Document:

Exhibit 4.1

 

PRICING  INSTRUMENT

 

WHEREAS, the parties named herein desire to enter into
certain Program Documents (as defined herein) contained herein, each such
document (unless otherwise specified in such document) dated as of March 31,
2008, relating to the issuance by Genworth Global Funding Trust 2008-12 (the “Trust”)
of Notes to investors under the secured notes program sponsored by Genworth
Life and Annuity Insurance Company (“GLAIC”), the terms of such Notes as
specified in the pricing supplement attached to this Pricing Instrument as Exhibit C
(the “Pricing Supplement”);

 

WHEREAS, the Trust is a trust and will be organized
under and its activities will be governed by the provisions of the Trust
Agreement (set forth in Section A of this Pricing Instrument), dated as of
March 31, 2008, by and between the parties thereto indicated in Section E
herein;

 

WHEREAS, certain expense and indemnification
arrangements between GLAIC and the Trustee, on behalf of itself and on behalf
of the Trust, are governed pursuant to the provisions of the Expense and
Indemnity Agreement dated as of October 1, 2006 by and between GLAIC and
the Trustee;

 

WHEREAS, certain licensing arrangements between the
Trust and Genworth Financial, Inc. will be governed pursuant to the provisions
of the License Agreement dated as of October 28, 2005, by and between the
Trust and Genworth Financial, Inc.;

 

WHEREAS, certain custodial arrangements for the
Funding Agreement will be governed pursuant to the provisions of the Custodial
Agreement (the “Custodial Agreement”) dated as of December 7, 2005 by and
among SunTrust Bank, acting as custodian (the “Custodian”), the Indenture
Trustee and the Trust;

 

WHEREAS, the Notes will be issued pursuant to the
Indenture (set forth in Section B of this Pricing Instrument), dated as of
the Original Issue Date, by and between the parties thereto indicated in Section E
herein;

 

WHEREAS, the sale of the Notes will be governed by the
Terms Agreement (set forth in Section C of this Pricing Instrument), dated
as of March 31, 2008, by and among the parties thereto indicated in Section E
herein; and

 

WHEREAS, certain agreements relating to the Notes and
the Funding Agreement are set forth in the Coordination Agreement (set forth in
Section D of this Pricing Instrument), dated as of March 31, 2008, by
and among the parties thereto indicated in Section E herein.

 

All capitalized terms used herein and not otherwise
defined will have the meanings set forth in the Indenture.

 

1

 

SECTION A

 

TRUST AGREEMENT

 

This TRUST AGREEMENT (this “Trust Agreement”), dated
as of March 31, 2008, is entered into by and between GSS Holdings II, Inc.,
a Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank National Association, a national banking association, as Trustee
(the “Trustee”).

 

References in the Standard
Trust Terms to JPMorgan Chase Bank, N.A. shall refer to The Bank of
New York Trust Company, N.A. and its permitted successors and assigns.

 

W I T N E S S E T
H:

 

WHEREAS, the Trust Beneficial Owner and the Trustee
desire to authorize the issuance of a Trust Beneficial Interest and a series of
Notes in connection with the entry into this Trust Agreement;

 

WHEREAS, all things necessary to make this Trust
Agreement a valid and legally binding agreement of the Trustee and the Trust
Beneficial Owner, enforceable in accordance with its terms, have been done;

 

WHEREAS, the parties intend to provide for, among
other things, (i) the issuance and sale of the Notes (pursuant to the
Indenture, the Distribution Agreement and the related Terms Agreement) and the
Trust Beneficial Interest, (ii) the use of the proceeds of the sale of the
Notes and Trust Beneficial Interest to acquire the Funding Agreement, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

 

WHEREAS, the parties hereto desire to incorporate by
reference those certain Standard Trust Terms, dated as of December 8,
2005, and attached to the Pricing Instrument as Exhibit A
(the “Standard Trust Terms”).

 

NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
sufficiency of which are hereby acknowledged, each party hereby agrees as
follows:

 

ARTICLE 1

 

Section 1.01                                Incorporation by Reference. 
All terms, provisions and agreements set forth in the Standard Trust
Terms (except to the extent expressly modified herein) are hereby incorporated
herein by reference with the same force and effect as though fully set forth
herein.  All capitalized terms not
otherwise defined herein (including the recitals hereof) shall have the
meanings set forth in the Standard Trust Terms (the Standard Trust Terms and
this Trust Agreement, collectively, the “Trust Agreement”).  To the extent that the terms set forth in Article 2
of this Trust Agreement are inconsistent with the terms of the Standard Trust
Terms, the terms set forth in Article 2 herein shall apply.

 

A-1

 

ARTICLE 2

 

Section 2.01                                Name. 
The Trust created and governed by this Trust Agreement shall be the
trust specified in the Pricing Instrument. 
The name of the Trust shall be the name specified in the first paragraph
of the Pricing Instrument, as such name may be modified from time to time by
the Trustee following written notice to the Trust Beneficial Owner.

 

Section 2.02                                Jurisdiction. 
The Trust is hereby organized in, and formed under and pursuant to, the
laws of the jurisdiction specified in the Pricing Supplement.

 

Section 2.03                                Initial Capital Contribution and
Ownership.  The Trust Beneficial Owner has paid or has
caused to be paid to, or to an account at the direction of, the Trustee, on the
date hereof, the sum of $15 (or, in the case of Notes issued with original
issue discount, such amount multiplied by the issue price of the Notes as
specified in the Pricing Supplement). 
The Trustee hereby acknowledges receipt in trust from the Trust
Beneficial Owner, as of the date hereof, of the foregoing contribution, which
shall be used along with the proceeds from the sale of the series of Notes to
purchase the Funding Agreement.  Upon the
creation of the Trust and the registration of the Trust Beneficial Interest in
the Securities Register (as defined in the Trust Agreement) by the Trust
Registrar in the name of the Trust Beneficial Owner, the Trust Beneficial Owner
shall be the sole beneficial owner of the Trust.

 

Section 2.04                                Acknowledgment. 
The Trustee, on behalf of the Trust, expressly acknowledges its duties
and obligations set forth in the Standard Trust Terms incorporated herein by
reference.

 

Section 2.05                                Additional Terms.  Section 5.01(a) of
the Standard Trust Terms is hereby replaced with the following: “it is a
national banking association duly organized, validly existing and in good
standing under the laws of the United States of America and it is a “bank”
within the meaning of Section 581 of the Code;”.

 

Section 2.06                                Pricing Instrument; Execution and Incorporation
of Terms.

 

The parties hereto will enter into the Trust Agreement
by executing the Pricing Instrument.

 

By executing the Pricing Instrument, the Trustee and
the Trust Beneficial Owner hereby agree that the Trust Agreement will
constitute a legal, valid and binding agreement between the Trustee and the
Trust Beneficial Owner.

 

All terms relating to the Trust or the series of Notes
not otherwise included herein will be as specified in the Pricing Instrument or
Pricing Supplement, as indicated herein.

 

Section 2.07                                Governing Law. 
This Trust Agreement will be governed by, and construed in accordance
with, the laws of the jurisdiction specified in the Pricing Supplement.

 

A-2

 

Section 2.08                                Counterparts. 
The Trust Agreement, through the Pricing Instrument, may be executed in
any number of counterparts, each of which counterparts shall be deemed to be an
original, and all of which counterparts shall constitute but one and the same
instrument.

 

A-3

 

 

SECTION B

 

INDENTURE

 

This INDENTURE (this “Indenture”)
is entered into as of the Original Issue Date by and between the Genworth
Global Funding Trust specified in the Pricing Instrument (the “Trust”) and The
Bank of New York Trust Company, N.A., as the indenture trustee (the “Indenture
Trustee”).

 

The Bank of New York
Trust Company, N.A., in its capacity as Indenture Trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

 

References herein to “Indenture
Trustee,” “Registrar,” “Transfer Agent,” “Paying Agent” or “Calculation Agent”
shall include the permitted successors and assigns of any such entity from time
to time and references in the Standard Indenture Terms to The Bank of New York
shall refer to U.S. Bank National Association and its permitted successors and
assigns.

