Document:

Exhibit 10.30

 

 

 

 

[               ]
2004

 

 

TRANSITIONAL
SERVICES AGREEMENT

 

 

between

 

FINANCIAL
INSURANCE GROUP SERVICES LIMITED

 

and

 

GE LIFE
SERVICES LIMITED

 

 

 

 

 

WEIL, GOTSHAL & MANGES

 

One South Place   London  
EC2M 2WG

Tel: +44 (0) 20 7903 1000   Fax: +44 (0)
20 7903 0990

www.weil.com

 

 

TABLE OF CONTENTS

 

	
  1

  	
  INTERPRETATION

  	
   

  
	
  2

  	
  THE
  SERVICES

  	
   

  
	
  3

  	
  CONVERSION SERVICES

  	
   

  
	
  4

  	
  OTHER ARRANGEMENTS/ADDITIONAL
  AGREEMENTS/CONSENTS

  	
   

  
	
  5

  	
  THE PROVIDER’S RESPONSIBILITIES

  	
   

  
	
  6

  	
  CHARGES

  	
   

  
	
  7

  	
  TERMS
  OF PAYMENT

  	
   

  
	
  8

  	
  COMPLIANCE WITH LAWS AND STANDARD FOR
  SERVICES

  	
   

  
	
  9

  	
  WARRANTIES

  	
   

  
	
  10

  	
  CONTRAT DE GROUPEMENT DE FAIT

  	
   

  
	
  11

  	
  RECORDS
  AND AUDIT

  	
   

  
	
  12

  	
  INTELLECTUAL PROPERTY

  	
   

  
	
  13

  	
  LIMITATION OF LIABILITY AND INDEMNITIES

  	
   

  
	
  14

  	
  CONDUCT
  OF CLAIMS

  	
   

  
	
  15

  	
  ASSIGNMENT AND SUB-CONTRACTING

  	
   

  
	
  16

  	
  CONFIDENTIALITY

  	
   

  
	
  17

  	
  TERMINATION

  	
   

  
	
  18

  	
  THE PROVIDER’S OBLIGATIONS ON TERMINATION

  	
   

  
	
  19

  	
  SURVIVAL OF OBLIGATIONS ON TERMINATION

  	
   

  
	
  20

  	
  FORCE MAJEURE/BUSINESS CONTINUITY

  	
   

  
	
  21

  	
  INCONSISTENCY/PREVAILING AGREEMENT

  	
   

  
	
  22

  	
  MASTER
  AGREEMENT

  	
   

  
	
  23

  	
  REGULATORY APPROVAL AND COMPLIANCE

  	
   

  
	
  24

  	
  SEVERABILITY

  	
   

  
	
  25

  	
  APPLICABLE LAW AND DISPUTE RESOLUTION

  	
   

  
	
  26

  	
  DATA
  PROTECTION

  	
   

  
	
  27

  	
  FURTHER ASSURANCE

  	
   

  
	
  28

  	
  WAIVER OF REMEDIES

  	
   

  
	
  29

  	
  NOTICES

  	
   

  
	
  30

  	
  NO
  PARTNERSHIP

  	
   

  
	
  31

  	
  ENTIRE
  AGREEMENT

  	
   

  
	
  32

  	
  RIGHTS OF THIRD PARTIES

  	
   

  
	
  33

  	
  COUNTERPARTS

  	
   

  
	
  SCHEDULE
  1 SERVICES

  	
   

  

 

 

THIS AGREEMENT is
made on [                ]
2004 between the following parties:

 

(1)                                 FINANCIAL
INSURANCE GROUP SERVICES LIMITED, a company incorporated in England and
Wales (registered number 1670707) whose registered office is at Vantage West,
Great West Road, Brentford, Middlesex, TW8 9AG (“FIGSL”); and

 

(2)                                 GE
LIFE SERVICES LIMITED, a company incorporated in England and Wales
(registered number 4330120) whose registered office is at The Priory, Hitchin,
Hertfordshire, SG5 2DW  (“GELS”).

 

WHEREAS:

 

(A)                               General
Electric Company (“GE”), General
Electric Capital Corporation, GEI, Inc., GE Financial Assurance Holdings, Inc.
(“GEFAHI”) and Genworth Financial,
Inc. (“Genworth”) have entered
into a Master Agreement of even date (the “Master
Agreement”).

 

(B)                               In
connection with the Master Agreement, GE, General Electric Capital Corporation,
GEI, Inc., GEFAHI, GNA Corporation, GE Asset Management Incorporated, General
Electric Mortgage Holdings LLC and Genworth have entered into a Transition
Services Agreement of even date (the “Global
Transition Services Agreement”) pursuant to which  (i) GE and its subsidiaries will provide or
cause to be provided certain administrative and support services and other
assistance to Genworth together with its subsidiaries, including GNA
Corporation, on a transitional basis and (ii) Genworth and its subsidiaries
will provide or cause to be provided certain administrative and support
services and other assistance to GE together with its subsidiaries, including
General Electric Capital Corporation, GEFAHI and GE Asset Management
Incorporated, on an transitional basis.

 

(C)                               Further
to and in connection with the Global Transition Services Agreement the parties
hereto are to provide transitional administrative and support services to each
other and its group companies on a reciprocal basis on the terms and conditions
of this Agreement.

 

(D)                               Certain
FIGSL Group Companies and GEIH Group Companies (both as defined below) which
are incorporated in France are parties to a Contrat de Groupement de Fait dated
20 November 1998 (the “Contrat de Groupement
de Fait”) pursuant to which they enjoy certain tax benefits.  The parties to the Contrat de Groupement de
Fait desire that, so far as is possible, such tax benefits shall continue to
apply and that equivalent tax benefits be obtained in respect of the Services
to be provided as between the parties to the Contrat Groupement de Fait
pursuant to this Agreement, subject to the terms and conditions of this Agreement.

 

IT IS AGREED
as follows:

 

1                                         INTERPRETATION

 

1.1                               As
used herein, the following terms shall have the following meanings, unless the
context otherwise requires:

 

1

 

 

                                                “Affiliate”
means in respect of any person, any direct or indirect subsidiary of such
person and any other person that directly, or though one or more
intermediaries, controls or is controlled by or is under common control with
such first person;

 

                                                “Agreement”
means this agreement, including the Clauses and the Schedule and all other
written schedules, annexes, attachments and amendments which are signed in
writing by all parties and which are made a part hereof in accordance with this
Agreement;

 

                                                “Closing
Date” means the date on which the underwriting agreements between
Genworth, GEFAHI and the managing underwriters in connection with the initial
public offering of common stock by GEFAHI of Genworth Common Stock and the
registered public offerings by GEFAHI of Genworth Series A Preferred Stock and Genworth
Equity Units are executed;

 

                                                “Commencement
Date” means the Closing  Date
save in respect of the French Services where it shall mean the French Scheme
Transfer Date;

 

                                                “Consents”
shall have the meaning given to it in Clause 4.5;

 

                                                “Consents
Costs” shall have the meaning given to it in Clause 4.5;

 

                                                “Continuing
Agreement” means any agreement, arrangement, commitment or
understanding that survives the Closing Date pursuant to Section 2.4(b) of the
Master Agreement;

 

                                                “Control” or “Controlled”
means, with respect to any Intellectual Property, the right
to grant a license or sublicense to such Intellectual Property as provided for
herein without (i) violating the terms of any agreement or other arrangement
with any third party, (ii) requiring any consent, approvals or waivers from any
third party, or any breach or default by the party being granted any such
license or sublicense being deemed a breach or default affecting the rights of
the party granting such license or sublicense or (iii) requiring the payment of
material compensation to any third party;

 

                                                “Conversion
Costs” shall have the meaning given to it in Clause 3.3;

 

                                                “Cross
License” means the Intellectual Property Cross License of even date
between GE and Genworth;

 

                                                “European
Tax Matters Agreement” means the European Tax Matters Agreement of
even date between, inter alia,
GE, Consolidated Insurance Holdings Limited, UK Group Holding Company Limited
and Genworth;

 

                                                “FACL”
means Financial Assurance Company Limited (registered number 1044679);

 

                                                “FIGSL
Group” means (i) FIGSL, CFI Administrators Limited, CFI Pension
Trustees Limited, Ennington Properties Limited, FIG Ireland Limited, Financial
Insurance Guernsey PCC Limited, Financial New Life Company Limited, GEFA UK
Finance Limited, GEFA UK Holdings Limited, Assocred S.A., RD Plus S.A. and UK
Group Holding Company Limited, (ii) with effect from the UK Transfer Date,
Financial Insurance Company Limited, Consolidated Insurance Group Limited, GE
Financial Assurance, Compania de Seguros y Reaseguros de Vida S.A. and GE 

 

2

 

 

                                                Financial Insurance, Compania de Seguros y
Reaseguros S.A., (iii) with effect from the date (if ever) that all the shares
in FACL are transferred to GEFA UK Holdings Limited, FACL, and (iv) any other
company that the parties shall agree from time to time shall be included within
this definition;

 

                                                “French
Services” means those GEIH Services set out in Part A of Schedule 1
to be provided to RD Plus S.A. and Assocred S.A. and those FIGSL Services set
out in Part B of Schedule 1 to be provided to Vie Plus S.A. and SCI Laborde, in
each case following the French Scheme Transfer Date;

 

                                                “French
Scheme Transfer Date” means the date on which the Minister of the
Economy, Finance and Industry for France grants an order approving the transfer
of Vie Plus S.A.’s payment protection insurance business to Financial New Life
Company Limited pursuant to the provisions of Article L.324-1 of the Insurance
Code;

 

                                                “FSA”
means the United Kingdom’s Financial Services Authority or its successors;

 

                                                “GEIH”
means GE Insurance Holdings
Limited (registered number 2221244);

 

                                                “GEIH
Group” means (i) GELS, GEIH, Consolidated Insurance Holdings
Limited, GE Asset Management Limited, GE Financial Asset Management Limited, GE
Life Equity Release Limited, GE Life Fund Management Limited, GE Life Group
Limited, GE Life Limited, GE Life Residential Limited, GE Life Trustees
Limited., GE Pensions Limited, GE Pensions Trustees Limited, Namulas Pension
Trustees Limited, National Mutual Life Assurance Society, National Mutual
Pension Trustees Limited, Vie Plus S.A., SCI Laborde and Three X Communication
Limited, (ii) until the UK Transfer Date, Financial Insurance Company Limited,
Consolidated Insurance Group Limited, GE Financial Assurance, Compania de
Seguros y Reaseguros de Vida S.A. and GE Financial Insurance, Compania de
Seguros y Reaseguros S.A., (iii) until such time (if ever) as all the shares in
FACL are transferred to GEFA UK Holdings Limited, FACL, and (iv) any other
company that the parties shall agree from time to time shall be included within
this definition;

 

                                                “Goods”
means any goods or materials which
are supplied by a Provider;

 

                                                “Group”
means, in relation to any party, its Group as defined hereunder;

 

                                                “Group Companies”
means in relation to any party, any member of that party’s Group and “Group Company” means any such company;

 

                                                “Improvement” means
any modification, derivative work or improvement of any Technology;

 

                                                “Information
Systems” means computing, telecommunications or other digital
operating or processing systems or environments, including, without limitation,
computer programs, data, databases, computers, computer libraries,
communications equipment, networks and systems.  When referenced in connection with Services, Information Systems
shall mean the Information Systems accessed and/or used in connection with the
Services;

 

3

 

                                                “Intellectual
Property” means all of the following, whether protected, created or
arising under the laws of England and Wales or any other foreign jurisdiction:
(i) patents, patent applications (along with all patents issuing thereon) and
statutory invention registrations, including divisions, continuations,
continuations-in-part, substitute application of the foregoing and any
extensions, reissues, restorations and re-examinations thereof, and all rights
therein provided by international treaties or conventions, (ii) copyrights,
mask work rights, design rights and database rights, whether or not registered,
published or unpublished, and registrations and applications for registration
thereof, and all rights therein whether provided by international treaties or
conventions or otherwise, (iii) trademarks, service marks, trade dress, logos
and other identifiers of source, including all goodwill associated therewith
and all common law rights, registrations and applications for registration
thereof, and all rights therein provided by international treaties or
conventions, and all reissues, extensions and renewals of any of the foregoing,
(iv) intellectual property rights arising from or in respect of domain names,
domain name registrations and reservations, (v) trade secrets, (vi)
intellectual property rights arising from or in respect of Technology, and
(vii) all other applications and registrations related to any of the
intellectual property rights set forth in the foregoing clauses (i) — (vi)
above;

 

                                                “negligence”
means negligence as defined in Section 1 of the Unfair Contract Terms Act 1977
being “the breach (a) of any obligation, arising from the express or implied
terms of a contract, to take reasonable care or exercise reasonable skill in
the performance of the contract; (b) of any common law duty to take reasonable
care or exercise reasonable skill (but not any stricter duty); or (c) of the
common duty of care imposed by the Occupiers’ Liability Act 1957 or the
Occupiers’ Liability Act (Northern Ireland) 1957”;

 

                                                “Provider”
means in relation to any Service, the party providing or causing the provision
of such Service under this Agreement;

 

                                                “Provider’s
Group” means in relation to a Provider, its Group as defined
hereunder;

 

                                                “Provider
Indemnified Party” shall have the meaning given to it in Clause
13.3;

 

                                                “Recipient”
means in relation to any Service, the party to whom such Service is being
provided under this Agreement;

 

                                                “Recipient’s Group”
means in relation to a Recipient, its Group as defined hereunder;

 

                                                “Recipient Group Companies”
means in relation to a Recipient, each of its Group Companies as defined
hereunder;

 

                                                “Recipient
Indemnified Party” shall have the meaning given to it in
Clause 13.2;

 

                                                “Representatives”
means in relation to a person, any director, officer, employee, agent,
consultant, sub-contractor, accountant, auditor, financing source, attorney,
investment banker or other representative of such person;

 

                                                “Service
Charges” means in relation to any Services, the charges to be paid
by the relevant Recipient to the relevant Provider pursuant to Clause 6.1 in
respect of the 

 

4

 

                                                Services provided by the relevant Provider
to the relevant Recipient and its Group. 
The charges for each Service or the basis for calculation thereof are
set out opposite that Service in column 2 of the relevant Part of Schedule 1;

 

                                                “Service
Termination Date” means, in relation to any Service, the date set
out opposite it in column 3 of Parts A and B of Schedule 1, or such earlier
date as provided hereunder;

 

                                                “Services”
means the FIGSL Services or the GEIH Services (each as defined in Clause 2.1)
as appropriate and “Service” means
any individual service to be provided as part of the Services;

 

                                                “Software”
means the object and source code versions of computer programs and any
associated documentation therefore.

 

                                                “Standard
for Services” shall have the meaning given to it in Clause 8;

 

                                                “subsidiary”
and “holding company” shall have
the meanings given to them respectively in Sections 736 and 736A of the
Companies Act 1985;

 

                                                “Technology”
means, collectively, all designs, formulas, algorithms, procedures, techniques,
ideas, know-how, software, programs, models, routines, confidential and
proprietary information, databases, tools, inventions, invention disclosures,
creations, improvements, works of authorship, and all recordings, graphs,
drawings, reports, analyses, other writings, and any other embodiment of the
above, in any form, whether or not specifically listed herein;

 

                                                “Term”
means the term of this Agreement;

 

                                                “Total
Consents Cost Amount” shall have the meaning given to it in Clause
4.5;

 

                                                “Total
Conversion Cost Amount” shall have the meaning given to it in Clause
3.3;

 

                                                “Transfer
Regulations” means the Transfer of Undertakings (Protection of
Employees) Regulations 1981;

 

                                                “Trigger
Date” means the first date after which GE no longer beneficially
owns more than fifty percent (50%) of the outstanding common stock of Genworth
(excluding for such purposes common stock of Genworth beneficially owned by GE
but not for its own account, including (in such exclusion) beneficial ownership
which arises by virtue of some entity that is an Affiliate of GE being a
sponsor of or advisor to of a mutual or similar fund that beneficially owns
common stock of Genworth. For the avoidance of doubt, a member of the Genworth
group is not an Affiliate of GE);

 

                                                “UK Scheme”
means the Scheme for the transfer of the insurance business of FACL to
Financial New Life Company Limited pursuant to Part VII of the Financial
Services and Markets Act 2000;

 

                                                “UK
Transfer Date” means the earlier of (i) the date on which the UK
Scheme becomes effective in accordance with its terms or (ii) the date on which
all of the shares of FACL are transferred to GEFA UK Holdings Limited; and

 

5

 

                                                “Virus”
means any computer instructions (i) that adversely affect the operation,
security or integrity of a computing telecommunications or other digital
operating or processing system or environment, including without limitation,
other programs, data, databases, computer libraries and computer and
communications equipment, by altering, destroying, disrupting or inhibiting
such operation, security or integrity; (ii) that without functional purpose,
self-replicate without manual intervention; or (iii) that purport to perform a
useful function but which actually perform either a destructive or harmful
function, or perform no useful function and utilize substantial computer,
telecommunications or memory resources.

 

1.2                               As
used herein unless the context otherwise requires the singular includes the
plural and vice versa and words importing the masculine gender shall include
the feminine.

 

1.3                               References
in this Agreement to any enactment, order, regulation or other similar
instrument shall be construed as a reference to the enactment, order,
regulation or instrument as amended by any subsequent enactment, order,
regulation or instrument or as contained in any subsequent re-enactment
thereof.

 

1.4                               References
in this Agreement to a party shall be construed as a reference to that party,
its successors and permitted assigns.

 

1.5                               The
Schedules form part of this Agreement.

 

1.6                               The
headings in this Agreement are for the convenience of the parties only and are
in no way intended to affect, describe, interpret, define or limit the scope,
extent, intent or interpretation of this Agreement or any provision of this
Agreement.

 

1.7                               References
in this Agreement to Clauses and the Schedule are to the clauses and schedule
of this Agreement.  In the event of any
conflict or inconsistency between any provision of the Clauses and any
provision of the Schedule, the former shall prevail, but only to the extent of
the conflict or inconsistency.  These
terms and conditions shall prevail over any terms and conditions of the
Providers now or in the future.

