Document:

exv4w2

 

Exhibit 4.2

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE (HEREINAFTER DEFINED) AND IS
REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE OF A DEPOSITARY.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE 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 THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE TRUST (HEREINAFTER DEFINED) OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND UNLESS ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR 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.

	 	 	 
	CUSIP No.: 449822BH7

	 	Principal Amount: U.S. $400,000,000

ING USA GLOBAL FUNDING TRUST 3

SECURED MEDIUM-TERM NOTES

Original Issue Date: September 26, 2006

Issue Price: 100%

Stated Maturity Date: The Initial Stated Maturity Date,
the Final Stated Maturity Date or any other maturity
date resulting from the failure of the holder of this
Note to elect to extend the maturity of all or a portion
of this Note (as set forth in Schedule II); provided,
however, that in no event shall the maturity of this
Note be extended beyond the Final Stated Maturity
Date.

Initial Stated Maturity Date: December 29, 2008, or, if
such day is not a Business Day, the immediately
succeeding Business Day.

Final Stated Maturity Date: September 29, 2016, or, if
such day is not a Business Day, the immediately

Floating Rate Note: þ Yes o No. If yes,

          Regular Floating Rate Notes þ

          Inverse Floating Rate Notes o

          Floating Rate/Fixed Rate Notes o

          Fixed Rate/Floating Rate Notes o

          Interest Rate Basis(es): Three Month USD
LIBOR; provided, however, that for the initial interest
period (from and including the Original Issue Date to but
excluding the Interest Payment Date occurring in
December 2006), the Interest Rate Basis will be the
Initial Interest Rate.

          LIBOR þ

          o LIBOR Reuters Page:

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  succeeding Business Day.

Settlement Date: September 26, 2006

Securities Exchange Listing: o Yes þ No. If yes, indicate name(s) of Securities Exchange(s):

                                                        .

Depositary: The Depository Trust Company

Authorized Denominations: $100,000 and integral multiples of $1,000 in excess thereof; the holder of this Note may extend a portion of this Note solely in Authorized Denominations and the Principal Amount of this Note remaining after an extension must also be in Authorized
Denominations.

Collateral held in the Trust: ING USA Annuity and Life Insurance Company Funding Agreement No. RMTN-3, all proceeds of the Funding Agreement and all rights and books and records pertaining to the foregoing.

Additional Amounts to be Paid: o Yes þ No

Interest Rate or Formula: Three Month USD LIBOR (except as noted under “Interest Rate Basis”) plus the applicable Spread set forth in the attached Schedule II.

Fixed Rate Note: o Yes þ No. If yes,

          Interest Rate:

          Interest Payment Frequency:

          Interest Payment Dates:

          Day Count Convention:

          Additional/Other Terms:

Amortizing Note: o Yes þ No. If yes,

          Amortization schedule or formula:

          Additional/Other Terms:

Discount Note: o Yes þ No. If yes,

          Total Amount of Discount:

          Initial Accrual Period of Discount:

          Interest Payment Dates:

          Additional/Other Terms:

Optional Redemption Provisions: o Yes þ No. If yes,

          Initial Redemption Date:

          Initial Redemption Percentage:

          Annual Redemption Percentage Reduction, if any:

          Additional/Other Terms:

Contingent Redemption Provisions: þ Yes o No.

If yes,

          Terms: See attached Schedule II

Repayment Provisions: o Yes þ No. If yes,

          Repayment Date(s):

          þ LIBOR Telerate Page: 3750

          LIBOR Currency: U.S. Dollars

          EURIBOR o

          CMT Rate o

               Designated CMT Telerate Page:

                    If Telerate Page 7052:

                    o Weekly Average

                    o Monthly Average

               Designated CMT Maturity Index:

          CD Rate o

          Commercial Paper Rate o

          Constant Maturity Swap Rate o

          Eleventh District Cost of Funds Rate o

          Federal Funds Open Rate o

          Federal Funds Rate o

          Prime Rate o

          Treasury Rate o

          Index Maturity: Not applicable

          Spread and/or Spread Multiplier: See attached Schedule II

          Initial
Interest Rate, if any: 5.40083%

          Initial Interest Reset Date: December 29, 2006

          Interest Reset Dates: Each Interest Payment Date

          Interest Rate Determination Date(s): The second London banking day preceding the related Interest Reset Date

          Interest Payment Dates: Quarterly on the 29th day of every
March, June, September and December, commencing December 29, 2006, provided that
if such day is not a Business Day, such Interest Payment Date will be the next
succeeding Business Day. If this Note matures prior to the Final Stated Maturity
Date, the final Interest Payment Date will be the relevant Stated Maturity Date,
and interest for the final interest period for this Note will accrue from and
including the Interest Payment Date in the quarter immediately preceding such
relevant Stated Maturity Date to but excluding such relevant State Maturity
Date.

          Maximum Interest Rate, if any: Not applicable

          Minimum Interest Rate, if any: Not applicable

          Fixed Rate Commencement Date, if any: Not applicable

          Floating Rate Commencement Date, if any: Not applicable

          Fixed Interest Rate, if any: Not applicable

          Day Count Convention: Actual/360

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     Repayment Price:

     Additional/Other Terms:

Regular Record Date(s): 15 calendar days prior to the Interest Payment Date

Sinking Fund: Not applicable

Specified Currency: U.S. Dollars

Exchange Rate Agent: Not applicable

Calculation Agent: Citibank, N.A.

Additional/Other Terms: See attached Schedule II

     The ING USA Global Funding Trust designated above (the “Trust”), for value received,
hereby promises to pay to Cede & Co., or its registered assigns, the Principal Amount specified
above on the Stated Maturity Date specified above and, if so specified above, to pay interest
thereon from the Original Issue Date specified above or from the most recent Interest Payment Date
specified above to which interest has been paid or duly provided for at the rate per annum
determined in accordance with the provisions on the reverse hereof and as specified above, until
the principal hereof is paid or made available for payment. Unless otherwise specified above,
payments of principal, premium, if any, and interest hereon will be made in the lawful currency of
the United States of America (“U.S. Dollars” or “United States Dollars”). If the Specified
Currency specified above is other than U.S. Dollars, the Holder (as defined in the Indenture) shall
receive such payments in such Foreign Currency (as hereinafter defined). The “Principal Amount” of
this Note at any time means (1) if this Note is a Discount Note (as defined in section 3(c) on the
reverse hereof), the Amortized Face Amount (as hereinafter defined) at such time and (2) in all
other cases, the Principal Amount hereof. Capitalized terms not otherwise defined herein shall
have their meanings set forth in the Indenture, dated as of the date of the Pricing Supplement (the
“Indenture”), between Citibank, N.A., as the indenture trustee (the “Indenture Trustee”), and the
Trust, or on the face hereof.

     This Note will mature on the Stated Maturity Date, unless its principal (or any installment of
its principal) becomes due and payable prior to the Stated Maturity Date, whether, as applicable,
by the declaration of acceleration of maturity, notice of redemption by the Trust or otherwise (the
Stated Maturity Date or any date prior to the Stated Maturity Date on which this Note becomes due
and payable, as the case may be, is referred to as the “Maturity Date”).

     A “Discount Note” is any Note that has an Issue Price that is less than 100% of the Principal
Amount thereof by a percentage that is equal to or greater than 0.25% multiplied by the product of
the principal amount of the Notes and the number of full years to the Stated Maturity Date.

     Unless otherwise specified above, the interest payable on each Interest Payment Date or the
Maturity Date will be the amount of interest accrued from and including the Original Issue Date or
from and including the last Interest Payment Date to which interest has been paid or duly provided
for, as the case may be, to, but excluding, such Interest Payment Date or the Maturity Date, as the
case may be.

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     Unless otherwise specified above, the interest payable on any Interest Payment Date will be
paid to the Holder on the Regular Record Date for such Interest Payment Date, which Regular Record
Date shall be the fifteenth (15th) calendar day, whether or not a Business Day,
immediately preceding the related Interest Payment Date; provided that, notwithstanding any
provision of the Indenture to the contrary, interest payable on any Maturity Date shall be payable
to the Person to whom principal shall be payable; and provided, further, that unless otherwise
specified above, in the case of a Note initially issued between a Regular Record Date and the
Interest Payment Date relating to such Regular Record Date, interest for the period beginning on
the Original Issue Date and ending on such Interest Payment Date shall be paid on the Interest
Payment Date following the next succeeding Regular Record Date to the Holder on such next
succeeding Regular Record Date.

     Payments of principal of, and premium, if any, and interest and other amounts due and owing,
if any, will be made through the Indenture Trustee to the account of DTC or its nominee and will be
made in accordance with depositary arrangements with DTC.

     Unless otherwise specified on the face hereof, the Holder hereof will not be obligated to pay
any administrative costs imposed by banks in making payments in immediately available funds by the
Trust. Unless otherwise specified on the face hereof, any tax assessment or governmental charge
imposed upon payments hereunder, including, without limitation, any withholding tax, will be borne
by the Holder hereof.

     REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF. SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.

     Unless the certificate of authentication hereon shall have been executed by the Indenture
Trustee pursuant to the Indenture, this Note shall not be entitled to any benefit under such
Indenture or be valid or obligatory for any purpose.

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     IN WITNESS WHEREOF, the Trust has caused this instrument to be duly executed, by manual or
facsimile signature.

	 	 	 	 	 	 	 
	 	 	THE ING USA GLOBAL FUNDING TRUST	 	 
	 	 	          SPECIFIED ON THE FACE OF THIS NOTE	 	 
	 
	 	 	 	 	 	 
	Dated: Original Issue Date	 	By: U.S. Bank National Association, not in its
individual capacity but solely as Trustee.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patricia M. Child	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

CERTIFICATE OF AUTHENTICATION

     This is one of the Notes of the ING USA Global Funding Trust specified on the face of this
Note referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.	 	 
	 	 	As Indenture Trustee	 	 
	 
	 	 	 	 	 	 
	Dated: Original Issue Date
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Nancy Forte	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

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[REVERSE FORM OF NOTE]

Section 1. General. This Note is one of a duly authorized issue of Notes
of the Trust. The Notes are issued pursuant to the Indenture.

Section 2. Currency.

     (a) Unless specified otherwise on the face hereof, this Note is denominated in, and payments
of principal, premium, if any, and/or interest, if any, will be made in U.S. Dollars. If specified
as the Specified Currency, this Note may be denominated in, and payments of principal, premium, if
any, and/or interest, if any, may be made in a single currency other than U.S. Dollars (a “Foreign
Currency”). If this Note is denominated in a Foreign Currency, the Holder of this Note is required
to pay for this Note in the Specified Currency.

     (b) Unless specified otherwise on the face hereof, if this Note is denominated in a Foreign
Currency, the Trust is obligated to make payments of principal of, and premium, if any, and
interest, if any, on, this Note in the Specified Currency. Any amounts so payable by the Trust in
the Specified Currency will be converted by the Exchange Rate Agent into U.S. Dollars for payment
to the Holder hereof unless otherwise specified on the face of this Note or the Holder elects, in
the manner described below, to receive these amounts in the Specified Currency. If this Note is
denominated in a Foreign Currency, any U.S. Dollar amount to be received by the Holder hereof will
be based on the highest bid quotation in The City of New York received by the Exchange Rate Agent
at approximately 11:00 A.M., New York City time, on the second Business Day preceding the
applicable payment date from three recognized foreign exchange dealers (one of whom may be the
Exchange Rate Agent) selected by the Exchange Rate Agent and approved by the Trust for the purchase
by the quoting dealer of the Specified Currency for U.S. Dollars for settlement on that payment
date in the aggregate amount of the Specified Currency payable to all Holders of the Notes
scheduled to receive U.S. Dollar payments and at which the applicable dealer commits to execute a
contract. All currency exchange costs will be borne by the Holders of the Notes by deductions from
any payments. If three bid quotations are not available, payments will be made in the Specified
Currency. If this Note is denominated in a Foreign Currency, the Holder of this Note may elect to
receive all or a specified portion of any payment of principal, premium, if any, and/or interest,
if any, in the Specified Currency by submitting a written request to the Indenture Trustee at its
Corporate Trust Office in The City of New York on or prior to the applicable Regular Record Date or
at least 15 calendar days prior to the Maturity Date, as the case may be. This written request may
be mailed or hand delivered or sent by cable, telex or other form of facsimile transmission. This
election will remain in effect until revoked by written notice delivered to the Indenture Trustee
on or prior to a Regular Record Date or at least 15 calendar days prior to the Maturity Date, as
the case may be. The Holder of a Note denominated in a Foreign Currency to be held in the name of
a broker or nominee should contact their broker or nominee to determine whether and how an election
to receive payments in the Specified Currency may be made. Unless specified otherwise on the face
hereof, if the Specified Currency is other than U.S. Dollars, a beneficial owner of a Note
represented by a global security which elects to receive payments

6

 

of principal, premium, if any, and/or interest, if any, in the Specified Currency must notify
the participant through which it owns its interest on or prior to the applicable Regular Record
Date or at least 15 calendar days prior to the Maturity Date, as the case may be, of its election.
The applicable participant must notify DTC of its election on or prior to the third Business Day
after the applicable Regular Record Date or at least 12 calendar days prior to the Maturity Date,
as the case may be, and DTC will notify the Indenture Trustee of that election on or prior to the
fifth Business Day after the applicable Regular Record Date or at least ten calendar days prior the
Maturity Date, as the case may be. If complete instructions are received by the participant from
the applicable beneficial owner and forwarded by the participant to DTC, and by DTC to the
Indenture Trustee, on or prior to such dates, then the applicable beneficial owner will receive
payments in the Specified Currency.

     (c) The Trust will indemnify the Holder hereof against any loss incurred as a result of any
judgment or order being given or made for any amount due under this Note and that judgment or order
requiring payment in a currency (the “Judgment Currency”) other than the Specified Currency, and as
a result of any variation between: (i) the rate of exchange at which the Specified Currency amount
is converted into the Judgment Currency for the purpose of that judgment or order; and (ii) the
rate of exchange at which the Holder, on the date of payment of that judgment or order, is able to
purchase the Specified Currency with the amount of the Judgment Currency actually received.

     (d) Unless otherwise specified on the face hereof, if payment hereon is required to be made
in a Foreign Currency and such currency is unavailable due to the imposition of exchange controls
or other circumstances beyond the Trust’s control, then the Trust will be entitled to make payments
with respect hereto in U.S. Dollars on the basis of the Market Exchange Rate (as hereinafter
defined), computed by the Exchange Rate Agent, on the second Business Day prior to the particular
payment or, if the Market Exchange Rate is not then available, on the basis of the most recently
available Market Exchange Rate.

     (e) The “Market Exchange Rate” for the Foreign Currency shall mean the noon dollar buying
rate in The City of New York for cable transfers for the Foreign Currency as certified for customs
purposes (or, if not so certified, as otherwise determined) by the Federal Reserve Bank of New
York.

     (f) All determinations made by the Exchange Rate Agent shall be at its sole discretion and
shall, in the absence of manifest error, be conclusive for all purposes and binding on the Holder
hereof.

     (g) All costs of exchange in respect of this Note, if denominated in a Foreign Currency, will
be borne by the Holder hereof.

Section 3. Determination of Interest Rate and Certain Other Terms.

	 	(a)	 	Fixed Rate Notes. If this Note is specified on the face hereof as a
“Fixed Rate Note”:

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(i) This Note will bear interest at the rate per annum specified on the face hereof.
Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day
months.

(ii) Unless otherwise specified on the face hereof, the Interest Payment Dates for
this Note will be as follows:

	 	 	 
	Interest Payment Frequency	 	Interest Payment Dates
	Monthly

	 	Fifteenth day of each calendar month,
beginning in the first calendar month
following the month this Note was issued.
	 
	 	 
	Quarterly

	 	Fifteenth day of every third calendar
month, beginning in the third calendar
month following the month this Note was
issued.
	 
	 	 
	Semi-annual

	 	Fifteenth day of every sixth calendar
month, beginning in the sixth calendar
month following the month this Note was
issued.
	 
	 	 
	Annual

	 	Fifteenth day of every twelfth calendar
month, beginning in the twelfth calendar
month following the month this Note was
issued.

(iii) If any Interest Payment Date or the Maturity Date of this Note falls on a
day that is not a Business Day, the Trust will make the required payment of principal,
premium, if any, and/or interest or other amounts on the next succeeding Business Day,
and no additional interest will accrue in respect of the payment made on that next
succeeding Business Day.

	 	(b)	 	Floating Rate Notes. If this Note is specified on the face hereof as
a “Floating Rate Note”:

(i) Interest Rate Basis. Interest on this Note will be determined by reference
to the applicable Interest Rate Basis or Interest Rate Bases, which may, as described
below, include the CD Rate, the CMT Rate, the Commercial Paper Rate, the Constant
Maturity Swap Rate, the Eleventh District Cost of Funds Rate, the Federal Funds Open
Rate, the Federal Funds Rate, LIBOR, EURIBOR, the Prime Rate or the Treasury Rate
(each as defined below).

(ii) Effective Rate. The rate derived from the applicable Interest Rate Basis
or Interest Rate Bases will be determined in accordance with the related provisions
below. The interest rate in effect on each day will be based on: (1) if that day is an
Interest Reset Date, the rate determined as of the Interest Determination Date
immediately preceding that Interest Reset Date; or (2) if that day is not an

8

 

Interest Reset Date, the rate determined as of the Interest Determination Date
immediately preceding the most recent Interest Reset Date.

(iii) Spread; Spread Multiplier; Index Maturity. The “Spread” is the number of
basis points (one one-hundredth of a percentage point) specified on the face hereof to
be added to or subtracted from the related Interest Rate Basis or Interest Rate Bases
applicable to this Note. The “Spread Multiplier” is the percentage specified on the
face hereof of the related Interest Rate Basis or Interest Rate Bases applicable to
this Note by which the Interest Rate Basis or Interest Rate Bases will be multiplied
to determine the applicable interest rate. The “Index Maturity” is the period to
maturity of the instrument or obligation with respect to which the related Interest
Rate Basis or Interest Rate Bases will be calculated.

(iv) Regular Floating Rate Note. Unless this Note is specified on the face
hereof as a Floating Rate/Fixed Rate Note, a Fixed Rate/Floating Rate Note or an
Inverse Floating Rate Note, this Note (a “Regular Floating Rate Note”) will bear
interest at the rate determined by reference to the applicable Interest Rate Basis or
Interest Rate Bases: (1) plus or minus the applicable Spread, if any; and/or (2)
multiplied by the applicable Spread Multiplier, if any. Commencing on the first
Interest Reset Date, the rate at which interest on this Regular Floating Rate Note is
payable will be reset as of each Interest Reset Date; provided, however, that the
interest rate in effect for the period, if any, from the Original Issue Date to the
first Interest Reset Date will be the Initial Interest Rate.

(v) Floating Rate/Fixed Rate Notes. If this Note is specified on the face
hereof as a “Floating Rate/Fixed Rate Note”, this Note will bear interest at the rate
determined by reference to the applicable Interest Rate Basis or Interest Rate Bases:
(1) plus or minus the applicable Spread, if any; and/or (2) multiplied by the
applicable Spread Multiplier, if any. Commencing on the first Interest Reset Date,
the rate at which this Floating Rate/Fixed Rate Note is payable will be reset as of
each Interest Reset Date; provided, however, that: (A) the interest rate in effect for
the period, if any, from the Original Issue Date to the first Interest Reset Date will
be the Initial Interest Rate specified on the face hereof; and (B) the interest rate
in effect commencing on the Fixed Rate Commencement Date will be the Fixed Interest
Rate, if specified on the face hereof, or, if not so specified, the interest rate in
effect on the day immediately preceding the Fixed Rate Commencement Date.

(vi) Fixed Rate/Floating Rate Notes. If this Note is specified on the face
hereof as a “Fixed Rate/Floating Rate Note”, this Note will bear interest at the rate
per annum specified on the face hereof as the Fixed Interest Rate; provided, however,
that commencing on the Floating Rate Commencement Date, this Note will bear interest
at the rate determined by reference to the applicable Interest Rate Basis or Interest
Rate Bases: (1) plus or minus the applicable Spread, if

9

 

any; and/or (2) multiplied by the applicable Spread Multiplier, if any. Commencing on
the first Interest Reset Date, the rate at which this Fixed Rate/Floating Rate Note is
payable will be reset as of each Interest Reset Date.

(vii) Inverse Floating Rate Notes. If this Note is specified on the face
hereof as an “Inverse Floating Rate Note”, this Note will bear interest at the Fixed
Interest Rate minus the rate determined by reference to the applicable Interest Rate
Basis or Interest Rate Bases: (1) plus or minus the applicable Spread, if any; and/or
(2) multiplied by the applicable Spread Multiplier, if any; provided, however, that
interest on this Inverse Floating Rate Note will not be less than zero. Commencing on
the first Interest Reset Date, the rate at which interest on this Inverse Floating
Rate Note is payable will be reset as of each Interest Reset Date; provided, however,
that the interest rate in effect for the period, if any, from the Original Issue Date
to the first Interest Reset Date will be the Initial Interest Rate.

(viii) Interest Reset Dates. The period between Interest Reset Dates will be
the “Interest Reset Period.” Unless otherwise specified on the face hereof, the
Interest Reset Dates will be, in the case of this Floating Rate Note if by its terms
it resets: (1) daily—each business day; (2) weekly—the Wednesday of each week, with
the exception of any weekly reset Floating Rate Note as to which the Treasury Rate is
an applicable Interest Rate Basis, which will reset the Tuesday of each week; (3)
monthly—the fifteenth day of each calendar month, with the exception of any monthly
reset Floating Rate Note as to which the Eleventh District Cost of Funds Rate is an
applicable Interest Rate Basis, which will reset on the first calendar day of the
month; (4) quarterly—the fifteenth day of March, June, September and December of each
year; (5) semi-annually—the fifteenth day of the two months of each year specified on
the face hereof; and (6) annually—the fifteenth day of the month of each year
specified on the face hereof; provided, however, that, with respect to a Floating
Rate/Fixed Rate Note, the rate of interest thereon will not reset after the particular
Fixed Rate Commencement Date. If any Interest Reset Date for this Floating Rate Note
would otherwise be a day that is not a Business Day, the particular Interest Reset
Date will be postponed to the next succeeding Business Day, except that in the case of
a Floating Rate Note as to which LIBOR is an applicable Interest Rate Basis and that
Business Day falls in the next succeeding calendar month, the particular Interest
Reset Date will be the immediately preceding Business Day.

(ix) Interest Determination Dates. The interest rate applicable to a Floating
Rate Note for an Interest Reset Period commencing on the related Interest Reset Date
will be determined by reference to the applicable Interest Rate Basis as of the
particular “Interest Determination Date”, which will be: (1) with respect to the
Federal Funds Open Rate—the related Interest Reset Date; (2) with respect to the
Commercial Paper Rate, the Federal Funds Rate and the Prime Rate—the Business Day
immediately preceding the related Interest Reset Date; (3) with respect to the CD Rate
and the CMT Rate—the second Business Day preceding

10

 

the related Interest Reset Date; (4) with respect to the Constant Maturity Swap
Rate—the second U.S. Government Securities business day preceding the related Interest
Reset Date, provided, however, that if after attempting to determine the Constant
Maturity Swap Rate, such rate is not determinable for a particular Interest
Determination Date, then such Interest Determination Date shall be the first U.S.
Government Securities business day preceding the original interest determination date
for which the Constant Maturity Swap Rate can be determined; (5) with respect to the
Eleventh District Cost of Funds Rate—the last working day of the month immediately
preceding the related Interest Reset Date on which the Federal Home Loan Bank of San
Francisco publishes the Eleventh District Index (as defined below); (6) with respect
to LIBOR and EURIBOR—the second London Banking Day (as defined below) preceding the
related Interest Reset Date; and (7) with respect to the Treasury Rate—the day of the
week in which the related Interest Reset Date falls on which day Treasury Bills (as
defined below) are normally auctioned (i.e., Treasury Bills are normally sold at
auction on Monday of each week, unless that day is a legal holiday, in which case the
auction is normally held on the following Tuesday, except that the auction may be held
on the preceding Friday); provided, however, that if an auction is held on the Friday
of the week preceding the related Interest Reset Date, the Interest Determination Date
will be the preceding Friday. The Interest Determination Date pertaining to a Floating
Rate Note, the interest rate of which is determined with reference to two or more
Interest Rate Bases, will be the latest Business Day which is at least two Business
Days before the related Interest Reset Date for the applicable Floating Rate Note on
which each Interest Reset Basis is determinable. “London Banking Day” means a day on
which commercial banks are open for business (including dealings in the LIBOR
Currency) in London.

