Document:

Exhibit
10.56

 

2004
Genworth Financial, Inc.

Omnibus Incentive Plan

 

Effective [Date]

 

 

Contents

 

	
  Article
  1.

  	
   

  	
  Establishment,
  Purpose, Awards, Eligibility and Participation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  2.

  	
   

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  3.

  	
   

  	
  Administration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  4.

  	
   

  	
  Shares
  Subject to the Plan and Maximum Awards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  5.

  	
   

  	
  Stock
  Options

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  6.

  	
   

  	
  Stock
  Appreciation Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  7.

  	
   

  	
  Restricted
  Stock and Restricted Stock Units

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  8.

  	
   

  	
  Other
  Stock-Based Awards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article
  9.

  	
   

  	
  Dividend
  Equivalents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 10.

  	
   

  	
  Nonemployee Director Awards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 11.

  	
   

  	
  Cash-Based Awards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 12.

  	
   

  	
  Performance-Based Compensation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 13.

  	
   

  	
  Change of Control

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 14.

  	
   

  	
  Duration, Rescission, Amendment,
  Modification, Suspension, and Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 15.

  	
   

  	
  General Provisions

  	
   

  

 

 

2004 Genworth Financial, Inc.

Omnibus Incentive Plan

 

Article 1. Establishment, Purpose, Awards,
Eligibility and Participation

 

1.1         Establishment.  Genworth Financial, Inc., a Delaware corporation
(together with its successors, the “Company”), establishes the 2004
Genworth Financial, Inc. Omnibus Incentive Plan (the “Plan”), as set
forth in this document.

 

The Plan shall
become effective on the date on which the Underwriting Agreements (as defined
in that certain Master Agreement, dated
May       , 2004, among General Electric
Company, General Electric Capital Corporation, GEI, Inc., GE Financial
Assurance Holdings, Inc., and the Company (the “Master Agreement”)) are
executed and delivered by each of the parties thereto (the “Effective Date”).

 

1.2         Purpose of
the Plan.  The purpose of the Plan is to promote the
interests of the Company and its shareholders by strengthening the ability of
the Company and its affiliates to attract, motivate, reward, and retain
qualified individuals upon whose judgment, initiative, and efforts the
financial success and growth of the business of the Company largely depend, and
to provide an opportunity for such individuals to acquire stock ownership and
other rights that promote and recognize the financial success and growth of the
Company.

 

1.3         Awards. 
The Plan permits the grant of Stock Options, Stock Appreciation Rights,
Restricted Stock (including Performance Shares), Restricted Stock Units
(including Performance Units), Other-Stock Based Awards, Nonemployee Director
Awards (including Deferred Stock Units), Dividend Equivalents, and Cash-Based
Awards.  The Plan sets forth the
performance goals and procedural requirements to permit the Company to design
Awards that qualify as Performance-Based Compensation.  The Plan provides for a Covered Employee
Annual Incentive Award based on Consolidated Operating Earnings and Net
Earnings, which is also intended to qualify as Performance-Based Compensation.

 

1.4         Eligibility
and Participation.  Any Employee, Nonemployee Director, or Third
Party Service Provider is eligible to be designated a Participant.  An individual shall become a Participant
upon the grant of an Award.  Each Award
shall be evidenced by an Award Agreement. 
No individual shall have the right to be selected to receive an Award
under the Plan, or, having been so selected, to be selected to receive a future
Award.

 

Article 2. Definitions

 

In addition to
the terms specifically defined elsewhere in the Plan, the following capitalized
terms whenever used in the Plan shall have the meanings set forth below.

 

2.1         Awards.

 

(a)                                  “Award” shall mean, individually or
collectively, any Stock Option, Stock Appreciation Right, Restricted Stock
(including any Performance Share), Restricted Stock Unit (including any
Performance Unit), Covered Employee

 

 

Annual Incentive
Award, Cash-Based Award, Other Stock-Based Award or Nonemployee Director Award
(including any Deferred Stock Unit) that is granted under the Plan.

 

(b)                                 “Cash-Based
Award” shall mean
any right granted under Article 11.

 

(c)                                  “Covered
Employee Annual Incentive Award” shall mean any right granted under Section 12.1.

 

(d)                                 “Deferred
Stock Unit” shall
mean a Nonemployee Director Award, as described in Section 10.2.

 

(e)                                  “Dividend
Equivalent” shall
mean any right granted under Article 9.

 

(f)                                    “Nonemployee Director Award” shall mean any Award granted to a Nonemployee
Director under Section 10.1.

 

(g)                                 “Other
Stock-Based Award”
shall mean any right granted under Article 8

 

(h)                                 “Performance-Based
Compensation”
shall mean compensation under an Award that is intended to constitute
“qualified performance-based compensation” within the meaning of the regulations
promulgated under Section 162(m) of the Code.

 

(i)                                     “Performance Share” shall mean a Share of Restricted Stock as described
in Section 7.1(c).

 

(j)                                     “Performance Unit” shall mean a Restricted Stock Unit as described in
Section 7.1(c).

 

(k)                                  “Restricted
Stock” shall mean
any Share granted under Article 7.

 

(l)                                     “Restricted Stock Unit” shall mean any right granted under Article 7.

 

(m)                               “Stock
Appreciation Right”
shall mean any right granted under Article 6.

 

(n)                                 “Stock
Option” shall
mean any right granted under Article 5.

 

2.2         Other
Defined Terms.

 

(a)                                  “Affiliate” shall have the meaning ascribed to such
term in Rule 12b-2 of the General Rules and Regulations of the Exchange Act,
including any Subsidiary.

 

(b)                                 “Annual
Award Limit” shall
have the meaning set forth in Section 4.3.

 

(c)                                  “Award
Agreement” shall
mean any written agreement, contract, or other document setting forth the terms
and conditions applicable to any Award.

 

(d)                                 “Board of
Directors” shall
mean the board of directors of the Company.

 

2

 

(e)                                  “Code” shall mean the U.S. Internal Revenue
Code of 1986, as amended from time to time.

 

(f)                                    “Committee” shall mean a committee of the Board of Directors,
which is intended to satisfy the requirements of the stock exchange on which
the Shares are listed, Section 162(m) of the Code and the regulations
thereunder, and, except as otherwise
determined by the Board of Directors, the requirements of Section 16 of
the Exchange Act and the rules and regulations thereunder, or any successor
requirement to any of the foregoing. 
For purposes of any Award made to a Nonemployee Director, the Board of
Directors shall act as the Committee and any reference to the Committee in the
Plan with respect to a Nonemployee Director Award shall mean the Board of
Directors.

 

(g)                                 “Company” shall have the meaning set forth in
Section 1.1.

 

(h)                                 “Covered
Employee” shall
mean, for any Plan Year, an executive officer of the Company whom the Committee
identifies as a potential “covered employee,” as such term is defined in
Section 162(m) of the Code and the regulations thereunder, or any successor
statute.

 

(i)                                     “Effective Date” shall have the meaning set forth in Section 1.1.

 

(j)                                     “Employee” shall mean any employee of the Company or any of its
Affiliates.

 

(k)                                  “Exchange
Act” shall mean
the U.S. Securities Exchange Act of 1934, as amended from time to time, or any
successor act thereto.

 

(l)                                     “Fair Market Value” shall mean, with respect to any property (including,
without limitation, any Shares or other securities), the fair market value of
such property determined by such methods or procedures as shall be established
from time to time by the Committee; provided, however, that for purposes
of Stock Appreciation Rights and Stock Options to be granted on the Effective
Date, the Fair Market Value of a Share on the Effective Date shall mean the
initial public offering price of each Share in the Company’s initial public
offering.

 

(m)                               “Master
Agreement” shall
have the meaning set forth in Section 1.1.

 

(n)                                 “Nonemployee
Director” shall
have the meaning ascribed to such term in Rule 16b-3 promulgated under the
Exchange Act, or any successor definition adopted by the U.S. Securities
and Exchange Commission.

 

(o)                                 “Participant” shall mean any eligible individual as
set forth in Section 1.4 to whom an Award is granted under the Plan.

 

(p)                                 “Person” shall have the meaning ascribed to such
term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a “group” as defined in Section 13(d) thereof.

 

3

 

(q)                                 “Plan” shall have the meaning set forth in
Section 1.1.

 

(r)                                    “Plan Year” shall mean the calendar year.

 

(s)                                  “Share” shall mean a share of Class A common
stock, par value $.001, of the Company, and such other securities or property
as may become the subject of Awards, or become subject to Awards, pursuant to
an adjustment made under Section 4.4.

 

(t)                                    “Subsidiary” shall mean, with respect to a Person, any corporation
or other entity, whether domestic or foreign, in which such Person has or
obtains, directly or indirectly, a proprietary interest of more than fifty
percent (50%) by reason of stock ownership or otherwise.

 

(u)                                 “Third
Party Service Provider” shall mean any consultant, agent, advisor, or independent contractor
who renders services to the Company or any of its Affiliates, which services
(a) are not performed in connection with the offer and sale of the Company’s
securities in a capital raising transaction, and (b) do not directly or
indirectly promote or maintain a market for the Company’s securities.

 

Article 3. Administration

 

3.1         General. 
The Committee shall be responsible for administering the Plan in
accordance with this Article 3.

 

3.2         Authority
of the Committee.  The Committee shall have full and exclusive
discretionary power to (a) interpret the terms and the intent of the Plan and
any Award Agreement or other agreement or document ancillary to or in
connection with the Plan; (b) determine eligibility for Awards; and (c) adopt
such rules, forms instruments, and guidelines for administering the Plan as the
Committee deems necessary or proper; provided, however, that the Board of
Directors is hereby authorized (in addition to any necessary action by the
Committee) to grant or approve Awards as necessary to satisfy the requirements
of Section 16 of the Exchange Act and the rules and regulations
thereunder.  The Committee’s authority
shall include, but not be limited to, selecting Award recipients, establishing
all Award terms and conditions, including the terms and conditions set forth in
Award Agreements, and, subject to Section 14.4, adopting modifications and
amendments to any Award Agreement.  All
actions taken and all interpretations and determinations made by the Committee
shall be final and binding upon the Participants, the Company, and all other
interested individuals.

 

3.3         Advisors. 
The Committee may employ attorneys, consultants, accountants, agents,
and other individuals, any of whom may be an Employee, and the Committee, the
Company, and its officers and directors shall be entitled to rely upon the
advice, opinions, or valuations of any such individuals.

 

3.4         Delegation. 
The Committee may delegate to one or more of its members, one or more
officers of the Company or any of its Affiliates, and one or more agents or
advisors such administrative duties or powers as it may deem advisable.  The Committee may, by resolution,

 

4

 

authorize one or more officers of the Company to do
one or both of the following on the same basis as can the Committee:  (a) designate Employees and Third Party
Service Providers to be recipients of Awards, and (b) determine the terms of
conditions of any such Awards; provided, however, that (i) the
Committee shall not delegate such responsibilities to any such officer for
Awards granted to an Employee that is considered an “insider” for purposes of
Section 16 of the Exchange Act; (ii) the resolution providing for such
authorization shall set forth the total number of Awards such officer(s) may
grant; and (iii) the officer(s) shall report periodically to the Committee
regarding the nature and scope of the Awards granted pursuant to the authority
delegated.

 

Article 4. Shares Subject to the Plan and Maximum
Awards

 

4.1         Number of
Shares Available for Awards.

 

(a)                                  General.  Subject to adjustment as provided in Section 4.4,
the maximum number of Shares available for issuance to Participants pursuant to
Awards under the Plan shall be thirty-eight million (38,000,000) Shares.  The Shares available for issuance under the
Plan may be authorized and unissued Shares or treasury Shares.

 

(b)                                 Full Value
Awards.  Of the Shares reserved for issuance under Section
4.1(a), no more than ten million (10,000,000) of the reserved Shares may be
issued pursuant to Restricted Stock, Restricted Stock Units and other Awards
designed to provide equity compensation based on the value of a Share on the
date of grant rather than only upon the appreciation in the value of a Share
over an exercise price or base price following the date of grant.

 

(c)                                  Nonemployee
Directors.  Subject to the limit set forth in Section
4.1(a), the maximum number of Shares that may be issued as Nonemployee Director
Awards shall be one million (1,000,000) Shares.

