Document:

Exhibit 4.8

 

 

GENWORTH FINANCIAL, INC.

 

AND

 

THE BANK OF NEW YORK,

 

as Trustee

 

 

 

SUPPLEMENTAL INDENTURE NO. 1

 

Dated as of May [•], 2004

 

 

 

THIS SUPPLEMENTAL INDENTURE No. 1 (this “Supplemental
Indenture No. 1”), dated as of May [•], 2004, is between
GENWORTH FINANCIAL, INC., a Delaware corporation (the “Company”), and THE BANK OF NEW YORK, a New
York banking corporation, as Trustee (the “Trustee”).

 

R E C I T A L S

 

WHEREAS, the
Company has concurrently herewith executed and delivered to the Trustee an
Indenture dated as of May [•], 2004, between the Company and the
Trustee (the “Base  Indenture”
and together with this Supplemental Indenture No. 1, the “Indenture”), providing for
the issuance from time to time of one or more series of the Company’s Securities;

 

WHEREAS,
Section 10.01(d) of the Base Indenture provides for the Company and the Trustee
to enter into an indenture supplemental to the Base Indenture to establish the
forms or terms of Securities of any series as permitted by Section 2.01 or Section
2.02 of the Base Indenture;

 

WHEREAS,
pursuant to Section 2.02 of the Base Indenture, the Company wishes to provide
for the issuance of a new series of Securities to be known as its [•]% Senior Notes due 2009
(the “Senior
Notes”), the form and terms of such Senior Notes and the terms,
provisions and conditions thereof to be set forth as provided in this
Supplemental Indenture No. 1; and

 

WHEREAS, the Company has requested that the
Trustee execute and deliver this Supplemental Indenture No. 1, and all
requirements necessary to make this Supplemental Indenture No. 1 a valid,
binding and enforceable instrument in accordance with its terms, and to make
the Senior Notes, when executed by the Company and authenticated and delivered
by the Trustee, the valid, binding and enforceable obligations of the Company,
have been done and performed, and the execution and delivery of this
Supplemental Indenture No. 1 has been duly authorized in all respects;

 

NOW,
THEREFORE, in consideration of the covenants and agreements set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE 1

Definitions

 

Section 1.01.  Relation to
Base Indenture.  This
Supplemental Indenture No. 1 constitutes an integral part of the Base
Indenture.

 

1

 

Section 1.02.  Definition
Of Terms.  For all purposes
of this Supplemental Indenture No. 1:

 

(a)       Capitalized terms used herein without
definition shall have the meanings set forth in the Base Indenture, or, if not
defined in the Base Indenture, in the Purchase Contract and Pledge Agreement or
the Remarketing Agreement;

 

(b)      a term defined anywhere in this
Supplemental Indenture No. 1 has the same meaning throughout;

 

(c)       the singular includes the plural and vice
versa;

 

(d)      headings are for convenience of reference
only and do not affect interpretation;

 

(e)       the following terms have the meanings
given to them in this Section 1.02(e):

 

“Accounting Event”  means the receipt, at any time prior to the earlier of the date of
a Successful Remarketing and the Purchase Contract Settlement Date, by the
audit committee of the Board of Directors of a written report in accordance
with Statement on Auditing Standards (“SAS”) No. 97, “Amendment to SAS No. 50 —
Reports on the Application of Accounting Principles”, from the Company’s
independent auditors, provided at the request of management of the Company, to
the effect that, as a result of a change in accounting rules after the date of
original issuance of the Senior Notes, the Company must either (a) account for
the Purchase Contracts as derivatives under SFAS 133 (or otherwise
mark-to-market or measure the fair value of all or any portion of the Purchase
Contracts with changes appearing in the Company’s income statement) or (b)
account for the Units using the if-converted method under SFAS 128, and, in
each case, that such accounting treatment will cease to apply upon redemption
of the Senior Notes.

 

“Applicable
Ownership Interest in Senior Notes” has the meaning set forth in the
Purchase Contract and Pledge Agreement.

 

“Applicable
Principal Amount” means the aggregate principal amount of the Senior
Notes underlying the Applicable Ownership Interests in Senior Notes that are
components of Corporate Units on the Special Event Redemption Date.

 

“Beneficial
Owner” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

 

2

 

“Board of
Directors” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

 

“Business Day”
has the meaning set forth in the Purchase Contract and Pledge Agreement.

 

“Collateral
Account” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

 

“Corporate
Unit” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

 

“Coupon
Rate” has the meaning set forth in Section 2.05(a).

 

“Depositary” has the meaning set forth in
the Purchase Contract and Pledge Agreement.

 

“Depositary Participant” has the meaning set
forth in the Purchase Contract and Pledge Agreement.

 

“Final
Remarketing Date” has the meaning set forth in the Purchase Contract
and Pledge Agreement.

 

“Global
Senior Notes” has the meaning set forth in Section 2.04.

 

“Interest
Payment Date” means a Quarterly Interest Payment Date or a
Semiannual Interest Payment Date.

 

“Interest Period” means, with respect to any
Interest Payment Date, the period from and including the immediately preceding
Interest Payment Date on which interest was paid or duly provided for (or if
none, the Special Interest Payment Date) to, but excluding, such Interest
Payment Date

 

“Maturity
Date” has the meaning set forth in Section 2.02.

 

“Person”
means a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint-stock company, limited liability
company, trust, unincorporated organization or government or any agency or
political subdivision thereof or any other entity of whatever nature.

 

“Pledged Applicable Ownership Interests in Senior Notes”
has the meaning set forth in the Purchase Contract and Pledge Agreement.

 

“Purchase
Contract and Pledge Agreement” means the Purchase Contract and
Pledge Agreement, dated as of May [•], 2004, among the Company,

 

3

 

The Bank of New York, as
Purchase Contract Agent, and attorney-in-fact for Holders of the Purchase
Contract, and The Bank of New York, as Collateral Agent, Custodial Agent and
Securities Intermediary, as amended from time to time.

 

“Purchase
Contract Settlement Date” has the meaning set forth in
the Purchase Contract and Pledge Agreement.

 

“Put Price” has the meaning set forth in
Section 8.05(a).

 

“Put Right” has the meaning set forth in
Section 8.05(a).

 

“Quarterly Interest Payment Date” has the
meaning set forth in Section 2.05(b)(i).

 

“Quotation Agent” means any
primary U.S. government securities dealer selected by the Company.

 

“Record
Date” means, with respect to any Interest Payment Date for the Senior
Notes, the first Business Day of the calendar month in which such Interest
Payment Date falls.

 

“Redemption
Amount” means, for each Senior Note, an amount equal to the product of
the principal amount of such Senior Note and a fraction, the numerator of which is the Treasury Portfolio
Purchase Price and the denominator of which is the Applicable Principal Amount;
provided
that in no event shall the Redemption Amount for any Senior Note be less than
the principal amount of such Senior Note.

 

“Redemption
Price” shall mean, for each Senior Note, the Redemption Amount plus any
accrued and unpaid interest on such Senior Note to, but excluding, the Special Event Redemption Date.

 

“Remarketed Senior Notes” has
the meaning set forth in the Remarketing Agreement.

 

“Remarketing
Agent” means Morgan Stanley & Co. Incorporated, or any successor
thereto or replacement Remarketing Agent appointed by the Company pursuant to
the Remarketing Agreement.

 

“Remarketing
Agreement” means the Remarketing Agreement, dated as of May [•], 2004, among the Company, Morgan
Stanley & Co. Incorporated, as Remarketing Agent and The Bank of New York,
as Purchase Contract Agent, as amended from time to time.

 

4

 

“Remarketing Fee” has the
meaning set forth in the Remarketing Agreement.

 

“Remarketing Price” has the meaning set
forth in the Remarketing Agreement.

 

“Reset Rate”
has the meaning set forth in the Remarketing Agreement.

 

“Semiannual Interest Payment Date” has the
meaning set forth in Section 2.05(b)(ii).

 

“Separate Senior Notes” has the meaning set forth in the
Purchase Contract and Pledge Agreement.

 

“Special
Event” shall mean either a Tax Event or an Accounting Event.

 

“Special Event Redemption” means the
redemption of the Senior Notes pursuant to the terms of Article 3 hereof
following the occurrence of a Special Event.

 

“Special
Event Redemption Date” has the meaning set forth in Section 3.01.

 

“Special
Interest Payment Date” has the meaning set forth in Section 2.05(d).

 

“Tax Event”
means the receipt by the Company of an opinion of counsel, rendered by a law
firm having a recognized national tax practice, at any time prior to the
earlier of the date of a Successful Remarketing and the Purchase Contract
Settlement Date, to the effect that, as a result of any amendment to, change in
or announced proposed change in the laws (or any regulations thereunder) of the
United States or any political subdivision or taxing authority thereof or
therein, or as a result of any official administrative decision, pronouncement,
judicial decision or action interpreting or applying such laws or regulations,
which amendment or change is effective or which proposed change, pronouncement,
action or decision is announced on or after the date of issuance of the Senior
Notes, there is more than an insubstantial increase in the risk that interest
payable by the Company on the Senior Notes is not, or within 90 days of the
date of such opinion, will not be, deductible by the Company, in whole or in
part, for United States federal income tax purposes.

 

“Termination
Event” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

 

5

 

“Treasury
Portfolio”  means a portfolio of U.S. Treasury securities (or principal or
interest strips thereof) that mature on or prior to May 15, 2007 in an
aggregate amount at maturity equal to the Applicable Principal Amount and with
respect to each scheduled Interest Payment Date on the Senior Notes that occurs
after the Special Event Redemption Date, to and including the Purchase Contract
Settlement Date, U.S. Treasury securities (or principal or interest strips
thereof) that mature on or prior to the Business Day immediately preceding such
scheduled Interest Payment Date in an aggregate amount at maturity equal to the
aggregate interest payment (assuming no reset of the interest rate) that would
be due on the Applicable Principal Amount of the Senior Notes on such date.

 

“Treasury
Portfolio Purchase Price”  means the lowest aggregate ask-side price quoted by a primary U.S.
government securities dealer to the Quotation Agent between 9:00 a.m. and 11:00
a.m., New York City time, on the third Business Day immediately preceding the
Special Event Redemption Date for the purchase of the Treasury Portfolio for
settlement on the Special Event Redemption Date.

 

“Treasury
Unit” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

 

The terms “Company,”
“Trustee,” “Indenture,” “Base Indenture” and “Senior Notes” shall have the respective
meanings set forth in the recitals to this Supplemental Indenture No. 1 and the
paragraph preceding such recitals.

 

ARTICLE 2

General Terms and Conditions of the Senior Notes

 

Section 2.01.  Designation
and Principal Amount.  There
is hereby authorized a series of Securities designated as [•]% Senior
Notes due 2009 limited in aggregate principal amount to $600,000,000. The
Senior Notes may be issued from time to time upon written order of the Company
for the authentication and delivery of Senior Notes pursuant to Section 2.03 of
the Base Indenture.

 

Section 2.02. 
Maturity.  Unless a
Special Event Redemption occurs prior to the Maturity Date (defined below), the
date upon which the Senior Notes shall become due and payable at final maturity,
together with any accrued and unpaid interest, is May 16, 2009 (the “Maturity Date”).

 

Section 2.03.  Form,
Payment and Appointment.  Except
as provided in Section 2.04, the Senior Notes shall be issued in fully
registered, certificated form, bearing identical terms. Principal of and
interest on the Senior Notes will be payable, the transfer of such Senior Notes
will be registrable, and such Senior

 

6

 

Notes will be
exchangeable for Senior Notes of a like aggregate principal amount bearing
identical terms and provisions, at the office or agency of the Company
maintained for such purpose in the Borough of Manhattan, The City of New York,
which shall initially be the corporate trust office of the Trustee; provided,
however, that payment of interest may be made at the option of the
Company by check mailed to the holder at such address as shall appear in the
Security register or by wire transfer to an account appropriately designated by
the holder entitled to payment.

 

No service
charge shall be made for any registration of transfer or exchange of the Senior
Notes, but the Company may require payment from the holder of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

 

The Security Registrar and Paying Agent for
the Senior Notes shall initially be the Trustee.

 

The Senior Notes shall be issuable in
denominations of $1,000 and integral multiples of $1,000 in excess thereof; provided, however,
that upon the release by the Collateral Agent of Senior Notes underlying the
Pledged Applicable Ownership Interests in Senior Notes (other than any release
of Senior Notes underlying Pledged Applicable Ownership Interests in Senior
Notes in connection with (i) the creation of Treasury Units by Collateral
Substitution, (ii) a Successful Remarketing, (iii) Cash Merger Early
Settlement, (iv) Early Settlement or (v) Cash Settlement, in accordance with
Section 3.13, Section 5.02(b), Section 5.04, Section 5.07 or Section 5.02(a) of
the Purchase Contract and Pledge Agreement, as the case may be), the Senior
Notes shall be issuable in denominations of $25 and integral multiples of $25
in excess thereof, and the Company shall issue Senior Notes in any such
denominations if requested by the Purchase Contract Agent on behalf of any
Holder or Beneficial Owner.

 

Section 2.04.  Global
Senior Notes.   Senior Notes corresponding to Applicable
Ownership Interests in Senior Notes that are no longer a component of the
Corporate Units and are released from the Collateral Account will be issued in
permanent global form (a “Global Senior Note”),
and if issued as one or more Global Senior Notes, the Depositary shall be The
Depository Trust Company or such other depositary as any officer of the Company
may from time to time designate.  Upon
the creation of Treasury Units, or the re-creation of Corporate Units, an
appropriate annotation shall be made on the Schedule of Increases and Decreases
on the Global Senior Notes held by the Depositary.  Unless and until such Global Senior Note is exchanged for Senior
Notes in certificated form, Global Senior Notes may be transferred, in whole
but not in part, and any payments on the Senior Notes shall be made, only to
the Depositary or a nominee

 

7

 

of the
Depositary, or to a successor Depositary selected or approved by the Company or
to a nominee of such successor Depositary.

 

Section 2.05.  Interest.  (a) The Senior Notes will bear
interest initially at the rate of [•]% per year (the “Coupon Rate”) from and including May [•], 2004 to, but excluding,
the Maturity Date, or in the event of a Successful Remarketing, the Purchase
Contract Settlement Date.  In the event
of a Successful Remarketing of the Senior Notes, the Coupon Rate will be reset
by the Remarketing Agent to the Reset Rate with effect from the Purchase
Contract Settlement Date, as set forth in Section 8.03.  If the Coupon Rate is so reset, the Senior
Notes will bear interest at the Reset Rate from and including the Purchase
Contract Settlement Date to, but excluding, the Maturity Date.  The Senior Notes shall bear interest, to the
extent permitted by law, on any overdue principal and interest at the Coupon
Rate, unless a Successful Remarketing shall have occurred, in which case
interest on such amounts shall accrue at the Reset Rate from and after the
Purchase Contract Settlement Date, in each case, compounded quarterly through
the Purchase Contract Settlement Date and compounded semi-annually, thereafter.

 

(b)   (i)   Prior
to and on the Purchase Contract Settlement Date, interest on the Senior Notes
shall be payable quarterly in arrears on February 16, May 16, August 16 and
November 16 of each year (each, a “Quarterly Interest
Payment Date”), commencing August 16, 2004, to the Person in
whose name the relevant Senior Notes are registered at the close of
business on the Record Date for such Interest Payment Date.

 

(ii)           After the Purchase Contract
Settlement Date, interest on the Senior Notes shall be payable semi-annually in
arrears on May 16 and November 16 of each year (each, a “Semiannual Interest Payment Date”), commencing November 16, 2007,
to the Person in whose name the relevant Senior Notes are registered at the close of
business on the Record Date for such Interest Payment Date.

 

(c)           The amount of interest payable for
any full Interest Period will be computed on the basis of a 360-day year
consisting of twelve 30-day months.  The
amount of interest payable for any period shorter than a full Interest Period
for which interest is computed will be computed on the basis of a 30-day month
and, for any period less than a month, on the basis of the actual number of
days elapsed per 30-day month.  In the
event that any scheduled Interest Payment Date falls on a day that is not a
Business Day, then payment of interest payable on such Interest Payment Date
will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect of any such delay).

 

8

 

(d)           In addition, the Company shall pay on
May [•],
2004 (the “Special Interest Payment Date”), the interest accrued from and
including May [•],
2004, to, but excluding, the Special Interest Payment Date to the Person in whose
name the Senior Notes are registered at the close of business on the Business
Day immediately preceding the Special Interest Payment Date.  The interest payable on the Special Interest
Payment Date shall be calculated based on the actual number of days elapsed
divided by 360 and shall be paid by wire transfer to the account designated by
the Person entitled to receive such payment by prior notice to the Company and
the Trustee.

 

Section 2.06.  No
Defeasance.  Section 12.02
and Section 12.03 of the Base Indenture shall not apply to the Senior Notes.

 

Section 2.07.  No Sinking
Fund or Repayment at Option of the Holder. 
The Senior Notes are not entitled to the benefit of any
sinking fund and Section 3.06 of the Base Indenture shall not apply to the
Senior Notes.

 

ARTICLE 3

Redemption of the Senior Notes

 

Section 3.01.  Special
Event Redemption.  If a
Special Event shall occur and be continuing, the Company may, at its option,
redeem the Senior Notes in whole, but not in part, on any Interest Payment Date
prior to the earlier of the date of a Successful Remarketing and the Purchase
Contract Settlement Date, at a price per Senior Note equal to the Redemption
Price, payable on the date of redemption (the “Special Event Redemption Date”) to the Person in whose name
the relevant Senior Notes are registered at the close of business on the
Special Event Redemption Date; provided that if a Special Event
Redemption Date falls after a Record Date, but on or prior to the corresponding
Interest Payment Date, the Redemption Price shall not include any accrued and
unpaid interest corresponding to such Interest Payment Date, and the full
amount of interest for the relevant Interest Period will be payable to the
Person in whose name the Senior Notes are registered at the close of business
on the relevant Record Date.

 

Section 3.02.  Notice of
Redemption.  If the Company
so elects to redeem the Senior Notes, the Company shall appoint the Quotation
Agent to assist the Company in determining the Treasury Portfolio Purchase
Price.  Notice of any Special Event
Redemption will be mailed by the Company (with a copy to the Trustee) at least
30 days but not more than 60 days before the Special Event Redemption Date to
each Person in whose name the Senior Notes are registered at its registered
address.  In addition, the Company shall
notify the Collateral Agent

 

9

 

in writing
that a Special Event has occurred and that the Company intends to redeem the
Senior Notes on the Special Event Redemption Date.

 

Section 3.03.  Effect of
Redemption.  Unless the
Company defaults in the payment of the Redemption Price, on and after the
Special Event Redemption Date, (a) interest shall cease to accrue on the Senior
Notes, (b) the Senior Notes shall become due and payable at the Redemption
Price, and (c) the Senior Notes shall be void and all rights of the holders in
respect of the Senior Notes shall terminate and lapse (other than the right to
receive the Redemption Price upon surrender of such Senior Notes but without
interest on such Redemption Price).  
Following the notice of a Special Event Redemption, neither the Company
nor the Trustee shall be required to register the transfer of or exchange the
Senior Notes to be redeemed.

 

Section 3.04.  Redemption
Procedures.   On or prior to
the Special Event Redemption Date, the Company shall deposit with the Trustee
immediately available funds in an amount sufficient to pay, on the Special
Event Redemption Date, the aggregate Redemption Price for all outstanding
Senior Notes.  In exchange for any
Senior Notes surrendered for redemption on or after the Special Event
Redemption Date, the Trustee shall pay an amount equal to the Redemption Price
(a) to the Collateral Agent, in the case of Senior Notes that underlie the
Applicable Ownership Interests in Senior Notes included in Corporate Units,
which amount shall be applied by the Collateral Agent in accordance with the
terms of the Purchase Contract and Pledge Agreement, and (b) to the holders of
the Separate Senior Notes, in the case of Separate Senior Notes.

 

Section 3.05.  No Other
Redemption.  Except as set
forth in this Article 3, the Senior Notes shall not be redeemable by the
Company prior to the Maturity Date.  The
provisions of this Article 3 shall supersede any conflicting provisions
contained in Article 3 of the Base Indenture.

 

ARTICLE 4

Form of Senior Note

 

Section 4.01.  Form of
Senior Note.  The Senior
Notes and the Trustee’s Certificate of Authentication to be endorsed thereon
are to be substantially in the forms attached as Exhibit A hereto, with such
changes therein as the officers of the Company executing the Senior Notes (by
manual or facsimile signature) may approve, such approval to be conclusively
evidenced by their execution thereof.

 

10

 

ARTICLE 5

Original Issue of Senior Notes

 

Section 5.01.  Original
Issue of Senior Notes.  Senior
Notes in the aggregate principal amount of $600,000,000 may from time to time,
upon execution of this Supplemental Indenture No. 1, be executed by the Company
and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said Senior Notes to or upon the written
order of the Company pursuant to Section 2.03 of the Base Indenture without any
further action by the Company (other than as required by the Base Indenture).

 

ARTICLE 6

Supplemental Indentures

 

Section 6.01. 
Supplemental Indentures with Consent of holders of Senior Notes. As
set forth in Section 10.02 of the Base Indenture, with the consent of the
holders of a majority in the aggregate principal amount of Senior Notes
affected by such supplemental indenture at the time outstanding, the Company
and the Trustee may from time to time and at any time enter into an indenture
or indentures supplemental thereto or to the Base Indenture for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Base Indenture or this Supplemental Indenture or of modifying
in any manner the rights of the holders of the Senior Notes; provided,
however, that, in addition to clauses (i) through (iv) of Section
10.02 of the Base Indenture, no such indenture or supplemental indenture shall (a) reduce the Put Price, (b) change the exercise
date of the Put Right, (c) modify the terms of the Put Right or (d) modify the
interest rate reset or Remarketing provisions of the Senior Notes, without,
in the case of each of the foregoing clauses (a), (b), (c) and (d), the consent
of the holder of each Senior Note affected.

 

ARTICLE 7

Miscellaneous

 

Section 7.01. 
Ratification of Indenture. The Indenture, as supplemented by
this Supplemental Indenture No. 1, is in all respects ratified and confirmed,
and this Supplemental Indenture No. 1 shall be deemed part of the Indenture in
the manner and to the extent herein and therein provided.

 

Section 7.02.  Trustee Not
Responsible for Recitals.  The
recitals herein contained are made by the Company and not by the Trustee, and
the Trustee assumes no responsibility for the correctness thereof. The Trustee
makes no

 

11

 

representation
as to the validity or sufficiency of this Supplemental Indenture No. 1.

 

Section 7.03.  New York
Law To Govern.  THIS
SUPPLEMENTAL INDENTURE NO. 1 AND EACH SENIOR NOTE SHALL BE DEEMED TO BE
CONTRACTS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT A
DIFFERENT LAW WOULD GOVERN AS A RESULT.

 

Section 7.04. 
Separability.  In case
any one or more of the provisions contained in this Supplemental Indenture or
in the Senior Notes shall for any reason be held to be invalid, illegal or unenforceable
in any respect, then, to the extent permitted by law, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture No. 1 or of the Senior Notes, but this Supplemental
Indenture No. 1 and the Senior Notes shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

 

Section 7.05. 
Counterparts.  This
Supplemental Indenture may be executed in any number of counterparts each of
which shall be an original, but such counterparts shall together constitute but
one and the same instrument.

 

ARTICLE 8

Remarketing

 

Section 8.01.  Remarketing
Procedures.  (a)  Unless a Special Event
Redemption or a Termination Event has occurred prior to the Initial Remarketing
Date, the Company shall engage the Remarketing Agent pursuant to the
Remarketing Agreement for the Remarketing of the Senior Notes. The Company will
request, not later than 20 Business Days prior to the Initial Remarketing Date,
that the Depositary or its nominee notify the Beneficial Owners or Depositary
Participants holding Separate Senior Notes, Corporate Units and Treasury Units
of the procedures to be followed in the Remarketing, including, in the case of
a Failed Final Remarketing, the procedures that must be followed by a holder of
Separate Senior Notes if such holder wishes to exercise its Put Right or by a
holder of Applicable Ownership Interests in Senior Notes if such Holder elects not to
exercise its Put Right.

 

12

 

(b)           Each
holder of Separate Senior Notes may elect to have Separate Senior Notes held by
such holder remarketed in any Remarketing. 
A holder making such an election must, pursuant to the
Purchase Contract and Pledge Agreement, notify the Custodial Agent and deliver
such Separate Senior Notes to the Custodial Agent prior to 5:00 p.m., New York
City time, on the seventh Business Day immediately preceding the Purchase
Contract Settlement Date (but no earlier than the Interest Payment Date
immediately preceding the Initial Remarketing Date).  Any such notice and delivery may not be conditioned upon the
level at which the Reset Rate is established in the Remarketing.  Any such notice and delivery may be
withdrawn prior to 5:00 p.m., New York City time, on the seventh Business Day
immediately preceding the Purchase Contract Settlement Date in accordance with
the provisions set forth in the Purchase Contract and Pledge Agreement.  Any such notice and delivery not withdrawn
by such time will be irrevocable with respect to each Remarketing.  Pursuant to Section 5.02 of the Purchase
Contract and Pledge Agreement, promptly after 11:00 a.m., New York City time, on the Business Day
immediately preceding the Initial Remarketing Date, the Custodial Agent, based
on the notices and deliveries received by it prior to such time, shall notify
the Remarketing Agent of the principal amount of Separate Senior Notes tendered
for remarketing and shall cause such Separate Senior Notes to be presented to
the Remarketing Agent. Under Section 5.02 of the Purchase Contract and Pledge
Agreement, Senior Notes that underlie Applicable Ownership Interests in Senior
Notes included in Corporate Units will be deemed tendered for Remarketing and
will be remarketed in accordance with the terms of the Remarketing Agreement.

 

(c)           The
right of each holder of Remarketed Senior Notes to have such Senior Notes
remarketed and sold on any Remarketing Date s shall be subject to the
conditions that (i) the Remarketing Agent conducts a Remarketing pursuant to
the terms of the Remarketing Agreement on such Remarketing Date, (ii) neither a
Special Event Redemption nor a Termination Event has occurred prior to such
Remarketing Date, (iii) the Remarketing Agent is able to find a purchaser or
purchasers for Remarketed Senior Notes at the Remarketing Price based on the
Reset Rate and (iv) the purchaser or purchasers deliver the purchase price
therefor to the Remarketing Agent as and when required.

 

(d)           Neither
the Trustee, the Company nor the Remarketing Agent shall be obligated in any
case to provide funds to make payment upon tender of Senior Notes for
remarketing.

 

Section 8.02.  Remarketing.  (a)
Unless a Special Event Redemption or a Termination Event has occurred
prior to the Initial Remarketing Date, on the Initial Remarketing Date, the
Remarketing Agent shall, pursuant and subject to

 

13

 

the terms of
the Remarketing Agreement, use its reasonable efforts to remarket the
Remarketed Senior Notes at the Remarketing Price.

 

(b)           In
the case of a Failed Initial Remarketing, on the Second Remarketing Date, the
Remarketing Agent shall use its reasonable efforts to remarket the Remarketed
Senior Notes at the Remarketing Price. 
In the case of a Failed Second Remarketing, on the Final Remarketing
Date, the Remarketing Agent shall use its reasonable efforts to remarket the
Remarketed Senior Notes at the Remarketing Price.  It is understood and agreed that Remarketing on any Remarketing
Date will be considered successful and no further attempts will be made if the
resulting proceeds are at least equal to the Remarketing Price.

 

Section 8.03.  Reset Rate.  (a)
In connection with each Remarketing, the Remarketing Agent shall
determine the Reset Rate (rounded to the nearest one-thousandth (0.001) of one
percent per annum).

 

(b)           Anything
herein to the contrary notwithstanding, the Reset Rate shall in no event exceed
the maximum rate permitted by applicable law.

 

(c)           In the event of a Failed Remarketing
or if no Applicable Ownership Interests in Senior Notes are included in
Corporate Units and none of the holders of the Separate Senior Notes elect to
have their Senior Notes remarketed in any Remarketing, the applicable interest
rate on the Senior Notes will not be reset and will continue to be the Coupon
Rate.

 

(d)           In the event of a Successful
Remarketing, the Coupon Rate shall be reset on the Purchase Contract Settlement
Date to the Reset Rate as determined by the Remarketing Agent under the
Remarketing Agreement, and the Company shall issue a press release containing
such Reset Rate and publish such information on its website.

 

Section 8.04.  Failed
Remarketing.  If, by 4:00
p.m., New York City time, on any Remarketing Date, the Remarketing Agent is unable
to remarket all of the Remarketed Senior Notes at the Remarketing Price
pursuant to the terms and conditions hereof and of the Remarketing Agreement, a
Failed Remarketing shall be deemed to have occurred.

 

Section 8.05.  Put Right.

 

(a)           Subject to paragraph (b) hereof, if
there has not been a Successful Remarketing on or prior to the Final
Remarketing Date, holders of Senior Notes will, subject to this Section 8.05,
have the right (the “Put Right”) to require the Company to
purchase such Senior Notes on the Purchase Contract Settlement Date, at a price
per Senior Note to be purchased equal to the principal amount of

 

14

 

the applicable Senior Note, plus accrued and
unpaid interest to, but excluding, the Purchase Contract Settlement Date (the “Put Price”).

 

(b)           The Put Right of holders of
Applicable Ownership Interests in Senior Notes that are part of Corporate Units
will be deemed to be automatically exercised unless such holders (1) prior to
5:00 p.m., New York City time, on the second Business Day immediately preceding
the Purchase Contract Settlement Date, provide written notice to the Purchase
Contract Agent of their intention to settle the related Purchase Contract with
separate cash, and (2) on or prior to 5:00 p.m., New York City time, on the
Business Day immediately preceding the Purchase Contract Settlement Date,
deliver to the Collateral Agent $25 in cash per Purchase Contract, in each case
pursuant to the Purchase Contract Agreement, and such holders shall be deemed
to have elected to pay the Purchase Price for the shares of Common Stock to be
issued under the related Purchase Contract from a portion of the proceeds of
the Put Right of the Senior Notes underlying such Applicable Ownership Interests
in Senior Notes equal to the Purchase Price in full satisfaction of such
holders’ obligations under the Purchase Contracts, and any remaining amount of
the Put Price following satisfaction of the related Purchase Contracts will be
paid to such holder.

 

(c)           The Put Right of a holder of a
Separate Senior Note shall only be exercisable upon delivery of a notice to the
Trustee by such holder on or prior to the second Business Day immediately
preceding the Purchase Contract Settlement Date.  On or prior to the Purchase Contract Settlement Date, the Company
shall deposit with the Trustee immediately available funds in an amount
sufficient to pay, on the Purchase Contract Settlement Date, the aggregate Put
Price of all Separate Senior Notes with respect to which a holder has exercised
a Put Right.  In exchange for any
Separate Senior Notes surrendered pursuant to the Put Right, the Trustee shall
then distribute such amount to the holders of such Separate Senior Notes.

 

Section 8.06.          Additional
Event of Default.   In
addition to the events listed as Events of Default in Section 6.01 of the Base
Indenture, it shall be an additional Event of Default with respect to the
Senior Notes, if the Company defaults in the payment of the Put Price with
respect to any Senior Note following the exercise of the Put Right by any
holder in accordance with Section 8.05.

 

ARTICLE 9

Tax Treatment

 

Section 9.01.  Tax
Treatment.  The Company
agrees, and by acceptance of a Corporate Unit or a Separate Senior Note, each
holder will be deemed to have

 

15

 

agreed (1) for
United States federal, state and local income and franchise tax purposes to
treat the acquisition of a Corporate Unit as the acquisition of an Applicable
Ownership Interest in Senior Notes and the Purchase Contract constituting the
Corporate Unit and (2) to treat the Applicable Ownership Interest in Senior
Notes or Separate Senior Note, as the case may be, as indebtedness for United
States federal, state and local income and franchise tax purposes.

 

16

 

IN WITNESS
WHEREOF, the parties hereto have caused this Supplemental Indenture No. 1 to be
duly executed, as of the day and year first written above.

 

	
   

  	
   

  	
  GENWORTH FINANCIAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [CORPORATE SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

EXHIBIT A

 

[IF THIS SENIOR NOTE IS TO BE A
GLOBAL SECURITY, INSERT:]

THIS SENIOR NOTE IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE
DEPOSITORY TRUST COMPANY. THIS SENIOR NOTE IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A
NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY
TRUST COMPANY.

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

 

GENWORTH FINANCIAL,
INC.

 

[•]%
Senior Notes due [•],
2009

 

	
   

  	
  CUSIP:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  No.

  	
   

  	
   

  	
   

  	
  $

  	
   

  
						

 

GENWORTH
FINANCIAL, INC., a corporation organized and existing under the laws of
Delaware (hereinafter called the “Company”, which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to
                       ,
or registered assigns,

 

17

 

the principal sum as set forth
in the Schedule of Increases or Decreases In Senior Note attached hereto, which
amount shall not exceed $600,000,000, on May 16, 2009 (such date is hereinafter
referred to as the “Maturity Date”), and to pay interest
thereon from the Special Interest Payment Date or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, quarterly in
arrears on February 16, May 16, August 16 and November 16 of each year (each, a
“Quarterly
Interest Payment Date”), commencing August 16, 2004 at the rate of [•]% per annum through and
including the day immediately preceding the Purchase Contract Settlement Date,
and thereafter semi-annually in arrears on May 16 and November 16 of each year
(each, a “Semiannual
Interest Payment Date”), commencing November 16, 2007, at the Reset
Rate, or if there has not been a Successful Remarketing prior to the Purchase
Contract Settlement Date, at the Coupon Rate, on the basis of a 360-day year
consisting of twelve 30-day months, until the principal hereof is paid or duly
provided for or made available for payment. The Senior Notes shall bear
interest, to the extent permitted by law, on any overdue principal and interest
at the Coupon Rate, unless a Successful Remarketing shall have occurred, in
which case interest on such amounts shall accrue at the Reset Rate from and
after the Purchase Contract Settlement Date, in each case, compounded quarterly
through the Purchase Contract Settlement Date and compounded semi-annually
thereafter.  The Reset Rate, if any,
shall be established pursuant to the terms of the Indenture and the Remarketing
Agreement.  The amount of interest payable for any period shorter than a full
Interest Period for which interest is computed will be computed on the basis of
a 30-day month and, for any period less than a month, on the basis of the
actual number of days elapsed per 30-day month.  The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in
whose name this Senior Note (or
one or more predecessor Senior Notes) is registered at the close of business on the Record Date for such
Interest Payment Date.

 

In addition,
the Company shall pay on May [•], 2004 (the “Special Interest Payment Date”),
the interest accrued from and including May [•], 2004, to, but excluding, the Special
Interest Payment Date to the Person in whose name the Senior Notes are
registered at the close of business on the Business Day immediately preceding
the Special Interest Payment Date.  The
interest payable on the Special Interest Payment Date shall be calculated based
on the actual number of days elapsed divided by 360 and shall be paid by wire
transfer to the account designated by the Person entitled to receive such
payment by prior notice to the Company and the Trustee.

 

Payment of the principal of and interest on this Senior Note will be
made at the office or agency of the Company maintained for that purpose in The
Borough of Manhattan, The City of New York, which shall initially be the
corporate trust office of the Trustee, in such coin or currency of the United
States

 

A-2

 

of America as
at the time of payment is legal tender for payment of public and private debts;
provided,
however, that payment of interest may be made at the option of the
Company by check mailed to the holder at such address as shall appear in the
Security register or by wire transfer to an account appropriately designated by
the holder entitled to payment.

 

Reference is
hereby made to the further provisions of this Senior Note set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

 

Unless the
certificate of authentication hereon has been executed by the Trustee referred
to on the reverse hereof by manual signature, this Senior Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

A-3

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENWORTH
  FINANCIAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  [CORPORATE
  SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Senior Notes
referred to in the within mentioned Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  THE BANK OF
  NEW YORK,

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
						

 

 

REVERSE OF SENIOR NOTE

 

This Senior
Note is one of a duly authorized issue of securities of the Company (herein
called the “Senior Notes”), issued and to be issued in one or more series
under an Indenture (the “Base Indenture”), dated as of May
[•], 2004, between the Company and The Bank of New York, as Trustee
(herein called the “Trustee”, which term includes any successor
trustee), as amended and supplemented by Supplemental Indenture No. 1, dated as
of May [•], 2004, between the Company and the Trustee (the “Supplemental
Indenture No. 1” and together with the Base Indenture, the “Indenture”),
to which Indenture reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the holders of the Senior Notes and of the terms upon which the
Senior Notes are, and are to be, authenticated and delivered.  This Senior Note is one of the series
designated on the face hereof, limited in aggregate principal amount to
$600,000,000.

 

All terms used
in this Senior Note that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

 

If a Special
Event shall occur and be continuing, the Company may, at its option, redeem the
Senior Notes of this series in whole, but not in part, on any Interest Payment
Date prior to the earlier of the date of a Successful Remarketing or the
Purchase Contract Settlement Date, at a price per Senior Note equal to the
Redemption Price as set forth in the Indenture.  Except as set forth in the preceding sentence and in Article 3 of
the Supplemental Indenture No. 1, the Company may not redeem the Senior Notes
at its option prior to the Maturity Date.

 

Pursuant to
Section 8.05 of the Supplemental Indenture No. 1, if there has not been a
Successful Remarketing on or prior to the Final Remarketing Date, holders of
Senior Notes will have the right (the “Put Right”) to require the Company to
purchase such Senior Notes on the Purchase Contract Settlement Date, in the
case of Separate Senior Notes upon a notice to the Trustee on or prior to the
second Business Day prior to the Purchase Contract Settlement Date, at a price
per Senior Note to be purchased equal to the principal amount of the applicable
Senior Note, plus accrued and unpaid interest to, but excluding, the Purchase
Contract Settlement Date (the “Put Price”).

 

The Senior
Notes are not entitled to the benefit of any sinking fund and will not be
subject to defeasance or covenant defeasance.

 

If an Event of
Default with respect to Senior Notes of this series shall occur and be
continuing, the principal of the Senior Notes of this series may be

 

R-1

 

declared due and payable in the
manner and with the effect provided in the Indenture.

 

The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the holders of the Senior Notes at any time by the Company and the Trustee with
the consent of the holders of a majority in principal amount of the Senior
Notes at the time outstanding. The Indenture also contains provisions
permitting the holders of specified percentages in principal amount of the Senior
Notes at the time outstanding, on behalf of the holders of all Senior Notes, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the holder of this Senior Note shall be conclusive and
binding upon such holder and upon all future holders of this Senior Note and of
any Senior Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Senior Note.

 

As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer of this Senior Note is registrable in the security register, upon
surrender of this Senior Note for registration of transfer at the office or
agency of the Company in any place where the principal of and interest on this
Senior Note are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by the holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes of this series, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Senior
Notes of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof, except as provided
for in Section 2.03 of Supplemental Indenture No. 1. As provided in the
Indenture and subject to certain limitations therein set forth, Senior Notes of
this series are exchangeable for a like aggregate principal amount of Senior
Notes of this series of a different authorized denomination, as requested by
the holder surrendering the same.

 

No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

 

The Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
this Senior Note is registered as the owner hereof for all

 

R-2

 

purposes, whether or not this
Senior Note is overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

 

The Company
agrees, and by acceptance of a Corporate Unit or a Separate Senior Note, each
holder will be deemed to have agreed (1) for United States federal, state and
local income and franchise tax purposes to treat the acquisition of a Corporate
Unit as the acquisition of an Applicable Ownership Interest in Senior Notes and
the Purchase Contract constituting the Corporate Unit and (2) to treat the Applicable
Ownership Interest in Senior Notes or Separate Senior Note, as the case may be,
as indebtedness for United States federal, state and local income and franchise
tax purposes.

 

THIS SENIOR NOTE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT A DIFFERENT LAW
WOULD GOVERN AS A RESULT.

 

R-3

 

ASSIGNMENT

 

	
  FOR VALUE RECEIVED, the undersigned assigns
  and transfers this Senior Note to:

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Insert assignee’s social security or tax
  identification number)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Insert address and zip code of assignee)

  
	
   

  
	
  and irrevocably appoints

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  agent to transfer this Senior Note on the
  books of the Company. The agent may substitute another to act for him or her.

  

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  

 

(Sign exactly as your name
appears on the other side of this Senior Note)

 

 

SIGNATURE GUARANTEE

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

SCHEDULE OF INCREASES OR DECREASES IN SENIOR
NOTE

 

The initial principal amount of
this Senior Note is $600,000,000.  The
following increases or decreases in a part of this Senior Note have been made:

 

	
  Date

  	
   

  	
  Amount of 

  decrease in 

  principal 

  amount of this 

  Senior Note

  	
   

  	
  Amount of 

  increase in 

  principal 

  amount of this 

  Senior Note

  	
   

  	
  Principal 

  amount of this 

  Senior Note 

  following such 

  decrease (or 

  increase)

  	
   

  	
  Signature of 

  authorized 

  officer of 

  TrusteeExhibit 4.9

GENWORTH FINANCIAL, INC.

and

 

The Bank of New York,

as Purchase Contract Agent,

and

The Bank of New York,

as Collateral Agent, Custodial Agent and Securities Intermediary

PURCHASE CONTRACT AND PLEDGE AGREEMENT

Dated as of May [•], 2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1

  
	
  DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  
	
   

  	
   

  
	
  Section
  1.01.  Definitions

  	
   

  
	
  Section
  1.02.  Compliance Certificates and Opinions

  	
   

  
	
  Section
  1.03.  Form of Documents Delivered to Purchase Contract Agent.

  	
   

  
	
  Section
  1.04.  Acts of Holders; Record Dates

  	
   

  
	
  Section
  1.05.  Notices

  	
   

  
	
  Section
  1.06.  Notice to Holders; Waiver

  	
   

  
	
  Section
  1.07.  Effect of Headings and Table of Contents

  	
   

  
	
  Section
  1.08.  Successors and Assigns

  	
   

  
	
  Section
  1.09.  Separability Clause

  	
   

  
	
  Section
  1.10.  Benefits of Agreement

  	
   

  
	
  Section
  1.11.  Governing Law

  	
   

  
	
  Section
  1.12.  Legal Holidays

  	
   

  
	
  Section
  1.13.  Counterparts

  	
   

  
	
  Section
  1.14.  Inspection of Agreement

  	
   

  
	
  Section
  1.15.  Appointment of Financial Institution as Agent for the Company

  	
   

  
	
  Section
  1.16.  No Waiver

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  2

  
	
  CERTIFICATE
  FORMS

  
	
   

  	
   

  
	
  Section
  2.01.  Forms of Certificates Generally

  	
   

  
	
  Section
  2.02.  Form of Purchase Contract Agent’s Certificate of Authentication

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  3

  
	
  THE
  UNITS

  
	
   

  
	
  Section
  3.01.  Amount; Form and Denominations

  	
   

  
	
  Section
  3.02.  Rights and Obligations Evidenced by the Certificates

  	
   

  
	
  Section
  3.03.  Execution, Authentication, Delivery and Dating

  	
   

  
	
  Section
  3.04.  Temporary Certificates

  	
   

  
	
  Section
  3.05.  Registration; Registration of Transfer and Exchange

  	
   

  
	
  Section
  3.06.  Book-entry Interests

  	
   

  
	
  Section
  3.07.  Notices to Holders

  	
   

  
	
  Section
  3.08.  Appointment of Successor Depositary

  	
   

  
	
  Section
  3.09.  Definitive Certificates.

  	
   

  
	
  Section
  3.10.  Mutilated, Destroyed, Lost and Stolen Certificates

  	
   

  
	
  Section
  3.11.  Persons Deemed Owners

  	
   

  
	
  Section
  3.12.  Cancellation

  	
   

  
	
  Section
  3.13.  Creation of Treasury Units by Substitution of Treasury Securities

  	
   

  
	
  Section
  3.14.  Recreation of Corporate Units

  	
   

  

 

 

	
  Section
  3.15.  Transfer of Collateral Upon Occurrence of Termination Event

  	
   

  
	
  Section
  3.16.  No Consent to Assumption

  	
   

  
	
  Section
  3.17.  Substitutions

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  4

  
	
  THE
  SENIOR NOTES

  
	
   

  	
   

  
	
  Section
  4.01.  Interest Payments; Rights to Interest Payments Preserved

  	
   

  
	
  Section
  4.02.  Payments Prior to or on Purchase Contract Settlement Date

  	
   

  
	
  Section
  4.03.  Notice and Voting

  	
   

  
	
  Section
  4.04.  Special Event Redemption.

  	
   

  
	
  Section
  4.05.  Payments to Purchase Contract Agent

  	
   

  
	
  Section
  4.06.  Payments Held in Trust

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  5

  
	
  THE
  PURCHASE CONTRACTS

  
	
   

  	
   

  
	
  Section
  5.01.  Purchase of Shares of Common Stock

  	
   

  
	
  Section
  5.02.  Cash Settlement; Remarketing; Payment of Purchase Price.