(x) Calculation Dates. The interest rate applicable to each Interest Reset
Period will be determined by the Calculation Agent on or prior to the Calculation Date
(as defined below), except with respect to LIBOR, EURIBOR and the Eleventh District
Cost of Funds Rate, which will be determined on the particular Interest Determination
Date. Upon request of the Holder of a Floating Rate Note, the Calculation Agent will
disclose the interest rate then in effect and, if determined, the interest rate that
will become effective as a result of a determination made for the next succeeding
Interest Reset Date with respect to such Floating Rate Note. The “Calculation Date”,
if applicable, pertaining to any Interest Determination Date will be the earlier of:
(1) the tenth calendar day after the particular Interest Determination Date or, if
such day is not a Business Day, the next succeeding Business Day; or (2) the Business
Day immediately preceding the applicable Interest Payment Date or the Maturity Date,
as the case may be.

(xi) Maximum or Minimum Interest Rate. If specified on the face hereof, this
Note may have either or both of a Maximum Interest Rate or a Minimum Interest Rate.
If a Maximum Interest Rate is so designated, the interest rate for a

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Floating Rate Note cannot ever exceed such Maximum Interest Rate and in the event that
the interest rate on any Interest Reset Date would exceed such Maximum Interest Rate
(as if no Maximum Interest Rate were in effect) then the interest rate on such
Interest Reset Date shall be the Maximum Interest Rate. If a Minimum Interest Rate is
so designated, the interest rate for a Floating Rate Note cannot ever be less than
such Minimum Interest Rate and in the event that the interest rate on any Interest
Reset Date would be less than such Minimum Interest Rate (as if no Minimum Interest
Rate were in effect) then the interest rate on such Interest Reset Date shall be the
Minimum Interest Rate. Notwithstanding anything to the contrary contained herein, the
interest rate on a Floating Rate Note shall not exceed the maximum interest rate
permitted by applicable law.

(xii) Interest Payments. Unless otherwise specified on the face hereof, the
Interest Payment Dates will be, in the case of a Floating Rate Note which resets: (1)
daily, weekly or monthly—the fifteenth day of each calendar month or on the fifteenth
day of March, June, September and December of each year, as specified on the face
hereof; (2) quarterly—the fifteenth day of March, June, September and December of each
year; (3) semi-annually—the fifteenth day of the two months of each year specified on
the face hereof; and (4) annually—the fifteenth day of the month of each year as
specified on the face hereof. In addition, the Maturity Date will also be an Interest
Payment Date. If any Interest Payment Date other than the Maturity Date for this
Floating Rate Note would otherwise be a day that is not a Business Day, such Interest
Payment Date will be postponed to the next succeeding Business Day, except that in the
case of a Floating Rate Note as to which LIBOR is an applicable Interest Rate Basis
and that Business Day falls in the next succeeding calendar month, the particular
Interest Payment Date will be the immediately preceding Business Day. If the Maturity
Date of a Floating Rate Note falls on a day that is not a Business Day, the Trust will
make the required payment of principal, premium, if any, and interest or other amounts
on the next succeeding Business Day, and no additional interest will accrue in respect
of the payment made on that next succeeding Business Day.

(xiii) Rounding. Unless otherwise specified on the face hereof, all
percentages resulting from any calculation on this Floating Rate Note will be rounded
to the nearest one hundred-thousandth of a percentage point, with five one-millionths
of a percentage point rounded upwards. All dollar amounts used in or resulting from
any calculation on this Floating Rate Note will be rounded, in the case of U.S.
Dollars, to the nearest cent or, in the case of a Foreign Currency, to the nearest
unit (with one-half cent or unit being rounded upwards).

(xiv) Interest Factor. With respect to this Floating Rate Note, accrued
interest is calculated by multiplying the principal amount of such Note by an accrued
interest factor. The accrued interest factor is computed by adding the interest factor
calculated for each day in the particular Interest Reset Period. The interest

12

 

factor for each day will be computed by dividing the interest rate applicable to such
day by 360, in the case of a Floating Rate Note as to which the CD Rate, the
Commercial Paper Rate, the Eleventh District Cost of Funds Rate, the Federal Funds
Open Rate, the Federal Funds Rate, LIBOR, EURIBOR or the Prime Rate is an applicable
Interest Rate Basis, or by the actual number of days in the year, in the case of a
Floating Rate Note as to which the CMT Rate or the Treasury Rate is an applicable
Interest Rate Basis. In the case of a series of Notes that bear interest at floating
rates as to which the Constant Maturity Swap Rate is the Interest Rate Basis, the
interest factor for each day will be computed by dividing the number of days in the
interest period by 360 (the number of days to be calculated on the basis of a year of
360 days with twelve 30-day months (unless (i) the last day of the interest period is
the 31st day of a month but the first day of the interest period is a day
other than the 30th or 31st day of a month, in which case the
month that includes that last day shall not be considered to be shortened to a 30-day
month, or (ii) the last day of the interest period is the last day of the month of
February, in which case the month of February shall not be considered to be lengthened
to a 30-day month)). The interest factor for a Floating Rate Note as to which the
interest rate is calculated with reference to two or more Interest Rate Bases will be
calculated in each period in the same manner as if only the applicable Interest Rate
Basis specified above applied.

(xv) Determination of Interest Rate Basis. The Calculation Agent shall
determine the rate derived from each Interest Rate Basis in accordance with the
following provisions.

(A) CD Rate Notes. If the Interest Rate Basis is the CD Rate, this Note
shall be deemed a “CD Rate Note.” Unless otherwise specified on the face hereof,
“CD Rate” means: (1) the rate on the particular Interest Determination Date for
negotiable United States dollar certificates of deposit having the Index Maturity
specified on the face hereof as published in H.15(519) (as defined below) under the
caption “CDs (secondary market)”; or (2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the related Calculation Date,
the rate on the particular Interest Determination Date for negotiable United States
dollar certificates of deposit of the particular Index Maturity as published in
H.15 Daily Update (as defined below), or other recognized electronic source used
for the purpose of displaying the applicable rate, under the caption “CDs
(secondary market)”; or (3) if the rate referred to in clause (2) is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on the particular Interest Determination Date calculated by the Calculation
Agent as the arithmetic mean of the secondary market offered rates as of 10:00
A.M., New York City time, on that Interest Determination Date, of three leading
non-bank dealers in negotiable United States dollar certificates of deposit in The
City of New York (which may include the purchasing agent or its affiliates)
selected by the Calculation Agent for negotiable United States dollar certificates
of deposit of major United States money market banks for

13

 

negotiable United States certificates of deposit with a remaining maturity closest
to the particular Index Maturity in an amount that is representative for a single
transaction in that market at that time; or (4) if the dealers so selected by the
Calculation Agent are not quoting as mentioned in clause (3), the CD Rate in effect
on the particular Interest Determination Date. “H.15(519)” means the weekly
statistical release designated as H.15(519), or any successor publication,
published by the Board of Governors of the Federal Reserve System. “H.15 Daily
Update” means the daily update of H.15(519), available through the world-wide-web
site of the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/H15/ update, or any successor site or
publication.

(B) CMT Rate Notes. If the Interest Rate Basis is the CMT Rate, this Note
shall be deemed a “CMT Rate Note.” Unless otherwise specified on the face hereof,
“CMT Rate” means:

(1) if CMT Telerate Page 7051 is specified on the
face hereof:

	 	i.	 	the percentage equal to the yield for
United States Treasury securities at “constant maturity” having
the Index Maturity specified on the face hereof as published in
H.15(519) under the caption “Treasury Constant Maturities”, as the
yield is displayed on Telerate (or any successor service) on page
7051 (or any other page as may replace the specified page on that
service) (“Telerate Page 7051”), for the particular Interest
Determination Date; or
	 
	 	ii.	 	if the rate referred to in clause (i)
does not so appear on Telerate Page 7051, the percentage equal to
the yield for United States Treasury securities at “constant
maturity” having the particular Index Maturity and for the
particular Interest Determination Date as published in H.15(519)
under the caption “Treasury Constant Maturities”; or
	 
	 	iii.	 	if the rate referred to in clause
(ii) does not so appear in H.15(519), the rate on the particular
Interest Determination Date for the period of the particular Index
Maturity as may then be published by either the Federal Reserve
System Board of Governors or the United States Department of the
Treasury that the Calculation Agent determines to be comparable to
the rate which would otherwise have been published in H.15(519);
or
	 
	 	iv.	 	if the rate referred to in clause
(iii) is not so published, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield
to maturity based on the arithmetic mean of the secondary market
bid prices at

14

 

	 	 	 	approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three leading primary United States
government securities dealers in The City of New York (which may
include the purchasing agent or its affiliates) (each, a “Reference
Dealer”) selected by the Calculation Agent from five Reference
Dealers selected by the Calculation Agent and eliminating the
highest quotation, or, in the event of equality, one of the
highest, and the lowest quotation or, in the event of equality, one
of the lowest, for United States Treasury securities with an
original maturity equal to the particular Index Maturity, a
remaining term to maturity no more than one year shorter than that
Index Maturity and in a principal amount that is representative for
a single transaction in the securities in that market at that time;
or
	 
	 	v.	 	if fewer than five but more than two
of the prices referred to in clause (iv) are provided as
requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean
of the bid prices obtained and neither the highest nor the lowest
of the quotations shall be eliminated; or
	 
	 	vi.	 	if fewer than three prices referred
to in clause (iv) are provided as requested, the rate on the
particular Interest Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic
mean of the secondary market bid prices as of approximately 3:30
P.M., New York City time, on that Interest Determination Date of
three Reference Dealers selected by the Calculation Agent from
five Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation or, in the event of equality,
one of the highest and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities
with an original maturity greater than the particular Index
Maturity, a remaining term to maturity closest to that Index
Maturity and in a principal amount that is representative for a
single transaction in the securities in that market at that time;
or
	 
	 	vii.	 	if fewer than five but more than two
prices referred to in clause (vi) are provided as requested, the
rate on the particular Interest Determination Date calculated by
the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the
quotations will be eliminated; or

15

 

	 	viii.	 	if fewer than three prices referred
to in clause (vi) are provided as requested, the CMT Rate in
effect on the particular Interest Determination Date; or

(2) if CMT Telerate Page 7052 is specified on the
face hereof:

	 	i.	 	the percentage equal to the one-week
or one-month, as specified on the face hereof, average yield for
United States Treasury securities at “constant maturity” having
the Index Maturity specified on the face hereof as published in
H.15(519) opposite the caption “Treasury Constant Maturities”, as
the yield is displayed on Telerate (or any successor service) (on
page 7052 or any other page as may replace the specified page on
that service) (“Telerate Page 7052”), for the week or month, as
applicable, ended immediately preceding the week or month, as
applicable, in which the particular Interest Determination Date
falls; or
	 
	 	ii.	 	if the rate referred to in clause (i)
does not so appear on Telerate Page 7052, the percentage equal to
the one-week or one-month, as specified on the face hereof,
average yield for United States Treasury securities at “constant
maturity” having the particular Index Maturity and for the week or
month, as applicable, preceding the particular Interest
Determination Date as published in H.15(519) opposite the caption
“Treasury Constant Maturities”; or
	 
	 	iii.	 	if the rate referred to in clause
(ii) does not so appear in H.15(519), the one-week or one-month,
as specified on the face hereof, average yield for United States
Treasury securities at “constant maturity” having the particular
Index Maturity as otherwise announced by the Federal Reserve Bank
of New York for the week or month, as applicable, ended
immediately preceding the week or month, as applicable, in which
the particular Interest Determination Date falls; or
	 
	 	iv.	 	if the rate referred to in clause
(iii) is not so published, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield
to maturity based on the arithmetic mean of the secondary market
bid prices at approximately 3:30 P.M., New York City time, on that
Interest Determination Date of three Reference Dealers selected by
the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in
the event of equality, one of the highest, and the lowest
quotation or, in the event of equality,

16

 

	 	 	 	one of the lowest, for United States Treasury securities with an
original maturity equal to the particular Index Maturity, a
remaining term to maturity no more than one year shorter than that
Index Maturity and in a principal amount that is representative for
a single transaction in the securities in that market at that time;
or
	 
	 	v.	 	if fewer than five but more than two
of the prices referred to in clause (iv) are provided as
requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean
of the bid prices obtained and neither the highest nor the lowest
of the quotations shall be eliminated; or
	 
	 	vi.	 	if fewer than three prices referred
to in clause (iv) are provided as requested, the rate on the
particular Interest Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic
mean of the secondary market bid prices as of approximately 3:30
P.M., New York City time, on that Interest Determination Date of
three Reference Dealers selected by the Calculation Agent from
five Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation or, in the event of equality,
one of the highest and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities
with an original maturity greater than the particular Index
Maturity, a remaining term to maturity closest to that Index
Maturity and in a principal amount that is representative for a
single transaction in the securities in that market at the time;
or
	 
	 	vii.	 	if fewer than five but more than two
prices referred to in clause (vi) are provided as requested, the
rate on the particular Interest Determination Date calculated by
the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest nor the lowest of the
quotations will be eliminated; or
	 
	 	viii.	 	if fewer than three prices referred
to in clause (vi) are provided as requested, the CMT Rate in
effect on that Interest Determination Date.

If two United States Treasury securities with an original maturity greater
than the Index Maturity specified on the face hereof have remaining terms
to maturity equally close to the particular Index Maturity, the quotes for
the United States Treasury security with the shorter original remaining
term to maturity will be used.

17

 

(C) Commercial Paper Rate Notes. If the Interest Rate Basis is the
Commercial Paper Rate, this Note shall be deemed a “Commercial Paper Rate Note.”
Unless otherwise specified on the face hereof, “Commercial Paper Rate” means: (1)
the Money Market Yield (as defined below) on the particular Interest Determination
Date of the rate for commercial paper having the Index Maturity specified on the
face hereof as published in H.15(519) under the caption “Commercial
Paper—Nonfinancial”; or (2) if the rate referred to in clause (1) is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
Money Market Yield of the rate on the particular Interest Determination Date for
commercial paper having the particular Index Maturity as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “Commercial Paper—Nonfinancial”;
or (3) if the rate referred to in clause (2) is not so published by 3:00 P.M., New
York City time, on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the Money Market
Yield of the arithmetic mean of the offered rates at approximately 11:00 A.M., New
York City time, on that Interest Determination Date of three leading dealers of
United States dollar commercial paper in The City of New York (which may include
the purchasing agent or its affiliates) selected by the Calculation Agent for
commercial paper having the particular Index Maturity placed for industrial issuers
whose bond rating is “Aa”, or the equivalent, from a nationally recognized
statistical rating organization; or (4) if the dealers so selected by the
Calculation Agent are not quoting as mentioned in clause (3), the Commercial Paper
Rate in effect on the particular Interest Determination Date. “Money Market Yield”
means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 	 	 
	 
	 	 	 	D x 360	 	 
	 
	 	Money Market Yield =	 	——————	 	x 100
	 
	 	 	 	360 – (D x M)	 	 

where “D” refers to the applicable per annum rate for commercial paper quoted
on a bank discount basis and expressed as a decimal, and “M” refers to the actual
number of days in the applicable Interest Reset Period.

(D) Constant Maturity Swap Rate Notes. If the Interest Rate Basis is the
Constant Maturity Swap Rate, this Note shall be deemed a “Constant Maturity Swap
Rate Note.” Unless otherwise specified on the face hereof, “Constant Maturity Swap
Rate” means: (1) the rate for U.S. dollar swaps with the designated maturity
specified in the applicable pricing supplement, expressed as a percentage, which
appears on the Reuters Screen (or any successor service) ISDAFIX1 Page as of 11:00
A.M., New York City time, on the particular Interest Determination Date; or (2) if
the rate referred to in clause (1) does not appear on the Reuters Screen (or any
successor service) ISDAFIX1 Page by 2:00 P.M., New York City time, on such Interest
Determination Date, a percentage determined on the basis of the mid-market
semi-annual swap rate quotations provided by the reference banks (as defined

18

 

below) as of approximately 11:00 A.M., New York City time, on such Interest
Determination Date, and, for this purpose, the semi-annual swap rate means the mean
of the bid and offered rates for the semi-annual fixed leg, calculated on a 30/360
day count basis, of a fixed-for-floating U.S. dollar interest rate swap transaction
with a term equal to the designated maturity specified in the applicable pricing
supplement commencing on the Interest Reset Date and in a representative amount (as
defined below) with an acknowledged dealer of good credit in the swap market, where
the floating leg, calculated on an actual/360 day count basis, is equivalent to
USD-LIBOR-BBA with a designated maturity specified in the applicable pricing
supplement. The Calculation Agent will request the principal New York City office
of each of the reference banks to provide a quotation of its rate. If at least
three quotations are provided, the rate for that Interest Determination Date will
be the arithmetic mean of the quotations, eliminating the highest quotation (or, in
the event of equality, one of the highest) and the lowest quotation (or, in the
event of equality, one of the lowest); or (3) if at least three quotations are not
received by the Calculation Agent as mentioned in clause (2), the Constant Maturity
Swap Rate in effect on the particular Interest Determination Date. “U.S.
Government Securities business day” means any day except for Saturday, Sunday, or a
day on which The Bond Market Association recommends that the fixed income
departments of its members be closed for the entire day for purposes of trading in
U.S. government securities. “Representative amount” means an amount that is
representative for a single transaction in the relevant market at the relevant
time. “Reference banks” mean five leading swap dealers in the New York City
interbank market, selected by the Calculation Agent, after consultation with us.

(E) Eleventh District Cost of Funds Rate Notes. If the Interest Rate
Basis is the Eleventh District Cost of Funds Rate, this Note shall be deemed an
“Eleventh District Cost of Funds Rate Note.” Unless otherwise specified on the
face hereof, “Eleventh District Cost of Funds Rate” means: (1) the rate equal to
the monthly weighted average cost of funds for the calendar month immediately
preceding the month in which the particular Interest Determination Date falls as
set forth under the caption “11th District” on the display on Telerate (or any
successor service) on page 7058 (or any other page as may replace the specified
page on that service) (“Telerate Page 7058”) as of 11:00 A.M., San Francisco time,
on that Interest Determination Date; or (2) if the rate referred to in clause (1)
does not so appear on Telerate Page 7058, the monthly weighted average cost of
funds paid by member institutions of the Eleventh Federal Home Loan Bank District
that was most recently announced (the “Eleventh District Index”) by the Federal
Home Loan Bank of San Francisco as the cost of funds for the calendar month
immediately preceding that Interest Determination Date; or (3) if the Federal Home
Loan Bank of San Francisco fails to announce the Eleventh District Index on or
prior to the particular Interest Determination Date for the calendar

19

 

month immediately preceding that Interest Determination Date, the Eleventh District
Cost of Funds Rate in effect on the particular Interest Determination Date.

(F) Federal Funds Open Rate Notes. If the Interest Rate Basis is the
Federal Funds Open Rate, this Note shall be deemed a “Federal Funds Open Rate
Note.” Unless otherwise specified on the face hereof, “Federal Funds Open Rate”
means the rate set forth on Telerate (or any successor service) on page 5 (or any
other page as may replace the specified page on that service) for an Interest
Determination Date underneath the caption “FEDERAL FUNDS” in the row titled “OPEN”.
If the rate is not available for an Interest Determination Date, the rate for that
Interest Determination Date shall be the Federal Funds Rate as determined below.

(G) Federal Funds Rate Notes. If the Interest Rate Basis is the Federal
Funds Rate, this Note shall be deemed a “Federal Funds Rate Note.” Unless
otherwise specified on the face hereof, “Federal Funds Rate” means: (1) the rate
on the particular Interest Determination Date for United States dollar federal
funds as published in H.15(519) under the caption “Federal Funds (Effective)” and
displayed on Telerate (or any successor service) on page 120 (or any other page as
may replace the specified page on that service) (“Telerate Page 120”); or (2) if
the rate referred to in clause (1) does not so appear on Telerate Page 120 or is
not so published by 3:00 P.M., New York City time, on the related Calculation Date,
the rate on the particular Interest Determination Date for United States dollar
federal funds as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying the applicable rate, under the
caption “Federal Funds (Effective)”; or (3) if the rate referred to in clause (2)
is not so published by 3:00 P.M., New York City time, on the related Calculation
Date, the rate on the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the rates for the last transaction in
overnight United States dollar federal funds arranged by three leading brokers of
United States dollar federal funds transactions in The City of New York (which may
include the purchasing agent or its affiliates) selected by the Calculation Agent
prior to 9:00 A.M., New York City time, on that Interest Determination Date; or (4)
if the brokers so selected by the Calculation Agent are not quoting as mentioned
in clause (3), the Federal Funds Rate in effect on the particular Interest
Determination Date.

(H) LIBOR Notes. If the Interest Rate Basis is LIBOR, this Note shall be
deemed a “LIBOR Note.” Unless otherwise specified on the face hereof, “LIBOR”
means: (1) if “LIBOR Telerate” is specified on the face hereof or if neither “LIBOR
Reuters” nor “LIBOR Telerate” is specified on the face hereof as the method for
calculating LIBOR, the rate for deposits in the LIBOR Currency having the Index
Maturity specified on the face hereof, commencing on the related Interest Reset
Date, that appears on the LIBOR

20

 

Page (as defined below) as of 11:00 A.M., London time, on the particular Interest
Determination Date; or (2) if “LIBOR Reuters” is specified on the face hereof, the
arithmetic mean of the offered rates, calculated by the Calculation Agent, or the
offered rate, if the LIBOR Page by its terms provides only for a single rate, for
deposits in the LIBOR Currency having the particular Index Maturity, commencing on
the related Interest Reset Date, that appear or appears, as the case may be, on the
LIBOR Page as of 11:00 A.M., London time, on the particular Interest Determination
Date; or (3) if fewer than two offered rates appear, or no rate appears, as the
case may be, on the particular Interest Determination Date on the LIBOR Page as
specified in clause (1) or (2), as applicable, the rate calculated by the
Calculation Agent of at least two offered quotations obtained by the Calculation
Agent after requesting the principal London offices of each of four major reference
banks (which may include affiliates of the purchasing agent) in the London
interbank market to provide the Calculation Agent with its offered quotation for
deposits in the LIBOR Currency for the period of the particular Index Maturity,
commencing on the related Interest Reset Date, to prime banks in the London
interbank market at approximately 11:00 A.M., London time, on that Interest
Determination Date and in a principal amount that is representative for a single
transaction in the LIBOR Currency in that market at that time; or (4) if fewer than
two offered quotations referred to in clause (3) are provided as requested, the
rate calculated by the Calculation Agent as the arithmetic mean of the rates quoted
at approximately 11:00 A.M., in the applicable Principal Financial Center, on the
particular Interest Determination Date by three major banks (which may include
affiliates of the purchasing agent) in that Principal Financial Center selected by
the Calculation Agent for loans in the LIBOR Currency to leading European banks,
having the particular Index Maturity and in a principal amount that is
representative for a single transaction in the LIBOR Currency in that market at
that time; or (5) if the banks so selected by the Calculation Agent are not quoting
as mentioned in clause (4), LIBOR in effect on the particular Interest
Determination Date. “LIBOR Currency” means the currency specified on the face
hereof as to which LIBOR shall be calculated or, if no currency is specified on the
face hereof, United States Dollars. “LIBOR Page” means either: (1) if “LIBOR
Reuters” is specified on the face hereof, the display on the Reuter Monitor Money
Rates Service (or any successor service) on the page specified on the face hereof
(or any other page as may replace that page on that service) for the purpose of
displaying the London interbank rates of major banks for the LIBOR Currency; or (2)
if “LIBOR Telerate” is specified on the face hereof or neither “LIBOR Reuters” nor
“LIBOR Telerate” is specified on the face hereof as the method for calculating
LIBOR, the display on Telerate (or any successor service) on the page specified on
the face hereof (or any other page as may replace such page on such service) for
the purpose of displaying the London interbank rates of major banks for the LIBOR
Currency.

