust shall give
prompt written notice to the Indenture Trustee of any such designation or
rescission and of any change in the location of any such Office or Agency.

 

(c)                                  Unless otherwise
provided in or pursuant to this Indenture, the Trust hereby appoints the
Indenture Trustee as Paying Agent, Registrar and Transfer Agent.

 

SECTION 3.05. Duties of the Agents.

 

(a)                                  The Trust shall
provide to the Paying Agent sufficient copies of all documents required to be
available for inspection as provided in the Registration Statement or the
Pricing Supplement in respect of the Notes.

 

(b)                                 To the extent
permitted by applicable law, the Paying Agent shall make available for inspection
during normal business hours at its specified office such documents as may be
specified as so available at the specified office of the Paying Agent in
respect of the Notes, or as may be required by any stock exchange on which
the Notes may be listed.

 

(c)                                  Notwithstanding
anything to the contrary, the Trust shall be solely responsible for ensuring
that each Note to be issued or other transactions to be effected hereunder
shall comply with all applicable laws and regulations of any governmental or other
regulatory authority in connection with any Note and that all necessary
consents and approvals

 

32

 

of, notifications to and registrations and filings with, any such
authority in connection therewith are effected, obtained and maintained in full
force and effect.

 

(d)                                 The Paying Agent shall
collect all forms from Holders or, in the case of Notes held in a Clearing
System, from the relevant Clearing System, that are required to exempt payments
under the Notes and/or the related Funding Agreements, from United States
federal income tax withholding. The Paying Agent shall (i) withhold from
each payment hereunder or under any Note any and all United States federal or
state withholding taxes applicable thereto as required by law and (ii) file
any information reports as it may be required to file under applicable
law.

 

(e)                                  Each Agent shall be
obligated to perform such duties and only such duties as are set out in
this Indenture and no implied duties or obligations shall be read into this
Indenture against such Agent.

 

(f)                                    Each Agent shall be
protected and shall incur no liability for or in respect of any action taken,
omitted or suffered in reliance upon any instruction, request or order from the
Trust or any notice, resolution, direction, consent, certificate, affidavit,
statement, facsimile, telex or other paper or document (duly signed or which it
believes in good faith to have been duly signed, where applicable) which it
believes in good faith to be genuine and to have been delivered, signed or sent
by the proper party or parties.

 

(g)                                 Each Agent and any of
its officers, directors, employees or controlling persons may become the
owner of, or acquire any interest in any Note, with the same rights that it or
he would have if it or he were not appointed under this Indenture, and may engage
or be interested in, any financial or other transaction with the Trust or
Protective Life, or may act as depositary, trustee or agent for any
committee or body of Holders, as freely as if it or he were not appointed under
this Indenture.

 

(h)                                 Each Agent may consult
with legal and other professional advisers and the opinion of the advisers
shall be full and complete protection in respect of action taken, omitted
or suffered under this Indenture in good faith and in accordance with the
opinion of the advisers.

 

(i)                                     Under no
circumstances will the Paying Agent or any other Agent be liable to the Trust,
or any other party to this Indenture for any consequential loss (being loss of
business, goodwill, opportunity or profit), punitive damages or indirect loss
even if advised of the possibility of such loss.

 

SECTION 3.06. Duties of the Transfer Agent. If and to the extent specified
in the terms and conditions of the Notes or if otherwise requested by the Trust
or Indenture Trustee, the Transfer Agent shall in compliance with the Notes and
this Indenture:

 

(a)                                  Receive requests from
Holders of Notes for the transfer of Definitive Notes, inform the
Registrar in writing of the receipt of such requests, forward the deposited
Definitive Note(s) to or to the order of the Registrar and assist in the
issuance of a new Definitive Note and in particular, without limitation, notify
the Registrar in writing of (i) the name and address of the Holder of the
Definitive Note, (ii) the serial number and principal amount of the
Definitive Note, (iii) in the case of a transfer of a portion of the Note
only, the principal amount

 

33

 

of the Definitive Note to be so transferred and (iv) the name and
address of the transferee to be entered on the Register;

 

(b)                                 Make available for
collection by each relevant Holder new Definitive Notes;

 

(c)                                  Accept surrender of
Definitive Notes and assist in effecting final payment of the Notes on the due
date for payment;

 

(d)                                 Keep the Registrar
informed of all transfers; and

 

(e)                                  Carry out such other
acts as may reasonably be necessary to give effect to the Notes and this
Indenture.

 

SECTION 3.07. Duties of the Registrar.

 

(a)                                  The Registrar shall
maintain a Register which shall show the aggregate principal amount and date of
issue of each Series of Notes, the names and addresses of the initial
Holders thereof and the dates of all transfers to, and the names and addresses
of, all subsequent Holders thereof.

 

(b)                                 The Registrar shall by
the issue of new Notes, the cancellation of old Notes and the making of entries
in the Register give effect to transfers of Notes in accordance with this
Indenture.

 

(c)                                  The Trust may from
time to time deliver to the Registrar Notes of which it is the Holder for
cancellation, whereupon the Registrar shall cancel the same and shall make the
corresponding entries in the Register.

 

(d)                                 As soon as reasonably
practicable but in any event within ninety (90) days after each date on which
Notes fall due for redemption, the Registrar shall notify the Trust of the
serial numbers of any Notes against surrender of which payment has been made
and of the serial numbers of any Notes (and the names and addresses of the Holders
thereof) which have not yet been surrendered for payment.

 

(e)                                  The Registrar shall,
upon and in accordance with the instructions of the Trust but not otherwise,
arrange for the delivery in accordance with this Indenture of any notice which
is to be given to the Holders of Notes and shall supply a copy thereof to the
Indenture Trustee and the Paying Agent.

 

(f)                                    The Trust shall
ensure that each Registrar has available to it supplies of such Notes as shall
be necessary in connection with the transfer of Notes and the exchange of
Global Notes for Definitive Notes.

 

(g)                                 The Registrar shall
make available, at the request of the Holder of any Note, forms of proxy in a form and
manner which comply with the provisions of this Indenture and shall perform and
comply with the provisions of this Indenture.

 

34

 

(h)                                 The Trust shall
provide to the Registrar:

 

(i)                                     specimen Notes in
definitive form; and

 

(ii)                                  sufficient copies of
all documents required to be available for inspection as provided in the
Registration Statement or the Pricing Supplement in respect of the Notes, as may be
required by any securities exchange on which the Notes may be listed, or
as may be required by applicable law.

 

(i)                                     The Registrar
shall make available for inspection during normal business hours at its
specified office such documents as may be specified as so available at the
specified office of such Registrar, as may be required by any securities
exchange on which the Notes may be listed, or as may be required by
applicable law.

 

(j)                                     The Registrar
shall provide the Paying Agent and/or Indenture Trustee with all such
information in the Registrar’s possession with respect to the Notes as the
Paying Agent or the Indenture Trustee, as the case may be, may reasonably
require in order to perform the obligations set out in this Indenture.

 

(k)                                  The Registrar shall
ensure that in no event shall Definitive Notes be exchanged for Global Notes.

 

SECTION 3.08. Unclaimed Monies. Any money deposited with the Indenture
Trustee, Registrar or the Paying Agent for the payment of the principal of,
premium, if any, or interest on any Note and remaining unclaimed for two years
after such principal or any such premium or interest had become due and payable
shall, unless otherwise required by mandatory provisions of applicable escheat
or abandoned or unclaimed property law, be paid to Protective Life pursuant to
a Trust Request and pursuant to the applicable Funding Agreement; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look
only to Protective Life for payment thereof, and all liability of the Indenture
Trustee, Registrar or the Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that
the Indenture Trustee, Registrar or the Paying Agent, before being required to
make any such repayment, may cause to be published once, in an Authorized
Newspaper in each Place of Payment or to be mailed to Holders, or both, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than thirty (30) days from the date of such publication
or mailing, any unclaimed balance of such money then remaining will be repaid
to Protective Life.

 

SECTION 3.09. Protection of Collateral.

 

(a)                                  The Trust shall, from
time to time, execute and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of
further assurance, and other instruments, and take such other action as may be
necessary or advisable to:

 

(i)                                     create, perfect or
maintain a perfected security interest in, grant, or make or maintain a valid
and effective assignment for collateral purposes

 

35

 

of, all or any portion of the Collateral
(including without limitation the Funding Agreement included therein);

 

(ii)                                  maintain or preserve
any Lien of this Indenture or the Funding Agreement or carry out more
effectively the purposes hereof or thereof;

 

(iii)                               perfect, publish notice
of, or protect the validity of, any security interest or assignment for
collateral purposes made pursuant to this Indenture or the Funding Agreement;

 

(iv)                              enforce any portion, or
obtain the full benefits, of the Collateral (including without limitation the
Funding Agreement included therein); and

 

(v)                                 preserve and defend
title to the Collateral and the rights of the Indenture Trustee and of the
Holders in the Collateral held for the benefit and security of the Holders or
other instrument against the claims of all Persons.

 

The Trust hereby designates the Indenture
Trustee its agent and attorney-in-fact to execute any financing statement,
continuation statement or other instrument required or permitted pursuant to
this Section 3.09; provided,
however, that such designation shall not be deemed to create a duty
in the Indenture Trustee to monitor the compliance of the Trust with the
foregoing covenants; provided further,
however, that the duty of the Indenture Trustee to execute any
instrument required pursuant to this Section 3.09 shall arise only
if any Responsible Officer of the Indenture Trustee has actual knowledge of any
failure of the Trust to comply with the provisions of this Section 3.09.

 

(b)                                 The Trust will pay or
cause to be paid all taxes and fees incidental to such filing, registration and
recording, and all expenses incidental to the preparation, execution and
acknowledgment of any instrument of further assurance, and all Federal or state
or jurisdiction of organization of the Trust stamp taxes or other similar
taxes, duties and charges arising out of or in connection with the execution
and delivery of such instruments; provided,
however, that the Trust shall not be required to pay or discharge or
cause to be paid or discharged any Lien affecting the Collateral to the extent
such Lien is being contested in good faith by appropriate proceedings. The
Trust will at all times preserve, warrant and defend the Indenture Trustee’s
title and right in and to the property included in the Collateral against the claims
of all Persons.

 

(c)                                  The Trust will
faithfully observe and perform, or cause to be observed and performed, all its
covenants, agreements, conditions and requirements contained in the Funding
Agreement in accordance with the terms thereof and will maintain the validity
and effectiveness of the Funding Agreement and the security interest therein or
the assignment for collateral purposes thereof to the Indenture Trustee. The
Trust will take no action, nor permit any action to be taken, which will release
any party to the Funding Agreement from any of its obligations or liabilities
thereunder, or will result in the termination, modification or amendment, or
will impair the validity, of the Funding Agreement except as expressly provided
for herein and therein. The Trust will give the Indenture Trustee written
notice of any default by any party to the Funding Agreement promptly after it
becomes known to the Trust.

 

36

 

(d)                                 At the written request
of the Indenture Trustee and also following the occurrence of an “Event of
Default” under the Funding Agreement, the Trust will, subject to the written
direction and control of the Indenture Trustee, take such action, or at the
Indenture Trustee’s written request furnish funds sufficient to enable the
Indenture Trustee to take such action, as the Indenture Trustee may deem
necessary or advisable for enforcing payment when due, subject to applicable
notice and grace periods, under or pursuant to this Indenture or the Funding
Agreement.

 

SECTION 3.10. Opinions as to Collateral; Annual Statement as to Compliance.

 

(a)                                  On or before the
seventh day of November of each calendar year, commencing November 7,
2003, Protective Life or the Trust shall furnish or cause to be furnished to
the Indenture Trustee an Opinion of Counsel stating that, in the opinion of
such counsel, either (i) such action has been taken with respect to the
recording, filing, re-recording and re-filing of this Indenture, any indentures
supplemental hereto and any other requisite documents and with respect to the
execution and filing of any financing statements and continuation statements as
is necessary to perfect and/or maintain the perfection of liens, security
interests and assignments for collateral purposes created or effected pursuant
to this Indenture with respect to each Funding Agreement that is part of
any Collateral and reciting the details of such action or (ii) in the
opinion of such counsel no such action is necessary to perfect and/or maintain
the perfection of such lien, security interest and assignment for collateral
purposes.

 

(b)                                 On or before the
seventh day of November in each calendar year, commencing November 7,
2003, the Trust shall deliver to the Indenture Trustee a Trust Certificate
stating, as to each signer thereof, that in the course of the performance by
each signer of such Trust Certificate of his or her present duties as a
Responsible Officer of Wilmington, such signer would normally obtain knowledge
or have made due inquiry as to the existence of any condition or event which
would constitute a Default or Event of Default and that to the best of such
signer’s knowledge, based on such review:

 

(i)                                     a review of the
fulfillment by the Trust and during such year of its obligations under this
Indenture has been made under the supervision of such signer; and

 

(ii)                                  the Trust has
fulfilled in all material
respects its obligations under this Indenture throughout such year, or, if
there has been a Default or Event of Default in the fulfillment of any such
obligation, specifying each such Default or Event of Default known to such
signer and the nature and status thereof.

 

(c)                                  The Trust, pursuant
to Section 314(a) of the Trust Indenture Act, shall:

 

(i)                                     file with the
Indenture Trustee, within fifteen (15) days after the Trust is required to file
the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Trust may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the
Securities

 

37

 

Exchange Act; or, if the Trust is not
required to file information, documents or reports pursuant to either of said
Sections, then it shall file with the Indenture Trustee and the Commission, in
accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the
Securities Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in
such rules and regulations; provided that if, pursuant to any publicly
available interpretations of the Commission, the Trust would not be required to
make such filings under Section 314(a) of the Trust Indenture Act,
then the Trust shall not be required to make such filings.

 

(ii)                                  file with the
Indenture Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance by the Trust,
with the conditions and covenants of this Indenture as may be required
from time to time by such rules and regulations; and

 

(iii)                               transmit within thirty
(30) days after the filing thereof with the Indenture Trustee, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture
Act, such summaries of any information, documents and reports required to be
filed by the Trust pursuant to paragraphs (i) and (ii) of this Section 3.10(c) as
may be required by rules and regulations prescribed from time to time
by the Commission.

 

(d)                                 The Trust shall comply
with the provisions of Section 314(d) of the Trust Indenture Act.

 

SECTION 3.11. Performance of Obligations. The Trust may contract with
other Persons for the performance of the Trust’s obligations hereunder (other
than the execution and delivery of Trust Requests, Trust Orders and Trust
Certificates) and the performance of such obligations by such other Persons
shall be deemed to be the performance thereof by the Trust, as applicable.

 

SECTION 3.12. Existence.

 

(a)                                  The Trust will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises as a
Delaware statutory or common law trust, as applicable, and, upon the advice of
counsel, will obtain and preserve its qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect
the validity and enforceability of this Indenture, the Notes or any portion of
the Collateral. The Trust will, promptly after any amendment or modification of
the Trust Agreement, send copies thereof to the Indenture Trustee and the
Rating Agencies.

 

(b)                                 The Trust will
maintain books and records and bank accounts separate from those of any other
Person and any other trust organized under the Program; will at all times

 

38

 

hold itself out to the public as separate and distinct from any
Affiliates and each other trust organized under the Program; and file or cause
to be filed its own tax returns.

 

(c)                                  The Trust shall
maintain its assets and transactions separately from those of any Affiliates
and any other trust organized under the Program, reflect such assets and
transactions in financial statements separate and distinct from those of any
Affiliates and any trust organized under the Program and evidence such assets
and transactions by appropriate entries in books and records separate and
distinct from those of any Affiliates (including any other trust organized
under the Program).

 

SECTION 3.13. Reports; Financial Information; Notices of Defaults.

 

(a)                                  The Trust shall
promptly deliver to the Indenture Trustee copies of all reports, statements and
information received by it pursuant to the Funding Agreement or otherwise in
respect of the Collateral.

 

(b)                                 The Trust shall
promptly inform the Indenture Trustee in writing of the occurrence of any
Default or Event of Default which is continuing of which it has actual
knowledge. Each notice given pursuant to this Section 3.13(b) shall
be accompanied by a Trust Certificate setting forth details of the occurrence
referred to therein and stating what action, if any, the Trust has taken or
proposes to take with respect thereto.

 

(c)                                  The Trust shall
collect all forms (or, if applicable, copies of such forms), if any, from the
Paying Agent or Registrar (or from such other persons as are relevant) that are
required to exempt payments under the Notes or the Funding Agreement, from
United States federal income tax withholding. In addition, the Trust shall
execute and file such forms and take such actions for United States federal
income tax purposes as shall be reasonable and necessary to ensure that
payments of interest, principal, premium and Additional Amounts, if applicable,
in respect of the Notes or the Funding Agreement, are not subject to United
States federal withholding or backup withholding tax.

 

(d)                                 In accordance with Section 312(a) of
the Trust Indenture Act, the Trust shall furnish or cause to be furnished to
the Indenture Trustee:

 

(i)                                     semi-annually
with respect to the Series of Notes not later than the seventh day of May and
the seventh day of November of each year or upon such other dates as are
set forth in or pursuant to a Trust Order or indenture supplemental hereto a
list, in each case in such form as the Indenture Trustee may reasonably
require, of the names and addresses of Holders as of the applicable date, and

 

(ii)                                  at such other times
as the Indenture Trustee may request in writing, within thirty (30) days
after the receipt by the Trust of any such request, a list of similar form and
content as of a date not more than fifteen (15) days prior to the time such
list is furnished,

 

provided, however,
that so long as the Indenture Trustee is the Registrar no such list shall be
required to be furnished.

 

39

 

(e)                                  The Indenture Trustee
shall comply with the obligations imposed upon it pursuant to Section 312
of the Trust Indenture Act.

 

Every Holder, by receiving and holding Notes,
agrees with the Trust and the Indenture Trustee that neither the Trust, the
Indenture Trustee, the Paying Agent or the Registrar shall be held accountable
by reason of the disclosure of any such information as to the names and
addresses of the Holders in accordance with Section 312(c) of the
Trust Indenture Act, regardless of the source from which such information was
derived, and that the Indenture Trustee shall not be held accountable by reason
of mailing any material pursuant to a request made under Section 312(b) of
the Trust Indenture Act.

 

(f)                                                                                    (i)                                     On
or before the seventh day of November of each calendar year commencing November 7,
2003, if required by Section 313(a) of the Trust Indenture Act, the
Indenture Trustee shall transmit, pursuant to Section 313(c) of the
Trust Indenture Act, a brief report with respect to any of the events specified
in Section 313(a) of the Trust Indenture Act which may have
occurred since the later of the immediately preceding seventh day of November and
the date of this Indenture.

 

(ii)                                  The Indenture Trustee
shall transmit, pursuant to Section 313(c) of the Trust Indenture
Act, the reports required by Section 313(b) of the Trust Indenture
Act at the time specified therein.

 

(iii)                               Reports pursuant to this
Section shall be transmitted in the manner and to the Persons required by
Sections 313(c) and 313(d) of the Trust Indenture Act.

 

SECTION 3.14. Payment of Taxes and Other Claims. The Trust will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon the Trust or upon the income, profits or property of the Trust,
and (2) all lawful claims for labor, materials and supplies which, if
unpaid, might by law become a Lien upon the property of the Trust; provided, however, that the Trust shall
not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings. The Trust shall
comply with the requirements of all other applicable laws, the non-compliance
with which would, individually or in the aggregate, materially and adversely
affect the condition (financial or otherwise) of the Trust or which would
impair in any material respect the ability of the Trust to perform its
obligations under the Notes or this Indenture.

 

SECTION 3.15. Negative Covenants. So long
as any Notes are Outstanding, the Trust will not take any of the following
actions, except as otherwise permitted hereunder:

 

(a)                                  sell, transfer,
exchange, assign, lease, convey or otherwise dispose of any assets held by the
Trust (owned as of the date of the Trust Agreement, or thereafter acquired),
including, without limitation, any portion of the Collateral, except as
expressly permitted hereby;

 

40

 

(b)                                 incur or otherwise
become liable, directly or indirectly, for any Indebtedness or Contingent
Obligation except for the Notes issued pursuant to this Indenture and the
transactions contemplated thereby;

 

(c)                                  engage in any
business or activity other than in connection with, or relating to, the
performance of the Trust Agreement and the execution, delivery and performance
of any documents, including the Program Documents (other than the Trust
Agreement), relating to the Notes issued under this Indenture and the
transactions contemplated thereby, and the issuance of the Notes pursuant to
this Indenture;

 

(d)                                 (i)                                     permit the
validity or effectiveness of this Indenture or any grant of security interest
in or assignment for collateral purposes of the Collateral to be impaired, or
permit a Lien created under this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenants or obligations under any document or agreement assigned to
the Indenture Trustee, except as may be expressly permitted hereby, (ii) create,
incur, assume or permit any Lien or other encumbrance (other than a Lien
created by this Indenture) on any of its properties or assets owned or
thereafter acquired, or any interest therein or the proceeds thereof, or (iii) permit
a Lien created under this Indenture not to constitute a valid first priority
perfected security interest in the Collateral;

 

(e)                                  amend, modify or fail
to comply with any material provision of the Trust Agreement, except for any
amendment or modification of the Trust Agreement expressly permitted
thereunder;

 

(f)                                    own any subsidiary
or lend or advance any funds to, or make any investment in, any Person, except
for an investment in Funding Agreements or the investment of any funds held by
the Indenture Trustee, the Paying Agent, Wilmington or the Administrator as
provided in this Indenture or the Trust Agreement;

 

(g)                                 directly or indirectly
declare or make any distribution or other payment to, or redeem or otherwise
acquire or retire for value the interest of, the Trust Beneficial Owner if any
amount under the Notes is due and unpaid, or directly or indirectly redeem or
otherwise acquire or retire for value any Indebtedness or Contingent Obligation
other than the Notes;

 

(h)                                 exercise any rights
with respect to the Collateral except at the written direction of, or with the
prior written approval of, the Indenture Trustee;

 

(i)                                     become an “investment
company” under, or come under the “control” of an “investment company,” as such
terms are defined in the Investment Company Act;

 

(j)                                     enter into any
transaction of merger or consolidation or liquidate or dissolve itself (or
suffer any liquidation or dissolution), or acquire by purchase or otherwise all
or substantially all the business or assets of, or any stock or other evidence
of beneficial ownership of, any Person;

 

(k)                                  take any action that
would cause it not to be treated as a grantor trust for United States federal
income tax purposes;

 

41

 

(l)                                     have any
subsidiaries, employees or agents other than Wilmington, the Administrator and
other persons necessary to conduct its activities and enter into transactions
contemplated under the Program Documents;

 

(m)                               have an interest in any
bank account other than (i) those accounts required under the Program
Documents, and (ii) those accounts expressly permitted by the Indenture
Trustee; provided that any such
further accounts or the Trust’s interest therein shall be charged or otherwise
secured in favor of the Indenture Trustee;

 

(n)                                 issue Notes under this
Indenture unless (i) the Trust has purchased or will simultaneously
purchase one or more Funding Agreements from Protective Life to secure such
Notes, (ii) Protective Life has affirmed in writing to the Trust that it
has made or simultaneously will make changes to its books and records to
reflect the granting of a security interest in, and the making of an assignment
for collateral purposes of, the Funding Agreements by the Trust to the
Indenture Trustee and (iii) the Trust has taken such other steps as may be
necessary to cause the Indenture Trustee’s grant of security interest in, and
assignment for collateral purposes of, the Collateral
to be perfected for purposes of the UCC or effective against the Trust’s
creditors and subsequent purchasers of the Collateral pursuant to insurance or
other applicable law;

 

(o)                                 permit any Affiliate,
employee or officer of Protective Life or any purchasing agent or selling agent
to be a trustee of the Trust;

 

(p)                                 commingle the assets
of the Trust with assets of any Affiliates (including any other trust organized
under the Program), or guarantee any obligation of any Affiliates (including
any trust organized under the Program); or

 

(q)                                 maintain any joint
account with any Person, become a party, whether as co-obligor or otherwise, to
any agreement to which any Person is a party (other than in respect of the
Program Documents), or become liable as a guarantor or otherwise with respect
to any Indebtedness or contractual obligation of any Persons.

 

SECTION 3.16. Non-Petition.
Each of the Indenture Trustee, the Administrator, each Holder of a Note, each
Agent and Wilmington covenants and agrees that, for a period of one year plus
one day after payment in full of all amounts payable under or in respect of
this Indenture and the Notes, it will not institute against, or join any other
Person in instituting against, the Trust any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any federal or state bankruptcy or similar law. The immediately preceding
sentence shall survive any termination of this Indenture.

 

Notwithstanding the foregoing, each of the
Indenture Trustee and each Agent covenants and agrees that, it will not
institute against, or join any other Person in instituting against, the Trust
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any federal or state bankruptcy or
similar law, as a result of the failure to pay fees or expenses pursuant to Section 7.10
to any party entitled thereto.

 

Moreover, each of the Indenture Trustee, the
Paying Agent, the Transfer Agent, the Calculation Agent and the Registrar
covenants and agrees that it will not cause an Event of

 

42

 

Default as a result of the Trust’s failure to pay any fees or expenses
pursuant to Section 7.10 to any party entitled thereto.

 

SECTION 3.17. Title to the Collateral. The Trust covenants and agrees that
the Trust owns or, prior to the issuance of the Notes will own, the Funding
Agreement and all of the rest of the Collateral, free and clear of any Liens
other than the security interests or assignments for collateral purposes made
pursuant to Article 4 of this Indenture; and that the Trust is not and
will not become a party to or otherwise be bound by any agreement, other than
this Indenture, which restricts in any manner the rights of any present or
future holder of any of the Collateral with respect thereto.

 

The Trust shall notify in writing the
Indenture Trustee and any Rating Agencies as promptly as practicable upon
becoming aware of any change in the law of the State of Tennessee following the
date of this Indenture with respect to the priority status of any Funding
Agreement in a liquidation of, or other delinquency proceeding against,
Protective Life.

 

SECTION 3.18. Withholding and Payment of Additional Amounts.

 

(a)                                  All payments due in
respect of the Notes will be made free and 
clear of any applicable withholding or deduction for or on account of
any present or future taxes, duties, levies, assessments or other governmental
charges of whatever nature imposed or levied by or on behalf of any
governmental authority in the United States having the power to tax, unless
such withholding or deduction is required by law. Unless otherwise specified in
the applicable Pricing Supplement, if any such withholding or deduction is
required by law, the Trust will not pay any Additional Amounts to Holders in
respect of any such withholding or deduction and any such withholding or
deduction will not give rise to a Default or an Event of Default or any
independent right or obligation to redeem the Notes. Unless the Funding
Agreement specifies that Protective Life will pay Additional Amounts to the
Trust in the event that any amount due with respect to the Funding Agreement is
subject to withholding or deduction for or on account of any present or future
taxes, duties, levies, assessments or other governmental charges of whatever
nature imposed or levied by or on behalf of any governmental authority in the
United States having the power to tax, and Protective Life is not obligated
under the Funding Agreement to pay any Additional Amounts with respect to such
withholding or deduction, the Trust will be deemed for all purposes of the
Program Documents to have received cash in an amount equal to the amount of any
such withholding or deduction, and each Holder will be deemed for all purposes
of the Program Documents to have received cash in an amount equal to the
portion of such withholding or deduction that is attributable to such Holder’s
interest in the Notes as equitably determined by the Trust.

 

(b)                                    Subject to the
final sentence of this Section 3.18(b), and to the extent specified
in the applicable Pricing Supplement, the Trust shall pay to a Holder of any
Note who is not a “United States person” within the meaning of Section 7701(a)(30)
of the Code, Additional Amounts to compensate for any withholding or deduction
for or on account of any present or future taxes, duties, levies, assessments
or other governmental charges of whatever nature imposed or levied on payments
in respect of such Note, by or on behalf of any governmental authority in the
United States having the power to tax, so that the net amount received by the
Holder under that Note, after giving effect to such withholding or deduction,
will equal the amount that would have been received under such Note were no
such deduction or withholding required; provided
that the Trust shall not, unless otherwise specified in the

 

43

 

applicable Pricing Supplement or a supplemental indenture, be required
to make any payment of any Additional Amount for or on account of: (i) any
tax, duty, levy, assessment or other governmental charge imposed which would
have not been imposed but for (A) the existence of any present or former
connection between the Holder or beneficial owner (as determined for United
States federal income tax purposes) of the Note or the Funding Agreement (any
such Holder or beneficial owner, hereafter, the “Owner”) and such governmental
authority, including without limitation, being or having been a citizen or
resident thereof, or being or having been present therein, incorporated
therein,  engaged in a trade or business
therein or having (or having had) a permanent establishment or principal office
therein, (B) such Owner being or having been a controlled foreign
corporation within the meaning of Section 957(a) of the Code related
within the meaning of Section 864(d)(4) of the Code to Protective
Life, the Trust Beneficial Owner or a private foundation or other tax-exempt
organization, (C) such Owner being or having been an actual or
constructive owner of ten percent (10%) or more of the total combined voting
power of all the outstanding stock of Protective Life or the Trust Beneficial
Owner, (D) such Owner being a bank for United States federal income tax
purposes whose receipt of interest on the Note or Funding Agreement is
described in Section 881(c)(3)(A) of the Code or (E) such Owner
being subject to backup withholding as of the date of becoming an Owner; (ii) any
tax, duty, levy, assessment or other governmental charge which would not have
been imposed but for the presentation of the Note or other evidence of
beneficial ownership thereof (where presentation is required) for payment on a
date more than thirty (30) days after the date on which such payment becomes
due and payable or the date on which payment is duly provided for whichever
occurs later; except to the extent that the Owner would have been entitled to Additional
Amounts had the Note been presented on the last day of such thirty (30) day
period; (iii) any tax, duty, levy, assessment or other governmental charge
which is imposed or withheld by reason of the failure of an Owner to comply
with certification, identification or information reporting requirements
concerning the nationality, residence, identity or connection with the United
States of an Owner (including, without limitation, failure to provide IRS Forms
W-8BEN or W-8ECI), if compliance is required by statute, by regulation of the
United States Treasury Department, judicial or administrative interpretation,
other law or by an applicable income tax treaty to which the United States is a
party as a condition to exemption from such tax, duty, levy, assessment or
other governmental charge;  (iv) any
inheritance, gift, estate, personal property, sales, transfer or similar tax,
duty, levy, assessment or similar governmental charge; (v) any tax, duty,
levy, assessment or  other governmental
charge that is payable otherwise than by withholding from payments in respect
of the Notes; (vi) any tax, duty, levy, assessment or other governmental
charge that would not have been imposed or withheld but for the treatment of
payments in respect of the Notes or the Funding Agreement as contingent
interest described in Section 871(h)(4) of the Code; (vii) any
tax, duty, levy, assessment or other governmental charge that would not have
been imposed or withheld but for an election by the Owner the effect of which
is to make payment in respect of the Notes subject to United States federal
income tax; (viii) any tax, duty, levy, assessment or other governmental
charge resulting from a European Union Directive; or (ix) any combination
of items (i), (ii), (iii), (iv), (v), (vi), (vii) or (viii). The
obligation to pay Additional Amounts shall not apply unless Protective Life is
obligated to pay additional amounts under the Funding Agreement (1) to
compensate for any withholding or deduction for or on account of any present or
future taxes, duties, levies, assessments or other governmental charges of
whatever nature imposed or levied on payments in respect of the Funding
Agreement by or on behalf of any governmental authority

 

44

 

in the United States having the power to tax and (2) to reimburse
the Trust for any Additional Amounts due to Holders.

 

(c)                                  If the applicable
Pricing Supplement indicates that the Trust will pay any Additional Amounts to
Holders as described in Section 3.18(b) and any such
Additional Amounts actually become due and payable the Trust shall deliver to
the Indenture Trustee a Trust Certificate that indicates the amount of such
Additional Amounts and the dates of the payment of such Additional Amounts. The
Indenture Trustee may conclusively rely on such Trust Certificate in
making the payment of such Additional Amounts.

 

(d)                                 Whenever in this
Indenture or in any Note there is mentioned, in any context, the payment of the
principal of or any premium or interest on, or in respect of, any Note or the
net proceeds received on the sale or exchange of any Note, such mention shall
be deemed to include mention of the payment of Additional Amounts if so
specified in the applicable Pricing Supplement. Further, express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

 

SECTION 3.19. Additional Representations and Warranties.

 

(a)                                  The Trust hereby
represents and warrants that:

 

(i)                                     to the extent the
creation of a security interest in the Funding Agreement is governed by the
UCC, this Indenture will create a valid security interest (as defined in the
UCC) in the Funding Agreement in favor of the Indenture Trustee for the benefit
and security of the Holders, which security interest will be prior to all other
Liens;

 

(ii)                                  the Funding Agreement
will constitute a “general intangible,” within the meaning of the UCC;

 

(iii)                               subject to the grant of
security interest, pledge and collateral assignment of the Trust’s right, title
and interest in the Funding Agreement, the Trust will be a party to and will be
the person entitled to payment under each of the documents included in the
Funding Agreement on the date thereof free and clear of any Lien, claim or
encumbrance of any Person, other then the Lien created hereunder or any Lien
otherwise permitted under this Indenture;

 

(iv)                              to the extent the UCC
applies, the Trust has caused or will have caused, within ten (10) days of
the issuance of the Notes, the filing of all appropriate financing statements
in the proper filing office in the appropriate jurisdictions under applicable
law in order to perfect the security interest in the Funding Agreement granted
to the Indenture Trustee for the benefit and security of the Holders hereunder;

 

(v)                                 other than the
security interest granted to the Indenture Trustee for the benefit and security
of the Holders pursuant to this Indenture, the

 

45

 

Trust will not pledge, assign, sell, grant a
security interest in, or otherwise convey any interest in the Funding
Agreement;

 

(vi)                              the Trust will not
authorize the filing of and is not aware of any financing statements against
the Trust that include a description of collateral covering the Funding
Agreement other than any financing statement relating to the security interest
granted to the Indenture Trustee for the benefit and security of the Holders
hereunder; and

 

(vii)                           the Trust is not aware of
any judgment or tax lien filings against the Trust.

 

(b)                                    The foregoing
representations and warranties will survive the execution and delivery of the
Notes. No party will waive any of the foregoing representations and warranties.
The Indenture Trustee and the Trust will maintain the perfection and priority
of the security interest in the Funding Agreement.

 

SECTION 3.20. Ancillary Documents. The Trust hereby expressly authorizes
and directs the Indenture Trustee to execute and deliver each of the documents,
instruments and agreements attached as Exhibits or otherwise expressly
contemplated by the terms of, this Indenture with respect to the Notes from
time to time.

 

ARTICLE 4.

GRANTING OF SECURITY INTEREST AND ASSIGNMENT
FOR COLLATERAL PURPOSES

 

SECTION 4.01. Creation. To secure the full and punctual payment of the
Secured Obligations in accordance with the terms thereof and to secure the
performance of the Trust’s obligations under the Notes and this Indenture, the
Trust hereby assigns and pledges to and with the Indenture Trustee for the
ratable benefit of each Holder and grants to the Indenture Trustee for the
ratable benefit of each Holder security interests in the Collateral, and all of
its rights and privileges with respect to the Collateral, and all income and
profits thereon, and all interest, dividends and other payments and
distributions with respect thereto, and all Proceeds of the foregoing.
Contemporaneously with the issuance of the Notes, the Trust will deliver the Funding
Agreement to the Indenture Trustee or its agent in pledge hereunder and make
such filings, cause Protective Life as the issuer of the Funding Agreement to
register and acknowledge the Indenture Trustee or its agent or the Holders as
having the rights of an assignee for collateral purposes of the Funding
Agreement and take such other action as may be necessary to cause the
Indenture Trustee for the ratable benefit of each Holder to have a perfected
security interest in or be the recipient of a valid assignment for collateral
purposes of the Funding Agreement and the rest of the Collateral that is
effective against the Trust’s creditors and subsequent purchasers thereof.

 

46

 

SECTION 4.02. Scope.

 

(a)                                  The security interest
or assignment for collateral purposes granted or made pursuant to Section 4.01
is granted or made in trust to secure the full and punctual payment of the
Secured Obligations equally and ratably among the Holders, without prejudice,
priority or distinction, except as expressly provided in this Indenture, in the
following order of priority:

 

first, to the payment of the amounts, for
principal, premium, if any, and interest and all such other amounts,
respectively, then due and unpaid in respect of which or for the benefit of
which such amount has been collected, ratably, without preference or priority
of any kind, according to the aggregate amounts due and payable on the Notes;
and

 

second, any remaining balance shall be paid to
the Trust and such remaining balance shall be distributed by Wilmington in
accordance with the Trust Agreement, subject to Section 3.01(d) of
the Trust Agreement.

 

(b)                                 The Trust does hereby
constitute and irrevocably appoint the Indenture Trustee the true and lawful
attorney of the Trust, with full power (in the name of the Trust or otherwise),
for so long as the security interest or assignment for collateral purposes
granted or made pursuant to Section 4.01 shall remain in effect, to
exercise all rights of the Trust with respect to the Collateral (including as
an owner or policyholder of the Funding Agreement) and to ask, require, demand,
receive, settle, compromise, compound and give acquittance for any and all
monies and claims for monies due and to become due under or arising out of any
of the Collateral, to endorse any checks or other instruments or orders in
connection therewith and to file any claims or take any action or institute any
proceedings that the Indenture Trustee may deem to be necessary or
advisable in the circumstances. The power of attorney granted pursuant to this
Indenture and all authority hereby conferred are granted and conferred solely
to protect the Indenture Trustee’s interest in the Collateral held for the
benefit and security of the Holders and shall not impose any duty upon the
Indenture Trustee to exercise any power. This power of attorney shall be
irrevocable as one coupled with an interest prior to the payment in full of all
the Notes.

 

(c)                                  This Indenture shall
constitute a security agreement and an agreement to assign the Collateral for
collateral purposes under the laws of the State of New York applicable to
agreements made and to be performed therein. Upon the occurrence of any Event
of Default with respect to the Notes, and in addition to any other rights
available under this Indenture and the Funding Agreement or otherwise available
at law or in equity, the Indenture Trustee shall have all rights and remedies
of a secured party or an assignee for collateral purposes on default under the laws
of the State of New York and other applicable law to enforce the assignments
and security interests contained herein and, in addition, shall have the right,
subject to compliance with any mandatory requirements of applicable law, to
sell or apply the Funding Agreement and any other rights and other interests
assigned or pledged hereby in accordance with the terms of this Indenture at
public or private sale. All amounts received hereunder shall be applied first
to all costs and expenses incurred by the Indenture Trustee in connection with
such collection and enforcement and thereafter as provided in this Indenture.

 

(d)                                 It is expressly agreed
that anything herein or therein contained to the contrary notwithstanding, the
Trust shall remain liable under the Funding Agreement to perform all the
obligations of it thereunder, all in accordance with and pursuant to the terms
and provisions thereof, and the Indenture Trustee shall not have any
obligations or liabilities with

 

47

 

respect to the Funding Agreement by reason of or arising out of this
Indenture, nor shall the Indenture Trustee be required or obligated in any
manner to perform or fulfill any obligations of the Trust under or
pursuant to the Funding Agreement or, other than as provided in this Indenture,
to make any payment, to make any inquiry as to the nature or sufficiency of any
payment received by it, or, prior to the occurrence and continuance of an Event
of Default, to present or file any claim, or to take any action to collect or
enforce the payment of any amounts that may have been assigned to it or to
which it may be entitled at any time or times.

 

(e)                                  The Indenture Trustee
acknowledges the granting of such security interests and the making of such assignments
for collateral purposes, accepts the terms hereunder in accordance with the
provisions hereof and agrees to perform its duties herein subject to and
with the benefit of the provisions hereof, to the end that the interests of the
Holders may be adequately and effectively protected.

 

SECTION 4.03. Termination of Security Interest. Upon the payment in full
of all Secured Obligations relating to the Notes, the security interest shall
terminate and all rights to the Collateral shall revert to the Trust. Upon
termination of the security interest, the Indenture Trustee will execute and
deliver to the Trust such documents as the Trust shall reasonably request to
evidence the termination of the security interest.

 

ARTICLE 5

SATISFACTION 
AND DISCHARGE; SUBROGATION

 

SECTION 5.01. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes (except as to any
surviving rights of registration of transfer or exchange of Notes herein
expressly provided for) and the Indenture Trustee, on written demand of the
Trust, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when

 

(a)                                  either:

 

(i)                                     all Notes
theretofore authenticated and delivered (other than Notes which have been
mutilated, destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.08) have been delivered to the Indenture
Trustee for cancellation; or

 

(ii)                                  all Notes

 

(A)                              have
become due and payable,

 

(B)                                will
become due and payable at their Stated Maturity Date within one year, or

 

(C)                                are
to be called for redemption within one year under arrangements satisfactory to
the Indenture Trustee for the giving of notice of redemption by the Indenture
Trustee in the name, and at the expense, of the Trust,

 

48

 

and the Trust, in the case of (A), (B) or
(C) above, has deposited or caused to be deposited with the Indenture
Trustee as trust funds in trust for such purpose, an amount sufficient to pay
and discharge the entire indebtedness on the Notes not theretofore delivered to
the Indenture Trustee for cancellation, for principal of, premium, if any, or
any interest on, the Notes to the date of such deposit (in the case of Notes
which have become due and payable) or to the Stated Maturity Date, as the case may be;

 

(b)                                 the Trust has paid or
caused to be paid in full all other sums payable hereunder by the Trust with
respect to the Secured Obligations; and

 

(c)                                  the Trust has
delivered to the Indenture Trustee a Trust Certificate and an Opinion of
Counsel each stating that all conditions precedent herein providing for the
satisfaction and discharge of this Indenture with respect to the Notes have
been complied with.

 

Notwithstanding the satisfaction and
discharge of this Indenture with respect to the Notes, the obligations of the
Indenture Trustee under Section 5.02 shall survive.

 

SECTION 5.02. Application of Trust Money. All money deposited with the
Indenture Trustee pursuant to this Indenture shall be held in trust in the
Collection Account and applied by it, in accordance with the provisions of the
Notes and this Indenture, to the payment through any Paying Agent, to the
Persons entitled thereto, of the principal, premium, if any, interest and
Additional Amounts, if any, for whose payment such money has been deposited
with or received by the Indenture Trustee.

 

If no Event of Default with respect to the Notes exists, the following
priority of payments shall apply:

 

first, to the payment of the amounts then due
and unpaid upon the Notes for principal, premium, if any, and interest and all
other amounts in respect of which or for the benefit of which such amount has
been collected, ratably, without preference or priority of any kind, according
to the aggregate principal amounts due and payable on the Notes; and

 

second, any remaining balance shall be paid to
the Trust and such remaining balance shall be distributed by Wilmington in
accordance with the Trust Agreement, subject to Section 3.01(d) of
the Trust Agreement.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

SECTION 6.01. Events of Default.