 

W I T N E S S E T H:

 

WHEREAS, the Trust has
duly authorized the execution and delivery of this Indenture to provide for the
issuance of Notes;

 

WHEREAS, all things
necessary to make this Indenture a valid and legally binding agreement of the
Trust and the other parties to this Indenture, enforceable in accordance with
its terms, have been done, and the Trust proposes to do all things necessary to
make the Notes, when executed by the Trust and authenticated and delivered
pursuant hereto, valid and legally binding obligations of the Trust as
hereinafter provided; and

 

WHEREAS, the parties
hereto desire to incorporate by reference those certain Standard Indenture
Terms, dated as of December 8, 2005, and attached to the Pricing
Instrument as Exhibit B (the “Standard
Indenture Terms”).

 

NOW, THEREFORE, for and
in consideration of the premises and the purchase of the Notes by the Holders
thereof, it is mutually covenanted and agreed by each of the parties hereto as
follows:

 

ARTICLE 1

 

Section 1.01           Incorporation
by Reference.  All terms,
provisions and agreements set forth in the Standard Indenture Terms (except to
the extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein.  All capitalized terms not otherwise defined
herein (including the recitals hereof) shall have the meanings set forth in the
Standard Indenture Terms (the Standard Indenture Terms and this Indenture,
collectively, the “Indenture”).  To the
extent that the terms set forth in Article 2 of this Indenture are
inconsistent with the terms of the Standard Indenture Terms, the terms set
forth in Article 2 herein shall apply.

 

 

B-1

 

ARTICLE 2

 

Section 2.01           Agreement to
be Bound. 
Each of the Trust, the Indenture Trustee, the Registrar, the Transfer
Agent, the Paying Agent and the Calculation Agent hereby agrees to be bound by
all of the terms, provisions and agreements set forth in the Indenture, with
respect to all matters contemplated in the Indenture, including, without
limitation, those relating to the issuance of the below-referenced Notes.

 

Section 2.02           Designation
of the Trust, the Notes and the Funding Agreement.  The Trust created by the Trust Agreement
specified in the Pricing Instrument and referred to herein is the Genworth
Global Funding Trust specified in the Pricing Instrument.  The Notes issued by the Trust and governed by
the Indenture shall be the Notes specified in the Pricing Supplement.  The Funding Agreement designated hereby is
the Funding Agreement designated in the Pricing Supplement, effective as of the
Original Issue Date, between the Trust and Genworth Life and Annuity Insurance
Company.

 

Section 2.03           Additional
Terms. Notwithstanding anything to the contrary in Section 2.04(c) of
the Standard Indenture Terms, the Indenture Trustee will give written notice of
redemption to the Holders in accordance with Section 1.06 of the Standard
Indenture Terms not more than seventy-five (75) calendar days and not less than
thirty (30) calendar days prior to the date set for such redemption.
Notwithstanding anything to the contrary in Section 2.04(f) of the
Standard Indenture Terms, the Indenture Trustee shall treat as satisfactory to
it thirty-five (35) calendar days’ notice from the Trust (or from GLAIC on
behalf of the Trust) of a redemption date for the Notes; provided that there
are at least three Business Days between the receipt by it of such notice and
the deadline for giving notice of such redemption under Section 2.04(c);
provided further that the Notes are in the form of Global Notes and the
redemption is in whole.  The initial
principal amount of the Notes shall be $11,209,000.00.

 

Section 2.04           Pricing
Instrument; Execution and Incorporation of Terms.

 

The parties hereto will
enter into this Indenture by executing the Pricing Instrument.

 

By executing the Pricing
Instrument, the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust hereby agree that the
Indenture will constitute a legal, valid and binding agreement between the
Indenture Trustee, the Registrar, the Transfer Agent, the Paying Agent, the
Calculation Agent and the Trust.

 

All terms relating to the
Trust or the Notes not otherwise included herein will be as specified in the
Pricing Instrument or Pricing Supplement, as indicated herein.

 

Section 2.05           Counterparts.  This Indenture, through the Pricing
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute one and the same instrument.

 

 [Remainder of Page Left Intentionally
Blank]

 

 

B-2

 

SECTION C

 

TERMS AGREEMENT

 

This TERMS AGREEMENT
(this “Terms Agreement”) is entered into as of March 31, 2008 by and among
Genworth Life and Annuity Insurance Company (“GLAIC”), the Genworth Global
Funding Trust specified in the Pricing Instrument (the “Trust”) and the Agent
specified in the Pricing Supplement (the “Agent”).

 

W I T N E S S E T H:

 

WHEREAS, GLAIC and the
Agent have entered into that certain Distribution Agreement dated December 9,
2005 (the “Distribution Agreement”).

 

NOW, THEREFORE, in
consideration of the mutual promises set forth herein and other good and
valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, each of the parties hereby agrees as follows:

 

ARTICLE 1

 

Section 1.01           Incorporation
by Reference.  The provisions
of the Distribution Agreement and the related definitions (unless otherwise
specified herein) are incorporated by reference herein and shall be deemed to
have the same force and effect as if set forth in full herein.

 

ARTICLE 2

 

Section 2.01           Addition of
Trust as Party to Distribution Agreement.

 

Pursuant to Section 1
of the Distribution Agreement, each of the undersigned parties hereby
acknowledges and agrees that the Trust, upon execution hereof by the Trust and
the other parties to this Terms Agreement, shall become a Trust for purposes of
the Distribution Agreement in accordance with the terms thereof, in respect of
the Notes, with all the authority, rights, powers, duties and obligations of a
Trust under the Distribution Agreement. 
The Trust confirms that any agreement, covenant, acknowledgment,
representation or warranty under the Distribution Agreement applicable to the
Trust is made by the Trust at the date hereof, unless another time or times are
specified in the Distribution Agreement, in which case such agreement,
covenant, acknowledgment, representation or warranty shall be deemed to be
confirmed by the Trust at such specified time or times.

 

All references to Section 9
(Indemnification) of the Distribution Agreement to “solely with respect to the
applicable Agent(s) or Co-Agent(s)” will include all of such Agent’s or
Co-Agent’s directors and officers and each person, if any, who controls such
Agent or Co-Agent within the meaning of Section 15 of the Securities Act
of 1933, as amended or Section 20 of the Securities Exchange Act of 1934,
as amended.  All references in the
Distribution Agreement to the “Registration Statement”, the “Institutional Base
Prospectus”, the “Retail Base Prospectus”, any “preliminary prospectus”, the “Time
of Sale Prospectus” and the “Prospectus” shall also be deemed to include all
documents incorporated by reference therein.

 

 

C-1

 

Section 2.02           Purchase of
Notes as Principal.

 

(a)           Subject in all respects to the terms
and conditions of the Distribution Agreement, the Trust hereby agrees to sell
to the Agent and the Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes. The initial
principal amount of the Notes is $11,209,000.00.

 

(b)           In connection with any purchase of
Notes from the Trust by the Agent as principal, the parties agree that the
items specified on Schedule I of the Pricing Instrument will be delivered as of
the Settlement Date.

 

Section 2.03           Termination.  Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the
undersigned parties hereby agree to allocate the expenses reasonably incurred
prior to or in connection with such termination as follows:

 

The expenses will be
borne by GLAIC.

 

Section 2.04           Applicable Time.  For purposes of the Distribution Agreement,
the Applicable Time shall be 3:21 pm EST, March 31, 2008.

 

Section 2.05           Governing
Law.  This Terms Agreement
shall be governed by and construed in accordance with the laws of the State of
New York without regard to the principles of conflicts of laws thereof.

 

Section 2.06           Notices.
For purposes of Section 14 of the Distribution Agreement, the Trust’s
communications details are as set forth in Section D of the Pricing
Instrument.