21

 

(I) EURIBOR Notes. If the Interest Rate Basis is EURIBOR, this Note shall
be deemed a “EURIBOR Note.” Unless otherwise specified on the face hereof,
“EURIBOR” means: (1) with respect to any Interest Determination Date relating to
this EURIBOR Note (a “EURIBOR Interest Determination Date”), the rate for deposits
in euros as sponsored, calculated and published jointly by the European Banking
Federation and ACI – The Financial Market Association, or any company established
by the joint sponsors for purposes of compiling and publishing those rates, having
the Index Maturity specified on the face hereof, commencing on the applicable
Interest Reset Date, as the rate appears on Telerate or any successor service, on
page 248 (or any other page as may replace that specified page on the service)
(“Telerate Page 248”) as of 11:00 A.M., Brussels time, on the applicable EURIBOR
Interest Determination Date; or (2) if such rate does not appear on Telerate Page
248, or is not so published by 11:00 A.M., Brussels time, on the applicable EURIBOR
Interest Determination Date, such rate will be calculated by the Calculation Agent
and will be the arithmetic mean of at least two quotations obtained by the
Calculation Agent after requesting the principal Euro-zone (as defined below)
offices of four major banks in the Euro-zone interbank market to provide the
Calculation Agent with its offered quotation for deposits in euros for the period
of the Index Maturity specified on the face hereof, commencing on the applicable
Interest Reset Date, to prime banks in the Euro-zone interbank market at
approximately 11:00 A.M., Brussels time, on the applicable EURIBOR Interest
Determination Date and in a principal amount not less than the equivalent of $1
million in euros that is representative for a single transaction in euro in the
market at that time; or (3) if fewer than two such quotations are so provided, the
rate on the applicable EURIBOR Interest Determination Date will be calculated by
the Calculation Agent and will be the arithmetic mean of the rates quoted at
approximately 11:00 A.M., Brussels time, on such EURIBOR Interest Determination
Date by four major banks in the Euro-zone for loans in euro to leading European
banks, having the Index Maturity specified on the face hereof, commencing on the
applicable Interest Reset Date and in a principal amount not less than the
equivalent of $1 million in euros that is representative for a single transaction
in euros in the market at that time; or (4) if the banks so selected by the
Calculation Agent are not quoting as mentioned above, EURIBOR will be EURIBOR in
effect on the applicable EURIBOR Interest Determination Date. “Euro-zone” means the
region comprised of member states of the European Union that have adopted the
single currency in accordance with the treaty establishing the European Community,
as amended by the treaty on European Union.

(J) Prime Rate Notes. If the Interest Rate Basis is the Prime Rate, this
Note shall be deemed a “Prime Rate Note.” Unless otherwise specified on the face
hereof, “Prime Rate” means: (1) the rate on the particular Interest Determination
Date as published in H.15(519) under the caption “Bank Prime Loan”; or (2) if the
rate referred to in clause (1) is not so published by 3:00

22

 

P.M., New York City time, on the related Calculation Date, the rate on the
particular Interest Determination Date as published in H.15 Daily Update, or such
other recognized electronic source used for the purpose of displaying the
applicable rate, under the caption “Bank Prime Loan”; or (3) if the rate referred
to in clause (2) is not so published by 3:00 P.M., New York City time, on the
related Calculation Date, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Screen US PRIME 1 Page
(as defined below) as the applicable bank’s prime rate or base lending rate as of
11:00 A.M., New York City time, on that Interest Determination Date; or (4) if
fewer than four rates referred to in clause (3) are so published by 3:00 p.m., New
York City time, on the related Calculation Date, the rate calculated by the
Calculation Agent as the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the prime rates or base lending rates
quoted on the basis of the actual number of days in the year divided by a 360-day
year as of the close of business on that Interest Determination Date by three major
banks (which may include affiliates of the purchasing agent) in The City of New
York selected by the Calculation Agent; or (5) if the banks so selected by the
Calculation Agent are not quoting as mentioned in clause (4), the Prime Rate in
effect on the particular Interest Determination Date. “Reuters Screen US PRIME 1
Page” means the display on the Reuter Monitor Money Rates Service (or any successor
service) on the “US PRIME 1” page (or any other page as may replace that page on
that service) for the purpose of displaying prime rates or base lending rates of
major United States banks.

(K) Treasury Rate Notes. If the Interest Rate Basis is the Treasury Rate,
this Note shall be deemed a “Treasury Rate Note.” Unless otherwise specified on
the face hereof, “Treasury Rate” means: (1) the rate from the auction held on the
Interest Determination Date (the “Auction”) of direct obligations of the United
States (“Treasury Bills”) having the Index Maturity specified on the face hereof
under the caption “INVESTMENT RATE” on the display on Telerate (or any successor
service) on page 56 (or any other page as may replace that page on that service)
(“Telerate Page 56”) or page 57 (or any other page as may replace that page on that
service) (“Telerate Page 57”); or (2) if the rate referred to in clause (1) is not
so published by 3:00 P.M., New York City time, on the related Calculation Date, the
Bond Equivalent Yield (as defined below) of the rate for the applicable Treasury
Bills as published in H.15 Daily Update, or another recognized electronic source
used for the purpose of displaying the applicable rate, under the caption “U.S.
Government Securities/Treasury Bills/Auction High”; or (3) if the rate referred to
in clause (2) is not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable
Treasury Bills as announced by the United States Department of the Treasury; or (4)
if the rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the

23

 

Auction is not held, the Bond Equivalent Yield of the rate on the particular
Interest Determination Date of the applicable Treasury Bills as published in
H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary
Market”; or (5) if the rate referred to in clause (4) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on the
particular Interest Determination Date of the applicable Treasury Bills as
published in H.15 Daily Update, or another recognized electronic source used for
the purpose of displaying the applicable rate, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”; or (6) if the rate referred to in
clause (5) is not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the rate on the particular Interest Determination Date calculated
by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the
secondary market bid rates, as of approximately 3:30 P.M., New York City time, on
that Interest Determination Date, of three primary United States government
securities dealers (which may include the purchasing agent or its affiliates)
selected by the Calculation Agent, for the issue of Treasury Bills with a remaining
maturity closest to the Index Maturity specified on the face hereof; or (7) if the
dealers so selected by the Calculation Agent are not quoting as mentioned in clause
(6), the Treasury Rate in effect on the particular Interest Determination Date.
“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in
accordance with the following formula:

	 	 	 	 	 	 	 
	 

	 	 	 	D x N	 	 
	 

	 	Bond Equivalent Yield =
	 	360 – (D x M)
	 	x 100
	 

	 	 	 	 	 	 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on
a bank discount basis and expressed as a decimal, “N” refers to 365 or 366, as the
case may be, and “M” refers to the actual number of days in the applicable Interest
Reset Period.

	 	(c)	 	Discount Notes. If this Note is specified on the face hereof as a
“Discount Note”:

(i) Principal and Interest. This Note will bear interest in the same manner as
set forth in Section 3(a) above, and payments of principal and interest shall be made
as set forth on the face hereof. Discount Notes may not bear any interest currently
or may bear interest at a rate that is below market rates at the time of issuance.
The difference between the Issue Price of a Discount Note and par is referred to as
the “Discount”.

(ii) Redemption; Repayment; Acceleration. In the event a Discount Note is
redeemed, repaid or accelerated, the amount payable to the Holder of such Discount
Note will be equal to the sum of: (A) the Issue Price (increased by any accruals of
Discount) and, in the event of any redemption of such Discount Note, if applicable,
multiplied by the Initial Redemption Percentage (as adjusted by the Annual Redemption
Percentage Reduction, if applicable); and (B) any

24

 

unpaid interest accrued on such Discount Note to the Maturity Date (“Amortized Face
Amount”). Unless otherwise specified on the face hereof, for purposes of determining
the amount of Discount that has accrued as of any date on which a redemption,
repayment or acceleration of maturity occurs for a Discount Note, a Discount will be
accrued using a constant yield method. The constant yield will be calculated using a
30-day month, 360-day year convention, a compounding period that, except for the
Initial Period (as defined below), corresponds to the shortest period between Interest
Payment Dates for the applicable Discount Note (with ratable accruals within a
compounding period), a coupon rate equal to the initial coupon rate applicable to the
applicable Discount Note and an assumption that the maturity of such Discount Note
will not be accelerated. If the period from the date of issue to the first Interest
Payment Date for a Discount Note (the “Initial Period”) is shorter than the
compounding period for such Discount Note, a proportionate amount of the yield for an
entire compounding period will be accrued. If the Initial Period is longer than the
compounding period, then the period will be divided into a regular compounding period
and a short period with the short period being treated as provided above.

     (d) Amortizing Notes. If this Note is specified on the face hereof as an “Amortizing
Note”, this Note will bear interest in the same manner as set forth in Section 3(a) above, and
payments on principal, premium, if any, and interest will be made as set forth on the face hereof
and/or in accordance with Schedule I attached hereto. The Trust will make payments
combining principal, premium (if any) and interest, if applicable, on the dates and in the amounts
set forth in the table appearing in Schedule I attached to this Note or in accordance with
the formula specified on the face hereof. Payments made hereon will be applied first to interest
due and payable hereon and then to the reduction of the unpaid principal amount hereof.

Section 4. Redemption. If no redemption right is set forth on the face
hereof, this Note may not be redeemed prior to the Stated Maturity Date, except as
set forth in this Note, in the Indenture or in Section 10 hereof. In the case of a
Note that is not a Discount Note, if a redemption right is set forth on the face of
this Note, the Trust shall elect to redeem this Note on the Interest Payment Date
after the Initial Redemption Date set forth on the face hereof on which the Funding
Agreement is to be redeemed in whole or in part by ING USA Annuity and Life
Insurance Company (“ING USA”) (each, a “Redemption Date”), in which case this Note
must be redeemed on such Redemption Date in whole or in part, as applicable, prior
to the Stated Maturity Date, in increments of $1,000 at the applicable Redemption
Price (as defined below), together with unpaid interest, if any, accrued thereon
to, but excluding, the applicable Redemption Date. “Redemption Price” shall mean
an amount equal to the Initial Redemption Percentage (as adjusted by the Annual
Redemption Percentage Reduction, if applicable) multiplied by the unpaid Principal
Amount of this Note to be redeemed. The unpaid Principal Amount of this Note to be
redeemed shall be determined by multiplying (1) the Outstanding Principal Amount of
this Note by (2) the quotient derived by

25

 

dividing (A) the outstanding principal amount of the Funding Agreement to be
redeemed by ING USA by (B) the outstanding principal amount of the Funding
Agreement. The Initial Redemption Percentage, if any, applicable to this Note
shall decline at each anniversary of the Initial Redemption Date by an amount equal
to the applicable Annual Redemption Percentage Reduction, if any, until the
Redemption Price is equal to 100% of the unpaid amount thereof to be redeemed.
Notice must be given not more than sixty (60) nor less than thirty (30) calendar
days prior to the proposed Redemption Date. In the event of redemption of this
Note in part only, a new Note for the unredeemed portion hereof shall be issued in
the name of the Holder hereof upon the surrender hereof. If less than all of this
Note is redeemed, the Indenture Trustee will select by lot or, in its discretion,
on a pro rata basis, the amount of the interest of each direct participant in the
Trust to be redeemed.

Section 5. Sinking Funds and Amortizing Notes. Unless specified on the
face hereof, this Note will not be subject to, or entitled to the benefit of, any
sinking fund. If this Note is an Amortizing Note, this Note may pay an amount in
respect of both interest and principal amortized over the life of this Note.

Section 6. Repayment. If no repayment right is set forth on the face
hereof, this Note may not be repaid at the option of the Holder hereof prior to the
Stated Maturity Date. If a repayment right is granted on the face of this Note,
this Note may be subject to repayment at the option of the Holder on any Interest
Payment Date on and after the date, if any, indicated on the face hereof (each, a
“Repayment Date”). On any Repayment Date, unless otherwise specified on the face
hereof, this Note shall be repayable in whole or in part in increments of $1,000 at
the option of the Holder hereof at a repayment price equal to 100% of the Principal
Amount to be repaid, together with interest thereon payable to the Repayment Date.
For this Note to be repaid in whole or in part at the option of the Holder hereof,
this Note must be received by the Indenture Trustee, with the form entitled “Option
to Elect Repayment”, below, duly completed by the Indenture Trustee. Exercise of
such repayment option by the Holder hereof shall be irrevocable.

Section 7. Modifications and Waivers. The Indenture contains provisions
permitting the Trust and the Indenture Trustee (1) at any time and from time to
time without notice to, or the consent of, the Holders of any Notes issued under
the Indenture to enter into one or more supplemental indentures for certain
enumerated purposes and (2) with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Notes affected thereby, to enter into
one or more supplemental indentures for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, the Indenture or of
modifying in any manner the rights of Holders of Notes under the Indenture;
provided, that, with respect to certain enumerated provisions, no such supplemental
indenture shall be entered into

26

 

without the consent of the Holder of each Note affected thereby. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Note or such other Notes.

Section 8. Obligations Unconditional. No reference herein to the
Indenture and no provisions of this Note or of the Indenture shall impair the right
of each Holder of any Note, which is absolute and unconditional, to receive payment
of the principal of, and any interest on, and premium, if any, on, such Note on the
respective Stated Maturity Date or redemption date thereof and to institute suit
for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

Section 9. Events of Default. If an Event of Default with respect to this
Note shall occur and be continuing, the principal of, and all other amounts payable
on, the Notes may be declared due and payable, or may be automatically accelerated,
as the case may be, in the manner and with the effect provided in the Indenture.
In the event that this Note is a Discount Note, the amount of principal of this
Note that becomes due and payable upon such acceleration shall be equal to the
amount calculated as set forth in Section 3(c) hereof.

Section 10. Withholding; Tax Event and Redemption. All amounts due on
this Note will be made without any applicable withholding or deduction for or on
account of any present or future taxes, duties, levies, assessments or other
governmental charges of whatever nature imposed or levied by or on behalf of any
governmental authority, unless such withholding or deduction is required by law.
Unless otherwise specified on the face hereof, the Trust will not pay any
additional amounts to the Holder of this Note in respect of such withholding or
deduction, any such withholding or deduction will not give rise to an event of
default or any independent right or obligation to redeem this Note and the Holder
will be deemed for all purposes to have received cash in an amount equal to the
portion of such withholding or deduction that is attributable to such Holder’s
interest in this Note as equitably determined by the Trust.

If (1) a Tax Event (defined below) as to the Funding Agreement occurs and (2) ING
USA redeems the Funding Agreement in whole or in part, the Trust will redeem the
Notes, subject to the terms and conditions of Section 2.04 of the Standard
Indenture Terms, at the Tax Event Redemption Price (defined below) together with
unpaid interest accrued thereon to the applicable redemption date. “Tax Event”
means that ING USA shall have received an opinion of independent legal counsel
stating in effect that as a result of (a) any amendment to, or change (including
any announced prospective change)

27

 

in, the laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority thereof or therein or (b) any amendment to, or
change in, an interpretation or application of any such laws or regulations by any
governmental authority in the United States, which amendment or change is enacted,
promulgated, issued or announced on or after the effective date of the Funding
Agreement, there is more than an insubstantial risk that (i) the Trust is, or will
be within ninety (90) days of the date thereof, subject to U.S. federal income tax
with respect to interest accrued or received on the Funding Agreement or (ii) the
Trust is, or will be within ninety (90) days of the date thereof, subject to more
than a de minimis amount of taxes, duties or other governmental charges. “Tax
Event Redemption Price” means an amount equal to the unpaid principal amount of
this Note to be redeemed, which shall be determined by multiplying (1) the
Outstanding Principal Amount of this Note by (2) the quotient derived by dividing
(A) the outstanding principal amount to be redeemed by ING USA of the Funding
Agreement by (B) the outstanding principal amount of the Funding Agreement.

Section 11. Listing. Unless otherwise specified on the face hereof, this
Note will not be listed on any securities exchange.

Section 12. Collateral. The Collateral for this Note includes the Funding
Agreement specified on the face hereof.

Section 13. No Recourse Against Certain Persons. No recourse shall be had
for the payment of any principal, interest or any other sums at any time owing
under the terms of this Note, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against the Nonrecourse Parties, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such personal liability being, by the acceptance hereof
and as part of the consideration for issue hereof, expressly waived and released.

Section 14. Miscellaneous.

     (a) This Note is issuable only as a registered Note without coupons in denominations of
$1,000 and any integral multiple in excess thereof unless otherwise specified on the face of this
Note.

     (b) Prior to due presentment for registration of transfer of this Note, the Trust, the
Indenture Trustee, the Registrar, the Paying Agent, any Agent and any other agent of the Trust or
the Indenture Trustee may treat the Person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment as herein provided and for all other purposes, whether
or not this Note shall be overdue, and none of the Trust, the Indenture Trustee, the Registrar, the
Paying Agent, any Agent or any other agent of the Trust or the Indenture Trustee shall be affected
by notice to the contrary.

28

 

     (c) The Notes are being issued by means of a book-entry-only system with no physical
distribution of certificates to be made except as provided in the Indenture. The book-entry system
maintained by DTC will evidence ownership of the Notes, with transfers of ownership effected on the
records of DTC and its participants pursuant to rules and procedures established by DTC and its
participants. The Trust and the Indenture Trustee will recognize Cede & Co., as nominee of DTC, as
the registered owner of the Notes, as the Holder of the Notes for all purposes, including payment
of principal, premium (if any) and interest, notices and voting. Transfer of principal, premium
(if any) and interest to participants of DTC will be the responsibility of DTC, and transfer of
principal, premium (if any) and interest to beneficial holders of the Notes by participants of DTC
will be the responsibility of such participants and other nominees of such beneficial holders. So
long as the book-entry system is in effect, the selection of any Notes to be redeemed or repaid
will be determined by DTC pursuant to rules and procedures established by DTC and its participants.
Neither the Trust nor the Indenture Trustee shall be responsible or liable for such transfers or
payments or for maintaining, supervising or reviewing the records maintained by DTC, its
participants or persons acting through such participants.

     (d) This Note or portion hereof may not be exchanged for Definitive Notes, except in the
limited circumstances provided for in the Indenture. The transfer or exchange of Definitive Notes
shall be subject to the terms of the Indenture. No service charge will be made for any
registration of transfer or exchange, but the Trust may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

Section 15. GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

29

 

OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably request(s) and instruct(s) the Trust to repay this Note (or
portion hereof specified below) pursuant to its terms at a price equal to the Principal Amount
hereof together with interest to the repayment date, to the undersigned, at:

      

      

(Please print or typewrite name and address of the undersigned).

     For this Note to be repaid, the Indenture Trustee (or the Paying Agent on behalf of the
Indenture Trustee) must receive at its Corporate Trust Office, or at such other place or places of
which the Trust shall from time to time notify the Holder of this Note, not more than sixty (60)
nor less than thirty (30) days prior to a Repayment Date, if any, shown on the face of this Note,
this Note with this “Option to Elect Repayment” form duly completed.

     If less than the entire Principal Amount of this Note is to be repaid, specify the portion
hereof (which shall be in increments of $1,000) which the Holder elects to have repaid and specify
the denomination or denominations (which shall be $                     or an integral multiple of $1,000 in
excess of $                    ) of the Notes to be issued to the Holder for the portion of this Note not being
repaid (in the absence of any such specification, one such Note will be issued for the portion not
being repaid).

	 	 	 	 	 	 	 	 	 	 	 	 	 
	$
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	DATE:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	NOTICE: The signature on this Option to Elect	 	 
	 	 	 	 	 	 	 	 	Repayment must correspond with the name as	 	 
	 	 	 	 	 	 	 	 	written upon the face of this Note in every	 	 
	 	 	 	 	 	 	 	 	particular, without alteration or enlargement	 	 
	 	 	 	 	 	 	 	 	or any change whatever.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Principal Amount to be repaid, if amount to be	 	 	 	Fill in for registration of Notes	 	 
	repaid is less than the Principal Amount of this	 	 	 	if to be issued otherwise than	 	 
	Note (Principal Amount remaining must be an	 	 	 	to the registered Holder:	 	 
	authorized denomination)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	$

	 	 	 	 	 	 	 	Address:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	(Please print name and
address including zip code)	 	 

SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER:

30

 

SCHEDULE I

Amortization Table or Formula

Not applicable

31

 

SCHEDULE II

SPREAD:

     The Spread for this Note for the indicated periods is as follows:

	 	 	 	 	 
	Period	 	Spread
	From and including the Original Issue Date to but excluding the
Interest Payment Date occurring in September 2009
	 	 	0.03	%
	From and including the Interest Payment Date occurring in September
2009 to but excluding the Interest Payment Date occurring in
September 2010
	 	 	0.04	%
	From and including the Interest Payment Date occurring in September
2010 to but excluding the Interest Payment Date occurring in
September 2011
	 	 	0.05	%
	From and including the Interest Payment Date occurring in September
2011 to but excluding the Interest Payment Date occurring in
September 2013
	 	 	0.06	%
	From and including the Interest Payment Date occurring in September
2013 to but excluding the Interest Payment Date occurring in
September 2015
	 	 	0.07	%
	From and including the Interest Payment Date occurring in September
2015 to but excluding the Final Stated Maturity Date
	 	 	0.08	%

EXTENSION ELECTION / CONTINGENT REDEMPTION:

     This Note will mature on the Initial Stated Maturity Date, unless the maturity of all or a
portion of the Principal Amount of this Note is extended in accordance with the procedures
described below. In no event shall the maturity of this Note be extended beyond the Final Stated
Maturity Date.

     During a notice period relating to an Election Date (as defined below), the holder of this
Note may elect to extend the maturity of all or any portion of the Principal Amount of this Note
(in Authorized Denominations) so that the maturity of this Note will be extended to the
Corresponding Maturity Date (as defined below) for the immediately following Election Date;
provided, however, that if such Corresponding Maturity Date is not a Business Day, the maturity of
this Note will be the immediately succeeding Business Day. The Election Dates will take place
quarterly on the 29th day of each March, June, September and December, commencing on
December 29, 2006 and ending on June 29, 2014, except that if any Election Date would otherwise be
a day that is not a Business Day, such Election Date will be the immediately preceding Business
Day. The respective Corresponding Maturity Date for each Election Date is the 29th day
of the calendar month which is three calendar months after (1) the Initial Stated Maturity Date (in
the case of an initial extension of maturity) or (2) any later date to which the Stated Maturity
Date of this Note has previously been extended (the “Corresponding Maturity Date”). If the holder
of this Note fails to make an effective election to extend all or a portion of the maturity of this
Note, the Stated Maturity Date of this Note (or portion thereof) will be the Corresponding Maturity
Date for the immediately preceding Election Date. For example, if the holder of this Note fails to

32

 

make an effective election to extend a portion of this Note on the Election Date occurring in
December 2006, such portion will mature on December 29, 2008. Similarly, if the holder of this
Note elects to extend a portion of this Note on the Election Date occurring in December 2006, such
portion of this Note will then be scheduled to mature (barring a subsequent valid election) on
March 29, 2009.

     To make an effective election on any Election Date, the holder of this Note must deliver a
notice of election substantially in the form attached hereto as Exhibit A (each, an
“Election Notice”) during the notice period for such Election Date. The notice period for an
Election Date begins on the 10th Business Day immediately preceding the Election Date
and ends on the Election Date. The holder of this Note must deliver the Election Notice to the
Paying Agent through the normal clearing system channels (described in more detail below), no later
than the close of business in New York City on the last Business Day in the notice period, at which
time such Election Notice becomes irrevocable.