 

“Event of
Default,” wherever used herein, means any one of the following
events with respect to the Notes (whatever the reason for such Event of Default
and whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

49

 

(a)                                  failure to pay the
principal or premium, if any, of any Note and the continuance of such failure
for a period of one (1) Business Day after such principal or premium, if
any, becomes due and payable;

 

(b)                                 failure to pay any
interest on any Note within five (5) Business Days after such interest
becomes due and payable;

 

(c)                                  an “Event of Default”
(as defined in the Funding Agreement) by Protective Life under the Funding
Agreement securing the Notes;

 

(d)                                 failure to observe or
perform in any material respect any one or more of the other covenants in
this Indenture (other than a covenant or default or breach of which is
specifically set forth in Section 6.01(a), (b) and, if
applicable (h)) or the Notes, and continuance of such failure for a
period of sixty (60) days after the date on which there shall have been given
written notice by registered or certified mail, return receipt requested,
specifying such failure, thereof to the Trust by the Indenture Trustee or to
the Trust and the Indenture Trustee by Holders of Notes representing at least
twenty-five percent (25%) of the aggregate principal amount of the Outstanding
Notes, which written notice shall be delivered by registered or certified mail,
return receipt requested, and shall specify such failure and require such
failure to be remedied and which notice shall state that it is a “Notice of
Default” hereunder;

 

(e)                                  this Indenture for
any reason shall cease to be in full force and effect (other than in accordance
with its terms) or shall be declared null and void, or the Indenture Trustee
fails to have or maintain a validly created and perfected security interest
subject to no prior Liens or security interests in the Collateral and proceeds
thereof except as expressly permitted hereby; or any Person shall successfully
claim as finally determined by a court of competent jurisdiction that any of
the Liens granted to the Indenture Trustee with respect to any of the
Collateral are void or that the enforcement thereof or any other recourse by
the Indenture Trustee against any of the Collateral is materially limited
because of any preference, fraudulent transfer, conveyance or similar law;

 

(f)                                    either (i)  a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Trust or the Collateral in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect in the State of Delaware or any other applicable jurisdiction, which
decree or order is not stayed; or any other similar relief shall be granted
under any applicable law; or (ii) an involuntary case shall be commenced
against the Trust or the Collateral under any applicable bankruptcy, insolvency
or other similar law of the State of Delaware or any other applicable
jurisdiction; or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over the Trust or the
Collateral, or over all or a substantial part of its property, shall have
been entered; or there shall have occurred the involuntary appointment of an
interim receiver, trustee or other custodian of the Trust or the Collateral for
all or a substantial part of its property; or a court having jurisdiction
in the premises shall enter a decree or order declaring the dissolution of the
Trust; or a warrant of attachment, execution or similar process shall have been
issued against any substantial part of the property of the Trust and any
such event described in this clause (ii) shall continue for sixty (60)
days unless dismissed, bonded or discharged;

 

50

 

(g)                                 either (i)  the
Trust shall have an order for relief entered with respect to it or shall
commence a voluntary case under any applicable bankruptcy, insolvency or other
similar law of the State of Delaware or any other applicable jurisdiction, or
shall consent to the entry of an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such law,
or shall consent to the appointment of or taking possession by a receiver,
trustee or other custodian for all or a substantial part of its property;
or the Trust shall make any assignment for the benefit of creditors; or (ii) the
Trust shall fail or be unable, or the Trust admits in writing its inability, to
pay its debts as such debts become due; or the trustee of the Trust shall adopt
any resolution or otherwise authorize any action to approve or for the purpose
of effecting any of the actions referred to in this paragraph (g); or

 

(h)                                 any other Event of
Default provided in (i) the applicable Prospectus Supplement or the
applicable Pricing Supplement and (ii) the Notes or any supplemental indenture.

 

SECTION 6.02. Acceleration of Maturity Date; Rescission and Annulment. If
an Event of Default specified in any of Sections 6.01(a), (b), (c),
(f) or (g) hereof occurs, the principal of and all
accrued and unpaid interest and any other amounts payable on the Notes shall
automatically be and become due and payable immediately, without any
declaration or other act whatsoever on the part of the Trust, the
Indenture Trustee or any Holder. If any Event of Default other than those
specified in Sections 6.01(a), (b), (c), (f) or
(g) hereof occurs and is continuing, then in every such case the
Indenture Trustee or the Holders of more than twenty-five percent (25%) in
aggregate principal amount of the Outstanding Notes, by a notice in writing to
the Trust (and to the Indenture Trustee if given by the Holders of the Notes), may (but
are not required to) declare the sum of (a) the principal amount of all
the Outstanding Notes and (b) any other amounts, including accrued and
unpaid interest, payable to the Holders to the extent such amounts are
permitted by law to be paid, to be due and payable immediately, and upon any
such declaration such amount shall become due and payable on the date the
written declaration is received by the Trust; provided,
however, that with respect to any
Note issued with original issue discount the amount of principal due and
payable for such Note will be the amount determined as set forth in the Pricing
Supplement or, if not so set forth, by multiplying (i) the then
outstanding aggregate principal amount of such Note by (ii) the sum of (A) the
original issue price of the Note (expressed as a percentage of the then
outstanding aggregate principal amount of such Note) plus (B) the original
issue discount (expressed as a percentage) amortized from the original issue
date of such Note to the date of declaration of acceleration of maturity of
such Note (calculated using the interest method in accordance with generally
accepted accounting principles in effect on the date of determination).

 

At any time after such a declaration of
acceleration of maturity of the Notes has been made pursuant to the second
sentence of this Section 6.02 and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as hereinafter
provided in this Article, the Holders of Notes representing at least sixty-six
and two-thirds percent (66-2/3%) of the aggregate principal amount of the
Outstanding Notes, by written notice to the Trust and the Indenture Trustee, may rescind
and annul such declaration and its consequences if

 

(a)                                  the Trust has paid or
deposited with the Indenture Trustee a sum sufficient to pay

 

51

 

(i)                                     all
overdue installments of interest and Additional Amounts, if applicable, on all
Notes,

 

(ii)                                  the
principal and premium, if any, of any Notes which have become due otherwise
than by such declaration of acceleration and interest thereon with respect
thereto at the rate borne by the Notes, and

 

(iii)                               all
sums paid or advanced by the Indenture Trustee hereunder; and

 

(b)                                 all Events of Default,
other than the nonpayment of the principal of or interest on the Notes which
have become due solely as a result of such acceleration, have been cured or
waived as provided in Section 6.13.

 

No such rescission shall affect any
subsequent Default or Event of Default or impair any right consequent thereon.

 

SECTION 6.03. Collection of Indebtedness and Suits for Enforcement. The
Trust covenants that if

 

(a)                                  default is made in
the payment of any installment of interest on any Note when such interest
becomes due and payable (after the expiration of any applicable cure period),
or

 

(b)                                 default is made in the
payment of the principal or premium, if any, of any Note when such principal or
premium, if any, becomes due and payable,

 

the Trust will upon demand of the Indenture Trustee (which the
Indenture Trustee may make, but is not required to make) pay to the
Indenture Trustee, for the benefit of all the Holders of the Notes, the whole
amount then due and payable on the Notes and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Indenture Trustee, its agents and counsel.

 

If the Trust fails to pay such amounts it is
required to pay the Indenture Trustee pursuant to the preceding paragraph, then
forthwith upon the demand of the Indenture Trustee, in its own name and as
trustee of an express trust, the Indenture Trustee may (but is not
required to) institute a judicial proceeding for the collection of the sums so
due and unpaid, may prosecute such proceeding to judgment or final decree
and may enforce the same against the Trust or any other obligor upon any
of the Notes and collect the monies adjudged or decreed to be payable in the
manner provided by law out of the property of the Trust or any other obligor
upon the Notes, including the Collateral, wherever situated.

 

If an Event of Default with respect to the
Notes occurs and is continuing, the Indenture Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders of Notes by such appropriate judicial proceedings as the Indenture
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.

 

52

 

SECTION 6.04. Indenture Trustee May File Proofs of Claim. In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, composition or other judicial proceeding relative
to the Trust or any other obligor upon the Notes or the property held in the
Trust or of such other obligor or their creditors, the Indenture Trustee
(irrespective of whether the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand on the Trust for the payment of
any overdue principal, premium or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

(a)                                  to file and prove a
claim for the whole amount of principal of, and any premium and interest owing
and unpaid in respect of, the Notes and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the
Indenture Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee, its agents and
counsel) and of the Holders allowed in such proceeding; and

 

(b)                                 to collect and receive
any moneys or other property payable or deliverable on any such claims and to
distribute the same,

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Indenture Trustee
and, in the event that the Indenture Trustee shall consent, to make such
payments directly to the Holders, and to pay to the Indenture Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee, its agents and counsel, and any other
amounts due to the Indenture Trustee under Section 7.10.

 

Nothing herein contained shall be deemed to
authorize the Indenture Trustee to authorize or consent to or accept or adopt
on behalf of any Holder any plan of reorganization, arrangement, adjustment, or
composition affecting any of the Notes or the rights of any Holder thereof, or
to authorize the Indenture Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

SECTION 6.05. Indenture Trustee May Enforce Claims Without Possession of Notes. All
rights of action and claims under this Indenture or any of the Notes may be
prosecuted and enforced by the Indenture Trustee without the possession of any
of the Notes or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Indenture Trustee in accordance with the
terms hereof shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee, its agents and counsel, be for the ratable benefit of the Holders of
Notes in respect of which such judgment has been recovered.

 

SECTION 6.06. Application of Money Collected. Notwithstanding anything
herein to the contrary, any money collected by the Indenture Trustee following
an Event of Default and during the continuance thereof pursuant to Article 6
or otherwise under this Indenture, any supplements hereto or the Funding
Agreement, and any moneys that may then be held or thereafter received by
the Indenture Trustee as security with respect to the Notes shall be held in
the Collection Account and be applied in the following order, at the date or
dates fixed by the

 

53

 

Indenture Trustee and, in case of the distribution on account of
principal or interest, upon presentation of the Notes, or both, and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

first, to the payment of the reasonable and
customary expenses and counsel fees incurred by the Indenture Trustee and any
other amounts due and unpaid to the Indenture Trustee by the Trust, in an
aggregate amount of no more than $250,000 for all notes issued under the
Program, to the extent not paid pursuant to the Expense and Indemnity
Agreement;

 

second, to the payment of the amounts then due
and unpaid upon the Notes for principal, premium, if any, and interest and all
other amounts in respect of which, or for the benefit of which, such amount has
been collected, ratably, without preference or priority of any kind, according
to the aggregate principal amounts due and payable on the Notes; and

 

third, any remaining balance shall be paid to
the Trust and such remaining balance shall be distributed by Wilmington in
accordance with the Trust Agreement, subject to Section 3.01(d) of
the Trust Agreement.

 

Except as expressly set forth herein, none of
the Indenture Trustee, Paying Agent, Registrar or any other Agent or any of
their successors, employees, officers, directors, affiliates or agents shall
have any claim or rights of any nature in or to the Collateral, whether as a
result of set-off, banker’s lien or otherwise, and the Indenture Trustee hereby
waives, and the Paying Agent and Registrar appointed hereunder shall be deemed
to have waived, by its acceptance of the duties hereunder, on behalf of itself
and each such other Person, any such claim or rights in or to the Collateral.

 

SECTION 6.07. Limitation on Suits. Except as otherwise provided in Section 6.08,
no Holder shall have any right to institute any proceedings, judicial or
otherwise, with respect to this Indenture or any agreement or instrument
included in the Collateral for the Notes or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:

 

(a)                                  such Holder has
previously given written notice to the Indenture Trustee of a continuing Event
of Default with respect to the Notes;

 

(b)                                 the Holder or Holders
of Notes representing not less than twenty-five percent (25%) of the aggregate
principal amount of the Outstanding Notes shall have made written request to
the Indenture Trustee to institute proceedings in respect of such Event of Default
in its own name as Indenture Trustee hereunder;

 

(c)                                  such Holder or
Holders have offered to the Indenture Trustee reasonable indemnity or security
satisfactory to it against the costs, expenses and liabilities to be incurred
in compliance with such request;

 

(d)                                 the Indenture Trustee
for sixty (60) days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

54

 

(e)                                  no direction
inconsistent with such written request has been given to the Indenture Trustee
during such sixty (60) day period by the Holder or Holders of Notes
representing at least a majority in aggregate principal amount of the
Outstanding Notes;

 

it being understood and intended that no one or more Holders of Notes
shall have any right in any manner whatever by virtue of, or by availing of,
any provision of this Indenture to affect, disturb or prejudice the rights of
any other Holder of any Note or to obtain or to seek to obtain priority or
preference over any other Holder of any Note or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all the Holders of the Notes.

 

SECTION 6.08. Unconditional Rights of Holders to Receive Payments. Notwithstanding
any other provision in this Indenture, each Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal
of, any interest on, and premium, if any, on such Note on the respective Stated
Maturity Date or redemption date thereof and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

 

SECTION 6.09. Restoration of Rights and Remedies. If the Indenture Trustee
or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Indenture Trustee or to
such Holder, then and in every such case the Trust, the Indenture Trustee and
each such Holder shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and each such
Holder shall continue as though no such proceeding had been instituted.

 

SECTION 6.10. Rights and Remedies Cumulative. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Notes in Section 2.08, no right or remedy herein conferred
upon or reserved to the Indenture Trustee or to each and every Holder is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

SECTION 6.11. Delay or Omission Not Waiver. No delay or omission of the
Indenture Trustee or of any Holder to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such right or remedy accruing upon any Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by
law to the Indenture Trustee or to any Holder may be exercised from time
to time, and as often as may be deemed expedient, by the Indenture Trustee
or by such Holder, as the case may be.

 

SECTION 6.12. Control by Holders. Holders, representing at least a
majority of the aggregate
principal amount of the Outstanding Notes, who provide the Indenture Trustee
with indemnification satisfactory to the Indenture Trustee, shall have the
right to direct the time,

 

55

 

method and place of conducting any proceedings for exercising any
remedy available to the Indenture Trustee or exercising any trust or power
conferred on the Indenture Trustee with respect to the Notes, including with
respect to the Collateral; provided,
however, that (a) such direction shall not be in conflict with
any rule of law or with this Indenture and (b) the Indenture Trustee may take
any other action deemed proper by the Indenture Trustee that is not
inconsistent with such direction.

 

SECTION 6.13. Waiver of Past Defaults. Notwithstanding anything herein to the
contrary, only Holders representing a majority of the aggregate principal amount of the Outstanding Notes may on
behalf of the Holders of all the Notes waive any past Default hereunder with
respect thereto and its consequences, except a Default

 

(a)                                  in the payment of any
principal of, any interest on, or premium, if any, on any Note, or

 

(b)                                 in respect of a
covenant or provision hereof that cannot be modified or amended without the
consent of the Holder of each Outstanding Note.

 

Upon any such waiver, such Default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture with respect to the Notes; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

SECTION 6.14. Undertaking for Costs. All parties to this Indenture agree,
and each Holder, by acceptance of a Note, shall be deemed to have agreed that,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, any court may in its discretion
require the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall
not apply to any suit instituted by the Indenture Trustee or any Agent, to any
suit instituted by any Holder, or group of Holders, holding in the aggregate
Notes representing more than ten percent (10%) of the aggregate principal
amount of the Outstanding Notes, or to any suit instituted by any Holder for
the enforcement of the payment of any installment of interest on any Note on or
after the Stated Maturity Date thereof expressed in such Note or for the
enforcement of the payment of any principal of such Note at the Stated Maturity
Date therefor.

 

SECTION 6.15. Waiver of Stay or Extension Laws. The Trust covenants that
it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any law wherever enacted, now or at
any time hereafter in force, providing for any appraisement, valuation, stay,
extension or redemption, which may affect the covenants in, or the
performance of, this Indenture; and the Trust hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

 

56

 

ARTICLE 7

THE INDENTURE TRUSTEE AND OTHER AGENTS

 

SECTION 7.01. Duties of Indenture Trustee and Agents.

 

(a)                                  If an Event of
Default has occurred and is continuing, the Indenture Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his or her own affairs.

 

(b)                                 Except during the
continuance of an Event of Default, the duties and liabilities of the Indenture
Trustee are to perform only those duties that are specifically set forth
in this Indenture and no others, and no implied covenants or obligations of the
Indenture Trustee shall be read into this Indenture.

 

(c)                                  No provision of this
Indenture shall be construed to relieve the Indenture Trustee or any Agent from
liability for its own negligent action, its own negligent failure to act, or
its own bad faith or willful misconduct, except that:

 

(i)                                     this subsection does
not limit the effect of subsection (b) of this Section 7.01;

 

(ii)                                  each of the Indenture
Trustee and each Agent may in good faith rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to it and conforming to the requirements of
this Indenture unless a Responsible Officer of the Indenture Trustee or such
Agent, respectively, has actual knowledge that such statements or opinions are false;
provided that the Indenture
Trustee or Agent, as the case may be, must examine such certificates and
opinions to determine whether they conform to the requirements of this
Indenture;

 

(iii)                               each of the Indenture
Trustee and each Agent shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless it is proved that the Indenture
Trustee or Agent, as the case may be, was negligent in ascertaining the
pertinent facts;

 

(iv)                              the Indenture Trustee
shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with the direction of Holders representing at least a
majority of the aggregate principal amount of the Outstanding Notes or pursuant
to Section 6.07 for actions or omissions relating to the time,
method and place of conducting any proceeding for any remedy available to the
Indenture Trustee, or exercising any trust or power conferred upon the
Indenture Trustee, under this Indenture with respect to the Notes; and

 

(v)                                 no provision of this
Indenture shall require the Indenture Trustee or any Agent to expend or risk
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for

 

57

 

believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

 

(d)                                 Whether or not therein
expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Indenture
Trustee shall be subject to the provisions of this Section 7.01.

 

(e)                                  The Indenture Trustee
shall promptly upon its receipt thereof deliver to each Rating Agency copies of
each of the following:

 

(i)                                     any notice of any
Event of Default by any party under the Funding Agreement delivered by the
Trust to the Indenture Trustee pursuant to paragraph (b) of Section 3.13;

 

(ii)                                  any amendment or
modification of the Trust Agreement delivered by the Trust to the Indenture
Trustee pursuant to paragraph (a) of Section 3.12;

 

(iii)                               any notice of any
Default or Event of Default, together with any relevant Trust Certificate
relating thereto, delivered by the Trust to the Indenture Trustee pursuant to
paragraph (b) of Section 3.13;

 

(iv)                              any supplemental
indenture referred to in Section 8.01 or 8.02;

 

(v)                                 any other information
reasonably requested by any Rating Agency;

 

(vi)                              any notice of change in the
identity of the Trust;

 

(vii)                           any notice of change in the
identity of the Indenture Trustee;

 

(viii)                        any notice of adverse change in
the priority status of the Funding Agreement as a matter of the laws of the
State of Tennessee; and

 

(ix)                                any notice delivered to
the Indenture Trustee under Section 3.12.

 

(f)                                    The Indenture
Trustee shall, on behalf of the Trust, and to the extent that the relevant
information shall be reasonably available to it, submit such reports or
information as may be required from time to time in relation to the issue
of the Notes by applicable law, regulations and guidelines by governmental
regulatory authorities as may be subsequently requested by the Trust and
agreed to in writing between the Trust and the Indenture Trustee.

 

SECTION 7.02. No Liability to Invest. None of the Agents shall be under
any liability for interest on, or have any responsibility to invest, any monies
received by it pursuant to any of the provisions of this Indenture or the
Notes.

 

58

 

SECTION 7.03. Performance Upon Default. None of the Agents shall have any
duty or responsibility in case of any default by the Trust in the performance
of its obligations (including, without limiting the generality of the foregoing,
any duty or responsibility to accelerate all or any of the Notes or to initiate
or to attempt to initiate any proceedings at law or otherwise or to make any
demand for the payment thereof upon the Trust).

 

SECTION 7.04. No Assumption by Paying Agent, Transfer Agent, Calculation Agent or
Registrar. In acting hereunder and in connection with the Notes, the
Paying Agent, the Transfer Agent, the Calculation Agent and the Registrar shall
act solely as agents of the Trust and will not thereby assume any obligations
towards, or relationship of agency or trust for, any of the Holders.

 

SECTION 7.05. Notice of Default. Within ninety (90) days after a
Responsible Officer of the Indenture Trustee becomes aware of the occurrence of
any Default or Event of Default which is continuing hereunder, the Indenture
Trustee shall transmit to Wilmington and all Holders of Notes notice of each
such Default or Event of Default hereunder known to the Indenture Trustee,
unless such Default or Event of Default shall have been cured or waived; provided, however, that, except in the
case of a Default of the kind described in Section 6.01(a), (b),
(c), (f) or (g) the Indenture Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Indenture Trustee in good faith determine that the withholding
of such notice is in the interests of the Holders.

 

SECTION 7.06. Rights of Indenture Trustee. Subject to the provisions of Section 7.01(c):

 

(a)                                  The Indenture Trustee
may rely on any document believed by it in good faith to be genuine and to
have been signed or presented by the proper Person. The Indenture Trustee need
not investigate any fact or matter stated in the document.

 

(b)                                 Before the Indenture
Trustee acts or refrains from acting it may require a Trust Certificate or
an Opinion of Counsel (or may consult with financial or other advisors or
consultants appointed with due care). The Indenture Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on any Trust
Order, Trust Request, Trust Certificate, Opinion of Counsel or advice from
financial or other advisors or consultants appointed with due care.

 

(c)                                  The Indenture Trustee
may act through agents or attorneys and shall not be responsible for
monitoring or supervising the actions of, or for the misconduct or negligence
of, any agent or attorney appointed with due care.

 

(d)                                 The Indenture Trustee
shall not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within its rights or powers.

 

(e)                                  (i)                                     The Indenture
Trustee may employ or retain such counsel, accountants, appraisers, agents
or other experts or advisers as it may reasonably require for the purpose
of determining and discharging its rights and duties hereunder and shall not be
responsible for misconduct on the part of any such person appointed with
due care.

 

59

 

(ii)                                  The Indenture Trustee
may act and rely and shall be protected in acting and relying in good
faith on the opinion or advice of or information obtained from any counsel,
accountant, appraiser, agents or other expert or adviser, whether retained or
employed by the Trust or by the Indenture Trustee, in relation to any matter
arising in the administration of the trusts hereof.

 

(f)                                    The Indenture
Trustee may consult with counsel of its selection and the advice of such
counsel or any opinion of counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

 

(g)                                 The Indenture Trustee
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant
to this Indenture, unless such Holders shall have offered to the Indenture
Trustee security or indemnity against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction.

 

(h)                                 The Indenture Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Indenture Trustee, in its
discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Indenture Trustee shall
determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Trust, personally or by agent
or attorney, with any reasonable costs related thereto to be paid by Protective
Life pursuant to the Expense and Indemnity Agreement, and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation.

 

(i)                                     The Indenture
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Indenture Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default
is received by a Responsible Officer of the Indenture Trustee at the Corporate
Trust Office of the Indenture Trustee, and such notice references the Notes and
this Indenture and states that a Default or Event of Default has occurred.

 

(j)                                     Permissive powers
granted to the Indenture Trustee hereunder shall not be construed to be
mandatory duties on its part.

 

(k)                                  The rights and
protections afforded to the Indenture Trustee pursuant to this Article 7
shall also be afforded to the Paying Agent, Calculation Agent, Registrar or
Transfer Agent, or any successor or agent thereof.

 

(l)                                     The Indenture
Trustee shall have no liability for the actions or omissions of the Paying
Agent, Registrar, Calculation Agent or Transfer Agent, provided that such action omission is not
caused by the Indenture Trustee’s own negligence, bad faith or willful
misconduct.

 

60

 

(m)                               The Indenture Trustee may execute
any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through delegates, agents, attorneys, custodians, or
nominees, and the Indenture Trustee shall not be responsible for any misconduct
or negligence on the part, or the supervision, of any agent, attorney,
custodian, or nominee appointed with due care hereunder except as otherwise
agreed in writing with the Trust.

 

SECTION 7.07. Not Responsible for Recitals or Issuance of Notes. The
recitals contained herein and in the Notes, except the certificates of
authentication on the Notes, shall be taken as the statements of the Trust and
neither the Indenture Trustee nor any Agent assumes any responsibility for
their correctness. Neither the Indenture Trustee nor any Agent makes any
representations with respect to any Collateral or as to the validity,
enforceability or sufficiency of this Indenture or of the Notes or of any
security interest created hereunder. Neither the Indenture Trustee nor any
Agent shall be accountable for the use or application by the Trust of the Notes
or the proceeds thereof or any money paid to the Trust or upon Trust Order
pursuant to the provisions hereof.

 

SECTION 7.08. Indenture Trustee May Hold Notes. The Indenture
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and, subject to Section 7.11 herein and Section 311(a) of
the Trust Indenture Act, may otherwise
deal with the Trust with the same rights it would have if it were not Indenture
Trustee.

 

SECTION 7.09. Money Held in Trust. Money held by the Indenture Trustee in
trust hereunder need not be segregated from other funds except to the extent
required by this Indenture or by law. The Indenture Trustee shall be under no
liability for interest on any money received by it hereunder and shall not
invest such money, unless otherwise agreed to in writing and permitted by law.

 

SECTION 7.10. Compensation and Reimbursement. The Indenture Trustee and
the Agents will be entitled to payment of fees, reimbursement for, and
indemnification with respect to, costs and expenses for services rendered
hereunder to the extent provided in the Expense and Indemnity Agreement and,
with respect to only the Indenture Trustee, Section 6.06. Except as
provided in Section 6.06 with respect to the Indenture Trustee,
none of the Indenture Trustee, Paying Agent, Registrar or Transfer Agent shall
be entitled to seek any payment from the Trust with respect to its services
hereunder.

 

SECTION 7.11. Eligibility. The Trust agrees, for the benefit of the
Holders, that there shall at all times be an Indenture Trustee hereunder which
shall be a corporation or national banking association organized and doing
business under the laws of the United States, any state thereof or the District
of Columbia, authorized under such law to exercise corporate trust powers, having a combined capital and surplus of
at least $250,000,000 subject to supervision or examination by federal or state
authority and having a credit rating of BBB- or better by Standard &
Poor’s Ratings Service, a Division of the McGraw-Hill Companies or a credit
rating of Baa3 or better by Moody’s Investors Service, Inc. If such
corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of said supervising or examining authority, then for the
purposes of this Section 7.11, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition as published. If at any time the
Indenture Trustee shall cease to be

 

61

 

eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.

 

In addition, the Indenture Trustee, each
successor Indenture Trustee and each Person appointed to act as co-trustee
pursuant to Section 7.15 hereof must be a “United States person”
within the meaning of Section 7701(a)(30) of the Code.

 

SECTION 7.12. Resignation and Removal; Appointment of Successor.

 

(a)                                  No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee pursuant to this Section shall become effective until the
acceptance of appointment by the successor Indenture Trustee under Section 7.13.

 

(b)                                 The Indenture Trustee may resign
at any time by giving not less than ninety (90) days’ prior written notice
thereof to the Trust. If an instrument of acceptance by a successor Indenture
Trustee shall not have been delivered to the Indenture Trustee within thirty
(30) days after the giving of such notice of resignation, the resigning
Indenture Trustee may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee and any and all amounts then due
and owing to the retiring Indenture Trustee shall be paid in full.

 

(c)                                  The Indenture Trustee
may be removed at any time by an Act of Holders of Notes representing a
majority of the aggregate principal amount of the Outstanding Notes, delivered
to the Indenture Trustee and to the Trust.

 

(d)                                 If at any time (i) the
Indenture Trustee shall cease to be eligible under Section 7.11 and
shall fail to resign after written request by the Trust or any Holder (who has
been a bona fide Holder of a Note for at least six months), (ii) shall
become incapable of acting or shall be adjudged as bankrupt or insolvent, or a
receiver or liquidator of the Indenture Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Indenture
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation or (iii) the Indenture Trustee shall fail to
comply with the obligations imposed upon it under Section 310(b) of
the Trust Indenture Act with respect to the Notes after written request
therefor by the Trust or any Holder who has been a bona fide Holder of a Note
for at least six months, then, (x) the Trust (except during the existence of an
Event of Default) by a Trust Order may remove the Indenture Trustee, or
(y) subject to Section 6.14, any Holder who has been a bona fide
Holder for at least six months may, on behalf of himself, herself or itself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Indenture Trustee and the appointment of a successor
Indenture Trustee.

 

(e)                                  If the Indenture
Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of the Indenture Trustee for any cause, the Trust, by
a Trust Order, shall promptly appoint a successor Indenture Trustee and shall
comply with the applicable requirements of Section 7.13. If within
one year after such resignation, removal or incapability or the occurrence of
such vacancy a successor Indenture Trustee shall be appointed by Act of Holders
of Notes representing a majority of the aggregate principal amount of the
Outstanding Notes delivered to the Trust and the retiring Indenture Trustee,
the successor

 

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Trustee so appointed shall, upon its acceptance of such appointment in
accordance with the applicable requirements of Section 7.13, become
the successor Indenture Trustee and supersede the successor Indenture Trustee
appointed by the Trust. If no successor Indenture Trustee shall have been so
appointed by the Trust or Holders and shall have accepted appointment in the
manner hereinafter provided, any Holder who has been a Holder for at least six
months may (subject to Section 6.14), on behalf of himself,
herself or itself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

 

(f)                                    The Trust shall
give notice of each resignation and each removal of the Indenture Trustee and
each appointment of a successor Indenture Trustee by mailing written notice of
such event by first-class mail, postage prepaid, to the Holders of the
Notes, if any, as their names and addresses appear in the Register. Each notice
shall include the name of the successor Indenture Trustee and the address of
its Corporate Trust Office.

 

(g)                                 Any successor
Indenture Trustee shall satisfy all applicable requirements under this
Indenture.

 

SECTION 7.13. Acceptance of Appointment by Successor.

 

(a)                                  Every successor
Indenture Trustee appointed hereunder shall execute, acknowledge and deliver to
the Trust and the retiring Indenture Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Indenture
Trustee shall become effective and such successor Indenture Trustee, without
any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Indenture Trustee. Notwithstanding
the foregoing, on request of the Trust or the successor Indenture Trustee, such
retiring Indenture Trustee shall, upon payment of all amounts owed to it,
execute and deliver an instrument transferring to such successor Indenture
Trustee all the rights, powers and trusts of the retiring Indenture Trustee,
and shall duly assign, transfer and deliver to such successor Indenture Trustee
all property and money held by such retiring Indenture Trustee hereunder. Upon
request of any such successor Indenture Trustee, the Trust shall execute and
deliver any and all instruments for more fully and certainly vesting in and
confirming to such successor Indenture Trustee all such rights, powers and
trusts.

 

(b)                                 Upon request of any such
successor Indenture Trustee, the Trust shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor
Indenture Trustee all such rights, powers and trusts referred to in this
Section, as the case may be.

 

(c)                                  No successor
Indenture Trustee shall accept its appointment unless at the time of such
acceptance such successor Indenture Trustee shall be qualified and eligible
under this Article.

 

SECTION 7.14. Merger, Conversion, Consolidation or Succession to Business of
Indenture Trustee. Any corporation or national banking association
into which the Indenture Trustee may be merged or converted or with which
it may be consolidated, or any corporation or national banking association
resulting from any merger, conversion or consolidation to which the Indenture
Trustee shall be a party, or any corporation or national banking association
succeeding

 

63

 

to all or substantially all of the corporate trust business of the
Indenture Trustee, shall be the successor of the Indenture Trustee hereunder,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided,
however, that such corporation or national banking association shall
be otherwise qualified and eligible under this Article. In case any Notes have
been authenticated, but not delivered, by the Indenture Trustee then in office,
any successor by merger, conversion or consolidation to such authenticating
Indenture Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Indenture Trustee had
authenticated such Notes.

 

SECTION 7.15. Co-trustees.

 

(a)                                  At any time or times,
for the purpose of meeting the legal or regulatory requirements of any
jurisdiction in which any portion of any Collateral may at the time be
located, the Trust and the Indenture Trustee shall have power to appoint, and,
upon the written request of the Holders of Notes representing a majority of the
aggregate principal amount of the Outstanding Notes, the Trust shall for such
purpose join with the Indenture Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to appoint
one or more Persons approved by the Indenture Trustee to act as co-trustee,
jointly with the Indenture Trustee, of all or any part of the Collateral,
with such powers as may be provided in the instrument of appointment, and
to vest in such Person or Persons in the capacity aforesaid, any property,
title, right or power deemed necessary or desirable, subject to the other
provisions of this Section. If the Trust does not join in such appointment
within fifteen (15) days after the receipt by it of a request so to do, or in
case an Event of Default has occurred and is continuing, the Indenture Trustee
alone shall have power to make such appointment.

 

(b)                                 Should any written
instrument from the Trust be required by any co-trustee so appointed for more
fully confirming to such co-trustee such property, title, right or power, any
and all such instruments shall, on request, be executed, acknowledged and
delivered by the Trust.

 

(c)                                  Every co-trustee
shall, to the extent permitted by law, but to such extent only, be appointed
subject to the following terms:

 

(i)                                     the Notes shall be
authenticated and delivered and all rights, powers, duties and obligations
hereunder in respect of the custody of securities, cash and other personal
property held by, or required to be deposited or pledged with, the Indenture
Trustee hereunder, shall be exercised solely by the Indenture Trustee;

 

(ii)                                  the rights, powers,
duties and obligations hereby conferred or imposed upon the Indenture Trustee
shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee or by the Indenture Trustee and such co-trustee jointly, as shall be
provided in the instrument appointing such co-trustee, except to the extent
that, under any law of any jurisdiction in which any particular act is to be
performed, the Indenture Trustee shall be incompetent or unqualified to perform such
act, in which event such rights, powers, duties and obligations shall be
exercised and performed by such co-trustee;

 

64

 

(iii)                               the Indenture Trustee at
any time, by an instrument in writing executed by it, with the concurrence of
the Trust evidenced by a Trust Request, may accept the resignation of or
remove any co-trustee appointed under this Section, and, in case an Event of
Default has occurred and is continuing, the Indenture Trustee shall have power
to accept the resignation of, or remove, any such co-trustee without the
concurrence of the Trust. Upon the written request of the Indenture Trustee,
the Trust shall join with the Indenture Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to effectuate
such resignation or removal. A successor to any co-trustee so resigned or
removed may be appointed in the manner provided in this Section;

 

(iv)                              no co-trustee hereunder
shall be personally liable by reason of any act or omission of the Indenture
Trustee or any other such trustee hereunder and the Indenture Trustee shall not
be personally liable by reason of any act or omission of any co-trustee
hereunder; and

 

(v)                                 any Act of Holders
delivered to the Indenture Trustee shall be deemed to have been delivered to
each such co-trustee.

 

SECTION 7.16. Appointment and Duties of the Calculation Agent.

 

(a)                                  Unless the Paying
Agent advises the Trust that it is unable to act as Calculation Agent, the
Trust appoints the Paying Agent at its specified office as Calculation Agent in
relation to the Notes in respect of which it is named as such in the relevant
Pricing Supplement for the purposes specified in this Indenture and all matters
incidental thereto.

 

(b)                                 The Paying Agent
accepts its appointment as Calculation Agent in relation to the Notes in
respect of which it is named as such in the relevant Pricing Supplement and
shall perform all matters expressly to be performed by it in, and
otherwise comply with, the terms and conditions of the Notes and the provisions
of this Indenture and, in connection therewith, shall take all such action as may be
incidental thereto. The Paying Agent acknowledges and agrees that it shall be
named in the relevant Pricing Supplement as Calculation Agent in respect of the
Notes unless the purchasing agents or selling agents (or one of the purchasing
agents or selling agents) through whom the Notes are issued has agreed with the
Trust to act as Calculation Agent (in which case the purchasing agents or
selling agents shall be named as Calculation Agent in the related Pricing
Supplement). If the Calculation Agent is incapable or unwilling to perform its
duties hereunder, the Indenture Trustee (or the Administrator if the Indenture
Trustee is the Calculation Agent) will appoint the Paying Agent or another
leading commercial bank to serve as Calculation Agent. Any resignation by or
termination of a Calculation Agent shall not be effective until a successor
Calculation Agent has been appointed.

 

(c)                                  The Calculation Agent
shall in respect of the Notes:

 

(i)                                     obtain such quotes
and rates and/or make such determinations, calculations and adjustments as may be
required under the Notes and provide notice of any applicable interest rate
calculations or determinations or periods with respect to the Notes to the
Holders of the Notes upon their request

 

65

 

and to the Indenture Trustee, Paying Agent,
the Trust and Protective Life, and if the Notes are listed on a stock exchange,
and the rules of such exchange so require, such exchange as soon as
possible after the Calculation Agent’s determination or calculation of such
interest rates or interest rate periods, but in no event later than the fourth
(4th) Banking Day thereafter or, earlier in the case of notification
to a stock exchange, if the rules of such exchange so require; and

 

(ii)                                  maintain a record of
all quotations obtained by it and of all amounts, rates and other items
determined or calculated by it and make such record available for inspection at
all reasonable times by the Trust, the Indenture Trustee, Protective Life and
the Paying Agent.

 

(d)                                 The Calculation Agent
shall have no liability to the Holders of Notes in respect of any
determination, calculation, quote or rate made or provided by the Calculation
Agent.

 

SECTION 7.17. Changes in Agents

 

(a)                                  Any Agent may resign
its appointment hereunder upon the expiration of not less than thirty (30) days’
notice to that effect to the Trust (with a copy to the Indenture Trustee); provided, however,
that any such notice which would otherwise expire within thirty (30) days
before or after the Maturity Date or any interest or other payment date of the
Notes shall be deemed to expire on the thirtieth (30th) day
following the Maturity Date or, as the case may be, such interest or other
payment date.

 

(b)                                 The Trust may revoke
its appointment of any Agent hereunder not less than thirty (30) days’ notice
to the applicable Agent and the Indenture Trustee to that effect.

 

(c)                                  The appointment of
any Agent hereunder shall terminate forthwith if any of the following events or
circumstances shall occur or arise, namely, such Agent becomes incapable of
acting; is adjudged bankrupt or insolvent; files a voluntary petition in
bankruptcy or makes an assignment for the benefit of its creditors or consents
to the appointment of a receiver, administrator or other similar official of
all or any substantial part of its property or admits in writing its
inability to pay or meet its debts as they mature or suspends payment thereof;
a resolution is passed or an order is made for the winding-up or dissolution of
such Agent; a receiver, administrator or other similar official of such Agent
or of all or any substantial part of its property is appointed; an order
of any court is entered approving any petition filed by or against such Agent
under the provisions of any applicable bankruptcy or insolvency law; or any
public officer takes charge or control of such Agent or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation.

 

(d)                                 The Trust may (and
shall where necessary to comply with the terms and conditions of the Notes)
appoint substitute or additional agents in relation to the Notes and shall
forthwith notify the other parties hereto thereof, whereupon the parties hereto
and such substitute or additional agents shall thereafter have the same rights
and obligations among them as would have been the case had they then entered
into an agreement in the form mutatis mutandis of this Indenture.

 

66

 

(e)                                  If any Agent gives
notice of its resignation in accordance with this Section 7.17, the
provisions of paragraph (d) of Section 7.17 apply and by the
tenth (10th) day before the expiration of such notice a successor to
such Agent in relation to such Notes has not been appointed by the Trust, such
Agent may itself, following such consultation with the Trust as may be
practicable in the circumstances, appoint as its successor any reputable and
experienced bank or financial institution (which will ensure compliance with
the terms and conditions of the Notes) and give notice of such appointment in
accordance with the terms and conditions of the Notes, whereupon the parties
hereto and such successor agent shall thereafter have the same rights and
obligations among them as would have been the case had they then entered into
an agreement in the form mutatis mutandis of this Indenture.

 

(f)                                    Upon any
resignation or revocation becoming effective under this Section, the relevant
Agent shall:

 

(i)                                     be released and
discharged from its obligations under this Indenture;

 

(ii)                                  repay, in accordance
with the Expense and Indemnity Agreement, to Protective Life such part of
any fee paid to it as may be agreed between the relevant Agent and
Protective Life;

 

(iii)                               in the case of the
Paying Agent, deliver to the Trust and to the successor Paying Agent a copy,
certified as true and up-to-date by an officer of the Paying Agent, of the
records maintained by it in accordance with Section 3.04;

 

(iv)                              in the case of the
Registrar, deliver to the Trust and to the successor Registrar a copy,
certified as true and up-to-date by an officer of such Registrar, of each of
the Registers and other records maintained by it in accordance with Section 2.06;

 

(v)                                 in the case of a
Calculation Agent, deliver to the Trust and to the successor Calculation Agent
a copy, certified as true and up-to-date by an officer of such Calculation
Agent of the records maintained by it in accordance with Section 7.16;
and

 

(vi)                              upon payment to it by
Protective Life of all amounts owed to it, forthwith transfer all moneys and
papers (including any unissued Global Notes or Definitive Notes) held by it
hereunder to its successor in that capacity and, upon appropriate notice,
provide reasonable assistance to such successor for the discharge by it of its
duties and responsibilities hereunder.

 

(g)                                 Any corporation into
which any Agent may be merged or converted, any corporation with which any
Agent may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which any Agent shall be a party or any
corporation succeeding to all or substantially all the corporate agency
business of such Agent, shall, to the extent permitted by applicable law, be
the successor to such Agent hereunder and in relation to the Notes without any
further formality, whereupon the parties hereto and such successor agent

 

67

 

shall thereafter have the same rights and obligations among them as
would have been the case had they then entered into an agreement in the form mutatis
mutandis of this Indenture. Notice of any such merger, conversion,
consolidation or asset transfer shall forthwith be given by such successor to
the Trust and the other parties hereto.

 

(h)                                 If any Agent decides
to change its specified office (which may only be effected within the same
city) it shall give notice to the Trust (with a copy to the Indenture Trustee)
of the address of the new specified office stating the date on which such
change is to take effect, which date shall be not less than thirty (30) days
after the date of such notice. The relevant Agent shall at its own expense not
less than fourteen (14) days prior to the date on which such change is to take
effect (unless the appointment of the relevant Agent is to terminate pursuant
to any of the foregoing provisions of this Section on or prior to the date
of such change) publish or cause to be published notice thereof.

 

Upon the execution hereof and thereafter forthwith upon any change of
the same, the Trust shall deliver to the Indenture Trustee (with a copy to the
Paying Agent) a list of the Authorized Signatories of the Trust together with
certified specimen signatures of the same.

 

SECTION 7.18. Limitation of Wilmington Liability. It is expressly
understood and agreed by the parties that (a) this Indenture is executed
and delivered by Wilmington Trust Company, not individually or personally, but
solely as trustee of the Trust, in the exercise of the powers and authority
conferred and vested in it, pursuant to the Trust Agreement, (b) each of
the representations, undertakings and agreements herein made on the part of
the Trust is made and intended not as personal representations, undertakings
and agreements by Wilmington Trust Company, but is made and intended for the
purpose of binding only the Trust, (c) nothing contained herein shall be
construed as creating any liability on Wilmington Trust Company, individually
or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any person claiming by, through or under the parties
hereto, and (d) under no circumstances shall Wilmington Trust Company, be
personally liable for the payment of any indebtedness or expenses of the Trust
or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Trust under this Indenture or
any other related documents.

 

ARTICLE 8

SUPPLEMENTAL INDENTURES

 

SECTION 8.01. Supplemental Indentures Without Consent of Holders. Without
notice to, or the consent of, any Holder, the Trust and the Indenture Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Indenture Trustee, for
the purpose of:

 

(a)                                  conveying,
transferring, assigning, mortgaging or pledging to the Indenture Trustee, as
security for the Notes, any property or assets in addition to the Collateral;

 

(b)                                 curing any ambiguity
or correcting or supplementing any provision contained herein, in the Notes or
in any supplemental agreement which may be defective or inconsistent with
any other provision contained in this Indenture, the Notes, the Funding

 

68

 

Agreement or any other Program Documents, or making such other
provisions in regard to matters or questions arising under this Indenture which
shall not adversely affect the interests of any Holder of the Notes in any
material respect;

 

(c)                                  evidencing and
providing for the acceptance of appointment under this Indenture of a successor
Indenture Trustee and to add or to change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the Trust or of the Notes under this Indenture by more than one Indenture
Trustee;

 

(d)                                 adding to the
covenants of the Trust or the Indenture Trustee for the benefit of the Holders
of the Notes or to surrender any right or power conferred in this Indenture on
the Trust;

 

(e)                                  adding any additional
Events of Default;

 

(f)                                    changing,
eliminating or supplementing any of the provisions of this Indenture; provided, however, that any such change,
elimination or supplementation shall become effective only when there is no
Note Outstanding created prior to the execution of such supplemental indenture
which is entitled to the benefit of or bound by such provision;

 

(g)                                 securing all of the
Notes;

 

(h)                                 to provide for the
issuance of and establish the form and terms and conditions of Notes as
provided in Section 2.02; or

 

(i)                                     to establish the form of
any certifications required to be furnished pursuant to the terms of this
Indenture or of the Notes.

