Document:

Guaranty and Security Confirmation dtd July 1, 2004

 EXHIBIT 10c 
  

K2 INC. 
  
 GUARANTY AND SECURITY AGREEMENTS CONFIRMATION 
  
 CONFIRMATION, dated as of July 1, 2004 (this “Confirmation”), with respect to the Guaranty Agreements (as defined in the Amended and
Restated Credit Agreement (defined below)) and the Security Agreements (as defined in the Amended and Credit Agreement (defined below); the Guaranty Agreements and the Security Agreements, collectively, the “Credit Support
Documents”). 
  
 WHEREAS, K2 Inc. and certain of its
subsidiaries party thereto, the Lenders, certain other parties and Bank One, NA, as agent, are parties to the Credit Agreement, dated as of March 25, 2003, as amended by the First Amendment dated as of May 27, 2003, the Second Amendment dated as of
June 30, 2003, the Consent and Third Amendment dated as of September 12, 2003, the Consent and Fourth Amendment dated as of October 16, 2003, the Fifth Amendment dated as of December 8, 2003, the Sixth Amendment dated as of January 22, 2004, the
Seventh Amendment dated as of March 5, 2004, the Eight Amendment dated as of May 6, 2004, and the Ninth Amendment dated as of June 30, 2004 (the “Existing Credit Agreement”); 
  
 WHEREAS, concurrently with the execution of this Confirmation, the Existing
Credit Agreement will be amended and restated as of the date hereof (the Existing Credit Agreement, as so amended and restated, the “Amended and Restated Credit Agreement”; unless otherwise defined herein, capitalized terms defined
therein and used herein being so used as so defined); 
  
 WHEREAS,
each party to a Guaranty Agreement has guaranteed, and has agreed to reaffirm its guarantee of, the obligations guaranteed therein; 
  
 WHEREAS, each party to a Security Agreement has granted to the Agent, for the ratable benefit of the Lenders, a first priority security interest in the
collateral referred to therein, as collateral security for the Obligations; and 
  
 WHEREAS, each party hereto (each, a “Confirming Party”) wishes to confirm that all of its liabilities and obligations, and Liens and security interests created, as applicable, under the Credit Support
Documents to which it is a party will remain in full force and effect after giving effect to the amendment and restatement of the Existing Credit Agreement pursuant to the Amended and Restated Credit Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and to induce the Agents and
the Lenders to enter into the Amended and Restated Credit Agreement and to induce the Lenders to make or maintain their extensions of credit thereunder, each Confirming Party hereby agrees with the Administrative Agent, for the ratable benefit of
the Lenders, as follows: 
  

	 	1.	 	Each Confirming Party hereby consents to the execution and delivery of, and the amendment and restatement of the Existing Credit Agreement pursuant to, the Amended and Restated
Credit Agreement. Each Confirming Party hereby agrees that each reference to the “Credit Agreement” in the Credit Support Documents shall be deemed to be a reference to the Amended and Restated Credit Agreement and that each reference to
the “Agent” shall be deemed to be a reference to the Collateral Agent and/or the Administrative Agent, as applicable. 

  

	 	2.	 	Each Confirming Party hereby agrees that: 

  

	 	a.	 	all of its obligations and liabilities under the Credit Support Documents to which it is a party remain in full force and effect on a continuous basis after giving effect to the
amendment and restatement of the Existing Credit Agreement pursuant to the Amended and Restated Credit Agreement; and 

	 	b.	 	all of the Liens and security interests created and arising under the Security Agreements remain in full force and effect on a continuous basis, unimpaired, uninterrupted and
undischarged, and having the same perfected status and priority as existed prior to the effectiveness of the Amended and Restated Credit Agreement, after giving effect to the amendment and restatement of the Existing Credit Agreement pursuant to the
Amended and Restated Credit Agreement, as collateral security for the Obligations. 

  

	 	3.	 	Each Confirming Party hereby agrees, with respect to the Pledge and Security Agreement, dated as of March 25, 2003 between the Parent and the Agent, as amended, that upon the
effectiveness of this Confirmation, Section 7.2 of such Pledge and Security Agreement shall be amended and restated in its entirety to read as follows: 

  

	 	 	 	“Section 7.2. Control. All collections of the Debtor or any other Person received in any lockbox or Collection Account or directly by the Debtor, the Agents, or any
other Person on behalf of the Debtor or the Agents and all funds in any Collection Account or other account to which such collections are deposited, shall at all times be subject to the Liens of the Agents. Except during a Dominion Period, the
Debtor may direct, and shall have sole control over, the manner of disposition of its funds in any lockbox or Collection Account. During a Dominion Period, the funds in any lockbox or Collection Account shall be subject to the Administrative
Agent’s sole control, and withdrawals by the Debtor shall not be permitted except with the consent of the Administrative Agent.” 

