Document:

EXHIBIT 4.05

 

2011 AEGON Group Identified Staff Variable Compensation Plan Rules

 

	
Previously   submitted to DNB
    	
August 22,   2011
    
	
 
    	
 
    
	
Revised and   updated:
    	
November 1,   2011
    
	
Approved by the   AEGON N.V. Executive Board
    	
November 15,   2011
    
	
 
    	
 
    
	
Submitted to DNB
    	
November 18,   2011
    

 

 

DEFINITIONS

 

	
Agreement:
    	
the agreement between the Participant   and the Company concluded at the start of participation in the Plan   Rules containing the terms and conditions relating to the Variable   Compensation under the Plan Rules;
    
	
 
    	
 
    
	
AEGON or the Company:
    	
AEGON N.V., a public limited liability   company incorporated under Dutch law and having its statutory seat at   AEGONplein 50, 2591 TV, The Hague, The Netherlands and, where applicable, any   of its Subsidiaries;
    
	
 
    	
 
    
	
AEGON Group:
    	
AEGON N.V. and its Subsidiaries;
    
	
 
    	
 
    
	
Allocation:
    	
means the allocation of a Variable   Compensation Grant following the Ex ante risk-based assessment pursuant to   clause 4.6 and the assessment of actual realized performance on the   Performance Indicators;
    
	
 
    	
 
    
	
Business Day:
    	
any day on which the NYSE Euronext   stock exchange in Amsterdam, the Netherlands (or its successor) is open for   business;
    
	
 
    	
 
    
	
Change of Control:
    	
a transaction or series of   transactions or the conclusion of an agreement, that either alone or taken   together may result in an outside party obtaining Control of the Company;
    
	
 
    	
 
    
	
Claw Back:
    	
means the claw back right of the   Company pursuant to clause 4.10;
    
	
 
    	
 
    
	
Committee:
    	
the Compensation Committee of the   Supervisory Board;
    
	
 
    	
 
    
	
Control:
    	
means (i) the possession, directly   or indirectly, of the majority of the outstanding shares in the capital of   the Company, or (ii) the ability, directly or indirectly, to vote on the   majority of the outstanding shares in the capital of the Company or   (iii) the ability, directly or indirectly, to appoint the majority of   the members of the Executive Board and/or the Supervisory Board;
    
	
 
    	
 
    
	
Disability or Disabled:
    	
a Participant who is totally and   permanently disabled, as defined by any applicable disability law;
    
	
 
    	
 
    
	
Deferred Part:
    	
means the part of the Variable   Compensation which will be paid (in parts) during the subsequent years   following the Plan Year if and to the extent the Performance Indicators have   been achieved in accordance with these Plan Rules;
    
	
 
    	
 
    
	
Ex-ante risk-based assessment:
    	
means the assessment referred to in   clause 4.5;
    

 

 

	
Ex-post Malus assessment:
    	
means the assessment referred to in   clause 4.6;
    
	
 
    	
 
    
	
Executive Board:
    	
the Executive Board of the Company;
    
	
 
    	
 
    
	
Fixed Salary:
    	
the annual amount of fixed   compensation to be determined as part of the Total Compensation, including   holiday allowance and 13th month, if any;
    
	
 
    	
 
    
	
Grant(s):
    	
the conditional grant of Variable   Compensation to a Participant in relation to the Plan Year, as set out in   section 2 of the Plan Rules;
    
	
 
    	
 
    
	
Grant Date:
    	
has the meaning attributed hereto in   section 2.8;
    
	
 
    	
 
    
	
Grant Price:
    	
means the average Share price on the   NYSE Euronext stock exchange in Amsterdam, the Netherlands during the period   15 December preceding the Plan Year and 15 January of the Plan   Year;
    
	
 
    	
 
    
	
Holding Period:
    	
means the holding period as referred   to in clause 5.4;
    
	
 
    	
 
    
	
Identified Staff:
    	
Employees of AEGON Group who have been   identified by the Company as Identified Staff;
    
	
 
    	
 
    
	
Participant:
    	
a Participant who is an employee of   AEGON Group and who has accepted the terms and conditions of the Variable   Compensation Plan Rules by signing the Agreement;
    
	
 
    	
 
    
	