 

Section 2.07           Additional
Terms.  The Agent represents,
warrants and covenants with or to (as the case may be) the Trust and the
Company that it has not offered, sold or delivered and it will not offer, sell
or deliver, any of the Notes, in or from any jurisdiction except under
circumstances that are reasonably designed to result in compliance with the
applicable securities laws and regulations thereof.

 

Section 2.08           Pricing
Instrument; Execution and Incorporation of Terms.

 

The parties hereto will
enter into this Terms Agreement by executing the Pricing Instrument.

 

By executing the Pricing
Instrument, each party hereto agrees that this Terms Agreement will constitute
a legal, valid and binding agreement by and among such parties.

 

All terms relating to the
Trust or the Notes not otherwise included in this Terms Agreement will be as
specified in the Pricing Instrument or Pricing Supplement, as indicated herein.

 

Section 2.09           Counterparts.  This Terms Agreement, through the Pricing
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

 

 

C-2

 

SECTION D

 

COORDINATION AGREEMENT

 

This COORDINATION
AGREEMENT (this “Coordination Agreement”), dated as of March 31, 2008, is
entered into by and among Genworth Life and Annuity Insurance Company (“GLAIC”),
the Genworth Global Funding Trust specified in the Pricing Instrument (the “Trust”),
SunTrust Bank, in its capacity as custodian of the Funding Agreement (“Custodian”)
and The Bank of New York Trust Company, N.A., as the indenture trustee (the “Indenture
Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Trust will
enter into the Funding Agreement with GLAIC, effective as of the Original Issue
Date specified in the Pricing Supplement;

 

WHEREAS, the Agents (as
defined in the Distribution Agreement) will sell the Notes in accordance with
the Registration Statement;

 

WHEREAS, the Trust
intends to issue the Notes in accordance with the Indenture, to collaterally
assign to, and grant a security interest in, the Funding Agreement to and in
favor of the Indenture Trustee in accordance with the Indenture to secure
payment of the Notes; and

 

WHEREAS, the Custodian
will hold the Funding Agreement on behalf of the Indenture Trustee pursuant to
the terms of the Custodial Agreement.

 

NOW, THEREFORE, to give
effect to the agreements and arrangements established under the Terms Agreement
included in the Pricing Instrument, as applicable, the Trust Agreement, the
Indenture and the Notes, and in consideration of the agreements and obligations
set forth herein and for other good and valuable consideration, the sufficiency
of which are hereby acknowledged, each party hereby agrees as follows:

 

ARTICLE 1

 

Section 1.01           Delivery of
the Funding Agreement.  The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from GLAIC pursuant to the assignment of the
Funding Agreement (the “Assignment”), to be entered into on the Original Issue
Date, included in the closing instrument dated as of the Original Issue Date
(the “Closing Instrument”).

 

Section 1.02           Issuance and
Purchase of the Notes.

 

(a)           Delivery of the Funding Agreement to
the Custodian, on behalf of the Indenture Trustee, pursuant to the Assignment
or execution of the cross-receipt contained in the Closing Instrument shall be
confirmation of payment by the Trust for the Funding Agreement.

 

(b)           The Trust hereby directs the
Indenture Trustee, upon receipt of the Funding Agreement by the Custodian, on
behalf of the Indenture Trustee and pursuant to the Assignment, 

 

 

D-1

 

(i) to authenticate the certificates representing
the Notes (the “Certificates”) in accordance with the Indenture and (ii) to
(A) deliver each relevant Certificate to the clearing system or systems
identified in each such Certificate, or to the nominee of such clearing system,
or the custodian thereof, for credit to such accounts as the Agent may direct,
or (B) deliver each relevant Certificate to the purchasers thereof as
identified by the Agent.

 

ARTICLE 2

 

Section 2.01           Directions
Regarding Periodic Payments. 
As registered owner of the Funding Agreement as collateral securing
payments on the Notes, the Indenture Trustee will receive payments on the
Funding Agreement on behalf of the Trust. 
The Trust hereby directs the Indenture Trustee to use such funds to make
payments on behalf of the Trust pursuant to the Trust Agreement and the
Indenture.

 

Section 2.02           Maturity of
the Funding Agreement.  Upon
the maturity of the Funding Agreement and the return of funds thereunder, the
Trust hereby directs the Indenture Trustee to set aside from such funds an
amount sufficient for the repayment of the outstanding principal on the Notes
and Trust Beneficial Interest when due.

 

ARTICLE 3

 

Section 3.01           Officer’s
Certificates.  GLAIC hereby
agrees to deliver an Officer’s Certificate, a copy of which is attached hereto
as Exhibit D, on a quarterly basis to
any rating agency currently rating the Program. 
The Trust hereby agrees to deliver an Officer’s Certificate, a copy of
which is attached to the Pricing Instrument as Exhibit E,
on a quarterly basis to any rating agency currently rating the Program.

 

Section 3.02           Filings.  GLAIC hereby covenants to file, or cause to
be filed, in a timely manner on behalf of the Trust all reports, certifications
or similar filings required under the Securities Exchange Act of 1934, as
amended.

 

ARTICLE 4

 

Section 4.01           No
Additional Liability.  Nothing
in this Coordination Agreement shall impose any liability or obligation on the
part of any party to this Coordination Agreement to make any payment or
disbursement in addition to any liability or obligation such party has under
the Program Documents, except to the extent that a party has actually received
funds which it is obligated to disburse pursuant to this Coordination
Agreement.

 

Section 4.02           No Conflict.  This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. 
To the extent that a provision of this Coordination Agreement conflicts
with the provisions of one or more Program Documents, the provisions of such
Program Documents shall govern.

 

Section 4.03           Governing
Law.  This Coordination
Agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to the principles of conflicts of laws
thereof.

 

 

D-2

 

Section 4.04           Severability.  If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

 

Section 4.05           Notices.  All demands, notices and communications under
this Coordination Agreement shall be in writing and shall be deemed to have
been duly given upon receipt at the addresses set forth below:

 

To the Trust:

 

Genworth Global Funding Trust 2008-12

c/o U.S. Bank National Association

Corporate Trust Services

209 S. LaSalle Street, Suite 300

Chicago, Illinois 60604

Attention:  Patricia Child, VP

Facsimile: (312) 325-8905

 

To the Indenture Trustee:

 

The Bank of New York Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Attention: Corporate Finance

Facsimile: (312) 827-8542

 

To GLAIC:

 

Genworth Life and Annuity Insurance Company

6610 West Broad Street

Richmond, Virginia 23230

Attention: Treasurer

Facsimile: (804) 662-7777

 

with a copy to:

 

Genworth Life and Annuity Insurance Company

6610 West Broad Street

Richmond, Virginia 23230

Attention: Heather Harker, Esq.

Facsimile: (804) 281-6005

 

To the Custodian:

 

SunTrust Bank

919 East Main Street

 

D-3

 

Richmond,
Virginia 23219

Attention: Retirement Services

Facsimile:
(804) 782-7439

 

or at such other address as shall be designated by any
such party in a written notice to the other parties.

 

ARTICLE 5

 

Section 5.01           Pricing
Instrument; Execution and Incorporation of Terms.

 

The parties to this
Coordination Agreement will enter into this Coordination Agreement by executing
the Pricing Instrument.

 

By executing the Pricing
Instrument, each party hereto agrees that this Coordination Agreement will
constitute a legal, valid and binding agreement by and among the Trust, GLAIC,
the Custodian and the Indenture Trustee.

 

All terms relating to the
Trust or the Notes not otherwise included in this Coordination Agreement will
be as specified in the Pricing Instrument or Pricing Supplement, as indicated
herein.

 

Section 5.02           Counterparts.  This Coordination Agreement, through the
Pricing Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

 

Section 5.03           Capitalized
Terms.  All capitalized terms
used herein and not otherwise defined in this Coordination Agreement will have
the meanings set forth in the Indenture.