     If, with respect to any Election Date, the holder of this Note does not make an election to
extend the maturity of all or a portion of the Principal Amount of this Note, the Principal Amount
of this Note will become due and payable on the earlier of the Initial Stated Maturity Date or such
later Corresponding Maturity Date related to the relevant Election Date on which this Note was not
extended. The Principal Amount of this Note for which such election is not exercised will be
represented by a new Note substantially in the form attached hereto as Exhibit B (each, a
“Short-Term Note”) issued on such Election Date and Schedule A hereto shall be annotated as
of such Election Date to reflect the corresponding decrease in the Principal Amount hereof. The
new Note so issued will have the same terms as this Note, except that it will not be extendible,
will have a separate CUSIP number, will be subject to Contingent Redemption (as defined below) and
its maturity date will be the earlier of the Initial Stated Maturity Date or such later
Corresponding Maturity Date related to the relevant Election Date on which this Note was not
extended. The failure to elect to extend the maturity of all or any portion of this Note will be
irrevocable and will be binding upon any subsequent holder of this Note.

     If an effective election to extend the maturity of all or any portion of this Note has not
been received, the Trust may elect to redeem this Note, or such portion thereof, as applicable, on
any Interest Payment Date occurring prior to the Final Stated Maturity Date, if any (a “Contingent Redemption”), upon not less than five
(5) Business Days’ notice to the holder of this Note. The Trust will redeem this Note at a
redemption price equal to 100% of the Principal Amount of this Note to be redeemed plus any accrued
and unpaid interest thereon. For the avoidance of doubt, the Trust will elect to redeem this Note
solely upon the election of ING USA to redeem a corresponding amount under the Funding Agreement.

     This Note will be issued in registered global form and will remain on deposit with DTC, the
depositary for this Note. Therefore, the holder of this Note must exercise the option to extend
the maturity of this Note through the depositary. To ensure that the depositary receives timely
notice of an election to extend the maturity of all or a portion of

33

 

this Note by the holder of this Note so that the depositary can deliver notice of such election to
Citibank, N.A., as paying agent, prior to the close of business in New York City on the last
Business Day in the notice period, the holder of this Note must instruct the direct or indirect
participant through which it holds an interest in this Note in accordance with the then applicable
operating procedures of the depositary.

     The depositary must receive any notice of election from its participants no later than 12:00
noon (New York City time) on the last Business Day in the notice period for the depositary to
deliver timely notice of the election by the holder of this Note to Citibank, N.A., as paying
agent. Different firms have different deadlines for accepting instructions from their customers.
The holder of this Note should consult the direct or indirect participant through which it holds an
interest in this Note to ascertain the deadline for ensuring that timely notice will be delivered
to the depositary.

34

 

CUSIP Numbers:

     The CUSIP numbers for each possible Short-Term Note shall be as follows with regard to each
possible maturity date for such Short-Term Note:

	 	 	 
	CUSIP Number	 	Maturity Date
	449822AA3
	 	December 29, 2008
	449822AB1

	 	March 30, 2009
	449822AC9

	 	June 29, 2009
	449822AD7

	 	September 29, 2009
	449822AE5

	 	December 29, 2009
	449822AF2

	 	March 29, 2010
	449822AG0

	 	June 29, 2010
	449822AH8

	 	September 29, 2010
	449822AJ4
	 	December 29, 2010
	449822AK1

	 	March 29, 2011
	449822AL9

	 	June 29, 2011
	449822AM7

	 	September 29, 2011
	449822AN5

	 	December 29, 2011
	449822AP0

	 	March 29, 2012
	449822AQ8

	 	June 29, 2012
	449822AR6

	 	September 28, 2012
	449822AS4

	 	December 31, 2012
	449822AT2

	 	March 29, 2013
	449822AU9

	 	June 28, 2013
	449822AV7

	 	September 30, 2013
	449822AW5

	 	December 30, 2013
	449822AX3

	 	March 31, 2014
	449822AY1

	 	June 30, 2014
	449822AZ8

	 	September 29, 2014
	449822BA2

	 	December 29, 2014
	449822BB0

	 	March 30, 2015
	449822BC8

	 	June 29, 2015
	449822BD6

	 	September 29, 2015
	449822BE4

	 	December 29, 2015
	449822BF1

	 	March 29, 2016
	449822BG9

	 	June 29, 2016
	449822BH7

	 	September 29, 2016

35

 

SCHEDULE A

     The initial aggregate Principal Amount of the Note evidenced by the Certificate to which
this Schedule is attached is $400,000,000. The notations on the following table evidence
decreases in the aggregate Principal Amount of the Note evidenced by such Certificate:

	 	 	 	 	 	 	 
	 	 	 	 	Principal Amount of the	 	 
	 	 	Decreases in Principal	 	Note Remaining After	 	Notation by Security
	Election Date	 	Amount of the Note	 	Such Decrease	 	Registrar
	 

	 	 
	 	 
	 	 

36

 

EXHIBIT A

Form of Election Notice

The undersigned hereby elects to extend the maturity of the ING USA Global Funding Trust 3 Secured
Medium-Term Note (CUSIP 449822BH7) (the “Note”) (or the portion thereof specified below) with the
effect provided in said Note by delivering this Election Notice duly completed by the holder of
said Note, and in the event of an election to extend the maturity of only a portion of the
principal amount of said Note, by surrendering said Note to the Paying Agent at the following
address:

Citibank, N.A.

Agency & Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Facsimile: (212) 816-5527

Attention: Agency & Trust, ING USA Global Funding Trust

or such other address of which the Paying Agent shall from time to time notify the Holders of the
Notes.

If the option to extend the maturity of less than the entire principal amount of said Note is
elected, specify the portion of said Note (which shall be $100,000 or an integral multiple of
$1,000 in excess thereof) as to which the holder elects to extend the maturity: $                    ; and
specify the denomination or denominations (which shall be $100,000 or an integral multiple of
$1,000 in excess thereof) of the Notes in the form attached to said Note as Exhibit B to
be issued to the holder for the portion of said Note to which the option to extend the maturity
is not being elected (in absence of any such specification one such Note in the form of said
Exhibit B will be issued for the portion as to which the option to extend maturity is not
being made): $                    .

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

NOTICE: The signature on this Election
Notice must correspond with the name as
written upon the face of the Note in every
particular, without alteration or
enlargement or any change whatever.
	 	 

1

 

EXHIBIT B

Form of Short-Term Note

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE (HEREINAFTER DEFINED) AND IS
REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE OF A DEPOSITARY.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE 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 THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE TRUST (HEREINAFTER DEFINED) OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND UNLESS ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR 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.

	 	 	 
	CUSIP No.:

	 	Principal Amount: U.S. $

ING USA GLOBAL FUNDING TRUST 3

SECURED MEDIUM-TERM NOTES

Original Issue Date:

Issue Price: 100%

Stated Maturity Date:• , or, if such day is not a Business

  Day, the immediately succeeding Business Day

Settlement Date:

Securities Exchange Listing: o Yes þ No. If yes,

     indicate name(s) of Securities Exchange(s):

                                             .

Depositary: The Depository Trust Company

Authorized Denominations: $100,000 and integral

     multiples of $1,000 in excess thereof.

Collateral held in the Trust: ING USA Annuity and Life

  Insurance Company Funding Agreement No. RMTN-

	 	 	 
	Floating

	 	Rate Note: þ Yes o No. If yes,
	 

	 	Regular Floating Rate Notes þ
	 

	 	Inverse Floating Rate Notes o

Floating Rate/Fixed Rate Notes o

Fixed Rate/Floating Rate Notes o

Interest Rate Basis(es): Three Month USD
	LIBOR
	 	 
	 

	 	LIBOR þ
	 

	 	o LIBOR Reuters Page:
	 

	 	þ LIBOR Telerate Page: 3750

LIBOR Currency: U.S. Dollars 

EURIBOR o

2

 

  3, all proceeds of the Funding Agreement and all

  rights and books and records pertaining to the

  foregoing.

Additional Amounts to be Paid: o Yes þ No

Interest Rate or Formula: Three Month USD LIBOR

  plus the applicable Spread set forth in the attached   
  Schedule II

Fixed Rate Note: o Yes þ No. If yes,

     Interest Rate:

     Interest Payment Frequency:

     Interest Payment Dates:

     Day Count Convention:

     Additional/Other Terms:

Amortizing Note: o Yes þ No. If yes,

     Amortization schedule or formula:

     Additional/Other Terms:

Discount Note: o Yes þ No. If yes,

     Total Amount of Discount:

     Initial Accrual Period of Discount:

     Interest Payment Dates:

Additional/Other Terms:

Optional Redemption Provisions: þ Yes o No.

If yes,

     Terms: See attached Schedule II

Repayment Provisions: o Yes þ No. If yes,

     Repayment Date(s):

     Repayment Price:

     Additional/Other Terms:

     CMT Rate o

           Designated CMT Telerate Page:

               If Telerate Page 7052:

               o Weekly Average

               o Monthly Average

           Designated CMT Maturity Index:

     CD Rate o 

     Commercial Paper Rate o

     Constant Maturity Swap Rate o

     Eleventh District Cost of Funds Rate o

     Federal Funds Open Rate o

     Federal Funds Rate o

     Prime Rate o

     Treasury Rate o

     Index Maturity: Not applicable

     Spread and/or Spread Multiplier: See attached

Schedule II

     Initial Interest Rate, if any: Not applicable

     Initial Interest Reset Date:• , provided that if

such day is not a Business Day, such Initial

Interest Reset Date will be the next succeeding Business Day.

     Interest Reset Dates: Each Interest Payment

Date

     Interest Rate Determination Date(s): The

second London banking day preceding the related
Interest Reset Date.

     Interest Payment Dates: Quarterly on the 29th

day of every March, June, September and December,

provided that if such day is not a Business Day, such

Interest Payment Date will be the next succeeding

Business Day.

     Maximum Interest Rate, if any: Not applicable

     Minimum Interest Rate, if any: Not applicable

     Fixed Rate Commencement Date, if any: Not

applicable

     Floating Rate Commencement Date, if any: Not

applicable

     Fixed Interest Rate, if any: Not applicable

     Day Count Convention: Actual/360

Regular Record Date(s): 15 calendar days prior to the

Interest Payment Date

Sinking Fund: Not applicable

Specified Currency: U.S. Dollars

Exchange Rate Agent: Not applicable

Calculation Agent: Citibank, N.A.

Additional/Other Terms: See attached Schedule II

3

 

     The ING USA Global Funding Trust designated above (the “Trust”), for value received,
hereby promises to pay to Cede & Co., or its registered assigns, the Principal Amount specified
above on the Stated Maturity Date specified above and, if so specified above, to pay interest
thereon from the Original Issue Date specified above or from the most recent Interest Payment Date
specified above to which interest has been paid or duly provided for at the rate per annum
determined in accordance with the provisions on the reverse hereof and as specified above, until
the principal hereof is paid or made available for payment. Unless otherwise specified above,
payments of principal, premium, if any, and interest hereon will be made in the lawful currency of
the United States of America (“U.S. Dollars” or “United States Dollars”). If the Specified
Currency specified above is other than U.S. Dollars, the Holder (as defined in the Indenture) shall
receive such payments in such Foreign Currency (as hereinafter defined). The “Principal Amount” of
this Note at any time means (1) if this Note is a Discount Note (as defined in section 3(c) on the
reverse hereof), the Amortized Face Amount (as hereinafter defined) at such time and (2) in all
other cases, the Principal Amount hereof. Capitalized terms not otherwise defined herein shall
have their meanings set forth in the Indenture, dated as of the date of the Pricing Supplement (the
“Indenture”), between Citibank, N.A., as the indenture trustee (the “Indenture Trustee”), and the
Trust, or on the face hereof.

     This Note will mature on the Stated Maturity Date, unless its principal (or any installment of
its principal) becomes due and payable prior to the Stated Maturity Date, whether, as applicable,
by the declaration of acceleration of maturity, notice of redemption by the Trust or otherwise (the
Stated Maturity Date or any date prior to the Stated Maturity Date on which this Note becomes due
and payable, as the case may be, is referred to as the “Maturity Date”).

     A “Discount Note” is any Note that has an Issue Price that is less than 100% of the Principal
Amount thereof by a percentage that is equal to or greater than 0.25% multiplied by the product of
the principal amount of the Notes and the number of full years to the Stated Maturity Date.

     Unless otherwise specified above, the interest payable on each Interest Payment Date or the
Maturity Date will be the amount of interest accrued from and including the Original Issue Date or
from and including the last Interest Payment Date to which interest has been paid or duly provided
for, as the case may be, to, but excluding, such Interest Payment Date or the Maturity Date, as the
case may be.

     Unless otherwise specified above, the interest payable on any Interest Payment Date will be
paid to the Holder on the Regular Record Date for such Interest Payment Date, which Regular Record
Date shall be the fifteenth (15th) calendar day, whether or not a Business Day,
immediately preceding the related Interest Payment Date; provided that, notwithstanding any
provision of the Indenture to the contrary, interest payable on any Maturity Date shall be payable
to the Person to whom principal shall be payable; and provided, further, that unless otherwise
specified above, in the case of a Note initially issued between a Regular Record Date and the
Interest Payment Date relating to such Regular Record Date, interest for the period beginning on
the Original Issue Date and ending on such Interest Payment Date shall be paid on the Interest

4

 

Payment Date following the next succeeding Regular Record Date to the Holder on such next
succeeding Regular Record Date.

     Payments of principal of, and premium, if any, and interest and other amounts due and owing,
if any, will be made through the Indenture Trustee to the account of DTC or its nominee and will be
made in accordance with depositary arrangements with DTC.

     Unless otherwise specified on the face hereof, the Holder hereof will not be obligated to pay
any administrative costs imposed by banks in making payments in immediately available funds by the
Trust. Unless otherwise specified on the face hereof, any tax assessment or governmental charge
imposed upon payments hereunder, including, without limitation, any withholding tax, will be borne
by the Holder hereof.

     REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF. SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.

     Unless the certificate of authentication hereon shall have been executed by the Indenture
Trustee pursuant to the Indenture, this Note shall not be entitled to any benefit under such
Indenture or be valid or obligatory for any purpose.

5

 

     IN WITNESS WHEREOF, the Trust has caused this instrument to be duly executed, by manual or
facsimile signature.

	 	 	 
	 

	 	THE ING USA GLOBAL FUNDING TRUST
	 

	 	SPECIFIED ON THE FACE OF THIS NOTE

	 	 	 
	Dated: Original Issue Date By:

	 	U.S. Bank National Association, not in its individual
	 

	 	capacity but solely as Trustee.

	 	 	 	 	 
	 	 	 
	 	By:  	  
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

CERTIFICATE OF AUTHENTICATION

     This is one of the Notes of the ING USA Global Funding Trust specified on the face of this
Note referred to in the within-mentioned Indenture.

	 	 	 
	 

	 	CITIBANK, N.A.
	 

	 	As Indenture Trustee

Dated: Original Issue Date

	 	 	 	 	 
	 	 	 
	 	By:  	 
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

6

 

	 	 	 	 	 

[REVERSE FORM OF NOTE]

Section 1. General. This Note is one of a duly authorized issue of Notes

of the Trust. The Notes are issued pursuant to the Indenture.

Section 2. Currency.

     (a) Unless specified otherwise on the face hereof, this Note is denominated in, and payments
of principal, premium, if any, and/or interest, if any, will be made in U.S. Dollars. If specified
as the Specified Currency, this Note may be denominated in, and payments of principal, premium, if
any, and/or interest, if any, may be made in a single currency other than U.S. Dollars (a “Foreign
Currency”). If this Note is denominated in a Foreign Currency, the Holder of this Note is required
to pay for this Note in the Specified Currency.

     (b) Unless specified otherwise on the face hereof, if this Note is denominated in a Foreign
Currency, the Trust is obligated to make payments of principal of, and premium, if any, and
interest, if any, on, this Note in the Specified Currency. Any amounts so payable by the Trust in
the Specified Currency will be converted by the Exchange Rate Agent into U.S. Dollars for payment
to the Holder hereof unless otherwise specified on the face of this Note or the Holder elects, in
the manner described below, to receive these amounts in the Specified Currency. If this Note is
denominated in a Foreign Currency, any U.S. Dollar amount to be received by the Holder hereof will
be based on the highest bid quotation in The City of New York received by the Exchange Rate Agent
at approximately 11:00 A.M., New York City time, on the second Business Day preceding the
applicable payment date from three recognized foreign exchange dealers (one of whom may be the
Exchange Rate Agent) selected by the Exchange Rate Agent and approved by the Trust for the purchase
by the quoting dealer of the Specified Currency for U.S. Dollars for settlement on that payment
date in the aggregate amount of the Specified Currency payable to all Holders of the Notes
scheduled to receive U.S. Dollar payments and at which the applicable dealer commits to execute a
contract. All currency exchange costs will be borne by the Holders of the Notes by deductions from
any payments. If three bid quotations are not available, payments will be made in the Specified
Currency. If this Note is denominated in a Foreign Currency, the Holder of this Note may elect to
receive all or a specified portion of any payment of principal, premium, if any, and/or interest,
if any, in the Specified Currency by submitting a written request to the Indenture Trustee at its
Corporate Trust Office in The City of New York on or prior to the applicable Regular Record Date or
at least 15 calendar days prior to the Maturity Date, as the case may be. This written request may
be mailed or hand delivered or sent by cable, telex or other form of facsimile transmission. This
election will remain in effect until revoked by written notice delivered to the Indenture Trustee
on or prior to a Regular Record Date or at least 15 calendar days prior to the Maturity Date, as
the case may be. The Holder of a Note denominated in a Foreign Currency to be held in the name of
a broker or nominee should contact their broker or nominee to determine whether and how an election
to receive payments in the Specified Currency may be made. Unless specified otherwise on the face
hereof, if the Specified Currency is other than U.S. Dollars, a beneficial owner of a Note
represented by a global security which elects to receive payments of principal, premium, if any,
and/or interest, if any, in the Specified Currency must notify the participant through which it
owns its interest on or prior to the applicable Regular Record Date or at least 15

7

 

calendar days prior to the Maturity Date, as the case may be, of its election. The applicable
participant must notify DTC of its election on or prior to the third Business Day after the
applicable Regular Record Date or at least 12 calendar days prior to the Maturity Date, as the case
may be, and DTC will notify the Indenture Trustee of that election on or prior to the fifth
Business Day after the applicable Regular Record Date or at least ten calendar days prior the
Maturity Date, as the case may be. If complete instructions are received by the participant from
the applicable beneficial owner and forwarded by the participant to DTC, and by DTC to the
Indenture Trustee, on or prior to such dates, then the applicable beneficial owner will receive
payments in the Specified Currency.

     (c) The Trust will indemnify the Holder hereof against any loss incurred as a result of any
judgment or order being given or made for any amount due under this Note and that judgment or order
requiring payment in a currency (the “Judgment Currency”) other than the Specified Currency, and as
a result of any variation between: (i) the rate of exchange at which the Specified Currency amount
is converted into the Judgment Currency for the purpose of that judgment or order; and (ii) the
rate of exchange at which the Holder, on the date of payment of that judgment or order, is able to
purchase the Specified Currency with the amount of the Judgment Currency actually received.

     (d) Unless otherwise specified on the face hereof, if payment hereon is required to be made
in a Foreign Currency and such currency is unavailable due to the imposition of exchange controls
or other circumstances beyond the Trust’s control, then the Trust will be entitled to make payments
with respect hereto in U.S. Dollars on the basis of the Market Exchange Rate (as hereinafter
defined), computed by the Exchange Rate Agent, on the second Business Day prior to the particular
payment or, if the Market Exchange Rate is not then available, on the basis of the most recently
available Market Exchange Rate.

     (e) The “Market Exchange Rate” for the Foreign Currency shall mean the noon dollar buying
rate in The City of New York for cable transfers for the Foreign Currency as certified for customs
purposes (or, if not so certified, as otherwise determined) by the Federal Reserve Bank of New
York.

     (f) All determinations made by the Exchange Rate Agent shall be at its sole discretion and
shall, in the absence of manifest error, be conclusive for all purposes and binding on the Holder
hereof.

     (g) All costs of exchange in respect of this Note, if denominated in a Foreign Currency, will
be borne by the Holder hereof.

          Section 3. Determination of Interest Rate and Certain Other Terms.

	 	(a)	 	Fixed Rate Notes. If this Note is specified on the face hereof as a
“Fixed Rate Note”:

(i) This Note will bear interest at the rate per annum specified on the face hereof.
Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day
months.

8

 

(ii) Unless otherwise specified on the face hereof, the Interest Payment Dates for this
Note will be as follows:

	 	 	 
	Interest Payment Frequency	 	Interest Payment Dates
	Monthly

	 	Fifteenth day of each calendar month,
beginning in the first calendar month
following the month this Note was issued.
	 
	 	 
	Quarterly

	 	Fifteenth day of every third calendar
month, beginning in the third calendar
month following the month this Note was
issued.
	 
	 	 
	Semi-annual

	 	Fifteenth day of every sixth calendar
month, beginning in the sixth calendar
month following the month this Note was
issued.
	 
	 	 
	Annual

	 	Fifteenth day of every twelfth calendar
month, beginning in the twelfth calendar
month following the month this Note was
issued.

(iii) If any Interest Payment Date or the Maturity Date of this Note falls on a
day that is not a Business Day, the Trust will make the required payment of principal,
premium, if any, and/or interest or other amounts on the next succeeding Business Day,
and no additional interest will accrue in respect of the payment made on that next
succeeding Business Day.

	 	(b)	 	Floating Rate Notes. If this Note is specified on the face hereof as a
“Floating Rate Note”:

(i) Interest Rate Basis. Interest on this Note will be determined by reference
to the applicable Interest Rate Basis or Interest Rate Bases, which may, as described
below, include the CD Rate, the CMT Rate, the Commercial Paper Rate, the Constant
Maturity Swap Rate, the Eleventh District Cost of Funds Rate, the Federal Funds Open
Rate, the Federal Funds Rate, LIBOR, EURIBOR, the Prime Rate or the Treasury Rate (each
as defined below).

(ii) Effective Rate. The rate derived from the applicable Interest Rate Basis
or Interest Rate Bases will be determined in accordance with the related provisions
below. The interest rate in effect on each day will be based on: (1) if that day is an
Interest Reset Date, the rate determined as of the Interest Determination Date
immediately preceding that Interest Reset Date; or (2) if that day is not an Interest
Reset Date, the rate determined as of the Interest Determination Date immediately
preceding the most recent Interest Reset Date.

(iii) Spread; Spread Multiplier; Index Maturity. The “Spread” is the number of
basis points (one one-hundredth of a percentage point) specified on the face hereof

9

 

to be added to or subtracted from the related Interest Rate Basis or Interest Rate
Bases applicable to this Note. The “Spread Multiplier” is the percentage specified on
the face hereof of the related Interest Rate Basis or Interest Rate Bases applicable to
this Note by which the Interest Rate Basis or Interest Rate Bases will be multiplied to
determine the applicable interest rate. The “Index Maturity” is the period to maturity
of the instrument or obligation with respect to which the related Interest Rate Basis
or Interest Rate Bases will be calculated.

(iv) Regular Floating Rate Note. Unless this Note is specified on the face
hereof as a Floating Rate/Fixed Rate Note, a Fixed Rate/Floating Rate Note or an
Inverse Floating Rate Note, this Note (a “Regular Floating Rate Note”) will bear
interest at the rate determined by reference to the applicable Interest Rate Basis or
Interest Rate Bases: (1) plus or minus the applicable Spread, if any; and/or (2)
multiplied by the applicable Spread Multiplier, if any. Commencing on the first
Interest Reset Date, the rate at which interest on this Regular Floating Rate Note is
payable will be reset as of each Interest Reset Date; provided, however, that the
interest rate in effect for the period, if any, from the Original Issue Date to the
first Interest Reset Date will be the Initial Interest Rate.

