Document:

EXHIBIT
10.2

 

THIS NOTE AND THE SUBORDINATED NOTE PURCHASE AGREEMENT
REFERENCED AND INCORPORATED HEREIN IS SUBJECT TO ARBITRATION PURSUANT TO THE
SOUTH CAROLINA UNIFORM ARBITRATION ACT.: SC CODE ANN. §15-48-10 ET SEQ. AND THE FEDERAL ARBITRATION ACT 9
U.S.C. 1  ET SEQ.

 

The issuance of this Subordinated Note has
not been registered under the Securities Act of 1933 or applicable state laws,
and this Note may not be sold or transferred except in a transaction that is
exempt under such laws or pursuant to an effective registration under such
laws.

 

This obligation is not a deposit and is not
insured by the United States or any agency or fund of the United States,
including the Federal Deposit Insurance Corporation. This obligation is
subordinated to the claims of senior indebtedness of the Company and is not
secured.

 

11.5% SUBORDINATED NOTE DUE
2018

 

$[              ]    [INSERT APPLICABLE CLOSING DATE], 2008

 

FOR VALUE RECEIVED, the undersigned, COMMUNITYSOUTH FINANCIAL
CORPORATION, a South Carolina corporation (the “Company”), hereby promises to
pay to the order of [
                              ], an [individual resident of South Carolina]
(“Purchaser”), at its offices at 6602 Calhoun Memorial Highway, Easley, South
Carolina 29640 (or at such other place as the holder may from time to time
designate) the principal sum of [                    ($            )] on September 30, 2018 (the “Maturity
Date”) (or such date as the Company may prepay the principal sum pursuant to Section 1.4
of the Note Purchase Agreement (as defined below) or any earlier date of
acceleration of the Maturity Date), and to pay interest accrued on the
outstanding principal amount of this 11.5% Subordinated Note Due 2018 (the “Note”)
from [INSERT APPLICABLE CLOSING DATE], 2008, or from the most recent Interest
Payment Date (as defined below) to which interest has been paid or duly
provided for, quarterly on the first day of each calendar quarter, commencing
on [October 1, 2008(1)] (each, an “Interest Payment Date”), at a rate per
annum of 11.5% (or such rate of interest as then in affect pursuant to Section 1.2
of the Note Purchase Agreement) until the principal hereof shall have been paid
or duly provided for, compounded quarterly.

 

(1) If a Note were sold in a Closing after October 1, 2008,
then this date would be January 1, 2009.

 

 

This Note is one of the Notes referred to in the Subordinated Note
Purchase Agreement (as may be amended, modified, or restated from time to
time), dated as of August 22, 2008, by and among the Company and the
purchasers of the Company’s 11.5% Subordinated Notes Due 2018 (the “Note
Purchase Agreement”). Capitalized terms used in this Note are defined in the
Note Purchase Agreement, unless otherwise expressly stated herein. This Note is
entitled to the benefits of the Note Purchase Agreement and is subject to all
of the agreements, terms and conditions contained therein, all of which are
incorporated herein by this reference. This Note may be prepaid, in whole or in
part, in accordance with the terms and conditions set forth in the Note
Purchase Agreement.

 

The outstanding principal balance of this Note shall be due and payable
as provided in Section 1.4 of the Note Purchase Agreement. Interest on the
principal amount of this Note from time to time outstanding, and other amounts
owing, shall be due and payable as provided in Section 1.2 of the Note
Purchase Agreement (computed on the basis of the actual number of days elapsed
over a 365/366-day year). In no event, however, shall interest exceed the
maximum rate permitted by law.

 

If an Event of Default involving bankruptcy provided for under Section 7.1(F) of
the Note Purchase Agreement occurs, then the principal of, interest accrued on,
and other Obligations payable under the Notes and the Transaction Documents will
immediately become due and payable. Notwithstanding anything to the contrary
herein or in the Note Purchase Agreement, other than Section 7.1(F) of
the Note Purchase Agreement, there is no right of acceleration for any Default,
including a default in the payment of principal or interest or the performance
of any other covenant or obligation by the Company, or Event of Default under
this Note or the Note Purchase Agreement.

 

This Note is not secured by any assets or commitments of the Company.
This Note is a debt of the Company only and is not an obligation of
CommunitySouth Bank and Trust or any of its affiliates.

 

The Indebtedness of the Company evidenced by this Note, including the
principal, interest and premium, if any, is, to the extent and in the manner
set forth in the Note Purchase Agreement, unsecured, subordinated and junior in
right of payment to its obligations to holders of Senior Indebtedness, as
defined in the Note Purchase Agreement, and each holder of the Notes, by the
acceptance hereof, agrees to and shall be bound by such provisions of the Note
Purchase Agreement.