 

2                                         THE SERVICES

 

2.1                               From
the Commencement Date until the relevant Service Termination Date:

 

2.1.1                     GELS
shall provide, or cause to be provided, the services listed in Schedule 1, Part
A to the FIGSL Group (together with any additional services to be provided to
the FIGSL Group pursuant to Clause 2.8 and any GEIH Substitute Services, the “GEIH Services”); and

 

2.1.2                     FIGSL
shall provide, or cause to be provided, the services listed in Schedule 1, Part
B to the GEIH Group (together with any additional services to be provided to
the GEIH Group pursuant to Clause 2.8 and any FIGSL Substitute Services, the “FIGSL Services”).

 

2.2                               The
scope of each Service shall be substantially the same as the scope of such
service provided by the Provider, or, if applicable, its predecessor, prior to
the date hereof.  The use of each
Service by a Recipient Group Company shall include use by the Recipient Group
Company’s contractors in substantially the same manner as used by 

 

6

 

                                                the
contractors of that Recipient Group Company or its predecessor, if applicable,
prior to the Closing Date. Save as provided in Clause 15 (Assignment and Sub-contracting), nothing
in this Agreement shall require that any Service be provided other than for use
in, or in connection with, the Recipient’s business and the Recipient Group
Companies’ businesses. For the avoidance of doubt, nothing in this Clause 2.2
or in this Agreement shall be deemed to restrict or otherwise limit the volume
or quantity of any Service, provided that certain changes in a Recipient’s
requirements for the volume or quantity of a Service may require the parties to
negotiate in good faith and use their commercially reasonable efforts to agree
upon a price adjustment to the Service Charges for such Service pursuant to
Clause 15.3.

 

2.3                               If
for any reason FIGSL is unable to provide any FIGSL Service to the GEIH Group
pursuant to the terms of this Agreement, FIGSL shall provide to the GEIH Group
a substantially equivalent service (a “FIGSL
Substitute Service”) for not more than the Service Charge for the
substituted FIGSL Service set forth in Schedule 1, Part B and otherwise in
accordance with the terms of this Agreement, including the Standard for
Services.

 

2.4                               If
for any reason GELS is unable to provide any GEIH Service to the FIGSL Group
pursuant to the terms of this Agreement, GELS shall provide to the FIGSL Group
a substantially equivalent service (a “GEIH
Substitute Service”) for not more than the Service Charge for the
substituted GEIH Service set forth in Schedule 1, Part A and otherwise in
accordance with the terms of this Agreement, including the Standard for
Services.

 

2.5                               The
Services shall include:

 

2.5.1                     such
maintenance, support, error correction, training, updates and enhancements
normally and customarily provided by the Provider to its Group Companies that
receive such services; and

 

2.5.2                     all
functions, responsibilities, activities and tasks, and the materials,
documentation, resources, rights and licenses to be used, granted or provided
by the Provider that are not specifically described in this Agreement as a part
of the Services, but are incidental to, and would normally be considered an
inherent part of, or necessary subpart included within, the Services or are otherwise
necessary for the Provider to provide, or the Recipient or the Recipient Group
Companies to receive, the Services.

 

2.6                               In
addition, a Recipient may request that the Provider provides a custom
modification to any Service. For the avoidance of doubt, to the extent any
custom modification constitutes Software and such Software and all the
Intellectual Property therein is owned by the Provider, the Provider hereby
assigns or agrees to cause the assignment of such Software and all Intellectual
Property therein to the relevant Recipient Group Company and the Recipient
hereby grants the Provider or agrees to cause the grant to the Provider of a
perpetual, worldwide, fully paid up, irrevocable, transferable, royalty-free,
non-exclusive licence, with the right to sub-licence, to use and modify such
Software.

 

2.7                               This
Agreement shall not assign any rights to Technology or Intellectual Property
between the parties other than as specifically set forth herein.

 

7

 

2.8                               If
from time to time during the Term any party identifies a need for additional
services to be provided by or on behalf of a Provider, the parties hereto agree
to negotiate in good faith to provide such requested services (provided that
such services are of a type generally provided by the relevant Provider at such
time) and the applicable Service Charges, Service Termination Date and other
rights and obligations with respect thereto. To the extent practicable, such
additional services shall be provided on terms substantially similar to those
applicable to Services of similar types and in all other respects be provided
on terms consistent with those contained in this Agreement.

 

2.9                               Each
party will, promptly following the date of this Agreement, designate a services
account manager (the “Services Manager”)
who will be directly responsible for coordinating and managing the delivery of
the Services and will have authority to act on that party’s behalf with respect
to matters relating to this Agreement.  The
Services Managers will work with each other to address any problems arising in
connection with the Services and manage the parties’ relationship under this
Agreement.

 

2.10                        The
following provisions shall apply to the Services:

 

2.10.1              the Provider and
Recipient shall comply and where appropriate shall cause their Group Companies
to comply with their own security guidelines as in force from time to time
which are applicable to the performance, access and/or use of the Services and
the Information Systems;

 

2.10.2              the parties
hereto shall take commercially reasonable measures to ensure that no Viruses or
similar items are coded or introduced into the Services or Information
Systems.  If a Virus is found to have
been introduced into such Services or Information Systems, the parties hereto
shall use their commercially reasonable efforts to cooperate and to diligently
work together to eliminate the effects of the Virus; and

 

2.10.3              the Provider and
Recipient shall exercise and where appropriate shall cause their Group
Companies to exercise reasonable care in providing, accessing and using the
Services to (i) prevent access to the Services by unauthorised persons and (ii)
not damage, disrupt or interrupt the Services.

 

2.11                        Any
Software delivered by a Provider hereunder shall be delivered at the election
of the Provider either (i) with the assistance of the Provider, through
electronic transmission or downloaded by the Recipient from the GE intranet or
(ii) by installation by Provider on the relevant equipment with retention by
Provider of all tangible media on which such Software resides.  Provider and Recipient acknowledge and agree
that no tangible medium containing such Software (including any enhancements,
upgrades or updates) will be transferred to Recipient at any time for any
reason under the terms of this Agreement, and that Provider will, at all times,
retain possession and control of any such tangible medium used or consumed by
Provider in the performance of this Agreement. Each party shall comply with all
reasonable security measures implemented by the other party in connection with
the delivery of Software.

 

8

 

3                                         CONVERSION SERVICES

 

3.1                               During
the Term, FIGSL shall provide or cause to be provided, in addition to the FIGSL
Services, the following support for no extra charge except for actual
out-of-pocket costs and expenses approved in advance in writing by the GEIH
Services Manager:

 

3.1.1                     FIGSL
shall provide, or cause to be provided, current and reasonably available
historical data related to the FIGSL Services and predecessor services thereto
as reasonably required by GELS, in a manner and within a time period as
mutually agreed by the parties;

 

3.1.2                     FIGSL
shall make reasonably available or cause to be made reasonably available to
GELS the services of those employees, contractors and consultants of the FIGSL
Group whose assistance, expertise or presence is necessary to assist GELS’
transition team in establishing a fully functioning stand-alone environment in
respect of the GEIH Group Companies’ businesses and the timely assumption by
GELS, or by a supplier of GELS, of the FIGSL Services; and

 

3.1.3                     with
respect to any Software or other electronic content (“Electronic Materials”) licensed to Genworth
and its Affiliates under the Cross License and used to provide a GEIH Service,
GELS shall make available or deliver to FIGSL a copy of such Software or
Electronic Materials that are in existence and current as of the Service
Termination Date for such GEIH Service, including any upgrades, updates and
other modifications made to such Software and Electronic Materials since the
Closing Date.  Any upgrades, updates or
other modifications to Software and Electronic Materials made available or
delivered to the FIGSL Group pursuant to this Clause shall be deemed to be GE
Intellectual Property under the Cross License and licensed to Genworth and its
Affiliates pursuant to the terms of the Cross License, notwithstanding that
such upgrades, updates or other modifications (x) were not used, held for use
or contemplated to be used by Genworth and its Affiliates as of the Closing
Date, (y) were not Controlled by GE and its Affiliates as of the Closing Date
or (z) may constitute Improvements made after the Closing Date.

 

3.2                               During
the Term, GELS shall provide or cause to be provided, in addition to the GEIH
Services, the following support for no extra charge except for actual
out-of-pocket costs and expenses approved in advance in writing by the FIGSL
Services Manager:

 

3.2.1                     GELS
shall provide, or cause to be provided current and reasonably available
historical data related to GEIH Services and predecessor services thereto as
reasonably required by FIGSL, in a manner and within a time period as mutually
agreed by the parties;

 

3.2.2                     GELS
shall make reasonably available or cause to be made reasonably available to
FIGSL the services of those employees, contractors and consultants of the GEIH
Group whose assistance, expertise or presence is necessary to assist FIGSL’s
transition team in establishing a fully 

 

9

 

                                                functioning
stand-alone environment in respect of the FIGSL Group Companies’ businesses and
the timely assumption by FIGSL, or by a supplier of FIGSL, of the GEIH Services
and

 

3.2.3                     with
respect to any Software or other Electronic Materials licensed to GE and its
Affiliates under the Cross License and used to provide a FIGSL Service, FIGSL
shall make available or deliver to GELS a copy of such Software or Electronic
Materials that are in existence and current as of the Service Termination Date
for such FIGSL Service, including any upgrades, updates and other modifications
made to such Software and Electronic Materials since the Closing Date.  Any upgrades, updates or other modifications
to Software and Electronic Materials made available or delivered to the GEIH
Group pursuant to this Clause shall be deemed to be Genworth Intellectual
Property under the Cross License and licensed to GE and its Affiliates pursuant
to the terms of the Cross License, notwithstanding that such upgrades, updates
or other modifications (x) were not used, held for use or contemplated to be
used by GE and its Affiliates as of the Closing Date, (y) were not Controlled
by Genworth and its Affiliates as of the Closing Date or (z) may constitute
Improvements made after the Closing Date.

 

3.3                               The
parties acknowledge and agree that in connection with the implementation,
provision, receipt and transition of the Services, the parties will incur
certain non-recurring out-of-pocket conversion costs and expenses (“Conversion Costs”):

 

3.3.1                     GEIH
Services Conversion Costs

 

                                                Following
the termination of a GEIH Service, the GEIH Group shall either reimburse FIGSL
for all actual Conversion Costs incurred by FIGSL in respect of such GEIH
Service or, after consultation with FIGSL, pay such Conversion Costs directly
on an as incurred basis, in either case regardless of whether FIGSL replaces
the GEIH Service with the same application, system, vendor or other means of
effecting the GEIH Service provided however that the GEIH Group’s payment and
reimbursement obligations under this Clause 3.3.1 and GE’s payment and
reimbursement obligations under Section 2.01(f) of the Global Transition
Services Agreement shall not in the aggregate exceed the Total Conversion Cost
Amount.  For the purposes of this
Clause, the “Total Conversion Cost Amount”
means US$29.6 million, which amount represents the parties’ agreed-upon good
faith estimate of (i) the anticipated Conversion Costs with respect to the
transition of the GEIH Services pursuant to the terms of this Agreement and
(ii) the anticipated, non-recurring, out-of-pocket conversion costs with
respect to the transition of the GE Services (as such term is defined in the
Global Transition Services Agreement) pursuant to the terms of the Global
Transition Services Agreement.

 

3.3.2                     FIGSL
Services Conversion Costs

 

                                                The GEIH Group shall be solely responsible
without limitation for paying any Conversion Costs in respect of the FIGSL
Services and any such 

 

10

 

                                                Conversion Costs or related costs shall not
be included in the Total Conversion Cost Amount.

 

3.4                               Prior
to GELS’ payment of or reimbursement for Conversion Costs pursuant to Clause
3.3 above, FIGSL shall provide GELS with an invoice accompanied by reasonably
detailed data and documentation sufficient to evidence the Conversion Costs for
which FIGSL is seeking payment or reimbursement.  Upon receipt of such invoice and data and documentation, GELS
shall, except as otherwise provided in Clause 3.3, either pay the amount of
such invoice directly in accordance with the vendors’ or suppliers’ payment
terms relating to that invoice, where such terms have been previously agreed by
GELS or reimburse FIGSL for its payment of the invoice within 30 days of the
date of GELS’ receipt of such invoice and request for reimbursement from
FIGSL.  If GELS in good faith disputes
the invoiced amount, then the parties shall work together to resolve such
dispute.  If the parties are unable to
resolve such dispute within 30 days, the dispute shall be resolved pursuant to
Clause 25 (Applicable Law and Dispute
Resolution). The parties acknowledge and agree that no prior
approval shall be required from the GEIH Group or GELS in order for FIGSL to
seek any reimbursement pursuant to Clause 3.3 and this Clause..

 

4                                         OTHER ARRANGEMENTS/ADDITIONAL
AGREEMENTS/CONSENTS

 

4.1                               During
the period beginning on the date hereof and ending on the Trigger Date, the
FIGSL Group is or may become a party to certain corporate purchasing contracts,
master services agreements, vendor contracts, software and other Intellectual
Property licenses or similar agreements unrelated to the FIGSL Services (the “FIGSL Vendor Agreements”) under which (or under
open work orders thereunder) the GEIH Group purchases goods or services,
licenses rights to use Intellectual Property and realises certain other
benefits and rights.  The parties hereby
agree that the GEIH Group shall continue to retain the right to purchase goods
or services and continue to realise such other benefits and rights under each
FIGSL Vendor Agreement to the extent allowed by such FIGSL Vendor Agreement
until the expiration or termination of such FIGSL Vendor Agreement for any
reason.  Additionally, for so long as
the purchasing or other rights remain in full force and effect under a FIGSL
Vendor Agreement and the GEIH Group continues to exercise its purchasing or
other rights and benefits under such FIGSL Vendor Agreement and for a period of
six months thereafter, FIGSL shall use its commercially reasonable efforts,
upon the written request of GELS, to assist the GEIH Group in obtaining a
purchasing contract, master services agreement, vendor contract or similar
agreement directly with the third party provider that is a party to the FIGSL
Vendor Agreement.

 

4.2                               During
the period beginning on the date hereof and ending on the Trigger Date, the
GEIH Group is or may become a party to certain corporate purchasing contracts,
master services agreements, vendor contracts, software and other Intellectual
Property licenses or similar agreements unrelated to the GEIH Services (the “GEIH Vendor Agreements”) under which (or
under open work orders thereunder) the FIGSL Group purchases goods or services,
licenses rights to use Intellectual Property and realises certain other
benefits and rights.  The parties hereby
agree that the FIGSL Group shall continue to retain the right to purchase goods
or services and continue to realise such other benefits and rights under each
GEIH Vendor Agreement  to the extent
allowed by such GEIH Vendor Agreement until the expiration or termination of
such GEIH Vendor Agreement for any reason. 
Additionally, for so long as the purchasing or 

 

11

 

                                                other
rights remain in full force and effect under a GEIH Vendor Agreement and the
FIGSL Group continues to exercise its purchasing or other rights and benefits
under such GEIH Vendor Agreement and for a period of six months thereafter, GELS
shall use its commercially reasonable efforts, upon the written request of
FIGSL, to assist the FIGSL Group in obtaining a purchasing contract, master
services agreement, vendor contract or similar agreement directly with the
third party provider that is a party to the GEIH Vendor Agreement.

 

4.3                               Prior
to the Trigger Date, each party shall continue to have access to the other
party’s Information Systems.  On and
after the Trigger Date, a party shall not have access to all or any part of the
other party’s Information Systems, except to the extent necessary for that
party to provide and receive Services (subject to that party complying with all
reasonable security measures implemented by the other party as deemed necessary
by that other party to protect its Information Systems, provided that the first
party shall have had a commercially reasonable period of time in which to
comply with such security measures).

 

4.4                               Each
party will allow the other party and its Representatives reasonable access to
its facilities as necessary for the performance of the Services.

 

4.5                               The
parties acknowledge and agree that certain software and other licences,
consents, approvals, notices, registrations, recordings, filings and other
actions need to be obtained in order to allow the Services to be provided
(collectively, “Consents”).  The GEIH Group shall, after consultation
with FIGSL, either directly pay the out-of-pocket costs of obtaining,
performing or satisfying such Consents (the “Consents
Costs”) or, after any Consent is obtained, satisfied or performed,
reimburse FIGSL for all actual Consents Costs incurred by FIGSL in connection
with obtaining, performing or satisfying such Consents, provided however that
the GEIH Group’s payment and reimbursement obligations in respect of the
Consents Costs under this Clause and Clause 4.7.4 and GE’s payment and
reimbursement obligations under Section 4.04(a) of the Global Transition
Services Agreement shall not in the aggregate exceed the Total Consents Cost
Amount.  For the purposes of this
Clause, the “Total Consents Cost Amount”
means US$11 million which amount represents the parties’ agreed-upon good faith
estimate of the anticipated out-of-pocket costs with respect to obtaining,
performing or otherwise satisfying (i) the Consents  pursuant to the terms of this Agreement and (ii) the Consents
(as such term is defined in the Global Transition Services Agreement) pursuant
to the terms of the Global Transition Services Agreement.  The GEIH Group shall be solely responsible
for paying any costs or fees in connection with any Consents with respect to
the FIGSL Services and any such costs or fees shall not be included in the
Total Consents Cost Amount.

 

4.6                               Prior
to receiving any reimbursement pursuant to Clause 4.5 above, FIGSL shall provide
GELS with an invoice accompanied by reasonably detailed data and documentation
sufficient to evidence the Consents Costs for which FIGSL is seeking
reimbursement.  Upon receipt of such
invoice and data and documentation, GELS shall, except as otherwise provided in
Clause 4.5, pay the amount of such invoice to FIGSL within 30 days of the date
of receipt of such invoice.  If GELS in
good faith disputes the invoiced amount, then the parties shall work together
to resolve such dispute.  If the parties
are unable to resolve such dispute within 30 days, the dispute shall be
resolved pursuant to Clause 25 (Applicable
Law and Dispute Resolution).  The parties acknowledge and agree that no prior approval shall be
required from the 

 

12

 

                                                GEIH
Group or GELS in order for FIGSL to seek any reimbursement pursuant to Clause
4.5 and this Clause.