(v) Floating Rate/Fixed Rate Notes. If this Note is specified on the face
hereof as a “Floating Rate/Fixed Rate Note”, this Note will bear interest at the rate
determined by reference to the applicable Interest Rate Basis or Interest Rate Bases:
(1) plus or minus the applicable Spread, if any; and/or (2) multiplied by the
applicable Spread Multiplier, if any. Commencing on the first Interest Reset Date, the
rate at which this Floating Rate/Fixed Rate Note is payable will be reset as of each
Interest Reset Date; provided, however, that: (A) the interest rate in effect for the
period, if any, from the Original Issue Date to the first Interest Reset Date will be
the Initial Interest Rate specified on the face hereof; and (B) the interest rate in
effect commencing on the Fixed Rate Commencement Date will be the Fixed Interest Rate,
if specified on the face hereof, or, if not so specified, the interest rate in effect
on the day immediately preceding the Fixed Rate Commencement Date.

(vi) Fixed Rate/Floating Rate Notes. If this Note is specified on the face
hereof as a “Fixed Rate/Floating Rate Note”, this Note will bear interest at the rate
per annum specified on the face hereof as the Fixed Interest Rate; provided, however,
that commencing on the Floating Rate Commencement Date, this Note will bear interest at
the rate determined by reference to the applicable Interest Rate Basis or Interest Rate
Bases: (1) plus or minus the applicable Spread, if any; and/or (2) multiplied by the
applicable Spread Multiplier, if any. Commencing on the first Interest Reset Date, the
rate at which this Fixed Rate/Floating Rate Note is payable will be reset as of each
Interest Reset Date.

(vii) Inverse Floating Rate Notes. If this Note is specified on the face
hereof as an “Inverse Floating Rate Note”, this Note will bear interest at the Fixed
Interest Rate minus the rate determined by reference to the applicable Interest Rate
Basis or Interest Rate Bases: (1) plus or minus the applicable Spread, if any; and/or
(2) multiplied by the applicable Spread Multiplier, if any; provided, however, that

10

 

interest on this Inverse Floating Rate Note will not be less than zero. Commencing on
the first Interest Reset Date, the rate at which interest on this Inverse Floating Rate
Note is payable will be reset as of each Interest Reset Date; provided, however, that
the interest rate in effect for the period, if any, from the Original Issue Date to the
first Interest Reset Date will be the Initial Interest Rate.

(viii) Interest Reset Dates. The period between Interest Reset Dates will be
the “Interest Reset Period.” Unless otherwise specified on the face hereof, the
Interest Reset Dates will be, in the case of this Floating Rate Note if by its terms it
resets: (1) daily—each business day; (2) weekly—the Wednesday of each week, with the
exception of any weekly reset Floating Rate Note as to which the Treasury Rate is an
applicable Interest Rate Basis, which will reset the Tuesday of each week; (3)
monthly—the fifteenth day of each calendar month, with the exception of any monthly
reset Floating Rate Note as to which the Eleventh District Cost of Funds Rate is an
applicable Interest Rate Basis, which will reset on the first calendar day of the
month; (4) quarterly—the fifteenth day of March, June, September and December of each
year; (5) semi-annually—the fifteenth day of the two months of each year specified on
the face hereof; and (6) annually—the fifteenth day of the month of each year specified
on the face hereof; provided, however, that, with respect to a Floating Rate/Fixed Rate
Note, the rate of interest thereon will not reset after the particular Fixed Rate
Commencement Date. If any Interest Reset Date for this Floating Rate Note would
otherwise be a day that is not a Business Day, the particular Interest Reset Date will
be postponed to the next succeeding Business Day, except that in the case of a Floating
Rate Note as to which LIBOR is an applicable Interest Rate Basis and that Business Day
falls in the next succeeding calendar month, the particular Interest Reset Date will be
the immediately preceding Business Day.

(ix) Interest Determination Dates. The interest rate applicable to a Floating
Rate Note for an Interest Reset Period commencing on the related Interest Reset Date
will be determined by reference to the applicable Interest Rate Basis as of the
particular “Interest Determination Date”, which will be: (1) with respect to the
Federal Funds Open Rate—the related Interest Reset Date; (2) with respect to the
Commercial Paper Rate, the Federal Funds Rate and the Prime Rate—the Business Day
immediately preceding the related Interest Reset Date; (3) with respect to the CD Rate
and the CMT Rate—the second Business Day preceding the related Interest Reset Date; (4)
with respect to the Constant Maturity Swap Rate—the second U.S. Government Securities
business day preceding the related Interest Reset Date, provided, however, that if
after attempting to determine the Constant Maturity Swap Rate, such rate is not
determinable for a particular Interest Determination Date, then such Interest
Determination Date shall be the first U.S. Government Securities business day preceding
the original interest determination date for which the Constant Maturity Swap Rate can
be determined; (5) with respect to the Eleventh District Cost of Funds Rate—the last
working day of the month immediately preceding the related Interest Reset Date on which
the Federal Home Loan Bank of San Francisco publishes the Eleventh District Index (as
defined below); (6) with respect to LIBOR and EURIBOR—the second London Banking Day (as
defined

11

 

below) preceding the related Interest Reset Date; and (7) with respect to the Treasury
Rate—the day of the week in which the related Interest Reset Date falls on which day
Treasury Bills (as defined below) are normally auctioned (i.e., Treasury Bills are
normally sold at auction on Monday of each week, unless that day is a legal holiday, in
which case the auction is normally held on the following Tuesday, except that the
auction may be held on the preceding Friday); provided, however, that if an auction is
held on the Friday of the week preceding the related Interest Reset Date, the Interest
Determination Date will be the preceding Friday. The Interest Determination Date
pertaining to a Floating Rate Note, the interest rate of which is determined with
reference to two or more Interest Rate Bases, will be the latest Business Day which is
at least two Business Days before the related Interest Reset Date for the applicable
Floating Rate Note on which each Interest Reset Basis is determinable. “London Banking
Day” means a day on which commercial banks are open for business (including dealings in
the LIBOR Currency) in London.

(x) Calculation Dates. The interest rate applicable to each Interest Reset
Period will be determined by the Calculation Agent on or prior to the Calculation Date
(as defined below), except with respect to LIBOR, EURIBOR and the Eleventh District
Cost of Funds Rate, which will be determined on the particular Interest Determination
Date. Upon request of the Holder of a Floating Rate Note, the Calculation Agent will
disclose the interest rate then in effect and, if determined, the interest rate that
will become effective as a result of a determination made for the next succeeding
Interest Reset Date with respect to such Floating Rate Note. The “Calculation Date”, if
applicable, pertaining to any Interest Determination Date will be the earlier of: (1)
the tenth calendar day after the particular Interest Determination Date or, if such day
is not a Business Day, the next succeeding Business Day; or (2) the Business Day
immediately preceding the applicable Interest Payment Date or the Maturity Date, as the
case may be.

(xi) Maximum or Minimum Interest Rate. If specified on the face hereof, this
Note may have either or both of a Maximum Interest Rate or a Minimum Interest Rate. If
a Maximum Interest Rate is so designated, the interest rate for a Floating Rate Note
cannot ever exceed such Maximum Interest Rate and in the event that the interest rate
on any Interest Reset Date would exceed such Maximum Interest Rate (as if no Maximum
Interest Rate were in effect) then the interest rate on such Interest Reset Date shall
be the Maximum Interest Rate. If a Minimum Interest Rate is so designated, the
interest rate for a Floating Rate Note cannot ever be less than such Minimum Interest
Rate and in the event that the interest rate on any Interest Reset Date would be less
than such Minimum Interest Rate (as if no Minimum Interest Rate were in effect) then
the interest rate on such Interest Reset Date shall be the Minimum Interest Rate.
Notwithstanding anything to the contrary contained herein, the interest rate on a
Floating Rate Note shall not exceed the maximum interest rate permitted by applicable
law.

(xii) Interest Payments. Unless otherwise specified on the face hereof, the
Interest Payment Dates will be, in the case of a Floating Rate Note which resets: (1)
daily, weekly or monthly—the fifteenth day of each calendar month or on the fifteenth
day

12

 

of March, June, September and December of each year, as specified on the face hereof;
(2) quarterly—the fifteenth day of March, June, September and December of each year;
(3) semi-annually—the fifteenth day of the two months of each year specified on the
face hereof; and (4) annually—the fifteenth day of the month of each year as specified
on the face hereof. In addition, the Maturity Date will also be an Interest Payment
Date. If any Interest Payment Date other than the Maturity Date for this Floating Rate
Note would otherwise be a day that is not a Business Day, such Interest Payment Date
will be postponed to the next succeeding Business Day, except that in the case of a
Floating Rate Note as to which LIBOR is an applicable Interest Rate Basis and that
Business Day falls in the next succeeding calendar month, the particular Interest
Payment Date will be the immediately preceding Business Day. If the Maturity Date of a
Floating Rate Note falls on a day that is not a Business Day, the Trust will make the
required payment of principal, premium, if any, and interest or other amounts on the
next succeeding Business Day, and no additional interest will accrue in respect of the
payment made on that next succeeding Business Day.

(xiii) Rounding. Unless otherwise specified on the face hereof, all percentages
resulting from any calculation on this Floating Rate Note will be rounded to the
nearest one hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upwards. All dollar amounts used in or resulting from any
calculation on this Floating Rate Note will be rounded, in the case of U.S. Dollars, to
the nearest cent or, in the case of a Foreign Currency, to the nearest unit (with
one-half cent or unit being rounded upwards).

(xiv) Interest Factor. With respect to this Floating Rate Note, accrued
interest is calculated by multiplying the principal amount of such Note by an accrued
interest factor. The accrued interest factor is computed by adding the interest factor
calculated for each day in the particular Interest Reset Period. The interest factor
for each day will be computed by dividing the interest rate applicable to such day by
360, in the case of a Floating Rate Note as to which the CD Rate, the Commercial Paper
Rate, the Eleventh District Cost of Funds Rate, the Federal Funds Open Rate, the
Federal Funds Rate, LIBOR, EURIBOR or the Prime Rate is an applicable Interest Rate
Basis, or by the actual number of days in the year, in the case of a Floating Rate Note
as to which the CMT Rate or the Treasury Rate is an applicable Interest Rate Basis. In
the case of a series of Notes that bear interest at floating rates as to which the
Constant Maturity Swap Rate is the Interest Rate Basis, the interest factor for each
day will be computed by dividing the number of days in the interest period by 360 (the
number of days to be calculated on the basis of a year of 360 days with twelve 30-day
months (unless (i) the last day of the interest period is the 31st day of a
month but the first day of the interest period is a day other than the 30th
or 31st day of a month, in which case the month that includes that last day
shall not be considered to be shortened to a 30-day month, or (ii) the last day of the
interest period is the last day of the month of February, in which case the month of
February shall not be considered to be lengthened to a 30-day month)). The interest
factor for a Floating Rate Note as to which the interest rate is calculated with
reference to two

13

 

or more Interest Rate Bases will be calculated in each period in the same manner as if
only the applicable Interest Rate Basis specified above applied.

(xv) Determination of Interest Rate Basis. The Calculation Agent shall
determine the rate derived from each Interest Rate Basis in accordance with the
following provisions.

(A) CD Rate Notes. If the Interest Rate Basis is the CD Rate, this Note
shall be deemed a “CD Rate Note.” Unless otherwise specified on the face hereof,
“CD Rate” means: (1) the rate on the particular Interest Determination Date for
negotiable United States dollar certificates of deposit having the Index Maturity
specified on the face hereof as published in H.15(519) (as defined below) under the
caption “CDs (secondary market)”; or (2) if the rate referred to in clause (1) is
not so published by 3:00 P.M., New York City time, on the related Calculation Date,
the rate on the particular Interest Determination Date for negotiable United States
dollar certificates of deposit of the particular Index Maturity as published in H.15
Daily Update (as defined below), or other recognized electronic source used for the
purpose of displaying the applicable rate, under the caption “CDs (secondary
market)”; or (3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on the
particular Interest Determination Date calculated by the Calculation Agent as the
arithmetic mean of the secondary market offered rates as of 10:00 A.M., New York
City time, on that Interest Determination Date, of three leading non-bank dealers in
negotiable United States dollar certificates of deposit in The City of New York
(which may include the purchasing agent or its affiliates) selected by the
Calculation Agent for negotiable United States dollar certificates of deposit of
major United States money market banks for negotiable United States certificates of
deposit with a remaining maturity closest to the particular Index Maturity in an
amount that is representative for a single transaction in that market at that time;
or (4) if the dealers so selected by the Calculation Agent are not quoting as
mentioned in clause (3), the CD Rate in effect on the particular Interest
Determination Date. “H.15(519)” means the weekly statistical release designated as
H.15(519), or any successor publication, published by the Board of Governors of the
Federal Reserve System. “H.15 Daily Update” means the daily update of H.15(519),
available through the world-wide-web site of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov/releases/H15/ update, or any
successor site or publication.

(B) CMT Rate Notes. If the Interest Rate Basis is the CMT Rate, this Note
shall be deemed a “CMT Rate Note.” Unless otherwise specified on the face hereof,
“CMT Rate” means:

(1) if CMT Telerate Page 7051 is specified on the
face hereof:

	 	i.	 	the percentage equal to the yield for
United States Treasury securities at “constant maturity” having the
Index Maturity specified on the face hereof as published in
H.15(519) under the

14

 

	 	 	 	caption “Treasury Constant Maturities”, as the yield is displayed on
Telerate (or any successor service) on page 7051 (or any other page
as may replace the specified page on that service) (“Telerate Page
7051”), for the particular Interest Determination Date; or
	 
	 	ii.	 	if the rate referred to in clause (i)
does not so appear on Telerate Page 7051, the percentage equal to
the yield for United States Treasury securities at “constant
maturity” having the particular Index Maturity and for the
particular Interest Determination Date as published in H.15(519)
under the caption “Treasury Constant Maturities”; or
	 
	 	iii.	 	if the rate referred to in clause (ii)
does not so appear in H.15(519), the rate on the particular Interest
Determination Date for the period of the particular Index Maturity
as may then be published by either the Federal Reserve System Board
of Governors or the United States Department of the Treasury that
the Calculation Agent determines to be comparable to the rate which
would otherwise have been published in H.15(519); or
	 
	 	iv.	 	if the rate referred to in clause (iii)
is not so published, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield to
maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 P.M., New York City time, on that
Interest Determination Date of three leading primary United States
government securities dealers in The City of New York (which may
include the purchasing agent or its affiliates) (each, a “Reference
Dealer”) selected by the Calculation Agent from five Reference
Dealers selected by the Calculation Agent and eliminating the
highest quotation, or, in the event of equality, one of the highest,
and the lowest quotation or, in the event of equality, one of the
lowest, for United States Treasury securities with an original
maturity equal to the particular Index Maturity, a remaining term to
maturity no more than one year shorter than that Index Maturity and
in a principal amount that is representative for a single
transaction in the securities in that market at that time; or
	 
	 	v.	 	if fewer than five but more than two of
the prices referred to in clause (iv) are provided as requested, the
rate on the particular Interest Determination Date calculated by the
Calculation Agent based on the arithmetic mean of the bid prices
obtained and neither the highest nor the lowest of the quotations
shall be eliminated; or
	 
	 	vi.	 	if fewer than three prices referred to in
clause (iv) are provided as requested, the rate on the particular
Interest Determination Date

15

 

	 	 	 	calculated by the Calculation Agent as a yield to maturity based on
the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three Reference Dealers selected by the
Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation or, in the
event of equality, one of the highest and the lowest quotation or,
in the event of equality, one of the lowest, for United States
Treasury securities with an original maturity greater than the
particular Index Maturity, a remaining term to maturity closest to
that Index Maturity and in a principal amount that is representative
for a single transaction in the securities in that market at that
time; or
	 
	 	vii.	 	if fewer than five but more than two
prices referred to in clause (vi) are provided as requested, the
rate on the particular Interest Determination Date calculated by the
Calculation Agent based on the arithmetic mean of the bid prices
obtained and neither the highest nor the lowest of the quotations
will be eliminated; or
	 
	 	viii.	 	if fewer than three prices referred to
in clause (vi) are provided as requested, the CMT Rate in effect on
the particular Interest Determination Date; or

(2) if CMT Telerate Page 7052 is specified on the
face hereof:

	 	i.	 	the percentage equal to the one-week or
one-month, as specified on the face hereof, average yield for United
States Treasury securities at “constant maturity” having the Index
Maturity specified on the face hereof as published in H.15(519)
opposite the caption “Treasury Constant Maturities”, as the yield is
displayed on Telerate (or any successor service) (on page 7052 or
any other page as may replace the specified page on that service)
(“Telerate Page 7052”), for the week or month, as applicable, ended
immediately preceding the week or month, as applicable, in which the
particular Interest Determination Date falls; or
	 
	 	ii.	 	if the rate referred to in clause (i)
does not so appear on Telerate Page 7052, the percentage equal to
the one-week or one-month, as specified on the face hereof, average
yield for United States Treasury securities at “constant maturity”
having the particular Index Maturity and for the week or month, as
applicable, preceding the particular Interest Determination Date as
published in H.15(519) opposite the caption “Treasury Constant
Maturities”; or

16

 

	 	iii.	 	if the rate referred to in clause (ii)
does not so appear in H.15(519), the one-week or one-month, as
specified on the face hereof, average yield for United States
Treasury securities at “constant maturity” having the particular
Index Maturity as otherwise announced by the Federal Reserve Bank of
New York for the week or month, as applicable, ended immediately
preceding the week or month, as applicable, in which the particular
Interest Determination Date falls; or
	 
	 	iv.	 	if the rate referred to in clause (iii)
is not so published, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield to
maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 P.M., New York City time, on that
Interest Determination Date of three Reference Dealers selected by
the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in the
event of equality, one of the highest, and the lowest quotation or,
in the event of equality, one of the lowest, for United States
Treasury securities with an original maturity equal to the
particular Index Maturity, a remaining term to maturity no more than
one year shorter than that Index Maturity and in a principal amount
that is representative for a single transaction in the securities in
that market at that time; or
	 
	 	v.	 	if fewer than five but more than two of
the prices referred to in clause (iv) are provided as requested, the
rate on the particular Interest Determination Date calculated by the
Calculation Agent based on the arithmetic mean of the bid prices
obtained and neither the highest nor the lowest of the quotations
shall be eliminated; or
	 
	 	vi.	 	if fewer than three prices referred to in
clause (iv) are provided as requested, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as a
yield to maturity based on the arithmetic mean of the secondary
market bid prices as of approximately 3:30 P.M., New York City time,
on that Interest Determination Date of three Reference Dealers
selected by the Calculation Agent from five Reference Dealers
selected by the Calculation Agent and eliminating the highest
quotation or, in the event of equality, one of the highest and the
lowest quotation or, in the event of equality, one of the lowest,
for United States Treasury securities with an original maturity
greater than the particular Index Maturity, a remaining term to
maturity closest to that Index Maturity and in a principal amount
that is representative for a single transaction in the securities in
that market at the time; or

17

 

	 	vii.	 	if fewer than five but more than two
prices referred to in clause (vi) are provided as requested, the
rate on the particular Interest Determination Date calculated by the
Calculation Agent based on the arithmetic mean of the bid prices
obtained and neither the highest nor the lowest of the quotations
will be eliminated; or
	 
	 	viii.	 	if fewer than three prices referred to
in clause (vi) are provided as requested, the CMT Rate in effect on
that Interest Determination Date.

     If two United States Treasury securities with an original maturity greater
than the Index Maturity specified on the face hereof have remaining terms to
maturity equally close to the particular Index Maturity, the quotes for the
United States Treasury security with the shorter original remaining term to
maturity will be used.

(C) Commercial Paper Rate Notes. If the Interest Rate Basis is the
Commercial Paper Rate, this Note shall be deemed a “Commercial Paper Rate Note.”
Unless otherwise specified on the face hereof, “Commercial Paper Rate” means: (1)
the Money Market Yield (as defined below) on the particular Interest Determination
Date of the rate for commercial paper having the Index Maturity specified on the
face hereof as published in H.15(519) under the caption “Commercial
Paper—Nonfinancial”; or (2) if the rate referred to in clause (1) is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
Money Market Yield of the rate on the particular Interest Determination Date for
commercial paper having the particular Index Maturity as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “Commercial Paper—Nonfinancial”;
or (3) if the rate referred to in clause (2) is not so published by 3:00 P.M., New
York City time, on the related Calculation Date, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as the Money Market Yield of
the arithmetic mean of the offered rates at approximately 11:00 A.M., New York City
time, on that Interest Determination Date of three leading dealers of United States
dollar commercial paper in The City of New York (which may include the purchasing
agent or its affiliates) selected by the Calculation Agent for commercial paper
having the particular Index Maturity placed for industrial issuers whose bond rating
is “Aa”, or the equivalent, from a nationally recognized statistical rating
organization; or (4) if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (3), the Commercial Paper Rate in effect on the
particular Interest Determination Date. “Money Market Yield” means a yield
(expressed as a percentage) calculated in accordance with the following formula:

Money Market Yield =                      D x 360          
            x 100          
                     

 

360 – (D x M)

18

 

where “D” refers to the applicable per annum rate for commercial paper quoted
on a bank discount basis and expressed as a decimal, and “M” refers to the actual
number of days in the applicable Interest Reset Period.

(D) Constant Maturity Swap Rate Notes. If the Interest Rate Basis is the
Constant Maturity Swap Rate, this Note shall be deemed a “Constant Maturity Swap
Rate Note.” Unless otherwise specified on the face hereof, “Constant Maturity Swap
Rate” means: (1) the rate for U.S. dollar swaps with the designated maturity
specified in the applicable pricing supplement, expressed as a percentage, which
appears on the Reuters Screen (or any successor service) ISDAFIX1 Page as of 11:00
A.M., New York City time, on the particular Interest Determination Date; or (2) if
the rate referred to in clause (1) does not appear on the Reuters Screen (or any
successor service) ISDAFIX1 Page by 2:00 P.M., New York City time, on such Interest
Determination Date, a percentage determined on the basis of the mid-market
semi-annual swap rate quotations provided by the reference banks (as defined below)
as of approximately 11:00 A.M., New York City time, on such Interest Determination
Date, and, for this purpose, the semi-annual swap rate means the mean of the bid and
offered rates for the semi-annual fixed leg, calculated on a 30/360 day count basis,
of a fixed-for-floating U.S. dollar interest rate swap transaction with a term equal
to the designated maturity specified in the applicable pricing supplement commencing
on the Interest Reset Date and in a representative amount (as defined below) with an
acknowledged dealer of good credit in the swap market, where the floating leg,
calculated on an actual/360 day count basis, is equivalent to USD-LIBOR-BBA with a
designated maturity specified in the applicable pricing supplement. The Calculation
Agent will request the principal New York City office of each of the reference banks
to provide a quotation of its rate. If at least three quotations are provided, the
rate for that Interest Determination Date will be the arithmetic mean of the
quotations, eliminating the highest quotation (or, in the event of equality, one of
the highest) and the lowest quotation (or, in the event of equality, one of the
lowest); or (3) if at least three quotations are not received by the Calculation
Agent as mentioned in clause (2), the Constant Maturity Swap Rate in effect on the
particular Interest Determination Date. “U.S. Government Securities business day”
means any day except for Saturday, Sunday, or a day on which The Bond Market
Association recommends that the fixed income departments of its members be closed
for the entire day for purposes of trading in U.S. government securities.
“Representative amount” means an amount that is representative for a single
transaction in the relevant market at the relevant time. “Reference banks” mean
five leading swap dealers in the New York City interbank market, selected by the
Calculation Agent, after consultation with us.

