Exhibit 4.2


 


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 (HEREINAFTER DEFINED) 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.


 




	
  CUSIP No.:

  	
   

  	
  37248JBM3

  	
   

  	
  Principal
  Amount: U.S. $4,441,000.00

  
	
  ISIN No.:

  	
   

  	
  US37248JBM36

  	
   

  	
   

  






 


GENWORTH
GLOBAL FUNDING TRUST 2008-31

GENWORTH DIRECTNOTESSM


 


	
  Original Issue Date: June 19, 2008

  	
   

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

  
	
  Issue Price: 100.00%

  	
   

  	
  Floating Rate
  Notes o

  
	
  Stated Maturity Date: June 15, 2018

  	
   

  	
  Floating
  Rate/Fixed Rate Notes o

  
	
  Settlement Date: June 19, 2008

  	
   

  	
  Fixed
  Rate/Floating Rate Notes o

  
	
  Securities Exchange
  Listing: o
  Yes x No.  If yes,
  indicate name(s) of Securities Exchange(s):
                                                                      

  	
   

  	
  Inverse Floating
  Rate Notes o

  Interest Rate
  Basis(es):

  LIBOR o

  
	
  Depositary: The Depository Trust Company

  	
   

  	
  o
  LIBOR Reuters:

  
	
  Authorized Denominations: $1,000 and any integral
  multiple of $1,000 in excess thereof

  	
   

  	
  LIBOR Currency:

  CMT Rate o

  
	
  Collateral held in the
  Trust: Genworth Life and Annuity Insurance Company Funding Agreement
  No. GS-R6047, all proceeds of the Funding Agreement and all amounts and
  instruments on deposit from time to time in the related collection account
  and all books and records pertaining to the foregoing.

  Interest Rate or
  Formula:

  	
   

  	
  CD Rate o

  Commercial Paper Rateo

  Prime Rate o

  Treasury Rate o

  Index Maturity:

  Spread and/or
  Spread Multiplier:

  



 

















 


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

  	
   

  	
  Initial Interest Rate,
  if any:

  
	
  Interest Rate:
  6.15%

  	
   

  	
  Initial Interest Reset
  Date:

  
	
  Interest Payment
  Frequency: Semi-annual

  	
   

  	
  Interest Reset Dates:

  
	
  Interest Payment Dates:
  The 15th day of each June and December of each year, provided, however, that the first
  Interest Payment Date shall be December 15, 2008; provided, further, that the final
  Interest Payment Date shall be the Stated Maturity Date.

  Day Count Convention:
  As indicated on the reverse hereof.

  	
   

  	
  Interest  Determination Date(s):

  Interest Payment Dates:

  Maximum Interest Rate,
  if any:

  Minimum Interest Rate,
  if any:

  Fixed Rate Commencement
  Date, if any:

  Floating Rate
  Commencement Date, if any:

  Fixed Interest Rate, if
  any:

  
	
  Additional/Other
  Terms: Not applicable

  	
   

  	
  Day Count Convention:

  
	
  Discount Notes: o
  Yes x No.  If yes,

  	
   

  	
  Additional/Other Terms:

  
	
  Total Amount of
  Discount:

  	
   

  	
  Regular Record Date(s): 15 calendar days prior to
  the 

  
	
  Initial Accrual
  Period of Discount:

  	
   

  	
  Interest  Payment
  Date

  
	
  Interest Payment
  Dates:

  	
   

  	
  Sinking Fund: Not applicable

  
	
  Additional/Other
  Terms:

  	
   

  	
  Calculation Agent, if any: Not applicable

  
	
  Redemption Provisions: x
  Yes o No.  If yes,

  	
   

  	
  Additional/Other Terms: Not applicable

  
	
  Initial Redemption
  Date: June 15, 2010

  	
   

  	
  Survivor’s Option: x
  Yes o No.

  
	
  Initial Redemption
  Percentage: 100.00%

  	
   

  	
  If yes, the attached
  Survivor’s Option Rider is 

  
	
  Annual
  Redemption Percentage Reduction, if any: Not applicable

  	
   

  	
  incorporated into this
  Note.

  Trust Put Limitation:x 1%;
  or $            

  
	
  Additional/Other Terms:
  Notwithstanding anything to the contrary in Section 4 of the reverse
  hereof, notice of any such redemption will be given not more than
  seventy-five (75) and not less than thirty (30) calendar days prior to the
  date of such redemption.

  	
   

  	
   

  
	
  Repayment Provisions: o
  Yes x No.  If yes,

  	
   

  	
   

  
	
  Repayment
  Date(s):

  	
   

  	
   

  
	
  Repayment Price:

  	
   

  	
   

  
	
  Additional/Other
  Terms:

  	
   

  	
   

  



 


The Genworth Global
Funding Trust designated above (the “Trust”), for value received, hereby
promises to pay to Cede & Co., or its registered assigns, the
Principal Amount specified above on the Stated Maturity Date specified above
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.  Payments of principal, premium,
if any, and interest hereon will be made in the lawful currency of the United
States of America (“U.S. Dollars” or “United States Dollars”).  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 and (2) in
all other cases, the Principal Amount hereof. 
Capitalized terms not otherwise defined herein shall have their meanings
set forth in the Indenture, dated as of the Original Issue Date (the
“Indenture”), between The Bank of New York


 


2

















 


Trust Company, N.A., as the indenture trustee (the “Indenture Trustee”),
and the Trust, 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 by the Trust or
otherwise (the Stated Maturity Date or any date prior to the Stated Maturity
Date on which this Note becomes due and payable, as the case may be, is
referred to as the “Maturity Date”).


 


A “Discount Note” is any Note that has an Issue Price
that is less than 100% of the Principal 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.


 


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 be paid to the Person that was the Holder 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 Holder on such next succeeding Regular Record Date.


 


Payments of principal and premium, if any, and
interest and other amounts due and owing, if any, will be made through the
Indenture Trustee to the account of DTC or its nominee and will be made in
accordance with depositary arrangements with DTC.


 


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.  Any tax assessment or governmental charge
imposed upon payments hereunder, including, without limitation, any withholding
tax, will be borne by the Holder hereof.


 


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.


 


3

















 


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


 


 


	
   

  	
  THE GENWORTH
  GLOBAL FUNDING TRUST

  
	
   

  	
  SPECIFIED ON THE FACE
  OF THIS NOTE

  
	
   

  	
   

  
	
  Dated:  June 19, 2008

  	
  By: U.S. Bank National
  Association, not in its individual

  capacity but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Patricia M.
  Child

  
	
   

  	
    Authorized
  Officer

  
	
   

  	
   

  



 


CERTIFICATE OF AUTHENTICATION


 


This is one of the Notes of the Genworth Global
Funding Trust specified on the face of this Note referred to in the
within-mentioned Indenture.


 


 


	
   

  	
  THE BANK OF NEW YORK
  TRUST COMPANY, N.A., 

  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  June 19, 2008

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ R. Tarnas

  
	
   

  	
   

  	
    Authorized Signatory

  



 


4

















 


[REVERSE
FORM OF NOTE]


 


Section 1.  General.  This Note is one of a duly authorized issue
of Notes of the Trust.  The Notes are
issued pursuant to the Indenture.


 


Section 2.  Currency.  This Note is
denominated in, and payments of principal, premium, if any, and/or interest, if
any, will be made in U.S. Dollars.


 


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


 


(a)     Fixed
Rate Notes. If this Note is specified on the face hereof as a “Fixed Rate
Note”:


 


(i)          This
Note will bear interest at the rate per annum specified on the face
hereof.  Interest on this Note will be
computed on the basis of a 360-day year of twelve 30-day months.