 

Notwithstanding any other provision, the
Trust will not enter into any supplemental indenture with the Indenture Trustee
or permit this Indenture to be amended or modified if such supplemental
indenture, amendment or modification would cause any Trust not to be treated as
a grantor trust for United States federal income tax purposes.

 

The Indenture Trustee shall be entitled to
receive and rely on an Opinion of Counsel as to whether any such supplemental
indenture complies with the requirements of Section 8.01(a) or
(b), if applicable, and any such opinion shall be conclusive on the
Holders.

 

SECTION 8.02. Supplemental Indenture With Consent of Holders.

 

(a)                                  With the consent of
the Holders of Notes representing at least a majority in aggregate principal
amount of all Outstanding Notes affected by such supplemental indenture, by Act
of said Holders delivered to the Trust and the Indenture Trustee, the Trust and
the Indenture Trustee may enter one or more indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each Note
affected thereby:

 

69

 

(i)                                     change the Stated
Maturity Date of the principal of, or the time of payment of interest on, any
Note;

 

(ii)                                  reduce the principal
amount of, the interest on or any premium payable on, any Note;

 

(iii)                               change any Place of
Payment where, or the coin or currency in which the principal of, premium, if
any, or interest on, any Note is payable;

 

(iv)                              impair or affect the
right of any Holder to institute suit for the enforcement of any payment on or
with respect to the Notes;

 

(v)                                 reduce the percentage
of the aggregate principal amount of the Outstanding Notes, the consent of the
Holders of which is required for any such supplemental indenture, or the
consent of the Holders of which is required for any waiver of compliance with
provisions of this Indenture or defaults thereunder and their consequences
provided for in this Indenture;

 

(vi)                              modify any of the
provisions of this Section or similar provisions, except to increase any
percentage specified therein or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Note affected thereby;

 

(vii)                           modify or alter the
provisions of the proviso to the definition of the term “Outstanding”;

 

(viii)                        modify or affect in any manner
adverse to the interest of any Holder the terms and conditions of the
obligations of the Trust regarding the due and punctual payment of the
principal of or interest on, or any other amounts due with respect to, the
Notes; or

 

(ix)                                permit the creation of
any Lien ranking prior to or on a parity with the Lien of this Indenture with
respect to any part of any Collateral or terminate the Lien of this
Indenture on any property held for the benefit and security of Holders at any
time subject hereto or deprive any Holder of the security afforded by the Lien
of this Indenture.

 

(b)                                 The Indenture Trustee may in
its discretion determine whether or not any Notes would be affected by any
supplemental indenture (and may receive and conclusively rely upon an
Opinion of Counsel in doing so) and any such determination shall be conclusive
upon all the Holders, whether theretofore or thereafter authenticated and
delivered hereunder. The Indenture Trustee shall not be liable for any such
determination made in good faith. It shall not be necessary for any Act of
Holders under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof. Promptly after the execution by the Trust and
the Indenture Trustee of any supplemental indenture pursuant to this Section,
the Indenture Trustee shall mail to the Holders of the Notes a notice setting
forth in general terms the substance of such supplemental indenture.

 

70

 

Any failure of the Trust to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

 

(c)                                  Notwithstanding any
other provision, the Trust will not enter into any supplemental indenture with
the Indenture Trustee or permit this Indenture to be amended or modified if
such supplemental indenture, amendment or modification would cause the Trust
not to be treated as a grantor trust for United States federal income tax
purposes.

 

SECTION 8.03. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Indenture Trustee shall be entitled to receive,
and (subject to Section 7.01) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Indenture Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
that affects the Indenture Trustee’s own rights, duties, indemnities or
immunities under this Indenture or otherwise.

 

SECTION 8.04. Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of a Note which has
theretofore been or thereafter authenticated and delivered hereunder shall be
bound thereby. Further, the Trust shall be bound by any such supplemental
indenture.

 

SECTION 8.05. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee
shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Trust shall so
determine, new Notes so modified as to conform, in the opinion of the Indenture
Trustee and the Trust, to any such supplemental indenture may be prepared
and executed by the Trust and authenticated by the Indenture Trustee and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

 

SECTION 8.06. Conformity with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

ARTICLE 9

NON-RECOURSE PROVISIONS

 

SECTION 9.01. Nonrecourse Enforcement. Notwithstanding anything to the
contrary contained in this Indenture or any Notes, none of Protective Life, its
officers, directors, Affiliates, employees or agents, or the Trust or any of
Wilmington, the Trust Beneficial Owner, the Agents or any of their respective
officers, directors, Affiliates, employees or agents (the “Nonrecourse Parties”) will be personally liable for the payment
of any principal, interest or any other sums at any time owing under the terms
of the Notes. If any Event of Default shall occur with respect to the Notes,
the right of the Holders of the Notes and the Indenture Trustee

 

71

 

on behalf of such Holders in connection with a claim on such Notes
shall be limited solely to a proceeding against the Collateral. Neither such
Holders nor the Indenture Trustee on behalf of such Holders will have the right
to proceed against the Nonrecourse Parties or the Collateral held in any other
trust organized under the Program or otherwise, to enforce the Notes (except
that to the extent they exercise their rights, if any, to seize the Funding
Agreement, they may enforce the Funding Agreement against Protective Life,
its successors or assigns) or for any deficiency judgment remaining after foreclosure
of any property included in the Collateral.

 

It is expressly understood and agreed that
nothing contained in this Section 9.01 shall in any manner or way
constitute or be deemed a release of the debt or other obligations evidenced by
the Notes or otherwise affect or impair the enforceability against the Trust of
the liens, assignments, rights and security interests created by this
Indenture, the Collateral or any other instrument or agreement evidencing,
securing or relating to the indebtedness or the obligations evidenced by the
Notes. Nothing in this Section 9.01 shall preclude the Holders from
foreclosing upon any property included in the Collateral.

 

Holders may not seek to enforce rights
against the Trust (a) by commencing any recovery or enforcement
proceedings against the Trust, (b) by applying to wind up the Trust, (c) otherwise
than through the Indenture Trustee in its exercise of powers to petition a
court to appoint a receiver or administrator to the Trust or for the
Collateral, (d) by making any statutory demand upon the Trust under
applicable corporation law, or (e) in any other manner except as may be
provided in this Indenture or in the Notes.

 

ARTICLE 10

MEETINGS OF HOLDERS OF NOTES

 

SECTION 10.01. Purposes for Which Meetings May be Called. A
meeting of Holders of Notes may be called at any time and from time to
time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by the Holders of Notes.

 

SECTION 10.02. Call, Notice and Place of Meetings. (a) 
Unless otherwise provided in the Notes, the Indenture Trustee may at any
time call a meeting of Holders of the Notes for any purpose specified in Section 10.01,
to be held at such time and at such place in The City of New York or such other
place as the Indenture Trustee shall determine. Notice of every meeting of
Holders, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be given, in the
manner provided in Section 1.06, not less than twenty-one (21) nor
more than 180 days prior to the date fixed for the meeting.

 

(b)                                 In case at any time
the Trust or the Holders of at least ten percent (10%) in principal amount of
the Outstanding Notes shall have requested the Indenture Trustee to call a
meeting of Holders for any purpose specified in Section 10.01, by
written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Indenture Trustee shall not have made the first
publication or mailing of the notice of such meeting within twenty-one (21)
days after receipt of such request or shall not thereafter proceed to cause the
meeting to be held as provided herein, then the Trust or the Holders of Notes
in the amount above specified, as the case may be, may determine the
time and the place in The City of New York and may call

 

72

 

such meeting for such purposes by giving notice thereof as provided in
paragraph (a) of this Section.

 

SECTION 10.03. Persons Entitled to Vote at Meetings. To be entitled to vote at any meeting of
Holders, a Person shall be (a) a Holder of one or more Outstanding Notes;
or (b) a Person appointed by an instrument in writing as proxy for a
Holder or Holders of one or more Outstanding Notes by such Holder or Holders.
The only Persons who shall be entitled to be present or to speak at any meeting
of Holders shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Indenture Trustee and its counsel and any
representatives of the Trust and its counsel.

 

SECTION 10.04. Quorum; Action. The Persons entitled to
vote a majority in principal amount of the Outstanding Notes shall constitute a
quorum for a meeting of Holders; provided,
however, that if any action is to be taken at such meeting with
respect to a consent or waiver which this Indenture expressly provides may be
given by the Holders of not less than a majority in principal amount of the Outstanding Notes, the Persons
entitled to vote a majority in
principal amount of the Outstanding Notes shall constitute a quorum. In the
absence of a quorum within thirty (30) minutes after the time appointed for any
such meeting, the meeting shall, if convened at the request of Holders, be
dissolved. In any other case the meeting may be adjourned for a period of
not less than ten (10) days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any
such adjourned meeting, such adjourned meeting may be further adjourned
for a period of not less than ten (10) days as determined by the chairman
of the meeting prior to the adjournment of such adjourned meeting. Notice of
the reconvening of any adjourned meeting shall be given as provided in Section 10.02(a),
except that such notice need be given only once not less than five (5) days
prior to the date on which the meeting is scheduled to be reconvened. Notice of
the reconvening of an adjourned meeting shall state expressly the percentage,
as provided above, of the principal amount of the Outstanding Notes which shall
constitute a quorum.

 

Except as limited by Section 8.02(a) and
Section 6.02, any resolution presented to a meeting or adjourned
meeting duly reconvened at which a quorum is present as aforesaid may be
adopted only by the affirmative vote of the Holders of a majority in principal
amount of the Outstanding Notes; provided,
however, that, except as limited by Section 8.02(a) and
Section 6.02, any resolution with respect to any consent or waiver
which this Indenture expressly provides may be given by the Holders of not
less than a majority in principal amount of the Outstanding Notes may be
adopted at a meeting or an adjourned meeting duly convened and at which a
quorum is present as aforesaid only by the affirmative vote of the Holders of
not less than a majority in principal amount of the Outstanding Notes; and provided, further, that, except as limited
by Section 8.02(a) and Section 6.02, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage,
which is less than a majority, in principal amount of the Outstanding Notes may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Notes.

 

73

 

Notwithstanding the preceding two paragraphs,
any request, demand, authorization, direction, notice, consent, waiver or other
action of Holders under this Indenture or the Notes may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee and, when
it is expressly required, to the Trust. The percentage of principal amount of
the Outstanding Notes held by the Holders delivering such instruments which is
required to approve any such action shall be the same as the percentage
required for approval at a duly convened meeting of Holders.

 

Any resolution passed or decision taken at
any meeting of Holders duly held or by duly executed instrument in accordance
with this Section shall be binding on all Holders of the Notes, whether or
not such Holders were present or represented at the meeting.

 

SECTION 10.05. Determination of Voting Rights; Conduct and
Adjournment of Meetings.

 

(a)                                  Notwithstanding any
other provisions of this Indenture, the Indenture Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders
in regard to proof of the holding of Notes and of the appointment of proxies
and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Notes shall be proved in the manner specified
in Section 1.04 and the appointment of any proxy shall be proved in
the manner specified in Section 1.04. Such regulations may provide
that written instruments appointing proxies, regular on their face, may be
presumed valid and genuine without the proof specified in Section 1.04
or other proof.

 

(b)                                 The Indenture Trustee
shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Trust or by Holders
as provided in Section 10.02(b), in which case the Trust or the
Holders calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by vote of the Persons entitled to vote a majority
in principal amount of the Outstanding Notes represented at the meeting.

 

(c)                                  At any meeting, each
Holder or proxy shall be entitled to one vote for each $1,000 of principal
amount of Notes held or represented by him, her or it; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Note challenged as not
Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder or
proxy.

 

(d)                                 Notwithstanding any
other provision herein to the contrary, any meeting of Holders duly called
pursuant to Section 10.02 at which a quorum is present may be
adjourned from time to time by Persons entitled to vote a majority in principal
amount of the Outstanding

 

74

 

Notes represented at the meeting; and the meeting may be held as
so adjourned without further notice.

 

SECTION 10.06. Counting Votes and Recording Action of Meetings. The
vote upon any resolution submitted to any meeting of Holders shall be by
written ballots on which shall be subscribed the signatures of the Holders or
of their representatives by proxy and the principal amounts and serial numbers
of the Outstanding Notes held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes
cast at the meeting for or against any resolution and who shall make and file
with the secretary of the meeting their verified written reports in triplicate
of all votes cast at the meeting. A record, at least in triplicate, of the
proceedings of each meeting of Holders shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one
or more persons having knowledge of the facts setting forth a copy of the
notice of the meeting and showing that said notice was given as provided in Section 10.02
and, if applicable, Section 10.04. Each copy shall be signed and
verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Trust, and another to the
Indenture Trustee to be preserved by the Indenture Trustee, the latter to have
attached thereto the ballots voted at the meeting. Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

 

ARTICLE 11

NOTES IN FOREIGN CURRENCIES

 

SECTION 11.01. Notes in Foreign Currencies. In the
absence of any provision to the contrary in the form of Notes, whenever
this Indenture provides for (a) any action by, or the determination of any
of the rights of, the Holders of Notes if not all of the Notes are denominated
in the same currency, or (b) any distribution to the Holders of Notes of
any amount in respect of any Note denominated in a currency other than Dollars,
then all foreign denominated Notes shall be treated for any such action,
determination of rights or distribution as that amount of Dollars that could be
obtained for such amount on such reasonable basis of exchange and as of the
Regular Record Date with respect to such Notes for such action, determination
of rights or distribution (or, if there shall be no applicable Regular Record
Date, such other date reasonably proximate to the date of such action,
determination of rights or distribution) as the Trust may specify in a
written notice to the Indenture Trustee or, in the absence of such written
notice, as the Indenture Trustee may determine.

 

75

 

EXHIBIT A-1

FORM OF
RETAIL GLOBAL NOTE

 

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

 

Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation (“DTC”), to the trust or
its agent for registration of transfer, exchange or payment, and unless any
certificate issued is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

 

PROTECTIVE
LIFE SECURED TRUST
[       ]-[     ]

INTERNOTE®

 

	
  REGISTERED NUMBER:

  	
   

  	
  CUSIP

  
	
   

  
	
  ORIGINAL ISSUE DATE:

  	
   

  	
   

  	
  PRINCIPAL AMOUNT:  $

  	
   

  
	
   

  
	
  INTEREST RATE:

  	
   

  	
  %

  	
   

  	
  STATED MATURITY DATE:

  	
   

  
	
   

  
	
  ISSUE PRICE (as a percentage of the Principal Amount):

  	
   

  	
  INTEREST PAYMENT FREQUENCY (check applicable):

  
	
   

  	
   

  	
  o Monthly

  	
   

  	
  o Quarterly

  
	
   

  	
  %

  	
   

  	
  o Semi-annual

  	
   

  	
  o Annual

  
	
   

  
	
  Collateral Held in the
  Trust:  Protective Life Insurance
  Company Funding

  Agreement No. •, all proceeds, rights and books and records related

  thereto.

  
	
   

  
	
  Specified Currency:  U.S.
  Dollars

  
														

 

 

REPAYMENT RIGHT:  o  Yes    o  No   (If yes, the
Holder of this Note has the right to the repayment of this Note on any 

	
  Interest Payment Date after

  	
   

  	
  )

  

 

REDEMPTION RIGHT:  o  Yes    o  No   (If yes, the
Trust will redeem this Note on the date and to the extent that the Funding
Agreement (as defined in the Indenture) has been redeemed by Protective Life
Insurance Company (“Protective Life”). Protective Life has the right to redeem
the Funding Agreement, in full or in part, on any date after
                   
(such date, the “Initial Redemption Date”))

 

	
   

  	
  [INITIAL REDEMPTION

  PERCENTAGE:

                                           ]

  	
   

  	
  [ANNUAL REDEMPTION

  PERCENTAGE REDUCTION:

                                              ]

  

 

 

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

 

Trust Put Limitation: 

 

MINIMUM DENOMINATIONS:  
$                              (if
other than $1,000)

 

SECURITIES EXCHANGE LISTING:  o  Yes    o  No  (If yes, indicate
name of securities exchange

 

             )

 

A-1-2

 

The Protective Life Secured
Trust designated above, a trust formed under the laws of the State of Delaware
(the “Trust”), for value received, hereby promises to pay to Cede &
Co., or its registered assigns, the Principal Amount on the Stated Maturity
Date, and to pay interest thereon, until the Principal Amount is paid or duly
provided for, from and including the Original Issue Date or, in the case of a
Note issued upon registration of transfer or exchange, from and including the
most recent Interest Payment Date to which interest has been paid or duly
provided for, on each Interest Payment Date and the Maturity Date determined as
follows:  the Interest Payment Dates for
a Note that provides for monthly interest payments shall be the fifteenth day
of each calendar month, beginning in the first calendar month following the
month in which the Note was issued; in the case of a Note that provides for
quarterly interest payments, the Interest Payment Dates shall be the fifteenth
day of every third calendar month, beginning in the third calendar month
following the month in which the Note was issued; in the case of a Note that
provides for semi-annual interest payments, the Interest Payment Dates shall be
the fifteenth day of every sixth calendar month, beginning in the sixth
calendar month following the month in which the Note was issued; and in the
case of a Note that provides for annual interest payments, the Interest Payment
Date shall be the fifteenth day of every twelfth calendar month, beginning in
the twelfth calendar month following the month in which the Note was issued. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. The
first payment of interest for a Note will be made on the first Interest Payment
Date following the Original Issue Date of such Note.

 

Interest payments will be in
the amount of interest accrued from, and including, the next preceding Interest
Payment Date in respect of which interest has been paid or duly provided for
or, if no interest has been paid or duly provided for, from the Original Issue
Date specified above, to, but excluding, the Interest Payment Date or Maturity
Date, as the case may be. If the Maturity Date or an Interest Payment Date
falls on a day which is not a Business Day, principal or interest payable with
respect to such Maturity Date or Interest Payment Date will be paid on the next
succeeding Business Day with the same force and effect as if made on such
Maturity Date or Interest Payment Date, as the case may be, and no
additional interest shall accrue for the period from and after such Maturity
Date or Interest Payment Date. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person (as defined in the Indenture) in whose name
this Note (or one or more predecessor Notes) is registered at the close of
business on the Regular Record Date for such Interest Payment Date, which
Regular Record Date shall be the fifteenth calendar day, whether or not a
Business Day, immediately preceding the related Interest Payment Date; provided, however, that interest payable
on any Maturity Date shall be payable to the Person to whom principal is
payable. Any such interest not so punctually paid or duly provided for shall be
payable as provided in the Indenture. As used herein, the term “Business Day”
means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York.

 

The principal of and interest
on this Note are payable in immediately available funds in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts at the corporate trust office of
the Paying Agent (as defined in the Indenture). The Paying Agent shall pay
principal, interest and other amounts due on this Note to Cede & Co.,
as nominee for DTC, in accordance with existing arrangements between the Paying
Agent and the Depositary.

 

A-1-3

 

REFERENCE IS MADE TO THE
FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH SHALL
HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH AT THIS PLACE.

 

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

 

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

 

 

	
   

  	
  THE PROTECTIVE LIFE
  SECURED TRUST

  SPECIFIED ON THE FACE OF THIS NOTE

  
	
   

  
	
   

  
	
   

  	
  By: 
  Wilmington Trust Company, not in its individual

  capacity but solely as Delaware Trustee.

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

A-1-4

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

 

	
  Dated: Original Issue Date

  
	
   

  
	
   

  
	
   

  	
  The Bank of New York,

  as Indenture Trustee

  
	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

A-1-5

 

[Reverse of
Note]

 

This Note is one of a duly
authorized issue of Notes of the Protective Life Secured Trust designated above
(the “Trust”), issued under the Indenture, dated the Original Issue Date
specified in the Pricing Supplement (the “Indenture”), between The Bank of New
York (the “Indenture Trustee”) and the Trust. Capitalized terms used and not
otherwise defined herein shall have the meanings assigned to them in the
Indenture.

 

This Note is not subject to any
sinking fund.

 

IF NO REPAYMENT RIGHT IS SET
FORTH ON THE FACE HEREOF, THIS NOTE MAY NOT BE REPAID AT THE OPTION OF THE
HOLDER HEREOF PRIOR TO THE STATED MATURITY DATE. If a Repayment Right is
granted on the face of this Note, this Note may be subject to repayment at
the option of the Holder on any Interest Payment Date on and after the date, if
any, indicated on the face hereof (each, a “Repayment Date”). On any Repayment
Date, unless otherwise specified on the face hereof, this Note shall be
repayable in whole or in part in increments of $1,000 at the option of the
Holder hereof at a repayment price equal to 100% of the Principal Amount to be
repaid, together with interest thereon payable to the date of repayment. For
this Note to be repaid in whole or in part at the option of the Holder
hereof, this Note must be received by the Indenture Trustee, with the form entitled
“Option to Elect Repayment,” below, duly completed. Exercise of such repayment
option by the Holder hereof shall be irrevocable.

 

IF NO REDEMPTION RIGHT IS SET
FORTH ON THE FACE HEREOF, THIS NOTE MAY NOT BE REDEEMED PRIOR TO THE
STATED MATURITY DATE, EXCEPT AS SET FORTH IN THE INDENTURE. If a Redemption
Right is set forth on the face of this Note, the Trust shall elect to redeem
this Note on the Interest Payment Date after the Initial Redemption Date set
forth on the face hereof on which the Funding Agreement is to be redeemed in
whole or in part by Protective Life Insurance Company (“Protective Life”)
(each, a “Redemption Date”), in which case this Note must be redeemed on such
Redemption Date in whole or in part, as applicable, in increments of $1,000 at
the applicable Redemption Price (as defined below), together with unpaid
interest accrued thereon to the applicable Redemption Date. “Redemption Price”
shall mean an amount equal to the Initial Redemption Percentage (as adjusted by
the Annual Redemption Percentage Reduction, if applicable) multiplied by the
unpaid Principal Amount of this Note to be redeemed. The unpaid Principal
Amount of this Note to be redeemed shall be determined by multiplying (1) the
Outstanding Principal Amount of this Note by (2) the quotient derived by
dividing (A) the outstanding principal amount of the Funding Agreement to
be redeemed by Protective Life, by (B) the outstanding principal amount of
the Funding Agreement. The Initial Redemption Percentage, if any, applicable to
this Note shall decline at each anniversary of the Initial Redemption Date by
an amount equal to the applicable Annual Redemption Percentage Reduction, if
any, until the Redemption Price is equal to 100% of the Principal Amount
thereof to be redeemed. Notice must be given not more than 75 nor less than 30
calendar days prior to the proposed redemption date. In the event of redemption
of this Note in part only, a new Note for the unredeemed portion hereof
shall be issued in the name of the Holder hereof upon the surrender hereof. If
less than all of the Notes are redeemed, the Depositary will select by lot the
amount of the interest of each direct participant in the Trust to be redeemed. Unless
otherwise specified herein, the Trust may not redeem the Notes after the
date that is thirty (30) days prior to the Stated Maturity Date.

 

A-1-6

 

If an Event of Default shall
occur with respect to the Notes, the principal of all the Notes may be
declared due and payable, or may be automatically accelerated, as the case
may be, in the manner and with the effect provided in the Indenture.

 

If (1) a Tax Event
(defined below) as to the Funding Agreement occurs and (2) Protective Life
redeems the Funding Agreement in whole or in part, the Trust will redeem the
Notes, subject to the terms and conditions of Section 2.04 of the
Indenture, at the Tax Event Redemption Price (defined below) together with
unpaid interest accrued thereon to the applicable redemption date. “Tax Event”
means that Protective Life shall have received an opinion of independent legal
counsel stating in effect that as a result of (a) any amendment to, or
change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision or
taxing authority therefor or therein or (b) any amendment to, or change
in, an interpretation or application of any such laws or regulations by any
governmental authority in the United States, which amendment or change is
enacted, promulgated, issued or announced on or after the date the Funding
Agreement is entered into, there is more than an insubstantial risk that (i) the
Trust is, or will be within 90 days of the date thereof, subject to U.S.
federal income tax with respect to interest accrued or received on the Funding
Agreement or (ii) the Trust is, or will be within 90 days of the date
thereof, subject to more than a de minimis amount of taxes, duties or other
governmental charges. “Tax Event Redemption Price” means an amount equal to the
unpaid Principal Amount of this Note to be redeemed. The unpaid Principal
Amount of this Note to be redeemed shall be determined by multiplying (1) the
Outstanding Principal Amount of this Note by (2) the quotient derived by
dividing (A) the outstanding principal amount to be redeemed by Protective
Life of the Funding Agreement by (B) the outstanding principal amount of
the Funding Agreement.

 

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

 

No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair
the obligation of the Trust, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.

 

No recourse shall be had for
the payment of the principal of or the interest on this Note, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against the Nonrecourse
Parties, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or

 

A-1-7

 

penalty or otherwise, all such personal
liability being, by the acceptance hereof and as part of the consideration
for issue hereof, expressly waived and released.

 

This Note or portion hereof may not
be exchanged for Definitive Notes except in the limited circumstances provided
for in the Indenture. The transfer or exchange of Definitive Notes shall be
subject to the terms of the Indenture.

 

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

 

As provided in the Indenture
and subject to certain limitations therein set forth (including, in the case of
a Global Note, certain additional limitations), the transfer of this Note is
registrable in the Register, upon surrender of this Note for registration of
transfer at the Place of Payment, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Administrator and the
Registrar duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes of like tenor, of authorized
denominations and for the same aggregate Principal Amount, will be issued to
the designated transferee or transferees.

 

As provided in the Indenture
and subject to certain limitations (including, in the case of any Global Note,
certain additional limitations) therein set forth, this Note is exchangeable
for a like aggregate Principal Amount of Notes of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

 

No service charge will be made
for any registration of transfer or exchange of this Note, but the Trust may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

 

Prior to due presentment for
registration of transfer of this Note, the Trust, the Indenture Trustee, the
Registrar, the Paying Agent, any Agent, and any other agent of the Trust or the
Indenture Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein
provided (subject to Section 2.9 of the Indenture) and for all
other purposes, whether or not this Note be overdue, and, except as otherwise
required by applicable law, none of the Trust, the Indenture Trustee, the
Registrar, the Paying Agent, any Agent, and any other agent of the Trust or the
Indenture Trustee shall be affected by notice to the contrary.

 

The Notes are being issued by
means of a book-entry-only system with no physical distribution of certificates
to be made except as provided in the Indenture. The book-entry system
maintained by DTC will evidence ownership of the Notes, with transfers of
ownership effected on the records of DTC and its participants pursuant to rules and
procedures established by DTC and its participants. The Trust and the Indenture
Trustee will recognize Cede & Co., as nominee of DTC, while the
registered owner of the Notes, as the Holder of the Notes for all purposes,
including payment of principal and interest, notices and voting. Transfer of
principal and interest to participants of DTC will be the responsibility of
DTC, and transfer of principal and interest to beneficial owners of the Notes
by participants of DTC will be the responsibility of such participants and
other nominees of such beneficial owners. So long as the book-entry system is
in effect, the selection of any Notes to be redeemed or repaid will be
determined by

 

A-1-8

 

DTC pursuant to rules and procedures
established by DTC and its participants. Neither the Trust nor the Indenture
Trustee will be responsible or liable for such transfers or payments or for
maintaining, supervising or reviewing the records maintained by DTC, its
participants or persons acting through such participants.

 

No Additional Amounts will be
paid with respect to any payment of principal of (or premium, if any, on) or
interest, if any, on this Note to any Holder.

 

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

 

A-1-9

 

ASSIGNMENT

 

 

	
  FOR VALUE
  RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

  
	
                                                                                                                                                                                    

  	
  .

  
	
   

  
	
  [PLEASE PRINT OR TYPEWRITE
  NAME AND ADDRESS

  INCLUDING ZIP CODE, OF ASSIGNEE]

  
	
   

  
	
   

  	
   

  
	
                                                                                                                                                              

  	
   

  
	
                                                                                                                                                              

  	
   

  
	
   

  
	
  Please
  Insert Social Security or Other

  Identifying Number of Assignee:

  	
   

  	
   

  
	
   

  
	
  the within Note and all rights thereunder,
  hereby irrevocably constituting and appointing
                                           
  Attorney to transfer said Note in the Register, with full power of
  substitution in the premises.

  
					

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  Guaranteed)

  
					

 

NOTICE: The signature to this assignment must
correspond with the name as it appears upon the face of the within Note in
every particular, without alteration or enlargement or any change whatever and
must be guaranteed.

 

A-1-10

 

OPTION TO
ELECT REPAYMENT

 

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

	
   

  
	
   

  
	
   

  

 

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

 

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

 

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

 

 

	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  NOTICE: The signature on this Option to
  Elect Repayment must 

  
	
   

  	
   

  	
  correspond with the name as written upon
  the face of this Note in 

  
	
   

  	
   

  	
  every particular, without alteration or
  enlargement or any change 

  
	
   

  	
   

  	
  whatever.

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Please print name and

  address including zip code)

  
											

 

 

SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER: 

 

A-1-11

 

SURVIVOR’S
OPTION RIDER

 

Unless the Notes have been
declared due and payable prior to their maturity by reason of any Event of
Default under the Indenture, or have been previously redeemed or otherwise
repaid, the authorized Representative (as defined below) of a deceased
Beneficial Owner (as defined below) of that Note shall have the option to elect
repayment of such Notes following the death of the Beneficial Owner (a “Survivor’s
Option”). The Survivor’s Option may not be exercised unless the Notes to
be repaid were held by the Beneficial Owner or the estate of that Beneficial
Owner for a period beginning at least 6 months immediately prior to such election.
“Beneficial Owner” as used in this Survivor’s Option Rider means, with respect
to a Note, the person who has the right, immediately prior to such person’s
death, to receive the proceeds from the disposition of that Note, as well as
the right to receive payments on that Note.

 

Upon (i) the valid
exercise of the Survivor’s Option and the proper tender of the Notes for
repayment by or on behalf of the person that has authority to act on behalf of
the deceased Beneficial Owner of such Notes under the laws of the appropriate
jurisdiction (including, without limitation, the personal representative or
executor of the deceased Beneficial Owner or the surviving joint owner of the
deceased Beneficial Owner) (the “Representative”) and (ii) the tender and
acceptance of that portion of the Funding Agreement equal to the amount of the
portion of the Note to be redeemed, the Trust shall repay the Notes (or portion
thereof)  at a price equal to 100% of the
Principal Amount of the deceased Beneficial Owner’s beneficial interest in such
Note plus accrued and unpaid interest to the date of such repayment. However,
the Trust shall not be obligated to repay:

 

•                  beneficial
ownership interests in Notes exceeding the greater of $2,000,000 or 2% (or such
other amounts, as specified in the Pricing Supplement) in aggregate principal
amount for all notes then outstanding under the Protective Life Secured
InterNotes® program as of the end of the most recent calendar year (the “Annual
Put Limitation”);

 

•                  on
behalf of an individual deceased Beneficial Owner, any beneficial ownership
interest in all notes issued under the Protective Life Secured InterNotes®
program that exceeds $250,000 (or such other amounts, as specified in the
Pricing Supplement) in any calendar year (the “Individual Put Limitation”); or

 

•                  beneficial
ownership interests in Notes of the Trust exceeding the amount specified on the
face hereof for the Trust Put Limitation, if any (the “Trust Put Limitation”).

 

The Trust shall not make
principal repayments pursuant to exercise of the Survivor’s Option in amounts
that are less than $1,000, and, in the event that the limitations described in
the preceding sentence would result in the partial repayment of any Note, the
Principal Amount of such Note remaining Outstanding after repayment must be at
least $1,000 (the minimum authorized denomination of the Notes).

 

An otherwise valid election to
exercise the Survivor’s Option may not be withdrawn.

 

Each Note (or portion thereof)
that is elected for exercise of the Survivor’s Option will be accepted in the
order that elections are received by the Administrator, except for any Notes
(or portion thereof) the acceptance of which would contravene (i) the
Annual Put Limitation, (ii) the Individual Put Limitation, if applied, or (iii) the
Trust Put Limitation. Any Note (or portion

 

A-1-12

 

thereof) accepted for repayment pursuant to
exercise of the Survivor’s Option shall be repaid on the first Interest Payment
Date that occurs 20 or more calendar days after the date of such acceptance. If,
as of the end of any calendar year, the aggregate principal amount of all notes
(or portions thereof) issued under the Protective Life Secured InterNotes®
program that have been tendered pursuant to the valid exercise of the Survivor’s
Option during such year has exceeded the Annual Put Limitation or the
Individual Put Limitation, for such year, any exercise(s) of the Survivor’s
Option with respect to Notes (or portions thereof) not accepted during such calendar
year, because such acceptance would have contravened any such limitation, if
applied, shall be deemed to be tendered in the following calendar year in the
order all such notes (or portions thereof) were originally tendered. In the
event that a Note (or any portion thereof) tendered for repayment pursuant to
valid exercise of the Survivor’s Option is not accepted, the Administrator
shall deliver a notice by first-class mail to the Depositary that states
the reason such Note (or portion thereof) has not been accepted for payment.

 

In order to obtain repayment
through exercise of the Survivor’s Option with respect to any Note (or portion
thereof), the Representative must provide the following items to the broker or
other entity through which the beneficial interest in the Notes is held by the
deceased Beneficial Owner: (i) a written instruction to such broker or
other entity to notify the Depositary of the Representative’s desire to obtain
repayment through the exercise of the Survivor’s Option; (ii) appropriate
evidence satisfactory to the Administrator that (A) the deceased was the
Beneficial Owner of such Notes at the time of death and the interest in such
Notes was owned by the deceased Beneficial Owner or his or her estate for a
period beginning at least six months immediately prior to the request for
repayment, (B) the death of such Beneficial Owner has occurred, and the
date of such death, and (C) the Representative has authority to act on
behalf of the deceased Beneficial Owner; (iii) if the interest in such
Notes is held by a nominee of the deceased Beneficial Owner, a certificate
satisfactory to the Administrator from such nominee attesting to the deceased’s
beneficial ownership of such Notes; (iv) a written request for repayment
signed by the Representative, with the signature guaranteed by a member firm of
a registered national securities exchange or of the National Association of
Securities Dealers, Inc. or a commercial bank or trust company having an
office or correspondent in the United States; (v) if applicable, a
properly executed assignment or endorsement; (vi) tax waivers and such
other instruments or documents that the Administrator reasonably requires in
order to establish the validity of the beneficial ownership of the Notes and
the claimant’s entitlement to payment; and (vii) any additional
information the Administrator requires to evidence satisfaction of any
conditions to the exercise of such Survivor’s Option or to document beneficial
ownership or authority to make the election and to cause the repayment of such
Notes. Such broker or other entity shall then deliver each of these items to
the direct participant of the Depositary, such direct participant being the
entity that holds the beneficial interest in the Notes on behalf of the deceased
Beneficial Owner, together with evidence satisfactory to the Administrator from
the broker or other entity stating that it represents the deceased Beneficial
Owner. Such direct participant shall then deliver such items to the Indenture
Trustee. Such direct participant shall be responsible for disbursing any
payments it receives from the Depositary pursuant to exercise of the Survivor’s
Option to the appropriate Representative. All questions, other than with
respect to the right to limit the aggregate Principal Amount of Notes as to
which exercises of the Survivor’s Option shall be accepted in any one calendar
year or as to the Notes or as to the eligibility or validity of any exercise of
the Survivor’s Option, will be determined by the Administrator, in its sole
discretion, which determination shall be final and binding on all parties.

 

A-1-13

 

The death of a person holding a
beneficial interest in a Note as a joint tenant or tenant by the entirety with
another person, or as a tenant in common with the deceased owner’s spouse, will
be deemed the death of the Beneficial Owner of that Note, and the entire
Principal Amount of the Note so held shall be subject to repayment by the Trust
upon request. However, the death of a person holding a beneficial interest in a
Note as tenant in common with a person other than such deceased owner’s spouse
will be deemed the death of a Beneficial Owner only with respect to such
deceased person’s ownership interest in the Note.

 

The death of a person who,
during his or her lifetime, was entitled to substantially all of the beneficial
ownership interests in a Note will be deemed the death of the Beneficial Owner
of such Note for purposes of the Survivor’s Option, regardless of whether that
Beneficial Owner was the registered holder of the Note, if such beneficial
ownership interest can be established to the satisfaction of the Administrator.
A beneficial ownership interest will be deemed to exist in typical cases of
nominee ownership, ownership under the Uniform Transfers to Minors Act or
Uniform Gifts to Minors Act, community property or other joint ownership
arrangements between a husband and wife. In addition, a beneficial ownership
interest will be deemed to exist in custodial and trust arrangements where one
person has all of the beneficial ownership interests in the Note during his or
her lifetime.

 

A-1-14

 

PROTECTIVE
LIFE SECURED

INTERNOTES®

 

FORM OF
NOTICE OF ELECTION TO EXERCISE SURVIVOR’S OPTION

 

o                                   By
checking this box, the undersigned represents that: (1) he/she is the
authorized representative of the deceased Beneficial Owner identified below; (2) (a) the
deceased was the Beneficial Owner of the principal amount of Protective Life
Secured InterNotes® listed below at the date of his or her death and the
interest in such Notes was owned by the deceased or his or her estate for a
period beginning at least six months immediately prior to this request for
repayment, (b) the death of the Beneficial Owner listed below has occurred
and (c) the undersigned representative has authority to act on behalf of
the deceased Beneficial Owner; and (3) subject to the aggregate
limitations on the amount of Protective Life Secured InterNotes® that may be
tendered in any calendar year, he/she hereby elects to tender the principal
amount of Protective Life Secured InterNotes® set forth below for repayment by
the Trust for a price equal to [100]%
(or such lesser amount as may be accepted for repayment) of the Principal
Amount of the beneficial interest of the deceased Beneficial Owner plus accrued
interest to the date of repayment.

 

The deceased Beneficial Owner held the
Principal Amount of Protective Life Secured InterNotes® to be tendered as
(check one):

 

o                                    a sole Beneficial
Owner, a joint tenant or a tenant by the entirety with another or others, a
tenant in common with a spouse or an individual entitled to substantially all
of the beneficial interest.

 

o                                    a tenant in common
with another (other than a spouse). If applicable please provide the amount of
interest held by the deceased Beneficial Owner. $

 

Full name of deceased Beneficial Owner (please attach death certificate): 

 

If applicable, full name of the nominee of
the deceased Beneficial Owner (please
attached a certificate attesting to the deceased’s ownership of the beneficial
interest in the notes):

 

Principal amount of Protective Life Secured
InterNotes® being tendered for repayment (amount
must be at least $1,000):

 

 

 

The Bank of New York, as Indenture Trustee on
behalf of the Trust, has the right to reject tenders of Protective Life Secured
InterNotes® if a properly executed election is not submitted or if it fails to
receive any tax or additional information that is required to document adherence
to any conditions precedent, ownership or authority to make the election.

 

A-1-15

 

THIS
NOTICE OF ELECTION MAY NOT BE WITHDRAWN AND INTERNOTES® SUBJECT TO THIS
NOTICE OF ELECTION MAY NOT BE TRANSFERRED PRIOR TO THE DATE OF REPAYMENT

 

PLEASE SIGN
HERE

 

(Must be signed by authorized
representative(s) of deceased Beneficial Owner. If signature is by a trustee,
executor, administrator, guardian, attorney-in-fact, officer of a corporation
or another person acting in a fiduciary capacity, please set forth full title).

 

	
  Signature(s)
  of Authorized Representative(s):

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
  , 20

  	
   

  	
   

  
	
   

  
	
  Name(s):

  	
   

  
	
   

  
	
   

  
	
  (Please
  Print)

  
	
   

  
	
  Capacity (full title):

  	
   

  
	
   

  
	
  Address:

  	
   

  
	
   

  
	
  (Include Zip
  Code)

  
	
   

  
	
  Area Code(s) and Telephone Number(s):

  	
   

  
	
   

  
							

GUARANTEE OF
SIGNATURE(S)

 

(Must be signed by authorized representative
of: (1) a member firm of a registered national securities exchange or the
National Association of Securities Dealers, Inc., or (2) a commercial
bank or trust company having an office or correspondent in the United States.)

	
   

  
	
  Name of Firm:

  	
   

  
	
   

  
	
  Authorized Signature:

  	
   

  
	
   

  
	
  Name:

  	
   

  
	
   

  
	
  (Please
  Print)

  
	
   

  
	
  Title:

  	
   

  
	
   

  
	
  Address:

  	
   

  
						

 

A-1-16

 

	
  (Include Zip
  Code)

  
	
   

  
	
  Area Code(s) and Telephone Number(s):

  	
   

  
	
   

  
	
  Dated: 

  	
   

  	
  , 20

  	
   

  	
   

  
						

 

A-1-17

 

EXHIBIT A-2

FORM OF INSTITUTIONAL GLOBAL NOTE

 

CUSIP NO.           

 

PROTECTIVE LIFE SECURED
TRUST [     ]-[   ]

SECURED MEDIUM-TERM NOTE

 

REGISTERED FACE AMOUNT:
                

No. 

 

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

 

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

 

 

Principal Amount: $

 

(or principal amount of foreign or composite
currency)

 

Original Issue Date:

 

Price to Public:

 

Stated Maturity Date:

 

Settlement Date and Time:

 

Securities Exchange
Listing:  o Yes  o No. If yes, indicate name(s) of
Securities Exchange(s)

 

                                             .

 

Depositary:

 

Authorized Denominations:

 

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

 

Additional Amounts to be Paid: o  Yes   o  No.