 

[Remainder
of Page Left Intentionally Blank]

 

 

D-4

 

SECTION E

 

MISCELLANEOUS AND
EXECUTION PAGES

 

This Pricing Instrument may be executed by each of the
parties hereto in any number of counterparts, and by each of the parties hereto
on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

Each signatory, by its execution hereof, does hereby
become a party to each of the agreements or indenture identified for such party
as of the date specified in such agreements or indenture.

 

IN WITNESS WHEREOF, the undersigned have executed this
Pricing Instrument with respect to the Notes as of the date first written
above.

 

	
   

  	
  GENWORTH LIFE AND ANNUITY INSURANCE COMPANY (in executing below
  agrees and becomes a party to (i) the Terms Agreement set forth in
  Section C herein and (ii) the Coordination Agreement set forth in
  Section D herein)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pamela C. Asbury

  
	
   

  	
   

  	
  Name: Pamela C. Asbury

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

[Execution Page 1 of 3]

 

 

E-1

 

	
   

  	
  THE GENWORTH GLOBAL FUNDING TRUST DESIGNATED IN THIS PRICING
  INSTRUMENT (in executing below agrees and becomes a party to (i) the
  Indenture set forth in Section B herein, (ii) the Terms Agreement
  set forth in Section C herein and (iii) the Coordination Agreement
  set forth in Section D herein)

  
	
   

  	
   

  	
   

  
	
   

  	
  By: U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity
  but solely in its capacity as Trustee of the Trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia M. Child

  
	
   

  	
   

  	
  Name: Patricia M. Child

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION (in executing below agrees and becomes
  a party to the Trust Agreement set forth in Section A herein), as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia M. Child

  
	
   

  	
   

  	
  Name: Patricia M. Child

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION (in executing below acknowledges and agrees to Section 5.01
  of the Trust Agreement as set forth in and amended by Section A herein),
  in its individual capacity

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Patricia M. Child

  
	
   

  	
   

  	
  Name: Patricia M. Child

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  GSS HOLDINGS II, INC. (in executing below agrees and becomes a party
  to the Trust Agreement set forth in Section A herein), as Trust
  Beneficial Owner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bernard J. Angelo

  
	
   

  	
   

  	
  Name: Bernard J. Angelo

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Execution Page 2
  of 3]

  
				

 

 

E-2

 

	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A. (in executing below agrees
  and becomes a party to (i) the Indenture set forth in Section B
  herein, as Indenture Trustee, Registrar, Transfer Agent, Paying Agent and
  Calculation Agent and (ii) the Coordination Agreement set forth in
  Section D herein), as Indenture Trustee, Registrar, Transfer Agent,
  Paying Agent and Calculation Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Tarnas

  
	
   

  	
   

  	
  Name: R. Tarnas

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SUNTRUST BANK (in executing below agrees and becomes a party to the
  Coordination Agreement set forth in Section D herein), as Custodian

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J.
  Owens, III

  
	
   

  	
   

  	
  Name: Richard J.
  Owens, III

  
	
   

  	
   

  	
  Title: VP/Trust Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  INCAPITAL,
  LLC (in executing below agrees and becomes a party to the Terms Agreement set
  forth in Section C herein)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Walker

  
	
   

  	
   

  	
  Name: Brian Walker

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Execution Page 3
  of 3]

  

 

 

E-3

 

 

EXHIBIT A

Standard Trust Terms

 

As filed as Exhibit 4.5 to the Registration Statement on Form S-3
(File No. 333-128718), filed by Genworth Life and Annuity Insurance
Company with the Securities and Exchange Commission (the “Commission”) on September 30,
2005, as amended by Amendment No. 1, filed with the Commission on December 8,
2005.

 

A-1

 

EXHIBIT B

Standard Indenture Terms

 

As filed as Exhibit 4.1 to the Registration Statement on Form S-3
(File No. 333-128718), filed by Genworth Life and Annuity Insurance
Company with the Securities and Exchange Commission (the “Commission”) on September 30,
2005, as amended by Amendment No. 1, filed with the Commission on December 8,
2005.

 

B-1

 

EXHIBIT C

Pricing Supplement

 

As filed with the Securities and Exchange Commission pursuant to Rule 424(b) under
the Securities Act, dated as of March 24, 2008, with respect to the Notes
to be issued by the Trust.

 

C-1

 

EXHIBIT D

Genworth Life and Annuity
Insurance Company

 

Officer’s Certificate

 

The undersigned, an officer of Genworth Life and
Annuity Insurance Company, a stock life insurance company operating under a
charter granted by the Commonwealth of Virginia (“GLAIC”), does hereby certify
to Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., in such capacity and on behalf of GLAIC, to the knowledge
of the undersigned and after reasonable inquiry, that:

 

1.                                       each of the representations and
warranties of GLAIC contained in each Expense and Indemnity Agreement entered
into in connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the “Specified
Agreements”) (other than any representation or warranty expressly made as of a
date prior to the date hereof) are true and correct on and as of the date
hereof, with the same effect as though such representation or warranty had been
made on and as of the date hereof;

 

2.                                       no default under any of the Specified
Agreements and no event or any condition which, with notice or lapse of time or
both, would become a default, has occurred and is continuing as of the date
hereof;

 

3.                                       GLAIC has performed and complied with, in
all material respects, all of the agreements, covenants, obligations and
conditions applicable to GLAIC required by the Specified Agreements to be
performed or complied with by GLAIC on or before the date hereof;

 

4.                                       the Registration Statement filed on Form S-3
(File No. 333-128718) (the “Registration Statement”) by GLAIC has been
declared effective by the Securities and Exchange Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “Act”) and no stop order
suspending the effectiveness of the Registration Statement has been issued and
no proceedings for that purpose have been commenced by or are pending before or
contemplated by the Commission;

 

5.                                       all filings, if any, required by Rule 424
and Rule 430A under the Act have been made in a timely manner;

 

6.                                       since [·](1),
the Trusts organized in connection with the program contemplated by the
Registration Statement have issued the following series of Notes:

 

[List each series of
Notes]  [(collectively, the “Designated
Notes”)]; and

 

7.                                       the Funding Agreements issued in
connection with the Designated Notes have been executed and delivered by GLAIC
in accordance with the terms and conditions of the Program Documents.

 

(1) This certificate
to be signed quarterly.

 

D-1

 

Capitalized terms used herein and not otherwise
defined herein shall have the meanings set forth in the Standard Indenture
Terms attached as Exhibit 4.1 to the Registration Statement.

 

IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of the [·] day of [·] 200[·].

 

	
   

  	
  [Name], in [his/her]
  capacity as an authorized officer of Genworth Life and Annuity Insurance
  Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-2

 

 

EXHIBIT E 

Genworth Global Funding Trusts

 

Trustee Officer’s
Certificate

 

U.S. Bank National
Association, not in its individual capacity but solely in its capacity as
trustee acting on behalf of each common law trust organized under the laws of
the State of Illinois (in such capacity, the “Trustee,” and each such common
law trust being referred to herein as a “Trust”) in connection with the program
contemplated by the Registration Statement filed on Form S-3 (File No. 333-128718)
by Genworth Life and Annuity Insurance Company with the Securities and Exchange
Commission (the “Commission”) on September 30, 2005, as amended by
Amendment No. 1, filed with the Commission on December 8, 2005 (the “Registration
Statement”), does hereby certify to Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., in such capacity
and on behalf of each Trust, to the knowledge of the Trustee without any
independent investigation, that; as of October 1, 2006:

 

1.                                       each of the representations and warranties
of each Trust contained in the Notes issued in connection with the Program,
each Indenture entered into in connection with the Registration Statement and
the Expense and Indemnity Agreement concerning the Trusts (the “Specified
Agreements”) (other than any representation or warranty expressly made as of a
date prior to the date hereof) are true and correct on and as of the date
hereof, with the same effect as though such representation or warranty had been
made on and as of the date hereof;

 

2.                                       no default under any of the Specified
Agreements and no event or any condition which, with notice or lapse of time or
both, would become a default, has occurred and is continuing as of the date
hereof;

 

3.                                       each Trust has performed and complied
with, in all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified Agreements to
be performed or complied with by such Trust on or before the date hereof;

 

4.                                       the Notes issued in connection with the Program
have been issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and

 

5.                                       each Funding Agreement has been executed
and delivered by the related Trust in accordance with the terms and conditions
of the Program Documents.

