Document:

EX-4.02

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the “Agreement”) is made and entered into as of this      
day of      , 2010 by and among Glu Mobile Inc., a Delaware corporation (the “Company”), and
the “Investors” named in that certain Purchase Agreement by and among the Company and the Investors
(the “Purchase Agreement”). Capitalized terms used herein have the respective meanings ascribed
thereto in the Purchase Agreement unless otherwise defined herein.

The parties hereby agree as follows:

1. Certain Definitions.

As used in this Agreement, the following terms shall have the following meanings:

“Common Stock” means the Company’s common stock, par value $0.0001 per share, and any
securities into which such shares may hereinafter be reclassified.

“Investors” means the Investors identified in the Purchase Agreement and any Affiliate
or permitted transferee of any Investor who is a subsequent holder of any Warrants or Registrable
Securities.

“Prospectus” means (i) the prospectus included in any Registration Statement, as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material
incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined in
Rule 405 under the 1933 Act.

“Register,” “registered” and “registration” refer to a registration
made by preparing and filing a Registration Statement or similar document in compliance with the
1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration
Statement or document.

“Registrable Securities” means (i) the Shares, (ii) the Warrant Shares and (iii) any
other securities issued or issuable with respect to or in exchange for Registrable Securities,
whether by merger, charter amendment or otherwise; provided, that, a security shall cease to be a
Registrable Security upon (A) sale pursuant to a Registration Statement or Rule 144 under the 1933
Act, or (B) such security becoming eligible for sale without restriction by the holder thereof
pursuant to Rule 144.

“Registration Statement” means any registration statement of the Company filed under
the 1933 Act that covers the resale of any of the Registrable Securities pursuant to the provisions
of this Agreement, amendments and supplements to such Registration Statement, including
post-effective amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

“Required Investors” means (i) any Investor who, together with its Affiliates
beneficially owns (as defined pursuant to Rule 13d-3 under the Exchange Act) at least 2,000,000
shares (appropriately adjusted for any stock split, reverse stock split, stock dividend or other
reclassification or combination of the Common Stock occurring after the date hereof) of the Common
Stock (including Warrant Shares) sold pursuant to the Purchase Agreement (without giving effect to
any limitation on the exercise of the Warrants), and (ii) from and after the Closing, the Investors
who, together with their respective Affiliates, beneficially own (without giving effect to any
limitation on the exercise of the Warrants) a majority of the Registrable Securities then
beneficially owned by all of the Investors (without giving effect to any limitation on the exercise
of the Warrants).

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

“Shares” means the shares of Common Stock issued pursuant to the Purchase Agreement.

“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

“Warrants” means, the warrants to purchase shares of Common Stock issued to the
Investors pursuant to the Purchase Agreement, the form of which is attached to the Purchase
Agreement as Exhibit A.

“Warrant Shares” means the shares of Common Stock issuable upon the exercise of the
Warrants.

2. Registration.

(a) Registration Statements.

(i) Promptly following the closing of the purchase and sale of the securities contemplated by
the Purchase Agreement (the “Closing Date”) but no later than thirty (30) days after the Closing
Date (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration
Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of
registration statement as is then available to effect a registration for resale of the Registrable
Securities), covering the resale of the Registrable Securities. Subject to any SEC comments, such
Registration Statement shall include the plan of distribution attached hereto as Exhibit A;
provided, however, that no Investor shall be named as an “underwriter” in the Registration
Statement without the Investor’s prior written consent. Such Registration Statement also shall
cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including
Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends or similar transactions with respect to the Registrable Securities. Such
Registration Statement shall not include any shares of Common Stock or other securities for the
account of any other holder without the prior written consent of the Required Investors. The
Registration Statement (and each amendment or supplement thereto, and each request for acceleration
of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Investors and
their counsel prior to its filing or other submission. If a Registration Statement covering the
Registrable Securities is not filed with the SEC on or prior to the Filing Deadline, the Company
will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an
amount equal to 1.5% of the aggregate amount invested by such Investor for each 30-day period or
pro rata for any portion thereof following the Filing Deadline for which no Registration Statement
is filed with respect to the Registrable Securities. Such payments shall constitute the Investors’
exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek
injunctive relief. Such payments shall be made to each Investor in cash no later than three (3)
Business Days after the end of each 30-day period by check or wire transfer, at such Investor’s
option.

(ii) Additional Registrable Securities. Upon the written demand of any Investor and
upon any change in the Warrant Price (as defined in the Warrant) such that additional shares of
Common Stock become issuable upon the exercise of the Warrants (the “Additional Shares”), the
Company shall prepare and file with the SEC one or more Registration Statements on Form S-3 or
amend the Registration Statement filed pursuant to clause (i) above, if such Registration Statement
has not previously been declared effective (or, if Form S-3 is not then available to the Company,
on such form of registration statement as is then available to effect a registration for resale of
the Additional Shares) covering the resale of the Additional Shares, but only to the extent the
Additional Shares are not at the time covered by an effective Registration Statement. Subject to
any SEC comments, such Registration Statement shall include the plan of distribution attached
hereto as Exhibit A; provided, however, that no Investor shall be named as an “underwriter”
in the Registration Statement without the Investor’s prior written consent.. Such Registration
Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated
thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock
resulting from stock splits, stock dividends or similar transactions with respect to the Additional
Shares. Such Registration Statement shall not include any shares of Common Stock or other
securities for the account of any other holder without the prior written consent of the Required
Investors. The Registration Statement (and each amendment or supplement thereto, and each request
for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the
Investors and their counsel prior to its filing or other submission. If a Registration Statement
covering the Additional Shares is required to be filed under this Section 2(a)(ii) and is not filed
with the SEC within 30 days of the request of any Investor or upon the occurrence of any of the
events specified in this Section 2(a)(ii) (the “Additional Shares Filing Deadline”), the Company
will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an
amount equal to 1.5% of the aggregate amount invested by such Investor for each 30-day period or
pro rata for any portion thereof following the Additional Shares Filing Deadline for which no
Registration Statement is filed with respect to the Additional Shares. Such payments shall
constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right
of the Investors to seek injunctive relief. Such payments shall be made to each Investor in cash
no later than three (3) Business Days after the end of each 30-day period by check or wire
transfer, at such Investor’s option.

(b) Expenses. The Company will pay all expenses associated with each registration,
including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs
associated with clearing the Registrable Securities for sale under applicable state securities
laws, listing fees, but excluding the fees and expenses of counsel to the Investors and the
Investors’ expenses in connection with the registration, and the discounts, commissions, fees of
underwriters, selling brokers, dealer managers or similar securities industry professionals with
respect to the Registrable Securities being sold.

(c) Effectiveness.

(i) The Company shall use commercially reasonable efforts to have the Registration Statement
declared effective as soon as practicable. The Company shall notify the Investors by facsimile or
e-mail as promptly as practicable, and in any event, within twenty-four (24) hours, after any
Registration Statement is declared effective and shall simultaneously provide the Investors with
copies of any related Prospectus to be used in connection with the sale or other disposition of the
securities covered thereby. If (A)(x) a Registration Statement covering the Registrable Securities
is not declared effective by the SEC prior to the earlier of (i) five (5) Business Days after the
SEC shall have informed the Company that no review of the Registration Statement will be made or
that the SEC has no further comments on the Registration Statement or (ii) the 120th day
after the Closing Date or (y) a Registration Statement covering Additional Shares is not declared
effective by the SEC prior to the earlier of (i) five (5) Business Days after the SEC shall have
informed the Company that no review of the Registration Statement will be made or that the SEC has
no further comments on the Registration Statement or (ii) the 120th day after the
Additional Shares Filing Deadline, or (B) after a Registration Statement has been declared
effective by the SEC, sales cannot be made pursuant to such Registration Statement for any reason
(including without limitation by reason of a stop order, or the Company’s failure to update the
Registration Statement), but excluding any Allowed Delay (as defined below) or the inability of any
Investor to sell the Registrable Securities covered thereby due to market conditions, then the
Company will make pro rata payments to each Investor, as liquidated damages and not as a penalty,
in an amount equal to 1.5% of the aggregate amount invested by such Investor for each 30-day period
or pro rata for any portion thereof following the date by which such Registration Statement should
have been effective (the “Blackout Period”). Such payments shall constitute the Investors’
exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek
injunctive relief. The amounts payable as liquidated damages pursuant to this paragraph shall be
paid monthly within three (3) Business Days of the last day of each month following the
commencement of the Blackout Period until the termination of the Blackout Period. Such payments
shall be made to each Investor in cash.

(ii) For not more than forty-five (45) consecutive days or for a total of not more than sixty
(60) days in any twelve (12) month period, the Company may suspend the use of any Prospectus
included in any Registration Statement contemplated by this Section in the event that the Company
determines in good faith that such suspension is necessary to (A) delay the disclosure of material
non-public information concerning the Company, the disclosure of which at the time is not, in the
good faith opinion of the Company, in the best interests of the Company or (B) amend or supplement
the affected Registration Statement or the related Prospectus so that such Registration Statement
or Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the case of the
Prospectus in light of the circumstances under which they were made, not misleading (an “Allowed
Delay”); provided, that the Company shall promptly (a) notify each Investor in writing of the
commencement of an Allowed Delay, but shall not (without the prior written consent of an Investor)
disclose to such Investor any material non-public information giving rise to an Allowed Delay, (b)
advise the Investors in writing to cease all sales under the Registration Statement until the end
of the Allowed Delay and (c) use commercially reasonable efforts to terminate an Allowed Delay as
promptly as practicable.

(d) Rule 415; Cutback If at any time the SEC takes the position that the offering of
some or all of the Registrable Securities in a Registration Statement is not eligible to be made on
a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act or requires any
Investor to be named as an “underwriter”, the Company shall use commercially reasonable best
efforts to persuade the SEC that the offering contemplated by the Registration Statement is a valid
secondary offering and not an offering “by or on behalf of the issuer” as defined in Rule 415 and
that none of the Investors is an “underwriter”. The Investors shall have the right to participate
or have their counsel participate in any meetings or discussions with the SEC regarding the SEC’s
position and to comment or have their counsel comment on any written submission made to the SEC
with respect thereto. No such written submission shall be made to the SEC to which the Investors’
counsel reasonably objects. In the event that, despite the Company’s commercially reasonable best
efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position,
the Company shall (i) remove from the Registration Statement such portion of the Registrable
Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the
registration and resale of the Registrable Securities as the SEC may require to assure the
Company’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”);
provided, however, that the Company shall not agree to name any Investor as an “underwriter” in
such Registration Statement without the prior written consent of such Investor. Any cut-back
imposed on the Investors pursuant to this Section 2(d) shall be allocated among the Investors on a
pro rata basis and shall be applied first to any Warrant Shares, unless the SEC Restrictions
otherwise require or provide or the Investors otherwise agree. No liquidated damages shall accrue
as to any Cut Back Shares until such date as the Company is able to effect the registration of such
Cut Back Shares in accordance with any SEC Restrictions (such date, the “Restriction Termination
Date” of such Cut Back Shares). From and after the Restriction Termination Date applicable to any
Cut Back Shares, all of the provisions of this Section 2 (including the liquidated damages
provisions) shall again be applicable to such Cut Back Shares; provided, however, that (i) the
Filing Deadline and the Additional Shares Filing Deadline, as applicable, for the Registration
Statement including such Cut Back Shares shall be ten (10) Business Days after such Restriction
Termination Date, and (ii) the date by which the Company is required to obtain effectiveness with
respect to such Cut Back Shares under Section 2(c) shall be the 90th day immediately
after the Restriction Termination Date.

3. Company Obligations. The Company will use commercially reasonable efforts to
effect the registration of the Registrable Securities in accordance with the terms hereof, and
pursuant thereto the Company will, as expeditiously as possible:

(a) use commercially reasonable efforts to cause such Registration Statement to become
effective and to remain continuously effective for a period that will terminate upon the earlier of
(i) the date on which all Registrable Securities covered by such Registration Statement as amended
from time to time, have been sold, and (ii) the date on which all Registrable Securities covered by
such Registration Statement may be sold without restriction pursuant to Rule 144 (the
“Effectiveness Period”);

(b) prepare and file with the SEC such amendments and post-effective amendments to the
Registration Statement and the Prospectus as may be necessary to keep the Registration Statement
effective for the Effectiveness Period and to comply with the provisions of the 1933 Act and the
1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

(c) provide copies to and permit counsel designated by the Investors to review each
Registration Statement and all amendments and supplements thereto no fewer than three (3) Business
Days prior to their filing with the SEC and not file any document to which such counsel reasonably
objects;

(d) furnish to the Investors and their legal counsel, electronically or otherwise (i) promptly
after the same is prepared and publicly distributed, filed with the SEC, or received by the Company
(but not later than two (2) Business Days after the filing date, receipt date or sending date, as
the case may be) one (1) copy of any Registration Statement and any amendment thereto, each
preliminary prospectus and Prospectus and each amendment or supplement thereto, and each letter
written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of
correspondence from the SEC or the staff of the SEC, in each case relating to such Registration
Statement (other than any portion of any thereof which contains information for which the Company
has sought confidential treatment), and (ii) such number of copies of a Prospectus, including a
preliminary prospectus, and all amendments and supplements thereto and such other documents as each
Investor may reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Investor that are covered by the related Registration Statement;

(e) use commercially reasonable efforts to (i) prevent the issuance of any stop order or other
suspension of effectiveness and, (ii) if such order is issued, obtain the prompt withdrawal of any
such order;

(f) prior to any public offering of Registrable Securities, use commercially reasonable
efforts to register or qualify or cooperate with the Investors and their counsel in connection with
the registration or qualification of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions requested by the Investors and do any and all
other commercially reasonable acts or things necessary or advisable to enable the distribution in
such U.S. jurisdictions of the Registrable Securities covered by the Registration Statement;
provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required
to qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction
where it would not otherwise be so subject but for this Section 3(f), or (iii) file a general
consent to service of process in any such jurisdiction;

(g) use commercially reasonable efforts to cause all Registrable Securities covered by a
Registration Statement to be listed on each securities exchange, interdealer quotation system or
other market on which similar securities issued by the Company are then listed;

(h) promptly notify the Investors, at any time prior to the end of the Effectiveness Period,
upon discovery that, or upon the happening of any event as a result of which, the Prospectus
includes an untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly prepare, file with the SEC and furnish to such holder a
supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus shall
not include an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing;

(i) otherwise use commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC under the 1933 Act and the 1934 Act, including, without limitation, Rule 172
under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof, with
the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in
Rule 172 and, as a result thereof, the Investors are required to deliver a Prospectus in connection
with any disposition of Registrable Securities and take such other actions as may be reasonably
necessary to facilitate the registration of the Registrable Securities hereunder; and make
available to its security holders, as soon as reasonably practicable, but not later than the
Availability Date (as defined below), an earnings statement covering a period of at least twelve
(12) months, beginning after the effective date of each Registration Statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the 1933 Act, including Rule 158
promulgated thereunder (for the purpose of this subsection 3(i), “Availability Date” means the 45th
day following the end of the fourth fiscal quarter that includes the effective date of such
Registration Statement, except that, if such fourth fiscal quarter is the last quarter of the
Company’s fiscal year, “Availability Date” means the 90th day after the end of such fourth fiscal
quarter); and

(j) With a view to making available to the Investors the benefits of Rule 144 (or its
successor rule) and any other rule or regulation of the SEC that may at any time permit the
Investors to sell shares of Common Stock to the public without registration, the Company covenants
and agrees to use commercially reasonable efforts to: (i) make and keep public information
available, as those terms are understood and defined in Rule 144, until the earlier of (A) six
months after such date as all of the Registrable Securities may be sold without restriction by the
holders thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as all of
the Registrable Securities shall have been resold; (ii) file with the SEC in a timely manner all
reports and other documents required of the Company under the 1934 Act; and (iii) furnish to each
Investor upon request, as long as such Investor owns any Registrable Securities, (A) a written
statement by the Company that it has complied with the reporting requirements of the 1934 Act, and
(B) such other information as may be reasonably requested in order to avail such Investor of any
rule or regulation of the SEC that permits the selling of any such Registrable Securities without
registration.