Pay-out or Paid-out:
    	
means the pay-out of the cash part of   the Variable Compensation in accordance with these Plan Rules;
    
	
 
    	
 
    
	
Pay-out Date:
    	
means the date of a Pay-out in   accordance with these Plan Rules;
    
	
 
    	
 
    
	
Performance Indicators:
    	
the one-year performance indicators   which will be used to calculate the allocated Variable Compensation of a   Participant regarding the Plan Year in accordance with section 3 of these   Plan Rules;
    
	
 
    	
 
    
	
Plan Year or Performance Year:
    	
the financial year 2011 during which   these Plan Rules are in place. In the event the Plan Rules are   terminated prior to the end of the financial year, the expression ‘Plan Year’   shall refer to the period between January 1 and the date of termination;
    
	
 
    	
 
    
	
Release(d):
    	
means the release of any Shares to the   Participant following Vesting, or, in case a Holding Period applies at the   end of such Holding Period, in accordance with these Plan Rules;
    
	
 
    	
 
    
	
Release Date:
    	
the date of Release;
    
	
 
    	
 
    
	
Remuneration Framework:
    	
the AEGON Group Global Remuneration   Framework 2011 as may be amended from time to time;
    
	
 
    	
 
    
	
Retirement:
    	
the (early) actual retirement of a   Participant, either (i) under a pension plan of the Company or any of   its Subsidiaries, as shall be in place from time to time or   (ii) subsequent to a decision of the Company in accordance with the   Company’s articles of incorporation or an individual employment contract. If   under local laws the starting date of (early) retirement is at the
    

 

 

	
 
    	
option of the Participant, a   Participant will only be considered a Good Leaver if such Participant   actually starts drawing (early) retirement benefits;
    
	
 
    	
 
    
	
Sale:
    	
a sale of all or substantially all the   shares in the capital of the Company or all or substantially all of the   assets of the Company and its Subsidiaries;
    
	
 
    	
 
    
	
Shares:
    	
a common share in the capital of the   Company, with a nominal value of EUR 0.12 (twelve eurocent), as may be   granted as part of the Variable Compensation;
    
	
 
    	
 
    
	
Subsidiary:
    	
a direct or indirect subsidiary of the   Company determined as such by the Company for the purpose of these Plan   Rules;
    
	
 
    	
 
    
	
Supervisory Board:
    	
the Supervisory Board of the Company;
    
	
 
    	
 
    
	
System:
    	
an internet application made available   by AEGON which facilitates a Participant with transactions regarding the   Shares or any other system designated by the Executive Board for such purpose1;
    
	
 
    	
 
    
	
Total Compensation:
    	
the Total Compensation for a   Participant which consists of a Fixed Salary and a Variable Compensation;
    
	
 
    	
 
    
	
Upfront Part:
    	
means the part of the Variable   Compensation which will be paid after one year following Allocation in   accordance with these Plan Rules;
    
	
 
    	
 
    
	
Variable Compensation:
    	
the variable component of the Total   Compensation, consisting of an Upfront Part and a Deferred Part, in   accordance with these Plan Rules;
    
	
 
    	
 
    
	
Variable Compensation Plan Rules or   Plan Rules
    	
the Variable Compensation Plan   Rules that set out the terms and conditions of the Variable   Compensation, as may be amended from time to time;
    
	
 
    	
 
    
	
Vest(ing):
    	
the occasion upon which a Participant   is transferred the unconditional legal ownership of the initially   conditionally granted Cash and / or Shares, as set out in the Plan Rules;   notwithstanding that Release of Shares may only take place after the lapsing   of a Holding Period;
    
	
 
    	
 
    
	
Vesting Date:
    	
the date on which date the Cash and /   or Shares will Vest in accordance with the Plan Rules; and
    
	
 
    	
 
    
	
Vesting Schedule:
    	
The schedule based on which the   Deferred Part of the Variable Compensation will Vest and be Paid-out or   Released to Participants.
    

 

Words or expressions used in these Plan Rules shall, where appropriate, be interpreted as follows:

 

	
1.1.1.
    	
Definitions and terms used in these   Plan Rules can be found in the list of Definitions; these definitions as   stated therein shall be binding;
    
	
 
    	
 
    
	
1.1.2.
    	
All references to the masculine gender   include the feminine and vice versa;
    
	
 
    	
 
    
	
1.1.3.
    	