 

Interest Rate or Formula:

 

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

 

Interest Rate:

 

Interest Payment Frequency:

 

o
Monthly            o Quarterly

 

o Semi-annually  o Annually

 

Additional/Other Terms:

 

Amortizing Note: o Yes o No. If yes,

 

Amortization schedule or formula:

 

Additional/Other Terms:

 

Discount Note: o Yes o No. If yes,

 

Registered Face Amount:

 

Total Amount of Discount:

 

Yield to Maturity:

 

Additional/Other Terms:

 

Redemption Provisions: o Yes  o No. If
yes,

 

Initial Redemption Date:

 

Initial Redemption Percentage:

 

Annual Redemption Percentage Reduction, if
any:

 

Additional/Other Terms:

 

Repayment Provisions: o
Yes  o No. If
yes,

 

Optional Repayment Date(s):

 

Additional/Other Terms:

 

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

 

Interest Rate:

 

 

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

 

CD Rate o

 

Commercial Paper Rate o

 

Federal Funds Rate o

 

LIBOR o

 

o LIBOR Reuters Page:

 

o LIBOR Telerate Page:

 

Designated LIBOR Currency:

 

Treasury Rate (other than
Constant Maturity Treasury Rate) o

 

Constant Maturity Treasury Rate o

 

Designated CMT Telerate
Page:

 

If Telerate Page 7052:

 

o
Weekly Average

 

o
Monthly Average

 

Designated CMT Maturity
Index:

 

Prime Rate o

 

Other o

 

Other Base Rate:

 

Inverse Floating Rate Note o

 

Fixed Interest Rate:

 

Floating Rate/Fixed Rate o

 

Fixed Interest Rate:

 

Fixed Rate Commencement
Date:

 

Index Maturity:

 

Spread and/or Spread Multiplier, if any:

 

Initial Interest Rate, if any:

 

Initial Interest Reset Date:

 

Interest Reset Dates:

 

Rate Determination Date(s):

 

Interest Payment Frequency:

 

o
Monthly              o Quarterly

 

o Semi-Annually   o Annually

 

Maximum Interest Rate, if any:

 

Minimum Interest Rate, if any:

 

Additional/Other Terms:

 

Regular Record Date(s):

 

Sinking Fund:

 

Day Count Convention:

 

 

Computation of Interest:

 

o 30 over
360             o Actual over Actual

 

o Actual over
360       o Other
(See attached)

 

Specified Currency:

 

Exchange Rate Agent:

 

Calculation Agent:

 

Additional/Other Terms:

 

 

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

 

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

 

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

 

Except as provided in the following
paragraph, the Trust will pay interest on each Interest Payment Date specified
above, commencing with the first (1st) Interest Payment Date next
succeeding the Original Issue Date, and on the Maturity Date; provided that any payment of principal,
premium, if any, or interest to be made on any Interest Payment Date or on a
Maturity Date that is not a Business Day (or, if this Note is a LIBOR Note (as
defined in Section 3(d)(v)(D) on the reverse hereof), a day
that is also not a London Business Day (as hereinafter defined)) shall be made
on the next succeeding Business Day (or, if this Note is a LIBOR Note, on the
next succeeding Business Day that is also a London Business Day) with the same
force and effect as if made on such Interest Payment Date or such Maturity
Date, as the case may be, except that with respect to Interest Payment
Dates, other than the Maturity Date, if this Note is a LIBOR Note and such next
succeeding Business Day that is also a London Business Day falls in the next
calendar month, such payment shall be made on the Business Day that is also a
London Business Day immediately preceding the Interest Payment Date; provided that, in connection with Floating
Rate Notes, and except in the case of an Interest Payment Date that falls on a
Maturity Date, interest will continue to accrue to but excluding the date the
interest is paid. The term “London
Business Day” means a day other than a Saturday or Sunday on
which dealings

 

A-2-3

 

in deposits in U.S. Dollars are transacted, or with respect to any
future date are expected to be transacted in the London interbank market. Unless
otherwise specified above, the interest payable on each Interest Payment Date
or the Maturity Date will be the amount of interest accrued from and including
the Original Issue Date or from and including the last Interest Payment Date to
which interest has been paid or duly provided for, as the case may be, to,
but excluding, such Interest Payment Date or the Maturity Date, as the case may be.

 

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

 

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

 

Unless otherwise specified on the face
hereof, the Holder hereof will not be obligated to pay any administrative costs
imposed by banks in making payments in immediately available funds by the Trust.
Unless otherwise specified on the face hereof, any tax assessment or
governmental charge imposed upon payments hereunder, including, without
limitation, any withholding tax, will be borne by the Holder thereof.

 

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

 

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

 

A-2-4

 

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

 

 

	
   

  	
  THE PROTECTIVE LIFE SECURED TRUST

  SPECIFIED ON THE FACE OF THIS NOTE

  
	
   

  
	
  Dated: 
  Original Issue Date

  	
  By: Wilmington Trust Company, not in its
  individual

  capacity but solely as Delaware Trustee.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
						

 

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  As Indenture Trustee

  
	
   

  	
   

  
	
  Dated: 
  Original Issue Date

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-5

 

[REVERSE OF
NOTE]

 

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

 

Section 2. Currency.

 

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

 

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

 

A-2-6

 

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

 

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

 

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

 

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

 

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

 

(a)                                  Fixed
Rate Notes.

 

(i)                                                                                     If
this Note is specified on the face hereof as a “Fixed Rate Note,” for the
period from the Original Issue Date, or from the last Interest Payment Date to
which interest has been paid or duly provided for, as the case may be, the
interest rate hereon shall be at the rate per annum stated on the face hereof
until, but excluding the date on which the Principal Amount is paid or made
available for payment. Unless otherwise specified on the face hereof, the rate
of interest payable on this Note will not be adjusted.

 

A-2-7

 

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

 

(b)                                 Discount
Notes.

 

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

 

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

 

A-2-8

 

(c)                                  Amortizing
Notes.

 

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

 

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

 

(d)                                 Floating
Rate Notes.

 

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

 

(A)                              Unless specified
otherwise on the face hereof, Interest Reset Dates are as follows:  (1) in the case of Notes that reset
daily, each Business Day, (2) in the case of Notes that reset weekly,
other than Treasury Rate Notes, the Wednesday of each week, (3) in the
case of Treasury Rate Notes that reset weekly and except as provided below
under “Treasury Rate Notes,” the Tuesday of each week, (4) in the case of
Notes that reset monthly, the fifteenth (15th) day of each calendar
month, beginning in the first (1st) calendar month following the
month in which the Note was issued, (5) in the case of Notes that reset
quarterly, the fifteenth (15th) day of every third (3rd)
calendar month, beginning in the third (3rd) calendar month
following the month in which the Note was issued, (6) in the case of Notes
that reset semiannually, the fifteenth (15th) day of every sixth (6th)
calendar month, beginning in the sixth (6th) calendar month
following the month in which the Note was issued and (7)

 

A-2-9

 

in the case of Notes that reset annually, the
fifteenth (15th) day of every twelfth (12th) calendar
month, beginning in the twelfth (12th) calendar month following the
month in which the Note was issued.

 

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

 

(C)                                If this Note has more
than one Interest Reset Date, accrued interest will be calculated by
multiplying the Principal Amount of the Note specified on the face hereof by an
Accrued Interest Factor. The Accrued Interest Factor will be computed by adding
the interest factors calculated for each day in the Interest Reset Period for
which accrued interest is being calculated. The Interest Reset Period is the
period from each Interest Reset Date to, but not including, the following
Interest Reset Date. Unless otherwise specified on the face hereof, the
Interest Factor for each such day will be computed by dividing the interest
rate in effect on that day by 360, in the case of CD Rate Notes, Commercial
Paper Rate Notes, Federal Funds Rate Notes, LIBOR Notes and Prime Rate Notes. In
the case of Treasury Rate Notes and Constant Maturity Treasury Rate Notes, the
Interest Factor for each such day will be computed by dividing the interest
rate by the actual number of days in the year. The Interest Rate Basis shall be
set forth on the face hereof and shall be the Interest Rate Basis, as adjusted
in accordance with any Spread or Spread Multiplier and subject to any Maximum
Interest Rate or Minimum Interest Rate specified on the face hereof. Notwithstanding
Section 3(d)(i)(E) below, the Interest Factor will be
expressed as a decimal calculated to seven decimal places without rounding. For
purposes of making the foregoing calculation, the interest rate in effect on
any Interest Reset Date will be the applicable rate as reset on that date. Unless
otherwise specified on the face hereof, the interest rate that is effective on
the applicable Interest Reset Date will be determined on the applicable Rate
Determination Date and calculated on the applicable Calculation Date. Unless
otherwise specified on the face hereof, the interest rate in effect for each
day to and excluding the next Interest Reset Date will be the interest rate
that was in effect on the preceding Interest Reset Date. “Calculation Date”
means the date by which the Calculation Agent specified on the face hereof, is
to calculate

 

A-2-10

 

the interest rate which will be the earlier
of (1) the fifth (5th) Business Day after the related Rate
Determination Date, or if any such day is not a Business Day, the next Business
Day and (2) the Business Day preceding the applicable Interest Payment
Date or the Maturity Date.

 

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

 

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

 

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

 

(iii)                               If specified on the face
hereof, this Note may have either or both of a Maximum Interest Rate or
Minimum Interest Rate. If a Maximum Interest Rate is so designated, the
interest rate for a Floating Rate Note cannot ever exceed such Maximum Interest
Rate and in the event that the interest rate on any Interest Reset Date would
exceed such Maximum Interest Rate (as if no Maximum Interest Rate were in
effect) then the interest rate on such Reset Date shall be the Maximum Interest
Rate. If a Minimum Interest Rate is so designated, the interest rate for a

 

A-2-11

 

Floating Rate Note cannot ever be less than
such Minimum Interest Rate and in the event that the interest rate on any
Interest Reset Date would be less than such Minimum Interest Rate (as if no
Minimum Interest Rate were in effect) then the interest rate on such Reset Date
shall be the Minimum Interest Rate. Notwithstanding anything to the contrary
contained herein, the interest rate on a Floating Rate Note shall not exceed
the maximum interest rate permitted by applicable law.

 

(iv)                              All determinations of
interest by the Calculation Agent will, in the absence of manifest error, be
conclusive for all purposes and binding on the Trust, the Indenture Trustee and
the Holder of this Note and neither the Trust, the Indenture Trustee nor the
Calculation Agent shall have any liability to the Holder of this Note in
respect of any determination, calculation, quote or rate made or provided by
the Calculation Agent. Upon request of the Holder of this Note, the Calculation
Agent will provide the interest rate then in effect and, if determined, the
interest rate that will become effective on the next Interest Reset Date with
respect to this Note. The Calculation Agent will notify the Indenture Trustee,
Paying Agent, Registrar, the Trust and if this Note is listed on a stock
exchange, and the rules of such exchange so require, such exchange of each
determination of the interest rate, Initial Interest Period, Interest Reset
Period, and interest amount payable applicable to this Note promptly after such
determination is made. If the Calculation Agent is incapable or unwilling to
act as such or if the Calculation Agent fails duly to establish the interest
rate for any interest accrual period or to calculate the interest amount or any
other requirements, the Trust will appoint the Paying Agent or another leading
commercial bank to act as such in its place.

 

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

 

(A)                              CD Rate Notes. If
the Interest Rate Basis is the CD Rate, this Note shall be deemed to be a “CD
Rate Note.” A CD Rate Note will bear interest at the interest rate calculated
with reference to the CD Rate and the Spread or Spread Multiplier, if any. The
Calculation Agent will determine the CD Rate for each CD Rate Determination
Date by the Calculation Date pertaining to such CD Rate Determination Date. The
CD Rate Determination Date is the second (2nd) Business Day prior to
the Interest Reset Date for each Interest Reset Period. Unless otherwise
specified on the face hereof, “CD Rate” means the rate for negotiable
certificates of deposit having the Index Maturity specified on the face hereof
as published in H.15(519) under the heading “CDs (Secondary Market)” or, if not
so published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such CD Rate Determination Date, the CD

 

A-2-12

 

Rate for the Interest Reset Period will be
the rate on such date for negotiable certificates of deposit of the applicable
Index Maturity as published in the H.15 Daily Update under the heading “CDs
(Secondary Market).”  If such rate is not
yet published in either H.15(519) or the H.15 Daily Update by 3:00 p.m.,
New York City time, on such Calculation Date, then the CD Rate will be the
arithmetic mean of the secondary market offered rates as of 3:00 p.m., New
York City time, on such date, of three (3) leading nonbank dealers in
negotiable U.S. Dollar certificates of deposit in New York City selected by the
Calculation Agent after consultation with the Trust for negotiable certificates
of deposit of major United States money center banks of the highest credit
standing (in the market for negotiable certificates of deposit) with a
remaining maturity closest to the applicable Index Maturity in a denomination
of $5,000,000; provided, however,
that if the dealers selected as aforesaid by the Calculation Agent are not
quoting as mentioned above, the CD Rate for the applicable Interest Reset
Period will be the CD Rate for the immediately preceding Interest Reset Period.
If there was no such Interest Reset Period, the CD Rate shall be the Initial
Interest Rate. “H.15(519)” means the publication entitled “Statistical Release
H.15(519), Selected Interest Rates,” or any successor publication, published
weekly by the Board of Governors of the Federal Reserve System; and “H.15 Daily
Update” means the daily update of the Board of Governors of the Federal Reserve
System at http://www.federalreserve.gov/releases/h15/update/, or any successor
site or publication.

 

(B)                                Commercial Paper
Rate Notes. If the Interest Rate Basis is the Commercial Paper Rate, this
Note shall be deemed to be a “Commercial Paper Rate Note.” A Commercial Paper
Rate Note will bear interest for each Interest Reset Period at the interest
rate calculated with reference to the Commercial Paper Rate and the Spread or
Spread Multiplier, if any. The Calculation Agent will determine the Commercial
Paper Rate for each Commercial Paper Rate Determination Date by the Calculation
Date pertaining to such Commercial Paper Rate Determination Date. The
Commercial Paper Rate Determination Date is the second (2nd)
Business Day prior to the Interest Reset Date for each Interest Reset Date for
each Interest Reset Period. Unless otherwise specified on the face hereof, “Commercial
Paper Rate” means the Money Market Yield (calculated as described below) on the
Calculation Date of the rate for commercial paper having the Index Maturity
specified on the face hereof as such rate is published in H.15(519) under the
heading “Commercial Paper — Nonfinancial.” 
If such rate is not published by 3:00 p.m., New York City time, on
the Calculation Date pertaining to such Commercial Paper Rate Determination
Date, then the Commercial Paper Rate for the Interest Reset Period shall be the
Money Market Yield of the rate on such date for commercial paper having the
applicable Index Maturity as published in the H.15 Daily Update or such other
recognized electronic source used for the purpose of displaying such rate,
under the heading “Commercial Paper —

 

A-2-13

 

Nonfinancial.”  If such rate is not yet published in either
H.15(519) or H.15 Daily Update or such other recognized electronic source used
for the purpose of displaying this rate, by 3:00 p.m., New York City time,
on such Calculation Date, then the Commercial Paper Rate for the Interest Reset
Period shall be the Money Market Yield of the arithmetic mean of the offered
rates, as of 3:00 p.m., New York City time, on such date, of three (3) leading
dealers of commercial paper in New York City selected by the Calculation Agent
after consultation with the Trust for commercial paper having the applicable
Index Maturity placed for an industrial issuer whose bond rating is “AA” or the
equivalent, from a nationally recognized securities rating agency; provided, however, that if the dealers
selected by the Calculation Agent are not quoting offered rates as mentioned
above, the Commercial Paper Rate for the Interest Reset Period will be the same
as the Commercial Paper Rate for the immediately preceding Interest Reset
Period. If there was no such Interest Reset Period, the Commercial Paper Rate
will be the Initial Interest Rate. “Money Market Yield” shall be a yield
calculated in accordance with the following formula:

 

Money Market Yield
=          D X
360           x          100

                                         360
- (D X M)

 

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

 

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

 

A-2-14

 

Daily Update or another recognized electronic
source used for the purpose of displaying this rate by 3:00 p.m., New York
City time, on the Calculation Date then the Federal Funds Rate for such
Interest Reset Period will be the arithmetic mean of the rates, as of 3:00 p.m.,
New York City time, on the Calculation Date, for the last transaction in
overnight Federal Funds arranged by three (3) leading brokers of Federal
Funds transactions in New York City selected by the Calculation Agent after
consultation with the Trust. If the dealers selected by the Calculation Agent,
however, are not quoting rates as described above, the Federal Funds Rate for
the Interest Reset Period will be the same as the Federal Funds Rate in effect
for the immediately preceding Interest Reset Period. If there was no such
Interest Reset Period, the Federal Funds Rate will be the Initial Interest
Rate.

 

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

 

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

 

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

 

The Calculation Agent will determine the
offered rates for deposits in U.S. Dollars for the period of the Index Maturity
specified on the face hereof, commencing on the Interest Reset Date, which
appears on the “designated LIBOR page” as of 11:00 a.m., London time, on
that LIBOR Determination Date. If “LIBOR Telerate” is designated on the face
hereof, “designated LIBOR page” means the display on Moneyline Telerate, Inc.
on page 3750, or any successor service or page for the purpose of
displaying the London interbank offered rates of major banks. If “LIBOR Reuters”
is designated on the face hereof, “designated LIBOR page” means the arithmetic
mean determined by the Calculation Agent of the two (2) or more offered
rates (unless the designated LIBOR page by its terms provides only for a
single rate, in which case such

 

A-2-15

 

single rate shall be used) on the display on
the Reuters Monitor Money Rates Service Page “LIBOR,” or any successor
service or page for the purpose of displaying the London interbank offered
rates of major banks. If neither “LIBOR Telerate” nor “LIBOR Reuters” is
specified on the face hereof, LIBOR will be determined as if LIBOR Telerate had
been specified.

 

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

 

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

 

(E)                                 Treasury Rate Notes.

 

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

 

A-2-16

 

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

 

A-2-17

 

Reset Period. If there was no such Interest
Reset Period, the Treasury Rate will be the Initial Interest Rate.

 

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

 

(F)                                 Constant Maturity
Treasury Rate Notes.

 

(1)                                  If the Interest Rate
Basis is the Constant Maturity Treasury Rate, this Note shall be deemed to be a
“Constant Maturity Treasury Rate Note.” 
A Constant Maturity Treasury Rate Note will bear interest for each
Interest Reset Period at the interest rate calculated with reference to the
Constant Maturity Treasury Rate and the Spread or Spread Multiplier, if any. If
“Constant Maturity Treasury Rate” is specified on the face hereof and unless
otherwise specified on the face hereof, “Constant Maturity Treasury Rate” for
each Interest Reset Period will be the rate displayed on the Designated
Constant Maturity Treasury Page (as defined below) under the caption “Treasury
Constant Maturities” under the column for the Designated CMT Maturity Index for
either (1) that Constant Maturity Treasury Rate Determination Date (as
hereinafter defined), if the Designated Constant Maturity Treasury Page is
7051 (or any other page that may replace this page on that
service); or (2) the week, or the month, as set forth on the face hereof,
ended immediately preceding the week in which the Calculation Date pertaining
to the Constant Maturity Treasury Rate Determination Date occurs, if the
Designated Constant Maturity Treasury Page is 7052 (or any other page that
may replace this page on that service).

 

If the Treasury Rate is no longer displayed
on the Designated Constant Maturity Treasury Page, or if not displayed by 3:00 p.m.,
New York City time, on the Calculation Date pertaining to the Constant Maturity
Treasury Rate Determination Date, then the Constant Maturity Treasury Rate will
be the Treasury Constant

 

A-2-18

 

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

 

A-2-19

 

event of equality, one of the highest) and
the lowest quotation (or, in the event of equality, one of the lowest), for
Treasury Notes with an original maturity of the number of years that is the
next highest to the Designated CMT Maturity Index and a remaining term to
maturity closest to the Designated CMT Maturity Index and in an amount of at
least $100 million. If two (2) of these Treasury Notes have remaining
terms to maturity equally close to the Designated CMT Maturity Index, the
quotes for the Treasury Note with the shorter remaining term to maturity will
be used. If fewer than five but more than two (2) CMT Reference Dealers
are quoting as described above, then the Treasury Rate will be based on the
arithmetic mean of the offer prices obtained and neither the highest nor lowest
of those quotes will be eliminated; provided,
however, that if fewer than three (3) CMT Reference Dealers are
quoting as described above, then the Constant Maturity Treasury Rate for the
Interest Reset Period will be the same as the Constant Maturity Treasury Rate
for the immediately preceding Interest Reset Period. If there was no such
Interest Reset Period, the Constant Maturity Treasury Rate will be the Initial
Interest Rate.

 

(2)                                  For purposes of
Constant Maturity Treasury Rate Notes, the “Constant Maturity Treasury Rate
Determination Date” will be the tenth (10th) Business Day prior to
the Interest Reset Date for the applicable Interest Reset Period. “Designated
Constant Maturity Treasury Page” means the display on Moneyline Telerate, Inc.
on the page designated on the face hereof, or any successor service or page for
the purpose of displaying Treasury Constant Maturities as reported in H.15(519).
If that page is not specified on the face hereof, the Designated Constant
Maturity Treasury Page shall be 7052, for the most recent week. “Designated
CMT Maturity Index” means the original period to maturity of the Treasury Notes
(either 1, 2, 3, 5, 7, 10, 20, or 30 years) designated on the face hereof with
respect to which the Constant Maturity Treasury Rate will be calculated. If no
such maturity is specified on the face hereof, the Designated CMT Maturity
Index shall be 2 years.

 

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

 

A-2-20

 

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

 

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

 

(I)                                    Floating
Rate/Fixed Rate Notes. If this Note is designated as a “Floating Rate/Fixed
Rate Note” on the face hereof, this Note will be a Floating Rate Note for a
specified portion of its term and a Fixed Rate Note for the remainder of its
term, commencing on the Fixed Rate

 

A-2-21

 

Commencement Date specified on the face
hereof, in which event the interest rate on this Note will be determined as
provided herein as if it were a Floating Rate Note and a Fixed Rate Note
hereunder for each such respective period.

 

Section 4. Optional
Redemption. If no redemption right is set forth on
the face hereof, this Note may not be redeemed prior to the Stated
Maturity Date, except as set forth in the Indenture. If a Redemption Right is
set forth on the face of this Note, the Trust shall elect to redeem this Note
on the Interest Payment Date after the Initial Redemption Date set forth on the
face hereof on which the Funding Agreement is to be redeemed in whole or in part by
Protective Life Insurance Company (“Protective Life”) (each, a “Redemption Date”),
in which case this Note must be redeemed on such Redemption Date in whole or in
part, as applicable, in increments of $1,000 at the applicable Redemption Price
(as defined below), together with unpaid interest accrued thereon to the
applicable Redemption Date. “Redemption Price” shall mean an amount equal to
the Initial Redemption Percentage (as adjusted by the Annual Redemption
Percentage Reduction, if applicable) multiplied by the unpaid Principal Amount
of this Note to be redeemed. The unpaid Principal Amount of this Note to be
redeemed shall be determined by multiplying (1) the Outstanding Principal
Amount of this Note by (2) the quotient derived by dividing (A) the
outstanding principal amount of the Funding Agreement to be redeemed by
Protective Life, by (B) the outstanding principal amount of the Funding
Agreement. The Initial Redemption Percentage, if any, applicable to this Note
shall decline at each anniversary of the Initial Redemption Date by an amount
equal to the applicable Annual Redemption Percentage Reduction, if any, until
the Redemption Price is equal to 100% of the Principal Amount thereof to be
redeemed. Notice must be given not more than seventy-five (75) nor less than
thirty (30) calendar days prior to the proposed redemption date. In the event
of redemption of this Note in part only, a new Note for the unredeemed
portion hereof shall be issued in the name of the Holder hereof upon the
surrender hereof. If less than all of the Notes are redeemed, the Depositary
will select by lot the amount of the interest of each direct participant in the
Trust to be redeemed. Unless otherwise specified herein, the Trust may not
redeem the Notes after the date that is thirty (30) days prior to the Stated
Maturity Date.

 

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

 

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

 

A-2-22

 

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

 

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

 

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

 

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

 

If (1) a Tax Event (defined below) as to
the relevant Funding Agreement(s) occurs and (2) Protective Life redeems
the Funding Agreement in whole or in part, the Trust will redeem the Notes,
subject to the terms and conditions of Section 2.04 of the
Indenture, at the Tax Event Redemption Price (defined below) together with
unpaid interest accrued thereon to the applicable redemption date. “Tax Event”
means that Protective Life shall have received an opinion of

 

A-2-23

 

independent legal counsel stating in effect that as a result of (a) any
amendment to, or change (including any announced prospective change) in, the
laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority therefor or therein or (b) any amendment
to, or change in, an interpretation or application of any such laws or
regulations by any governmental authority in the United States, which amendment
or change is enacted, promulgated, issued or announced on or after the date the
applicable Funding Agreement is entered into, there is more than an
insubstantial risk that (i) the Trust is, or will be within ninety (90)
days of the date thereof, subject to U.S. federal income tax with respect to
interest accrued or received on the relevant Funding Agreement or (ii) the
Trust is, or will be within ninety (90) days of the date thereof, subject to
more than a de minimis amount of taxes, duties or other governmental charges. “Tax
Event Redemption Price” means an amount equal to the unpaid principal amount of
this Note to be redeemed. The unpaid principal amount of this Note to be
redeemed shall be determined by multiplying (1) the Outstanding Principal
Amount of this Note by (2) the quotient derived by dividing (A) the
outstanding principal amount to be redeemed by Protective Life of the Funding
Agreement by (B) the outstanding principal amount of the Funding
Agreement.

 

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

 

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

 

Section 13. Miscellaneous.

 

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

 

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

 

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

 

A-2-24

 

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

 

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

 

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

 

A-2-25

 

OPTION TO ELECT REPAYMENT

 

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

	
   

  
	
   

  
	
   

  
	
   

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

  

 

 

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

 

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

 

 

	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  NOTICE: The signature on this Option to
  Elect Repayment must 

  
	
   

  	
   

  	
  correspond with the name as written upon
  the face of this Note in 

  
	
   

  	
   

  	
  every particular, without alteration or
  enlargement or any change 

  
	
   

  	
   

  	
  whatever.

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Please print name and address including
  zip code)

  
											

 

SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER: 

 

A-2-26

 

SCHEDULE I

 

Amortization
Table or Formula

 

A-2-1

 

EXHIBIT A-3

 

FORM OF
INSTITUTIONAL DEFINITIVE NOTE

 

	
   

  	
  CUSIP NO.

  	
   

  

 

 

PROTECTIVE
LIFE SECURED TRUST [     ]-[   ]

SECURED MEDIUM-TERM NOTE

 

 

	
  REGISTERED FACE AMOUNT:

  	
   

  	
   

  
	
  No.

  	
   

  	
   

  	
   

  	
   

  
					

 

 

THIS NOTE IS A DEFINITIVE NOTE WITHIN THE
MEANING OF THE INDENTURE (HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF
THE HOLDER (AS DEFINED IN THE INDENTURE) THEREOF. THIS NOTE IS NOT EXCHANGEABLE
FOR A GLOBAL NOTE (AS DEFINED IN THE INDENTURE).

 

UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE HOLDER TO THE TRUST OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED HOLDER HEREOF HAS AN INTEREST HEREIN.

 

 

Principal Amount: $

 

(or principal amount of foreign or composite
currency)

 

Original Issue Date:

 

Price to Public:

 

Stated Maturity Date:

 

Settlement Date and Time:

 

Securities Exchange
Listing:  o Yes  o No. If yes, indicate name(s) of
Securities Exchange(s)

 

                                   .

 

Authorized Denominations

 

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

 

Additional Amounts to be Paid: o  Yes   o  No.

 

Interest Rate or Formula:

 

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

 

Interest Rate:

 

Interest Payment Frequency:

 

o
Monthly            o Quarterly

 

o Semi-annually  o Annually

 

Additional/Other Terms:

 

Amortizing Note: o Yes o No. If yes,

 

Amortization schedule or formula:

 

Additional/Other Terms:

 

Discount Note: o Yes o No. If yes,

 

Registered Face Amount:

 

Total Amount of Discount:

 

Yield to Maturity:

 

Additional/Other Terms:

 

Redemption Provisions: o Yes  o No. If
yes,

 

Initial Redemption Date:

 

Initial Redemption Percentage:

 

Annual Redemption Percentage Reduction, if
any:

 

Additional/Other Terms:

 

Repayment Provisions: o
Yes  o No. If
yes,

 

Optional Repayment Date(s):

 

Additional/Other Terms:

 

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

 

Interest Rate:

 

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

 

 

CD Rate o

 

Commercial Paper Rate o

 

Federal Funds Rate o

 

LIBOR o

 

o LIBOR Reuters Page:

 

o LIBOR Telerate Page:

 

Designated LIBOR Currency:

 

Treasury Rate (other than
Constant Maturity Treasury Rate) o

 

Constant Maturity Treasury Rate o

 

Designated CMT Telerate
Page:

 

If Telerate Page 7052:

 

o
Weekly Average

 

o
Monthly Average

 

Designated CMT Maturity
Index:

 

Prime Rate o

 

Other o

 

Other Base Rate:

 

Inverse Floating Rate Note o

 

Fixed Interest Rate:

 

Floating Rate/Fixed Rate o

 

Fixed Interest Rate:

 

Fixed Rate Commencement
Date:

 

Index Maturity:

 

Spread and/or Spread Multiplier, if any:

 

Initial Interest Rate, if any:

 

Initial Interest Reset Date:

 

Interest Reset Dates:

 

Rate Determination Date(s):

 

Interest Payment Frequency:

 

o
Monthly              o Quarterly

 

o Semi-Annually   o Annually

 

Maximum Interest Rate, if any:

 

Minimum Interest Rate, if any:

 

Additional/Other Terms:

 

Regular Record Date(s):

 

Sinking Fund:

 

Day Count Convention:

 

Computation of Interest:

 

 

o 30 over
360              o Actual over Actual

 

o Actual over
360       o Other
(See attached)

 

Specified Currency:

 

Exchange Rate Agent:

 

Calculation Agent:

 

Additional/Other Terms:

 

 

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

 

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

 

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

 

Except as provided in the
following paragraph, the Trust will pay interest on each Interest Payment Date
specified above, commencing with the first (1st) Interest Payment
Date next succeeding the Original Issue Date, and on the Maturity Date; provided that any payment of principal,
premium, if any, or interest to be made on any Interest Payment Date or on a
Maturity Date that is not a Business Day (or, if this Note is a LIBOR Note (as
defined in Section 3(d)(v)(D) on the reverse hereof), a day
that is also not a London Business Day (as hereinafter defined)) shall be made
on the next succeeding Business Day (or, if this Note is a LIBOR Note, on the
next succeeding Business Day that is also a London Business Day) with the same
force and effect as if made on such Interest Payment Date or such Maturity
Date, as the case may be, except that with respect to Interest Payment
Dates, other than the Maturity Date, if this Note is a LIBOR Note and such next
succeeding Business Day that is also a London Business Day falls in the next
calendar month, such payment shall be made on the Business Day that is also a
London Business Day immediately preceding the Interest Payment Date; provided that, in connection with Floating
Rate Notes, and except in the case of an Interest Payment Date that falls on a
Maturity Date, interest will continue to accrue to but excluding the date the
interest is paid. The term “London
Business Day” means a day other than a Saturday or Sunday on
which dealings

 

A-3-3

 

in deposits in U.S. Dollars are transacted,
or with respect to any future date are expected to be transacted in the London
interbank market. Unless otherwise specified above, the interest payable on
each Interest Payment Date or the Maturity Date will be the amount of interest
accrued from and including the Original Issue Date or from and including the
last Interest Payment Date to which interest has been paid or duly provided
for, as the case may be, to, but excluding, such Interest Payment Date or
the Maturity Date, as the case may be.

 

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

 

Payments of interest hereon
(other than on the Maturity Date) will be made by wire transfer of by check
mailed to the registered Holder of this Note. A Holder of $10,000,000, or its
equivalent in a Specified Currency other than U.S. Dollars, or more in
aggregate principal amount of Definitive Notes will be entitled to receive
payments by wire transfer in immediately available funds, provided that the Indenture Trustee has
received from the Holder written, appropriate wire transfer instructions not
later than five (5) Business Days prior to the applicable Interest Payment
Date. Unless otherwise specified on the face hereof, any principal, premium
and/or interest payable hereon on the Maturity Date will be paid in immediately
available funds upon surrender of this Note at the Corporate Trust Office of
the Indenture Trustee, provided
that this Note is presented to the Indenture Trustee (or any such Paying Agent)
in time for the Indenture Trustee (or the Paying Agent) to make such payments
in such funds in accordance with its normal procedures.

 

Unless otherwise specified on
the face hereof, the Holder hereof will not be obligated to pay any
administrative costs imposed by banks in making payments in immediately
available funds by the Trust. Unless otherwise specified on the face hereof,
any tax assessment or governmental charge imposed upon payments hereunder, including,
without limitation, any withholding tax, will be borne by the Holder thereof.

 

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

 

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

 

A-3-4

 

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

 

 

	
   

  	
  THE PROTECTIVE LIFE SECURED TRUST

  SPECIFIED ON THE FACE OF THIS NOTE

  
	
   

  
	
  Dated: Original Issue Date

  	
   

  	
  By: Wilmington Trust Company, not in its
  individual

  capacity but solely as Delaware Trustee.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
					

 

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  As Indenture Trustee

  
	
   

  	
   

  
	
  Dated: Original Issue Date

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-3-5

 

[REVERSE
OF NOTE]

 

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

 

Section 2. Currency.

 

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

 

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

 

A-3-6

 

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

 

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

 

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

 

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

 

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

 

(a)                                  Fixed
Rate Notes.

 

(i)                                                                                     If
this Note is specified on the face hereof as a “Fixed Rate Note,” for the
period from the Original Issue Date, or from the last Interest Payment Date to
which interest has been paid or duly provided for, as the case may be, the
interest rate hereon shall be at the rate per annum stated on the face hereof
until, but excluding the date on which the Principal Amount is paid or made
available for payment. Unless otherwise specified on the face hereof, the rate
of interest payable on this Note will not be adjusted.

 

A-3-7

 

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

 

(b)                                 Discount
Notes.

 

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

 

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

 

A-3-8

 

(c)                                  Amortizing
Notes.

 

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

 

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

 

(d)                                 Floating
Rate Notes.

 

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

 

(A)                              Unless specified
otherwise on the face hereof, Interest Reset Dates are as follows:  (1) in the case of Notes that reset
daily, each Business Day, (2) in the case of Notes that reset weekly,
other than Treasury Rate Notes, the Wednesday of each week, (3) in the
case of Treasury Rate Notes that reset weekly and except as provided below
under “Treasury Rate Notes,” the Tuesday of each week, (4) in the case of
Notes that reset monthly, the fifteenth (15th) day of each calendar
month, beginning in the first (1st) calendar month following the
month in which the Note was issued, (5) in the case of Notes that reset
quarterly, the fifteenth (15th) day of every third (3rd)
calendar month, beginning in the third (3rd) calendar month
following the month in which the Note was issued, (6) in the case of Notes
that reset semiannually, the fifteenth (15th) day of every sixth (6th)
calendar month, beginning in the sixth (6th) calendar month
following the month in which the Note was issued and (7)

 

A-3-9

 

in the case of Notes that reset annually, the
fifteenth (15th) day of every twelfth (12th) calendar
month, beginning in the twelfth (12th) calendar month following the
month in which the Note was issued.

 

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

 

(C)                                If this Note has more
than one Interest Reset Date, accrued interest will be calculated by
multiplying the Principal Amount of the Note specified on the face hereof by an
Accrued Interest Factor. The Accrued Interest Factor will be computed by adding
the interest factors calculated for each day in the Interest Reset Period for
which accrued interest is being calculated. The Interest Reset Period is the
period from each Interest Reset Date to, but not including, the following
Interest Reset Date. Unless otherwise specified on the face hereof, the
Interest Factor for each such day will be computed by dividing the interest
rate in effect on that day by 360, in the case of CD Rate Notes, Commercial
Paper Rate Notes, Federal Funds Rate Notes, LIBOR Notes and Prime Rate Notes. In
the case of Treasury Rate Notes and Constant Maturity Treasury Rate Notes, the
Interest Factor for each such day will be computed by dividing the interest
rate by the actual number of days in the year. The Interest Rate Basis shall be
set forth on the face hereof and shall be the Interest Rate Basis, as adjusted
in accordance with any Spread or Spread Multiplier and subject to any Maximum
Interest Rate or Minimum Interest Rate specified on the face hereof. Notwithstanding
Section 3(d)(i)(E) below, the Interest Factor will be
expressed as a decimal calculated to seven decimal places without rounding. For
purposes of making the foregoing calculation, the interest rate in effect on
any Interest Reset Date will be the applicable rate as reset on that date. Unless
otherwise specified on the face hereof, the interest rate that is effective on
the applicable Interest Reset Date will be determined on the applicable Rate
Determination Date and calculated on the applicable Calculation Date. Unless
otherwise specified on the face hereof, the interest rate in effect for each
day to and excluding the next Interest Reset Date will be the interest rate
that was in effect on the preceding Interest Reset Date. “Calculation Date”
means the date by which the Calculation Agent specified on the face hereof, is
to calculate

 

A-3-10

 

the interest rate which will be the earlier
of (1) the fifth (5th) Business Day after the related Rate
Determination Date, or if any such day is not a Business Day, the next Business
Day and (2) the Business Day preceding the applicable Interest Payment
Date or the Maturity Date.

 

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

 

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

 

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

 

(iii)                               If specified on the face
hereof, this Note may have either or both of a Maximum Interest Rate or
Minimum Interest Rate. If a Maximum Interest Rate is so designated, the
interest rate for a Floating Rate Note cannot ever exceed such Maximum Interest
Rate and in the event that the interest rate on any Interest Reset Date would
exceed such Maximum Interest Rate (as if no Maximum Interest Rate were in
effect) then the interest rate on such Reset Date shall be the Maximum Interest
Rate. If a Minimum Interest Rate is so designated, the interest rate for a

 

A-3-11

 

Floating Rate Note cannot ever be less than
such Minimum Interest Rate and in the event that the interest rate on any
Interest Reset Date would be less than such Minimum Interest Rate (as if no
Minimum Interest Rate were in effect) then the interest rate on such Reset Date
shall be the Minimum Interest Rate. Notwithstanding anything to the contrary
contained herein, the interest rate on a Floating Rate Note shall not exceed
the maximum interest rate permitted by applicable law.

 

(iv)                              All determinations of
interest by the Calculation Agent will, in the absence of manifest error, be
conclusive for all purposes and binding on the Trust, the Indenture Trustee and
the Holder of this Note and neither the Trust, the Indenture Trustee nor the
Calculation Agent shall have any liability to the Holder of this Note in
respect of any determination, calculation, quote or rate made or provided by
the Calculation Agent. Upon request of the Holder of this Note, the Calculation
Agent will provide the interest rate then in effect and, if determined, the
interest rate that will become effective on the next Interest Reset Date with
respect to this Note. The Calculation Agent will notify the Indenture Trustee,
Paying Agent, Registrar, the Trust and if this Note is listed on a stock
exchange, and the rules of such exchange so require, such exchange of each
determination of the interest rate, Initial Interest Period, Interest Reset
Period, and interest amount payable applicable to this Note promptly after such
determination is made. If the Calculation Agent is incapable or unwilling to
act as such or if the Calculation Agent fails duly to establish the interest
rate for any interest accrual period or to calculate the interest amount or any
other requirements, the Trust will appoint the Paying Agent or another leading
commercial bank to act as such in its place.

 

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

 

(A)                              CD Rate Notes. If
the Interest Rate Basis is the CD Rate, this Note shall be deemed to be a “CD
Rate Note.” A CD Rate Note will bear interest at the interest rate calculated
with reference to the CD Rate and the Spread or Spread Multiplier, if any. The
Calculation Agent will determine the CD Rate for each CD Rate Determination
Date by the Calculation Date pertaining to such CD Rate Determination Date. The
CD Rate Determination Date is the second (2nd) Business Day prior to
the Interest Reset Date for each Interest Reset Period. Unless otherwise
specified on the face hereof, “CD Rate” means the rate for negotiable
certificates of deposit having the Index Maturity specified on the face hereof
as published in H.15(519) under the heading “CDs (Secondary Market)” or, if not
so published by 3:00 p.m., New York City time, on the Calculation Date pertaining
to such CD Rate Determination Date, the CD

 

A-3-12

 

Rate for the Interest Reset Period will be
the rate on such date for negotiable certificates of deposit of the applicable
Index Maturity as published in the H.15 Daily Update under the heading “CDs
(Secondary Market).”  If such rate is not
yet published in either H.15(519) or the H.15 Daily Update by 3:00 p.m.,
New York City time, on such Calculation Date, then the CD Rate will be the
arithmetic mean of the secondary market offered rates as of 3:00 p.m., New
York City time, on such date, of three (3) leading nonbank dealers in
negotiable U.S. Dollar certificates of deposit in New York City selected by the
Calculation Agent after consultation with the Trust for negotiable certificates
of deposit of major United States money center banks of the highest credit
standing (in the market for negotiable certificates of deposit) with a
remaining maturity closest to the applicable Index Maturity in a denomination
of $5,000,000; provided, however,
that if the dealers selected as aforesaid by the Calculation Agent are not
quoting as mentioned above, the CD Rate for the applicable Interest Reset
Period will be the CD Rate for the immediately preceding Interest Reset Period.
If there was no such Interest Reset Period, the CD Rate shall be the Initial
Interest Rate. “H.15(519)” means the publication entitled “Statistical Release
H.15(519), Selected Interest Rates,” or any successor publication, published
weekly by the Board of Governors of the Federal Reserve System; and “H.15 Daily
Update” means the daily update of the Board of Governors of the Federal Reserve
System at http://www.federalreserve.gov/releases/h15/update/, or any successor
site or publication.

 

(B)                                Commercial Paper
Rate Notes. If the Interest Rate Basis is the Commercial Paper Rate, this
Note shall be deemed to be a “Commercial Paper Rate Note.” A Commercial Paper
Rate Note will bear interest for each Interest Reset Period at the interest
rate calculated with reference to the Commercial Paper Rate and the Spread or
Spread Multiplier, if any. The Calculation Agent will determine the Commercial
Paper Rate for each Commercial Paper Rate Determination Date by the Calculation
Date pertaining to such Commercial Paper Rate Determination Date. The
Commercial Paper Rate Determination Date is the second (2nd)
Business Day prior to the Interest Reset Date for each Interest Reset Date for
each Interest Reset Period. Unless otherwise specified on the face hereof, “Commercial
Paper Rate” means the Money Market Yield (calculated as described below) on the
Calculation Date of the rate for commercial paper having the Index Maturity
specified on the face hereof as such rate is published in H.15(519) under the
heading “Commercial Paper — Nonfinancial.” 
If such rate is not published by 3:00 p.m., New York City time, on
the Calculation Date pertaining to such Commercial Paper Rate Determination
Date, then the Commercial Paper Rate for the Interest Reset Period shall be the
Money Market Yield of the rate on such date for commercial paper having the
applicable Index Maturity as published in the H.15 Daily Update or such other
recognized electronic source used for the purpose of displaying such rate,
under the heading “Commercial Paper —

 

A-3-13

 

Nonfinancial.”  If such rate is not yet published in either
H.15(519) or H.15 Daily Update or such other recognized electronic source used
for the purpose of displaying this rate, by 3:00 p.m., New York City time,
on such Calculation Date, then the Commercial Paper Rate for the Interest Reset
Period shall be the Money Market Yield of the arithmetic mean of the offered
rates, as of 3:00 p.m., New York City time, on such date, of three (3) leading
dealers of commercial paper in New York City selected by the Calculation Agent
after consultation with the Trust for commercial paper having the applicable
Index Maturity placed for an industrial issuer whose bond rating is “AA” or the
equivalent, from a nationally recognized securities rating agency; provided, however, that if the dealers
selected by the Calculation Agent are not quoting offered rates as mentioned
above, the Commercial Paper Rate for the Interest Reset Period will be the same
as the Commercial Paper Rate for the immediately preceding Interest Reset
Period. If there was no such Interest Reset Period, the Commercial Paper Rate
will be the Initial Interest Rate. “Money Market Yield” shall be a yield
calculated in accordance with the following formula:

 

Money Market Yield
=         D X
360           x          100

                                         360
- (D X M)

 

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

 

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

 

A-3-14

 

Daily Update or another recognized electronic
source used for the purpose of displaying this rate by 3:00 p.m., New York
City time, on the Calculation Date then the Federal Funds Rate for such
Interest Reset Period will be the arithmetic mean of the rates, as of 3:00 p.m.,
New York City time, on the Calculation Date, for the last transaction in
overnight Federal Funds arranged by three (3) leading brokers of Federal
Funds transactions in New York City selected by the Calculation Agent after
consultation with the Trust. If the dealers selected by the Calculation Agent,
however, are not quoting rates as described above, the Federal Funds Rate for
the Interest Reset Period will be the same as the Federal Funds Rate in effect
for the immediately preceding Interest Reset Period. If there was no such
Interest Reset Period, the Federal Funds Rate will be the Initial Interest
Rate.