4. [Reserved]

5. Obligations of the Investors.

(a) Each Investor shall furnish in writing to the Company such information regarding itself,
the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the
Company may reasonably request. At least five (5) Business Days prior to the first anticipated
filing date of any Registration Statement, the Company shall notify each Investor of the
information the Company requires from such Investor if such Investor elects to have any of the
Registrable Securities included in the Registration Statement. An Investor shall provide such
information to the Company at least two (2) Business Days prior to the first anticipated filing
date of such Registration Statement if such Investor elects to have any of the Registrable
Securities included in the Registration Statement. Upon the Company’s request, such Investor shall
update the information previously provided by such Investor to the Company for inclusion in the
Registration Statement.

(b) Each Investor, by its acceptance of the Registrable Securities agrees to cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of
a Registration Statement hereunder, unless such Investor has notified the Company in writing of its
election to exclude all of its Registrable Securities from such Registration Statement.

(c) Each Investor agrees that, upon receipt of any notice from the Company of either (i) the
commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event
pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities,
until the Investor is advised by the Company that such dispositions may again be made.

6. Indemnification.

(a) Indemnification by the Company. The Company will indemnify and hold harmless each
Investor and its officers, directors, members, employees and agents, successors and assigns, and
each other person, if any, who controls such Investor within the meaning of the 1933 Act, against
any losses, claims, damages or liabilities, joint or several, to which they may become subject
under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue
statement or omission or alleged omission of any material fact contained in any Registration
Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof;
(ii) any blue sky application or other document executed by the Company specifically for that
purpose or based upon written information furnished by the Company filed in any state or other
jurisdiction in order to qualify any or all of the Registrable Securities under the securities laws
thereof (any such application, document or information herein called a “Blue Sky Application”);
(iii) the omission or alleged omission to state in a Blue Sky Application a material fact required
to be stated therein or necessary to make the statements therein not misleading; (iv) any violation
by the Company or its agents of any rule or regulation promulgated under the 1933 Act applicable to
the Company or its agents and relating to action or inaction required of the Company in connection
with such registration; or (v) any failure to register or qualify the Registrable Securities
included in any such Registration Statement in any state where the Company or its agents has
affirmatively undertaken or agreed in writing that the Company will undertake such registration or
qualification on an Investor’s behalf and will reimburse such Investor, and each such officer,
director or member and each such controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in any
such case if and to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or alleged omission so made
in conformity with information furnished by such Investor or any such controlling person in writing
specifically for use in such Registration Statement or Prospectus.

(b) Indemnification by the Investors. Each Investor agrees, severally but not
jointly, to indemnify and hold harmless, to the fullest extent permitted by law, the Company, its
directors, officers, employees, stockholders and each person who controls the Company (within the
meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including
reasonable attorney fees) resulting from any untrue statement of a material fact or any omission of
a material fact required to be stated in the Registration Statement or Prospectus or preliminary
Prospectus or amendment or supplement thereto or necessary to make the statements therein not
misleading, to the extent, but only to the extent that such untrue statement or omission is
contained in any information furnished in writing by such Investor to the Company specifically for
inclusion in such Registration Statement or Prospectus or amendment or supplement thereto. In no
event shall the liability of an Investor be greater in amount than the dollar amount of the
proceeds (net of all expense paid by such Investor in connection with any claim relating to this
Section 6 and the amount of any damages such Investor has otherwise been required to pay by reason
of such untrue statement or omission) received by such Investor upon the sale of the Registrable
Securities included in the Registration Statement giving rise to such indemnification obligation.

(c) Conduct of Indemnification Proceedings. Any person entitled to indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any
person entitled to indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of interest exists between such person
and the indemnifying party with respect to such claims (in which case, if the person notifies the
indemnifying party in writing that such person elects to employ separate counsel at the expense of
the indemnifying party, the indemnifying party shall not have the right to assume the defense of
such claim on behalf of such person); and provided, further, that the failure of
any indemnified party to give notice as provided herein shall not relieve the indemnifying party of
its obligations hereunder, except to the extent that such failure to give notice shall materially
adversely affect the indemnifying party in the defense of any such claim or litigation. It is
understood that the indemnifying party shall not, in connection with any proceeding in the same
jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any
time for all such indemnified parties. No indemnifying party will, except with the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect of such claim or litigation. No
indemnifying party will be liable to any indemnified party under this Agreement for any settlement
by such indemnified party effected without the indemnifying party’s prior written consent, which
shall not be unreasonably withheld, conditioned or delayed.

(d) Contribution. If for any reason the indemnification provided for in the preceding
paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless,
other than as expressly specified therein, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No
person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.
In no event shall the contribution obligation of a holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such holder in
connection with any claim relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission) received by it upon the sale of the Registrable Securities giving rise to such
contribution obligation.

7. Miscellaneous.

(a) Amendments and Waivers. This Agreement may be amended only by a writing signed by
the Company and the Required Investors. The Company may take any action herein prohibited, or omit
to perform any act herein required to be performed by it, only if the Company shall have obtained
the written consent to such amendment, action or omission to act, of the Required Investors.

(b) Notices. All notices and other communications provided for or permitted hereunder
shall be made as set forth in Section 9.4 of the Purchase Agreement.

(c) Assignments and Transfers by Investors. The provisions of this Agreement shall be
binding upon and inure to the benefit of the Investors and their respective successors and assigns.
An Investor may transfer or assign, in whole or from time to time in part, to one or more persons
its rights hereunder in connection with the transfer of Registrable Securities by such Investor to
such person, provided that such Investor complies with all laws applicable thereto and provides
written notice of assignment to the Company promptly after such assignment is effected.

(d) Assignments and Transfers by the Company. This Agreement may not be assigned by
the Company (whether by operation of law or otherwise) without the prior written consent of the
Required Investors, provided, however, that in the event that the Company is a party to a merger,
consolidation, share exchange or similar business combination transaction in which the Common Stock
is converted into the equity securities of another Person, from and after the effective time of
such transaction, such Person shall, by virtue of such transaction, be deemed to have assumed the
obligations of the Company hereunder, the term “Company” shall be deemed to refer to such Person
and the term “Registrable Securities” shall be deemed to include the securities received by the
Investors in connection with such transaction unless such securities are otherwise freely tradable
by the Investors after giving effect to such transaction.

(e) Benefits of the Agreement. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

(f) Counterparts; Faxes. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may also be executed via facsimile, which shall be deemed an
original.

(g) Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

(h) Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the parties hereby waive any provision of law which renders any
provisions hereof prohibited or unenforceable in any respect.

(i) Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

(j) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

(k) Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of New York
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably
consents to the jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of
venue of any such suit, action or proceeding brought in such courts and irrevocably waives any
claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

1

IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above written.

GLU MOBILE INC.

	 	 	 
	By:      

	Name:

Title:

	 	Niccolo de Masi

President and Chief Executive Officer

2

      

By:      

Name:

Title:

Exhibit A

Plan of Distribution

The selling stockholders, which as used herein includes donees, pledgees, transferees or other
successors-in-interest selling shares of common stock or interests in shares of common stock
received after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise
dispose of any or all of their shares of common stock or interests in shares of common stock on any
stock exchange, market or trading facility on which the shares are traded or in private
transactions. These dispositions may be at fixed prices, at prevailing market prices at the time
of sale, at prices related to the prevailing market price, at varying prices determined at the time
of sale, or at negotiated prices.

The selling stockholders may use any one or more of the following methods when disposing of
shares or interests therein:

• ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

• block trades in which the broker-dealer will attempt to sell the shares as agent, but may
position and resell a portion of the block as principal to facilitate the transaction;

• purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

• an exchange distribution in accordance with the rules of the applicable exchange;

• privately negotiated transactions;

• short sales effected after the date the registration statement of which this Prospectus is a
part is declared effective by the SEC;

• through the writing or settlement of options or other hedging transactions, whether through
an options exchange or otherwise;

• broker-dealers may agree with the selling stockholders to sell a specified number of such
shares at a stipulated price per share;

• a combination of any such methods of sale; and

— any other method permitted by applicable law.

The selling stockholders may, from time to time, pledge or grant a security interest in some
or all of the shares of common stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the shares of common stock,
from time to time, under this prospectus, or under an amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest as selling
stockholders under this prospectus. The selling stockholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this prospectus.

In connection with the sale of our common stock or interests therein, the selling stockholders
may enter into hedging transactions with broker-dealers or other financial institutions, which may
in turn engage in short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial
institution of shares offered by this prospectus, which shares such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction).

The aggregate proceeds to the selling stockholders from the sale of the common stock offered
by them will be the purchase price of the common stock less discounts or commissions, if any. Each
of the selling stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering. Upon any exercise
of the warrants by payment of cash, however, we will receive the exercise price of the warrants.

The selling stockholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act of 1933, provided that they meet
the criteria and conform to the requirements of that rule.

The selling stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the common stock or interests therein may be “underwriters” within the meaning of
Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn
on any resale of the shares may be underwriting discounts and commissions under the Securities Act.
Selling stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities
Act will be subject to the prospectus delivery requirements of the Securities Act.

To the extent required, the shares of our common stock to be sold, the names of the selling
stockholders, the respective purchase prices and public offering prices, the names of any agents,
dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers. In
addition, in some states the common stock may not be sold unless it has been registered or
qualified for sale or an exemption from registration or qualification requirements is available and
is complied with.

We have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Exchange Act may apply to sales of shares in the market and to the activities of the
selling stockholders and their affiliates. In addition, to the extent applicable we will make
copies of this prospectus (as it may be supplemented or amended from time to time) available to the
selling stockholders for the purpose of satisfying the prospectus delivery requirements of the
Securities Act. The selling stockholders may indemnify any broker-dealer that participates in
transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

We have agreed to indemnify the selling stockholders against liabilities, including
liabilities under the Securities Act and state securities laws, relating to the registration of the
shares offered by this prospectus.

We have agreed with the selling stockholders to keep the registration statement of which this
prospectus constitutes a part effective until the earlier of (1) such time as all of the shares
covered by this prospectus have been disposed of pursuant to and in accordance with the
registration statement or (2) the date on which all of the shares may be sold without restriction
pursuant to Rule 144 of the Securities Act.

3EX-10.1

PROSPECTOR PARTNERS, LLC

INVESTMENT MANAGEMENT AGREEMENT

PROSPECTOR PARTNERS, LLC, a Delaware limited liability company (the “Adviser”), having an address
at 370 Church Street, Guilford, Connecticut 06437, and Symetra Financial Corporation, a Delaware
corporation (“Symetra”), having an address at 777 108th Avenue N.E., Suite 1200, Bellevue, WA
98004-5135, hereby enter into this Investment Management Agreement, effective as of July 1, 2010
(this “Agreement”), and hereby agree that the Adviser shall act as discretionary adviser with
respect to the specified assets of Symetra and/or each of its subsidiaries who are signatories to
this Agreement (each, a “Client”) on the following terms and conditions:

	 	1)	 	Investment Accounts. The investment account of each Client (each an
“Investment Account”) shall consist of cash and securities in an amount equal to at least
$50,000,000 (the “Minimum Account Amount”), or such other amount as may be agreed to by
the Adviser, initially furnished by the Client for investment pursuant to this Agreement,
as well as all other assets which become part of each Investment Account as a result of
trading therein or additions thereto, except for amounts withdrawn therefrom and paid to
the Client. Each Client may make additions to the Investment Account in amounts exceeding
$100,000, or in such other amount as may be agreed to by the Adviser; provided that the
Adviser shall have received prompt written notice of such additions. Each Client may make
withdrawals from its Investment Account in such amounts as it shall determine upon not
less than 30 days prior written notice thereof to the Adviser and provided that the
withdrawal shall not cause the assets in the Investment Account to fall below the Minimum
Account Amount, unless otherwise agreed to by the Adviser.

	 	2)	 	Services of Adviser. By execution of this Agreement the Adviser accepts
appointment as adviser for each Investment Account with full discretion and agrees to
supervise and direct the investments of each Investment Account in accordance with the
investment objective, policies and restrictions attached hereto as Schedule 1, and as may
be modified from time to time (“Investment Guidelines”). Adviser acknowledges that
Clients are bound by state insurance laws regarding permissible investments and Clients’
own adopted Statement of Investment Policy, including any Addendums, attached hereto as
Schedule 2, and as may be modified from time to time, applicable to Clients’ aggregate
investable assets (the “Investment Policy”). Adviser has read the Investment Policy and
understands that Clients’ Investment Guidelines, to be furnished to Adviser from time to
time, will not deviate from the Investment Policy but will only summarize the provisions
and limitations applicable to each Investment Account. In the performance of its
services, the Adviser will not be liable for any error in judgment or any acts or
omissions to act except those resulting from the Adviser’s gross negligence, willful
misconduct or malfeasance. Nothing herein shall in any way constitute a waiver or
limitation of any right of any person under the federal securities laws. The Adviser
shall have no responsibility whatsoever for the management of any assets of Clients other
than such entities’ Investment Account.

	 	3)	 	Discretionary Authority. Subject to the Investment Guidelines, the Adviser
shall have full discretion and authority, without obtaining any prior approval, as the
Client’s agent and attorney-in-fact: (a) to make all investment decisions in respect of
each Investment Account on the Client’s behalf and at the sole risk of the Client; (b) to
buy, sell, exchange, convert, liquidate or otherwise trade in any stock, bond and other
securities or financial instruments in respect of each Investment Account; (c) to place
orders with respect to, and to arrange for, any of the foregoing; and (d) in furtherance
of the foregoing, to do anything which the Adviser shall deem requisite, appropriate or
advisable in connection therewith, including, without limitation, the selection of such
brokers, dealers, and others as the Adviser shall determine in its absolute discretion.

	 	4)	 	Custody. The assets of each Investment Account shall be held in one or more
separately identified accounts in the custody of one or more banks, trust companies,
brokerage firms or other entities designated by the Client and acceptable to the Adviser.
The Adviser will communicate its investment purchase, sale and delivery instructions
directly with the party identified by the Client or other qualified depositories. The
Client shall be responsible for all custodial arrangements and the payment of all
custodial charges and fees, and the Adviser shall have no responsibility or liability with
respect to custody arrangements or the acts, omissions or other conduct of the custodians.