 

4.2         Share
Usage.

 

(a)                                  General.  Shares shall be charged against the total
number of Shares available for Awards and the Annual Award Limits on the date
of grant to the extent such Awards are denominated in Shares and on the date of
settlement for any other Award which is settled in Shares; provided, however, that that in the case of a Stock Appreciation Right granted in tandem
with a Stock Option, only the number of shares subject to the Stock Option
shall be counted.

 

(b)                                 Awards Not Settled in Shares.  If all or a portion of an Award denominated in Shares is not settled in Shares, such
Shares that are not actually issued and delivered to a Participant (or, if
permitted by the Committee, to a Participant’s designated transferee) shall not
be counted against the total number of Shares available for Awards but shall
continue to be counted for purposes of the Annual Award Limits.

 

(c)                                  Cancelled/Forfeited
Awards.  Any Shares related to Awards which terminate
by expiration, forfeiture, cancellation, or otherwise without the issuance of
such

 

5

 

Shares, are
settled in cash in lieu of Shares, or are exchanged, prior to the issuance of
Shares, for Awards not involving Shares shall be available again for grant
under the Plan.

 

(d)                                 Stock
Options.  If the exercise price of any Stock Option
granted under the Plan or the tax withholding requirements with respect to any
Award granted under the Plan are satisfied by tendering Shares to the Company
(by either actual delivery or by attestation), or if a Stock Option is
exercised, only the number of Shares issued, net of the Shares tendered, if
any, will be deemed delivered for purposes of determining the maximum number of
Shares available for delivery under the Plan.

 

(e)                                  Dividends
or Dividend Equivalents.  The maximum number of Shares
available for issuance under the Plan shall not be reduced to reflect any
dividends or Dividend Equivalents paid in respect of Awards made under the Plan
that are settled or reinvested in Shares or additional Awards.

 

4.3         Annual
Award Limits.  Unless and until the Committee determines
that an Award to a Covered Employee is not intended to qualify as
Performance-Based Compensation, the following limits (each an “Annual Award
Limit” and collectively, “Annual Award Limits”) shall apply to
grants of Awards under the Plan:

 

(a)                                  Stock
Options or Stock Appreciation Rights:  The maximum
number of Shares with respect to which Stock Options or Stock Appreciation
Rights may be granted or measured to any Participant in any Plan Year shall be
five million (5,000,000) Shares.

 

(b)                                 Restricted
Stock or Restricted Stock Units:  The maximum number of Shares with respect
to which Restricted Stock or Restricted Stock Units may be granted or measured
to any Participant in any Plan Year shall be two million (2,000,000) Shares.

 

(c)                                  Covered
Employee Annual Incentive Award:  The maximum
amount of any Covered Employee Annual Incentive Awards that may be paid or
credited to any Covered Employee in any Plan Year, whether in cash, Shares or
other property, shall be five million dollars ($5,000,000).

 

(d)                                 Cash-Based  Awards: 
The maximum amount of any Cash-Based Awards that may be paid, credited
or vested to any Participant in any Plan Year shall be ten million dollars ($10,000,000).

 

(e)                                  Other
Stock-Based Awards:  The maximum number of Shares with respect to
which Other Stock-Based Awards may be granted or measured to any Participant in
any Plan Year shall be one million (1,000,000) Shares.

 

(f)                                    Nonemployee Director Awards:  The maximum
number of Shares with respect to which Nonemployee Directors Awards may be
granted or measured to any

 

6

 

Nonemployee
Director in any Plan Year shall be twenty-five thousand (25,000) Shares.

 

4.4         Adjustments
in Authorized Shares.  In the event of any corporate event or
transaction (including, but not limited to, a change in the shares of the
Company or the capitalization of the Company) such as a merger, consolidation,
reorganization, recapitalization, separation, stock dividend, stock split,
reverse stock split, split up, spin-off, or other distribution of stock or
property of the Company, combination of Shares, exchange of Shares, dividend in
kind, or other like change in capital structure or distribution (other than
normal cash dividends) to shareholders of the Company, or any similar corporate
event or transaction, the Committee, in its sole discretion, to prevent
dilution or enlargement of Participants’ rights under the Plan as well as dilution
or enlargement of the benefits or potential benefits intended to be made
available, shall substitute or adjust, as applicable, the number and kind of
Shares that may be issued under the Plan or under particular forms of Awards,
the number and kind of Shares subject to outstanding Awards, the exercise price
or base price applicable to outstanding Awards, the Annual Award Limits, and
other value determinations applicable to outstanding Awards.

 

The Committee,
in its sole discretion, may also make appropriate adjustments in the terms of
any Awards under the Plan to reflect, or related to, such changes or
distributions and to modify any other terms of outstanding Awards, including
modifications of performance goals and changes in the length of performance periods.  The determination of the Committee as to the
foregoing adjustments, if any, shall be conclusive and binding on Participants
under the Plan.

 

Without
affecting the number of Shares reserved or available hereunder, the Committee
may authorize the issuance or assumption of benefits under the Plan in
connection with any merger, consolidation, acquisition of property or stock, or
reorganization upon such terms and conditions as it may deem appropriate.

 

Article 5. Stock Options

 

5.1         Grant of
Stock Options.  The Committee is hereby authorized to
grant Stock Options to Participants. 
Each Stock Option shall permit a Participant to purchase from the
Company a stated number of Shares from the Company at an exercise price established
by the Committee, subject to the terms and conditions described in this Article
5 and to such additional terms and conditions, in established by the Committee,
in its sole discretion, that are consistent with the provisions of the
Plan.  All Stock Options shall be
nonqualified stock options.  The Plan
does not provide for the grant of “incentive stock options” within the meaning
of Section 422 of the Code.

 

5.2         Exercise
Price.  The exercise price per Share under a Stock Option
shall be determined by the Committee at the time of grant; provided, however,
that such exercise price shall not be less than the Fair Market Value of a
Share on the date of grant of such Stock Option (or, if the Committee so
determines, in the case of any Stock Option retroactively granted in tandem
with or in substitution for another Award or any other outstanding award, on
the date of grant of such other Award or award).

 

5.3         Stock
Option Term.  The term of each Stock Option shall be
determined by the Committee at the time of grant; provided, however,
that no Stock Option shall be exercisable later than the tenth (10th)
anniversary of the date of its grant unless otherwise determined by the

 

7

 

Committee. 
Notwithstanding the foregoing, for Stock Options granted to Participants
outside the United States, the Committee has the authority to grant Stock
Options that have a term greater than ten (10) years to the extent required by
the applicable local laws of the jurisdictions in which such Stock Options are
granted.

 

5.4         Time of
Exercise.  Stock Options shall be exercisable at
such times and be subject to such restrictions and conditions as the Committee
shall determine at the time of grant.

 

5.5         Method of
Exercise.  Stock Options shall be exercised by the
delivery of a notice of exercise to the Company or an agent designated by the
Company in a form specified or accepted by the Committee, or by complying with
any alternative procedures which may be authorized by the Committee, setting
forth the number of Shares with respect to which the Stock Option is to be
exercised, accompanied by full payment for the Shares.

 

A condition of the issuance of the Shares as to which
a Stock Option shall be exercised shall be the payment of the exercise
price.  The exercise price of any Stock
Option shall be payable to the Company in full either:  (a) in cash or its equivalent; (b) by
tendering (either by actual delivery or attestation) previously acquired Shares
having an aggregate Fair Market Value at the time of exercise equal to the
exercise price (provided that the Shares that are tendered must have been held
by the Participant for at least six (6) months prior to their tender to satisfy
the exercise price or have been purchased on the open market); (c) by a
combination of (a) and (b); or (d) any other method approved or accepted
by the Committee in its sole discretion, including, without limitation, if the
Committee so determines, a cashless (broker-assisted) exercise.

 

Subject to any
governing rules or regulations, as soon as practicable after receipt of written
notification of exercise and full payment (including satisfaction of any
applicable tax withholding), the Company shall deliver to the Participant
evidence of book entry Shares, or upon the Participant’s request, Share certificates
in an appropriate amount based upon the number of Shares purchased under the
Stock Option(s).

 

Unless
otherwise determined by the Committee, all payments under all of the methods
indicated above shall be paid in U.S. dollars.

 

Article 6. Stock Appreciation Rights

 

6.1         Grant of
Stock Appreciation Rights.  The Committee is hereby authorized to
grant Stock Appreciation Rights to Participants, including a concurrent grant
of Stock Appreciation Rights in tandem with any Stock Option.  Subject to the terms of the Plan and any
applicable Award Agreement, a Stock Appreciation Right granted under the Plan
shall confer on the holder thereof a right to receive, upon exercise thereof,
the excess of (a) the Fair Market Value of one Share on the date of exercise
over (b) the grant price of the right as specified by the Committee, which
shall not be less than the Fair Market Value of one Share on the date of grant
of the Stock Appreciation Right (or, if the Committee so determines, in the
case of any Stock Appreciation Right retroactively granted in tandem with or in
substitution for another Award or any other outstanding award, on the date of
grant of such other Award or award).

 

Subject to the
terms of the Plan and any applicable Award Agreement, the grant price, term,
methods of exercise, methods of settlement, and any other terms and conditions
of any Stock

 

8

 

Appreciation Right shall be as determined by
the Committee.  The Committee may impose
such conditions or restrictions on the exercise of any Stock Appreciation Right
as it may deem appropriate.

 

6.2         Stock
Appreciation Right Term.  The term of each Stock Appreciation Right
shall be determined by the Committee at the time of grant; provided, however,
that no Stock Appreciation Right shall be exercisable later than the tenth
(10th) anniversary of the date of its grant unless otherwise determined by
the Committee.  Notwithstanding the
foregoing, for Stock Appreciation Rights granted to Participants outside the United
States, the Committee has the authority to grant Stock Appreciation Rights that
have a term greater than ten (10) years to the extent required by the
applicable local laws of the jurisdictions in which such Stock Appreciation
Rights are granted.

 

6.3         Time of
Exercise.  Stock Appreciation Rights shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall determine at the time of grant.

 

6.4         Tandem
Stock Appreciation Rights.  Upon the exercise of all or a portion of
a Stock Appreciation Right granted in tandem with a Stock Option, a Participant
shall be required to forfeit the right to purchase an equivalent portion of the
related Stock Option (and, when a Share is purchased under the related Stock
Option, the Participant shall be required to forfeit an equivalent portion of
the Stock Appreciation Right).

 

Article 7. Restricted Stock and Restricted Stock
Units

 

7.1         Grant of
Restricted Stock or Restricted Stock Units.

 

(a)                                  General.  The Committee is hereby authorized to grant Restricted
Stock and Restricted Stock Units to Participants.  Each Restricted Stock Unit shall represent one Share.  Restricted Stock Units shall be credited to
a notional account maintained by the Company. 
No Shares are actually awarded to the Participant in respect of
Restricted Stock Units on the date of grant.

 

(b)                                 Award
Agreement.  Each Award Agreement evidencing a
Restricted Stock or Restricted Stock Unit grant shall specify the terms of the
period(s) of restriction, the number of Shares of Restricted Stock or the
number of Restricted Stock Units granted, settlement dates and such other
provisions as the Committee shall determine.

 

(c)                                  Performance
Shares; Performance Units.  Restricted Stock and Restricted Stock
Units, the grant of which or lapse of restrictions of which is based upon the
achievement of performance goals over a performance period, shall be referred
to as “Performance Shares” and “Performance Units,” respectively.

 

7.2         Voting
Rights.  Unless otherwise determined by the Committee and set
forth in a Participant’s Award Agreement, to the extent permitted or required
by law, as determined by the Committee, Participants holding Shares of
Restricted Stock granted hereunder shall have the right to exercise full voting
rights with respect to those Shares during the period of restriction.  A Participant shall have no voting rights
with respect to any Restricted Stock Units granted hereunder.

 

9

 

7.3         Section
83(b) Election.  The Committee may provide in an Award
Agreement that the Award of Restricted Stock is conditioned upon the
Participant making or refraining from making an election with respect to the
Award under Section 83(b) of the Code. 
If a Participant makes an election pursuant to Section 83(b) of the Code
concerning a Restricted Stock Award, the Participant shall be required to file
promptly a copy of such election with the Company.