  	
   

  
	
  Section
  5.03.  Issuance of Shares of Common Stock

  	
   

  
	
  Section
  5.04.  Adjustment of each Fixed Settlement Rate

  	
   

  
	
  Section
  5.05.  Notice of Adjustments and Certain Other Events

  	
   

  
	
  Section
  5.06.  Termination Event; Notice.

  	
   

  
	
  Section
  5.07.  Early Settlement

  	
   

  
	
  Section
  5.08.  No Fractional Shares

  	
   

  
	
  Section
  5.09.  Charges and Taxes

  	
   

  
	
  Section
  5.10.  Contract Adjustment Payments

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  6

  
	
  RIGHTS
  AND REMEDIES OF HOLDERS

  
	
   

  	
   

  
	
  Section
  6.01.  Unconditional Right of Holders to Receive Contract Adjustment
  Payments and To Purchase Shares of Common Stock

  	
   

  
	
  Section
  6.02.  Restoration of Rights and Remedies

  	
   

  
	
  Section
  6.03.  Rights and Remedies Cumulative

  	
   

  
	
  Section
  6.04.  Delay or Omission Not Waiver

  	
   

  
	
  Section
  6.05.  Undertaking for Costs

  	
   

  
	
  Section
  6.06.  Waiver of Stay or Extension Laws

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  7

  
	
  THE
  PURCHASE CONTRACT AGENT

  
	
   

  	
   

  
	
  Section
  7.01.  Certain Duties and Responsibilities.

  	
   

  
	
  Section
  7.02.  Notice of Default

  	
   

  
	
  Section
  7.03.  Certain Rights of Purchase Contract Agent.

  	
   

  
	
  Section
  7.04.  Not Responsible for Recitals or Issuance of Units

  	
   

  
	
  Section
  7.05.  May Hold Units

  	
   

  

 

ii

 

	
  Section
  7.06.  Money Held in Custody

  	
   

  
	
  Section
  7.07.  Compensation and Reimbursement.

  	
   

  
	
  Section
  7.08.  Corporate Purchase Contract Agent Required; Eligibility

  	
   

  
	
  Section
  7.09.  Resignation and Removal; Appointment of Successor

  	
   

  
	
  Section
  7.10.  Acceptance of Appointment by Successor

  	
   

  
	
  Section
  7.11.  Merger, Conversion, Consolidation or Succession to Business

  	
   

  
	
  Section
  7.12.  Preservation of Information; Communications to Holders

  	
   

  
	
  Section
  7.13.  No Obligations of Purchase Contract Agent

  	
   

  
	
  Section
  7.14.  Tax Compliance

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  8

  
	
  SUPPLEMENTAL
  AGREEMENTS

  
	
   

  	
   

  
	
  Section
  8.01.  Supplemental Agreements without Consent of Holders

  	
   

  
	
  Section
  8.02.  Supplemental Agreements with Consent of Holders

  	
   

  
	
  Section
  8.03.  Execution of Supplemental Agreements

  	
   

  
	
  Section
  8.04.  Effect of Supplemental Agreements

  	
   

  
	
  Section
  8.05.  Reference to Supplemental Agreements

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  9

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  
	
  Section
  9.01.  Covenant Not To Consolidate, Merge, Convey, Transfer or Lease
  Property except under Certain Conditions

  	
   

  
	
  Section
  9.02.  Rights and Duties of Successor Corporation

  	
   

  
	
  Section
  9.03.  Officers’ Certificate and Opinion of Counsel Given to Purchase
  Contract Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  10

  
	
  COVENANTS

  
	
   

  	
   

  
	
  Section
  10.01.  Performance under Purchase Contracts

  	
   

  
	
  Section
  10.02.  Maintenance of Office or Agency

  	
   

  
	
  Section
  10.03.  Company To Reserve Common Stock

  	
   

  
	
  Section
  10.04.  Covenants as to Common Stock; Listing

  	
   

  
	
  Section
  10.05.  Statements of Officers of the Company as to Default

  	
   

  
	
  Section
  10.06.  ERISA

  	
   

  
	
  Section
  10.07.  Tax Treatment

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  11

  
	
  PLEDGE

  
	
   

  	
   

  
	
  Section
  11.01.  Pledge

  	
   

  
	
  Section
  11.02.  Termination

  	
   

  

 

iii

 

	
  ARTICLE
  12

  
	
  ADMINISTRATION
  OF COLLATERAL

  
	
   

  	
   

  
	
  Section
  12.01.  Initial Deposit of Senior Notes

  	
   

  
	
  Section
  12.02.  Establishment of Collateral Account

  	
   

  
	
  Section
  12.03.  Treatment as Financial Assets

  	
   

  
	
  Section
  12.04.  Sole Control by Collateral Agent

  	
   

  
	
  Section
  12.05.  Jurisdiction

  	
   

  
	
  Section
  12.06.  No Other Claims

  	
   

  
	
  Section
  12.07.  Investment and Release

  	
   

  
	
  Section
  12.08.  Statements and Confirmations

  	
   

  
	
  Section
  12.09.  Tax Allocations

  	
   

  
	
  Section
  12.10.  No Other Agreements

  	
   

  
	
  Section
  12.11.  Powers Coupled with an Interest

  	
   

  
	
  Section
  12.12.  Waiver of Lien; Waiver of Set-off

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  13

  
	
  RIGHTS
  AND REMEDIES OF THE COLLATERAL AGENT

  
	
   

  	
   

  
	
  Section
  13.01.  Rights and Remedies of the Collateral Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  14

  
	
  REPRESENTATIONS
  AND WARRANTIES TO

  COLLATERAL AGENT; HOLDER COVENANTS

  
	
   

  	
   

  
	
  Section
  14.01.  Representations and Warranties

  	
   

  
	
  Section
  14.02.  Covenants

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  15

  
	
  THE
  COLLATERAL AGENT, THE CUSTODIAL AGENT AND THE SECURITIES INTERMEDIARY

  
	
   

  	
   

  
	
  Section
  15.01.  Appointment, Powers and Immunities

  	
   

  
	
  Section
  15.02.  Instructions of the Company

  	
   

  
	
  Section
  15.03.  Reliance by Collateral Agent, Custodial Agent and Securities
  Intermediary

  	
   

  
	
  Section
  15.04.  Certain Rights

  	
   

  
	
  Section
  15.05.  Merger, Conversion, Consolidation or Succession to Business

  	
   

  
	
  Section
  15.06.  Rights in Other Capacities

  	
   

  
	
  Section
  15.07.  Non-reliance on the Collateral Agent, Custodial Agent and Securities
  Intermediary

  	
   

  
	
  Section
  15.08.  Compensation and Indemnity

  	
   

  
	
  Section
  15.09.  Failure to Act

  	
   

  
	
  Section
  15.10.  Resignation of Collateral Agent, the Custodial Agent and the
  Securities Intermediary

  	
   

  
	
  Section
  15.11.  Right to Appoint Agent or Advisor

  	
   

  
	
  Section
  15.12.  Survival

  	
   

  
	
  Section
  15.13.  Exculpation

  	
   

  
	
  Section
  15.14.  Expenses, Etc

  	
   

  

 

iv

 

	
  ARTICLE
  16

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section
  16.01.  Security Interest Absolute

  	
   

  
	
  Section
  16.02.  Notice of Special Event, Special Event Redemption and Termination
  Event

  	
   

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
  Exhibit A – Form of Corporate Units
  Certificate

  	
   

  
	
  Exhibit B – Form of Treasury Units
  Certificate

  	
   

  
	
  Exhibit C – Instruction to Purchase
  Contract Agent From Holder to Create Treasury Units or Corporate Units

  	
   

  
	
  Exhibit D – Notice from Purchase Contract
  Agent to Holders Upon Termination Event

  	
   

  
	
  Exhibit E – Notice to Settle by Separate
  Cash

  	
   

  
	
  Exhibit F – Reserved

  	
   

  
	
  Exhibit G – Instruction from Purchase
  Contract Agent to Collateral Agent (Creation of Treasury Units)

  	
   

  
	
  Exhibit H – Instruction from the Collateral
  Agent to the Securities Intermediary (Creation of Treasury Units)

  	
   

  
	
  Exhibit I – Instruction from Purchase
  Contract Agent to Collateral Agent (Recreation of Corporate Units)

  	
   

  
	
  Exhibit J – Instruction from Collateral
  Agent to Securities Intermediary (Recreation of Corporate Units)

  	
   

  
	
  Exhibit K – Notice of Cash Settlement from
  Collateral Agent to Purchase Contract Agent

  	
   

  
	
  Exhibit L – Instruction to Custodial Agent
  Regarding Remarketing

  	
   

  
	
  Exhibit M – Instruction to Custodial Agent
  Regarding Withdrawal from Remarketing

  	
   

  

 

v

 

PURCHASE CONTRACT AND PLEDGE
AGREEMENT, dated as of May [•], 2004, among Genworth Financial, Inc., a Delaware corporation (the “Company”), The Bank of New York, a New York
banking corporation, acting as purchase contract agent for, and as
attorney-in-fact of, the Holders from time to time of the Units (in such
capacities, together with its successors and assigns in such capacities, the “Purchase Contract Agent”), and The Bank of
New York, as collateral agent hereunder for the benefit of the Company (in such
capacity, together with its successors in such capacity, the “Collateral Agent”), as custodial agent (in
such capacity, together with its successors in such capacity, the “Custodial Agent”), and as securities
intermediary (as defined in Section 8-102(a)(14) of the UCC) with respect to
the Collateral Account (in such capacity, together with its successors in such
capacity, the “Securities Intermediary”).

RECITALS

WHEREAS, the Company has
duly authorized the execution and delivery of this Agreement and the Certificates
evidencing the Units;

 

WHEREAS, all things
necessary to make the Purchase Contracts, when the Certificates are executed by
the Company and authenticated, executed on behalf of the Holders and delivered
by the Purchase Contract Agent, as provided in this Agreement, the valid
obligations of the Company, and to constitute these presents a valid agreement
of the Company, in accordance with its terms, have been done;

 

WHEREAS, pursuant to the
terms of this Agreement and the Purchase Contracts, the Holders of the Units
have irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of
such Holders, among other things, to execute and deliver this Agreement on
behalf of such Holders and to grant the Pledge provided herein of the
Collateral to secure the Obligations.

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Definitions.  For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

 

(a)           the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the
singular, and nouns and pronouns of the masculine gender include the feminine
and neuter genders;

 

(b)           all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles in the United States;

 

(c)           the words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any
particular Article, Section, Exhibit or other subdivision;

 

1

 

(d)           the following terms which are defined in the UCC shall
have the meanings set forth therein: “certificated
security,” “control,” “financial asset,” “entitlement order,” “securities account” and “security entitlement”; and

 

(e)           the following terms have the meanings given to them in
this Section 1.01(e):

 

“Accounting Event” has the meaning set forth in the
Supplemental Indenture.

 

“Act” has the meaning, with respect to any Holder, set forth in
Section 1.04.

 

“Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. 
For the purposes of this definition, “control” when used with respect to
any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Agreement” means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

 

“Applicable Market Value” has the meaning set forth in Section
5.01(a).

 

“Applicable Ownership Interest in the Treasury Portfolio” shall
mean, with respect to a Corporate Unit and the Treasury Portfolio, (i) a 2.5%
undivided beneficial ownership interest in $1,000 face amount of U.S. treasury
securities (or principal or interest strips thereof) included in such Treasury
Portfolio that matures on or prior to May 15, 2007, and (ii) for each scheduled
Payment Date on the Senior Notes that occurs after the Special Event Redemption
Date to and including the Purchase Contract Settlement Date, a [•]% undivided
beneficial ownership interest in $1,000 face amount of U.S. treasury securities
(or principal or interest strips thereof) included in such Treasury Portfolio
that mature on or prior to the Business Day immediately preceding such
scheduled Payment Date.

 

“Applicable Ownership Interest in Senior Notes” means, a 2.5%
undivided beneficial ownership interest in $1,000 principal amount of Senior
Notes that is a component of a Corporate Unit, and “Applicable Ownership Interests in Senior Notes” means the
aggregate of each Applicable Ownership Interest in Senior Notes that is a
component of each Corporate Unit then Outstanding.

 

“Applicants” has the meaning set forth in Section 7.12(b).

 

“Bankruptcy Code” means Title 11 of the United States Code, or
any other law of the United States that from time to time provides a uniform
system of bankruptcy laws.

 

“Beneficial Owner” means, with respect to a Book-Entry
Interest, a Person who is the beneficial owner of such Book-Entry Interest as
reflected on the books of the Depositary or on the books of a Person
maintaining an account with such Depositary

 

2

 

(directly as a Depositary Participant or as
an indirect participant, in each case in accordance with the rules of such
Depositary).

 

“Board of Directors” means the board of directors of the
Company or a duly authorized committee of that board.

 

“Board Resolution” means one or more resolutions of the Board
of Directors, a copy of which has been certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification
and delivered to the Purchase Contract Agent.

 

“Book-Entry Interest” means a beneficial interest in a Global
Certificate, registered in the name of a Depositary or a nominee thereof,
ownership and transfers of which shall be maintained and made through book
entries by such Depositary as described in Section 3.06.

 

“Business Day” means any day other than a Saturday or Sunday or
any other day on which banking institutions in New York City, New York are
authorized or required by law or executive order to remain closed; provided
that for purposes of the second paragraph of Section 1.12 only, the term
“Business Day” shall also be deemed to exclude any day on which the Depositary
is closed.

 

“Cash” means any coin or currency of the United States as at
the time shall be legal tender for payment of public and private debts.

 

“Cash Merger” has the meaning set forth in Section 5.04(b)(ii).

 

“Cash Merger Early Settlement” has the meaning set forth in
Section 5.04(b)(ii).

 

“Cash Merger Early Settlement Date” has the meaning set forth
in Section 5.04(b)(ii).

 

“Cash Settlement” has the meaning set forth in Section
5.02(a)(i).

 

“Certificate” means a Corporate Units Certificate or a Treasury
Units Certificate, as the case may be.

 

“Closing Price” has the meaning set forth in Section 5.01(a).

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Collateral” means the collective reference to:

 

(i)  the Collateral Account and all investment
property and other financial assets from time to time credited to the
Collateral Account and all security entitlements with respect thereto,
including, without limitation, (A) the Applicable Ownership Interests in Senior
Notes and security entitlements relating thereto (and the Senior Notes and
security entitlements relating thereto delivered to the Collateral Agent in
respect of such Applicable Ownership Interests in Senior

 

3

 

Notes), (B) the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of
the definition of such term) and security entitlements relating thereto, (C)
any Treasury Securities and security entitlements relating thereto Transferred
to the Securities Intermediary from time to time in connection with the
creation of Treasury Units in accordance with Section 3.13 hereof and (D)
payments made by Holders pursuant to Section 5.02 hereof;

 

(ii)  all Proceeds of any of the foregoing (whether
such Proceeds arise before or after the commencement of any proceeding under
any applicable bankruptcy, insolvency or other similar law, by or against the
pledgor or with respect to the pledgor); and

 

(iii)  all powers and rights now owned or hereafter
acquired under or with respect to the Collateral.

 

“Collateral Account” means the securities account of The Bank
of New York,  as Collateral Agent,  maintained on the books of the Securities
Intermediary and designated “The Bank of New York, as Collateral Agent of
Genworth Financial, Inc., as pledgee of The Bank of New York, as the Purchase
Contract Agent on behalf of and as attorney-in-fact for the Holders”.

 

“Collateral Agent” means the Person named as “Collateral Agent”
in the first paragraph of this Agreement until a successor Collateral Agent
shall have become such pursuant to this Agreement, and thereafter “Collateral
Agent” shall mean the Person who is then the Collateral Agent hereunder.

 

“collateral event of default” has the meaning set forth in Section
13.01(b).

 

“Collateral Substitution” means (i) with respect to the
Corporate Units, (x) the substitution of the Pledged Applicable Ownership
Interests in Senior Notes included in such Corporate Units with Treasury
Securities in an aggregate principal amount at maturity equal to the aggregate
principal amount of such Pledged Applicable Ownership Interests in Senior
Notes, or (y) the substitution of the Pledged Applicable Ownership Interests in
the Treasury Portfolio included in such Corporate Units with Treasury
Securities in an aggregate principal amount at maturity equal to such Pledged
Applicable Ownership Interests in the Treasury Portfolio, or (ii) with respect
to the Treasury Units, (x) the substitution of the Pledged Treasury Securities
included in such Treasury Units (if the Applicable Ownership Interests in the
Treasury Portfolio have not replaced the Applicable Ownership Interests in
Senior Notes as a component of the Corporate Units) with Senior Notes in an
aggregate principal amount equal to the aggregate principal amount at stated
maturity of the Pledged Treasury Securities, or (y) the substitution of the
Pledged Treasury Securities included in such Treasury Units (if the Applicable
Ownership Interests in the Treasury Portfolio have replaced the Applicable
Ownership Interests in Senior Notes as a component of the Corporate Units) with
the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition thereof).

 

“Common Stock” means the Class A common stock, $0.001 par
value, of the Company.

 

4

 

“Company” means the Person named as the “Company” in the first
paragraph of this instrument until a successor shall have become such pursuant
to the applicable provision of this Agreement, and thereafter “Company” shall
mean such successor.

 

“Constituent Person” has the meaning set forth in Section
5.04(b)(i).

 

“Contract Adjustment Payments” means the payments payable by
the Company on the Special Payment Date or the Payment Dates in respect of each
Purchase Contract, at a rate per year of [•]% of the Stated Amount per Purchase
Contract.

 

“Corporate Trust Office” means the office of the Purchase
Contract Agent at which, at any particular time, its corporate trust business
shall be principally administered, which office at the date hereof is located
at 101 Barclay Street, 8W, New York, NY 10286 Attention: [•].

 

“Corporate Unit” means the collective rights and obligations of
a Holder of a Corporate Units Certificate in respect of the Applicable
Ownership Interests in Senior Notes or the Applicable Ownership Interests in
the Treasury Portfolio, as the case may be, subject in each case (except that
the Applicable Ownership Interests in the Treasury Portfolio as specified in clause
(ii) of the definition of such term shall not be subject to the Pledge) to the
Pledge thereof, and the related Purchase Contract.

 

“Corporate Units Certificate” means a certificate evidencing
the rights and obligations of a Holder in respect of the number of Corporate
Units specified on such certificate.

 

“Coupon Rate” has the meaning set forth in the Supplemental
Indenture.

 

 “Current Market Price”
means, in respect of a share of Common Stock on any date of determination, the
average of the daily Closing Prices for the 20 consecutive Trading Days ending
the earlier of the day in question and the day before the “ex date” with
respect to the issuance or distribution requiring such computation.  For purposes of this definition, the term
“ex date,” when used with respect to any issuance or distribution, shall mean
the first date on which Common Stock trades regular way on such exchange or in
such market without the right to receive such issuance or distribution.

 

“Custodial Agent” means the Person named as Custodial Agent in
the first Paragraph of this Agreement until a successor Custodial Agent shall
have become such pursuant to the applicable provisions of this Agreement, and
thereafter “Custodial Agent” shall mean the Person who is then the Custodial
Agent hereunder.

 

“Depositary” means a clearing agency registered under Section
17A of the Exchange Act that is designated to act as Depositary for the Units
as contemplated by Sections 3.06 and 3.08.

 

“Depositary Participant” means a broker, dealer, bank, other
financial institution or other Person for whom from time to time the Depositary
effects book entry transfers and pledges of securities deposited with the
Depositary.

 

5

 

“Distributed Property” has the meaning set forth in Section
5.04(a)(iv).

 

“Dividend Threshold Amount” has the meaning set forth in
Section 5.04(a)(v).

 

“DTC” means The Depository Trust Company.

 

“Early Settlement” has the meaning set forth in Section
5.07(a).

 

“Early Settlement Amount” has the meaning set forth in Section
5.07(b).

 

“Early Settlement Date” has the meaning set forth in Section
5.07(b).

 

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

 

“Exchange Act” means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time, and the
rules and regulations promulgated thereunder.

 

“Exchange Property” has the meaning set forth in Section
5.04(b)(i).

 

“Ex-Dividend Date” has the meaning set forth in Section 5.04(a)(iv).

 

“Expiration Date” has the meaning set forth in Section 1.04(e).

 

“Expiration Time” has the meaning set forth in Section
5.04(a)(vi).

 

“Failed Final Remarketing” has the meaning set forth in Section
5.02(b)(v).

 

“Failed Remarketing” has the meaning set forth in Section
5.02(b)(iii).

 

“Final Remarketing Date” means the third Business Day
immediately preceding the Purchase Contract Settlement Date.

 

“Fixed Settlement Rate” means each of the Minimum Settlement
Rate and the Maximum Settlement Rate.

 

“Global Certificate” means a Certificate that evidences all or
part of the Units and is registered in the name of the Depositary or a nominee
thereof.

 

“Holder” means, with respect to a Unit, the Person in whose
name the Unit evidenced by a Certificate is registered in the Security
Register.

 

“Indenture” means the Indenture, dated as of [May
[       ]], 2004, between the Company and
the Indenture Trustee (including any provisions of the TIA that are deemed
incorporated therein), as amended and supplemented by the Supplemental
Indenture pursuant to which the Senior Notes will be issued.

 

“Indemnitees” has the meaning set forth in Section 7.07(c).

 

6

 

“Indenture Trustee” means The Bank of New York, a New York banking
corporation, as trustee under the Indenture, or any successor thereto as
described in the Indenture.

 

“Initial Remarketing Date” means the fifth Business Day
immediately preceding the Purchase Contract Settlement Date.

 

“Issuer Order” or “Issuer
Request” means a written order or request signed in the name of the
Company by (i) either its Chief Executive Officer, its President or one of its
Vice Presidents, and (ii) either its Corporate Secretary or one of its
Assistant Corporate Secretaries or its Treasurer or one of its Assistant
Treasurers, and delivered to the Purchase Contract Agent.

 

“Losses” has the meaning set forth in Section 15.08(b).

 

“Maximum Settlement Rate” has the meaning set forth in Section
5.01(a).

 

“Minimum Settlement Rate” has the meaning set forth in Section
5.01(a).

 

 “non-electing share”
has the meaning set forth in Section 5.04(b)(i).

 

“NYSE” has the meaning set forth in Section 5.01(a).

 

“Obligations” means, with respect to each Holder, all
obligations and liabilities of such Holder under such Holder’s Purchase
Contract and this Agreement or any other document made, delivered or given in
connection herewith or therewith, in each case whether on account of principal,
interest (including, without limitation, interest accruing before and after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to such Holder, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding),
fees, indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Company or the Collateral Agent or
the Securities Intermediary that are required to be paid by the Holder pursuant
to the terms of any of the foregoing agreements).

 

“Officers’ Certificate” means a certificate signed by (i)
either the Company’s Chief Executive Officer, its President or one of its Vice
Presidents, and (ii) either the Company’s Corporate Secretary or one of its
Assistant Corporate Secretaries or its Treasurer or one of its Assistant
Treasurers, and delivered to the Purchase Contract Agent. Any Officers’
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Agreement (other than the Officers’ Certificate provided
for in Section 10.05) shall include the information set forth in Section 1.02
hereof.

 

“Opinion of Counsel” means a written opinion of counsel, who
may be counsel to the Company (and who may be an employee of the Company), and
who shall be reasonably acceptable to the Purchase Contract Agent.  An opinion of counsel may rely on
certificates as to matters of fact.

 

7

 

“Outstanding” means, as of any date of determination, all Units
evidenced by Certificates theretofore authenticated, executed and delivered
under this Agreement, except:

 

(i)  all Units, if a Termination Event has
occurred;

 

(ii)  Units evidenced by Certificates theretofore
cancelled by the Purchase Contract Agent or delivered to the Purchase Contract
Agent for cancellation or deemed cancelled pursuant to the provisions of this
Agreement; and

 

(iii)  Units evidenced by Certificates in exchange
for or in lieu of which other Certificates have been authenticated, executed on
behalf of the Holder and delivered pursuant to this Agreement, other than any
such Certificate in respect of which there shall have been presented to the
Purchase Contract Agent proof satisfactory to it that such Certificate is held
by a protected purchaser in whose hands the Units evidenced by such Certificate
are valid obligations of the Company;

 

provided, however,
that in determining whether the Holders of the requisite number of the Units
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Units owned by the Company or any Affiliate of the Company
shall be disregarded and deemed not to be Outstanding Units, except that, in
determining whether the Purchase Contract Agent shall be authorized and
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Units that a Responsible Officer of the
Purchase Contract Agent actually knows to be so owned shall be so disregarded.
Units so owned that have been pledged in good faith may be regarded as
Outstanding Units if the pledgee establishes to the satisfaction of the
Purchase Contract Agent the pledgee’s right so to act with respect to such
Units and that the pledgee is not the Company or any Affiliate of the Company.

 

“Payment Date” means each February 16, May 16, August 16 and
November 16 of each year, commencing August 16, 2004.

 

“Permitted Investments” means any one of the following, in each
case maturing on the Business Day following the date of acquisition:

 

(1)           any evidence of indebtedness with an
original maturity of 365 days or less issued, or directly and fully guaranteed
or insured, by the United States of America or any agency or instrumentality
thereof (provided that the full
faith and credit of the United States of America is pledged in support of the
timely payment thereof or such indebtedness constitutes a general obligation of
it);

 

(2)           deposits, certificates of deposit or
acceptances with an original maturity of 365 days or less of any institution
which is a member of the Federal Reserve System having combined capital and
surplus and undivided profits of not less than $500 million at the time of
deposit (and which may include the Collateral Agent);

 

8

 

(3)           investments with an original maturity
of 365 days or less of any Person that is fully and unconditionally guaranteed
by a bank referred to in clause (2);

 

(4)           repurchase agreements and reverse
repurchase agreements relating to marketable direct obligations issued or
unconditionally guaranteed by the United States of America or issued by any
agency thereof and backed as to timely payment by the full faith and credit of
the United States of America;

 

(5)           investments in commercial paper,
other than commercial paper issued by the Company or its affiliates, of any
corporation incorporated under the laws of the United States or any State
thereof, which commercial paper has a rating at the time of purchase at least
equal to “A-1” by Standard &
Poor’s Ratings Services (“S&P”)
or at least equal to “P-1” by
Moody’s Investors Service, Inc. (“Moody’s”);
and

 

(6)           investments in money market funds
(including, but not limited to, money market funds managed by the Collateral
Agent or an affiliate of the Collateral Agent) registered under the Investment
Company Act of 1940, as amended, rated in the highest applicable rating
category by S&P or Moody’s.

 

“Person” means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint-stock
company, limited liability company, trust, unincorporated organization or
government or any agency or political subdivision thereof or any other entity
of whatever nature.

 

“Plan” means an employee benefit plan that is subject to ERISA,
a plan or individual retirement account that is subject to Section 4975 of the
Code or any entity whose assets are considered assets of any such plan.

 

“Pledge” means the lien and security interest in the Collateral
created by this Agreement.

 

“Pledged Applicable Ownership Interests in Senior Notes” means
the Applicable Ownership Interests in Senior Notes and security entitlements
with respect thereto from time to time credited to the Collateral Account and
not then released from the Pledge.

 

“Pledged Applicable Ownership Interests in the Treasury Portfolio”
means the Applicable Ownership Interests in the Treasury Portfolio (as
specified in clause (i) of the definition thereof) and security entitlements
with respect thereto from time to time credited to the Collateral Account and
not then released from the Pledge.

 

“Pledged Securities” means the Pledged Applicable Ownership
Interests in Senior Notes, the Pledged Applicable Ownership Interests in the
Treasury Portfolio and the Pledged Treasury Securities, collectively.

 

9

 

“Pledged Treasury Securities” means Treasury Securities and
security entitlements with respect thereto from time to time credited to the
Collateral Account and not then released from the Pledge.

 

“Pledge Indemnitees” has the meaning set forth in Section
15.08(b).

 

“Predecessor Certificate” means a Predecessor Corporate Units
Certificate or a Predecessor Treasury Units Certificate.

 

“Predecessor Corporate Units Certificate” of any particular
Corporate Units Certificate means every previous Corporate Units Certificate
evidencing all or a portion of the rights and obligations of the Company and
the Holder under the Corporate Units evidenced thereby; and, for the purposes
of this definition, any Corporate Units Certificate authenticated and delivered
under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost
or stolen Corporate Units Certificate shall be deemed to evidence the same
rights and obligations of the Company and the Holder as the mutilated,
destroyed, lost or stolen Corporate Units Certificate.

 

“Predecessor Treasury Units Certificate” of any particular
Treasury Units Certificate means every previous Treasury Units Certificate
evidencing all or a portion of the rights and obligations of the Company and
the Holder under the Treasury Units evidenced thereby; and, for the purposes of
this definition, any Treasury Units Certificate authenticated and delivered
under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost
or stolen Treasury Units Certificate shall be deemed to evidence the same
rights and obligations of the Company and the Holder as the mutilated,
destroyed, lost or stolen Treasury Units Certificate.

 

“Pro Rata” shall mean pro rata to each Holder according to the
aggregate Stated Amount of the Units held by such Holder in relation to the
aggregate Stated Amount of all Units outstanding.

 

“Proceeds” has the meaning ascribed thereto in the UCC and
includes, without limitation, all interest, dividends, cash, instruments,
securities, financial assets and other property received, receivable or
otherwise distributed upon the sale (including, without limitation, any
Remarketing), exchange, collection or disposition of any financial assets from
time to time credited to the Collateral Account.

 

“Prospectus” means the prospectus relating to the delivery of
shares or any securities in connection with an Early Settlement pursuant to
Section 5.07 or a Cash Merger Early Settlement of Purchase Contracts pursuant
to Section 5.04(b)(ii), in the form in which first filed, or transmitted for
filing, with the Securities and Exchange Commission after the effective date of
the Registration Statement pursuant to Rule 424(b) under the Securities Act,
including the documents incorporated by reference therein as of the date of
such Prospectus.

 

“Purchase Contract” means, with respect to any Unit, the
contract forming a part of such Unit and obligating the Company to (i) sell,
and the Holder of such Unit to purchase, shares of Common Stock and (ii) pay
the Holder thereof Contract Adjustment

 

10

 

Payments, in each case on the terms and
subject to the conditions set forth in Article 5 hereof.

 

“Purchase Contract Agent” means the Person named as the
“Purchase Contract Agent” in the first paragraph of this Agreement until a
successor Purchase Contract Agent shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter “Purchase Contract
Agent” shall mean such Person or any subsequent successor who is appointed
pursuant to this Agreement.

 

“Purchase Contract Settlement Date” means May 16, 2007.

 

“Purchase Contract Settlement Fund” has the meaning set forth
in Section 5.03.

 

“Purchase Price” has the meaning set forth in Section 5.01(a).

 

“Purchased Shares” has the meaning set forth in Section
5.04(a)(vi).

 

“Put Right” has the meaning set forth in Section 8.05(a) of the
Supplemental Indenture.

 

“Quotation Agent” has the meaning set forth in the Supplemental
Indenture.

 

“Record Date” for any distribution and any Contract Adjustment
Payment payable on any Payment Date means the first day of the calendar month
in which the relevant Payment Date falls.

 

“Redemption Amount” has the meaning set forth in the
Supplemental Indenture.

 

“Redemption Price” has the meaning set forth in the
Supplemental Indenture.

 

“Reference Price” has the meaning set forth in Section 5.01(a).

 

“Registration Statement” means a registration statement under
the Securities Act prepared by the Company covering, inter alia, the delivery by the Company of any securities in
connection with an Early Settlement on the Early Settlement Date or a Cash
Merger Early Settlement of Purchase Contracts on the Cash Merger Early
Settlement Date under Section 5.04(b)(ii), including all exhibits thereto and
the documents incorporated by reference in the prospectus contained in such
registration statement, and any post-effective amendments thereto.

 

“Remarketing” has the meaning set forth in the Remarketing
Agreement.

 

“Remarketing Agent” has the meaning set forth in Section 1.01
of the Supplemental Indenture.

 

“Remarketing Agreement” has the meaning set forth in Section
1.01 of the Supplemental Indenture.

 

11

 

“Remarketing Date” means any of the Initial Remarketing Date,
the Second Remarketing Date or the Final Remarketing Date.

 

“Remarketing Fee” has the meaning set forth in the Remarketing
Agreement.

 

“Remarketing Price” has the meaning set forth in Section
5.02(b)(iii).

 

“Reorganization Event” has the meaning set forth in Section
5.04(b)(i).

 

“Reset Rate” has the meaning set forth in the Remarketing
Agreement.

 

“Responsible Officer” means, when used with respect to the
Purchase Contract Agent, any officer of the Purchase Contract Agent within the
Corporate Trust Division-Corporate Finance Unit (or any successor unit,
department or division of the Purchase Contract Agent) located at the Corporate
Trust Office of the Purchase Contract Agent who has direct responsibility for
the administration of the Agreement and for the purposes of Section 7.03(a),
also means, with respect to a particular corporate trust matter, any other
officer, trust officer or person performing similar functions to whom such
matter is referred because of his or her knowledge of and familiarity of the
particular subject.

 

“Restrictive Legend” means a legend to the following effect:

 

THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS.  THIS SECURITY MAY NOT
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

 

“Rights” has the meaning set forth in Section 5.04(a)(xi).

 

“Second Remarketing Date” means the fourth Business Day
immediately preceding the Purchase Contract Settlement Date.

 

“Securities Act” means the Securities Act of 1933 and any
statute successor thereto, in each case as amended from time to time, and the
rules and regulations promulgated thereunder.

 

“Securities Intermediary” means the Person named as Securities
Intermediary in the first Paragraph of this Agreement until a successor
Securities Intermediary shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter “Securities Intermediary” shall
mean such successor or any subsequent successor.

 

“Security Register” and “Securities
Registrar” have the respective meanings set forth in Section 3.05.

 

“Senior Indebtedness” means indebtedness of any kind of the
Company unless the instrument under which such indebtedness is incurred
expressly provides that it is on a

 

12

 

parity in right of payment with or
subordinate in right of payment to the Contract Adjustment Payments.

 

“Senior Notes” means the series of notes designated the [   ]% Senior Notes due 2009 of the Company.

 

“Separate Senior Notes” means Senior Notes that have been
released from the Pledge following Collateral Substitution and therefore no
longer underlie Corporate Units.

 

“Settlement Rate” has the meaning set forth in Section 5.01(a).

 

“Special Event” has the meaning set forth in the Supplemental
Indenture.

 

“Special Event Redemption” has the meaning set forth in the
Supplemental Indenture.

 

“Special Event Redemption Date” has the meaning set forth in
the Supplemental Indenture.

 

“Special Payment Date” has the meaning set forth in Section
5.10.

 

“Stated Amount” means $25.

 

“Successful Remarketing” has the meaning set forth in Section
5.02(b)(iv).

 

“Supplemental Indenture” means the Supplemental Indenture No. 1
dated as of the date hereof between the Company and the Indenture Trustee
pursuant to which the Senior Notes are issued.

 

“Tax Event” has the meaning set forth in the Supplemental
Indenture.

 

“Termination Date” means the date, if any, on which a
Termination Event occurs.

 

“Termination Event” means the occurrence of any of the
following events:

 

(i)  at any time on or prior to the Purchase
Contract Settlement Date, a decree or order by a court having jurisdiction in
the premises shall have been entered adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization of
the Company under the Bankruptcy Code or any other similar applicable Federal
or state law and if such judgment, decree or order shall have been entered more
than 60 days prior to the Purchase Contract Settlement Date, such decree or
order shall have continued undischarged and unstayed for a period of 60 days;

 

(ii)  at any time on or prior to the Purchase
Contract Settlement Date, a decree or order of a court having jurisdiction in
the premises for the appointment of a receiver or liquidator or trustee or
assignee (or other similar official) in bankruptcy or insolvency of the Company
or of all or substantially all of its property, or for the winding up or
liquidation of its affairs, shall have been entered

 

13

 

and if such decree or order
shall have been entered more than 60 days prior to the Purchase Contract
Settlement Date, such judgment, decree or order shall have continued
undischarged and unstayed for a period of 60 days; or

 

(iii)
at any time on or prior to the Purchase Contract Settlement Date, the Company
shall institute proceedings to be adjudicated a voluntary bankrupt, or shall
consent to the filing of a bankruptcy proceeding against it, or shall file a
petition or answer or consent seeking reorganization under the Bankruptcy Code
or any other similar applicable Federal or state law, or shall consent to the
filing of any such petition, or shall consent to the appointment of a receiver
or liquidator or trustee or assignee (or other similar official) in bankruptcy
or insolvency of it or of its property, or shall make an assignment for the
benefit of creditors, or shall admit in writing its inability to pay its debts
generally as they become due.

 

“Threshold Appreciation Price” has the meaning set forth in
Section 5.01(a).

 

“TIA” means the Trust Indenture Act of 1939, as amended from
time to time, or any successor legislation.

 

“TRADES” means the Treasury/Reserve Automated Debt Entry System
maintained by the Federal Reserve Bank of New York pursuant to the TRADES
Regulations.

 

“TRADES Regulations” means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357, as amended from
time to time.  Unless otherwise defined
herein, all terms defined in the TRADES Regulations are used herein as therein
defined.

 

“Trading Day” has the meaning set forth in Section 5.01(a).

 

“Transfer” means (i) in the case of certificated securities in
registered form, delivery as provided in Section 8-301(a) of the UCC, indorsed
to the transferee or in blank by an effective endorsement; (ii) in the case of
Treasury Securities, registration of the transferee as the owner of such
Treasury Securities on TRADES; and (iii) in the case of security entitlements,
including, without limitation, security entitlements with respect to Treasury
Securities, a securities intermediary indicating by book entry that such
security entitlement has been credited to the transferee’s securities account.

 

“Treasury Portfolio” has the meaning set forth in the
Supplemental Indenture.

 

“Treasury Portfolio Purchase Price” has the meaning set forth
in the Supplemental Indenture.

 

 “Treasury Securities”
means zero-coupon U.S. treasury securities that mature on May 15, 2007 (CUSIP
No. 912828AC4).

 

“Treasury Unit” means, following the substitution of Treasury
Securities for Pledged Applicable Ownership Interests in Senior Notes or
Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case
may be, as collateral to secure a Holder’s

 

14

 

obligations under the Purchase Contract, the
collective rights and obligations of a Holder of a Treasury Units Certificate
in respect of such Treasury Securities, subject to the Pledge thereof, and the
related Purchase Contract.

 

“Treasury Units Certificate” means a certificate evidencing the
rights and obligations of a Holder in respect of the number of Treasury Units
specified on such certificate.

 

“Trigger Event” has the meaning set forth in Section
5.04(a)(iv).

 

“UCC” means the Uniform Commercial Code as in effect in the
State of New York from time to time.

 

“Underwriters” means the underwriters identified in Schedule 1
to the Underwriting Agreement.

 

“Underwriting Agreement” means the Underwriting Agreement,
dated May [•], 2004, among
the Company, GE Financial Assurance Holdings, Inc. and Morgan Stanley & Co.
Incorporated and Goldman, Sachs & Co., as representative of the
Underwriters, relating to the sale of Corporate Units by GE Financial Assurance
Holdings, Inc.

 

“Unit” means a Corporate Unit or a Treasury Unit, as the case
may be.

 

“Units  Prospectus”
means the registration statement, as amended, filed with the Securities and
Exchange Commission (File No. [    ])
and the prospectus contained therein dated May [·], 2004, describing, among
other things, the terms of the Units.

 

 “Value” means, with
respect to any item of Collateral on any date, as to (1) Cash, the amount
thereof, (2) Treasury Securities, the aggregate principal amount thereof at
maturity, (3) Applicable Ownership Interests in the Treasury Portfolio (as specified
in clause (i) of the definition of such term), the appropriate aggregate
percentage of the aggregate principal amount at maturity of the Treasury
Portfolio and (4) Applicable Ownership Interests in Senior Notes, the
appropriate aggregate percentage of the aggregate principal amount at maturity
of the underlying Senior Notes.

 

“Vice President” means any vice president, whether or not
designated by a number or a word or words added before or after the title “vice
president.”

 

Section 1.02.  Compliance Certificates and Opinions.  Except as
otherwise expressly provided by this Agreement, upon any application or request
by the Company to the Purchase Contract Agent to take any action in accordance
with any provision of this Agreement, the Company shall furnish to the Purchase
Contract Agent an Officers’ Certificate stating that all conditions precedent,
if any, provided for in this Agreement relating to the proposed action have
been complied with and, if requested by the Purchase Contract Agent, an Opinion
of Counsel stating that, in the opinion of such counsel, all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required

 

15

 

by any provision of this Agreement relating
to such particular application or request, no additional certificate or opinion
need be furnished.

 

Every certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Agreement (other than the Officers’ Certificate provided for in Section 10.05)
shall include:

 

(i)            a statement that each individual
signing such certificate or opinion has read such covenant or condition and the
definitions herein relating thereto;

 

(ii)           a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based;

 

(iii)          a statement that, in the opinion of each
such individual, he or she has made such examination or investigation as is
necessary to enable such individual to express an informed opinion as to
whether or not such covenant or condition has been complied with; and

 

(iv)          a statement as to whether, in the
opinion of each such individual, such condition or covenant has been complied
with.

 

Section 1.03.  Form of Documents Delivered to Purchase Contract Agent.

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents. Any certificate or opinion of an officer
of the Company may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which its
certificate or opinion is based are erroneous. 
Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company unless such counsel
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

 

Where any Person is required
to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Agreement,
they may, but need not, be consolidated and form one instrument.

 

Section 1.04.  Acts of Holders; Record Dates. 
(a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Agreement to be given or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent

 

16

 

duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Purchase Contract Agent
and, where it is hereby expressly required, to the Company.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders
signing such instrument or instruments. 
Proof of execution of any such instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Agreement and (subject
to Section 7.01) conclusive in favor of the Purchase Contract Agent and the
Company, if made in the manner provided in this Section.

 

(b)           The fact and date of the execution by any Person of any
such instrument or writing may be proved in any manner that the Purchase
Contract Agent deems sufficient.

 

(c)           The ownership of Units shall be proved by the Security
Register.

 

(d)           Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Unit shall bind every future
Holder of the same Unit and the Holder of every Certificate evidencing such
Unit issued upon the registration of transfer thereof or in exchange therefor
or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Purchase Contract Agent or the Company in reliance thereon, whether or
not notation of such action is made upon such Certificate.

 

(e)           The Company may set any date as a record date for the
purpose of determining the Holders of Outstanding Units entitled to give, make
or take any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Agreement to be given, made or
taken by Holders.  If any record date is
set pursuant to this paragraph, the Holders of the Outstanding Corporate Units
and the Outstanding Treasury Units, as the case may be, on such record date, and
no other Holders, shall be entitled to take the relevant action with respect to
the Corporate Units or the Treasury Units, as the case may be, whether or not
such Holders remain Holders after such record date; provided that no such action shall be effective hereunder
unless taken prior to or on the applicable Expiration Date by Holders of the
requisite number of Outstanding Units on such record date.  Nothing contained in this paragraph shall be
construed to prevent the Company from setting a new record date for any action
for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no
action by any Person be cancelled and be of no effect), and nothing contained
in this paragraph shall be construed to render ineffective any action taken by
Holders of the requisite number of Outstanding Units on the date such action is
taken.  Promptly after any record date
is set pursuant to this paragraph, the Company, at its own expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Purchase Contract Agent in writing and to
each Holder in the manner set forth in Section 1.06.

 

With respect to any record
date set pursuant to this Section 1.04(e), the Company may designate any date
as the “Expiration Date” and from
time to time may change the Expiration Date to any later day; provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the
Purchase Contract Agent in writing, and to each Holder in the manner set forth
in Section 1.06, prior to or on the

 

17

 

existing Expiration Date. If an Expiration
Date is not designated with respect to any record date set pursuant to this
Section, the Company shall be deemed to have initially designated the 180th day
after such record date as the Expiration Date with respect thereto, subject to
its right to change the Expiration Date as provided in this paragraph.  Notwithstanding the foregoing, no Expiration
Date shall be later than the 180th day after the applicable record date.

 

Section 1.05.  Notices.  All notices, requests, consents and other communications provided for
herein (including, without limitation, any modifications of, or waivers or
consents under, this Agreement) shall be given or made in writing (including,
without limitation, by telecopy) delivered to the intended recipient at the “Address for Notices” specified below its
name on the signature pages hereof or, as to any party, at such other address
as shall be designated by such party in a notice to the other parties. Except
as otherwise provided in this Agreement, all such communications shall be
deemed to have been duly given when transmitted by telecopier or personally
delivered or, in the case of a mailed notice, upon receipt, in each case given
or addressed as aforesaid.