	 	5)	 	Brokerage. When placing orders for the execution of transactions for an
Investment Account, the Adviser may allocate all transactions to such brokers or dealers,
for execution on such markets, at such prices and commission rates, as are selected by the
Adviser in its sole discretion. In selecting brokers or dealers to execute transactions,
the Adviser need not solicit competitive bids and does not have an obligation to seek the
lowest available commission cost. It is not the Adviser’s practice to negotiate
“execution only” commission rates, and, in negotiating commission rates, the Adviser shall
take into account the financial stability and reputation of brokerage firms and brokerage
and research services provided by such brokers. An Investment Account may be deemed to be
paying for research provided or paid for by the broker which is included in the commission
rate although the Investment Account may not, in any particular instance, be the direct or
indirect beneficiary of the research services provided. Research furnished by brokers may
include, but is not limited to, written information and analyses concerning specific
securities, companies or sectors; market, finance and economic studies and forecasts;
financial publications; statistics and pricing services; discussions with research
personnel; and software and data bases utilized in the investment management process.
Symetra acknowledges on behalf of each Client that since commission rates are generally
negotiable, selecting brokers on the basis of considerations which are not limited to
applicable commission rates may at times result in higher transaction costs than would
otherwise be obtainable. The Adviser is hereby authorized to, and Symetra acknowledges on
behalf of each Client that the Adviser may aggregate orders on behalf of each Investment
Account with orders on behalf of other clients of the Adviser. In such event, allocation
of the securities purchased or sold, as well as expenses incurred in the transaction,
shall be made in a manner which the Adviser considers to be the most fair and equitable to
all of its clients, including the Clients.

	 	6)	 	Representations and Warranties

	 	a)	 	Symetra represents, warrants and agrees that:

	 	i)	 	it has full legal power and authority to enter into this Agreement;

	 	ii)	 	the appointment of the Adviser hereunder is permitted by each Client’s
governing documents and any investment management agreement between Symetra and
the Clients to this Agreement and has been duly authorized by all necessary
corporate or other action; and

	 	iii)	 	it will indemnify the Adviser and hold it harmless against any and all
losses, costs, claims and liabilities which the Adviser may suffer or incur arising
out of any material breach of these representations and warranties of Symetra.

	 	b)	 	The Adviser represents, warrants and agrees that:

	 	i)	 	it has full legal power and authority to enter into this Agreement;

	 	ii)	 	it is registered as an investment adviser with the Securities and
Exchange Commission pursuant to the Investment Advisers Act of 1940, as amended
(the “Advisers Act”);

	 	iii)	 	entering into this Agreement has been duly authorized by all necessary
action; and

	 	iv)	 	it will indemnify Symetra and hold it harmless against any and all
losses, costs, claims and liabilities which Symetra or any Client may suffer or
incur arising out of any material breach of any representations and warranties of
the Adviser.

	 	7)	 	Reports. The Adviser shall provide Symetra with reports containing the
status of the Investment Account at least monthly (i.e. “Flash Report”), and will provide
written advisory report letters on a quarterly basis. All records maintained pursuant to
this Agreement shall be subject to examination by Symetra and by persons authorized by it,
or by appropriate governmental authorities, at all times upon reasonable notice. The
Adviser shall provide copies of trade tickets, custodial reports and other records Symetra
reasonably requires for accounting, tax, regulatory, or audit purposes.

	 	8)	 	Management Fee and Expenses 

	 	a)	 	The Adviser will be paid a quarterly management fee (the “Management Fee”) for
its investment advisory services provided hereunder, determined in accordance with
Exhibit A to this Agreement. During the term of this Agreement, the Management Fee
shall be billed and payable in arrears on a quarterly basis within 10 days after the
last day of each calendar quarter based upon the value of the Investment Accounts as of
the last day of the immediately preceding calendar quarter, and showing that portion of
the Management Fee attributable to each Investment Account. The Management Fee shall
be pro-rated for any partial quarter. It is understood that, in the event that the
Management Fee is to be paid by the custodian out of the Investment Accounts, Symetra
or the Clients will provide written authorization to the custodian to pay the
Management Fee directly from the Investment Accounts.

	 	b)	 	Each Investment Account shall be responsible for all expenses incurred directly
in connection with transactions effected on behalf of the Investment Account pursuant
to this Agreement and shall include: custodial fees; PAM accounting service fees,
investment expenses such as commissions; Infomediary transactions fees and other
expenses reasonably related to the purchase, sale or transmittal of Investment Account
assets (other than research fees and expenses with respect to the Investment Account).

	 	9)	 	Confidential Relationship.

	 	a)	 	The Parties hereby agree that all of the information provided to Symetra by the
Adviser and to the Adviser by Symetra shall be considered proprietary and confidential
in nature (hereinafter, the “Confidential Information”) and, as such, shall not be
disclosed or revealed or caused to be disclosed or revealed, in any manner, to any
non-party to this Agreement, except:

	 	i)	 	as may be required by law or any judicial, regulatory or
self-regulatory authority (including without limitation any required filing with
the SEC or any state insurance regulator), provided that notice of any such
disclosure is at the time sent to the other party, except that no notice will be
required for routine SEC or department of insurance filings,

	 	ii)	 	as either party may consent to specifically in advance in writing;
provided, however, that

	 	iii)	 	any such Confidential Information may be disclosed to each party’s
officers, directors, employees, consultants, contractors, advisors, and fiduciaries
(“Representatives”) who need to know such information in order to carry out the
purpose of the disclosure and so long as they agree to keep it confidential;

	 	iv)	 	“Confidential Information” does not include any information which (A)
is or subsequently becomes published or available to the public other than by
breach of this Agreement, (B) is received by receiving party from a non-party not
in breach of any obligation of confidentiality, (C) is independently developed by
receiving party, or (D) was in receiving party’s possession or known to receiving
party before disclosing party disclosed it to receiving party; and

	 	v)	 	Adviser Confidential Information does not include the identification of
Symetra as a Client or a Client’s investments as of a given point in time (which is
consistent with (iv) (A) above).

	 	b)	 	Symetra agrees that:

	 	i)	 	Adviser may disclose that Symetra (and each of the Clients) is a client
of the Adviser and to the inclusion of Symetra on a list of representative clients
of the Adviser or in other marketing materials;

	 	ii)	 	Adviser shall be permitted to retain copies of all documentation
necessary under the Advisers Act to support the track record or otherwise required
to be retained under the Advisers Act and related rules, but only for such period
as required to be retained; and

	 	iii)	 	Symetra shall not allow the Confidential Information to be used to
purchase, sell, trade or invest in any securities, instruments or other investments
owned by the Account without obtaining the prior written consent of the Adviser,
unless such consent is impossible or impractical due to an event of force majeure
that interferes with Adviser’s performance under this Agreement; and further
acknowledges that:

	 	iv)	 	the provisions of (b) are reasonable and necessary for the protection
of the Adviser and its affiliates, and

	 	v)	 	the Adviser or its affiliates will be irrevocably damaged if the
covenants herein are not specifically enforced and, accordingly, Symetra hereby
further agrees that, in addition to any other relief or remedies available to the
Adviser, the Adviser shall be entitled to seek and obtain an appropriate injunction
or other equitable remedy from a court with proper jurisdiction for the purposes of
restraining Symetra from any actual or threatened breach of such covenant, and no
bond or security will be required in connection therewith. In any event, Symetra
shall be responsible for any breach of this Agreement by any of Symetra’s
Representatives, and Symetra agrees, at its sole expense, to take all reasonable
measures (including, without limitation, court proceedings) to restrain its
Representatives from prohibited or unauthorized disclosure or use of the
Confidential Information or any other breach of the terms of this Agreement.

	 	c)	 	Adviser agrees that:

	 	i)	 	Symetra shall be permitted to report the Investment Track Record (on a
stand-alone basis, as part of its total portfolio return or otherwise) with respect
to the Investment Accounts in any internal or external reports of it or its
affiliates; and

	 	ii)	 	Symetra and/or its affiliates will be irrevocably damaged if the
covenants herein are not specifically enforced and, accordingly, Adviser hereby
further agrees that, in addition to any other relief or remedies available to
Symetra, Symetra shall be entitled to seek and obtain an appropriate injunction or
other equitable remedy from a court with proper jurisdiction for the purposes of
restraining Adviser from any actual or threatened breach of such covenant, and no
bond or security will be required in connection therewith. In any event, Adviser
shall be responsible for any breach of this Agreement by any of its
Representatives, and Adviser agrees, at its sole expense, to take all reasonable
measures (including, without limitation, court proceedings) to restrain its
Representatives from prohibited or unauthorized disclosure or use of the
Confidential Information or any other breach of the terms of this Agreement.

	 	10)	 	Non-Assignability. No “assignment”, as that term is defined in the Advisers
Act, of this            Agreement shall be made by the Adviser or Symetra without the written
consent of the other party.

	 	11)	 	Directions to the Adviser. All directions by Symetra by or on behalf of the
Clients to the Adviser shall be in writing signed by or on behalf of Symetra. The Adviser
shall be fully protected in relying upon any such writing which the Adviser believes to be
genuine and signed or presented by the proper person or persons, shall be under no duty to
make any investigation or inquiry as to any statement contained therein and may accept the
same as conclusive evidence of the truth and accuracy of the statements therein contained.

	 	12)	 	Consultation with Counsel. The Adviser may consult with legal counsel (who
may be counsel to Symetra) concerning any question that may arise with reference to its
duties under this Agreement, and the opinion of such counsel shall be full and complete
protection in respect of any action taken or omitted by the Adviser hereunder in good
faith and in accordance with such opinion.

	 	13)	 	Services to Other Clients. It is understood that the Adviser acts as
investment adviser to other clients and may give advice and take action with respect to
such clients that differs from the advice given or the action taken with respect to the
Investment Accounts. Nothing in this Agreement shall restrict the right of the Adviser,
its members, managers, officers, employees or affiliates to perform investment management
or advisory services for any other person or entity, and the performance of such service
for others shall not be deemed to violate or give rise to any duty or obligation to the
Client.

	 	14)	 	Investment by the Adviser for Its Own Account. Nothing in this Agreement
shall limit or restrict the Adviser or any of its members, managers, officers, employees
or affiliates from buying, selling or trading any securities for its or their own account
or accounts. Symetra on behalf of each Client acknowledges that the Adviser and its
members, managers, officers, employees, affiliates and other clients may at any time have,
acquire, increase, decrease or dispose of securities which are at or about the same time
acquired or disposed of for the account of a Client. The Adviser shall have no obligation
to purchase or sell for the Investment Accounts or to recommend for purchase or sale by
the Investment Accounts any security that the Adviser or its members, managers, officers,
employees or affiliates may purchase or sell for itself or themselves or for any other
client.

	 	15)	 	Proxies. Subject to any other written instructions of Symetra, the Adviser
is hereby appointed Symetra’s agent and attorney-in-fact in its discretion to vote,
convert or tender in an exchange or tender offer any securities in the Investment
Accounts, to execute proxies, waivers, consents and other instruments with respect to such
securities, to endorse, transfer or deliver such securities and to participate in or
consent to any plan of reorganization, merger, combination, consolidation, liquidation or
similar plan with reference to such securities.

	 	16)	 	Sarbanes-Oxley Compliance. Symetra is subject to certain regulations (“SOX”)
that require management to assess the effectiveness of its internal controls over
financial reporting and state in its annual report whether such internal controls are
effective.  Because Adviser will perform trading execution functions for Symetra’s
Investment Accounts as described in this Agreement, certain procedures performed by
Adviser are relevant to Symetra’s evaluation of its internal controls.  Having
acknowledged the foregoing, Adviser agrees to cooperate with Symetra as reasonably
necessary to facilitate Symetra’s ability to comply with its regulatory obligations.

	 	17)	 	Operational Audits. Upon Symetra’s request, but no more often than once
annually except (a) as necessary for Symetra or Client to respond to any regulatory
requirement or inquiry, or (b) as deemed reasonably necessary by Symetra as a result of
Symetra’s good faith belief that Adviser has breached any of its obligations hereunder,
Adviser shall allow Symetra and/or any independent third party (“Third Party
Representatives”) selected by Symetra to perform operational audits with respect to
Adviser’s performance of its obligations hereunder.  Adviser shall grant Symetra and its
Third Party Representatives access to Adviser’s facilities, personnel, and all books,
records and other documents of Adviser related to trade execution it performs for Symetra
under this Agreement (not otherwise provided under section 7) (“Documentation”) as may be
required in order for Symetra to ascertain that trades (i) are conducted by authorized
personnel, (ii) are completed, and (iii) reconcile to the accounting and custody records
of Symetra and its other service providers, and such other facts relative to Adviser’s
performance hereunder. Symetra acknowledges that to the extent such Documentation
contains aggregated data for multiple clients of Adviser, Adviser may redact certain
information contained in the Documentation as reasonably necessary to meet its
confidential obligations to other clients. Adviser shall provide Symetra, or its Third
Party Representatives, such information and assistance as requested in order to perform
such audits, including access to Adviser’s personnel to explain the control environment by
means of operational walk throughs or other means; provided, however, that the Parties
shall endeavor to arrange such assistance in such a way that it does not interfere with
Adviser’s performance of the Agreement.  Notwithstanding anything to the contrary in
section 17, no amendment to this Agreement shall be required where the Parties mutually
agree to change the scope of audits under this section to permit Symetra to comply with
SOX and related laws as enacted or amended from time to time.

	 	18)	 	Notices. All notices and instructions with respect to securities
transactions or any other matters contemplated by this Agreement shall be deemed duly
given when delivered in writing or deposited by first-class mail to the following
addresses: (a) if to the Adviser, at its address set forth above, Attention: Peter N.
Perugini, CFO, or (b) if to Symetra, at its address set forth above, Attention: Margaret
Meister, CFO. The Adviser or the Client may change its address or specify a different
manner of addressing itself by giving notice of such change in writing to the other party.

	 	19)	 	Entire Agreement; Amendment. This Agreement sets forth the entire agreement
of the parties with respect to management of the Investment Account and shall not be
amended except by an instrument in writing signed by the parties hereto.

	 	20)	 	Termination. This Agreement shall continue in force from the date hereof for
an initial fixed term of three years (“initial term”), which may be extended by Symetra in
its sole discretion for an additional one year (“fourth year extension”) at/prior to the
end of the second year of the initial term, and if so extended, then, again in Symetra’s
sole discretion, for an additional year (“fifth year extension”) at/prior to the end of
the initial term.    Notwithstanding the foregoing, during the initial term and any
extensions, this Agreement shall be terminable without penalty by Symetra upon written
notice to the Adviser at least thirty (30) days prior to the date upon which such
termination is to become effective (i) for cause (including material non-performance by
the Adviser), (ii) if either John Gillespie or Richard Howard are no-longer affiliated
with the Adviser, or (iii) if there is a change in control of the Adviser. Following the
end of the initial term and any extensions, this Agreement may be terminated without
penalty by either party on 60 days written notice. Each Client shall honor any trades
executed but not settled before the date of any termination under this Agreement. The fee
for the calendar quarter during which any termination of this Agreement shall occur shall
be paid as of the date of termination and prorated if the effective date does not coincide
with the end of the quarter.