 

Article 8. Other Stock-Based Awards

 

The Committee is
hereby authorized to grant other types of equity-based or equity-related Awards
not otherwise described by the terms of the Plan (including the grant or offer
for sale of unrestricted Shares) to Participants in such amounts and subject to
such terms and conditions as the Committee shall determine.  Such Awards shall be referred to as “Stock-Based
Awards.”  Each such Other
Stock-Based Award may involve the transfer of actual Shares to Participants or
payment in cash or otherwise of amounts based on the value of Shares, and may
include, without limitation, Awards designed to comply with or take advantage
of the applicable local laws of jurisdictions other than the United States.

 

Each Other
Stock-Based Award shall be expressed in terms of Shares or units or an
equivalent measurement based on Shares, as determined by the Committee.  If the value of an Other Stock-Based Award
will be based on the appreciation of Shares from an initial value determined as
of the date of grant, then such initial value shall not be less than the Fair
Market Value of a Share on the date of grant of such Other Stock-Based Award
(or, if the Committee so determines, in the case of any Other Stock-Based Award
retroactively granted in tandem with or in substitution for another Award or
any other outstanding award, on the date of grant of such other Award or
award).

 

Article 9. Dividend Equivalents

 

The Committee
is hereby authorized to grant to Participants Dividend Equivalents based on the
dividends declared on Shares that are subject to any Award.  Dividend Equivalents shall be credited as of
dividend payment dates during the period between the date the Award is granted
and the date the Award is exercised, vested, expired, credited or paid.  Such Dividend Equivalents shall be converted
to cash, Shares or additional Awards by such formula and at such time and
subject to such limitations as may be determined by the Committee.

 

Dividend
Equivalents granted with respect to any Stock Option or Stock Appreciation
Right may be payable regardless of whether such Stock Option or Stock Appreciation
Right is subsequently exercised.

 

Article 10. Nonemployee Director Awards

 

10.1       General.  The Board of Directors is hereby authorized to grant
Awards to Nonemployee Directors, as it shall from time to time determine,
including Awards granted in satisfaction of annual fees that are otherwise
payable to Nonemployee Directors.

 

10.2       Deferred
Stock Units.  Unless otherwise determined by the Board
of Directors, sixty percent (60%) of the Nonemployee Director annual fee will
be satisfied by a grant of “Deferred Stock Units.”  Each Deferred Stock Unit shall represent one
Share and will be credited to a notional

 

10

 

account maintained by the Company.  Nonemployee Directors shall not be entitled
to vote Shares represented by such Deferred Stock Units but shall receive
Dividend Equivalents with respect to such Awards, which shall be reinvested in
additional Deferred Stock Units. 
Deferred Stock Units shall be settled in cash and paid in accordance
with an election made by the Nonemployee Director, which payment date shall be
no earlier than the first anniversary of the date the Nonemployee Director
ceases to be a director of the Company.

 

Article 11. Cash-Based Awards

 

The Committee is
hereby authorized to grant Awards to Participants denominated in cash in such
amounts and subject to such terms and conditions as the Committee may
determine.  Such Awards shall be
referred to as “Cash-Based Awards.” 
Each such Cash-Based Award shall specify a payment amount or payment
range as determined by the Committee.

 

Article 12. Performance-Based Compensation

 

12.1       Covered
Employee Annual Incentive Award.

 

(a)                                  Establishment. 
No later than ninety (90) days after the commencement of the Plan Year
(but in no event after twenty-five percent (25%) of Plan Year has elapsed), the
Committee may designate Covered Employees who are eligible to receive a cash
payment with respect to any Plan Year based on a percentage of one or both of:
(a) the Company’s Consolidated Operating Earnings for the Plan Year and (b) the
Company’s Net Earnings for the Plan Year.

 

(b)                                 Certification. 
Following the end of each Plan Year for which a Covered Employee Annual
Incentive Award is made, the Committee shall certify in the Company’s
Consolidated Operating Earnings and Net Earnings for the Plan Year.

 

(c)                                  Settlement. 
The Committee shall calculate each Participant’s Covered Employee Annual
Incentive Award based upon the percentage established at the beginning of the
Plan Year.  The Committee shall retain
the discretion to adjust such Awards downward.

 

(d)                                 Applicable
Terms.  For purposes of the Covered Employee Annual
Incentive Award, “Consolidated Operating Earnings” shall mean positive
Company annual earnings from continuing operations before income taxes and
accounting changes, as determined under generally accepted accounting
principles and “Net Earnings”  shall mean positive Company annual net
earnings, as determined under generally accepted accounting principles.

 

12.2       Other
Performance-Based Compensation.  The Committee
is authorized to design any Award of Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Cash-Based Awards and Other
Stock-Based Awards so that the Award meets the requirements of this Section
12.2 as Performance-Based Compensation. 
If the Committee determines that it is advisable to grant Awards to
Covered Employees that shall not qualify as Performance-Based Compensation, the
Committee may make such grants without satisfying the requirements of this Section
12.2.

 

11

 

(a)                                  Performance
Measures.  The granting, vesting, crediting and/or
payment of Performance-Based Compensation shall be based on the achievement of
performance goals based on one or more of the following performance measures:
(i) net earnings or net income (before or after taxes); (ii) earnings growth;
(iii) earnings per share; (iv) net sales (including net sales growth);
(v) gross profits or net operating profit; (vi) return measures (including,
but not limited to, return on assets, capital, equity, or sales); (vii) cash
flow (including, but not limited to, operating cash flow, free cash flow, cash
flow return on capital and statutory cash measures); (viii) revenue growth;
(ix) earnings before or after taxes, interest, depreciation, and/or
amortization; (x) productivity ratios; (xi) Share price (including, but not
limited to, growth measures and total shareholder return); (xii) expense
targets; (xii) margins (including, but not limited to, gross or operating
margins); (xiii) operating efficiency; (xiv) customer satisfaction or
increase in the number of customers; (xv) attainment of budget goals;
(xvi) division working capital turnover; (xvii) attainment of strategic or
operational initiatives; (xviii) market share; (xix) cost reductions; (xx)
working capital targets; and (xxi) EVA® and other value-added
measures.

 

Any performance
measure may be (1) used to measure the performance of the Company and/or any of
its Affiliates as a whole, any business unit thereof or any combination thereof
or (2) compared to the performance of a group of comparable companies, or a
published or special index, in each case that the Committee, in its sole
discretion, deems appropriate.

 

(b)                                 Establishment
of Performance Goals for Covered Employees. 
No later
than ninety (90) days after the commencement of a performance period (but in no
event after twenty-five percent (25%) of such performance period has elapsed),
the Committee shall establish in writing: 
(i) the performance goals applicable to the performance period; (ii) the
performance measures to be used to measure the performance goals in terms of an
objective formula or standard; (iii) the method for computing the amount of
compensation payable to the Participant if such performance goals are obtained;
and (iv) the Participants or class of Participants to which such performance
goals apply.

 

(c)                                  Permitted
Exclusions/Inclusions.  When establishing the performance goals,
the Committee may provide in any Award to a Covered Employee that the
evaluation of performance goals may include or exclude any of the following
events that occurs during a performance period:  (i) asset write-downs; (ii) litigation or claim judgments or
settlements; (iii) the effect of changes in tax laws, accounting principles, or
other laws or provisions affecting reported results; (iv) any reorganization
and restructuring programs; (v) extraordinary nonrecurring items as
described in Accounting Principles Board Opinion No. 30 or in management’s discussion
and analysis of financial condition and results of operations appearing in the
Company’s annual report to shareholders for the applicable year; (vi)
acquisitions or divestitures; and (vii) foreign exchange gains and losses.

 

12

 

(d)                                 Adjustment
of Performance-Based Compensation.  Awards that are designed to qualify as
Performance-Based Compensation may not be adjusted upward.  The Committee shall retain the discretion to
adjust such Awards downward, either on a formula or discretionary basis or any
combination, as the Committee determines.

 

(e)                                  Certification
of Performance.  No Award designed to qualify as
Performance-Based Compensation shall be granted, vested, credited or paid, as
applicable, with respect to any Participant until the Committee certifies in
writing that the performance goals and any other material terms applicable to
such performance period have been satisfied.

 

(f)                                    Reapproval of Performance Measures.  Performance
measures listed in Section 12.2(a) may not be used in designing Awards intended
to qualify as Performance-Based Compensation after the first shareholder
meeting that occurs in the fifth year following the year in which shareholder
approval is first approved pursuant to Section 12.3 (or previously approved
pursuant to this Section 12.2(f)), unless shareholder approval of such
performance measures is again obtained or applicable tax or securities laws
change to provide otherwise.

 

12.3       Shareholder
Approval.  The Plan may not be used to make Awards to
Covered Employees unless (a) the Plan is approved by shareholders at the first
annual shareholder’s meeting held more than twelve (12) months after the
Effective Date; (b) the Award is a Stock Option, a Stock Appreciation Right,
Restricted Stock or a Restricted Stock Unit made prior to such shareholder’s
meeting; or (c) the Award is made subject to shareholder approval.

 

Article 13. Change of Control

 

13.1       Change of
Control of the Company.  Unless the Committee shall determine
otherwise in the Award Agreement, or unless otherwise specifically prohibited
under applicable laws or by the rules and regulations of any governing
governmental agencies or stock exchange on which the Shares are listed, upon
the occurrence of a Change of Control in which the Successor Entity fails to
Assume and Maintain an Award as defined in Section 13.2:

 

(a)                                  Time
Vested Awards.  Awards, the vesting of which depends upon
a participant’s continuation of service for a period of time, shall fully vest
as of the effective date of the Change of Control; shall be distributed or paid
to the participant within thirty (30) days following the date of the Change of
Control in cash, Shares, other securities, or any combination, as determined by
the Committee; and shall thereafter terminate; provided, however, that if
the Award is denominated in Shares, the amount distributed or paid shall equal
the difference between the Fair Market Value of the Shares on the date of the
Change of Control and, if applicable, the exercise price, grant price or unpaid
purchase price as of the date of the Change of Control;

 

(b)                                 Performance-Based
Awards.  Awards, the vesting of which is based on achievement
of performance criteria (other than the Covered Employee Annual Incentive
Awards), shall fully vest as of the effective date of the Change of

 

13

 

Control; shall be
deemed earned based on the target performance being attained for the
performance period in which the Change of Control occurs; shall be distributed
or paid to the participant within thirty (30) days following the date of the
Change of Control pro rata based on the portion of the performance period
elapsed on the date of the Change of Control in cash, Shares, other securities,
or any combination, as determined by the Committee; and shall thereafter
terminate; provided,
however, that if the Award is denominated in Shares, the amount
distributed or paid shall equal the difference between the Fair Market Value of
the Shares on the date of the Change of Control and, if applicable, the
exercise price, grant price or unpaid purchase price as of the date of the
Change of Control; and

 

(c)                                  Covered
Employee Annual Incentive Awards.  The Covered
Employee Annual Incentive Awards shall be based on the Consolidated Operating
Earnings or Net Earnings of the Plan Year in which the Change of Control occurs
(or such other method of payment as may be determined by the Committee at the
time of such Award or thereafter but prior to the Change of Control); shall be
distributed or paid to the participant within thirty (30) days following the
date of the Change of Control pro rata based on the portion of the year elapsed
on the date of the Change of Control in cash, Shares, other securities, or any
combination, as determined by the Committee; and shall thereafter terminate.

 

13.2       Change of
Control Definitions.

 

(a)                                  “Assume
and Maintain”.  A Successor Entity shall be deemed to
have assumed and maintained an Award under this Plan if the Successor Entity
substitutes an Award under this Plan or an award under a Successor Entity plan
having equivalent value, terms and conditions as the Award being replaced.  The Committee shall have the sole authority
to determine whether the proposed assumption of an award by a Successor Entity
meets the requirements listed in this Section 13.2(a).

 

(b)                                 “Beneficial
Owner” or “Beneficial
Ownership” shall have the meaning ascribed to such term in Rule
13d-3 of the General Rules and Regulations under the Exchange Act.