 

4.7                               The
parties agree that the leases and sub-leases listed in Part C of Schedule 1
shall have been assigned to or granted by the appropriate party by the
Commencement Date, subject to obtaining any necessary third party consents or
approvals.  A party to whom a lease or
sub-lease is to be assigned or granted agrees to accept such assignment or
grant.  To the extent that any such leases
or sub-leases shall not have been granted or assigned by the Commencement Date:

 

4.7.1                     notwithstanding
Section 2.4.(a) of the Master Agreement, the 
leases in respect of (a) Radcliffe House, Keynes House and Pease House
Old Charlton Road Priory Park Hitchin; (b) 25 Car Parking Spaces at Priory Park
Hitchin; and (c) 88 Car Parking Spaces in the Woodlands Car Park at Hitchin
Conference & Banqueting Centre Hitchin each dated 8 April 2002 and made
between (1) GE Pensions Limited (2) GE Insurance Holdings Limited (3) FIGSL
shall not terminate with effect from the Closing Date but shall continue in
full force and effect and shall be assigned to GELS in accordance with this
Clause 4.7;

 

4.7.2                     the
parties agree to work together in good faith to effect the assignment or grant
(as appropriate) of any such leases or subleases;

 

4.7.3                     to the
extent that any assignment or grant of such leases and sub-leases is subject to
or conditional upon any third party consents or approvals, the parties shall
use their commercially reasonable endeavours to obtain such consents and
approvals;

 

4.7.4                     subject
to Clause 4.5, GELS agrees that it shall pay or reimburse FIGSL for any third
party costs payable by FIGSL in relation to the assignment or grant of the
leases and sub-leases listed in Part C of Schedule 1;

 

4.7.5                     FIGSL
agrees to hold the leases or sub-leases which are to be assigned to GELS for
the use and benefit of GELS and GELS shall pay or reimburse FIGSL for all
amounts paid or incurred in connection with such leases and sub-leases. In
addition, FIGSL shall, insofar as reasonably possible and to the extent
permitted by applicable law, treat such leases and sub-leases in the ordinary
course of business in accordance with past practice and take such other actions
as may be reasonably requested by GELS in order to place GELS in the same
position as if the relevant leases and sub-leases had been assigned as at the
Commencement Date and so that all the benefits and burdens relating to such
leases and sub-leases, including possession, use, risk of loss, potential for
gain, and dominion, control and command over such leases and sub-leases, is to
inure to GELS from and after the Commencement Date.

 

4.7.6                     FIGSL
shall not be obligated to expend any money in connection with any leases or
sub-leases listed on Part C to Schedule 1 which are to be retained by it
pending their assignment to GELS unless the necessary funds are advanced (or
otherwise made available) by GELS, other than reasonable 

 

13

 

                                                out-of-pocket
expenses, attorneys’ fees and recording or similar fees, all of which shall be
promptly reimbursed by GELS.

 

4.8                               The
parties acknowledge that it is anticipated that the Transfer Regulations will
operate to transfer the contracts of employment of all employees of FIGSL who
work primarily for or primarily in support of the members of the GEIH Group
(other than Financial Insurance Company Limited, FACL, Consolidated Insurance
Group Limited, GE Financial Assurance, Compania de Seguros y Reaseguros de Vida
S.A. and GE Financial Insurance, Compania de Seguros y Reaseguros S.A.), other
than those employees who provide support to such members of the GEIH Group
solely by virtue of FIGSL’s obligations hereunder, to GELS on the Closing Date.  In the event any such employees shall not
have been transferred to GELS on the Closing Date:

 

4.8.1                     the
parties agree to work together in good faith to effect the transfers of any
such employees to GELS;

 

4.8.2                     GELS
agrees that it shall reimburse FIGSL for all costs incurred in continuing to
employ such employees for the period between the Closing Date and the transfer
of such employees to GELS taking effect (the “Interim
Period”), having reference to such employees’ existing contracts of
employment and FIGSL’s past practice;

 

4.8.3                     GELS
agrees that it shall reimburse FIGSL in respect of all liabilities incurred
during the Interim Period as a result of continuing to employ such employees
for the Interim Period, including any liabilities arising out of any unfair or
constructive dismissal claims brought by such employees against FIGSL; and

 

4.8.4                     GELS
agrees to reimburse FIGSL for any costs and liabilities FIGSL incurs if FIGSL
makes such employees redundant during the Interim Period, subject to FIGSL
having consulted GELS prior to making any such redundancies.

 

                                                FIGSL agrees that it shall at all times act
reasonably and in good faith in relation to the transfer of the relevant
employees to GELS and the recovery of costs and liabilities in respect of
employees who shall not have been transferred to GELS on the Closing Date,
including without limitation the costs and liabilities of making such employees
redundant, from GELS.

 

4.9                               The
parties intend that any supplier contracts which need to be transferred from
the GEIH Group to FIGSL or from the FIGSL Group to GELS to allow the Services
to be provided or to enable the provision by GELS and FIGSL of services to
their respective Group Companies shall have been transferred by the
Commencement Date.  To the extent that
any such contracts shall not have been transferred by the Commencement Date,
the parties agree to work together in good faith to effect the transfers of any
such contracts.

 

4.10                        The
parties intend that any Intellectual Property which needs to be transferred from
the GEIH Group to FIGSL or from the FIGSL Group to GELS to allow the Services
to be provided or to enable the provision of GELS and FIGSL of services to
their respective Group Companies shall have been transferred by the
Commencement Date.  

 

14

 

                                                To
the extent that any such Intellectual Property shall not have been transferred
by the Commencement Date, the parties agree to work together in good faith to
effect the transfers of any such Intellectual Property.

 

4.11                        With
effect from the date on which the UK Scheme is approved in respect of
substantially the whole of the business of FACL (as calculated by reference to
the number of jurisdictions in which approval of the UK Scheme is obtained)
(the “UK Scheme Effective Date”),
GELS shall procure that FACL shall grant to Financial New Life Company Limited
a sole licence to use the name “Financial Assurance Company Limited” and all
and any derivatives thereof as a trading or business name in those
jurisdictions in which approval of the UK Scheme has been obtained (the “FACL Name Licence”). Each party agrees and
acknowledges that the FACL Name Licence is to be granted on an “as is” basis,
with all faults and without warranty of any kind, and that the GEIH Group does
not make and specifically disclaims any representations, warranties, express or
implied in respect of the FACL Name Licence. 
FIGSL assumes for itself and on behalf of the FIGSL Group all risk and
liability resulting from Financial New Life Company Limited’s use of the FACL
Name Licence. FACL shall continue to be registered with the name “Financial
Assurance Company Limited” and shall be entitled to use such name and its
derivatives only:

 

4.11.1              in those
jurisdictions in which approval of the UK Scheme is not obtained on the UK
Scheme Effective Date; or

 

4.11.2              as required by
law.

 

4.12                        Following
the UK Scheme Effective Date, in the event the UK Scheme is approved in any
other jurisdiction GELS shall promptly at FIGSL’s request procure that FACL
extends the FACL Name Licence to such jurisdiction.  Following the extension of the FACL Name Licence to any other
jurisdiction FACL shall cease to use the name “Financial Assurance Company
Limited” and all and any derivatives thereof in such jurisdiction, save as
required by law.

 

4.13                        Upon
the UK Scheme being approved in all relevant jurisdictions, GELS shall procure
that:

 

4.13.1              FACL shall
immediately transfer to Financial New Life Company Limited all rights it owns
in the name “Financial Assurance Company Limited” and all and any of the
derivatives thereof;

 

4.13.2              FACL is
reregistered under a different name; and,

 

4.13.3              save as required
by law, FACL shall cease to use the name and all and any derivatives thereof in
all jurisdictions.

 

5                                         THE PROVIDER’S RESPONSIBILITIES

 

5.1                               The
Provider shall act on behalf of the Recipient Group Companies but in respect of
each Recipient Group Company, only to the extent of the authority given from
time to time by such Recipient Group Company. 
A Recipient Group Company may vary its instructions to the Provider at
any time.

 

15

 

5.2                               The
Provider shall comply with all reasonable security requirements of the
Recipient Group Companies and shall procure that all of its employees, agents
and sub-contractors shall likewise comply with such requirements.

 

5.3                               The
Provider shall notify the Recipient Group Companies of any special health and
safety hazards of which it is aware (after making all reasonable enquiries) and
which may be involved in performing the Services. The Provider shall further
notify the Recipient Group Companies in advance of the Commencement Date of any
information or requirements affecting the Recipient Group Companies under any
legislation concerning health and safety at work.

 

6                                         CHARGES

 

6.1                               In
consideration of the Provider providing the Services to the Recipient and its
Group Companies, the Recipient shall pay to the Provider the Service Charges.

 

6.2                               In
addition, in connection with the performance of the Services, the Provider may
incur certain out-of-pocket costs (“Other
Costs”), which shall, without duplication, either be paid directly
by the Recipient or reimbursed to the Provider by the Recipient; provided
that any Other Costs shall only be payable by the Recipient if such Other Costs
have been authorised by the relevant Services Manager prior to having been
incurred by the Provider and subject to receipt by the Recipient of data and
other documentation reasonably required to support the calculation of amounts due
to the Provider as a result of such Other Costs.

 

6.3                               The
parties acknowledge that the Service Charges reflect charges for such
maintenance, support, error correction, training, updates and enhancements as
shall be provided by the Provider pursuant to Clause 2.5.

 

6.4                               If
the Recipient requests that the Provider provide a custom modification in
connection with any Service pursuant to Clause 2.6, the Recipient shall be
responsible for the cost of such custom modification.

 

7                                         TERMS OF PAYMENT

 

7.1                               The
Provider shall deliver an invoice to the Recipient on a quarterly basis (or at
such other frequency as is consistent with the basis on which the Service
Charges are determined and, if applicable, charged to Affiliates of the
Provider) in arrears for the Service Charges and any Other Costs in respect of
all Services provided to and Other Costs incurred in respect of the Recipient
and its Group during that quarter.

 

7.2                               The
Recipient shall pay such invoice in full to the Provider in UK sterling or in
Euros, as appropriate, according to the terms of the invoice, within
seventy-five (75) days of the date of such invoice in cleared funds to the bank
nominated by the Provider.

 

7.3                               If
the Recipient fails to pay any amount due to the Provider under this Agreement
(excluding any amount contested in good faith) by the due date for payment, the
Recipient shall pay to the Provider, in addition to the amount due, interest on
such amount at the rate of 2% per annum over Barclays Bank plc’s base rate from
time to time  from the date the
payment was due until the payment is made in full, both before and after any
judgment.

 

16

 

7.4                               As
soon as practicable after receipt by the Provider of any reasonable written
request from the Recipient, the Provider shall provide the Recipient with data
and documentation supporting the calculation of any amount due to the Provider
under this Agreement the subject of the request for the purpose of verifying
the accuracy of such calculation. If after reviewing such data and
documentation the Recipient disputes the calculation of any amount due to the
Provider then the dispute shall be resolved pursuant to Clause 25 (Applicable Law and Dispute Resolution).

 

7.5                               All
sums due under this Agreement are exclusive of VAT which shall where applicable
be paid by the appropriate Recipient.

 

7.6                               The
Provider shall be responsible for the payment of all invoices due to third
party suppliers in respect of Goods, equipment or services supplied in
connection with the Services.

 

7.7                               The
Recipient shall pay the full amount of costs and disbursements including Other
Costs incurred under this Agreement, and shall not set-off, counterclaim or
otherwise withhold any other amount owed to the Provider on account of any
obligation owed by the Provider to the Recipient.

 

8                                         COMPLIANCE WITH LAWS AND STANDARD FOR
SERVICES

 

8.1                               Each
Provider will perform the Services in compliance with all applicable laws,
enactments, orders, regulations, standards and other similar instruments and
all other applicable provisions hereof and will obtain and maintain in force
for the Term all licences, permissions, authorisations, consents and permits
required to comply with all laws, enactments, orders, standards and regulations
relevant to the performance of the Services under this Clause including for the
avoidance of doubt the rules of any regulatory authority (whether the FSA or
any other regulator) to the extent they apply to the provision of the Services
hereunder.

 

8.2                               Except
as otherwise provided in this Agreement (including the Schedule hereto), the
Provider agrees to perform the Services such that the nature, quality, standard
of care and the service levels at which such Services are performed are no less
than the nature, quality, standard of care and service levels at which the
substantially same services were previously performed by or on behalf of the
Provider or its predecessors, if applicable, prior to the Commencement Date
(the “Standard for Services”).

 

8.3                               The
parties shall co-operate with each other and use their good faith commercially
reasonable efforts to effect the efficient, timely and seamless provision and
receipt of the Services.

 

9                                         WARRANTIES

 

9.1                               All
of the warranties specified in this Clause 9 are without prejudice to any other
warranties expressed in this Agreement. Each such warranty shall be construed
as a separate warranty and shall not be limited or restricted by reference, or
inference from, the terms of any other warranty or any other term.

 

17

 

9.2                               Each
Provider hereby acknowledges and agrees that compliance by it with each such
warranty shall not relieve it of any of its other obligations under this
Agreement.

 

9.3                               Each
Provider warrants that, in the event that it delivers any Goods, as at the date
of delivery of any Goods:

 

9.3.1                     subject
to any valid retention of title to the Goods by a third party, it has good
title to the Goods and such title is free of all liens, charges and
encumbrances; and

 

9.3.2                     the Goods
are of satisfactory quality, conform with the manufacturer’s specifications and
are free from defects in design, manufacture, use of or materials for a period
of twelve (12) months from the date of delivery;

 

                                                and in the event this is discovered not to
be the case during such twelve (12) month period, without prejudice to any
other right or remedy which the Recipient may have, the Provider shall, at the
Recipient’s option, replace or repair the Goods free of charge For the
avoidance of doubt, the costs to the Provider of replacing or repairing the
Goods shall be subject to and count towards the overall cap on that Provider’s
liability under this Agreement contained in Clause 13.2.

 

9.4                               Each
Provider further warrants that:

 

9.4.1                     it has
taken all requisite corporate and other action to approve the execution,
delivery and performance of the Agreement, and agrees to produce to the
Recipient evidence of such action upon reasonable request; and

 

9.4.2                     it will
not breach any rights (including but not limited to rights relating to
Intellectual Property) or commit, or involve the Recipient in the commission
of, any tort by entering into this Agreement and that this Agreement will
constitute valid and legally binding obligations on the Provider in accordance
with its terms when executed by such Provider.

 

10                                  CONTRAT DE GROUPEMENT DE FAIT

 

                                                In view of the tax benefits enjoyed by RD
Plus S.A., Vie Plus S.A. and Assocred S.A. (all such companies being either a
FIGSL Group Company or a GEIH Group Company, and being together the “Groupement de Fait Parties”) pursuant to
the Contrat de Groupement de Fait and their wish to preserve such tax benefits
and for equivalent tax benefits to be obtained in respect of the Services to be
provided as between the Groupement de Fait Parties pursuant to this Agreement,
the parties hereto agree that the provisions of the Contrat de Groupement de
Fait shall continue to apply so far as is possible as between the Groupement de
Fait Parties to the extent necessary to preserve the tax benefits currently
enjoyed by the Groupement de Fait Parties and to obtain equivalent tax benefits
in respect of Services provided as between the Groupement de Fait Parties
pursuant to this Agreement, provided however that in the event of any
inconsistency between any of the provisions of this Agreement and the Contrat
de Groupement de Fait, the provisions of this Agreement shall prevail as
between the parties and the Groupement de Fait parties in respect of the
matters dealt with hereunder.

 

18

 

11                                  RECORDS AND AUDIT

 

11.1                        The
Provider shall maintain proper records (“Records”)
in connection with all Services provided by it under this Agreement.  The Provider shall allow the Recipient, its
employees, independent consultants, duly authorised agents, regulators and any
other third parties notified by the Recipient to the Provider (to which
notified parties the Provider does not reasonably object) to inspect and take
copies of or extracts from such Records at all reasonable times (i)  in connection with audits carried out
pursuant to this Clause 11 to the extent reasonably necessary for the purpose
of verifying the proper performance by the Provider of its obligations
hereunder and the amounts due to the Provider hereunder or (ii) in connection
with any agreements entered into by the Recipient pursuant to which the
Recipient has agreed to provide information to the third party.  The Provider shall afford the Recipient’s
employees, independent consultants, authorised agents, regulators and the third
parties notified by the Recipient to the Provider (to which notified parties
the Provider does not reasonably object) reasonable access to all other
relevant information, reports, documents, records, payments to suppliers, wage
slips (whether in human or machine readable form) and data.  All confidential information of the Provider
made available to the Recipient’s employees, independent consultants,
authorised agents and regulators under this Clause 11 shall be treated in
accordance with Clause 16 (Confidentiality).

 

11.2                        The
Recipient reserves the right to conduct periodic audits to verify the
Provider’s proper performance of the Services and the cost effectiveness and
efficiency thereof.  Such audits may be
carried out by the Recipient’s employees, independent consultants, duly
authorised agents and regulators and shall be carried out at the Recipient’s
expense.  The Provider hereby grants the
Recipient, its employees, independent consultants, duly authorised agents and
regulators a right of access to such of its records, employees and premises as
the Recipient may reasonably request for the purposes of conducting such
audits.  The Provider shall make
available such facilities and give such assistance as the Recipient may
reasonably request in connection with the carrying out of any such audit.

 

11.3                        Where
an audit is to be carried out pursuant to this Clause 11, the audit shall be
conducted with reasonable notice and shall be subject to the consent of the
relevant Provider, which shall not be unreasonably withheld or delayed.

 

11.4                        If as
a result of an audit carried out pursuant to this Clause 11 a Recipient is
unable to verify Service Charges previously demanded by its Provider and paid
by that Recipient, the Recipient shall have the right to receive a refund of or
proportionate reduction in the Service Charges for any such amount that cannot
be verified.  In the event that a
Recipient is entitled to such a refund or reduction following an audit carried
out pursuant to this Clause 11, that Recipient may request, and the Provider
shall be obliged to pay, a reasonable proportion of the cost of carrying out
the audit, bearing in mind the amount of refund or reduction to which the
Recipient is entitled.