	 	21)	 	Governing Law. To the extent that the interpretation or effect of this
Agreement shall depend on state law, this Agreement shall be governed by and construed in
accordance with the laws of the State of Connecticut.

	 	22)	 	Effective Date. This Agreement shall become effective on the date first
written above.

	 	23)	 	Receipt of Disclosure Statement. Symetra acknowledges receipt of a copy of
Part II of the Adviser’s Form ADV in compliance with Rule 204-3(b) under the Advisers Act
more than 48 hours prior to the date of execution of this Agreement. The Adviser shall
annually and without charge, upon request by Symetra, deliver to Symetra the current
version of such form or a written document containing at least the information then
required to be contained in such form.

	 	24)	 	Counterparts. This Agreement may be executed in two counterparts, each one
of which shall be deemed to be an original.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized representatives as of the date first written above.

	 	 	 
	ADVISER:
	 	CLIENT:

	PROSPECTOR PARTNERS, LLC
	 	SYMETRA FINANCIAL CORPORATION

	By:
	 	By:

	 	 	Margaret A. Meister

	Title:

Date:
	 	Executive Vice President, Chief

Financial Officer

Date:

	     
	 	     

	 	 	 
	SYMETRA LIFE INSURANCE COMPANY

	 	

	By:

	 	

	Margaret A. Meister

	 	

	Executive Vice President, Chief

Date:      

	 	Financial Officer

EXHIBIT A

FEE SCHEDULE TO THE INVESTMENT MANAGEMENT AGREEMENT, EFFECTIVE JULY 1, 2010 BETWEEN PROSPECTOR

PARTNERS, L.L.C. AND SYMETRA FINANCIAL CORPORATION

Each term used in this Exhibit A but not defined herein shall have the meaning assigned to
that term in the Investment Management Agreement, effective July 1, 2010 (the “Agreement”), between
Symetra Financial Corporation (“Symetra”) and Prospector Partners, L.L.C., the adviser (the
“Adviser”).

1. The Adviser shall be paid a Management Fee (pro rated for periods less than a
full calendar quarter) computed in accordance with the table below based on the value of the
aggregate net assets (including cash and cash equivalents) of all Investment Accounts and the net
assets of each Client (such collective aggregate net assets shall be referred to as the “Aggregate
Net Assets”), determined in accordance with paragraph Section 2 below. Each Client will bear and
be billed its proportionate share of the Management Fee.

	 	 	 	 	 
	Aggregate Net Assets	 	Annual Fee	 	Quarterly Fee
	Up to $200 million
	 	100 basis points

(1.00% or 0.0100)

	 	25 basis points

(0.25% or 0.00250)
	Greater than $200 million
	 	50 basis points

	 	12.50 basis points

2. For all purposes under the Agreement, including the determination of the
Management Fee, the market value of securities shall be as follows: securities that are listed on a
national securities exchange shall be valued at their last sales price on the date of determination
and securities that are not so listed shall be valued at their last sales price on the date of
determination, or if no sales of such securities occurred on the date of determination, such
securities shall be valued at the last “bid” price at the close of business on such day (or if sold
short at the last “asked” price at the close of business on such day) quoted by the National
Association of Securities Dealers, Inc.’s Automatic Quotation System or, if not quoted on such
system, by one of the principal market makers in such securities selected by the Adviser.
Notwithstanding the foregoing, if the securities to be valued constitute a block which, in the
judgment of the Adviser, could not be liquidated in a reasonable time without depressing the
market, such block shall then be valued by the Adviser but not at a unit value in excess of the
quoted market price for such security. All other assets of the Investment Accounts shall be
assigned such value as the Adviser may reasonably determine.

Schedule 1

TO INVESTMENT MANAGEMENT AGREEMENT, EFFECTIVE JULY 1, 2010 BETWEEN PROSPECTOR PARTNERS, L.L.C. AND

SYMETRA FINANCIAL CORPORATION

Investment Guidelines

Investment Objective

The Adviser’s objective is to achieve consistent positive returns and to maximize long-term total
returns within prudent levels of risk through capital appreciation on a diversified portfolio of
investments.

Performance Objectives

The Adviser will report to Symetra on a quarterly basis to review the Adviser’s total investment
performance. It is understood that there are likely to be short-term periods during which
performance deviates from market indices. During such times, greater emphasis shall be placed on
performance comparisons with investment managers employing similar styles. The overall performance
of the Adviser’s Investment Accounts will be measured by referencing broad equity market indices
over a 3-year rolling period.

Guidelines

The Adviser must remain a registered adviser under the Investment Advisors Act of 1940. Whenever
these guidelines contain a limitation expressed as a percentage of the portfolio assets, that
percentage shall be measured solely with reference to the assets that are under the Adviser’s
control. Subject to these guidelines, the Adviser shall have full discretion, subject to Symetra’s
written notice of limitation constraints, to manage each Investment Account’s assets.

	 	1)	 	The Adviser may not purchase securities on margin, sell short, or enter into derivative
transactions in an Investment Account without the written consent of Symetra.

	 	2)	 	The Adviser may purchase Rule 144A securities provided such securities are judged by
the Adviser to be liquid and do not in the aggregate exceed 20% of the market value of each
Investment Account. The Adviser shall also be able to purchase securities if such
securities are convertible into publicly traded securities.

	 	3)	 	At least 95% of each Investment Account will consist of securities of companies having
a market capitalization of $100 million or greater.

	 	4)	 	Each Investment Account may include domestic and non-domestic securities (common
stocks, bonds, securities that are convertible to common stocks, preferred stocks, warrants
and rights to subscribe to common stocks) that are listed on registered exchanges or
actively traded in the over-the-counter market.

	 	5)	 	Issuers of securities located in countries other than the United States, including
emerging market countries, shall not exceed 40% of the market value of each Investment
Account.

	 	6)	 	In terms of diversification, investments shall be allocated with the intent to minimize
the risk of large losses to each Investment Account. The maximum total investment in any
one security shall be limited to 10% of an Investment Account at the time of purchase, and
25% of the market value of such Investment Account.

	 	7)	 	If the aggregate investment in an Investment Account of the equity securities of any
one company exceeds 5% of that company’s outstanding shares of all classes of stock of that
issuer, the Adviser will notify Symetra.

Additional State Law Guidelines for Insurance Company Investment Accounts

	 	1)	 	Investment in preferred stock with voting rights plus common stock in the same issuer
is limited to 15% of the issuer’s outstanding shares having voting rights.

	 	2)	 	Investment is limited to 10% of the outstanding common stock of the same issuer.

	 	3)	 	No investment in the securities issued by an insolvent corporation is permitted. For
purposes of this section 3, “insolvent corporation” is a corporation for which bankruptcy,
receivership, insolvency, reorganization or other similar proceedings have been instituted
by or against such corporation under any section or chapter of the United States Bankruptcy
Code, as amended, or under any similar laws or statutes of the United States (or any state
thereof).

SECURITIES LENDING PROGRAM

First Symetra National Life Insurance Company of New York, Symetra Life Insurance Company, and
Symetra National Life Insurance Company (collectively “the Companies”) have adopted this Securities
Lending Program to supplement the Companies’ Statement of Investment Policy. The Companies and
their agents will adhere to the following procedures under the Program to govern their securities
lending practices:

(1) The Companies shall receive collateral having a fair value as of the transaction date at least
equal to 102 percent (or as otherwise established by the Statements of Statutory Accounting
Principles (“SSAP”)) of the fair value of the loaned securities at that date. If at any time the
fair value of the collateral is less than 100 percent of the fair value of the loaned securities,
the counterparty shall be obligated to deliver additional collateral, the fair value of which,
together with the fair value of all collateral then held in connection with the transaction at
least equals 102 percent (or as otherwise established by the SSAP) of the fair value of the loaned
securities. The collateral may consist of cash, letters of credit from authorized banks, or
securities issued or guaranteed by the United States government or one of its agencies or
instrumentalities, or any combination thereof. The collateral will be received by the Companies’
custodian concurrently with delivery of the loaned securities and kept in a segregated account.
The Companies will monitor collateral levels via reports provided by the custodian on a monthly
basis. Any non-compliance issues will be elevated to the Chief Financial Officer or his designee
and to the custodian for corrective action.

(2) Loans may be made only to reputable borrowers that, in the Companies’ opinion, are of sound
financial condition. The custodian will maintain a list of approved borrowers and will monitor the
creditworthiness of such approved borrowers on an on-going basis. The Companies will obtain an
updated borrower list on a quarterly basis. Any deletions required will be communicated to the
custodian using the agreed upon methodology as outlined in the agreement.

(3) No loan of securities may be made to any borrower if, within the meaning of the Insurance
Company Holding Act, such borrower would be an affiliated person of the Companies.

(4) Loans must be callable at any time. If a loan is terminated by the Companies, the borrower must
return the loaned securities within five business days. If the borrower fails to deliver the loaned
securities within five days after receipt of notice of termination, the Companies may use the
collateral to replace the securities and hold the borrower liable for the excess of replacement
cost exceeding the collateral.

(5) The Companies may pay fees to a lending agent or other intermediary for the following: (a)
reasonable custodial fees; and (b) fees for the arranging of portfolio loans, provided that the
Companies have determined in each case that the fee is reasonable and based solely on the services
rendered. In addition, the Companies must receive a reasonable fee for lending their securities.

(6) Loans of securities must be made pursuant to written contracts which have been approved and
executed on behalf of each Company by a duly authorized officer and which are designed to assure
that these procedures will be complied with in connection with such loans. Information concerning
each loan will be provided by the custodian upon request.

(7) The Companies’ board

will periodically review

lending activities

affecting the Companies’

portfolios.

Schedule 2

Statement of Investment Policy

Symetra Financial

Overview

This investment policy and its associated guidelines apply in aggregate to the investable general
account and guaranteed separate account assets of Symetra Financial Corporation and its
subsidiaries (“Symetra Financial”). These guidelines are established by the boards of directors,
or their designated committees, of Symetra Financial companies. These guidelines should be used in
conjunction with any specific supplementary guidelines established for each major business line, as
well as any additional investment guidelines for certain separate account contracts (e.g. BOLI).
Any deviations from these guidelines must be approved by the appropriate company’s board of
directors or by its designee and reported to the Symetra Financial Corporation board of directors
quarterly.

Investment Objective

Support optimizing the economic value of the company across a broad range of interest rate and
economic environments, while complying with applicable regulations, management initiatives and
rating agency requirements.

The management of the portfolio will be primarily driven by asset/liability management, regulatory
and general management considerations rather than total return benchmarks or other measures.
However, to aid in the assessment of investment performance, the total return for the overall
portfolio will be compared over multiple timeframes with relevant customized benchmarks having
duration and yield characteristics consistent with the liabilities.

Duration/Convexity

Duration and convexity management are particularly important for liabilities with cash flows that
can not be adjusted to reflect investment experience, but whose profitability is driven by the net
interest spread (“fixed liabilities”). For example, fixed liabilities include structured
settlements, income annuities, and fixed annuities with a set crediting rate for a specified period
of time (not including annuities with regular credited rate resets). Many other Retirement
Services and Life liabilities require less precise, although still fairly constrained, duration and
convexity characteristics. Many of these other liabilities have regular credited rate resets,
minimum credited rate guarantees as well as the option to withdraw the cash value at book value,
with or without a fixed surrender charge.

For fixed liabilities (defined above) other than the very long duration structured
settlements/income annuities, the effective asset duration should be within +/- 0.5 of the
effective liability duration. For parallel yield curve shocks of +/- 1%, this difference should be
no more than +/- 0.75. Larger parallel yield curve shocks will also be monitored for potential
dislocations. Also, although there are currently no set guidelines,

1

partial asset and liability durations at significant points along the yield curve will be monitored
to ensure a reasonable balance. For non-fixed Retirement Services and Life liabilities as well as
for structured settlements and income annuities, the effective asset duration should be within +/-
1.0 of the target portfolio duration for each major liability group (determined in conjunction with
each business line and summarized in a separate document). For parallel yield curve shocks of +/-
1%, this difference should be no more than +/- 1.25.

Unlike most of the Company’s other liabilities, the products in the Group business line are driven
by underwriting rather than investment results. Also, projected liability cash flows (including
new premium) are positive in most plausible scenarios. Because of these attributes, additional
flexibility around portfolio duration is reasonable. The effective asset duration should be
within +/- 2.0 of the Group portfolio’s target duration. As with other business lines, parallel
and non-parallel yield curve shock analysis will be performed to test for possible dislocations.

The Corporate Surplus portfolio will not have pre-set duration targets. It will be driven by
overall corporate requirements and any additional needs of the business lines.

Asset Allocation

Asset allocation is driven by the interest sensitive or guaranteed nature of many of the company’s
liabilities, regulatory and rating agency requirements as well as the need for reasonably
consistent income and surplus growth. Given these considerations, the portfolio will consist
mostly of a diversified mix of investment grade fixed income securities. As capital levels and
rating agency considerations permit, relatively small allocations to equities, alternatives and
high yield will be used to increase expected returns, diversify risks and better match very long
duration liabilities (e.g. structured settlements). The following asset allocation limits are
based on market values.

	 	 	 	 	 	 	 	 	 
	Asset Type

	 	Maximum

Allocation
	 	Illustrative

Long-term

Target*

	 

	 	 	 	 	 	 	 	 
	Fixed Income

Corporate Bonds

MBS/CMO

Asset Backed Securities

CMBS

Commercial Mortgages

Other Investment Grade

Below Investment Grade

	 	100%

70%

20%

15%

12%

10%

10%

7%
	 	96%

55%

10%

12%

7%

7%

2%

3%

	Equity/Alternatives

Public/Private Equity

Hedge Funds

Real Estate

Other

	 	5%

3%

3%

2%

2%
	 	4%

1.5%

1.5%

0.5%

0.5%

	Cash & short-term purchases

	 	 	2	%	 	 	0	%

• Illustrative long-term targets are based on the 2004 liability mix.

2

Liquidity

Cash on hand plus projected asset cash flows will be greater in aggregate than projected cash flows
on current liabilities over the next 12 months. In addition, reasonable overall portfolio
liquidity will be maintained to cover unanticipated liability cash flows and portfolio rebalancing
needs. Specifically, liquid assets will comprise at least 50% of the Corporate Surplus and
Structured Settlement/Income Annuity portfolios. All other portfolios will have at least 75%
liquid assets (except BOLI separate accounts, which will have at least 90% liquid assets),
recognizing the surrenderable nature of many of the other liabilities. Liquid assets are defined
as government/agency, public investment grade fixed income and public equity securities which are
sellable within 90 days for at least 95% of the most recently traded price.

