Document:

Exhibit 10.30

 

[                   ]
2004

 

 

TRANSITIONAL SERVICES AGREEMENT

 

between

 

FINANCIAL INSURANCE GROUP SERVICES LIMITED

 

and

 

GE LIFE SERVICES LIMITED

 

 

WEIL,  GOTSHAL &  MANGES

 

One
South Place   London   EC2M 2WG

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

 

www.weil.com

 

 

TABLE
OF CONTENTS

 

	
  1

  	
  INTERPRETATION

  	
   

  
	
  2

  	
  THE SERVICES

  	
   

  
	
  3

  	
  CONVERSION
  SERVICES

  	
   

  
	
  4

  	
  OTHER
  ARRANGEMENTS/ADDITIONAL AGREEMENTS/CONSENTS

  	
   

  
	
  5

  	
  THE PROVIDER’S
  RESPONSIBILITIES

  	
   

  
	
  6

  	
  CHARGES

  	
   

  
	
  7

  	
  TERMS OF
  PAYMENT

  	
   

  
	
  8

  	
  COMPLIANCE
  WITH LAWS AND STANDARD FOR SERVICES

  	
   

  
	
  9

  	
  WARRANTIES

  	
   

  
	
  10

  	
  CONTRAT DE GROUPEMENT DE FAIT

  	
   

  
	
  11

  	
  RECORDS AND
  AUDIT

  	
   

  
	
  12

  	
  INTELLECTUAL
  PROPERTY

  	
   

  
	
  13

  	
  LIMITATION
  OF LIABILITY AND INDEMNITIES

  	
   

  
	
  14

  	
  CONDUCT OF
  CLAIMS

  	
   

  
	
  15

  	
  ASSIGNMENT
  AND SUB-CONTRACTING

  	
   

  
	
  16

  	
  CONFIDENTIALITY

  	
   

  
	
  17

  	
  TERMINATION

  	
   

  
	
  18

  	
  THE PROVIDER’S OBLIGATIONS
  ON TERMINATION

  	
   

  
	
  19

  	
  SURVIVAL OF OBLIGATIONS ON
  TERMINATION

  	
   

  
	
  20

  	
  FORCE
  MAJEURE/BUSINESS CONTINUITY

  	
   

  
	
  21

  	
  INCONSISTENCY/PREVAILING
  AGREEMENT

  	
   

  
	
  22

  	
  MASTER
  AGREEMENT

  	
   

  
	
  23

  	
  REGULATORY APPROVAL
  AND COMPLIANCE

  	
   

  
	
  24

  	
  SEVERABILITY

  	
   

  
	
  25

  	
  APPLICABLE LAW AND DISPUTE
  RESOLUTION

  	
   

  
	
  26

  	
  DATA PROTECTION

  	
   

  
	
  27

  	
  FURTHER
  ASSURANCE

  	
   

  
	
  28

  	
  WAIVER OF
  REMEDIES

  	
   

  
	
  29

  	
  NOTICES

  	
   

  
	
  30

  	
  NO PARTNERSHIP

  	
   

  
	
  31

  	
  ENTIRE
  AGREEMENT

  	
   

  
	
  32

  	
  RIGHTS
  OF THIRD PARTIES

  	
   

  
	
  33

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1 SERVICES

  	
   

  

 

 

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

 

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

 

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

 

WHEREAS:

 

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

 

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

 

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

 

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

 

IT
IS AGREED as follows:

 

1              INTERPRETATION

 

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

 

1

 

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

 

“After-Tax Basis” means that, in determining
the amount of the payment necessary to indemnify any party against, or
reimburse any party for, liabilities, the amount of such liabilities will be
determined net of any reduction in tax derived by the indemnified party as the
result of sustaining or paying such liabilities, and the amount of such
indemnification payment will be increased (i.e., “grossed up”) by the amount
necessary to satisfy any income or franchise tax liabilities incurred by the
indemnified party as a result of its receipt of, or right to receive, such
indemnification payment (as so increased), so that the indemnified party is put
in the same net after-tax economic position as if it had not incurred such
liabilities, in each case without taking into account any impact on the tax
basis that an indemnified party has in its assets;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

 “FIGSL Group” means (i) FIGSL, CFI
Administrators Limited, CFI Pension Trustees Limited, Ennington Properties
Limited, FIG Ireland Limited, Financial Insurance Guernsey PCC Limited,
Financial New Life Company Limited, GEFA UK Finance Limited, GEFA UK Holdings
Limited, Assocred S.A., RD Plus S.A. and UK Group Holding Company Limited, (ii)
with effect from the UK Transfer Date, Financial Insurance Company Limited,
Consolidated Insurance Group Limited, GE Financial Assurance, Compania de
Seguros y Reaseguros de Vida S.A. and GE Financial Insurance, Compania de
Seguros y Reaseguros S.A., (iii) with effect from the date (if ever) that all
the shares in FACL are transferred to GEFA UK Holdings Limited, FACL, and (iv)
any other company that the parties shall agree from time to time shall be
included within this definition;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

“Service
Charges” means in relation to any Services, the charges to be paid
by the relevant Recipient to the relevant Provider pursuant to Clause 6.1 in
respect of the Services provided by the relevant Provider to the relevant
Recipient and its Group.  The charges
for each Service or the basis for calculation thereof are set out opposite that
Service in column 2 of the relevant Part of Schedule 1;

 

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

 

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

 

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

 

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

 

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

 

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

 

“Term”
means the term of this Agreement;

 

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

 

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

 

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

 

“Trigger
Date” means the first date after which GE no longer beneficially
owns more than fifty percent (50%) of the outstanding common stock of Genworth
(excluding for

 

5

 

such purposes common stock of Genworth beneficially owned by GE but not
for its own account, including (in such exclusion) beneficial ownership which
arises by virtue of some entity that is an Affiliate of GE being a sponsor of
or advisor to of a mutual or similar fund that beneficially owns common stock
of Genworth. For the avoidance of doubt, a member of the Genworth group is not
an Affiliate of GE);

 

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

 

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

 

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

 

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

 

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

 

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

 

1.5          The Schedules form part of this Agreement.

 

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

 

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

 

2              THE SERVICES

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

2.5          The Services shall include:

 

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

 

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

 

7

 

within, the
Services or are otherwise necessary for the Provider to provide, or the
Recipient or the Recipient Group Companies to receive, the Services.