 

The Purchase Contract Agent
shall send to the Indenture Trustee at the following address a copy of any
notices in the form of Exhibits C, D, E, G, I or K it sends or receives:

 

The Bank of New York

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Section 1.06.  Notice to Holders;
Waiver.  Where this Agreement provides for notice to
Holders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at its address as it appears in
the Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice.  In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders.  Where
this Agreement provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed
with the Purchase Contract Agent, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Purchase Contract Agent shall constitute a
sufficient notification for every purpose hereunder.

 

18

 

Section 1.07.  Effect of Headings
and Table of Contents.  The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the construction
hereof.

 

Section 1.08.  Successors and
Assigns.  This Agreement shall be binding upon and
inure to the benefit of the respective successors and assigns of the Company,
the Purchase Contract Agent, the Collateral Agent, the Custodial Agent and the
Securities Intermediary, and the Holders from time to time of the Units, by
their acceptance of the same, shall be deemed to have agreed to be bound by the
provisions hereof and to have ratified the agreements of, and the grant of the
Pledge hereunder by, the Purchase Contract Agent.

 

Section 1.09.  Separability
Clause.  In case any provision in this Agreement or in
the Units shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof and thereof shall not in
any way be affected or impaired thereby.

 

Section 1.10.  Benefits of
Agreement.  Nothing contained in this Agreement or in the
Units, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder and, to the extent provided hereby, the
Holders, any benefits or any legal or equitable right, remedy or claim under
this Agreement. The Holders from time to time shall be beneficiaries of this
Agreement and shall be bound by all of the terms and conditions hereof and of
the Units evidenced by their Certificates by their acceptance of delivery of
such Certificates.

 

Section 1.11.  Governing
Law.  THIS AGREEMENT AND THE UNITS SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT A DIFFERENT LAW WOULD GOVERN
AS A RESULT.  The Company, the
Collateral Agent, the Custodial Agent, the Securities Intermediary and the
Holders from time to time of the Units, acting through the Purchase Contract
Agent as their attorney-in-fact, hereby submit to the nonexclusive jurisdiction
of the United States District Court for the Southern District of New York and
of any New York state court sitting in New York City for the purposes of all
legal proceedings arising out of or relating to this Agreement or the
transactions contemplated hereby. The Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary and the Holders from time to time
of the Units, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been brought in an
inconvenient forum.

 

Section 1.12.  Legal
Holidays.  In any case where any Payment Date shall not
be a Business Day (notwithstanding any other provision of this Agreement or the
Units), Contract Adjustment Payments or other distributions shall not be paid
on such date, but Contract Adjustment Payments or such other distributions
shall be paid on the next succeeding Business Day, with the same force and
effect as if made on such scheduled Payment Date; provided that no interest shall accrue or be payable by the
Company or to any Holder in respect of such delay.

 

19

 

In any case where the
Purchase Contract Settlement Date or any Early Settlement Date or Cash Merger
Early Settlement Date shall not be a Business Day (notwithstanding any other
provision of this Agreement or the Units), Purchase Contracts shall not be
performed and Early Settlement and Cash Merger Early Settlement shall not be
effected on such date, but Purchase Contracts shall be performed or Early
Settlement or Cash Merger Early Settlement shall be effected, as applicable, on
the next succeeding Business Day with the same force and effect as if made on
such Purchase Contract Settlement Date, Early Settlement Date or Cash Merger
Early Settlement Date, as applicable.

 

Section 1.13.  Counterparts.  This Agreement may be executed in any number of counterparts by the
parties hereto, each of which, when so executed and delivered, shall be deemed
an original, but all such counterparts shall together constitute one and the
same instrument.

 

Section 1.14.  Inspection of
Agreement.  A copy of this Agreement shall be available
at all reasonable times during normal business hours at the Corporate Trust
Office for inspection by any Holder or Beneficial Owner.

 

Section 1.15.  Appointment of
Financial Institution as Agent for the Company.  The Company
may appoint a financial institution (which may be the Collateral Agent) to act
as its agent in performing its obligations and in accepting and enforcing
performance of the obligations of the Purchase Contract Agent and the Holders,
under this Agreement and the Purchase Contracts, by giving notice of such
appointment in the manner provided in Section 1.05 hereof.  Any such appointment shall not relieve the
Company in any way from its obligations hereunder.

 

Section 1.16.  No Waiver.  No failure on the part of the Company, the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent, the Securities Intermediary or any of
their respective agents to exercise, and no course of dealing with respect to,
and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise by the Company,
the Collateral Agent, the Custodial Agent, the Securities Intermediary or any
of their respective agents of any right, power or remedy hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.  The remedies herein are
cumulative and are not exclusive of any remedies provided by law.

 

ARTICLE 2

CERTIFICATE FORMS

 

Section 2.01.  Forms of
Certificates Generally.  The Certificates (including the form of
Purchase Contract forming part of each Unit evidenced thereby) shall be in
substantially the form set forth in Exhibit A hereto (in the case of Corporate
Units Certificates) or Exhibit B hereto (in the case of Treasury Units
Certificates), with such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as may be required by the rules of any securities exchange on which the
Units are listed or any depositary therefor, or as may,

 

20

 

consistently herewith, be determined by the
officers of the Company executing such Certificates, as evidenced by their
execution of the Certificates.

 

The definitive Certificates
shall be produced in any manner as determined by the officers of the Company
executing the Units evidenced by such Certificates, consistent with the
provisions of this Agreement, as evidenced by their execution thereof.

 

Every Global Certificate
authenticated, executed on behalf of the Holders and delivered hereunder shall
bear a legend substantially in the form set forth in Exhibit A and Exhibit B
for a Global Certificate.

 

Section 2.02.  Form of Purchase
Contract Agent’s Certificate of Authentication.  The form of
the Purchase Contract Agent’s certificate of authentication of the Units shall
be in substantially the form set forth on the form of the applicable
Certificates.

 

ARTICLE 3

THE UNITS

 

Section 3.01.  Amount; Form and
Denominations.  The aggregate number of Units evidenced by
Certificates authenticated, executed on behalf of the Holders and delivered
hereunder is limited to 24,000,000, except for Certificates authenticated,
executed and delivered upon registration of transfer of, in exchange for, or in
lieu of, other Certificates pursuant to Section 3.04, Section 3.05, Section
3.10, Section 3.13, Section 3.14 or Section 8.05.

 

The Certificates shall be
issuable only in registered form and only in denominations of a single
Corporate Unit or Treasury Unit and any integral multiple thereof.

 

Section 3.02.  Rights and
Obligations Evidenced by the Certificates. 
Each Corporate Units
Certificate shall evidence the number of Corporate Units specified therein,
with each such Corporate Unit representing (1) the ownership by the Holder
thereof of an Applicable Ownership Interest in Senior Notes or an Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, subject to
the Pledge of such Applicable Ownership Interest in Senior Note or Applicable
Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the
definition of such term), as the case may be, by such Holder pursuant to this
Agreement, and (2) the rights and obligations of the Holder thereof and the
Company under one Purchase Contract. 
The Purchase Contract Agent is hereby authorized, as attorney-in-fact
for, and on behalf of, the Holder of each Corporate Unit, to pledge, pursuant
to Article 11 hereof, the Applicable Ownership Interest in Senior Notes, or the
Applicable Ownership Interest in the Treasury Portfolio (as specified in clause
(i) of the definition of such term) forming a part of such Corporate Unit, to
the Collateral Agent for the benefit of the Company, and to grant to the
Collateral Agent, for the benefit of the Company, a security interest in the right,
title and interest of such Holder in such Applicable Ownership Interest in
Senior Notes or Applicable Ownership Interest in the Treasury Portfolio (as
specified in clause (i) of the definition of such term) to secure the
obligation of the Holder under each Purchase Contract to purchase shares of
Common Stock.  To effect such Pledge and
grant such security interest, the Purchase Contract Agent

 

21

 

on behalf of the Holders of Corporate Units
has, on the date hereof, delivered to the Collateral Agent the Senior Notes
underlying the Applicable Ownership Interests in Senior Notes.

 

Upon the formation of a
Treasury Unit pursuant to Section 3.13, each Treasury Unit Certificate shall
evidence the number of Treasury Units specified therein, with each such
Treasury Unit representing (1) the ownership by the Holder thereof of a 1/40 or
2.5% undivided beneficial interest in a Treasury Security with a principal
amount equal to $1,000, subject to the Pledge of such interest by such Holder
pursuant to this Agreement, and (2) the rights and obligations of the Holder
thereof and the Company under one Purchase Contract.  The Purchase Contract Agent is hereby authorized, as attorney-in-fact
for, and on behalf of, the Holder of each Treasury Unit, to pledge, pursuant to
Article 11 hereof, such Holder’s interest in the Treasury Security forming a
part of such Treasury Unit to the Collateral Agent, for the benefit of the
Company, and to grant to the Collateral Agent, for the benefit of the Company,
a security interest in the right, title and interest of such Holder in such
Treasury Security to secure the obligation of the Holder under each Purchase
Contract to purchase shares of Common Stock.

 

Prior to the purchase of
shares of Common Stock under each Purchase Contract, such Purchase Contracts
shall not entitle the Holder of a Unit to any of the rights of a holder of
shares of Common Stock, including, without limitation, the right to vote or
receive any dividends or other payments or to consent or to receive notice as a
shareholder in respect of the meetings of shareholders or for the election of
directors of the Company or for any other matter, or any other rights
whatsoever as a shareholder of the Company.

 

Section 3.03.  Execution,
Authentication, Delivery and Dating.  Subject to the provisions of Section 3.13 and
Section 3.14 hereof, upon the execution and delivery of this Agreement, and at
any time and from time to time thereafter, the Company may deliver Certificates
executed by the Company to the Purchase Contract Agent for authentication,
execution on behalf of the Holders and delivery, together with its Issuer Order
for authentication of such Certificates, and the Purchase Contract Agent in
accordance with such Issuer Order shall authenticate, execute on behalf of the
Holders and deliver such Certificates.

 

The Certificates shall be
executed on behalf of the Company by its Chairman of the Board of Directors,
its Chief Executive Officer, its President, its Treasurer or one of its Vice
Presidents.  The signature of any of
these officers on the Certificates may be manual or facsimile.

 

Certificates bearing the
manual or facsimile signatures of individuals who were at any time the proper
officers of the Company shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices
at the date of such Certificates.

 

No Purchase Contract
evidenced by a Certificate shall be valid until such Certificate has been
executed on behalf of the Holder by the manual signature of an authorized
officer of the Purchase Contract Agent, as such Holder’s attorney-in-fact.  Such

 

22

 

signature by an authorized officer of the
Purchase Contract Agent shall be conclusive evidence that the Holder of such
Certificate has entered into the Purchase Contracts evidenced by such
Certificate.

 

Each Certificate shall be
dated the date of its authentication.

 

No Certificate shall be
entitled to any benefit under this Agreement or be valid or obligatory for any
purpose unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by an
authorized officer of the Purchase Contract Agent by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder.

 

Section 3.04.  Temporary
Certificates.  Pending the preparation of definitive
Certificates, the Company may execute and deliver to the Purchase Contract
Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of
the Holders, and deliver, in lieu of such definitive Certificates, temporary
Certificates which are in substantially the form set forth in Exhibit A or
Exhibit B hereto, as the case may be, with such letters, numbers or other marks
of identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as may be required by the rules of any
securities exchange on which the Corporate Units or Treasury Units, as the case
may be, are listed, or as may, consistently herewith, be determined by the
officers of the Company executing such Certificates, as evidenced by their
execution of the Certificates.

 

If temporary Certificates
are issued, the Company will cause definitive Certificates to be prepared
without unreasonable delay.  After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the Corporate Trust Office, at the expense of the Company and
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Certificates, the
Company shall execute and deliver to the Purchase Contract Agent, and the
Purchase Contract Agent shall authenticate, execute on behalf of the Holder,
and deliver in exchange therefor, one or more definitive Certificates of like
tenor and denominations and evidencing a like number of Units as the temporary
Certificate or Certificates so surrendered. 
Until so exchanged, the temporary Certificates shall in all respects
evidence the same benefits and the same obligations with respect to the Units
evidenced thereby as definitive Certificates.

 

Section 3.05.  Registration;
Registration of Transfer and Exchange.  The Purchase Contract Agent shall keep at the
Corporate Trust Office a register (the “Security
Register”) in which, subject to such reasonable regulations as it
may prescribe, the Purchase Contract Agent shall provide for the registration
of Certificates and of transfers of Certificates (the Purchase Contract Agent,
in such capacity, the “Security Registrar”).  The Security Registrar shall record
separately the registration and transfer of the Certificates evidencing
Corporate Units and Treasury Units.

 

Upon surrender for
registration of transfer of any Certificate at the Corporate Trust Office, the
Company shall execute and deliver to the Purchase Contract Agent, and the
Purchase Contract Agent shall authenticate, execute on behalf of the designated
transferee

 

23

 

or transferees, and deliver, in the name of
the designated transferee or transferees, one or more new Certificates of any
authorized denominations, like tenor, and evidencing a like number of Corporate
Units or Treasury Units, as the case may be.

 

At the option of the Holder,
Certificates may be exchanged for other Certificates, of any authorized
denominations and evidencing a like number of Corporate Units or Treasury
Units, as the case may be, upon surrender of the Certificates to be exchanged
at the Corporate Trust Office.  Whenever
any Certificates are so surrendered for exchange, the Company shall execute and
deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver the Certificates which
the Holder making the exchange is entitled to receive.

 

All Certificates issued upon
any registration of transfer or exchange of a Certificate shall evidence the
ownership of the same number of Corporate Units or Treasury Units, as the case
may be, and be entitled to the same benefits and subject to the same
obligations under this Agreement as the Corporate Units or Treasury Units, as
the case may be, evidenced by the Certificate surrendered upon such
registration of transfer or exchange.

 

Every Certificate presented
or surrendered for registration of transfer or exchange shall (if so required
by the Purchase Contract Agent) be duly endorsed, or be accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Purchase Contract Agent duly executed by the Holder thereof or its attorney
duly authorized in writing.

 

No service charge shall be
made for any registration of transfer or exchange of a Certificate, but the
Company and the Purchase Contract Agent may require payment from the Holder of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Certificates, other than any exchanges pursuant to Section 3.04, Section 3.06
and Section 8.05 not involving any transfer.

 

Notwithstanding the
foregoing, the Company shall not be obligated to execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated
to authenticate, execute on behalf of the Holder and deliver any Certificate in
exchange for any other Certificate presented or surrendered for registration of
transfer or for exchange on or after the Business Day immediately preceding the
earliest to occur of any Early Settlement Date with respect to such
Certificate, any Cash Merger Early Settlement Date with respect to such
Certificate, the Purchase Contract Settlement Date or the Termination
Date.  In lieu of delivery of a new
Certificate, upon satisfaction of the applicable conditions specified above in
this Section and receipt of appropriate registration or transfer instructions
from such Holder, the Purchase Contract Agent shall:

 

(i)            if the Purchase Contract Settlement
Date (including upon any Cash Settlement) or an Early Settlement Date or a Cash
Merger Early Settlement Date with respect to such other Certificate (or portion
thereof) has occurred, deliver the shares of Common Stock issuable in respect
of the Purchase Contracts forming a part of the Units evidenced by such other
Certificate (or portion thereof); or

 

24

 

(ii)           if a Termination Event, Early
Settlement, or Cash Merger Early Settlement shall have occurred prior to the
Purchase Contract Settlement Date, or a Cash Settlement shall have occurred,
transfer the Senior Notes, the Treasury Securities, or the Applicable Ownership
Interests in the Treasury Portfolio, as the case may be, underlying such
Certificate, in each case subject to the applicable conditions and in
accordance with the applicable provisions of Section 3.15 and Article 5 hereof.

 

Section 3.06.  Book-entry
Interests.  The Certificates, on original issuance, will
be issued in definitive certificated form and will bear the Restrictive
Legend.  Upon the sale of the Units to
the Underwriters pursuant to the Underwriting Agreement, the Restrictive Legend
will be removed and Certificates will be issued in the form of one or more
fully registered Global Certificates, to be delivered to the Depositary or its
custodian by, or on behalf of, the Company. 
The Company hereby designates DTC as the initial Depositary.  Such Global Certificates shall initially be
registered on the Security Register in the name of Cede & Co., the nominee
of the Depositary, and no Beneficial Owner will receive a definitive
Certificate representing such Beneficial Owner’s interest in such Global
Certificate, except as provided in Section 3.09.  The Purchase Contract Agent shall enter into an agreement with
the Depositary if so requested by the Company. 
Following the issuance of such Global Certificates and unless and until
definitive, and fully registered Certificates have been issued to Beneficial
Owners pursuant to Section 3.09:

 

(i)            the provisions of this Section 3.06
shall be in full force and effect;

 

(ii)           the Company shall be entitled to deal
with the Depositary for all purposes of this Agreement (including, without
limitation, making Contract Adjustment Payments and receiving approvals, votes
or consents hereunder) as the Holder of the Units and the sole holder of the
Global Certificates and shall have no obligation to the Beneficial Owners; provided that a Beneficial Owner may
directly enforce against the Company, without any consent, proxy, waiver or
involvement of the Depositary of any kind, such Beneficial Owner’s right to
receive a definitive Certificate representing the Units beneficially owned by
such Beneficial Owner, as set forth in Section 3.09;

 

(iii)          to the extent that the provisions of
this Section 3.06 conflict with any other provisions of this Agreement, the
provisions of this Section 3.06 shall control; and

 

(iv)          except as set forth in the proviso of
clause (ii) of this Section 3.06, the rights of the Beneficial Owners shall be
exercised only through the Depositary and shall be limited to those established
by law and agreements between such Beneficial Owners and the Depositary or the
Depositary Participants.  The Depositary
will make book-entry transfers among Depositary Participants and receive and
transmit payments of Contract Adjustment Payments to such Depositary
Participants.

 

Transfers of securities
evidenced by Global Certificates shall be made through the facilities of the
Depositary, and any cancellation of, or increase or decrease in the number of,
such

 

25

 

securities (including the
creation of Treasury Units and the recreation of Corporate Units pursuant to
Section 3.13 and Section 3.14 respectively) shall be accomplished by making
appropriate annotations on the Schedule of Increases and Decreases set forth in
such Global Certificate.

 

Section 3.07.  Notices to
Holders.  Whenever a notice or other communication to
the Holders is required to be given under this Agreement, the Company or the
Company’s agent shall give such notices and communications to the Holders and,
with respect to any Units registered in the name of the Depositary or the
nominee of the Depositary, the Company or the Company’s agent shall, except as
set forth herein, have no obligations to the Beneficial Owners.

 

Section 3.08.  Appointment of
Successor Depositary.  If the Depositary elects to discontinue its
services as securities depositary with respect to the Units, the Company may,
in its sole discretion, appoint a successor Depositary with respect to the
Units.

 

Section 3.09.  Definitive
Certificates.

 

If:

 

(i)            the Depositary notifies the Company
that it is unwilling or unable to continue its services as securities
depositary with respect to the Units and no successor Depositary has been
appointed pursuant to Section 3.08 within 90 days after such notice;

 

(ii)           the Depositary ceases to be a
“clearing agency” registered under Section 17A of the Exchange Act when the
Depositary is required to be so registered to act as the Depositary and so
notifies the Company, and no successor Depositary has been appointed pursuant
to Section 3.08 within 90 days after such notice;

 

(iii)          to the extent permitted by the
Depositary, the Company determines in its discretion that the Global
Certificates shall be exchangeable for definitive Certificates; or

 

(iv)          a Beneficial Owner requests to
exchange such Beneficial Owner’s interest in the Global Certificates for
definitive Certificates;

 

then (x) definitive
Certificates shall be prepared by the Company with respect to such Units and
delivered to the Purchase Contract Agent and (y) upon surrender of the Global
Certificates representing the Units by the Depositary, accompanied by
registration instructions (other than in the case of clause (iv) above), the
Company shall cause definitive Certificates to be delivered to Beneficial
Owners in accordance with instructions provided by the Depositary.  The Company and the Purchase Contract Agent
shall not be liable for any delay in delivery of such instructions and may conclusively
rely on and shall be authorized and protected in relying on, such
instructions.  Each definitive
Certificate so delivered shall evidence Units of the same kind and tenor as the
Global Certificate so surrendered in respect thereof.

 

26

 

Section 3.10.  Mutilated,
Destroyed, Lost and Stolen Certificates. 
If any mutilated
Certificate is surrendered to the Purchase Contract Agent, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and deliver in
exchange therefor, a new Certificate, evidencing the same number of Corporate
Units or Treasury Units, as the case may be, and bearing a Certificate number
not contemporaneously outstanding.

 

If there shall be delivered
to the Company and the Purchase Contract Agent (i) evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and (ii)
such security or indemnity as may be required by them to hold each of them and
any agent of any of them harmless, then, in the absence of notice to the
Company or the Purchase Contract Agent that such Certificate has been acquired
by a protected purchaser, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on
behalf of the Holder, and deliver to the Holder, in lieu of any such destroyed,
lost or stolen Certificate, a new Certificate, evidencing the same number of
Corporate Units or Treasury Units, as the case may be, and bearing a
Certificate number not contemporaneously outstanding.

 

Notwithstanding the
foregoing, the Company shall not be obligated to execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated
to authenticate, execute on behalf of the Holder, and deliver to the Holder, a
Certificate on or after the Business Day immediately preceding the earliest of
any Early Settlement Date with respect to such lost or mutilated Certificate,
any Cash Merger Early Settlement Date with respect to such lost or mutilated
Certificate, the Purchase Contract Settlement Date or the Termination
Date.  In lieu of delivery of a new
Certificate, upon satisfaction of the applicable conditions specified above in
this Section and receipt of appropriate registration or transfer instructions
from such Holder, the Purchase Contract Agent shall:

 

(i)            if the Purchase Contract Settlement
Date (including upon any Cash Settlement) or an Early Settlement Date or a Cash
Merger Early Settlement Date with respect to such lost, stolen, destroyed or
mutilated Certificate has occurred, deliver the shares of Common Stock issuable
in respect of the Purchase Contracts forming a part of the Units evidenced by
such Certificate; and

 

(ii)           if a Termination Event, Cash Merger
Early Settlement or an Early Settlement with respect to such lost or mutilated
Certificate shall have occurred prior to the Purchase Contract Settlement Date
or a Cash Settlement shall have occurred, transfer the Senior Notes, the
Treasury Securities or the Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, underlying such Certificate, in each case
subject to the applicable conditions and in accordance with the applicable
provisions of Section 3.15 and Article 5 hereof.

 

Upon the issuance of any new
Certificate under this Section, the Company and the Purchase Contract Agent may
require the payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other fees
and expenses (including, without limitation, the fees and expenses of the
Purchase Contract Agent) connected therewith.

 

27

 

Every new Certificate issued
pursuant to this Section in lieu of any destroyed, lost or stolen Certificate
shall constitute an original additional contractual obligation of the Company
and of the Holder in respect of the Units evidenced thereby, whether or not the
destroyed, lost or stolen Certificate (and the Units evidenced thereby) shall
be at any time enforceable by anyone, and shall be entitled to all the benefits
and be subject to all the obligations of this Agreement equally and
proportionately with any and all other Certificates delivered hereunder.

 

The provisions of this
Section are exclusive and shall preclude, to the extent lawful, all other
rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Certificates.

 

Section 3.11.  Persons Deemed
Owners.  Prior to due presentment of a Certificate for
registration of transfer, the Company and the Purchase Contract Agent, and any
agent of the Company or the Purchase Contract Agent, may treat the Person in
whose name such Certificate is registered as the owner of the Units evidenced
thereby for purposes of (subject to any applicable record date) any payment or
distribution with respect to the Applicable Ownership Interests in Senior
Notes, or on the Applicable Ownership Interests in the Treasury Portfolio (as
specified in clause (ii) of the definition of such term), as applicable,
payment of Contract Adjustment Payments and performance of the Purchase
Contracts and for all other purposes whatsoever in connection with such Units,
whether or not such payment, distribution, or performance shall be overdue and
notwithstanding any notice to the contrary, and neither the Company nor the
Purchase Contract Agent, nor any agent of the Company or the Purchase Contract
Agent, shall be affected by notice to the contrary.

 

Notwithstanding the
foregoing, with respect to any Global Certificate, nothing contained herein
shall prevent the Company, the Purchase Contract Agent or any agent of the
Company or the Purchase Contract Agent, from giving effect to any written
certification, proxy or other authorization furnished by the Depositary (or its
nominee), as a Holder, with respect to such Global Certificate, or impair, as
between such Depositary and the related Beneficial Owner, the operation of
customary practices governing the exercise of rights of the Depositary (or its
nominee) as Holder of such Global Certificate. 
None of the Company, the Purchase Contract Agent or any agent of the
Company or the Purchase Contract Agent will have any responsibility or
liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Certificate or maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.

 

Section 3.12.  Cancellation.  All Certificates surrendered for delivery of shares of Common Stock on
or after the Purchase Contract Settlement Date or in connection with an Early
Settlement or a Cash Merger Early Settlement or for delivery of the Senior
Notes underlying the Applicable Ownership Interests in Senior Notes, the
Applicable Ownership Interests in the Treasury Portfolio or Treasury
Securities, as the case may be, after the occurrence of a Termination Event or
pursuant to a Cash Settlement, an Early Settlement or a Cash Merger Early
Settlement, a Collateral Substitution, or upon the registration of transfer or
exchange of a Unit, shall, if surrendered to any Person other than the Purchase
Contract Agent, be delivered to the Purchase Contract Agent along with
appropriate

 

28

 

written instructions regarding the
cancellation thereof and, if not already cancelled, shall be promptly cancelled
by it. The Company may at any time deliver to the Purchase Contract Agent for
cancellation any Certificates previously authenticated, executed and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all
Certificates so delivered shall, upon an Issuer Order, be promptly cancelled by
the Purchase Contract Agent.  No
Certificates shall be authenticated, executed on behalf of the Holder and
delivered in lieu of or in exchange for any Certificates cancelled as provided
in this Section 3.12, except as expressly permitted by this Agreement.  All cancelled Certificates held by the
Purchase Contract Agent shall be disposed of in accordance with its customary
practices.

 

If the Company or any
Affiliate of the Company shall acquire any Certificate, such acquisition shall
not operate as a cancellation of such Certificate unless and until such
Certificate is delivered to the Purchase Contract Agent cancelled or for
cancellation.

 

Section 3.13.  Creation of
Treasury Units by Substitution of Treasury Securities.  (a) Unless Applicable Ownership Interests in the Treasury Portfolio
have replaced the Applicable Ownership Interests in Senior Notes as a component
of the Corporate Units, and subject to the conditions set forth in this
Agreement, a Holder of Corporate Units may, at any time from and after the date
of this Agreement and prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement Date,
effect a Collateral Substitution and separate the Senior Notes underlying
Applicable Ownership Interests in Senior Notes in respect of such Holder’s
Corporate Units by substituting for such Applicable Ownership Interests in
Senior Notes, Treasury Securities in an aggregate principal amount at maturity
equal to the aggregate principal amount of the Senior Notes underlying the
Applicable Ownership Interests in Senior Notes; provided that Holders may make Collateral Substitutions only
in integral multiples of 40 Corporate Units. 
To effect such substitution, the Holder must:

 

(1)                                  Transfer to the Securities Intermediary, for
credit to the Collateral Account, Treasury Securities or security entitlements
with respect thereto having a Value equal to the aggregate principal amount of
the Senior Notes underlying the Pledged Applicable Ownership Interests in
Senior Notes for which such Collateral Substitution is made; and

 

(2)                                  Transfer the related Corporate Units to the
Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent,
substantially in the form of Exhibit C hereto, whereupon the Purchase Contract
Agent shall promptly provide an instruction to such effect to the Collateral
Agent, substantially in the form of Exhibit G hereto.

 

Upon confirmation that the
Treasury Securities described in clause (1) above or security entitlements with
respect thereto have been credited to the Collateral Account and receipt of the
instruction to the Collateral Agent described in clause (2) above, the
Collateral Agent shall release such Pledged Applicable Ownership Interests in
Senior Notes from the Pledge and instruct the Securities Intermediary by a
notice, substantially in the form of Exhibit H hereto, to Transfer the Senior
Notes underlying such Pledged Applicable

 

29

 

Ownership Interests in
Senior Notes to the Purchase Contract Agent for distribution to such Holder,
free and clear of the Pledge created hereby.

 

Upon credit to the
Collateral Account of Treasury Securities or security entitlements with respect
thereto delivered by a Holder of Corporate Units and receipt of the related
instruction from the Collateral Agent, the Securities Intermediary shall
promptly Transfer the Senior Notes underlying the appropriate Pledged
Applicable Ownership Interests in Senior Notes to the Purchase Contract Agent
for distribution to such Holder, free and clear of the Pledge created hereby.

 

Upon receipt of the Senior
Notes underlying such Pledged Applicable Ownership Interests in Senior Notes,
the Purchase Contract Agent shall promptly:

 

(i)            cancel the related Corporate Units;

 

(ii)           Transfer the Senior Notes to the
Holder; and

 

(iii)          deliver Treasury Units in book-entry
form, or if applicable, authenticate, execute on behalf of such Holder and
deliver Treasury Units in the form of a Treasury Units Certificate executed by
the Company in accordance with Section 3.03 evidencing the same number of
Purchase Contracts as were evidenced by the cancelled Corporate Units.

 

Holders who elect to
separate the Senior Notes by substituting Treasury Securities for Applicable
Ownership Interest in Senior Notes shall be responsible for any fees or expenses,
(including, without limitation, fees and expenses payable to the Collateral
Agent), in respect of the substitution, and neither the Company nor the
Purchase Contract Agent shall be responsible for any such fees or expenses.

 

(b)           If Applicable Ownership Interests in the Treasury
Portfolio have replaced Applicable Ownership Interests in Senior Notes as a
component of the Corporate Units, and subject to the conditions set forth in
this Agreement, a Holder of Corporate Units may, at any time from and after the
date of this Agreement and prior to 5:00 p.m. (New York City time) on the
seventh Business Day immediately preceding the Purchase Contract Settlement
Date, substitute Treasury Securities for the Pledged Applicable Ownership
Interests in the Treasury Portfolio included in such Corporate Units, but only
in integral multiples of [•] Corporate Units.  In such an
event, the Holder shall Transfer Treasury Securities having an aggregate
principal amount at maturity equal to equal to the aggregate Stated Amount of
the Purchase Contracts constituting a part of the Corporate Units for which
Collateral Substitution is being made to the Securities Intermediary, for
credit to the Collateral Account, and the Purchase Contract Agent, Collateral
Agent and Securities Intermediary shall effect a Collateral Substitution for
the appropriate Pledged Applicable Ownership Interests in the Treasury
Portfolio in the manner set forth in clause (a) above.

 

(c)           In the event a Holder making a Collateral Substitution
pursuant to this Section 3.13 fails to effect a book-entry transfer of the
Corporate Units or fails to deliver Corporate Units Certificates to the
Purchase Contract Agent after depositing Treasury Securities with the
Securities Intermediary, any distributions on the Senior Notes

 

30

 

underlying the Applicable Ownership Interests
in Senior Notes, or with respect to the Applicable Ownership Interests in the
Treasury Portfolio, in each case constituting a part of such Corporate Units,
shall be held in the name of the Purchase Contract Agent or its nominee in
trust for the benefit of such Holder, until such Corporate Units are so
transferred or the Corporate Units Certificate is so delivered, as the case may
be, or such Holder provides evidence satisfactory to the Company and the
Purchase Contract Agent that such Corporate Units Certificate has been
destroyed, lost or stolen, together with any indemnity that may be required by
the Purchase Contract Agent and the Company.

 

(d)           Except as described in Section 5.02 or in this Section
3.13 or in connection with a Cash Settlement, an Early Settlement, a Cash
Merger Early Settlement or a Termination Event, for so long as the Purchase
Contract underlying a Corporate Unit remains in effect, such Corporate Units
shall not be separable into its constituent parts, and the rights and
obligations of the Holder in respect of the Applicable Ownership Interests in
Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, as
the case may be, and the Purchase Contract comprising such Corporate Units may
be acquired, and may be transferred and exchanged, only as a Corporate Unit.

 

Section 3.14.  Recreation of
Corporate Units.  (a) Unless Applicable Ownership Interests in
the Treasury Portfolio have replaced Applicable Ownership Interests in Senior
Notes as a component of the Corporate Units, and subject to the conditions set
forth in this Agreement, a Holder of Treasury Units may recreate Corporate
Units at any time from and after the date of this Agreement and prior to 5:00
p.m. (New York City time) on the seventh Business Day immediately preceding the
Purchase Contract Settlement Date; provided that
Holders of Treasury Units may only recreate Corporate Units in integral
multiples of 40 Treasury Units.  To
recreate Corporate Units, the Holder must:

 

(1)                                  Transfer to the Securities Intermediary for
credit to the Collateral Account Senior Notes or security entitlements with
respect thereto having an aggregate principal amount equal to the Value of the
Pledged Treasury Securities to be released; and

 

(2)                                  Transfer the related Treasury Units to the
Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent,
substantially in the form of Exhibit C hereto, whereupon the Purchase Contract
Agent shall promptly provide an instruction to such effect to the Collateral
Agent, substantially in the form of Exhibit I hereto.

 

Upon confirmation that the
Senior Notes described in clause (1) above or security entitlements with
respect thereto has been credited to the Collateral Account and receipt of the
instruction from the Purchase Contract Agent described in clause (2) above, the
Collateral Agent shall release such Pledged Treasury Securities from the Pledge
and shall instruct the Securities Intermediary by a notice, substantially in
the form of Exhibit J hereto, to Transfer such Pledged Treasury Securities to
the Purchase Contract Agent for distribution to such Holder, free and clear of
the Pledge created hereby.

 

Upon credit to the Collateral
Account of Senior Notes or security entitlements with respect thereto delivered
by a Holder of Treasury Units and receipt of the related

 

31

 

instruction from the Collateral Agent, the
Securities Intermediary shall promptly Transfer the Pledged Treasury Securities
to the Purchase Contract Agent for distribution to such Holder, free and clear
of the Pledge created hereby.

 

Upon receipt of such
Treasury Securities, the Purchase Contract Agent shall promptly:

 

(i)            cancel the related Treasury Units;

 

(ii)           Transfer the Treasury Securities to
the Holder; and

 

(iii)          deliver Corporate Units in book-entry
form or, if applicable, authenticate, execute on behalf of such Holder and
deliver Corporate Units in the form of a Corporate Units Certificate executed
by the Company in accordance with Section 3.03 evidencing the same number of
Purchase Contracts as were evidenced by the cancelled Treasury Units.

 

Holders who elect to
recreate Corporate Units shall be responsible for any fees or expenses,
(including, without limitation, fees and expenses payable to the Collateral
Agent), in respect of the recreation, and neither the Company nor the Purchase
Contract Agent shall be responsible for any such fees or expenses.

 

(b)           If Applicable Ownership Interests in the Treasury
Portfolio have replaced Applicable Ownership Interests in Senior Notes as a
component of the Corporate Units and subject to the conditions set forth in
this Agreement, a Holder of Treasury Units may at any time from and after the
date of this Agreement and prior to 5:00 p.m. (New York City time) on the
seventh Business Day immediately preceding the Purchase Contract Settlement
Date substitute the Pledged Applicable Ownership Interests in the Treasury Portfolio
for Treasury Securities included in such Treasury Units, but only in multiples
of [•] Treasury
Units.  In such an event, the Holder
shall Transfer Applicable Ownership Interests in the Treasury Portfolio having
a Value equal to the aggregate Value of the Treasury Securities for which
substitution is being made to the Securities Intermediary, for credit to the
Collateral Account, and the Purchase Contract Agent, Collateral Agent and
Securities Intermediary shall effect a Collateral Substitution and release the
Pledged Applicable Ownership Interests in the Treasury Portfolio from the
Pledge in the manner set forth in clause (a) above.

 

(c)           Except as provided in Section 5.02 or in this Section 3.14
or in connection with a Cash Settlement, an Early Settlement, a Cash Merger
Early Settlement or a Termination Event, for so long as the Purchase Contract
underlying a Treasury Unit remains in effect, such Treasury Unit shall not be
separable into its constituent parts and the rights and obligations of the
Holder of such Treasury Unit in respect of the interest in the Treasury
Security and the Purchase Contract comprising such Treasury Unit may be
acquired, and may be transferred and exchanged, only as a Treasury Unit.

 

Section 3.15.  Transfer of
Collateral Upon Occurrence of Termination Event.  (a) Upon
receipt by the Collateral Agent of written notice pursuant to Section 5.06
hereof from the Company or the Purchase Contract Agent that a Termination Event
has occurred,

 

32

 

the Collateral Agent shall release all
Collateral from the Pledge and shall promptly instruct the Securities
Intermediary to Transfer:

 

(i)            any Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes or security entitlements with
respect thereto or Pledged Applicable Ownership Interests in the Treasury
Portfolio;

 

(ii)           any Pledged Treasury Securities;

 

(iii)          any payments by Holders (or the
Permitted Investments of such payments) pursuant to Section 5.02 hereof; and

 

(iv)          any Proceeds and all other payments
the Collateral Agent receives in respect of the foregoing,

 

to the Purchase Contract
Agent for the benefit of the Holders for distribution to such Holders, in
accordance with their respective interests, free and clear of the Pledge
created hereby; provided, however, if any Holder or Beneficial Owner
shall be entitled to receive Senior Notes in an aggregate principal amount of
less than $1,000, or greater than $1,000 but not in an integral multiple of
$1,000, the Purchase Contract Agent shall request, on behalf of such Holder or
Beneficial Owner, pursuant to Section 2.03 of the Supplemental Indenture that
the Company issue Senior Notes in denominations of $25, or integral multiples
thereof, in exchange for Senior Notes in denominations of $1,000 or integral
multiples thereof; and provided further,
if any Holder shall be entitled to receive less than $1,000 with respect to its
Pledged Applicable Ownership Interests in the Treasury Portfolio, the Purchase
Contract Agent shall have the right (but not the obligation) to dispose of such
interest for cash and deliver to such Holder cash in lieu of delivering the
Pledged Applicable Ownership Interests in the Treasury Portfolio.

 

(b)      Notwithstanding anything to the contrary in clause (a) of this
Section 3.15, if such Termination Event shall result from the Company’s
becoming a debtor under the Bankruptcy Code, and if the Collateral Agent shall
for any reason fail promptly to effectuate the release and Transfer of all
Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes,
Pledged Applicable Ownership Interests in the Treasury Portfolio, Pledged
Treasury Securities and payments by Holders (or the Permitted Investments of
such payments) pursuant to Section 5.02 and Proceeds and all other payments
received by the Collateral Agent in respect of the foregoing, as the case may
be, as provided by this Section 3.15, the Purchase Contract Agent shall use its
best efforts to obtain an opinion of a nationally recognized law firm to the
effect that, notwithstanding the Company’s being the debtor in such a
bankruptcy case, the Collateral Agent will not be prohibited from releasing or
Transferring the Collateral as provided in this Section 3.15, and shall deliver
or cause to be delivered such opinion to the Collateral Agent within ten days
after the occurrence of such Termination Event, and if (A) the Purchase
Contract Agent shall be unable to obtain such opinion within ten days after the
occurrence of such Termination Event or (B) the Collateral Agent shall
continue, after delivery of such opinion, to refuse to effectuate the release
and Transfer of all Senior Notes underlying Pledged Applicable Ownership
Interests in Senior Notes, Pledged Applicable Ownership Interests in the Treasury
Portfolio, Pledged Treasury Securities and the payments by

 

33

 

Holders (or the Permitted Investments of such
payments) pursuant to Section 5.02 hereof and Proceeds and all other payments
received by the Collateral Agent in respect of the foregoing, as the case may
be, as provided in this Section 3.15, then the Purchase Contract Agent shall
within fifteen days after the occurrence of such Termination Event commence an
action or proceeding in the court having jurisdiction of the Company’s case
under the Bankruptcy Code seeking an order requiring the Collateral Agent to
effectuate the release and transfer of all Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes, Pledged Applicable Ownership
Interest in the Treasury Portfolio, Pledged Treasury Securities and the
payments by Holders (or the Permitted Investments of such payments) pursuant to
Section 5.02 hereof and Proceeds and all other payments received by the
Collateral Agent in respect of the foregoing, or as the case may be, as
provided by this Section 3.15.

 

(c)           Upon the occurrence of a Termination Event and the
Transfer to the Purchase Contract Agent of the Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes, the appropriate Pledged
Applicable Ownership Interests in the Treasury Portfolio or the Pledged
Treasury Securities, as the case may be, pursuant to Section 3.15, the Purchase
Contract Agent shall request transfer instructions with respect to such Senior
Notes, Applicable Ownership Interests in the Treasury Portfolio or Pledged
Treasury Securities, as the case may be, from each Holder by written request,
substantially in the form of Exhibit D hereto, mailed to such Holder at its
address as it appears in the Security Register.

 

(d)           Upon book-entry transfer of the Corporate Units or the
Treasury Units or delivery of a Corporate Units Certificate or Treasury Units
Certificate to the Purchase Contract Agent with such transfer instructions, the
Purchase Contract Agent shall transfer the Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes, the Pledged Applicable
Ownership Interests in the Treasury Portfolio or Pledged Treasury Securities,
as the case may be, underlying such Corporate Units or Treasury Units, as the
case may be, to such Holder by book-entry transfer, or other appropriate
procedures, in accordance with such instructions and, in the case of the Senior
Notes underlying Pledged Applicable Ownership Interests in Senior Notes, in
accordance with the terms of the Supplemental Indenture.  In the event a Holder of Corporate Units or
Treasury Units fails to effect such transfer or delivery, the Senior Notes
underlying Pledged Applicable Ownership Interests in Senior Notes, the Pledged
Applicable Ownership Interests in the Treasury Portfolio or Pledged Treasury
Securities, as the case may be, underlying such Corporate Units of Treasury
Units, as the case may be, and any distributions thereon, shall be held in the
name of the Purchase Contract Agent or its nominee in trust for the benefit of
such Holder, until the earlier to occur of:

 

(i)            the transfer of such Corporate Units
or Treasury Units or surrender of the Corporate Units Certificate or Treasury
Units Certificate or the receipt by the Company and the Purchase Contract Agent
from such Holder of satisfactory evidence that such Corporate Units Certificate
or Treasury Units Certificate has been destroyed, lost or stolen, together with
any indemnity that may be required by the Purchase Contract Agent and the
Company; and

 

34

 

(ii)           the expiration of the time period
specified by the applicable law governing abandoned property in the state in
which the Purchase Contract Agent holds such property.

 

Section 3.16.  No Consent to Assumption. 
Each Holder of a
Unit, by acceptance thereof, shall be deemed expressly to have withheld any
consent to the assumption under Section 365 of the Bankruptcy Code or
otherwise, of the Purchase Contract by the Company or its trustee, receiver,
liquidator or a person or entity performing similar functions in the event that
the Company becomes a debtor under the Bankruptcy Code or subject to other
similar state or Federal law providing for reorganization or liquidation.

 

Section 3.17.  Substitutions.  Whenever a Holder has the right to substitute
Treasury Securities, Senior Notes underlying Applicable Ownership Interests in
Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio
(as defined in clause (i) of the definition of such term), as the case may be,
or security entitlements for any of them for financial assets held in the
Collateral Account, such substitution shall not constitute a novation of the
security interest created hereby.

 

ARTICLE 4

THE SENIOR NOTES

 

Section 4.01.  Interest Payments; Rights to Interest Payments Preserved.  (a) The Collateral Agent (if the Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes are in the name of the
Collateral Agent) shall transfer all income and distributions received by it on
account of the Senior Notes underlying Pledged Applicable Ownership Interests
in Senior Notes, the Pledged Applicable Ownership Interests in the Treasury
Portfolio or Permitted Investments from time to time held in the Collateral
Account (ABA No. [•], Global Plus
A/C No. [•], Re: Genworth
Financial, Inc.) to the Purchase Contract Agent for distribution to the
applicable Holders as provided in this Agreement and the Purchase Contracts.

 

(b)           Any payment on any Senior Note underlying Applicable
Ownership Interests in Senior Notes or any distribution on any Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of
the definition of such term), as the case may be, which is paid on any Payment
Date shall, subject to receipt thereof by the Purchase Contract Agent from the
Company or from the Collateral Agent as provided in Section 4.01(a) above, be
paid to the Person in whose name the Corporate Units Certificate (or one or more
Predecessor Corporate Units Certificates) of which such Applicable Ownership
Interest in Senior Notes or Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, forms a part is registered at the close of
business on the Record Date for such Payment Date.

 

(c)           Each Corporate Units Certificate evidencing Applicable
Ownership Interests in Senior Notes or Applicable Ownership Interests in the
Treasury Portfolio delivered under this Agreement upon registration of transfer
of or in exchange for or in lieu of any other Corporate Units Certificate shall
carry the right to accrued and unpaid interest or distributions, and to accrued
interest or distributions, which were carried by Applicable

 

35

 

Ownership Interests in Senior Notes or
Applicable Ownership Interests in the Treasury Portfolio underlying such other
Corporate Units Certificate.