 

Capitalized terms used
herein and not otherwise defined herein shall have the meanings set forth in
the Standard Indenture Terms attached as Exhibit 4.1 to the Registration
Statement. In no event shall U.S. Bank National Association in its personal
corporate capacity (or any officer of the Trustee in his or her personal
capacity) have any liability for any of the certifications or statements
contained in this Trustee Officer’s Certificate, such liability being solely
that of each Trust.

 

 

E-1

 

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of the [·] day
of [·], 200[·].

 

	
   

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

  capacity but solely in its capacity as Trustee acting on 

  behalf of each Trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  

 

 

E-2

 

SCHEDULE I

 

Terms Agreement
Specifications

 

In connection with Section 3(a)(iv) of the
Distribution Agreement, the Program under which the Notes are issued is rated
Aa3 by Moody’s Investors Service, Inc. (“Moody’s”) and AA- by Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“S&P”).  Genworth Life and Annuity Insurance Company (“GLAIC”)
expects that the Notes will be rated Aa3 by Moody’s and AA- by S&P.  GLAIC’s financial strength rating is Aa3 by
Moody’s and AA- by S&P.

 

In accordance with Section 2.02(b) of the
Terms Agreement and in connection with the purchase of Notes from the Trust by
the Agent, the following items will be delivered on or prior to the Settlement
Date to the Agent:  None.

 

All capitalized terms
used herein and not otherwise defined herein will have the meanings set forth
in the Distribution Agreement.

 

 

I-1Exhibit
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.:

  	
   

  	
  37248JAS1

  	
   

  	
  Principal Amount: U.S.
  $11,209,000.00

  
	
  ISIN No.:

  	
   

  	
  US37248JAS1

  	
   

  	
   

  

 

GENWORTH
GLOBAL FUNDING TRUST 2008-12

GENWORTH
DIRECTNOTESSM

 

	
  Original Issue Date:
  April 3, 2008

  Issue Price: 100.00%

  Stated Maturity Date:
  April 15, 2033

  Settlement Date: April
  3, 2008

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

                                                                                              

  Depositary: The
  Depository Trust Company

  Authorized
  Denominations: $1,000 and any integral multiple of $1,000 in excess thereof

  Collateral
  held in the Trust: Genworth Life and Annuity Insurance Company Funding
  Agreement No. GS-R6028, all proceeds of the Funding Agreement and all amounts
  and instruments on deposit from time to time in the related collection
  account and all books and records pertaining to the foregoing.

  Interest Rate or
  Formula:

  	
   

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

  Floating Rate Notes o

  Floating Rate/Fixed
  Rate Notes o

  Fixed Rate/Floating
  Rate Notes o

  Inverse Floating Rate
  Notes o

  Interest Rate
  Basis(es):

  LIBOR o

  o LIBOR Reuters:

  LIBOR Currency:

  CMT Rate o

  CD Rate o

  Commercial Paper Rate o

  Prime Rate o

  Treasury Rate o

  Index Maturity:

  Spread and/or Spread
  Multiplier:

  

 

 

 

	
  Fixed Rate Notes: x Yes o No. 
  If yes,

  Interest Rate: 6.05%

  Interest Payment
  Frequency: Semi-annual

  Interest Payment Dates:
  The 15th day of each April and October of each year, provided, however, that the first Interest Payment Date
  shall be October 15, 2008; provided, further,
  that the final Interest Payment Date shall be the Stated Maturity Date.

  Day Count Convention:
  As indicated on the reverse hereof.

  Additional/Other Terms:
  Not applicable

  Discount Notes: o Yes x No. 
  If yes,

  Total Amount of
  Discount:

  Initial Accrual Period
  of Discount:

  Interest Payment Dates:

  Additional/Other Terms:

  Redemption Provisions: x Yes o No. 
  If yes,

  Initial Redemption
  Date: April 15, 2013

  Initial Redemption
  Percentage: 100.00%

  Annual Redemption
  Percentage Reduction, if any: Not applicable

  Additional/Other Terms:
  Notwithstanding anything to the contrary in Section 4 of the reverse hereof,
  notice of any such redemption will be given not more than seventy-five (75)
  and not less than thirty (30) calendar days prior to the date of such
  redemption.

  Repayment Provisions: o Yes x No. 
  If yes,

  Repayment Date(s):

  Repayment Price:

  Additional/Other Terms:

  	
   

  	
  Initial Interest Rate,
  if any:

  Initial Interest Reset
  Date:

  Interest Reset Dates:

  Interest Determination
  Date(s):

  Interest Payment Dates:

  Maximum Interest Rate,
  if any:

  Minimum Interest Rate,
  if any:

  Fixed Rate Commencement
  Date, if any:

  Floating Rate
  Commencement Date, if any:

  Fixed Interest Rate, if
  any:

  Day Count Convention:

  Additional/Other Terms:

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

  Sinking Fund: Not
  applicable

  Calculation Agent, if
  any: Not applicable

  Additional/Other Terms:
  Not applicable

  Survivor’s Option: x Yes o No.

  If yes, the attached
  Survivor’s Option Rider is incorporated into this Note.

  Trust Put Limitation: x 1%; or $

  

 

The Genworth 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.  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”).  The “Principal Amount” of this Note at any
time means (1) if this Note is a Discount Note (as hereinafter defined), 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 Original Issue Date (the
“Indenture”), between The Bank of New York 

 

2

 

Trust Company, 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 more than a percentage equal to the product of 0.25% 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 Person that was 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 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.  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.

 

3

 

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

 

	
   

  	
  THE GENWORTH GLOBAL FUNDING TRUST

  
	
   

  	
  SPECIFIED ON THE FACE OF THIS NOTE

  
	
   

  	
   

  
	
  Dated: April 3, 2008

  	
  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 Genworth Global Funding Trust specified on the face of this Note
referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A.,

  as Indenture Trustee

  
	
   

  	
   

  
	
  Dated:  April
  3, 2008

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Tarnas

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

4

[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.  This Note is denominated in, and
payments of principal, premium, if any, and/or interest, if any, will be made
in U.S. Dollars.

 

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.

 

(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 each
  March, June, September and December, beginning on the first such date
  following the date this Note was issued.

  
	
  Semi-annual

  	
   

  	
  Fifteenth day of the
  two months of each year specified on the face hereof, beginning on the first
  such date following the date this Note was issued.

  
	
  Annual

  	
   

  	
  Fifteenth day of the
  month of each year specified on the face hereof, beginning on the first such
  date following the date this Note was issued.

  

 

(iii)        Unless otherwise specified on the face
hereof, 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”:

 

 

5

 

(i)          Interest Rate Basis. As
specified on the face hereof, 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, LIBOR, 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 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)        Floating Rate Note. Unless this
Note is specified on the face hereof as a Floating Rate/Fixed Rate Note or a
Fixed Rate/Floating Rate Note, this Note (a “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; provided, however, that
interest on this Note will not be less than zero.  Commencing on the first Interest Reset Date,
the rate at which interest on this 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; provided,
however, that interest on this Note will
not be less than zero.  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 

 

 

6

 

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; provided, however, that interest on this Note will not be less than
zero.  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)       Interest Reset Dates.  The period between Interest Reset
Dates will be the “Interest 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; (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.

 

(viii)      Interest Determination Dates. Unless otherwise specified on the
face hereof, the interest rate applicable to a Floating Rate Note for an
Interest 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 Commercial Paper Rate and the Prime Rate—the Business Day immediately
preceding the related Interest Reset Date; (2) with respect to the CD Rate
and the CMT Rate—the second Business Day preceding the related Interest Reset
Date; (3) with respect to LIBOR—the second London Banking Day (as defined
below) preceding the related Interest Reset Date; and (4) 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); 

 

 

7

 

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.  Unless otherwise specified on the face
hereof, 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 as hereinafter defined) in London.