 


(ii)         Unless
otherwise specified on the face hereof, the Interest Payment Dates for this
Note will be as follows:


 


	
  Interest Payment Frequency

  	
   

  	
  Interest Payment Dates

  
	
  Monthly

  	
   

  	
  Fifteenth day of each
  calendar month, beginning in the first calendar month following the month
  this Note was issued.

  
	
   

  	
   

  	
   

  
	
  Quarterly

  	
   

  	
  Fifteenth day of each
  March, June, September and December, beginning on the first such date
  following the date this Note was issued.

  
	
   

  	
   

  	
   

  
	
  Semi-annual

  	
   

  	
  Fifteenth day of the
  two months of each year specified on the face hereof, beginning on the first
  such date following the date this Note was issued.

  
	
   

  	
   

  	
   

  
	
  Annual

  	
   

  	
  Fifteenth day of the
  month of each year specified on the face hereof, beginning on the first such
  date following the date this Note was issued.

  



 


(iii)        Unless otherwise specified on the face hereof,
if any Interest Payment Date or the Maturity Date of this Note falls on a day
that is not a Business Day, the Trust will make the required payment of
principal, premium, if any, and/or interest or other amounts on the next
succeeding Business Day, and no additional interest will accrue in respect of
the payment made on that next succeeding Business Day.


 


(b)     Floating
Rate Notes. If this Note is specified on the face hereof as a “Floating
Rate Note”:


 


5

















 


(i)          Interest
Rate Basis. As specified on the face hereof, interest on this Note will be
determined by reference to the applicable Interest Rate Basis or Interest Rate
Bases, which may, as described below, include the CD Rate, the CMT Rate, the
Commercial Paper Rate, LIBOR, the Prime Rate or the Treasury Rate (each as
defined below).


 


(ii)         Effective
Rate. The rate derived from the applicable Interest Rate Basis or Interest
Rate Bases will be determined in accordance with the related provisions below.
The interest rate in effect on each day will be based on: (1) if that day
is an Interest Reset Date, the rate determined as of the Interest Determination
Date immediately preceding that Interest Reset Date; or (2) if that day is
not an Interest Reset Date, the rate determined as of the Interest
Determination Date immediately preceding the most recent Interest Reset Date.


 


(iii)        Spread; Spread Multiplier; Index Maturity.
The “Spread” is the number of basis points (one one-hundredth of a percentage
point) specified on the face hereof to be added to or subtracted from the
related Interest Rate Basis or Interest Rate Bases applicable to this Note. The
“Spread Multiplier” is the percentage specified on the face hereof of the
related Interest Rate Basis or Interest Rate Bases applicable to this Note by
which the Interest Rate Basis or Interest Rate Bases will be multiplied to
determine the applicable interest rate. The “Index Maturity” is the period to
maturity of the instrument or obligation with respect to which the related
Interest Rate Basis or Interest Rate Bases will be calculated.


 


(iv)        Floating
Rate Note. Unless this Note is specified on the face hereof as a Floating
Rate/Fixed Rate Note or a Fixed Rate/Floating Rate Note, this Note (a “Floating
Rate Note”) will bear interest at the rate determined by reference to the
applicable Interest Rate Basis or Interest Rate Bases: (1) plus or minus
the applicable Spread, if any; and/or (2) multiplied by the applicable
Spread Multiplier, if any; provided, however, that interest on this Note will not be less than
zero.  Commencing on the first Interest
Reset Date, the rate at which interest on this Floating Rate Note is payable
will be reset as of each Interest Reset Date; provided,
however, that the interest rate in effect for the period, if any,
from the Original Issue Date to the first Interest Reset Date will be the
Initial Interest Rate.


 


(v)         Floating
Rate/Fixed Rate Notes.  If this Note
is specified on the face hereof as a “Floating Rate/Fixed Rate Note”, this Note
will bear interest at the rate determined by reference to the applicable
Interest Rate Basis or Interest Rate Bases: (1) plus or minus the
applicable Spread, if any; and/or (2) multiplied by the applicable Spread
Multiplier, if any; provided, however, that interest on this Note will not be less than
zero.  Commencing on the first Interest
Reset Date, the rate at which this Floating Rate/Fixed Rate Note is payable
will be reset as of each Interest Reset Date; provided,
however, that: (A) the interest rate in effect for the period,
if any, from the Original Issue Date to the first Interest Reset Date will be
the Initial Interest Rate specified on the face hereof; and (B) the
interest rate in effect commencing on the Fixed Rate Commencement Date will be
the Fixed Interest Rate, if specified on the 


 


6

















 


face hereof, or, if not so specified, the interest
rate in effect on the day immediately preceding the Fixed Rate Commencement
Date.


 


(vi)        Fixed
Rate/Floating Rate Notes.  If this
Note is specified on the face hereof as a “Fixed Rate/Floating Rate Note”, this
Note will bear interest at the rate per annum specified on the face hereof as
the Fixed Interest Rate; provided, however,
that commencing on the Floating Rate Commencement Date, this Note will bear
interest at the rate determined by reference to the applicable Interest Rate
Basis or Interest Rate Bases: (1) plus or minus the applicable Spread, if
any; and/or (2) multiplied by the applicable Spread Multiplier, if any; provided, however, that
interest on this Note will not be less than zero.  Commencing on the first Interest Reset Date,
the rate at which this Fixed Rate/Floating Rate Note is payable will be reset
as of each Interest Reset Date.


 


(vii)       Interest Reset Dates.  The period between Interest Reset
Dates will be the “Interest Period.” Unless otherwise specified on the face
hereof, the Interest Reset Dates will be, in the case of this Floating Rate
Note  if by its terms it resets: (1) daily—each
business day; (2) weekly—the Wednesday of each week, with the exception of
any weekly reset Floating Rate Note as to which the Treasury Rate is an
applicable Interest Rate Basis, which will reset the Tuesday of each week; (3) monthly—the
fifteenth day of each calendar month; (4) quarterly—the fifteenth day of
March, June, September and December of each year; (5) semi-annually—the
fifteenth day of the two months of each year specified on the face hereof; and (6) annually—the
fifteenth day of the month of each year specified on the face hereof; provided, however, that, with respect to a Floating
Rate/Fixed Rate Note, the rate of interest thereon will not reset after the
particular Fixed Rate Commencement Date. 
If any Interest Reset Date for this Floating Rate Note would otherwise
be a day that is not a Business Day, the particular Interest Reset Date will be
postponed to the next succeeding Business Day, except that in the case of a
Floating Rate Note as to which LIBOR is an applicable Interest Rate Basis and
that Business Day falls in the next succeeding calendar month, the particular
Interest Reset Date will be the immediately preceding Business Day.