Asset Quality

Fixed income investments will be focused on investment grade securities. The market value of
BBB-rated fixed income securities (excluding commercial mortgage whole loans) will not exceed 40%
of the aggregate market value of the portfolio. Similarly, the market value BB and B-rated (and
lower) fixed income securities will not exceed 5% and 2%, respectively, of the aggregate market
value of the portfolio. Purchases will not be made which either cause a quality limit to be
violated or increase exposure in cases where the limit is already exceeded. In the event that
quality downgrades cause a limit to be exceeded, the investment manager will use reasonable
judgment in reducing exposure below the limit as market conditions permit.

Ratings used in these guidelines are from Moody’s if available, then S&P, Fitch and the NAIC, in
that order. If none of these ratings are available, an internal rating generally consistent with
the methodology used by these major rating agencies will be used.

Concentration Limits

The following concentration limits deal with diversification by individual entity. As with the
asset quality limits, purchases will not be made which either cause a concentration limit to be
violated or increase exposure in cases where the limit is already exceeded. In the event that a
quality downgrade causes a limit to be exceeded, the investment manager will use reasonable
judgment in reducing exposure below the limit as market conditions permit.

Issuer – Fixed Income

Management will closely monitor firm-wide investment concentrations in individual issuers (U.S.
Government and GSE securities excepted) to ensure adequate diversification. The limits below apply
to the senior debt rating of the issuer, and are based on the aggregate market value of all fixed
income securities from a single issuer as a percentage of the Company’s Statutory Surplus plus
Asset Valuation Reserve (AVR). In addition, any fixed income securities of an issuer rated below
its senior debt rating (“junior securities”) must also comply with the limits below, based on the
ratings of the junior securities. Also, in the case of securitized investments backed by
collateral pools, the credit rating of each individual security will be used in the table below,
provided that the aggregate market value of fixed income securities backed by any single pool of
collateral does not exceed the AAA limit below. Ratings are defined as described in the Asset
Quality section above.

	 	 	 	 	 
	Senior

Debt Rating

	 	Market Value as a %

Surplus + AVR
	 	Approximate % of

Total Market Value *
	 

	 	 
	 	 
	AAA

AA

A

BBB

BB

< BB

	 	12 %

10 %

8 %

6 %

3 %

2 %
	 	0.7%

0.6%

0.5%

0.4%

0.2%

0.1%

• As of 12/2003

Issuer – Equity

Equity securities of a single issuer are limited by the table below, which varies by the senior
debt rating class of the issuer.

	 	 	 	 	 
	Senior

Debt Rating

	 	Market Value as a %

Surplus + AVR
	 	Approximate % of

Total Market Value *
	 

	 	 
	 	 

Investment Grade 3 % 0.2% Below Inv. Grade 1% 0.1%

• As of 12/2003

Insurer

The aggregate market value of securities insured by a single entity is limited to 4 times the fixed
income issuer limit (above), based on the senior debt rating of the insurer. In the event that any
of the insured securities would not have an investment grade rating on a stand-alone basis (without
the insurance), the insurer’s fixed income issuer limit (before multiplying by the factor of 4)
will be reduced by the market value of such securities.

Servicer

The market value of non-US Government/GSE securities serviced by one servicing agent is limited to
25% of Statutory Surplus plus AVR.

Funds

Private fund investments such as private equity or hedge funds will be limited as follows.

	 	 	 
	Type

	 	Market Value as a %

Surplus + AVR
	 

	 	 
	Single Fund

Single Manager

	 	5%

10%

3

Other Diversification

Within the corporate bond portfolio, the market value of securities within a single major industry
class will not exceed 20%. Although there are no pre-set limits, asset backed and commercial
mortgage backed securities will be reasonably diversified by collateral type. Also, commercial
mortgage exposure (CMBS and whole loan in aggregate) will be reasonably diversified by geographic
region.

Currency

The currency denomination of the assets (incorporating any currency hedges) will be the same as the
denomination of the associated liabilities, which in most if not all cases will be U.S. dollars.
The Surplus portfolio will also be denominated in U.S. dollars. However, up to an aggregate market
value of 1% of total assets may be denominated in un-hedged G-7 currencies.

Derivatives

The use of derivatives will be governed by the Derivatives Use Plan filed with, and approved by,
any appropriate insurance regulatory agencies as well as the boards of directors of Symetra
Financial companies.

Investment Managers

White Mountains Advisors LLC (“WMA”) will be the primary investment manager for Symetra Financial
and its affiliates. WMA may engage other investment managers to manage discrete portions of the
Symetra Financial portfolios. However, WMA will be responsible for engaging, monitoring and
terminating such managers, and for ensuring the overall portfolio is invested in accordance with
this investment policy. All transactions will be promptly and accurately recorded as they occur.

ADDENDUM

TO

SYMETRA FINANCIAL CORPORATION

STATEMENT OF INVESTMENT POLICY

DERIVATIVES USE PLAN

Adopted by the Board of Directors on November 14, 2006

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	I.
	 	POLICY..........

	 	 	 	 	1	 
	II.	 	DERIVATIVE INSTRUMENTS AND STRATEGIES
	 	 	 	 
	 	 	A.

	 	DERIVATIVE INSTRUMENT DEFINITIONS
	 	 	1	 

	 	B.	 	EXCHANGE TRADED VERSUS OVER-THE-COUNTER TRANSACTIONS	 

	 	C.	 	STRATEGIES	 

D. DUTY TO CONSIDER RISKS INHERENT IN DERIVATIVE TRANSACTIONS.

	 	 	 	 	 
	 	 	E.RISK/EXPOSURE MEASUREMENT	 	6
	III.

	 	LIMITATIONS AND PARAMETERS
	 	

	 	A.	 	QUANTITATIVE AND OTHER LIMITATIONS	 

	 	B.	 	DOCUMENTATION OF OTC DERIVATIVE TRANSACTIONS	 

	 	 	 	 	 	 	 	 	 
	IV.	 	OVERSIGHT, INTERNAL CONTROL PROCEDURES AND REPORTING	 	 	9	 
	 	 	A.
	 	DELEGATION OF RESPONSIBILITY

	 	 	9	 

	 	B.	 	DAY-TO-DAY RESPONSIBILITY – INVESTMENT MANAGER	 

	 	C.	 	INTERNAL CONTROL PROCEDURES – PROCESS FOR APPROVAL AND MONITORING
OF INDIVIDUAL TRANSACTIONS	 

	 	 	 
	D.MANAGEMENT OVERSIGHT OF DERIVATIVES PROGRAM	 	12
	E.RECORDS AND DOCUMENTATION	 	13
	F.SEPARATION OF TRADING AND SETTLEMENT FUNCTIONS	 	13
	G.ACCOUNTING AND FINANCIAL REPORTING	 	13
	EXHIBIT A – SAMPLE DERIVATIVE TRANSACTION CONTROL SHEET

EXHIBIT B – LIST OF COMPANIES

EXHIBIT C – SAMPLE EFFECTIVENESS SUMMARY

	 	A-1

B-1

C-1

I. POLICY

The purpose of this Plan is to set forth the guidelines and parameters for the use of
derivative transactions by Symetra Financial Corporation, a state of Delaware-domiciled
corporation, and each of its subsidiaries identified on Exhibit B hereto (each a “Company” or
collectively the “Companies”). As contemplated in this Plan, the Companies’ use of derivative
transactions shall be in conformance with applicable law and with the Companies’ general philosophy
of managing their investments and overall balance sheet in a prudent and conservative manner, with
the goals of preserving the capital and financial strength of the Companies, while seeking adequate
returns on their investments and operations. In that regard, the Companies’ use of derivative
transactions under this Plan is expected to help manage the Companies’ investments. Derivatives,
however, will not be used for speculative purposes.

The Companies recognize that, while derivative transactions are useful risk and portfolio
management tools, as with any investment practice, the use of derivative transactions exposes the
Companies to certain risks. Nevertheless, the risks associated with derivative transactions are
not inherently different than those present in other, more traditional forms of investments, and,
with proper use and careful management, such derivative transactions can be utilized safely, as
part of the overall investment and risk management strategy of the Companies. Therefore, in order
to ensure the proper use of derivative transactions and to mitigate the risks associated with such
use, this Plan establishes internal controls and reporting with respect to the use of derivative
transactions.

II. DERIVATIVE INSTRUMENTS AND STRATEGIES

	 	A.	 	Derivative Instrument Definitions.

Derivative instruments and transactions can be structured in numerous forms with various
characteristics. For the purposes of this Plan, the Companies recognize the two following industry
definitions of “derivative instrument”:

	 	1.	 	The definition according to Generally Accepted Accounting Principles
(GAAP):1

A financial instrument or other contract with all three of the following
characteristics:

	 	•	 	It has (1) one or more underlyings and (2) one or more notional amounts or
payment provisions or both.

	 	•	 	It requires no initial net investment or an initial net investment that is
smaller than would be required for other types of contracts that would be expected to
have a similar response to changes in market factors.

	 	•	 	Its terms require or permit net settlement, it can readily be settled net by a
means outside the contract, or it provides for delivery of an asset that puts the
recipient in a position not substantially different from net settlement.

	 	2.	 	The regulatory definition:2

An agreement, option, instrument or a series or combination thereof:

	 	(a)	 	To make or take delivery of, or assume or relinquish, a specified amount of one
or more underlying interests, or to make a cash settlement in lieu thereof; or

	 	(b)	 	That has a price, performance, value or cash flow based primarily upon the
actual or expected price, level, performance, value or cash flow of one or more
underlying interests.

Examples of derivative instruments include, but are not limited to, options, warrants used in a
hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps,
swaptions, forwards, futures and other agreements, options or instruments substantially similar
thereto or any series or combination thereof. The following are regulatory definitions3
with respect to each of the foregoing instruments:

“Cap” means an agreement obligating the seller to make payments to the buyer with each
payment based on the amount by which a reference price or level or the performance or value
of one or more underlying interests exceeds a predetermined number, sometimes called the
strike rate or strike price.

“Collar” means an agreement to receive payments as the buyer of an option, cap or floor and
to make payments as the seller of a different option, cap or floor.

“Floor” means an agreement obligating the seller to make payments to the buyer in which each
payment is based on the amount by which a predetermined number, sometimes called the floor
rate or price, exceeds a reference price, a level, or the performance or value of one or
more underlying interests.

“Forward” means an agreement (other than a future) to make or take delivery of, or
effect a cash settlement based on the actual or expected price, level, performance or value
of, one or more underlying interests, but shall not mean or include spot transactions
effected within customary settlement periods, when-issued purchases, or other similar cash
market transactions.

“Future” means an agreement, traded on a qualified exchange or qualified foreign
exchange, to make or take delivery of, or effect a cash settlement based on the actual or
expected price, level, performance or value of, one or more underlying interests.

“Option” means an agreement giving the buyer the right to buy or receive (a “call option”),
sell or deliver (a “put option”), enter into, extend or terminate or effect a cash
settlement based on the actual or expected price, level, performance or value of one or more
underlying interests.

“Swap” means an agreement to exchange or to net payments at one or more times based on the
actual or expected price, level, performance or value of one or more underlying interests.

“Swaption” means an option to enter into a Swap.

“Warrant” means an instrument that gives the holder the right to purchase an underlying
financial instrument at a given price and time or at a series of prices and times outlined
in the warrant agreement. Warrants may be issued alone or in connection with the sale of
other securities, for example, as part of a merger or recapitalization agreement, or to
facilitate divestiture of the securities of another business entity.

	 	B.	 	Exchange Traded versus Over-the-Counter Transactions.

Derivative transactions may be traded through an exchange or through the more specialized
over-the-counter (“OTC”) market. While derivative exchanges provide ease of access to a ready
market for derivative transactions, a higher degree of liquidity and the mitigation or elimination
of counterparty credit risk, exchanges require uniformity of terms among transactions and
therefore, may not always accomplish the underlying investment objective. In contrast, while OTC
transactions are generally less liquid and expose the parties to counterparty credit risk, they
allow counterparties to structure more customized transactions to accomplish more closely the
objective for entering into the derivative transaction. In addition, the wide use of standardized
documentation, such as the forms of Master Agreements published by the International Swaps and
Derivatives Association, Inc. (“ISDA”), has created a certain degree of uniformity and
standardization in OTC transactions. The Investment Manager shall evaluate the characteristics of
an exchange-traded versus OTC derivative transaction, including underlying counterparty credit
exposure, before engaging in a derivative transaction.

As a general rule, the Investment Manager will emphasize the use of exchange-traded
derivatives and reasonably liquid OTC derivatives, while taking advantage of less liquid,
customized OTC derivatives only when appropriate.

	 	C.	 	Strategies (All life insurance company strategies will conform to
applicable state statutes).

Derivative instruments can be used in conjunction with various strategies to affect a desired
purpose or objective; however, as a general rule, derivative transactions are primarily focused on
three basic strategies: hedging (including replication), income generation, and speculation. The
Companies will be focused on hedging (including replication) strategies to manage exposure to
changes in interest rates, spreads, equity returns, currencies, and credit quality and on income
generation.

	 	1.	 	Derivative Transactions for Hedging Purposes 

Derivative transactions are widely used as a tool to reduce and hedge against risks faced
by companies in the marketplace. In that regard, the use of hedging transactions is an important
and essential part of the Companies’ overall risk management program.

For purposes of this Plan, the definition of “hedging transaction” is a derivative transaction
which is entered into and maintained to reduce:

	 	(a)	 	The risk of a change in the value, yield, price, cash flow, or quantity of assets
or liabilities that the insurer has acquired or incurred or anticipates acquiring or
incurring; or

	 	(b)	 	The currency exchange rate risk or the degree of exposure as to assets or
liabilities that the insurer has acquired or incurred or anticipates acquiring or
incurring.

The Companies’ use of derivative transactions for hedging purposes may also include
replication transactions. For purposes of this Plan, the definition of “replication transaction”
is “a derivative transaction or combination of derivative transactions effected either separately
or in conjunction with cash market investments included in the insurer’s investment portfolio in
order to replicate the investment characteristic of another authorized transaction, investment or
instrument and/or operate as a substitute for cash market transactions.” In certain circumstances,
replication transactions can provide a more cost-effective means of investing in a given asset or
group of assets, in effect, by synthetically replicating the characteristics and performance of the
assets. Replication transactions can also be used to replicate certain desired, rather than all,
characteristics of an asset. The Investment Manager shall structure the Companies’ replication
transactions so that the potential exposure with respect to a replication transaction is directly
related to the risks associated with the asset characteristics being replicated.

Given the nature and purpose of a hedging transaction, the potential exposure associated with
such transactions is generally limited. If a hedging transaction is structured properly as an
effective hedge, any losses realized with respect to the asset or activity that was the subject of
the hedge should be matched or offset, entirely or in part, by gains in the transaction. In that
regard, a crucial element of the Companies maintaining a successful hedging program using
derivative transactions is the Companies’ implementation of appropriate procedures and guidelines
to evaluate the effectiveness or efficacy of specific hedging transactions (see Section IV G
Accounting and Financial Reporting for specific guidance).

	 	2.	 	Income Generation

Income generation transactions allow the Companies to earn income through the use of
derivative transactions. However, income generation for the purposes of this Plan will only be
permitted through the sale of call options on securities, provided that the Companies hold, or can
immediately acquire through the exercise of options, warrants or conversion rights already owned
during the entire period the option is outstanding (i.e., covered options).