 

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

 

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

 

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

 

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

 

2.10        The following provisions shall apply to the
Services:

 

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

 

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

 

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

 

8

 

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

 

3              CONVERSION
SERVICES

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

3.3.1             GEIH Services Conversion Costs

 

Following the termination of a GEIH Service, the
GEIH Group shall either reimburse FIGSL for all actual Conversion Costs
incurred by FIGSL in respect of such GEIH Service or, after consultation with
FIGSL, pay such Conversion Costs directly on an as incurred basis, in either case regardless of whether FIGSL replaces the GEIH Service
with the same application, system, vendor or other means of effecting the GEIH
Service
provided however that the GEIH Group’s payment and reimbursement obligations
under this Clause 3.3.1 and GE’s payment and reimbursement obligations under
Section 2.01(f) of the Global Transition Services Agreement shall not in the
aggregate exceed the Total Conversion Cost Amount.  For the

 

10

 

purposes of this Clause, the “Total Conversion Cost Amount”
means US$29.6 million, which amount represents the parties’
agreed-upon good faith estimate of (i) the anticipated Conversion Costs with
respect to the transition of the GEIH Services pursuant to the terms of this
Agreement and (ii) the anticipated, non-recurring, out-of-pocket conversion
costs with respect to the transition of the GE Services (as such term is
defined in the Global Transition Services Agreement) pursuant to the terms of
the Global Transition Services Agreement.

 

3.3.2             FIGSL Services Conversion Costs

 

The GEIH Group shall be solely responsible without limitation for
paying any Conversion Costs in respect of the FIGSL Services and any such
Conversion Costs or related costs shall not be included in the Total Conversion
Cost Amount.

 

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

 

4              OTHER ARRANGEMENTS/ADDITIONAL AGREEMENTS/CONSENTS

 

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

 

11

 

vendor contract
or similar agreement directly with the third party provider that is a party to
the FIGSL Vendor Agreement.

 

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

 

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

 

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

 

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

 

12

 

Services Agreement. 
The GEIH Group shall be solely responsible for paying any costs or fees
in connection with any Consents with respect to the FIGSL Services and any such
costs or fees shall not be included in the Total Consents Cost Amount.

 

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

 

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

 

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

 

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

 

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

 

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

 

4.7.5             FIGSL agrees to hold the leases or sub-leases which are to be
assigned to GELS for the use and benefit of GELS and GELS shall pay or
reimburse FIGSL for all amounts paid or incurred in connection with such leases
and sub-leases. In addition, FIGSL shall, insofar as reasonably possible and to
the extent permitted by applicable law, treat such leases and sub-leases in

 

13

 

the ordinary course of business in
accordance with past practice and take such other actions as may be reasonably
requested by GELS in order to place GELS in the same position as if the
relevant leases and sub-leases had been assigned as at the Commencement Date
and so that all the benefits and burdens relating to such leases and
sub-leases, including possession, use, risk of loss, potential for gain, and
dominion, control and command over such leases and sub-leases, is to inure to
GELS from and after the Commencement Date.

 

4.7.6             FIGSL shall not be obligated to expend any money in connection with
any leases or sub-leases listed on Part C to Schedule 1 which are to be
retained by it pending their assignment to GELS unless the necessary funds are
advanced (or otherwise made available) by GELS, other than reasonable
out-of-pocket expenses, attorneys’ fees and recording or similar fees, all of
which shall be promptly reimbursed by GELS.

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

4.11.2          as required by law.

 

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

 

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

 

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

 

15

 

4.13.2          FACL is reregistered under a different name; and,

 

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

 

5              THE PROVIDER’S
RESPONSIBILITIES

 

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

 

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

 

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

 

6              CHARGES

 

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

 

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

 

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

 

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

 

7              TERMS OF PAYMENT

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

8              COMPLIANCE WITH
LAWS AND STANDARD FOR
SERVICES

 

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

 

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

 

17

 

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

 

9              WARRANTIES

 

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

 

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

 

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

 

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

 

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

 

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

 

9.4          Each Provider further warrants that:

 

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

 

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

 

10           CONTRAT
DE GROUPEMENT DE FAIT

 

In view of the tax benefits enjoyed by RD Plus S.A.,
Vie Plus S.A. and Assocred S.A. (all such companies being either a FIGSL Group
Company or a GEIH Group Company, and being together the “Groupement de Fait Parties”)
pursuant to the Contrat de Groupement de Fait and their wish to preserve such
tax benefits and for equivalent tax benefits to be obtained in respect of the
Services to be provided as

 

18

 

between the Groupement de Fait Parties pursuant to
this Agreement, the parties hereto agree that the provisions of the Contrat de
Groupement de Fait shall continue to apply so far as is possible as between the
Groupement de Fait Parties to the extent necessary to preserve the tax benefits
currently enjoyed by the Groupement de Fait Parties and to obtain equivalent
tax benefits in respect of Services provided as between the Groupement de Fait
Parties pursuant to this Agreement, provided however that in the event of any
inconsistency between any of the provisions of this Agreement and the Contrat
de Groupement de Fait, the provisions of this Agreement shall prevail as
between the parties and the Groupement de Fait parties in respect of the
matters dealt with hereunder.

 

11           RECORDS AND AUDIT

 

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

 

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

 

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

 

11.4        If as a result of an audit carried out
pursuant to this Clause 11 a Recipient is unable to verify Service Charges
previously demanded by its Provider and paid by that Recipient, the Recipient
shall have the right to receive a refund of or proportionate reduction in the
Service Charges for any such amount that cannot be verified.  In the

 

19

 

event that a
Recipient is entitled to such a refund or reduction following an audit carried
out pursuant to this Clause 11, that Recipient may request, and the Provider
shall be obliged to pay, a reasonable proportion of the cost of carrying out
the audit, bearing in mind the amount of refund or reduction to which the
Recipient is entitled.