All references to singular include the   plural and vice versa if the context so requires;
    

 

	
1
    	
Currently UBS EquatePlus
    

 

 

	
1.1.4.
    	
All headings and sub-headings are for   ease of reference only, and shall not affect the interpretation of any   clauses of these Plan Rules;
    
	
 
    	
 
    
	
1.1.5.
    	
All references to any enactment or   terms under Dutch law shall be extended to other applicable laws or terms of   any other country, or region of a country;
    
	
 
    	
 
    
	
1.1.6.
    	
All references to tax and/or social   security contributions and/or withholding taxes include any tax, social   security contribution or withholding tax that is levied or withheld in the   Netherlands or any other applicable jurisdiction.
    
	
 
    	
 
    
	
1
    	
Introduction and purpose
    
	
 
    	
 
    
	
1.1
    	
These Variable Compensation Plan   Rules (the Plan Rules)   are intended to provide for Variable Compensation in the form of cash and /   or Shares to eligible employees of AEGON Group and its Subsidiaries who   qualify as Identified Staff to strengthen their commitment to the Company’s   business strategy, risk tolerance and long-term performance, as further set   out in the Remuneration Framework or any other arrangements applicable to   Participants.
    
	
 
    	
 
    
	
1.2
    	
These Plan Rules are subject to   the terms and conditions of the Remuneration Framework and/or other   arrangements regarding variable compensation that may apply to the   Participant.
    
	
 
    	
 
    
	
1.3
    	
In the event of any discrepancies or   inconsistencies between these Plan Rules and the Remuneration Framework,   the latter shall prevail.
    
	
 
    	
 
    
	
1.4
    	
In these Plan Rules, unless the   context otherwise requires, the capitalized words and expressions shall have   the meaning as set forth in the list of Definitions.
    
	
 
    	
 
    
	
2
    	
Conditional Grant   Variable Compensation
    
	
 
    	
 
    
	
2.1
    	
The Company may conditionally grant a   Participant a conditional entitlement to Variable Compensation.
    
	
 
    	
 
    
	
2.2
    	
A conditional entitlement to Variable   Compensation will only be made to a Participant upon acceptance of these Plan   Rules. The Participant will sign an Agreement offered by the Company to such   effect.
    
	
 
    	
 
    
	
2.3
    	
A Participant who becomes an employee   of the company during the Plan Year, and who has signed an Agreement during   the first six months of the Plan Year, may be granted a conditional   entitlement to Variable Compensation which shall be on a pro rata basis to   reflect the period of active service. Any deviations from this pro-rata   principle and any Grants made upon employment at a later stage during the   Plan Year will require prior approval of the Company.
    
	
 
    	
 
    
	
2.4
    	
In accordance with clause 4.3 of these   Plan Rules, part of the Variable Compensation may be paid in Shares. The   number of Shares to which a Participant will be conditionally entitled shall   be calculated during the first quarter of the Plan Year by dividing the   relevant percentage of the Variable Compensation by the Grant Price and the   outcome shall be rounded down to the nearest share.
    
	
 
    	
 
    
	
2.5
    	
The Variable Compensation is   conditionally granted and the conditional right to Variable Compensation is   subject to the conditions precedent (i) that, unless stated otherwise or   approved by the Company, the Participant will remain employed within the   AEGON Group uninterruptedly until the Vesting Date of each part of the   Variable Compensation, (ii) that the minimum levels of the Performance   Indicators are achieved, as further set out in clause 4.1 of these Plan   Rules and (iii) an Ex-ante and an Ex-post Malus assessment as set   out in clauses 4.5 and 4.6 of these Plan Rules.
    
	
 
    	
 
    
	
2.6
    	
The employment of the Participant is   considered continued uninterruptedly in the case where the Participant’s   employment is terminated due to long-term ill health, disability, (early)   retirement, death or reduction of work force or redundancy of the job or   position of the Participant without cause by the Participant, during the   period
    

 

 

	
 
    	
until a Vesting Date and,   consequently, such Participant is considered to be a “Good Leaver”. In addition,   the Company may, at its full discretion, declare a Participant to be a Good   Leaver. Long term ill health, disability and (early) retirement shall have   the meaning as defined under the applicable rules and regulations within   AEGON, or in the absence thereof, as determined under the applicable local   laws and regulations. In case of any unclarity on whether the Participant   qualifies as a Good Leaver, the Company in its sole discretion will decide.
    