 

(ix)         Calculation Dates.  The
interest rate applicable to each Interest Period will be determined by the
Calculation Agent on or prior to the Calculation Date (as defined below),
except with respect to LIBOR, 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.

 

(x)          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.

 

(xi)         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; (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 

 

 

8

 

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, if any, 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.

 

(xii)        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 to the nearest cent.

 

(xiii)       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 Period. Unless otherwise specified on the face
hereof, 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, LIBOR 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. 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.

 

(xiv)      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 

 

 

9

 

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 New York City (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 Moneyline
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 Moneyline
Telerate (or any successor service) on page 7051 (or any other page as
may replace the specified page on that service) (“Moneyline Telerate Page 7051”),
for the particular Interest Determination Date; or

 

ii.                    if the rate referred to in clause (i) does not so
appear on Moneyline 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

 

 

10

 

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 New York City (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

 

 

11

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 Moneyline 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 Moneyline Telerate (or any successor
service) (on page 7052 or any other page as may replace the specified
page on that service) (“Moneyline 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 Moneyline 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, one of the lowest, for United States Treasury securities
with an original maturity equal to the particular Index Maturity, a 

 

12

 

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.

 

(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

 

13

 

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 New York City (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)

  	
   

  	
   

  

 

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 Period.

 

(D)  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 Moneyline Telerate” is specified on the face hereof or if neither “LIBOR
Reuters” nor “LIBOR Moneyline 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 

 

14

 

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 Moneyline Telerate” is
specified on the face hereof or neither “LIBOR Reuters” nor “LIBOR Moneyline
Telerate” is specified on the face hereof as the method for calculating LIBOR,
the display on Moneyline 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.

 

(E)  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 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 

 

15

 

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 on 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 New York City 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.

 

(F)  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 Moneyline Telerate
(or any successor service) on page 56 (or any other page as may
replace that page on that service) (“Moneyline Telerate Page 56”) or page 57
(or any other page as may replace that page on that service) (“Moneyline
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) 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 

 

16

 

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 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 (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 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 

 

17

 

will be divided into a regular compounding period and
a short period with the short period being treated as provided above.

 

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 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 Genworth Life and Annuity Insurance
Company (“GLAIC”) (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 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 GLAIC by (B) the
outstanding principal amount of the Funding Agreement.  Notice must be given not more than
seventy-five (75) nor less than forty-five (45) 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.

 

Section 5.  Sinking Funds. 
Unless specified on the face hereof, this Note will not be subject to,
or entitled to the benefit of, any sinking fund.

 

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, if any, 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 not more than
sixty (60) nor less than thirty (30) days prior to a Repayment Date.  Exercise of such repayment option by the Holder
hereof shall be irrevocable.  In the
event of a repayment of this Note in part only, a new Note for the portion
hereof not repaid shall be issued in the name of the Holder hereof upon the
surrender hereof.

 

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 

 

18

 

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, 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; No Additional Amounts; 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. 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) GLAIC redeems the Funding Agreement in whole, the Trust
will redeem the Notes, subject to the terms and conditions of Section 2.04
of the Indenture, at a Redemption Price equal to the Outstanding principal
amount of the Notes together with unpaid interest accrued thereon to the
applicable redemption date.  “Tax Event”
means that GLAIC 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.

 

19

 

 

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 and 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 will not 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 

 

 

20

 

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 WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES
(OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW.

 

 

21

 

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:

  	
   

  	
   

  

 

 

22

 

SURVIVOR’S OPTION RIDER

 

(a)  Unless this Note, on its face, has been
declared due and payable prior to the Maturity Date by reason of any Event of
Default under the Indenture, or has been previously redeemed or otherwise
repaid, the authorized Representative (as defined below) of a deceased
Beneficial Owner (as defined below) of this Note shall have the option to elect
repayment by the Trust in whole or in part prior to the Maturity Date following
the death of the Beneficial Owner (a “Survivor’s Option”).  The Survivor’s Option may not be exercised
unless this Note was held by the Beneficial Owner or the estate of that
Beneficial Owner for a period beginning at least 6 months immediately prior to
the death of such Beneficial Owner. “Beneficial Owner” as used in this Survivor’s
Option Rider means, with respect to this Note, the person who has the right,
immediately prior to such person’s death, to receive the proceeds from the
disposition of this Note, as well as the right to receive payments on this
Note.

 

(b)  Upon (1) the valid exercise of the
Survivor’s Option and the proper tender of this Note by or on behalf of a
person that has authority to act on behalf of the deceased Beneficial Owner of
this Note under the laws of the appropriate jurisdiction (including, without
limitation, the personal representative or executor of the deceased Beneficial
Owner or the surviving joint owner of the deceased Beneficial Owner) (the “Representative”)
and (2) the tender and acceptance of that portion of the Funding Agreement
equal to the amount of the portion of this Note to be repaid, the Trust shall
repay this Note (or portion thereof) at a price equal to 100% of the unpaid
Principal Amount of the deceased Beneficial Owner’s beneficial interest in this
Note plus accrued and unpaid interest to, but excluding, the date of such
repayment.  However, the Trust shall not
be obligated to repay:

 

(i)  beneficial
ownership interests in Notes exceeding the greater of $1,000,000 or 1% (or such
other amounts, as specified in the Pricing Supplement) in aggregate principal
amount for all notes then outstanding under the Genworth DirectNotesSM program as of the end of the most recent
calendar year (the “Annual Put Limitation”);

 

(ii)  on behalf of
an individual deceased Beneficial Owner, any beneficial ownership interest in
all notes issued under the Genworth DirectNotesSM program that exceeds $250,000 (or such
other amounts, as specified in the Pricing Supplement) in any calendar year
(the “Individual Put Limitation”); or

 

(iii)  beneficial
ownership interests in Notes exceeding the amount specified on the face hereof
and in the Pricing Supplement (the “Trust Put Limitation”).

 

(c)  The Trust shall not make principal
repayments pursuant to exercise of the Survivor’s Option in amounts that are
less than $1,000, and, in the event that the limitations described in the
preceding sentence would result in the partial repayment of this Note, the
Principal Amount remaining Outstanding after repayment must be at least $1,000
(the minimum authorized denomination of the Notes).

 

(d)  An otherwise valid election to exercise the
Survivor’s Option may not be withdrawn.

 

 

23

 

(e)  Election to exercise the Survivor’s Option
will be accepted in the order that elections are received by the Indenture
Trustee, except for any Notes (or portion thereof) the acceptance of which
would contravene (1) the Annual Put Limitation, (2) the Individual
Put Limitation or (3) the Trust Put Limitation.  Any Note (or portion thereof) accepted for
repayment pursuant to exercise of the Survivor’s Option shall be repaid on the
first Interest Payment Date that occurs 20 or more calendar days after the date
of such acceptance.  If, as of the end of
any calendar year, the aggregate principal amount of all notes (or portions
thereof) issued under the Genworth DirectNotesSM program that have been tendered pursuant
to the valid exercise of the Survivor’s Option during such year has exceeded
the Annual Put Limitation, the Individual Put Limitation or the Trust Put
Limitation, for such year, any exercise(s) of the Survivor’s Option with
respect to Notes (or portions thereof) not accepted during such calendar year,
because such acceptance would have contravened any such limitation, shall be
deemed to be tendered on the first day of the following calendar year in the
order all such notes (or portions thereof) were originally tendered.  In the event that this Note (or any portion
hereof) tendered for repayment pursuant to valid exercise of the Survivor’s
Option is not accepted or is to be delayed, the Indenture Trustee shall deliver
a notice by first-class mail to the presenting direct Participant that states
the reason such Note (or portion thereof) has not been accepted for payment or
is to be delayed.