 

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

 

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

 

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

 

The Calculation Agent will determine
the offered rates for deposits in U.S. Dollars for the period of the Index
Maturity specified on the face hereof, commencing on the Interest Reset Date,
which appears on the “designated LIBOR page” as of 11:00 a.m., London
time, on that LIBOR Determination Date. If “LIBOR Telerate” is designated on
the face hereof, “designated LIBOR page” means the display on Moneyline
Telerate, Inc. on page 3750, or any successor service or page for
the purpose of displaying the London interbank offered rates of major banks. If
“LIBOR Reuters” is designated on the face hereof, “designated LIBOR page” means
the arithmetic mean determined by the Calculation Agent of the two (2) or
more offered rates (unless the designated LIBOR page by its terms provides
only for a single rate, in which case such

 

A-3-15

 

single rate shall be used) on
the display on the Reuters Monitor Money Rates Service Page “LIBOR,” or
any successor service or page for the purpose of displaying the London
interbank offered rates of major banks. If neither “LIBOR Telerate” nor “LIBOR
Reuters” is specified on the face hereof, LIBOR will be determined as if LIBOR
Telerate had been specified.

 

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

 

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

 

(E)                                 Treasury Rate Notes.

 

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

 

A-3-16

 

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

 

A-3-17

 

Reset Period. If there was no such Interest
Reset Period, the Treasury Rate will be the Initial Interest Rate.

 

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

 

(F)                                 Constant Maturity
Treasury Rate Notes.

 

(1)                                  If the Interest Rate
Basis is the Constant Maturity Treasury Rate, this Note shall be deemed to be a
“Constant Maturity Treasury Rate Note.” 
A Constant Maturity Treasury Rate Note will bear interest for each
Interest Reset Period at the interest rate calculated with reference to the
Constant Maturity Treasury Rate and the Spread or Spread Multiplier, if any. If
“Constant Maturity Treasury Rate” is specified on the face hereof and unless
otherwise specified on the face hereof, “Constant Maturity Treasury Rate” for
each Interest Reset Period will be the rate displayed on the Designated
Constant Maturity Treasury Page (as defined below) under the caption “Treasury
Constant Maturities” under the column for the Designated CMT Maturity Index for
either (1) that Constant Maturity Treasury Rate Determination Date (as
hereinafter defined), if the Designated Constant Maturity Treasury Page is
7051 (or any other page that may replace this page on that
service); or (2) the week, or the month, as set forth on the face hereof,
ended immediately preceding the week in which the Calculation Date pertaining
to the Constant Maturity Treasury Rate Determination Date occurs, if the
Designated Constant Maturity Treasury Page is 7052 (or any other page that
may replace this page on that service).

 

If the Treasury Rate is no
longer displayed on the Designated Constant Maturity Treasury Page, or if not
displayed by 3:00 p.m., New York City time, on the Calculation Date
pertaining to the Constant Maturity Treasury Rate Determination Date, then the
Constant Maturity Treasury Rate will be the Treasury Constant

 

A-3-18

 

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

 

A-3-19

 

event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest), for Treasury Notes with an original maturity of the number of years
that is the next highest to the Designated CMT Maturity Index and a remaining
term to maturity closest to the Designated CMT Maturity Index and in an amount
of at least $100 million. If two (2) of these Treasury Notes have
remaining terms to maturity equally close to the Designated CMT Maturity Index,
the quotes for the Treasury Note with the shorter remaining term to maturity
will be used. If fewer than five but more than two (2) CMT Reference
Dealers are quoting as described above, then the Treasury Rate will be based on
the arithmetic mean of the offer prices obtained and neither the highest nor
lowest of those quotes will be eliminated; provided,
however, that if fewer than three (3) CMT Reference Dealers are
quoting as described above, then the Constant Maturity Treasury Rate for the
Interest Reset Period will be the same as the Constant Maturity Treasury Rate
for the immediately preceding Interest Reset Period. If there was no such
Interest Reset Period, the Constant Maturity Treasury Rate will be the Initial
Interest Rate.

 

(2)                                  For purposes of
Constant Maturity Treasury Rate Notes, the “Constant Maturity Treasury Rate
Determination Date” will be the tenth (10th) Business Day prior to
the Interest Reset Date for the applicable Interest Reset Period. “Designated
Constant Maturity Treasury Page” means the display on Moneyline Telerate, Inc.
on the page designated on the face hereof, or any successor service or page for
the purpose of displaying Treasury Constant Maturities as reported in H.15(519).
If that page is not specified on the face hereof, the Designated Constant
Maturity Treasury Page shall be 7052, for the most recent week. “Designated
CMT Maturity Index” means the original period to maturity of the Treasury Notes
(either 1, 2, 3, 5, 7, 10, 20, or 30 years) designated on the face hereof with
respect to which the Constant Maturity Treasury Rate will be calculated. If no
such maturity is specified on the face hereof, the Designated CMT Maturity
Index shall be 2 years.

 

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

 

A-3-20

 

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

 

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

 

(I)                                    Floating
Rate/Fixed Rate Notes. If this Note is designated as a “Floating Rate/Fixed
Rate Note” on the face hereof, this Note will be a Floating Rate Note for a
specified portion of its term and a Fixed Rate Note for the remainder of its
term, commencing on the Fixed Rate

 

A-3-21

 

Commencement Date specified on the face
hereof, in which event the interest rate on this Note will be determined as
provided herein as if it were a Floating Rate Note and a Fixed Rate Note
hereunder for each such respective period.

 

Section 4. Optional
Redemption. If no redemption right is set forth on
the face hereof, this Note may not be redeemed prior to the Stated
Maturity Date, except as set forth in the Indenture. If a Redemption Right is
set forth on the face of this Note, the Trust shall elect to redeem this Note
on the Interest Payment Date after the Initial Redemption Date set forth on the
face hereof on which the Funding Agreement is to be redeemed in whole or in part by
Protective Life Insurance Company (“Protective Life”) (each, a “Redemption Date”),
in which case this Note must be redeemed on such Redemption Date in whole or in
part, as applicable,  in increments of
$1,000 at the applicable Redemption Price (as defined below), together with
unpaid interest accrued thereon to the applicable Redemption Date. “Redemption
Price” shall mean an amount equal to the Initial Redemption Percentage (as
adjusted by the Annual Redemption Percentage Reduction, if applicable)
multiplied by the unpaid Principal Amount of this Note to be redeemed. The
unpaid Principal Amount of this Note to be redeemed shall be determined by
multiplying (1) the Outstanding Principal Amount of this Note by (2) the
quotient derived by dividing (A) the outstanding principal amount of the
Funding Agreement to be redeemed by Protective Life, by (B) the
outstanding principal amount of the Funding Agreement. The Initial Redemption
Percentage, if any, applicable to this Note shall decline at each anniversary
of the Initial Redemption Date by an amount equal to the applicable Annual
Redemption Percentage Reduction, if any, until the Redemption Price is equal to
100% of the Principal Amount thereof to be redeemed. Notice must be given not
more than seventy-five (75) nor less than thirty (30) calendar days prior to
the proposed redemption date. In the event of redemption of this Note in part only,
a new Note for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the surrender hereof. If less than all of the Notes are
redeemed, the Indenture Trustee will select by lot or in its discretion, on a
pro rata basis, the amount of the interest of each direct participant in the
Trust to be redeemed. Unless otherwise specified herein, the Trust may not
redeem the Notes after the date that is thirty (30) days prior to the Stated
Maturity Date.

 

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

 

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

 

A-3-22

 

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

 

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

 

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

 

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

 

If (1) a Tax Event
(defined below) as to the relevant Funding Agreement(s) occurs and (2) Protective
Life redeems the Funding Agreement in whole or in part, the Trust will redeem
the Notes, subject to the terms and conditions of Section 2.04 of
the Indenture, at the Tax Event Redemption Price (defined below) together with
unpaid interest accrued thereon to the applicable redemption date. “Tax Event”
means that Protective Life shall have received an opinion of

 

A-3-23

 

independent legal counsel stating in effect
that as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws (or any regulations thereunder) of
the United States or any political subdivision or taxing authority therefor or
therein or (b) any amendment to, or change in, an interpretation or
application of any such laws or regulations by any governmental authority in
the United States, which amendment or change is enacted, promulgated, issued or
announced on or after the date the applicable Funding Agreement is entered
into, there is more than an insubstantial risk that (i) the Trust is, or
will be within ninety (90) days of the date thereof, subject to U.S. federal
income tax with respect to interest accrued or received on the relevant Funding
Agreement or (ii) the Trust is, or will be within ninety (90) days of the
date thereof, subject to more than a de minimis amount of taxes, duties or
other governmental charges. “Tax Event Redemption Price” means an amount equal
to the unpaid principal amount of this Note to be redeemed. The unpaid
principal amount of this Note to be redeemed shall be determined by multiplying
(1) the Outstanding Principal Amount of this Note by (2) the quotient
derived by dividing (A) the outstanding principal amount to be redeemed by
Protective Life of the Funding Agreement by (B) the outstanding principal
amount of the Funding Agreement.

 

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

 

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

 

Section 13. Miscellaneous.

 

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

 

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

 

(c)                                  The
Notes are being issued by means of a physical distribution of notes to be made
as provided in the Indenture. The Register maintained by the Registrar will
evidence ownership of the Notes, with transfers of ownership effected on the
Register and through the Transfer Agent. Transfer of principal, premium (if
any) and interest to

 

A-3-24

 

the Holder will be the responsibility of the
Paying Agent. The selection of any Notes to be redeemed or repaid will be
determined by the Indenture Trustee pursuant to the Indenture.

 

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

 

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

 

A-3-25

 

OPTION TO ELECT REPAYMENT

 

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

	
   

  
	
   

  
	
   

  
	
   

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

  

 

 

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

 

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

 

 

	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  	
  NOTICE: The signature on this Option to
  Elect Repayment 

  
	
   

  	
   

  	
  must correspond with the name as written
  upon the face of this 

  
	
   

  	
   

  	
  Note in every particular, without
  alteration or enlargement or 

  
	
   

  	
   

  	
  any change whatever.

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Please print name and

  address including zip code)

  
											

 

 

SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER: 

 

A-3-26

 

SCHEDULE I

 

Amortization
Table or Formula

 

A-3-27

EXHIBIT F

 

STANDARD SELLING AGENT AGREEMENT TERMS

 

PROTECTIVE LIFE INSURANCE COMPANY

 

$3,000,000,000

 

SECURED INTERNOTES® PROGRAM

 

Dated as of November 7, 2003

 

This document constitutes Standard Selling Agent Agreement Terms which
are incorporated by reference in the Selling Agent Agreement, dated as of the
date set forth therein (the “Selling Agent Agreement”), by and among the Trust, the
Company, and each Agent specified in the Selling Agent Agreement. The Selling
Agent Agreement is set forth in Section F
of the Omnibus Instrument and these Standard Selling Agent Agreement
Terms are attached as Exhibit F to
the Omnibus Instrument.

 

These Standard Selling Agent Agreement Terms shall be of no force and
effect unless and until incorporated by reference into, and then only to the
extent not modified by, the Selling Agent Agreement.

 

The following terms and provisions shall govern the terms of the
distribution of the Notes issued by the Trust, subject to such other terms and
provisions expressly adopted in the Selling Agent Agreement.

 

Capitalized terms not otherwise defined in these Standard Selling Agent
Agreement Terms shall have their respective meanings ascribed to them in the
Selling Agent Agreement.

 

In connection with the Protective Life Secured InterNotes® Program (the
“Retail Program”),
the Company has authorized the issuance and sale from time to time of funding
agreements to Protective Life Secured Trusts in order to secure the issuance of
medium-term notes due nine months or more from the date of issuance by the
Trust and any other trust organized in connection with the Registration
Statement (defined below) of up to U.S. $3,000,000,000 aggregate initial
offering price of such notes (or its equivalent as determined pursuant to Section III(b)(vii) herein) to
the Agents pursuant to the terms of this Selling Agent Agreement, any other
selling agent agreement entered into by and among the Company, the agent(s)
named therein and any trust (other than the Trust) organized in connection with
the Registration Statement and any distribution agreement (each, a “Distribution Agreement”)
entered into by and among the Company, the dealer(s) named therein and any
trust (other than the Trust) organized in connection with the Protective Life
Secured Medium-Term Notes Program (the “Institutional Program,” together with the
Retail Program, the “Program”).

 

The Notes are to be issued pursuant to the Indenture. The Trust shall
issue only one Series of Notes. The Trust will use the net proceeds from the
sale of the Notes to purchase one or more funding agreements (each a “Funding Agreement”)
from the Company. The Notes will be secured by one or more Funding Agreement(s)
which will be assigned by the Trust to the Indenture Trustee on behalf of the
holders of the Notes pursuant to the Indenture. In connection with the sale of
the Notes, the Trust will prepare a Pricing Supplement (the “Pricing Supplement”)
including or incorporating by reference a description of the terms of the
Notes, the terms of the offering and a description of the Trust.

 

Subject to the terms and conditions contained in the Selling Agent
Agreement, the Company and the Trust hereby (1) appoint Incapital LLC as
purchasing agent (the “Purchasing
Agent”); (2) appoint the Purchasing Agent and each of the
other parties listed on the signature page hereto as agents of the Company and
the Trust (the Purchasing Agent and each such party, an “Agent”) for the
purpose of soliciting offers to purchase the Notes, and each of the Agents
hereby agrees to use its reasonable best efforts to solicit offers to purchase
Notes upon terms acceptable to the Company and the Trust at such times and in
such amounts as the Company and the Trust shall from time to time specify in
accordance with the terms hereof and after consultation with the Purchasing
Agent; and (3) agree that the sale of the Notes shall be sold pursuant to
this Selling Agent Agreement, with the Purchasing Agent

 

 

purchasing such Notes as
principal for resale to the Agents or dealers (the “Selected Dealers”),
each of whom will purchase such Notes as principal.

 

I.

 

The Company has made the requisite filings with the Securities and
Exchange Commission (the “Commission”)
pursuant to the Securities Exchange Act of 1934, as amended (the “1934 Act”). The
Company has filed with the Commission a registration statement on Form S-3
(No. 333-100944) and pre-effective amendment no. 1 thereto for the
registration of funding agreements and notes under the Securities Act of 1933,
as amended (the “1933
Act”), and the offering thereof from time to time in accordance
with Rule 415 of the rules and regulations of the Commission under the
1933 Act (the “1933 Act
Regulations”). Such registration statement has been declared
effective by the Commission and the Indenture has been duly qualified under the
Trust Indenture Act of 1939, as amended (the “1939 Act”), and the Company has filed
such post-effective amendments thereto as may be required prior to the Trust’s
acceptance of any offer for the purchase of Notes and each such post-effective
amendment has been declared effective by the Commission. Such registration
statement (as so amended, if applicable) is referred to herein as the “Registration Statement”;
and the final prospectus and all applicable amendments or supplements thereto
(including the final prospectus supplements and Pricing Supplement(s) relating
to the offering of the Notes), in the form first furnished to the Agents for
use in confirming sales of the Notes, are collectively referred to herein as
the “Prospectus”;
provided, however, that all references to the “Registration
Statement”, and the “Prospectus” shall also be deemed to include all documents
incorporated therein by reference pursuant to the 1934 Act, prior to any
acceptance by the Trust of an offer for the purchase of Notes; provided,
further, that if the Company files a registration statement with the Commission
pursuant to Rule 462(b) of the 1933 Act Regulations (the “Rule 462(b) Registration
Statement”), then, after such filing, all references to the “Registration
Statement” shall also be deemed to include the Rule 462(b) Registration
Statement. A “preliminary
prospectus” shall be deemed to refer to any prospectus and any
prospectus supplement used before the Registration Statement became effective
and any prospectus and any prospectus supplement furnished by the Company after
the Registration Statement became effective and before any acceptance by the
Trust of an offer for the purchase of Notes which omitted information to be
included upon pricing in a form of prospectus and prospectus supplement filed
with the Commission pursuant to Rule 424(b) of the 1933 Act Regulations.
For purposes of this Selling Agent Agreement, all references to the
Registration Statement, Prospectus or preliminary prospectus or to any amendment
or supplement thereto shall be deemed to include any copy filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
system (“EDGAR”).

 

All references in this Selling Agent Agreement to financial statements
and schedules and other information which is “disclosed”, “contained”, “included”
or “stated” (or other references of like import) in the Registration Statement,
Prospectus or preliminary prospectus shall be deemed to include all such
financial statements and schedules and other information which is incorporated
by reference in the Registration Statement, Prospectus or preliminary
prospectus, as the case may be; and all references in this Selling Agent
Agreement to amendments or supplements to the Registration Statement, Prospectus
or preliminary prospectus shall be deemed to include the filing of any document
under the 1934 Act which is incorporated by reference in the Registration
Statement, Prospectus or preliminary prospectus, as the case may be.

 

2

 

II.

 

The Agents’ obligations hereunder are subject to the following
conditions:

 

(a)           Legal
Opinions. On the day of delivery of the applicable notes to the
Purchasing Agent (the “Settlement
Date”) for the first series of notes issued under the Program
(the “Initial Settlement
Date”), the Agents shall have received the legal opinions in
(1) through (12) below in form and substance satisfactory to the
Purchasing Agent; for all issues after the Initial Settlement Date, the Agents
shall have received the opinions in (1) through (12) below unless
previously provided on the later of (x) the Initial Settlement Date or
(y) the first settlement date following the most recent annual anniversary
date of the Initial Settlement Date, or unless otherwise agreed among the
Company, the Trust and the Purchasing Agent:

 

(1)           Opinion of Counsel for the Company.
The opinion of Debevoise & Plimpton or other external counsel
reasonably satisfactory to the applicable Agents or internal legal counsel to
the Company which shall be at least a Senior Associate Legal Counsel to the
Company (in either case, the “Company
Approved Counsel”), to the effect set forth in Exhibit A hereto;

 

(2)           Opinion of Counsel for the Trust.
The opinion of Richards Layton & Finger, or, subsequent to the Initial
Settlement Date, Company Approved Counsel, to the effect set forth in Exhibit B hereto;

 

(3)           Opinion of Counsel for the Trustee.
The opinion of Richards, Layton & Finger, or other external counsel
reasonably satisfactory to the Purchasing Agent, as counsel for the trustee of
the Trust (the “Trustee”)
to the effect set forth in Exhibit C hereto;

 

(4)           Opinion of Counsel for the
Administrator. The opinion of Tannenbaum Helpern Syracuse &
Hirschtritt LLP, or other external counsel reasonably satisfactory to the
Purchasing Agent, as counsel for AMACAR Pacific Corp., as administrator (the “Administrator”) to
the effect set forth in Exhibit D hereto;

 

(5)           Opinion of Counsel for the Trust
Concerning Delaware Security Interest Matters. The opinion of
Richards, Layton & Finger, or other external counsel reasonably
satisfactory to the Purchasing Agent, as counsel for the Trust to the effect
set forth in Exhibit E hereto;

 

(6)           Opinion of Counsel for the Company
Concerning Certain Tax Matters. The opinion of Debevoise &
Plimpton, counsel for the Company, to the effect set forth in Exhibit F hereto;

 

(7)           Opinion of Counsel for the Company
Concerning Certain Insurance Insolvency Matters. The opinion of
Bass, Berry & Sims PLC, Tennessee counsel for the Company, or,
subsequent to the Initial Settlement Date, Company Approved Counsel, to the
effect set forth in Exhibit G hereto;

 

(8)           Opinion of Counsel for the Company
Concerning Certain Insurance Regulatory Matters. The opinion of
White & Case, Counsel for the Company, to the effect set forth in Exhibit H hereto;

 

3

 

(9)           Opinion of Counsel for the Agents
Concerning Certain Federal Securities Law Matters. The opinion of
Sidley Austin Brown & Wood LLP, counsel for the Agents, to the effect
set forth in Exhibit I hereto;

 

(10)         Opinion of Counsel for the Agents
Concerning Certain New York Security Interest Matters. The opinion
of Sidley Austin Brown & Wood LLP, counsel for the Agents, to the
effect set forth in Exhibit J hereto;

 

(11)         Opinion of Counsel for the Company
Concerning Certain New York Law Matters. The opinion of
Debevoise & Plimpton or Company Approved Counsel, as counsel for the
Company, to the effect set forth in Exhibit K;
and

 

(12)         Opinion of Delaware Counsel Concerning
Enforceability of the Funding Agreement. The opinion of Richards
Layton & Finger, or, subsequent to the Initial Settlement Date,
Company Approved Counsel, to the effect set forth in Exhibit L hereto.

 

(b)           Negative
Assurances. Unless otherwise agreed, on the Initial Settlement Date
and on the most recent date specified in Section VII(a),
the Company and the Trust shall have made available to the Agents or the Agents
shall have received the following negative assurances, dated as of the Initial
Settlement Date or the date set forth in Section VII(a),
if applicable, and in form and substance satisfactory to the Agents:

 

(1)           Negative Assurance of Counsel for the
Agents. The negative assurance of Sidley Austin Brown &
Wood LLP, counsel for the Agents, with respect to the matters set forth in Exhibit M hereto; and

 

(2)           Negative Assurance of Counsel for the
Company. The negative assurance of Debevoise & Plimpton or
Company Approved Counsel, as counsel for the Company, to the effect set forth
in Exhibit N hereto.

 

(c)           Company
Officer’s Certificate. On the Settlement Date there shall not have
been, since the respective dates as of which information is given in the
Prospectus, any material adverse change in the condition, financial or otherwise,
or in the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business, and the Agents shall have received a certificate
of an officer of the Company who is at least a Senior Vice President of the
Company and of the chief financial officer or chief accounting officer of the
Company, dated as of the Settlement Date or other agreed upon date to the
effect that (i) there has been no such material adverse change,
(ii) the representations and warranties of the Company herein contained
are true and correct with the same force and effect as though expressly made at
and as of the date of such certificate, (iii) the Company has complied with
all agreements and satisfied all conditions on its part to be performed or
satisfied at or prior to the date of such certificate, and (iv) no stop
order suspending the effectiveness of the Registration Statement has been
issued and no proceedings for that purpose have been instituted, are pending
or, to the best of such person’s knowledge, are threatened by the Commission.

 

(d)           Trust
Officer’s Certificate. On the Settlement Date there shall not have
been, since the respective dates as of which information is given in the
Prospectus, any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Trust,

 

4

 

whether or not arising in the ordinary course of business, and the
Agents shall have received a certificate of an officer of the Administrator of
the Trust, dated as of the Settlement Date or other agreed upon date to the
effect that (i) there has been no such material adverse change, (ii) the
representations and warranties of the Trust herein contained are true and
correct with the same force and effect as though expressly made at and as of
the date of such certificate, and (iii) the Trust has complied with all
agreements and satisfied all conditions on its part to be performed or
satisfied at or prior to the date of such certificate.

 

(e)           Comfort
Letter of Accountants to the Company. On the Initial Settlement Date
and on the most recent date specified in Section VII(b),
the Agents shall have received a letter from PricewaterhouseCoopers LLP or its
successor, as accountants to the Company (the “Accountants”), dated as of the
applicable date and in form and substance satisfactory to the Agents, to the
effect set forth in Exhibit O hereto.

 

(f)            Miscellaneous
Conditions. The obligations of the Agents to purchase Notes as
principal under this Selling Agent Agreement are further subject to the
conditions (i) of the accuracy of the representations and warranties, as
of the date on which such representations and warranties were made, or deemed
to be made pursuant to Section VI,
on the part of the Company and Trust herein contained or contained in any
certificate of an officer or trustee of the Company or Trust, respectively,
delivered pursuant to the provisions hereof, to the performance and observance
by each of the Trust and the Company of its covenants and other obligations
hereunder and (ii) that the Registration Statement has become effective
under the 1933 Act and 1934 Act, as applicable, and no stop order suspending
the effectiveness of the Registration Statement shall have been issued under
the 1933 Act, and no proceedings for such purpose shall have been instituted or
shall be pending or, to the knowledge of the Company, threatened by the
Commission and any request on the part of the Commission for additional
information shall have been complied with to the reasonable satisfaction of
counsel to the Agents.

 

Further, if specifically called for by the Purchasing Agent in this
Selling Agent Agreement the Purchasing Agent’s obligations hereunder shall be
subject to such additional conditions, including those set forth in clauses (a), (b),
(c), (d), (e), (f) and (g) of this Section, as agreed to by the parties, each
of which such agreed conditions shall be met on the Settlement Date.

 

(g)           Additional
Documents. On the Settlement Date, counsel to the Agents shall have
been furnished with such documents and opinions as such counsel may reasonably
require for the purpose of enabling such counsel to pass upon the issuance and
sale of Notes as herein contemplated, or in order to evidence the accuracy of
any of the representations and warranties, or the fulfillment of any of the
conditions, contained herein; and all proceedings taken by the Company and the
Trust in connection with the issuance and sale of Notes as herein contemplated
shall be reasonably satisfactory in form and substance to the Purchasing Agent
and to counsel to the Agents.

 

If any condition specified in this Section II
shall not have been fulfilled when and as required to be fulfilled,
this Selling Agent Agreement may be terminated by any Agent (as to itself only)
by notice to the Company and Trust at any time and any such termination shall
be without liability of any party to any other party except as provided in Section XIII hereof and except that Sections VIII, IX, XI and XII hereof shall survive any such
termination and remain in full force and effect.

 

5

 

III.

 

(a)           Covenants
of the Company and the Trust. In further consideration of your
agreements herein contained, the Company and the Trust jointly and severally
covenant and agree with each Agent as follows:

 

(i)            Preparation of Pricing Supplements.
The Company and the Trust will prepare, with respect to any Notes to be sold to
the Agents pursuant to this Selling Agent Agreement, a Pricing Supplement with
respect to such Notes in a form previously approved by the Agents and attached
as Exhibit P. The Company
and Trust will deliver such Pricing Supplement no later than 1:00 p.m.,
New York City time, on the business day following the date of the Company’s and
Trust’s acceptance of the offer for the purchase of such Notes and will file
such Pricing Supplement pursuant to Rule 424(b)(3) under the 1933 Act.

 

(ii)           Use of Proceeds. The Trust
will use the net proceeds received by it from the issuance and sale of the
Notes in the manner specified in the Prospectus.

 

(iii)          Suspension of Certain Obligations. After
the completion of the distribution of the Notes to investors other than the
Agent(s), the Company and the Trust, as applicable, shall not be required to
comply with the provisions of Sections
III(a)(i), (ii), (vi), (vii) and (viii) or Sections III(b)(i), (ii),
(vii), (viii), (x), and (xi).

 

(iv)          Listing. If listing of the
Notes is specified in the Pricing Supplement, the Company and the Trust shall
use reasonable efforts to obtain and maintain approval for the listing of the
Notes on the securities exchange designated in the Pricing Supplement until
such time as none of the Notes are outstanding.

 

(v)           Blue Sky Qualifications. The
Company and the Trust shall endeavor to qualify the Notes for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Agents shall
reasonably request and to maintain such qualifications for as long as such
Agents shall reasonably request; provided,
however, that the Company and the
Trust shall not be obligated to file any general consent to service of process
or to qualify as a foreign corporation or a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation
in respect of doing business in any jurisdiction in which it is not otherwise
so subject.

 

(vi)          The Depository Trust Company. The
Company and Trust shall assist the Agents in arranging to cause the Notes to be
eligible for settlement through the facilities of The Depository Trust Company.

 

(vii)         Notice of Amendment to Indenture or
Trust Agreement. The Trust will give the Agents at least seven
(7) days’ prior notice in writing of any proposed amendment to the
Indenture or Trust Agreement and, except in accordance with the applicable
provisions of the Indenture or Trust Agreement, not make or permit to become
effective any amendment to the Indenture or Trust Agreement which may adversely
affect the interests of the Agents or any holder of any outstanding Notes
without the consent of the affected party.

 

(viii)        Authorization to Act on Behalf of the
Trust. The Trust will, from time to time, after receiving a written
request from an Agent, deliver to the Agents a certificate as to the names and
signatures of those persons authorized to act on behalf of the Trust in
relation to the Program if such information has changed.

 

(ix)           Notice
of Meeting. The Trust will furnish to the Agents, at the same time
as it is dispatched, a copy of notice of any meeting of the holders of Notes
which is called to consider any matter which is material in the context of the
Trust.

 

6

 

(b)           Further
Covenants of the Company. The Company further covenants and agrees
with each Agent as follows:

 

(i)            Notice of Certain Events Regarding
Registration Statement, Prospectus and Ratings. Prior to the
Settlement Date, the Company with respect to the Registration Statement and
Prospectus will notify the Agents immediately, and confirm such notice in
writing of (A) the effectiveness of any post-effective amendment to the
Registration Statement or the filing of any amendment or supplement to the
Prospectus (other than any amendment or supplement thereto providing solely for
the determination of the variable terms of the notes issued pursuant to the
Registration Statement), (B) the receipt of any comments from the
Commission with respect to the Registration Statement and the Prospectus and a
Rule 462(b) Registration Statement, (C) any request by the Commission
for any amendment to the Registration Statement or any amendment or supplement
to the Prospectus or for additional information, (D) the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement, or of any order preventing or suspending the use of any preliminary
prospectus or Prospectus, or of the initiation of any proceedings for that
purpose, or (E) any change in the rating assigned by Moody’s Investors
Service, Inc. or its successor (“Moody’s”) and Standard & Poor’s
Ratings Services, a Division of The McGraw-Hill Companies, Inc. or its
successor (“S&P”)
(Moody’s and S&P are referred to herein as the “Ratings Agencies”) to
the Program, the Notes or the notes issued pursuant to the Registration
Statement, as applicable, or the withdrawal by any Ratings Agency of its rating
of the Program, the Notes, or the notes issued pursuant to the Registration
Statement, as applicable. The Company will make every reasonable effort to
prevent the issuance of any stop order and, if any stop order is issued, to
obtain the lifting thereof at the earliest possible moment.

 

(ii)           Filing or Use of Amendments.
Prior to the Settlement Date, the Company will give the Agents advance notice
of their intention to file or prepare any additional registration statement
with respect to the registration of additional notes to be issued pursuant to
the Registration Statement, any amendment or supplement to the Registration
Statement (including any filing under Rule 462(b) of the 1933 Act
Regulations) or any amendment or supplement to the prospectus included in the
Registration Statement at the time it became effective or to the Prospectus (other
than an amendment or supplement thereto providing solely for the determination
of the variable terms of the notes to be issued pursuant to the Registration
Statement), whether pursuant to the 1933 Act, the 1934 Act, or otherwise, will
furnish to such Agents copies of any such document a reasonable amount of time
prior to such proposed filing or use, as the case may be, and will not file any
such document in a form as to which an Agent or counsel for the Agents shall
reasonably object in writing, unless, in the judgment of the Company and its
counsel, such amendment or supplement is necessary to comply with law.

 

(iii)          Delivery of the Registration Statement.
The Company will furnish to the Agents and to counsel for the Agents, upon
request, without charge, one conformed copy of the Registration Statement as
originally filed and of each amendment thereto (including exhibits filed
therewith or incorporated by reference therein and documents incorporated or
deemed to be incorporated by reference therein), and copies of all consents and
certificates of experts. The Registration Statement and each amendment thereto
furnished to an Agent will be identical in all material respects to any
electronically transmitted copies thereof filed with the Commission pursuant to
EDGAR, except to the extent permitted by Regulation S-T.

 

(iv)          Delivery of the Prospectus.
The Company will furnish to each Agent, without charge, such number of copies
of the Prospectus (as amended or supplemented) as such Agent may reasonably
request. The Prospectus and any amendments or supplements thereto furnished to
such Agent will be identical in all material respects to any electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except
to the extent permitted by Regulation S-T.

 

7

 

(v)           Revisions of Prospectus—Material
Changes. If at any time prior to the Settlement Date any event shall
occur or condition exist as a result of which it is necessary, in the opinion
of counsel for the Agents, counsel for the Company or counsel for the Trust, to
amend or supplement the Registration Statement in order that the Registration
Statement will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading or to amend or supplement the Prospectus in
order that the Prospectus will not include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein not misleading in light of the circumstances existing at the time the
Prospectus is delivered to a purchaser, or if it shall be necessary, in the
opinion of any such counsel, to amend or supplement the Registration Statement
or amend or supplement the Prospectus in order to comply with the requirements
of the 1933 Act or the 1933 Act Regulations, as applicable, the Company shall
give prompt notice, confirmed in writing, to the Agents to cease the
solicitation of offers for the purchase of Notes and to cease sales of any
Notes by the Purchasing Agent, and the Company will promptly prepare and file
with the Commission subject to Section III(b)(ii) hereof,
such amendment or supplement as may be necessary to correct such statement or
omission or to make the Registration Statement and Prospectus comply with such
requirements, and the Company will furnish to the Agents, without charge, such
number of copies of such amendment or supplement as the Agents may reasonably
request. In addition, the Company will comply with the 1933 Act, the 1933 Act
Regulations, the 1934 Act and the rules and regulations of the Commission under
the 1934 Act (the “1934 Act
Regulations”) so as to permit the completion of the
distribution of each offering of Notes.

 

(vi)          Reporting Requirements. The
Company, during the period when the Prospectus is required to be delivered
under the 1933 Act or the 1934 Act, will file all documents required to be
filed with the Commission pursuant to Sections 13, 14 or 15 of the 1934 Act
within the time periods prescribed by the 1934 Act and the 1934 Act
Regulations.

 

(vii)         Outstanding Aggregate Principal Amount
of Notes. The Company will promptly, upon request by an Agent,
notify such Agent of the aggregate principal amount of notes issued pursuant to
the Registration Statement from time to time outstanding under the Program in
their currency of denomination and (if so requested) expressed in United States
dollars. For the purpose of determining the aggregate principal amount of such
notes outstanding (A) the principal amount of notes issued pursuant to the
Registration Statement, denominated in a currency other than United States
dollars shall be converted into United States dollars using the spot rate of
exchange for the purchase of the relevant currency against payment of United
States dollars being quoted by the Paying Agent (as defined in the Indenture)
on the date on which the relevant notes issued pursuant to the Registration
Statement were initially offered, (B) any notes issued pursuant to the
Registration Statement which provide for an amount less than the principal
amount thereof to be due and payable upon redemption following an Event of
Default (as defined in the Indenture) in respect of such notes issued pursuant
to the Registration Statement, shall have a principal amount equal to their
redemption amount, (C) any zero coupon (and any other notes issued
pursuant to the Registration Statement issued at a discount or premium) shall
have a principal amount equal to their price to the public and (D) the
currency in which any notes issued pursuant to the Registration Statement are
payable, if different from the currency of their denomination, shall be
disregarded.

 

(viii)        Notice of Certain Events Regarding 1934
Act Filings and Ratings. Prior to the Settlement Date, the Company
with respect to its filings with the Commission under the 1934 Act will notify
the Agents immediately, and confirm such notice in writing, as applicable, of
(A) the receipt of any comments from the Commission, (B) any request
by the Commission for any amendments to such filings, (C) the issuance by
the Commission of any stop order suspending the effectiveness of such

 

8

 

filings, or of the initiation of any proceedings for that purpose or
(D) any change in the rating assigned by any Ratings Agency to any debt
securities or financial strength of the Company, or the withdrawal by any
Ratings Agency of its rating of any debt securities or the financial strength
of the Company. The Company will make every reasonable effort to prevent the
issuance of any stop order and, if any stop order is issued, to obtain the
lifting thereof at the earliest possible moment.

 

(ix)           Earnings Statements. The
Company will timely file such reports pursuant to the 1934 Act and the 1934 Act
Regulations, as are necessary in order to make generally available to its
securityholders as soon as practicable an earnings statement for the purposes
of, and to provide the benefits contemplated by, the last paragraph of
Section 11(a) of the 1933 Act.

 

(x)            Restrictions on the Offer and Sale
of Funding Agreements. Except pursuant to a Distribution Agreement
or any other selling agent agreement in connection with the Retail Program, the
Company shall not issue or agree to issue, during the period commencing on the
date of this Selling Agent Agreement and continuing to and including the
Settlement Date with respect to such Notes, any Funding Agreement or similar
agreement for the purpose of supporting the issuance by a special purpose
entity of securities denominated in the same currency or substantially similar
to such Notes, in each case without prior notice to the applicable Agents.

 

(xi)           Use of Proceeds. The
Company will use the net proceeds received by it from the issuance and sale of
the Funding Agreement in the manner specified in the Prospectus.

 

IV.

 

(a)           Solicitations
as Agent. The Agents propose to solicit offers to purchase the Notes
upon the terms and conditions set forth herein and in the Prospectus and upon
the terms communicated to the Agents from time to time by the Company and the
Trust or the Purchasing Agent, as the case may be. For the purpose of such
solicitation, the Agents are not authorized, without the prior written consent
of the Company, to provide any written information relating to the Company and
the Trust to any prospective purchaser other than the Prospectus as then
amended or supplemented which has been most recently distributed to the Agents
by the Company, and the Agents will solicit offers to purchase only as
permitted or contemplated thereby and herein and will solicit offers to
purchase the Notes only as permitted by the 1933 Act and the applicable
securities laws or regulations of any jurisdiction. The Company and the Trust
reserve the right, in their sole discretion, to suspend solicitation of offers
to purchase the Notes commencing at any time for any period of time or
permanently. Upon receipt of instructions (which may be given orally) from the
Company and the Trust, the Agents will suspend promptly solicitation of offers
to purchase until such time as the Company and the Trust has advised the Agents
that such solicitation may be resumed.

 

Unless otherwise instructed by the Company and the Trust, the Agents
are authorized to solicit offers to purchase the Notes only in denominations of
$1,000 or more (in multiples of $1,000). The Agents are not authorized to
appoint subagents or to engage the services of any other broker or dealer in
connection with the offer or sale of the Notes without the consent of the
Company and the Trust. Each Agent shall have the right, in its discretion
reasonably exercised, to reject any proposed purchase of Notes, as a whole or
in part, and any such rejection shall not be deemed a breach of its agreements
contained herein. The Company and the Trust agree to pay the Purchasing Agent,
as consideration for soliciting offers to purchase Notes pursuant to the
Selling Agent Agreement, a concession in the form of a discount equal to the
percentages of the initial offering price of each Note actually sold as set
forth in Exhibit Q hereto
(the “Concession”);
provided, however, that the
Company, the Trust and the Purchasing Agent may agree also to a Concession
greater than or less than the percentages set forth on Exhibit Q hereto. The actual
aggregate Concession with respect to the Notes will be set forth in the related
Pricing Supplement. The Purchasing Agent and the other Agents or Selected
Dealers will share the above-mentioned Concession in such proportions as they
may agree.

 

9

 

Unless otherwise authorized by the Company and the Trust, all Notes
shall be sold to the public at a purchase price not to exceed 100% of the
principal amount thereof, plus accrued interest, if any. Such purchase price
shall be set forth in the confirmation statement of the Agent or Selected
Dealer responsible for such sale and delivered to the purchaser along with a
copy of the Prospectus (if not previously delivered) and Pricing Supplement.

 

(b)           Sale
of Notes. The Company and the Trust shall not sell Notes in excess
of the aggregate initial offering price of notes registered pursuant to the
Registration Statement and any additional aggregate offering price of notes
registered pursuant to a Rule 462(b) Registration Statement. The Agents
shall have no responsibility for maintaining records with respect to the
aggregate initial offering price of notes sold (including the Notes), or of
otherwise monitoring the availability of notes for sale, under the Registration
Statement.

 

(c)           Administrative
Procedures. Procedural details relating to the issue and delivery
of, and the solicitation of purchases and payment for, the Notes are set forth
in the Administrative Procedures attached hereto as Exhibit R (the “Procedures”), as amended from time to time.
Unless otherwise provided in a Selling Agent Agreement, the provisions of the
Procedures shall apply to all transactions contemplated hereunder. Unless
otherwise agreed, the Agents, the Company and the Trust shall perform, and the
Company agrees to cause the Administrator and Indenture Trustee to perform,
their respective duties and obligations specifically provided to be performed
by each in the Procedures as amended from time to time. The Procedures may only
be amended by written agreement of the Company, the Trust and the Agents.

 

V.

 

Purchases as Principal.
Each sale of Notes shall be made in accordance with the terms of this Selling
Agent Agreement which provides for the sale of such Notes to, and the purchase
and reoffering thereof by, the Purchasing Agent as principal. This Selling
Agent Agreement may also specify certain provisions relating to the reoffering
of such Notes by the Purchasing Agent. The offering of Notes by the Trust
hereunder and the Purchasing Agent’s agreement to purchase Notes pursuant to
the Selling Agent Agreement shall be deemed to have been made on the basis of
the representations, warranties and agreements of the Company and the Trust
herein contained and shall be subject to the terms and conditions herein set
forth. This Selling Agent Agreement describes the Notes to be purchased
pursuant thereto by the Purchasing Agent as principal, and specifies, among
other things, the principal amount of Notes to be purchased, the interest rate
or formula and maturity date or dates of such Notes, the interest payment
dates, if any, the net proceeds to the Trust, the initial public offering price
at which the Notes are proposed to be reoffered, and the time and place of
delivery of and payment for such Notes, whether the Notes provide for a
Survivor’s Option, whether the Notes are redeemable or repayable and on what
terms and conditions, and any other relevant terms.

 

VI.

 

(a)           Representations
and Warranties of the Trust and the Company. Each of the Trust and
the Company jointly and severally represent and warrant to each Agent as of the
date hereof, as of the Settlement Date and as of any time prior to the
Settlement Date that the Registration Statement or the Prospectus shall be
amended or supplemented (other than by an amendment or supplement providing
solely for the determination of the variable terms of the notes issued pursuant
to the Registration Statement, including the establishment of or a change in
the interest rates, maturity or price of Notes or similar changes) (each of the
times referenced above being referred to herein as a “Representation Date”)
as follows:

 

(i)            Due Formation and Good Standing of
the Trust. The Trust is either a statutory trust or common law
trust, as specified in this Selling Agent Agreement, duly formed under Delaware
law

 

10

 

pursuant to the Trust Agreement and, if the Trust is a statutory trust,
the filing of a certificate of trust with the Delaware Secretary of State,
which is validly existing and in good standing as a statutory trust or common
law trust, as applicable, under the laws of the State of Delaware.

 

(ii)           No Material Changes. Since
the respective dates as of which information is given in the Registration
Statement and the Prospectus, except as otherwise stated therein,
(A) there has been no event or occurrence that would reasonably be
expected to have a material adverse effect on the condition (financial or
otherwise) of the Trust or on the power or ability of the Trust to perform its
obligations under this Selling Agent Agreement, the Indenture, the Trust
Agreement, the Funding Agreement(s), the Administrative Services Agreement (the
“Administration
Agreement”), between the Trustee, on behalf of the Trust, and
the Administrator, the License Agreement (the “License Agreement”) between the Trust
and Protective Life Corporation or the Notes or to consummate the transactions
to be performed by it as contemplated in the Prospectus (a “Trust Material Adverse Effect”)
and (B) there have been no transactions entered into by the Trust, other
than those related to the Retail Program or in the ordinary course of business,
which are material with respect to the Trust.