 


(viii)      Interest Determination Dates. Unless otherwise specified on the
face hereof, the interest rate applicable to a Floating Rate Note for an
Interest Period commencing on the related Interest Reset Date will be
determined by reference to the applicable Interest Rate Basis as of the
particular “Interest Determination Date”, which will be: (1) with respect
to the Commercial Paper Rate and the Prime Rate—the Business Day immediately
preceding the related Interest Reset Date; (2) with respect to the CD Rate
and the CMT Rate—the second Business Day preceding the related Interest Reset
Date; (3) with respect to LIBOR—the second London Banking Day (as defined
below) preceding the related Interest Reset Date; and (4) with respect to
the Treasury Rate—the day of the week in which the related Interest Reset Date
falls on which day Treasury Bills (as defined below) are normally auctioned
(i.e., Treasury Bills 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 the auction may be held on the preceding
Friday);


 


7

















 


provided, however, that if an
auction is held on the Friday of the week preceding the related Interest Reset
Date, the Interest Determination Date will be the preceding Friday.  Unless otherwise specified on the face
hereof, the Interest Determination Date pertaining to a Floating Rate Note, the
interest rate of which is determined with reference to two or more Interest
Rate Bases, will be the latest Business Day which is at least two Business Days
before the related Interest Reset Date for the applicable Floating Rate Note on
which each Interest Reset Basis is determinable. “London Banking Day” means a
day on which commercial banks are open for business (including dealings in the
LIBOR Currency as hereinafter defined) in London.


 


(ix)         Calculation
Dates.  The
interest rate applicable to each Interest Period will be determined by the
Calculation Agent on or prior to the Calculation Date (as defined below),
except with respect to LIBOR, which will be determined on the particular Interest
Determination Date. Upon request of the Holder of a Floating Rate Note, the
Calculation Agent will disclose the interest rate then in effect and, if
determined, the interest rate that will become effective as a result of a
determination made for the next succeeding Interest Reset Date with respect to
such Floating Rate Note. The “Calculation Date”, if applicable, pertaining to
any Interest Determination Date will be the earlier of: (1) the tenth
calendar day after the particular Interest Determination Date or, if such day
is not a Business Day, the next succeeding Business Day; or (2) the
Business Day immediately preceding the applicable Interest Payment Date or the
Maturity Date, as the case may be.


 


(x)          Maximum
or Minimum Interest Rate. If specified on the face hereof, this Note may
have either or both of a Maximum Interest Rate or a 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 Interest Reset Date shall be the
Maximum Interest Rate.  If a Minimum
Interest Rate is so designated, the interest rate for a Floating Rate Note
cannot ever be less than such Minimum Interest Rate and in the event that the
interest rate on any Interest Reset Date would be less than such Minimum
Interest Rate (as if no Minimum Interest Rate were in effect) then the interest
rate on such Interest 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.


 


(xi)         Interest
Payments.  Unless otherwise specified on the
face hereof, the Interest Payment Dates will be, in the case of a Floating Rate
Note which resets: (1) daily, weekly or monthly—the fifteenth day of each
calendar month; (2) quarterly—the fifteenth day of March, June, September and
December of each year; (3) semi-annually—the fifteenth day of the two
months of each year specified on the face hereof; and (4) annually—the
fifteenth day of the month of each year as specified on the face hereof.  In addition, the Maturity Date will also be
an Interest Payment Date.  If any
Interest Payment Date other than the Maturity Date for this Floating Rate Note would
otherwise be a day that is not a Business Day, such Interest Payment Date will 


 


8

















 


be postponed to the next succeeding Business Day,
except that in the case of a Floating Rate Note as to which LIBOR is an
applicable Interest Rate Basis and that Business Day falls in the next succeeding
calendar month, the particular Interest Payment Date will be the immediately
preceding Business Day. If the Maturity Date of a Floating Rate Note falls on a
day that is not a Business Day, the Trust will make the required payment of
principal, premium, if any, and interest, if any, or other amounts on the next
succeeding Business Day, and no additional interest will accrue in respect of
the payment made on that next succeeding Business Day.


 


(xii)        Rounding. Unless otherwise specified on
the face hereof, all percentages resulting from any calculation on this
Floating Rate Note will be rounded to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded
upwards. All dollar amounts used in or resulting from any calculation on this
Floating Rate Note will be rounded to the nearest cent.


 


(xiii)       Interest Factor. With respect to this
Floating Rate Note, accrued interest is calculated by multiplying the principal
amount of such Note by an accrued interest factor. The accrued interest factor
is computed by adding the interest factor calculated for each day in the
particular Interest Period. Unless otherwise specified on the face hereof, the
interest factor for each day will be computed by dividing the interest rate
applicable to such day by 360, in the case of a Floating Rate Note as to which
the CD Rate, the Commercial Paper Rate, LIBOR or the Prime Rate is an
applicable Interest Rate Basis, or by the actual number of days in the year, in
the case of a Floating Rate Note as to which the CMT Rate or the Treasury Rate
is an applicable Interest Rate Basis. The interest factor for a Floating Rate
Note as to which the interest rate is calculated with reference to two or more
Interest Rate Bases will be calculated in each period in the same manner as if
only the applicable Interest Rate Basis specified above applied.


 


(xiv)      Determination of Interest Rate Basis. The
Calculation Agent shall determine the rate derived from each Interest Rate
Basis in accordance with the following provisions:


 


(A)  CD Rate Notes.  If the Interest Rate Basis is the CD Rate,
this Note shall be deemed a “CD Rate Note.” 
Unless otherwise specified on the face hereof, “CD Rate” means: (1) the
rate on the particular Interest Determination Date for negotiable United States
Dollar certificates of deposit having the Index Maturity specified on the face
hereof as published in H.15(519) (as defined below) under the caption “CDs
(secondary market)”; or (2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on the particular Interest Determination Date for
negotiable United States Dollar certificates of deposit of the particular Index
Maturity as published in H.15 Daily Update (as defined below), or other
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “CDs (secondary market)”; or (3) if the rate
referred to in clause (2) is not so published by 3:00 P.M., New York
City time, on the related Calculation Date, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as 


 


9

















 


the arithmetic mean of the secondary market offered
rates as of 10:00 A.M., New York City time, on that Interest Determination
Date, of three leading non-bank dealers in negotiable United States Dollar
certificates of deposit in New York City (which may include the purchasing
agent or its affiliates) selected by the Calculation Agent for negotiable
United States Dollar certificates of deposit of major United States money
market banks for negotiable United States certificates of deposit with a
remaining maturity closest to the particular Index Maturity in an amount that is
representative for a single transaction in that market at that time; or (4) if
the dealers so selected by the Calculation Agent are not quoting as mentioned
in clause (3), the CD Rate in effect on the particular Interest Determination
Date. “H.15(519)” means the weekly statistical
release designated as H.15(519), or any successor publication, published by the
Board of Governors of the Federal Reserve System. “H.15 Daily Update” means the
daily update of H.15(519), available through the world-wide-web site 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)  CMT Rate Notes.  If the Interest Rate Basis is the CMT Rate,
this Note shall be deemed a “CMT Rate Note.” 
Unless otherwise specified on the face hereof, “CMT Rate” means:


 


(1) if CMT Moneyline Telerate Page 7051 is
specified on the face hereof:


 


	
  i.

  	
   

  	
  the percentage
  equal to the yield for United States Treasury securities at “constant
  maturity” having the Index Maturity specified on the face hereof as published
  in H.15(519) under the caption “Treasury Constant Maturities”, as the yield
  is displayed on Moneyline Telerate (or any successor service) on
  page 7051 (or any other page as may replace the specified page on
  that service) (“Moneyline Telerate Page 7051”), for the particular
  Interest Determination Date; or

  
	
   

  	
   

  	
   

  
	
  ii.

  	
   

  	
  if the rate
  referred to in clause (i) does not so appear on Moneyline Telerate
  Page 7051, the percentage equal to the yield for United States Treasury
  securities at “constant maturity” having the particular Index Maturity and
  for the particular Interest Determination Date as published in H.15(519)
  under the caption “Treasury Constant Maturities”; or

  
	
   

  	
   

  	
   

  
	
  iii.