 

(c)                                  “Change of
Control” shall
mean the occurrence of any of the following events:

 

(i)                                     Any Person becomes the Beneficial Owner
of twenty percent (20%) or more of the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of its directors (the “Outstanding Company Voting Securities”);
provided,
however,
that for purposes of this Section 13.2(c), the following acquisitions shall not
constitute a Change of Control:  (A) any
acquisition by General Electric Company or any of its Affiliates, or by any
Person who on the Effective Date is the Beneficial Owner of twenty percent
(20%) or more of the Outstanding Company Voting

 

14

 

Securities;
(B) any acquisition directly from the Company, including without
limitation, a public offering of securities; (C) any acquisition by the Company
or any of its Affiliates; (D) any acquisition by any employee benefit plan or
related trust sponsored or maintained by the Company or any of its Affiliates;
or (E) any acquisition by any corporation pursuant to a transaction which
complies with clauses (A), (B), and (C) of Section 13.2(c)(iii).

 

(ii)                                  Individuals who constitute the Board of
Directors as of the Effective Date (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board of Directors; provided, however,
that any individual becoming a director of the Company subsequent to the
Effective Date whose election to the Board of Directors, or nomination for
election by the Company’s shareholders, was approved by a vote of (A) at least
a majority of the directors then comprising the Incumbent Board, (B) (x) the
holders of the Class B Common Stock (as defined in the Master Agreement),
voting as a class, or (y) at least a majority of the directors elected by the
holders of the Class B Common Stock, in each case in accordance with Article
VII of the Amended and Restated Certificate of Incorporation of the Company,
(C) prior to the Trigger Date (as defined in the Master Agreement), a vote of
at least a majority of any nominating committee of the Board of Directors,
which nominating committee was designated by a vote of at least a majority of
the directors then comprising the Incumbent Board, or (D) in the case of a director
appointed to fill a vacancy in the Board of Directors (other than any vacancy
of a director elected by the holders of the Class B Common Stock), at least a
majority of the directors entitled (under Section 6 of Article VII of the
Amended and Restated Certificate of Incorporation of the Company) to elect such
director (so long as at least a majority of such directors voting in favor of
the director filling the vacancy are themselves members of (or considered to be
pursuant to this definition members of) the Incumbent Board) shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election or removal of the directors of the Company or other actual or
threatened solicitation of proxies of consents by or on behalf of a Person
other than the Board of Directors;

 

(iii)                               Consummation of a reorganization, merger,
or consolidation to which the Company is a party or a sale or other disposition
of all or substantially all of the assets of the Company (a “Business
Combination”), unless, following such Business Combination:  (A) all or substantially all of the
individuals and entities who were the Beneficial Owners of Outstanding Company
Voting Securities

 

15

 

immediately prior
to such Business Combination are the Beneficial Owners, directly or indirectly,
of more than fifty percent (50%) of the combined voting power of the
outstanding voting securities entitled to vote generally in the election of
directors of the corporation resulting from the Business Combination
(including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) (the “Successor
Entity”) in substantially the same proportions as their ownership
immediately prior to such Business Combination of the Outstanding Company
Voting Securities; (B) no Person (excluding any Successor Entity or any
employee benefit plan or related trust of the Company, such Successor Entity,
or any of their Affiliates) is the Beneficial Owner, directly or indirectly, of
twenty percent (20%) or more of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors of the Successor Entity, except to the extent that such ownership
existed prior to the Business Combination; and (C) at least a majority of the
members of the board of directors of the Successor Entity were members of the
Incumbent Board (including persons deemed to be members of the Incumbent Board
by reason of the proviso of Section 13.2(c)(ii)) at the time of the execution
of the initial agreement or of the action of the Board of Directors providing
for such Business Combination; or

 

(iv)                              Approval by the shareholders of the
Company of a complete liquidation or dissolution of the Company.

 

Article 14. Duration, Rescission, Amendment,
Modification, Suspension, and Termination

 

14.1       Duration
of Plan.  Unless sooner terminated as provided in
Section 14.2 or 14.3, the Plan shall terminate ten (10) years from the
Effective Date.

 

14.2       Automatic
Rescission and Termination of Awards and Plan. 
Notwithstanding
any other provision of the Plan, if delivery of the Firm Public Offering Shares
(as defined in the Master Agreement) to the Underwriters (as defined in the
Master Agreement) against payment therefor is not complete within four (4)
Business Days (as defined in the Master Agreement) after the Closing Date (as
defined in the Master Agreement), all Awards theretofore granted under the Plan
shall immediately be rescinded in all respects and the Plan and all of the
Award Agreements shall terminate, without the consent of any relevant
Participant or holder or beneficiary of an Award.

 

14.3       Amendment,
Modification, Suspension, and Termination of Plan.  The
Board of Directors may, at any time and from time to time, alter, amend,
modify, suspend, or terminate the Plan in whole or in part; provided,
however,
that, without the prior approval of the Company’s shareholders, no action shall
be taken that would  (a) increase
the total number of Shares available for issuance under the Plan or the Annual
Award Limits, except as provided in Section 4.4; (b) permit the exercise
price or grant price of any Stock Option, Stock Appreciation Right or Other

 

16

 

Stock-Based Award the value of which is based on the
appreciation of Shares from the date of grant (i) to be less than Fair Market
Value (except as may be permitted by Section 5.2, 6.1, or Article 8), or (ii)
to be repriced, replaced, or regranted through cancellation (except as may be
permitted by Section 15.4) or by lowering the exercise price or grant
price; (c) change the performance measurements listed in Section 12.2(a); or
(d) base any Covered Employee Annual Incentive Award on performance
measurements other than Consolidated Operating Earnings or Net Earnings; and provided,
further,
that no such action shall adversely affect in any material way any Award
previously granted under the Plan without the written consent of the
Participant holding such Award.  After
the Plan is terminated in accordance with this Section 14.3, no Award may be
granted but any Award previously granted shall remain outstanding in accordance
with the terms and conditions of the Plan and the Award.

 

14.4       Amendment,
Modification, Suspension, and Termination of Awards. 
The Committee shall have the authority at any time and from time to
time, alter, amend, modify, suspend or terminate the terms and conditions of
any Award; provided,
however,
that no such action shall adversely affect in any material way any Award
previously granted under the Plan without the written consent of the
Participant holding such Award.

 

14.5       Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  Subject to the limitations in Section 12.1(c) related
to Covered Employee Annual Incentive Awards and Section 12.1(d) related to
other Performance-Based Compensation, the Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of
unusual or nonrecurring events (including, without limitation, the events
described in Section 4.4) affecting the Company or the financial statements of
the Company or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent unintended dilution or enlargement of the
benefits or potential benefits intended to be made available under the
Plan.  The determination of the
Committee as to the foregoing adjustments, if any, shall be conclusive and
binding on Participants under the Plan.

 

Article 15. General Provisions

 

15.1       Settlement
of Awards; No Fractional Shares.  Each Award Agreement shall establish the
form in which the Award shall be settled. 
Awards (other than Stock Options and Restricted Stock) may be settled in
cash, Shares, other securities, additional Awards or any combination,
regardless of whether such Awards are originally denominated in cash or
Shares.  No fractional Shares shall be
issued or delivered pursuant to the Plan or any Award.  The Committee shall determine whether cash,
Awards, other securities or other property shall be issued or paid in lieu of
fractional Shares or whether such fractional Shares or any rights thereto shall
be forfeited or otherwise eliminated.

 

15.2       Tax
Withholding.  The Company shall have the power and the
right to deduct or withhold, or require a Participant to remit to the Company,
the minimum statutory amount to satisfy federal, state, and local taxes,
domestic or foreign, required by law or regulation to be withheld with respect
to any taxable event arising as a result of the Plan.

 

15.3       Share
Withholding.  With respect to withholding required upon
the exercise of Stock Options or Stock Appreciation Rights, upon the lapse of
restrictions on Restricted Stock and

 

17

 

Restricted Stock Units, upon the achievement of
performance goals related to Performance Shares and Performance Units, or any
other taxable event arising as a result of an Award granted hereunder,
Participants may elect, subject to the approval of the Committee, to satisfy
the withholding requirement, in whole or in part, by having the Company
withhold Shares having a Fair Market Value on the date the tax is to be determined
equal to the minimum statutory total tax that could be imposed on the
transaction.

 

15.4       Substitution
of Share-Based Awards.  The Committee may, without the consent of
any Participant, substitute any Award granted under the Plan which by its terms
is intended to be settled in Shares for any other type of Award intended to be
settled in Shares, including without limitation, the substitution of Stock
Appreciation Rights intended to be settled in Shares for Stock Options; provided,
however,
that the terms of the substituted Award and the economic benefit of the
substituted Award are at least equivalent to the terms and economic benefit of
the Award being replaced.

 

15.5       Transferability
of Awards.  Except as otherwise provided in a
Participant’s Award Agreement or otherwise at any time by the Committee, no
Award granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent or distribution and any attempt to enforce such a purported sale,
transfer, pledge, alienation or hypothecation shall be void.  Should the Committee permit transferability
of an Award, it may do so on a general or a specific basis, and may impose
conditions and limitations on any permitted transferability.  Unless transferability is permitted, Stock
Options and Stock Appreciation Rights may be exercised by a Participant only
during his or her lifetime.  If the
Committee permits any Stock Option or Stock Appreciation Right to be
transferred, references in the Plan to the exercise of a Stock Option or Stock
Appreciation Right by the Participant or payment of any amount to the
Participant shall be deemed to include the Participant’s transferee.

 

15.6       Termination
of Service; Forfeiture Events.

 

(a)                                  Termination
of Service.  Each Award Agreement shall specify the
effect of a Participant’s termination of service with the Company and any of
its Affiliates, including specifically whether the Participant’s rights,
payments, and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture, or recoupment, in addition to the effect on any
otherwise applicable vesting or performance conditions of an Award.  Such provisions shall be determined in the
Committee’s sole discretion, need not be uniform and may reflect distinctions
based on the reasons for termination.

 

(b)                                 Forfeiture
Events.  An Award Agreement may also specify other events that
may cause a Participant’s rights, payments and benefits with respect to an
Award to be subject to reduction, cancellation, forfeiture, or recoupment, or
which may affect any otherwise applicable vesting or performance conditions of
an Award.

 

15.7       Deferrals.  The Committee may permit or require a Participant to
defer such Participant’s receipt of the payment of cash or the delivery of
Shares that would otherwise be due to such Participant by virtue of any Award.

 

18

 

15.8       Conditions
and Restrictions on Shares.  The Committee shall impose such other
conditions or restrictions on any Shares received in connection with an Award
as it may deem advisable or desirable. 
These restrictions may include, but shall not be limited to, a
requirement that the Participant hold the Shares received for a specified
period of time or a requirement that a Participant represent and warrant in
writing that the Participants is acquiring the Shares for investment and
without any present intention to sell or distribute such Shares.  The certificates for Shares may include any
legend which the Committee deems appropriate to reflect any conditions and
restrictions applicable to such Shares.

 

15.9       Share
Certificates.  If an Award provides for issuance of
certificates to reflect the transfer of Shares, the transfer of such Shares may
be effected on an uncertificated basis, to the extent not prohibited by
applicable law or the rules of any stock exchange on which the Shares are
listed.  Shares issued in connection
with Awards of Restricted Stock may, to the extent deemed appropriate by the Committee,
be retained in the Company’s possession until such time as all conditions or
restrictions applicable to such Shares have been satisfied or lapse.

 

15.10     Compliance
with Law.  The granting of Awards and the issuance
of Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or stock
exchanges on which the Company is listed as may be required.  The Company shall have no obligation to
issue or deliver evidence of title for Shares issued under the Plan prior to:

 

(a)                                  Obtaining any approvals from governmental agencies
that the Company determines are necessary or advisable; and

 

(b)                                 Completion of any registration or other qualification
of the Shares under any applicable national or foreign law or ruling of any
governmental body that the Company determines to be necessary or advisable.

 

The inability
of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder shall relieve
the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

 

15.11     Rights as
a Shareholder.  Except as otherwise provided herein, a
Participant shall have none of the rights of a shareholder with respect to
Shares covered by any Award until the Participant becomes the record holder of
such Shares.