 

12           INTELLECTUAL
PROPERTY

 

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

 

12.2        Each Provider represents and warrants that:

 

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

 

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

 

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

 

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

 

13           LIMITATION OF
LIABILITY AND INDEMNITIES

 

13.1        Save as provided in Clauses 13.2 and 13.4,
and subject to Clause 13.8, no Provider or its Affiliates or any of their
respective directors, officers or employees or any of the heirs, executors,
successors and or assigns of any of the foregoing (each, a “Provider
Indemnified Party”) shall have any liability in contract, tort or
otherwise to the Recipient or its Affiliates or Representatives for or in
connection with any Services rendered or to be rendered by any Provider
Indemnified Party pursuant to this Agreement, (ii) the transactions
contemplated by this Agreement or (iii) any Provider Indemnified Party’s
actions or inactions in connection with any such Services or

 

20

 

transactions. For
the avoidance of doubt this Clause shall not preclude a Recipient from
exercising any remedies expressly provided elsewhere in this Agreement.

 

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

 

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

 

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

 

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

 

provided that, subject to Clause 13.8, (a) the
aggregate liability of FIGSL as a Provider pursuant to this Clause shall in no
event exceed £5 million and (b) the aggregate liability of GELS as a Provider
pursuant to this Clause shall not exceed £5 million.

 

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

 

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

 

21

 

13.5        FIGSL shall, and shall cause its Affiliates
to, indemnify defend and hold harmless on an After-Tax Basis GELS and each of
its respective directors, officers and employees, and each of the heirs,
executors, successors and assigns of any of the foregoing (collectively, the “GEIH
Indemnified Parties”), from and against any and all liabilities of the
GELS Indemnified Parties relating to, arising out of or resulting from FIGSL or
any of its Affiliates purchasing goods or services, licensing rights to use
Intellectual Property or otherwise realizing benefits and rights under any GEIH
Vendor Agreements.

 

13.6        GELS shall, and shall cause its Affiliates
to, indemnify, defend and hold harmless on an After-Tax Basis FIGSL and each of
its respective directors, officers and employees, and each of the heirs,
executors, successors and assigns of any of the foregoing (collectively, the “FIGSL
Indemnified Parties”), from and against any and all liabilities of
the FIGSL Indemnified Parties relating to, arising out of or resulting from
GELS or any of its Affiliates purchasing goods or services, licensing rights to
use Intellectual Property or otherwise realizing benefits and rights under any
FIGSL Vendor Agreements.

 

13.7        Subject to Clause 13.8 but notwithstanding
any other provision contained in this Agreement, neither party shall be liable
to the other for any special, indirect, punitive, incidental or consequential
losses, damages or expenses of the other, including, without limitation, loss
of profits, arising from any claim relating to breach of this Agreement or
otherwise relating to any of the Services provided hereunder save that the
limitations contained in this Clause 13.5 shall not apply to:

 

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

 

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

 

13.7.3          damages awarded to a third party pursuant to
a third party claim for which FIGSL or any of its Affiliates is required to
indemnify, defend and hold harmless any GEIH Indemnified Party under Clause
13.5; or

 

13.7.4          damages awarded to a third party pursuant to
a third party claim for which GELS or any of its Affiliates is required to
indemnify, defend and hold harmless any FIGSL Indemnified Party under Clause
13.6.

 

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

 

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

 

13.8.2          fraud;

 

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

 

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

 

22

 

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

 

14           CONDUCT OF CLAIMS

 

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

 

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

 

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

 

14.3.1          the Indemnified Party shall provide to the
Indemnifying Party and its advisers reasonable access to its personnel and to
its premises, assets and documents and records in its possession or under its
control, and give the Indemnifying Party any information and assistance as it
shall reasonably request, and the Indemnifying Party may, at its cost, take
copies of such documents and records as it reasonably requires;

 

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

 

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

 

23

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14.7        Any liabilities for which an Indemnified
Party is entitled to indemnification or contribution under Clause 13 shall be
paid by the Indemnifying Party to the Indemnified Party as such liabilities are
incurred.  The indemnity and
contribution agreements contained in Clause 13 shall remain operative and in
full force and effect,

 

24

 

regardless of (i)
any investigation made by or on behalf of any Indemnified Party and (ii) any
termination of this Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

25

 

15           ASSIGNMENT AND SUB-CONTRACTING

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

26

 

Service Charges
for such Service to compensate the Provider for the increase in the cost of
providing such Service.

 

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

 

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

 

16           CONFIDENTIALITY

 

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

 

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

 

27

 

by any member of
the FIGSL Group in breach of this Clause, or (ii) FIGSL can demonstrate was or
became available to the FIGSL Group from a source other than the GEIH Group or
their Affiliates; provided however that the source of such information was not
known by the FIGSL Group to be bound by a confidentiality agreement with, or
other contractual, legal or fiduciary obligation of confidentiality to, the
GEIH Group or any member of the GEIH Group with respect to such information.

 

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

 

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

 

17           TERMINATION

 

17.1        Automatic
Termination

 

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

 

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

 

28

 

17.2        Failure
to Perform

 

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

 

17.3        By
Mutual Agreement

 

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

 

17.4        Insolvency

 

If at any time
during the Term a party:

 

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

 

17.4.2          makes a composition or arrangement with its
creditors; or

 

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

 

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

 

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

 

17.5        On Notice

 

17.5.1          Subject to Clause 17.5.2, a Recipient shall be entitled to terminate
this Agreement in respect of any or all of the Services provided to it at its
absolute discretion at any time by giving not less than sixty (60) days’ notice
of its intention to do so to the Provider (or such shorter period of time as is
agreed in writing by the parties). 
Subject to payment of the Service Charges payable under the Agreement
which are due to the Provider for the period up to the effective date of
termination, a Recipient shall have the right to require the relevant Provider
to cease provision of the Services during the sixty (60) day notice period and
to instruct its sub-contractors, if any, to do similarly.

 

29

 

17.5.2          Until the transfer of the Active FACL Bonds (as defined in the
Master Agreement) to an appropriate GE Affiliate in accordance with Section
2.10(b) of the Master Agreement, FIGSL shall not be entitled to terminate the
bond administration service to be provided to FACL (Schedule 1, Part A, Service
No. 4) in accordance with Clause 17.5.1 but will be entitled to terminate this
service in accordance with the provisions of Clause 17.2. For the avoidance of
doubt, following such transfer, FACL will be entitled to terminate such service
pursuant to Clause 17.5.1 above.