  	
   

  	
  if the rate
  referred to in clause (ii) does not so appear in H.15(519), the rate on
  the particular Interest Determination Date for the period of the particular
  Index Maturity as may then be published by either the Federal Reserve System
  Board of Governors or the United States Department of the Treasury that the
  Calculation Agent determines to be comparable to the rate which would
  otherwise have been published in H.15(519); or

  



 


10
















 


iv.                if
the rate referred to in clause (iii) is not so published, the rate on the
particular Interest Determination Date calculated by the Calculation Agent as a
yield to maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three leading primary United States government securities
dealers in New York City (which may include the purchasing agent or its
affiliates) (each, a “Reference Dealer”) selected by the Calculation Agent from
five Reference Dealers selected by the Calculation Agent and eliminating the
highest quotation, or, in the event of equality, one of the highest, and the
lowest quotation or, in the event of equality, one of the lowest, for United
States Treasury securities with an original maturity equal to the particular
Index Maturity, a remaining term to maturity no more than one year shorter than
that Index Maturity and in a principal amount that is representative for a
single transaction in the securities in that market at that time; or


 


v.                   if
fewer than five but more than two of the prices referred to in clause (iv) are
provided as requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the quotations shall
be eliminated; or


 


vi.                if
fewer than three prices referred to in clause (iv) are provided as
requested, the rate on the particular Interest Determination Date calculated by
the Calculation Agent as a yield to maturity based on the arithmetic mean of
the secondary market bid prices as of approximately 3:30 P.M., New York
City time, on that Interest Determination Date of three Reference Dealers selected
by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation or, in the event of
equality, one of the highest and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an
original maturity greater than the particular Index Maturity, a remaining term
to maturity closest to that Index Maturity and in a principal amount that is
representative for a single transaction in the securities in that market at
that time; or


 


vii.             if
fewer than five but more than two prices referred to in clause (vi) are
provided as requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the quotations will
be eliminated; or


 


11

















 


viii.   if
fewer than three prices referred to in clause (vi) are provided as
requested, the CMT Rate in effect on the particular Interest Determination
Date; or


 


(2) if CMT Moneyline Telerate Page 7052 is
specified on the face hereof:


 


i.                       the
percentage equal to the one-week or one-month, as specified on the face hereof,
average yield for United States Treasury securities at “constant maturity”
having the Index Maturity specified on the face hereof as published in
H.15(519) opposite the caption “Treasury Constant Maturities”, as the yield is
displayed on Moneyline Telerate (or any successor service) (on page 7052
or any other page as may replace the specified page on that service)
(“Moneyline Telerate Page 7052”), for the week or month, as applicable,
ended immediately preceding the week or month, as applicable, in which the
particular Interest Determination Date falls; or


 


ii.                    if
the rate referred to in clause (i) does not so appear on Moneyline
Telerate Page 7052, the percentage equal to the one-week or one-month, as
specified on the face hereof, average yield for United States Treasury
securities at “constant maturity” having the particular Index Maturity and for
the week or month, as applicable, preceding the particular Interest
Determination Date as published in H.15(519) opposite the caption “Treasury
Constant Maturities”; or


 


iii.                 if
the rate referred to in clause (ii) does not so appear in H.15(519), the
one-week or one-month, as specified on the face hereof, average yield for
United States Treasury securities at “constant maturity” having the particular
Index Maturity as otherwise announced by the Federal Reserve Bank of New York
for the week or month, as applicable, ended immediately preceding the week or
month, as applicable, in which the particular Interest Determination Date
falls; or


 


iv.                if
the rate referred to in clause (iii) is not so published, the rate on the
particular Interest Determination Date calculated by the Calculation Agent as a
yield to maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 P.M., New York City time, on that Interest Determination
Date of three Reference Dealers selected by the Calculation Agent from five
Reference Dealers selected by the Calculation Agent and eliminating the highest
quotation, or, in the event of equality, one of the highest, and the lowest
quotation or, in the event of equality, one of the lowest, for United States
Treasury securities with an original maturity equal to the particular Index
Maturity, a 


 


12

















 


remaining term to
maturity no more than one year shorter than that Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time; or


 


v.                   if
fewer than five but more than two of the prices referred to in clause (iv) are
provided as requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the quotations shall
be eliminated; or


 


vi.                if
fewer than three prices referred to in clause (iv) are provided as
requested, the rate on the particular Interest Determination Date calculated by
the Calculation Agent as a yield to maturity based on the arithmetic mean of
the secondary market bid prices as of approximately 3:30 P.M., New York
City time, on that Interest Determination Date of three Reference Dealers
selected by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation or, in the event of
equality, one of the highest and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an
original maturity greater than the particular Index Maturity, a remaining term
to maturity closest to that Index Maturity and in a principal amount that is
representative for a single transaction in the securities in that market at the
time; or


 


vii.             if
fewer than five but more than two prices referred to in clause (vi) are
provided as requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the quotations will
be eliminated; or


 


viii.          if fewer than three prices referred to in
clause (vi) are provided as requested, the CMT Rate in effect on that
Interest Determination Date.


 


If two United States Treasury securities with an
original maturity greater than the Index Maturity specified on the face hereof
have remaining terms to maturity equally close to the particular Index
Maturity, the quotes for the United States Treasury security with the shorter
original remaining term to maturity will be used.


 


(C)  Commercial Paper Rate Notes.  If the Interest Rate Basis is the Commercial
Paper Rate, this Note shall be deemed a “Commercial Paper Rate Note.”  Unless otherwise specified on the face
hereof, “Commercial Paper Rate” means:  (1) the



 


13

















 


Money Market Yield (as defined below) on the
particular Interest Determination Date of the rate for commercial paper having
the Index Maturity specified on the face hereof as published in H.15(519) under
the caption “Commercial Paper—Nonfinancial”; or (2) if the rate referred
to in clause (1) is not so published by 3:00 P.M., New York City
time, on the related Calculation Date, the Money Market Yield of the rate on
the particular Interest Determination Date for commercial paper having the
particular Index Maturity as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “Commercial Paper—Nonfinancial”; or (3) if the
rate referred to in clause (2) is not so published by 3:00 P.M., New
York City time, on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the Money
Market Yield of the arithmetic mean of the offered rates at approximately 11:00 A.M.,
New York City time, on that Interest Determination Date of three leading
dealers of United States Dollar commercial paper in New York City (which may
include the purchasing agent or its affiliates) selected by the Calculation
Agent for commercial paper having the particular Index Maturity placed for
industrial issuers whose bond rating is “Aa”, or the equivalent, from a
nationally recognized statistical rating organization; or (4) if the
dealers so selected by the Calculation Agent are not quoting as mentioned in
clause (3), the Commercial Paper Rate in effect on the particular Interest
Determination Date. “Money Market Yield” means a yield (expressed as a
percentage) calculated in accordance with the following formula:


 


	
  Money Market
  Yield =

  	
  D x 360

  	
    x
  100

  
	
   

  	
  360 – (D x M)

  	
   

  



 


where “D” refers to the applicable 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 Interest Period.