 

12                                  INTELLECTUAL PROPERTY

 

12.1                        The
Recipient shall be the owner of and has title to all property and Intellectual
Property in any data, procedures, documentation or materials provided to the
Provider hereunder by the Recipient or prepared or maintained by the Provider
on behalf of the Recipient in connection with the provision of the
Services.  The Provider hereby 

 

19

 

                                                agrees
from time to time to execute such documents and do such further acts or things
as may be necessary to vest title to such Intellectual Property in the
Recipient.  The Recipient shall be
entitled, at its sole cost and expense, to inspect and make copies of any such
data, documentation and materials during normal office hours upon reasonable
advance notice to the Provider.  All
such materials or documentation must be returned in good order and condition at
the sole cost and expense of the Provider on request or on termination of this
Agreement in a mutually agreed upon format and shall not be copied or used for
any other purpose other than for carrying out the Services pursuant to this
Agreement provided that the Provider shall be entitled, at its sole cost and
expense, to retain one copy of all such data, documentation and materials for
archiving purposes and for the purposes of responding to any dispute which may
arise in connection with the Services.

 

12.2                        Each
Provider represents and warrants that:

 

12.2.1              save for the
Consents, it has all necessary rights, authorisations and licences to provide
the Services;

 

12.2.2              it has the
authority to grant the rights to be granted to the Recipient hereunder;

 

12.2.3              neither the
supply to the Recipient of the Services (or any Goods where relevant) or any
part thereof nor the use by the Recipient of the Services (or any Goods) or any
part thereof shall in any way constitute an infringement or other violation of
any Intellectual Property of any third party; and

 

12.2.4              it owns or has
obtained valid licences for all Intellectual Property which are necessary to
the performance of any of its obligations hereunder.

 

13                                  LIMITATION OF LIABILITY AND
INDEMNITIES

 

13.1                        Save
as provided in Clauses 13.2 and 13.4, and subject to Clause 13.6, no Provider
or its Affiliates or any of their respective directors, officers or employees
or any of the heirs, executors, successors and or assigns of any of the
foregoing (each, a “Provider Indemnified
Party”) shall have any liability in contract, tort or otherwise to
the Recipient or its Affiliates or Representatives for or in connection with
any Services rendered or to be rendered by any Provider Indemnified Party
pursuant to this Agreement, (ii) the transactions contemplated by this
Agreement or (iii) any Provider Indemnified Party’s actions or inactions in
connection with any such Services or transactions. For the avoidance of doubt
this Clause shall not preclude a Recipient from exercising any remedies
expressly provided elsewhere in this Agreement.

 

13.2                        Each
Provider shall indemnify, defend and hold harmless each relevant Recipient and
each of its subsidiaries and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of
the foregoing (each a “Recipient Indemnified
Party”), from and against any and all liabilities of the Recipient
Indemnified Parties relating to, arising out of, or resulting from:

 

(i)                                    the
gross negligence or wilful misconduct of a Provider Indemnified Party in
connection with the Provider Indemnified Party’s provision of the Services;

 

20

 

(ii)                                the
improper use or disclosure of information of, or regarding, a customer or
potential customer of a Recipient Indemnified Party in connection with the
Provider Indemnified Party’s provision of the Services; or

 

(iii)                            any
violation of applicable law or regulation by a Provider Indemnified Party in
connection with the Provider Indemnified Party’s provision of the Services
including without limitation any breach of the FSA’s rules or any other
regulator’s rules, save where the Provider Indemnified Party was acting in
compliance with the Recipient Indemnified Party’s express instructions,

 

                                                provided that, subject to Clause 13.6, (a)
the aggregate liability of FIGSL as a Provider pursuant to this Clause shall in
no event exceed £5 million and (b) the aggregate liability of GELS as a
Provider pursuant to this Clause shall not exceed £5 million.

 

13.3                        Each
Recipient shall indemnify, defend and hold harmless each relevant Provider
Indemnified Party from and against any and all liabilities of the Provider
Indemnified Parties relating to, arising out of, or resulting from the
provision of the Services by any Provider or any of its subsidiaries (including
without limitation any liabilities arising out of any violation of applicable
law or regulation or any breach of the FSA’s rules or any other regulator’s
rules by a Recipient Indemnified Party in connection with the Services) except
for (A) any liabilities that result from a Provider Indemnified Party’s
negligence in connection with the provision of the Services, (B) any
liabilities that result from a Provider Indemnified Party’s breach of this
Agreement or (C) any liabilities for which the Provider is required to
indemnify a Recipient Indemnified Party pursuant to Clause 13.2.  For the avoidance of doubt, a Recipient’s
liability under this Clause 13.3 shall be unlimited save as provided in Clause
13.5.

 

13.4                        In
addition, save as provided in Clause 4.8, the parties agree they shall share
equally any liability incurred by a party or any of its Group Companies in
connection with any claim brought against a party or any of its Group Companies
pursuant to the Transfer Regulations by any employee of either party or any of
the parties’ Group Companies in connection with the termination of any Service
under this Agreement or of the Agreement as a whole (an “Employee Claim”). Each party shall
indemnify the other party and each of the other party’s Group Companies against
fifty per cent. (50%) of all expenses, damages, compensation, fines and other
liabilities including reasonable legal costs arising out of or in connection
with any Employee Claim.

 

13.5                        Subject
to Clause 13.6 but notwithstanding any other provision contained in this
Agreement, neither party shall be liable to the other for any special,
indirect, punitive, incidental or consequential losses, damages or expenses of
the other, including, without limitation, loss of profits, arising from any
claim relating to breach of this Agreement or otherwise relating to any of the
Services provided hereunder save that the limitations contained in this Clause
13.5 shall not apply to:

 

13.5.1              damages awarded
to a third party pursuant to a third party claim for which a Provider is
required to indemnify, defend and hold harmless any Recipient Indemnified Party
under Clause 13.2; or

 

21

 

13.5.2              damages awarded
to a third party pursuant to a third party claim for which a Recipient is
required to indemnify, defend and hold harmless any Provider Indemnified Party
under Clause 13.3.

 

13.6                        Nothing
in this Agreement shall exclude or limit the liability of a party in respect
of:

 

13.6.1              death or
personal injury caused by the negligent or malicious acts or omissions of such
party;

 

13.6.2              fraud;

 

13.6.3              the indemnities
in respect of Employee Claims contained in Clause 13.4; or

 

13.6.4              GELS’ payment
obligations in respect of employees under Clause 4.8.

 

13.7                        Nothing
in this Clause 13 shall be deemed to eliminate or limit in any respect GELS or
FIGSL’s express payment and reimbursement obligations under this Agreement.

 

14                                  CONDUCT OF CLAIMS

 

14.1                        If a
party entitled to indemnification under Clause 13 (the “Indemnified Party”) becomes aware of a
matter which may give rise to a claim by a third party in respect of which the
other party (the “Indemnifying Party”)
may be required to indemnify the Indemnified Party (a “Relevant Claim”) or any proceedings shall
be instituted against the Indemnified Party which may give rise to a Relevant
Claim, the Indemnified Party shall give notice thereof in writing to the
Indemnifying Party within 20 days of becoming aware of such Relevant Claim or
such proceedings, stating in reasonable detail the nature of the matter on a
without prejudice basis, if practicable and the amount claimed. Notwithstanding
the foregoing, the failure of any Indemnified Party to give notice pursuant to
this Clause 14.1 shall not relieve the Indemnifying Party of its obligations
under Clause 13.

 

14.2                        The
Indemnifying Party shall have the option, at its own expense and subject to the
Indemnified Party being indemnified by the Indemnifying Party against all costs
and liabilities incurred by the Indemnified Party in relation thereto, to
assume the defence of a Relevant Claim, including the instruction of legal
advisers reasonably satisfactory to the Indemnified Party to represent the
Indemnified Party and any others which the Indemnifying Party may designate in
such proceedings and the Indemnifying Party shall pay the fees and
disbursements of such legal advisers related to such proceedings. Within 30 days of the receipt of notice
from the Indemnified Party pursuant to Clause 14.1 (or sooner, if the nature of
the Relevant Claim requires), the Indemnifying Party shall notify the
Indemnified Party whether it chooses to assume the defence of the Relevant
Claim, which notice shall specify any reservations or exceptions.

 

14.3                        If the
Indemnifying Party exercises the option referred to in Clause 14.2:

 

14.3.1              the Indemnified
Party shall provide to the Indemnifying Party and its advisers reasonable
access to its personnel and to its premises, assets and documents and records
in its possession or under its control, and give the Indemnifying Party any
information and assistance as it shall reasonably 

 

22

 

                                                request,
and the Indemnifying Party may, at its cost, take copies of such documents and
records as it reasonably requires;

 

14.3.2              the Indemnified
Party shall take any action and institute any proceedings, to enable the
Indemnifying Party to dispute, resist, appeal, compromise, defend, remedy or
mitigate the Relevant Claim or enforce against another person the Indemnified
Party’s rights in relation to the Relevant Claim;

 

14.3.3              the Indemnifying
Party shall, if so required by the Indemnified Party, maintain consultation
with the Indemnified Party on all aspects of such proceedings and shall provide
the Indemnified Party with all information reasonably requested by it in
relation to such proceedings; and

 

14.3.4              the Indemnified
Party shall have the right to retain its own legal advisers, but the fees and
expenses of such legal advisers shall be at the expense of the Indemnified
Party unless:

 

(a)                                  the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such legal advisers; or

 

(b)                                  the
named parties to any such proceedings (including any added parties) include
both the Indemnifying Party and the Indemnified Party and representation of
both parties by the same legal advisers would be inappropriate due to actual or
potential differing interests between them.

 

14.4                        If the
Indemnifying Party does not exercise its option contained in Clause 14.2, or
fails to notify the indemnified Party that it chooses to exercise such option
within the relevant timetable set out in that Clause, in the event of a
Relevant Claim the Indemnified Party shall, subject to being indemnified by the
Indemnifying Party against all costs and liabilities incurred in so doing:

 

14.4.1              take or procure
such action to be taken as the Indemnifying Party shall reasonably request to
deal with a Relevant Claim;

 

14.4.2              if so required
by the Indemnifying Party, maintain consultation with the Indemnifying Party on
all aspects of any proceedings in defence of a Relevant Claim; and

 

14.4.3              provide the
Indemnifying Party with all information reasonably requested by it in relation
to such proceedings.

 

14.5                        Unless
the Indemnifying Party has failed to assume the defence of a Relevant Claim,
the Indemnified Party shall not admit liability in respect of a Relevant Claim,
nor compromise, nor settle any proceedings in defence of a Relevant Claim,
without the written consent of the Indemnifying Party (such consent not to be
unreasonably withheld or delayed). No Indemnifying Party shall consent to entry
of any judgment or settle any proceedings in defence of a Relevant Claim
without the consent of the Indemnified Party if the effect thereof is to permit
any injunction, declaratory judgment, other order or other non-monetary relief
to be entered directly or indirectly against the Indemnified Party.

 

23

 

14.6                        No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending or threatened Relevant Claim in
respect of which any Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Relevant
Claim.

 

14.7                        Any
liabilities for which an Indemnified Party is entitled to indemnification or
contribution under Clause 13 shall be paid by the Indemnifying Party to the
Indemnified Party as such liabilities are incurred.  The indemnity and contribution agreements contained in Clause 13
shall remain operative and in full force and effect, regardless of (i) any
investigation made by or on behalf of any Indemnified Party and (ii) any
termination of this Agreement.

 

14.8                        Any
claim on account of a liability which does not result from a Relevant Claim
shall be asserted by written notice given by the Indemnified Party to the
applicable Indemnifying Party. Such Indemnifying Party shall have a period of
30 days after the receipt of such notice within which to respond thereto. If
such Indemnifying Party does not respond within such 30-day period, such
Indemnifying Party shall be deemed to have refused to accept responsibility to
make payment. If such Indemnifying Party does not respond within such 30-day
period or rejects such claim in whole or in part, such Indemnified Party shall
be free to pursue such remedies as may be available to such party as
contemplated by this Agreement.

 

14.9                        If
payment is made by or on behalf of any Indemnifying Party to any Indemnified
Party in connection with any Relevant Claim, such Indemnifying Party shall be
subrogated to and shall stand in the place of such Indemnified Party as to any
events or circumstances in respect of which such Indemnified Party may have any
right, defence or claim relating to such Relevant Claim against any claimant or
plaintiff asserting such Relevant Claim or against any other Person. Such
Indemnified Party shall cooperate with such Indemnifying Party in a reasonable
manner, and at the cost and expense of such Indemnifying Party, in prosecuting
any subrogated right, defence or claim.

 

14.10                 In an action
in which the Indemnifying Party is not a named defendant, if either the
Indemnified Party or Indemnifying Party shall so request, the parties shall
endeavour to substitute the Indemnifying Party for the named defendant if they
conclude that substitution is desirable and practical.  If such substitution or addition cannot be
achieved for any reason or is not requested, the named defendant shall allow the
Indemnifying Party to manage the action as set forth in this Clause, and the
Indemnifying Party shall fully indemnify the named defendant against all costs
of defending the action (including court costs, sanctions imposed by a court,
legal fees, experts’ fees and all other external expenses), the costs of any
judgment or settlement, and the cost of any interest or penalties relating to
any judgment or settlement.

 

14.11                 The
Indemnified Party shall have no right to an indemnity under Clause 13 in
respect of any liability to the extent that it actually recovers any monies in
respect of such liability under any insurances it maintains.  If an Indemnified Party receives a payment
in respect of a liability pursuant to the indemnities contained in Clause 13 from
the Indemnifying Party and subsequently recovers monies under its insurances 

 

24

 

                                                in
respect of such liability, the Indemnified Party shall reimburse the
Indemnifying Party an amount equal to the monies received under its insurances.

 

14.12                 The
Indemnified Party shall use its commercially reasonable efforts to seek or
collect or recover any insurance monies (save from any captive insurance
subsidiary) to which the Indemnified Party is entitled in connection with any
liability for which it is indemnified under Clause 13.

 

14.13                 The
Indemnified Party shall use its commercially reasonable endeavours to mitigate
any loss in respect of which it is indemnified under Clause 13.

 

15                                  ASSIGNMENT AND SUB-CONTRACTING

 

15.1                        This
Agreement shall not be assigned or transferred by a party hereto without the
prior written consent of the other party save as provided in Clause 15.2.

 

15.2                        In the
event a Recipient sells the whole or part of any Recipient Group Company (a “Recipient Divested Company”) or the whole
or part of the business of any Recipient Group Company (a “Recipient Divested Business”) to a third
party, the Provider shall remain obliged to continue to provide Services to
such Recipient Divested Company or the purchaser of such Recipient Divested
Business (but not otherwise to such purchaser) to the extent it was providing
such Services immediately prior to such divestiture, pursuant to the terms of
this Agreement, unless otherwise agreed upon by the parties hereto, provided
however that the Provider’s obligation to provide Services to a Recipient
Divested Company or the purchaser of a Recipient Divested Business shall be
subject to:

 

(i)                                    the
implementation of new Service Charges as between the Provider and such Recipient
Divested Company or the third party purchaser of such Recipient Divested
Business for such Services, which new Service Charges shall be proposed by the
Provider at its sole discretion save that such new Service Charges shall be
consistent with applicable market rates for such Services;

 

(ii)                                the
Recipient or the Recipient Divested Company or the third party purchaser of
such Recipient Divested Business agreeing to pay or cause to be paid any
incremental fees or expenses incurred by the Provider in connection with
establishing or transferring the provision of such Services to the third party;

 

(iii)                            obtaining
any consents that are necessary to enable the Provider to provide the Services
to the Recipient Divested Company or the third party purchaser of such
Recipient Divested Business, provided that FIGSL and GELS shall each use
commercially reasonable efforts to obtain any such consents;

 

(iv)                               the
Recipient Divested Company or the third party purchaser of such Recipient
Divested Business agreeing to any reasonable security measures implemented by
the Provider in providing the Services as deemed necessary by the Provider to
protect its Information Systems; and

 

(v)                                   the
Recipient Divested Company or the third party purchaser of such Recipient
Divested Business agreeing in writing to be bound by all applicable provisions
of this Agreement.

 

25

 

15.3                        In the
event a Recipient Group Company acquires a business or portion thereof by
merger, stock purchase, asset purchase, reinsurance or other means that engages
in the same type of business as the relevant Recipient Group, (a “Recipient Acquired Company”), then the
Provider shall be obliged to provide the Services to such Recipient Acquired
Company, to the extent applicable, pursuant to the terms of this Agreement,
unless otherwise agreed upon by the parties hereto provided however that in the
event the acquisition of a Recipient Acquired Company results in a change to
the volume or quantity of any Service which causes a material increase in the
Provider’s costs of providing such Service, the parties shall negotiate in good
faith and use their commercially reasonable efforts to agree upon a price
increase to the Service Charges for such Service to compensate the Provider for
the increase in the cost of providing such Service.

 

15.4                        Nothing
in this Clause shall be deemed to waive any party’s rights to relieve or
otherwise satisfy any party’s non-compete obligations between GE and Genworth
provided for under the Master Agreement.

 

15.5                        The
parties may sub-contract any of their obligations under this Agreement but a
sub-contracting party must ensure that its subcontractor complies with all of
that party’s obligations under this Agreement and the sub-contracting party
shall remain responsible at all times for the performance of such obligations.

 

16                                  CONFIDENTIALITY

 

16.1                        GELS
shall not, and shall cause its Affiliates and Representatives not to, directly
or indirectly, disclose, reveal, divulge or communicate to any person other
than its Representatives or its Affiliates who reasonably need to know such
information in providing services to any member of the FIGSL Group or use or
otherwise exploit for its own benefit or for the benefit of any third party,
any FIGSL Confidential Information.  For
purposes of this Clause, “FIGSL Confidential
Information” means any information, material or documents relating
to the businesses currently or formerly conducted, or proposed to be conducted,
by any member of the FIGSL Group furnished to or in possession of the GEIH
Group, irrespective of the form of communication, and all notes, analyses,
compilations, forecasts, data, translations, studies, memoranda or other
documents prepared by the GEIH Group or their respective officers, directors and
Affiliates, that contain or otherwise reflect such information, material or
documents.  FIGSL Confidential
Information does not include, and there shall be no obligation hereunder with
respect to, information that (i) is or becomes generally available to the
public, other than as a result of a disclosure by any member of the GEIH Group
in breach of this Clause, or (ii) GELS can demonstrate was or became available
to the GEIH Group from a source other than the FIGSL Group or their Affiliates
provided however that the source of such information was not known by the GEIH
Group to be bound by a confidentiality agreement with, or other contractual,
legal or fiduciary obligation of confidentiality to, FIGSL or any member of the
FIGSL Group with respect to such information.