 

(iii)          Authorization of this Selling Agent
Agreement, each Funding Agreement, the Trust Agreement, the Indenture, the
Administration Agreement, the License Agreement and the Notes. This
Selling Agent Agreement, each relevant Funding Agreement, the Indenture, the
Administration Agreement and the License Agreement have been or will be duly
authorized, executed and delivered by the Trust. Assuming that each party to
this Selling Agent Agreement, each relevant Funding Agreement, the Trust
Agreement, the Administration Agreement, the License Agreement and the
Indenture other than the Trust, as applicable, has duly authorized, executed
and delivered each such agreement, then this Selling Agent Agreement, each
relevant Funding Agreement, the Trust Agreement, the Administration Agreement,
the Indenture and the License Agreement will each be a valid and legally
binding agreement of the Trust enforceable against the Trust in accordance with
its terms, as applicable, except (A) as enforcement thereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or by general
equitable principles (regardless of whether enforcement is considered in a
proceeding in equity or at law), and (B) except as enforcement thereof may
be limited by requirements that a claim with respect to the Notes issued under
the Indenture that are payable in a foreign or composite currency (or a foreign
or composite currency judgment in respect of such claim) be converted into U.S.
dollars at a rate of exchange prevailing on a date determined pursuant to
applicable law or by governmental authority to limit, delay or prohibit the
making of payments outside the United States, and (C) that no
representation or warranty is made with respect to the enforceability of Section VIII hereof, and
(D) that no representation or warranty is made with respect to the
enforceability of the Funding Agreement(s) to the extent that the source of the
funds used by the Trust to purchase such Funding Agreement renders such funds,
or any property or investment acquired with such funds, subject to governmental
seizure or other penalty under the USA Patriot Act of 2001, as amended, or any
other law, rule or regulation, relating to money laundering, terrorist
financing or other illegal activities; the Notes have been duly authorized by
the Trust for offer, sale, issuance and delivery pursuant to this Selling Agent
Agreement and, when issued, authenticated and delivered in the manner provided
for in the Indenture and delivered against payment of the consideration
therefor, will constitute valid and legally binding obligations of the Trust,
enforceable against the Trust in accordance with their terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally or by general equitable principles (regardless of whether enforcement
is considered in a proceeding in equity or at law). Subject to the exceptions
set forth in the preceding sentence, the Notes, when executed by the Trust and
issued, authenticated and delivered in the manner provided for in the

 

11

 

Indenture and delivered against payment of the consideration therefor, will
be entitled to the benefits of the Indenture.

 

(iv)          Absence of Defaults and Conflicts.
The Trust is not in violation of its certificate of trust, if applicable, or in
default in the performance or observance of any obligation, agreement, covenant
or condition contained in any contract, indenture, mortgage, loan or credit
agreement, note, lease or other agreement or instrument to which the Trust is a
party or by which it may be bound or to which any of the property or assets of
the Trust is subject (the “Trust
Agreements and Instruments”), except for such violations or
defaults that would not reasonably be expected to result in a Trust Material
Adverse Effect; and (A) the execution, delivery and performance of this
Selling Agent Agreement, the Indenture, the Notes, each Funding Agreement, the
Administration Agreement, the License Agreement and any other agreement or
instrument entered into or issued or to be entered into or issued by the Trust
in connection with the transactions contemplated by the Prospectus,
(B) the performance of the Trust Agreement (all agreements and instruments
referenced in clauses (A) and (B) above are referred to herein as the
“Program Documents”),
(C) the consummation of the transactions contemplated in the Prospectus
(including the issuance and sale of the Notes and the use of proceeds therefrom
as described in the Prospectus) and (D) the compliance by the Trust with
its obligations under the Program Documents do not and will not constitute a
breach, violation or default which (1) gives the holder of any note,
debenture or other evidence of indebtedness (or any person acting on such
holder’s behalf) the right to require the repurchase, redemption or repayment
of all or a portion of such indebtedness by the Trust under, or (2) result
in the creation or imposition of any lien, charge or encumbrance upon any
assets, properties or operations of the Trust pursuant to, any Trust Agreements
and Instruments, nor will such action result in any violation of the Trust’s
certificate of trust, if applicable, the Trust Agreement and the Trust is not
in default in the performance or observance of any applicable law, statute,
rule, regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the
Trust or any of its assets, properties or operations; provided that no representation or
warranty is made with respect to the Funding Agreement(s) to the extent that
the source of the funds used by the Trust to purchase such Funding Agreement
renders such funds, or any property or investment acquired with such funds,
subject to governmental seizure or other penalty under the USA Patriot Act of
2001, as amended, or any other law, rule or regulation, relating to money
laundering, terrorist financing or other illegal activities; provided further that in the case of
clause (1) of this paragraph (viii), this representation and warranty
shall not extend to such repurchase, redemption or repayment that would not
result in a Trust Material Adverse Effect and in the case of clause (2) of
this paragraph (viii), this representation and warranty shall not extend
to such lien, charges or encumbrances or any violations or defaults that would
not result in a Trust Material Adverse Effect.

 

(v)           Absence of Proceedings. There
is no action, suit, proceeding or investigation pending of which the Company or
the Trust has received notice or service of process, or before or brought by
any court or governmental agency or body, domestic or foreign or to the
knowledge of the Company or Trust threatened, against or affecting the Trust
which is required to be disclosed in the Registration Statement and the
Prospectus (other than as stated therein), or which may reasonably be expected
to individually or in the aggregate result in a Trust Material Adverse Effect.

 

12

 

(vi)          No Filings, Regulatory Approvals.
Other than as set forth or contemplated in the Prospectus, no filing with, or
approval, authorization, consent, license, registration, qualification, order
or decree of, any court or governmental authority or agency, domestic or
foreign, is necessary or required for the issuance and sale of the Notes, by
the Trust, except such as have been previously made, obtained or rendered, as
applicable and except such consents, approvals, authorizations, registrations
or qualifications as may be required under the 1933 Act and the 1939 Act or
under state or foreign securities or Blue Sky laws or any rules or regulations
of any securities exchange.

 

(vii)         Investment Company Act. The
Trust is not, and upon the sale of the Notes as herein contemplated and the
application of the net proceeds therefrom as described in the Prospectus will
not be, required to register as an “investment company” within the meaning of
the Investment Company Act of 1940, as amended (the “1940 Act”).

 

(viii)        Ratings. The Program under
which the Notes are issued, as well as the Notes, as applicable, are rated by
Moody’s and by S&P as set forth in Schedule 1 to the Omnibus
Instrument, or such other rating as to which the Company shall have most
recently notified the Agents pursuant to Section III(b)(i) hereof.
Except as otherwise disclosed to the Agents in writing, to the knowledge of the
Company and the Trust, no Ratings Agency has issued any public announcement or
informed the Trust or the Company that such Ratings Agency has under
surveillance or review, with possible negative implications, its rating of the
Program or the Notes or any notes issued pursuant to the Registration
Statement, as applicable, or the withdrawal of the rating of the Program, the
Notes, or any notes issued pursuant to the Registration Statement, as
applicable, by such Ratings Agency.

 

(ix)           Notes Listed on any Stock Exchange.
If specified in the applicable Pricing Supplement, the Notes described in such
Pricing Supplement shall be listed on the securities exchange designated in the
Pricing Supplement.

 

(x)            Beneficial Interest. The
beneficial interest of the Trust when issued will be duly authorized and, when
registered in the Securities Register (as defined in the Trust Agreement) in
accordance with the provisions of the Trust Agreement, will be a valid and
binding obligation of the Trust, enforceable in accordance with its terms, except
as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, conservatorship, receivership or similar laws affecting
creditors’ rights generally or by general principles of equity.

 

(xi)           Security Interest. As
required by the Indenture, the Trust pursuant to the Indenture, will create, in
favor of the Indenture Trustee, for the benefit of the holders of Notes a first
priority perfected security interest in the Collateral (as defined in the
Indenture), under New York law or the law of such other applicable jurisdiction
whose law governs such perfection, non-perfection or priority.

 

(b)           Further
Representations and Warranties of the Company. The Company further
represents and warrants to each Agent as of each Representation Date as follows:

 

(i)            Due Incorporation, Good Standing and
Due Qualification of the Company. The Company is a corporation duly
incorporated and validly existing under the laws of the State of Tennessee with
corporate power and authority to own its properties and to conduct its business
as described in the Prospectus; the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each jurisdiction
in which such qualification is required, except where the failure to so qualify
or be in good standing would not reasonably be expected to result in a material
adverse change in the condition (financial or otherwise) or in the earnings,
results of operations or business prospects of the Company and its subsidiaries
considered as one enterprise or on the power or ability of the Company to
perform its obligations under the Program

 

13

 

Documents to which the Company is a party or to consummate the
transactions to be performed by the Company as contemplated in the Prospectus
(a “Company Material
Adverse Effect”); all of the issued and outstanding shares of
capital stock of the Company have been duly authorized and are validly issued,
fully paid and non-assessable; and none of the outstanding shares of capital
stock of the Company were issued in violation of preemptive or other similar
rights of any securityholder of the Company.

 

(ii)           Due Incorporation, Good Standing and
Due Qualification of Significant Subsidiaries. West Coast Life
Insurance Company (“West
Coast Life”) has been duly organized and is validly existing as
a corporation in good standing under the laws of the jurisdiction of its
incorporation, has corporate power and authority to own its properties and
conduct its business as described in the Prospectus and is duly qualified as a
foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, except where the failure
to so qualify or be in good standing would not reasonably be expected to result
in a Company Material Adverse Effect; all of the issued and outstanding shares
of capital stock of West Coast Life has been duly authorized and is validly
issued, fully paid and non-assessable and is owned by the Company, directly or through
subsidiaries, free and clear of any perfected security interest and, to the
Company’s best knowledge, any other security interest, mortgages, pledges,
claims, liens, or encumbrances.

 

(iii)          Registration Statement and Prospectus;
Filing Status. The Company meets the requirements for use of
Form S-3 under the 1933 Act; the Registration Statement (or any
Rule 462(b) Registration Statement) has become effective under the 1933
Act and no stop order suspending the effectiveness of the Registration
Statement (or any Rule 462(b) Registration Statement) has been issued
under the 1933 Act and no proceedings for that purpose have been instituted or
are pending or, to the knowledge of the Company, are threatened by the
Commission, and any request on the part of the Commission for additional
information has been complied with; the Indenture has been duly qualified under
the 1939 Act; at the respective times that the Registration Statement
(including any Rule 462(b) Registration Statement) and any post-effective
amendment thereto (including the filing of the Company’s most recent Annual
Report on Form 10-K with the Commission) became effective and at each
Representation Date the Registration Statement (including any Rule 462(b)
Registration Statement) and any amendments thereto complied and will comply in
all material respects with the requirements of the 1933 Act and the 1933 Act
Regulations, the 1934 Act and the 1934 Act Regulations and the 1939 Act and the
rules and regulations of the Commission under the 1939 Act and did not and will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; each preliminary prospectus and Prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment thereto,
or filed pursuant to Rule 424 under the 1933 Act, complied when so filed
in all material respects with the 1933 Act and the 1933 Act Regulations; each
preliminary prospectus and the Prospectus delivered to an Agent for use in
connection with an offering of Notes will, at the time of such delivery, be
identical in all material respects to any electronically transmitted copies
thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation S-T of the 1933 Act Regulations; and at the date
hereof, at the date of the Prospectus and each amendment or supplement thereto
and at each Representation Date, neither the Prospectus nor any amendment or
supplement thereto included or will include an untrue statement of a material
fact or omitted or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however,
that the representations and warranties in this subsection shall not apply to
(A) statements in or omissions from the Registration Statement or the
Prospectus made in reliance upon and in conformity with information furnished
to the Company in writing by the applicable Agents expressly for use in the
Registration Statement or the Prospectus or (B) that part of the

 

14

 

Registration Statement which constitutes the Statements of Eligibility
and Qualification (Form T-1) under the 1939 Act of the Trustee and the
Indenture Trustee.

 

(iv)          Incorporated Documents. The
documents incorporated or deemed to be incorporated by reference in the
Prospectus, at the time they were or hereafter are filed with the Commission,
complied and will comply in all material respects with the requirements of the
1934 Act and the 1934 Act Regulations.

 

(v)           Independent Accountants. The
accountants who certified the financial statements and any supporting schedules
thereto included in the Registration Statement and the Prospectus are
independent public accountants as required by the 1933 Act and the 1933 Act
Regulations.

 

(vi)          Company Financial Statements.
The consolidated financial statements of the Company included in the Registration
Statement and the Prospectus, together with the related schedules and notes,
present fairly the consolidated financial position of the Company and its
subsidiaries, at the dates indicated and the consolidated statement of income,
stockholders’ equity and cash flows of the Company and its subsidiaries, for
the periods specified; such financial statements have been prepared in
conformity with United States generally accepted accounting principles (“GAAP”) applied on a
consistent basis throughout the periods involved; the supporting schedules of
the Company, if any, included in the Registration Statement and the Prospectus
present fairly in accordance with GAAP the information required to be stated
therein; the selected financial data and the summary financial information of
the Company included in the Registration Statement and the Prospectus present
fairly the information shown therein and have been compiled on a basis
consistent with that of the audited financial statements of the Company included
in the Registration Statement and the Prospectus.

 

(vii)         Descriptions of the Program Documents.
The statements relating to the Program Documents (as defined herein) contained
in the Prospectus conform and will conform in all material respects to Program Documents
and the Program Documents are substantially in the form filed or incorporated
by reference, as the case may be, as exhibits to the Registration Statement.

 

(viii)        Authorization of this Selling Agent
Agreement and each Funding Agreement. This Selling Agent Agreement
has been and each Funding Agreement when issued will be duly authorized,
executed and delivered by the Company and, assuming that each party to this
Agreement and each Funding Agreement, other than the Company, has duly
authorized executed and delivered such agreement, then this Selling Agent
Agreement and each Funding Agreement will be a valid and legally binding
agreement of the Company, enforceable against the Company in accordance with
its terms, except (A) as enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally or by general equitable principles
(regardless of whether enforcement is considered in a proceeding in equity or
at law), (B) that no representation or warranty is made with respect to
the enforceability of Section VIII
hereof and (C) that no representation or warranty is made with respect to
the enforceability of the Funding Agreement(s) to the extent that the source of
the funds used by the Trust to purchase such Funding Agreement(s) renders such
funds, or any property or investment acquired with such funds, subject to
governmental seizure or other penalty under the USA Patriot Act of 2001, as
amended, or any other law, rule or regulation, relating to money laundering,
terrorist financing or other illegal activities.

 

(ix)           Absence of Defaults and Conflicts.
Neither the Company nor West Coast Life is in violation of the provisions of
its charter or by-laws or in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or
other agreement or instrument to which the Company or West Coast Life is a
party or by which they may be bound or to which any of the property or assets
of the Company or West Coast Life is subject (collectively, “Company

 

15

 

Agreements and
Instruments”), except for such defaults that would
not result in a Company Material Adverse Effect; the execution, delivery and
performance of this Selling Agent Agreement, each Funding Agreement and any
other agreement or instrument entered into or issued or to be entered into or issued
by the Company in connection with the transactions contemplated in the
Prospectus, the consummation of the transactions contemplated in the Prospectus
(including the issuance and sale of the Notes and the use of the proceeds
therefrom as described in the Prospectus) and the compliance by the Company
with its obligations thereunder do not and will not constitute a breach,
violation or default which (A) gives the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all or a
portion of such indebtedness by the Company or West Coast Life under, or
(B) result in the creation or imposition of any lien, charge or
encumbrance upon any assets, properties or operations of the Company or West
Coast Life pursuant to, any Company Agreements and Instruments, nor will such
action result in any violation of the provisions of the charter, articles or
by-laws of the Company or West Coast Life or any applicable law, statute, rule,
regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the
Company or West Coast Life or any of their assets, properties or operations; provided that no representation or
warranty is made with respect to the Funding Agreement(s) to the extent that
the source of the funds used by the Trust to purchase such Funding Agreement(s)
renders such funds, or any property or investment acquired with such funds,
subject to governmental seizure or other penalty under the USA Patriot Act of
2001, as amended, or any other law, rule or regulation, relating to money
laundering, terrorist financing or other illegal activities; provided that in the case of clause (A)
of this paragraph (ix), this representation and warranty shall not extend
to such repurchase, redemption or repayment that would not result in a Company
Material Adverse Effect and in the case of clause (B) of this
paragraph (ix), this representation and warranty shall not extend to such
lien, charges or encumbrances or any violations or defaults that would not
result in a Company Material Adverse Effect.

 

(x)            Absence of Proceedings. There
is no action, suit, proceeding or investigation pending of which the Company
has received notice or service of process, or before or brought by any court or
governmental agency or body, domestic or foreign, or to the knowledge of the
Company threatened, against the Company which is required to be disclosed in the
Registration Statement and the Prospectus (other than as stated therein), or
which would individually or in the aggregate result in a Company Material
Adverse Effect.

 

(xi)           Possession of Licenses and Permits.
Each of the Company and West Coast Life is duly organized and licensed as an
insurance company in its state of incorporation and is duly licensed or
authorized as an insurer in each other jurisdiction where it is required to be
so licensed or authorized, with corporate power to conduct its business as described
in the Prospectus (except for any such jurisdiction in which the failure to be
so licensed or authorized would not reasonably be expected to have a Company
Material Adverse Effect); and except as otherwise specifically described in the
Prospectus, neither the Company nor West Coast Life has received any
notification from any federal, state, local or foreign regulatory authority to
the effect that any additional authorization, approval, order, consent,
license, certificate, permit, registration or qualification from such federal,
state, local or foreign regulatory authority is needed to be obtained by either
the Company or West Coast Life in any case where it would be reasonably
expected that the failure to obtain any such additional authorization, approval,
order, consent, license, certificate, permit, registration or qualification
would have a Company Material Adverse Effect.

 

(xii)          No Filings, Regulatory Approvals.
Other than as set forth or contemplated in the Prospectus, no filing with, or
approval, authorization, consent, license, registration, qualification, order
or decree of, any court or governmental authority or agency, domestic or
foreign, is

 

16

 

necessary or required for the issuance and sale of the Funding
Agreements by the Company, except such as have been previously made, obtained
or rendered, as applicable and except such consents, approvals, authorizations,
registrations or qualifications as may be required under the 1933 Act and the 1939
Act or under state or foreign securities or Blue Sky laws or any rules or
regulations of any securities exchange.

 

(xiii)         Investment Company Act. The
Company is not, and upon the issuance and sale of the Notes as herein
contemplated and the application of the net proceeds therefrom as described in
the Prospectus will not be required to register as an “investment company”
within the meaning of the 1940 Act.

 

(xiv)        Ratings. The Company’s
financial strength is rated by Moody’s and S&P as set forth in Schedule 1
to the Omnibus Instrument, or such other rating as to which the Company shall
have most recently notified the Agents pursuant to Section III(b)(i) hereof. Except as otherwise disclosed
to the Agents in writing, to the Company’s knowledge, no Ratings Agency has
issued any public announcement or informed the Company that such Ratings Agency
has under surveillance or review, with possible negative implications, its
rating of the financial strength of the Company, or the withdrawal of the
financial strength rating of the Company.

 

(xv)         Absence of Default Under Each Funding
Agreement. To the Company’s knowledge there exists no event or
circumstance which does or may (with the passing of time, the giving of notice,
the making of any determination, or any combination thereof) be reasonably
expected to constitute an event of default under any outstanding funding
agreement issued in connection with the Registration Statement.

 

(c)           Additional
Certifications. Any certificate signed by the Administrator or any
officer of the Trustee or the Company and delivered to the Purchasing Agent or
to counsel for the Purchasing Agent in connection with an offering of Notes or
the sale of Notes to the Purchasing Agent as principal shall be deemed a
representation and warranty by the Trust and the Company to the Agents as to
the matters covered thereby on the date of such certificate.

 

VII.

 

(a)           Subsequent
Delivery of Negative Assurances. In the event that:

 

(i)            the
Registration Statement or Prospectus has been amended or supplemented (other
than (1) by an amendment or supplement providing solely for the
determination of the variable terms of the notes issued pursuant to the
Registration Statement or (2) the Company has filed any report under
Section 13 or 15(d) of the 1934 Act) (each, a “Registration Statement Amendment”),

 

(ii)           the
Company has filed, pursuant to the 1934 Act, its quarterly report on
Form 10-Q or annual report on Form 10-K, as the case may be (each, a “Company Periodic Report”),
or

 

(iii)          the
Company, the Trust and the applicable Agents so agree (each, a “Take Down Request”),

 

17

 

then the Company shall furnish or cause to be furnished to the Agents
and any other agent that has entered into a selling agent agreement in
connection with the Retail Program (collectively the “Retail Agents”) and
to counsel to the Agents, promptly upon such Registration Statement Amendment,
Company Periodic Report or Take Down Request, as the case may be, the negative
assurance of Company Approved Counsel and the negative assurance of Sidley
Austin Brown & Wood LLP, legal counsel to the Agents, dated the date
of filing or effectiveness of such Registration Statement Amendment, as
applicable, the date of the Company Periodic Report or the date agreed to in
such Take Down Request, as the case may be, in form and substance satisfactory
to the Purchasing Agent, of substantially the same tenor as the letters
referred to in Section II(b)(2)
and Section II(b)(1) hereof,
respectively, but modified, as necessary, to relate to the Registration
Statement and the Prospectus as amended and supplemented to the time of
delivery of such letter or, in lieu of such letter, counsel last furnishing
such negative assurance to any Retail Agent shall furnish the Retail Agents
with a letter substantially to the effect that the Retail Agents may rely on
such last negative assurance to the same extent as though it was dated the date
of such letter authorizing reliance (except that statements in such last
negative assurance shall be deemed to relate to the Registration Statement and
the Prospectus as amended and supplemented to the time of delivery of such
letter authorizing reliance).

 

(b)           Subsequent
Delivery of Comfort Letters. In the event of a:

 

(i)            Registration
Statement Amendment,

 

(ii)           Company
Periodic Report, or

 

(iii)          Take
Down Request,

 

then the Company shall cause the Accountants forthwith to furnish to
the Retail Agents promptly upon such Registration Statement Amendment or
Company Periodic Report or Take Down Request, a letter, dated the date of
filing or effectiveness of such Registration Statement Amendment, as
applicable, or the date of the Company Periodic Report or the date agreed to in
such Take Down Request, as the case may be, in form reasonably satisfactory to
the Purchasing Agent, of substantially the same tenor as the letter referred to
in Section II(e) hereof but
modified to relate to the Registration Statement and Prospectus as amended and
supplemented to the date of such letter; provided
however, that if the Registration Statement or Prospectus is amended
or supplemented solely to include unaudited financial information as of and for
a fiscal quarter, the accountants to the Company may limit the scope of such
letter to the unaudited financial statements included in such amendment or
supplement.

 

VIII.

 

(a)           Indemnification
of the Agents. The Company and Trust agree to jointly and severally
indemnify and hold harmless each Agent and each person, if any, who controls
such Agent within the meaning of Section 15 of the 1933 Act against any
and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of an untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement (or any amendment thereto) or the
omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or arising
out of an untrue statement or alleged untrue statement of a material fact
included in any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided, however, that this indemnity
does not apply to (i) any loss, liability, claim, damage or expense to the
extent arising out of an untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written
information furnished to the Company or Trust by the Agents expressly for use
in the Registration Statement (or any amendment thereto) or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto), (ii) any
loss, liability, claim, damage or expense arising out of any statements in or
omissions from that part of the

 

18

 

Registration Statement which constitutes the Statements of Eligibility
and Qualification (Form T-1) under the 1939 Act of the Indenture Trustee
or (iii) with respect to any preliminary prospectus to the extent that any
such loss, claim, expense, damage or liability of such Agent results from the
fact that such Agent sold Notes to a person as to whom it shall be established
by the Company and the Trust that there was not sent or given, at or prior to
the written confirmation of such sale, a copy of the Prospectus (as amended or
supplemented) in any case where such delivery is required by the 1933 Act, if
such Agent failed to make reasonable efforts generally consistent with the then
prevailing industry practice to effect such delivery and the Company and the
Trust has previously furnished copies thereof in sufficient quantities to such
Agent and the loss, claim, expense, damage or liability of such Agent results
from an untrue statement or omission of a material fact contained in the
preliminary prospectus that was corrected in the Prospectus.

 

(b)           Indemnification
of the Company and the Trust. Each Agent agrees, severally but not
jointly, to indemnify and hold harmless the Company, the Trust, their
directors, officers and trustees (if applicable) who signed the Registration
Statement and each person, if any, who controls the Company or Trust within the
meaning of Section 15 of the 1933 Act against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section VIII(a) hereof, as incurred,
but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement (or any amendment
thereto) or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
furnished to the Company or the Trust by such Agent expressly for use in the
Registration Statement (or any amendment thereto) or such preliminary
prospectus or the Prospectus (or any amendment or supplement thereto).

 

(c)           Actions
Against Parties; Notification. Each indemnified party shall give
notice as promptly as reasonably practicable to each indemnifying party of any
action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this
indemnity agreement. In the case of parties indemnified pursuant to Section VIII(a) hereof, counsel to
the indemnified parties shall be selected by the applicable Agents and, in the
case of parties indemnified pursuant to Section VIII(b)
hereof, counsel to the indemnified parties shall be selected by the Company. An
indemnifying party may participate at its own expense in the defense of any
such action; provided, however,
that counsel to the indemnifying party shall not (except with the consent of
the indemnified party, which consent shall not be unreasonably withheld) also
be counsel to the indemnified party. In no event shall the indemnifying parties
be liable for fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances.

 

No indemnifying party shall, without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld), settle
or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section VIII hereof (whether or not
the indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent (i) is for monetary damages only,
(ii) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim
and (iii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

 

(d)           Settlement
Without Consent if Failure to Reimburse. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of any claim, suit,

 

19

 

litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, arising out of the events or
occurrences described in Section VIII(a)
(if the Company and Trust are the indemnifying parties) or Section VIII(b) (if an Agent is an
indemnifying party), and such settlement is effected without the indemnifying
party’s written consent if (i) such settlement is entered into more than
45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of
such settlement at least 30 days prior to such settlement being entered
into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement. Notwithstanding the immediately preceding sentence, if at any time
an indemnified party shall have requested an indemnifying party to reimburse
the indemnified party for fees and expenses of counsel, an indemnifying party
shall not be liable for any settlement of the nature contemplated by this Section VIII(d) effected without its
consent if such indemnifying party (i) reimburses such indemnified party
in accordance with such request to the extent it considers such request to be
reasonable and (ii) provides written notice to the indemnified party
substantiating the unpaid balance as unreasonable, in each case prior to the
date of such settlement.

 

(e)           Contribution.
If the indemnification provided for in Section VIII hereof is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein (other than as
provided therein), then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company and the
Trust, on one hand, and the applicable Agents, on the other hand, from the
offering of the Notes, as the case may be, that were the subject of the claim
for indemnification or (ii) if the allocation provided by clause (i)
is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Company and Trust, on one hand, and the
applicable Agents, on the other hand, in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

 

The relative benefits received by the Company and the Trust, on the one
hand, and the applicable Agents, on the other hand, in connection with the
offering of the Notes, as the case may be, that were the subject of the claim for
indemnification shall be deemed to be in the same respective proportions as the
total net proceeds from the offering of such Notes (before deducting expenses)
received by the Trust and the total discount or commission received by the
applicable Agents, as the case may be, bears to the aggregate initial offering
price of such Notes.

 

The relative fault of the Company and the Trust, on one hand, and the
applicable Agents, on the other hand, shall be determined by reference to,
among other things, whether any untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company or the Trust, on one hand, or by the
applicable Agents, on the other hand, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

 

The parties agree that it would not be just and equitable if
contribution pursuant to this Section VIII(e)
were determined by pro rata allocation (even if the Agents were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to above in this Section VIII(e). The aggregate amount
of losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section VIII(e)
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any
applicable untrue or alleged untrue statement or omission or alleged omission.

 

20

 

Notwithstanding the provisions of this Section VIII(e),
(i) no Agent shall be required to contribute any amount in excess of the
amount by which the total price, at which the Notes underwritten by such Agent
and distributed to the public, were offered to the public exceeds the amount of
any damages which such Agent has otherwise been required to pay by reason of
any applicable untrue or alleged untrue statement or omission or alleged
omission and (ii) no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. In addition, in connection with an offering of Notes
purchased from the Trust by two or more Agents as principal, the respective
obligations of such Agents to contribute pursuant to this Section VIII(e) are several, and not
joint, in proportion to the aggregate principal amount of Notes that each such
Agent has agreed to purchase from the Trust.

 

For purposes of this Section VIII(e),
each person, if any, who controls a Agent within the meaning of Section 15
of the 1933 Act shall have the same rights to contribution as such Agent, and
each director, officer and trustee (if applicable) of the Company or Trust, as
applicable, and each person, if any, who controls the Company or Trust within
the meaning of Section 15 of the 1933 Act shall have the same rights to
contribution as the Company or Trust, as applicable.

 

IX.

 

Termination. The
Company and the Trust may elect to suspend or terminate the offering of Notes
under this Agreement at any time; the Company and the Trust also (as to any one
or more of the Agents) or any Agent (as to itself) may terminate the
appointment and arrangements described in this Agreement. Upon receipt of
instructions from the Company and the Trust, the Purchasing Agent shall suspend
or terminate the participation of any Selected Dealer under the Master Selected
Dealer Agreement attached hereto as Exhibit S.
Such actions may be taken, in the case of the Company and the Trust, by giving
prompt written notice of suspension to all of the Agents and by giving not less
than 30 days’ written notice of termination to the affected party and the
other parties to this Agreement, or in the case of an Agent, by giving not less
than 30 days’ written notice of termination to the Company and the Trust
and except that, if at the time of termination an offer for the purchase of
Notes shall have been accepted by the Trust but the time of delivery to the
purchaser or his agent of the Note or Notes relating thereto shall not yet have
occurred, the Company and the Trust shall have the obligations provided herein
with respect to such Note or Notes. The Company and the Trust shall promptly
notify the other parties in writing of any such termination.

 

The Purchasing Agent may, and, upon the request of an Agent with
respect to any Notes being purchased by such Agent shall, terminate this
Selling Agent Agreement by the Purchasing Agent to purchase such Notes,
immediately upon written notice to the Company and the Trust at any time prior
to the Settlement Date relating thereto, (i) if there has been, since the
time of such agreement or since the respective dates as of which information is
given in the Prospectus, any material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise, or
of the Trust, whether or not arising in the ordinary course of business, or
(ii) if there has occurred any material adverse change in the financial
markets in the United States or any outbreak of hostilities or escalation of
existing hostilities or other calamity or crisis or any similar change or
similar development or event (including without limitation, an act of
terrorism) involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which
is such as to make it, in the reasonable judgment of the applicable Agents
after consultation with the Company, impracticable to market such Notes or
enforce contracts for the sale of such Notes, (iii) trading in any
securities of Protective Life Corporation, a publicly owned holding company
incorporated under the laws of the State of Delaware (the “Corporation”), the
Company, or Trust has been suspended or materially limited by the Commission or
the New York Stock Exchange, or if trading generally on the New York Stock

 

21

 

Exchange or the American Stock Exchange or in the Nasdaq National
Market has been suspended or materially limited, or minimum or maximum prices
for trading have been fixed, or maximum ranges for prices for securities have
been required, by either of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc. (the “NASD”) or any other
governmental authority, or a material disruption has occurred in commercial
banking or securities settlement or clearance services in the United States,
(iv) a banking moratorium has been declared by either Federal or New York
authorities or (v) the rating assigned by any Ratings Agency to the
Program, any notes issued pursuant to the Registration Statement, or any debt
securities (including the Notes) of the Trust or any securities or the
financial strength of the Corporation or Company as of the date of such
agreement shall have been lowered or withdrawn since that date or if any Ratings
Agency shall have publicly announced that it has under surveillance or review
its rating of the Program, any notes issued pursuant to the Registration
Statement or any such debt securities (including the Notes) of the Trust or any
securities or the financial strength of the Corporation or Company; provided, however, that such agreement may
not be terminated by an Agent if such Agent knew about any such action or
announcement by any Ratings Agency prior to the date and time of the execution
of this Selling Agent Agreement by such Agent to purchase Notes from the Trust.

 

If this Selling Agent Agreement is terminated, Section VIII and Section XII hereof shall survive and
shall remain in effect; provided
that if at the time of termination of this Agreement an offer to purchase Notes
has been accepted by the Trust but the time of delivery to the Purchasing Agent
of such Notes has not occurred, the provisions of all of Section III, Section IV and Section V shall also survive until
time of delivery.

 

In the event a proposed offering is not completed according to the
terms of this Selling Agent Agreement, an Agent will be reimbursed by the
Company and the Trust only for out-of-pocket accountable expenses actually
incurred.

 

X.

 

Notices. Except as
otherwise specifically provided herein, all statements, requests, notices and
advices hereunder shall be in writing, or by telephone if promptly confirmed in
writing, and if to an Agent shall be sufficient in all respects if delivered in
person or sent by telex, facsimile transmission (confirmed in writing), or
registered mail to such Agent at its address, telex or facsimile number set
forth on Schedule 1 to the Omnibus Instrument and if to the Company or the
Trust shall be sufficient in all respects if delivered or sent by telex,
facsimile transmission (confirmed in writing) or registered mail to the Company
or the Trust at the applicable address specified below. All such notices shall
be effective on receipt.

 

If to the Company:

 

Protective Life Insurance Company

111 North First St. Suite 209

Burbank, CA 91502

Attention: Judy Wilson

Telecopy: (818) 729-1800

 

If to the Trust:

 

Protective Life Secured Trust (followed by the number of the Trust

designated in this Distribution Agreement)

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Administration

Telecopy: (302) 636-4140

 

22

 

or at such other address as such party may designate from time to time
by notice duly given in accordance with the terms of this Section.

 

XI.

 

Parties. This
Selling Agent Agreement shall be binding upon the Agents, the Trust and the
Company, and inure solely to the benefit of the Agents, the Trust and the
Company and any other person expressly entitled to indemnification hereunder
and the respective personal representatives, successors and assigns of each,
and no other person shall acquire or have any rights under or by virtue of this
Selling Agent Agreement.

 

XII.

 

GOVERNING LAW; FORUM.
THIS SELLING AGENT AGREEMENT AND ALL THE RIGHTS AND OBLIGATIONS OF THE PARTIES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

 

XIII.

 

Signatories. If this
Selling Agent Agreement is executed by or on behalf of any party, such person
hereby states that at the time of the execution of this Selling Agent Agreement
he has no notice of revocation of the power of attorney by which he has
executed this Selling Agent Agreement as such attorney.

 

Payment of Expenses. The
Company will pay the following expenses incident to the performance of its
obligations and those of the Trust under this Selling Agent Agreement,
including: (i) the preparation, filing, printing and delivery of the
Registration Statement as originally filed and all amendments thereto and any
preliminary prospectus, the Prospectus and any amendments or supplements
thereto; (ii) the preparation, printing and delivery of the Program
Documents; (iii) the preparation, issuance and delivery of the Notes, including
any fees and expenses relating to the eligibility and issuance of Notes in
book-entry form and the cost of obtaining CUSIP or other identification numbers
for the Notes; (iv) the fees and disbursements of the Company’s and Trust’s
accountants, counsel and other advisors or agents (including any calculation
agent or exchange rate agent) and of the Trustee, Administrator and Indenture
Trustee and their counsel; (v) the reasonable fees and disbursements of
counsel to the Agents incurred in connection with the establishment and
maintenance of the Program and incurred from time to time in connection with
the transactions contemplated hereby; (vi) the fees charged by the
nationally recognized statistical rating organizations for the rating of the
Program and the Notes; (vii) the fees and expenses incurred in connection
with any listing of Notes on a securities exchange; (viii) the filing fees
incident to, and the reasonable fees and disbursements of counsel to the Agents
in connection with, the review, if any, by the NASD; and (ix) any
advertising and other out-of-pocket expenses of the Agents incurred with the
prior written approval of the Company and Trust.

 

Counterparts. This
Selling Agent Agreement may be executed by each of the parties hereto in any
number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument. Facsimile signatures shall be
deemed original signatures.

 

Amendments. This
Selling Agent Agreement may be amended or supplemented if, but only if, such
amendment or supplement is in writing and is signed by the Company, the Trust,
and the Agents.

 

23

 

Index of Exhibits to Standard Selling Agent
Agreement Terms

 

	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Company

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Trust

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Trustee

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Administrator

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Trust Concerning Delaware Security
  Interest Matters

  
	
  Exhibit F

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Debevoise & Plimpton, Counsel for the
  Company, Concerning Certain Tax Matters

  
	
  Exhibit G

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Company, Concerning Certain
  Insurance Insolvency Matters

  
	
  Exhibit H

  	
   

  	
  —

  	
   

  	
  Form of Opinion of White & Case, Counsel for the Company,
  Concerning Certain Insurance Regulatory Matters

  
	
  Exhibit I

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Sidley Austin Brown & Wood LLP, Counsel
  for the Agents Concerning Certain Federal Securities Law Matters

  
	
  Exhibit J

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Sidley Austin Brown & Wood LLP, Counsel
  for the Agents Concerning Certain New York Security Interest Matters

  
	
  Exhibit K

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Counsel for the Company Concerning Certain New
  York Law Matters

  
	
  Exhibit L

  	
   

  	
  —

  	
   

  	
  Form of Opinion of Delaware Counsel for the Trust Concerning Certain
  Delaware Law Matters

  
	
  Exhibit M

  	
   

  	
  —

  	
   

  	
  Form of Negative Assurance of Sidley Austin Brown & Wood
  LLP, Counsel to the Agents

  
	
  Exhibit N

  	
   

  	
  —

  	
   

  	
  Form of Negative Assurance of Counsel for the Company

  
	
  Exhibit O

  	
   

  	
  —

  	
   

  	
  Form of Comfort Letter of PricewaterhouseCoopers LLP, Accountants to
  the Company

  
	
  Exhibit P

  	
   

  	
  —

  	
   

  	
  Form of Pricing Supplement

  
	
  Exhibit Q

  	
   

  	
  —

  	
   

  	
  Schedule of Agent Concessions

  
	
  Exhibit R

  	
   

  	
  —

  	
   

  	
  Administrative Procedures

  
	
  Exhibit S

  	
   

  	
  —

  	
   

  	
  Form of Master Selected Dealer Agreement

  

 

24

EXHIBIT G

 

STANDARD DISTRIBUTION AGREEMENT TERMS

 

PROTECTIVE LIFE INSURANCE COMPANY

 

$3,000,000,000

 

SECURED MEDIUM-TERM NOTES PROGRAM

 

Dated as of November 7, 2003

 

This document
constitutes Standard Distribution Agreement Terms which are incorporated by reference
in the Distribution Agreement, dated as of the date set forth therein (the “Distribution Agreement”), by and
among the Trust, the Company, and each Dealer specified in the Distribution
Agreement. The Distribution Agreement is set forth in Section G of the Omnibus Instrument and
these Standard Distribution Agreement Terms are attached as Exhibit G to the Omnibus Instrument.

 

These Standard
Distribution Agreement Terms shall be of no force and effect unless and until
incorporated by reference into, and then only to the extent not modified by,
the Distribution Agreement.

 

The following
terms and provisions shall govern the terms of the distribution of the Notes
issued by the Trust, subject to such other terms and provisions expressly
adopted in the Distribution Agreement.

 

Capitalized
terms not otherwise defined in these Standard Distribution Agreement Terms
shall have their respective meanings ascribed to them in the Distribution
Agreement.

 

In connection
with the Protective Life Secured Medium-Term Notes Program (the “Institutional Program”),
the Company has authorized the issuance and sale from time to time of funding
agreements to Protective Life Secured Trusts in order to secure the issuance of
medium-term notes due nine months or more from the date of issuance by the
Trust and any other trust organized in connection with the Registration
Statement (defined below), of up to U.S. $3,000,000,000 aggregate initial
offering price of such notes (or its equivalent as determined pursuant to
Section 3(b)(vii) herein) to or through the Dealer(s) pursuant to the
terms of this Distribution Agreement, any other distribution agreement entered
into by and among the Company, the dealer(s) named therein and any trust (other
than the Trust) organized in connection with the Registration Statement and any
selling agent agreement (each, a “Selling Agreement”) entered into by and among
the Company, the agents named therein and any trust (other than the Trust)
organized in connection with the Protective Life InterNotes® Program (the “Retail Program,”
together with the Institutional Program, the “Program”).

 

The Notes are
to be issued pursuant to the Indenture. The Trust shall issue only one series
of Notes. The Trust will use the proceeds from the sale of the Series of Notes
to purchase one or more funding agreements (each a “Funding Agreement”)
from the Company. The Series of Notes will be secured by one or more Funding
Agreement(s) which will be assigned by the Trust to the Indenture Trustee on
behalf of the holders of the Series of Notes pursuant to the Indenture. In
connection with the sale of the Series of Notes, the Trust will prepare a
Pricing Supplement (the “Pricing
Supplement”) including or incorporating by reference a
description of the terms of the Series of Notes, the terms of the offering and
a description of the Trust.

 

References to
“Dealer” shall include any institution appointed as a Dealer, when acting as an
agent, pursuant to Section 10(f)
below.

 

This
Distribution Agreement specifies terms and conditions on which the Notes may be
sold by the Trust (i) to the Dealer(s) as principal for resale to
investors and (ii) directly to investors through the Dealer(s) as an agent
of the Trust in soliciting offers for the purchase of the Notes.

 

The Company
has made the requisite filings with the Securities and Exchange Commission (the
“Commission”)
pursuant to the Securities Exchange Act of 1934, as amended (the “1934 Act”). The

 

 

Company has
filed with the Commission a registration statement on Form S-3
(No. 333-100944) and pre-effective amendment no. 1 thereto for the
registration of funding agreements and notes under the Securities Act of 1933,
as amended (the “1933
Act”), and the offering thereof from time to time in accordance
with Rule 415 of the rules and regulations of the Commission under the
1933 Act (the “1933 Act
Regulations”). Such registration statement has been declared
effective by the Commission and the Indenture has been duly qualified under the
Trust Indenture Act of 1939, as amended (the “1939 Act”), and the Company has filed
such post-effective amendments thereto as may be required prior to the Trust’s
acceptance of any offer for the purchase of Notes and each such post-effective
amendment has been declared effective by the Commission. Such registration
statement (as so amended, if applicable) is referred to herein as the “Registration Statement”;
and the final prospectus and all applicable amendments or supplements thereto
(including the final prospectus supplements and Pricing Supplement(s) relating
to the offering of the Notes), in the form first furnished to the Dealer(s) for
use in confirming sales of the Notes, are collectively referred to herein as
the “Prospectus”;
provided, however, that all references to the “Registration Statement”, and the
“Prospectus” shall also be deemed to include all documents incorporated therein
by reference pursuant to the 1934 Act, prior to any acceptance by the Trust of
an offer for the purchase of Notes; provided, further, that if the Company
files a registration statement with the Commission pursuant to Rule 462(b)
of the 1933 Act Regulations (the “Rule 462(b) Registration Statement”),
then, after such filing, all references to the “Registration Statement” shall
also be deemed to include the Rule 462(b) Registration Statement. A “preliminary prospectus”
shall be deemed to refer to any prospectus and any prospectus supplement used
before the Registration Statement became effective and any prospectus and any
prospectus supplement furnished by the Company after the Registration Statement
became effective and before any acceptance by the Trust of an offer for the
purchase of Notes which omitted information to be included upon pricing in a
form of prospectus and prospectus supplement filed with the Commission pursuant
to Rule 424(b) of the 1933 Act Regulations. For purposes of this
Distribution Agreement, all references to the Registration Statement,
Prospectus or preliminary prospectus or to any amendment or supplement thereto
shall be deemed to include any copy filed with the Commission pursuant to its
Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”).

 

All references
in this Distribution Agreement to financial statements and schedules and other
information which is “disclosed”, “contained”, “included” or “stated” (or other
references of like import) in the Registration Statement, Prospectus or
preliminary prospectus shall be deemed to include all such financial statements
and schedules and other information which is incorporated by reference in the
Registration Statement, Prospectus or preliminary prospectus, as the case may
be; and all references in this Distribution Agreement to amendments or
supplements to the Registration Statement, Prospectus or preliminary prospectus
shall be deemed to include the filing of any document under the 1934 Act which
is incorporated by reference in the Registration Statement, Prospectus or
preliminary prospectus, as the case may be.

SECTION 1. Appointment as Dealer.

 

(a)           Appointment.
Subject to the terms and conditions stated herein, the Trust and
Company hereby agree that the Notes will be sold exclusively to or through the
Dealer(s) pursuant to the terms of this Distribution Agreement. Each Dealer
shall be a United States person within the meaning of Section 7701(a)(30)
of the Internal Revenue Code of 1986, as amended.