 

15.12     Awards to
Non-U.S. Employees.  To comply with the laws in other
countries in which the Company or any of its Affiliates operates or has
Employees, directors, or Third Party Service Providers, the Committee, in its
sole discretion, shall have the power and authority to:

 

19

 

(a)                                  Determine which Affiliates shall be covered by the
Plan;

 

(b)                                 Determine which Employees, directors and Third Party
Service Providers outside the United States are eligible to participate in the
Plan;

 

(c)                                  Modify the terms and conditions of any Award granted
to Employees, directors and Third Party Service Providers outside the United
States to comply with applicable foreign laws;

 

(d)                                 Establish subplans and modify exercise procedures and
other terms and procedures, to the extent such actions may be necessary or
advisable.  Any subplans and
modifications to Plan terms and procedures established under this Section
15.12(d) by the Committee shall be attached to this Plan document as
appendices; and

 

(e)                                  Take any action, before or after an Award is made,
that it deems advisable to obtain approval or comply with any necessary local
government regulatory exemptions or approvals.

 

15.13     No Right
to Continued Service.  Nothing in the Plan or an Award Agreement
shall interfere with or limit in any way the right of the Company or any of its
Affiliates to terminate any Participant’s employment or service at any time or
for any reason not prohibited by law, nor confer upon any Participant any right
to continue his or her employment or service for any specified period of
time.  Neither any Award nor any
benefits arising under the Plan shall constitute an employment or consulting
contract with the Company or any of its Affiliates and, accordingly, subject to
Article 14, the Plan and the benefits hereunder may be terminated at any time
in the sole and exclusive discretion of the Board of Directors or Committee, as
applicable, without giving rise to any liability on the part of the Company or
any of its Affiliates.

 

15.14     Beneficiary
Designation.  Each Participant under the Plan may, from
time to time, name any beneficiary or beneficiaries (who may be named
contingently or successively) to whom any benefit under the Plan is to be paid
in case of his or her death before he or she receives any or all of such
benefit.  Each such designation
shall revoke all prior designations by the same Participant, shall be in a
form prescribed by the Committee, and will be effective only when filed by the
Participant in writing with the Company during the Participant’s lifetime.  In the absence of any such designation,
amounts due under the Plan remaining unpaid at the Participant’s death shall be
paid to the Participant’s estate.

 

15.15     Other
Compensation Plans or Arrangements.  The Committee shall have the authority to
grant Awards as an alternative to or as the form of payment for grants or
rights earned or due under other compensation plans or arrangements of the
Company.

 

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

 

15.17     Severability.  If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or as to any Person or Award, or would

 

20

 

disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken
as to such jurisdiction, Person, or Award, and the remainder of the Plan and
any such Award shall remain in full force and effect.

 

15.18     Unfunded
Plan.  Participants shall have no right, title, or interest
whatsoever in or to any investments that the Company or any of its Affiliates
may make to aid it in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action
taken pursuant to its provisions, shall create or be construed to create a
trust of any kind, or a fiduciary relationship between the Company and any
Participant, beneficiary, legal representative, or any other person.  To the extent that any person acquires a
right to receive payments from the Company or any of its Affiliates under the
Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company or an Affiliate, as the case may be.  All payments to be made hereunder shall be
paid from the general funds of the Company or an Affiliate, as the case may be,
and no special or separate fund shall be established and no segregation of
assets shall be made to assure payment of such amounts except as expressly set
forth in the Plan.  The Plan is not
subject to the U.S. Employee Retirement Income Security Act of 1974, as amended
from time to time.

 

15.19     Nonexclusivity
of the Plan.  The adoption of the Plan shall not be
construed as creating any limitations on the power of the Board of Directors or
Committee to adopt such other compensation arrangements as it may deem
desirable for any Participant.

 

15.20     No
Constraint on Corporate Action.  Nothing in the Plan shall be construed to
(a) limit, impair, or otherwise affect the Company’s or its Affiliate’s
right or power to make adjustments, reclassifications, reorganizations, or
changes of its capital or business structure, or to merge or consolidate, or
dissolve, liquidate, sell, or transfer all or any part of its business or
assets, or (b) limit the right or power of the Company or its Affiliate to take
any action which such entity deems to be necessary or appropriate.

 

15.21     Successors. 
All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the
business or assets of the Company.

 

15.22     Governing
Law.  The Plan and each Award Agreement shall be governed by
the laws of the State of Delaware, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of
the Plan to the substantive law of another jurisdiction.

 

21Exhibit 10.57

 

DATED [•], [•], 2004

 

 

General Electric Company

 

General Electric Capital Corporation

 

IGE USA Investments

 

Consolidated Insurance Holdings Limited

 

Financial Assurance Company Limited

 

Financial Insurance Group Services Limited

 

GE Capital SAS

 

GEFA International Holdings Inc.

 

UK Group Holding Company Limited

 

Genworth Financial Inc.

 

and

 

GEFA UK Holdings Limited

 

 

EUROPEAN TAX MATTERS AGREEMENT

 

Slaughter and
May

One Bunhill Row

London EC1Y 8YY

 

(SME/MCL)

(TX033420033)

 

 

Table of Contents

 

	
  1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  TAX RETURNS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  SURRENDER OF GROUP
  RELIEF

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  UK VAT GROUP

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  OVERPAYMENTS ON
  ACCOUNT

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  TRANSFER TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  REMEDIES AND
  WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  FURTHER ASSURANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  TIME OF ESSENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  INVALIDITY

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  CHOICE OF
  GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  AGENT FOR SERVICE

  	
   

  

 

 

DRAFT – 01.04.04 -

 

This Tax Matters Agreement is made the [•] day of [•], 2004

 

BETWEEN:-

 

1.             General
Electric Company, a company incorporated under the laws of the State of New
York, USA, whose registered office is at 3135 Easton Turnpike, Fairfield, CT
06828, USA (“GE”);

 

2.             General
Electric Capital Corporation, a company incorporated under the laws of the
State of Delaware, USA, whose registered office is at 1209 Orange Street,
Wilmington, County of Newcastle, Delaware 19801, USA (“GECC”);

 

3.             IGE
USA Investments, a company incorporated under the laws of England and Wales
whose registered office is at 3rd floor, 1 Trevelyan Square, Boar
Lane, Leeds, LS1 6HP, England (“IGE”);

 

4.             Consolidated
Insurance Holdings Limited, a company incorporated under the laws of England
and Wales whose registered office is at The Priory, Hitchin, Hertfordshire, SG5
2DW, England (“CIHL”);

 

5.             Financial
Assurance Company Limited a company incorporated under the laws of England and
Wales whose registered office is at Vantage West, Great West Road, Brentford,
Middlesex, TW8 9AG (“FACL”);

 

6.             Financial
Insurance Group Services Limited a company incorporated under the laws of
England and Wales whose registered office is at Vantage West, Great West Road,
Brentford, Middlesex TW8 9AG (“FIGSL”);

 

7.             GE
Capital SAS a company incorporated under the laws of France whose registered
office is at Tour Europlaza, La Defense 4, 20, Avenue Andre-Prothin,92063 Paris
La Defense Cedex ( “GEC SAS”);

 

 

7.             GEFA
International Holdings Inc. a company incorporated under the laws of the State
of Delaware, USA whose registered office is at 2711 Centerville Road, Suite
400, City of Wilmington, County of Newcastle, Delaware 19808, USA (“GEFA”);

 

8.             UK
Group Holding Company Limited a company incorporated under the laws of England
and Wales whose registered office is at Vantage West, Great West Road,
Brentford, Middlesex, TW8 9AG (“UKGHCL”);

 

9.             Genworth
Financial Inc., a company incorporated under the laws of the State of Delaware,
USA whose registered office is at 2711 Centerville Road, Suite 400, City of
Wilmington, County of Newcastle. Delaware 19808, USA (“Genworth”);

 

10.           GEFA
UK Holdings Limited, a company incorporated under the laws of England and Wales
whose registered office is at Vantage West, Great West Road, Brentford,
Middlesex, TW8 9AG   (“UK Holdings”).

 

WHEREAS:-

 

(A)          Pursuant
to the Master Agreement dated [•], [•] 2004 between,
inter alia, GE and Genworth (the “Master Agreement”), Genworth has agreed to
acquire the outstanding shares and/or stock of certain subsidiaries of GE and
the business and assets of FACL (the “Acquisition”).  It is expected that the business and assets of FACL will be
transferred to Financial New Life Company Limited (“FINCL”) pursuant to a scheme
under section 105 of the Financial Services and Markets Act 200 (the “105 Scheme”).  If for whatever reason the 105 Scheme does
not take place it is anticipated that the entire issued share capital of FACL
will be transferred to UK Holdings.

 

(B)          Pursuant
to the US Tax Management Agreement dated [•], [•] 2004 between,
inter alia, GE and Genworth, (the “US TMA”), GE and Genworth have entered into
an arrangement governing the US Tax affairs of the subsidiaries acquired under
the Acquisition.

 

(C)          Pursuant
to the Global Transition Services Agreement dated [•], [•] 2004 between,
inter alia, GE and Genworth, GE and its subsidiaries will provide or cause to
be provided certain administrative and support services and other assistance to
Genworth and its subsidiaries on a transitional basis and Genworth and its
subsidiaries will provide or cause to be provided certain administrative and
support services and other assistance to GE and its subsidiaries (the “Global TSA”).

 

(D)          Further
to and in connection with the Global TSA, FIGSL and GE Life Services Limited
entered into a Transitional Services Agreement (the “UK TSA”) pursuant to which
each party is to provide transitional administrative and support services to
the other and its group companies on a reciprocal basis on the terms and
conditions therein.

 

2

 

(E)           The
purpose of this Agreement is to record the parties’ agreement with regard to
the European Tax affairs of certain subsidiaries acquired under the Acquisition
(the “European
Subsidiaries” a full list of which is set out in Schedule 1 hereto).

 

1.            DEFINITIONS

 

In this Agreement and in the Schedules:-

 

(i)            capitalised
terms used but not otherwise defined in this Agreement shall have the meaning
ascribed to them in the US TMA. 
However, the following expressions shall have the following meanings:-

 

	
  “Accounts”

  	
   

  	
  in relation to any company means the accounts for
  the last full accounting period of that company prior to Completion;

  
	
   

  	
   

  	
   

  
	
  “Agreed Rate”

  	
   

  	
  Means LIBOR + 200 bps compounded on an annual basis;

  
	
   

  	
   

  	
   

  
	
  “Business Day”

  	
   

  	
  Means a day (other than a Saturday or a Sunday) on
  which banks are open for business in London and New York;

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  Means the Closing Date under the Master Agreement;

  
	
   

  	
   

  	
   

  
	
  “European Subsidiary”

  	
   

  	
  Means those companies acquired by Genworth pursuant
  to the Acquisition which are Tax resident in a European country a full list
  of which is set out in Schedule 1 hereto;

  
	
   

  	
   

  	
   

  
	
  “Exit Date”

  	
   

  	
  in respect of a European Subsidiary member of the UK
  VAT Group, means such date as the Commissioners of HM Customs & Excise
  specify by notice to the European Subsidiary or GE Capital Bank Limited as
  being the date from which they shall terminate the treatment of that European
  Subsidiary as a member of the UK VAT Group;

  

 

3

 

	
  “Group Relief”

  	
   

  	
  Means any loss, allowance or other amount eligible
  for surrender by way of group relief in accordance with the provisions
  contained in sections 402 to 413 ICTA and shall also include the
  amount of any loss utilised as a result of an election under section 171A of
  the Taxation of Chargeable Gains Act 1992;

  
	
   

  	
   

  	
   

  
	
  “ICTA”

  	
   

  	
  Means the Income and Corporation Taxes
  Act 1988;

  
	
   

  	
   

  	
   

  
	
  “Notional VAT Credit” or “Notional
  VAT Liability”

  	
   

  	
  in respect of a European Subsidiary member of the UK
  VAT Group for a Relevant VAT Period, means (in the case of a Notional VAT
  Liability) the amount of VAT for which the European Subsidiary would have
  been liable to account to H.M. Customs & Excise for the Relevant VAT
  Period or (in the case of a Notional VAT Credit) the amount of VAT which the
  European Subsidiary would have been entitled to reclaim from H.M. Customs
  & Excise for the Relevant VAT Period if (in either such case) the
  European Subsidiary had been separately registered for VAT purposes
  throughout the Relevant VAT Period but there were disregarded any supply made
  to or by the European Subsidiary by or to any member of the UK VAT Group;

  
	
   

  	
   

  	
   

  
	
  “Proceedings”

  	
   

  	
  Means any proceeding, suit or action arising out of
  or in connection with this agreement;

  
	
   

  	
   

  	
   

  
	
  “Relevant VAT Period”