 

16.2                        FIGSL
shall not, and shall cause its Affiliates and Representatives, not to, directly
or indirectly, disclose, reveal, divulge or communicate to any person other
than its Representatives or its Affiliates who reasonably need to know such
information in providing services to any member of the GEIH Group or use or
otherwise exploit for its own benefit or for the benefit of any third party,
any GEIH Confidential 

 

26

 

                                                Information.  For purposes of this Clause, “GEIH Confidential Information” means any
information, material or documents relating to the businesses currently or
formerly conducted, or proposed to be conducted, by any member of the GEIH
Group furnished to or in possession of the FIGSL Group, irrespective of the
form of communication, and all notes, analyses, compilations, forecasts, data,
translations, studies, memoranda or other documents prepared by the FIGSL Group
or their respective officers, directors and Affiliates, that contain or
otherwise reflect such information, material or documents.  GEIH Confidential Information does not
include, and there shall be no obligation hereunder with respect to,
information that (i) is or becomes generally available to the public, other
than as a result of a disclosure by any member of the FIGSL Group in breach of
this Clause, or (ii) FIGSL can demonstrate was or became available to the FIGSL
Group from a source other than the GEIH Group or their Affiliates; provided
however that the source of such information was not known by the FIGSL Group to
be bound by a confidentiality agreement with, or other contractual, legal or
fiduciary obligation of confidentiality to, the GEIH Group or any member of the
GEIH Group with respect to such information.

 

16.3                        If
either party is requested or required (by oral question, interrogatories,
requests for information or documents, subpoena, civil investigative demand or
similar process) by any governmental authority or pursuant to applicable law or
regulation to disclose or provide any FIGSL Confidential Information or GEIH
Confidential Information, as applicable, the entity or person receiving such
request or demand shall (where permitted by law) use all reasonable efforts to
provide the other party with written notice of such request or demand as
promptly as practicable under the circumstances so that such other party shall
have an opportunity to seek an appropriate protective order.  The party receiving such request or demand
agrees to take, and cause its representatives to take, at the requesting
party’s expense, all other reasonable steps necessary to obtain confidential
treatment by the recipient.  Subject to
the foregoing, the party that received such request or demand may thereafter
disclose or provide any FIGSL Confidential Information or GEIH Confidential
Information, as the case may be, to the extent required by such law (as so
advised by counsel) or regulation or by lawful process or such governmental
authority.

 

16.4                        Notwithstanding
anything to the contrary set forth in this Agreement or in any other agreement
to which the parties hereto are parties or by which they are bound, the
obligations of confidentiality contained herein and therein, as they relate to
the transactions contemplated by the Master Agreement, shall not apply to the
tax structure or tax treatment of such transactions, and each party hereto (and
any employee, Representative, or agent of any party thereto) may disclose to
any and all persons, without limitation of any kind (including opinions or
other tax analysis) that are provided to such party relating to such tax
treatment and tax structure; provided, however, that such
disclosure shall not include the name (or other identifying information not
relevant to the tax structure or tax treatment) of any person and shall not
include information for which nondisclosure is reasonably necessary in order to
comply with applicable securities laws.

 

17                                  TERMINATION

 

17.1                        Automatic
Termination

 

27

 

17.1.1              This Agreement
shall terminate automatically in relation to an individual Service on the
applicable Service Termination Date unless the Provider and Recipient agree to
extend the Service Termination Date in which case this Agreement shall
terminate in relation to that Service on the extended Service Termination Date.

 

17.1.2              This Agreement
shall terminate automatically on the date on which the last remaining Service
being provided under this Agreement shall terminate.

 

17.2                        Failure to
Perform

 

                                                If at any time during the Term a party
commits a breach of its material obligations hereunder and in the case of a
breach capable of remedy, fails to remedy such breach within sixty (60) working
days after receipt of notice from the other party to remedy the same, the other
party shall be entitled to terminate this Agreement with immediate effect by
written notice in respect of any or all of the Services provided or received by
the party in breach provided however that no Service may be terminated pursuant
to this Clause 17.2 until the parties have completed the dispute resolution
process set out in Clause 25.2.2 with respect to such Service and the Chief
Executive Officers of the parties have failed to resolve matters.

 

17.3                        By Mutual
Agreement

 

                                                The parties may from time to time agree in
writing to terminate any Service in whole but not in part, provided that any
such agreement to terminate a Service shall set out any terms and conditions of
termination.

 

17.4                        Insolvency

 

                                                If at any time during the Term a party:

 

17.4.1              passes a
resolution for voluntary winding up or a court of competent jurisdiction makes
an order that such party be wound up except for the purposes of bona fide
reconstruction while solvent; or

 

17.4.2              makes a
composition or arrangement with its creditors; or

 

17.4.3              has a receiver
or manager or provisional liquidator or administrator appointed over the whole
or a substantial part of its business or undertaking or circumstances arise
which would entitle a court of competent jurisdiction or a creditor to appoint
the same;  or

 

17.4.4              is unable to pay
its debts within the meaning of section 123 of the Insolvency Act 1986,

 

                                                then the other party shall be entitled to
terminate this Agreement with immediate effect by written notice.

 

17.5                        On Notice

 

17.5.1              Subject to
Clause 17.5.2, a Recipient shall be entitled to terminate this Agreement in
respect of any or all of the Services provided to it at its 

 

28

 

                                                absolute
discretion at any time by giving not less than sixty (60) days’ notice of its
intention to do so to the Provider (or such shorter period of time as is agreed
in writing by the parties).  Subject to
payment of the Service Charges payable under the Agreement which are due to the
Provider for the period up to the effective date of termination, a Recipient
shall have the right to require the relevant Provider to cease provision of the
Services during the sixty (60) day notice period and to instruct its
sub-contractors, if any, to do similarly.

 

17.5.2              Until the
transfer of the FACL Bonds (as defined in the Master Agreement) to an
appropriate GE Affiliate in accordance with Section 2.10(b) of the Master
Agreement, FIGSL shall not be entitled to terminate the bond administration
service to be provided to FACL (Schedule 1, Part A, Service No. 4) on
notice.  For the avoidance of doubt,
following such transfer, FACL will be entitled to terminate such service
pursuant to Clause 17.5.1 above.

 

17.6                        Force
Majeure Event of Longstanding Duration

 

                                                If any Force Majeure Event (as defined in
Clause 20) prevents a party from performing all of its obligations hereunder
for a period in excess of one (1) month, the other party may terminate this
Agreement in respect of the Services provided to or by the party so prevented with
immediate effect on written notice.

 

17.7                        Accrued
Rights

 

                                                Termination in accordance with this Clause
17 shall not prejudice or affect any right of action or remedy which shall have
accrued or shall thereafter accrue to either party.

 

18                                  THE PROVIDER’S OBLIGATIONS ON
TERMINATION

 

18.1                        In the
event that a Recipient requires a different organisation to take on the
provision of any or all of the Services provided to it by its Provider on the
termination of this Agreement in respect of such Services, the Provider shall
co-operate in the transfer, under any arrangements to be notified to it by the
Recipient, to effect a full and orderly transition of such Services to the
succeeding contractor by the Service Termination Date or thereafter and will
furnish any succeeding contractor with any information or documentation
required to perform such Services.

 

18.2                        The
Provider shall comply with all reasonable instructions from the Recipient with
regard to termination of the Services and take reasonable steps to mitigate any
costs which the Recipient will incur as a result of the termination.

 

18.3                        Upon
the written request of the Recipient, the Provider will, for a reasonable
period of time after the effective date of any termination of a Service
pursuant to Clause 17.2 above (which period shall not exceed the earlier of (i)
the applicable Service Termination Date as set out in Parts A and B of Schedule
1 or (ii) six months after the effective date of termination), continue to
provide the terminated Service on the terms of this Agreement (subject to the
timely payment, when due and payable, by the Recipient of all Service Charges
related to such terminated Service). 
The Service 

 

29

 

                                                Charges
for a Service provided pursuant to this Clause 18.3 shall be the same as were
in effect prior to the termination of such Service.

 

18.4                        In the
event that the Agreement is terminated as provided for herein:

 

18.4.1              each party shall
return to the other party all property belonging to the other party then in its
possession in good working order;  and

 

18.4.2              in the event the
Recipient has paid Service Charges in advance for Services not received as at
the date of termination, the Provider shall refund the Recipient such Service
Charges.

 

18.5                        In the
event that the Agreement is terminated for fundamental breach the Recipient
shall have the following rights (but not obligations) to require the Provider
to:

 

18.5.1              provide a
schedule of all equipment, labour, resources and subcontracts used exclusively
or primarily to provide the Services;

 

18.5.2              transfer any or
all assets which are exclusively or primarily used for the performance of the
Services to the Recipient at a fair market value which may be verified by an
independent valuer who is acceptable to both parties; and

 

18.5.3              assign any or
all software licences or other licences or agreements that are used exclusively
or primarily in the provision of the Services for the benefit of the Recipient,
where this is permitted by the terms of the licence.

 

18.6                        On
termination of this Agreement the Provider shall comply with its obligations to
return documentation and materials provided by the Recipient under Clause 12.1.

 

19                                  SURVIVAL OF OBLIGATIONS ON TERMINATION

 

                                                Following
the termination of this Agreement as provided for herein, no party shall have
any further right or obligation with respect to any other party except as set
forth in the following Clauses:

 

	
  Clause 1

  	
  —

  	
  Interpretation

  
	
  Clause 4.7

  	
   

  	
  Leases

  
	
  Clause 8

  	
  —

  	
  Warranties

  
	
  Clause 12

  	
  —

  	
  Intellectual Property

  
	
  Clause 13

  	
  —

  	
  Limitation of Liability and Indemnities

  
	
  Clause 14

  	
   

  	
  Conduct of Claims

  
	
  Clause 16

  	
  —

  	
  Confidentiality

  
	
  Clause 18

  	
  —

  	
  The Provider’s Obligations on Termination

  
	
  Clause 25

  	
  —

  	
  Applicable Law and Dispute Resolution

  
	
  Clause 26

  	
  —

  	
  Data Protection

  
	
  Clause 27

  	
  —

  	
  Further Assurance

  
	
  Clause 29

  	
  —

  	
  Notices

  

 

30

 

20                                  FORCE MAJEURE/BUSINESS CONTINUITY

 

20.1                        Each
party shall maintain and comply with a reasonable disaster recovery, crisis
management and business continuity plan designed to help ensure that it can
continue to provide the Services in accordance with this Agreement in the event
of a disaster or other significant event that might otherwise impact its
operations.  Each party shall ensure
that any disaster recovery, crisis management and business continuity plan
shall comply with any relevant regulatory requirements, whether of the FSA or
any other regulator. Upon the written request of a Recipient, a Provider shall
(i) disclose to the Recipient the Provider’s disaster recovery, crisis
management and business continuity plans and procedures applicable to a Service
and (ii) permit the Recipient to participate in testing of such disaster
recovery, crisis management and business continuity plans and procedures, in
each case so that the Recipient may assess such plans and procedures and
develop or modify its own such plans and procedures in connection with the
Services as the Recipient reasonably deems necessary.

 

20.2                        Neither
party hereto (or any person acting on its behalf) shall have any liability or
responsibility for failure to fulfil any obligation (other than a payment
obligation) under this Agreement so long as and to the extent to which the
fulfilment of such obligation is prevented, frustrated, hindered or delayed as
a consequence of a Force Majeure Event, provided that such party shall have
first exhausted, to the extent commercially reasonably to do so, the procedures
described in its disaster recovery, crisis management, and business continuity plan.

 

20.3                        A
party claiming the benefit of this provision shall, as soon as reasonably
practicable after the occurrence of any such event:  (i) notify the other party of the nature and extent of any such
Force Majeure Event and (ii) use all reasonable endeavours to remove any such
causes and resume performance under this Agreement as soon as feasible.

 

20.4                        For
the purposes of this Clause, a “Force Majeure
Event” means, with respect to a party, an event beyond the control
of such party (or any person acting on its behalf), which by its nature could
not have been foreseen by such party (or such person), or, if it could have
been foreseen, was unavoidable, and includes, without limitation, acts of God,
storms, floods, riots, fires, sabotage, civil commotion or civil unrest,
interference by civil or military authorities, acts of war (declared or
undeclared) or armed hostilities or other national or international calamity or
one or more acts of terrorism or failure of energy sources.

 

21                                  INCONSISTENCY/PREVAILING AGREEMENT

 

                                                In the event of an inconsistency between any
of the provisions of this Agreement and the Global Transition Services
Agreement, the Master Agreement or any Continuing Agreement, the provisions of
this Agreement shall prevail as between the parties in respect of the matters
dealt with hereunder.

 

22                                  MASTER AGREEMENT

 

                                                The parties hereby agree that
notwithstanding the provisions of Section 2.4(a) of the Master Agreement, any
intercompany accounts payable or accounts receivable outstanding between the
parties’ Groups as at the Closing Date shall continue to be 

 

31

 

                                                outstanding following that date provided
however that, subject to the provisions of the European Tax Matters Agreement,
the parties shall settle all such intercompany accounts payable or accounts
receivable within 60 days following the Closing Date.

 

23                                  REGULATORY APPROVAL AND COMPLIANCE

 

                                                Each party shall be responsible for its own
compliance with any and all laws and requirements of any regulator (whether in
the UK or elsewhere) applicable to its performance under this Agreement;
provided, however, that each party shall at the request of the other party and
subject to reimbursement of out-of-pocket expenses by the requesting party,
cooperate and provide one another with all reasonably requested assistance
(including, without limitation, the execution of documents and the provision of
relevant information) required by the requesting party to ensure compliance
with all applicable laws and regulations or in connection with any regulatory
action, inquiry or examination.

 

24                                  SEVERABILITY

 

                                                If
any provision of the Agreement is held invalid, illegal or unenforceable for
any reason, such provision shall be severed and the remainder of the provisions
hereof shall continue in full force and effect as if the Agreement had been
executed with the invalid provision eliminated.  In the event a provision hereof is severed, the parties shall
negotiate in good faith to modify this Agreement in order to effect the
original intent of the parties as closely as possible and enable the
transactions contemplated by the parties to be consummated as originally
contemplated as far as is possible.

 

25                                  APPLICABLE LAW AND DISPUTE RESOLUTION

 

25.1                        The
Agreement shall be governed by and construed in accordance with the law of
England and Wales.

 

25.2                        In the
event of any dispute, controversy or claim arising out of or relating to this
Agreement or the breach, termination or validity hereof or thereof (a “Dispute”), the parties shall follow the
dispute resolution procedure set out in this Clause:

 

25.2.1              upon a party
serving written notice requesting that the parties attempt to resolve a Dispute
(“Notice”) the Service Managers of
the parties shall attempt in good faith to resolve such Dispute;

 

25.2.2              if the Service
Managers are for any reason unable to resolve a Dispute within 30 days of
delivery of a Notice, the Dispute shall be referred to the Chief Executive
Officers of FIGSL and GELS who shall attempt in good faith to resolve such
dispute; and

 

25.2.3              if the Chief
Executive Officers of FIGSL and GELS are for any reason unable to resolve a
Dispute within 45 days of such Dispute being referred to them for resolution
then either party may submit the Dispute for resolution by mediation pursuant
to the procedures of the Centre for Effective Dispute Resolution as then in
effect.  The mediation shall be heard by
a mediator appointed by the parties but if they cannot agree upon a mediator
within 14 days of either of them submitting the Dispute to mediation, such
mediator 

 

32

 

                                                shall
be appointed by the Centre for Effective Dispute Resolution.  Either party may at the commencement of
mediation ask the mediator to provide an evaluation of the Dispute and the
parties’ relative positions;

 

25.2.4              If a Dispute is
not resolved by mediation within 30 days of the selection of a mediator (unless
the mediator chooses to withdraw sooner), then either party may refer the
Dispute to be settled and finally resolved by arbitration in accordance with
the UNCITRAL Arbitration Rules as in force at the time of the election (the “Rules”) by a panel of three arbitrators (or
a sole arbitrator as the parties may agree) appointed in accordance with the
Rules.

 

25.3                        The
seat of any reference to arbitration shall be London, England, the procedural
law of any reference to arbitration shall be English law and the language of
any arbitration proceedings shall be English.

 

25.4                        The
appointing authority for the purposes set forth in Article 7(2) of the Rules
shall be the London Court of International Arbitration.

 

25.5                        Any
right of appeal or reference of points of law to the courts is hereby waived,
to the extent that such waiver can be validly made.

 

25.6                        The
arbitral tribunal shall have the power to order on a provisional basis any
relief which it would have power to grant in a final award.

 

26                                  DATA PROTECTION

 

                                                Each
Provider agrees that it is registered in accordance with the Data Protection
Act 1998 so far as is necessary to provide the Services and agrees to maintain
such registrations in full force and effect. 
Each Provider undertakes that it will comply and agrees to ensure that
its sub-contractors will comply with its appropriate obligations under all data
protection legislation in force from time to time.

 

27                                  FURTHER ASSURANCE

 

                                                Each
party agrees at its own expense to execute such documents and generally do
everything further that may be necessary to fulfil its obligations under and
achieve the objectives of this Agreement.

 

28                                  WAIVER OF REMEDIES

 

                                                No
waiver of any rights arising under this Agreement shall be effective unless
agreed (where possible in writing and signed by a duly authorised signatory) by
the party against whom the waiver is to be enforced.  No failure or delay by a party in exercising any right, power or
remedy under this Agreement (except as expressly provided herein) shall operate
as a waiver of any such right, power or remedy.