 

(b)           Sale
of Notes. The Company and the Trust shall not sell or approve the
solicitation of offers for the purchase of Notes in excess of the aggregate
initial offering price of notes registered pursuant to the Registration
Statement and any additional aggregate offering price of notes registered
pursuant to a Rule 462(b) Registration Statement. The Dealer(s) shall have
no responsibility for maintaining records with respect to the aggregate initial
offering price of notes sold (including the Notes), or of otherwise monitoring
the availability of notes for sale, under the Registration Statement.

 

2

 

(c)           Purchases
as Principal. If agreed upon among a Dealer or Dealers, the Trust
and the Company in this Distribution Agreement, then such Dealer(s) will act as
principal in connection with any offering of the Notes by the Trust. Any
purchase of Notes from the Trust by a Dealer as principal shall be made in
accordance with Section 5(a) hereof.

 

(d)           Solicitations
as Agent. If agreed upon among a Dealer or Dealers, the Trust and
the Company in this Distribution Agreement, then such Dealer(s), acting solely
as an agent or agents for the Trust and not as principal, will solicit offers
for the purchase of the Notes. Such Dealer(s) will communicate to the Company
and Trust, orally or in writing, each offer for the purchase of Notes solicited
by it on an agency basis other than those offers rejected by such Dealer(s).
Each such Dealer shall have the right, in its discretion reasonably exercised,
to reject any offer for the purchase of the Notes, in whole or in part, and any
such rejection shall not be deemed a breach of its agreement contained herein.
The Trust may accept or reject any offer for the purchase of the Notes, in
whole or in part. Each such Dealer shall make reasonable efforts to assist the
Trust in obtaining performance by each purchaser whose offer for the purchase
of the Notes has been solicited by it on an agency basis and accepted by the
Trust. Each such Dealer shall not have any liability to the Trust or Company in
the event that any such purchase is not consummated for any reason. If the
Trust shall default on its obligation to deliver Notes to a purchaser whose
offer has been solicited by a Dealer on an agency basis and accepted by the
Trust, then the Trust and Company shall hold such Dealer harmless against any
loss, claim or damage arising from or as a result of such default by the Trust.
Any purchase of Notes from the Trust by a Dealer as an agent shall be made in
accordance with Section 5(b) hereof.

 

(e)           Reliance.
The Trust, Company and the Dealer(s) agree that any Notes purchased
from the Trust by the Dealer(s) as principal shall be purchased, and any Notes
the placement of which a Dealer arranges as an agent of the Trust shall be
placed by such Dealer, in reliance on the representations, warranties,
covenants and agreements of the Trust and Company contained herein and on the
terms and conditions and in the manner provided herein.

 

SECTION 2. Representations and Warranties.

 

(a)           Each of the Trust and the Company
jointly and severally represent and warrant to each Dealer as of the date
hereof, as of the date of the acceptance by the Trust of an offer for the purchase
of Notes (when such Dealer is acting as agent), as of the date of each delivery
of Notes to the Dealer, if applicable, (whether to such Dealer as principal or
through such Dealer as an agent) (the date of each such delivery to such Dealer
as principal or through such Dealer as agent is referred to herein as a “Settlement Date”),
and as of any time prior to the Settlement Date that the Registration Statement
or the Prospectus shall be amended or supplemented (other than by an amendment
or supplement providing solely for the determination of the variable terms of
the notes offered pursuant to the Registration Statement, including the
establishment of or a change in the interest rates, maturity or price of notes
offered pursuant to the Registration Statement or similar changes) (each of the
times referenced above is referred to herein as a “Representation Date”),
as follows:

 

(i)            Due
Formation and Good Standing of the Trust. The Trust is either a
statutory trust or common law trust, as specified in this Distribution
Agreement, duly formed under Delaware law pursuant to the Trust Agreement and,
if the Trust is a statutory trust, the filing of a certificate of trust with
the Delaware Secretary of State, which is validly existing and in good standing
as a statutory trust or common law trust, as applicable, under the laws of the
State of Delaware.

 

(ii)           No
Material Changes. Since the respective dates as of which information
is given in the Registration Statement and the Prospectus, except as otherwise
stated therein, (1) there has been no event or occurrence that would
reasonably be expected to have a material adverse effect on the condition
(financial or otherwise) of the Trust or on the power or ability of the Trust
to perform its obligations under this Distribution Agreement, the Indenture,
the Trust Agreement, the Funding Agreement(s), the Administrative Services
Agreement (the “Administration
Agreement”) between

 

3

 

the trustee of
the Trust (the “Trustee”),
on behalf of the Trust, and AMACAR Pacific Corp., as administrator (the “Administrator”), the
License Agreement (the “License
Agreement”), between the Trust and Protective Life Corporation
or the Notes or to consummate the transactions to be performed by it as
contemplated in the Prospectus (a “Trust Material Adverse Effect”) and
(2) there have been no transactions entered into by the Trust, other than
those related to the Institutional Program or in the ordinary course of
business, which are material with respect to the Trust.

 

(iii)          Authorization
of this Distribution Agreement, each Funding Agreement, the Trust Agreement,
the Indenture, Administration Agreement, the License Agreement and Notes. This
Distribution Agreement, each relevant Funding Agreement, the Indenture, the
Administration Agreement and the License Agreement have been or will be duly
authorized, executed and delivered by the Trust. Assuming that each party to
this Distribution Agreement, each relevant Funding Agreement, the Indenture,
the Trust Agreement, the Administration Agreement and the License Agreement
other than the Trust, as applicable, has duly authorized, executed and
delivered each such agreement, then this Distribution Agreement, each relevant
Funding Agreement, the Trust Agreement, the Administration Agreement, the
Indenture and the License Agreement will each be a valid and legally binding
agreement of the Trust enforceable against the Trust in accordance with its
terms, as applicable, except (1) as enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or by general
equitable principles (regardless of whether enforcement is considered in a
proceeding in equity or at law), (2) except as enforcement thereof may be
limited by requirements that a claim with respect to the Notes issued under the
Indenture that are payable in a foreign or composite currency (or a foreign or
composite currency judgment in respect of such claim) be converted into U.S.
dollars at a rate of exchange prevailing on a date determined pursuant to
applicable law or by governmental authority to limit, delay or prohibit the
making of payments outside the United States, (3) that no representation or
warranty is made with respect to the enforceability of Section 6 hereof,
and (4) that no representation or warranty is made with respect to the
enforceability of the Funding Agreement(s) to the extent that the source of the
funds used by the Trust to purchase such Funding Agreement renders such funds,
or any property or investment acquired with such funds, subject to governmental
seizure or other penalty under the USA Patriot Act of 2001, as amended, or any
other law, rule or regulation, relating to money laundering, terrorist
financing or other illegal activities; the Notes have been duly authorized by
the Trust for offer, sale, issuance and delivery pursuant to this Distribution
Agreement and, when issued, authenticated and delivered in the manner provided
for in the Indenture and delivered against payment of the consideration
therefor, will constitute valid and legally binding obligations of the Trust,
enforceable against the Trust in accordance with their terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally or by general equitable principles (regardless of whether enforcement
is considered in a proceeding in equity or at law). Subject to the exceptions
set forth in the preceding sentence, the Notes, when executed by the Trust and
issued, authenticated and delivered in the manner provided for in the Indenture
and delivered against payment of the consideration therefor, will be entitled
to the benefits of the Indenture.

 

(iv)          Absence
of Defaults and Conflicts. The Trust is not in violation of its
certificate of trust, if applicable, or in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan or credit agreement, note, lease or other
agreement or instrument to which the Trust is a party or by which it may be
bound or to which any of the property or assets of the Trust is subject (the “Trust Agreements and Instruments”),
except for such violations or defaults that would not reasonably be expected to
result in a Trust Material Adverse Effect; and (1) the execution, delivery
and performance of this Distribution Agreement, the Indenture, the Notes, each
Funding Agreement, the Administration

 

4

 

Agreement, the
License Agreement and any other agreement or instrument entered into or issued
or to be entered into or issued by the Trust in connection with the transactions
contemplated by the Prospectus, (2) the performance of the Trust Agreement
(all agreements and instruments referenced in clauses (1) and
(2) above are referred to herein as the “Program Documents”), (3) the
consummation of the transactions contemplated in the Prospectus (including the
issuance and sale of the Notes and the use of proceeds therefrom as described
in the Prospectus) and (4) the compliance by the Trust with its
obligations under the Program Documents do not and will not, constitute a
breach, violation or default which (A) gives the holder of any note,
debenture or other evidence of indebtedness (or any person acting on such
holder’s behalf) the right to require the repurchase, redemption or repayment
of all or a portion of such indebtedness by the Trust under, or (B) result
in the creation or imposition of any lien, charge or encumbrance upon any
assets, properties or operations of the Trust pursuant to, any Trust Agreements
and Instruments, nor will such action result in any violation of the Trust’s
certificate of trust, if applicable, the Trust Agreement and the Trust is not
in default in the performance or observance of any applicable law, statute,
rule, regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the
Trust or any of its assets, properties or operations; provided that no
representation or warranty is made with respect to the Funding Agreement(s) to
the extent that the source of the funds used by the Trust to purchase such
Funding Agreement renders such funds, or any property or investment acquired
with such funds, subject to governmental seizure or other penalty under the USA
Patriot Act of 2001, as amended, or any other law, rule or regulation, relating
to money laundering, terrorist financing or other illegal activities; provided
further, that in the case of clause (A) of this paragraph (viii),
this representation and warranty shall not extend to such repurchase, redemption
or repayment that would not result in a Trust Material Adverse Effect and in
the case of clause (B) of this paragraph (viii), this representation
and warranty shall not extend to such lien, charges or encumbrances or any
violations or defaults that would not result in a Trust Material Adverse
Effect.

 

(v)           Absence
of Proceedings. There is no action, suit, proceeding or
investigation pending of which the Company or the Trust has received notice or
service of process, or before or brought by any court or governmental agency or
body, domestic or foreign, or to the knowledge of the Company or Trust
threatened, against or affecting the Trust which is required to be disclosed in
the Registration Statement and the Prospectus (other than as stated therein),
or which may reasonably be expected to individually or in the aggregate result
in a Trust Material Adverse Effect.

 

(vi)          No
Filings, Regulatory Approvals etc. Other than as set forth or
contemplated in the Prospectus, no filing with, or approval, authorization,
consent, license, registration, qualification, order or decree of, any court or
governmental authority or agency, domestic or foreign, is necessary or required
for the issuance and sale of the Notes, by the Trust, except such as have been
previously made, obtained or rendered, as applicable and except such consents,
approvals, authorizations, registrations or qualifications as may be required
under the 1933 Act and the 1939 Act or under state or foreign securities or
Blue Sky laws or any rules or regulations of any securities exchange.

 

(vii)         Investment
Company Act. The Trust is not, and upon the sale of the Notes as
herein contemplated and the application of the net proceeds therefrom as
described in the Prospectus will not be, required to register as an “investment
company” within the meaning of the Investment Company Act of 1940, as amended
(the “1940 Act”).

 

(viii)        Ratings.
The Program under which the Notes are issued, as well as the Notes,
as applicable, are rated by Moody’s Investors Service, Inc. or its
successor (“Moody’s”)
and by Standard & Poor’s Ratings Services, a Division of The
McGraw-Hill Companies, Inc. or its successor (“S&P”, and
together with Moody’s the “Ratings
Agencies”) as set forth in Schedule 1
to

 

5

 

the Omnibus
Instrument, or such other rating as to which the Company shall have most
recently notified the Dealer(s) pursuant to
Section 3(b)(viii) hereof. Except as otherwise disclosed to the
Dealer(s) in writing, to the knowledge of the Company and the Trust, no Ratings
Agency has issued any public announcement or informed the Trust or the Company
that such Ratings Agency has under surveillance or review, with possible
negative implications, its rating of the Program or the Notes or any notes
issued pursuant to the Registration Statement, as applicable, or the withdrawal
of the rating of the Program, the Notes or any notes issued pursuant to the
Registration Statement, as applicable, by such Ratings Agency.

 

(ix)           Notes
Listed on Any Stock Exchange. If specified in the applicable Pricing
Supplement, the Notes described in such Pricing Supplement shall be listed on
the securities exchange designated in the Pricing Supplement.

 

(x)            Beneficial
Interest. The beneficial interest of the Trust when issued will be duly
authorized and, when registered in the Securities Register (as defined in the
Trust Agreement) in accordance with the provisions of the Trust Agreement, will
be a valid and binding obligation of the Trust, enforceable in accordance with
its terms, except as enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, conservatorship, receivership or similar laws
affecting creditors’ rights generally or by general principles of equity.

 

(xi)           Security
Interest. As required by the Indenture, the Trust pursuant to the
Indenture, will create, in favor of the Indenture Trustee, for the benefit of
the holders of Notes a first priority perfected security interest in the
Collateral (as defined in the Indenture) under New York law or the law of such
other applicable jurisdiction whose law governs such perfection, non-perfection
or priority.

 

(b)           The Company represents and warrants
to each Dealer as of each Representation Date, as follows:

 

(i)            Due
Incorporation, Good Standing and Due Qualification of the Company. The
Company is a corporation duly incorporated and validly existing under the laws
of the State of Tennessee with corporate power and authority to own, its
properties and to conduct its business as described in the Prospectus; the
Company is duly qualified as a foreign corporation to transact business and is
in good standing in each jurisdiction in which such qualification is required,
except where the failure to so qualify or be in good standing would not
reasonably be expected to result in a material adverse change in the condition
(financial or otherwise) or in the earnings, results of operations or business
prospects of the Company and its subsidiaries considered as one enterprise or
on the power or ability of the Company to perform its obligations under the
Program Documents to which the Company is a party or to consummate the
transactions to be performed by the Company as contemplated in the Prospectus
(a “Company Material
Adverse Effect”); all of the issued and outstanding shares of capital
stock of the Company have been duly authorized and are validly issued, fully
paid and non-assessable; and none of the outstanding shares of capital stock of
the Company were issued in violation of preemptive or other similar rights of
any securityholder of the Company.

 

(ii)           Due
Incorporation, Good Standing and Due Qualification of Significant Subsidiaries.
West Coast Life Insurance Company (“West Coast Life”) has been duly
organized and is validly existing as a corporation in good standing under the laws
of the jurisdiction of its incorporation, has corporate power and authority to
own its properties and conduct its business as described in the Prospectus and
is duly qualified as a foreign corporation to transact business and is in good
standing in each jurisdiction in which such qualification is required, except
where the failure to so qualify or be in good standing would not reasonably be
expected to result in a Company Material Adverse Effect; all of the issued and
outstanding shares of capital stock of West Coast Life has been duly authorized
and is validly issued, fully paid and non-assessable and is owned by the
Company, directly or through subsidiaries, free and clear of any perfected
security interest and, to

 

6

 

the Company’s
best knowledge, any other security interest, mortgages, pledges, claims, liens,
or encumbrances.

 

(iii)          Registration
Statement and Prospectus; Filing Status. The Company meets the
requirements for use of Form S-3 under the 1933 Act; the Registration
Statement (or any Rule 462(b) Registration Statement) has become effective
under the 1933 Act and no stop order suspending the effectiveness of the
Registration Statement (or any Rule 462(b) Registration Statement) has been
issued under the 1933 Act and no proceedings for that purpose have been
instituted or are pending or, to the knowledge of the Company, are threatened
by the Commission, and any request on the part of the Commission for additional
information has been complied with; the Indenture has been duly qualified under
the 1939 Act; at the respective times that the Registration Statement
(including any Rule 462(b) Registration Statement) and any post-effective
amendment thereto (including the filing of the Company’s most recent Annual
Report on Form 10-K with the Commission) became effective and at each
Representation Date the Registration Statement (including any Rule 462(b)
Registration Statement) and any amendments thereto complied and will comply in
all material respects with the requirements of the 1933 Act and the 1933 Act
Regulations, the 1934 Act and the rules and regulations of the Commission under
the 1934 Act (the “1934
Act Regulations”) and the 1939 Act and the rules and regulations
of the Commission under the 1939 Act (the “1939 Act Regulations”) and did not and will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; each preliminary prospectus and Prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment thereto,
or filed pursuant to Rule 424 under the 1933 Act, complied when so filed
in all material respects with the 1933 Act and the 1933 Act Regulations; each
preliminary prospectus and the Prospectus delivered to a Dealer for use in
connection with an offering of Notes will, at the time of such delivery, be
identical in all material respects to any electronically transmitted copies
thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation S-T of the 1933 Act Regulations; and at the date
hereof, at the date of the Prospectus and each amendment or supplement thereto
and at each Representation Date, neither the Prospectus nor any amendment or
supplement thereto included or will include an untrue statement of a material
fact or omitted or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that the representations and
warranties in this subsection shall not apply to (A) statements in or
omissions from the Registration Statement or the Prospectus made in reliance
upon and in conformity with information furnished to the Company in writing by
the Dealer(s) expressly for use in the Registration Statement or the Prospectus
or (B) that part of the Registration Statement which constitutes the
Statements of Eligibility and Qualification (Form T-1) under the 1939 Act
of the Trustee and the Indenture Trustee.

 

(iv)          Incorporated
Documents. The documents incorporated or deemed to be incorporated
by reference in the Prospectus, at the time they were or hereafter are filed
with the Commission, complied and will comply in all material respects with the
requirements of the 1934 Act and the 1934 Act Regulations.

 

(v)           Independent
Accountants. The accountants who certified the financial statements
and any supporting schedules thereto included in the Registration Statement and
the Prospectus are independent public accountants as required by the 1933 Act
and the 1933 Act Regulations.

 

(vi)          Company
Financial Statements. The consolidated financial statements of the
Company included in the Registration Statement and the Prospectus, together
with the related schedules and notes, present fairly the consolidated financial
position of the Company and its subsidiaries at the dates indicated and the
consolidated statement of income, stockholders’ equity and cash flows of the
Company and its subsidiaries, for the periods specified; such financial
statements have been prepared in conformity with United States generally
accepted accounting principles (“GAAP”)

 

7

 

applied on a
consistent basis throughout the periods involved; the supporting schedules of
the Company, if any, included in the Registration Statement and the Prospectus
present fairly in accordance with GAAP the information required to be stated
therein; the selected financial data and the summary financial information of
the Company included in the Registration Statement and the Prospectus present
fairly the information shown therein and have been compiled on a basis
consistent with that of the audited financial statements of the Company
included in the Registration Statement and the Prospectus.

 

(vii)         Descriptions
of the Program Documents. The statements relating to the Program
Documents (defined below) contained in the Prospectus conform and will conform
in all material respects to the Program Documents and the Program Documents are
substantially in the form filed or incorporated by reference, as the case may
be, as exhibits to the Registration Statement.

 

(viii)        Authorization
of this Distribution Agreement and each Funding Agreement. This
Distribution Agreement has been and each Funding Agreement when issued will be
duly authorized, executed and delivered by the Company and, assuming that each
party to this Distribution Agreement and each Funding Agreement, other than the
Company, has duly authorized executed and delivered such agreement, then this
Distribution Agreement and each Funding Agreement will be a valid and legally
binding agreement of the Company, enforceable against the Company in accordance
with its terms, except (1) as enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or by general
equitable principles (regardless of whether enforcement is considered in a
proceeding in equity or at law), (2) that no representation or warranty is
made with respect to the enforceability of Section 6 hereof and
(3) that no representation or warranty is made with respect to the
enforceability of the Funding Agreement(s) to the extent that the source of the
funds used by the Trust to purchase such Funding Agreement(s) renders such
funds, or any property or investment acquired with such funds, subject to
governmental seizure or other penalty under the USA Patriot Act of 2001, as
amended, or any other law, rule or regulation, relating to money laundering,
terrorist financing or other illegal activities.

 

(ix)           Absence
of Defaults and Conflicts. Neither the Company nor West Coast Life
is in violation of the provisions of its charter or by-laws or in default in
the performance or observance of any obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, deed of trust, loan
or credit agreement, note, lease or other agreement or instrument to which the
Company or West Coast Life is a party or by which they may be bound or to which
any of the property or assets of the Company or West Coast Life is subject
(collectively, “Company
Agreements and Instruments”), except for such defaults that
would not result in a Company Material Adverse Effect; the execution, delivery
and performance of this Distribution Agreement, each Funding Agreement and any
other agreement or instrument entered into or issued or to be entered into or
issued by the Company in connection with the transactions contemplated in the
Prospectus, the consummation of the transactions contemplated in the Prospectus
(including the issuance and sale of the Notes and the use of the proceeds
therefrom as described in the Prospectus) and the compliance by the Company
with its obligations thereunder do not and will not constitute a breach,
violation or default which (A) gives the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all or a
portion of such indebtedness by the Company or West Coast Life under, or
(B) result in the creation or imposition of any lien, charge or
encumbrance upon any assets, properties or operations of the Company or West
Coast Life pursuant to, any Company Agreements and Instruments, nor will such
action result in any violation of the provisions of the charter, articles or
by-laws of the Company or West Coast Life or any applicable law, statute, rule,
regulation, judgment, order, writ or decree of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over the
Company or

 

8

 

West Coast
Life or any of their assets, properties or operations; provided that no
representation or warranty is made with respect to the Funding Agreement(s) to
the extent that the source of the funds used by the Trust to purchase such
Funding Agreement(s) renders such funds, or any property or investment acquired
with such funds, subject to governmental seizure or other penalty under the USA
Patriot Act of 2001, as amended, or any other law, rule or regulation, relating
to money laundering, terrorist financing or other illegal activities; provided
that in the case of clause (A) of this paragraph (ix), this
representation and warranty shall not extend to such repurchase, redemption or
repayment that would not result in a Company Material Adverse Effect and in the
case of clause (B) of this paragraph (ix), this representation and
warranty shall not extend to such lien, charges or encumbrances or any
violations or defaults that would not result in a Company Material Adverse
Effect.

 

(x)            Absence
of Proceedings. There is no action, suit, proceeding or
investigation pending of which the Company has received notice or service of
process, or before or brought by any court or governmental agency or body,
domestic or foreign, or to the knowledge of the Company threatened, against the
Company which is required to be disclosed in the Registration Statement and the
Prospectus (other than as stated therein), or which would individually or in
the aggregate result in a Company Material Adverse Effect.

 

(xi)           Possession
of Licenses and Permits. Each of the Company and West Coast Life is
duly organized and licensed as an insurance company in its state of
incorporation and is duly licensed or authorized as an insurer in each other
jurisdiction where it is required to be so licensed or authorized, with
corporate power to conduct its business as described in the Prospectus (except
for any such jurisdiction in which the failure to be so licensed or authorized
would not reasonably be expected to have a Company Material Adverse Effect);
and except as otherwise specifically described in the Prospectus, neither the
Company nor West Coast Life has received any notification from any federal,
state, local or foreign regulatory authority to the effect that any additional
authorization, approval, order, consent, license, certificate, permit,
registration or qualification from such federal, state, local or foreign
regulatory authority is needed to be obtained by either the Company or West
Coast Life in any case where it would be reasonably expected that the failure
to obtain any such additional authorization, approval, order, consent, license,
certificate, permit, registration or qualification would have a Company
Material Adverse Effect.

 

(xii)          No
Filings, Regulatory Approvals etc. Other than as set forth or
contemplated in the Prospectus, no filing with, or approval, authorization,
consent, license, registration, qualification, order or decree of, any court or
governmental authority or agency, domestic or foreign, is necessary or required
for the issuance and sale of the Funding Agreements by the Company, except such
as have been previously made, obtained or rendered, as applicable and except
such consents, approvals, authorizations, registrations or qualifications as
may be required under the 1933 Act and the 1939 Act or under state or foreign
securities or Blue Sky laws or any rules or regulations of any securities
exchange.

 

(xiii)         Investment
Company Act. The Company is not, and upon the issuance and sale of
the Notes as herein contemplated and the application of the net proceeds therefrom
as described in the Prospectus will not be required to register as an
“investment company” within the meaning of the 1940 Act.

 

(xiv)        Ratings.
The Company’s financial strength is rated by Moody’s and S&P as
set forth in Schedule 1 to
the Omnibus Instrument, or such other rating as to which the Company shall have
most recently notified the Dealer(s) pursuant to
Section 3(b)(viii) hereof. Except as otherwise disclosed to the
Dealer(s) in writing, to the Company’s knowledge, no Ratings Agency has issued
any public announcement or informed the Company that such Ratings Agency has
under surveillance or review, with possible negative implications, its rating
of the financial strength of the Company, or the withdrawal of the financial
strength rating of the Company.

 

9

 

(xv)         Absence
of Default Under Each Funding Agreement. To the Company’s knowledge,
there exists no event or circumstance which does or may (with the passing of
time, the giving of notice, the making of any determination, or any combination
thereof) be reasonably expected to constitute an event of default under any
outstanding funding agreement issued in connection with the Registration
Statement.

 

(c)           Additional
Certifications. Any certificate signed by the Administrator or any
officer of the Trustee or the Company and delivered to one or more Dealers or
to counsel for the Dealer(s) in connection with an offering of Notes to one or
more Dealers as principal or through a Dealer as an agent shall be deemed a
representation and warranty by the Trust and the Company to such Dealer(s) as
to the matters covered thereby on the date of such certificate.

SECTION 3. Covenants of the Company and
Trust.

 

(a)           The Company and the Trust jointly and
severally covenant and agree with each Dealer as follows:

 

(i)            Preparation
of Pricing Supplements. The Company and the Trust will prepare, with
respect to any Notes to be sold to or through one or more Dealers pursuant to
this Distribution Agreement, a Pricing Supplement with respect to such Notes in
a form approved by the Dealer(s). The Company and Trust will deliver such
Pricing Supplement no later than 1:00 p.m., New York City time, on the
business day following the date of the Company’s and Trust’s acceptance of the
offer for the purchase of such Notes and will file such Pricing Supplement
pursuant to Rule 424(b)(3) under the 1933 Act.

 

(ii)           Use
of Proceeds. The Trust will use the net proceeds received by it from
the issuance and sale of the Notes in the manner specified in the Prospectus.

 

(iii)          Suspension
of Certain Obligations. After the Settlement Date or, in the event
of the purchase of Notes by the Dealer(s) as principal, after the completion of
the distribution of the Notes, the Company and the Trust, as applicable, shall
not be required to comply with the provisions of Sections 3(a)(i), (ii), (vi),
(vii), (viii) and (x) and Sections 3(b)(i), (ii), (vii), (viii), (x),
(xi) and (xii).

 

(iv)          Listing.
If listing of the Notes is specified in the Pricing Supplement, the
Company and the Trust shall use reasonable efforts to obtain and maintain
approval for the listing of the Series of Notes on the securities exchange
designated in the Pricing Supplement until such time as none of the Notes of
the Series are outstanding.

 

(v)           Blue
Sky Qualifications. The Company and the Trust shall endeavor to
qualify the Notes for offer and sale under the securities or Blue Sky laws of
such jurisdictions as the Dealer(s) shall reasonably request and to maintain
such qualifications for as long as such Dealer(s) shall reasonably request;
provided however that the Company and the Trust shall not be obligated to file
any general consent to service of process or to qualify as a foreign
corporation or a dealer in securities in any jurisdiction in which it is not so
qualified or to subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.

 

(vi)          The
Depository Trust Company. The Company and Trust shall assist the
Dealer(s) in arranging to cause the Notes to be eligible for settlement through
the facilities of The Depository Trust Company.

 

(vii)         Notice
of Amendment to Indenture or Trust Agreement. The Trust will give
the Dealer(s) at least seven (7) days’ prior notice in writing of any proposed
amendment to the Indenture or Trust Agreement and, except in accordance with
the applicable provisions of the Indenture or Trust Agreement, not make or
permit to become effective any amendment to the Indenture or Trust Agreement
which may adversely affect the interests of the Dealer(s) or any holder of any
outstanding Notes without the consent of the affected party.

 

10

 

(viii)        Authorization
to Act on Behalf of the Trust. The Trust will, from time to time,
after receiving a written request from a Dealer, deliver to the Dealer(s) a
certificate as to the names and signatures of those persons authorized to act
on behalf of the Trust in relation to the Program if such information has
changed.

 

(ix)           Notice
of Meeting. The Trust will furnish to the Dealer(s), at the same
time as it is dispatched, a copy of notice of any meeting of the holders of
Notes which is called to consider any matter which is material in the context
of the Trust.

 

(x)            Reaffirmation
of Representations and Warranties. The execution of this
Distribution Agreement (whether by one or more Dealers acting as principal or
by one or more Dealers acting as agent), and the delivery of the Notes (whether
to one or more Dealers as principal or through one or more Dealers as agent)
shall be deemed to be an affirmation that the representations and warranties of
the Company and Trust herein contained and contained in any certificate
theretofore delivered to such Dealer pursuant hereto are true and correct in
all material respects as of the date hereof (when each Dealer is acting as
principal) or as of the date of acceptance by the Trust of an offer for the
purchase of Notes (when each Dealer is acting as agent), and an undertaking
that such representations and warranties will be true and correct in all
material respects at the time of delivery to such Dealer(s) or to the purchaser
or its agent, as the case may be, of the Notes, as though made at and as of
each such time (it being understood that such representations and warranties
shall relate to the Registration Statement and Prospectus as amended and
supplemented to each such time).

 

(b)           The Company further covenants and
agrees with the Dealer(s) as follows:

 

(i)            Notice
of Certain Events Regarding Registration Statement, Prospectus and Ratings. Prior
to the Settlement Date the Company with respect to the Registration Statement
and Prospectus will notify the Dealer(s) immediately, and confirm such notice
in writing of (i) the effectiveness of any post-effective amendment to the
Registration Statement or the filing of any amendment or supplement to the
Prospectus (other than any amendment or supplement thereto providing solely for
the determination of the variable terms of the notes issued pursuant to the Registration
Statement), (ii) the receipt of any comments from the Commission with
respect to the Registration Statement and the Prospectus and a Rule 462(b)
Registration Statement, (iii) any request by the Commission for any
amendment to the Registration Statement or any amendment or supplement to the
Prospectus or for additional information, (iv) the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement, or of any order preventing or suspending the use of any preliminary
prospectus or Prospectus, or of the initiation of any proceedings for that
purpose or (v) any change in the rating assigned by any Ratings Agency to
the Program, the Notes or the notes issued pursuant to the Registration
Statement, as applicable, or the withdrawal by any Ratings Agency of its rating
of the Program, the Notes or the notes issued pursuant to the Registration
Statement, as applicable. The Company will make every reasonable effort to
prevent the issuance of any stop order and, if any stop order is issued, to
obtain the lifting thereof at the earliest possible moment.

 

(ii)           Filing
or Use of Amendments. Prior to the Settlement Date the Company will
give the Dealer(s) advance notice of its intention to file or prepare any
additional registration statement with respect to the registration of
additional notes to be issued pursuant to the Registration Statement, any
amendment or supplement to the Registration Statement (including any filing
under Rule 462(b) of the 1933 Act Regulations) or any amendment or
supplement to the prospectus included in the Registration Statement at the time
it became effective or to the Prospectus (other than an amendment or supplement
thereto providing solely for the determination of the variable terms of the notes
to be issued pursuant to the Registration Statement), whether pursuant to the
1933 Act, the 1934 Act or otherwise, will furnish to such

 

11

 

Dealer(s)
copies of any such document a reasonable amount of time prior to such proposed
filing or use, as the case may be, and will not file any such document in a
form as to which the Dealer or counsel for the Dealer(s) shall reasonably
object in writing, unless, in the judgment of the Company and its counsel, such
amendment or supplement is necessary to comply with law.

 

(iii)          Delivery
of the Registration Statement. The Company will furnish to the
Dealer(s) and to counsel for the Dealer(s), upon request, without charge, one
conformed copy of the Registration Statement as originally filed and of each
amendment thereto (including exhibits filed therewith or incorporated by
reference therein and documents incorporated or deemed to be incorporated by
reference therein) and copies of all consents and certificates of experts. The
Registration Statement and each amendment thereto furnished to a Dealer will be
identical in all material respects to any electronically transmitted copies
thereof filed with the Commission ‘pursuant to EDGAR, except to the extent
permitted by Regulation S-T.

 

(iv)          Delivery
of the Prospectus. The Company will furnish to each Dealer, without
charge, such number of copies of the Prospectus (as amended or supplemented) as
such Dealer may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to such Dealer will be identical in all material
respects to any electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by
Regulation S-T.

 

(v)           Revisions
of Prospectus—Material Changes. If at any time prior to the
Settlement Date, any event shall occur or condition shall exist as a result of
which it is necessary, in the opinion of counsel for the Dealer(s), counsel for
the Company or counsel for the Trust, to amend or supplement the Registration
Statement in order that the Registration Statement will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading or to
amend or supplement the Prospectus in order that the Prospectus will not
include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein not misleading in the light
of the circumstances existing at the time the Prospectus is delivered to a
purchaser, or if it shall be necessary, in the opinion of any such counsel, to
amend or supplement the Registration Statement or amend or supplement the
Prospectus in order to comply with the requirements of the 1933 Act or the 1933
Act Regulations, as applicable, the Company shall give prompt notice, confirmed
in writing, to the Dealer(s) to cease the solicitation of offers for the
purchase of Notes in their capacity as agent, if applicable, and to cease sales
of any Notes they may then own as principal, and the Company will promptly
prepare and file with the Commission, subject to
Section 3(b)(ii) hereof, such amendment or supplement as may be
necessary to correct such statement or omission or to make the Registration
Statement and Prospectus comply with such requirements, and the Company will
furnish to the Dealer(s), without charge, such number of copies of such
amendment or supplement as the Dealer(s) may reasonably request. In addition,
the Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934
Act and the 1934 Act Regulations so as to permit the completion of the
distribution of each offering of Notes.

 

(vi)          Reporting
Requirements. The Company, during the period when the Prospectus is
required to be delivered under the 1933 Act or the 1934 Act, will file all
documents required to be filed with the Commission pursuant to Sections 13, 14
or 15 of the 1934 Act within the time periods prescribed by the 1934 Act and
the 1934 Act Regulations.

 

(vii)         Outstanding
Aggregate Principal Amount of Notes. The Company will promptly, upon
request by a Dealer notify such Dealer of the aggregate principal amount of
notes issued pursuant to the Registration Statement from time to time
outstanding under the Program in their currency of denomination and (if so
requested) expressed in United States dollars. For the purpose of determining
the aggregate principal amount of such notes outstanding (i) the principal
amount of notes issued pursuant to the Registration Statement, denominated in a
currency other than United

 

12

 

States dollars
shall be converted into United States dollars using the spot rate of exchange
for the purchase of the relevant currency against payment of United States
dollars being quoted by the Paying Agent (as defined in the Indenture) on the
date on which the relevant notes issued pursuant to the Registration Statement
were initially offered, (ii) any notes issued pursuant to the Registration
Statement which provide for an amount less than the principal amount thereof to
be due and payable upon redemption following an Event of Default (as defined in
the Indenture) in respect of such notes issued pursuant to the Registration
Statement, shall have a principal amount equal to their redemption amount,
(iii) any zero coupon (and any other notes issued pursuant to the
Registration Statement issued at a discount or premium) shall have a principal
amount equal to their price to the public and (iv) the currency in which
any notes issued pursuant to the Registration Statement are payable, if
different from the currency of their denomination, shall be disregarded.

 

(viii)        Notice
of Certain Events Regarding 1934 Act Filings and Ratings. Prior to
the Settlement Date the Company with respect to its filings with the Commission
under the 1934 Act will notify the Dealer(s) immediately, and confirm such
notice in writing, as applicable, of (i) the receipt of any comments from
the Commission, (ii) any request by the Commission for any amendments to
such filings, (iii) the issuance by the Commission of any stop order
suspending the effectiveness of such filings, or of the initiation of any
proceedings for that purpose or (iv) any change in the rating assigned by
any Ratings Agency to any debt securities or financial strength of the Company,
or the withdrawal by any Ratings Agency of its rating of any debt securities or
the financial strength of the Company. The Company will make every reasonable
effort to prevent the issuance of any stop order and, if any stop order is
issued, to obtain the lifting thereof at the earliest possible moment.

 

(ix)           Earnings
Statements. The Company will timely file such reports pursuant to
the 1934 Act and the 1934 Act Regulations, as are necessary in order to make
generally available to its securityholders as soon as practicable an earnings
statement for the purposes of, and to provide the benefits contemplated by, the
last paragraph of Section 11(a) of the 1933 Act.

 

(x)            Restrictions
on the Offer and Sale of Funding Agreements. Except pursuant to a
Selling Agreement, the Company shall not issue or agree to issue, during the
period commencing on the date of this Distribution Agreement, and continuing to
and including the Settlement Date with respect to the Notes, any Funding
Agreement or similar agreement for the purpose of supporting the issuance by a
special purpose entity of securities denominated in the same currency or
substantially similar to such Notes, in each case without prior notice to the
Dealer(s) (which shall be the bookrunning lead manager(s) in the case of a
syndicated issue).

 

(xi)           Use
of Proceeds. The Company will use the net proceeds received by it
from the issuance and sale of the Funding Agreement(s) in the manner specified
in the Prospectus.

 

(xii)          Authorization
to Act on Behalf of the Company. If requested in writing by the
Dealer(s) in connection with solicitations as agent, the Company will, from
time to time, deliver to the Dealer(s) a certificate as to the names and signatures
of those persons authorized to act on behalf of the Company in relation to the
Program if such information has changed.

 

SECTION 4. Conditions of Dealer(s) Obligations.

 

The
obligations of one or more Dealers to purchase Notes from the Trust as principal,
the obligations of a Dealer to solicit offers for the purchase of Notes as an
agent of the Trust and the obligations of any purchasers of Notes sold through
a Dealer as an agent of the Trust, will be subject to the accuracy of the
representations and warranties, as of the date on which such representations
and warranties were made, or deemed to be made pursuant to Section 2 on
the part of the Company and Trust herein contained or contained in any
certificate of an officer or trustee of the Company or Trust,

 

13

 

respectively,
delivered pursuant to the provisions hereof, to the performance and observance
by each of the Trust and the Company of its covenants and other obligations
hereunder, and to the following additional conditions precedent:

 

(a)           Effectiveness
of Registration Statement. The Registration Statement (including any
Rule 462(b) Registration Statement) has become effective under the 1933
Act and the 1934 Act, as applicable, and no stop order suspending the
effectiveness of the Registration Statement shall have been issued under the
1933 Act, and no proceedings for such purpose shall have been instituted or
shall be pending or, to the knowledge of the Company, threatened by the
Commission, and any request on the part of the Commission for additional
information shall have been complied with to the reasonable satisfaction of
counsel to the Dealer(s).

 

(b)           Legal
Opinions.

 

(i)            On the Settlement
Date for the first series of notes issued under the Program (the “Initial Settlement Date”),
the Dealer(s) shall have received the legal opinions in (A) through
(L) below in form and substance satisfactory to the Dealer(s) (which shall
be the bookrunning lead manager(s) in the case of a syndicated issue); for all
issues after the Initial Settlement Date, the Dealer(s) shall have received the
opinions in (A) through (L) below unless previously provided on the
later of (x) the Initial Settlement Date or (y) the first settlement
date following the most recent annual anniversary date of the Initial
Settlement Date, or unless otherwise agreed among the Company, the Trust and
the Dealer(s) (which shall be the bookrunning lead manager(s) in the case of a
syndicated issue):

 

(A)          Opinion
of the Counsel for the Company. The opinion of Debevoise &
Plimpton or other external counsel reasonably satisfactory to the Dealer(s)
(which shall be the bookrunning lead manger(s) in the case of a syndicated
issue) or internal legal counsel to the Company which shall be at least a Senior
Associate Legal Counsel to the Company (in either case, the “Company Approved Counsel”),
to the effect set forth in Exhibit A
hereto;

 

(B)           Opinion
of Counsel for the Trust. The opinion of Richards Layton &
Finger, or, subsequent to the Initial Settlement Date, Company Approved
Counsel, to the effect set forth in Exhibit B
hereto;

 

(C)           Opinion
of Counsel for the Trustee. The opinion of Richards,
Layton & Finger, or other external counsel reasonably satisfactory to
the Dealer(s) (which shall be the bookrunning lead manager(s) in the case of a
syndicated issue), as counsel for the Trustee to the effect set forth in Exhibit C hereto;

 

(D)          Opinion
of Counsel for the Administrator. The opinion of Tannenbaum Helpern
Syracuse & Hirschtritt LLP, or other external counsel reasonably
satisfactory to the Dealer(s) (which shall be the bookrunning lead manager(s)
in the case of a syndicated issue), as counsel for the Administrator to the
effect set forth in Exhibit D
hereto;

 

(E)           Opinion
of Counsel for the Trust Concerning Delaware Security Interest Matters. The
opinion of Richards, Layton & Finger, or other external counsel
reasonably satisfactory to the Dealer(s) (which shall be the bookrunning lead
manager(s) in the case of a syndicated issue), as counsel for the Trust to the
effect set forth in Exhibit E
hereto;

 

(F)           Opinion
of Counsel for the Company Concerning Certain Tax Matters. The
opinion of Debevoise & Plimpton, counsel for the Company, to the
effect set forth in Exhibit F
hereto;

 

(G)           Opinion
of Counsel for the Company Concerning Certain Insurance Insolvency Matters. The
opinion of Bass, Berry & Sims PLC, Tennessee counsel for the Company,
or, subsequent to the Initial Settlement Date, Company Approved Counsel, to the
effect set forth in Exhibit G
hereto;

 

14

 

(H)          Opinion
of Counsel for the Company Concerning Certain Insurance Regulatory Matters. The
opinion of White & Case, Counsel for the Company, to the effect set
forth in Exhibit H hereto;

 

(I)            Opinion
of Counsel for the Dealer(s) Concerning Certain Federal Securities Law Matters.
The opinion of Sidley Austin Brown & Wood LLP, counsel for
the Dealer(s), to the effect set forth in Exhibit I
hereto;

 

(J)            Opinion
of Counsel for the Dealer(s) Concerning Certain New York Security Interest
Matters. The opinion of Sidley Austin Brown & Wood LLP,
counsel for the Dealer(s), to the effect set forth in Exhibit J hereto;

 

(K)          Opinion
of Counsel for the Company Concerning Certain New York Law Matters. The
opinion of Debevoise & Plimpton or Company Approved Counsel, as
counsel for the Company, to the effect set forth in Exhibit K; and

 

(L)           Opinion
of Delaware Counsel Concerning Enforceability of the Funding Agreement. The
opinion of Richards Layton & Finger, or, subsequent to the Initial
Settlement Date, Company Approved Counsel, to the effect set forth in Exhibit L hereto.

 

(ii)           On the Settlement
Date the following negative assurances shall be delivered to the Dealer(s) each
dated as of the Settlement Date:

 

(A)          Negative
Assurance of Counsel for the Dealer(s). The negative assurance of
Sidley Austin Brown & Wood LLP, counsel for the Dealer(s), with
respect to the matters set forth in Exhibit M
hereto; and

 

(B)           Negative
Assurance of Counsel for the Company. The negative assurance of
Debevoise & Plimpton or Company Approved Counsel, as counsel for the
Company, to the effect set forth in Exhibit N
hereto.

 

(c)           Trust
Officer’s Certificate. On the Settlement Date there shall not have
been, since the respective dates as of which information is given in the
Prospectus, any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Trust, whether or not arising in the ordinary course of business, and the
Dealer(s) shall have received a certificate of an officer of the Administrator
of the Trust, dated as of the Settlement Date or other agreed upon date to the
effect that (i) there has been no such material adverse change,
(ii) the representations and warranties of the Trust herein contained are
true and correct with the same force and effect as though expressly made at and
as of the date of such certificate, and (iii) the Trust has complied with
all agreements and satisfied all conditions on its part to be performed or
satisfied at or prior to the date of such certificate.