	 	D.	 	Duty to Consider Risks Inherent in Derivative Transactions.

As with any investment, the use of derivatives entails certain risks. At a minimum, the
following significant risks shall be considered by the Investment Manager prior to engaging in a
particular derivative transaction.

	 	 	 	Basis Risk

The effectiveness of any hedging strategy is dependent upon the matching of the risks
being hedged with the instruments and strategies used to mitigate such risks, creating a
corresponding offsetting position. “Basis risk” is the risk of loss resulting from a hedging
transaction that is imperfectly matched or correlated to the subject risk exposure. The Investment
Manager will continuously monitor the Companies’ hedging transactions to ensure that they continue
to be effective. Should the effectiveness of the hedge position shift significantly the Investment
Manager will seek to either modify or terminate the transaction. The foregoing concept can also
apply to replication transactions, where basis risk can exist between the subject derivative
transaction and the asset/assets intended to be replicated.

	 	3.	 	Counterparty Exposure Risk 

Counterparty exposure risk relates to the risk of loss resulting from a default by a
counterparty of its obligations under a derivative transaction. Where a derivative transaction is
entered into through a qualified exchange, the counterparty exposure risk is limited by the
financial stability of the exchange and its clearing system. Conversely, if a derivative
transaction is an OTC transaction, the counterparty exposure amount will depend largely upon the
creditworthiness of the counterparty to the transaction.

With respect to OTC transactions and transactions entered through non-qualified exchanges, the
Investment Manager shall seek to mitigate counterparty exposure by (i) evaluating and monitoring
the financial qualifications of counterparties to ensure that they meet the counterparty
requirements set forth in Section IV.A of this Plan, and (ii) to the extent appropriate, requiring
counterparties to provide the Companies with sufficient collateral security and other financial
assurances, such as the posting of collateral or letters of credit. Specifically, the Investment
Manager shall request collateral in the event that total net exposure to such counterparty exceeds
an amount based on the following schedule:

	 	 	 
	-

-

-

-

-

-
	 	$25 million for a counterparty with a AAA rating

$20 million for a counterparty with a AA rating

$15 million for a counterparty with a A rating

$5 million for a counterparty with a BBB+ rating

$2.5 million for a counterparty with a BBB rating

$0 for BBB- and lower

In the event that collateral is required, the Investment Manager will request either a letter
of credit from an acceptable bank or collateral consisting of cash or high quality securities for
at least 100% of the amount of net exposure exceeding the amount outlined above.

	 	4.	 	Liquidity Risk

As with any form of investment, derivative instruments pose a certain degree of liquidity
risk. Although exchange-traded derivatives are generally considered liquid instruments, certain
specialized or customized OTC derivatives may be relatively illiquid. The liquidity of a derivative
instrument also generally decreases during volatile market conditions, with the liquidity of
certain investments, such as OTC derivatives, being affected more severely during such volatile
market conditions, particularly when one wants to sell or close a position. While this is a risk in
the market, it can also be exploited as an opportunity.

	 	5.	 	Systemic Risk

Systemic risk is the risk that a major failure or disruption in one institution or
segment of the market will affect other institutions, leading ultimately to a breakdown of the
financial system. The use of derivative transactions and the potential of failures within the
derivatives markets can contribute to this overall systemic risk. Given the continued and
increasing oversight of the derivatives markets, this risk is fairly remote.

	 	6.	 	Operational Risk

The use of derivative instruments is also subject to the risk of human error,
mismanagement and system and control failures. To minimize its operational risks, the Companies
and the Investment Manager shall have in force at all times the internal control procedures set
forth in Section IV hereof, which provide multiple levels of oversight, appropriate checks and
balances, and periodic audits and reviews of specific transactions and the system. Furthermore,
the Companies and the Investment Manager shall utilize the knowledge of suitably qualified
individuals who have knowledge and experience in the use of derivative instruments.

	 	E.	 	Risk/Exposure Measurement.

In order to quantify the various types of risks associated with derivative transactions, the
Investment Manager shall apply industry-accepted models to every applicable derivative transaction.
In that regard, the Investment Manager is authorized to use the models available through systems
such as Bloomberg, Derivative Solutions or other similar industry-accepted models.

III. LIMITATIONS AND PARAMETERS

	 	A.	 	Quantitative and Other Limitations.

The Companies recognize the importance of diversification and credit quality. Unless otherwise
provided for under the applicable law, the Companies’ limits for different derivative strategies
and instruments are as follows:

	 	1.	 	Limitations Relating to Strategies and Instruments (to
be applied on a per-Company basis)

In addition to the limitations relating to counterparties and the other limitations set
forth in subsection 2 below, the Companies and the Investment Manager shall comply with the
limitations set forth in subsections 1(a)-(c) below specifically applicable to the strategies of
hedging, replication and income generation. In addition, while the Companies do not have any
guidelines limiting the maximum allowed term for derivative transactions, to the extent possible,
the Investment Manager generally will have the term of the derivative transaction be less than or
equal to the anticipated duration of the risk.

(a) Hedging.

The Companies may engage in hedging transactions, provided that the hedge continues to be
effective according to the Companies’ evaluation procedures (which will incorporate certain
derivative related information provided by the Investment Manager) and each Company complies with
the following quantitative limitations:

	 	•	 	The aggregate financial statement value of options, swaptions,
caps, floors and warrants not attached to another financial instrument
that are purchased by a Company and used in hedging transactions shall
not exceed 7.5% of the market value of such Company’s invested assets
(admitted assets for life insurance companies).

	 	•	 	The aggregate financial statement value of options, swaptions, caps
and floors written by a Company for hedging transactions shall not
exceed 3% of the market value of the such Company’s invested assets
(admitted assets for life insurance companies).

	 	•	 	The aggregate potential exposure of collars, swaps, swaptions,
forwards and futures used in hedging transactions shall not exceed 6.5%
of a Company’s invested assets (admitted assets for life insurance
companies).

(b) Replication.

The Companies may engage in replication transactions provided that the Companies would
otherwise be authorized to invest their funds in the assets being replicated, the replication
continues to be effective and each Company complies with the following quantitative limitations:

	 	•	 	A Company shall aggregate all replicated investment positions
with their direct investments as if such Company had invested in the
replicated asset directly in determining its compliance with applicable
quantitative limitations.

	 	•	 	The aggregate financial statement value of assets being replicated
shall not exceed 10% of the market value of a Company’s invested assets
(admitted assets for life insurance companies).

	 	(c)	 	Income Generation.

A Company may engage in income generation transactions provided that such transactions may
only involve the sale of call options on securities that such Company holds (or can immediately
acquire through the exercise of options, warrants or conversion rights already owned) during the
entire period the option is outstanding (i.e., covered options), and each Company complies with the
following quantitative limitations:

	 	•	 	The aggregate financial statement value of options written by a
Company for income generation transactions shall not exceed 1% of the
market value of such Company’s invested assets (admitted assets for
life insurance companies).

	 	2.	 	Limitations Relating to Counterparties

The Investment Manager shall monitor the credit quality of counterparties and regularly
analyze and review the Companies’ counterparty exposure. The Investment Manager shall use a
mark-to-market value to determine a Company’s counterparty exposure, net of any collateral held.
The Investment Manager will also analyze “expected values” to determine total exposure.
Furthermore, a Company shall limit its individual counterparty exposure under one or more
derivative transactions to (a) 1% of its market value of invested assets (admitted assets for life
insurance companies) for any single counterparty rated less than AA-/Aa3 and (b) 3% of its market
value of invested assets for counterparties AA-/Aa3 or better. In addition, a Company’s
counterparty exposure shall be deemed to be an obligation of the institution to which such Company
is exposed to credit risk and shall be included in determining compliance with any single or
quantitative limitation applicable to such Company’s investments.

	 	B.	 	Documentation of OTC Derivative Transactions.

All OTC derivative transactions entered into by the Companies shall be documented on an
appropriate form of the ISDA Master Agreement (“Master Agreement”). Each transaction shall be
based upon the Master Agreement and include negotiated schedules. Prior to the execution of any
OTC derivative transaction, a Master Agreement between the Company(ies) and the subject
counterparty must be in place. Each derivative transaction shall be documented on a standard
confirmation which references the Master Agreement between the Company(ies) and the counterparty.

IV. OVERSIGHT, INTERNAL CONTROL PROCEDURES AND REPORTING

	 	A.	 	Delegation of Responsibility.

The ultimate responsibility for the use of derivative transactions is vested in each Company’s
Board of Directors (“Board”). In discharging its duties with regard to derivative transactions,
each Board shall act in good faith with that degree of care that an ordinary, prudent person in
like circumstances would use under similar circumstances. This Plan may be amended only by the
Board.

The Board may delegate the day-to-day oversight regarding the Company’s use of derivative
instruments as outlined in this Plan to an Investment Manager. The Board shall choose an
Investment Manager that possesses such expertise and experience necessary to appropriately manage
the day-to-day derivative operations in a prudent manner, in compliance with this Plan.

	 	B.	 	Day-to-Day Responsibility – Investment Manager.

All oversight of day-to-day decisions regarding a Company’s use of derivative instruments will
be vested in the Investment Manager. In overseeing the day-to-day derivative activities of the
Companies, the Investment Manager will comply with all the terms of this Plan and the investment
policy established by each Company’s Board. In addition, the Investment Manager will provide
certain trade date documentation and derivative modeling results (described below) to help support
each Company’s accounting and reporting policies and responsibilities related to derivative
investments, both on a GAAP and Statutory accounting basis.

	 	1.	 	Review and Documentation of Derivative
Transactions

A member of the Investment Manager authorized to initiate derivative transactions will
review each potential derivative transaction entered into by the Companies in accordance with the
terms of this Plan.

The Investment Manager shall prepare reports pursuant to Section D hereof for the purpose of
facilitating the Companies’ review of such derivative transactions.

	 	C.	 	Internal Control Procedures – Process for Approval and Monitoring of
Individual Transactions.

The Investment Manager will maintain a list of personnel authorized to initiate derivative
transactions. In examining whether a Company should engage in a particular derivative transaction,
an authorized member of the Investment Manager will consider (i) the guidelines set forth herein,
(ii) the intended purpose of the transaction, (iii) the incremental risk to the Company caused by
engaging in such derivative transaction, and (iv) alternative mechanisms for achieving the same
purpose. All proposed derivative transactions will be documented on the trade date on a Derivative
Transaction Control Sheet (“Control Sheet”), substantially in the form attached hereto as Exhibit
A. The Control Sheet may be updated from time to time to reflect changing information requirements
from regulators or as best practices evolve. A Control Sheet will not be deemed complete unless a
draft of the underlying confirmation is attached thereto and the Control Sheet contains the
following information:

	 	•	 	type of derivative instrument(s) to be used;

	 	•	 	type of strategy to be undertaken;

	 	•	 	underlying investment position or other balance sheet or income
statement item to which the derivative transaction relates;

	 	•	 	description of the transaction, its purpose and its intended effect,
including a precise identification of the risks being hedged or
replicated, if applicable;

	 	•	 	identity of the counterparty or, with respect to exchange-traded
transactions, the identity of the exchange and the name of the firm
that handled the trade;

	 	•	 	notional amount of the transaction;

	 	•	 	consideration for the transaction;

	 	•	 	any additional collateral or other credit support taken or provided;
and

	 	•	 	Investment Manager’s recommendation for the most appropriate method
for assessing effectiveness based on acceptable choices provided by a
Company in the event hedge accounting is to be used (final
determination to be made by a Company for accounting/tax purposes).

On the date of a derivative transaction, two members of the Investment Manager must sign
the Control Sheet, one of whom is authorized by the Investment Manager to initiate derivative
transactions and the other of whom is in the Operations area responsible for settling all
derivative transactions. Prior to the end of the day on which a derivative transaction has
occurred, the Investment Manager will ascertain that:

	 	•	 	the Control Sheet is complete;

	 	•	 	the derivative transaction complies with this Plan, including a
Company’s established quantitative and qualitative limits/parameters;

	 	•	 	the transaction is reasonably expected to perform as intended, as
demonstrated through stress testing and other techniques designed to
vary market performance and conditions as appropriate;

	 	•	 	the counterparty is included on the Investment Manager’s list of
approved derivative counterparties for such Company;

	 	•	 	Such Company has received a copy of the completed Control Sheet so
that it can complete any additional required hedge designation
documentation, including the anticipated accounting and tax treatment
for such derivative transactions. In the event that the transaction is
not of the type where standard language has been provided to the
Investment Manager by such Company, a minimum of 1 day prior notice
must be given to such Company to allow adequate time to complete the
derivative documentation in a timely manner. In all other cases the
Control Sheet will be provided to such Company by noon on the
transaction date.

The Investment Manager will be responsible for ensuring the proper monitoring of the
performance of each derivative transaction during its duration to make certain that each derivative
transaction continues to perform as originally intended and each such transaction remains in
compliance with (i) all applicable laws and regulations, (ii) the terms of this Plan, and (iii) the
underlying transaction documentation. A derivatives committee established by the Investment
Manager will review the performance, potential risk and overall compliance of each derivative
transaction on at least a monthly basis. Committee meeting minutes will be kept with copies
provided to the Investment Manager and to the Companies. Any derivative transaction that is no
longer performing in a manner consistent with its original purpose or is no longer in compliance
with the aforementioned laws, regulations, Plan or underlying documentation will be terminated as
soon as practicable.

The Investment Manager will be responsible for reviewing and approving its summary report
information generated with respect to all derivative transactions. The Investment Manager will
ensure information provided in such reports agrees with supporting documentation and systems backup
information used in its risk measurement. The Investment Manager will be responsible for ensuring
and assessing the effectiveness of internal controls over any models or system software used in the
derivative transactions.

The Investment Manager will be responsible for providing certain information relating to
derivative transactions necessary for the Companies’ assessment of the effectiveness of internal
controls over investment accounting and financial reporting (see Section IV.G Accounting and
Financial Reporting).

Every quarter, the Investment Manager will be responsible to report any internal control
weaknesses or significant deficiencies as they relate to internal controls over the derivative
transaction process. The Investment Manager shall prepare and deliver to the Companies a detailed
plan that is reasonably acceptable to the Companies for promptly correcting all such deficiencies
and exceptions (“Corrective Plan”). The Investment Manager shall deliver such Corrective Plan to
the Companies promptly following the identification of the internal control weakness.

In the event that either the Companies or Investment Manager identify any weaknesses in the
internal controls and procedures involving any material aspect of its respective derivative
responsibilities, such weaknesses will be promptly communicated to the other party and no
incremental derivative exposure effected by such weaknesses will be added until both the Investment
Manager and the Companies are satisfied that the weaknesses have been sufficiently addressed.