  

	 	4.	 	Each Confirming Party hereby agrees, with respect to the Pledge and Security Agreement, dated as of March 25, 2003 between the Parent and the Agent, as amended, that upon the
effectiveness of this Confirmation, Section 7.3 of such Pledge and Security Agreement shall be amended and restated in its entirety to read as follows: 

  

	 	 	 	“Section 7.3 Collection of Receivables. During a Dominion Period, upon notice of the Administrative Agent, (a) the Debtor shall, and, during the existence of any
Default, shall permit the Administrative Agent to, promptly notify the Account Debtors or obligors under the Debtor’s Receivables of the Administrative Agent’s interest therein and direct such Account Debtors or obligors to make payment of
all amounts then or thereafter due under the Receivables directly to the Administrative Agent and the Administrative Agent may charge the reasonable collection costs and expenses against the proceeds received pursuant to the terms of the Credit
Agreement, (b) the Debtor shall execute and deliver to the Administrative Agent such documents as the Administrative Agent shall require to grant the Administrative Agent access to any post office box in which collections of Receivables and other
Collateral are received, and (c) the Debtor shall thereafter hold in trust for the Administrative Agent all amounts and proceeds received by the Debtor with respect to any Collateral and promptly after receipt deliver to the Administrative Agent all
such amounts and proceeds in the same form as so received, whether by cash, check, draft, or otherwise, with any necessary endorsements.” 

  

	 	5.	 	Each Confirming Party hereby agrees, with respect to the Pledge and Security Agreement, dated as of March 25, 2003 between each of the U.S. Obligated Parties (other than the Parent)
and the Agent, as amended, that upon the effectiveness of this Confirmation, Section 7.3 of such Pledge and Security Agreement shall be amended and restated in its entirety to read as follows: 

  

	 	 	 	“Section 7.2. Control. All collections of each Debtor or any other Person received in any lockbox or Collection Account or directly by a Debtor, the Agents, or any other
Person on behalf of a Debtor or the Agents and all funds in any Collection Account or other account to which such collections are deposited, shall at all times be subject to the Liens of the Agents. Except during a Dominion Period, a Debtor may
direct, and shall have sole control over, the manner of disposition of its funds in any lockbox or Collection Account. During a Dominion Period, the funds in any lockbox or Collection Account shall be subject to the Administrative Agent’s sole
control, and withdrawals by a Debtor shall not be permitted except with the consent of the Administrative Agent.” 

  

	 	6.	 	 Each Confirming Party hereby agrees, with respect to the Pledge and Security Agreement, dated as of March 25, 2003 between each of the U.S. Obligated Parties (other
than the Parent) and the Agent, as 

	 	 
amended, that upon the effectiveness of this Confirmation, Section 7.3 of such Pledge and Security Agreement shall be amended and restated in its entirety to
read as follows: 

  

	 	 	 	“Except during a Dominion Period, daily, the Debtors may direct, and shall have sole control over, the manner of disposition of their funds in any Collection Account. During a
Dominion Period, upon notice of the Administrative Agent, (a) the Debtors shall, and, during the existence of any Default, shall permit the Administrative Agent to, promptly notify the Account Debtors or obligors under the Debtor’s Receivables
of the Administrative Agent’s interest therein and direct such Account Debtors or obligors to make payment of all amounts then or thereafter due under the Receivables directly to the Administrative Agent and the Administrative Agent may charge
the reasonable collection costs and expenses against the proceeds received pursuant to the terms of the Credit Agreement, (b) the Debtors shall execute and deliver to the Administrative Agent such documents as the Administrative Agent shall require
to grant the Administrative Agent access to any post office box in which collections of Receivables and other Collateral are received, and (c) the Debtors shall thereafter hold in trust for the Administrative Agent all amounts and proceeds received
by the Debtors with respect to any Collateral and promptly after receipt deliver to the Administrative Agent all such amounts and proceeds in the same form as so received, whether by cash, check, draft, or otherwise, with any necessary
endorsements.” 