 

17.6        Force
Majeure Event of Longstanding Duration

 

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

 

17.7        Accrued
Rights

 

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

 

18           THE PROVIDER’S
OBLIGATIONS ON TERMINATION

 

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

 

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

 

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

 

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

 

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

 

30

 

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

 

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

 

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

 

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

 

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

 

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

 

19           SURVIVAL OF
OBLIGATIONS ON TERMINATION

 

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

 

	
  Clause 1

  	
  -

  	
  Interpretation

  
	
  Clause 4.7

  	
   

  	
  Leases

  
	
  Clause 8

  	
  -

  	
  Warranties

  
	
  Clause 12

  	
  -

  	
  Intellectual Property

  
	
  Clause 13

  	
  -

  	
  Limitation of Liability and Indemnities

  
	
  Clause 14

  	
   

  	
  Conduct of Claims

  
	
  Clause 16

  	
  -

  	
  Confidentiality

  
	
  Clause 18

  	
  -

  	
  The Provider’s Obligations on Termination

  
	
  Clause 25

  	
  -

  	
  Applicable Law and Dispute Resolution

  
	
  Clause 26

  	
  -

  	
  Data Protection

  
	
  Clause 27

  	
  -

  	
  Further Assurance

  
	
  Clause 29

  	
  -

  	
  Notices

  

 

20           FORCE
MAJEURE/BUSINESS CONTINUITY

 

20.1        Each party shall maintain and comply with a
reasonable disaster recovery, crisis management and business continuity plan
designed to help ensure that it can continue to provide the Services in
accordance with this Agreement in the event of a disaster or other significant
event that might otherwise impact its operations.  Each party shall ensure that any disaster recovery, crisis
management and business continuity plan shall comply with any relevant
regulatory requirements, whether of the FSA or any other regulator. Upon the
written request of a Recipient, a Provider shall (i) disclose to the Recipient
the Provider’s disaster recovery, crisis management and business

 

31

 

continuity plans
and procedures applicable to a Service and (ii) permit the Recipient to
participate in testing of such disaster recovery, crisis management and
business continuity plans and procedures, in each case so that the Recipient
may assess such plans and procedures and develop or modify its own such plans
and procedures in connection with the Services as the Recipient reasonably
deems necessary.

 

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

 

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

 

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

 

21           INCONSISTENCY/PREVAILING
AGREEMENT

 

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

 

22           MASTER AGREEMENT

 

The
parties hereby agree that notwithstanding the provisions of Section 2.4(a) of
the Master Agreement, any intercompany accounts payable or accounts receivable
outstanding between the parties’ Groups as at the Closing Date shall continue
to be outstanding following that date provided however that, subject to the
provisions of the European Tax Matters Agreement, the parties shall settle all
such intercompany accounts payable or accounts receivable within 60 days
following the Closing Date.

 

23           REGULATORY
APPROVAL AND COMPLIANCE

 

Each party
shall be responsible for its own compliance with any and all laws and
requirements of any regulator (whether in the UK or elsewhere) applicable to
its performance under this Agreement; provided, however, that each party shall
at the request of the other party and subject to reimbursement of out-of-pocket
expenses by

 

32

 

the requesting
party, cooperate and provide one another with all reasonably requested
assistance (including, without limitation, the execution of documents and the
provision of relevant information) required by the requesting party to ensure
compliance with all applicable laws and regulations or in connection with any
regulatory action, inquiry or examination.

 

24           SEVERABILITY

 

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

 

25           APPLICABLE LAW
AND DISPUTE RESOLUTION

 

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

 

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

 

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

 

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

 

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

 

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

 

33

 

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

 

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

 

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

 

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

 

26           DATA PROTECTION

 

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

 

27           FURTHER ASSURANCE

 

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

 

28           WAIVER OF REMEDIES

 

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

 

29           NOTICES

 

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

 

29.1.1          by hand;

 

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

 

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

 

Notices sent by registered post or first class post or recorded delivery
shall be deemed to be served three (3) working days following the day of
posting.  Notices sent by facsimile
transmission shall be deemed to be served on the day of transmission if

 

34

 

transmitted before 4:00 p.m. on a working day, but otherwise on the
next following working day.  In all
other cases, notices are deemed to be served on the day when they are actually
received.  All notices, invoices and
other communications served hereunder shall expressly refer to the Clause or
sub-Clause pursuant to which they are served.

 

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

 

30           NO PARTNERSHIP

 

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

 

31           ENTIRE AGREEMENT

 

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

 

32           RIGHTS OF THIRD
PARTIES

 

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

 

33           COUNTERPARTS

 

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

 

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

 

35

 

SCHEDULE 1

SERVICES

PART A – GEIH SERVICES

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  I.              Finance and Related Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.             Treasury Services –
  GECA

  

  The FIGSL Group will continue to have access and to use
  GEIH Group Treasury support (premium collections, claims payment,
  commissions), including GECB Treasury & Finance Services.

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or completion of the FIGSL Group’s transition.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.             Financial Systems
  Support (Europe)  

  
The GEIH Group will provide existing
  finance systems service support and administration as per the remit of the
  current Finance Systems group center of excellence.

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of Trigger Date + 6 months or the completion of the FIGSL Group’s transition.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.            Legal
  and Related Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.             Legal Support GECA

  
The FIGSL Group will use some legal
  support from the GEIH Group for Creditor Activity (customer support, new
  product elaboration, modification of existing contracts)

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or the completion of the FIGSL Group ‘s transition.

  

 

36

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  III.           IT
  – Misc Application, Infrastructure & Related Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.             Bond Administration  (Europe) 

  •      Administration services
  for the Active FACL Bonds and the Historic FACL Bonds (both as defined in the
  Master Agreement) as currently provided by GE Life which includes Policy
  Administration, Maturity Processing, Investment Management, Finance,
  Compliance and related Actuarial Services. 

  	
   

  	
  •      Actual costs, such costs
  to be equivalent to comparable third party administration provider costs as
  tested in the market from time to time

  	
   

  	
  •      In respect of the Active
  FACL Bonds, upon the transfer of the Active FACL Bonds pursuant to Section
  2.10(b) of the Master Agreement.  