 

(d)           In the case of any Corporate Unit with respect to which
(1) Cash Settlement of the underlying Purchase Contract is properly effected
pursuant to Section 5.02(a) hereof, (2) Early Settlement of the underlying
Purchase Contract is properly effected pursuant to Section 5.07 hereof, (3)
Cash Merger Early Settlement of the underlying Purchase Contract is properly
effected pursuant to Section 5.04(b)(ii) hereof (4) a Collateral Substitution
is properly effected pursuant to Section 3.13, in each case on a date that is
after any Record Date and prior to or on the next succeeding Payment Date,
interest in respect of the Senior Notes underlying Applicable Ownership
Interests in Senior Notes or distributions on Applicable Ownership Interests in
the Treasury Portfolio, as the case may be, underlying such Corporate Unit
otherwise payable on such Payment Date shall be payable on such Payment Date
notwithstanding such Cash Settlement, Early Settlement, Cash Merger Early
Settlement or Collateral Substitution, and such payment or distributions shall,
subject to receipt thereof by the Purchase Contract Agent, be payable to the
Person in whose name the Corporate Units Certificate (or one or more
Predecessor Corporate Units Certificates) was registered at the close of
business on the Record Date.

 

(e)           Except as otherwise expressly provided in Section 4.01(d)
hereof, in the case of any Corporate Unit with respect to which Cash
Settlement, Early Settlement or Cash Merger Early Settlement of the component
Purchase Contract is properly effected, or with respect to which a Collateral
Substitution has been effected, payments attributable to the Senior Notes
underlying Applicable Ownership Interests in Senior Notes or distributions on
Applicable Ownership Interests in the Treasury Portfolio, as the case may be,
that would otherwise be payable or made after the Purchase Contract Settlement
Date, Early Settlement Date, Cash Merger Early Settlement Date or the date of
the Collateral Substitution, as the case may be, shall not be payable hereunder
to the Holder of such Corporate Units; provided,
however, that to the extent that such Holder continues to hold Separate Senior
Notes or Applicable Ownership Interests in the Treasury Portfolio that formerly
comprised a part of such Holder’s Corporate Units, such Holder shall be
entitled to receive interest on such Separate Senior Notes or distributions on
such Applicable Ownership Interests in the Treasury Portfolio.

 

Section 4.02.  Payments Prior to or on Purchase Contract Settlement Date.  (a)  Subject to the
provisions of Section 5.02(a), Section 5.04(b)(ii) and Section 5.07, and except
as provided in Section 4.02(b) below, if no Termination Event shall have
occurred, all payments received by the Securities Intermediary in respect of
(1) the principal amount of the Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes, (2) the Pledged Applicable Ownership
Interests in the Treasury Portfolio and (3) the Pledged Treasury Securities,
shall be credited to the Collateral Account, to be invested in Permitted
Investments until the Purchase Contract Settlement Date, and transferred to the
Company on the Purchase Contract Settlement Date as provided in Section 5.02
hereof. Any balance remaining in the Collateral Account shall be released from
the Pledge and transferred to the Purchase Contract Agent for the benefit of
the applicable Holders for distribution to such Holders in accordance with
their respective interests, free and clear of the Pledge created hereby.  The Company shall instruct the Collateral
Agent in writing as to the specific Permitted Investments in which any payments
made under this Section 4.02

 

36

 

shall be invested, provided, however,
that if the Company fails to deliver such instructions by 10:30 a.m. (New York
City time) on the day such payments are received by the Securities
Intermediary, the Collateral Agent shall instruct the Securities Intermediary
to invest such payments in the Permitted Investments described in clause (6) of
the definition of Permitted Investments. 
In no event shall the Collateral Agent be liable for the selection of
Permitted Investments or for investment losses incurred thereon. The Collateral
Agent shall have no liability in respect of losses incurred as a result of the
failure of the Company to provide timely written investment direction.

 

(b)           All payments received by the Securities Intermediary in
respect of (1) the Senior Notes, (2) the Applicable Ownership Interests in the
Treasury Portfolio and (3) the Treasury Securities or security entitlements
with respect thereto, that, in each case, have been released from the Pledge
pursuant hereto shall be transferred to the Purchase Contract Agent for the
benefit of the applicable Holders for distribution to such Holders in
accordance with their respective interests.

 

Section 4.03.  Notice and Voting.  (a) Subject to Section 4.03(b) hereof, the
Purchase Contract Agent may exercise, or refrain from exercising, any and all
voting and other consensual rights pertaining to the Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes or any part thereof for
any purpose not inconsistent with the terms of this Agreement; provided that the Purchase Contract Agent
shall not exercise or shall not refrain from exercising such right, as the case
may be, if, in the judgment of the Purchase Contract Agent, such action would
impair or otherwise have a material adverse effect on the value of all or any
of the Senior Notes underlying Pledged Applicable Ownership Interests in Senior
Notes; and provided  further that the Purchase Contract Agent
shall give the Company and the Collateral Agent at least five Business Days’
prior written notice of the manner in which it intends to exercise, or its
reasons for refraining from exercising, any such right. Upon receipt of any
notices and other communications in respect of any Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes, including either notice
of any meeting at which holders of the Senior Notes are entitled to vote or the
solicitation of consents, waivers or proxies of holders of the Senior Notes,
the Collateral Agent shall use reasonable efforts to send promptly to the
Purchase Contract Agent such notice or communication, and as soon as reasonably
practicable after receipt of a written request therefor from the Purchase Contract
Agent, to execute and deliver to the Purchase Contract Agent such proxies and
other instruments in respect of such Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes (in form and substance satisfactory to the
Collateral Agent) as are prepared by the Company and delivered to the Purchase
Contract Agent with respect to the Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes.

 

(b)           Upon receipt of notice of any meeting at which holders of
Senior Notes are entitled to vote or upon any solicitation of consents, waivers
or proxies of holders of Senior Notes, the Purchase Contract Agent shall, as
soon as practicable thereafter, mail, first class, postage pre-paid, to the
Holders of Corporate Units a notice:

 

(i)            containing such information as is
contained in the notice or solicitation;

 

37

 

(ii)           stating that each Holder on the
record date set by the Purchase Contract Agent therefor (which, to the extent
possible, shall be the same date as the record date set by the Company for
determining the holders of Senior Notes entitled to vote) shall be entitled to
instruct the Purchase Contract Agent as to the exercise of the voting rights
pertaining to the Senior Notes underlying the Applicable Ownership Interests in
Senior Notes that are a component of their Corporate Units; and

 

(iii)          stating the manner in which such
instructions may be given.

 

Upon the written request of
the Holders of Corporate Units on such record date received by the Purchase
Contract Agent at least six days prior to such meeting, the Purchase Contract
Agent shall endeavor insofar as practicable to vote or cause to be voted, in
accordance with the instructions set forth in such requests, the maximum aggregate
principal amount of Senior Notes (rounded down to the nearest integral multiple
of $1,000) as to which any particular voting instructions are received.  In the absence of specific instructions from
the Holder of Corporate Units, the Purchase Contract Agent shall abstain from
voting the Senior Notes underlying Applicable Ownership Interests in Senior
Notes that are a component of such Corporate Units.  The Company hereby agrees, if applicable, to solicit Holders of
Corporate Units to timely instruct the Purchase Contract Agent as to the
exercise of such voting rights in order to enable the Purchase Contract Agent
to vote such Senior Notes.

 

(c)           The Holders of Corporate Units and the Holders of Treasury
Units shall have no voting or other rights in respect of Common Stock.

 

Section 4.04.  Special Event Redemption.

 

(a)           If the Company elects to redeem the Senior Notes following
the occurrence of a Special Event as permitted by the Indenture, it shall
notify the Collateral Agent in writing that a Special Event has occurred and
that it intends to redeem the Senior Notes on the Special Event Redemption
Date.  Upon the occurrence of such
Special Event Redemption while Senior Notes are still credited to the
Collateral Account, the Collateral Agent shall, and is hereby authorized to,
instruct the Securities Intermediary to present the Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes for payment as may be
required by their respective terms and to direct the Indenture Trustee to remit
the Redemption Price to the Securities Intermediary for credit to the
Collateral Account, on or prior to 12:30 p.m., New York City time, on such
Special Event Redemption Date, by federal funds check or wire transfer of
immediately available funds.  Upon receipt
of such funds by the Securities Intermediary and the credit thereof to the
Collateral Account, the Senior Notes underlying Pledged Applicable Ownership
Interests in Senior Notes shall be released from the Collateral Account and
promptly transferred to the Company. 
Upon the crediting of such funds to the Collateral Account, the
Collateral Agent, at the written direction of the Company, shall instruct the
Securities Intermediary to (i) apply an amount equal to the Redemption Amount
of such funds to purchase the Treasury Portfolio from the Quotation Agent, (ii)
credit to the Collateral Account the Applicable Ownership Interests in the
Treasury Portfolio and (iii) promptly remit the

 

38

 

remaining portion of such funds to the
Purchase Contract Agent for payment to the Holders of Corporate Units, in
accordance with their respective interests.

 

(b)           Upon the occurrence of a Special Event Redemption, (i) the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) will be substituted as Collateral
for the Pledged Applicable Ownership Interests in Senior Notes and will be held
by the Collateral Agent in accordance with the terms hereof to secure the Obligation
of each Holder of Corporate Units, (ii) the Holders of Corporate Units and the
Collateral Agent shall have such rights and obligations, and the Collateral
Agent shall have such security interest, with respect to such Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of
the definition of such term) as the Holders of Corporate Units and the
Collateral Agent had in respect of the Pledged Applicable Ownership Interests
in Senior Notes, subject to the Pledge thereof, and (iii) any reference in this
Agreement to Applicable Ownership Interests in Senior Notes shall be deemed to
be a reference to such Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (i) of the definition of such term).  The Company may cause to be made in any
Corporate Units Certificates thereafter to be issued such change in phraseology
and form (but not in substance) as may be appropriate to reflect the
substitution of the Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (i) of the definition of such term) for Applicable
Ownership Interests in Senior Notes as Collateral.

 

Section 4.05.  Payments to Purchase Contract Agent.  The Securities
Intermediary shall use commercially reasonable efforts to deliver any payments
required to be made by it to the Purchase Contract Agent hereunder to the
account designated by the Purchase Contract Agent for such purpose not later
than 12:00 p.m. (New York City time) on the Business Day such payment is
received by the Securities Intermediary; provided,
however, that if such payment is
received on a day that is not a Business Day or after 11:00 a.m. (New York City
time) on a Business Day, then the Securities Intermediary shall use
commercially reasonable efforts to deliver such payment to the Purchase
Contract Agent no later than 10:30 a.m. (New York City time) on the next
succeeding Business Day.

 

Section 4.06.  Payments Held in Trust.  If the Purchase Contract Agent or any Holder
shall receive any payments on account of financial assets credited to the
Collateral Account (other than interest on the Senior Notes or distributions on
the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (ii) of the definition thereof)) and not released therefrom in
accordance with this Agreement, the Purchase Contract Agent or such Holder
shall hold such payments as trustee of an express trust for the benefit of the
Company and, upon receipt of an Officers’ Certificate of the Company so
directing, promptly deliver such payments to the Securities Intermediary for
credit to the Collateral Account or to the Company for application to the
Obligations of the applicable Holder or Holders, and the Purchase Contract
Agent and Holders shall acquire no right, title or interest in any such
payments of principal amounts so received. 
The Purchase Contract Agent shall have no liability under this Section
4.06 unless and until it has been notified in writing that such payment was
delivered to it erroneously and shall have no liability for any action taken,
suffered or omitted to be taken prior to its receipt of such notice.

 

39

 

ARTICLE 5

THE PURCHASE CONTRACTS

 

Section 5.01.  Purchase of Shares of Common Stock.  (a) Each Purchase
Contract shall obligate the Holder of the related Unit to purchase, and the
Company to sell, on the Purchase Contract Settlement Date at a price equal to
the Stated Amount (the “Purchase Price”),
a number of newly issued shares of Common Stock (subject to Section 5.08) equal
to the Settlement Rate unless an Early Settlement, a Cash Merger Early
Settlement or a Termination Event with respect to the Units of which such
Purchase Contract is a part shall have occurred.  The “Settlement Rate”
is equal to:

 

(i)            If the Applicable Market Value is
greater than or equal to $[•] (the “Threshold
Appreciation Price”), [•] shares of Common Stock per Purchase
Contract (the “Minimum Settlement Rate”);

 

(ii)           if the Applicable Market Value is
less than the Threshold Appreciation Price but greater than $[•] (the “Reference Price”), the number of shares of
Common Stock per Purchase Contract having a value (based on the Applicable
Market Value) equal to the Stated Amount;

 

(iii)          if the Applicable Market Value is less
than or equal to the Reference Price, [•] shares of Common Stock per Purchase
Contract (the “Maximum Settlement Rate”);

 

in each case subject to
adjustment as provided in Section 5.04 (and in each case rounded upward or
downward to the nearest 1/10,000th of a share).

 

The “Applicable Market Value” means the average
of the Closing Price per share of Common Stock on each of the 20 consecutive
Trading Days ending on the third Trading Day immediately preceding the Purchase
Contract Settlement Date, subject to adjustment as set forth under Section 5.04
hereof.

 

The “Closing Price” per share of Common Stock on
any date of determination means:

 

(i)            the closing sale price as of the
close of the principal trading session (or, if no closing price is reported,
the last reported sale price) per share on the New York Stock Exchange, Inc.
(the “NYSE”) on such date; or

 

(ii)           if the Common Stock is not listed for
trading on the NYSE on any such date, the closing sale price (or, if no closing
price is reported, the last reported sale price) per share as reported in the
composite transactions for the principal United States securities exchange on
which the Common Stock is so listed; or

 

(iii)          if the Common Stock is not so listed
on a United States national or regional securities exchange, the closing sale
price (or, if no closing price is reported, the last reported sale price) per
share as reported by The Nasdaq National Market; or

 

40

 

(iv)          if the Common Stock is not so reported
by the Nasdaq National Market, the last quoted bid price for the Common Stock
in the over-the-counter market as reported by the National Quotation Bureau or
similar organization; or

 

(v)           if the bid price referred to in
clause (iv) above is not available, the average of the mid-point of the last
bid and ask prices of the Common Stock on such date from at least three
nationally recognized independent investment banking firms retained by the
Company for purposes of determining the Closing Price.

 

A “Trading Day” means a day on which the
Common Stock (i) is not suspended from trading on any national or regional
securities exchange or association or over-the-counter market at the close of
business and (ii) has traded at least once on the national or regional securities
exchange or association or over-the-counter market that is the primary market
for the trading of the Common Stock.

 

(b)           Each Holder of a Corporate Unit or a Treasury Unit, by its
acceptance of such Unit:

 

(i)            irrevocably authorizes the Purchase
Contract Agent to enter into and perform the related Purchase Contract on its
behalf as its attorney-in-fact (including, without limitation, the execution of
Certificates on behalf of such Holder);

 

(ii)           agrees to be bound by the terms and
provisions of such Unit, including but not limited to the terms and provisions
of the Purchase Contract;

 

(iii)          covenants and agrees to perform its
obligations under such Purchase Contract for so long as such Holder remains a
Holder of a Corporate Unit or a Treasury Unit;

 

(iv)          consents to the provisions hereof;

 

(v)           irrevocably authorizes the Purchase
Contract Agent to enter into and perform this Agreement on its behalf and in
its name as its attorney-in-fact;

 

(vi)          consents to, and agrees to be bound
by, the Pledge of such Holder’s right, title and interest in and to the
Collateral, including the Applicable Ownership Interests in Senior Notes and
the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) or the Treasury Securities pursuant
to this Agreement, and the delivery of the Senior Notes underlying such
Applicable Ownership Interests in Senior Notes by the Purchase Contract Agent
to the Collateral Agent; and

 

(vii)         for United States federal, state and
local income and franchise tax purposes, agrees to (A) treat its acquisition of
the Corporate Units as an acquisition of the Applicable Ownership Interest in
Senior Notes and Purchase Contract constituting the Corporate Units, (B) treat
the Applicable Ownership Interest in Senior Notes as indebtedness of the
Company and (C) treat itself as the owner of

 

41

 

the applicable interests in
the Collateral, including the Senior Notes underlying the Applicable Ownership
Interests in Senior Notes, the Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (i) of the definition of such term) or the
Treasury Securities, as applicable;

 

provided that upon a Termination Event, the rights of
the Holder of such Units under the Purchase Contract may be enforced without
regard to any other rights or obligations.

 

(c)           Each Holder of a Corporate Unit or a Treasury Unit, by its
acceptance thereof, further covenants and agrees that to the extent and in the
manner provided in Section 5.02 hereof, but subject to the terms thereof, on
the Purchase Contract Settlement Date, Proceeds of the Pledged Applicable
Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests
in the Treasury Portfolio or the Pledged Treasury Securities, as applicable,
equal to the Purchase Price shall be paid by the Collateral Agent to the
Company in satisfaction of such Holder’s obligations under such Purchase
Contract and such Holder shall acquire no right, title or interest in such
Proceeds.

 

(d)           Upon registration of transfer of a Certificate, the
transferee shall be bound (without the necessity of any other action on the
part of such transferee) by the terms of this Agreement and the Purchase
Contracts underlying such Certificate and the transferor shall be released from
the obligations under this Agreement and the Purchase Contracts underlying the
Certificate so transferred.  The Company
covenants and agrees, and each Holder of a Certificate, by its acceptance
thereof, likewise covenants and agrees, to be bound by the provisions of this
paragraph.

 

Section 5.02.  Cash Settlement; Remarketing; Payment of Purchase Price.

 

(a)           Cash Settlement.  (i) Unless (1) a Termination
Event has occurred, (2) a Holder effects an Early Settlement or a Cash Merger
Early Settlement of the underlying Purchase Contract or (3) a Special Event
Redemption has occurred prior to the seventh Business Day immediately preceding
the Purchase Contract Settlement Date, each Holder of Corporate Units shall have
the right to satisfy such Holder’s Obligations on the Purchase Contract
Settlement Date in cash.  Each Holder of
Corporate Units who intends to pay in cash to satisfy such Holder’s Obligations
under the Purchase Contract on the Purchase Contract Settlement Date shall
notify the Purchase Contract Agent by use of a notice in substantially the form
of Exhibit E hereto of his intention to pay in cash (a “Cash Settlement”) the Purchase Price for
the Common Stock to be purchased pursuant to the related Purchase
Contract.  Such notice shall be given
prior to 5:00 p.m. (New York City time) on the seventh Business Day immediately
preceding the Purchase Contract Settlement Date.  Corporate Units Holders may only effect such a Cash Settlement
pursuant to this Section 5.02(a) in integral multiples of 40 Corporate Units.

 

(ii)           A Holder of a Corporate Unit who has
so notified the Purchase Contract Agent of his intention to effect a Cash
Settlement in accordance with Section 5.02(a)(i) above shall pay the Purchase
Price to the Securities Intermediary for deposit in the Collateral Account
prior to 5:00 p.m. (New York City time) on the sixth Business Day immediately
preceding the Purchase Contract Settlement Date, in lawful money of the United
States by certified or cashiers check or wire

 

42

 

transfer in immediately
available funds payable to or upon the order of the Securities Intermediary.

 

(iii)          If a Holder of a Corporate Unit fails
to notify the Purchase Contract Agent of its intention to make a Cash
Settlement in accordance with Section 5.02(a)(i), or does notify the Purchase
Contract Agent as provided in Section 5.02(a)(i) of its intention to pay the
Purchase Price in cash, but fails to make such payment as required by Section
5.02(a)(ii), such Holder shall be deemed to have consented to the disposition
of the Senior Notes underlying the Pledged Applicable Ownership Interests in
Senior Notes pursuant to each Remarketing as described in Section 5.02(b)
below.

 

(iv)          Promptly after 5:00 p.m. (New York
City time) on the sixth Business Day preceding the Purchase Contract Settlement
Date, the Purchase Contract Agent, based on notices received by the Purchase
Contract Agent pursuant to Section 5.02(a)(i) hereof and notice from the
Securities Intermediary regarding cash received by it prior to such time, shall
notify the Collateral Agent of the aggregate number of Senior Notes to be
remarketed in each Remarketing in a notice substantially in the form of Exhibit
K hereto.

 

(v)           Upon (1) receipt by the Collateral
Agent of a notice from the Purchase Contract Agent promptly after the receipt
by the Purchase Contract Agent of a notice from a Holder of Corporate Units
that such Holder has elected, in accordance with Section 5.02(a)(i) to effect a
Cash Settlement and (2) the payment by such Holder of the Purchase Price in
accordance with Section 5.02(a)(ii) above then the Collateral Agent shall:

 

(A)          instruct the Securities Intermediary
promptly to invest any such Cash in Permitted Investments consistent with the
instructions of the Company as provided for below in this Section 5.02(a)(v);

 

(B)           release from the Pledge the Senior
Notes underlying the Applicable Ownership Interest in Senior Notes related to
the Corporate Units as to which such Holder has effected a Cash Settlement; and

 

(C)           instruct the Securities Intermediary
to Transfer all such Senior Notes to the Purchase Contract Agent for
distribution to such Holder, in each case free and clear of the Pledge created
hereby, whereupon the Purchase Contract Agent shall Transfer such Senior Notes
in accordance with written instructions provided by the Holder thereof or, if
no such instructions are given to the Purchase Contract Agent by the Holder,
the Purchase Contract Agent shall hold such Senior Notes, and any interest
payment thereon, in the name of the Purchase Contract Agent or its nominee in
trust for the benefit of such Holder until the expiration of the time period
specified in the relevant abandoned property laws of the state where such
Senior Notes and interest payments thereon, if any, are held.

 

43

 

The Company shall instruct
the Collateral Agent in writing as to the type of Permitted Investments in
which any such Cash shall be invested; provided,
however, that if the Company fails to deliver such written instructions by
10:30 a.m. (New York City time) on the day such Cash is received by the
Collateral Agent or to be reinvested by the Securities Intermediary, the
Collateral Agent shall instruct the Securities Intermediary to invest such Cash
in the Permitted Investments described in clause (6) of the definition of
Permitted Investments. In no event shall the Collateral Agent or Securities
Intermediary be liable for the selection of Permitted Investments or for
investment losses incurred thereon. The Collateral Agent and Securities
Intermediary shall have no liability in respect of losses incurred as a result
of the failure of the Company to provide timely written investment direction.

 

Upon maturity of the
Permitted Investments on the Purchase Contract Settlement Date, the Collateral
Agent shall, and is hereby authorized to, (A) instruct the Securities
Intermediary to remit to the Company on the Purchase Contract Settlement Date
such portion of the proceeds of such Permitted Investments as is equal to the
aggregate Purchase Price under all Purchase Contracts in respect of which Cash
Settlement has been affected as provided in this Section 5.02 to the Company on
the Purchase Contract Settlement Date, and (B) release any amounts in excess of
such amount earned from such Permitted Investments to the Purchase Contract
Agent for distribution to the Holders who have effected Cash Settlement
pro-rata in proportion to the amount paid by such Holders under Section
5.02(a)(ii) above.

 

(b)           Remarketing.  (i) Unless a Special Event
Redemption or a Termination Event has occurred prior to the Initial Remarketing
Date, in order to dispose of the Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes of any Holders of Corporate Units who have
not notified the Purchase Contract Agent of their intention to effect a Cash
Settlement as provided in Section 5.02(a)(i) above, or who have so notified the
Purchase Contract Agent but failed to make such payment as required by Section
5.02(a)(ii) above, the Company shall engage the Remarketing Agent pursuant to
the Remarketing Agreement to sell such Senior Notes.  The Purchase Contract Agent, based on the notices specified
pursuant to Section 5.02(a)(iv), shall notify the Remarketing Agent, promptly
after 5:00 p.m. (New York City time) on the sixth Business Day immediately
preceding the Purchase Contract Settlement Date, of the aggregate principal
amount of Senior Notes attributable to the Pledged Applicable Ownership
Interests in Senior Notes that are to be remarketed.  Concurrently, the Custodial Agent, based on the notices specified
in clause (ii) below of this Section 5.02(b), will present for Remarketing the
Separate Senior Notes to the Remarketing Agent.

 

(ii)           Prior to 5:00 p.m. (New York City
time) on the seventh Business Day immediately preceding the Purchase Contract
Settlement Date, but no earlier than the Payment Date immediately preceding
such date, holders of Separate Senior Notes may elect to have their Separate
Senior Notes remarketed in all Remarketings under the Remarketing Agreement by
delivering their Separate Senior Notes, along with a notice of such election,
substantially in the form of Exhibit L attached hereto, to the Custodial
Agent.  After such time, such election
shall become an irrevocable election to have such Separate Senior Notes
remarketed in all Remarketings.  The
Custodial Agent shall hold the Separate

 

44

 

Senior Notes in an account
separate from the Collateral Account in which the Senior Notes underlying the
Pledged Applicable Ownership Interests in Senior Notes shall be held.  Holders of Separate Senior Notes electing to
have their Separate Senior Notes remarketed will also have the right to
withdraw that election by written notice to the Custodial Agent, substantially
in the form of Exhibit M hereto, on or prior to 5:00 p.m. (New York City time)
on the seventh Business Day immediately preceding the Purchase Contract Settlement
Date, and following such notice the Custodial Agent shall return such Separate
Senior notes to such holder.

 

(iii)          Upon receipt of notice from the
Purchase Contract Agent as set forth in Section 5.02(b)(i) above and receipt of
the Separate Senior Notes (if any) from the Custodial Agent, the Remarketing
Agent shall, on the Initial Remarketing Date, use reasonable efforts to
remarket such Senior Notes and such Separate Senior Notes at a price (the “Remarketing Price”) based on the Reset Rate
equal to 100% of the aggregate principal amount of such Senior Notes and such
Separate Senior Notes being remarketed, as provided in the Remarketing
Agreement, for settlement on the Purchase Contract Settlement Date.  If, in spite of using its reasonable
efforts, the Remarketing Agent cannot remarket such Senior Notes and such
Separate Senior Notes at the Remarketing Price (other than to the Company) for
any reason, or the remarketing has not occurred because a condition precedent
to the remarketing has not been fulfilled (in each case, a “Failed Remarketing”) on the Initial
Remarketing Date, the Remarketing Agent shall, on the Second Remarketing Date,
use its reasonable efforts to remarket such Senior Notes and such Separate
Senior Notes at the Remarketing Price for settlement on the Purchase Contract
Settlement Date.  If, in spite of the
Remarketing Agent’s reasonable efforts, a Failed Remarketing shall have
occurred on the Second Remarketing Date, the Remarketing Agent shall, on the
Final Remarketing Date, use reasonable efforts to remarket such Senior Notes
and such Separate Senior Notes at the Remarketing Price for settlement on the
Purchase Contract Settlement Date.

 

(iv)          If the Remarketing Agent is able to
remarket such Senior Notes and such Separate Senior Notes (if any) in any
Remarketing (to parties other than the Company) in accordance with the
Remarketing Agreement (a “Successful
Remarketing”), the Collateral Agent shall:

 

(A)          on the Purchase Contract Settlement
Date, instruct the Securities Intermediary to Transfer the Senior Notes
underlying Pledged Applicable Ownership Interests in Senior Notes to the
Remarketing Agent upon confirmation of deposit by the Remarketing Agent of the
Proceeds of such Remarketing attributable to such Senior Notes in the Collateral
Account; and

 

(B)           on the Purchase Contract Settlement
Date, in consultation with the Purchase Contract Agent, instruct the Securities
Intermediary to remit a portion of such Proceeds equal to the aggregate
principal amount of such Senior Notes to satisfy in full the Obligations of
Holders of Corporate Units to pay the Purchase Price for the shares of Common
Stock under the related Purchase Contracts, less the amount of any accrued and
unpaid

 

45

 

Contract Adjustment Payments
payable to such Holders, and to remit the balance of such Proceeds, if any, to
the Purchase Contract Agent for distribution to Holders.

 

On the Purchase Contract
Settlement Date, the Company shall pay the Remarketing Fee to the Remarketing
Agent in accordance with the Remarketing Agreement.  With respect to the remarketed Separate Senior Notes, upon a
Successful Remarketing, any proceeds of the Successful Remarketing attributable
to the Separate Senior Notes will be remitted to the Custodial Agent for
payment on the Purchase Contract Settlement Date to the holders of Separate
Senior Notes who submitted such Separate Senior Notes for remarketing pursuant
hereto.

 

(v)           Following a Failed Remarketing on the
Final Remarketing Date (a “Failed Final
Remarketing”), as of the Purchase Contract Settlement Date, each
Holder of any Pledged Applicable Ownership Interests in Senior Notes, unless
such Holder has delivered the Purchase Price to the Securities Intermediary for
deposit in the Collateral Account prior to 5:00 p.m. (New York City time) on
the second Business Day immediately preceding the Purchase Contract Settlement
Date in lawful money of the United States by certified or cashiers check or
wire transfer in immediately available funds payable to or upon the order of
the Securities Intermediary, shall be deemed to have exercised such Holder’s
Put Right with respect to the Senior Notes underlying such Pledged Applicable
Ownership Interests in Senior Notes and to have elected to have a portion of
the Proceeds of the Put Right set-off against such Holder’s obligation to pay
the aggregate Purchase Price for the shares of Common Stock to be issued under
the related Purchase Contracts in full satisfaction of such Holders’
obligations under such Purchase Contracts. 
Following such set-off, each such Holder’s obligations to pay the
Purchase Price for the shares of Common Stock will be deemed to be satisfied in
full, and the Collateral Agent shall cause the Securities Intermediary to
release the Senior Notes underlying such Pledged Applicable Interests in Senior
Notes from the Collateral Account and shall promptly transfer such Senior Notes
to the Company.  Thereafter, the
Collateral Agent shall promptly remit the remaining portion of the Proceeds of
the Holder’s exercise of the Put Right in excess of the aggregate Purchase
Price for the shares of Common Stock to be issued under such Purchase Contracts
to the Purchase Contract Agent for payment to the Holder of the Corporate Units
to which such Applicable Ownership Interests in Senior Notes relate.

 

(vi)          Not later than 20 Business Days prior
to the Initial Remarketing Date, the Company shall request the Depositary or
its nominee to notify the Beneficial Owners or Depositary Participants holding
Units and Separate Senior Notes of the procedures to be followed in each
Remarketing including, in the case of a Failed Final Remarketing, the
procedures that must be followed by a holder of Separate Senior Notes if such
Holder wishes to exercise its Put Right or by a Holder if such Holder elects
not to exercise its Put Right.

 

(vii)         The Company agrees to use its
commercially reasonable efforts to ensure that, if required by applicable law,
(x) a registration statement, including a

 

46

 

prospectus, under the
Securities Act with regard to the full amount of the Senior Notes to be
remarketed in each Remarketing in each case in a form that may be used by the
Remarketing Agent in connection with such Remarketing shall be effective with
the Securities and Exchange Commission and (y) to make available copies of such
prospectus.

 

(viii)                  The Company shall issue a press release and cause a notice of any
Failed Final Remarketing to be published on its website (with a copy of such notice
to be provided to the Purchase Contract Agent) before 9:00 a.m. New York City
time on the Business Day immediately following such Failed Final Remarketing.

 

(c)           In the case of a Treasury Unit or a Corporate Unit (if
Applicable Ownership Interests in the Treasury Portfolio have replaced the
Applicable Ownership Interests in Senior Notes as a component of such Corporate
Unit), upon the maturity of the Pledged Treasury Securities or the appropriate
Pledged Applicable Ownership Interests in the Treasury Portfolio held by the
Securities Intermediary on or prior to the Business Day immediately preceding
the Purchase Contract Settlement Date, the principal amount of the Treasury
Securities or the appropriate Pledged Applicable Ownership Interests in the Treasury
Portfolio received by the Securities Intermediary shall be invested promptly in
Permitted Investments.  On the Purchase
Contract Settlement Date, an amount equal to the Purchase Price for all related
Purchase Contracts shall be remitted to the Company as payment of such Holder’s
Obligations under such Purchase Contracts without receiving any instructions
from the Holder.  In the event the sum
of the Proceeds from either the related Pledged Treasury Securities or the
related Pledged Applicable Ownership Interests in the Treasury Portfolio and
the Proceeds from such Permitted Investments is in excess of the aggregate
Purchase Price, the Collateral Agent shall cause the Securities Intermediary to
distribute such excess, when received by the Securities Intermediary, to the
Purchase Contract Agent for the benefit of the Holder of the related Treasury
Units or Corporate Units, as applicable.

 

(d)           The obligations of the Holders to pay the Purchase Price
are non-recourse obligations and, except to the extent satisfied by Early
Settlement, Cash Merger Early Settlement or Cash Settlement or terminated upon
a Termination Event, are payable solely out of the proceeds of any Collateral
pledged to secure the obligations of the Holders, and in no event will Holders
be liable for any deficiency between the proceeds of the disposition of
Collateral and the Purchase Price.

 

(e)           The Company shall not be obligated to issue any shares of
Common Stock in respect of a Purchase Contract or deliver any certificates
thereof to the Holder of the related Units unless the Company shall have
received payment for the Common Stock to be purchased thereunder in the manner
herein set forth.

 

Section 5.03.  Issuance of Shares of Common Stock.   Unless a
Termination Event, an Early Settlement or a Cash Merger Early Settlement shall
have occurred, subject to Section 5.04(b), on the Purchase Contract Settlement
Date upon receipt of the aggregate Purchase Price payable on all Outstanding
Units in accordance with Section 5.02 above, the Company shall issue and
deposit with the Purchase Contract Agent, for the benefit of the Holders of the
Outstanding Units, one or more certificates representing newly issued

 

47

 

shares of Common Stock registered in the name
of the Purchase Contract Agent (or its nominee) as custodian for the Holders
(such certificates for shares of Common Stock, together with any dividends or
distributions for which a record date and payment date for such dividend or
distribution has occurred after the Purchase Contract Settlement Date, being
hereinafter referred to as the “Purchase
Contract Settlement Fund”) to which the Holders are entitled
hereunder.

 

Subject to the foregoing,
upon surrender of a Certificate to the Purchase Contract Agent on or after the
Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early
Settlement Date, as the case may be, together with settlement instructions
thereon duly completed and executed, the Holder of such Certificate shall be entitled
to receive forthwith in exchange therefor a certificate representing that
number of newly issued whole shares of Common Stock which such Holder is
entitled to receive pursuant to the provisions of this Article 5 (after taking
into account all Units then held by such Holder), together with cash in lieu of
fractional shares as provided in Section 5.08 and any dividends or
distributions with respect to such shares constituting part of the Purchase
Contract Settlement Fund, but without any interest thereon, and the Certificate
so surrendered shall forthwith be cancelled. 
Such shares shall be registered in the name of the Holder or the
Holder’s designee as specified in the settlement instructions provided by the
Holder to the Purchase Contract Agent. 
If any shares of Common Stock issued in respect of a Purchase Contract
are to be registered in the name of a Person other than the Person in whose
name the Certificate evidencing such Purchase Contract is registered (but
excluding any Depositary or nominee thereof), no such registration shall be
made unless and until the Person requesting such registration has paid any
transfer and other taxes (including any applicable stamp taxes) required by
reason of such registration in a name other than that of the registered Holder
of the Certificate evidencing such Purchase Contract or has established to the
satisfaction of the Company that such tax either has been paid or is not
payable.

 

Section 5.04.  Adjustment of each Fixed Settlement Rate.  (a) Adjustments for Dividends, Distributions, Stock Splits, Etc.

 

(i)            In case the Company shall pay or
make a dividend or other distribution on Common Stock in Common Stock, each
Fixed Settlement Rate in effect at the close of business on the date fixed for
the determination of shareholders entitled to receive such dividend or other
distribution shall be increased by multiplying each Fixed Settlement Rate by a
fraction of which:

 

(A)          the numerator shall be the sum of the
number of shares of Common Stock outstanding at the close of business on the
date fixed for such determination and the total number of shares constituting
such dividend or other distribution; and

 

(B)           the denominator shall be the number
of shares of Common Stock outstanding at the close of business on the date
fixed for such determination,

 

48

 

such increase in each Fixed
Settlement Rate to become effective immediately at the opening of business on
the Business Day following the date fixed for such determination.  For the purposes of this paragraph (i), the
number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include any shares
issuable in respect of any scrip certificates issued in lieu of fractions of
shares of Common Stock.  The Company
agrees that it shall not pay any dividend or make any distribution on shares of
Common Stock held in the treasury of the Company.

 

(ii)           In case the Company shall issue
rights, warrants or options, other than pursuant to any dividend reinvestment
plans or share purchase plans, to all holders of its Common Stock entitling
them, for a period expiring within 45 days after the record date for the
determination of shareholders entitled to receive such rights, warrants or
options, to subscribe for or purchase shares of Common Stock at a price per
share less than the Current Market Price per share of Common Stock on the date
of announcement of such issuance, each Fixed Settlement Rate in effect at the
close of business on the date of such announcement shall be increased by
multiplying such Fixed Settlement Rate by a fraction of which:

 

(A)          the numerator shall be the number of
shares of Common Stock outstanding at the close of business on the date of such
announcement plus the number of shares of Common Stock so offered for
subscription or purchase; and

 

(B)           the denominator shall be the number
of shares of Common Stock outstanding at the close of business on the date of
such announcement plus the number of shares of Common Stock that the aggregate
offering price of the total number of shares of Common Stock so offered for
subscription or purchase in the manner described in this Section 5.04(a)(ii)
would purchase at the Current Market Price on the date of such announcement,

 

such increase in each Fixed
Settlement Rate to become effective immediately after the opening of business
on the Business Day following the date of such announcement.  The Company agrees that it shall notify the
Purchase Contract Agent if any issuance of such rights, warrants or options is
cancelled or not completed following the announcement thereof and each Fixed
Settlement Rate shall thereupon immediately be readjusted to the Fixed
Settlement Rate that would then be in effect if such issuance had not been
declared. For the purposes of this clause (ii), the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company but shall include any shares issuable in respect of any scrip
certificates issued in lieu of fractions of shares of Common Stock.  The Company agrees that it shall not issue
any such rights, warrants or options in respect of shares of Common Stock held
in the treasury of the Company.

 

(iii)          In case outstanding shares of Common
Stock shall be subdivided or split into a greater number of shares of Common
Stock, each Fixed Settlement Rate

 

49

 

in effect at the close of
business on the day preceding the day upon which such subdivision or split becomes
effective shall be proportionately increased, and, conversely, in case
outstanding shares of Common Stock shall each be combined into a smaller number
of shares of Common Stock, each Fixed Settlement Rate in effect at the close of
business on the day preceding the day upon which such combination becomes
effective shall be proportionately decreased, such increase or decrease, as the
case may be, to become effective immediately at the opening of business on the
Business Day following the day upon which such subdivision, split or
combination becomes effective.

 

(iv)          (w) In case the Company shall, by
dividend or otherwise, distribute to all holders of its Common Stock evidences
of its indebtedness or assets (including shares of capital stock, securities, cash
and property but excluding any rights, warrants or options referred to in
Section 5.04(a)(ii) above, any dividend or distribution paid exclusively in
cash and any dividend or distribution referred to in Section 5.04(a)(i) above)
(any of the foregoing hereinafter in this Section 5.02(a)(iv) called the “Distributed Property”), each Fixed
Settlement Rate in effect at the close of business on the date fixed for the
determination of shareholders entitled to receive such distribution shall be
adjusted by multiplying each Fixed Settlement Rate by a fraction of which:

 

(A)          the numerator shall be such Current
Market Price per share of Common Stock; and

 

(B)           the denominator shall be the Current
Market Price per share of Common Stock on the date fixed for such determination
less the then fair market value of the portion of the assets or evidences of
indebtedness so distributed applicable to one share of Common Stock (as
determined by the Board of Directors, whose determination shall be conclusive
and the basis for which shall be described in a Board Resolution),

 

such adjustment to each
Fixed Settlement Rate to become effective at the opening of business on the
Business Day following the date fixed for the determination of shareholders
entitled to receive such distribution; provided
that if the fair market value of the Distributed Property applicable
to one share of Common Stock is equal to or greater than the Current Market
Price on the date fixed for the determination of stockholders entitled to
receive such distribution, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive
upon settlement the amount of Distributed Property such Holder would have
received had such Holder settled each Purchase Contract on the date fixed for
such determination as if the Purchase Contract Settlement Date were such date
fixed for such determination.  In any
case in which this Section 5.04(a)(iv) is applicable, Section 5.04(a)(ii) shall
not be applicable.  In the event that
such dividend or distribution is not so paid or made, each Fixed Settlement
Rate shall again be adjusted to be the Fixed Settlement Rate that would then be
in effect if such dividend or distribution had not been declared.

 

50

 

(x)  Notwithstanding the foregoing, if the
Distributed Property distributed by the Company to all holders of its Common
Stock consist of capital stock of, or similar equity interests in, a Subsidiary
or other business unit of the Company, clause (w) above shall not apply and
instead each Fixed Settlement Rate shall be increased so that each Fixed
Settlement Rate shall be equal to the rate determined by multiplying each such
rate in effect immediately prior to the close of business on the record date
with respect to such distribution by a fraction of which,

 

(A)          the numerator shall be the sum of (A)
the average of the Closing Prices of the Common Stock for the ten (10)
consecutive Trading Days commencing on and including the fifth Trading Day
after the date on which “ex-dividend trading” commences for such dividend or
distribution on the New York Stock Exchange, the Nasdaq National Market or such
other national or regional exchange or market on which such securities are then
listed or quoted (the “Ex-Dividend Date”)
plus (B) the average Closing Prices of the securities distributed in respect of
each share of Common Stock for the ten (10) consecutive Trading Days commencing
on and including the fifth Trading Day after the Ex-Dividend Date; and

 

(B)           the denominator shall be the average
of the Closing Prices of the Common Stock for the ten (10) consecutive Trading
Days commencing on and including the fifth Trading Day after the Ex-Dividend
Date,

 

such adjustment to each
Fixed Settlement Rate to become effective immediately prior to the opening of
business on the Business Day following the record date with respect to such
distribution.  In any case in which this
paragraph (x) is applicable, Section 5.02(a)(i), Section 5.02(a)(ii) and
paragraph (w) of this Section 5.02(a)(iv) shall not be applicable.

 

(y)  Notwithstanding anything to the contrary
contained in this Section 5.02(a), rights or warrants distributed by the
Company to all holders of Common Stock entitling the holders thereof to subscribe
for or purchase shares of the Company’s capital stock (either initially or
under certain circumstances), which rights, options or warrants, until the
occurrence of a specified event or events (“Trigger
Event”) (i) are deemed to be transferred with such shares of Common
Stock; (ii) are not exercisable; and (iii) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for
purposes of this Section 5.04(a) (and no adjustment to each Fixed Settlement
Rate under this Section 5.04(a) will be required) until the occurrence of the
earliest Trigger Event, whereupon such rights, options and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is
required) to each Fixed Settlement Rate shall be made under this Section
5.02(a)(iv).  In addition, in the event
of any distribution of rights, options or warrants, or any Trigger Event with
respect thereto that was counted for purposes of calculating a distribution
amount for which an adjustment to each Fixed Settlement Rate under this Section
5.04(a) was made, (1) in the case of any such rights, options or warrants that
shall all have been redeemed or repurchased without exercise by any holders
thereof, each Fixed

 

51

 

Settlement Rate shall be
readjusted upon such final redemption or repurchase to give effect to such
distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or repurchase price received by
a holder or holders of Common Stock with respect to such rights, options or
warrants (assuming such holder had retained such rights, options or warrants),
made to all holders of Common Stock as of the date of such redemption or
repurchase, and (2) in the case of such rights, options or warrants that shall
have expired or been terminated without exercise by any holders thereof, each
Fixed Settlement Rate shall be readjusted as if such rights, options and
warrants had not been issued.

 

(z)  For purposes of this Section 5.02(a)(iv) and
Section 5.02(a)(i) and Section 5.02(a)(ii), any dividend or distribution to
which this Section 5.02(a)(iv) is applicable that also includes shares of
Common Stock, or rights, options or warrants to subscribe for or purchase
shares of Common Stock (or both), shall be deemed instead to be (1) a dividend
or distribution of the evidences of indebtedness, assets or shares of capital
stock other than such shares of Common Stock or rights, options or warrants
(and any Settlement Rate adjustment required by this Section 5.02(a)(iv) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of Common Stock or
such rights, options or warrants (and any further Settlement Rate adjustment
required by Section 5.02(a)(i) and Section 5.02(a)(ii) with respect to such
dividend or distribution shall then be made), except (A) the record date of
such dividend or distribution shall be deemed to be “the date fixed for the
determination of shareholders entitled to receive such dividend or other
distribution”, “the date fixed for the determination of shareholders entitled
to receive such rights, options or warrants” and “the date fixed for such
determination” within the meaning of Section 5.02(a)(i) and Section 5.02(a)(ii)
and (B) any shares of Common Stock included in such dividend or distribution
shall not be deemed “outstanding at the close of business on the date fixed for
the determination of shareholders entitled to receive such dividend or other
distribution” or “outstanding at the close of business on the date fixed for
such determination” within the meaning of Section 5.02(a)(i).