  

	 	7.	 	Each Confirming Party hereby represents and warrants that each of the representations and warranties contained the Credit Support Documents, is true and correct in all material
respects on and as the date hereof (after giving effect to this Confirmation and each of the addenda to the schedules attached to the joinder documents delivered from time to time since March 25, 2003) as if made on and as of such date; provided
that references in the representations and warranties contained in the Credit Support Documents to the “the date hereof” shall be deemed to refer to the date of this Confirmation. 

  

	 	8.	 	Each Confirming Party agrees that it shall take any action reasonably requested by the Administrative Agent or the Collateral Agent in order to confirm or effect the intent of this
Confirmation. 

  

	 	9.	 	This Confirmation shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 

  

	 	10.	 	This Confirmation may be executed by one or more of the parties hereto on any number of separate counterparts (including by telecopy), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. 

  
 [Balance of Page Intentionally Blank] 

 IN WITNESS WHEREOF, the undersigned have caused this CONFIRMATION to be executed and delivered by their
respective duly authorized officer as of the day and year first above written. 
  

			
	K2 INC.
		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Senior Vice President-Finance
	
	 BRASS EAGLE, LLC

	 EX OFFICIO LLC

	 K2 EYEWEAR, LLC

	 WGP, LLC

		
	 By:
	 	K2 Inc., its sole Member
		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Senior Vice President and Chief Financial Officer
	
	 HILTON CORPORATE CASUALS, LLC

	 SHAKESPEARE COMPANY, LLC

	 SHAKESPEARE CONDUCTIVE FIBERS, LLC

	 WORTH, LLC

		
	 By:
	 	K2 Inc., its Manager
		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Senior Vice President and Chief Financial Officer
	
	 EARTH PRODUCTS, INC.

	 J. DEBEER & SON, INC.

	 K2 BIKE, INC.

	 K-2 CORPORATION

	 K-2 INTERNATIONAL, INC.

	 K2 LICENSING & PROMOTIONS, INC.

	 K2 MERCHANDISING, INC.

	 K2 SNOWSHOES, INC.

	 KATIN, INC.

	 MORROW SNOWBOARDS, INC.

	 RAWLINGS SPORTING GOODS COMPANY

	 RIDE, INC.

	 RIDE SNOWBOARD COMPANY

	 SHAKESPEARE INDUSTRIES, INC.

	 SITCA CORPORATION

	 SMCA, INC.

	 STEARNS INC.

	 WORTH ACCESSORIES, INC.

	 WORTH BAT COMPANY, INC.

			
	 By:
	 	 /s/    JOHN J. RANGEL

	 	 	John J. Rangel
	 	 	Senior Vice President
	 BRASS EAGLE CHALLENGE PARK, INC.

		
	 By
	 	 /s/    DIANA
CRAWFORD        

	 	 	Diana C. Crawford
	 	 	Secretary
	
	 BRASS EAGLE MISSISSIPPI LLC

		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel, as a Manager
	
	 JT PROTECTIVE GEAR LLC

		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel, as a Manager
	
	 JT USA LLC

		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel, as a Manager
	
	 SATV, LLC

		
	 By:
	 	Stearns Inc., as sole Member
		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Senior Vice President
	
	 SHAKESPEARE ALL STAR ACQUISITION LLC

		
	 By:
	 	Shakespeare Company, LLC, as sole Member
		
	 By:
	 	K2 Inc., its Manager
		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Senior Vice President and Chief Financial Officer
	
	 K2 CORPORATION OF CANADA

	 RAWLINGS CANADA INCORPORATED

		
	 By:
	 	 /s/    JOHN J. RANGEL

	 	 	John J. Rangel
	 	 	Senior Vice President

			
	 SHAKESPEARE COMPANY (UK) LIMITED

	 SHAKESPEARE INTERNATIONAL LIMITED

	 SHAKESPEARE MONOFILAMENT UK LIMITED

		
	 By:
	 	 /s/    JOHN J.
RANGEL        

	 	 	John J. Rangel
	 	 	Director
		
	 By:
	 	 /s/    DIANA
CRAWFORD        

	 	 	Diana Crawford
	 	 	Secretary
	 Accepted and acknowledged as of
 the date first above written:
 JPMORGAN CHASE BANK, as Administrative
 Agent

		
	 By:
	 	 /s/    KEVIN D.
PADGETT        

	Name:	 	Kevin D. Padgett
	Title:	 	Vice President
	
	 BANK ONE, NA, as Collateral Agent

		
	 By:
	 	 /s/    JAMES
GURGONE        

	Name:	 	James Gurgone
	Title:	 	DirectorTrust Floating Rate Preferred Securities

 Exhibit 4.1 
  

PREFERRED SECURITIES CERTIFICATE 
  
 THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT. 
  
 THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT
OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN
SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  
 THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $100,000 AND
MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY
PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

  
 THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO
PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST 

 THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN
WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE. 
  
 THIS OBLIGATION IS NOT A
DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE “FDIC”). 

			
	 Certificate Number
	  	Aggregate Liquidation Amount
		
	 	  	Preferred Securities
		
	 	  	$                  

  
 CUSIP NO.

  

  
 Certificate Evidencing Preferred Securities 
  
 of 
  
 ANWORTH CAPITAL TRUST 1 
  
 Floating Rate Preferred Securities 
 (liquidation amount $1,000 per Preferred Security) 
  
 Anworth
Capital Trust 1, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that
                                         
                     (the “Holder”), is the registered owner of
                                       
                                 
(            ) Preferred Securities of the Trust representing an undivided preferred beneficial interest in the assets of the Trust and designated the Anworth Capital Trust 1
Floating Rate Preferred Securities, (liquidation amount $1,000 per Preferred Security) (the “Preferred Securities”). Subject to the terms of the Trust Agreement (as defined below), the Preferred Securities are transferable on the
books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer as provided in Section 5.7 of the Trust Agreement (as defined below). The
designations, rights, privileges, restrictions, preferences and other terms and provisions of the Preferred Securities are set forth in, and this certificate and the Preferred Securities represented hereby are issued and shall in all respects be
subject to the terms and provisions of, the Amended and Restated Trust Agreement of the Trust, dated as of March 15, 2005, as the same may be amended from time to time (the “Trust Agreement”), among Anworth Mortgage Asset
Corporation, as Depositor, JPMorgan Chase Bank, National Association, as Property Trustee, Chase Bank USA, National Association, as Delaware Trustee, the Administrative Trustees named therein and the Holders, from time to time, of Trust Securities.
The Trust will furnish a copy of the Trust Agreement to the Holder without charge upon written request to the Property Trustee at its Corporate Trust Office. 
  
 Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder. 
  
 This Preferred Securities Certificate shall be governed by and construed in accordance with
the laws of the State of Delaware. 
  
 All capitalized terms used but not defined
in this Preferred Securities Certificate are used with the meanings specified in the Trust Agreement, including the Schedules and Exhibits thereto. 

 IN WITNESS WHEREOF, one of the Administrative Trustees of
the Trust has executed on behalf of the Trust this certificate this      day of             , 2005. 
  

			
	 ANWORTH CAPITAL TRUST 1

		
	 By:
	 	  

	 Name:
	 	 Lloyd McAdams

	 	 	 Administrative Trustee

 This is one of the Preferred Securities referred to in the within-mentioned Trust Agreement. 

 
 Dated: March     , 2005 
  

			
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
 not in its individual capacity, but solely as Property
 Trustee

		
	 By:
	 	  

	 Name:
	 	 Maria D. Calzado

	 Title:
	 	 Vice President

 [REVERSE OF SECURITY] 
  
 The Trust promises to pay Distributions from March 15, 2005, or from the most recent Distribution Date to which
Distributions have been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears on March 30, June 30, September 30 and December 30 of each year, commencing on June 30, 2005, at a variable rate equal to LIBOR plus
3.10% per annum of the Liquidation Amount of the Preferred Securities represented by this Preferred Securities Certificate, together with any Additional Interest Amounts, in respect to such period. 
  
 Distributions on the Trust Securities shall be made by the Paying Agent from
the Payment Account and shall be payable on each Distribution Date only to the extent that the Trust has funds then on hand and available in the Payment Account for the payment of such Distributions. 
  
 In the event (and to the extent) that the Depositor exercises its right under
the Indenture to defer the payment of interest on the Notes, Distributions on the Preferred Securities shall be deferred. 
  
 Under the Indenture, so long as no Note Event of Default has occurred and is continuing, the Depositor shall have the right, at any time and from time to
time during the term of the Notes, to defer the payment of interest on the Notes for a period of up to twenty (20) consecutive quarterly interest payment periods (each such extended interest payment period, an “Extension Period”), during
which Extension Period no interest shall be due and payable (except any Additional Tax Sums that may be due and payable). No interest on the Notes shall be due and payable during an Extension Period, except at the end thereof, but each installment
of interest that would otherwise have been due and payable during such Extension Period shall bear Additional Interest (to the extent payment of such interest would be legally enforceable) at a variable rate equal to LIBOR plus 3.10% per annum
compounded quarterly, from the dates on which amounts would have otherwise been due and payable until paid or until funds for the payment thereof have been made available for payment. If Distributions are deferred, the deferred Distributions
(including Additional Interest Amounts) shall be paid on the date that the related Extension Period terminates to Holders (as defined in the Trust Agreement) of the Trust Securities as they appear on the books and records of the Trust on the record
date immediately preceding such termination date. 
  