 

29                                  NOTICES

 

29.1                        Any
notice, invoice or other communication which a party is required by the
Agreement to be served on the other party shall be sufficiently served if
addressed to the Company Secretary of the other party and sent to the other
party at its specified address as follows:

 

33

 

29.1.1              by hand;

 

29.1.2              by registered or
first class post or recorded delivery; or

 

29.1.3              by facsimile
transmission confirmed by registered or first class post or recorded delivery.

 

                                                Notices sent by registered post or first
class post or recorded delivery shall be deemed to be served three (3) working
days following the day of posting. 
Notices sent by facsimile transmission shall be deemed to be served on
the day of transmission if transmitted before 4:00 p.m. on a working day, but
otherwise on the next following working day. 
In all other cases, notices are deemed to be served on the day when they
are actually received.  All notices,
invoices and other communications served hereunder shall expressly refer to the
Clause or sub-Clause pursuant to which they are served.

 

29.2                        For
the purposes of this Clause 29 the authorised address of each party shall be
the address set out at the head of this Agreement or such other address (and
details) as that party may notify to the other party from time to time in
accordance with the requirements of this Clause 29.

 

30                                  NO PARTNERSHIP

 

                                                Nothing in the Agreement is intended or
shall be construed to create a partnership between the parties or unless
expressly stated, a relationship of agency. 
Unless otherwise authorised, neither party shall have any authority to
act or make representations on behalf of the other party, and nothing herein
shall impose any liability on either party in respect of any liability incurred
by the other party to a third party.

 

31                                  ENTIRE AGREEMENT

 

                                                This
Agreement together with the Schedule hereto contains the entire agreement
between the parties and supersedes any previous understandings, commitments,
contracts or representations whatsoever whether oral or written, except in
respect of any fraudulent representation made by any party.  This Agreement shall not be varied except by
an instrument in writing of date even herewith or subsequent hereto executed by
all parties by their duly authorised representatives.

 

32                                  RIGHTS OF THIRD PARTIES

 

                                                With the exception of any Recipient Group
Company which is entitled to receive Services hereunder and any person
expressly indemnified hereunder by a party to this Agreement, this Agreement is
for the sole benefit of the parties to this Agreement and nothing in this
Agreement, is intended to or shall confer upon any other person or entity any
legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement. A person who is not a party to this Agreement has no
rights under the Contracts (Rights of Third Parties) Act 1999 or otherwise to
enforce any term of this Agreement but this does not affect any right or remedy
of a third party which exists or is available apart from that Act.

 

34

 

33                                  COUNTERPARTS

 

                                                This Agreement may be executed in any number
of counterparts, each of which when executed and delivered shall constitute an
original of this Agreement, but all the counterparts shall together constitute
one and the same agreement.  No
counterpart shall be effective until each party has executed at least one part
or counterpart.

 

IN WITNESS WHEREOF
this Agreement was executed by the parties hereto on the date set out on Page
1.

 

 

35

 

SCHEDULE 1

SERVICES

PART A — GEIH SERVICES

 

 

 

 

36

 

PART B — FIGSL
SERVICES

 

 

 

 

37

 

PART C

SECTION I — LEASES TO
BE TRANSFERRED BY FIGSL TO GELS

 

	
  Date

  	
   

  	
  Parties

  	
   

  	
  Premises

  
	
  1 May 1995

  	
   

  	
  1.             Wimgrove Property
  Trading Limited

  2.             FIGSL

  3.             Diplema 115 Limited

  	
   

  	
  Vantage West, Great West Road, Brentford

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23 March 1990

  	
   

  	
  1.             The Medical
  Sickness Annuity and Life Assurance Society Limited

  2.             Frogmore
  Developments Limited

  3.             Frogmore Estates
  plc

  	
   

  	
  Oliver House, 19/23 Windmill Hill, Enfield

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9 May 1975

  	
   

  	
  1.             The Churchbury
  Investment Company Limited

  2.             Hartley Cooper
  Group Services Limited

  3.             Hartley Cooper
  (Holdings) Limited

  	
   

  	
  Wenlock House, Eaton Road, Enfield

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18 November 2003

  	
   

  	
  1.             Abbey Business
  Centre Limited

  2.             FIGSL

  	
   

  	
  Suite 5:8 The Beacon, 176 St Vincent Street, Glasgow

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.             GE Pensions Limited

  2.             GE Insurance
  Holdings Limited 3.FIGSL

  	
   

  	
  Radcliffe House, Keynes House and Pease House, Old Charlton Road,
  Priory Park, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.             GE Pensions Limited

  2.             FIGSL

  3.             GE Insurance
  Holdings Limited

  	
   

  	
  25 Car Parking Spaces at Priory Park, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.             GE Pensions Limited

  2.             FIGSL

  	
   

  	
  88 Car Parking Spaces in the Woodland Car Park at Hitchin Conference
  & Banqueting Centre, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  l 2002

  	
   

  	
  1.             The
  Chartridge Conference Company Limited

  2.             National
  Mutual Life Assurance Society

  	
   

  	
  The Remote Computer Room,
  Priory Park, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29 September 1988

  	
   

  	
  1.             Britel Fund
  Trustees Limited

  2.             Consolidated
  Insurance Group Limited

  	
   

  	
  Penne House, Sheen Road, Richmond

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20 June 1988

  	
   

  	
  1.             Currys Group plc

  2.             FIGSL

  	
   

  	
  Unit 6, Mowlem Trading Estate, Leeside Road, Tottenham, London N17

  

 

38

 

SECTION II —
LEASE/LICENCE TO BE GRANTED BY GELS TO FIGSL

 

	
  Document

  	
   

  	
  Premises

  
	
  Underlease

  	
   

  	
  Ground Floor and the 1st and 2nd Floors, Vantage West, Great West
  Road, Brentford

  
	
  Licence Agreement

  	
   

  	
  Allocated storage space, Unit 6, Mowlem Trading Estate, Leeside Road,
  Tottenham, London N17

  

 

39

 

	
  SIGNED by

  	
  )

  
	
   

  	
  )

  
	
  for and on behalf of

  	
  )

  
	
  FINANCIAL INSURANCE

  	
  )

  
	
  GROUP SERVICES

  	
  )

  
	
  LIMITED

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  
	
   

  	
  )

  
	
  for and on behalf of

  	
  )

  
	
  GE LIFE SERVICES

  	
  )

  
	
  LIMITED

  	
  )

  

 

40Exhibit
10.31

 

CONFIDENTIAL TREATMENT REQUESTED

 

INFORMATION FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED IS OMITTED AND NOTED WTH “**”.  AN UNREDACTED VERSION OF THIS DOCUMENT HAS
ALSO BEEN PROVIDED TO THE SECURITIES AND EXCHANGE COMMISSION.

 

 

AMENDED AND RESTATED

INVESTMENT MANAGEMENT AND SERVICES
AGREEMENT

 

 

BETWEEN

 

 

GENERAL ELECTRIC CAPITAL ASSURANCE
COMPANY

 

 

AND

 

 

GE ASSET MANAGEMENT INCORPORATED

 

 

DATED AS OF
              
    2004

 

 

THIS AMENDED AND RESTATED INVESTMENT
MANAGEMENT AND SERVICES AGREEMENT (the “Agreement”) is made
and entered into as of the      day of
                      ,
2004 (the “Effective Date”), by and between GENERAL ELECTRIC CAPITAL ASSURANCE
COMPANY, an insurance company domiciled in the State of Delaware (“Client”),
and GE ASSET MANAGEMENT INCORPORATED, a Delaware corporation (“Manager”).

 

RECITALS

 

WHEREAS, Client and
Manager previously entered into an investment management and services agreement
(the “Original Agreement”) dated as of May 1, 2002 pursuant to which Client
retained Manager to provide investment management and other services for
Client’s investment portfolio and Manager agreed to provide those services on
the terms and conditions contained in the Original Agreement; and

 

WHEREAS, Client and
Manager now desire to amend and restate the Original Agreement in its entirety
as more specifically provided below.

 

NOW, THEREFORE, in consideration of the
promises and mutual covenants contained herein, Client and Manager agree as
follows:

 

ARTICLE I

DEFINITIONS AND USAGE

 

1.1                               Definitions.  The following capitalized terms, as used in
this Agreement, have the following meanings:

 

“Account”
shall have the meaning set forth in Section 2.1.

 

“Account
Assets” means the assets and any unrealized income, profit or gain (or loss)
from, those assets in the Account from time to time.  Unless specifically described otherwise, Account Assets shall be
valued at market.

 

“Actual
Costs” shall have the meaning set forth in Article IV(b).

 

“Affiliate”
of a Person means a Person who, directly or indirectly through one or more
intermediaries, Controls or is Controlled by, or is under common Control with,
such Person.

 

“Applicable
Law” means, as applicable to each of the parties hereto, any domestic or
foreign federal, state or local statute, law, ordinance or code (including,
with respect to Client, the Delaware insurance code and, with respect to
Manager, the Investment Advisers Act), any rules, regulations, administrative
interpretations or orders issued by any Governmental Authority (including with
respect to Client, the Insurance Authority 

 

2

 

and, with respect to Manager, the SEC) pursuant to any
of the foregoing, and any order, writ, injunction, directive, judgment or
decree of a court of competent jurisdiction applicable to the parties hereto.

 

“Board”
means the Board of Directors of Client as the same may be elected from time to
time by the shareholders of Client.

 

“Budgeted
Costs” shall have the meaning set forth in Article IV(a).

 

“Control”
means, as to any Person,
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise.  The terms “Controlled”,
“under common Control with” and “Controlling” shall have correlative meanings.

 

“Control
Event” means, with respect to either party, the occurrence of: (a) any event
which results in the Control of the party transferring from a Person that was
an Affiliate immediately prior to the occurrence of such event to a Person that
is not an Affiliate; (b) the sale or transfer of substantially all of a party’s
assets to a Person that is not an Affiliate; or (c) the merger or consolidation
of a party with or into another Person and the surviving Person is not an
Affiliate.

 

“CPR”
shall have the meaning set forth in Section 8.3.

 

“CPR
Arbitration Rules” shall have the meaning set forth in Section 8.4(a).

 

“Custodian”
shall have the meaning set forth in Section 2.6.

 

“Directed
Brokers” shall have the meaning set forth in Section 2.7(b)

 

“Directed
Trades” shall have the meaning set forth in Section 2.7(b).

 

“Dispute”
shall have the meaning set forth in Section 8.1(a).

 

“Effective
Date” shall have the meaning set forth in the introductory paragraph.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“First
Extension” shall have the meaning set forth in Article III(a).

 

“GAAP”
means generally accepted accounting principles in effect, from time to time, in
the United States.

 

“GE”
means General Electric Company, a New York corporation.

 

“GE
Change” shall have the meaning set forth in Article III(a).

 

3

 

“Governmental
Authority” means the SEC, the Insurance Authority or any court, tribunal,
arbitrator, authority, agency, commission, official or other instrumentality of
the United States or any federal, national, state, municipal, county, city or
other political subdivision.

 

“Initial
Notice” shall have the meaning set forth in Section 8.2.

 

“Initial
Termination Date” shall have the meaning set forth in Article III(a).

 

“Insurance
Authority” means the Delaware Department of Insurance.

 

“Investment
Advisers Act” means the Investment Advisers Act of 1940, as amended.

 

“Investment
Committee” means a committee directed by the Board to oversee Client’s
investment activities.

 

“Investment
Guidelines” shall mean certain guidelines and procedures concerning the
investment and management of the Account Assets (and which may be specific as
to any particular Account) as may be adopted from time to time by the Board or
the Investment Committee all of which shall be compliant in all respects and at
all times with all Applicable Law, and as may from time to time be modified or
amended by the Board or the Investment Committee; provided that any such
modification or amendment shall be provided by Client to Manager in writing in
advance.

 

“Investment
Objectives” shall mean any investment objectives set forth in the Investment
Guidelines or otherwise communicated in writing from time to time by Client to
Manager.

 

“Investment
Reports” means statements, reports, analyses, data, summaries, calculations,
formulas and the like concerning Account Assets, investment strategy, security
selection and performance results, whether in written, oral or electronic form.

 

“Management
Percentage” shall have the meaning set forth in Article IV(a).

 

“Original
Agreement” shall have the meaning set forth in the Recitals.

 

“Person”
means an individual, corporation, partnership, limited liability company,
association, trust or any other entity or organization, including governmental
or political subdivision or an agency or instrumentality thereof.

 

“Proposal”
shall have the meaning set forth in Article IV(c).

 

“Records”
shall have the meaning set forth in Section 2.9.

 

4

 

“Regulatory
Change” shall have the meaning set forth in Article III(a).

 

“Remaining
Term” shall have the meaning set forth in Article III(a).

 

“Representatives”
means, as applicable, Client’s or Manager’s directors, officers, employees,
accountants and legal and financial advisors.

 

“Response”
shall have the meaning set forth in Section 8.2.

 

“SAP”
means statutory accounting procedures and principles prescribed or permitted by
Applicable Law.

 

“Second
Extension” shall have the meaning set forth in Article III(a).

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC
Termination” shall have the meaning set forth in Article III(a).

 

“Taxes”
shall have the meaning set forth in Section 7.18(b).

 

“True-up”
shall have the meaning set forth in Article IV(b).

 

1.2                               Headings.  The headings contained in this Agreement are
for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

ARTICLE II

SERVICES

 

2.1                               Investment
Management.  With respect to
accounts and/or investment portfolios designated by Client from time to time in
writing and which may include, without limitation, an account established to
hold assets of Client placed into a trust or other special purpose vehicle
utilized to secure performance of Client’s obligations (collectively, the
“Account”), Manager will provide continuous, discretionary investment
management services to Client, which services may include (but not be limited
to) the following:

 

(a)                                  Research
and identify investment opportunities;

 

(b)                                 Open
(or direct the Custodian to open) and maintain brokerage accounts for
securities and other property for and in the name of Client and execute for
Client, as its agent and attorney-in-fact, standard customer agreements;

 

(c)                                  Invest
Account Assets in income earning investments, such as bonds and cash
equivalents, and such other investments as are permitted by Applicable Law,
subject to any restrictions or limitations imposed by the Investment
Guidelines, 

 

5

 

the Board or the Investment Committee, in each case,
as communicated to Manager in writing;

 

(d)                                 Exercise,
on behalf of Client or direct the exercise by the Custodian where appropriate,
all rights and remedies conferred by any investment including, without
limitation, voting rights (as discussed more fully in Section 2.8 below) with
respect to the Account Assets;

 

(e)                                  Sell
or dispose of investments as appropriate, subject to any restrictions or
limitations imposed by the Investment Guidelines, the Board or the Investment
Committee; provided, however, that the proceeds from any such sales will be
deposited in the relevant Account on the date of receipt;

 

(f)                                    Assist
in developing an overall investment strategy for the Account Assets; provided
that in all cases Client shall have sole responsibility for approving and
adopting any such strategy;

 

(g)                                 Conduct
inspections, valuations, projections or other due diligence activities with
respect to investments;

 

(h)                                 Negotiate
the terms and conditions of investments and review and participate in the
preparation of any documentation relating to such investments and execute for
Client, as its agent and attorney-in-fact, such documentation;

 

(i)                                     Keep
the Account under review and confer at regular intervals with Client regarding
the investment and management of the Account;

 

(j)                                     Prepare
a summary of all purchases and sales of investments with respect to the Account
for approval and ratification by the Board or the Investment Committee not less
than quarterly and more frequently if the Board or the Investment Committee so
requests;

 

(k)                                  Assist
with cash management and cash flow forecasting;

 

(l)                                     Participate
in meetings of the Board, the Investment Committee and such other meetings with
Client Representatives as Client may request from time to time;

 

(m)                               Provide
Client, in a timely manner, with such reports, documentation and information as
Client may reasonably request in connection with monthly, quarterly and annual
closing activities;

 

(n)                                 Provide
Client with such additional investment management services relating to the
Account as Client may reasonably request from time to time; and

 

(o)                                 Provide
other support and analysis concerning investments, which, by way of example,
may include due diligence in connection with potential business 

 

6

 

acquisitions or dispositions by Client and its
Affiliates, reinsurance transactions and capital markets structures; provided,
however, such support and analysis shall be similar in scope to that which
Manager has previously provided to Client and shall be consistent with the
range of services provided in the normal course by Manager under this Agreement.

 

2.2                               [Reserved]

 

2.3                               Appointment of Manager.  Client appoints Manager and Manager
accepts appointment by Client as investment adviser for the Account with full
discretion subject to the terms of this Agreement; provided that, and without
limitation to any right or remedy of Client under this Agreement, the ultimate
control of Client’s accounts and/or investment portfolios shall remain with the
Board, and nothing contained in this Agreement shall be deemed to transfer or
delegate such control to Manager.

 

2.4                               Non-Exclusivity.  Manager shall perform its services
described in this Agreement on a nonexclusive basis.  Client shall be free to retain at any time one or more additional
investment advisers to perform similar services in connection with any of its
assets.  Manager may give advice and
take action with respect to other clients that differs from advice given or
action taken with respect to the Account, so long as Manager attempts in good
faith to allocate investment opportunities to Client and the Account over a
period of time on a fair and equitable basis compared to investment
opportunities extended to other clients. 
Manager is not obligated to initiate the purchase or sale of any
security for Client or the Account that Manager, or its Affiliates or the
respective Representatives of either of them, may purchase or sell for its or
their own accounts or for the account of any other client if, in the reasonable
opinion of Manager, such transaction or investment appears unsuitable or
undesirable for Client or the Account.

 

2.5                               Covenants
of Manager.

 

(a)                                  Manager
shall discharge its duties with the care, skill, prudence and diligence under
the circumstances then prevailing that a prudent person, acting in a like
capacity and familiar with such matters should use in the conduct of an
enterprise of a like character and with like aims.   Further, Manager shall use the same skill and care in the
management of the Account and other duties hereunder as it uses in the administration
of other similar accounts for which it has investment responsibility.

 

(b)                                 Manager
shall use its commercially reasonable efforts to achieve the Investment
Objectives.  Notwithstanding the
foregoing, Client understands that Manager makes no representation regarding
its ability to achieve any Investment Objective and Manager shall have no
liability hereunder for such failure provided it has otherwise complied with
the terms of this Agreement.