	
 
    	
 
    
	
2.7
    	
In the event of termination of   employment of a Good Leaver during the Plan Year, in principle, the Variable   Compensation that shall be paid-out (including the number of conditionally   granted Shares that shall Vest) shall be pro-rated to reflect the period of   active service from the Grant Date until the termination of employment,   subject to the final approval of the Company. The Variable Compensation that   shall be paid out (including the number of conditionally granted Shares that   shall Vest) shall be determined and paid out in accordance with clause 4 of these   Plan Rules after the adoption of the Annual Report at the Annual General   Meeting of Shareholders.
    
	
 
    	
 
    
	
2.8
    	
The Grant Date will be 1   January 2011, irrespectively whether the amount and/or value of the   conditional Variable Compensation and/or the Performance Indicators will be   set later.
    
	
 
    	
 
    
	
3
    	
Performance Indicators
    
	
 
    	
 
    
	
3.1
    	
The Performance Indicators applicable   to the Plan Year have been or shall be established by the Company in   accordance with the guidelines of the Remuneration Framework and shall be based   on financial and non-financial targets. In the process of setting and   evaluating Performance Indicators and targets used for the determination of   Variable Compensation, relevant experts from control functions shall be   consulted or involved.
    
	
 
    	
 
    
	
3.2
    	
The Performance Indicators may consist   of Group Indicators, Reporting Unit Indicators and Strategic / Functional /   Personal Indicators which represent both financial and non-financial   Indicators. Strategic / Functional / Personal Indicators shall be selected for   a Participant individually and shall be provided to the Participant in   writing.
    
	
 
    	
 
    
	
3.3
    	
One-year minimum, target and maximum   levels relating to the Performance Year will be set for each Performance   Indicator.
    
	
 
    	
 
    
	
4
    	
Allocation, Vesting,   Pay-out and Release of Variable Compensation
    
	
 
    	
 
    
	
4.1
    	
After the Performance Year, the   Company shall assess the realized performance of each Performance Indicator   and a comparison will be made between the minimum, target and maximum levels   of the Performance Indicators and the realized performance. Subsequently, the   amount of Variable Compensation (including the number of Shares) that will be   Allocated will be established.
    
	
 
    	
 
    
	
4.2
    	
The following applies to Allocated   Variable Compensation (if any), and subject to the Ex-ante risk-based   assessment and the Ex-post Malus assessment referred to in clauses 4.5 and   4.6:
    
	
 
    	
 
    
	
 
    	
4.2.1
    	
all Allocated Variable Compensation   and subsequent Vesting according to the applicable Vesting Schedule, will be   made in cash and/or in Shares;
    
	
 
    	
 
    	
 
    
	
 
    	
4.2.2
    	
part of the Allocated Variable   Compensation in cash, if any (the Upfront Part in   Cash) shall Vest and shall be paid out as soon as possible after   the adoption of the Company’s Annual Report relating to the first Plan Year   at the Annual General Meeting of Shareholders;
    
	
 
    	
 
    	
 
    
	
 
    	
4.2.3
    	
part of the Allocated Variable   Compensation in Shares, if any (the Upfront Part in   Shares) shall Vest and shall be Released either as soon as   possible after the adoption of the Company’s Annual Report relating to the   first Plan Year at the Annual General Meeting of shareholders or after a   further Holding Period as set out in clause 5.4;
    
	
 
    	
 
    	
 
    
	
 
    	
4.2.4
    	
the remaining part of the Allocated   Variable Compensation, if any (the Deferred Part)   shall be deferred and shall Vest in the subsequent financial years according   to the applicable Vesting Schedule, and the cash
    

 

 

	
 
    	
 
    	
part shall be paid out as soon as   possible after the adoption of the Company’s Annual Report relating to these   subsequent financial year(s) at the respective Annual General Meetings   of Shareholders and the Share part shall be Released either as soon as   possible after the adoption of the Company’s Annual Report relating to the   relevant financial year at the Annual General Meeting of Shareholders or   after a further Holding Period as set out in clause 5.4.
    