 Distributions on the Securities must be paid on the dates payable (after giving effect to any Extension Period) to the extent that the Trust has funds available for the payment of such Distributions in the Payment Account of the Trust. The
Trust’s funds available for Distribution to the Holders of the Preferred Securities will be limited to payments received from the Depositor. 
  
 During any such Extension Period, the Depositor shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Depositor’s capital stock or (ii) make any payment of principal of or any interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Depositor that rank pari
passu in all respects with or junior in interest to the Notes (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Depositor in 

 
connection with (1) any employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers,
directors or consultants, (2) a dividend reinvestment or stockholder stock purchase plan or (3) the issuance of capital stock of the Depositor (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a result of an exchange or conversion of any class or series of the Depositor’s capital stock (or any capital stock of a Subsidiary (as defined in the Indenture) of the
Depositor) for any class or series of the Depositor’s capital stock or of any class or series of the Depositor’s indebtedness for any class or series of the Depositor’s capital stock, (c) the purchase of fractional interests in shares
of the Depositor’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any Rights Plan (as defined in the
Indenture), the issuance of rights, stock or other property under any Rights Plan, or the redemption or repurchase of rights pursuant thereto or (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock). 
  
 On each Note Redemption Date, on the stated maturity (or any date of
principal repayment upon early maturity) of the Notes and on each other date on (or in respect of) which any principal on the Notes is repaid, the Trust will be required to redeem a Like Amount of Trust Securities at the Redemption Price. Under the
Indenture, the Notes may be redeemed by the Depositor on any Interest Payment Date, at the Depositor’s option, on or after March 30, 2010 in whole or in part from time to time at the Optional Note Redemption Price of the principal amount
thereof or the redeemed portion thereof, as applicable, together, in the case of any such redemption, with accrued interest, including any Additional Interest, to but excluding the date fixed for redemption; provided, that the Depositor shall
have received the prior approval of any Applicable Insurance Regulatory Authority then required. The Notes may also be redeemed by the Depositor, at its option, at any time, in whole but not in part, upon the occurrence of an Investment Company
Event or a Tax Event at the Special Note Redemption Price; provided, that the Depositor shall have received the prior approval of any Applicable Insurance Regulatory Authority then required; and provided, further, that such Investment
Company Event or a Tax Event is continuing on the Redemption Date. 
  
 The Trust Securities redeemed on each Redemption Date shall be redeemed at the Redemption Price with the proceeds from the contemporaneous redemption or payment at maturity of Notes. Redemptions of the Trust Securities (or portion thereof)
shall be made and the Redemption Price shall be payable on each Redemption Date only to the extent that the Trust has funds then on hand and available in the Payment Account for the payment of such Redemption Price. 
  
 Payments of Distributions (including any Additional Interest Amounts), the
Redemption Price, Liquidation Amount or any other amounts in respect of the Preferred Securities shall be made by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing at least
ten (10) Business Days prior to the date for payment by the Person entitled thereto unless proper written transfer instructions have not been received by the relevant record date, in which case such payments shall be made by check mailed to the
address of such Person as such address shall appear in the Security Register. If any Preferred Securities are held by a Depositary, such Distributions shall be made to the Depositary in immediately available funds. 

 The indebtedness evidenced by the Notes is, to the extent provided in the Indenture, subordinate and
junior in right of payment to the prior payment in full of all Senior Debt (as defined in the Indenture), and this Security is issued subject to the provisions of the Indenture with respect thereto. 

 ASSIGNMENT 
  

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred Securities Certificate to:

  
 (Insert assignee’s social security or tax identification
number) 
  
 (Insert address and zip code of assignee) 

 
 and irrevocably appoints 
  
 agent to transfer this Preferred Securities Certificate on the books of the Trust. The agent
may substitute another to act for him or her. 
  

			
	 Date: ______________________________

	
	 Signature: ___________________________________________________________________________________

	 (Sign exactly as your name appears on the other side of this Preferred Securities Certificate)

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

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