 

(v)           In case the Company shall make any
dividend or distribution consisting exclusively of cash to all holders of
outstanding shares of Common Stock (excluding (I) any dividend or distribution
in connection with the liquidation, dissolution or termination of the Company,
or (II) any cash dividend on Common Stock to the extent that the aggregate cash
dividend per share of Common Stock in any fiscal quarter does not exceed $[•] (the “Dividend
Threshold Amount”), then each Fixed Settlement Rate will be adjusted
by multiplying each Fixed Settlement Rate in effect immediately prior to the
close of business on the record date with respect to such dividend or
distribution by a fraction of which,

 

(A)          the numerator is the Current Market
Price on the date fixed for the determination of stockholders entitled to
receive such distribution, minus the Dividend Threshold Amount; and

 

52

 

(B)           the denominator is such Current
Market Price, minus the amount per share of such dividend or distribution,

 

such adjustment to each
Fixed Settlement Rate to be effective immediately prior to the opening of
business on the Business Day following the date fixed for the determination of
stockholders entitled to receive such distribution; provided that if an adjustment is required to be made under
this clause as a result of a distribution that is not a regular quarterly
dividend, the Dividend Threshold Amount will be deemed to be zero; and provided further that if the portion of
the cash so distributed applicable to one share of Common Stock is equal to or
greater than the Current Market Price on the date fixed for the determination
of stockholders entitled to receive such distribution, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the
right to receive upon settlement the amount of cash such Holder would have
received had such Holder settled each Purchase Contract on the date fixed for
such determination as if the Purchase Contract Settlement Date were such date
fixed for such determination.  The
Dividend Threshold Amount is subject to adjustment from time to time in a
manner inversely proportional to any adjustment made to each Fixed Settlement
Rate under this Section 5.02.

 

(vi)          In case a tender or exchange offer
made by the Company or any subsidiary of the Company for all or any portion of
the Common Stock shall expire and such tender or exchange offer (as amended
upon the expiration thereof) shall require the payment to stockholders of
consideration per share of Common Stock having a fair market value (as determined
by the Board of Directors, whose determination shall be conclusive and
described in a resolution of the Board of Directors) that as of the last time
at which tenders or exchanges may be made pursuant to such tender or exchange
offer (as it may be amended) (the “Expiration
Time”) exceeds the Closing Price of a share of Common Stock on the
Trading Day next succeeding the Expiration Time, each Fixed Settlement Rate
shall be increased so that the same shall equal the rate determined by
multiplying each Fixed Settlement Rate in effect immediately prior to the
Expiration Time by a fraction of which,

 

(A)          the numerator shall be equal to the
sum of (1) the fair market value, as determined by the Board of Directors (as
described above in this Section 5.04(a)(vi)), of the aggregate consideration
payable for all shares of Common Stock that the Company or a subsidiary of the
Company, as the case may be, purchased in such tender or exchange offer (the “Purchased Shares”) and (2) the product of
the number of shares of Common Stock outstanding, less any Purchased Shares,
and the Closing Price of the Common Stock on the Trading Day next succeeding
the Expiration Time, and

 

(B)           the denominator shall be equal to the
product of the number of shares of Common Stock outstanding, including the
Purchased Shares, and the Closing Price of the Common Stock on the Trading Day
next succeeding the Expiration Time,

 

53

 

such adjustment to each
Fixed Settlement Rate to become effective immediately prior to the opening of
business on the Business Day following the Expiration Time.  If the Company is obligated to purchase
shares pursuant to any such tender or exchange offer, but the Company is permanently
prevented by applicable law from effecting any such purchases or all such
purchases are rescinded, each Fixed Settlement Rate shall again be adjusted to
be the Fixed Settlement Rate that would then be in effect if such tender or
exchange offer had not been made.

 

(vii)         The reclassification of Common Stock
into securities including securities other than Common Stock (other than any
reclassification upon a Reorganization Event to which Section 5.04(b) applies)
shall be deemed to involve:

 

(A)          a distribution of such securities
other than Common Stock to all holders of Common Stock (and the effective date
of such reclassification shall be deemed to be “the date fixed for the
determination of shareholders entitled to receive such distribution” and the
“date fixed for such determination” within the meaning of paragraph (iv) of
this Section); and

 

(B)           a subdivision, split or combination,
as the case may be, of the number of shares of Common Stock outstanding
immediately prior to such reclassification into the number of shares of Common
Stock outstanding immediately thereafter (and the effective date of such
reclassification shall be deemed to be “the day upon which such subdivision or
split becomes effective” or “the day upon which such combination becomes
effective”, as the case may be, and “the day upon which such subdivision, split
or combination becomes effective” within the meaning of this Section
5.04(a)(iii).

 

(viii)        [Reserved.]

 

(ix)           All adjustments to each Fixed
Settlement Rate shall be calculated to the nearest 1/10,000th of a share of Common
Stock (or if there is not a nearest 1/10,000th of a share, to the next lower
1/10,000th of a share).  If any
adjustments are made to each Fixed Settlement Rate pursuant to this Section
5.04(a), an adjustment shall also be made to the Applicable Market Value solely
to determine which of clauses (i), (ii) or (iii) of the definition of
Settlement Rate in Section 5.01(a) will apply on the Purchase Contract
Settlement Date or any Cash Merger Early Settlement Date.  Such adjustment shall be made by multiplying
the Applicable Market Value by the Adjustment Factor.  The “Adjustment Factor” means, initially, a fraction the
numerator of which shall be the Maximum Settlement Rate immediately after the
first adjustment to each Fixed Settlement Rate pursuant to this Section 5.04(a)
and the denominator of which shall be the Maximum Settlement Rate immediately
prior to such adjustment.  Each time an
adjustment is required to be made to each Fixed Settlement Rate pursuant to this
Section 5.04(a), the Adjustment Factor shall be multiplied by a fraction the
numerator of which shall be the Maximum Settlement Rate immediately after such
adjustment to each Fixed Settlement Rate pursuant to this Section 5.04(a) and
the

 

54

 

denominator of which shall
be the Maximum Settlement Rate immediately prior to such adjustment.  Notwithstanding the foregoing, if any
adjustment to each Fixed Settlement Rate is required to be made pursuant to the
occurrence of any of the events contemplated by this Section 5.04(a) during the
period taken into consideration for determining the Applicable Market Value,
the 20 individual Closing Prices used to determine the Applicable Market Value
shall be adjusted rather than the Applicable Market Value and the Applicable
Market Value shall be determined by (A) multiplying the Closing Prices for
Trading Days prior to such adjustment to each Fixed Settlement Rate by the
Adjustment Factor in effect prior to such adjustment, (B) multiplying the
Closing Prices for Trading Days following such adjustment by the Adjustment
Factor reflecting such adjustment, and (C) dividing the sum of all such
adjusted Closing Prices by 20.

 

(x)            The Company may, but shall not be
required to, make such increases in each Fixed Settlement Rate, in addition to
those required by this Section 5.04(a), as the Board of Directors considers to
be advisable.  The Company may make such
a discretionary adjustment only if it makes the same proportionate adjustment
to each Fixed Settlement Rate.

 

(xi)           If the Company hereafter adopts any
stockholder rights plan involving the issuance of preference share purchase
rights or other similar rights (the “Rights”)
to all holders of the Common Stock, a Holder shall be entitled to receive upon
settlement of any Purchase Contract, in addition to the shares of Common Stock
issuable upon settlement of such Purchase Contract, the related Rights for the
Common Stock, unless such Rights under the future stockholder rights plan have
separated from the Common Stock at the time of conversion, in which case each
Fixed Settlement Rate shall be adjusted as provided in Section 5.04(a)(iv) on
the date such Rights separate from the Common Stock.

 

(b)           Adjustment for Consolidation, Merger or Other
Reorganization Event.

 

(i)            In the event of:

 

(A)          any consolidation or merger of the
Company with or into another Person (other than a merger or consolidation in
which the Company is the continuing corporation and in which the shares of
Common Stock outstanding immediately prior to the merger or consolidation are
not exchanged for cash, securities or other property of the Company or another
corporation);

 

(B)           any sale, transfer, lease or
conveyance to another Person of the property of the Company as an entirety or
substantially as an entirety;

 

(C)           any statutory share exchange of the
Company with another Person (other than in connection with a merger or
acquisition); or

 

(D)          any liquidation, dissolution or
termination of the Company other than as a result of or after the occurrence of
a Termination Event (any

 

55

 

event described in clauses
(A), (B), (C) and (D), a “Reorganization
Event”),

 

each Holder will receive, in
lieu of shares of Common Stock, on the Purchase Contract Settlement Date or any
Early Settlement Date with respect to each Purchase Contract forming a part
thereof, the kind and amount of securities, cash and other property receivable
upon such Reorganization Event (without any interest thereon, and without any
right to dividends or distribution thereon if such dividends or distributions
have a record date that is prior to the Purchase Contract Settlement Date) by a
Holder of one share of Common Stock (the “Exchange
Property”), multiplied by the applicable Settlement Rate.  The kind and amount of Exchange Property
will be determined assuming such holder of one Share of Common Stock is not a
Person with which the Company consolidated or into which the Company merged or
which merged into the Company or to which such sale or transfer was made, as
the case may be (any such Person, a “Constituent
Person”), or an Affiliate of a Constituent Person to the extent such
Reorganization Event provides for different treatment of Common Stock held by
Affiliates of the Company and non-affiliates and such Holder failed to exercise
its rights of election, if any, as to the kind or amount of securities, cash
and other property receivable upon such Reorganization Event (provided that if
the kind or amount of securities, cash and other property receivable upon such
Reorganization Event is not the same for each share of Common Stock held
immediately prior to such Reorganization Event by a Person other than a
Constituent Person or an Affiliate thereof and in respect of which rights of
election shall not have been exercised (“non-electing
share”), then for the purpose of this Section 5.04(b)(i) the kind
and amount of securities, cash and other property receivable upon such
Reorganization Event shall be deemed to be the kind and amount so receivable
per share by a plurality of the non-electing shares).

 

For purposes of determining
the applicable Settlement Rate under this Section 5.04(b)(i) and Section
5.04(b)(ii), the term “Applicable Market Value” shall be deemed to refer to the
“Applicable Market Value” of the Exchange Property, and such value shall be
determined (A) with respect to any publicly traded securities that compose all
or part of the Exchange Property, based on the Closing Price of such
securities, (B) in the case of any cash that composes all or part of the
Exchange Property, based on the amount of such cash and (C) in the case of any
other property that composes all or part of the Exchange Property, based on the
value of such property, as determined by a nationally recognized independent
investment banking firm retained by the Company for this purpose; provided that prior to the separation of
the Rights or any similar stockholder rights from the Common Stock, such Rights
or similar stockholder rights shall be deemed to have no value.  For the purposes of this paragraph only, the
term “Closing Price” shall be deemed to refer to the closing sale price, last
quoted bid price or mid-point of the last bid and ask prices, as the case may
be, of any publicly traded securities that comprise all or part of the Exchange
Property and the term “Trading Day” shall be deemed to refer to any publicly
traded securities that comprise all or part of the Exchange Property.

 

In the event of such a
Reorganization Event, the Person formed by such consolidation, merger or exchange
or the Person that acquires the assets of the Company or, in the event of a
liquidation, dissolution or termination of the Company, the Company or a
liquidating trust created in connection therewith, shall execute and deliver to
the

 

56

 

Purchase Contract Agent an agreement
supplemental hereto providing that each Holder of an Outstanding Unit shall
have the rights provided by this Section 5.04(b)(i).  Such supplemental agreement shall provide for adjustments which,
for events subsequent to the effective date of such supplemental agreement,
shall be, in the sole judgment of the parties executing such agreement, as
nearly equivalent as may be practicable to the adjustments provided for in this
Section 5.04. The above provisions of this Section 5.04 shall similarly apply
to successive Reorganization Events.

 

(ii)           In the event of a consolidation or
merger of the Company with or into another Person, or any merger of another
Person into the Company (other than a merger that does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of
Common Stock), in each case in which 30% or more of the total consideration
paid to the Company’s shareholders consists of cash or cash equivalents (a “Cash Merger”), then a Holder of a Unit may
settle (“Cash Merger Early Settlement”)
its Purchase Contract, upon the conditions set forth below, at the Settlement
Rate in effect immediately prior to the closing of the Cash Merger; provided that no Cash Merger Early
Settlement will be permitted pursuant to this Section 5.04(b)(ii) unless, at
the time such Cash Merger Early Settlement is effected, there is an effective
Registration Statement with respect to any securities to be issued and delivered
in connection with such Cash Merger Early Settlement, if such a Registration
Statement is required (in the view of counsel, which need not be in the form of
a written opinion, for the Company) under the Securities Act.  If such a Registration Statement is so
required, the Company covenants and agrees to use its commercially reasonable
efforts to (x) have in effect a Registration Statement covering any securities
to be delivered in respect of the Purchase Contracts being settled and (y)
provide a Prospectus in connection therewith, in each case in a form that may
be used in connection with such Cash Merger Early Settlement.  If a Holder elects a Cash Merger Early
Settlement of some or all of its Purchase Contracts, such Holder shall be
entitled to receive, on the Cash Merger Early Settlement Date, the aggregate
amount of any accrued and unpaid Contract Adjustment Payments, with respect to
such Purchase Contracts.  The Company
shall pay such amount as a credit against the amount otherwise payable by such
Holder to effect such Cash Merger Early Settlement.

 

Within
five Business Days of the completion of a Cash Merger, the Company shall
provide written notice to Holders of such completion of a Cash Merger, which
shall specify the deadline for submitting the notice to settle early in cash
pursuant to this Section 5.04(b)(ii), the date on which such Cash Merger Early
Settlement shall occur (which date shall be at least five days after the date
of such written notice by the Company, but which shall in no event be later
than the earlier of 20 days after the date of such written notice by the
Company and the fifth Business Day immediately preceding the Purchase Contract
Settlement Date) (the “Cash Merger Early
Settlement Date”), the applicable Settlement Rate and the amount
(per share of Common Stock) of cash, securities and other consideration
receivable by the Holder, including the amount of Contract Adjustment Payments
receivable, upon settlement.

 

57

 

Corporate
Units Holders (unless Applicable Ownership Interests in the Treasury Portfolio
have replaced Applicable Ownership Interests in Senior Notes as a component of
the Corporate Units) and Treasury Units Holders may only effect Cash Merger
Early Settlement pursuant to this Section 5.04(b)(ii) in integral multiples of
40 Corporate Units or Treasury Units, as the case may be.  If Applicable Ownership Interests in the
Treasury Portfolio have replaced Applicable Ownership Interests in Senior Notes
as a component of the Corporate Units, Corporate Units Holders may only effect
Cash Merger Early Settlement pursuant to this Section 5.04(b)(ii) in multiples
of [•] Corporate
Units.  Other than the provisions
relating to timing of notice and settlement, which shall be as set forth in the
immediately preceding paragraph, the provisions of Section 5.01 shall apply
with respect to a Cash Merger Early Settlement pursuant to this Section
5.04(b)(ii).

 

In
order to exercise the right to effect Cash Merger Early Settlement with respect
to any Purchase Contracts, the Holder of the Certificate evidencing Units shall
deliver, no later than 5:00 p.m. (New York City time) on the third Business Day
immediately preceding the Cash Merger Early Settlement Date, such Certificate
to the Purchase Contract Agent at the Corporate Trust Office duly endorsed for
transfer to the Company or in blank with the form of Election to Settle Early
on the reverse thereof duly completed and accompanied by payment (payable to
the Company in immediately available funds) in an amount equal to the result
of:

 

(i)            the product of (A) the Stated Amount
times (B) the number of Purchase Contracts with respect to which the Holder has
elected to effect Cash Merger Early Settlement, less

 

(ii)           the amount of any accrued and unpaid
Contract Adjustment Payments (except when the Cash Merger Early Settlement Date
falls after any Record Date and prior to the next succeeding Payment Date).

 

Upon
receipt of such Certificate and payment of such funds, the Purchase Contract
Agent shall pay the Company from such funds the related Purchase Price pursuant
to the terms of the related Purchase Contracts, and notify the Collateral Agent
that all the conditions necessary for a Cash Merger Early Settlement by a
Holder have been satisfied pursuant to which the Purchase Contract Agent has
received from such Holder, and paid to the Company as confirmed in writing by
the Company, the related Purchase Price.

 

Upon
receipt by the Collateral Agent of the notice from the Purchase Contract Agent
set forth in the immediately preceding paragraph, the Collateral Agent shall
release from the Pledge, (1) the Senior Notes underlying the Pledged Applicable
Ownership Interests in Senior Notes or the Pledged Applicable Ownership
Interests in the Treasury Portfolio, in the case of a Holder of Corporate Units
or (2) the Pledged Treasury Securities, in the case of a Holder of Treasury
Units, in each case with a Value equal to the product of (x) the Stated Amount
and (y) the number of Purchase Contracts as to which such Holder has elected to
effect Cash Merger Early Settlement, and shall instruct the Securities
Intermediary to Transfer all such Pledged Applicable Ownership Interests in the
Treasury Portfolio

 

58

 

or Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes or Pledged Treasury
Securities, as the case may be, to the Purchase Contract Agent for distribution
to such Holder, in each case free and clear of the Pledge created hereby.

 

If
a Holder properly effects an effective Cash Merger Early Settlement in
accordance with the provisions of this Section 5.04(b)(ii), the Company will
deliver (or will cause the Collateral Agent to deliver) to the Holder on the
Cash Merger Early Settlement Date:

 

(A)          the kind and amount of securities,
cash and other property receivable upon such Cash Merger by a Holder of the
number of shares of Common Stock issuable on account of each Purchase Contract
if the Purchase Contract Settlement Date had occurred immediately prior to such
Cash Merger (based on the Settlement Rate in effect at such time), assuming
such Holder of Common Stock is not a Constituent Person or an Affiliate of a
Constituent Person to the extent such Cash Merger provides for different
treatment of Common Stock held by Affiliates of the Company and non-affiliates
and such Holder failed to exercise its rights of election, if any, as to the
kind or amount of securities, cash and other property receivable upon such Cash
Merger (provided that if the kind or amount of securities, cash and other
property receivable upon such Cash Merger is not the same for each non-electing
share, then for the purpose of this Section 5.04(b)(ii), the kind and amount of
securities, cash and other property receivable upon such Cash Merger by each
non-electing share shall be deemed to be the kind and amount so receivable per
share by a plurality of the non-electing shares).  For the avoidance of doubt, for the purposes of determining the
Applicable Market Value (in connection with determining the appropriate
Settlement Rate to be applied in the foregoing sentence), the date of the
closing of the Cash Merger shall be deemed to be the Purchase Contract
Settlement Date;

 

(B)           the Senior Notes, the Applicable
Ownership Interests in the Treasury Portfolio or Treasury Securities, as the
case may be, related to the Purchase Contracts with respect to which the Holder
is effecting a Cash Merger Early Settlement; and

 

(C)           if so required under the Securities
Act, a Prospectus as contemplated by this Section 5.04(b)(ii).

 

The Corporate Units or the
Treasury Units of the Holders who do not elect Cash Merger Early Settlement in
accordance with the foregoing will continue to remain outstanding and be
subject to settlement on the Purchase Contract Settlement Date in accordance
with the terms hereof.

 

(c)           All calculations and determinations pursuant to this
Section 5.04 shall be made by the Company or its agent and the Purchase
Contract Agent shall have no responsibility with respect to this Agreement.

 

59

 

Section
5.05.  Notice of Adjustments and Certain Other Events.  (a) Whenever the Fixed Settlement Rates are adjusted as herein
provided, the Company shall within 10 Business Days following the occurrence of
an event that requires an adjustment to each Fixed Settlement Rate pursuant to
Section 5.04 (or if the Company is not aware of such occurrence, as soon as
practicable after becoming so aware):

 

(i)            compute each adjusted Fixed
Settlement Rate in accordance with Section 5.04 and prepare and transmit to the
Purchase Contract Agent an Officers’ Certificate setting forth each Fixed
Settlement Rate, the method of calculation thereof in reasonable detail, and
the facts requiring such adjustment and upon which such adjustment is based;
and

 

(ii)           provide a written notice to the
Holders of the Units of the occurrence of such event and a statement in
reasonable detail setting forth the method by which the adjustment to each
Fixed Settlement Rate was determined and setting forth each adjusted Fixed
Settlement Rate.

 

(b)           The Purchase Contract Agent shall not at any time be under
any duty or responsibility to any Holder to determine whether any facts exist
which may require any adjustment of each Fixed Settlement Rate, or with respect
to the nature or extent or calculation of any such adjustment when made, or
with respect to the method employed in making the same.  The Purchase Contract Agent shall be fully
authorized and protected in relying on any Officers’ Certificate delivered
pursuant to Section 5.05(a)(i) and any adjustment contained therein and the
Purchase Contract Agent shall not be deemed to have knowledge of any adjustment
unless and until it has received such certificate. The Purchase Contract Agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any securities or property, which
may at the time be issued or delivered with respect to any Purchase Contract;
and the Purchase Contract Agent makes no representation with respect
thereto.  The Purchase Contract Agent
shall not be responsible for any failure of the Company to issue, transfer or
deliver any shares of Common Stock pursuant to a Purchase Contract or to comply
with any of the duties, responsibilities or covenants of the Company contained
in this Article 5.

 

Section 5.06.  Termination Event; Notice.

 

The Purchase Contracts and
all obligations and rights of the Company and the Holders thereunder,
including, without limitation, the rights of the Holders to receive and the
obligation of the Company to pay any Contract Adjustment Payments (including
any accrued and unpaid Contract Adjustment Payments), and the rights and
obligations of Holders to purchase Common Stock, shall immediately and
automatically terminate, without the necessity of any notice or action by any
Holder, the Purchase Contract Agent or the Company, if, prior to or on the
Purchase Contract Settlement Date, a Termination Event shall have occurred.

 

Upon and after the occurrence
of a Termination Event, the Units shall thereafter represent the right to
receive the Senior Notes underlying the Applicable Ownership Interests in
Senior Notes, the Treasury Securities or the Applicable Ownership Interests in
the Treasury Portfolio, as the case may be, forming part of such Units, in
accordance with

 

60

 

the provisions of Section 3.15 hereof.  Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Purchase Contract Agent, the Collateral
Agent and the Holders, at their addresses as they appear in the Security
Register.

 

Section 5.07.  Early Settlement.  (a)  Subject
to and upon compliance with the provisions of this Section 5.07, at the option
of the Holder thereof, Purchase Contracts underlying Units may be settled early
(“Early Settlement”) at any time
after [·], 2005 but prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement Date (in
the case of Corporate Units, unless a Special Event Redemption has occurred) or
the second Business Day immediately preceding the Purchase Contract Settlement
Date (in the case of Treasury Units or Corporate Units after the occurrence of
a Special Event Redemption); provided that
no Early Settlement will be permitted pursuant to this Section 5.07 unless, at
the time such Early Settlement is effected, there is an effective Registration
Statement with respect to any securities to be issued and delivered in
connection with such Early Settlement, if such a Registration Statement is
required (in the view of counsel, which need not be in the form of a written
opinion, for the Company) under the Securities Act.  If such a Registration Statement is so required, the Company
covenants and agrees to use its commercially reasonable best efforts to (i)
have in effect a Registration Statement covering any securities to be delivered
in respect of the Purchase Contracts being settled and (ii) provide a
Prospectus in connection therewith, in each case in a form that may be used in
connection with such Early Settlement (it being understood that if there is a
material business transaction or development that has not yet been publicly
disclosed, the Company will not be required to provide such a Prospectus, and
the right to effect Early Settlement will not be available, until the Company
has publicly disclosed such transaction or development, provided that the Company
will use its commercially reasonable efforts to make such disclosure as soon as
it is commercially reasonable to do so).

 

(b)           In order to exercise the right to effect Early Settlement
with respect to any Purchase Contracts, the Holder of the Certificate
evidencing Units (in the case of Certificates in definitive certificated form)
shall deliver, at any time prior to 5:00 p.m. (New York City time) on the
seventh Business Day immediately preceding the Purchase Contract Settlement
Date (in the case of Corporate Units, unless a Special Event Redemption has
occurred) or the second Business Day immediately preceding the Purchase
Contract Settlement Date (in the case of Treasury Units or Corporate Units
after the occurrence of a Special Event Redemption), such Certificate to the
Purchase Contract Agent at the Corporate Trust Office duly endorsed for
transfer to the Company or in blank with the form of Election to Settle Early
on the reverse thereof duly completed and accompanied by payment (payable to
the Company in immediately available funds) in an amount (the “Early Settlement Amount”) equal to the sum
of:

 

(i)            the product of (A) the Stated Amount
and (B) the number of Purchase Contracts with respect to which the Holder has
elected to effect Early Settlement, plus,

 

(ii)           if such delivery is made with respect
to any Purchase Contracts during the period from the close of business on any
Record Date next preceding

 

61

 

any Payment Date to the
opening of business on such Payment Date, an amount equal to the Contract
Adjustment Payments payable on such Payment Date with respect to such Purchase
Contracts.

 

In the case of Book-Entry
Interests, each Beneficial Owner electing Early Settlement must deliver the
Early Settlement Amount to the Purchase Contract Agent along with a facsimile
of the Election to Settle Early form duly completed, make book-entry transfer
of such Book-Entry Interests and comply with the applicable procedures of the
Depositary.

 

Except as provided in Section
5.10(d), no payment shall be made upon Early Settlement of any Purchase
Contract on account of any Contract Adjustment Payments accrued on such
Purchase Contract or on account of any dividends on the Common Stock issued
upon such Early Settlement.  If the
foregoing requirements are first satisfied with respect to Purchase Contracts
underlying any Units at or prior to 5:00 p.m. (New York City time) on a
Business Day, such day shall be the “Early
Settlement Date” with respect to such Units and if such requirements
are first satisfied after 5:00 p.m. (New York City time) on a Business Day or
on a day that is not a Business Day, the Early Settlement Date with respect to
such Units shall be the next succeeding Business Day.

 

Upon the receipt of such
Certificate and Early Settlement Amount from the Holder, the Purchase Contract
Agent shall pay to the Company such Early Settlement Amount, the receipt of
which payment the Company shall confirm in writing. The Purchase Contract Agent
shall then notify the Collateral Agent that (A) such Holder has elected to
effect an Early Settlement, which notice shall set forth the number of such
Purchase Contracts as to which such Holder has elected to effect Early
Settlement, (B) the Purchase Contract Agent has received from such Holder, and
paid to the Company as confirmed in writing by the Company, the related Early
Settlement Amount and (C) all conditions to such Early Settlement have been
satisfied.

 

Upon receipt by the
Collateral Agent of the notice from the Purchase Contract Agent set forth in
the preceding paragraph, the Collateral Agent shall release from the Pledge,
(1) in the case of a Holder of Corporate Units, the Senior Notes underlying the
Pledged Applicable Ownership Interest in Senior Notes, or the Pledged Applicable
Ownership Interests in the Treasury Portfolio, as the case may be, relating to
the Purchase Contracts to which Early Settlement is effected, or (2) in the
case of a Holder of Treasury Units, Pledged Treasury Securities, in each case
with a Value equal to the product of (x) the Stated Amount times (y) the number
of Purchase Contracts as to which such Holder has elected to effect Early
Settlement, and shall instruct the Securities Intermediary to Transfer all such
Pledged Applicable Ownership Interests in the Treasury Portfolio or Senior
Notes underlying such Pledged Applicable Ownership Interests in Senior Notes or
Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent
for distribution to such Holder, in each case free and clear of the Pledge
created hereby.

 

Holders of Corporate Units
and Treasury Units may only effect Early Settlement pursuant to this Section
5.07 in integral multiples of 40 Treasury Units.  If Applicable Ownership Interests in the Treasury Portfolio have
replaced Applicable Ownership Interests in Senior Notes as a component of the
Corporate Units, Corporate Units Holders

 

62

 

may only effect Early Settlement pursuant to
this Section 5.07 in integral multiples of [•] Corporate Units.

 

Upon Early Settlement of the
Purchase Contracts, the rights of the Holders to receive and the obligation of
the Company to pay any Contract Adjustment Payments (including any accrued and
unpaid Contract Adjustment Payments) with respect to such Purchase Contracts
shall immediately and automatically terminate, except as provided in Section
5.10(d).

 

(c)           Upon Early Settlement of Purchase Contracts by a Holder of
the related Units, the Company shall issue, and the Holder shall be entitled to
receive, a number of shares of Common Stock (or in the case of an Early
Settlement following a Reorganization Event, a number of units of Exchange
Property) equal to the Minimum Settlement Rate for each Purchase Contract as to
which Early Settlement is effected.

 

(d)           No later than the third Business Day after the applicable
Early Settlement Date, the Company shall cause the shares of Common Stock
issuable upon Early Settlement of Purchase Contracts to be issued and
delivered, together with payment in lieu of any fraction of a share, as
provided in Section 5.08.

 

(e)           Upon Early Settlement of any Purchase Contracts, and
subject to receipt of shares of Common Stock from the Company and the Senior
Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury
Securities, as the case may be, from the Securities Intermediary, as
applicable, the Purchase Contract Agent shall, in accordance with the
instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Certificate evidencing the related Units:

 

(i)            transfer to the Holder the Senior
Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury
Securities, as the case may be, related to such Units,

 

(ii)           deliver to the Holder a certificate
or certificates for the full number of shares of Common Stock issuable upon
such Early Settlement, together with payment in lieu of any fraction of a
share, as provided in Section 5.08, and

 

(iii)          if so required under the Securities Act,
deliver a Prospectus for the shares of Common Stock issuable upon such Early
Settlement as contemplated by Section 5.07(a).

 

(f)            In the event that Early Settlement is effected with
respect to Purchase Contracts underlying less than all the Units evidenced by a
Certificate, upon such Early Settlement the Company shall execute and the
Purchase Contract Agent shall execute on behalf of the Holder, authenticate and
deliver to the Holder thereof, at the expense of the Company, a Certificate
evidencing the Units as to which Early Settlement was not effected.

 

Section 5.08.  No Fractional Shares.  No fractional shares or scrip representing
fractional shares of Common Stock shall be issued or delivered upon settlement
on the

 

63

 

Purchase Contract Settlement Date, or upon
Early Settlement or Cash Merger Early Settlement of any Purchase
Contracts.  If Certificates evidencing
more than one Purchase Contract shall be surrendered for settlement at one time
by the same Holder, the number of full shares of Common Stock which shall be
delivered upon settlement shall be computed on the basis of the aggregate
number of Purchase Contracts evidenced by the Certificates so surrendered.  Instead of any fractional share of Common
Stock which would otherwise be deliverable upon settlement of any Purchase
Contracts on the Purchase Contract Settlement Date, or upon Early Settlement or
Cash Merger Early Settlement, the Company, through the Purchase Contract Agent,
shall make a cash payment in respect of such fractional interest in an amount
equal to the percentage of such fractional share multiplied by the Applicable
Market Value calculated as if the date of such settlement were the Purchase
Contract Settlement Date.  The Company
shall provide the Purchase Contract Agent from time to time with sufficient
funds to permit the Purchase Contract Agent to make all cash payments required
by this Section 5.08 in a timely manner.

 

Section 5.09.  Charges and Taxes.  The Company will pay all stock transfer and
similar taxes attributable to the initial issuance and delivery of the shares
of Common Stock pursuant to the Purchase Contracts; provided, however, that the
Company shall not be required to pay any such tax or taxes which may be payable
in respect of any exchange of or substitution for a Certificate evidencing a
Unit or any issuance of a share of Common Stock in a name other than that of
the registered Holder of a Certificate surrendered in respect of the Units
evidenced thereby, other than in the name of the Purchase Contract Agent, as
custodian for such Holder, and the Company shall not be required to issue or
deliver such share certificates or Certificates unless or until the Person or
Persons requesting the transfer or issuance thereof shall have paid to the
Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid.

 

Section 5.10.  Contract Adjustment Payments. 
(a) Subject to
Section 5.10(d) and Section 5.10(e) through (q), the Company shall pay, on each
Payment Date, the Contract Adjustment Payments payable in respect of each
Purchase Contract for the period from and including the immediately preceding
Payment Date on which Contract Adjustment Payments were paid (or if none, the
Special Payment Date) to but excluding such Payment Date to the Person in whose
name a Certificate is registered at the close of business on the Record Date
relating to such Payment Date.  Contract
Adjustment Payments on Global Certificates will be made by wire transfer of
immediately available funds to the Depositary. 
If the book-entry system for the Units has been terminated, the Contract
Adjustment Payments will be payable at the office of the Purchase Contract
Agent in the Borough of Manhattan, City of New York, New York maintained for
that purpose or, at the option of the Company, by check mailed to the address
of the Person entitled thereto at such Person’s address as it appears on the
Security Register as of the Record Date, or by wire transfer to the account
designated by such Person by a prior written notice to the Purchase Contract
Agent.  If any Payment Date is not a
Business Day, then payment of the Contract Adjustment Payments payable on such
date will be made on the next succeeding day that is a Business Day (and
without any interest in respect of any such delay).  Contract Adjustment Payments payable for any period will be
computed on the basis of a

 

64

 

360-day year of twelve 30-day months.  The Contract Adjustment Payments will accrue
from May [•], 2004.

 

In addition, the Company
shall pay on May [   ], 2004 (the “Special Payment Date”), the Contract
Adjusted Payments accrued from and including May [•], 2004 to but excluding the
Special Payment Date to the Person in whose name a Certificate is registered at
the close of business on the Business Day immediately preceding the Special
Payment Date.  The Contract Adjustment
Payments payable on the Special Payment Date shall be paid by wire transfer to
the account designated by the Person entitled to receive such payment by prior
notice to the Company and the Purchase Contract Agent.

 

(b)           Upon the occurrence of a Termination Event, the Company’s
obligation to pay future Contract Adjustment Payments (including any accrued
Contract Adjustment Payments) shall cease.

 

(c)           Each Certificate delivered under this Agreement upon
registration of transfer of or in exchange for or in lieu of (including as a
result of a Collateral Substitution or the recreation of Corporate Units) any
other Certificate shall carry the right to accrued and unpaid Contract
Adjustment Payments, which right was carried by the Purchase Contracts
underlying such other Certificates.

 

(d)           In the case of any Unit with respect to which Early
Settlement or Cash Merger Early Settlement of the underlying Purchase Contract
is effected on a date that is after any Record Date and prior to or on the next
succeeding Payment Date, Contract Adjustment Payments otherwise payable on such
Payment Date shall be payable on such Payment Date notwithstanding such Early
Settlement or Cash Merger Early Settlement, and such Contract Adjustment
Payments shall be paid to the Person in whose name the Certificate evidencing
such Unit is registered at the close of business on such Record Date.  Except as otherwise expressly provided in
the immediately preceding sentence, and the right to receive accrued and unpaid
Contract Adjustment Payments as set forth in Section 5.04(b)(ii), in the case
of any Unit with respect to which Early Settlement or Cash Merger Early
Settlement of the underlying Purchase Contract is effected, Contract Adjustment
Payments that would otherwise be payable after the Early Settlement or Cash
Merger Early Settlement Date with respect to such Purchase Contract shall not
be payable.

 

(e)           The Company’s obligations with respect to Contract
Adjustment Payments will be subordinated and junior in right of payment to the
Company’s obligations under any Senior Indebtedness as set forth in this
Section 5.10.

 

(f)            In the event (x) of any payment by, or distribution of
assets of, the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution, winding-up, liquidation or
reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other proceedings, or (y) subject to
the provisions of Section 5.10(h) below, that (A) a default shall have occurred
and be continuing with respect to the payment of principal, interest or any
other monetary amounts due and payable on any Senior Indebtedness and such
default shall have continued beyond the period of grace, if any, specified in
the instrument evidencing such Senior Indebtedness (and the Purchase Contract
Agent shall have received written notice

 

65

 

thereof from the Company or one or more
holders of Senior Indebtedness or their representative or representatives or
the trustee or trustees under any indenture pursuant to which any such Senior
Indebtedness may have been issued), or (B) the maturity of any Senior
Indebtedness shall have been accelerated because of a default in respect of
such Senior Indebtedness (and the Purchase Contract Agent shall have received
written notice thereof from the Company or one or more holders of Senior
Indebtedness or their representative or representatives or the trustee or
trustees under any indenture pursuant to which any such Senior Indebtedness may
have been issued), then:

 

(i)            the holders of all Senior
Indebtedness shall first be entitled to receive, in the case of clause (x)
above, payment of all amounts due or to become due upon all Senior Indebtedness
and, in the case of subclauses (A) and (B) of clause (y) above, payment of all
amounts due thereon, or provision shall be made for such payment in money or
money’s worth, before the Holders of any of the Units are entitled to receive
any Contract Adjustment Payments on the Purchase Contracts underlying the
Units;

 

(ii)           any payment by, or distribution of
assets of, the Company of any kind or character, whether in cash, property or
securities, to which the Holders of any of the Units would be entitled except
for the provisions of Section 5.10(e) through (q), including any such payment
or distribution that may be payable or deliverable by reason of the payment of
any other indebtedness of the Company being subordinated to the payment of such
Contract Adjustment Payments on the Purchase Contracts underlying the Units,
shall be paid or delivered by the Person making such payment or distribution,
whether a trustee in bankruptcy, a receiver or liquidating trustee or
otherwise, directly to the representative or representatives of the holders of
Senior Indebtedness or to the trustee or trustees under any indenture under
which any instruments evidencing any of such Senior Indebtedness may have been
issued, ratably according to the aggregate amounts remaining unpaid on account
of such Senior Indebtedness held or represented by each, to the extent
necessary to make payment in full of all Senior Indebtedness remaining unpaid
after giving effect to any concurrent payment or distribution (or provision
therefor) to the holders of such Senior Indebtedness, before any payment or
distribution is made of such Contract Adjustment Payments to the Holders of
such Units; and

 

(iii)          in the event that, notwithstanding the
foregoing, any payment by, or distribution of assets of, the Company of any
kind or character, whether in cash, property or securities, including any such
payment or distribution that may be payable or deliverable by reason of the
payment of any other indebtedness of the Company being subordinated to the
payment of Contract Adjustment Payments on the Purchase Contracts underlying
the Units, shall be received by the Purchase Contract Agent or the Holders of
any of the Units when such payment or distribution is prohibited pursuant to
Section 5.10(e) through (q), such payment or distribution shall be paid over to
the representative or representatives of the holders of Senior Indebtedness or
to the trustee or trustees under any indenture pursuant to which any
instruments evidencing any such Senior Indebtedness may have been issued,
ratably as aforesaid, for application to the payment of all Senior Indebtedness
remaining unpaid until all such Senior Indebtedness shall have been

 

66

 

paid in full, after giving
effect to any concurrent payment or distribution (or provision therefor) to the
holders of such Senior Indebtedness.

 

(g)           For purposes of Section 5.10(e) through (q), the words
“cash, property or securities” shall not be deemed to include shares of stock
of the Company as reorganized or readjusted, or securities of the Company or
any other Person provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in Section
5.10(e) through (q) with respect to such Contract Adjustment Payments on the
Units to the payment of all Senior Indebtedness which may at the time be
outstanding; provided that (i)
the Senior Indebtedness is assumed by the Person, if any, resulting from any
such reorganization or readjustment, and (ii) the rights of the holders of the
Senior Indebtedness are not, without the consent of each such holder adversely
affected thereby, altered by such reorganization or readjustment;

 

(h)           Any failure by the Company to make any payment on or
perform any other obligation under Senior Indebtedness, other than any
indebtedness incurred by the Company or assumed or guaranteed, directly or
indirectly, by the Company for money borrowed (or any deferral, renewal,
extension or refunding thereof) or any indebtedness or obligation as to which
the provisions of Section 5.10(e) through (q) shall have been waived by the
Company in the instrument or instruments by which the Company incurred,
assumed, guaranteed or otherwise created such indebtedness or obligation, shall
not be deemed a default or event of default if (i) the Company shall be
disputing its obligation to make such payment or perform such obligation and
(ii) either (A) no final judgment relating to such dispute shall have been
issued against the Company which is in full force and effect and is not subject
to further review, including a judgment that has become final by reason of the
expiration of the time within which a party may seek further appeal or review,
and (B) in the event a judgment that is subject to further review or appeal has
been issued, the Company shall in good faith be prosecuting an appeal or other
proceeding for review and a stay of execution shall have been obtained pending
such appeal or review.

 

(i)            Subject to the irrevocable payment in full of all Senior
Indebtedness, the Holders of the Units shall be subrogated (equally and ratably
with the holders of all obligations of the Company which by their express terms
are subordinated to Senior Indebtedness of the Company to the same extent as
payment of the Contract Adjustment Payments in respect of the Purchase
Contracts underlying the Units is subordinated and which are entitled to like
rights of subrogation) to the rights of the holders of Senior Indebtedness to
receive payments or distributions of cash, property or securities of the
Company applicable to the Senior Indebtedness until all such Contract
Adjustment Payments owing on the Units shall be paid in full, and as between
the Company, its creditors other than holders of such Senior Indebtedness and
the Holders, no such payment or distribution made to the holders of Senior
Indebtedness by virtue of Section 5.10(e) through (q) that otherwise would have
been made to the Holders shall be deemed to be a payment by the Company on
account of such Senior Indebtedness, it being understood that the provisions of
Section 5.10(e) through (q) are and are intended solely for the purpose of
defining the relative rights of the Holders, on the one hand, and the holders
of Senior Indebtedness, on the other hand.

 

67

 

(j)            Nothing contained in Section 5.10(e) through (q) or
elsewhere in this Agreement or in the Units is intended to or shall impair, as
among the Company, its creditors other than the holders of Senior Indebtedness
and the Holders, the obligation of the Company, which is absolute and unconditional,
to pay to the Holders such Contract Adjustment Payments on the Units as and
when the same shall become due and payable in accordance with their terms, or
is intended to or shall affect the relative rights of the Holders and creditors
of the Company other than the holders of Senior Indebtedness, nor shall
anything herein or therein prevent the Purchase Contract Agent or any Holder
from exercising all remedies otherwise permitted by applicable law upon default
under this Agreement, subject to the rights, if any, under Section 5.10(e)
through (q), of the holders of Senior Indebtedness in respect of cash, property
or securities of the Company received upon the exercise of any such remedy.

 

(k)           Upon payment or distribution of assets of the Company
referred to in Section 5.10(e) through (q), the Purchase Contract Agent and the
Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which any such dissolution, winding up, liquidation
or reorganization proceeding affecting the affairs of the Company is pending or
upon a certificate of the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, liquidating trustee or trustee or other person making any
payment or distribution, delivered to the Purchase Contract Agent or to the
Holders, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of Senior Indebtedness and other
indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to these Section 5.10(e) through (q).

 

(l)            The Purchase Contract Agent shall be entitled to rely on
the delivery to it of a written notice by a Person representing himself to be a
holder of Senior Indebtedness (or a trustee or representative on behalf of such
holder) to establish that such notice has been given by a holder of Senior
Indebtedness or a trustee or representative on behalf of any such holder or
holders. In the event that the Purchase Contract Agent determines in good faith
that further evidence is required with respect to the right of any Person as a
holder of Senior Indebtedness to participate in any payment or distribution
pursuant to Section 5.10(e) through (q), the Purchase Contract Agent may
request such Person to furnish evidence to the reasonable satisfaction of the
Purchase Contract Agent as to the amount of Senior Indebtedness held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under Section 5.10(e) through (q), and, if such evidence is not
furnished, the Purchase Contract Agent may defer payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

 

(m)          Nothing contained in Section 5.10(e) through (q) shall
affect the obligations of the Company to make, or prevent the Company from
making, payment of the Contract Adjustment Payments, except as otherwise
provided in these Section 5.10(e) through (q).

 

(n)           Each Holder, by its acceptance thereof, authorizes and
directs the Purchase Contract Agent on its behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in Section
5.10(e) through (q) and appoints the Purchase Contract Agent as its
attorney-in-fact for any and all such purposes.