   

  •      In respect of the Historic
  FACL Bonds, upon the UK Transfer Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      The GEIH Group will
  procure that GECIS will provide to the FIGSL Group such services that GECIS
  currently provides to FIGSL relating to Bond accounting reconciliation work.
  Such services shall include investment accounting services and other related
  services where relevant.

  	
   

  	
  •      Actual costs incurred on
  the basis currently agreed by GECIS and FIGSL under the GEIH/GECIS services
  Agreement dated 2000, as amended from time to time

  	
   

  	
   

  

 

37

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  5.             Archiving Services
  (Europe)  

  
Continued use of the Tottenham
  Warehouse facility using the retrieval and storage processes currently in
  place, based on the current allocation ratio of available space between the
  various units making use of the facility as at the date of this agreement.

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of one year from the Trigger Date or the termination of GELS’ lease on the
  Tottenham Warehouse facility in accordance with the lease termination
  provisions in force at the date of this agreement.

  

 

38

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  6.             Software/Licenses
  GECA  

  
The FIGSL Group will continue to have
  access and to use the GEIH Group software (Coreload 3, AS400/CFT, Sogemicro,
  Edinat, Edicheque, Smartforce, EFFSA, SAS), and phone services (conference
  call, mobile phone, telephone). The GEIH Group will provide to the FIGSL
  Group some support for IT functions.

  	
   

  	
  Actual
  costs, based on usage, via the allocation methodology developed for all GE
  components.

  	
   

  	
  The earlier
  of the Trigger Date +one year or completion of the FIGSL Group’s transition

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.             Hardware – GECA
  

  
The FIGSL Group will continue to have
  access and to use GEIH Group hardware (NT server, Cisco Router, Printers,
  PC’s/Laptops, AS400, PBX, Computer Room, DRP), and offices equipment (fax,
  copiers, printers, furniture).  The
  GEIH Group will provide to the company some support for IT functions.

  	
   

  	
  Actual
  costs, based on usage, via the allocation methodology developed for all GE
  components

  	
   

  	
  The earlier
  of the Trigger Date + one year or completion of the FIGSL Group’s transition

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.             Hitchin SQL System
  Access (Europe)  

  
The GEIH Group will provide the FIGSL
  Group with access to and use of the following SQL server systems
  (Archive_project, Project_Centaldb, BO_Repository, Cockpit, RIMS, ITR
  Tracking System, Complaints Tracking System) presently stored in Hitchin; the
  GEIH Group will transfer the server to the FIGSL Group upon termination of
  the service.

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or the completion of the FIGSL Group’s transition

  

 

39

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  IV.Investments

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.             Provision of
  Investment Operating system administration (Europe)

  
The GEIH Group will continue to
  provide the following services to the FIGSL Group  

   

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or Termination of the IMA + 6 months or completion of the
  FIGSL Group’s transition

  
	
  •      Administration of the
  Camra system  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      Enter all trades and
  corporate actions in to Camra (provided by GE Life)  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      Enter pricing data monthly
  into Camra (prices to be checked and validated by  

  
the FIGSL Group – GECIS and Risk
  manager)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      Maintain data integrity on
  all fields of Camra (but does not include Custodian vs. Camra
  reconciliations)  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      Produce pre-defined list
  of Camra/custodian/settlement reports on an as agreed basis and interface to
  Oracle file  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •      Provide information on a
  daily basis to the GEAM and/or the FIGSL Group data warehouse

  	
   

  	
   

  	
   

  	
   

  

 

40

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  10.           Asset Management –
  GECA  

  
The GEIH Group will provide to the
  company asset management support (short term adjustment, split of general
  fund, custodian transfer).

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or completion of the FIGSL Group’s transition

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V             Functions Other Than Above

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.           Postal &
  Stationery Services – GECA  

  
The FIGSL Group will continue to have
  access and to use GEIH Group stationery services (office & mail
  stationary, business cards) and postage services (mail stamp, mailroom
  service, mail messengers).

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or completion of the FIGSL Group’s transition

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.           Vehicle & Storage
  Services – GECA  

  
The FIGSL Group will continue to have
  access and to use GEIH Group (Vie Plus) storage services (archives) and car
  & vehicle services (car rent, parking).

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the Trigger Date or completion of the FIGSL Group’s transition

  

 

41

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  13.           Actuarial Services
  (Europe)  

  
The GEIH Group will provide the FIGSL
  Group with actuarial services for FACL as provided by the current appointed
  actuary for FACL

  	
   

  	
  Actual costs
  via the allocation methodology developed for all GE components.

  	
   

  	
  The earlier
  of the UK Transfer Date or the date upon which the current appointed actuary
  for FACL leaves GE employment unless otherwise agreed by the parties

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.           Services Provided By GE Capital International
  Services (“GECIS”) to FIGSL

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.           Provision
  of UK and International Accounting Services 

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group with UK and International Accounting
  services that GECIS currently provides to FIGSL including services relating
  to account reconciliation, investment accounting and impairment and
  miscellaneous activity.

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.           Provision of Other
  Accounting Services provided by GECIS to FIGSL  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such other accounting services that
  GECIS currently provides to FIGSL including services relating to cash and
  bank and travel activities, statutory reporting, Irish (Shannon) related
  activities and other FIGSL UK related activities.

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  

 

42

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  16.   Provision
  of General Ledger Administration Support 
  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to General Ledger administration support, such
  support to include maintenance, consolidation and submission of financials
  and RED ledger reconciliation..

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time..

  	
   

  	
  No later
  than 12 months after the Closing Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.           Provision of
  Accounting and General Support for the Group Reporting Manager.  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to accounting and general support for the FIGSL
  Group reporting manager.

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.   Provision
  of GECA Accounting Services  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to accounting services provided to the FIGSL
  Group’s French business. Such services shall

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time..

  	
   

  	
  No later
  than 12 months after the Closing Date.

  

 

43

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  include
  account reconciliation and accounting services.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.   Provision of FACL/CIGL Reconciliations  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to accounting reconciliation work in relation to
  FACL accounting and CIGL accounting. Such services shall include investment
  accounting services and other related services.