 

(f)  In order to obtain repayment through
exercise of the Survivor’s Option with respect to this Note (or portion
hereof), the Representative must provide the following items to the broker or
other entity through which the beneficial interest in this Note is held by the
deceased Beneficial Owner: (1) a written instruction to such broker or
other entity to notify the Depositary of the Representative’s desire to obtain
repayment through the exercise of the Survivor’s Option; (2) appropriate
evidence satisfactory to the Indenture Trustee that (i) the deceased was
the Beneficial Owner of this Note at the time of death and the interest in this
Note was owned by the deceased Beneficial Owner or his or her estate for a
period beginning at least six months immediately prior to the death of such
Beneficial Owner, which evidence may be in the form of a letter from the
Representative, (ii) the death of such Beneficial Owner has occurred, and
the date of such death, and (iii) the Representative has authority to act
on behalf of the deceased Beneficial Owner; (3) if the interest in this
Note is held by a nominee of the deceased Beneficial Owner, a certificate or
letter satisfactory to the Indenture Trustee from such nominee attesting to the
deceased’s beneficial ownership of this Note; (4) a written request for
repayment signed by the Representative, with the signature guaranteed by a
member firm of a registered national securities exchange or of the National
Association of Securities Dealers, Inc. or a commercial bank or trust
company having an office or correspondent in the United States; (5) if
applicable, a properly executed assignment or endorsement; (6) tax waivers
and such other instruments or documents that the Indenture Trustee reasonably
requires in order to establish the validity of the beneficial ownership of this
Note and the claimant’s entitlement to payment; and (7) any additional
information the Indenture Trustee reasonably requires to evidence satisfaction
of any conditions to the exercise of such Survivor’s Option or to document
beneficial ownership or authority to make the election and to cause the
repayment of this Note.  Such broker or
other entity shall then deliver each of these items to the direct Participant
of the Depositary, such direct Participant being the entity that holds the
beneficial interest in this Note on behalf of the deceased Beneficial Owner,
together with evidence satisfactory to the Indenture Trustee from the broker or
other entity stating that it represents the deceased Beneficial Owner.  Such direct Participant shall then execute an
election form in the form attached hereto as Annex A and deliver such items to
the Indenture Trustee.  If the Indenture
Trustee determines that it has 

 

 

24

 

received the requisite
documentation and information and all other conditions described herein are
satisfied, the Indenture Trustee shall make payment of the applicable amount to
the direct Participant through DTC. Such direct Participant shall be
responsible for disbursing any payments it receives from the Depositary
pursuant to exercise of the Survivor’s Option to the appropriate Representative.  All questions, other than with respect to the
right to limit the aggregate Principal Amount of Notes as to which exercises of
the Survivor’s Option shall be accepted in any one calendar year, regarding the
eligibility or validity of any exercise of the Survivor’s Option will be
determined by the Indenture Trustee, in its sole discretion, which
determination shall be final and binding on all parties; provided,
however, that any such determination is
subject to the right of GLAIC to require reasonable evidence that the exercise
of the Survivor’s Option satisfied all of the terms and conditions described in
this Note and any restrictions contained in the relevant Funding
Agreement.  The Indenture Trustee shall
have no liability to any Person, including, without limitation, the Trust,
GLAIC, any Holder of this Note, any Beneficial Owner or the deceased Beneficial
Owner’s Representative, arising out of any determination made by it relating to
the eligibility or validity of any exercise of the Survivor’s Option, unless
occasioned by the Indenture Trustee’s gross negligence or willful misconduct.

 

(g)  The death of a person holding a beneficial
interest in this Note as a joint tenant or tenant by the entirety with another
person, or as a tenant in common with the deceased owner’s spouse, will be
deemed the death of the Beneficial Owner of this Note, and the entire Principal
Amount of this Note so held shall be subject to repayment by the Trust upon
request in accordance with the terms and provisions hereof.  However, the death of a person holding a
beneficial interest in this Note as tenant in common with a person other than
such deceased owner’s spouse will be deemed the death of a Beneficial Owner
only with respect to such deceased person’s ownership interest in this Note.

 

(h)  The death of a person who was a lifetime
beneficiary of a trust holding a beneficial interest in this Note will be
treated as the death of the Beneficial Owner of this Note to the extent of that
person’s interest in the trust.  The death
of a person who was a tenant by the entirety or joint tenant in a tenancy which
is the beneficiary of a trust holding a beneficial interest in this Note will
be treated as the death of the Beneficial Owner of this Note.  The death of an individual who was a tenant
in common in a tenancy which is the beneficiary of a trust holding a beneficial
interest in this Note will be treated as the death of the Beneficial Owner of
this Note only with respect to the deceased person’s beneficial interest in
this Note, unless a husband and wife are the tenants in common, in which case
the death of either will be treated as the death of the owner of this Note.

 

(i)  The death of a person who, during his or her
lifetime, was entitled to substantially all of the beneficial ownership
interests in this Note will be deemed the death of the Beneficial Owner of this
Note for purposes of the Survivor’s Option, regardless of whether that
Beneficial Owner was the registered holder of this Note, if such beneficial
ownership interest can be established to the satisfaction of the Indenture
Trustee.  A beneficial ownership interest
will be deemed to exist in typical cases of nominee ownership, such as
ownership under the Uniform Transfers of Gifts to Minors Act, community
property or other joint ownership arrangements between a husband and wife and
lifetime custodial and trust arrangements.

 

 

25

ANNEX A

 

REPAYMENT ELECTION FORM

 

Genworth Life and Annuity
Insurance Company

 

Genworth DirectNotesSM

 

CUSIP Number         

 

To:  [Name of Trust] (the “TRUST”)

 

The undersigned financial institution (the “FINANCIAL INSTITUTION”)
represents the following:

 

·                                          The Financial Institution has received a
request for repayment from the executor or other authorized representative (the
“AUTHORIZED REPRESENTATIVE”) of the deceased beneficial owner listed below (the
“DECEASED BENEFICIAL OWNER”) of Genworth DirectNotesSM (CUSIP No.                         )
(the “NOTES”).

 

·                                          At the time of his or her death, the
Deceased Beneficial Owner owned Notes in the principal amount listed below.

 

·                                          The Deceased Beneficial Owner or the
estate of the Deceased Beneficial Owner owned the Notes for a period beginning
at least six (6) months immediately prior to the request.

 

·                                          The Financial Institution currently holds
such notes as a direct or indirect participant in The Depository Trust Company
(the “DEPOSITARY”).

 

The Financial Institution agrees to the following
terms:

 

·                                          The Financial Institution shall follow
the instructions (the “INSTRUCTIONS”) accompanying this Repayment Election Form (this
“FORM”).

 

·                                          The Financial Institution shall deliver
to The Bank of New York Trust Company, N.A. (the “INDENTURE TRUSTEE”) the
originals of all records specified in the Instructions supporting the above
representations and all other related documents received from any relevant
broker or other entity, and shall retain photocopies thereof, and shall make
such photocopies available to U.S. Bank National Association (the “TRUSTEE”) or
the Trust for inspection and review within five business days of the Trustee’s
or the Trust’s request.

 

·                                          If the Financial Institution, the
Indenture Trustee, the Trustee or the Trust, in any such party’s reasonable
discretion, deems any of the records specified in the Instructions supporting
the above representations or any such other related documents unsatisfactory to
substantiate a claim for repayment, the Financial 

 

26

 

Institution shall
not be obligated to submit this Form, and the Indenture Trustee, the Trustee or
Trust may deny repayment.  If the Financial
Institution cannot substantiate a claim for repayment, it shall notify the
Indenture Trustee immediately.

 

·                                          Repayment elections may not be withdrawn.

 

·                                          The Financial Institution agrees to
indemnify and hold harmless the Trustee, the Trust and the Indenture Trustee
against and from any and all claims, liabilities, costs, losses, expenses,
suits and damages resulting from the Financial Institution’s above
representations and request for repayment on behalf of the Authorized
Representative.