	 	D.	 	Management Oversight of Derivatives Program.

In order to enable the Companies and the Investment Manager to meet the Companies’ management
and oversight standards as set forth in this Plan or required by law, the Companies and the
Investment Manager shall be responsible, through their designated personnel, for generating a
detailed Derivatives Report containing information pertaining to a Company’s derivative activities
during the prior quarter or other relevant period. The Report will contain a summary of each
derivative transaction and a copy of each Control Sheet with respect to each derivative transaction
effected during the relevant period. In addition, the Report will contain the following
information:

	 	•	 	outstanding derivative positions and unrealized gains or losses
on such positions, if any;

	 	•	 	derivative transactions opened and/or closed during the quarter and
realized gains and losses on such transactions, if any;

	 	•	 	a performance review of the derivative transactions;

	 	•	 	an evaluation of the risks and benefits of the derivative
transactions, including whether a derivative transaction entered into
for hedging purposes continues to be an effective hedging tool;

	 	•	 	an assessment of future or “potential” risk exposure;

	 	•	 	a review of all counterparty exposure amounts outstanding;

	 	•	 	a valuation of the derivative transactions, including a mechanism
for compensating for any lack of independence in valuing trading
positions;

	 	•	 	any other reports, documentation or analysis deemed necessary by a
Company or the Investment Manager to ascertain whether all derivative
transactions have been made in accordance with the delegations,
standards, limitations and objectives contained in this Plan.

	 	E.	 	Records and Documentation.

The Investment Manager will ensure that original documentation is maintained with respect to
each derivative transaction prior to and following the termination of each such transaction, in
accordance with a Company’s record retention policies and procedures. All reports and
documentation maintained by a Company regarding its derivative transactions will be available for
(i) review by its Board, and (ii) independent audit and regulatory examination. The Investment
Manager, under Company direction, will use such records to prepare and maintain summary report
information with respect to all derivative transactions, in sufficient form and detail to allow the
preparation of the Companies’ Annual and Quarterly Statements in compliance with applicable laws
and regulations.

F. Separation of Trading and Settlement Functions.

The Investment Manager will maintain a clear separation of the trading and settlement
functions as another control measure. These two functions will be performed by separate areas and
personnel.

G. Accounting and Financial Reporting.

The Companies will have responsibility for Accounting and Financial Reporting relating to
derivatives. The Companies will provide the Investment Manager with accounting and tax wording for
some of the more probable types of derivatives that will be used. This information will be
included in the Control Sheet. The Investment Manager will provide certain derivative related
information to the Companies to support these activities as outlined below:

	 	•	 	The Investment Manager will prepare and provide the Companies, on the
trade date, with copies of the completed Control Sheet (see Exhibit A)
relating to each derivative transaction. The Companies will use the
information on the Control Sheet as part of their hedge designation
documentation. The designation documentation supporting the hedge must be
formal, be contemporaneous (i.e., prepared at inception of the hedge),
identify the hedged item, the hedging instrument, the nature of the hedging
relationship (e.g. fair value, cash flow, net investment), the Companies’
overall risk management objectives and strategy for undertaking the hedge.
The Investment Manager will suggest the most appropriate method for
determining how hedge effectiveness will be assessed. As part of the
Financial Reporting designated documentation, a statement must be included
that identifies the hedging transaction for tax purposes. This will be
provided by the Companies.

	 	•	 	The designation documentation must include support provided by the
Investment Manager (e.g., correlation statistics such as r-squared using
statistical analysis or observations of how effectively the hedging
instrument achieved the dollar offset with the hedged item in the income
statement) for why the hedge is expected to be “highly effective” at
inception and on a go-forward basis.

	 	•	 	To be determined to be a “highly effective” hedging transaction, such
transaction must be measured on a dollar offset approach and recorded
within an 80-125% effectiveness range.

	 	•	 	The designation documentation must define and document the method the
Companies (provided by the Companies) will use to assess the hedge
effectiveness for both prospective considerations and retrospective
considerations: either a dollar-offset approach or a regression or other
statistical analysis approach. However, when it comes to actually
recording the amount of ineffectiveness during a period, the dollar-offset
method must be used.

	 	•	 	Investment Manager will provide the Companies with the data supporting
the amount of ineffectiveness and the ongoing assessment.

	 	•	 	The Companies will prepare a summary similar to Exhibit C summarizing
the measurement of hedge effectiveness / ineffectiveness on quarterly
basis. See Exhibit C.

	 	•	 	Investment Manager will provide the Companies, when reasonably
requested, a quantitative and sensitivity analysis of the hedge transaction
and market risk (equity and interest risks) as required in Management
Discussion and Analysis.

EXHIBIT A

SAMPLE DERIVATIVE TRANSACTION

CONTROL SHEET

Attached Documentation

Attach a copy of the draft confirmation (attach final as soon as it is available) of the
derivative transaction to this Control Sheet. Also attach any documentation specific to this
transaction that is in addition to the Master Agreement, schedule thereto and any credit support
agreement.

Description of the Transaction

Please provide an appropriate answer to the information requested below regarding the subject
derivative transaction

	 	1.	 	Describe the derivative transaction, including the purpose (i.e., strategy) for
engaging in the derivative transaction and the intended effect.      
     
     

	 	a.	 	Describe the underlying investment position or other balance
sheet or income statement item to which the derivative transaction relates.
     
     
     

b. If the derivative transaction is entered into for hedging purposes, describe the
precise risk being hedged or replicated.
     
     

	 	2.	 	Indicate the type of derivative instrument(s) used.      
     
     

	 	3.	 	Indicate the notional amount of the derivative transaction.      
     
     

	 	4.	 	Indicate the consideration paid/received in connection with the derivative
transaction.     
     

	 	5.	 	Identify the counterparty to the derivative transaction, or, if the derivative
instrument is exchange traded, identify the exchange and the brokerage firm that
handled the trade.      
     
     

	 	6.	 	Describe any collateral or credit support given or received in relation to the
derivative transaction that is in addition to collateral required by the standard CSA.
	 
	 	 	 	     
     
     

	 	7.	 	Investment Manager’s recommendation for most appropriate method for assessing
hedge effectiveness from Companies’ list of approved methods (Companies will make the
final determination of the method to be used for accounting/tax purposes)

     
     

Performance of the Derivative Transaction

Attach any analysis or testing performed regarding the anticipated performance of the
derivative transaction.

Investment Manager Approval

The undersigned (i) certify that, to the best of his/her knowledge, all of the statements
provided herein are true and correct in all material respects, (ii) certifies that the derivative
transaction is within the undersigned’s authority level to approve, and (iii) approves the
derivative transaction described herein and set forth in the documentation attached hereto.

CH1 2768500v6

Authorized Trader’s signature

Member of Operations/Compliance Area

EXHIBIT B

	 	 	 
	LIST OF COMPANIES	 	DATE ADOPTED BY THE BOARD
	Symetra Life Insurance Company

	 	December 5, 2006

EXHIBIT C

SAMPLE EFFECTIVENESS SUMMARY

	 	 	 	 	 
	Company reporting date:

	 	

	(Effectiveness must be assessed whenever financial statements or earnings

are reported, but at least every 3 months)

	 	

	 

	 	

	Company Calculation of:

	 	

	 

	 	

	Hedged Item Fair Value

	 	$	$	 
	 

	 	 	 	 
	Hedging Instrument Fair Value

	 	$	$	 
	 

	 	 	 	 
	Retrospective Effectiveness

	 	

	 

	 	

	Prospective Effectiveness

	 	

	 

	 	

	For cash flow hedge of a forecasted transaction, is the hedged item still

probable of occurring? (yes or no)

	 	

	 

	 	

	Company performed and documented assessment of hedge effectiveness in

accordance with the method defined in the hedge designation

documentation? (yes or no)

	 	

	 

	 	

	Company concluded that hedge meets criteria for hedge accounting? (yes

or no)

	 	

	 

	 	

	Comments/working paper reference

	 	

	 

	 	

Supplementary Investment Guidelines

Symetra Life Insurance Company

Adopted by the Board of Directors on December 6, 2005, as last amended 1/20/2009

This supplement to the Company’s Statement of Investment Policy is to promote compliance with
statutory requirements for purchases or acquisitions of investments by life insurers domiciled in
the state of Washington and to incorporate other Company investment policies as may be approved
from time to time by the Company’s Board of Directors. Statutory restrictions or investment limits
are in addition to any restrictions or limitations already required under the Company’s general
investment policies.

Chart of Statutory Investment Limits:

The Chart is intended as a summary only of the laws currently in force and does not obviate the
Company’s obligation to comply fully with all applicable laws at the time of each transaction.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Security	 	Requirement/Restriction	 	RCW
	 	 	 	 	 	 	 
	General Qualifications: Interest
bearing or accruing or dividend or
income paying securities that are not
in default and not priced above market
value.	 	100% of securities purchased or acquired
must satisfy these requirements. (Limited
exceptions may apply.)	 	48.13.020
	 	 	 	 	 	 	 
	One Entity: Any combination of
investments in or loans upon the
security of the obligations, property,
and securities of any one person,
institution, or municipal corporation.	 	Limited to 4% of assets without prior
consent from OIC. (Limit does not apply to
general obligations of the U.S. government
or U.S. state governments.)	 	48.13.030(1) (See 48.13.273 for limits on
medium and lower grade obligations.)
	 	 	 	 	 	 	 
	Depository Institutions: Voting
securities of a depository institution
or any company which controls a
depository institution.	 	Limited to 5% of admitted assets without
prior consent from OIC.	 	48.13.030(2)
	 	 	 	 	 	 	 
	Public Obligations: Bonds or other
evidences of debt, not in default as
to principal or interest, that are
obligations issued, assumed or
guaranteed by the U.S. or by any U.S.
state or by any U.S. territory or
possession, or by the District of
Columbia or by any county, city, town,
village, municipality or district
therein or by any political
subdivision thereof or by any civil
division or public instrumentality of
one or more of the foregoing.	 	Funds may be invested in public obligations
payable (1) from taxes levied or required
to be levied upon all taxable property or
all taxable income within the jurisdiction
of such governmental unit or, (2) from
adequate special revenues, but not
including any obligation payable solely out
of special assessments on properties
benefited by local improvements unless
adequate security is evidenced.	 	48.13.040
	 	 	 	 	 	 	 
	Corporate Obligations: Obligations
issued, assumed, or guaranteed by any
solvent institution created or
existing under the laws of the U.S. or
of any state, district or territory
thereof, and are qualified under any
of the following:
 
(1) Obligations which are secured by
adequate collateral security and bear
fixed interest.
(2) Fixed interest bearing obligations.
(3) Adjustment, income or other
contingent interest obligations.	 	Section not applicable to mortgage related
investments authorized under RCW 48.13.110.
In determining the adequacy of collateral
security, not more than 1/3 of the total
value of such required collateral shall
consist of stock other than stock meeting
the requirements of RCW 48.13.080
(preferred or guaranteed stocks).
Eligible corporate obligations are subject
to issuer earnings requirements under RCW
48.13.050(1), (2) or (3)	 	48.13.050
See limits under 48.13.273, for medium
and lower grade obligations.
See 48.13.060 and .070 for definition of
“net earnings” and application of net
earnings test on securities of
merged/reorganized institutions.
	 	 	 	 	 	 	 
	Preferred or Guaranteed Stocks:
Qualified preferred or guaranteed
stocks or shares (other than common
stock) of solvent U.S. institutions.
 
Stocks or shares are qualified if they
meet the requirements of RCW
48.13.080(1)(a) for preferred stocks,
or (b) for guaranteed stocks. In
addition, as of the date of
acquisition, all of the prior
obligations and prior preferred stocks
of the institution must be eligible
investments.	 	Limited to 10% of assets.
Institutions must satisfy net earnings
requirements for preferred stock and RCW
48.13.050 for guaranteed stock.
Subject to limitations of RCW 48.13.030
(single issuer), investment in preferred
stock with voting rights plus common stock
in same issuer (other than investment in
certain subsidiaries of the insurer) is
limited to 15% of issuer’s outstanding
shares having voting rights.	 	48.13.080
	 	 	 	 	 	 	 
	Trustees’ or Receivers’ Obligations: Certificates, notes or
other obligations issued by trustees or receivers of U.S.
institutions which, or the assets of which, are court
administered and which are adequately secured as to principal
and interest.	 	Limited to 2% of assets.
	 	 	48.13.090	 
	 	 	 
	 	 	 	 
	Equipment Trust Certificates: Equipment trust obligations or
certificates which are adequately secured, or in other
adequately secured instruments evidencing an interest in
transportation equipment wholly or in part within the U.S. and
the right to receive determined portions of rental, purchase or
other fixed obligatory payments for the use or purchase of such
transportation equipment.	 	Limited to 10% of assets.
	 	 	48.13.100	 
	 	 	 
	 	 	 	 
	Mortgages, Deeds of Trust, Mortgage Bonds, Notes, Contracts:
(1)(a) Bonds or evidences of debt which are secured by first
mortgages or deeds of trust on improved unencumbered real
property located in the U.S.; (1)(b) chattel mortgages in
connection therewith; (1)(c) the equity of the seller of any
such property in the contract for a deed, covering the entire
balance due on a bona fide sale of such property. (2) Money
mortgages or like securities received upon the sale or exchange
of real property acquired pursuant to RCW 48.13.160. (3) Bonds
or notes secured by mortgage or trust deed guaranteed or
insured by the FHA. (4) Bonds or notes secured by mortgage or
trust deed guaranteed or insured as to principal in whole or in
part by the VA. (5) Evidences of debt secured by first
mortgages or deeds of trust upon leasehold estates, except
agricultural leaseholds executed pursuant to RCW 79.11.010. (6)
Evidences of debt secured by first mortgages or deeds of trust
upon agricultural leasehold estates executed pursuant to RCW
79.11.010.	 	(1)(b) Chattel mortgages are subject to
requirements of RCW 48.13.150.
(1)(c) Seller’s equity in any one such
deed covering the balance due on sale of
such property is limited to the greater
of $10,000 or the amount permissible
under RCW 48.13.030.
 
(5) Leasehold estates must run for at
least 15 years beyond the maturity of
the loan as made or as extended, in
improved real property, be otherwise
unencumbered, and the mortgagee must be
entitled to be subrogated to all the
rights under the leasehold.
(6) Agricultural leasehold estates must
be otherwise unencumbered, and the
mortgagee must be entitled to be
subrogated to all the rights under the
leasehold.
Except for investments made under (3)
and (4) and guaranteed by FHA or VA,
investments are limited to 75% of the
fair value of the property as of the
date of investment (80% of market value
for certain loans secured by first
mortgages on single-family residential
buildings). RCW 48.13.120
Exceptions for certain securities
received on the sale or exchange of real
property acquired under RCW 48.13.160.

	 	48.13.110
See 48.13.125 for
limitation on
amortization of
loans on one-family
dwellings.
See 48.13.130 for
definition of
encumbrance.
See 48.13.140 for
appraisal of
property, insurance
requirements and
the limit on loans
upon the security
of any one parcel
of real property
(the greater of
$25,000 or the
amount permissible
under 48.13.030.
See 48.13.265 for
limits on
investments secured
by real estate.
	 	 	 