 

68

 

(o)           The Company shall give prompt written notice to the
Purchase Contract Agent of any fact known to the Company that would prohibit
the making of any payment of moneys to or by the Purchase Contract Agent in
respect of the Units pursuant to the provisions of this Section.
Notwithstanding the provisions of Section 5.10(e) through (q) or any other
provisions of this Agreement, the Purchase Contract Agent shall not be charged
with knowledge of the existence of any facts that would prohibit the making of
any payment of moneys to or by the Purchase Contract Agent, or the taking of
any other action by the Purchase Contract Agent, unless and until the Purchase
Contract Agent shall have received written notice thereof mailed or delivered
to the Purchase Contract Agent at its Corporate Trust Office from the Company,
any Holder, or the holder or representative of any Senior Indebtedness; provided that if at least two Business
Days prior to the date upon which by the terms hereof any such moneys may
become payable for any purpose, the Purchase Contract Agent shall not have
received with respect to such moneys the notice provided for in this Section,
then, anything herein contained to the contrary notwithstanding, the Purchase
Contract Agent shall have full power and authority to receive such moneys and
to apply the same to the purpose for which they were received and shall not be
affected by any notice to the contrary that may be received by it within two
Business Days prior to or on or after such date.

 

(p)           The Purchase Contract Agent in its individual capacity
shall be entitled to all the rights set forth in this Section 5.10 with respect
to any Senior Indebtedness at the time held by it, to the same extent as any
other holder of Senior Indebtedness and nothing in this Agreement shall deprive
the Purchase Contract Agent of any of its rights as such holder.

 

(q)           No right of any present or future holder of any Senior
Indebtedness to enforce the subordination herein shall at any time or in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any noncompliance by the Company with the terms, provisions and
covenants of this Agreement, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with.

 

(r)            Nothing in this Section 5.10 shall apply to claims of, or
payments to, the Purchase Contract Agent under or pursuant to Section 7.07.

 

(s)           With respect to the holders of Senior Indebtedness, (i)
the duties and obligations of the Purchase Contract Agent shall be determined
solely by the express provisions of this Agreement; (ii) the Purchase Contract
Agent shall not be liable to any such holders if it shall, acting in good
faith, mistakenly pay over or distribute to the Holders or to the Company or
any other Person cash, property or securities to which any holders of Senior
Indebtedness shall be entitled by virtue of this Section 5.10 or otherwise;
(iii) no implied covenants or obligations shall be read into this Agreement
against the Purchase Contract Agent; and (iv) the Purchase Contract Agent shall
not be deemed to be a fiduciary as to holders of such Senior Indebtedness.

 

69

 

ARTICLE 6

RIGHTS AND REMEDIES OF HOLDERS

 

Section 6.01.  Unconditional Right of Holders to Receive Contract Adjustment
Payments and To Purchase Shares of Common Stock.  Each Holder of
a Unit shall have the right, which is absolute and unconditional, (i) subject
to Article 5, to receive each Contract Adjustment Payment with respect to the
Purchase Contract comprising part of such Unit on the respective Payment Date
for such Unit pursuant to the terms hereof and (ii) except upon and following a
Termination Event, to purchase shares of Common Stock pursuant to such Purchase
Contract and, in each such case, to institute suit for the enforcement of any
such right to receive Contract Adjustment Payments and the right to purchase
shares of Common Stock, and such rights shall not be impaired without the
consent of such Holder.

 

Section 6.02.  Restoration of Rights and Remedies.  If any Holder
has instituted any proceeding to enforce any right or remedy under this
Agreement and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company and such
Holder shall be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of such Holder shall continue
as though no such proceeding had been instituted.

 

Section 6.03.  Rights and Remedies Cumulative. 
Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Certificates in the last paragraph of Section 3.10, no right or
remedy herein conferred upon or reserved to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

Section 6.04.  Delay or Omission Not Waiver. 
No delay or omission of
any Holder to exercise any right upon a default or remedy upon a default shall
impair any such right or remedy or constitute a waiver of any such right.  Every right and remedy given by this Article
6 or by law to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by such Holders.

 

Section 6.05.  Undertaking for Costs.  All parties to this Agreement agree, and each
Holder of a Unit, by its acceptance of such Unit shall be deemed to have
agreed, that any court of competent jurisdiction may in its discretion require,
in any suit for the enforcement of any right or remedy under this Agreement, or
in any suit against the Purchase Contract Agent for any action taken, suffered
or omitted by it as Purchase Contract Agent, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and costs against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such
party litigant; provided that the
provisions of this Section shall not apply to any suit instituted by the
Purchase Contract Agent, to any suit instituted by any Holder, or group of
Holders,

 

70

 

holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for the enforcement
of interest on any Senior Notes owed pursuant to such Holder’s Applicable
Ownership Interests in Senior Notes or Contract Adjustment Payments on or after
the respective Payment Date therefor in respect of any Unit held by such
Holder, or for enforcement of the right to purchase shares of Common Stock
under the Purchase Contracts constituting part of any Unit held by such Holder.

 

Section 6.06.  Waiver of Stay or Extension Laws.  The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance
of this Agreement; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Purchase Contract Agent or the Holders, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

ARTICLE 7

THE PURCHASE CONTRACT AGENT

 

Section 7.01.  Certain Duties and Responsibilities.

 

(a)           The Purchase Contract Agent:

 

(i)            undertakes to perform, with respect
to the Units, such duties and only such duties as are specifically set forth in
this Agreement and the Remarketing Agreement to be performed by the Purchase
Contract Agent and no implied covenants or obligations shall be read into this
Agreement or the Remarketing Agreement against the Purchase Contract Agent; and

 

(ii)           in the absence of bad faith on its
part, may, with respect to the Units, conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Purchase Contract Agent and
conforming to the requirements of this Agreement or the Remarketing Agreement,
as applicable, but in the case of any certificates or opinions which by any
provision hereof are specifically required to be furnished to the Purchase
Contract Agent, the Purchase Contract Agent shall be under a duty to examine
the same to determine whether or not they conform to the requirements of this
Agreement or the Remarketing Agreement, as applicable (but need not confirm or
investigate the accuracy of the mathematical calculations or other facts stated
therein).

 

(b)           No provision of this Agreement or the Remarketing
Agreement shall be construed to relieve the Purchase Contract Agent from
liability for its own grossly negligent action, its own grossly negligent
failure to act, or its own willful misconduct, except that:

 

71

 

(i)            this Section 7.01(b) shall not be
construed to limit the effect of Section 7.01(a);

 

(ii)           the Purchase Contract Agent shall not
be liable for any error of judgment made in good faith by a Responsible
Officer, unless it shall be conclusively determined by a court of competent
jurisdiction that the Purchase Contract Agent was grossly negligent in
ascertaining the pertinent facts; and

 

(iii)  no provision of this Agreement or the
Remarketing Agreement shall require the Purchase Contract Agent to expend or
risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

 

(c)           Whether or not therein expressly so provided, every
provision of this Agreement and the Remarketing Agreement relating to the
conduct or affecting the liability of or affording protection to the Purchase
Contract Agent shall be subject to the provisions of this Section.

 

(d)           The Purchase Contract Agent is authorized to execute and
deliver the Remarketing Agreement in its capacity as Purchase Contract Agent.

 

Section 7.02.  Notice of Default.  Within 30 days after the occurrence of any
default by the Company hereunder of which a Responsible Officer of the Purchase
Contract Agent has actual knowledge, the Purchase Contract Agent shall transmit
by mail to the Company and the Holders, as their names and addresses appear in
the Security Register, notice of such default hereunder, unless such default
shall have been cured or waived.

 

Section 7.03.  Certain Rights of Purchase Contract Agent.

 

Subject to the provisions of
Section 7.01:

 

(a)           the Purchase Contract Agent may, in the absence of bad
faith, conclusively rely and shall be fully protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

 

(b)           any request or direction of the Company mentioned herein
shall be sufficiently evidenced by an Officers’ Certificate, Issuer Order or
Issuer Request, and any resolution of the Board of Directors of the Company may
be sufficiently evidenced by a Board Resolution;

 

(c)           whenever in the administration of this Agreement or the
Remarketing Agreement the Purchase Contract Agent shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting to
take any action hereunder or thereunder, the Purchase Contract Agent (unless
other evidence be herein specifically

 

72

 

prescribed in this Agreement) may, in the
absence of bad faith on its part, conclusively rely upon an Officers’
Certificate of the Company;

 

(d)           the Purchase Contract Agent may consult with counsel of
its selection and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e)           the Purchase Contract Agent shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Purchase Contract Agent, in its discretion, may make
reasonable further inquiry or investigation into such facts or matters related
to the execution, delivery and performance of the Purchase Contracts as it may
see fit, and, if the Purchase Contract Agent shall determine to make such
further inquiry or investigation, it shall be entitled to examine the relevant
books, records and premises of the Company, personally or by agent or attorney;

 

(f)            the Purchase Contract Agent may execute any of the powers
hereunder or perform any duties hereunder either directly or by or through
agents, attorneys, custodians or nominees or an Affiliate of the Purchase
Contract Agent and the Purchase Contract Agent shall not be responsible for any
misconduct or negligence on the part of any agent, attorney, custodian or
nominee or an Affiliate appointed with due care by it hereunder;

 

(g)           the Purchase Contract Agent shall be under no obligation
to exercise any of the rights or powers vested in it by this Agreement at the
request or direction of any of the Holders pursuant to this Agreement, unless such
Holders shall have offered to the Purchase Contract Agent security or indemnity
satisfactory to the Purchase Contract Agent against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;

 

(h)           the Purchase Contract Agent shall not be liable for any
action taken, suffered, or omitted to be taken by it in the absence of bad
faith by it and believed by it to be authorized and within the discretion or
rights or powers conferred upon it by this Agreement;

 

(i)            the Purchase Contract Agent shall not be deemed to have
notice of any adjustment to each Fixed Settlement Rate, the occurrence of a
Termination Event or any default hereunder unless a Responsible Officer of the
Purchase Contract Agent has actual knowledge thereof or unless written notice
of any event which is in fact such a default is received by a Responsible Offer
at the Corporate Trust Office of the Purchase Contract Agent, and such notice
references the Units or this Agreement;

 

(j)            the Purchase Contract Agent may request that the Company
deliver an Officers’ Certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant
to this Agreement, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’

 

73

 

Certificate, including any person specified
as so authorized in any such certificate previously delivered and not
superseded;

 

(k)           the rights, privileges, protections, immunities and
benefits given to the Purchase Contract Agent, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the
Purchase Contract Agent in each of its capacities hereunder, and to each
officer, director, employee of the Purchase Contract Agent and each agent,
custodian and other Person employed, in any capacity whatsoever, by the
Purchase Contract Agent to act hereunder and shall survive the resignation or
removal of the Purchase Contract Agent and the termination of this Agreement;
and

 

(l)            the Purchase Contract Agent shall not be required to
initiate or conduct any litigation or collection proceedings hereunder and
shall have no responsibilities with respect to any default hereunder except as
expressly set forth herein.

 

Section 7.04.  Not Responsible for Recitals or Issuance of Units.  The recitals contained herein, in the Remarketing Agreement and in the
Certificates shall be taken as the statements of the Company, and the Purchase
Contract Agent assumes no responsibility for their accuracy or validity.  The Purchase Contract Agent makes no
representations as to the validity or sufficiency of either this Agreement or
of the Units or the Pledge or the Collateral or the Remarketing Agreement and
shall have no responsibility for perfecting or maintaining the perfection of
any security interest in the Collateral. The Purchase Contract Agent shall not
be accountable for the use or application by the Company of the proceeds in
respect of the Purchase Contracts.

 

Section 7.05.  May Hold Units.  Any Security Registrar or any other agent of
the Company, or the Purchase Contract Agent and its Affiliates, in their
individual or any other capacity, may become the owner or pledgee of Units and
may otherwise deal with the Company, the Collateral Agent or any other Person
with the same rights it would have if it were not Security Registrar or such
other agent, or the Purchase Contract Agent. 
The Company may become the owner or pledgee of Units.

 

Section 7.06.  Money Held in Custody.  Money held by the Purchase Contract Agent in
custody hereunder need not be segregated from the Purchase Contract Agent’s
other funds except to the extent required by law or provided herein.  The Purchase Contract Agent shall be under
no obligation to invest or pay interest on any money received by it hereunder
except as otherwise provided hereunder or agreed in writing with the Company.

 

Section 7.07.  Compensation and Reimbursement.

 

The Company agrees:

 

(a)           to pay to the Purchase Contract Agent compensation for all
services rendered by it hereunder and under the Remarketing Agreement as the
Company and the Purchase Contract Agent shall from time to time agree in
writing;

 

(b)           except as otherwise expressly provided for herein, to
reimburse the Purchase Contract Agent upon its request for all reasonable
expenses, disbursements and advances

 

74

 

incurred or made by the Purchase Contract
Agent in accordance with any provision of this Agreement and the Remarketing
Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel) in connection with the negotiation,
preparation, execution and delivery and performance of this Agreement and the
Remarketing Agreement and any modification, supplement or waiver of any of the
terms thereof, except any such expense, disbursement or advance as may be
attributable to its gross negligence, willful misconduct or bad faith; and

 

(c)           to indemnify the Purchase Contract Agent and any
predecessor Purchase Contract Agent and each of its directors, officers, agents
and employees (collectively, with the Purchase Contract Agent, the “Indemnitees”) for, and to hold each
Indemnitee harmless against, any loss, claim, damage, fine, penalty, liability
or expense (including reasonable fees and expenses of counsel) incurred without
gross negligence, willful misconduct or bad faith on its part, arising out of
or in connection with the acceptance or administration of its duties hereunder
and the Remarketing Agreement, including the Indemnitees’ reasonable costs and
expenses of defending themselves against any claim (whether asserted by the
Company, a Holder or any other Person) or liability in connection with the exercise
or performance of any of the Purchase Contract Agent’s powers or duties
hereunder or thereunder.

 

The provisions of this
Section shall survive the resignation and removal of the Purchase Contract
Agent the satisfaction or discharge of the Units and the Purchase Contracts and
the termination of this Agreement.

 

Section 7.08.  Corporate Purchase Contract Agent Required; Eligibility.  There shall at all times be a Purchase Contract Agent hereunder which
shall be a Person organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to exercise corporate trust powers, having (or being a member
of a bank holding company having) a combined capital and surplus of at least
$50,000,000, subject to supervision or examination by Federal or State
authority and having a corporate trust office in the Borough of Manhattan, New
York City, if there be such a Person in the Borough of Manhattan, New York
City, qualified and eligible under this Article and willing to act on
reasonable terms.  If such Person
publishes or files reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published or filed.  If at any time the Purchase Contract Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

Section 7.09.  Resignation and Removal; Appointment of Successor.  (a)  No resignation or
removal of the Purchase Contract Agent and no appointment of a successor
Purchase Contract Agent pursuant to this Article shall become effective until
the acceptance of appointment by the successor Purchase Contract Agent in
accordance with the applicable requirements of Section 7.10.

 

75

 

(b)           The Purchase Contract Agent may resign at any time by
giving written notice thereof to the Company 60 days prior to the effective
date of such resignation.  If the
instrument of acceptance by a successor Purchase Contract Agent required by
Section 7.10 shall not have been delivered to the Purchase Contract Agent
within 30 days after the giving of such notice of resignation, the resigning
Purchase Contract Agent may petition, at the expense of the Company, any court
of competent jurisdiction for the appointment of a successor Purchase Contract
Agent.

 

(c)           The Purchase Contract Agent may be removed at any time by
Act of the Holders of a majority in number of the Outstanding Units delivered
to the Purchase Contract Agent and the Company.  If the instrument of acceptance by a successor Purchase Contract
Agent required by Section 7.10 shall not have been delivered to the Purchase
Contract Agent within 30 days after such Act, the Purchase Contract Agent being
removed may petition any court of competent jurisdiction for the appointment of
a successor Purchase Contract Agent.

 

(d)           If at any time:

 

(i)            the Purchase Contract Agent fails to
comply with Section 310(b) of the TIA, as if the Purchase Contract Agent were
an indenture trustee under an indenture qualified under the TIA, and shall fail
to resign after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Unit for at least six months;

 

(ii)           the Purchase Contract Agent shall
cease to be eligible under Section 7.08 and shall fail to resign after written
request therefor by the Company or by any such Holder; or

 

(iii)          the Purchase Contract Agent shall
become incapable of acting or shall be adjudged a bankrupt or insolvent or a
receiver of the Purchase Contract Agent or of its property shall be appointed
or any public officer shall take charge or control of the Purchase Contract
Agent or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

 

then, in any such case, (i)
the Company by a Board Resolution may remove the Purchase Contract Agent, or
(ii) any Holder who has been a bona fide Holder of a Unit for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Purchase Contract
Agent and the appointment of a successor Purchase Contract Agent.

 

(e)           If the Purchase Contract Agent shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Purchase Contract Agent for any cause, the Company, by a Board Resolution,
shall promptly appoint a successor Purchase Contract Agent and shall comply
with the applicable requirements of Section 7.10.  If no successor Purchase Contract Agent shall have been so
appointed by the Company and accepted appointment in the manner required by
Section 7.10, any Holder who has been a bona fide Holder of a Unit for at least
six months, on behalf of itself and all others similarly situated, or the
Purchase Contract Agent may petition, at the expense of the

 

76

 

Company, 
any court of competent jurisdiction for the appointment of a successor
Purchase Contract Agent.

 

(f)            The Company shall give, or shall cause such successor
Purchase Contract Agent to give, notice of each resignation and each removal of
the Purchase Contract Agent and each appointment of a successor Purchase
Contract Agent by mailing written notice of such event by first-class mail,
postage prepaid, to all Holders as their names and addresses appear in the
applicable Security Register. Each notice shall include the name of the
successor Purchase Contract Agent and the address of its Corporate Trust
Office.

 

Section 7.10.  Acceptance of Appointment by Successor.  (a) In case of
the appointment hereunder of a successor Purchase Contract Agent, every such
successor Purchase Contract Agent so appointed shall execute, acknowledge and
deliver to the Company and to the retiring Purchase Contract Agent an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Purchase Contract Agent shall become effective and such
successor Purchase Contract Agent, without any further act, deed or conveyance,
shall become vested with all the rights, powers, agencies and duties of the
retiring Purchase Contract Agent; but, on the request of the Company or the
successor Purchase Contract Agent, such retiring Purchase Contract Agent shall,
upon payment of its charges, execute and deliver an instrument transferring to
such successor Purchase Contract Agent all the rights, powers and trusts of the
retiring Purchase Contract Agent and duly assign, transfer and deliver to such
successor Purchase Contract Agent all property and money held by such retiring
Purchase Contract Agent hereunder.

 

(b)           Upon request of any such successor Purchase Contract
Agent, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Purchase Contract Agent
all such rights, powers and agencies referred to in clause (a) of this Section
7.10.

 

(c)           No successor Purchase Contract Agent shall accept its
appointment unless at the time of such acceptance such successor Purchase Contract
Agent shall be qualified and eligible under this Article 7.

 

Section 7.11.  Merger, Conversion, Consolidation or Succession to Business.  Any Person into which the Purchase Contract Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from
any merger, conversion or consolidation to which the Purchase Contract Agent
shall be a party, or any Person succeeding to all or substantially all the
corporate trust business of the Purchase Contract Agent, shall be the successor
of the Purchase Contract Agent hereunder, provided that such Person shall be
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto.  In case any Certificates shall
have been authenticated and executed on behalf of the Holders, but not
delivered, by the Purchase Contract Agent then in office, any successor by
merger, conversion or consolidation to such Purchase Contract Agent may adopt
such authentication and execution and deliver the Certificates so authenticated
and executed with the same effect as if such successor Purchase Contract Agent
had itself authenticated and executed such Units.

 

77

 

Section 7.12.  Preservation of Information; Communications to Holders.  (a) The Purchase Contract Agent shall preserve, in as current a form as
is reasonably practicable, the names and addresses of Holders received by the
Purchase Contract Agent in its capacity as Security Registrar.

 

(b)           If three or more Holders (herein referred to as “Applicants”) apply in writing to the
Purchase Contract Agent, and furnish to the Purchase Contract Agent reasonable
proof that each such Applicant has owned a Unit for a period of at least six
months preceding the date of such application, and such application states that
the Applicants desire to communicate with other Holders with respect to their
rights under this Agreement or under the Units and is accompanied by a copy of
the form of proxy or other communication which such Applicants propose to
transmit, then the Purchase Contract Agent shall mail to all the Holders copies
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Purchase Contract Agent of the
materials to be mailed and of payment, or provision for the payment, of the
reasonable expenses of such mailing.

 

Section 7.13.  No Obligations of Purchase Contract Agent.  Except to the extent otherwise expressly provided in this Agreement,
the Purchase Contract Agent assumes no obligations and shall not be subject to
any liability under this Agreement, the Remarketing Agreement or any Purchase
Contract in respect of the obligations of the Holder of any Unit
thereunder.  The Company agrees, and
each Holder of a Certificate, by its acceptance thereof, shall be deemed to
have agreed, that the Purchase Contract Agent’s execution of the Certificates
on behalf of the Holders shall be solely as agent and attorney-in-fact for the
Holders, and that the Purchase Contract Agent shall have no obligation to
perform such Purchase Contracts on behalf of the Holders, except to the extent
expressly provided in Article Five hereof. 
Anything contained in this Agreement to the contrary notwithstanding, in
no event shall the Purchase Contract Agent or its officers, directors,
employees or agents be liable under this Agreement or the Remarketing Agreement
for (i) indirect, incidental, special, punitive, or consequential loss or
damage of any kind whatsoever, including lost profits, whether or not the
likelihood of such loss or damage was known to the Purchase Contract Agent and
regardless of the form of action or (ii) any failure or delay in the
performance of its obligations under this Agreement arising out of or caused
directly or indirectly, by acts of God; earthquake; fires; floods; wars; civil
or military disturbances; terrorist acts; sabotage; epidemics; riots;
interruptions, loss or malfunctions of utilities; accidents; labor disputes; or
acts of civil or military authority or governmental actions; it being
understood that the Purchase Contract Agent shall use reasonable efforts which
are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under such circumstances.

 

Section 7.14.  Tax Compliance.  (a) The Purchase Contract Agent, on its own
behalf and on behalf of the Company, will comply with all applicable
certification, information reporting and withholding (including “backup”
withholding) requirements imposed by applicable tax laws, regulations or
administrative practice with respect to (i) any payments made with respect to
the Units or (ii) the issuance, delivery, holding, transfer, redemption or
exercise of rights under the Units. 
Such compliance shall include, without limitation, the preparation and
timely filing of required returns and the timely

 

78

 

payment of all amounts required to be
withheld to the appropriate taxing authority or its designated agent.

 

(b)           The Purchase Contract Agent shall comply in accordance
with the terms hereof with any reasonable written direction received from the
Company with respect to the execution or certification of any required documentation
and the application of such requirements to particular payments or Holders or
in other particular circumstances, and may for purposes of this Agreement
conclusively rely on any such direction in accordance with the provisions of
Section 7.01(a) hereof.

 

(c)           The Purchase Contract Agent shall maintain all appropriate
records documenting compliance with such requirements, and shall make such
records available, on written request, to the Company or its authorized
representative within a reasonable period of time after receipt of such
request.

 

ARTICLE 8

SUPPLEMENTAL AGREEMENTS

 

Section 8.01.  Supplemental Agreements without Consent of Holders.  Without the consent of any Holders, the Company, when authorized by a
Board Resolution, the Purchase Contract Agent, the Collateral Agent, the
Custodial Agent and the Securities Intermediary at any time and from time to
time, may enter into one or more agreements supplemental hereto, in form
satisfactory to the Company and the Purchase Contract Agent, to:

 

(a)           evidence the succession of another Person to the Company,
and the assumption by any such successor of the covenants of the Company herein
and in the Certificates;

 

(b)           evidence and provide for the acceptance of appointment
hereunder by a successor Purchase Contract Agent, Collateral Agent, Securities
Intermediary or Custodial Agent;

 

(c)           add to the covenants of the Company for the benefit of the
Holders, or surrender any right or power herein conferred upon the Company;

 

(d)           make provision with respect to the rights of Holders
pursuant to the requirements of Section 5.04(b); or

 

(e)           except as provided for in Section 5.04, cure any
ambiguity, to correct or supplement any provisions herein that may be
inconsistent with any other provision herein, or to make such other provisions
in regard to matters or questions arising under this Agreement that do not
adversely affect the interests of any Holders, provided
that any amendment made solely to conform the provisions of this Agreement to
the description of the Units and the Purchase Contracts contained in the Units
Prospectus will not be deemed to adversely affect the interests of the Holders.

 

79

 

Section
8.02.  Supplemental Agreements with Consent of Holders.  With the consent of the Holders of not less than a majority of the
Outstanding Units voting together as one class, including without limitation
the consent of the Holders obtained in connection with a tender or an exchange
offer, by Act of said Holders delivered to the Company, the Purchase Contract
Agent, the Company, the Collateral Agent, the Securities Intermediary and the
Custodial Agent, as the case may be, when authorized by a Board Resolution, and
the Purchase Contract Agent may enter into an agreement or agreements
supplemental hereto for the purpose of modifying in any manner the terms of the
Purchase Contracts, or the provisions of this Agreement or the rights of the
Holders in respect of the Units; provided,
however, that, except as contemplated herein, no such supplemental
agreement shall, without the consent of the Holder of each outstanding Purchase
Contract affected thereby,

 

(a)           change any Payment Date;

 

(b)           change the amount or the type of Collateral required to be
Pledged to secure a Holder’s obligations under the Purchase Contract (except
for the rights of holders of Corporate Units to substitute Treasury Securities
for the Pledged Applicable Ownership Interests in Senior Notes or the Pledged
Applicable Ownership Interests in the Treasury Portfolio, as the case may be,
or the rights of Holders of Treasury Units to substitute Senior Notes or the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term), as applicable, for the Pledged
Treasury Securities), impair the right of the Holder of any Purchase Contract
to receive distributions on the related Collateral or otherwise adversely
affect the Holder’s rights in or to such Collateral;

 

(c)           impair the Holders’ right to institute suit for the enforcement
of any Purchase Contract or any Contract Adjustment Payments;

 

(d)           except as set forth in Section 5.04, reduce the number of
shares of Common Stock or the amount of any other property to be purchased
pursuant to any Purchase Contract, increase the price to purchase shares of
Common Stock or any other property upon settlement of any Purchase Contract or
change the Purchase Contract Settlement Date or the right to Early Settlement
or Cash Merger Early Settlement or otherwise adversely affect the Holder’s
rights under the Purchase Contract in any material respect;

 

(e)           reduce any Contract Adjustment Payments or change any
place where, or the coin or currency in which, any Contract Adjustment Payment
is payable; or

 

(f)            reduce the percentage of the outstanding Purchase
Contracts whose Holder’s consent is required for any modification or amendment
to the provisions of this Agreement or the Purchase Contracts;

 

provided that if any amendment or proposal referred
to above would adversely affect only the Corporate Units or the Treasury Units,
then only the affected class of Holders as of the record date for the Holders
entitled to vote thereon will be entitled to vote on such amendment or
proposal, and such amendment or proposal shall not be effective except with the
consent of Holders of not less than a majority of such class; and provided,
further,

 

80

 

that the unanimous consent
of the Holders of each outstanding Purchase Contract of such class affected
thereby shall be required to approve any amendment or proposal specified in
clauses (a) through (f) of this Section 8.02.

 

It shall not be necessary
for any Act of Holders under this Section to approve the particular form of any
proposed supplemental agreement, but it shall be sufficient if such Act shall
approve the substance thereof.

 

Section 8.03.  Execution of Supplemental Agreements.  In executing,
or accepting the additional agencies created by any supplemental agreement
permitted by this Article or the modifications thereby of the agencies created
by this Agreement, the Purchase Contract Agent, the Collateral Agent, the
Securities Intermediary and the Custodial Agent shall be provided, and (subject
to Section 7.01 with respect to the Purchase Contract Agent) shall be fully
authorized and protected in relying upon, an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such supplemental agreement is
authorized or permitted by this Agreement and that any and all conditions
precedent to the execution and delivery of such supplemental agreement have
been satisfied.  The Purchase Contract
Agent, the Collateral Agent, the Securities Intermediary and the Custodial
Agent may, but shall not be obligated to, enter into any such supplemental agreement
which affects their own rights, duties or immunities under this Agreement or
otherwise.

 

Section 8.04.  Effect of Supplemental Agreements.  Upon the
execution of any supplemental agreement under this Article, this Agreement
shall be modified in accordance therewith, and such supplemental agreement
shall form a part of this Agreement for all purposes; and every Holder of
Certificates theretofore or thereafter authenticated, executed on behalf of the
Holders and delivered hereunder, shall be bound thereby.

 

Section 8.05.  Reference to Supplemental Agreements.  Certificates
authenticated, executed on behalf of the Holders and delivered after the
execution of any supplemental agreement pursuant to this Article may, and shall
if required by the Purchase Contract Agent, bear a notation in form approved by
the Purchase Contract Agent as to any matter provided for in such supplemental
agreement.  If the Company shall so
determine, new Certificates so modified as to conform, in the opinion of the
Purchase Contract Agent and the Company, to any such supplemental agreement may
be prepared and executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Purchase Contract Agent in exchange for
outstanding Certificates.

 

ARTICLE 9

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

Section 9.01.  Covenant Not To Consolidate, Merge, Convey, Transfer or Lease
Property except under Certain Conditions. 
The Company covenants
that it will not merge or consolidate with, any other Person or sell, assign,
transfer, or otherwise dispose of all or substantially all of its assets,
unless:

 

(a)           either the Company shall be the surviving Person, or the
successor (if other than the Company) shall be a corporation or limited
liability company organized and

 

81

 

existing under the laws of the United States
of America or a State thereof or the District of Columbia and such corporation
or limited liability company, as the case may be, shall expressly assume all
the obligations of the Company under the Purchase Contracts, this Agreement
(including the Pledge provided for herein), the Indenture (including any
supplement thereto) and the Remarketing Agreement by one or more supplemental
agreements in form reasonably satisfactory to the Purchase Contract Agent and
the Collateral Agent, executed and delivered to the Purchase Contract Agent and
the Collateral Agent by such corporation or limited liability company, as the
case may be; and

 

(b)           the Company or such successor corporation or limited
liability company shall not, immediately after such consolidation, conversion,
merger, sale, assignment, transfer, lease or conveyance, be in default of
payment obligations under the Purchase Contracts, this Agreement, the Indenture
(including any supplement thereto) or the Remarketing Agreement or in material
default in the performance of any other covenants under any of the foregoing
agreements.

 

Section 9.02.  Rights and Duties of Successor Corporation.  In case of any such merger, consolidation, sale, assignment, transfer,
or disposition and upon any such assumption by a successor Person in accordance
with Section 9.01, such surviving Person shall succeed to and be substituted
for the Company with the same effect as if it had been named herein as the
Company.  Such surviving Person
thereupon may cause to be signed, and may issue either in its own name or in
the name of Genworth Financial, Inc. any or all of the Certificates evidencing
Units issuable hereunder which theretofore shall not have been signed by the
Company and delivered to the Purchase Contract Agent; and, upon the order of
such surviving Person, instead of the Company, and subject to all the terms,
conditions and limitations in this Agreement prescribed, the Purchase Contract
Agent shall authenticate and execute on behalf of the Holders and deliver any
Certificates which previously shall have been signed and delivered by the
officers of the Company to the Purchase Contract Agent for authentication and
execution, and any Certificate evidencing Units which such surviving Person
thereafter shall cause to be signed and delivered to the Purchase Contract
Agent for that purpose.  All the
Certificates issued shall in all respects have the same legal rank and benefit under
this Agreement as the Certificates theretofore or thereafter issued in
accordance with the terms of this Agreement as though all of such Certificates
had been issued at the date of the execution hereof.

 

In case of any such merger,
consolidation, sale, assignment, transfer, or disposition such change in
phraseology and form (but not in substance) may be made in the Certificates
evidencing Units thereafter to be issued as may be appropriate.

 

Section 9.03.  Officers’ Certificate and Opinion of Counsel Given to Purchase
Contract Agent.  The Purchase Contract Agent, subject to
Section 7.01 and Section 7.03, shall receive an Officers’ Certificate and an
Opinion of Counsel as conclusive evidence that any such merger, consolidation,
sale, assignment, transfer, or disposition, and any such assumption, complies
with the provisions of this Article and that all conditions precedent to the
consummation of any such merger, consolidation, share exchange, sale,
assignment, transfer, lease or conveyance have been met.

 

82

 

ARTICLE 10

COVENANTS

 

Section 10.01.  Performance under Purchase Contracts.  The Company
covenants and agrees for the benefit of the Holders from time to time of the
Units that it will duly and punctually perform its obligations under the
Purchase Contracts in accordance with the terms of the Purchase Contracts and
this Agreement.

 

Section 10.02.  Maintenance of Office or Agency. 
The Company will
maintain in the Borough of Manhattan, City of New York, New York an office or
agency where Certificates may be presented or surrendered for acquisition of
shares of Common Stock upon settlement of the Purchase Contracts on the
Purchase Contract Settlement Date or upon Early Settlement or Cash Merger Early
Settlement and for transfer of Collateral upon occurrence of a Termination
Event, where Certificates may be surrendered for registration of transfer or
exchange, or for a Collateral Substitution and where notices and demands to or
upon the Company in respect of the Units and this Agreement may be served. The
Company will give prompt written notice to the Purchase Contract Agent of the
location, and any change in the location, of such office or agency. The Company
initially designates the Corporate Trust Office of the Purchase Contract Agent
as such office of the Company.  If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Purchase Contract Agent with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office, and the Company hereby appoints the Purchase
Contract Agent as its agent to receive all such presentations, surrenders,
notices and demands.

 

The Company may also from
time to time designate one or more other offices or agencies where Certificates
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided,
however, that no such designation
or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the Borough of Manhattan, City of New York, New
York for such purposes.  The Company
will give prompt written notice to the Purchase Contract Agent of any such
designation or rescission and of any change in the location of any such other
office or agency. The Company hereby designates as the place of payment for the
Units the Corporate Trust Office and appoints the Purchase Contract Agent at
its Corporate Trust Office as paying agent in such city.

 

Section 10.03.  Company To Reserve Common Stock. 
The Company shall at
all times prior to the Purchase Contract Settlement Date reserve and keep
available, free from preemptive rights, out of its authorized but unissued
Common Stock the full number of shares of Common Stock issuable against tender
of payment in respect of all Purchase Contracts constituting a part of the
Units evidenced by Outstanding Certificates.

 

Section 10.04.  Covenants as to Common Stock; Listing.  (a)  The Company covenants that all shares of
Common Stock which may be issued against tender of payment in respect of any
Purchase Contract constituting a part of the Outstanding Units will, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable.

 

83

 

The Company further
covenants that, if at any time the Common Stock shall be listed on the NYSE or
any other national securities exchange or automated quotation system, the
Company will, if permitted by the rules of such exchange or automated quotation
system, list and keep listed, so long as the Common Stock shall be so listed on
such exchange or automated quotation system, all Common Stock issuable upon
Settlement of Purchase Contracts; provided,
however, that, if the rules of
such exchange or automated quotation system permit the Company to defer the
listing of such Common Stock until the date on which any Purchase Contract is
first settled in accordance with the provisions of this Agreement, the Company covenants
to list such Common Stock issuable upon settlement of the Purchase Contracts in
accordance with the requirements of such exchange or automated quotation system
no later than at such time.

 

Section 10.05.  Statements of Officers of the Company as to Default.  The Company will deliver to the Purchase Contract Agent, within 120
days after the end of each fiscal year of the Company (which as of the date
hereof is December 31) ending after the date hereof, an Officers’ Certificate,
stating whether or not to the knowledge of the signers thereof the Company is
in default in the performance and observance of any of the terms, provisions
and conditions of this Agreement, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they
may have knowledge.

 

Section 10.06.  ERISA.  Each Holder from time to time of the Units
that is a Plan or who used assets of a Plan to purchase Units hereby represents
that either (i) no portion of the assets used by such Holder to acquire the
Corporate Units constitutes assets of the Plan or (ii) the purchase or holding
of the Corporate Units by such purchaser or transferee will not constitute a
non-exempt prohibited transaction under Section 406 of ERISA or Section 4973 of
the Code or similar violation under any applicable laws.

 

Section 10.07.  Tax Treatment.  The Company covenants and agrees, for United
States federal, state and local income and franchise tax purposes, to (i) treat
a Holder’s acquisition of the Corporate Units as the acquisition of the
Applicable Ownership Interests in Senior Notes and Purchase Contract
constituting the Corporate Units and (ii) treat each Holder as the owner of the
applicable interest in the Collateral, including the Senior Notes underlying the
Applicable Ownership Interests in Senior Notes, Applicable Ownership Interests
in the Treasury Portfolio or the Treasury Securities.

 

ARTICLE 11

PLEDGE

 

Section 11.01.  Pledge.  Each Holder, acting through the Purchase
Contract Agent as such Holder’s attorney-in-fact, and the Purchase Contract
Agent, acting solely as such attorney-in-fact, hereby pledges and grants to the
Collateral Agent, as agent of and for the benefit of the Company, a continuing
first priority security interest in and to, and a lien upon and right of
set-off against, all of such Person’s right, title and interest in and to the
Collateral to secure the prompt and complete payment and performance when due
(whether at stated maturity, by acceleration or otherwise) of the Obligations.
The Collateral Agent shall have all of the rights, remedies and recourses with
respect to the Collateral afforded a

 

84

 

secured party by the UCC, in addition to, and
not in limitation of, the other rights, remedies and recourses afforded to the
Collateral Agent by this Agreement.

 

Section 11.02.  Termination.  As to each Holder, the Pledge created hereby
shall terminate upon the satisfaction of such Holder’s Obligations. Upon such
termination, the Collateral Agent shall instruct the Securities Intermediary to
Transfer such portion of the Collateral attributable to such Holder to the
Purchase Contract Agent for distribution to such Holder, free and clear of the
Pledge created hereby.

 

ARTICLE 12

ADMINISTRATION OF COLLATERAL

 

Section 12.01.  Initial Deposit of Senior Notes. 
(a)  Prior to or concurrently with the
execution and delivery of this Agreement, the Purchase Contract Agent, on
behalf of the initial Holders of the Corporate Units, shall Transfer to the
Securities Intermediary, for credit to the Collateral Account, the Applicable
Ownership Interests in Senior Notes and the Senior Notes underlying such
Applicable Ownership Interests in Senior Notes or security entitlements
relating thereto and the Securities Intermediary shall indicate by book-entry
that a securities entitlement with respect to such Applicable Ownership
Interests in Senior Notes has been credited to the Collateral Account.

 

(b)           The Collateral Agent may, at any time or from time to
time, in its sole discretion, cause any or all securities or other property
underlying any financial assets credited to the Collateral Account to be
registered in the name of the Securities Intermediary, the Collateral Agent or
their respective nominees; provided, however,
that unless any Event of Default (as defined in the Indenture) shall
have occurred and be continuing, the Collateral Agent agrees not to cause any
Senior Notes to be so re-registered.

 

Section
12.02.  Establishment of Collateral Account.  The Securities
Intermediary hereby confirms that:

 

(a)           the Securities Intermediary has established the Collateral
Account;

 

(b)           the Collateral Account is a securities account;

 

(c)           subject to the terms of this Agreement, the Securities
Intermediary shall identify in its records the Collateral Agent as the
entitlement holder entitled to exercise the rights that comprise any financial
asset credited to the Collateral Account;

 

(d)           all property delivered to the Securities Intermediary
pursuant to this Agreement, including any Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (i) of the definition thereof) or
Treasury Securities and the Permitted Investments, will be credited promptly to
the Collateral Account; and

 

(e)           all securities or other property underlying any financial
assets credited to the Collateral Account shall be (i) registered in the name
of the Purchase Contract Agent and

 

85

 

indorsed to the Securities Intermediary or in
blank, (ii) registered in the name of the Securities Intermediary or (iii)
credited to another securities account maintained in the name of the Securities
Intermediary. In no case will any financial asset credited to the Collateral
Account be registered in the name of the Purchase Contract Agent (in its
capacity as such) or any Holder or specially indorsed to the Purchase Contract
Agent (in its capacity as such) or any Holder, unless such financial asset has
been further indorsed to the Securities Intermediary or in blank.

 

Section 12.03.  Treatment as Financial Assets. 
Each item of property
(whether investment property, financial asset, security, instrument or cash)
credited to the Collateral Account shall be treated as a financial asset.

 

Section 12.04.  Sole Control by Collateral Agent.  Except as
provided in Section 15.01, at all times prior to the termination of the Pledge,
the Collateral Agent shall have sole control of the Collateral Account, and the
Securities Intermediary shall take instructions and directions, and comply with
entitlement orders, with respect to the Collateral Account or any financial
asset credited thereto solely from the Collateral Agent. If at any time the
Securities Intermediary shall receive an entitlement order issued by the
Collateral Agent and relating to the Collateral Account, the Securities
Intermediary shall comply with such entitlement order without further consent
by the Purchase Contract Agent or any Holder or any other Person. Except as
otherwise permitted under this Agreement, until termination of the Pledge, the
Securities Intermediary will not comply with any entitlement orders issued by
the Purchase Contract Agent or any Holder.

 

Section 12.05.  Jurisdiction.  The Collateral Account, and the rights and
obligations of the Securities Intermediary, the Collateral Agent, the Purchase
Contract Agent and the Holders with respect thereto, shall be governed by the
laws of the State of New York. Regardless of any provision in any other
agreement, the Securities Intermediary’s jurisdiction is the State of New York.

 

Section 12.06.  No Other Claims.  Except for the claims and interest of the
Collateral Agent and of the Purchase Contract Agent and the Holders in the
Collateral Account, the Securities Intermediary (without having conducted any
investigation) does not know of any claim to, or interest in, the Collateral
Account or in any financial asset credited thereto. If any Person asserts any
lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Collateral
Account or in any financial asset carried therein, the Securities Intermediary
will promptly notify the Collateral Agent and the Purchase Contract Agent.

 

Section 12.07.  Investment and Release.  All proceeds of financial assets from time to
time credited to the Collateral Account shall be invested and reinvested as
provided in this Agreement. At all times prior to termination of the Pledge, no
property shall be released from the Collateral Account except in accordance
with this Agreement or upon written instructions of the Collateral Agent.

 

Section 12.08.  Statements and Confirmations. 
The Securities
Intermediary will promptly send copies of all statements, confirmations and
other correspondence concerning the Collateral Account and any financial assets
credited thereto simultaneously

 

86

 

to each of the Purchase Contract Agent and
the Collateral Agent at their addresses for notices under this Agreement.

 

Section 12.09.  Tax Allocations.  The Purchase Contract Agent shall report all
items of income, gain, expense and loss recognized in the Collateral Account,
to the extent such reporting is required by law, to the Internal Revenue
Service authorities in the manner required by law.  Neither the Securities Intermediary nor the Collateral Agent
shall have any tax reporting duties hereunder.

 

Section 12.10.  No Other Agreements.  The Securities Intermediary has not entered
into, and prior to the termination of the Pledge will not enter into, any
agreement with any other Person relating to the Collateral Account or any
financial assets credited thereto, including, without limitation, any agreement
to comply with entitlement orders of any Person other than the Collateral
Agent.

 

Section 12.11.  Powers Coupled with an Interest. 
The rights and powers
granted in this Purchase Contract and Pledge Agreement to the Collateral Agent
have been granted in order to perfect its security interests in the Collateral
Account, are powers coupled with an interest and will be affected neither by
the bankruptcy of the Purchase Contract Agent or any Holder nor by the lapse of
time. The obligations of the Securities Intermediary under this Purchase
Contract and Pledge Agreement shall continue in effect until the termination of
the Pledge.

 

Section 12.12.  Waiver of Lien; Waiver of Set-off.  The Securities
Intermediary waives any security interest, lien or right to make deductions or
set-offs that it may now have or hereafter acquire in or with respect to the
Collateral Account, any financial asset credited thereto or any security
entitlement in respect thereof.  Neither
the financial assets credited to the Collateral Account nor the security
entitlements in respect thereof will be subject to deduction, set-off, banker’s
lien, or any other right in favor of any person other than the Company.

 

ARTICLE 13

RIGHTS AND REMEDIES OF THE COLLATERAL AGENT

 

Section 13.01.  Rights and Remedies of the Collateral Agent.  (a)  In addition to the rights
and remedies set forth herein or otherwise available at law or in equity, after
a collateral event of default (as specified in Section 13.01(b) below)
hereunder, the Collateral Agent shall have all of the rights and remedies with
respect to the Collateral of a secured party under the UCC (whether or not the
UCC is in effect in the jurisdiction where the rights and remedies are
asserted) and the TRADES Regulations and such additional rights and remedies to
which a secured party is entitled under the laws in effect in any jurisdiction
where any rights and remedies hereunder may be asserted. Without limiting the
generality of the foregoing, such remedies may include, to the extent permitted
by applicable law, (1) retention of the Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes, the Pledged Treasury Securities
or the Pledged Applicable Ownership Interests in the Treasury Portfolio in full
satisfaction of the Holders’ obligations under the Purchase Contracts and the
Purchase Contract Agreement or (2) sale

 

87

 

of the Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes, the Pledged Treasury Securities
or the Pledged Applicable Ownership Interests in the Treasury Portfolio in one
or more public or private sales.