 

THIS NOTE SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF SOUTH CAROLINA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

BINDING ARBITRATION.
UPON DEMAND OF ANY PARTY (AS DEFINED IN THE NOTE PURCHASE AGREEMENT) (THE
TERM PARTY INCLUDES, WITHOUT LIMITATION, ANY SUBSEQUENT HOLDER OF THIS
NOTE),WHETHER SUCH DEMAND IS MADE BEFORE OR AFTER INSTITUTION OF ANY
JUDICIAL  

 

 

PROCEEDING, ANY DISPUTE, CLAIM OR CONTROVERSY ARISING OUT OF, CONNECTED
WITH OR RELATING TO THIS NOTE AND/OR ANY OTHER TRANSACTION DOCUMENT, THEIR
SUBJECT MATTER OR FORMATION OR EXECUTION, OR ANY RIGHT OR OBLIGATION CREATED
THEREBY, IRRESPECTIVE OF THE LEGAL THEORY OR CLAIMS UNDERLYING SUCH DISPUTE,
CLAIM OR CONTROVERSY (INCLUDING TORT OR STATUTORY CLAIMS) (ANY “DISPUTE”)
BETWEEN OR AMONG ANY PARTIES SHALL BE RESOLVED BY BINDING ARBITRATION AS
PROVIDED IN SECTION 10 OF THE REFERENCED NOTE PURCHASE AGREEMENT
INCORPORATED HEREIN. INSTITUTION OF A JUDICIAL PROCEEDING BY A PARTY DOES NOT
WAIVE THE RIGHT OF THAT PARTY TO DEMAND ARBITRATION HEREUNDER. DISPUTES MAY INCLUDE,
WITHOUT LIMITATION, TORT CLAIMS, COUNTERCLAIMS, DISPUTES AS TO WHETHER A MATTER
IS SUBJECT TO ARBITRATION, CLAIMS BROUGHT AS CLASS ACTIONS, CLAIMS RELATING TO
ANY TRANSACTION DOCUMENT EXECUTED IN THE FUTURE, OR CLAIMS ARISING OUT OF OR
CONNECTED WITH THE TRANSACTION REFLECTED BY THIS NOTE.

 

EXCLUSIVE VENUE SELECTION.
IN THE EVENT THE PRIOR BINDING ARBITRATION IS FOUND TO BE UNENFORCEABLE (OR IF
NO PARTY DEMANDS ARBITRATION), ANY DISPUTE ARISING BETWEEN OR AMONG ANY PARTIES
SHALL BE BROUGHT EXCLUSIVELY IN THE COURT OF COMMON PLEAS FOR GREENVILLE
COUNTY, SOUTH CAROLINA OR IN THE FEDERAL COURTS OF THE DISTRICT OF SOUTH
CAROLINA, GREENVILLE DIVISION.

 

CONSENT TO JURISDICTION.
EACH PARTY CONSENTS TO THE JURISDICTION OF THE STATE COURTS OF GREENVILLE
COUNTY, SOUTH CAROLINA AND THE FEDERAL COURTS OF THE DISTRICT OF SOUTH
CAROLINA, GREENVILLE DIVISION. EACH PARTY EXPRESSLY AND IRREVOCABLY CONSENTS TO
THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSES OF LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE, OR FORUM NON CONVENIENS.

 

EACH PARTY WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY
DISPUTE. EACH PARTY ACKNOWLEDGES THAT THIS WAVIER IS A MATERIAL INDUCEMENT FOR
COMPANY AND PURCHASER TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
RELIED ON THIS WAIVER IN ENTERING INTO THIS NOTE AND THE OTHER TRANSACTION
DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED
FUTURE DEALINGS. PURCHASER, ANY SUBSEQUENT HOLDERS AND THE COMPANY REPRESENT
AND WARRANT THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER
WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS.

 

The provisions of this Note are continued on the reverse side hereof
and such provisions shall for all purposes have the same effect as though fully
set forth at this place.

 

 

The undersigned expressly waives any presentment, demand, protest,
notice of default, notice of intention to accelerate, notice of acceleration or
notice of any other kind except as expressly provided in the Note Purchase
Agreement.

 

 

This Note is executed as of the date first written above.

 

	
   

  	
  COMMUNITYSOUTH FINANCIAL CORPORATION,

  
	
   

  	
  a South
  Carolina corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Allan Ducker, III

  
	
   

  	
   

  
	
   

  	
  Title: Chief Executive Officer

  
				

 

 

REVERSE OF SECURITY

 

No reference herein to the Note Purchase Agreement and no provision of
this Note or of the Note Purchase Agreement shall alter or impair the
obligation of the Company, which is absolute and unconditional, to make all
payments due on this Note at the time and place and at the rate and in the
money herein prescribed.

 

Subject to the terms and conditions of the Note Purchase Agreement,
this Note is transferable by the holder hereof on the register maintained by
the Company, or its agent, upon surrender of this Note for registration of
transfer at the office of the Company duly executed by the holder hereof or
such holder’s attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees. No service
charge will be made for any such registration of transfer.

 

Prior to due presentment for registration of transfer of this Note, the
Company, or its agent, may deem and treat the holder hereof as the absolute
owner hereof for the purpose of receiving payment of the principal of and
premium, if any, and interest on this Note and for all other purposes, and
neither the Company, nor its agent, shall be affected by any notice to the
contrary.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 August 25,
2008, relating to the issuance by Genworth Global Funding Trust 2008-46  (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
August 25, 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 August 25, 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 August 25, 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 August 25, 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 Mellon 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
Mellon Trust Company, N.A., as the indenture trustee (the “Indenture Trustee”).

 

The Bank of New York Mellon 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 $2,498,000.00.

 

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 August 25, 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
$2,498,000.00.

 

(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 3:31 pm EST, August 25, 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 August 25, 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 Mellon 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 2008-46 

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 Mellon 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

Richmond, Virginia
23219

Attention: Retirement Services

Facsimile: (804)
782-7439

 

D-3

 

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

  

 

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

  

 

E-2

 

	
   

  	
  THE BANK OF NEW
  YORK MELLON 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/
  Dawnn R. Walters    

  
	
   

  	
   

  	
  Name: Dawnn R. Walters

  
	
   

  	
   

  	
  Title:  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

  

 

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 August 18, 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-1

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