  	
   

  	
  in respect of a European Subsidiary member of the UK
  VAT Group, means the period (if any) from Completion to the Exit Date, which shall,
  for the purposes of this Agreement, be assumed to constitute a prescribed
  accounting period (as defined in VATA 1994);

  
	
   

  	
   

  	
   

  
	
  “Relief”

  	
   

  	
  Means any relief, allowance or credit in respect of
  any Tax or any deduction in computing Income, Profits or Gains for the
  purposes of any Tax;

  

 

4

 

	
  “Remaining Supergroup Member”

  	
   

  	
  Means any member of the UK Supergroup other than any
  European Subsidiary;

  
	
   

  	
   

  	
   

  
	
  “Service Document”

  	
   

  	
  Means a writ, summons, order, judgment or other
  document relating to or in connection with any Proceedings;

  
	
   

  	
   

  	
   

  
	
  “Tax Authority”

  	
   

  	
  Means any Taxing or other authority (whether within
  or outside the United Kingdom) competent to impose or collect any Tax;

  
	
   

  	
   

  	
   

  
	
  “Tax”

  	
   

  	
  Means all taxes, levies, duties, imposts, charges
  and withholdings of any nature whatsoever and wherever imposed except (other
  than for the purposes of clause 8 (Payments), any such taxes, levies, duties,
  imposts, charges or withholdings imposed in or by the United States of
  America, including (without limitation) corporation tax, advance corporation
  tax, income tax (including income tax required to be deducted or withheld
  from or accounted for in respect of any payment), capital gains tax,
  inheritance tax, VAT, national insurance contributions, stamp duty reserve
  tax, stamp duty land tax, duties of customs and excise and any other taxes,
  levies, duties, charges, imposts or withholdings corresponding to, similar
  to, replaced by or replacing any of them and all other taxes on gross or net
  Income, Profits or Gains and taxes on receipts, sales, use, occupation,
  franchise, value added, and personal property, but excluding stamp duty,
  together with all penalties, charges and interest relating to any of them or
  to any late or incorrect return in respect of any of them;

  
	
   

  	
   

  	
   

  
	
  “UK Subsidiary”

  	
   

  	
  means any European Subsidiary which has at any time
  been a member of the UK Supergroup;

  

 

5

 

	
  “UK Supergroup”

  	
   

  	
  means, in respect of any time on or before 30
  October 2003, IGE USA Holdings (“IGEH”) and any company which was at that
  time a member of the same group as IGEH within the meaning of section 402(2)
  ICTA and, in respect of any time thereafter, IGE and any company which was at
  that time a member of the same group as IGE within the meaning of section
  402(2) ICTA;

  
	
   

  	
   

  	
   

  
	
  “UK VAT Group”

  	
   

  	
  means the group of companies of which GE Capital
  Bank Limited is the representative member for the purposes of VAT;

  
	
   

  	
   

  	
   

  
	
  “UK VAT Group Member”

  	
   

  	
  means any European Subsidiary which is a member of
  the UK VAT Group;

  
	
   

  	
   

  	
   

  
	
  “VAT”

  	
   

  	
  means value added tax;  and

  
	
   

  	
   

  	
   

  
	
  “VATA 1994”

  	
   

  	
  means the Value Added Tax Act 1994.

  

 

1.2           Any
reference to “Income, Profits or Gains” shall include any income, profits or
gains which are deemed to be earned, accrued or received for the purpose of any
Tax;

 

2.            TAX RETURNS

 

2.1           Genworth
shall procure that FIGSL, or the appropriate Genworth affiliate in the case of
a non-UK European subsidiary, shall, at its cost and expense, prepare all
documentation and deal with all matters (including correspondence) relating to
the Tax returns of the European Subsidiaries for all accounting periods ending
on or prior to 31 December, 2004.

 

2.2           Genworth
shall procure that the European Subsidiaries shall cause the returns mentioned
in clause 2.1 above to be authorised, signed and submitted to the appropriate
authority.  If requested reasonably in
advance of the relevant due date for filing in writing by GE, FIGSL shall
promptly provide to GE and its accounting advisers draft copies of such returns
mentioned in clause 2.1 above as GE may specify.  Genworth will give reasonable consideration to the reasonable
comments of GE and its accounting adviser thereon provided that such comments
are received reasonably in advance of the due date for the filing of the
relevant return.  Notwithstanding the
foregoing, Genworth shall not file any tax return in a manner that would
materially adversely effect GE or any GE affiliate without the consent of GE,
which consent shall not be unreasonably withheld.

 

6

 

2.3           Clauses
2.2 and 2.6 notwithstanding, Genworth shall not be obliged to procure that any
of the European Subsidiaries authorise, sign or submit any Tax return that is
not true and accurate in all material respects.

 

2.4           Genworth
or its duly authorised agent shall have sole conduct of all tax affairs of the
European Subsidiaries relating to accounting periods ending after 31 December,
2004 (save that Genworth shall have sole conduct of all tax affairs of FINCL
from the time of its incorporation and that GE shall have sole conduct of all
tax affairs of FACL in respect of those periods of account in which that
company is no longer trading as an insurance company).  The parties shall grant each other or their
agents all such assistance as may reasonably be required in the conduct of all
such Tax affairs.

 

2.5           In
addition to the foregoing, GE agrees to provide, and to procure that any of its
subsidiaries from time to time will provide, all such assistance as Genworth
may reasonably require for the purposes of preparing any returns, audits or
filings for itself and/or any of its subsidiaries from time to time and
Genworth agrees to provide, and to procure that any of its subsidiaries from
time to time will provide, all such assistance as GE may reasonably require for
the purposes of preparing any returns, audits or filings for itself and/or any
of its subsidiaries from time to time. 
The recipient of any such assistance shall make such payment for that
assistance as the UK TSA may specify (if any).

 

2.6           In the
event of a dispute arising in relation to clause 2.2, an application shall be
made to the president of the Institute of Chartered Accountants in England and
Wales for the time being for him or her to appoint a suitably qualified and
independent firm of accountants to resolve such dispute (the “Appointed
Firm”).The purpose of the reference of the dispute to the Appointed
Firm shall be to determine whether or not FIGSL has given reasonable
consideration to any reasonable comments of GE or whether GE unreasonably
withheld any consent provided in accordance with clause 2.2 purposes, the
Appointed Firm     shall be deemed to act as an expert and not as an arbitrator, and
accordingly the provisions of the Arbitration Act 1979 shall not apply.  The decision of the Appointed Firm as to the
matter referred to it shall, except in the case of manifest error, be
conclusive and binding on the parties. 
The Appointed Firm’s costs shall be borne by the parties on a just and
reasonable basis as decided by the Appointed Firm bearing in mind its
conclusions.

 

3.            SURRENDER OF GROUP RELIEF

 

3.1           Genworth
shall procure that each UK Subsidiary shall, and GE shall procure that each
Remaining Supergroup Member shall, make or claim, as appropriate, all such
surrenders of Group Relief as are specified in Schedule 2 hereto as can be
validly made or claimed (to the extent that such claims or surrenders have not
already been validly made and accepted by the Inland Revenue.)

 

7

 

Each such Group Relief surrender shall be
made for full value and in consideration for (a) each other Group Relief
surrender to be made pursuant to this clause 3.1; (b) such payment, if any, as
is made pursuant to clause 3.9,  and (c)
the Initial Payment, in each case as appropriate, except that where Genworth
and GE agree, GE may waive payment by any UK subsidiary in respect of any Group
Relief surrender. The “Initial Payment” is a payment to be made on
Completion, and to be funded by a GE subsidiary, as follows:

 

(i)            from
GEFA to GECC, in the event that the full tax value of the aggregate losses
surrendered by the Remaining Supergroup Members to the UK Subsidiaries exceeds
the full tax value of the aggregate losses surrendered by the UK Subsidiaries
to the Remaining Supergroup Members, and of an amount equal to the difference
in value between the two;  or

 

(ii)           from
GECC to GEFA, in the event that the full tax value of the aggregate losses
surrendered by the UK Subsidiaries to the Remaining Supergroup Members exceeds
the full tax value of the aggregate losses surrendered by the Remaining
Supergroup Members to the UK Subsidiaries, and of an amount equal to the
difference in value between the two;  or

 

(iii)          no
payment in the event that the full tax value of the aggregate losses
surrendered by the UK Subsidiaries to the Remaining Supergroup Members equals
the full tax value of the aggregate losses surrendered by the Remaining
Supergroup Members to the UK Subsidiaries.

 

3.2           In the
event that any loss specified in Schedule 2 to be surrendered exceeds £40m and
such loss has not yet been agreed with the Inland Revenue, the value of that
loss to be taken into account for the purposes of the Initial Payment
calculation in clause 3.1 shall be a value equal to one half of the full tax
value of such loss with the remainder to be taken into account in calculating
any relevant Adjustment Payment to be made in accordance with clause 3.5 below
if and when such loss is agreed with the Inland Revenue.

 

3.3           Prior
to 31 March each year, (commencing with 31 March, 2005 and continuing until all
Tax returns for each of the UK Subsidiaries and the Remaining Supergroup
Members for all accounting periods commencing before Completion are agreed with
the Inland Revenue), GE shall deliver to Genworth a statement showing the
extent to which the losses of the Remaining Supergroup Members for any time
before Completion have been agreed with the Inland Revenue to be either greater
than or less than the amount assumed to be available in Schedule 2 and the
changes, if any, agreed with the Inland Revenue in the amount of profits of the
Remaining Supergroup Members for any time before Completion and Genworth shall
deliver to GE a statement showing the extent to which any losses of any UK
Subsidiary shown in Schedule 2 has

 

8

 

been agreed with the Inland Revenue to be
either greater than or less than the amount shown in Schedule 2 and the
changes, if any, agreed with the Inland Revenue in the amount of profits of any
European Subsidiary for any time before Completion (together that year’s “Adjustment
Statement”).

 

3.4           Genworth
shall procure that each UK Subsidiary shall, and GE shall procure that each
Remaining Supergroup Member shall, make such adjustments to existing surrenders
of Group Relief or make or claim, as appropriate, all such new surrenders of
Group Relief as are necessary to make the appropriate changes indicated by the
Adjustment Statements in that year.  Each
such adjustment to an existing surrender of Group Relief or new surrender of
Group Relief shall be made for full value in consideration for a) each other
adjustment to an existing surrender of Group Relief or new surrender of Group
Relief to be made under this clause 3.4; (b) such payment, if any, as is made
pursuant to clause 3.9,  and (c) the
Adjustment Payment, in each case as appropriate.

 

3.5           On 31
March each year, a net payment (an “Adjustment Payment”) shall be made from
Genworth (or its designated affiliate) to GECC or from GECC to Genworth (or its
designated affiliate), as appropriate, to reflect the following:

 

(i)            payment
by Genworth (or its designated affiliate) to GECC to reflect the full tax value
of any additional losses surrendered by any Remaining Supergroup Member to any
UK Subsidiary pursuant to clause 3.4 and to the extent that payment has not
already been made for that loss pursuant to this clause 3;

 

(ii)           payment
by GECC to Genworth (or its designated affiliate)  to reflect the full tax value of any additional losses
surrendered by any UK Subsidiary to any Remaining Supergroup Member pursuant to
clause 3.4 and to the extent that payment has not already been made for that
loss pursuant to this clause 3;

 

(iii)          payment
by GECC to Genworth (or its designated affiliate) to reflect a rebate for the
full tax value of any loss of any Remaining Supergroup Member for which payment
has been made pursuant to this clause 3 to the extent that the surrender of
such loss is withdrawn pursuant to clause 3.4; 
and

 

(iv)          payment
by Genworth (or its designated affiliate) to GECC to reflect a rebate for the
full tax value of any loss of any UK Subsidiary for which payment has been made
pursuant to this clause 3 to the extent that the surrender of such loss is
withdrawn pursuant to pursuant to clause 3.4.

 

9

 

3.6           Genworth
hereby undertakes that it shall, and shall procure that each UK Subsidiary
shall, and GE hereby undertakes that it shall, and shall procure that each
Remaining Supergroup Member shall, use all reasonable endeavours to procure
that full effect is given to the surrenders to be made pursuant to this clause
3 and that such surrenders are allowed in full by the Inland Revenue and that
each relevant company shall sign and submit to the Inland Revenue all such
notices of consent to surrender (including provisional protective notices of
consent in cases where any relevant Tax computation has not yet been agreed)
and all such other documents and returns as may be necessary to secure that
full effect is given to this clause 3.