	
 
    	
 
    
	
4.3
    	
Any details as referred to in clause   4.2 regarding (i) the amount of Allocated Variable Compensation,   including the allotment in cash and / or Shares, (ii) the Pay-out of the   Upfront Part in Cash, (iii) the Vesting Schedule relating to the   Deferred Part and related Pay-out and Release of such Deferred Variable   Compensation and (iv) any Holding Period (if applicable), will be   notified to the Participant in writing.
    
	
 
    	
 
    
	
4.4
    	
Except in the event a Participant is a   Good Leaver, the Variable Compensation that is conditionally granted will   become null and void on the date that the employment of the Participant is   terminated prior to a Vesting Date of the Upfront Part or a Deferred   Part.
    
	
 
    	
 
    
	
4.5
    	
The Allocation of any part of the   Variable Compensation is subject to an Ex-ante risk-based assessment by the   Company in order to determine whether conditionally granted Variable   Compensation should be Allocated in full or should be Allocated applying a   downwards adjustment. This Ex-ante risk-based assessment will be applied in   order to:
    
	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
ensure that the projected Variable   Compensation is aligned with the risk profile of the AEGON Group and   Reporting Unit/Subsidiary;
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
provide a perspective on the long-term   financial and risk effects of the equity element of Variable Compensation;
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
take into account quantitative and   qualitative AEGON Group, Reporting Unit/Subsidiary and individual factors   mitigating performance results.
    
	
 
    	
 
    	
 
    
	
4.6
    	
The Vesting of any Deferred Part of   the Variable Compensation is subject to an Ex-post Malus assessment by the   Company in order to determine whether conditionally granted Variable   Compensation should Vest in full or should be adjusted. This Ex-post Malus   assessment shall be based on informed judgment by the Company, taking into   account significant and exceptional circumstances as well as risk outcomes   that were not (sufficiently) reflected in the initially applied Performance   Indicators and initial assessment of the Company’s / Reporting Unit’s and   individual performance at the time of Allocation. Implementation of this   authority will be on the basis of criteria such as, but not limited to:
    
	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
outcome of a re-assessment of the   performance against the original financial Performance Indicators;
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
significant downturn in the Company’s   or Reporting Unit’s financial performance;
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
evidence of misbehavior or serious   error by the Participant;
    
	
 
    	
 
    	
 
    
	
 
    	
(iv)
    	
significant failure in risk   management;
    
	
 
    	
 
    	
 
    
	
 
    	
(v)
    	
significant changes in the Company’s   economic or regulatory capital base.
    
	
 
    	
 
    	
 
    
	
4.7
    	
Depending on the outcome of the   Ex-post Malus assessment, the Company shall decide to (i) establish that   the relevant Deferred Part of the Variable Compensation shall become   unconditional and shall Vest or (ii) adjust the relevant Deferred   Part of the Variable Compensation and decided that the Deferred   Part shall only partially Vest (including the possible outcome that no   Deferred Part of the Variable Compensation shall become unconditional and   Vest).
    

 

 

	
4.8
    	
The Company shall review these Ex-ante   risk-based and Ex-post Malus assessment criteria in detail at each Allocation   and Vesting Date and document its findings. Relevant experts from control   functions shall be consulted or involved in this review process if required   or desirable.
    
	
 
    	
 
    
	
4.9
    	
Any adjustment resulting from the   Ex-post Malus risk-based assessment shall only be applied on the Deferred   Part of the Variable Compensation, not on the Fixed Salary or the   Upfront Part of the Variable Compensation. The adjustment may only be   made downwards.
    
	
 
    	
 
    
	
4.10
    	
The Company shall be authorized, in   accordance with applicable laws and regulations, to reclaim (‘Claw Back’) any   Variable Compensation (whether Vested, Paid-out or Released) to the   Participant in case of:
    
	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
Incorrect data (including   non-achievement of Performance Indicators on hindsight);
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
material financial restatements2; or
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
individual gross misconduct of the   Participant.
    