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.   Provision of Reserving Services  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to reserving services. Such services shall include
  analytical services in relation to claims reserving.

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.   Provision of Management Information Services  

  
The GEIH Group will procure that
  GECIS will provide to the FIGSL Group such services that GECIS currently
  provides to FIGSL relating to the provision of management information. Such
  services shall include the production of weekly, 

  	
   

  	
  Actual costs
  incurred on the basis currently agreed by GECIS and FIGSL under the
  GEIH/GECIS services Agreement dated 2000, as amended from time to time.

  	
   

  	
  No later
  than 12 months after the Closing Date.

  

 

44

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  monthly and/or quarterly management information reports and Profit
  Share Statements.

  	
   

  	
   

  	
   

  	
   

  

 

45

 

PART B – FIGSL
SERVICES

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  I               Finance and Related Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.             Treasury Services
  (Global)  

  
The FIGSL Group will continue to
  provide all required treasury services and functions that are performed today
  by the Treasury Center of Excellence to the GEIH Group.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The later of
  two years from the date hereof or completion of the GEIH Group transition but
  in no event later than three years from the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.             Financial Systems
  Support (Europe)  

  
The FIGSL Group will provide access
  to, use of, and system administration of applications provided by the FIGSL
  Group such as Oracle Financials, Oracle Discoverer, Oracle Financial
  Analyzer, and access to and use of Finance shared drives, Treasury, Tax and
  Investment systems on the FIGSL Group ‘s infrastructure. The FIGSL Group will
  also provide existing finance systems support and administration as per the
  remit of the current Finance Systems group center of excellence.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group immediately
  prior to the date hereof.

  	
   

  	
  The earlier
  of six months after the Trigger Date or completion of the GEIH Group
  transition but in no event later than three years from the date hereof.

  

 

46

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  3.             Actuarial
  Department – GECA  

  
The FIGSL Group will continue to
  provide statutory reports and accounting support for the GEIH Group
  concerning P&S activities.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of the Trigger Date or completion of the GEIH Group transition.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.             Actuarial
  Department – GECA  

  
The FIGSL Group will continue to
  provide technical and strategic support for the GEIH Group concerning P&S
  activities (Pricing, Product Dvpt, link with auditors, regulators).

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier of
  the Trigger Date or completion of the GEIH Group transition.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.             Financial
  Accounting (Europe)  

  
The FIGSL Group will continue to
  provide AP processing, fixed asset processing and administration, Stat/SAAP
  accounting and account reconciliation support.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Twelve
  months from the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.            Human
  Resources and Related Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.             Benefits (Europe)  

  
GEIH Group employees will continue to
  be able to participate in certain global benefits plans including the GE A
  and B Schemes in the UK.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Trigger Date
  (or up to six months later by mutual consent)

  

 

47

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  7.             HR Services (GECA)  

  
The FIGSL Group will continue to
  provide HR support to the GEIH Group (Vie Plus) subject to Oracle access of
  employees.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date

  	
   

  	
  The earlier
  of (i) 12 months from the French Scheme Transfer Date, (ii) 24 months from
  the Closing Date and (iii) 12 months from any decision to stop accepting new
  business into the P&S business.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.           IT – Misc Application, Infrastructure & Related
  Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.             Web Hosting
  (Europe)  

  
The FIGSL Group will provide the GEIH
  Group with access to and use of Infrastructure, Support and Consultancy
  Services, Servicing, Deployment of New Content, Project Management, Security,
  and Vendor Management support of applications resident in the Cell Shared
  Services environment.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  One year
  after the Trigger Date but in no event later than three years from the date
  hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.             Development
  Services (Europe)  

  
The FIGSL Group will continue to
  provide application development services to the GEIH Group, such as web
  services and intranet development and financial systems support.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group immediately
  prior to the date hereof.

  	
   

  	
  One year
  after the Trigger Date but in no event later than three years from the date
  hereof.

  

 

48

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  10.           Kingswood Server
  Processing (Europe) 

  

  The FIGSL Group will continue to support and provide access to and use of
  applications running on shared servers such as UKINT, GEGCFEU2, GEIH001,
  GEIH002 and GEIH003.  The FIGSL Group
  will continue to provide disaster services, including policy, contract and
  testing management, to the GEIH Group.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Second
  anniversary from the Trigger Date but in no event later than three years from
  the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.           Imaging Services
  (Europe)  

  
The FIGSL Group will continue to
  provide support services, access to and use of the ViewStar application and
  image repository.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  First
  anniversary from the Trigger Date but in no event later than three years from
  the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.           LAN Management
  (Europe)  

  
The FIGSL Group will continue to
  support and provide access to and use of the FIGSL Group’s Local Area
  Networks.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  First
  anniversary from the Trigger Date but in no event later than three years from
  the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.           DBA Infrastructure
  Services (Europe)  

  
The FIGSL Group will continue to
  provide infrastructure services, specifically DBA services, to the GEIH
  Group.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  October 1,
  2004

  

 

49

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  14.           ADS Infrastructure Services (Europe)  

  
The FIGSL Group will continue to
  provide infrastructure services, specifically ADS services, to the GEIH
  Group.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Second anniversary
  from Trigger Date but in no event later than three years from the date
  hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.           Enabling Systems
  Services (Europe)  

  
The FIGSL Group will continue to
  provide support under the following areas to the GEIH Group  

   

  •              OFA Support  

   

  •              Intranet Support  

   

  •              Oracle
  Financials Support

  	
   

  	
  Oracles
  Financials – 43% of identified FTE, Intranet – 30% of identified FTE.

  	
   

  	
  First
  anniversary from Trigger Date but in no event later than three years from the
  date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.           Planning and Control
  Team (PAC) (Europe)  

  
The FIGSL Group will continue to
  provide support and consultancy on IT services as presently provided by the
  GEFI Planning & Control.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  First
  anniversary from the Trigger Date but in no event later than three years from
  the date hereof.