 

3.7           The
foregoing provisions of this clause 3 notwithstanding, no UK Subsidiary shall
be obliged to accept any surrender of any loss of any Remaining Supergroup
Member, nor shall any Remaining Supergroup Member be obliged to accept any
surrender of any loss of any UK Subsidiary to the extent that:

 

(i)            such
loss, as shown in an Adjusted Statement, exceeds the corresponding loss
reflected in Schedule 2;  and

 

(ii)           Genworth,
in the case of a surrender to a UK Subsidiary, or GE, in the case of a
surrender to a Remaining Supergroup Member, notifies GE or Genworth as
appropriate that in its opinion, acting reasonably, accepting such an increased
surrender would be prejudicial to the relevant member(s) of its group.

 

3.8           Both
GE and Genworth agree to act in good faith both in preparing any Adjustment
Statements pursuant to clause 3.3 above and in determining whether the
surrender of an increased loss would be prejudicial to the relevant member(s)
of its group pursuant to 3.7 above.

 

3.9           In the
event that the aggregate amount of UK corporation tax saved by the Remaining
Supergroup Members as a result of any losses surrendered to any of them by a UK
Subsidiary pursuant to this clause 3 exceeds the amount of UK corporation tax
saved by that UK Subsidiary as a result of any losses surrendered to it by any
Remaining Supergroup Members, Genworth shall pay to that UK Subsidiary an
amount equal to that excess.

 

3.10         In the
event of any dispute arising under this clause 3 either as to the amount of
losses that any company has or is able to validly surrender to another or as to
whether the surrender of a particular loss would be prejudicial for the
purposes of clause 3.7, an application shall be made to the president of the
Institute of Chartered Accountants in England and Wales for the time being for
him or her to appoint a suitably qualified and independent firm of accountants
to resolve such dispute (the “Appointed Firm”).  The purpose of the reference of the dispute to the Appointed Firm
shall be to determine the amount of losses that the particular company (or
companies) has or is able to validly surrender to another or as to whether the
surrender of a particular loss would

 

10

 

be prejudicial for the purposes of clause
3.7 above as appropriate.  For these
purposes, the Appointed Firm shall be deemed to act as an expert and not as an
arbitrator, and accordingly the provisions of the Arbitration Act 1979 shall
not apply.  The decision of the
Appointed Firm as to the matter referred to it shall, except in the case of
manifest error, be conclusive and binding on the parties.  The Appointed Firm’s costs shall be borne by
the parties on a just and reasonable basis as decided by the Appointed Firm
bearing in mind its conclusions.

 

4.            UK VAT GROUP

 

4.1           Upon
the Trigger Date GE shall procure that GE Capital Bank Limited promptly apply
to Customs & Excise under section 43C of VATA 1994 to remove such of
the European Subsidiaries as are members of the VAT Group from the VAT Group
and will procure that Genworth is kept informed of the progress of the
application and is provided with copies of all correspondence.

 

4.2           GE
shall, within thirty days of receiving notice of the Exit Date, procure the
deliverance to Genworth of a statement, together with reasonable explanatory
details, workings and calculations (the “VAT Statement”) certifying whether the UK
Subsidiaries have, in aggregate, a Notional VAT Liability or a Notional VAT
Credit for the Relevant VAT Period and, if so, the amount of such aggregate
Notional VAT Liability or Notional VAT Credit.

 

4.3           Genworth
shall procure that the European Subsidiaries provide such information and
assistance as GE or its duly authorised agent may reasonably require for the
purposes of preparing the VAT Statement. 
GE shall procure that GE Capital Bank Limited act in good faith and
shall use reasonable skill and care in preparing the VAT Statement and the VAT
Statement shall, in the absence of manifest error, be binding on the parties.

 

4.4           If the
VAT Statement shows that the UK Subsidiaries have in aggregate a Notional VAT
Credit, GE shall pay to Genworth an amount equal to such Notional VAT Credit
within fourteen days of delivery of the VAT Statement to Genworth under
clause 4.3.

 

4.5           If the
VAT Statement shows that the UK Subsidiaries have in aggregate a Notional VAT
Liability, Genworth shall pay to GE an amount equal to such Notional VAT
Liability within fourteen days of delivery of the VAT Statement to the Genworth
under clause 4.3.

 

5.            OVERPAYMENTS ON ACCOUNT

 

5.1           On
Completion, GE will pay to Genworth an amount equal to any amount set out in
Schedule 3 hereto as being an overpayment on account of tax by any European
Subsidiary.

 

11

 

5.2           In the
event that the aggregate amounts paid by the European Subsidiaries to GE
Capital Corporation Limited for or on account of any Tax liability properly
attributable to any period ending on or before 31 December, 2003 less any
amounts paid by GE to Genworth pursuant to clause 5.1 or otherwise refunded to
the European Subsidiaries exceed the actual Tax liability of the European
Subsidiaries for such periods, GE shall pay to Genworth an amount equal to the
amount of such excess.

 

5.3           In the
event that the aggregate amounts paid by the European Subsidiaries to GE
Capital Corporation Limited for or on account of any Tax liability properly
attributable to any period ending on or before 31 December, 2003 less any
amounts paid by GE to Genworth pursuant to clause 5.1 or otherwise refunded to
the European Subsidiaries are less than the actual Tax liability of the
European Subsidiaries for such periods, Genworth shall pay to GE an amount
equal to the amount of such deficiency.

 

5.4           GE
shall procure that GE Capital Corporation Limited give notice to Genworth
promptly upon determining, in good faith, that a payment under either clause
5.2 or clause 5.3, as appropriate, is required and, provided that Genworth
agrees the amount, payment shall be made to or by Genworth within 10 Business
Days of receipt of such notice by Genworth.

 

6.            INDEMNITIES

 

6.1           GE
hereby covenants to pay to Genworth an amount equal to any liability or
increased liability to Tax of any of the European Subsidiaries which arises as
a consequence of or by reference to any Relevant Company, after Completion,
failing to pay the whole of the Tax charged by any Tax assessment made in
respect of that Relevant Company within six months of the date of that Tax
assessment.  For the purposes of this
clause 6.1, the term “Relevant Company” shall mean GE and any company, other
than Genworth, any European Subsidiary or any other company acquired by
Genworth pursuant to the Acquisition, which is or has at any time been a member
of the UK Supergroup, the UK VAT Group or otherwise treated for the purposes of
any Tax as being a member of the same group of companies as GE or any of its
subsidiaries for the purposes of any Tax.

 

6.2           Genworth
hereby covenants to pay to GE an amount equal to any liability or increased
liability to Tax of GE or any of its subsidiaries which arises as a consequence
of or by reference to any European Subsidiary, after Completion, failing to pay
the whole of the Tax charged by any Tax assessment made in respect of that
European Subsidiary within six months of the date of that Tax assessment.

 

12

 

7.            TRANSACTION/TRANSFER TAXES

 

7.1           Pursuant
to Sections 2 and 19 of the US TMA all Transaction and Transfer taxes,
including stamp duty, arising in connection with the Acquisition are for the
account of GE and are to be dealt with in accordance with those Sections unless
otherwise agreed between the parties to this Agreement.

 

7.2           Notwithstanding section 7.1 above, in respect
of any UK corporation tax arising on the transfer of the shares of Consolidated
Insurance Group Limited from FACL to Financial New Life Company Limited
pursuant to the 105 Scheme, there shall be for the account of GE under section 7.1
only the amount of such corporation tax that is attributable to the amount by
which the value of those shares at Completion exceeds the original cost to FACL
of the acquisition of those shares.

 

8.            PAYMENTS

 

8.1           All
sums payable by one party hereto (the “Payer”) to any other (the “Recipient”)
under this Agreement shall be paid to the Recipient or as the Recipient may
from time to time direct in full, without set-off, counterclaim, restriction,
condition, deduction or withholding (except any deduction or withholding for or
on account of Tax required by law), on the due date therefor, upon demand by
the Recipient and if not so paid shall carry interest on the balance for the
time being outstanding at the Agreed Rate.

 

8.2           If the
Payer is required by law to make any deduction or withholding from any payment
due under this Agreement, the amount of such payment shall be increased by such
amount as to ensure that the payment actually received is equal to the amount
which would have been payable had no withholding or deduction been
required.  If the Recipient obtains any
credit for any such deduction or withholding then it shall rebate to the Payer
such amount of such credit as will leave it in the same net after tax position
that it would have been in had no such deduction or withholding been required.

 

8.3           If
payment (excluding any amount of default or other interest payable in respect
thereof) payable under this Agreement is liable to Tax the hands of the
Recipient (including in circumstances where any Relief is available in respect
of such liability), the amount payable shall be increased by such amount as
will leave the Recipient in the same net after tax position as that it would
have been in had the payment not been so liable to Tax (and ignoring the
availability of such Relief other than any such Relief to which the payment has
given rise).

 

13

 

9.            TERMINATION

 

9.1           This
agreement shall terminate on 31 December, 2011 unless there is an earlier
Change of Control in which event this agreement shall terminate with immediate
effect upon such Change of Control.

 

9.2           In the
event that this agreement terminates early upon a Change of Control, the
parties hereto shall in good faith and in writing agree what further payments,
if any, are more likely than not to be required to be made pursuant to any of
clauses 3.5, 5.2 and 5.3 and such payments shall be made by the appropriate
party within 10 Business Days of such agreement being reached.

 

9.3           In the
event of any dispute arising under this clause 9 as to the amount of further
payments required to be made pursuant to clause 9.2 an application shall be
made to the president of the Institute of Chartered Accountants in England and
Wales for the time being for him or her to appoint a suitably qualified and
independent firm of accountants to resolve such dispute (the “Appointed
Firm”).  The purpose of the
reference of the dispute to the Appointed Firm shall be to determine the amount
of further payments that each of the parties is more likely or not to make
pursuant to any of clauses 3.5, 5.2 and 5.3, For these purposes, the Appointed
Firm shall be deemed to act as an expert and not as an arbitrator, and
accordingly the provisions of the Arbitration Act 1979 shall not apply.  The decision of the Appointed Firm as to the
matter referred to it shall, except in the case of manifest error, be
conclusive and binding on the parties. 
The Appointed Firm’s costs shall be borne by the parties on a just and
reasonable basis as decided by the Appointed Firm bearing in mind its
conclusions.

 

10.          REMEDIES AND WAIVERS

 

10.1         No delay
or omission on the part of any party to this agreement in exercising any right,
power or remedy provided by law under this agreement shall:-

 

(i)            impair
such right, power or remedy; or

 

(ii)           operate
as a waiver thereof.

 

10.2         The
single or partial exercise of any right, power or remedy provided by law or
under this agreement shall not preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.

 

10.3         The
rights, powers and remedies provided in this agreement are cumulative and not
exclusive of any rights, powers and remedies provided by law.

 

14

 

11.          ASSIGNMENT

 

11.1         This
agreement shall not be assigned or transferred by any party hereto, whether in
whole or in part, without the prior written consent of both GE and Genworth.

 

12.          FURTHER ASSURANCE

 

12.1         Each of
the parties to this agreement shall from time to time, on being required to do
so by any other party to this agreement now or at any time in the future, do
or, so far as it is able to, procure the doing of all such acts and/or execute
or, so far as it is able to, procure the execution of all such documents in a
form satisfactory to the party concerned as that party may reasonably consider
necessary for giving full effect to this agreement and securing to that party
the full benefit of the rights, powers and remedies conferred upon it in this
agreement.

 

13.          NOTICE

 

13.1         Any
notice or other communication given or made under or in connection with the
matters contemplated by this deed shall be in writing (other than writing on
the screen of a visual display unit or other similar device which shall not be
treated as writing for the purposes of this clause).

 

13.2         Any such
notice or other communication shall be addressed as provided in clause 13.3
below and, if so addressed, shall be deemed to have been duly given or made as
follows:-

 

(i)            if
sent by personal delivery, upon delivery at the address of the relevant party;

 

(ii)           if
sent by first class post, two Business Days after the date of posting;

 

(iii)          if sent
by facsimile, when despatched;

 

PROVIDED THAT
if, in accordance with the above provisions, any such notice or other
communication would otherwise be deemed to be given or made outside
Working Hours, such notice or other communication shall be deemed to be
given or made at the start of Working Hours on the next Business Day.