 


(D)  LIBOR Notes.  If the Interest Rate Basis is LIBOR, this Note
shall be deemed a “LIBOR Note.”  Unless
otherwise specified on the face hereof, “LIBOR” means: (1) if “LIBOR
Moneyline Telerate” is specified on the face hereof or if neither “LIBOR
Reuters” nor “LIBOR Moneyline Telerate” is specified on the face hereof as the
method for calculating LIBOR, the rate for deposits in the LIBOR Currency
having the Index Maturity specified on the face hereof, commencing on the
related Interest Reset Date, that appears on the LIBOR Page (as defined
below) as of 11:00 A.M., London time, on the particular Interest
Determination Date; or (2) if “LIBOR Reuters” is specified on the face
hereof, the arithmetic mean of the offered rates, calculated by the Calculation
Agent, or the offered rate, if the LIBOR Page by its terms provides only
for a single rate, for deposits in the LIBOR Currency having the particular
Index Maturity, commencing on the related Interest Reset Date, that appear or
appears, as the case may be, on the LIBOR Page as of 11:00 A.M.,
London time, on the particular Interest Determination Date; or (3) if
fewer than two offered rates appear, or no rate appears, as the case may be, on
the particular Interest 


 


14

















 


Determination Date on the LIBOR Page as specified
in clause (1) or (2), as applicable, the rate calculated by the
Calculation Agent of at least two offered quotations obtained by the
Calculation Agent after requesting the principal London offices of each of four
major reference banks (which may include affiliates of the purchasing agent) in
the London interbank market to provide the Calculation Agent with its offered
quotation for deposits in the LIBOR Currency for the period of the particular
Index Maturity, commencing on the related Interest Reset Date, to prime banks
in the London interbank market at approximately 11:00 A.M., London time,
on that Interest Determination Date and in a principal amount that is
representative for a single transaction in the LIBOR Currency in that market at
that time; or (4) if fewer than two offered quotations referred to in
clause (3) are provided as requested, the rate calculated by the
Calculation Agent as the arithmetic mean of the rates quoted at approximately
11:00 A.M., in the applicable Principal Financial Center, on the particular
Interest Determination Date by three major banks (which may include affiliates
of the purchasing agent) in that Principal Financial Center selected by the
Calculation Agent for loans in the LIBOR Currency to leading European banks,
having the particular Index Maturity and in a principal amount that is
representative for a single transaction in the LIBOR Currency in that market at
that time; or (5) if the banks so selected by the Calculation Agent are
not quoting as mentioned in clause (4), LIBOR in effect on the particular
Interest Determination Date. “LIBOR Currency” means the currency specified on
the face hereof as to which LIBOR shall be calculated or, if no currency is
specified on the face hereof, United States Dollars. “LIBOR Page” means either:
(1) if “LIBOR Reuters” is specified on the face hereof, the display on the
Reuter Monitor Money Rates Service (or any successor service) on the page specified
on the face hereof (or any other page as may replace that page on
that service) for the purpose of displaying the London interbank rates of major
banks for the LIBOR Currency; or (2) if “LIBOR Moneyline Telerate” is
specified on the face hereof or neither “LIBOR Reuters” nor “LIBOR Moneyline
Telerate” is specified on the face hereof as the method for calculating LIBOR,
the display on Moneyline Telerate (or any successor service) on the page specified
on the face hereof (or any other page as may replace such page on
such service) for the purpose of displaying the London interbank rates of major
banks for the LIBOR Currency.


 


(E)  Prime Rate Notes.  If the Interest Rate Basis is the Prime Rate,
this Note shall be deemed a “Prime Rate Note.” 
Unless otherwise specified on the face hereof, “Prime Rate” means:  (1) the rate on the particular Interest
Determination Date as published in H.15(519) under the caption “Bank Prime Loan”;
or (2) if the rate referred to in clause (1) is not so published by
3:00 P.M., New York City time, on the related Calculation Date, the rate
on the particular Interest Determination Date as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “Bank Prime Loan”; or (3) if
the rate referred to in clause (2) is not so published by 3:00 P.M., New
York City time, on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the
arithmetic mean of the rates of interest publicly announced by each bank that 


 


15

















 


appears on the Reuters Screen US PRIME 1 Page (as
defined below) as the applicable bank’s prime rate or base lending rate as of
11:00 A.M., New York City time, on that Interest Determination Date; or (4) if
fewer than four rates referred to in clause (3) are so published by 3:00 p.m.,
New York City time, on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the
arithmetic mean of the prime rates or base lending rates quoted 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 that Interest Determination Date by three major banks (which may
include affiliates of the purchasing agent) in New York City selected by the
Calculation Agent; or (5) if the banks so selected by the Calculation
Agent are not quoting as mentioned in clause (4), the Prime Rate in effect on
the particular Interest Determination Date. “Reuters Screen US PRIME 1 Page”
means the display on the Reuter Monitor Money Rates Service (or any successor
service) on the “US PRIME 1” page (or any other page as may replace
that page on that service) for the purpose of displaying prime rates or
base lending rates of major United States banks.


 


(F)  Treasury Rate Notes.  If the Interest Rate Basis is the Treasury
Rate, this Note shall be deemed a “Treasury Rate Note.”  Unless otherwise specified on the face
hereof, “Treasury Rate” means: (1) the rate from the auction held on the
Interest Determination Date (the “Auction”) of direct obligations of the United
States (“Treasury Bills”) having the Index Maturity specified on the face
hereof under the caption “INVESTMENT RATE” on the display on Moneyline Telerate
(or any successor service) on page 56 (or any other page as may
replace that page on that service) (“Moneyline Telerate Page 56”) or page 57
(or any other page as may replace that page on that service) (“Moneyline
Telerate Page 57”); or (2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for
the applicable Treasury Bills as published in H.15 Daily Update, or another
recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “U.S. Government Securities/Treasury Bills/Auction High”;
or (3) if the rate referred to in clause (2) is not so published by
3:00 P.M., New York City time, on the related Calculation Date, the Bond
Equivalent Yield of the auction rate of the applicable Treasury Bills as
announced by the United States Department of the Treasury; or (4) if the
rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the Auction is not held, the Bond Equivalent
Yield of the rate on the particular Interest Determination Date of the
applicable Treasury Bills as published in H.15(519) under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”; or (5) if the rate
referred to in clause (4) is not so published by 3:00 P.M., New York
City time, on the related Calculation Date, the rate on the particular Interest
Determination Date of the applicable Treasury Bills as published in H.15 Daily
Update, or another recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”; or (6) if the rate referred
to in clause (5) is not so published by 3:00 P.M., New York City
time, on the related Calculation Date, the rate on the 


 


16

















 


particular Interest Determination Date calculated by
the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of
the secondary market bid rates, as of approximately 3:30 P.M., New York
City time, on that Interest Determination Date, of three primary United States
government securities dealers (which may include the purchasing agent or its
affiliates) selected by the Calculation Agent, for the issue of Treasury Bills
with a remaining maturity closest to the Index Maturity specified on the face
hereof; or (7) if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (6), the Treasury Rate in effect on the particular
Interest Determination Date. “Bond Equivalent Yield” means a yield (expressed
as a percentage) calculated in accordance with the following formula:


 


	
  Bond Equivalent
  Yield =

  	
  D x N

  	
    x
  100

  
	
   

  	
  360 – (D x M)

  	
   

  



 


where “D”
refers to the applicable per annum rate for Treasury Bills quoted on a bank
discount basis and expressed as a decimal, “N” refers to 365 or 366, as the
case may be, and “M” refers to the actual number of days in the applicable
Interest Period.


 


(c)                Discount
Notes.  If this Note is specified on
the face hereof as a “Discount Note”:


 


(i)          Principal
and Interest. This Note will bear interest 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. 
Discount Notes may not bear any interest currently or may bear interest
at a rate that is below market rates at the time of issuance. The difference
between the Issue Price of a Discount Note and par is referred to as the “Discount”.