	
 
    	
 
    	
 
    
	
4.11
    	
In the event of a Claw Back the   Company will determine the gross amount in cash that is subject to Claw Back.   All or part of the Paid out or Released Variable Compensation that is subject   to Claw Back will need to be repaid by the Participant at first demand by the   Company as a gross amount in cash, and the entitlement on all or part of the   Variable Compensation that is Vested and not yet Paid-out or Released that is   subject to Claw Back will lapse, whereby any Shares will be taken into   account for the Grant Price. The Company will be entitled to set-off or   settle any gross amount owed by the Participant to the Company (i) by   any current or future obligations if possible (including but not limited to   any salary payments or pension payments) that the Company has against the   Participant and/or (ii) against any Allocated and/or Vested but not yet   Paid-out or Released Variable Compensation, whereby any Shares will be taken   into account for the Grant Price. If and to the extent the Company does not   exercise the set-off or settlement right, the Participant will repay the   gross amounts due in cash as soon as possible upon instructions of the   Company.
    
	
 
    	
 
    
	
4.12
    	
The Company shall inform the   Participant as soon as possible of the outcome of the Ex-ante, Ex-post Malus   and Claw Back assessment and its decision. The Participant shall have no   claim for damages or compensation against the Company or a Subsidiary for any   consequences (whether financial, tax, governmental, personal or other   consequences) following the Ex-ante, Ex-post Malus or Claw Back assessments   resulting in the Variable Compensation being adjusted downwards.
    
	
 
    	
 
    
	
4.13
    	
The Company may, in its sole   discretion, direct the Executive Board or the management board of a   Subsidiary to determine whether any further action may be necessary with   respect to the Ex-post Malus and Claw Back assessment for any local   circumstances.
    
	
 
    	
 
    
	
4.14
    	
No dividend or interest will accrue on   any part of the Variable Compensation before Vesting in accordance with these   Plan Rules.
    
	
 
    	
 
    
	
4.15
    	
Vested Shares, whether or not subject   to a Holding Period as set out in clause 5.4, will accrue dividends as from   the Vesting Date, which dividend will be equal to the amount of dividends   declared on the Company’s Shares. Accrued dividends will be paid out in cash   and / or Shares at the Release Date.
    
	
 
    	
 
    
	
4.16
    	
In connection with any actual or   potential Sale or Change of Control or a transaction concerning the sale of a   Subsidiary or business unit within AEGON Group, the Company will take all   such actions hereunder as it may determine to be necessary or appropriate to   treat Participants equal and equitably hereunder, at the discretion of the   Supervisory Board, including without limitation the modification or waiver of   applicable Performance Indicators, and whether to establish or fund another   arrangement intended for variable incentives. The Company may, in its sole   discretion, direct the Executive Board or the management board of a   Subsidiary to determine whether any further action may be necessary in the   event of a Sale or Change of Control of a Subsidiary or business unit.
    

 

	
2
    	
Not resulting from mandatory   restatements resulting from changes in IFRS and other applicable financial   reporting regulations.
    

 

 

	
5
    	
Terms and Conditions   regarding the Shares
    
	
 
    	
 
    
	
5.1
    	
Transfer of ownership of the Shares to   the Participant shall take place on the relevant Vesting Date. Upon Vesting,   the Shares and any transactions regarding the Shares will be at the risk and   for the account of the Participant.
    
	
 
    	
 
    
	
5.2
    	
At each of the Vesting Dates, the   Shares, less any Shares which shall be sold and settled to pay for any   applicable taxes, social security premiums and possible other deductions by   the government due in connection with the Vesting of the Shares (unless the   Participant indicates that he/she prefers that such Shares shall not be sold   and settled, as set out in clause 5.3 of these Plan Rules), shall be   transferred into a current account of the Participant held at the System.
    
	
 
    	
 
    
	
5.3
    	
If a Participant prefers not to sell   any Shares in connection with any applicable taxes, social security premiums   and possible other deductions by the government due in connection with the   Vesting, such Participant should notify the Compliance Officer of such   preference in writing during any period which is not a black-out period as   referred to in clause 7.2 of these Plan Rules. The Participant acknowledges   that he/she should have sufficient funds available at the Vesting Date to pay   any taxes due.
    
	
 
    	
 
    
	
5.4
    	
Notwithstanding Vesting, the Company   may impose a restriction on the Participant to hold the Shares for a certain   Holding Period following the relevant Vesting Date and the Participant will,   if such restriction is imposed, not be entitled to execute any transactions   regarding the Shares during this Holding Period, except as provided in clause   7.3 of these Plan Rules. After this Holding Period, the Shares shall be   Released and the Participant will be entitled to exercise its rights relating   to the Shares as provided for in these Plan Rules. For the avoidance of any   doubt, this provision will not be affected if the employment of a Participant   is terminated during this Holding Period for whatever reason. The applicable   Holding Period, as referred to in this section will be notified to the   Participant in writing. No holding period will be imposed on any cash   component of the Variable Compensation.
    