 

13.3         The
relevant addressee, address, telephone number and facsimile number of each
party for the purposes of this agreement, subject to 13.4, are:-

 

	
  Name of party

  	
   

  	
  Address

  	
   

  	
  Telephone No.

  	
   

  	
  Facsimile No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For any notice to be given to Genworth or any
  European Subsidiary: 

  	
   

  	
  Vantage West, Great West Road, Brentford, Middlesex,
  TW8 9AG  

  	
   

  	
  0208 380 3661

  	
   

  	
  0208 380 3008

  

 

15

 

	
  Financial Insurance Group Services Limited

  	
   

  	
  For the attention of:

  Helen Maxwell

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For any other notice to be given hereunder:  

  	
   

  	
  Clarges House, 6-12 Clarges Street, London W1J
  8DH  

  	
   

  	
  0207 302 6284

  	
   

  	
  0207 302 6284

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital Europe Limited

  	
   

  	
  For the attention of:

  Roy Clark

  	
   

  	
   

  	
   

  	
   

  

 

13.4         A party
may notify the other parties to this agreement of a change to its name,
relevant addressee, address, telephone number or facsimile number for the
purposes of this clause 13 PROVIDED THAT such notification shall only be
effective on:-

 

(i)            the
date specified in the notification as the date on which the change is to take
place; or

 

(ii)           if no
date is specified or the date specified is less than five Business Days after
the date on which notice is given, the date falling five Business Days after
notice of any such change has been given.

 

13.5         For the
avoidance of doubt, the parties agree that the provisions of this clause shall
not apply in relation to the service of Service Documents (as defined in Clause
19 below).

 

14.          COUNTERPARTS

 

14.1         This
agreement may be executed in any number of counterparts, and by the parties on
separate counterparts, but shall not be effective until each party has executed
at least one counterpart.

 

14.2         Each
counterpart shall constitute the original of this agreement, but all the
counterparts shall together constitute but one and the same instrument.

 

15.          TIME OF ESSENCE

 

15.1         Save as
otherwise expressly provided, time is of the essence of this agreement.

 

16

 

16.          INVALIDITY

 

16.1         If at
any time any provision of this agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, that shall not
affect or impair:-

 

(i)            the
legality, validity or enforceability in that jurisdiction of any other
provision of this agreement; or

 

(ii)           the
legality, validity or enforceability under the law of any other jurisdiction of
that or any other provision of this agreement.

 

17.          CHOICE OF GOVERNING LAW

 

17.1         This
agreement shall be governed by and construed in accordance with English law.

 

18.          JURISDICTION

 

18.1         The
parties to this agreement irrevocably agree that the courts of England are to
have exclusive jurisdiction to settle any disputes which may arise out of or in
connection with this agreement and that accordingly any Proceedings must be
brought in such courts.

 

19.          AGENT FOR SERVICE

 

19.1         Each of
GE, GECC and IGE irrevocably agrees that any Service Document may be
sufficiently and effectively served on it in connection with Proceedings in
England and Wales by service on its agent Slaughter and May, if no replacement
agent has been appointed and notified to Genworth pursuant to clause 13, or on
the replacement agent if one has been appointed and so notified.

 

19.2         Both
Genworth and GEFA irrevocably agree that any Service Document may be
sufficiently and effectively served on it in connection with Proceedings in
England and Wales by service on its agent, UK Group Holding Company Limited, if
no replacement agent has been appointed and notified to GE pursuant to clause
13, or on the replacement agent if one has been appointed and so notified.

 

19.3         Any
Service Document served pursuant to clause 19.1 shall be marked for the
attention of:-

 

(i)            Trusec
Limited at One Bunhill Row, London, EC1Y 8YY or such other address within
England or Wales as may be notified to Genworth pursuant to clause 13; or

 

17

 

(ii)           such
other person as is appointed as agent for service pursuant to clause 19.1 at
the address notified pursuant to clause 13.

 

19.4         Any
Service Document served pursuant to clause 19.2 shall be marked for the
attention of:-

 

(i)            James
Rember at Vantage West, Great West Road, Middlesex TW8 9AG or such other
address within England or Wales as may be notified to GE pursuant to clause 13;
or

 

(ii)           such
other person as is appointed as agent for service pursuant to clause 19.2 at
the address notified pursuant to clause 13.

 

19.5         Any
document addressed in accordance with clause 19.3 or 19.4 shall be deemed to
have been duly served if:-

 

(i)            left
at the specified address, when it is left; or

 

(ii)           sent
by first class post, two Business Days after the date of posting.

 

19.6         If
either of the agents referred to in clauses 19.1 and 19.2 (or any validly
appointed replacement agent) at any time ceases for any reason to act as such,
GE (acting also on behalf of GECC and IGE), or Genworth (acting also on behalf
of GEFA), as appropriate, shall appoint a replacement agent to accept service
having an address for service in England or Wales and shall notify Genworth or
GE, as appropriate, of the name and address of the replacement agent; failing
such appointment and notification, Genworth or GE, as appropriate, shall be
entitled by notice to the other to appoint such a replacement agent to act on
the other’s behalf.

 

19.7          IN
WITNESS WHEREOF, this Agreement has been duly executed on the day and year
first above written.

 

18

 

 

	
  GENERAL ELECTRIC COMPANY

  	
  GENERAL ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  IGE USA INVESTMENTS

  	
  CONSOLIDATED
  INSURANCE HOLDINGS

  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  FINANCIAL ASSURANCE COMPANY LIMITED

  	
  FINANCIAL
  INSURANCE GROUP SERVICES

  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title

  

 

19

 

	
  GE CAPITAL SAS

  	
  GEFA INTERNATIONAL HOLDINGS, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  UK GROUP HOLDING COMPANY LIMITED

  	
  GENWORTH FINANCIAL, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GEFA UK HOLDINGS LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

20

 

Schedule 1

 

The European
Subsidiaries

 

Assocred S.A.;

 

CFI Administrators
Limited;

 

CFI Pension Trustees
Limited;

 

Consolidated Insurance
Group Limited;

 

Ennington Properties
Limited

 

FIG Ireland Limited;

 

Financial Assurance
Company Limited;

 

Financial Insurance
Company Limited;

 

Financial Insurance
Group Services Limited;

 

Financial Insurance
Guernsey PCC Limited;

 

Financial New Life
Company Limited;

 

GE Financial Assurance,
Compania de Seguros y Reaseguros de Vida S.A;

 

GE Financial Insurance,
Compania de Seguros y Reaseguros S.A.;

 

GE Mortgage Insurance
Limited;

 

GE Mortgage Insurance
(Guernsey) Limited;

 

GE Mortgage Services
Limited;

 

GE Mortgage Solutions
Limited;

 

GEFA UK Finance Limited;

 

GEFA UK Holdings
Limited;

 

RD Plus S.A.;  

 

UK Group Holding Company
Limited;  and

 

World Cover Direct
Limited. 

 

 

Schedule 2

 

GENWORTH – Group
Relief amount

(profits)/losses

 

	
   

  	
   

  	
   

  	
  GROSS

  	
   

  	
  @ 30%

  	
   

  
	
   

  	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  
	
  FICL

  	
  1988-1998

  	
   

  	
  (5,780,683

  	
  )

  	
   

  	
   

  	
  (1,734,205

  	
  )

  	
   

  	
   

  
	
   

  	
  1999

  	
   

  	
  (16,222,538

  	
  )

  	
   

  	
   

  	
  (4,866,761

  	
  )

  	
   

  	
   

  
	
   

  	
  2000

  	
   

  	
  (47,683,362

  	
  )

  	
   

  	
   

  	
  (14,305,009

  	
  )

  	
   

  	
   

  
	
   

  	
  2001

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2002

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2003

  	
   

  	
  (18,500,000

  	
  )

  	
   

  	
   

  	
  (5,550,000

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (88,186,583

  	
  )

  	
   

  	
   

  	
  (26,455,975

  	
  )

  
	
  FACL

  	
  1988-1998

  	
   

  	
  (19,233,983

  	
  )

  	
   

  	
   

  	
  (5,770,195

  	
  )

  	
   

  	
   

  
	
   

  	
  1999

  	
   

  	
  (2,584,018

  	
  )

  	
   

  	
   

  	
  (775,205

  	
  )

  	
   

  	
   

  
	
   

  	
  2000

  	
   

  	
  (14,793,851

  	
  )

  	
   

  	
   

  	
  (4,438,155

  	
  )

  	
   

  	
   

  
	
   

  	
  2001

  	
   

  	
  1,888,071

  	
   

  	
   

  	
   

  	
  566,421

  	
   

  	
   

  	
   

  
	
   

  	
  2002

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
  FACL

  	
  2002

  	
  171A

  	
  3,956,394

  	
   

  	
   

  	
   

  	
  1,186,918

  	
   

  	
   

  	
   

  
	
   

  	
  2003

  	
   

  	
  76,000,000

  	
   

  	
   

  	
   

  	
  22,800,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  45,232,613

  	
   

  	
   

  	
   

  	
  13,569,784

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause 3.2

  	
   

  	
  Adjustment

  	
   

  	
   

  	
  (38,000,000

  	
  )

  	
   

  	
   

  	
  (11,400,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIGSL

  	
  1988-1998

  	
   

  	
  (1,841,367

  	
  )

  	
   

  	
   

  	
  (552,410

  	
  )

  	
   

  	
   

  
	
   

  	
  1999

  	
   

  	
  (4,432,839

  	
  )

  	
   

  	
   

  	
  (1,329,852

  	
  )

  	
   

  	
   

  
	
   

  	
  2000

  	
   

  	
  (1,495,006

  	
  )

  	
   

  	
   

  	
  (448,502

  	
  )

  	
   

  	
   

  
	
   

  	
  2001

  	
   

  	
  (3,405,339

  	
  )

  	
   

  	
   

  	
  (1,021,602

  	
  )

  	
   

  	
   

  
	
   

  	
  2002

  	
   

  	
  (3,587,637

  	
  )

  	
   

  	
   

  	
  (1,076,291

  	
  )

  	
   

  	
   

  
	
   

  	
  2003

  	
   

  	
  (8,500,000

  	
  )

  	
   

  	
   

  	
  (2,550,000

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (23,262,188

  	
  )

  	
   

  	
   

  	
  (6,978,656

  	
  )

  
	
  CIGL

  	
  1988-1998

  	
   

  	
  (208,680

  	
  )

  	
   

  	
   

  	
  (62,604

  	
  )

  	
   

  	
   

  
	
   

  	
  1999

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2000

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2001

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2002

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2003

  	
   

  	
  (100,000

  	
  )

  	
   

  	
   

  	
  (30,000

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (308,680

  	
  )

  	
   

  	
   

  	
  (92,604

  	
  )

  
	
  GEMI

  	
  1988-1998

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  1999

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
  2000

  	
   

  	
  (6,387,608

  	
  )

  	
   

  	
   

  	
  (1,916,282

  	
  )

  	
   

  	
   

  
	
   

  	
  2001

  	
   

  	
  (1,555,633

  	
  )

  	
   

  	
   

  	
  (466,690

  	
  )

  	
   

  	
   

  
	
   

  	
  2002

  	
   

  	
  (6,219,354

  	
  )

  	
   

  	
   

  	
  (1,865,806

  	
  )

  	
   

  	
   

  
	
   

  	
  2003

  	
   

  	
  (6,000,000

  	
  )

  	
   

  	
   

  	
  (1,800,000

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (20,162,595

  	
  )

  	
   

  	
   

  	
  (6,048,779

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (124,687,433

  	
  )

  	
   

  	
   

  	
  (37,406,230

  	
  )

  

 

 

Schedule 3

 

Overpayments
on account of tax as at 31/12/03

 

	
  GENWORTH

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  period ended 31/12/1999

  	
  • FICL

  	
   

  	
  £

  	
  926,965

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  • FACL

  	
   

  	
  £

  	
  1,006,518

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  • FIGSL

  	
   

  	
  £

  	
  151,019

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  period ended 31/12/2001

  	
  • FICL

  	
   

  	
  £

  	
  5,817

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  £

  	
  2,090,319

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]