(E) Eleventh District Cost of Funds Rate Notes. If the Interest Rate Basis
is the Eleventh District Cost of Funds Rate, this Note shall be deemed an “Eleventh
District Cost of Funds Rate Note.” Unless otherwise specified on the face hereof,
“Eleventh District Cost of Funds Rate” means: (1) the rate equal to the monthly
weighted average cost of funds for the calendar month immediately preceding the
month in which the particular Interest Determination Date falls as set forth under

19

 

the caption “11th District” on the display on Telerate (or any successor service) on
page 7058 (or any other page as may replace the specified page on that service)
(“Telerate Page 7058”) as of 11:00 A.M., San Francisco time, on that Interest
Determination Date; or (2) if the rate referred to in clause (1) does not so appear
on Telerate Page 7058, the monthly weighted average cost of funds paid by member
institutions of the Eleventh Federal Home Loan Bank District that was most recently
announced (the “Eleventh District Index”) by the Federal Home Loan Bank of San
Francisco as the cost of funds for the calendar month immediately preceding that
Interest Determination Date; or (3) if the Federal Home Loan Bank of San Francisco
fails to announce the Eleventh District Index on or prior to the particular Interest
Determination Date for the calendar month immediately preceding that Interest
Determination Date, the Eleventh District Cost of Funds Rate in effect on the
particular Interest Determination Date.

(F) Federal Funds Open Rate Notes. If the Interest Rate Basis is the
Federal Funds Open Rate, this Note shall be deemed a “Federal Funds Open Rate Note.”
Unless otherwise specified on the face hereof, “Federal Funds Open Rate” means the
rate set forth on Telerate (or any successor service) on page 5 (or any other page
as may replace the specified page on that service) for an Interest Determination
Date underneath the caption “FEDERAL FUNDS” in the row titled “OPEN”. If the rate is
not available for an Interest Determination Date, the rate for that Interest
Determination Date shall be the Federal Funds Rate as determined below.

(G) Federal Funds Rate Notes. If the Interest Rate Basis is the Federal
Funds Rate, this Note shall be deemed a “Federal Funds Rate Note.” Unless otherwise
specified on the face hereof, “Federal Funds Rate” means: (1) the rate on the
particular Interest Determination Date for United States dollar federal funds as
published in H.15(519) under the caption “Federal Funds (Effective)” and displayed
on Telerate (or any successor service) on page 120 (or any other page as may replace
the specified page on that service) (“Telerate Page 120”); or (2) if the rate
referred to in clause (1) does not so appear on Telerate Page 120 or is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on the particular Interest Determination Date for United States dollar federal
funds as published in H.15 Daily Update, or such other recognized electronic source
used for the purpose of displaying the applicable rate, under the caption “Federal
Funds (Effective)”; or (3) if the rate referred to in clause (2) is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on the particular Interest Determination Date calculated by the Calculation
Agent as the arithmetic mean of the rates for the last transaction in overnight
United States dollar federal funds arranged by three leading brokers of United
States dollar federal funds transactions in The City of New York (which may include
the purchasing agent or its affiliates) selected by the Calculation Agent prior to
9:00 A.M., New York City time, on that Interest Determination Date; or (4) if the
brokers so selected by the Calculation Agent are not quoting as mentioned in clause
(3), the Federal Funds Rate in effect on the particular Interest Determination Date.

20

 

(H) LIBOR Notes. If the Interest Rate Basis is LIBOR, this Note shall be
deemed a “LIBOR Note.” Unless otherwise specified on the face hereof, “LIBOR”
means: (1) if “LIBOR Telerate” is specified on the face hereof or if neither “LIBOR
Reuters” nor “LIBOR Telerate” is specified on the face hereof as the method for
calculating LIBOR, the rate for deposits in the LIBOR Currency having the Index
Maturity specified on the face hereof, commencing on the related Interest Reset
Date, that appears on the LIBOR Page (as defined below) as of 11:00 A.M., London
time, on the particular Interest Determination Date; or (2) if “LIBOR Reuters” is
specified on the face hereof, the arithmetic mean of the offered rates, calculated
by the Calculation Agent, or the offered rate, if the LIBOR Page by its terms
provides only for a single rate, for deposits in the LIBOR Currency having the
particular Index Maturity, commencing on the related Interest Reset Date, that
appear or appears, as the case may be, on the LIBOR Page as of 11:00 A.M., London
time, on the particular Interest Determination Date; or (3) if fewer than two
offered rates appear, or no rate appears, as the case may be, on the particular
Interest Determination Date on the LIBOR Page as specified in clause (1) or (2), as
applicable, the rate calculated by the Calculation Agent of at least two offered
quotations obtained by the Calculation Agent after requesting the principal London
offices of each of four major reference banks (which may include affiliates of the
purchasing agent) in the London interbank market to provide the Calculation Agent
with its offered quotation for deposits in the LIBOR Currency for the period of the
particular Index Maturity, commencing on the related Interest Reset Date, to prime
banks in the London interbank market at approximately 11:00 A.M., London time, on
that Interest Determination Date and in a principal amount that is representative
for a single transaction in the LIBOR Currency in that market at that time; or (4)
if fewer than two offered quotations referred to in clause (3) are provided as
requested, the rate calculated by the Calculation Agent as the arithmetic mean of
the rates quoted at approximately 11:00 A.M., in the applicable Principal Financial
Center, on the particular Interest Determination Date by three major banks (which
may include affiliates of the purchasing agent) in that Principal Financial Center
selected by the Calculation Agent for loans in the LIBOR Currency to leading
European banks, having the particular Index Maturity and in a principal amount that
is representative for a single transaction in the LIBOR Currency in that market at
that time; or (5) if the banks so selected by the Calculation Agent are not quoting
as mentioned in clause (4), LIBOR in effect on the particular Interest Determination
Date. “LIBOR Currency” means the currency specified on the face hereof as to which
LIBOR shall be calculated or, if no currency is specified on the face hereof, United
States Dollars. “LIBOR Page” means either: (1) if “LIBOR Reuters” is specified on
the face hereof, the display on the Reuter Monitor Money Rates Service (or any
successor service) on the page specified on the face hereof (or any other page as
may replace that page on that service) for the purpose of displaying the London
interbank rates of major banks for the LIBOR Currency; or (2) if “LIBOR Telerate” is
specified on the face hereof or neither “LIBOR Reuters” nor “LIBOR Telerate” is
specified on the face hereof as the method for calculating LIBOR, the display on
Telerate (or any

21

 

successor service) on the page specified on the face hereof (or any other page as
may replace such page on such service) for the purpose of displaying the London
interbank rates of major banks for the LIBOR Currency.

(I) EURIBOR Notes. If the Interest Rate Basis is EURIBOR, this Note shall
be deemed a “EURIBOR Note.” Unless otherwise specified on the face hereof,
“EURIBOR” means: (1) with respect to any Interest Determination Date relating to
this EURIBOR Note (a “EURIBOR Interest Determination Date”), the rate for deposits
in euros as sponsored, calculated and published jointly by the European Banking
Federation and ACI – The Financial Market Association, or any company established by
the joint sponsors for purposes of compiling and publishing those rates, having the
Index Maturity specified on the face hereof, commencing on the applicable Interest
Reset Date, as the rate appears on Telerate or any successor service, on page 248
(or any other page as may replace that specified page on the service) (“Telerate
Page 248”) as of 11:00 A.M., Brussels time, on the applicable EURIBOR Interest
Determination Date; or (2) if such rate does not appear on Telerate Page 248, or is
not so published by 11:00 A.M., Brussels time, on the applicable EURIBOR Interest
Determination Date, such rate will be calculated by the Calculation Agent and will
be the arithmetic mean of at least two quotations obtained by the Calculation Agent
after requesting the principal Euro-zone (as defined below) offices of four major
banks in the Euro-zone interbank market to provide the Calculation Agent with its
offered quotation for deposits in euros for the period of the Index Maturity
specified on the face hereof, commencing on the applicable Interest Reset Date, to
prime banks in the Euro-zone interbank market at approximately 11:00 A.M., Brussels
time, on the applicable EURIBOR Interest Determination Date and in a principal
amount not less than the equivalent of $1 million in euros that is representative
for a single transaction in euro in the market at that time; or (3) if fewer than
two such quotations are so provided, the rate on the applicable EURIBOR Interest
Determination Date will be calculated by the Calculation Agent and will be the
arithmetic mean of the rates quoted at approximately 11:00 A.M., Brussels time, on
such EURIBOR Interest Determination Date by four major banks in the Euro-zone for
loans in euro to leading European banks, having the Index Maturity specified on the
face hereof, commencing on the applicable Interest Reset Date and in a principal
amount not less than the equivalent of $1 million in euros that is representative
for a single transaction in euros in the market at that time; or (4) if the banks
so selected by the Calculation Agent are not quoting as mentioned above, EURIBOR
will be EURIBOR in effect on the applicable EURIBOR Interest Determination Date.
“Euro-zone” means the region comprised of member states of the European Union that
have adopted the single currency in accordance with the treaty establishing the
European Community, as amended by the treaty on European Union.

(J) Prime Rate Notes. If the Interest Rate Basis is the Prime Rate, this
Note shall be deemed a “Prime Rate Note.” Unless otherwise specified on the face
hereof, “Prime Rate” means: (1) the rate on the particular Interest Determination
Date as published in H.15(519) under the caption “Bank Prime Loan”; or (2) if the
rate

22

 

referred to in clause (1) is not so published by 3:00 P.M., New York City time, on
the related Calculation Date, the rate on the particular Interest Determination Date
as published in H.15 Daily Update, or such other recognized electronic source used
for the purpose of displaying the applicable rate, under the caption “Bank Prime
Loan”; or (3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on the
particular Interest Determination Date calculated by the Calculation Agent as the
arithmetic mean of the rates of interest publicly announced by each bank that
appears on the Reuters Screen US PRIME 1 Page (as defined below) as the applicable
bank’s prime rate or base lending rate as of 11:00 A.M., New York City time, on that
Interest Determination Date; or (4) if fewer than four rates referred to in clause
(3) are so published by 3:00 p.m., New York City time, on the related Calculation
Date, the rate calculated by the Calculation Agent as the particular Interest
Determination Date calculated by the Calculation Agent as the arithmetic mean of the
prime rates or base lending rates quoted on the basis of the actual number of days
in the year divided by a 360-day year as of the close of business on that Interest
Determination Date by three major banks (which may include affiliates of the
purchasing agent) in The City of New York selected by the Calculation Agent; or (5)
if the banks so selected by the Calculation Agent are not quoting as mentioned in
clause (4), the Prime Rate in effect on the particular Interest Determination Date.
“Reuters Screen US PRIME 1 Page” means the display on the Reuter Monitor Money Rates
Service (or any successor service) on the “US PRIME 1” page (or any other page as
may replace that page on that service) for the purpose of displaying prime rates or
base lending rates of major United States banks.

(K) Treasury Rate Notes. If the Interest Rate Basis is the Treasury Rate,
this Note shall be deemed a “Treasury Rate Note.” Unless otherwise specified on the
face hereof, “Treasury Rate” means: (1) the rate from the auction held on the
Interest Determination Date (the “Auction”) of direct obligations of the United
States (“Treasury Bills”) having the Index Maturity specified on the face hereof
under the caption “INVESTMENT RATE” on the display on Telerate (or any successor
service) on page 56 (or any other page as may replace that page on that service)
(“Telerate Page 56”) or page 57 (or any other page as may replace that page on that
service) (“Telerate Page 57”); or (2) if the rate referred to in clause (1) is not
so published by 3:00 P.M., New York City time, on the related Calculation Date, the
Bond Equivalent Yield (as defined below) of the rate for the applicable Treasury
Bills as published in H.15 Daily Update, or another recognized electronic source
used for the purpose of displaying the applicable rate, under the caption “U.S.
Government Securities/Treasury Bills/Auction High”; or (3) if the rate referred to
in clause (2) is not so published by 3:00 P.M., New York City time, on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable
Treasury Bills as announced by the United States Department of the Treasury; or (4)
if the rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the Auction is not held, the Bond Equivalent Yield
of the rate on the particular Interest Determination Date of the applicable Treasury
Bills as published in H.15(519)

23

 

under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”; or
(5) if the rate referred to in clause (4) is not so published by 3:00 P.M., New York
City time, on the related Calculation Date, the rate on the particular Interest
Determination Date of the applicable Treasury Bills as published in H.15 Daily
Update, or another recognized electronic source used for the purpose of displaying
the applicable rate, under the caption “U.S. Government Securities/Treasury
Bills/Secondary Market”; or (6) if the rate referred to in clause (5) is not so
published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on the particular Interest Determination Date calculated by the Calculation
Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market
bid rates, as of approximately 3:30 P.M., New York City time, on that Interest
Determination Date, of three primary United States government securities dealers
(which may include the purchasing agent or its affiliates) selected by the
Calculation Agent, for the issue of Treasury Bills with a remaining maturity closest
to the Index Maturity specified on the face hereof; or (7) if the dealers so
selected by the Calculation Agent are not quoting as mentioned in clause (6), the
Treasury Rate in effect on the particular Interest Determination Date. “Bond
Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance
with the following formula:

Bond Equivalent Yield =                      D x N                      x 100       
                        

 

360 – (D x M)

where “D” refers to the applicable per annum rate for Treasury Bills quoted on
a bank discount basis and expressed as a decimal, “N” refers to 365 or 366, as the
case may be, and “M” refers to the actual number of days in the applicable Interest
Reset Period.

	 	(c)	 	Discount Notes. If this Note is specified on the face hereof as a
“Discount Note”:

(i) Principal and Interest. This Note will bear interest in the same manner as
set forth in Section 3(a) above, and payments of principal and interest shall be made
as set forth on the face hereof. Discount Notes may not bear any interest currently or
may bear interest at a rate that is below market rates at the time of issuance. The
difference between the Issue Price of a Discount Note and par is referred to as the
“Discount”.

(ii) Redemption; Repayment; Acceleration. In the event a Discount Note is
redeemed, repaid or accelerated, the amount payable to the Holder of such Discount Note
will be equal to the sum of: (A) the Issue Price (increased by any accruals of
Discount) and, in the event of any redemption of such Discount Note, if applicable,
multiplied by the Initial Redemption Percentage (as adjusted by the Annual Redemption
Percentage Reduction, if applicable); and (B) any unpaid interest accrued on such
Discount Note to the Maturity Date (“Amortized Face Amount”). Unless otherwise
specified on the face hereof, for purposes of determining the amount of Discount that
has accrued as of any date on which a redemption, repayment or acceleration of maturity
occurs for a Discount Note, a Discount will be

24

 

accrued using a constant yield method. The constant yield will be calculated using a
30-day month, 360-day year convention, a compounding period that, except for the
Initial Period (as defined below), corresponds to the shortest period between Interest
Payment Dates for the applicable Discount Note (with ratable accruals within a
compounding period), a coupon rate equal to the initial coupon rate applicable to the
applicable Discount Note and an assumption that the maturity of such Discount Note
will not be accelerated. If the period from the date of issue to the first Interest
Payment Date for a Discount Note (the “Initial Period”) is shorter than the compounding
period for such Discount Note, a proportionate amount of the yield for an entire
compounding period will be accrued. If the Initial Period is longer than the
compounding period, then the period will be divided into a regular compounding period
and a short period with the short period being treated as provided above.

     (d) Amortizing Notes. If this Note is specified on the face hereof as an “Amortizing
Note”, this Note will bear interest in the same manner as set forth in Section 3(a) above, and
payments on principal, premium, if any, and interest will be made as set forth on the face hereof
and/or in accordance with Schedule I attached hereto. The Trust will make payments
combining principal, premium (if any) and interest, if applicable, on the dates and in the amounts
set forth in the table appearing in Schedule I attached to this Note or in accordance with
the formula specified on the face hereof. Payments made hereon will be applied first to interest
due and payable hereon and then to the reduction of the unpaid principal amount hereof.

Section 4. Redemption. If no redemption right is set forth on the face
hereof, this Note may not be redeemed prior to the Stated Maturity Date, except as
set forth in this Note, in the Indenture or in Section 10 hereof. In the case of a
Note that is not a Discount Note, if a redemption right is set forth on the face of
this Note, the Trust shall elect to redeem this Note on the Interest Payment Date
after the Initial Redemption Date set forth on the face hereof on which the Funding
Agreement is to be redeemed in whole or in part by ING USA Annuity and Life
Insurance Company (“ING USA”) (each, a “Redemption Date”), in which case this Note
must be redeemed on such Redemption Date in whole or in part, as applicable, prior
to the Stated Maturity Date, in increments of $1,000 at the applicable Redemption
Price (as defined below), together with unpaid interest, if any, accrued thereon
to, but excluding, the applicable Redemption Date. “Redemption Price” shall mean
an amount equal to the Initial Redemption Percentage (as adjusted by the Annual
Redemption Percentage Reduction, if applicable) multiplied by the unpaid Principal
Amount of this Note to be redeemed. The unpaid Principal Amount of this Note to be
redeemed shall be determined by multiplying (1) the Outstanding Principal Amount of
this Note by (2) the quotient derived by dividing (A) the outstanding principal
amount of the Funding Agreement to be redeemed by ING USA by (B) the outstanding
principal amount of the Funding Agreement. The Initial Redemption Percentage, if
any, applicable to this Note shall decline at each anniversary of the Initial
Redemption Date by an amount equal to the applicable Annual Redemption Percentage
Reduction, if any, until the Redemption Price is equal to 100% of the unpaid amount
thereof to be redeemed. Notice must be given not more than sixty (60) nor less than
thirty (30) calendar days prior to the proposed Redemption Date. In

25

 

the event of redemption of this Note in part only, a new Note for the unredeemed
portion hereof shall be issued in the name of the Holder hereof upon the surrender
hereof. If less than all of this Note is redeemed, the Indenture Trustee will
select by lot or, in its discretion, on a pro rata basis, the amount of the interest
of each direct participant in the Trust to be redeemed.

Section 5. Sinking Funds and Amortizing Notes. Unless specified on the
face hereof, this Note will not be subject to, or entitled to the benefit of, any
sinking fund. If this Note is an Amortizing Note, this Note may pay an amount in
respect of both interest and principal amortized over the life of this Note.

Section 6. Repayment. If no repayment right is set forth on the face
hereof, this Note may not be repaid at the option of the Holder hereof prior to the
Stated Maturity Date. If a repayment right is granted on the face of this Note,
this Note may be subject to repayment at the option of the Holder on any Interest
Payment Date on and after the date, if any, indicated on the face hereof (each, a
“Repayment Date”). On any Repayment Date, unless otherwise specified on the face
hereof, this Note shall be repayable in whole or in part in increments of $1,000 at
the option of the Holder hereof at a repayment price equal to 100% of the Principal
Amount to be repaid, together with interest thereon payable to the Repayment Date.
For this Note to be repaid in whole or in part at the option of the Holder hereof,
this Note must be received by the Indenture Trustee, with the form entitled “Option
to Elect Repayment”, below, duly completed by the Indenture Trustee. Exercise of
such repayment option by the Holder hereof shall be irrevocable.

Section 7. Modifications and Waivers. The Indenture contains provisions
permitting the Trust and the Indenture Trustee (1) at any time and from time to time
without notice to, or the consent of, the Holders of any Notes issued under the
Indenture to enter into one or more supplemental indentures for certain enumerated
purposes and (2) with the consent of the Holders of a majority in aggregate
principal amount of the Outstanding Notes affected thereby, to enter into one or
more supplemental indentures for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, the Indenture or of
modifying in any manner the rights of Holders of Notes under the Indenture;
provided, that, with respect to certain enumerated provisions, no such supplemental
indenture shall be entered into without the consent of the Holder of each Note
affected thereby. Any such consent or waiver by the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note and
of any Note issued upon the registration of transfer hereof or in exchange hereof or
in lieu hereof, whether or not notation of such consent or waiver is made upon this
Note or such other Notes.

Section 8. Obligations Unconditional. No reference herein to the Indenture
and no provisions of this Note or of the Indenture shall impair the right of each
Holder of any Note, which is absolute and unconditional, to receive payment of the
principal of, and any interest on, and premium, if any, on, such Note on the

26

 

respective Stated Maturity Date or redemption date thereof and to institute suit for
the enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

Section 9. Events of Default. If an Event of Default with respect to this
Note shall occur and be continuing, the principal of, and all other amounts payable
on, the Notes may be declared due and payable, or may be automatically accelerated,
as the case may be, in the manner and with the effect provided in the Indenture. In
the event that this Note is a Discount Note, the amount of principal of this Note
that becomes due and payable upon such acceleration shall be equal to the amount
calculated as set forth in Section 3(c) hereof.

Section 10. Withholding; Tax Event and Redemption. All amounts due on this
Note will be made without any applicable withholding or deduction for or on account
of any present or future taxes, duties, levies, assessments or other governmental
charges of whatever nature imposed or levied by or on behalf of any governmental
authority, unless such withholding or deduction is required by law. Unless
otherwise specified on the face hereof, the Trust will not pay any additional
amounts to the Holder of this Note in respect of such withholding or deduction, any
such withholding or deduction will not give rise to an event of default or any
independent right or obligation to redeem this Note and the Holder will be deemed
for all purposes to have received cash in an amount equal to the portion of such
withholding or deduction that is attributable to such Holder’s interest in this Note
as equitably determined by the Trust.

If (1) a Tax Event (defined below) as to the Funding Agreement occurs and (2) ING
USA redeems the Funding Agreement in whole or in part, the Trust will redeem the
Notes, subject to the terms and conditions of Section 2.04 of the Standard Indenture
Terms, at the Tax Event Redemption Price (defined below) together with unpaid
interest accrued thereon to the applicable redemption date. “Tax Event” means that
ING USA shall have received an opinion of independent legal counsel stating in
effect that as a result of (a) any amendment to, or change (including any announced
prospective change) in, the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority thereof or therein or (b)
any amendment to, or change in, an interpretation or application of any such laws or
regulations by any governmental authority in the United States, which amendment or
change is enacted, promulgated, issued or announced on or after the effective date
of the Funding Agreement, there is more than an insubstantial risk that (i) the
Trust is, or will be within ninety (90) days of the date thereof, subject to U.S.
federal income tax with respect to interest accrued or received on the Funding
Agreement or (ii) the Trust is, or will be within ninety (90) days of the date
thereof, subject to more than a de minimis amount of taxes, duties or other
governmental charges. “Tax Event Redemption Price” means an amount equal to the
unpaid principal amount of this Note to be redeemed, which shall be determined by
multiplying (1) the Outstanding Principal Amount of this Note by (2) the quotient
derived by dividing (A) the outstanding principal amount

27

 

to be redeemed by ING USA of the Funding Agreement by (B) the outstanding principal
amount of the Funding Agreement.

Section 11. Listing. Unless otherwise specified on the face hereof, this
Note will not be listed on any securities exchange.

Section 12. Collateral. The Collateral for this Note includes the Funding
Agreement specified on the face hereof.

Section 13. No Recourse Against Certain Persons. No recourse shall be had
for the payment of any principal, interest or any other sums at any time owing under
the terms of this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental
thereto, against the Nonrecourse Parties, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such personal liability being, by the acceptance hereof and as part
of the consideration for issue hereof, expressly waived and released.

Section 14. Miscellaneous.

     (a) This Note is issuable only as a registered Note without coupons in denominations of
$1,000 and any integral multiple in excess thereof unless otherwise specified on the face of this
Note.

     (b) Prior to due presentment for registration of transfer of this Note, the Trust, the
Indenture Trustee, the Registrar, the Paying Agent, any Agent and any other agent of the Trust or
the Indenture Trustee may treat the Person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment as herein provided and for all other purposes, whether
or not this Note shall be overdue, and none of the Trust, the Indenture Trustee, the Registrar, the
Paying Agent, any Agent or any other agent of the Trust or the Indenture Trustee shall be affected
by notice to the contrary.