	 	 	 	 
	Real Property Owned – Home Office Building: (1) insurer home
and branch office buildings; (2) real property acquired in
satisfaction or on account of loans, mortgages etc. previously
owing to the insurer in the course of its business; (3) real
property (a) required for convenient transaction of
business;(b) acquired by gift or devise; (c) acquired in
exchange for real property owned by insurer; (d) acquired
through a lawful merger or consolidation with it of another
insurer, (e) requisite or desirable for the protection or
enhancement of the value of other real property owned by the
insurer; (4) income-producing property.	 	(1) OIC approval required if investment
in home office etc. exceeds 10% of
assets.
(3) Investment in real property can
include repair, alteration, furnishing,
or improvement thereof and is subject to
the requirements of RCW 48.13.160(3).
See statute for complete description,
including when OIC approval may be
required.
(4) Investment in income producing
property is subject to the requirements
of RCW 48.13.160(4). See statute for
complete description with respect to
insurer asset size, capital and surplus,
and other conditions for investment that
must be met.
	 	 	48.13.160	 
	 	 	 
	 	 	 	 
	Disposal of Real Property — Time Limit:
 
Real property acquired by an insurer pursuant to loans,
mortgages, liens, judgments, or other debts, or under RCW
48.13.160(3)(a);(b), (c), (d), and (e).	 	Property acquired under RCW
48.13.160(3)(a) must be disposed of
within 5 years of ceasing to be of use
in the transaction of business.
Property acquired pursuant to loans,
mortgages, liens, judgments, or other
debts, or under RCW 48.13.160(3)(b),
(c), (d), and (e) must be disposed of
within 5 years of acquisition, unless
OIC approves a longer time.
	 	 	48.13.170	 
	 	 	 
	 	 	 	 
	Foreign Securities: Obligations of foreign governments
including provinces, counties, municipalities, or similar
entities, and obligations and securities of foreign
corporations, which have not been in default during the five
years next preceding date of acquisition, and if the foreign
jurisdiction has a sovereign debt rating of SVO 1.	 	Limited to 10% of assets.
Investment made in any one foreign
country is limited to 5% of assets.
	 	 	48.13.180	 
	 	 	 
	 	 	 	 
	Policy Loans: Loans to policyholders upon the pledge of the
policy as collateral.	 	Amount of respective loan cannot exceed
the legal reserve maintained on the
policy.
	 	 	48.13.190	 
	 	 	 
	 	 	 	 
	Savings and Share Accounts: Share or savings accounts of
savings and loan associations or savings accounts of banks.	 	Amount deposited in any one institution
is limited to amount insured by FSLIC or
FDIC.
	 	 	48.13.200	 
	 	 	 
	 	 	 	 
	Insurance Stocks: Stocks of U.S. domiciled insurers that also
meet the qualifications for stocks under RCW 48.13.220.	 	Limited to the lesser of 5% of assets or
25% of surplus over its capital stock
and other liabilities. Unless a
subsidiary, investment is limited to 5%
of the voting stock of any one insurer
and RCW 48.13.030.

	 	48.13.210
Note: Limits do not
apply to OIC
approved mergers
and stock dividends
on shares already
owned.
	 	 	 
	 	 	 	 
	Limitation on Insurer Loans or Investments (Investment in
Non-Insurer Subsidiaries): Common stock, preferred stock, debt
obligations, and other securities of one or more subsidiaries
as defined in RCW 48.31B.005.	 	Limited to the lesser of 10% of assets,
or 50% of its surplus as regards
policyholders.

	 	48.13.218
Note: Subsidiaries
that are insurers,
healthcare service
providers and HMOs
are excluded.
	 	 	 
	 	 	 	 
	Common Stocks: Common shares of stock in solvent U.S.
corporations that qualify as a “sound investment.”	 	Must first satisfy requirements of RCW
48.13.260 for investment of capital and
reserves.
Limited to 50% of surplus over the
minimum required surplus.
Subject to limitations of RCW 48.13.030
(single issuer), investment is limited
to 10% of the outstanding common stock
of same issuer (exception for stock of
certain subsidiaries of the insurer).

	 	48.13.220
Note: 90 days
notice to OIC is
required prior to
acquisition of a
majority of the
total outstanding
common shares of
any corporation.
	 	 	 
	 	 	 	 
	Collateral Loans: Loans upon the pledge of securities or
evidences of debt eligible for investment.	 	Limited to 90% of the market value of
such collateral pledged, except that
loans upon pledges of U.S. government
bonds may be equal to the market value
of the bonds pledged, subject to the
maximums under RCW 48.13.030.
	 	 	48.13.230	 
	 	 	 
	 	 	 	 
	Miscellaneous Investments: Loans or investments not otherwise
eligible for investment and not specifically prohibited by RCW
48.13.270 and not described in RCW 48.12.020 (non-allowable
assets).	 	Limited to the lesser of 10% of assets
or 50% of surplus over capital and other
liabilities.

	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	Special Consent Investments:
 
Investments not otherwise eligible, but still qualified under
RCW 48.13.020 (general qualifications) and for which advance
approval from the OIC is obtained.	 	The approval from the OIC will specify
whether the investment may be credited
to required minimum capital or surplus
investments, or to investments of
reserves.
	 	 	48.13.250	 
	 	 	 
	 	 	 	 
	Required Investments for Capital and Reserves:
 
for Capital: Cash or investments eligible under RCW 48.13.040
(public obligations), and mortgage loans on real property
located within this state, pursuant to RCW 48.13.110.
 
for Reserves: Cash or premiums in course of collection or
investments under RCW 48.13:
 
..040 (public obligations),
 
..050 (corporate obligations),
 
..080 (preferred or guaranteed stocks), .090 (trustees’ or
receivers’ obligations),
 
..100 (equipment trust certificates),
 
..110 (mortgages, loans and contracts),
 
..150 (auxiliary chattel mortgages),
 
..160 (real property home office bldg. etc.),
 
..180 (foreign securities),
 
..190 (policy loans),
 
..200 (savings and share accounts),
 
..220 (common stocks),
 
..230 (collateral loans),
 
..250 (special consent investments).	 	Not less than 100% of the investments
required for capital and reserves.
	 	 	48.13.260	 
	 	 	 
	 	 	 	 
	Investments Secured by Real Estate – Amount Restricted: real
estate, real estate contracts, and notes, bonds and other
evidences of debt secured by mortgage on real estate as
described in RCW 48.13.110 and .160.	 	Limited to 65% of assets-all investments
in mortgage-backed securities qualifying
under the secondary mortgage market
enhancement act of 1984 are included in
determining if an insurer has exceeded
the 65% limit.
	 	 	48.13.265	 
	 	 	 
	 	 	 	 
	Acquisition of Medium and Lower Grade Obligations: Medium
obligations are rated 3 by the NAIC’s securities valuation
office. Lower grade obligations are rated 4, 5 or 6 by the
NAIC’s securities valuation office.	 	Investment in medium and lower grade
obligations is limited to 20% of
admitted assets. (Limited to 1% in
obligations issued, guaranteed, or
insured by one institution.)
Investment in lower grade obligations is
limited to 10% of admitted assets.
(Limited to 0.5% in obligations issued,
guaranteed, or insured by 1
institution.)
Investment in lower grade obligations
rated 5 or 6 is limited to 3% of
admitted assets.
Investment in lower grade obligations
rated 6 is limited to 1% of admitted
assets.

	 	48.13.273
Note: If insurer
intends to invest
more than 2% of
admitted assets in
medium and lower
grade obligations,
the BOD must
approve a written
plan for making
those investments.
	 	 	 
	 	 	 	 
	Obligations Rated by the Securities Valuation Office:
Obligations rated 1 or 2 by the NAIC’s securities valuation
office.	 	Investment subject to the limitations
under RCW 48.13.030 (single issuer).
	 	 	48.13.275	 
	 	 	 
	 	 	 	 
	Derivative Transactions:
 
Options, warrants used in hedging transactions and not attached
to another financial instrument, caps, floors, collars, swaps,
forwards, futures, and any other agreements, options, or
instruments substantially similar thereto or any series or
combination thereof and any agreements, options, or instruments
permitted under rules adopted by the OIC.
Income generation transactions:
(1) Sales of covered call options on noncallable fixed income
securities, callable fixed income securities; (2) Sales of
covered call options on equity securities, (3) Sales of covered
puts on investments that the insurer is permitted to acquire
under Chapter 13, (4) Sales of covered caps or floors.	 	Aggregate statement value (“ASV”) of
options, caps, floors, and warrants not
attached to a financial instrument
purchased and used in hedging
transactions is limited to 7.5% of
admitted assets. (ASV of options, caps,
and floors written in hedging
transactions is limited to 3% of
admitted assets.) The aggregate
potential exposure of collars, swaps,
forwards, and futures used in hedging
transactions is limited to 6.5% of
admitted assets.
For income generation transactions, the
ASV of fixed income assets subject to
call or that generate cash flows for
payments under the caps or floors, plus
the face value of fixed income
securities underlying a derivative
instrument subject to call, plus the
amount of the purchase obligations under
the puts, is limited to 10% of admitted
assets.
(1) Permitted if the option expires by
its terms prior to the end of the
noncallable period, or derivative
instruments based on fixed income
securities.
(2) Permitted if the insurer holds or
can immediately acquire through the
exercise of options, warrants, or
conversion rights already owned, the
equity securities subject to call during

	 	48.13.285
Note: Permitted
only to engage in
hedging
transactions and
certain income
generation
transactions, not
for speculation.
 
Insurer must be
able to demonstrate
to the OIC the
intended hedging
characteristics and
the ongoing
effectiveness of
the derivative
transaction(s)
through cash flow
testing or other
appropriate
analysis.
	 	 	 	 	th	 	e complete term of the
	 	call option	 	 	 	 
	 	 	 	 	 	 	 	 	sold.
(3) Permitted if the i
	 	nsurer has	 	 	 	 
	 	 	 	 	 	 	 	 	escrowed, or entered i
	 	nto a custodian	 	 	 	 
	 	 	 	 	 	 	 	 	agreement segregating,
	 	cash or cash	 	 	 	 
	 	 	 	 	 	 	 	 	equivalents with a mar
	 	ket value equal to	 	 	 	 
	 	 	 	 	 	 	 	 	the amount of its purc
	 	hase obligations	 	 	 	 
	 	 	 	 	 	 	 	 	under the put during t
	 	he complete term	 	 	 	 
	 	 	 	 	 	 	 	 	of the put option sold
	 	 	.	 	 	 	 	 
	 	 	 	 	 	 	 	 	(4) Permitted if the i
	 	nsurer holds the	 	 	 	 
	 	 	 	 	 	 	 	 	investments generating
	 	the cash flow to	 	 	 	 
	 	 	 	 	 	 	 	 	make the required paym
	 	ents under the	 	 	 	 
	 	 	 	 	 	 	 	 	caps or floors during
	 	the complete term	 	 	 	 
	 	 	 	 	 	 	 	 	that the cap or floor
	 	is outstanding.	 	 	 	 
	 	 	 
	 	 	 	 
	Prohibited Investments:
 
(1) Issued shares of its own capital stock.
(2) Securities issued by any corporation if a majority of its stock having voting power is owned directly
or indirectly by or for the benefit of any one or more of the insurer’s officers and directors.
(3) Any investment or loan ineligible under the provisions of RCW 48.13.030 (single issuer or depository
institution).
 
(4) Securities issued by any insolvent corporation.
(5) Obligations contrary to the provisions of RCW 48.13.273 (medium and lower grade obligations).
 
(6) Any investment or security found by the OIC to be designed to evade prohibition of the Insurance Code.	 	 	48.13.270	 
	Securities Underwriting, Agreements to Withhold or Repurchase – Prohibited:
 
No insurer shall:
(1) participate in the underwriting of the marketing of securities in advance of their issuance or enter
into any transaction for such underwriting for the account of such insurer jointly with any other person;
or
(2) enter into any agreement to withhold from sale any of its property, or to repurchase any property sold
by it.	 	 	48.13.280	 
	Disposal of Ineligible Property or Securities:
 
(1) Any ineligible personal property or securities acquired by an insurer may be required to be disposed of
within the time not less than six months specified by order of the commissioner, unless before that time it
attains the standard of eligibility, if retention of such property or securities would be contrary to the
policyholders or public interest in that it tends to substantially lessen competition in the insurance
business or threatens impairment of the financial condition of the insurer.
(2) Any personal property or securities acquired by an insurer contrary to RCW 48.13.270 shall be disposed
of forthwith or within any period specified by order of the commissioner.
 
(3) Any property or securities ineligible only because of being excess of the amount permitted under
Chapter 13 to be invested in the category to which it belongs shall be ineligible only to the extent of
such excess.	 	 	48.13.290	 
	 	 	 	 	 
	Authorization of Investments:
 
No investment, loan, sale or exchange thereof shall, except as to the policy loans of a life insurer, be
made unless authorized or approved by the insurer’s board of directors or by a committee charged by the
board of directors or the bylaws with the duty of making such investment, loan, sale or exchange. The
minutes of any such committee shall be recorded and reports thereof shall be submitted to the board of
directors for approval or disapproval.	 	 	48.13.340	 
	 	 	 	 	 
	Record of Investments:
 
A written record in permanent form showing the authorization of each investment or loan shall be made and
signed by an officer of the insurer or by the chair of such committee authorizing the investment or loan.
Records shall contain:
(a) In the case of loans: the name of the borrower; the location and legal description of the property; a
physical description, and the appraised value of the security; the amount of the loan, rate of interest and
terms of repayment.
(b) In the case of securities: the name of the obligor; a description of the security and the record of
earnings; the amount invested, the rate of interest or dividend, the maturity and yield based upon the
purchase price.
(c) In the case of real estate: the location and legal description of the property; a physical description
and the appraised value; the purchase price and terms.
(d) In the case of all investments:
(i) the amount of expenses and commissions if any incurred on account of any investment or loan and by
whom and to whom payable if not covered by contracts with mortgage loan representatives or correspondents
which are part of the insurer’s records;
(ii) the name of any officer or director of the insurer having any direct, indirect, or contingent
interest in the securities or loan representing the investment, or in the assets of the person in whose
behalf the investment or loan is made, and the nature of such interest.	 	 	48.13.350	 
	 	 	 	 	 

Policy for Investment in Affiliates:

The Company will not invest in affiliates to the extent that such investment would be reportable
under the Insurer Holding Company Act or the Disclosure of Material Transactions Model Law, or to
the extent that such investment might, in the opinion of management, materially affect the overall
liquidity of the Company’s assets.

Approval Procedures for Mortgage Loans:

Subject to any statutory restrictions, any two members of the Mortgage Loan Committee may approve
mortgage loans less than or equal to $10 million.

Mortgage loans greater than $10 million and less than or equal to $20 million require the approval
of all Committee members.

Loans in excess of $20 million must be approved by the Company’s shareholder (in addition to the
general requirement of Board approval for all investments).

1 FASB statement No. 133 “Accounting for
Derivative Instruments and Hedging Activities.”

2 Based on the NAIC’s Derivative Instruments
Model Regulation and Statements of Statutory Accounting Principals (“SSAPs”).

3 These definitions are based in whole or in
part on definitions found in Washington state insurance laws as may be amended
from time to time.

4

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