 

(b)           Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, in the event the Collateral Agent is
unable to make payments to the Company on account of Proceeds of (i) the Senior
Notes underlying Pledged Applicable Ownership Interests in Senior Notes (other
than any interest payments thereon), (ii) Pledged Applicable Ownership
Interests in the Treasury Portfolio, or (iii) the Pledged Treasury Securities
as provided in this Agreement in satisfaction of the Obligations of the Holder
of the Units of which such applicable Pledged Applicable Ownership Interests in
the Treasury Portfolio or such Pledged Treasury Securities are a part under the
related Purchase Contracts, the inability to make such payments shall
constitute a “collateral  event of default” hereunder and the
Collateral Agent shall have and may exercise, with reference to such Senior
Notes underlying Pledged Applicable Ownership Interests in Senior Notes,
Pledged Treasury Securities or Pledged Applicable Ownership Interests in the
Treasury Portfolio, as applicable, any and all of the rights and remedies
available to a secured party under the UCC and the TRADES Regulations after
default by a debtor, and as otherwise granted herein or under any other law.

 

(c)           Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, the Collateral Agent is hereby
irrevocably authorized to receive, collect and apply to the satisfaction of the
Obligations all payments with respect to (i) the Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes (other than any interest
payments thereon), (ii) the Pledged Treasury Securities and (iii) the Pledged
Applicable Ownership Interests in the Treasury Portfolio, subject, in each
case, to the provisions of this Agreement, and as otherwise provided herein.

 

(d)           The Purchase Contract Agent and each Holder agrees that,
from time to time, upon the written request of the Collateral Agent, the
Purchase Contract Agent, on behalf of such Holder, shall execute and deliver
such further documents and do such other acts and things as the Collateral
Agent may reasonably request in order to maintain the Pledge, and the
perfection and priority thereof, and to confirm the rights of the Collateral
Agent hereunder. The Purchase Contract Agent shall have no liability to any
Holder for executing any documents or taking any such acts requested by the
Collateral Agent hereunder, except for liability for its own grossly negligent
acts, its own grossly negligent failure to act or its own willful misconduct.

 

ARTICLE 14

REPRESENTATIONS AND WARRANTIES TO

COLLATERAL AGENT; HOLDER COVENANTS

 

Section 14.01.  Representations and Warranties. 
Each Holder from time
to time, acting through the Purchase Contract Agent as attorney-in-fact (it
being understood that the Purchase Contract Agent shall not be liable for any
representation or warranty made by or on behalf of a Holder), hereby represents
and warrants to the Collateral Agent (with

 

88

 

respect to such Holder’s interest in the
Collateral), which representations and warranties shall be deemed repeated on
each day a Holder effects a Transfer of Collateral, that:

 

(a)           such Holder has the power to grant a security interest in
and lien on the Collateral;

 

(b)           such Holder is the sole beneficial owner of the Collateral
and, in the case of Collateral delivered in physical form, is the sole holder
of such Collateral and is the sole beneficial owner of, or has the right to
Transfer, the Collateral it Transfers to the Collateral Agent for credit to the
Collateral Account, free and clear of any security interest, lien, encumbrance,
call, liability to pay money or other restriction other than the security
interest and lien granted under Article 11;

 

(c)           upon the Transfer of the Collateral to the Securities
Intermediary for credit to the Collateral Account, the Collateral Agent, for
the benefit of the Company, will have a valid and perfected first priority
security interest therein (assuming that any central clearing operation or any
securities intermediary or other entity not within the control of the Holder
involved in the Transfer of the Collateral, including the Collateral Agent and
the Securities Intermediary, gives the notices and takes the action required of
it hereunder and under applicable law for perfection of that interest and
assuming the establishment and exercise of control pursuant to Article 12
hereof); and

 

(d)           the execution and performance by the Holder of its
obligations under this Agreement will not result in the creation of any
security interest, lien or other encumbrance on the Collateral (other than the
security interest and lien granted under Article 11 hereof) or violate any
provision of any existing law or regulation applicable to it or of any
mortgage, charge, pledge, indenture, contract or undertaking to which it is a
party or which is binding on it or any of its assets.

 

Section
14.02.  Covenants.  The Purchase Contract Agent and the Holders
from time to time, acting through the Purchase Contract Agent as their
attorney-in-fact (it being understood that the Purchase Contract Agent shall
not be liable for any covenant made by or on behalf of a Holder), hereby
covenant to the Collateral Agent that for so long as the Collateral remains
subject to the Pledge:

 

(a)           neither the Purchase Contract Agent nor such Holders will
create or purport to create or allow to subsist any mortgage, charge, lien,
pledge or any other security interest whatsoever over the Collateral or any
part of it other than pursuant to this Agreement; and

 

(b)           neither the Purchase Contract Agent nor such Holders will
sell or otherwise dispose (or attempt to dispose) of the Collateral or any part
of it except for the beneficial interest therein, subject to the Pledge
hereunder, transferred in connection with a Transfer of the Units.

 

89

 

ARTICLE 15

THE COLLATERAL AGENT, THE CUSTODIAL AGENT AND THE SECURITIES INTERMEDIARY

 

It is hereby agreed as
follows:

 

Section 15.01.  Appointment, Powers and Immunities.  The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall act as agent
for the Company hereunder with such powers as are specifically vested in the
Collateral Agent, the Custodial Agent and the Securities Intermediary, as the
case may be, by the terms of this Agreement. The Collateral Agent, the
Custodial Agent and Securities Intermediary shall:

 

(a)           have no duties or responsibilities except those expressly
set forth in this Agreement and no implied covenants or obligations shall be
inferred from this Agreement against the Collateral Agent, the Custodial Agent
or the Securities Intermediary, nor shall the Collateral Agent, the Custodial
Agent or the Securities Intermediary be bound by the provisions of any
agreement by any party hereto beyond the specific terms hereof;

 

(b)           not be responsible for any recitals contained in this
Agreement, or in any certificate or other document referred to or provided for
in, or received by it under, this Agreement or the Units, or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement (other than as against the Collateral Agent, the Custodial Agent or
the Securities Intermediary, as the case may be), the Units, any Collateral or
any other document referred to or provided for herein or therein or for any
failure by the Company or any other Person (except the Collateral Agent, the
Custodial Agent or Securities Intermediary, as the case may be) to perform any
of its obligations hereunder or thereunder or, except as expressly required
hereby, for the perfection, priority or maintenance of any security interest
created hereunder;

 

(c)           not be required to initiate or conduct any litigation or
collection proceedings hereunder (except pursuant to directions furnished under
Section 15.02 hereof, subject to Section 15.08 hereof);

 

(d)           not be responsible for any action taken or omitted to be
taken by it hereunder or under any other document or instrument referred to or
provided for herein or in connection herewith or therewith, except for its own
gross negligence or willful misconduct; and

 

(e)           not be required to advise any party as to selling or
retaining, or taking or refraining from taking any action with respect to, any
securities or other property deposited hereunder.

 

Subject to the foregoing,
during the term of this Agreement, the Collateral Agent, the Custodial Agent
and the Securities Intermediary shall take all reasonable action in connection
with the safekeeping and preservation of the Collateral hereunder as determined
by industry standards.

 

90

 

No provision of this
Agreement shall require the Collateral Agent, the Custodial Agent or the
Securities Intermediary to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder. In no
event shall the Collateral Agent, the Custodial Agent or the Securities
Intermediary be liable for any amount in excess of the Value of the Collateral.

 

Section 15.02.  Instructions of the Company. 
The Company shall
have the right, by one or more written instruments executed and delivered to
the Collateral Agent, to direct the time, method and place of conducting any
proceeding for the realization of any right or remedy available to the
Collateral Agent, or of exercising any power conferred on the Collateral Agent,
or to direct the taking or refraining from taking of any action authorized by
this Agreement; provided, however, that (i) such direction shall not
conflict with the provisions of any law or of this Agreement or involve the
Collateral Agent in personal liability and (ii) the Collateral Agent shall be
indemnified to its satisfaction as provided herein. Nothing contained in this
Section 15.02 shall impair the right of the Collateral Agent in its discretion
to take any action or omit to take any action which it deems proper and which
is not inconsistent with such direction. 
None of the Collateral Agent, the Custodial Agent or the Securities
Intermediary has any obligation or responsibility to file UCC financing
statements.

 

Section 15.03.  Reliance by Collateral Agent, Custodial Agent and Securities
Intermediary.  Each of the Securities Intermediary, the
Custodial Agent and the Collateral Agent shall be entitled to rely conclusively
upon any certification, order, judgment, opinion, notice or other written
communication (including, without limitation, any thereof by e-mail or similar
electronic means, telecopy, telex or facsimile) believed by it in good faith to
be genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons (without being required to determine the correctness of
any fact stated therein) and consult with and conclusively rely upon advice,
opinions and statements of legal counsel and other experts selected by the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be. As to any matters not expressly provided for by this Agreement,
the Collateral Agent, the Custodial Agent and the Securities Intermediary shall
in all cases be fully protected in acting, or in refraining from acting,
hereunder in accordance with instructions given by the Company in accordance
with this Agreement.

 

Section 15.04.  Certain Rights.  (a) Whenever in the administration of the
provisions of this Agreement the Collateral Agent, the Custodial Agent or the
Securities Intermediary shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering any action to be taken
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of gross negligence or bad faith
on the part of the Collateral Agent, the Custodial Agent or the Securities
Intermediary, be deemed to be conclusively proved and established by a
certificate signed by one of the Company’s officers, and delivered to the
Collateral Agent, the Custodial Agent or the Securities Intermediary and such
certificate, in the absence of gross negligence or bad faith on the part of the
Collateral Agent, the Custodial Agent or the Securities Intermediary, shall be
full warrant to the Collateral Agent, the Custodial Agent or the Securities
Intermediary for any action taken, suffered or omitted by it under the
provisions of this Agreement upon the faith thereof.

 

91

 

(b)           The Collateral Agent, the Custodial Agent or the
Securities Intermediary shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, entitlement order, approval or other
paper or document.

 

Section 15.05.  Merger, Conversion, Consolidation or Succession to Business.  Any corporation into which the Collateral Agent, the Custodial Agent or
the Securities Intermediary may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Collateral Agent, the Custodial Agent or the
Securities Intermediary shall be a party, or any corporation succeeding to all
or substantially all of the corporate trust business of the Collateral Agent,
the Custodial Agent or the Securities Intermediary shall be the successor of
the Collateral Agent, the Custodial Agent or the Securities Intermediary
hereunder without the execution or filing of any paper with any party hereto or
any further act on the part of any of the parties hereto except where an
instrument of transfer or assignment is required by law to effect such
succession, anything herein to the contrary notwithstanding.

 

Section 15.06.  Rights in Other Capacities. 
The Collateral Agent,
the Custodial Agent and the Securities Intermediary and their affiliates may
(without having to account therefor to the Company) accept deposits from, lend
money to, make their investments in and generally engage in any kind of
banking, trust or other business with the Purchase Contract Agent, any other
Person interested herein and any Holder (and any of their respective
subsidiaries or affiliates) as if it were not acting as the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, and the
Collateral Agent, the Custodial Agent, the Securities Intermediary and their
affiliates may accept fees and other consideration from the Purchase Contract
Agent and any Holder without having to account for the same to the Company; provided that each of the Collateral
Agent, the Custodial Agent and the Securities Intermediary covenants and agrees
with the Company that it shall not accept, receive or permit there to be
created in favor of itself and shall take no affirmative action to permit there
to be created in favor of any other Person, any security interest, lien or
other encumbrance of any kind in or upon the Collateral other than the lien
created by the Pledge.

 

Section 15.07.  Non-reliance on the Collateral Agent, Custodial Agent and
Securities Intermediary.  None of the Collateral Agent, the Custodial
Agent and the Securities Intermediary shall be required to keep itself informed
as to the performance or observance by the Purchase Contract Agent or any
Holder of this Agreement, the Units or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder. None of the Collateral Agent, the
Custodial Agent or the Securities Intermediary shall have any duty or
responsibility to provide the Company with any credit or other information
concerning the affairs, financial condition or business of the Purchase
Contract Agent or any Holder (or any of their respective affiliates) that may
come into the possession of the Collateral Agent, the Custodial Agent or the
Securities Intermediary or any of their respective affiliates.

 

Section 15.08.  Compensation
and Indemnity.  The Company
agrees to:

 

92

 

(a)           pay the Collateral Agent, the Custodial Agent and the
Securities Intermediary from time to time such compensation as shall be agreed
in writing between the Company and the Collateral Agent, the Custodial Agent or
the Securities Intermediary, as the case may be, for all services rendered by
them hereunder;

 

(b)           indemnify and hold harmless the Collateral Agent, the
Custodial Agent, the Securities Intermediary and each of their respective
directors, officers, agents and employees (collectively, the “Pledge  Indemnitees”),
from and against any and all claims, liabilities, losses, damages, fines,
penalties and expenses (including reasonable fees and expenses of counsel)
(collectively, “Losses” and
individually, a “Loss”) that may
be imposed on, incurred by, or asserted against, the Indemnitees or any of them
for following any instructions or other directions upon which any of the
Collateral Agent, the Custodial Agent or the Securities Intermediary is
entitled to rely pursuant to the terms of this Agreement, provided that the Collateral Agent, the
Custodial Agent or the Securities Intermediary has not acted with gross
negligence or engaged in willful misconduct or bad faith with respect to the
specific Loss against which indemnification is sought; and

 

(c)           in addition to and not in limitation of paragraph (b) of
this Section 15.08, indemnify and hold the Indemnitees and each of them
harmless from and against any and all Losses that may be imposed on, incurred
by or asserted against, the Indemnitees or any of them in connection with or
arising out of the Collateral Agent’s, the Custodial Agent’s or the Securities
Intermediary’s acceptance or performance of its powers and duties under this
Agreement, provided the
Collateral Agent, the Custodial Agent or the Securities Intermediary has not
acted with gross negligence or engaged in willful misconduct or bad faith with
respect to the specific Loss against which indemnification is sought.

 

The provisions of this
Section and Section 15.14 shall survive the resignation or removal of the Collateral
Agent, the Custodial Agent or the Securities Intermediary and the termination
of this Agreement.

 

Section
15.09.  Failure to Act.  In the event that, in the good faith belief
of the Collateral Agent, the Custody Agent or the Securities Intermediary, an
ambiguity in the provisions of this Agreement arises or any actual dispute
between or conflicting claims by or among the parties hereto or any other
Person with respect to any funds or property deposited hereunder has been
asserted in writing, then at its sole option, each of the Collateral Agent, the
Custodial Agent and the Securities Intermediary shall be entitled, after prompt
notice to the Company and the Purchase Contract Agent, to refuse to comply with
any and all claims, demands or instructions with respect to such property or
funds so long as such dispute or conflict shall continue, and the Collateral
Agent, the Custodial Agent and the Securities Intermediary, as the case may be,
shall not be or become liable in any way to any of the parties hereto for its
failure or refusal to comply with such conflicting claims, demands or
instructions. The Collateral Agent, the Custodial Agent and the Securities
Intermediary shall be entitled to refuse to act until either:

 

(a)           such conflicting or adverse claims or demands shall have
been finally determined by a court of competent jurisdiction or settled by
agreement between the conflicting parties as evidenced in a writing
satisfactory to the Collateral Agent, the Custodial Agent or the Securities
Intermediary; or

 

93

 

(b)           the Collateral Agent, the Custodial Agent or the
Securities Intermediary shall have received security or an indemnity
satisfactory to it sufficient to hold it harmless from and against any and all
loss, liability or reasonable out-of-pocket expense which it may incur by
reason of its acting.

 

The Collateral Agent, the
Custodial Agent and the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the
Collateral Agent, the Custodial Agent or the Securities Intermediary may deem
necessary. Notwithstanding anything contained herein to the contrary, none of
the Collateral Agent, the Custodial Agent or the Securities Intermediary shall
be required to take any action that is in its opinion contrary to law or to the
terms of this Agreement, or which would in its opinion subject it or any of its
officers, employees or directors to liability.

 

Section 15.10.  Resignation of Collateral Agent, the Custodial Agent and the
Securities Intermediary.  (a) Subject to the appointment and acceptance
of a successor Collateral Agent, Custodial Agent or Securities Intermediary as
provided below:

 

(i)            the Collateral Agent, the Custodial
Agent or the Securities Intermediary may resign at any time by giving notice
thereof to the Company and the Purchase Contract Agent as attorney-in-fact for
the Holders;

 

(ii)           the Collateral Agent, the Custodial
Agent or the Securities Intermediary may be removed at any time by the Company;
and

 

(iii)          if the Collateral Agent, the Custodial
Agent or the Securities Intermediary fails to perform any of its material
obligations hereunder in any material respect for a period of not less than 20
days after receiving written notice of such failure by the Purchase Contract
Agent and such failure shall be continuing, the Collateral Agent, the Custodial
Agent and the Securities Intermediary may be removed by the Purchase Contract
Agent, acting at the direction of the Holders.

 

The Purchase Contract Agent
shall promptly notify the Company upon the transmission of notice as
contemplated by clause (iii) of Section 15.10(a) and any removal of the
Collateral Agent, the Custodial Agent or the Securities Intermediary pursuant
to clause (iii) of this Section 15.10(a). Upon any such resignation or removal,
the Company shall have the right to appoint a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, which shall not
be an Affiliate of the Purchase Contract Agent. If no successor Collateral
Agent, Custodial Agent or Securities Intermediary shall have been so appointed
and shall have accepted such appointment within 45 days after the retiring
Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s giving of
notice of resignation or the Company’s or the Purchase Contract Agent’s giving
notice of such removal, then the retiring or removed Collateral Agent,
Custodial Agent or Securities Intermediary may petition any court of competent
jurisdiction, at the expense of the Company, for the appointment of a successor
Collateral Agent, Custodial Agent or Securities Intermediary. The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall each be a bank
or a national banking association which has an office (or an agency office) in
New York City with a combined capital and surplus of at least

 

94

 

$50,000,000. 
Upon the acceptance of any appointment as Collateral Agent, Custodial
Agent or Securities Intermediary hereunder by a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, such successor
Collateral Agent, Custodial Agent or Securities Intermediary, as the case may
be, shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, Custodial Agent or
Securities Intermediary, as the case may be, and the retiring Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, shall take all
appropriate action, subject to payment of any amounts then due and payable to
it hereunder, to transfer any money and property held by it hereunder
(including the Collateral) to such successor. 
The retiring Collateral Agent, Custodial Agent or Securities
Intermediary shall, upon such succession, be discharged from its duties and
obligations as Collateral Agent, Custodial Agent or Securities Intermediary
hereunder. After any retiring Collateral Agent’s, Custodial Agent’s or
Securities Intermediary’s resignation hereunder as Collateral Agent, Custodial
Agent or Securities Intermediary, the provisions of this Article 15 shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as the Collateral Agent, the Custodial
Agent or the Securities Intermediary. 
Any resignation or removal of the Collateral Agent, the Custodial Agent
or the Securities Intermediary hereunder, at a time when such Person is also
acting as the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, shall be deemed for all purposes of this
Agreement as the simultaneous resignation or removal of the Collateral Agent,
the Securities Intermediary or the Custodial Agent, as the case may be.

 

(b)           Because The Bank of New York is serving as the Collateral
Agent hereunder and also as the Purchase Contract Agent hereunder, if an event
of default or a collateral event of default occurs hereunder The Bank of New
York will resign as the Collateral Agent, Custodial Agent and the Securities
Intermediary, but continue to act as the Purchase Contract Agent.  A successor Collateral Agent, Custodial
Agent and Securities Intermediary will be appointed in accordance with the
terms of this Article 15.

 

Section 15.11.  Right to Appoint Agent or Advisor.  The Collateral
Agent shall have the right to appoint agents or advisors in connection with any
of its duties hereunder, and the Collateral Agent shall not be liable for any
action taken or omitted by, or in reliance upon the advice of, such agents or
advisors selected in good faith. The appointment of agents pursuant to this
Section 15.11 shall be subject to prior written consent of the Company, which
consent shall not be unreasonably withheld.

 

Section 15.12.  Survival.  The provisions of this Article 15 shall
survive termination of this Agreement and the resignation or removal of the
Collateral Agent, the Custodial Agent or the Securities Intermediary.

 

Section 15.13.  Exculpation.  Anything contained in this Agreement to the
contrary notwithstanding, in no event shall the Collateral Agent, the Custodial
Agent or the Securities Intermediary or their officers, directors, employees or
agents be liable under this Agreement to any third party for indirect, special,
punitive, or consequential loss or damage of any kind whatsoever, including,
but not limited to, lost profits, whether or not the likelihood of such loss or
damage was known to the Collateral Agent, the Custodial Agent or the Securities
Intermediary, or any of them and regardless of the form of action.

 

95

 

Section 15.14.  Expenses, Etc.  The Company agrees to reimburse the
Collateral Agent, the Custodial Agent and the Securities Intermediary for:

 

(a)           all reasonable costs and expenses of the Collateral Agent,
the Custodial Agent and the Securities Intermediary (including, without
limitation, the reasonable fees and expenses of counsel to the Collateral
Agent, the Custodial Agent and the Securities Intermediary), in connection with
(i) the negotiation, preparation, execution and delivery or performance of this
Agreement and (ii) any modification, supplement or waiver of any of the terms
of this Agreement;

 

(b)           all reasonable costs and expenses of the Collateral Agent,
the Custodial Agent and the Securities Intermediary (including, without
limitation, reasonable fees and expenses of counsel) in connection with (i) any
enforcement or proceedings resulting or incurred in connection with causing any
Holder to satisfy its obligations under the Purchase Contracts forming a part
of the Units and (ii) the enforcement of this Section 15.14;

 

(c)           all transfer, stamp, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any other document referred to herein and all
costs, expenses, taxes, assessments and other charges incurred in connection
with any filing, registration, recording or perfection of any security interest
contemplated hereby;

 

(d)           all reasonable fees and expenses of any agent or advisor
appointed by the Collateral Agent and consented to by the Company under Section
15.11 of this Agreement; and

 

(e)           any other out-of-pocket costs and expenses reasonably
incurred by the Collateral Agent, the Custodial Agent and the Securities
Intermediary in connection with the performance of their duties hereunder.

 

ARTICLE 16

MISCELLANEOUS

 

Section 16.01.  Security Interest Absolute. 
All rights of the
Collateral Agent and security interests hereunder, and all obligations of the
Holders from time to time hereunder pursuant to the Pledge, shall be absolute
and unconditional irrespective of:

 

(a)           any lack of validity or enforceability of any provision of
the Purchase Contracts or the Units or any other agreement or instrument
relating thereto;

 

(b)           any change in the time, manner or place of payment of, or
any other term of, or any increase in the amount of, all or any of the
obligations of Holders of the Units under the related Purchase Contracts, or
any other amendment or waiver of any term of, or any consent to any departure
from any requirement of, the Purchase Contract Agreement or any Purchase
Contract or any other agreement or instrument relating thereto; or

 

96

 

(c)           any other circumstance which might otherwise constitute a
defense available to, or discharge of, a borrower, a guarantor or a pledgor.

 

Section 16.02.  Notice of Special Event, Special Event Redemption and Termination
Event.  Upon the occurrence of a Special Event, a
Special Event Redemption or a Termination Event, the Company shall deliver
written notice to the Purchase Contract Agent, the Collateral Agent and the
Securities Intermediary.  Upon the
written request of the Collateral Agent or the Securities Intermediary, the
Company shall inform such party whether or not a Special Event, a Special Event
Redemption or a Termination Event has occurred.

 

[SIGNATURES
ON THE FOLLOWING PAGE]

 

97

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the day and
year first above written.

 

	
  GENWORTH FINANCIAL, INC.

  	
  THE BANK OF NEW YORK,

  as Purchase Contract Agent and as attorney-in-fact of the Holders from time
  to time of the Units

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Address for Notices:

  	
  Address for Notices:

  
	
   

  	
   

  
	
  Genworth Financial, Inc.

  6620 West Broad Street

  Richmond, Virginia 23230

  Telecopier No.: [•]

  Attention: [•]

  	
  The Bank of New York

  101 Barclay Street, 8W

  New York, NY 10286

  Telecopier No.: [•]

  Attention: [•]

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK

  as Collateral Agent, Custodial Agent and Securities Intermediary

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Address for Notices:

  	
   

  
	
   

  	
   

  
	
  The Bank of New York

  101 Barclay Street, 8W

  New York, NY 10286

  Telecopier No.: [•]

  Attention: [•]

  	
   

  

 

 

EXHIBIT A

 

(FORM OF FACE OF CORPORATE UNIT CERTIFICATE)

 

[For inclusion in Global
Certificates only - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING
OF THE PURCHASE CONTRACT AND PLEDGE AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”),
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.  THIS CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AND PLEDGE AGREEMENT
AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.]

 

	
  No. 1

  	
   

  	
  CUSIP No.  [•]

  
	
  Number of Corporate Units:
  24,000,000

  	
   

  	
   

  

 

GENWORTH
FINANCIAL, INC.

Corporate Units

 

This Corporate Units
Certificate certifies that
           is the
registered Holder of the number of Corporate Units set forth above [For
inclusion in Global Certificates only - or such other number of Corporate Units
reflected in the Schedule of Increases or Decreases in Global Certificate
attached hereto, which number shall not exceed 24,000,000]. Each Corporate Unit
consists of (i) either (a) an Applicable Ownership Interest in Senior Notes,
subject to the Pledge thereof by such Holder pursuant to the Purchase Contract
and Pledge Agreement, or (b) upon the occurrence of a Special Event Redemption
prior to the Purchase Contract Settlement Date, the Applicable Ownership
Interest in the Treasury Portfolio, subject to the pledge of the Applicable
Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the
definition of such term) by such Holder pursuant to the Purchase Contract and
Pledge Agreement, and (ii) the rights and obligations of the Holder under one
Purchase Contract with the Company.

 

A-1

 

All capitalized terms used
herein that are defined in the Purchase Contract and Pledge Agreement (as
defined on the reverse hereof) have the meaning set forth therein.

 

Pursuant to the Purchase
Contract and Pledge Agreement, the Applicable Ownership Interest in Senior
Notes or the Applicable Ownership Interest in the Treasury Portfolio (as
specified in clause (i) of the definition of such term), as the case may be,
constituting part of each Corporate Unit evidenced hereby have been pledged to
the Collateral Agent, for the benefit of the Company, to secure the obligations
of the Holder under the Purchase Contract comprising part of such Corporate
Unit.

 

All payments of the
principal amount with respect to the Senior Notes underlying the Pledged
Applicable Ownership Interests in Senior Notes or all payments with respect to
the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term), as the case may be, or payments of
interest on the Pledged Applicable Ownership Interests in Senior Notes or
distributions with respect to the Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (ii) of the definition of such
term), as the case may be, constituting part of the Corporate Units shall be
paid on the dates and in the manner set forth in the Purchase Contract and
Pledge Agreement.  Interest on the
Senior Notes underlying the Applicable Ownership Interests in Senior Notes and
distributions on the Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (ii) of the definition of such term), as the case may
be, forming part of the Corporate Units evidenced hereby, which are payable on
each Payment Date, shall, subject to receipt thereof by the Purchase Contract
Agent, be paid to the Person in whose name this Corporate Units Certificate (or
a Predecessor Corporate Units Certificate) is registered at the close of
business on the Record Date for such Payment Date.

 

All Contract Adjustment
Payments shall be paid on the dates and in the manner set forth in the Purchase
Contract and Pledge Agreement.  Such
Contract Adjustment Payments shall be payable to the Person in whose name this
Corporate Units Certificate is registered at the close of business on the
Record Date for such Payment Date.

 

Each Purchase Contract
evidenced hereby obligates the Holder of this Corporate Units Certificate to
purchase, and the Company to sell, on the Purchase Contract Settlement Date, at
a Purchase Price equal to the Stated Amount, a number of newly issued shares of
Common Stock of the Company, equal to the Settlement Rate, unless on or prior
to the Purchase Contract Settlement Date there shall have occurred a
Termination Event, an Early Settlement or a Cash Merger Early Settlement with
respect to such Purchase Contract, all as provided in the Purchase Contract and
Pledge Agreement.  The Purchase Price
for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract
Settlement Date by application of payment received in the Remarketing of the
Senior Notes underlying the Pledged Applicable Ownership Interests in Senior
Notes equal to the principal amount thereof or the proceeds of the Pledged
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term), as the case may be, pledged to
secure the obligations under such Purchase Contract of the Holder of the
Corporate Units of which such Purchase Contract is a part.

 

A-2

 

The Company shall pay, on
February 16, May 16, August 16 and November 16 of each year (each, a “Payment Date”), in respect of each Purchase
Contract forming part of a Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to%
per year of the Stated Amount for the period from and including the immediately
preceding Payment Date on which Contract Adjustment Payments were paid (or if
none, the Special Payment Date) to but excluding such Payment Date.  Such Contract Adjustment Payments shall be
payable to the Person in whose name this Corporate Units Certificate is
registered at the close of business on the Record Date for such Payment Date.  In addition, the Company shall pay on May
[    ], 2004 (the “Special
Payment Date”), the Contract Adjusted Payments accrued from and
including May [•],
2004 to but excluding the Special Payment Date to the Person in whose name a
Certificate is registered at the close of business on the Business Day
immediately preceding the Special Payment Date.  The Contract Adjustment Payments payable on the Special Payment
Date shall be paid by wire transfer to the account designated by the Person
entitled to receive such payment by prior notice to the Company and the
Purchase Contract Agent.

 

Distributions on the
Applicable Ownership Interests in Senior Notes and distributions on the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (ii) of the definition of such term) and the Contract Adjustment Payments
will be payable at the office of the Purchase Contract Agent in New York City,
except that all payments with respect to Global Certificates will be made by
wire transfer of immediately available funds to the Depositary. If the
book-entry system for the Corporate Units has been terminated, the Contract
Adjustment Payments will be payable, at the option of the Company, by check
mailed to the address of the Person entitled thereto at such Person’s address
as it appears on the Security Register, or by wire transfer to the account
designated by such Person by prior written notice to the Purchase Contract
Agent.

 

Each Purchase Contract
evidenced hereby obligates the holder to agree, for United States federal,
state and local income and franchise tax purposes, to (i) treat its acquisition
of the Corporate Units as an acquisition of the Applicable Ownership Interest
in Senior Notes and Purchase Contract constituting each Corporate Unit, (ii)
treat the Applicable Ownership Interest in Senior Notes as indebtedness of the
Company and (iii) treat itself as the owner of the applicable interests in the
Collateral Account, including the Senior Notes underlying the Applicable
Ownership Interests in the Senior Notes or the Applicable Ownership Interests
in the Treasury Portfolio (as specified in clause (i) of the definition of such
term).

 

Reference is hereby made to
the further provisions set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this
place.

 

Unless the certificate of
authentication hereon has been executed by the Purchase Contract Agent by
manual signature, this Corporate Units Certificate shall not be entitled to any
benefit under the Purchase Contract and Pledge Agreement or be valid or obligatory
for any purpose.

 

A-3

 

IN WITNESS WHEREOF, the
Company and the Holder specified above have caused this instrument to be duly
executed.

 

	
   

  	
  GENWORTH FINANCIAL, INC.

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  HOLDER SPECIFIED ABOVE (as
  to obligations of such Holder under the Purchase Contracts)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK, not
  individually but solely as attorney-in-fact of such Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATED:

  	
   

  	
   

  	
   

  	
   

  
									

 

 

CERTIFICATE
OF AUTHENTICATION

OF PURCHASE CONTRACT AGENT

 

This is one of the Corporate
Units Certificates referred to in the within mentioned Purchase Contract and
Pledge Agreement.

 

	
   

  	
  By:

  	
  THE BANK OF NEW YORK,

  as Purchase Contract Agent

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  DATED:

  	
   

  	
   

  	
   

  	
   

  
								

 

A-4

 

(REVERSE
OF CORPORATE UNIT CERTIFICATE)

 

Each Purchase Contract
evidenced hereby is governed by a Purchase Contract and Pledge Agreement, dated
as of May [•], 2004 (as may
be supplemented from time to time, the “Purchase
Contract and Pledge Agreement”), between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder, the
“Purchase Contract Agent”) and The
Bank of New York, as Collateral Agent, Custodial Agent and Securities
Intermediary, to which Purchase Contract and Pledge Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Purchase Contract Agent, the Company, and the Holders and of the terms upon
which the Corporate Units Certificates are, and are to be, executed and
delivered.

 

Each Purchase Contract
evidenced hereby obligates the Holder of this Corporate Units Certificate to
purchase, and the Company to sell, on the Purchase Contract Settlement Date at
a price equal to the Stated Amount, a number of shares of Common Stock equal to
the Settlement Rate, unless an Early Settlement, a Cash Merger Early Settlement
or a Termination Event with respect to the Units of which such Purchase
Contract is a part shall have occurred. 
The Settlement Rate is subject to adjustment as described in the
Purchase Contract and Pledge Agreement.

 

No fractional shares of
Common Stock will be issued upon settlement of Purchase Contracts, as provided
in Section 5.08 of the Purchase Contract and Pledge Agreement.

 

Each Purchase Contract
evidenced hereby that is settled through Early Settlement or Cash Merger Early
Settlement shall obligate the Holder of the related Corporate Units to purchase
at the Purchase Price, and the Company to sell, a number of newly issued shares
of Common Stock equal to the Minimum Settlement Rate (in the case of an Early
Settlement) or applicable Settlement Rate (in the case of a Cash Merger Early
Settlement).

 

In accordance with the terms
of the Purchase Contract and Pledge Agreement, unless a Termination Event shall
have occurred, the Holder of this Corporate Units Certificate shall pay the
Purchase Price for the shares of Common Stock purchased pursuant to each
Purchase Contract evidenced hereby by effecting a Cash Settlement, an Early
Settlement or, if applicable, a Cash Merger Early Settlement or from the
proceeds of the Applicable Ownership Interests in the Treasury Portfolio (as
specified in clause (i) of the definition of such term) or a Remarketing of the
Senior Notes underlying the Pledged Applicable Ownership Interests in Senior
Notes. Unless Applicable Ownership Interests in the Treasury Portfolio have
replaced Applicable Ownership Interests in Senior Notes as a component of
Corporate Units, a Holder of Corporate Units who (1) does not, on or prior to
5:00 p.m. (New York City time) on the sixth Business Day immediately preceding
the Purchase Contract Settlement Date make an effective Cash Settlement in the
manner provided in the Purchase Contract and Pledge Agreement or (2) on or
prior to 5:00 p.m. (New York City time) on the seventh Business Day immediately
preceding the Purchase Contract Settlement Date (in the case of Corporate
Units, unless a Special Event Redemption has occurred) or the second Business
Day immediately preceding the Purchase Contract Settlement Date (in the case of
Corporate Units after the occurrence of a Special Event

 

A-5

 

Redemption), does not make an effective Early
Settlement, shall pay the Purchase Price for the shares of Common Stock to be
delivered under the related Purchase Contract from the proceeds of the sale of the
Senior Notes underlying the Pledged Applicable Ownership Interests in Senior
Notes held by the Collateral Agent in the Remarketing unless the Holder has
previously made a Cash Merger Early Settlement.  If the Treasury Portfolio has replaced the Senior Notes as a
component of Corporate Units, a Holder of Corporate Units shall pay the
Purchase Price for the shares of Common Stock to be delivered under the related
Purchase Contract from the proceeds at maturity of the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term.

 

As provided in the Purchase
Contract and Pledge Agreement, upon the occurrence of a Failed Final
Remarketing, as of the Purchase Contract Settlement Date, each Holder of any Pledged
Applicable Interests in Senior Notes, unless such Holder has elected Cash
Settlement and delivered cash in accordance with Section 5.02(a) of the
Purchase Contract and Pledge Agreement, shall be deemed to have exercised such
Holder’s Put Right with respect to the Senior Notes underlying such Applicable
Ownership Interests in Senior Notes and to have elected to have a portion of
the Proceeds of the Put Right set-off against such Holder’s obligation to pay
the aggregate Purchase Price for the shares of Common Stock to be issued under
the related Purchase Contracts in full satisfaction of such Holders’
obligations under such Purchase Contracts, and any accrued and unpaid interest
on the Senior Notes attributable to such Pledged Applicable Ownership Interests
in Senior Notes will become payable by the Company to the Holder of this
Corporate Units Certificate in the manner provided for in the Purchase Contract
and Pledge Agreement.

 

The Company shall not be
obligated to issue any shares of Common Stock in respect of a Purchase Contract
or deliver any certificates therefor to the Holder unless it shall have
received payment of the aggregate Purchase Price for the shares of Common Stock
to be purchased thereunder in the manner set forth in the Purchase Contract and
Pledge Agreement.

 

Each Purchase Contract
evidenced hereby and all obligations and rights of the Company and the Holder
thereunder shall terminate if a Termination Event shall occur.  Upon the occurrence of a Termination Event,
the Company shall give written notice to the Purchase Contract Agent and to the
Holders, at their addresses as they appear in the Security Register.  Upon and after the occurrence of a
Termination Event, the Collateral Agent shall release the Senior Notes
underlying the Pledged Applicable Ownership Interests in Senior Notes or the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) forming a part of each Corporate
Unit from the Pledge.  A Corporate Unit
shall thereafter represent the right to receive the Senior Note underlying the
Applicable Ownership Interest in the Senior Notes or the Applicable Ownership
Interests in the Treasury Portfolio forming a part of such Corporate Units in
accordance with the terms of the Purchase Contract and Pledge Agreement.

 

Under the terms of the
Purchase Contract and Pledge Agreement, the Purchase Contract Agent will be
entitled to exercise the voting and any other consensual rights pertaining to
the Senior Notes underlying the Pledged Applicable Ownership Interests in
Senior Notes, but only to the extent instructed in writing by the Holders.  Upon receipt of notice of any meeting at
which holders of Senior Notes are entitled to vote or upon any solicitation of
consents, waivers or

 

A-6

 

proxies of holders of Senior Notes, the
Purchase Contract Agent shall, as soon as practicable thereafter, mail, first
class, postage pre-paid, to the Corporate Units Holders the notice required by
the Purchase Contract and Pledge Agreement.

 

Upon the occurrence of a
Special Event Redemption, the Collateral Agent shall surrender the Senior Notes
underlying the Pledged Applicable Ownership Interests in Senior Notes against
delivery of an amount equal to the aggregate Redemption Price of such Senior
Notes and shall deposit the funds in the Collateral Account in exchange for
such Senior Notes.  Thereafter, the
Collateral Agent shall cause the Securities Intermediary to apply an amount
equal to the aggregate Redemption Amount of such funds to purchase, on behalf
of the Holders of Corporate Units, the Treasury Portfolio.

 

Following the occurrence of
a Special Event Redemption prior to the Purchase Contract Settlement Date, the
Collateral Agent shall have such security interest rights with respect to the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) as the Collateral Agent had in
respect of Applicable Ownership Interests in Senior Notes and the underlying
Senior Notes, as provided in the Purchase Contract and Pledge Agreement and any
reference herein to the Senior Notes or Applicable Ownership Interests in
Senior Notes shall be deemed to be a reference to the Treasury Portfolio or the
Applicable Ownership Interests in the Treasury Portfolio, as the case may be.

 

The Corporate Units
Certificates are issuable only in registered form and only in denominations of
a single Corporate Unit and any integral multiple thereof.  The transfer of any Corporate Units
Certificate will be registered and Corporate Units Certificates may be
exchanged as provided in the Purchase Contract and Pledge Agreement.  A Holder who elects to substitute a Treasury
Security for the Senior Note underlying the Applicable Ownership Interests in
Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, as
the case may be, thereby creating Treasury Units, shall be responsible for any
fees or expenses payable in connection therewith. Except as provided in the
Purchase Contract and Pledge Agreement, such Corporate Unit shall not be
separable into its constituent parts, and the rights and obligations of the
Holder of such Corporate Unit in respect of the Applicable Ownership Interest
in Senior Notes, or Applicable Ownership Interest in the Treasury Portfolio, as
the case may be, and Purchase Contract constituting such Corporate Units may be
transferred and exchanged only as a Corporate Unit.

 

Subject to, and in
compliance with, the conditions and terms set forth in the Purchase Contract
and Pledge Agreement, the Holder of Corporate Units may effect a Collateral
Substitution.  From and after such
Collateral Substitution, each Unit for which Pledged Treasury Securities secure
the Holder’s obligation under the Purchase Contract shall be referred to as a
“Treasury Unit”.  A Holder may make such
Collateral Substitution only in integral multiples of 40 Corporate Units for 40
Treasury Units.  If Applicable Ownership
Interests in the Treasury Portfolio have replaced the Applicable Ownership
Interests in Senior Notes as a component of the Corporate Units, a Holder may
substitute Treasury Securities for the Applicable Ownership Interests in the
Treasury Portfolio only in integral multiples of [•] Corporate Units.

 

Subject to and upon compliance
with the provisions of the Purchase Contract and Pledge Agreement, at the
option of the Holder thereof, Purchase Contracts underlying Units may be

 

A-7

 

settled early by effecting an Early Settlement
as provided in the Purchase Contract and Pledge Agreement in integral multiples
of 40 Corporate Units, or if Applicable Ownership Interests in the Treasury
Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a
component of the Corporate Units, in integral multiples of [•] Corporate Units.

 

Upon Early Settlement of
Purchase Contracts by a Holder of the related Units, the Senior Notes
underlying the Pledged Applicable Ownership Interests in Senior Notes or the
Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) underlying such Units shall be
released from the Pledge as provided in the Purchase Contract and Pledge
Agreement and the Holder shall be entitled to receive a number of shares of
Common Stock on account of each Purchase Contract forming part of a Corporate
Unit as to which Early Settlement is effected equal to the Minimum Settlement
Rate.

 

Upon the occurrence of a
Cash Merger, a Holder of Corporate Units may effect Cash Merger Early
Settlement of the Purchase Contracts underlying such Corporate Units pursuant
to the terms of the Purchase Contract and Pledge Agreement in integral
multiples of 40 Corporate Units, or if the Applicable Ownership Interests in
the Treasury Portfolio have replaced the Applicable Ownership Interests in
Senior Notes as a component of the Corporate Units, in integral multiples of [•] Corporate Units.  Upon Cash Merger Early Settlement of Purchase Contracts by a
Holder of the related Corporate Units, the Senior Notes underlying the Pledged
Applicable Ownership Interests in Senior Notes or the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term) underlying such Corporate Units shall be released from
the Pledge as provided in the Purchase Contract and Pledge Agreement and the
Holder shall be entitled to receive a number of shares of Common Stock on
account of each Purchase Contract forming part of a Corporate Unit as to which
Cash Merger Early Settlement is effected equal to the applicable Settlement
Rate.

 

Upon registration of
transfer of this Corporate Units Certificate, the transferee shall be bound
(without the necessity of any other action on the part of such transferee,
except as may be required by the Purchase Contract Agent pursuant to the
Purchase Contract and Pledge Agreement), under the terms of the Purchase
Contract and Pledge Agreement and the Purchase Contracts evidenced hereby and
the transferor shall be released from the obligations under the Purchase
Contracts evidenced by this Corporate Units Certificate.  The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

 

The Holder of this Corporate
Units Certificate, by its acceptance hereof, authorizes the Purchase Contract
Agent to enter into and perform the related Purchase Contracts forming part of
the Corporate Units evidenced hereby on its behalf as its attorney-in-fact, expressly
withholds any consent to the assumption (i.e., affirmance) of the Purchase
Contracts by the Company or its trustee in the event that the Company becomes
the subject of a case under the Bankruptcy Code, agrees to be bound by the
terms and provisions thereof, covenants and agrees to perform its obligations
under such Purchase Contracts, consents to the provisions of the Purchase
Contract and Pledge Agreement, authorizes the Purchase Contract Agent to enter
into and perform the Purchase Contract and Pledge Agreement on its behalf as
its attorney-in-fact, and consents to the Pledge of the Applicable Ownership
Interests in Senior Notes and the underlying Senior Notes or the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of
the

 

A-8

 

definition of such term), as the case may be,
underlying this Corporate Units Certificate pursuant to the Purchase Contract
and Pledge Agreement.  The Holder
further covenants and agrees that, to the extent and in the manner provided in
the Purchase Contract and Pledge Agreement, but subject to the terms thereof,
any payments with respect the Senior Notes underlying the Pledged Applicable
Ownership Interests in Senior Notes (other than interest payments thereon) or
the Proceeds of the Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (i) of the definition of such term), as the case may
be, on the Purchase Contract Settlement Date equal to the aggregate Purchase Price
for the related Purchase Contracts shall be paid by the Collateral Agent to the
Company in satisfaction of such Holder’s obligations under the related Purchase
Contracts and such Holder shall acquire no right, title or interest in such
payments.