 

(c)                                  Manager
shall notify Client in writing within seven (7) business days of:  (i) Manager’s failure or inability to comply
with any material term or provision of 

 

7

 

this Agreement; (ii) any change in Manager’s senior
officers who exercise investment discretion in respect of the Account; (iii)
any change in Manager’s condition, financial or otherwise, or in its business
or any other change which is reasonably likely to be materially adverse to
Manager, the Account or the Account Assets; (iv) the occurrence of any
happening or event which is reasonably likely to cause or has caused any breach
of any representation or warranty made by Manager below and the nature and
scope of the breach; (v) any threatened or actual material adverse change in
the Account or nature of the Account Assets of which it is aware; (vi) if it is
unable to comply with the Investment Guidelines including any change resulting
from an amendment to such Investment Guidelines or any instruction or direction
given by Client pursuant to this Agreement; or (vii) if an instruction, direction
or guideline given by Client is:  (A) in
Manager’s opinion, inconsistent with the Investment Guidelines; or (B) in
Manager’s opinion, ambiguous or unclear in any respect, and the instruction,
direction or guideline must be clarified by Client.

 

(d)                                 In
the performance of its duties and obligations under this Agreement, Manager
shall act in conformity with the Investment Guidelines or other written
instructions of the Board, the Investment Committee or Representatives of
Client, in each case as supplied to Manager by Client, and all Applicable
Law.  At Client’s request, Manager shall
provide to Client certificates or other evidence of compliance relating to any
Applicable Law or other legal requirements, in each case in form and substance
satisfactory to Client.

 

(e)                                  Manager
shall at all times maintain sufficient and knowledgeable personnel to perform
the services under this Agreement.

 

(f)                                    Manager
shall inform Client of, and comply with, Manager’s policy regarding the receipt
by Manager of all services received in connection with soft dollar commissions
in relation to the investment or management of the Account.

 

(g)                                 Manager
shall account to Client for any monetary benefits, fees or commissions received
by Manager or any Affiliate of Manager in relation to the investment of the
Account other than benefits or amounts permitted to be received in accordance
with Section 2.7 and Article IV.

 

(h)                                 Manager
shall exercise due care in selecting, appointing and reviewing the performance
of any agent of Manager in connection with the Account or any broker engaged by
Manager.

 

(i)                                     Except
as otherwise disclosed in this Agreement, Manager does not have and will not
have any interest, direct or indirect, which would conflict in any manner with
its obligations under this Agreement.

 

2.6                               Custodial
Matters.  All transactions authorized by this
Agreement with respect to the Account will be consummated through a custodian
designated in writing by Client (the 

 

8

 

“Custodian”). 
Manager (who shall not act as Custodian) may issue such instructions to
the Custodian as may be appropriate in connection with the settlement of
transactions initiated by Manager under this Agreement, either in writing or
sent electronically or orally and confirmed in writing or electronically as
soon as practical thereafter.  Manager
shall instruct all brokers, dealers or other persons executing orders on behalf
of the Account to forward to the Custodian copies of all brokerage or dealer
confirmations promptly after execution of all transactions.  Manager shall not be authorized to take
custody or possession of any Account Assets. 
Manager shall not be responsible for the fees of the Custodian or for
any loss incurred by reason of any act or omission of the Custodian. Client
may, at any time in its sole discretion, appoint one or more additional or
substitute custodians to hold the Account Assets.  Manager will be advised of the appointment of any substitute
custodians in writing by Client.

 

2.7                               Brokerage
Matters.

 

(a)                                  Manager
may place orders directly with brokers or dealers for executing transactions
for the Account.  In selecting brokers
or dealers, Manager is authorized to use its discretion and may take into
account such relevant factors as (i) total transaction price (including
commissions, as a component of price); (ii) the broker’s facilities,
reliability and financial responsibility; (iii) the ability of the broker to
effect the securities transaction, particularly with regard to such aspects as
timing, size and execution of orders; and (iv) the research services provided
by such broker to Manager (either directly or by arrangement with third
parties) which may enhance Manager’s general investment decision-making
process, notwithstanding that the Account may not be the direct or exclusive
beneficiary of such services. 
Specifically, Manager may pay a broker a commission in excess of the
amount another broker would have charged for effecting such transaction, so
long as, in the good faith judgment of Manager, the amount of the commission is
reasonable in relation to the value of the brokerage and research services
provided by such broker, viewed in terms of that particular transaction or
Manager’s overall investment management business.  Client shall be responsible for the total transaction costs,
including all reasonable broker’s commissions with respect to transactions of
the Account and all taxes or government fees, domestic or foreign, attributable
to such transactions.  Manager may enter
into arrangements with brokers to open “average price” accounts wherein orders
during a trading day are placed on behalf of Client and other clients and are
allocated (along with an equivalent portion of the expenses related thereto)
among the Account and the accounts of the other clients using an average
price.  Manager may execute any and all
transactions for the Account with or through brokers or dealers that are
Affiliates of Manager so long as such transactions are executed on terms no
less favorable than those available from an unaffiliated broker or dealer.

 

(b)                                 Client
may direct Manager to effect securities transactions for the Account (“Directed
Trades”) through broker-dealer(s) identified by Client in writing (“Directed
Brokers”) in a separate agreement acceptable to Manager.   Client acknowledges that: (i) Directed
Trades may not enable Client to obtain the cost 

 

9

 

and execution benefits,
if any, of participating in aggregated trades with other clients; and (ii) Directed
Trades may be executed before or after Manager effects the execution of
transactions for other accounts with the result that Client may pay or receive,
as the case may be, a different price for securities which were also the
subject of trades by Manager for its other clients.  Client represents that Directed Trades are not prohibited by
Applicable Law or Client’s governing documents.

 

2.8                               Exercise
of Rights.  Subject to the
Investment Guidelines and any other written instructions of the Board, the Investment
Committee or Representatives of the Client provided to Manager, Manager shall
use its best judgment to exercise or instruct the Custodian to exercise, in a
manner that Manager deems to be in the best interests of Client, all voting
rights, consent rights, subscription rights, conversion rights or any other
rights arising in connection with any investment in the Account.  Manager shall determine whether to consent
to modifications of any documents governing securities held in the
Account.  Unless provided herein or
requested in writing by Client, Manager need not forward any proxy material,
consent solicitations or similar material to Client.

 

2.9                               Recordkeeping
and Reports; Review and Inspection.

 

(a)                                  Manager
shall maintain all records, memoranda, instructions or authorizations
(collectively, “Records”) relating to the acquisition or disposition of
securities or other investments in the Account as required by the Investment
Advisers Act.  Such Records will be the
property of Client.  On a timely basis,
Manager shall make available to Client, at its administrative offices or such
other location as may be designated by Client, copies or originals of such
Records upon reasonable request.

 

(b)                                 All
Records, both internal and external with third parties, to the extent within
the control of Manager, will clearly specify the ownership interest of Client
in the Account Assets.

 

(c)                                  Records
relating solely to the Account and/or the Account Assets that are not
maintained physically on Client’s premises or in Client’s care, custody and
control shall be subject to review and audit at any time by Client, its
Representatives, the Insurance Authority and any other Governmental Authority,
or any other entity designated by Client, and Manager shall cooperate with and
provide reasonable assistance to any such Person, including any auditor
appointed by Client to conduct an audit of the Account.  Such Records shall be maintained for the
time periods and in a format required by the Investment Advisers Act.  Manager shall notify Client prior to
destruction of such Records (in order that Client may request transfer of such
Records to Client as an alternative to destruction).

 

(d)                                 Manager
shall provide to Client such other documents and information pertaining to this
Agreement, the Account and/or Account Assets at such times as Client 

 

10

 

may reasonably request including, but not limited to,
information required to prepare reports to the Insurance Authority or any other
entity designated by Client or as may be required in order for Client to comply
with GAAP, SAP or Applicable Law.

 

(e)                                  Manager
will cooperate fully with Client with respect to unsettled or unreconciled
transactions and daily transmission of trading activity.

 

2.10                        Information
Furnished to Manager.  Client
shall furnish to Manager in a timely manner any information that Manager may
reasonably request with respect to the services performed under this
Agreement.  In determining the
requirements of Applicable Law, Manager may rely on an interpretation of law by
legal counsel to Client.

 

ARTICLE III

TERM AND TERMINATION

 

(a)                                  This
Agreement shall continue in effect for a term beginning on the Effective Date
and ending on the third anniversary of the Effective Date (the “Initial
Termination Date”).  Not less than one
(1) year prior to the Initial Termination Date, Client shall notify Manager in
writing of its intent to terminate this Agreement on the Initial Termination
Date or to extend this Agreement for an additional one (1) year term (the
“First Extension”).  If Client exercises
the First Extension, Client shall, no later than the Initial Termination Date,
notify Manager in writing of its intent to terminate this Agreement at the end
of the First Extension or to further extend this Agreement for an additional
one (1) year term (the “Second Extension”). 
This Agreement may only be terminated by Client (i) for any reason with
one (1) year prior written notice (which notice shall specify the effective
date of termination) to the Manager or (ii) immediately (A) for cause  (“cause” being understood as any fraud or
willful misconduct by Manager in managing the Account, Manager’s material
breach of this Agreement, materially deficient investment performance with
respect to the Account or Manager’s material or repeated non-compliance in
managing the Account in accordance with the Investment Guidelines or Investment
Objectives; provided that, except with respect to Manager’s fraud or willful
misconduct, Manager shall have thirty (30) days from notice of such material
breach or non-compliance to cure the material breach or non-compliance to the
reasonable satisfaction of Client in which case “cause” shall not be deemed to
have occurred) or (B) upon a Control Event with respect to Client.  If Client terminates this Agreement with
less than one (1) year prior notice and if such termination is not for cause or
due to a Control Event with respect to Client, Client will then continue to pay
to Manager the lesser of (1) the unpaid balance of the Budgeted Costs (as
defined in Article IV(a)) for the remaining portion of the calendar year plus
the pro-rata portion of the Budgeted Costs for the following calendar year but
only for the number of days which when added to the time elapsed since the giving
of such notice would equal one (1) year (such remaining period, the “Remaining
Term”) or (2) the Actual Costs incurred by Manager for providing services under
this Agreement for the Remaining Term 

 

11

 

(in each case as adjusted to reflect the pro-rata
portion of the True-up (as defined below) from the prior year and entire
True-up for the following year, or portion thereof, if applicable).  Manager shall use reasonable efforts to
mitigate the incurrence of such costs and expenses.  This Agreement may be terminated by Manager if the SEC suspends
or withdraws Manager’s investment adviser registration  (“SEC Termination”) or a change in
Applicable Law occurs that would materially and adversely affect Manager’s
ability to provide services hereunder (“Regulatory Change”).  Manager shall provide prompt written notice
of a SEC Termination or Regulatory Change to Client and Manager shall use best
efforts to extend the termination date for this Agreement to the maximum date
consistent with the requirements of the SEC or the date of implementation of
the Regulatory Change, as applicable, and in a manner consistent with
subsection (d) of this Article III. 
This Agreement may be terminated by Manager (i) upon a Control Event
with respect to Manager; (ii) if GE decides to dissolve Manager and commences
dissolution proceedings; or (iii) if GE decides to engage other investment
managers to provide substantially all advisory services to the fixed income
allocation of the General Electric Pension Trust (each event a “GE Change”);
provided that Manager shall give prompt written notice of a GE Change to Client
and the date of termination shall occur on the later of the Initial Termination
Date or one (1) year from the giving of notice of the GE Change to Client.  This Agreement also shall automatically
terminate in the event of its unauthorized assignment by either party.  Termination in any manner shall not affect
the rights of either party that accrued prior to termination.

 

(b)                                 Client
acknowledges that Manager has and will continue to expend substantial fixed
costs in providing services to Client and such costs would not have been
incurred but for Manager providing services to Client.  Furthermore, Client acknowledges that Manager
has agreed to provide services hereunder for the fees noted in Article IV in
part because Client has expressed a good faith intention to engage Manager for
not less than three (3) years following the Effective Date.  Therefore, Client acknowledges that the
management fees still to be paid to Manager following a termination by Client
of this Agreement for reasons other than cause or upon a Control Event with
respect to Client and with less than one (1) year prior notice should not be
construed as a penalty but as a reasonable approximation of the additional
costs incurred by Manager due to the failure of Client to meet the parties’
expectations.

 

(c)                                  Within
sixty (60) days of the termination of this Agreement, Manager shall transfer
all Records to Client or its designee provided that Manager shall be entitled
to maintain a copy of such Records.  All
reasonable costs to transfer such Records shall be paid by Client.

 

(d)                                 In
the event of any termination of this Agreement, Client may request that Manager
continue to serve as a manager hereunder (at the then-existing compensation
level) in order to assist Client in effecting a smooth and orderly transfer of
services and all Records to any successor manager (which may be 

 

12

 

Client); provided that
such transition period shall not exceed 3 months unless otherwise agreed to by
the parties.  Manager shall consent to
such request provided termination is not the result of a SEC Termination or
Regulatory Change.

 

ARTICLE IV

COMPENSATION

 

(a)                                  Subject to the provisions of this Article
IV, Client agrees to pay Manager a management fee on a quarterly basis in
arrears for services provided by Manager to Client pursuant to this
Agreement.  The management fee shall be
equal to ** basis points (**%) (the “Management Percentage”) multiplied by the
value of the Account Assets as of the end of the relevant calendar quarter, as
determined by the Custodian’s records, divided by four (4).  The parties acknowledge that the initial Management
Percentage has been, and the Management Percentage applicable for each calendar
year thereafter will be, equal to the percentage resulting from dividing
Manager’s budgeted direct and indirect costs and expenses for such period (the
“Budgeted Costs”) as adjusted by any True-up (as defined below) for the prior
year by Client’s estimated aggregate Account Assets for the next calendar year,
all as determined in good faith.

 

(b)                                 The parties will reestablish the
Management Percentage for each calendar year in accordance with the following
process; provided, however, that if the Management Percentage for such period
exceeds by more than ten percent (10%) the Management Percentage applicable
during the prior calendar year or portion thereof, such increase shall be
submitted to the Insurance Authority for prior approval.  By each September 15, Client shall provide
Manager with a provisional forecast of Client’s Account Assets for the
following calendar year together with an outline of any significant changes that
Client proposes to implement to its investment strategy during the following
calendar year.  By each October 1,
Manager shall provide Client with a detailed budget setting forth the expected
Budgeted Costs to be incurred by Manager in order to provide services to Client
for the following calendar year along with reasonable documentation in support
of such budget (collectively, the “Proposal”). 
Client shall promptly review the Proposal and shall accept or reject the
Proposal, in Client’s reasonable discretion, by no later than November 1;
provided, however, if Client rejects the Proposal it shall provide Manager with
a written explanation for such rejection. 
If Client rejects the Proposal, Client and Manager will work in good
faith to resolve all issues so that the Proposal is acceptable to both parties
no later than December 1.  As promptly
as possible, but in no event later than January 15 of each year, Client shall
provide Manager its final forecast of Account Assets for the calendar year and
any significant changes to Client’s investment strategy that Client proposes to
implement during the calendar year. 
Within five (5) business days following receipt of such information,
Manager shall calculate the difference between the management fees paid or payable
by Client to Manager for the prior year under this Agreement (and under the
Original Agreement for the portion of 2004 that 

 

13

 

such agreement remained
in effect) and Manager’s actual direct and indirect costs and expenses of
providing services (“Actual Costs”) during such period (such difference is
referred to as the “True-up”) and shall provide the True-up and proposed
Management Percentage to Client.  The calculation
of any True-up shall not give effect to fees received by Manager or reductions
in fees otherwise owed to Manager as a result of a prior True-up.  The True-up shall be added to or subtracted
from, as applicable, the Budgeted Costs set forth in the approved Proposal and
shall be reflected in the Management Percentage established for the following
calendar year.  If Manager is entitled
to the benefit of the True-up because Actual Costs exceeded Budgeted Costs, the
True-up added to Budgeted Costs for the following calendar year shall be the lesser
of the actual True-up or an amount equal to 10% of Budgeted Costs for the prior
calendar year; provided however, that any Actual Costs that were not included
in the approved Proposal for the year but were previously approved in writing
by Client in consultation with Manager during such year shall not be included
when applying the 10% cap.  The Manager
shall provide Client with reasonable back-up documentation supporting Manager’s
calculation of the True-up.  Client
shall approve or reject the True-Up and the Management Percentage not later
than five (5) business days after receipt thereof from Manager.  The Management Percentage shall be
implemented as if it were effective as of the prior January 1.  If the parties are unable to agree on a
revised Proposal, the True-up or the Management Percentage, the then existing
Management Percentage shall remain in effect until the parties agree on a
revised Proposal and True-up.  If the
parties are unable to agree on the Proposal, the Management Percentage and the
True-up by February 15, the Budgeted Costs and Management Percentage (which
shall reflect the True-up) shall be established pursuant to the Arbitration
process described in Article VIII of this Agreement.  Both parties understand that time is of the essence with respect
to this subsection.  For purposes of all
dates set forth in this subsection, if such date is not a business day, then
such date shall be deemed to be the next calendar day that is a business day.

 

(c)                                  Manager
shall submit to Client within thirty (30) days following each calendar quarter,
a written statement of the amount owed by Client for the previous quarter.  Client shall pay Manager undisputed amounts
within thirty (30) days following receipt of such statement.

 

ARTICLE V

CONFIDENTIALITY

 

Subject to the duty of
Manager or Client to comply with Applicable Law, each party hereto shall treat
as confidential all information with respect to the other party received
pursuant to this Agreement.  No party shall
use or disclose the other party’s confidential information except as
contemplated by this Agreement.

 

Manager shall establish
and maintain reasonable procedures to keep Investment Reports, the information
supplied by Client to Manager for the Investment Reports and other non-public 

 

14

 

information provided
hereunder confidential and to prevent disclosure or distribution to any Person
other than to Client’s Representatives or to Manager’s Representatives or
Manager’s service providers who have a reasonable need to know or have access
to such information in connection with providing services hereunder; provided
that Manager may include information from such Investment Reports when
presenting Manager’s performance as long as Client is not identified as the
source of such information.  Manager
will be responsible for compliance with the terms of this Article V by its
Representatives.