 


(ii)         Redemption; Repayment; Acceleration.
In the event a Discount Note is redeemed, repaid or accelerated, the amount
payable to the Holder of such Discount Note will be equal to the sum of: (A) the
Issue Price (increased by any accruals of Discount); and (B) any unpaid
interest accrued on such Discount Note to the Maturity Date (“Amortized Face
Amount”).  Unless otherwise specified on
the face hereof, for purposes of determining the amount of Discount that has
accrued as of any date on which a redemption, repayment or acceleration of
maturity occurs for a Discount Note, a Discount will be accrued using a
constant yield method. The constant yield 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 applicable Discount Note (with ratable accruals
within a compounding period), a coupon rate equal to the initial coupon rate
applicable to the applicable  Discount
Note and an assumption that the maturity of such  Discount Note will not be accelerated. If the
period from the date of issue to the first Interest Payment Date for a Discount
Note (the “Initial Period”) is shorter than the compounding period for such
Discount Note, 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 


 


17

















 


will
be divided into a regular compounding period and a short period with the short
period being treated as provided above.


 


Section 4.                        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 or in Section 10 hereof.  In the case of a Note that is not a Discount
Note, 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 Genworth Life and Annuity Insurance
Company (“GLAIC”) (each, a “Redemption Date”), in which case this Note must be
redeemed on such Redemption Date in whole or in part, as applicable, prior to
the Stated Maturity Date, in increments of $1,000 at the applicable Redemption
Price (as defined below), together with unpaid interest, if any,  accrued thereon to, but excluding,  the applicable Redemption Date.  “Redemption Price” shall mean 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 GLAIC by (B) the
outstanding principal amount of the Funding Agreement.  Notice must be given not more than
seventy-five (75) nor less than forty-five (45) 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.


 


Section 5.                        Sinking Funds. 
Unless specified on the face hereof, this Note will not be subject to,
or entitled to the benefit of, any sinking fund.


 


Section 6.                        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, if any, payable to the Repayment Date. 
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 not more than
sixty (60) nor less than thirty (30) days prior to a Repayment Date.  Exercise of such repayment option by the
Holder hereof shall be irrevocable.  In
the event of a repayment of this Note in part only, a new Note for the portion
hereof not repaid shall be issued in the name of the Holder hereof upon the
surrender hereof.


 


Section 7.                        Modifications and Waivers.  The
Indenture contains provisions permitting the Trust and the Indenture Trustee (1) at
any time and from time to time without notice to, or the consent of, the
Holders of any Notes issued under the Indenture to enter into one or more
supplemental indentures for certain enumerated purposes and (2) with the
consent of the Holders of a majority in aggregate principal amount of the
Outstanding Notes affected thereby, to enter into one or more 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 


 


18

















 


rights of Holders of Notes under the Indenture; provided, that, with respect to certain enumerated
provisions, no such supplemental indenture shall 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, and 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 9.                        Events of Default.  If an Event of Default with respect to this
Note shall occur and be continuing, the principal of, and all other amounts
payable on, 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.  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(c) hereof.


 


Section 10.                 Withholding;
No Additional Amounts; Tax Event and Redemption.  All amounts due on this Note will be made
without 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. The Trust will not pay any additional amounts to the Holder of this Note
in respect of such withholding or deduction, any such withholding or deduction
will not give rise to an event of default or any independent right or
obligation to redeem this Note and the Holder will be deemed for all purposes
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 this Note as equitably
determined by the Trust.


 


If (1) a Tax Event (defined below) as to the
Funding Agreement occurs and (2) GLAIC redeems the Funding Agreement in
whole, the Trust will redeem the Notes, subject to the terms and conditions of Section 2.04
of the Indenture, at a Redemption Price equal to the Outstanding principal
amount of the Notes together with unpaid interest accrued thereon to the
applicable redemption date.  “Tax Event”
means that GLAIC 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 thereof 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 effective date of the
Funding Agreement, 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
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.


 


19

















 


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


 


Section 12.                 Collateral.
The Collateral for this Note includes the Funding Agreement specified on the
face hereof.


 


Section 13.                 No Recourse  Against Certain Persons.  No recourse shall be had for the payment of
any principal, interest or any other sums at any time owing under the terms of
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 14.                 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 specified 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 and for all
other purposes, whether or not this Note shall be overdue, and 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.


 


(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 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 and 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, except in the limited circumstances provided
for in the Indenture.  The transfer or
exchange of Definitive 


 


20

















 


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 15.                 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 (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT AS REQUIRED BY MANDATORY
PROVISIONS OF LAW.


 


21
















 


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.

  
	
   

  	
   

  	
   

  
	
  Principal Amount to be
  repaid, if amount to be repaid is less than the Principal Amount of this Note
  (Principal 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:                                        

  
							






 


22

















 


SURVIVOR’S OPTION RIDER


 


(a)                Unless
this Note, on its face, has been declared due and payable prior to the Maturity
Date by reason of any Event of Default under the Indenture, or has been
previously redeemed or otherwise repaid, the authorized Representative (as
defined below) of a deceased Beneficial Owner (as defined below) of this Note
shall have the option to elect repayment by the Trust in whole or in part prior
to the Maturity Date following the death of the Beneficial Owner (a “Survivor’s
Option”).  The Survivor’s Option may not
be exercised unless this Note was held by the Beneficial Owner or the estate of
that Beneficial Owner for a period beginning at least 6 months immediately
prior to the death of such Beneficial Owner. “Beneficial Owner” as used in this
Survivor’s Option Rider means, with respect to this Note, the person who has
the right, immediately prior to such person’s death, to receive the proceeds
from the disposition of this Note, as well as the right to receive payments on
this Note.


 


(b)               Upon (1) the
valid exercise of the Survivor’s Option and the proper tender of this Note by
or on behalf of a person that has authority to act on behalf of the deceased
Beneficial Owner of this Note 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 (2) the tender and acceptance
of that portion of the Funding Agreement equal to the amount of the portion of
this Note to be repaid, the Trust shall repay this Note (or portion thereof) at
a price equal to 100% of the unpaid Principal Amount of the deceased Beneficial
Owner’s beneficial interest in this Note plus accrued and unpaid interest to,
but excluding, the date of such repayment. 
However, the Trust shall not be obligated to repay:


 


(i)  beneficial ownership interests in Notes
exceeding the greater of $1,000,000 or 1% (or such other amounts, as specified
in the Pricing Supplement) in aggregate principal amount for all notes then
outstanding under the Genworth DirectNotesSM program as of the end of the
most recent calendar year (the “Annual Put Limitation”);


 


(ii)  on behalf of an individual deceased
Beneficial Owner, any beneficial ownership interest in all notes issued under
the Genworth DirectNotesSM program that exceeds $250,000 (or such other amounts,
as specified in the Pricing Supplement) in any calendar year (the “Individual
Put Limitation”); or


 


(iii)  beneficial ownership interests in Notes
exceeding the amount specified on the face hereof and in the Pricing Supplement
(the “Trust Put Limitation”).


 


(c)     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 this Note, the Principal Amount remaining Outstanding after
repayment must be at least $1,000 (the minimum authorized denomination of the
Notes).


 


(d)     An
otherwise valid election to exercise the Survivor’s Option may not be
withdrawn.