 

·                                          The Notes will be repaid on the first
interest payment date to occur at least 20 calendar days after the date of
acceptance of the notes for repayment, unless such date is not a business day,
in which case the date of repayment shall be the next succeeding business day.

 

·                                          Subject to the Trust’s rights to limit the aggregate
principal amount of Notes as to which exercises of the survivor’s
option shall be accepted in any one calendar year, all questions as to the
eligibility or validity of any exercise of the survivor’s option will be
determined by the Indenture Trustee, in its sole discretion, which
determination shall be final and binding on all parties.

 

27

 

	
  REPAYMENT
  ELECTION FORM

  
	
  (1)

  
	
  Name of Deceased Beneficial Owner

  
	
   

  
	
  (2)

  
	
  Date of Death

  
	
   

  
	
  (3)

  
	
  Date of Purchase

  
	
   

  
	
  (4)

  
	
  Name of Authorized Representative Requesting Repayment

  
	
   

  
	
  (5)

  
	
  Name of Financial Institution Requesting Repayment

  
	
   

  
	
  (6)

  
	
  Signature of Authorized Representative of
  Financial Institution Requesting Repayment

  
	
   

  
	
  (7)

  
	
  Principal Amount of Requested Repayment

  
	
   

  
	
  (8)

  
	
  Date of Election

  
	
  (9)

  	
   

  	
  Financial
  Institution:

  	
  (10)

  	
   

  	
  Wire
  instructions for payment:

  
	
   

  	
   

  	
  Representative
  Name:

  	
   

  	
   

  	
  Bank
  Name:

  
	
   

  	
   

  	
  Phone
  Number:

  	
   

  	
   

  	
  ABA
  Number:

  
	
   

  	
   

  	
  Fax
  Number:

  	
   

  	
   

  	
  Account
  Name:

  
	
   

  	
   

  	
  Mailing
  Address (no P.O. Boxes):

  	
   

  	
   

  	
  Account
  Number:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Reference
  (optional):

  
	
   

  

 

	
  TO BE COMPLETED BY THE
  INDENTURE TRUSTEE  

  
	
   

  
	
  (A) Delivery and Payment Date:   

  
	
   

  
	
   

  
	
  (B)Principal Amount:   

  
	
   

  
	
   

  
	
  (C)Accrued Interest:   

  
	
   

  
	
   

  
	
  (D) Date of Receipt of Form by the Indenture Trustee:   

  
	
   

  
	
   

  

 

28

 

INSTRUCTIONS FOR COMPLETING REPAYMENT ELECTION FORM AND
EXERCISING

REPAYMENT OPTION

 

Capitalized terms used and not defined herein
have the meanings defined in the accompanying Repayment Election Form.

 

1.               Collect and retain
for a period of at least three years (1) satisfactory evidence of the
authority of the Authorized Representative, (2) satisfactory evidence of
death of the Deceased Beneficial Owner, (3) satisfactory evidence that the
Deceased Beneficial Owner beneficially owned, at the time of his or her death,
the notes being submitted for repayment, which evidence may be in the form of a
letter from the Authorized Representative, (4) satisfactory evidence that
the notes being submitted for repayment were acquired by the Deceased
Beneficial Owner or the estate of the Deceased Beneficial Owner for a period
beginning at least six months immediately prior to the request, which evidence
may be in the form of a letter from the Authorized Representative and (5) any
necessary tax waivers.  For purposes of
determining whether the notes will be deemed beneficially owned by an
individual at any given time, the following rules shall apply:

 

·                  If a note (or a
portion thereof) is beneficially owned by tenants by the entirety or joint
tenants, the note (or relevant portion thereof) will be regarded as
beneficially owned by a single owner. 
Accordingly, the death of a tenant by the entirety or joint tenant will
be deemed the death of the beneficial owner and the entire principal amount so
owned will become eligible for repayment.

 

·                  The death of a
person beneficially owning a note (or a portion thereof) by tenancy in common
will be deemed the death of the beneficial owner only with respect to the
deceased owner’s interest in the note (or relevant portion thereof) so owned,
unless a husband and wife are the tenants in common, in which case the death of
either will be deemed the death of the beneficial owner and the entire
principal amount so owned will be eligible for repayment.

 

·                  A note (or a
portion thereof) beneficially owned by a trust will be regarded as beneficially
owned by each beneficiary of the trust to the extent of that beneficiary’s
interest in the trust (however, a trust’s beneficiaries collectively cannot be
beneficial owners of more notes than are owned by the trust).  The death of a beneficiary of a trust will be
deemed the death of the beneficial owner of the notes (or relevant portion
thereof) beneficially owned by the trust to the extent of that beneficiary’s interest
in the trust.  The death of an individual
who was a tenant by the entirety or joint tenant in a tenancy which is the
beneficiary of a trust will be deemed the death of the beneficiary of the
trust.  The death of an individual who
was a tenant in common in a tenancy which is the beneficiary of a trust will be
deemed the death of the beneficiary of the trust only with respect to the
deceased holder’s beneficial interest in the note, unless a husband and wife
are the tenants in common, in which case the death of either will be deemed the
death of the beneficiary of the trust.

 

·                  The death of a
person who, during his or her lifetime, was entitled to substantially all of
the beneficial interest in a note (or a portion thereof) will be deemed the
death of the beneficial owner of that note (or relevant portion thereof),
regardless of the 

 

29

 

registration
of ownership, if such beneficial interest can be established to the
satisfaction of the trustee.  Such beneficial
interest will exist in many cases of street name or nominee ownership,
custodial arrangements, ownership by a trustee, ownership under the Uniform
Transfers of Gifts to Minors Act and community property or other joint
ownership arrangements between spouses. 
Beneficial interest will be evidenced by such factors as the power to
sell or otherwise dispose of a note, the right to receive the proceeds of sale
or disposition and the right to receive interest and principal payments on a
note.

 

2.               Indicate the name
of the Deceased Beneficial Owner on line (1).

 

3.               Indicate the date
of death of the Deceased Beneficial Owner on line (2).

 

4.               Indicate the date
of purchase on line (3).

 

5.               Indicate the name of the
Authorized Representative requesting repayment on line (4).

 

6.               Indicate the name
of the Financial Institution requesting repayment on line (5).

 

7.               Affix the
authorized signature of the Financial Institution’s representative on line
(6).  THE SIGNATURE MUST BE MEDALLION
SIGNATURE GUARANTEED.

 

8.               Indicate the
principal amount of notes to be repaid on line (7).

 

9.               Indicate the date
this Form was completed on line (8).

 

10.         Indicate the name,
mailing address (no P.O. boxes, please), telephone number and
facsimile-transmission number of the Financial Institution.

 

11.         Indicate the wire
instruction for payment on line (10).

 

12.         Leave lines (A), (B),
(C), (D) and (E) blank.

 

13.         Mail
or otherwise deliver an original copy of the completed Form to:

 

	
  By
  Registered Mail:

  	
   

  	
  By
  Courier or Overnight Delivery

  
	
  The
  Bank of New York Trust 

  Company, N.A.

  	
   

  	
  The
  Bank of New York Trust 

  Company, N.A.

  
	
  Survivor
  Option Processing

  	
   

  	
  Survivor
  Option Processing

  
	
  P.O. Box
  2320

  	
   

  	
  2001
  Bryan Street — 10th Floor

  
	
  Dallas,
  Texas 75221-2320

  	
   

  	
  Dallas,
  Texas 75201

  

 

14.         FACSIMILE TRANSMISSIONS
OF THE REPAYMENT ELECTION FORM WILL NOT BE ACCEPTED.

 

15.         For assistance with this Form or
any questions relating thereto, please contact the indenture trustee at: The
Bank of New York Trust Company, N.A., 2001 Bryan Street — 10th
Floor, Dallas, Texas 75201, attention: Survivor Option Processing, telephone
number: 1-800-275-2048.

 

30

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