  

 

50

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  17.           QAS Address Changes
  (Europe)  

  
The FIGSL Group will continue to
  provide access to and use of the QAS system hosted at Cell.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of one year after the Trigger Date or the completion of the GEIH Group
  transition but in no event later than three years from the date hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.           Web Change Control
  Application (Europe)  

  
The FIGSL Group will continue to
  provide the GEIH Group with access to its Web Change Control Application.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Six months
  after the Trigger Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.           IT Support GECA  

  
The FIGSL Group will continue to
  provide IT support to the GEIH Group (Vie Plus) concerning P&S activities
  (management, technical and strategic support for P&S activities, UK
  liaise, helpdesk, extel contact, OPUS extraction, account creation).

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of one year after the Trigger Date or the completion of the GEIH Group
  transition.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.           Camra License
  (Europe)  

  
The FIGSL Group will continue to provide
  to the GEIH Group access and support of its Camra system.

  	
   

  	
  Actual costs
  billed via the allocation methodology.

  	
   

  	
  The later of
  two years from the date hereof or completion of the GEIH Group transition but
  in no event later than three years from the date hereof.

  

 

51

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  21.           Vantage West Server
  Services (Europe)  

  
The FIGSL Group will continue to
  support and provide access to shared applications such as: ACE, Safeboot,
  GECCFI domain, Blackberry, MS Exchange Gateway.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of 12/31/2004 or transition of the IP Range

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.           Wide Area Network
  Management  

  
The FIGSL Group will continue to
  provide access into, and support, of the FIGSL Group’s existing network
  backbone between GE locations and the data centers in CSC and Interexxion.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of FIGSL Group’s transition of the IP Range or the completion of the GEIH
  Group’s transition but no later than Trigger Date plus one year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV            Legal, Compliance, Government Relations, and Public
  Relations Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.           General Internal
  Support (Europe).  

  
The FIGSL Group will provide legal
  support (including the provision of historic information) to help the GEIH
  Group effect the (1) transfer of any GEIH Group entities previously the
  responsibility of the FIGSL Group ‘s European legal team and (2) liquidation
  of any such GEIH Group entities.

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  Earlier of 2
  years from the Date hereof and the date transfer and liquidations completed.

  

 

52

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  24.           Legal Support GECA  

  
The FIGSL Group will provide legal
  support to the GEIH Group (management, technical and strategic support for
  P&S activities, UK liaise)

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  The earlier
  of (i) 12 months from the French Scheme Transfer Date,  (ii) 24 months from the Closing Date  and (iii) 
  12 months from any decision to cease accepting new business into the
  P&S business.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.           Business Review (GECA
  Pensions & Savings)  

  
The FIGSL Group will complete a
  strategic review of the Vie Plus Pensions and Savings business.

  	
   

  	
  Actual costs
  incurred including an appropriate pro-rata of employment costs for FIGSL
  Group staff and any third party costs, expenses or fees incurred (subject to
  such external costs being agreed in advance by the GEIH Group).

  	
   

  	
  Presentation
  and acceptance of the Strategic Review by the GEIH Group (such acceptance not
  to be unreasonably withheld) to occur before 31/10/04. If the Strategic
  Review is not presented and accepted by 31/10/04, then the FIGSL Group will
  continue to prepare the Strategic Review until the earlier of (i) acceptance
  of the Strategic Review by the relevant GEIH Group Manager and (ii) the
  Service Termination Date of item B27 below.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.           Deskside Services  

  
The FIGSL Group will continue to
  provide Deskside services to the GEIH Group. 
  Early exit fees on termination of the contract with Computacenter are
  payable in the following proportions (FIGSL Group 52.5%, GEIH Group 47.5%).

  	
   

  	
  Actual costs
  billed via the allocation methodology applicable to the GEIH Group
  immediately prior to the date hereof.

  	
   

  	
  06/10/2004

  

 

53

 

	
  Items/Service

  	
   

  	
  Billing
  Rate or Payment

  Methodology

  	
   

  	
  Service
  Termination Date

  
	
  27.           Management Support
  GECA  

  
The FIGSL Group will provide general
  senior management support to the GEIH Group (management, financial, HR,
  technical and strategic support for P&S activities including liaison with
  the IT, Finance HR and other relevant enabling functions of the GEIH Group).

  	
   

  	
  An
  appropriate pro-rata of employment costs for FIGSL Group staff.

  	
   

  	
  The earlier
  of (i) 12 months from the French Scheme Transfer Date,  (ii) 24 months from the Closing Date  and (iii) 
  12 months from any decision to cease accepting new business into the
  P&S business.

  

 

54

 

PART C

 

SECTION I – LEASES TO
BE TRANSFERRED BY FIGSL TO GELS

 

	
  Date

  	
   

  	
  Parties

  	
   

  	
  Premises

  
	
  1 May 1995

  	
   

  	
  1.     Wimgrove
  Property Trading Limited  

  2.     FIGSL  

  3.     Diplema
  115 Limited

  	
   

  	
  Vantage
  West, Great West Road, Brentford

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23 March
  1990

  	
   

  	
  1.     The
  Medical Sickness Annuity and Life Assurance Society Limited  

  2.     Frogmore
  Developments Limited  

  3.     Frogmore
  Estates plc

  	
   

  	
  Oliver
  House, 19/23 Windmill Hill, Enfield

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9 May 1975

  	
   

  	
  1.     The
  Churchbury Investment Company Limited

  2.     Hartley
  Cooper Group Services Limited 

  3.     Hartley
  Cooper (Holdings) Limited

  	
   

  	
  Wenlock
  House, Eaton Road, Enfield

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18 November
  2003

  	
   

  	
  1.     Abbey
  Business Centre Limited  2.FIGSL

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.     GE
  Pensions Limited

  2.     GE
  Insurance Holdings Limited  

  3.     FIGSL

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.     GE
  Pensions Limited  

  2.     FIGSL  

  3.     GE
  Insurance Holdings Limited

  	
   

  	
  25 Car
  Parking Spaces at Priory Park, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8 April 2002

  	
   

  	
  1.     GE
  Pensions Limited  

  2.     FIGSL

  	
   

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

  

 

55

 

	
  Date

  	
   

  	
  Parties

  	
   

  	
  Premises

  
	
  •  2002

  	
   

  	
  1.     The
  Chartridge Conference Company Limited

  2.     National
  Mutual Life Assurance Society

  	
   