 


23

















 


(e)     Election
to exercise the Survivor’s Option will be accepted in the order that elections
are received by the Indenture Trustee, except for any Notes (or portion
thereof) the acceptance of which would contravene (1) the Annual Put
Limitation, (2) the Individual Put Limitation or (3) the Trust Put
Limitation.  Any Note (or portion
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
Genworth DirectNotesSM
program that have been tendered pursuant to the valid exercise of the Survivor’s
Option during such year has exceeded the Annual Put Limitation, the Individual
Put Limitation or the Trust 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, shall be deemed to be tendered on the first day of the
following calendar year in the order all such notes (or portions thereof) were
originally tendered.  In the event that
this Note (or any portion hereof) tendered for repayment pursuant to valid
exercise of the Survivor’s Option is not accepted or is to be delayed, the
Indenture Trustee shall deliver a notice by first-class mail to the presenting
direct Participant that states the reason such Note (or portion thereof) has
not been accepted for payment or is to be delayed.


 


(f)      In order
to obtain repayment through exercise of the Survivor’s Option with respect to
this Note (or portion hereof), the Representative must provide the following
items to the broker or other entity through which the beneficial interest in
this Note is held by the deceased Beneficial Owner: (1) 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; (2) appropriate evidence satisfactory to the Indenture
Trustee that (i) the deceased was the Beneficial Owner of this Note at the
time of death and the interest in this Note was owned by the deceased
Beneficial Owner or his or her estate for a period beginning at least six
months immediately prior to the death of such Beneficial Owner, which evidence
may be in the form of a letter from the Representative, (ii) the death of
such Beneficial Owner has occurred, and the date of such death, and (iii) the
Representative has authority to act on behalf of the deceased Beneficial Owner;
(3) if the interest in this Note is held by a nominee of the deceased
Beneficial Owner, a certificate or letter satisfactory to the Indenture Trustee
from such nominee attesting to the deceased’s beneficial ownership of this
Note; (4) 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; (5) if applicable, a properly executed assignment or
endorsement; (6) tax waivers and such other instruments or documents that
the Indenture Trustee reasonably requires in order to establish the validity of
the beneficial ownership of this Note and the claimant’s entitlement to
payment; and (7) any additional information the Indenture Trustee
reasonably 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 this Note.  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 this
Note on behalf of the deceased Beneficial Owner, together with evidence
satisfactory to the Indenture Trustee from the broker or other entity stating
that it represents the deceased Beneficial Owner.  Such direct Participant shall then execute an
election form in the form attached hereto as Annex A and deliver such items to
the Indenture Trustee.  If the Indenture
Trustee determines that it has 


 


24

















 


received the requisite documentation and information
and all other conditions described herein are satisfied, the Indenture Trustee
shall make payment of the applicable amount to the direct Participant through
DTC. 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, regarding the eligibility or validity of
any exercise of the Survivor’s Option will be determined by the Indenture
Trustee, in its sole discretion, which determination shall be final and binding
on all parties; provided, however,
that any such determination is subject to the right of GLAIC to require
reasonable evidence that the exercise of the Survivor’s Option satisfied all of
the terms and conditions described in this Note and any restrictions contained
in the relevant Funding Agreement.  The
Indenture Trustee shall have no liability to any Person, including, without
limitation, the Trust, GLAIC, any Holder of this Note, any Beneficial Owner or
the deceased Beneficial Owner’s Representative, arising out of any
determination made by it relating to the eligibility or validity of any
exercise of the Survivor’s Option, unless occasioned by the Indenture Trustee’s
gross negligence or willful misconduct.


 


(g)     The death
of a person holding a beneficial interest in this 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
this Note, and the entire Principal Amount of this Note so held shall be
subject to repayment by the Trust upon request in accordance with the terms and
provisions hereof.  However, the death of
a person holding a beneficial interest in this 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 this Note.


 


(h)     The death
of a person who was a lifetime beneficiary of a trust holding a beneficial
interest in this Note will be treated as the death of the Beneficial Owner of
this Note to the extent of that person’s interest in the trust.  The death of a person who was a tenant by the
entirety or joint tenant in a tenancy which is the beneficiary of a trust
holding a beneficial interest in this Note will be treated as the death of the
Beneficial Owner of this Note.  The death
of an individual who was a tenant in common in a tenancy which is the
beneficiary of a trust holding a beneficial interest in this Note will be
treated as the death of the Beneficial Owner of this Note only with respect to
the deceased person’s beneficial interest in this Note, unless a husband and
wife are the tenants in common, in which case the death of either will be
treated as the death of the owner of this Note.


 


(i)      The
death of a person who, during his or her lifetime, was entitled to
substantially all of the beneficial ownership interests in this Note will be
deemed the death of the Beneficial Owner of this Note for purposes of the
Survivor’s Option, regardless of whether that Beneficial Owner was the
registered holder of this Note, if such beneficial ownership interest can be
established to the satisfaction of the Indenture Trustee.  A beneficial ownership interest will be
deemed to exist in typical cases of nominee ownership, such as ownership under
the Uniform Transfers of Gifts to Minors Act, community property or other joint
ownership arrangements between a husband and wife and lifetime custodial and
trust arrangements.


 


25

















 


ANNEX A


 


REPAYMENT ELECTION FORM


 


Genworth
Life and Annuity Insurance Company


 


Genworth
DirectNotesSM


 


CUSIP
Number           


 


To:  [Name of
Trust] (the “TRUST”)


 


The undersigned financial institution (the “FINANCIAL
INSTITUTION”) represents the following:


 


·                                          The
Financial Institution has received a request for repayment from the executor or
other authorized representative (the “AUTHORIZED REPRESENTATIVE”) of the
deceased beneficial owner listed below (the “DECEASED BENEFICIAL OWNER”) of
Genworth DirectNotesSM
(CUSIP No.                         )
(the “NOTES”).


 


·                                          At
the time of his or her death, the Deceased Beneficial Owner owned Notes in the
principal amount listed below.


 


·                                          The
Deceased Beneficial Owner or the estate of the Deceased Beneficial Owner owned
the Notes for a period beginning at least six (6) months immediately prior
to the request.


 


·                                          The
Financial Institution currently holds such notes as a direct or indirect
participant in The Depository Trust Company (the “DEPOSITARY”).


 


The Financial Institution agrees to the following
terms:


 


·                                          The
Financial Institution shall follow the instructions (the “INSTRUCTIONS”)
accompanying this Repayment Election Form (this “FORM”).


 


·                                          The
Financial Institution shall deliver to The Bank of New York Trust Company, N.A.
(the “INDENTURE TRUSTEE”) the originals of all records specified in the
Instructions supporting the above representations and all other related
documents received from any relevant broker or other entity, and shall retain
photocopies thereof, and shall make such photocopies available to U.S. Bank
National Association (the “TRUSTEE”) or the Trust for inspection and review
within five business days of the Trustee’s or the Trust’s request.


 


·                                          If
the Financial Institution, the Indenture Trustee, the Trustee or the Trust, in
any such party’s reasonable discretion, deems any of the records specified in
the Instructions supporting the above representations or any such other related
documents unsatisfactory to substantiate a claim for repayment, the Financial 


 


26

















 


Institution shall
not be obligated to submit this Form, and the Indenture Trustee, the Trustee or
Trust may deny repayment.  If the Financial
Institution cannot substantiate a claim for repayment, it shall notify the
Indenture Trustee immediately.


 


·                                          Repayment
elections may not be withdrawn.


 


·                                          The
Financial Institution agrees to indemnify and hold harmless the Trustee, the
Trust and the Indenture Trustee against and from any and all claims,
liabilities, costs, losses, expenses, suits and damages resulting from the
Financial Institution’s above representations and request for repayment on
behalf of the Authorized Representative.


 


·                                          The
Notes will be repaid on the first interest payment date to occur at least 20
calendar days after the date of acceptance of the notes for repayment, unless
such date is not a business day, in which case the date of repayment shall be
the next succeeding business day.