 

Subject to certain
exceptions, the provisions of the Purchase Contract and Pledge Agreement may be
amended with the consent of the Holders of a majority of the Purchase
Contracts.

 

The Purchase Contracts shall
be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to the conflicts of law provisions thereof to the
extent a different law would govern as a result.

 

The Purchase Contracts shall
not, prior to the settlement thereof, entitle the Holder to any of the rights
of a holder of shares of Common Stock.

 

Prior to due presentment of
this Certificate for registration of transfer, the Company, the Purchase
Contract Agent and its Affiliates and any agent of the Company or the Purchase
Contract Agent may treat the Person in whose name this Corporate Units
Certificate is registered as the owner of the Corporate Units evidenced hereby
for the purpose of receiving payments of interest payable on the Senior Notes
underlying the Applicable Ownership Interests in Senior Notes and payments of
Contract Adjustment Payments (subject to any applicable record date),
performance of the Purchase Contracts and for all other purposes whatsoever,
whatever or not any payments in respect thereof be overdue and notwithstanding
any notice to the contrary, and neither the Company, the Purchase Contract
Agent nor any such agent shall be affected by notice to the contrary.

 

A copy of the Purchase
Contract and Pledge Agreement is available for inspection at the offices of the
Purchase Contract Agent.

 

A-9

 

ABBREVIATIONS

 

The following abbreviations,
when used in the inscription on the face of this instrument, shall be construed
as though they were written out in full according to applicable laws or
regulations:

 

TEN COM:            as tenants in common

 

	
  UNIF GIFT MIN ACT:

  	
   

  	
  Custodian

  	
   

  
	
  (cust)

  	
  (minor)

  	
   

  	
   

  

 

Under Uniform Gifts to
Minors Act of

TENANT:                                          as tenants by the entireties

 

JT
TEN:                                                     as joint tenants with right of survivorship
and not as tenants in common

Additional abbreviations may
also be used though not in the above list.

 

	
  FOR VALUE RECEIVED, the
  undersigned hereby sell(s), assign(s) and transfer(s) unto

  
	
   

  
	
  (Please insert Social
  Security or Taxpayer I.D. or other Identifying Number of Assignee)

  
	
   

  
	
   

  
	
  (Please Print or Type Name
  and Address Including Postal Zip Code of Assignee)

  

 

the within Corporate Units
Certificates and all rights thereunder, hereby irrevocably constituting and
appointing attorney
                   ,
to transfer said Corporate Units Certificates on the books of Genworth
Financial, Inc., with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE: The signature to
  this assignment must correspond with the name as it appears upon the face of
  the within Corporate Units Certificates in every particular,  without alteration or enlargement or any
  change whatsoever.

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
								

 

A-10

 

SETTLEMENT
INSTRUCTIONS

 

The undersigned Holder
directs that a certificate for shares of Common Stock deliverable upon
settlement on or after the Purchase Contract Settlement Date of the Purchase
Contracts underlying the number of Corporate Units evidenced by this Corporate
Units Certificate be registered in the name of, and delivered, together with a
check in payment for any fractional share, to the undersigned at the address
indicated below unless a different name and address have been indicated
below.  If shares are to be registered in
the name of a Person other than the undersigned, the undersigned will pay any
transfer tax payable incident thereto.

 

	
  Dated:

  	
   

  	
  (if assigned to another
  person)

  

 

 

	
   

  	
   

  	
  REGISTERED HOLDER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If shares are to be
  registered in the name of and delivered to a Person other than the Holder,
  please (i) print such Person’s name and address and (ii) provide a guarantee
  of your signature:

  	
   

  	
  Please print name and
  address of Registered Holder:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Social Security or other

  Taxpayer Identification

  Number, if any

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  	
   

  
					

 

A-11

 

ELECTION
TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT

 

The undersigned Holder of
this Corporate Units Certificate hereby irrevocably exercises the option to
effect [Early Settlement] [Cash Merger Early Settlement] in accordance with the
terms of the Purchase Contract and Pledge Agreement with respect to the
Purchase Contracts underlying the number of Corporate Units evidenced by this
Corporate Units Certificate specified below. 
The option to effect [Early Settlement] [Cash Merger Early Settlement]
may be exercised only with respect to Purchase Contracts underlying Corporate
Units in multiples of 40 Corporate Units or an integral multiple thereof; provided that if Applicable Ownership
Interests in the Treasury Portfolio have replaced Applicable Ownership
Interests in the Senior Notes as a component of the Corporate Units, Corporate
Units Holders may only effect [Early Settlement] [Cash Merger Early Settlement]
in multiples of [•]
Corporate Units.  The undersigned Holder
directs that a certificate for shares of Common Stock or other securities
deliverable upon such [Early Settlement] [Cash Merger Early Settlement] be
registered in the name of, and delivered, together with a check in payment for
any fractional share and any Corporate Units Certificate representing any
Corporate Units evidenced hereby as to which [Early Settlement] [Cash Merger
Early Settlement] of the related Purchase Contracts is not effected, to the
undersigned at the address indicated below unless a different name and address
have been indicated below.  Senior Notes
underlying Pledged Applicable Ownership Interests in Senior Notes or the
Applicable Ownership Interests in the Treasury Portfolio, as the case may be,
deliverable upon such [Early Settlement] [Cash Merger Early Settlement] will be
transferred in accordance with the transfer instructions set forth below.  If shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer
tax payable incident thereto.

 

	
  Dated:

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
								

 

A-12

 

Number of Units evidenced
hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected:

 

 

 

 

	
  If shares of Common Stock
  or Corporate Units Certificates are to be registered in the name of and
  delivered to and Senior Notes underlying Pledged Applicable Ownership
  Interests in Senior Notes or the Applicable Ownership Interests in the
  Treasury Portfolio, as the case may be, are to be transferred to a Person
  other than the Holder, please print such Person’s name and address:

  	
   

  	
  REGISTERED HOLDER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Please print name and
  address of Registered Holder:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Social Security or other

  Taxpayer Identification

  

  Number, if any

  	
   

  	
   

  	
   

  

 

A-13

 

Transfer Instructions for
Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes
or the Applicable Ownership Interests in the Treasury Portfolio, as the case
may be, transferable upon [Early Settlement] [Cash Merger Early Settlement]:

 

 

A-14

 

[TO
BE ATTACHED TO GLOBAL CERTIFICATES]

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

 

The initial number of Corporate
Units evidenced by this Global Certificate is 24,000,000.  The following increases or decreases in this
Global Certificate have been made:

 

 

	
  Date

  	
   

  	
  Amount of
  increase

  in number of

  Corporate Units

  evidenced by the

  Global Certificate

  	
   

  	
  Amount of
  decrease

  in number of

  Corporate Units

  evidenced by the

  Global Certificate

  	
   

  	
  Number of
  Corporate

  Units evidenced by

  this Global

  Certificate following

  such decrease or

  increase

  	
   

  	
  Signature
  of

  authorized signatory

  of Purchase Contract

  Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-15

 

EXHIBIT B

 

(FORM OF FACE OF TREASURY UNIT CERTIFICATE)

 

[For inclusion in Global
Certificate only - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING
OF THE PURCHASE CONTRACT AND PLEDGE AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”),
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.  THIS CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AND PLEDGE AGREEMENT
AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.]

 

	
  No. 1

  	
   

  	
  CUSIP No.  [•]

  
	
  Number of Treasury Units:
  0

  	
   

  	
   

  

 

GENWORTH
FINANCIAL, INC.

Treasury
Units

 

This Treasury Units
Certificate certifies that
[            ] is
the registered Holder of the number of Treasury Units set forth above [For
inclusion in Global Certificates only - or such other number of Treasury Units
reflected in the Schedule of Increases or Decreases in Global Certificate
attached hereto, which number shall not exceed 24,000,000].  Each Treasury Unit consists of (i) a 1/40
undivided beneficial ownership interest in a Treasury Security having a
principal amount at maturity equal to $1,000, subject to the Pledge of such
Treasury Security by such Holder pursuant to the Purchase Contract and Pledge
Agreement, and (ii) the rights and obligations of the Holder under one Purchase
Contract with the Company.

 

All capitalized terms used
herein that are defined in the Purchase Contract and Pledge Agreement (as
defined on the reverse hereof) have the meaning set forth therein.

 

B-1

 

Pursuant to the Purchase
Contract and Pledge Agreement, the Treasury Securities underlying each Treasury
Unit evidenced hereby have been pledged to the Collateral Agent, for the
benefit of the Company, to secure the obligations of the Holder under the
Purchase Contract comprising part of such Treasury Unit.

 

All Contract Adjustment
Payments shall be paid on the dates and in the manner set forth in the Purchase
Contract and Pledge Agreement.  Such
Contract Adjustment Payments shall be payable to the Person in whose name this
Treasury Units Certificate is registered at the close of business on the Record
Date for such Payment Date.

 

Each Purchase Contract
evidenced hereby obligates the Holder of this Treasury Units Certificate to
purchase, and the Company to sell, on the Purchase Contract Settlement Date, at
a Purchase Price equal to the Stated Amount, a number of newly issued shares of
Common Stock of the Company, equal to the Settlement Rate, unless prior to or
on the Purchase Contract Settlement Date there shall have occurred a
Termination Event, an Early Settlement or a Cash Merger Early Settlement with
respect to such Purchase Contract, all as provided in the Purchase Contract and
Pledge Agreement.  The Purchase Price
for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract
Settlement Date by application of the proceeds from the Treasury Securities at
maturity pledged to secure the obligations under such Purchase Contract of the
Holder of the Treasury Units of which such Purchase Contract is a part.

 

The Company shall pay, on
each Payment Date, in respect of each Purchase Contract forming part of a
Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to% per year of the
Stated Amount.  Such Contract Adjustment
Payments shall be payable to the Person in whose name this Treasury Units
Certificate is registered at the close of business on the Record Date for such
Payment Date.  In addition, the Company
shall pay on May [   ], 2004 (the “Special Payment Date”), the Contract
Adjusted Payments accrued to but excluding the Special Payment Date to the
Person in whose name a Certificate is registered at the close of business on
the Business Day immediately preceding the Special Payment Date.  The Contract Adjustment Payments payable on
the Special Payment Date shall be paid by wire transfer to the account
designated by the Person entitled to receive such payment by prior notice to
the Company and the Purchase Contract Agent.

 

Contract Adjustment Payments
will be payable at the office of the Purchase Contract Agent in New York City,
except that Contract Adjustment Payments with respect to Global Certificates
will be made by wire transfer of immediately available funds to the
Depositary.  If the book-entry system
for the Corporate Units has been terminated, the Contract Adjustment Payments will
be payable, at the option of the Company, by check mailed to the address of the
Person entitled thereto at such Person’s address as it appears on the Security
Register, or by wire transfer to the account designated by such Person by prior
written notice to the Purchase Contract Agent.

 

Each Purchase Contract
evidenced hereby obligates the holder to agree, for United States federal,
state and local income and franchise tax purposes, to (i) treat its acquisition
of the Treasury Units as an acquisition of the Treasury Security and Purchase
Contracts constituting the

 

B-2

 

Treasury Units and (ii) treat itself as the
owner of the applicable interest in the Treasury Securities.

 

Reference is hereby made to
the further provisions set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this
place.

 

Unless the certificate of
authentication hereon has been executed by the Purchase Contract Agent by
manual signature, this Treasury Units Certificate shall not be entitled to any
benefit under Purchase Contract and Pledge Agreement or be valid or obligatory
for any purpose.

 

B-3

 

IN WITNESS WHEREOF, the
Company and the Holder specified above have caused this instrument to be duly
executed.

 

	
   

  	
  GENWORTH FINANCIAL, INC.

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  HOLDER SPECIFIED ABOVE (as
  to obligations of such Holder under the Purchase Contracts)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  THE BANK OF NEW YORK, not
  individually but solely as attorney-in-fact or such Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATED:

  	
   

  	
   

  	
   

  	
   

  
									

 

 

CERTIFICATE
OF AUTHENTICATION

OF PURCHASE CONTRACT AGENT

 

This is one of the Treasury
Units referred to in the within mentioned Purchase Contract and Pledge
Agreement.

 

	
   

  	
  GENWORTH FINANCIAL, INC.

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  THE BANK OF NEW YORK,

  as Purchase Contract Agent

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  	 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
								

 

B-4

 

 

(REVERSE
OF TREASURY UNIT CERTIFICATE)

 

Each Purchase Contract
evidenced hereby is governed by a Purchase Contract and Pledge Agreement, dated
as of May [•], 2004 (as may
be supplemented from time to time, the “Purchase
Contract and Pledge Agreement”) between the Company and The Bank of
New York, as Purchase Contract Agent (including its successors thereunder,
herein called the “Purchase Contract Agent”)
and The Bank of New York, as Collateral Agent, Custodial Agent and Securities
Intermediary, to which Purchase Contract and Pledge Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the Purchase Contract Agent, the Company and the Holders and of the terms upon
which the Treasury Units Certificates are, and are to be, executed and
delivered.

 

Each Purchase Contract
evidenced hereby obligates the Holder of this Treasury Units Certificate to
purchase, and the Company to sell, on the Purchase Contract Settlement Date at
a price equal to the Stated Amount, a number of newly issued shares of Common
Stock equal to the Settlement Rate, unless an Early Settlement, a Cash Merger
Early Settlement or a Termination Event with respect to the Unit of which such
Purchase Contract is a part shall have occurred. The Settlement Rate is subject
to adjustment as described in the Purchase Contract and Pledge Agreement.

 

No fractional shares of
Common Stock will be issued upon settlement of Purchase Contracts, as provided
in Section 5.08 of the Purchase Contract and Pledge Agreement.

 

Each Purchase Contract
evidenced hereby that is settled through Early Settlement or Cash Merger Early
Settlement shall obligate the Holder of the related Treasury Units to purchase
at the Purchase Price and the Company to sell, a number of newly issued shares
of Common Stock equal to the Minimum Settlement Rate (in the case of an Early
Settlement) or applicable Settlement Rate (in the case of a Cash Merger Early
Settlement).

 

In accordance with the terms
of the Purchase Contract and Pledge Agreement, the Holder of this Treasury Unit
shall pay the Purchase Price for the shares of the Common Stock to be purchased
pursuant to each Purchase Contract evidenced hereby either by effecting an
Early Settlement or, if applicable, a Cash Merger Early Settlement of each such
Purchase Contract or by applying the proceeds of the Pledged Treasury
Securities underlying such Holder’s Treasury Unit equal to the Purchase Price
for such Purchase Contract to the purchase of the Common Stock.

 

The Company shall not be
obligated to issue any shares of Common Stock in respect of a Purchase Contract
or deliver any certificates therefor to the Holder unless it shall have
received payment of the aggregate Purchase Price for the shares of Common Stock
to be purchased thereunder in the manner set forth in the Purchase Contract and
Pledge Agreement.

 

Each Purchase Contract
evidenced hereby and all obligations and rights of the Company and the Holder
thereunder, shall terminate if a Termination Event shall occur.  Upon the occurrence of a Termination Event,
the Company shall give written notice to the Purchase Contract Agent and the
Holders, at their addresses as they appear in the Security Register.  Upon

 

B-5

 

and after the occurrence of a Termination
Event, the Collateral Agent shall release the Treasury Securities underlying
each Treasury Unit from the Pledge.  A
Treasury Unit shall thereafter represent the right to receive the Treasury
Security underlying such Treasury Unit, in accordance with the terms of the
Purchase Contract and Pledge Agreement.

 

The Treasury Units
Certificates are issuable only in registered form and only in denominations of
a single Treasury Unit and any integral multiple thereof.  The transfer of any Treasury Units
Certificate will be registered and Treasury Units Certificates may be exchanged
as provided in the Purchase Contract and Pledge Agreement.  A Holder who elects to substitute Senior
Notes or Applicable Ownership Interests in the Treasury Portfolio, as the case
may be, for Treasury Securities, thereby recreating Corporate Units, shall be
responsible for any fees or expenses payable in connection therewith. Except as
provided in the Purchase Contract and Pledge Agreement, such Treasury Unit
shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Treasury Unit in respect of the Treasury
Security and the Purchase Contract constituting such Treasury Unit may be
transferred and exchanged only as a Treasury Unit.

 

Subject to, and in
compliance with, the conditions and terms set forth in the Purchase Contract
and Pledge Agreement, the Holder of Treasury Units may effect a Collateral
Substitution. From and after such substitution, each Unit for which Pledged
Applicable Ownership Interests in Senior Notes, or Pledged Applicable Ownership
Interests in the Treasury Portfolio, as the case may be, secure the Holder’s
obligation under the Purchase Contract shall be referred to as a “Corporate
Unit”.  A Holder may make such
Collateral substitution only in multiples of 40 Treasury Units for 40 Corporate
Units.  If Applicable Ownership
Interests in the Treasury Portfolio have replaced the Applicable Ownership
Interests in Senior Notes as a component of the Corporate Units, a Holder may
substitute Applicable Ownership Interests in the Treasury Portfolio for
Treasury Securities only in integral multiples of [•] Treasury Units.

 

Subject to and upon
compliance with the provisions of the Purchase Contract and Pledge Agreement,
at the option of the Holder thereof, Purchase Contracts underlying Units may be
settled early by effecting an Early Settlement as provided in the Purchase
Contract and Pledge Agreement in integral multiples of 40 Treasury Units.

 

Upon Early Settlement of
Purchase Contracts by a Holder of the related Units, the Pledged Treasury
Securities underlying such Units shall be released from the Pledge as provided
in the Purchase Contract and Pledge Agreement and the Holder shall be entitled
to receive a number of shares of Common Stock on account of each Purchase
Contract forming part of a Treasury Unit as to which Early Settlement is
effected equal to the Minimum Settlement Rate.

 

Upon the occurrence of a
Cash Merger, a Holder of Treasury Units may effect Cash Merger Early Settlement
of the Purchase Contracts underlying such Treasury Units pursuant to the terms
of the Purchase Contract and Pledge Agreement in integral multiples of 40
Treasury Units.  Upon Cash Merger Early
Settlement of Purchase Contracts by a Holder of the related Treasury Units, the
Pledged Treasury Securities underlying such Treasury Units shall be released
from the Pledge as provided in the Purchase Contract and Pledge Agreement and
the Holder shall be entitled to receive a number of shares of Common Stock on
account of each Purchase

 

B-6

 

Contract forming part of a Corporate Unit as
to which Cash Merger Early Settlement is effected equal to the applicable
Settlement Rate..

 

Upon registration of
transfer of this Treasury Units Certificate, the transferee shall be bound
(without the necessity of any other action on the part of such transferee,
except as may be required by the Purchase Contract Agent pursuant to the
Purchase Contract and Pledge Agreement), under the terms of the Purchase
Contract and Pledge Agreement and the Purchase Contracts evidenced hereby and
the transferor shall be released from the obligations under the Purchase
Contracts evidenced by this Treasury Units Certificate.  The Company covenants and agrees, and the
Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

 

The Holder of this Treasury
Units Certificate, by its acceptance hereof, authorizes the Purchase Contract
Agent to enter into and perform the related Purchase Contracts forming part of
the Treasury Units evidenced hereby on its behalf as its attorney-in-fact,
expressly withholds any consent to the assumption (i.e., affirmance) of the
Purchase Contracts by the Company or its trustee in the event that the Company
becomes the subject of a case under the Bankruptcy Code, agrees to be bound by
the terms and provisions thereof, covenants and agrees to perform its
obligations under such Purchase Contracts, consents to the provisions of the
Purchase Contract and Pledge Agreement, authorizes the Purchase Contract Agent
to enter into and perform the Purchase Contract and Pledge Agreement on its
behalf as its attorney-in-fact, and consents to the Pledge of the Treasury
Securities underlying this Treasury Units Certificate pursuant to the Purchase
Contract and Pledge Agreement.  The
Holder further covenants and agrees, that, to the extent and in the manner
provided in the Purchase Contract and Pledge Agreement, but subject to the
terms thereof, payments in respect to the aggregate principal amount at
maturity of the Pledged Treasury Securities on the Purchase Contract Settlement
Date equal to the aggregate Purchase Price for the related Purchase Contracts
shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder’s obligations under such Purchase Contracts and such Holder shall
acquire no right, title or interest in such payments.

 

Subject to certain
exceptions, the provisions of the Purchase Contract and Pledge Agreement may be
amended with the consent of the Holders of a majority of the Purchase
Contracts.

 

The Purchase Contracts shall
be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to the conflicts of law provisions thereof to the
extent a different law would govern as a result.

 

The Purchase Contracts shall
not, prior to the settlement thereof, entitle the Holder to any of the rights
of a holder of shares of Common Stock.

 

Prior to due presentment of
this Certificate for registration of transfer, the Company, the Purchase
Contract Agent and its Affiliates and any agent of the Company or the Purchase
Contract Agent may treat the Person in whose name this Treasury Units
Certificate is registered as the owner of the Treasury Units evidenced hereby
for the purpose of receiving payments of Contract Adjustment Payments (subject
to any applicable record date), performance of the Purchase Contracts and for
all other purposes whatsoever, whatever or not any payments in

 

B-7

 

respect thereof be overdue and
notwithstanding any notice to the contrary, and neither the Company, the
Purchase Contract Agent nor any such agent shall be affected by notice to the
contrary.

 

A copy of the Purchase
Contract and Pledge Agreement is available for inspection at the offices of the
Purchase Contract Agent.

 

B-8

 

ABBREVIATIONS

 

The following abbreviations,
when used in the inscription on the face of this instrument, shall be construed
as though they were written out in full according to applicable laws or
regulations:

 

TEN COM:            as tenants in common

 

	
  UNIF GIFT MIN ACT:

  	
   

  	
  Custodian

  	
   

  
	
  (cust)

  	
  (minor)

  	
   

  	
   

  

 

Under Uniform Gifts to
Minors Act of

TENANT:                                          as tenants by the entireties

 

JT
TEN:                                                     as joint tenants with right of survivorship
and not as tenants in common

Additional abbreviations may
also be used though not in the above list.

 

	
  FOR VALUE RECEIVED, the
  undersigned hereby sell(s), assign(s) and transfer(s) unto

  
	
   

  
	
  (Please insert Social
  Security or Taxpayer I.D. or other Identifying Number of Assignee)

  
	
   

  
	
   

  
	
  (Please Print or Type Name
  and Address Including Postal Zip Code of Assignee)

  

 

the within Treasury Units
Certificates and all rights thereunder, hereby irrevocably constituting and
appointing attorney
                   ,
to transfer said Treasury Units Certificates on the books of Genworth
Financial, Inc., with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE: The signature to
  this assignment must correspond with the name as it appears upon the face of
  the within Treasury Units Certificates in every particular,  without alteration or enlargement or any
  change whatsoever.

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
								

 

B-9

 

SETTLEMENT
INSTRUCTIONS

 

The undersigned Holder
directs that a certificate for shares of Common Stock deliverable upon
settlement on or after the Purchase Contract Settlement Date of the Purchase Contracts
underlying the number of Treasury Units evidenced by this Treasury Units
Certificate be registered in the name of, and delivered, together with a check
in payment for any fractional share, to the undersigned at the address
indicated below unless a different name and address have been indicated
below.  If shares are to be registered
in the name of a Person other than the undersigned, the undersigned will pay
any transfer tax payable incident thereto.

 

	
  Dated:

  	
   

  	
  (if assigned to another
  person)

  

 

 

	
  If shares are to be
  registered in the name of and delivered to a Person other than the Holder,
  please (i) print such Person’s name and address and (ii) provide a guarantee
  of your signature:

  	
   

  	
  REGISTERED HOLDER

  	
   

  
	
   

  	
   

  	
  Please print name and
  address of Registered Holder:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Social Security or other

  Taxpayer Identification

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Number, if any

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  	
   

  
					

 

B-10

 

ELECTION
TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT

 

The undersigned Holder of
this Treasury Units Certificate hereby irrevocably exercises the option to
effect [Early Settlement] [Cash Merger Early Settlement] in accordance with the
terms of the Purchase Contract and Pledge Agreement with respect to the
Purchase Contracts underlying the number of Treasury Units evidenced by this
Treasury Units Certificate specified below. 
The option to effect [Early Settlement] [Cash Merger Early Settlement]
may be exercised only with respect to Purchase Contracts underlying Treasury
Units in multiples of 40 Treasury Units or an integral multiple thereof.  The undersigned Holder directs that a
certificate for shares of Common Stock or other securities deliverable upon
such [Early Settlement] [Cash Merger Early Settlement] be registered in the
name of, and delivered, together with a check in payment for any fractional
share and any Treasury Units Certificate representing any Treasury Units
evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement]
of the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below.  Pledged Treasury Securities
deliverable upon such [Early Settlement] [Cash Merger Early Settlement] will be
transferred in accordance with the transfer instructions set forth below.  If shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer
tax payable incident thereto.

 

	
  Dated:

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
								

 

B-11

 

Number of Units evidenced
hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected:

 

	
   

  	
   

  	
  Please print name and
  address of Registered Holder:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If shares of Common Stock
  or Treasury Units Certificates are to be registered in the name of and
  delivered to and Pledged Treasury Securities, as the case may be, are to be
  transferred  to a Person other than
  the Holder, please print such Person’s name and address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Social Security or other

  Taxpayer Identification

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Number, if any

  	
   

  	
   

  	
   

  

 

REGISTERED HOLDER

 

B-12

 

Transfer
Instructions for Pledged Treasury Securities Transferable upon [Early
Settlement] [Cash Merger Early Settlement]:

 

 

B-13

 

[TO
BE ATTACHED TO GLOBAL CERTIFICATES]

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

 

The initial number of
Treasury Units evidenced by this Global Certificate is 0.  The following increases or decreases in this
Global Certificate have been made:

 

 

	
  Date

  	
   

  	
  Amount of
  increase

  in number of

  Corporate Units

  evidenced by the

  Global Certificate

  	
   

  	
  Amount of
  decrease

  in number of

  Corporate Units

  evidenced by the

  Global Certificate

  	
   

  	
  Number of
  Corporate

  Units evidenced by

  this Global

  Certificate following

  such decrease or

  increase

  	
   

  	
  Signature
  of

  authorized signatory

  of Purchase Contract

  Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-14

 

EXHIBIT C

 

INSTRUCTION TO PURCHASE CONTRACT AGENT FROM HOLDER

(To Create Treasury
Units or Corporate Units)

 

The Bank of New York,

as Purchase Contract Agent

101 Barclay Street, 8W

New York, NY 10286

 

Attention: [•]

 

Fax: [•]

 

Re:          [              Corporate
Units]
              Treasury
Units] of Genworth Financial, Inc., a Delaware corporation (the “Company”).

 

The undersigned Holder
hereby notifies you that it has delivered to
[              ],
as Securities Intermediary, for credit to the Collateral Account,
$              
Value of [Senior Notes] [Applicable Ownership Interests in the Treasury
Portfolio] [Treasury Securities] in exchange for an equal Value of [Pledged
Treasury Securities] [Senior Notes underlying Pledged Applicable Ownership
Interests in Senior Notes] [Pledged Applicable Ownership Interests in the
Treasury Portfolio] held in the Collateral Account, in accordance with the
Purchase Contract and Pledge Agreement, dated as of May [•], 2004 (the “Agreement”; unless otherwise defined herein, terms defined in
the Agreement are used herein as defined therein), among you, the Company, the
Collateral Agent, the Custodial Agent and the Securities Intermediary.  The undersigned Holder has paid all
applicable fees and expenses relating to such exchange.  The undersigned Holder hereby instructs you
to instruct the Collateral Agent to release to you on behalf of the undersigned
Holder the [Senior Notes underlying Pledged Applicable Ownership Interests in
Senior Notes] [Pledged Applicable Ownership Interests in the Treasury
Portfolio] [Pledged Treasury Securities] related to such [Corporate Units]
[Treasury Units].

 

	
  Date:

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
									

 

C-1

 

Please print name and
address of Registered Holder:

 

	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Social Security or other
  Taxpayer

  Identification Number, if any

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

C-2

 

EXHIBIT D

 

NOTICE FROM PURCHASE CONTRACT AGENT

TO HOLDERS UPON TERMINATION EVENT

 

(Transfer
of Collateral upon Occurrence of a Termination Event)

 

[HOLDER]

 

 

Attention:

Telecopy: 

 

Re:                               [              Corporate
Units]
[              Treasury
Units] of Genworth Financial, Inc., an Delaware corporation (the “Company”)

 

Please refer to the Purchase
Contract and Pledge Agreement, dated as of May [•], 2004 (the “Purchase Contract and Pledge Agreement”; unless otherwise
defined herein, terms defined in the Purchase Contract and Pledge Agreement are
used herein as defined therein), between the Company and the undersigned, as
Purchase Contract Agent and as attorney-in-fact for the holders of Corporate
Units and Treasury Units from time to time.

 

We hereby notify you that a
Termination Event has occurred and that [the Senior Notes underlying the
Pledged Applicable Ownership Interests in Senior Notes] [the Pledged Applicable
Ownership Interests in the Treasury Portfolio] [the Treasury Securities]
compromising a portion of your ownership interest in
              [Corporate
Units] [Treasury Units] have been released and are being held by us for your
account pending receipt of transfer instructions with respect to such [Senior
Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio]
[Pledged Treasury Securities] (the “Released
Securities”).

 

Pursuant to Section 3.15 of
the Purchase Contract and Pledge Agreement, we hereby request written transfer
instructions with respect to the Released Securities. Upon receipt of your
instructions and upon transfer to us of your [Corporate Units] [Treasury Units]
effected through book-entry or by delivery to us of your [Corporate Units
Certificate] [Treasury Units Certificate], we shall transfer the Released
Securities by book-entry transfer or other appropriate procedures, in
accordance with your instructions.  In
the event you fail to effect such transfer or delivery, the Released Securities
and any distributions thereon, shall be held in our name, or a nominee in trust
for your benefit, until such time as such [Corporate Units] [Treasury Units]
are transferred or your [Corporate Units Certificate] [Treasury Units
Certificate] is surrendered or satisfactory evidence is provided that such
[Corporate Units Certificate] [Treasury Units Certificate] has been destroyed,
lost or stolen, together with any indemnification that we or the Company may
require.

 

D-1

 

	
  Date:

  	
   

  	
   

  	
  By:
  THE BANK OF NEW YORK,

  as the Purchase Contract Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  

 

D-2

 

EXHIBIT E

 

NOTICE TO SETTLE BY SEPARATE CASH

 

The Bank of New York,

as Purchase Contract Agent

101 Barclay Street, 8W

New York, NY 10286

 

Attention: [•]

 

Fax: [•]

 

Re:                                               Corporate
Units of Genworth Financial, Inc., a Delaware corporation (the “Company”)

 

The undersigned Holder
hereby irrevocably notifies you in accordance with Section 5.02 of the Purchase
Contract and Pledge Agreement, dated as of May [•], 2004 (the “Purchase Contract and Pledge Agreement”; unless otherwise
defined herein, terms defined in the Purchase Contract and Pledge Agreement are
used herein as defined therein), between the Company and you, as Purchase
Contract Agent and as attorney-in-fact for the Holders of the Corporate Units
and as Collateral Agent, Custodial Agent and Securities Intermediary, that such
Holder has elected to pay to the Securities Intermediary for deposit in the
Collateral Account, prior to 5:00 p.m. (New York City time) on the sixth
Business Day immediately preceding the Purchase Contract Settlement Date (in
lawful money of the United States by certified or cashiers’ check or wire
transfer, in immediately available funds payable to or upon the order of the
Securities Intermediary), $            as
the Purchase Price for the shares of Common Stock issuable to such Holder by
the Company with respect to
              Purchase
Contracts on the Purchase Contract Settlement Date.  The undersigned Holder hereby instructs you to notify promptly
the Collateral Agent of the undersigned Holders’ election to make such Cash
Settlement with respect to the Purchase Contracts related to such Holder’s
Corporate Units.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  
	
  Please print name and
  address of Registered Holder:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

E-1

 

EXHIBIT F

 

RESERVED

 

F-1

 

EXHIBIT G

 

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Creation of Treasury Units)

 

The Bank of New York,

as Collateral Agent

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                                              Corporate
Units of Genworth Financial, Inc. (the “Company”)

 

Please refer to the Purchase
Contract and Pledge Agreement, dated as of May [•], 2004 (the “Agreement”), among the Company, you, as Collateral Agent, as
Securities Intermediary and as Custodial Agent and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Corporate Units from
time to time. Capitalized terms used herein but not defined shall have the
meaning set forth in the Agreement.

 

We hereby notify you in
accordance with Section 3.13 of the Agreement that the holder of securities
named below (the “Holder”) has
elected to substitute
$                 Value
of Treasury Securities or security entitlements with respect thereto in
exchange for an equal Value of [Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes] [Pledged Applicable Ownership Interests in
the Treasury Portfolio] relating
to              Corporate
Units and has delivered to the undersigned a notice stating that the Holder has
Transferred such Treasury Securities or security entitlements with respect
thereto to the Securities Intermediary, for credit to the Collateral Account.

 

G-1

 

We hereby request that you
instruct the Securities Intermediary, upon confirmation that such Treasury
Securities or security entitlements thereto have been credited to the
Collateral Account, to release to the undersigned an equal Value of [Senior
Notes underlying Pledged Applicable Ownership Interests in Senior Notes]
[Pledged Applicable Ownership Interests in the Treasury Portfolio] or security
entitlements with respect thereto related to
             Corporate
Units of such Holder in accordance with Section 3.13 of the Agreement.

 

	
  Date:

  	
   

  	
   

  	
  THE BANK OF NEW YORK, as
  Purchase Contract Agent and as attorney-in-fact of the Holders from time to
  time of the Units

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  

 

G-2

 

Please print name and
address of Holder electing to substitute Treasury Securities or security
entitlements with respect thereto for the [Senior Notes underlying Pledged
Applicable Ownership Interests in Senior Notes] [Pledged Applicable Ownership
Interests in the Treasury Portfolio]:

 

 

	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Social Security or other
  Taxpayer Identification Number, if any

  
	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

G-3

 

EXHIBIT H

 

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Creation of Treasury
Units)

 

The Bank of New York,

as Securities Intermediary

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                                                 
Corporate Units of Genworth Financial, Inc. (the “Company”)

 

The securities account of
The Bank of New York, as Collateral Agent, maintained by the Securities
Intermediary and designated “The Bank of New York, as Collateral Agent of
Genworth Financial, Inc., as pledgee of The Bank of New York, as the Purchase
Contract Agent on behalf of and as attorney-in-fact for the Holders” (the “Collateral Account”)

 

Please refer to the Purchase
Contract and Pledge Agreement, dated as of May [•], 2004 (the “Agreement”), among the Company, you, as Collateral Agent, as
Securities Intermediary and as Custodial Agent and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Corporate Units from
time to time. Capitalized terms used herein but not defined shall have the
meaning set forth in the Agreement.

 

When you have confirmed that
$                    
Value of Treasury Securities or security entitlements with respect thereto has
been credited to the Collateral Account by or for the benefit of
                  ,
as Holder of Corporate Units (the “Holder”),
you are hereby instructed to release from the Collateral Account an equal Value
of [Senior Notes underlying Pledged Applicable Ownership Interests in Senior
Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio] or
security entitlements with respect thereto relating to
           Corporate Units of
the Holder by Transfer to the Purchase Contract Agent.

 

H-1

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
  THE
  BANK OF NEW YORK,

  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Authorized Signatory

  
						

 

H-2

 

EXHIBIT I

 

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Recreation of Corporate Units)

 

The Bank of New York,

as Collateral Agent

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                                                       
Treasury Units of Genworth Financial, Inc. (the “Company”)

 

Please refer to the Purchase
Contract and Pledge Agreement dated as of May [•], 2004 (the “Agreement”), among the Company, you, as Collateral Agent, as
Securities Intermediary and as Custodial Agent and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Treasury Units from
time to time.  Capitalized terms used
herein but not defined shall have the meaning set forth in the Agreement.

 

We hereby notify you in
accordance with Section 3.14 of the Agreement that the holder of securities
named below (the “Holder”) has
elected to substitute $Value of [Senior Notes] [Applicable Ownership Interests
in the Treasury Portfolio] or security entitlements with respect thereto in
exchange for
$                    
Value of Pledged Treasury Securities relating to
            
Treasury Units and has delivered to the undersigned a notice stating that the
holder has Transferred such [Senior Notes] [Applicable Ownership Interests in
the Treasury Portfolio] or security entitlements with respect thereto to the
Securities Intermediary, for credit to the Collateral Account.

 

I-1

 

We hereby request that you
instruct the Securities Intermediary, upon confirmation that such [Senior
Notes] [Applicable Ownership Interests in the Treasury Portfolio] or security
entitlements with respect thereto have been credited to the Collateral Account,
to release to the undersigned
$                    
Value of Treasury Securities or security entitlements with respect thereto
related to           
Treasury Units of such Holder in accordance with Section 3.14 of the Agreement.

 

 

	
   

  	
  THE BANK OF NEW YORK,

  as Purchase Contract Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Authorized
  Signatory

  
						

 

I-2

 

Please print name and address
of Holder electing to substitute [Senior Notes] [Applicable Ownership Interests
in the Treasury Portfolio] or security entitlements with respect thereto for
Pledged Treasury Securities:

 

	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Social Security or other
  Taxpayer

  Identification Number, if any

  
	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

I-3

 

EXHIBIT J

 

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Recreation of
Corporate Units)

 

The Bank of New York,

as Securities Intermediary

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                                                     
Treasury Units of Genworth Financial, Inc. (the “Company”)

 

The securities account of
The Bank of New York,  as
Collateral Agent, maintained by the Securities Intermediary and designated “The
Bank of New York, as Collateral Agent of Genworth Financial, Inc., as pledgee
of The Bank of New York, as the Purchase Contract Agent on behalf of and as
attorney-in-fact for the Holders” (the “Collateral
Account”)

 

Please refer to the Purchase
Contract and Pledge Agreement dated as of May [•], 2004 (the “Agreement”), among the Company, you, as Securities
Intermediary, Custodial Agent and Collateral Agent and The Bank of New York, as
Purchase Contract Agent and as attorney-in-fact for the holders of Treasury
Units from time to time.  Capitalized
terms used herein but not defined shall have the meaning set forth in the
Agreement.

 

When you have confirmed that
$                    
Value of [Senior Notes] [Applicable Ownership Interests in the Treasury
Portfolio] or security entitlements with respect thereto has been credited to
the Collateral Account by or for the benefit of
                                ,
as Holder of Treasury Units (the “Holder”),
you are hereby instructed to release from the Collateral Account
$                      Value of Treasury Securities or security
entitlements thereto by Transfer to the Purchase Contract Agent.

 

J-1

 

 

	
   

  	
  THE BANK OF NEW YORK,

  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Authorized
  Signatory

  
						

 

J-2

 

EXHIBIT K

 

NOTICE OF CASH SETTLEMENT FROM COLLATERAL

AGENT TO PURCHASE CONTRACT AGENT

(Cash Settlement
Amounts)

 

The Bank of New York,

as Purchase Contract Agent

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                                                     Corporate Units of Genworth Financial, Inc.
(the “Company”)

 

Please refer to the Purchase
Contract and Pledge Agreement dated as of May [•], 2004 (the “Agreement”), by and among you, the Company, and The Bank of
New York, as Collateral Agent, Custodial Agent and Securities
Intermediary.  Unless otherwise defined
herein, terms defined in the Agreement are used herein as defined therein.

 

In accordance with Section
5.02(a)(iv) of the Agreement, we hereby notify you that as of 5:00 p.m. (New
York City time) on the sixth Business Day immediately preceding [•], 2007 (the “Purchase Contract Settlement Date”), we have received (i)
$                              
in immediately available funds paid in an aggregate amount equal to the
Purchase Price due to the Company on the Purchase Contract Settlement Date with
respect to
                                
Corporate Units and (ii) based on the funds received set forth in clause (i)
above, an aggregate principal amount of
$                  
of Senior Notes underlying Pledged Applicable Ownership Interests in Senior
Notes are to be offered for purchase in each Remarketing.

 

K-1

 

	
   

  	
  THE BANK OF NEW YORK,

  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Authorized
  Signatory

  
						

 

K-2

 

EXHIBIT L

 

INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

 

The Bank of New York,

as Custodial Agent

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:                               Senior Notes Due 2009 of Genworth Financial,
Inc. (the “Company”)

 

The undersigned hereby
notifies you in accordance with Section 5.02(b)(ii) of the Purchase Contract
and Pledge Agreement, dated as of May [•], 2004 (the “Agreement”), among the Company, you, as Collateral Agent,
Custodial Agent and Securities Intermediary and The Bank of New York, as the
Purchase Contract Agent and as attorney-in-fact for the holders of Corporate
Units and Treasury Units from time to time, that the undersigned elects to
deliver
$                            
aggregate principal amount of Separate Senior Notes for delivery to the
Remarketing Agent prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement Date for
remarketing pursuant to Section 5.02(b)(ii) of the Agreement.  The undersigned will, upon request of the
Remarketing Agent, execute and deliver any additional documents deemed by the
Remarketing Agent or by the Company to be necessary or desirable to complete
the sale, assignment and transfer of the Separate Senior Notes tendered
hereby.  Capitalized terms used herein
but not defined shall have the meaning set forth in the Agreement.

 

The undersigned hereby
instructs you, upon receipt of the Proceeds of a Successful Remarketing from
the Remarketing Agent, to deliver such Proceeds to the undersigned in
accordance with the instructions indicated herein under “A.  Payment Instructions.”  The undersigned hereby instructs you, in the
event of a Failed Final Remarketing, upon receipt of the Separate Senior Notes
tendered herewith from the Remarketing Agent, to deliver such Separate Senior
Notes to the person(s) and the address(es) indicated herein under “B.  Delivery Instructions.”

 

With this notice, the
undersigned hereby (i) represents and warrants that the undersigned has full
power and authority to tender, sell, assign and transfer the Separate Senior
Notes tendered hereby and that the undersigned is the record owner of any
Separate Senior Notes tendered herewith in physical form or a participant in
The Depositary Trust Company (“DTC”)
and the beneficial owner of any Separate Senior Notes tendered herewith by
book-entry transfer to your account at DTC, (ii) agrees to be bound by the
terms and conditions of Section 5.02(b) of the Agreement and (iii) acknowledges
and agrees that after 5:00 p.m. (New York City time) on the seventh Business
Day immediately preceding the Purchase Contract Settlement Date, such election
shall become an irrevocable election to have such Separate Senior Notes
remarketed in

 

L-1

 

each Remarketing, and that the Separate
Senior Notes tendered herewith will only be returned in the event of a Failed
Final Remarketing.  

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security or other Taxpayer Identification Number, if any

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

L-2

 

 

A.            PAYMENT INSTRUCTIONS

 

Proceeds of a Successful
Remarketing should be paid by check in the name of the person(s) set forth
below and mailed to the address set forth below.

 

 

Name(s)

 

 

(Please Print)

Address

 

 

(Please Print)

 

 

 

(Zip Code)

 

(Tax Identification or
Social Security Number)

 

 

B.            DELIVERY INSTRUCTIONS

 

In the event of a Failed
Final Remarketing, Senior Notes which are in physical form should be delivered to
the person(s) set forth below and mailed to the address set forth below.

 

Name(s)

 

(Please Print)

 

Address

 

(Please Print)

 

(Zip Code)

 

(Tax Identification or
Social Security Number)

 

L-3

 

In the event of a Failed
Final Remarketing, Senior Notes which are in book-entry form should be credited
to the account at The Depository Trust Company set forth below.

 

DTC Account Number

 

Name of Account Party:

 

L-4

 

EXHIBIT M

 

INSTRUCTION TO CUSTODIAL AGENT REGARDING

WITHDRAWAL FROM REMARKETING

 

The Bank of New York,

as Custodial Agent

101 Barclay Street, 8W

New York, NY 10286

Attention: [•]

Fax: [•]

 

Re:          Senior Notes Due 2009 of Genworth Financial, Inc. (the “Company”)

 

The undersigned hereby
notifies you in accordance with Section 5.02(b)(ii) of the Purchase Contract
and Pledge Agreement, dated as of May [•], 2004 (the “Agreement”), among the Company and you, as Collateral Agent,
Custodial Agent and Securities Intermediary, and The Bank of New York, as
Purchase Contract Agent and as attorney-in-fact for the holders of Corporate
Units and Treasury Units from time to time, that the undersigned elects to
withdraw the $                  
aggregate principal amount of Separate Senior Notes delivered to you for
Remarketing pursuant to Section 5.02 of the Agreement.  The undersigned hereby instructs you to
return such Separate Senior Notes to the undersigned in accordance with the
undersigned’s instructions.  With this
notice, the Undersigned hereby agrees to be bound by the terms and conditions
of Section 5.02(b) of the Agreement. 
Capitalized terms used herein but not defined shall have the meaning set
forth in the Agreement.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security or other
  Taxpayer

  Identification Number, if any

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  

 

M-1

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