  	
  The Remote
  Computer Room, Priory Park, Hitchin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29 September
  1988

  	
   

  	
  1.     Britel
  Fund Trustees Limited  

  2.     Consolidated
  Insurance Group Limited

  	
   

  	
  Penne House,
  Sheen Road, Richmond

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20 June 1988

  	
   

  	
  1.     Currys
  Group plc  

  2.     FIGSL

  	
   

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

  

 

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

 

	
  Document

  	
   

  	
  Premises

  
	
  Underlease

  	
   

  	
  Floor space
  totalling 40,000 square feet comprised of those floors in Vantage West, Great
  West Road, Brentford identified by FIGSL and reasonably agreed by GELS. If
  GELS do not agree to the floors identified by FIGSL, the parties will agree
  (each acting reasonably) within six months, the floors to be occupied by
  FIGSL. During such six month period, FIGSL will be entitled to remain in
  occupation of the floors it occupies at the commencement of the six month
  period.

  
	
   

  	
   

  	
   

  
	
  Licence
  Agreement

  	
   

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

  

 

56

 

	
  SIGNED by

  	
  )

  
	
   

  	
  )

  
	
  for and on
  behalf of

  	
  )

  
	
  FINANCIAL INSURANCE

  	
  )

  
	
  GROUP SERVICES

  	
  )

  
	
  LIMITED

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  
	
   

  	
  )

  
	
  for and on
  behalf of

  	
  )

  
	
  GE LIFE SERVICES

  	
  )

  
	
  LIMITED

  	
  )

  

 

57Exhibit
10.31

 

CONFIDENTIAL TREATMENT REQUESTED

 

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

 

 

AMENDED AND RESTATED

INVESTMENT MANAGEMENT AND SERVICES
AGREEMENT

 

 

BETWEEN

 

 

GENERAL ELECTRIC CAPITAL ASSURANCE
COMPANY

 

 

AND

 

 

GE ASSET MANAGEMENT INCORPORATED

 

 

DATED AS OF
              
    2004

 

 

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

 

RECITALS

 

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

 

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

 

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

 

ARTICLE I

DEFINITIONS AND USAGE

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

“Insurance
Authority” means the Delaware Department of Insurance.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE II

SERVICES

 

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

 

(a)                                  Research
and identify investment opportunities;

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

2.2                               [Reserved]

 

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

 

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

 

2.5                               Covenants
of Manager.

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

2.7                               Brokerage
Matters.

 

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

 

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

 

9

 

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

 

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

 

2.9                               Recordkeeping
and Reports; Review and Inspection.

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

ARTICLE III

TERM AND TERMINATION

 

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

 

11

 

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

 

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

 

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

 

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

 

12

 

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

 

ARTICLE IV

COMPENSATION

 

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

 

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

 

13

 

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

 

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

 

ARTICLE V

CONFIDENTIALITY

 

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

 

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

 

14

 

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

 

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

 

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

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

6.1          By
Client.  Client
represents and warrants that:

 

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

 

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

 

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

 

15

 

6.2          By
Manager.  Manager
represents and warrants that:

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

ARTICLE
VII

MISCELLANEOUS

 

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

 

7.2                               Indemnification.

 

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

 

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

 

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

 

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

 

7.5                               [Reserved]

 

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

 

17

 

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

 

7.7                               [Reserved]

 

7.8                               [Reserved]

 

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

 

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

 

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

 

18

 

Manager:

 

General Counsel

GE Asset Management
Incorporated

3003 Summer Street

Stamford, CT   06905

 

Client:

 

General Counsel

General Electric Capital
Assurance Company

6620 W. Broad Street

Richmond, Virginia 23230

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

19

 

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

 

7.18                        Taxes.

 

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

 

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

 

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

 

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

 

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

 

ARTICLE VIII

DISPUTE
RESOLUTION

 

8.1          General Provisions.

 

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

 

20

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

8.4          Arbitration

 

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

 

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

 

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

 

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

 

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

 

22

 

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

 

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

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

23

 

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

 

 

	
   

  	
  GE ASSET MANAGEMENT
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC
  CAPITAL

  ASSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

24

 

SCHEDULE
6.1

 

PLAN
ASSETS

 

 

None.

 

25

 

EXHIBIT 1

 

ADOPTION AGREEMENT

 

(AMENDED AND RESTATED INVESTMENT
MANAGEMENT AND SERVICES AGREEMENT)

 

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

 

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

 

	
   

  
	
   

  
	
  [Name and Address of
  Corporation]

  
	
  By:

  
	
  Name:

  
	
  Title:

  
	
  Date:

  

 

26

 

Schedule

 

                The following
agreements are
substantially identical in all material respects to the Amended and Restated
Investment Management and Services Agreement between General Electric Capital
Assurance Company and GE Asset Management Incorporated.  Differences between the agreements are noted
below.

 

	
  Agreement

  	
   

  	
  Differences

  
	
  Amended and Restated
  Investment

  Management and Services
  Agreement

  among First Colony Life
  Insurance

  Company, Federal Home Life
  Insurance

  Company, FFRL Re Corp., GE
  Life and

  Annuity Assurance Company,
  Jamestown

  Life Insurance Company and
  GE Asset

  Management
  Incorporated

  	
   

  	
  Parties to the Agreements differ.

  (See Agreement titles.)

  
	
  Amended and Restated Investment

  Management and Services Agreement

  between GE Capital Life Assurance

  Company of New York and GE Asset

  Management Incorporated

  	
   

  	
  Parties to the Agreements differ.

  (See Agreement titles.)

  
	
  Amended and Restated
  Investment

  Management and Services
  Agreement

  among General Electric
  Mortgage

  Insurance Corporation,
  General Electric

  Mortgage Insurance
  Corporation of North

  Carolina, Private
  Residential Mortgage

  Insurance Corporation, GE
  Residential

  Mortgage Insurance
  Corporation of North

  Carolina, General Electric
  Home Equity

  Insurance Corporation of
  North Carolina,

  GE Mortgage Reinsurance
  Corporation of

  North Carolina and GE
  Asset Management

  Incorporated

  	
   

  	
  Parties to the Agreements differ.

  (See Agreement titles.)

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