 


·                                          Subject to
the Trust’s rights 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, all questions as to the eligibility
or validity of any exercise of the survivor’s option will be determined by the
Indenture Trustee, in its sole discretion, which determination shall be final
and binding on all parties.


 


27

















 


	
  REPAYMENT
  ELECTION FORM

  
	
  (1)

  
	
  Name of Deceased Beneficial Owner

  
	
  (2)

  
	
  Date of Death

  
	
  (3)

  
	
  Date of Purchase

  
	
  (4)

  
	
  Name of Authorized Representative Requesting Repayment

  
	
  (5)

  
	
  Name of Financial Institution Requesting Repayment

  
	
  (6)

  
	
  Signature of Authorized Representative of Financial Institution
  Requesting Repayment

  
	
  (7)

  
	
  Principal Amount of Requested Repayment

  
	
  (8)

  
	
  Date of Election

  



 


	
  (9)

  	
   

  	
  Financial
  Institution:

  	
  (10)

  	
   

  	
  Wire
  instructions for payment:

  
	
   

  	
   

  	
  Representative
  Name:

  	
   

  	
   

  	
  Bank
  Name:

  
	
   

  	
   

  	
  Phone
  Number:

  	
   

  	
   

  	
  ABA
  Number:

  
	
   

  	
   

  	
  Fax
  Number:

  	
   

  	
   

  	
  Account
  Name:

  
	
   

  	
   

  	
  Mailing
  Address (no P.O. Boxes):

  	
   

  	
   

  	
  Account
  Number:

  
	
   

  	
   

  	
  Reference
  (optional):

  	
   

  	
   

  	
   

  



 


	
  TO BE COMPLETED BY THE
  INDENTURE TRUSTEE

  
	
   

  
	
  (A)Delivery and Payment
  Date:

  
	
   

  
	
  (B)Principal Amount:

  
	
   

  
	
  (C)Accrued Interest:

  
	
   

  
	
  (D)Date of Receipt of
  Form by the Indenture Trustee:

  



 


28

















 


INSTRUCTIONS FOR COMPLETING
REPAYMENT ELECTION FORM AND 

EXERCISING

REPAYMENT OPTION


 


Capitalized terms used and
not defined herein have the meanings defined in the accompanying Repayment
Election Form.


 


1.               Collect and retain
for a period of at least three years (1) satisfactory evidence of the
authority of the Authorized Representative, (2) satisfactory evidence of
death of the Deceased Beneficial Owner, (3) satisfactory evidence that the
Deceased Beneficial Owner beneficially owned, at the time of his or her death,
the notes being submitted for repayment, which evidence may be in the form of a
letter from the Authorized Representative, (4) satisfactory evidence that
the notes being submitted for repayment were acquired by the Deceased
Beneficial Owner or the estate of the Deceased Beneficial Owner for a period
beginning at least six months immediately prior to the request, which evidence
may be in the form of a letter from the Authorized Representative and (5) any
necessary tax waivers.  For purposes of
determining whether the notes will be deemed beneficially owned by an individual
at any given time, the following rules shall apply:


 


·                  If
a note (or a portion thereof) is beneficially owned by tenants by the entirety
or joint tenants, the note (or relevant portion thereof) will be regarded as
beneficially owned by a single owner. 
Accordingly, the death of a tenant by the entirety or joint tenant will
be deemed the death of the beneficial owner and the entire principal amount so
owned will become eligible for repayment.


 


·                  The
death of a person beneficially owning a note (or a portion thereof) by tenancy
in common will be deemed the death of the beneficial owner only with respect to
the deceased owner’s interest in the note (or relevant portion thereof) so
owned, unless a husband and wife are the tenants in common, in which case the
death of either will be deemed the death of the beneficial owner and the entire
principal amount so owned will be eligible for repayment.


 


·                  A
note (or a portion thereof) beneficially owned by a trust will be regarded as
beneficially owned by each beneficiary of the trust to the extent of that
beneficiary’s interest in the trust (however, a trust’s beneficiaries
collectively cannot be beneficial owners of more notes than are owned by the
trust).  The death of a beneficiary of a
trust will be deemed the death of the beneficial owner of the notes (or
relevant portion thereof) beneficially owned by the trust to the extent of that
beneficiary’s interest in the trust.  The
death of an individual who was a tenant by the entirety or joint tenant in a
tenancy which is the beneficiary of a trust will be deemed the death of the
beneficiary of the trust.  The death of
an individual who was a tenant in common in a tenancy which is the beneficiary
of a trust will be deemed the death of the beneficiary of the trust only with
respect to the deceased holder’s beneficial interest in the note, unless a
husband and wife are the tenants in common, in which case the death of either
will be deemed the death of the beneficiary of the trust.


 


·                  The
death of a person who, during his or her lifetime, was entitled to
substantially all of the beneficial interest in a note (or a portion thereof)
will be deemed the death of the beneficial owner of that note (or relevant
portion thereof), regardless of the 


 


29

















 


registration
of ownership, if such beneficial interest can be established to the
satisfaction of the trustee.  Such
beneficial interest will exist in many cases of street name or nominee
ownership, custodial arrangements, ownership by a trustee, ownership under the
Uniform Transfers of Gifts to Minors Act and community property or other joint
ownership arrangements between spouses. 
Beneficial interest will be evidenced by such factors as the power to
sell or otherwise dispose of a note, the right to receive the proceeds of sale
or disposition and the right to receive interest and principal payments on a
note.


 


	
  2.

  	
   

  	
  Indicate the name of the Deceased Beneficial Owner on line (1).

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Indicate the date of death of the Deceased Beneficial Owner on line
  (2).

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Indicate the date of purchase on line (3).

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Indicate
  the name of the Authorized Representative requesting repayment on line (4).

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Indicate the name of the Financial Institution requesting repayment
  on line (5).

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Affix the authorized signature of the Financial Institution’s
  representative on line (6). THE SIGNATURE MUST BE MEDALLION SIGNATURE
  GUARANTEED.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Indicate the principal amount of notes to be repaid on line (7).

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Indicate the date this Form was completed on line (8).

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Indicate the name, mailing address (no P.O. boxes, please),
  telephone number and facsimile-transmission number of the Financial
  Institution.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Indicate the wire instruction for payment on line (10).

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Leave lines (A), (B), (C), (D) and (E) blank.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Mail or otherwise deliver an original copy of the completed
  Form to:

  



 


	
  By Registered Mail:

  	
   

  	
  By
  Courier or Overnight Delivery

  
	
  The Bank of New York Trust
  

  	
   

  	
  The
  Bank of New York Trust 

  
	
  Company, N.A.

  	
   

  	
  Company,
  N.A.

  
	
  Survivor Option Processing

  	
   

  	
  Survivor
  Option Processing

  
	
  P.O. Box 2320

  	
   

  	
  2001
  Bryan Street – 10th Floor

  
	
  Dallas, Texas 75221-2320

  	
   

  	
  Dallas,
  Texas 75201

  



 


	
  14.

  	
   

  	
  FACSIMILE TRANSMISSIONS OF THE REPAYMENT ELECTION FORM WILL NOT
  BE ACCEPTED.

  
	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  For
  assistance with this Form or any questions relating thereto, please
  contact the indenture trustee at: The Bank of New York Trust Company, N.A.,
  2001 Bryan Street – 10th Floor, Dallas, Texas 75201, attention:
  Survivor Option Processing, telephone number: 1-800-275-2048.

  



 


30