     (c) The Notes are being issued by means of a book-entry-only system with no physical
distribution of certificates to be made except as provided in the Indenture. The book-entry system
maintained by DTC will evidence ownership of the Notes, with transfers of ownership effected on the
records of DTC and its participants pursuant to rules and procedures established by DTC and its
participants. The Trust and the Indenture Trustee will recognize Cede & Co., as nominee of DTC, as
the registered owner of the Notes, as the Holder of the Notes for all purposes, including payment
of principal, premium (if any) and interest, notices and voting. Transfer of principal, premium
(if any) and interest to participants of DTC will be the responsibility of DTC, and transfer of
principal, premium (if any) and interest to beneficial holders of the Notes by participants of DTC
will be the responsibility of such participants and other nominees of such beneficial holders. So
long as the book-entry system is in effect, the selection of any Notes to be redeemed or repaid
will be determined by DTC pursuant to rules and procedures established by DTC and its participants.
Neither the Trust nor the Indenture Trustee shall be responsible or liable for such transfers or
payments or for maintaining, supervising or

28

 

reviewing the records maintained by DTC, its participants or persons acting through such
participants.

     (d) This Note or portion hereof may not be exchanged for Definitive Notes, except in the
limited circumstances provided for in the Indenture. The transfer or exchange of Definitive Notes
shall be subject to the terms of the Indenture. No service charge will be made for any
registration of transfer or exchange, but the Trust may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

Section 15. GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

29

 

OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably request(s) and instruct(s) the Trust to repay this Note (or
portion hereof specified below) pursuant to its terms at a price equal to the Principal Amount
hereof together with interest to the repayment date, to the undersigned, at:

	 	 	 
	 
	 
	 	 
	 

(Please print or typewrite name and address of the undersigned).

     For this Note to be repaid, the Indenture Trustee (or the Paying Agent on behalf of the
Indenture Trustee) must receive at its Corporate Trust Office, or at such other place or places of
which the Trust shall from time to time notify the Holder of this Note, not more than sixty (60)
nor less than thirty (30) days prior to a Repayment Date, if any, shown on the face of this Note,
this Note with this “Option to Elect Repayment” form duly completed.

     If less than the entire Principal Amount of this Note is to be repaid, specify the portion
hereof (which shall be in increments of $1,000) which the Holder elects to have repaid and specify
the denomination or denominations (which shall be $___or an integral multiple of $1,000 in
excess of $___) of the Notes to be issued to the Holder for the portion of this Note not being
repaid (in the absence of any such specification, one such Note will be issued for the portion not
being repaid).

	 	 	 	 	 	 	 
	$
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	DATE:	 	 	NOTICE: The signature on this Option to Elect Repayment must correspond with the name as written upon the face of
this Note in every particular, without alteration or
enlargement or any change whatever.
	 
	 	 	 	 	 	 
	 
	Principal Amount to be repaid, if amount to be repaid is less than the
Principal Amount of this Note (Principal Amount remaining must be an authorized
denomination)	 	Fill in for registration of Notes
if to be issued otherwise than
to the registered Holder:
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	$

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Please print name and
address including zip code)

          SOCIAL SECURITY OR OTHER TAXPAYER ID NUMBER:                                         

30

 

SCHEDULE I

Amortization Table or Formula

Not applicable

31

 

SCHEDULE II

SPREAD:

     The Spread for this Note for the indicated periods is as follows:

	 	 	 	 	 
	Period	 	Spread	 
	From and including September 26, 2006 to but excluding the Interest
Payment Date occurring in September 2009
	 	 	0.03	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September
2009 to but excluding the Interest Payment Date occurring in
September 2010
	 	 	0.04	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September
2010 to but excluding the Interest Payment Date occurring in
September 2011
	 	 	0.05	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September
2011 to but excluding the Interest Payment Date occurring in
September 2013
	 	 	0.06	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September
2013 to but excluding the Interest Payment Date occurring in
September 2015
	 	 	0.07	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September
2015 to but excluding the Stated Maturity Date
	 	 	0.08	%
	 
	 	 	 	 

OPTIONAL REDEMPTION:

     On any Interest Payment Date occurring prior to the Stated Maturity Date, the Trust may elect
to redeem this Note, in whole or in part, upon not less than five (5) Business Days’ notice to the
holder of this Note. The Trust will redeem this Note at a redemption price equal to 100% of the
Principal Amount of this Note to be redeemed plus any accrued and unpaid interest thereon. For the
avoidance of doubt, the Trust will elect to redeem this Note solely upon the election of ING USA to
redeem a corresponding amount under the Funding Agreement.exv4w3

 

Exhibit 4.3

FUNDING AGREEMENT

	 	 	 	 	 
	CONTRACT NO.:

	 	RMTN-3

	 
	 	 	 	 
	OWNER:

	 	ING USA Global Funding Trust 3

	 
	 	 	 	 
	STATE OF DELIVERY:

	 	Colorado

	 
	 	 	 	 
	EFFECTIVE DATE:

	 	September 26, 2006

	 
	 	 	 	 
	INITIAL MATURITY DATE:

	 	As specified in Schedule A

	 
	 	 	 	 
	EXPIRATION DATE:

	 	September 29, 2016

	 
	 	 	 	 
	DEPOSIT:

	 	$400,000,015	 	 
	 
	 	 	 	 
	NET DEPOSIT:

	 	$399,480,000	 	 

ING USA Annuity and Life Insurance Company (“Insurance Company”) agrees in consideration of its
receipt of the Net Deposit, and subject to the conditions and provisions of this Contract, to pay
the Contract Payments specified herein.

The conditions and provisions set out on the attached pages form a part of this Contract as fully
as if stated over the signatures below.

Entered into as of the Effective Date.

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	ING USA GLOBAL FUNDING TRUST 3	 	ING USA ANNUITY AND LIFE INSURANCE

COMPANY
	 
	 	 	 	 	 	 
	By U.S. Bank National	 	By:
	 	/s/ Harry N. Stout
	 
	Association, not in its	 	Name:
	 	Harry N. Stout	 
	individual capacity but solely	 	Title:
	 	President	 
	as Trustee of ING USA Global	 	 	 	 
	Funding Trust 3	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ S. Dodson
	 	By:
	 	/s/ Joy N. Benner
	 
	Name:
	 	Seth Dodson	 	Name:
	 	Joy N. Benner	 
	Title:
	 	VP	 	Title:
	 	Secretary	 
	 
	 
	 
	 	 	 	 	By:
	 	/s/ Karen Czizik
	 
	 	 	 	 	Name:
	 	Karen Czizik	 
	 	 	 	 	Title:
	 	Vice President	 

This Contract is issued from the Insurance Company’s general account. This Contract provides for
the payment of certain amounts to the Owner as provided herein. Early Contract terminations may
occur only as expressly provided herein, and transfers and sales of this Contract or any interest
hereunder are subject to the restrictions set forth herein. The Initial Maturity Date may be
extended as described herein up to, but not beyond, the Expiration Date.

 Page 1

 

 

ARTICLE I

DEFINITIONS

	1.1	 	“Additional Amounts” shall have the meaning provided in Section 3.6(i).
	 
	1.2	 	“Amortized Amount” shall have the meaning set forth in Schedule A.
	 
	1.3	 	“Assignment” means that certain Assignment of Funding Agreement duly executed by the Trust,
the Indenture Trustee, the Insurance Company and the custodian of this Contract, effecting the
Collateral Assignment.
	 
	1.4	 	“Beneficial Note Owner” means a holder or beneficial owner of any Note or Notes.
	 
	1.5	 	“Business Day” means any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which commercial banks are authorized or required by law, regulation or
executive order to close in The City of New York and any day as specified in Schedule A.
	 
	1.6	 	“Business Day Convention” means a convention for adjusting any date if it would otherwise
fall on a day that is not a Business Day. The Business Day Convention for purposes of this
Contract shall be as specified in Schedule A and defined herein.

	 	(i)	 	Following Business Day Convention means that, if a relevant payment
date is not a Business Day, such date shall be postponed to the first following day
that is a Business Day.
	 
	 	(ii)	 	Modified Following Business Day Convention means that, if a relevant
payment date is not a Business Day, such date shall be postponed to the first following
day that is a Business Day unless that day falls in the next calendar month, in which
case that date will be the first preceding day that is a Business Day.
	 
	 	(iii)	 	Preceding Business Day Convention means that, if a relevant payment
date that is not a Business Day, such date shall be brought forward to the first
preceding day that is a Business Day.
	 
	 	(iv)	 	FRN Convention or Eurodollar Convention means, for each
relevant payment date that is not a Business Day, such date shall be postponed to the
date which numerically corresponds to the preceding relevant payment date in the
calendar month which is the Month Count after the calendar month in which the preceding
relevant date occurred, provided that:

	 	(a)	 	if there is no such numerically corresponding day in the
calendar month in which any relevant payment date should occur, then the date
will be the last day which is a Business Day in that calendar month;
	 
	 	(b)	 	if the date would otherwise fall on a day which is not a
Business Day, then such date will be the first following day which is a
Business Day unless that day falls in the next calendar month, in which case it
will be the first preceding day which is a Business Day; and
	 
	 	(c)	 	if the preceding relevant payment date occurred on the last day
in a calendar month which was a Business Day, then all subsequent such dates
will be the last day which is a Business Day in the calendar month which is the
specified number of months
after the calendar month in which the preceding relevant payment date
occurred.

 Page 2

 

 

	1.7	 	“Collateral Assignment” means a collateral assignment of the rights and interests in this
Contract by the Trust to the Indenture Trustee.
	 
	1.8	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	1.9	 	“Contract” means this Funding Agreement, including Schedule A attached hereto.
	 
	1.10	 	“Contract Payments” means all payments of Deposit and/or Interest and/or Additional Amounts,
if any, to be made to the Owner pursuant to the terms of this Contract, including, without
limitation, any payments made to the Owner in connection with any Repayment Date.
	 
	1.11	 	“Currency” means the lawful money of the United States of America (“U.S. Dollars”) or such
other currency that may be specified in Schedule A.
	 
	1.12	 	“Day Count Convention” means, in respect of the calculation of an amount of Interest for any
Interest Period, the Day Count Convention specified for purposes of this Contract in Schedule
A and defined herein.

	 	(i)	 	Actual/365 or Actual/Actual means the actual number of days in
the Interest Period divided by 365 (or, if any portion of the Interest Period falls in
a leap year, the sum of (A) the actual number of days in that portion of the Interest
Period falling in a leap year divided by 366 and (B) the actual number of days in that
portion of the Interest Period falling in a non-leap year divided by 365).
	 
	 	(ii)	 	Actual/365 (FIXED) means the actual number of days in the Interest
Period divided by 365.
	 
	 	(iii)	 	Actual/360 means the actual number of days in the Interest Period
divided by 360.
	 
	 	(iv)	 	30/360 means the number of days in the Interest Period divided by 360
(the number of days to be calculated on the basis of a year of 360 days with twelve
30-day months (unless (i) the last day of the Interest Period is the 31st day of a
month and the first day of the Interest Period is a day other than the 30th or 31st day
of a month, in which case the month that includes that last day shall not be considered
to be shortened to a 30-day month, or (ii) the last day of the Interest Period is the
last day of the month of February, in which case the month of February shall not be
considered to be lengthened to a 30-day month)).

	1.13	 	“Deposit” means the principal amount which is scheduled to be paid by the Insurance Company
to the Owner on the Expiration Date or such earlier date this Contract is terminated, subject
to any scheduled payment of all or a portion thereof as provided in Section 3.7(ii) and any
pre-payment of such amount prior to the Expiration Date and to adjustment of such principal
amount pursuant to Section 3.1(ii).
	 
	1.14	 	“Effective Date” means the date on which the rights and obligations of the Owner and the
Insurance Company take effect. The Effective Date for this Contract is as stated on Page 1.
	 
	1.15	 	“Event of Default” means the occurrence of one or any combination of the following:

	 	(i)	 	Any payment of Interest, premium (if applicable) or Additional Amount (if any)
under this Contract has not been paid within seven (7) Business Days of the date such
payment is due and payable.

 Page 3

 

 

	 	(ii)	 	Any payment of the Deposit under this Contract has not been paid within one (1)
Business Day of the date such payment is due and payable.
	 
	 	(iii)	 	(a) A court having jurisdiction in the premises has entered a decree or order
for relief in respect of the Insurance Company in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect of
the United States of America or any other applicable jurisdiction, which decree or
order is not stayed; or any other similar relief has been granted under any applicable
law; or (b) an insolvency case has been commenced against the Insurance Company under
any applicable bankruptcy, insolvency or other similar law now or hereafter in effect
of the United States of America or any other applicable jurisdiction; or a decree or
order of a court having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar powers
over the Insurance Company, or over all or a substantial part of its property, has been
entered; or there has occurred the involuntary appointment of an interim receiver,
trustee or other custodian of the Insurance Company for all or a substantial part of
its property; or a court having jurisdiction in the premises has entered a decree or
order declaring the dissolution of the Insurance Company; or a warrant of attachment,
execution or similar process has been issued against any substantial part of the
property of the Insurance Company and any such event described in this clause (iii) has
not been dismissed within sixty (60) days.
	 
	 	(iv)	 	(a) The Insurance Company has an order for relief entered with respect to it or
commences a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect of the United States of America or any other applicable
jurisdiction, or consents to the entry of an order for relief in an involuntary case,
or to the conversion of an involuntary case to a voluntary case, under any such law, or
consents to the appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; or the Insurance Company makes
any assignment for the benefit of creditors; or (b) the Insurance Company fails or is
unable, or the Insurance Company admits in writing its inability, to pay its debts as
such debts become due; or the Board of Directors of the Insurance Company adopts any
resolution or otherwise authorizes any action to approve or for the purpose of
effecting any of the actions referred to in this clause (iv).

	1.16	 	“Expiration Date” means the date specified on Page 1, which is the date on which this
Contract is scheduled to terminate, or, if such day is not a Business Day, the immediately
succeeding Business Day.
	 
	1.17	 	“Fixed Rate Note” means any Note that bears interest at a fixed rate.
	 
	1.18	 	“Floating Rate Note” means any Note that bears interest at a floating rate.
	 
	1.19	 	“Guaranteed Fund” means the book value account established by the Insurance Company in its
accounting records for this Contract. The Guaranteed Fund reflects credit and debit
transactions under this Contract as provided in Section 2.1.
	 
	1.20	 	“Indenture Trustee” means the indenture trustee for the Notes.
	 
	1.21	 	“Insurance Company” means ING USA Annuity and Life Insurance Company.
	 
	1.22	 	“Interest” means the earnings, if any, for this Contract calculated and accrued pursuant to
Article II.

Page 4

 

 

	1.23	 	“Interest Rate” means the rate(s) specified in Schedule A, or determined in accordance with
the provisions therein, at which Interest is to be earned under this Contract; provided,
however, that if this Contract is non-interest bearing the Interest Rate shall equal “0.00%”.
	 
	1.24	 	“IRS” means the Internal Revenue Service.
	 
	1.25	 	“Maturity Date” means the earlier to occur of (i) the Expiration Date, (ii) the date on which
the balance of the Deposit remaining in the Guaranteed Fund and any other amounts due and
owing under this Contract are paid to the Owner, or (iii) such other date on which this
Contract is terminated in its entirety in accordance with the provisions of Article IV.
	 
	1.26	 	“Month Count” means the number of months specified in Schedule A.
	 
	1.27	 	“Net Deposit” means the Net Deposit amount set out on Page 1.
	 
	1.28	 	“Note” means any note of indebtedness issued by the Trust and secured by this Contract.
	 
	1.29	 	“Owner” means the Owner designated on Page 1 as the Owner of this Contract on the Effective
Date, or such other party to whom this Contract is later transferred or collaterally assigned
in accordance with the provisions in Article V.
	 
	1.30	 	“Principal Financial Centers” means the financial center(s) specified in Schedule A.
	 
	1.31	 	“Repayment Date” means the date(s) specified in Schedule A for repayment to the Owner of part
or all of the Deposit as set forth therein, as the same may be adjusted in accordance with the
Business Day Convention.
	 
	1.32	 	“Securities Act” means the Securities Act of 1933, as amended.
	 
	1.33	 	“Specifications” means the terms specific to and that shall govern this Contract, as listed
on Schedule A.
	 
	1.34	 	“Taxes” means any present or future taxes, duties, levies, assessments, or other governmental
charges of whatever nature imposed or levied by or on behalf of any governmental authority in
the United States having power to tax.
	 
	1.35	 	“Trust” means ING USA Global Funding Trust 3.
	 
	1.36	 	“Trust Tax Event” means that the Insurance Company has received an opinion of independent
legal counsel stating in effect that as a result of (a) any amendment to, or change (including
any announced prospective change) in, the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority thereof or therein or (b) any
amendment to, or change in, an interpretation or application of any such laws or regulations
by any governmental authority in the United States, which amendment or change is enacted,
promulgated, issued or announced on or after the Effective Date of this Contract, there is
more than an insubstantial risk that (i) the Trust is, or will be within 90 days of the date
thereof, subject to United States federal income tax with respect to Interest accrued or
received pursuant to this Contract or (ii) the Trust is, or will be within 90 days of the date
thereof, subject to more than a de minimis amount of taxes, duties or other governmental
charges.

 Page 5

 

 

	1.37	 	“Withholding Tax Event” means that (a) the Insurance Company has received an opinion of
independent legal counsel stating in effect that as a result of (i) any amendment to, or
change (including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any political subdivision or taxing authority thereof or
therein or (ii) any amendment to, or change in, an interpretation or application of any such
laws or regulations by any governmental authority in the United States, which amendment or
change is enacted, promulgated, issued or announced on or after the Effective Date of this
Contract, a material probability exists that the Insurance Company will be required to pay
additional amounts to the Trust to reflect any required withholding or deduction under this
Contract, or (b) as a result of (i) any amendment to, or change (including any announced
prospective change) in, the laws (or any regulations thereunder) of the United States or any
political subdivision or taxing authority thereof or therein or (ii) any amendment to, or
change in, an interpretation or application of any such laws or regulations by any
governmental authority in the United States, which amendment or change is enacted,
promulgated, issued or announced on or after the Effective Date of this Contract, the
Insurance Company is required to pay additional amounts to the Trust to reflect any required
withholding or deduction under this Contract.

Capitalized terms used herein but not otherwise defined shall have the meaning set forth in
Schedule A hereto.

ARTICLE II

ESTABLISHMENT AND MAINTENANCE OF

GUARANTEED FUND

	2.1	 	Establishment of Guaranteed Fund
	 
	 	 	Provided the Net Deposit is received by the Insurance Company on the Effective Date,
the Insurance Company shall establish the Guaranteed Fund as of such date. Upon receipt of
the Net Deposit, an amount equal to the Deposit shall be credited to the Guaranteed Fund.
Interest shall be credited to the Guaranteed Fund on the date such Interest is earned in
accordance with Schedule A. Each Contract Payment shall be deducted from the Guaranteed
Fund on the date it is paid. Unless otherwise specified in Schedule A, the balance of the
Guaranteed Fund at any given time shall equal the Deposit less the amount of any adjustments
to the principal amount of the Deposit pursuant to Section 3.1(ii), plus Interest earned and
credited thereon, less Contract Payments made, if any, other than pursuant to Section
3.1(ii).

ARTICLE III

PROCEDURE FOR PAYOUT

	3.1	 	Contract Payments

	 	(i)	 	Contract Payments shall be paid to the Owner on the Interest Payment Dates
specified in Schedule A, if any, and the Repayment Dates. All monies payable to or by
the Insurance Company under this Contract shall be made via wire transfer in
immediately available funds or other mutually agreed upon method in the Currency. The
amount of the Contract Payment for an Interest Payment Date shall include accrued but
previously unpaid Interest plus any Additional Amounts which may be due and owing at
such time. If an Interest Payment Date is also a Repayment Date, the Contract Payment
will include the portion of the Deposit

Page 6

 

 

	 	 	 	scheduled to be repaid on such date plus
Interest accrued but not previously paid in
accordance with Schedule A. If a Repayment Date is not also an Interest Payment
Date, the Contract Payment will include the portion of the Deposit scheduled to be
repaid on such date plus any Additional Amounts which may be due and owing at such
time, but will not include any accrued but previously unpaid Interest; provided,
however, that if on the Repayment Date, a percentage of the balance of the
Guaranteed Fund is specified in Schedule A to be paid to the Owner, then such
payment will include a pro rata portion of Interest and the Deposit. If an Interest
Payment Date and/or a Repayment Date is also the Maturity Date, the Contract Payment
will equal (a) the balance of the Guaranteed Fund on that date, plus (b) Additional
Amounts which may be due and owing at that time, if any. Concurrent with the
Insurance Company making such Contract Payment on the Maturity Date, all rights and
obligations under this Contract shall terminate.
	 
	 	(ii)	 	In addition to the scheduled payments set forth in Section 3.1(i) and Section
3.7, in the event that the Trust purchases some or all of the Notes in the open market
(or otherwise) with the prior written consent of the Insurance Company as to both the
making of such purchase and the purchase price to be paid for such Notes (such right of
consent to be exercised in the Insurance Company’s sole discretion), a Contract Payment
equal to such portion (or the entirety) of the current balance of the Deposit in the
Guaranteed Fund as may be necessary to fund the purchase of such Notes shall be paid to
or at the direction of the Trust on such date or dates to which the Trust and the
Insurance Company may agree. Upon such payment, the balance of the Deposit shall be
reduced (a) with respect to any purchase of Fixed Rate Notes or Floating Rate Notes by
the Trust, by an amount equal to the aggregate principal amount of the Notes as
purchased (or the portion thereof applicable to this Contract), and (b) with respect to
any purchase of Notes other than Fixed Rate Notes or Floating Rate Notes by the Trust,
by an amount to be agreed between the Trust and the Insurance Company to reflect such
Contract Payment under this Contract.
	 
	 	(iii)	 	If a Contract Payment is not made as scheduled due to the closure, for any
reason, of the wire transfer system(s) or financial market(s) in one or more Principal
Financial Centers, that Contract Payment shall be paid on the first Business Day
thereafter that the relevant systems and markets are open. In the event a Contract
Payment is so delayed, the total dollar amount of the delayed Contract Payment when
paid shall remain unchanged and shall include only such amounts of Interest and Deposit
as were originally included in that payment, with subsequent scheduled Contract
Payments also unchanged by the delay.
	 
	 	(iv)	 	Notwithstanding any provision in this Contract which may be to the contrary, no
adjustments will be made to amounts owed hereunder if a Contract Payment is delayed as
a result of the Owner’s failure to provide complete and accurate wire transfer
instructions to the Insurance Company.
	 
	 	(v)	 	Contract Payments will be computed on a book value basis (i.e. deposits to this
Contract, plus accrued Interest, less previous Contract Payments, if any),without
adjustment for investment gain or loss.
	 
	 	(vi)	 	Unless a different Business Day Convention is specified in Schedule A with
regard to certain Contract Payments, all Contract Payments shall be subject to the
Business Day Convention specified in Section I of Schedule A.

	3.2	 	Optional Redemptions or Repayments

 Page 7

 

 

	 	 	If so specified in Schedule A and subject to any restrictions provided therein, the
Insurance
Company shall pay to the Owner one or more Contract Payments in an amount sufficient to
redeem or repay the Notes backed by this Contract, pursuant to any limited right of
redemption or repayment contained in such Notes. The Insurance Company may require
reasonable evidence that the redemption or payment request satisfies all of the terms and
conditions described in the prospectus, prospectus supplement and/or pricing supplement
applicable to such Note(s).
	 
	3.3	 	Contract Pre-Payments 
	 
	 	 	Except as otherwise provided herein and as may be specified in Schedule A, there shall be no
pre-payments or other unscheduled withdrawals of funds under this Contract.
	 
	3.4	 	Surrender Value
	 
	 	 	This Contract may not be surrendered nor will any funds be paid to the Owner under this
Contract except in accordance with the terms hereof.
	 
	3.5	 	No Loans
	 
	 	 	The Insurance Company will not make any loans on the security of this Contract.
	 