 

(d)           Company
Officer’s Certificate. On the Settlement Date there shall not have
been, since the respective dates as of which information is given in the
Prospectus, any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, and the Dealer(s) shall have received
a certificate of an officer of the Company who is at least a Senior Vice
President of the Company and of the chief financial officer or chief accounting
officer of the Company, dated as of the Settlement Date or other agreed upon
date to the effect that (i) there has been no such material adverse
change, (ii) the representations and warranties of the Company herein
contained are true and correct with the same force and effect as though
expressly made at and as of the date of such certificate, (iii) the Company
has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to the date of such certificate, and
(iv) no stop order suspending the effectiveness of the Registration
Statement has been issued and

 

15

 

no proceedings
for that purpose have been instituted, are pending or, to the best of such
person’s knowledge, are threatened by the Commission.

 

(e)           Comfort
Letter of Accountants to the Company. On the Settlement Date the
Dealer(s) shall have received a letter from PricewaterhouseCoopers LLP or its
successor, as accountants to the Company (the “Accountants”), dated as of the
Settlement Date and in form and substance satisfactory to the Dealer(s), to the
effect set forth in Exhibit O hereto.

 

(f)            Additional
Documents. On the Settlement Date counsel to the Dealer(s) shall
have been furnished with such documents and opinions as such counsel may
reasonably require for the purpose of enabling such counsel to pass upon the
issuance and sale of Notes as herein contemplated and related proceedings, or
in order to evidence the accuracy of any of the representations and warranties,
or the fulfillment of any of the conditions, herein contained; and all
proceedings taken by the Company and Trust in connection with the issuance and
sale of the Notes as herein contemplated shall be reasonably satisfactory in
form and substance to the Dealer(s) and to counsel to the Dealer(s).

 

If any
condition specified in this Section 4 shall not have been fulfilled when
and as required to be fulfilled, this Distribution Agreement may be terminated
by any Dealer (as to itself only or on behalf of the other Dealer(s) by the
bookrunning lead manager(s) in the case of a syndicated issue) by notice to the
Company and the Trust at any time and any such termination shall be without
liability of any party to any other party except as provided in Section 8
hereof and except that Sections 5(e), 6, 7, 9(c), 10(b) and 10(c) hereof shall
survive any such termination and remain in full force and effect.

SECTION 5. Purchases as Principal; Solicitations as Agent.

 

(a)           Purchases
as Principal. Notes purchased from the Trust by the Dealer(s),
individually or in a syndicate, as principal shall be made in accordance with
terms herein and the terms agreed upon between such Dealer(s), on one hand, and
the Company and the Trust, on the other hand pursuant to this Distribution
Agreement. A Dealer’s commitment to purchase Notes as principal shall be deemed
to have been made on the basis of the representations and warranties of the
Company and the Trust herein contained and shall be subject to the terms and
conditions herein set forth. The Dealer(s) may engage the services of any
broker or dealer in connection with the resale of the Notes purchased by them
as principal and may allow all or any portion of the discount received by them
in connection with such purchases to any broker or dealer.

 

If this
Distribution Agreement provides for two or more Dealers to purchase Notes from
the Trust as principal and one or more of such Dealers shall fail at the
Settlement Date to purchase the Notes which it or they are obligated to
purchase (the “Defaulted
Notes”), then the nondefaulting Dealer(s) shall have the right,
within 24 hours thereafter, to make arrangements for one of them or one or
more other Dealers or underwriters to purchase all, but not less than all, of
the Defaulted Notes in such amounts as may be agreed upon and upon the terms
herein set forth; provided, however, that if such arrangements shall not have
been completed within such 24-hour period, then the Company and the Trust shall
have the right, within 24 hours after the expiration of such previous
24-hour period, to procure another party or other parties reasonably
satisfactory to the Dealer(s) to purchase the Defaulted Notes in such amounts
as may be agreed upon and upon the terms herein set forth; if however, the
Company and the Trust shall not have completed such arrangements within such
24-hour period, then:

 

(i)            if the aggregate
principal amount of Defaulted Notes does not exceed 10% of the aggregate
principal amount of Notes to be so purchased by all of such Dealers on the
Settlement Date, the nondefaulting Dealer(s) shall be obligated, severally and
not jointly, to purchase the full amount thereof in the proportions that their
respective initial underwriting obligations bear to the underwriting
obligations of all nondefaulting Dealer(s); or

 

16

 

(ii)           if the aggregate
principal amount of Defaulted Notes exceeds 10% of the aggregate principal
amount of Notes to be so purchased by all of such Dealers on the Settlement
Date, such agreement shall terminate without liability on the part of any
nondefaulting Dealer.

 

No action
taken pursuant to this paragraph shall relieve any defaulting Dealer from
liability in respect of its default. In the event of any such default which
does not result in a termination of such agreement, either the nondefaulting
Dealer(s), on one hand, or the Company and the Trust, on the other hand, shall
have the right to postpone the Settlement Date for a period not exceeding seven
days in order to effect any required changes in the Registration Statement or
the Prospectus or in any other documents or arrangements.

 

(b)           Solicitations
as Agent. If provided for in this Distribution Agreement and on the
basis of the representations and warranties herein contained, but subject to
the terms and conditions herein set forth, the Dealer(s) party hereto, as agent
of the Trust, will use its (or their) reasonable best efforts to solicit offers
for the purchase of Notes upon the terms and conditions set forth herein and in
the Prospectus. Each such Dealer is authorized to appoint any sub-agent with
respect to solicitations of offers to purchase Notes. All Notes sold through
each such Dealer as an agent will be sold at one hundred percent (100%) of
their principal amount unless otherwise agreed upon between the Company and the
Trust, on one hand, and such Dealer, on the other hand.

 

The Trust
reserves the right, in its sole discretion, to suspend solicitation of offers
for the purchase of Notes through a Dealer, as an agent of the Trust,
commencing at any time for any period of time or permanently. As soon as practicable
after receipt of instructions (which may be given orally) from the Trust, but
in no event later than one business day after such instructions have been
provided, each such Dealer will suspend solicitation of offers for the purchase
of Notes from the Trust until such time as the Trust has advised such Dealer
that such solicitation may be resumed. For the purpose of the foregoing
sentence, “business day” shall mean any day which is not a Saturday or a Sunday
or a day on which banking institutions in The City of New York are authorized
or required by law or executive order to be closed.

 

The Trust
agrees to pay each Dealer, as consideration for soliciting offers to purchase
Notes as an agent of the Trust, a commission, which each such Dealer is hereby
authorized to deduct from the sales proceeds of Notes sold by the Trust as a
result of a solicitation as agent made by each such Dealer, equal to the
applicable percentage of the principal amount of each Note sold by the Trust as
a result of any such solicitation made by each such Dealer, as set forth in Schedule 1 hereto.

 

Delivery of
Notes sold through a Dealer as an agent of the Trust shall be made by the Trust
to such Dealer for the account of any purchaser only against payment therefor
in immediately available funds. In the event that a purchaser shall fail either
to accept delivery of or to make payment for a Note on the date fixed for
settlement, such Dealer shall promptly notify the Trust and deliver such Note
to the Trust and, if such Dealer has theretofore paid the Trust for such Note,
the Trust will promptly return such funds to such Dealer. If such failure has
occurred for any reason other than default by such Dealer in the performance of
its obligations hereunder, the Trust will reimburse such Dealer on an equitable
basis for its loss of the use of the funds for the period such funds were
credited to the Trust’s account.

 

(c)           Marketing
Materials; Conduct of Offering. In connection with the solicitation
of offers to purchase the Notes, without the prior written consent of the
Company, the Dealer(s) are not authorized to provide any written information
relating to the Company and the Trust to any prospective purchaser other than
the Prospectus as then amended or supplemented which has been most recently
distributed to the Dealer(s) by the Company, and the Dealer(s) will solicit
offers to purchase only as permitted or contemplated thereby and herein and
will solicit offers to purchase the Notes only as permitted by the 1933 Act and
the applicable securities laws or regulations of any jurisdiction.

 

17

 

(d)           Administrative
Procedures. If each Dealer is acting as agent, the purchase price,
interest rate or formula, maturity date and other terms of the Notes specified
in this Distribution Agreement shall be agreed upon between the Trust and the
Company, on one hand, and the Dealer(s), on the other hand, and specified in a
Pricing Supplement prepared in connection with each sale of Notes. Except as
otherwise specified in the applicable Pricing Supplement, the Notes will be
issued in denominations of U.S. $1,000 or any larger amount that is an integral
multiple of U.S. $1,000. Unless otherwise agreed, the Dealer(s), Trust and
Company shall perform and the Company agrees to cause the Administrator and
Indenture Trustee to perform, their respective duties and obligations
specifically provided to be performed by them in the Administrative procedures,
substantially in the form of Exhibit P hereto (the “Administrative Procedures”).

 

(e)           Obligations
Several. The Company and Trust acknowledge that the obligations of
the Dealer(s) under this Distribution Agreement are several and not joint.

 

(f)            Survival.
All representations, warranties and agreements contained in this
Distribution Agreement, in certificates of officers of the Company or any of
its subsidiaries, or in certificates of the officers of the Administrator or
Trustee of the Trust submitted pursuant hereto or thereto shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of the Dealer(s) or any controlling person of the Dealer(s), or by
or on behalf of the Company or the Trust, and shall survive each delivery of
and payment for the Notes.

 

SECTION 6. Indemnification.

 

(a)           Indemnification
of the Dealer. The Company and Trust agree to jointly and severally
indemnify and hold harmless each Dealer and each person, if any, who controls
such Dealer within the meaning of Section 15 of the 1933 Act against any
and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of an untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement (or any amendment thereto) or the
omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading, or arising
out of an untrue statement or alleged untrue statement of a material fact
included in any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided, however,
that this indemnity does not apply to (i) any loss, liability, claim,
damage or expense to the extent arising out of an untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity
with written information furnished to the Company or Trust by such Dealer(s)
expressly for use in the Registration Statement (or any amendment thereto) or
any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto), (ii) any loss, liability, claim, damage or expense arising out
of any statements in or omissions from that part of the Registration Statement
which constitutes the Statements of Eligibility and Qualification
(Form T-1) under the 1939 Act of the Trustee or the Indenture Trustee or
(iii) with respect to any preliminary prospectus to the extent that any
such loss, claim, expense, damage or liability of such Dealer results from the
fact that such Dealer sold Notes to a person as to whom it shall be established
by the Company and the Trust that there was not sent or given, at or prior to
the written confirmation of such sale, a copy of the Prospectus (as amended or
supplemented) in any case where such delivery is required by the 1933 Act, if
such Dealer failed to make reasonable efforts generally consistent with the
then prevailing industry practice to effect such delivery and the Company and
the Trust has previously furnished copies thereof in sufficient quantities to
such Dealer and the loss, claim, expense, damage or liability of such Dealer
results from an untrue statement or omission of a material fact contained in
the preliminary prospectus that was corrected in the Prospectus.

 

(b)           Indemnification
of Company and Trust. Each Dealer agrees, severally but not jointly,
to indemnify and hold harmless the Company, the Trust, their directors,
officers and trustees (if applicable) who signed the Registration Statement and
each person, if any, who controls the Company

 

18

 

or Trust
within the meaning of Section 15 of the 1933 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in
Section 6(a) hereof, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto) or any preliminary prospectus
or the Prospectus (or any amendment or supplement thereto) in reliance upon and
in conformity with written information furnished to the Company or the Trust by
such Dealer expressly for use in the Registration Statement (or any amendment
thereto) or such preliminary prospectus or the Prospectus (or any amendment or
supplement thereto).

 

(c)           Actions
Against Parties; Notification. Each indemnified party shall give
notice as promptly as reasonably practicable to each indemnifying party of any
action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve
such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this
indemnity agreement. In the case of parties indemnified pursuant to
Section 6(a) hereof, counsel to the indemnified parties shall be selected
by the Dealer(s) and, in the case of parties indemnified pursuant to
Section 6(b) hereof, counsel to the indemnified parties shall be selected
by the Company. An indemnifying party may participate at its own expense in the
defense of any such action; provided, however, that counsel to the indemnifying
party shall not (except with the consent of the indemnified party, which
consent shall not be unreasonably withheld) also be counsel to the indemnified
party. In no event shall the indemnifying parties be liable for fees and
expenses of more than one counsel (in addition to any local counsel) separate
from their own counsel for all indemnified parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.

 

No
indemnifying party shall, without the prior written consent of the indemnified
parties (which consent shall not be unreasonably withheld), settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 or
Section 7 hereof (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent
(i) is for monetary damages only, (ii) includes an unconditional
release of each indemnified party from all liability arising out of such
litigation, investigation, proceeding or claim and (iii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.

 

(d)           Settlement
Without Consent if Failure to Reimburse. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of any claim, suit,
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, arising out of the events or occurrences
described in Section 6(a) (if the Company and Trust are the indemnifying
parties) or Section 6(b) (if a Dealer is an indemnifying party), and such
settlement is effected without the indemnifying party’s written consent if
(i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified
party in accordance with such request prior to the date of such settlement.
Notwithstanding the immediately preceding sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, an indemnifying party shall
not be liable for any settlement of the nature contemplated by this
Section 6(d) effected without its consent if such indemnifying party
(i) reimburses such indemnified party in accordance with such request to
the extent it considers such request to be reasonable and

 

19

 

(ii) provides
written notice to the indemnified party substantiating the unpaid balance as
unreasonable, in each case prior to the date of such settlement.

SECTION 7. Contribution.

 

If the
indemnification provided for in Section 6 hereof is for any reason
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein
(other than as provided therein), then each indemnifying party shall contribute
to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Trust, on one hand, and the Dealer(s), on the other hand, from
the offering of the relevant Series of Notes, as the case may be, that were the
subject of the claim for indemnification or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and
Trust, on one hand, and the Dealer(s), on the other hand, in connection with
the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

 

The relative
benefits received by the Company and the Trust, on the one hand, and the
Dealer(s), on the other hand, in connection with the offering of the relevant
Series of Notes, as the case may be, that were the subject of the claim for
indemnification shall be deemed to be in the same respective proportions as the
total net proceeds from the offering of such Notes (before deducting expenses)
received by the Trust and the total discount or commission received by the
Dealer(s), as the case may be, bears to the aggregate initial offering price of
such Notes.

 

The relative
fault of the Company and the Trust, on one hand, and the Dealer(s), on the
other hand, shall be determined by reference to, among other things, whether
any untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
the Company or the Trust, on one hand, or by the Dealer(s), on the other hand,
and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.

 

The parties
agree that it would not be just and equitable if contribution pursuant to this
Section 7 were determined by pro rata allocation (even if the Dealer(s)
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this Section 7. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to
above in this Section 7 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any applicable untrue or alleged untrue statement
or omission or alleged omission.

 

Notwithstanding
the provisions of this Section 7, (i) no Dealer shall be required to
contribute any amount in excess of the amount by which the total price, at
which the Notes underwritten by such Dealer and distributed to the public, were
offered to the public exceeds the amount of any damages which such Dealer has
otherwise been required to pay by reason of any applicable untrue or alleged
untrue statement or omission or alleged omission and (ii) no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. In addition, in connection with an
offering of Notes purchased from the Trust by two or more Dealers as principal,
the respective obligations of such Dealers to contribute pursuant to this
Section 7 are several, and not joint, in proportion to the aggregate
principal amount of Notes that each such Dealer has agreed to purchase from the
Trust.

 

20

 

For purposes
of this Section 7, each person, if any, who controls a Dealer within the
meaning of Section 15 of the 1933 Act shall have the same rights to
contribution as such Dealer, and each director, officer and trustee (if
applicable) of the Company or Trust, as applicable, and each person, if any, who
controls the Company or Trust within the meaning of Section 15 of the 1933
Act shall have the same rights to contribution as the Company or Trust, as
applicable.

SECTION 8. Payment of Expenses.

 

The Company
will pay all expenses incident to the performance of the obligations of the
Company and Trust under this Distribution Agreement, including:

 

(a)           The preparation, filing, printing and
delivery of the Registration Statement as originally filed and all amendments
thereto and any preliminary prospectus, the Prospectus and any amendments or
supplements thereto;

 

(b)           The preparation, printing and
delivery of the Program Documents;

 

(c)           The preparation, issuance and
delivery of the Notes, including any fees and expenses relating to the
eligibility and issuance of Notes in book-entry form and the cost of obtaining
CUSIP or other identification numbers for the Notes;

 

(d)           The fees and disbursements of the
Company’s and Trust’s accountants, counsel and other advisors or agents
(including any calculation agent or exchange rate agent) and of the Trustee,
Administrator and Indenture Trustee and their counsel;

 

(e)           The reasonable fees and disbursements
of counsel to the Dealer(s) incurred in connection with the establishment and
maintenance of the Program and incurred from time to time in connection with
the transactions contemplated hereby;

 

(f)            The fees charged by the nationally
recognized statistical rating organizations for the rating of the Program and
the Notes;

 

(g)           The fees and expenses incurred in
connection with any listing of Notes on a securities exchange;

 

(h)           The filing fees incident to, and the
reasonable fees and disbursements of counsel to the Dealer(s) in connection
with, the review, if any, by the National Association of Securities
Dealers, Inc. (the “NASD”);
and

 

(i)            Any advertising and other
out-of-pocket expenses of the Dealer(s) incurred with the prior written
approval of the Company and Trust.

SECTION 9. Termination.

 

(a)           Termination
of this Distribution Agreement. If each Dealer is acting as agent,
this Distribution Agreement may be terminated for any reason, at any time by
the Company, Trust, or a Dealer, as to itself, upon written notice of such
termination to the other parties hereto.

 

(b)           Termination
of Agreement to Purchase Notes as Principal. The Dealer(s) (which
shall be the bookrunning lead manager(s) in the case of a syndicated issue) may
terminate any agreement by such Dealer(s) (and any other Dealers, in the case
of a syndicated issue) to purchase Notes from the Trust as principal, immediately
upon written notice to the Company and the Trust, at any time on or prior to
the Settlement Date relating thereto, if (i) there has been, since the
time of such agreement or since the respective dates as of which information is
given in the Prospectus, any material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise, or
of the Trust, whether or not arising in the ordinary course of business, or
(ii) there has occurred any material adverse change in the financial
markets in the United States or any outbreak of hostilities or escalation of
existing hostilities or other

 

21

 

calamity or
crisis or any similar change or similar development or event (including without
limitation, an act of terrorism) involving a prospective change in national or
international political, financial or economic conditions, in each case the
effect of which is such as to make it, in the reasonable judgment of Dealer(s)
(which shall be the bookrunning lead manager(s) in the case of a syndicated
issue) after consultation with the Company), impracticable to market such Notes
or enforce contracts for the sale of such Notes, (iii) trading in any
securities of Protective Life Corporation, a publicly owned holding company
incorporated under the laws of the State of Delaware (the “Corporation”), the
Company, or Trust has been suspended or materially limited by the Commission or
the New York Stock Exchange, or if trading generally on the New York Stock
Exchange or the American Stock Exchange or in the Nasdaq National Market has
been suspended or materially limited, or minimum or maximum prices for trading
have been fixed, or maximum ranges for prices for securities have been
required, by either of said exchanges or by such system or by order of the
Commission, the NASD or any other governmental authority, or a material
disruption has occurred in commercial banking or securities settlement or
clearance services in the United States, (iv) a banking moratorium has
been declared by either Federal or New York authorities or (v) the rating
assigned by any Ratings Agency to the Program, any notes issued pursuant to the
Registration Statement, or any debt securities (including the Notes) of the
Trust or any securities or the financial strength of the Corporation or Company
as of the date of such agreement shall have been lowered or withdrawn since
that date or if any Ratings Agency shall have publicly announced that it has
under surveillance or review its rating of the Program, any notes issued
pursuant to the Registration Statement, or any debt securities (including the
Notes) of the Trust or any securities or the financial strength of the
Corporation or Company; provided, however, that such agreement may not be
terminated by a Dealer if such Dealer knew about any such action or
announcement by any Ratings Agency prior to the date and time of the execution
of this Distribution Agreement by such Dealer to purchase Notes from the Trust.

 

(c)           General.
In the event of any termination under Section 9(a) or
Section 9(b) above, neither party will have any liability to the other
party hereto, except that (i) if any Dealer is acting as agent, such
Dealer(s) shall be entitled to any commissions earned in accordance with the
third paragraph of Section 5(b) hereof for sales of Notes which have
settled on or before the effective date of termination under Section 9(a)
above, (ii) if at the time of termination (a) any Dealer shall own
any Notes purchased by it from the Trust as principal or (b) an offer to
purchase any of the Notes has been accepted by the Trust but the time of
delivery to the purchaser or his agent of such Notes relating thereto has not
occurred, the covenants set forth in Section 3 hereof shall remain in
effect until such Notes are so resold or delivered, as the case may be, and
(iii) the covenant set forth in Section 3(b)(ix) hereof, the
provisions of Section 8 hereof, the indemnity and contribution agreements
set forth in Sections 6 and 7 hereof, and the provisions of Sections 5(e),
10(b) and 10(c) hereof shall remain in effect.

 

SECTION 10. Miscellaneous.

 

(a)           Notice.
Unless otherwise provided herein, all notices required under the terms
and provisions hereof shall be in writing, either delivered by hand, by mail or
by telex, telecopier or telegram, and any such notice shall be effective when
received at the address specified below.

 

22

 

If to the
Company:

 

Protective
Life Insurance Company

111 North
First St. Suite 209

Burbank, CA
91502

Attention:
Judy Wilson

Telecopy No.:
(818) 729-1800

 

If to the
Trust:

Protective
Life Secured Trust (followed by the number of the Trust designated in this
Distribution Agreement)

c/o Wilmington
Trust Company

Rodney Square
North

1100 N. Market
Street

Wilmington, DE
19890-0001

Attention:
Corporate Trust Administration

Telecopy No.:
(302)636-4140

 

If to the
Dealer(s):

 

At the
address(es) specified in this Distribution Agreement.

 

or at such
other address as such party may designate from time to time by notice duly
given in accordance with the terms of this Section 10(a).

 

(b)           Parties.
This Distribution Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors. Nothing
expressed or mentioned in this Distribution Agreement is intended or shall be
construed to give any person, firm or corporation, other than the parties
hereto and their respective successors and the controlling persons, officers
and directors referred to in Sections 6 and 7 hereof and their heirs and legal
representatives, any legal or equitable right, remedy or claim under or in
respect of this Distribution Agreement or any provision herein contained. This
Distribution Agreement and all conditions and provisions hereof are intended to
be for the sole and exclusive benefit of the parties hereto and their
respective successors, and said controlling persons, officers and directors and
their heirs and legal representatives, and for the benefit of no other person,
firm or corporation. No purchaser of Notes shall be deemed to be a successor by
reason merely of such purchase.

 

(c)           GOVERNING
LAW; FORUM. THIS DISTRIBUTION AGREEMENT AND ALL THE RIGHTS AND
OBLIGATIONS OF THE PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

 

(d)           Effect
of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.

 

(e)           Counterparts.
This Distribution Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts hereof shall constitute a single instrument.

 

(f)            Amendments.
This Distribution Agreement may be amended or supplemented if, but
only if, such amendment or supplement is in writing and is signed by the
Company, Trust, and the Dealer(s). In the event that each Dealer is acting as
an agent of the Trust, the Company and the Trust may from time to time nominate
an additional institution as a new Dealer hereunder, in which event, upon
confirmation by such institution of an initial purchaser accession letter (the
“Dealer Accession Letter”)
in the terms or substantially in the form of Exhibit Q,
such institution shall become a party hereto, subject

 

23

 

as provided
below, with all the authority, rights, powers, duties and obligations of a
Dealer as if originally named as a Dealer hereunder.

 

24

 

Index of Exhibits and Schedules to Standard Distribution
Agreement Terms

 

	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Company

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Trust

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Trustee

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Administrator

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Trust Concerning Delaware Security Interest
  Matters

  
	
  Exhibit F

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Debevoise & Plimpton, Counsel for the Company, Concerning
  Certain Tax Matters

  
	
  Exhibit G

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Company, Concerning Certain Insurance Insolvency
  Matters

  
	
  Exhibit H

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of White & Case, Counsel for the Company, Concerning Certain
  Insurance Regulatory Matters

  
	
  Exhibit I

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Sidley Austin Brown & Wood LLP, Counsel for the Dealer(s)
  Concerning Certain Federal Securities Law Matters

  
	
  Exhibit J

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Sidley Austin Brown & Wood LLP, Counsel for the Dealer(s)
  Concerning Certain New York Security Interest Matters

  
	
  Exhibit K

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Counsel for the Company Concerning Certain New York Law Matters

  
	
  Exhibit L

  	
   

  	
  —

  	
   

  	
  Form of
  Opinion of Delaware Counsel for the Trust Concerning Certain Delaware Law
  Matters

  
	
  Exhibit M

  	
   

  	
  —

  	
   

  	
  Form of
  Negative Assurance of Sidley Austin Brown & Wood LLP, Counsel for
  the Dealer(s)

  
	
  Exhibit N

  	
   

  	
  —

  	
   

  	
  Form of
  Negative Assurance of Counsel for the Company

  
	
  Exhibit O

  	
   

  	
  —

  	
   

  	
  Form of
  Comfort Letter of PricewaterhouseCoopers LLP, Accountants to the Company

  
	
  Exhibit P

  	
   

  	
  —

  	
   

  	
  Administrative
  Procedures

  
	
  Exhibit Q

  	
   

  	
  —

  	
   

  	
  Form of
  Dealer Accession Letter

  

 

	
  Schedules

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1

  	
   

  	
  —

  	
   

  	
  Agent
  Commissions

  

 

25

 

SCHEDULE 1

 

[Selling Agent Agreement Specifications

 

In connection
with Section VI(a)(viii) of the Selling Agent Agreement, the Program
under which the Notes are issued, as well as the Notes, as applicable, are
rated   •   by Moody’s and   •   by S&P. In connection
with Section VI(b)(xiv) of the Selling Agent Agreement, the Company’s
financial strength rating is   •   by Moody’s and   •   by S&P.

 

[In accordance
with Article 2 of the Selling Agent Agreement and in connection with the
purchase of Notes from the Trust by the Purchasing Agent as principal, the following
items will be delivered on the Original Issue Date:

 

(1)           Legal opinion(s) pursuant to
Section(s) VII(a) of the Selling Agent Agreement.

 

(2)           Comfort letter pursuant to Section
VII(b) of the Selling Agent Agreement.]]

 

[Distribution Agreement Specifications

 

In connection
with Section 2(a)(viii) of the Distribution Agreement, the Program
under which the Notes are issued, as well as the Notes, as applicable, are
rated   •   by Moody’s and   •   by S&P. In connection
with Section 2(b)(xiv) of the Distribution Agreement, the Company’s
financial strength rating is   •   by Moody’s and   •   by S&P.

 

In connection
with Article 2 of the Distribution Agreement, set forth below is each
Dealer’s notice information:

 

[Lehman
Brothers Inc.

745 Seventh
Avenue

New York, NY
10019

Attn: Medium
Term Note Desk

Telecopy No.:
212 526 0943]]

 

1-1

 

ANNEX A

 

Pricing Supplement

 

[
Section A-1. InterNotes® Pricing Supplement

 

The
following form of Pricing Supplement should be used if the Trust is issuing
InterNotes® to retail investors.

 

	
  Pricing Supplement No. •
  Dated:                 ,
  

  (To Prospectus dated                     ,
  200   , and Prospectus Supplement dated            ,
  200_)

  Pricing Supplement No.                                                     

  This Pricing Supplement consists of • pages

  	
   

  	
  Rule 424(b)(•)

  

  File No. •

  

 

Protective Life Insurance Company

Depositor

$3,000,000,000

InterNotes®

Issued Through

Protective Life Secured Trust •

 

1.             The
Notes

 

	
  Trade Date:

  	
   

  	
   

  
	
  Original Issue Date:

  	
   

  	
   

  
	
  Minimum Denominations/Increments:

  	
  $

  	
   

  	
   

  
						

 

	
  CUSIP

  	
   

  	
  PRINCIPAL

  AMOUNT

  	
   

  	
  PRICE

  TO PUBLIC

  	
   

  	
  CONCESSION

  	
   

  	
  NET

  PROCEEDS

  TO THE

  TRUST

  	
   

  	
  INTEREST

  RATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  INTEREST

  PAYMENT

  FREQUENCY

  	
   

  	
  STATED

  MATURITY

  DATE

  	
   

  	
  SURVIVOR’S

  OPTION

  	
   

  	
  REDEMPTION

  YES/NO

  	
   

  	
  REPAYMENT

  YES/NO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-1-1

 

	
  SECURITIES EXCHANGE

  LISTING

  YES/NO

  	
   

  	
  FUNDING

  AGREEMENT NO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Terms of Survivor’s Option:

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Annual Put Limitation:

  	
   

  	
  o

  	
  $2,000,000 or 2%; or

  	 

	
   

  	
   

  	
   

  	
   

  	
  o

  	
  $

  	
   

  	
   

  	
  or

  	
   

  	
   

  	
   

  	
  %

  	 

	
   

  	
  Individual Put Limitation:

  	
   

  	
  o

  	
  $250,000; or

  	 

	
   

  	
   

  	
   

  	
   

  	
  o

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Trust Put Limitation:

  	
  $

  	
   

  	
   

  	
   

  	
   

  	 

	
  Optional Redemption Terms:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Optional Redemption Dates:

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Initial Redemption Percentage:

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Annual Percentage Reduction (if any):

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Redemption:

  	
   

  	
  o

  	
  In whole only and not in part

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  o

  	
  May be in whole or in part

  	
   

  	
   

  	 

	
  Optional Repayment Terms:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Optional Repayment Dates:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Optional Repayment:

  	
  o

  	
  In whole only and not in part

  	
   

  	
   

  	 

	
   

  	
   

  	
  o

  	
  May be in whole or in part

  	
   

  	
   

  	 

	
  Form of trust:

  	
  o

  	
  Delaware statutory trust

  	
  o

  	
  Delaware common law trust

  	 

	
  Trust Expiration Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Special Tax Considerations:

  	
   

  	
   

  	
   

  	
   

  
	
  Rating of Notes:

  	
   

  	
  S&P

  	
   

  	
   

  	
  Moody’s

  	
   

  	
   

  	
   

  	 

	
  Securities Exchange Listing:

  	
   

  	
  o

  	
  No

  	
   

  	
  o

  	
  Yes, Name of Exchange:

  	
   

  	
   

  	 

	
  Additional Terms:

  	
   

  	
   

  	
   

  	
   

  	 

	
  Agents:

  	
   

  	
   

  	
   

  	
   

  	 

																																																				

 

 

	
  Agents

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
   

  	
   

  

 

A-1-2

 

2.             The
Funding Agreement(s)

 

	
  Funding Agreement Issuer: Protective Life Insurance
  Company

  	
   

  	
   

  
	
  Deposit Amount:

  	
   

  	
   

  
	
  Issue Price

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
   

  
	
  Interest Payment Frequency:

  	
   

  	
   

  
	
  Stated Maturity Date:

  	
   

  	
   

  
	
  Survivor’s Option:

  	
  o

  	
  Yes

  	
  o

  	
  No

  	
   

  	
   

  
							

 

If yes:

 

	
   

  	
  Annual Put Limitation:

  	
   

  	
  o

  	
  $2,000,000 or 2%; or

  
	
   

  	
   

  	
   

  	
  o

  	
  $

  	
   

  	
  or

  	
   

  	
  %

  	
   

  	
   

  	
   

  
	
   

  	
  Individual Put Limitation:

  	
   

  	
  o

  	
  $250,000; or

  
	
   

  	
   

  	
   

  	
  o

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
  Trust Put Limitation:

  	
  $

  	
   

  	
   

  
														

 

	
  Redemption:

  	
  o

  	
  Yes

  	
  o

  	
  No

  	
   

  	
   

  	
   

  
	
   

  	
  Early Redemption Dates:

  	
   

  	
   

  
	
   

  	
  Initial Redemption Percentage:

  	
   

  	
   

  
	
   

  	
  Annual Percentage Reduction (if any):

  	
   

  	
   

  
	
   

  	
  Redemption:

  	
  o

  	
  In whole only and not in part

  	
   

  	
   

  
	
   

  	
  o

  	
  May be in whole or in part

  	
   

  	
   

  
											

 

	
  Repayment:

  	
  o

  	
  Yes

  	
  o

  	
  No

  	
   

  
	
   

  	
  Repayment Dates:

  	
   

  
	
   

  	
  Repayment:

  	
  o

  	
  In whole only and not in part

  
	
   

  	
  o

  	
  May be in whole or in part

  
											

 

	
  Rating of Funding Agreement:

  	
  S&P

  	
   

  	
   

  	
  Moody’s

  	
   

  	
   

  
	
  Additional Terms: ]

  	
   

  	
   

  

 

A-1-3

 

[Section
A-2. Secured Medium-Term Notes Pricing Supplement

 

The following form of Pricing Supplement should be used if
the Trust is issuing secured medium-term notes to institutional investors.

 

 

Rule 424(b)(•)

 

Pricing Supplement No. •      Dated: 
•

 

(To prospectus dated •, 20      
and prospectus supplement dated •, 20      )

 

File No. •

 

Protective Life Insurance Company

Depositor

$3,000,000,000

Secured Medium-Term Notes

Issued Through

Protective Life Secured Trust •

 

The
description in this pricing supplement of the particular terms of the Secured
Medium-Term Notes offered hereby and the Funding Agreement(s) sold by
Protective Life Insurance Company to the Trust specified herein supplements the
description of the general terms and provisions of the notes and the funding
agreement(s) set forth in the accompanying prospectus and prospectus
supplement, to which reference is hereby made.

 

1.             The
Notes

 

Principal Amount:

 

Price to Public:

 

Net Proceeds to the Trust:

 

Dealers’ Discount:

 

Original Issue Date:

 

Stated Maturity Date:

 

Specified Currency:

 

Interest Payment Dates:

 

Initial Interest Payment Date:

 

Regular Record Dates: 
[15 calendar days prior to the Interest Payment Dates]

 

Type of Interest Rate: o
Fixed Rate  o
Floating Rate

 

A-2-1

 

Fixed Rate Notes:

 

Interest Rate:

 

Floating Rate Notes:

 

Initial Interest Rate:

 

Initial Interest Reset Date:

 

Base Rate:

 

	
  o

  	
  CD Rate

  	
   

  	
  o

  	
  Commercial Paper Rate

  
	
  o

  	
  Constant Maturity Treasury Rate

  	
   

  	
  o

  	
  Federal Funds Rate

  
	
  o

  	
  LIBOR

  	
   

  	
  o

  	
  Treasury Rate

  
	
  o

  	
  Prime Rate

  	
   

  	
  o

  	
  Other (See Attached)

  

 

	
  If LIBOR:

  	
  o

  	
  LIBOR Reuters Page

  	
   

  	
  o

  	
  LIBOR Telerate Page

  
	
   

  	
  Designated LIBOR Currency:

  

 

	
  If Constant Maturity Treasury Rate:

  
	
   

  	
  Designated CMT Telerate Page: 

  	
  o

  	
  7051 

  	
   o

  	
  7052

  	
   

  	
   

  
	
   

  	
  If 7052:

  	
  o

  	
  Weekly Average

  	
   

  	
  o

  	
  Monthly Average

  
	
   

  	
  Designated CMT Maturity Index:

  	
   

  	
   

  
										

 

Interest Reset Dates:

 

Interest Rate Determination Dates:

 

Index Maturity:

 

Spread (+/-):

 

Spread Multiplier:

 

	
  Maximum Interest Rate:

  	
   

  	
  o

  	
  Yes

  	
   

  	
  %

  	
   

  	
  o

  	
  No

  

 

	
  Minimum Interest Rate:

  	
   

  	
  o

  	
  Yes

  	
   

  	
  %

  	
   

  	
  o

  	
  No

  

 

Inverse Floating Rate Note o

 

Fixed Interest Rate:

 

Floating Rate/Fixed Rate Note o

 

Fixed Interest Rate:

 

Fixed Rate Commencement Date:

 

Calculation Agent: 
[The Bank of New York]

 

Exchange Rate Agent:

 

A-2-2

 

Computation of Interest (not applicable unless different than as
specified in the prospectus and prospectus supplement):

 

Day Count Convention (not applicable unless different than as specified
in the prospectus and prospectus supplement):

 

	
  Amortizing Note:

  	
   

  	
  o

  	
  Yes  (See
  Attached)

  	
   

  	
  o

  	
  No

  

 

	
  Optional Redemption:

  	
   

  	
  o

  	
  Yes

  	
  o

  	
  No

  	
   

  
	
   

  	
  Optional Redemption Dates:

  	
   

  	
   

  
	
   

  	
  Initial Redemption Percentage:

  	
   

  	
   

  
	
   

  	
  Annual Percentage Reduction (if any):

  	
   

  
	
   

  	
  Redemption:

  	
  o

  	
  In
  whole only and not in part

  	
   

  
	
   

  	
  o

  	
  May be in whole or in part

  	
   

  
											

 

	
  Optional Repayment:

  	
   

  	
  o

  	
  Yes

  	
   

  	
  o

  	
  No

  
	
   

  	
  Optional Repayment Dates:

  	
   

  	
   

  
	
   

  	
  Optional Repayment:

  	
   

  	
  o

  	
  In whole only and not in part

  
	
   

  	
   

  	
  o

  	
  May be in whole or in part

  

 

	
  Discount Note:

  	
   

  	
  o

  	
  Yes

  	
   

  	
  o

  	
  No

  
	
   

  	
  Total Amount of Discount:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Yield to Maturity:

  	
   

  	
   

  	
   

  	
   

  
												

 

	
  Sinking Fund 
  (not applicable unless specified):

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Amounts to be Paid for Withholding
  Tax  (not applicable unless specified):

  
	
   

  
	
  Securities Exchange Listing:

  	
  o

  	
  No

  	
  o

  	
  Yes, Name of Exchange:

  	
   

  
										

 

Authorized Denominations:  [$1,000]

 

CUSIP:

 

	
  Form of trust:

  	
   

  	
  o

  	
  Delaware statutory trust

  	
   

  	
  o

  	
  Delaware common law trust

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trust Expiration Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rating of Notes:

  	
   

  	
  S&P

  	
   

  	
   

  	
  Moody’s

  	
   

  	
   

  
																

 

	
  Dealer(s) Purchasing Notes as Principal:

  	
   

  	
  o

  	
  Yes

  	
   

  	
  o

  	
  No

  

 

If yes:

 

 

	
  Dealer(s)

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
   

  	
   

  

 

A-2-3

 

	
  Dealer(s) Acting as Agent:                

  	
   

  	
  o

  	
  Yes

  	
   

  	
  o

  	
  No

  

 

If yes:

 

 

	
  Dealer(s)

  	
   

  	
  Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
   

  	
   

  

 

2.             The
Funding Agreement(s)

 

Funding Agreement Issuer:  Protective Life Insurance Company

 

Funding Agreement No.:

 

Deposit Amount:

 

Issue Price:

 

Effective Date:

 

Stated Maturity Date:

 

Specified Currency:

 

Interest Payment Dates:

 

Initial Interest Payment Date:

 

	
  Type of Interest Rate:

  	
   

  	
  o

  	
  Fixed Rate

  	
   

  	
  o

  	
  Floating
  Rate

  

 

For Fixed Rate Funding Agreements:

 

Interest Rate:

 

For Floating Rate Funding Agreements:

 

Initial Interest Rate:

 

Initial Interest Reset Date:

 

Base Rate:

 

	
   

  	
  o

  	
  CD Rate

  	
   

  	
  o

  	
  Commercial Paper Rate

  
	
   

  	
  o

  	
  Constant Maturity Treasury Rate

  	
   

  	
  o

  	
  Federal Funds Rate

  
	
   

  	
  o

  	
  LIBOR

  	
   

  	
  o

  	
  Treasury Rate

  
	
   

  	
  o

  	
  Prime Rate

  	
   

  	
  o

  	
  Other (See Attached)

  

 

A-2-4

 

If LIBOR: o
LIBOR Reuters Page      o
LIBOR Telerate Page

 

Designated LIBOR Currency:

 

If Constant Maturity Treasury Rate:

 

Designated CMT Telerate Page: o
7051  o
7052

 

If 7052: o
Weekly Average   o
Monthly Average

 

Designated CMT Maturity Index:

 

Interest Reset Dates:

 

Interest Rate Determination Date:

 

Index Maturity:

 

Spread (+/-):

 

Spread Multiplier:

 

	
  Maximum Interest Rate:

  	
   

  	
  o

  	
  Yes

  	
   

  	
   

  	
  %

  	
  o

  	
   

  	
  No

  

 

	
  Minimum Interest Rate:

  	
   

  	
  o

  	
  Yes

  	
   

  	
   

  	
  %

  	
  o

  	
   

  	
  No

  

 

Inverse Floating Rate Funding Agreement o

 

Fixed Interest Rate:

 

Floating Rate/Fixed Rate Funding Agreement o

 

Fixed Interest Rate:

 

Fixed Rate Commencement Date:

 

Computation
of Interest (not applicable unless different than as specified in the
prospectus and prospectus supplement):

 

Day
Count Convention (not applicable unless different than as specified in the
prospectus and prospectus supplement):

 

Amortizing Funding Agreement:  o
Yes (See Attached)             o
No

 

Early Redemption:                o
Yes                    o
No

 

Early Redemption Dates:

 

Initial Redemption Percentage:

 

Annual Percentage Reduction (if any):

 

Redemption:          o
In whole only and not in part

 

o
May be in whole or in part

 

Repayment:   o
Yes                            o
No

 

Repayment Dates:

 

Repayment:           o
In whole only and not in part

 

o
May be in whole or in part

 

A-2-5

 

Discount Funding Agreement:   o  Yes   o  No

 

Total Amount of Discount:
                Yield to Maturity:

 

Additional Amounts to be Paid For Withholding Tax (not
applicable unless specified):

 

o
Yes                    o
No

 

	
  Rating of the Funding Agreement:

  	
   

  	
  S&P

  	
   

  	
   

  	
  Moody’s

  	
   

  	
   

  

 

Additional Terms:

 

	
  Special Tax Considerations:

  	
   

  	
   

  	
  ]

  

 

A-2-6Exhibit 10.1

AMENDMENT TO THE

1999 ALLIED FASHION, INC. STOCK OPTION PLAN

(AS PREVIOUSLY AMENDED AND RESTATED
EFFECTIVE 6-17-04)

THIS AMENDMENT (this “Amendment”) to the 1999
Allied Fashion, Inc. Stock Option Plan, as
previously amended and restated effective as of June 17, 2004 (the “Plan”), is
made this 15th day of August, 2006.

The Board of Directors of Citi Trends, Inc. (the
“Company”) has determined that it is in the best interests of the Company and
its stockholders to amend the Plan to permit the exercise price of stock
options granted under the Plan to be satisfied through net share settlements.

The Plan is hereby amended by
deleting the first paragraph of Section 11(d) of the Plan and replacing it with
the following:

“A holder may exercise an option by giving written
notice thereof prior to the option’s expiration date to the Secretary of the
Company at the principal executive offices of the Company, accompanied by the full purchase price for
the Shares.  A holder may pay the
purchase price in cash or cash equivalents by delivery of Shares, by a
combination of Shares and cash, or by such other means, including net
settlement arrangements, as may be approved by the Committee from time to
time.”

Except as expressly amended hereby, the terms of the
Plan, as previously amended, shall be and remain unchanged and the Plan as
amended hereby shall remain in full force and effect.

IN WITNESS WHEREOF, the Company has caused
this Amendment to be executed by its duly authorized representative on the day
and year first above written.

 

	
  

  	
   

  	
  CITI TRENDS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas W. Stoltz

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]