 

Investment Reports
provided by Manager to Client are privileged and may include proprietary
information.  Investment Reports will be
used solely for the purpose of monitoring and evaluating the performance of the
Account and for use by Client in testing the Account Assets for regulatory
compliance and similar purposes.  Client
shall establish and maintain reasonable procedures to keep Investment Reports
confidential and to prevent disclosure or distribution to any Person other than to Client’s Representatives
who have a reasonable need to know or have access to such Investment Reports in
connection with the receipt of services hereunder.  Client will be responsible for compliance with the terms of this
Article V by its Representatives.

 

Each party hereto will
obtain the other party’s approval before sending or making available any
Investment Report to third parties.  If
a party is required by Applicable Law or requested (by legal process, civil
investigative demand or similar process) to disclose any confidential
information of the other party, the party being required or requested to make
such disclosure will promptly notify the other party so that the other party
may seek an appropriate protective order or waive compliance with this
confidentiality covenant.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

6.1          By
Client.  Client
represents and warrants that:

 

(a)                                  It
is an insurance company duly organized, validly existing and in good standing
under the laws of Delaware and has the power and authority (including approval
from the Insurance Authority, if required) to execute, deliver and perform this
Agreement;

 

(b)                                 This
Agreement is the valid and binding obligation of the Client enforceable against
it in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, moratorium or other similar laws affecting creditors’
rights generally or by the principles governing the availability of equitable
remedies; and

 

(c)                                  Except
as set forth on Schedule 6.1 attached hereto, none of the Account Assets are
“plan assets” within the meaning of ERISA and if any Account Assets ever become
“plan assets” within the meaning of ERISA, Client will immediately so notify
Manager.

 

15

 

6.2          By
Manager.  Manager
represents and warrants that:

 

(a)                                  It
is a corporation duly organized, validly existing and in good standing under
the laws of Delaware, has the power and authority to carry on the business of
an investment adviser, and has the power and authority to execute, deliver and
perform this Agreement;

 

(b)                                 This
Agreement is the valid and binding obligation of Manager enforceable against it
in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, moratorium or other similar laws affecting creditors’
rights generally or by the principles governing the availability of equitable
remedies;

 

(c)                                  Other
than approval from the Insurance Authority, if any, it has made, obtained and
performed all other registrations, filings, approvals, authorizations,
consents, licenses or examinations required by any government or governmental
or quasi-governmental authority, domestic or foreign, or required by any other
person, corporation or other entity in order to execute, deliver and perform
this Agreement and to be an investment adviser;

 

(d)                                 Neither
the execution and delivery nor the performance of this Agreement by Manager
will violate any law, statute, order, rule or regulation or judgment, order or
decree by any federal, state, local or foreign court or governmental authority,
domestic or foreign, to which Manager is subject nor will the same constitute a
breach of, or default under, provisions of any agreement or contract to which
it is a party or by which it is bound;

 

(e)                                  It
is registered as an investment adviser under the Investment Advisers Act and
has at least 48 hours prior to entering into this Agreement furnished to Client
a true and complete copy of Part II of its most recent Form ADV; and since the
date of such Form ADV, there has not been, occurred or arisen any material
adverse change in the financial condition or in the business of Manager or any
event, condition, or state of facts which materially and adversely affects, or
to its knowledge threatens to materially affect, the business or financial
condition of Manager; and

 

(f)                                    In
terms of intellectual property, it is the sole owner of all right, title and
interest in and to the intellectual property used by it to perform its
obligations hereunder or, to its knowledge, possesses all appropriate rights to
use the intellectual property; has not sold, granted, conveyed, licensed or
assigned to any third party, or in any way encumbered, the intellectual
property in a manner that interferes with Manager’s obligations under this
Agreement; and the intellectual property used by Manager does not to Manager’s
knowledge infringe the rights of any third party.

 

16

 

ARTICLE
VII

MISCELLANEOUS

 

7.1                               Limitation
of Liability.  In furnishing
Client with services as provided herein, neither Manager nor any officer,
director or agent thereof shall be held liable to Client, its creditors or the
holders of its securities for good faith errors of judgment or for anything
except willful misfeasance, bad faith or gross negligence in the performance of
its duties, or reckless disregard of its obligations and duties under the terms
of this Agreement.  It is further
understood and agreed that Manager may rely upon information furnished to it by
Client that Manager reasonably believes to be accurate and reliable.  Certain federal laws, including federal
securities laws, impose liabilities under certain circumstances on persons who
act in good faith and therefore nothing contained herein shall in any way
constitute a waiver or limitation of any rights that Client may have under any
such federal laws.

 

7.2                               Indemnification.

 

(a)                                  Notwithstanding
any limitation of liability contained in Section 7.1, Manager shall indemnify
and hold Client harmless from and against any losses, damages, expenses
(including reasonable attorneys’ fees), liabilities, penalties, demands and
claims of any nature whatsoever with respect to or arising out of Manager’s
breach or violation of any agreement, covenant, representation or warranty made
by Manager herein.

 

(b)                                 Client
shall indemnify and hold Manager harmless from and against any losses, damages,
expenses (including reasonable attorneys’ fees), liabilities, penalties,
demands and claims of any nature whatsoever with respect to or arising out
Client’s breach or violation of any agreement, covenant, representation or
warranty made by Client herein.

 

7.3                               Assignment.  No assignment (by operation of law or
otherwise) of this Agreement, in whole or in part, nor any of the rights,
interests or obligations under this Agreement by either party shall be
effective without the prior written consent of the other party and the
Insurance Authority.  For purposes of
this section, the term “assignment” with respect to Manager as assignor shall
have the same meaning as defined in Section 202 of the Investment Advisers Act.  Subject to the provisions of this Section
7.3, this Agreement shall be binding upon, inure to the benefit of, and be
enforceable by the parties and their respective successors and permitted
assigns.

 

7.4                               Independent
Contractor.  Manager shall be
deemed to be an independent contractor and, except as expressly provided or
authorized in this Agreement, shall have no authority to act for or represent
Client.  Client shall always retain the
ultimate authority to make investment decisions on its own behalf.

 

7.5                               [Reserved]

 

7.6                               Specimen
Signatures.  From time to time,
Client shall provide Manager with a certificate setting forth the names and
specimen signatures of the Representatives who are 

 

17

 

authorized to act on behalf of Client (including, but
not limited to, the Investment Committee). 
From time to time, Manager will provide Client with a certificate
setting forth the names and specimen signatures of the Representatives who are
authorized to act on behalf of Manager. 
The parties hereto shall be fully protected in relying upon any written
notice, instruction, direction or other communication (based upon the most
recent certificate that has been received by the party) which is reasonably
believed to have been executed by an individual who is authorized to act on
behalf of the other party.

 

7.7                               [Reserved]

 

7.8                               [Reserved]

 

7.9                               Advertising
and Promotion.  A party shall
not engage in any advertising or promotional activity that refers to the other
party without receiving the written consent of the other party prior to
publication or announcement.  Manager
shall however be entitled to disclose Client’s name and the size of the Account
Assets in client listings and other similar material.

 

7.10                        Governing
Law.   This Agreement shall be
governed by the laws of the State of Delaware, without giving effect to its
conflict of laws principles.

 

7.11                        Notices.  Any notice under this Agreement shall be
given in writing, addressed, and delivered, or mailed postpaid, to the party to
this Agreement entitled to receive such, at such party’s principal place of
business as set out here:

 

18

 

Manager:

 

General Counsel

GE Asset Management
Incorporated

3003 Summer Street

Stamford, CT   06905

 

Client:

 

General Counsel

General Electric Capital
Assurance Company

6620 W. Broad Street

Richmond, Virginia 23230

 

or to such other address
as either party may designate in writing mailed to the other.  Whenever any notice is required to be given
hereunder, such notice shall be deemed given and such requirement satisfied
only when such notice is delivered, or, if mailed, when received unless
otherwise permitted by the terms hereof.

 

7.12                        Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

7.13                        Amendments.  No term or provision of this Agreement may
be amended, waived, discharged or terminated orally, but only by an instrument
in writing signed by both parties.

 

7.14                        Electronic Notices, Waivers and Amendments.  For purposes of providing notices required
or permitted by this Agreement, waiving any right under this Agreement, or
amending any term of this Agreement and notwithstanding any law recognizing
electronic signatures or records, “a writing signed,” “in writing” and words of
similar meaning, shall mean only a writing in a tangible form bearing an actual
“wet” signature in ink manually applied by the person authorized by the
respective party, unless both parties agree otherwise by making a specific reference
to this section.

 

7.15                        Entire
Agreement.  This Agreement
supersedes any and all oral or written agreements or understandings heretofore
made, and contains the entire agreement of the parties, with respect to the
subject matter hereof.

 

7.16                        Counterparts.  This Agreement may be executed in one or
more counterparts, and such counterparts together shall constitute one and the
same agreement.

 

7.17                        Additional
Parties.   Insurance company
Affiliates of Genworth Financial, Inc. may become party to and bound by the
provisions of this Agreement subject only to executing 

 

19

 

the Adoption Agreement attached hereto as Exhibit 1
and obtaining any necessary regulatory approvals.   Each such additional insurance company becoming a party to this
Agreement shall be deemed a “Client” hereunder.   If and when the Agreement involves two or more Clients, any one
Client may terminate this Agreement, but only with respect to such Client’s
participation in the Agreement, in accordance with Article III.

 

7.18                        Taxes.

 

(a)                                  Each
party shall be responsible for any personal property taxes on property it owns
or leases, for franchise and privilege taxes on its business, and for taxes
based on its net income or gross receipts.

 

(b)                                 Client
may report and (as appropriate) pay any sales, use, excise, value-added,
services, consumption, and other taxes and duties (“Taxes”) directly if Client
provides Manager with a direct pay or exemption certificate.

 

(c)                                  The
parties agree to cooperate with each other to enable each to more accurately
determine its own tax liability and to minimize such liability to the extent
legally permissible.  Manager’s invoices
shall separately state the amounts of any Taxes Manager is proposing to collect
from Client.

 

(d)                                 Manager
shall promptly notify Client of any claim for Taxes asserted by applicable
taxing authorities for which Client is alleged to be financially responsible
hereunder.  Manager shall coordinate
with Client the response to and settlement of, any such claim.  Notwithstanding the above, Client’s
liability for such Taxes is conditioned upon Manager providing Client
notification within twenty (20) business days of receiving any proposed
assessment of any additional Taxes, interest or penalty due by Manager.

 

(e)                                  Client
shall be entitled to receive and to retain any refund of Taxes paid to Manager
pursuant to this Agreement.  In the
event Manager shall be entitled to receive a refund of any Taxes paid by Client
to Manager, Manager shall promptly pay, or cause the payment of, such refund to
Client.

 

ARTICLE VIII

DISPUTE
RESOLUTION

 

8.1          General Provisions.

 

(a)                                  Any
dispute, controversy or claim arising out of or relating to this Agreement or
the validity, interpretation, breach or termination thereof (a “Dispute”),
shall be resolved in accordance with the procedures set forth in this Article
VIII, which shall be the sole and exclusive procedures for the resolution
of any such Dispute unless otherwise specified below.

 

20

 

(b)                                 Commencing
with a request contemplated by Section 8.2 set forth below, all
communications between the parties or their representatives in connection with
the attempted resolution of any Dispute, including any mediator’s evaluation
referred to in Section 8.3 set forth below, shall be deemed to have been
delivered in furtherance of a Dispute settlement and shall be exempt from
discovery and production, and shall not be admissible in evidence for any
reason (whether as an admission or otherwise), in any arbitral or other
proceeding for the resolution of the Dispute.

 

(c)                                  Except
as provided in Section 8.1(f) in connection with any Dispute, the
parties expressly waive and forego any right to (i) punitive, exemplary,
statutorily-enhanced or similar damages in excess of compensatory damages, and
(ii) trial by jury.

 

(d)                                 The
specific procedures set forth below, including but not limited to the time
limits referenced therein, may be modified by agreement of the parties in
writing.

 

(e)                                  All
applicable statutes of limitations and defenses based upon the passage of time
shall be tolled while the procedures specified in this Article VIII are
pending.  The parties will take such
action, if any, required to effectuate such tolling.

 

(f)                                    The
parties hereto hereby irrevocably submit to the exclusive jurisdiction of any
federal or state court located within the State of Delaware over any such
Dispute and each party hereby irrevocably agrees that all claims in respect of
any such Dispute or any suit, action proceeding related thereto may be heard
and determined in such courts.  The
parties hereby irrevocably waive, to the fullest extent permitted by Applicable
Law any objection which they may now or hereafter have to the laying of venue
of any such Dispute brought in such court or any defense of inconvenient forum
for the maintenance of such dispute. 
Each of the parties hereto agrees that a judgment in any such Dispute
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by Applicable Law.

 

8.2                               Consideration by
Senior Executives.  If a Dispute
is not resolved in the normal course of business at the operational level, the
parties shall attempt in good faith to resolve such Dispute by negotiation
between executives who hold, at a minimum, the office of President and CEO of
the respective business entities involved in such Dispute.  Either party may initiate the executive
negotiation process by providing a written notice to the other (the “Initial
Notice”).  Fifteen (15) days after
delivery of the Initial Notice, the receiving party shall submit to the other a
written response (the “Response”).  The
Initial Notice and the Response shall include (i) a statement of the Dispute
and of each party’s position, and (ii) the name and title of the executive who
will represent that party and of any other person who will accompany the
executive.  Such executives will meet in
person or by telephone within thirty (30) days of the date of the Initial
Notice to seek a resolution of the Dispute.

 

21

 

8.3                               Mediation.  If a Dispute is not resolved by negotiation
as provided in Section 8.2 within forty-five (45) days from the delivery
of the Initial Notice, then either party may submit the Dispute for resolution
by mediation pursuant to the CPR Institute for Dispute Resolution (the “CPR”)
Model Mediation Procedure as then in effect. 
The parties will select a mediator from the CPR Panels of Distinguished
Neutrals.  Either party at commencement
of the mediation may ask the mediator to provide an evaluation of the Dispute
and the parties’ relative positions.

 

8.4          Arbitration

 

(a)                                  If
a Dispute is not resolved by mediation as provided in Section 8.3 within
thirty (30) days of the selection of a mediator (unless the mediator chooses to
withdraw sooner), either party may submit the Dispute to be finally resolved by
arbitration pursuant to the CPR Rules for Non-Administered Arbitration as then
in effect (the “CPR Arbitration Rules”). 
The parties consent to a single, consolidated arbitration for all known
Disputes existing at the time of the arbitration and for which arbitration is
permitted.

 

(b)                                 The
neutral organization for purposes of the CPR Arbitration Rules will be the
CPR.  The arbitral tribunal shall be
composed of three arbitrators, of whom each party shall appoint one in
accordance with the “screened” appointment procedure provided in Rule 5.4 of
the CPR Arbitration Rules.  The
arbitration shall be conducted in New York City.  Each party shall be permitted to present its case, witnesses and
evidence, if any, in the presence of the other party.  A written transcript of the proceedings shall be made and
furnished to the parties.  The
arbitrators shall determine the Dispute in accordance with the law of State of
Delaware, without giving effect to any conflict of law rules or other rules
that might render law inapplicable or unavailable, and shall apply this
Agreement according to its terms, provided that the provisions relating to
arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C.
§ § 1 et seq.

 

(c)                                  The
parties agree to be bound by any award or order resulting from any arbitration
conducted in accordance with this Section 8.4 and further agree that
judgment on any award or order resulting from an arbitration conducted under
this Section 8.4 may be entered and enforced in any court having
jurisdiction thereof.

 

(d)                                 Except
as expressly permitted by this Agreement, no party will commence or voluntarily
participate in any court action or proceeding concerning a Dispute, except (i)
for enforcement as contemplated by Section 8.4(c) above, (ii) to
restrict or vacate an arbitral decision based on the grounds specified under
Applicable Law, or (iii) for interim relief as provided in paragraph (e) below.  For purposes of the foregoing, the parties
hereto submit to the non-exclusive jurisdiction of the courts of State of
Delaware.

 

(e)                                  In
addition to the authority otherwise conferred on the arbitral tribunal, the
tribunal shall have the authority to make such orders for interim relief,
including 

 

22

 

injunctive relief, as it may deem just and
equitable.  Notwithstanding Section
8.4(d) above, each party acknowledges that in the event of any actual or threatened
breach of Article V, the remedy at law would not be adequate, and therefore
injunctive or other interim relief may be sought immediately to restrain such
breach.  If the tribunal shall not have
been appointed, either party may seek interim relief from a court having
jurisdiction if the award to which the applicant may be entitled may be
rendered ineffectual without such interim relief.  Upon appointment of the tribunal following any grant of interim
relief by a court, the tribunal may affirm or disaffirm such relief, and the
parties will seek modification or rescission of the court action as necessary
to accord with the tribunal’s decision.

 

(f)                                    Each
party will bear its own attorneys’ fees and costs incurred in connection with
the resolution of any Dispute in accordance with this Article VIII.

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

23

 

IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be duly executed by their respective officers thereunto duly authorized as of
the day and year first above written.

 

 

	
   

  	
  GE ASSET MANAGEMENT
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC
  CAPITAL

  ASSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

24

 

SCHEDULE
6.1

 

PLAN
ASSETS

 

 

None.

 

25

 

EXHIBIT 1

 

ADOPTION AGREEMENT

 

(AMENDED AND RESTATED INVESTMENT
MANAGEMENT AND SERVICES AGREEMENT)

 

By executing this
Adoption Agreement, the undersigned corporation, an insurance company Affiliate
of General Electric Capital Assurance Company, hereby adopts and agrees to be
bound by the terms and provisions of the Amended and Restated Investment
Management and Services Agreement between GE Asset Management Incorporated and
General Electric Capital Assurance Company dated as of
                  ,
2004 (the “Agreement”), as provided in Section 7.17 of the Agreement.

 

This Adoption Agreement
shall become effective on the date executed unless otherwise noted.

 

	
   

  
	
   

  
	
  [Name and Address of
  Corporation]

  
	
  By:

  
	
  Name:

  
	
  Title:

  
	
  Date:

  

 

26

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