	3.6	 	Additional Amounts

	 	(i)	 	All payments due to be made by the Insurance Company to the Owner under the
terms of this Contract will be made without any withholding or deduction for or on
account of any Taxes unless the Insurance Company has specified in Schedule A that they
have agreed to pay Additional Amounts or such withholding or deduction is required by
law. Subject to Section 4.3, if such withholding or deduction is required by law and
the Insurance Company has specified in Schedule A that they have agreed to pay
Additional Amounts, the Insurance Company will pay such Additional Amounts as may be
required so that the amount received by the Trust or a Beneficial Note Owner under its
Note(s), as applicable (net of any such withholding or deduction under this Contract or
any Note(s)), will equal the amount that would have been paid under this Contract or
under any such Note(s), as the case may be, had no such deduction or withholding been
required.
	 
	 	(ii)	 	Notwithstanding anything herein to the contrary, the Insurance Company shall
not be required to make any payment of any Additional Amounts in accordance with
Section 3.6(i) for or on account of:

	 	(a)	 	any Taxes imposed which would not have been imposed but for the
existence of (1) any present or former connection between the Trust or a
Beneficial Note Owner and the United States, including, without limitation,
being or having been a citizen or resident thereof, or being or having been
present therein or engaged in a trade or business therein, or (2) the Trust’s
or such Beneficial Note Owner’s status as incorporated therein, or having or
having had a permanent establishment therein, or being or having been a
controlled foreign corporation, a personal holding company, a passive foreign
investment company, a corporation that has accumulated earnings to avoid United
States federal income tax or a private foundation or other tax-exempt
organization, or being or having been an actual or constructive owner of 10% or
more of the total combined voting power of all shares of the Insurance Company;

 Page 8

 

 

	 	(b)	 	any Taxes imposed which would not have been imposed but for the
presentation by the Trust of this Contract or by a Beneficial Note Owner of any
related Note(s) to the Trust (where presentation is required) for payment on a
date more than 30 days after the date on which such payment becomes due and
payable or the date on which payment is duly provided for, whichever occurs
later, except to the extent the Trust or the Beneficial Note Owner would have
been entitled to Additional Amounts had this Contract or the Note(s), as the
case may be, been presented on the last day of such period of 30 days;
	 
	 	(c)	 	any Taxes which are imposed or withheld solely by reasons of
the failure of the Trust or a Beneficial Note Owner to comply with
certification, identification or information reporting requirements concerning
the nationality, residence, identity or connection with the United States of
the Trust or Beneficial Note Owner, if compliance is required by statute, by
regulation of the United States Treasury Department, by judicial or
administrative interpretation of such statute or regulation or by an applicable
income tax treaty to which the United States is a party as a precondition to
exemption from such Taxes;
	 
	 	(d)	 	any inheritance, gift, estate, personal property, sales or
transfer Taxes;
	 
	 	(e)	 	any Taxes that are payable otherwise than by withholding from
payments in respect of this Contract or the related Notes;
	 
	 	(f)	 	any Taxes which are imposed by reason of the Trust or a
Beneficial Note Owner being or having been a bank for United States federal
income tax purposes whose receipt of interest on the Notes is described in
section 881(c)(3)(A) of the Code;
	 
	 	(g)	 	any Taxes imposed by reason of payments on this Contract or the
related Notes being treated as contingent interest described in section
871(h)(4) of the Code;
	 
	 	(h)	 	any Taxes that would not have been imposed but for an election
by the Trust or a Beneficial Note Owner the effect of which is to make payment
in respect of the Notes subject to United States federal income tax;
	 
	 	(i)	 	any tax, duty, levy, assessment or governmental charge of any
taxing authority other than the United States, any political subdivision
thereof or any authority or agency therein or thereof having the power to tax;
or
	 
	 	(j)	 	any combination of items (a), (b), (c), (d), (e), (f), (g), (h)
and (i) above.

	3.7	 	Extension of Initial Maturity Date

	 	(i)	 	Subject to the following conditions, to the extent corresponding elections to
extend the maturity of all or a portion of the Notes are made by the holders thereof,
the Owner shall elect, on an Election Date specified in Schedule A, to extend the
Initial Maturity Date of this Contract with respect to all or a corresponding portion
of the Deposit, to the 29th day of the calendar month which is three calendar months
after (1) the Initial Maturity Date (in the case of the initial extension of the
Initial Maturity Date) or (2) any later date to which the Initial Maturity Date has
previously been extended. Such extended Initial Maturity Date shall be a

  Page 9

 

 

	 	 	 	Repayment
Date and the Contract Payment made on such Repayment Date will equal the
applicable Deposit amount plus all accrued, but previously unpaid, Interest thereon
plus Additional Amounts, if any.

	 	(a)	 	The Owner must deliver to the Insurance Company an election
notice on the applicable Election Date, which election notice will be
irrevocable.
	 
	 	(b)	 	The Initial Maturity Date may be extended with respect to all
or any portion of the Deposit equal to $100,000 and integral multiples of
$1,000 in excess thereof.
	 
	 	(c)	 	Notwithstanding clause (a) above, if the Owner fails to make an
election as described in clause (i) above, and the holders of the Notes have
made elections to extend the then-current maturity of all or a portion of the
Notes, the Initial Maturity Date (or any later date to which the Initial
Maturity Date has been extended) shall be deemed to be extended with respect to
a corresponding portion of the Deposit in the same manner as described in
clause (i) above.

	 	(ii)	 	If, on an applicable Election Date, the Owner does not notify the Insurance
Company as provided in Section 3.7(i) that it is electing to extend the Initial
Maturity Date (or any later date to which the Initial Maturity Date has been extended)
or notifies the Insurance Company that it is extending the Initial Maturity Date (or
any later date to which the Initial Maturity Date has been extended) with respect to
only a portion of the Deposit, such portion of the Deposit for which the Initial
Maturity Date has not been extended will become due and payable on the applicable
Repayment Date.

ARTICLE IV

TERMINATIONS

	4.1	 	Termination Prior to the Expiration Date
	 
	 	 	This Contract may be terminated prior to the Expiration Date only as provided in this
Article IV and as may be provided in Schedule A. In the event such termination occurs, the
balance in the Guaranteed Fund plus Additional Amounts that may be due and owing as of the
date of such termination, if any, shall become immediately due and payable to the Owner.
All rights and obligations under this Contract will terminate concurrently with the payment
of such amounts to the Owner.
	 
	4.2	 	Termination for Default Event

	 	(i)	 	This Contract will terminate automatically if an Event of Default specified in
Section 1.15(iii) or 1.15(iv) occurs.
	 
	 	(ii)	 	Upon the occurrence of an Event of Default specified in Section 1.15(i) or
1.15(ii), the Owner shall have the right to terminate this Contract by giving prior
written notice to the Insurance Company.

	 	4.3	 	Termination for Withholding Tax Event

 Page 10

 

 

	 	 	 	Upon the occurrence of a Withholding Tax Event, the Insurance Company may terminate this
Contract by giving not less than thirty (30) days and no more than sixty (60) days prior
written notice to the
Owner.
	 
	 	4.4	 	Termination for Trust Tax Event
	 
	 	 	 	Upon the occurrence of a Trust Tax Event, the Insurance Company may terminate this Contract
by giving not less than thirty-five (35) days and no more than sixty (60) days prior written
notice to the Owner.
	 
	 	4.5	 	Termination Prior to the Expiration Date upon Pre-Payment
	 
	 	 	 	This Contract will terminate automatically upon the Insurance Company making a Contract
Payment to the Owner prior to the Expiration Date in accordance with Section 3.1(ii),
Section 3.7(ii) or any optional redemption or pre-payment provisions set forth in Schedule A
or on any Repayment Date, if such Contract Payment is equal to the balance of the Guaranteed
Fund as of such date, plus Additional Amounts, if any, that may be due and owing at that
time.
	 
	 	4.6	 	Termination on Expiration Date
	 
	 	 	 	Unless terminated prior to the Expiration Date as provided above, this Contract will
terminate automatically on the Expiration Date concurrently with the Insurance Company
making a Contract Payment to the Owner equal to the balance of the Guaranteed Fund as of the
Expiration Date, plus Additional Amounts, if any, that may be due and owing as of the
Expiration Date. All rights and obligations under this Contract will terminate upon the
Insurance Company’s payment in full of that Contract Payment.

ARTICLE V

MISCELLANEOUS

	5.1	 	Entire Contract

	 	(i)	 	This Contract, including Schedule A, any rider, endorsement, exhibit, or
amendment that may be attached hereto, constitutes the final and entire agreement
between the Insurance Company and the Owner. There are no promises or obligations
other than those contained herein.
	 
	 	(ii)	 	The Insurance Company may issue this Contract as duplicate originals.
Originals so issued shall constitute the same contract and the Insurance Company’s
obligations shall not be increased or expanded because of the issuance of the duplicate
originals.

	5.2	 	Supplemental Agreements
	 
	 	 	Within ninety (90) days of the date of issuance of this Contract, the Insurance Company may
(i) issue to the Owner one or more additional funding agreements and may provide in any such
additional funding agreement that any such additional funding agreement shall constitute
part of the same obligation of the Insurance Company as this Contract or (ii) increase the
Deposit, Net Deposit and Guaranteed Fund and any other applicable funds on balance under
this Contract by written agreement

 Page 11

 

 

	 	 	with the Trust (any such additional funding agreement or
written agreement, a “Supplemental Agreement”), and such Supplemental Agreement shall be
subject to the same terms and conditions of this Contract (including those set forth in
Schedule A), except that the Effective Date, the Deposit, the
Net Deposit, and any other applicable funds on balance under this Contract and the date and
amount of the first Interest payment, if any, may be different with respect to such
Supplemental Agreement; provided that the issuance of such Supplemental Agreement will
satisfy the conditions of Treasury Regulation Section 1.1275-2(k)(2)(ii) and will constitute
a “Qualified Reopening” under Treasury Regulation Section 1.1275-2(k)(3)(ii) (without regard
to subparagraph (A) thereof).
	 
	5.3	 	Assignments and Transfers
	 
	 	 	This Contract and any right, title or interest in, to or under this Contract (including,
without limitation, any right to receive payments) may not be assigned, sold or otherwise
transferred except upon prior mutual written consent of the Owner and the Insurance Company.
Assignments, Collateral Assignments, sales or other transfers by the Owner (a) may be made
only to U.S. Persons (as defined in Section 7701(a)(30) of the Code), (b) will be effective
only after they are recorded on the book entry system maintained by the Insurance Company
within the meaning of United States Treasury Regulation Section 1.871-14(c)(1)(i), (c) must
be registered or fall within an available exemption from registration of this Contract as a
security under the Securities Act and must be conducted in accordance therewith, and (d)
will only be effective and recorded in the Insurance Company’s book entry system after the
Insurance Company receives from the proposed owner or assignee such certificates,
documentation and opinions as the Insurance Company may reasonably request; provided,
however, that for purposes of a Collateral Assignment by the Trust to the Indenture Trustee,
such certificates, documentation and opinions shall be limited to (i) the Assignment and
(ii) if requested by the Insurance Company, a completed and duly executed IRS Form W-9 or
such other IRS forms as the Insurance Company, upon the advice of its counsel, is required
to obtain from the Indenture Trustee. In addition to the foregoing, the Indenture Trustee
must agree to provide to the Insurance Company as of the date of the Assignment, or within
ten (10) Business Days following such date, complete written wire transfer instructions for
the account to which the Contract Payments are to be delivered and appropriate contact
information for the delivery of notices or other information to and for contacting the
Indenture Trustee.
	 
	5.4	 	Directions and Information
	 
	 	 	The Insurance Company shall be entitled to rely and act solely on the reports, directions,
proofs, notices, elections and other information furnished to it by the Owner or the Owner’s
agent, which shall be conclusive and binding as to all persons or entities claiming an
interest hereunder.
	 
	5.5	 	Notice
	 
	 	 	All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed to have been given or made upon delivery in person or by registered or
certified mail (postage prepaid, return receipt requested), by overnight courier service
(charges prepaid) or by confirmed facsimile, to the following addresses:

(a)   if to the Owner, to:

ING USA Global Funding Trust 3

c/o U.S. Bank National Association

Attn: Corporate Trust Services

 Page 12

 

 

950 17th Street, Suite 300

Denver, CO 80202

Fax: (303) 585-6865

With a copy to:

ING USA Global Funding Trust 3

c/o U.S. Bank National Association

Corporate Trust Services

209 S. LaSalle Street, Suite 300

Chicago, Illinois 60604

Attention: Patricia Child, VP

Telephone: (312) 325-8902

Facsimile: (212) 325-8905

and,

Citibank, N.A.

Agency & Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Fax: (212) 816-5527

(b)    if to the Insurance Company, to:

ING USA Annuity and Life Insurance Company

c/o ING Institutional Markets

1290 Broadway

Denver, CO 80203-5699

Fax: (303) 860-2690

	 	 	Either party hereto may change its address for purposes of receiving notices and other
communications by providing a notice to the other party as required herein.
	 
	5.6	 	Non-Waiver of Contract Provisions
	 
	 	 	Failure of the Insurance Company or the Owner to enforce any provision of this Contract at
any particular time or in any particular circumstances shall not operate to waive or modify
such provision, nor shall it in any manner render such provision unenforceable at any other
time or to any other occurrence, whether or not the circumstances are the same.
	 
	5.7	 	Status of Guaranteed Fund
	 
	 	 	All monies under this Contract shall be part of the general corporate funds of the Insurance
Company.
	 
	5.8	 	Ownership

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	 	 	Subject to any statutory restrictions, the Owner shall have and exercise all rights, powers
and privileges under this Contract. Nothing in this Contract shall confer any rights
whatsoever to any third
party, nor shall any of its terms be enforceable by any third party who is not a party to
this Contract, except as otherwise agreed by the Insurance Company in writing.
	 
	5.9	 	Non-Participating
	 
	 	 	This Contract shall not participate or share in the earnings of the Insurance Company.
	 
	5.10	 	Effect of Signature& Limitation of Liability
	 
	 	 	It is expressly understood and agreed by the parties hereto that (a) this Contract is
executed and delivered by U.S. Bank National Association, not individually or personally but
solely as trustee of the Trust, in the exercise of the powers and authority conferred and
vested in it, (b) each of the representations, undertakings and agreements herein made on
the part of the Trust, as Owner, is made and intended not as personal representations,
undertakings and agreements by U.S. Bank National Association, but is made and intended for
the purpose of binding only the Trust, (c) nothing herein contained shall be construed as
creating any liability on U.S. Bank National Association, individually or personally, to
perform any covenant, either expressed or implied, contained herein, all such liability, if
any, being expressly waived by the parties hereto and by any person claiming by, through or
under the parties hereto and (d) except as otherwise may be expressly provided under the
terms of that certain Trust Agreement establishing the Trust, under no circumstances shall
U.S. Bank National Association be personally liable for the payment of any indebtedness or
expenses of the Trust under this Agreement.
	 
	5.11	 	Amendment
	 
	 	 	The Owner and the Insurance Company may mutually agree, in a writing signed by each party,
to modify this Contract at any time without the consent of any other person or entity.
	 
	5.12	 	Insurance Company’s Disclaimers
	 
	 	 	It is expressly understood and agreed that the Insurance Company makes no representation as
to the authority of the Owner to enter into or perform under this Contract or as to the
legal or tax implications of this Contract for the Owner or any other person or entity. In
performing its obligations hereunder, the Insurance Company is not acting as a fiduciary,
agent or other advisor or representative for the Trust or any other person or entity with
respect to this Contract.
	 
	5.13	 	Owner’s Representations

	 	(i)	 	The Owner represents that:

	 	(a)	 	it is not subject to any Taxes as would constitute a
Withholding Tax Event;
	 
	 	(b)	 	it is not subject to any Taxes as would constitute a Trust Tax
Event; and
	 
	 	(c)	 	if requested by the Insurance Company, it will provide the
Insurance Company within ten (10) days of the Effective Date a duly completed
and executed IRS Form W-9, or such other form as may be applicable to it.

 Page 14

 

 

	 	(ii)	 	The Owner acknowledges and agrees that the Insurance Company has not registered
and has no obligation to register this Contract under the Securities Act.

	5.14	 	Mutual Representations
	 
	 	 	Each party hereto represents to the other that as of the date hereof:

	 	(i)	 	It has the power to enter into this Contract and to consummate the transactions
contemplated hereby.
	 
	 	(ii)	 	It has duly authorized, executed and delivered this Contract.
	 
	 	(iii)	 	Assuming the due authorization, execution and delivery of this Contract by the
other party, this Contract constitutes a legal, valid and binding obligation of the
representing party.
	 
	 	(iv)	 	This Contract is enforceable against it in accordance with the terms hereof,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights, and subject as to enforceability to general principles of equity, regardless of
whether enforcement is sought in a proceeding in equity or at law.
	 
	 	(v)	 	Neither the execution and delivery of this Contract nor the performance of any
of its obligations hereunder will, to the representing party’s best knowledge, violate
any law or any order, decree, license, permit or the like which is applicable to it or
will cause any default by it under any agreement to which it is a party or by which it
is bound.

	5.15	 	Representations Generally
	 
	 	 	If any representation made by either party hereto ceases to be true, the party learning of
such failure will promptly advise the other party. All representations made by the Owner
and the Insurance Company in this Contract shall be considered to have been relied upon by
the other party.
	 
	5.16	 	Tax Treatment
	 
	 	 	The Insurance Company and the Owner agree that this Contract shall be disregarded for United
States federal income tax purposes. The Insurance Company and the Owner further agree that
if this Contract is not so disregarded, it will and is intended to be treated for tax
purposes as a debt obligation of the Insurance Company issued in registered form within the
meaning of Treasury Regulation §1.871-14(c)(1)(i) and for all other federal, state and local
income and franchise tax purposes.
	 
	5.17	 	Governing Law
	 
	 	 	This Contract shall be governed by and construed in accordance with the laws of the State of
Delivery specified on Page 1, without regard to its conflicts of law rules.

[Schedule A begins on next page]

 Page 15

 

 

SCHEDULE A

     This Schedule A is attached to, and hereby incorporated into, Contract No. RMTN-3 (the
“Contract”)
issued by ING USA Annuity and Life Insurance Company (the “Insurance Company”) to ING USA Global
Funding Trust 3 (the “Owner”).

Specifications

I. The
following terms shall apply to this Contract.

     Floating Interest Rate (formula): 3-month LIBOR + applicable Spread (as set forth in the table
below)

     The following capitalized terms shall have the meaning set forth in the Prospectus
for the Notes:

	 	 	 	 	 	 	 	 	 
	 	 	Interest Rate Basis(es).	 	Check all that apply:
	 	 	 	 	o CD Rate	 	o Commercial Paper Rate
	 	 	 	 	o CMT Rate	 	o Eleventh District Cost of Funds Rate
	 	 	 	 	þ LIBOR	 	o
Federal Funds Rate
	 	 	 	 	o EURIBOR	 	o Treasury Rate
	 	 	 	 	o Prime Rate	 	o Other: ________
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	If LIBOR:	 	o LIBOR Reuters Page
	 	 	 	 	 	 	þ LIBOR Telerate Page
	 	 	 	 	 	 	LIBOR Currency: U.S. Dollars
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	If CMT Rate:	 	 
	 	 	 	 	               Designated CMT Telerate Page:
	 	 	 	 	               If 7052: o Weekly Average o Monthly Average
	 	 	 	 	               Designated CMT Maturity Index:

Index Maturity: 3-month

Spread (+/-): see table below

	 	 	 	 	 
	Spread Period	 	Spread
	From and
including the Interest Payment Date on December 29, 2006 to
but excluding the Interest Payment Date occurring in September 2009:
	 	 	+.03	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September 2009
to but excluding the Interest Payment Date occurring in September 2010:
	 	 	+ .04	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September 2010
to but excluding the Interest Payment Date occurring in September 2011:
	 	 	+ .05	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September 2011
to but excluding the Interest Payment Date occurring in September 2013:
	 	 	+ .06	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September 2013
	 	 	 	 

Page 16

 

	 	 	 	 	 
	Spread Period	 	Spread
	to but excluding the Interest Payment Date occurring in September 2015:
	 	 	+ .07	%
	 
	 	 	 	 
	From and including the Interest Payment Date occurring in September 2015
to but excluding the Expiration Date:
	 	 	+ .08	%

	 	 	 
	Initial
Interest Rate, if any:
	 	5.40083%
	 
	 	 
	Interest Payment Dates:
	 	Quarterly on the 29th day of each March, June, September, and December that this Contract is in effect, beginning December 29th, 2006, and the Maturity Date.
	 
	 	 
	Interest Period:
	 	The period between Interest Reset Dates.
	 
	 	 
	Interest Reset Dates:
	 	Each Interest Payment Date.
	 
	 	 
	Interest Determination Date:
	 	The second London Banking Day preceding each Interest Reset   Date.
	 
	 	 
	Interest Crediting:
	 	Interest shall be earned daily at
the Interest Rate determined on each  Interest Determination Date for
the relevant  Interest Period on the current balance of the Deposit
in the Guaranteed Fund as determined in accordance with the Day Count
Convention from and on the first day of each Interest Period to, but
not including, the last day of each Interest Period or the Maturity
Date, whichever is sooner; provided, that interest shall initially
be earned at the Initial Interest Rate from and on the Effective Date, to but not including, the first Interest Reset Date.
	 
	 	 
	Computation of Interest:
	 	Accrued Interest for each Interest
Period shall be calculated by multiplying the current balance of the
Deposit in the Guaranteed Fund by an accrued interest factor. The accrued interest factor shall be computed by adding the interest factor calculated for each day in the applicable Interest Period. The interest factor for each such day  shall be computed by dividing the Interest Rate applicable to such day by 360.
	 
	 	 
	Day Count
Convention:
	 	Actual/360
	 
	 	 
	Business Day Convention:
	 	Modified Following Business Day Convention
	 
	 	 
	Currency:
	 	U.S. Dollar
	 
	 	 
	Principal Financial Center(s):
	 	New York, New York
	 
	Repayment Date(s):
	 	Any Initial Maturity Date, on which
all or a portion of the Deposit has not been extended in accordance with Section 3.7.
	 
	 	 
	Optional Redemption:
	 	Optional redemptions by the Insurance Company under Section 3.2

Page 17

 

	 	 	 
	Spread Period	 	Spread
	 
	 	may only be made:
	 
	 	 
	 
	 	(i) to fund amounts the Trust is required to pay to fund redemption of the Notes as described in the Pricing Supplement for ING USA Global Funding Trust 3; or .
	 
	 	 
	 
	 	(ii) upon not less than seven
Business Days’ notice to the Owner, at a redemption
price equal to 100% of the portion of the Deposit to be redeemed
plus any accrued and unpaid interest thereon, on any Interest
Payment Date occurring prior to the Expiration Date, if any,
with respect to any portion of the Deposit for  which (x) an
election notice to extend the Initial Maturity Date  (or any
later date to which the Initial Maturity Date has previously
been extended) of this Contract has not been received on the
applicable Election Date and (y) extension of the Initial
Maturity Date has not otherwise been
 deemed to have been made pursuant to Section 3.7(i)(c).
	 
	 	 
	Calculation Agent:
	 	Citibank, N.A.

II. Additional Definitions.

	 	(A)	 	“Business Day” means any day on which commercial banks are open for business (including
dealings in the LIBOR Currency) in London, England and the City of New York.
	 
	 	(B)	 	“Election Date” means the second Business Day immediately following the related
Election Date with respect to the Notes.
	 
	 	(C)	 	“Initial Maturity Date” means, with respect to all or the applicable portion of the
Deposit, (i) December 29, 2008, subject to the Business Day Convention, or (ii) such date to which the Initial
Maturity Date, subject to the Business Day Convention, has been extended in accordance with
Section 3.7.
	 
	 	(D)	 	“London Banking Day” means a day in which commercial banks are open for business in London.

III. Additional terms and conditions, if any, relating to periodic payments and/or pre-payments
pursuant to section 3.1(ii).

	(A)	 	Additional Amounts to be paid in the event withholding or deduction of Taxes is required by
law: Yes o No þ

[End of Schedule A]

Page 18

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