	
 
    	
 
    
	
5.5
    	
Release of any Shares will take place   at the Release Date, which may take place following the Vesting Date, or, in   case a Holding Period applies as set out in clause 5.4, following the end   date of the relevant Holding Period.
    
	
 
    	
 
    
	
6
    	
Transactions regarding   the Shares
    
	
 
    	
 
    
	
6.1
    	
The Participant can only perform any   Transactions regarding Shares, once they have been Vested and Released, in   accordance with clause 5.
    
	
 
    	
 
    
	
6.2
    	
Transactions regarding the Shares can   be executed only by submitting an order in the System. Transactions regarding   the Shares can be executed on Business Days only. If it is not possible to   exercise on the indicated day (for any reason), the exercise will take place   on the first Business Day on which exercising the order will be possible,   such at the risk of the Participant.
    
	
 
    	
 
    
	
6.3
    	
When the Participant has filed an   order to sell all or part of the Shares, the Company will use its best   efforts to sell the number of Shares indicated by the Participant at the NYSE   Euronext stock exchange in Amsterdam, The Netherlands as soon as possible   after the request as referred to in clause 6.1 of these Plan Rules has   been processed in the System.
    
	
 
    	
 
    
	
6.4
    	
The Company shall pay the value of the   Shares as calculated on the basis of the Share price at the NYSE Euronext   stock exchange in accordance with clause 6.3 of these Plan Rules as soon   as possible after the order has been processed and the Shares have been sold.   The Company shall be entitled to withhold any (trade) costs, taxes (or other   amounts to be deducted) due on the value of the Share after exercise and the   remaining amount shall be remitted to the Participant in accordance with   appropriate payroll practices. The Participant hereby accepts the tax   consequences of any transactions regarding the Shares. In case of late   payment the Company will have no obligation to compensate interest to the   Participant.
    
	
 
    	
 
    
	
6.5
    	
Upon the termination of employment of   a Participant, the Shares that have Vested pursuant to clause 4 shall, at the   option of the Participant (or the legal personal representative of the   deceased Participant), (i) remain registered in
    

 

 

	
 
    	
the System, (ii) be transferred   into another current account as designated by the Participant to the Company   or (iii) be sold and be paid to the Participant in accordance with   clauses 6.3 and 6.4 of these Plan Rules. Such transfer or sale and the   corresponding payment shall be executed at the lapse of the Holding Period   (if applicable) set out in clause 5.4 of these Plan Rules or as soon as   possible thereafter.
    
	
 
    	
 
    
	
6.6
    	
The Company does not accept any   liability with regard to the processing of any orders for any transactions   regarding the Shares by the Participant in any way.
    
	
 
    	
 
    
	
6.7
    	
The Company is entitled to amend the   procedure for transactions regarding the Shares from time to time at its   absolute discretion. The Company will inform the Participant of any relevant   change in the procedure.
    
	
 
    	
 
    
	
6.8
    	
The costs of any transactions   regarding the Shares will be for the account of the Participant.
    
	
 
    	
 
    
	
7
    	
Regulatory restrictions   and inside information
    
	
 
    	
 
    
	
7.1
    	
The Shares are stocks traded at the   NYSE Euronext stock exchanges in Amsterdam and New York and, consequently,   are governed by laws and regulations with regard to inside information. No   transactions (including but not limited to a sale of the Shares) regarding   the Shares may be effected when the Participant has inside information.   Inside information is defined as “knowledge of information which is specific,   which directly or indirectly concerns the Company or the trade in AEGON   securities, which has not been made public and which, if made public, could   have a significant influence on the price of the AEGON securities”.
    
	
 
    	
 
    
	
7.2
    	
In any event, no transaction regarding   the Shares may be effected during the following black-out periods:
    
	
 
    	
 
    	
 
    
	
 
    	
(i)
    	
a period immediately preceding the   publication of the Company’s annual report;
    
	
 
    	
 
    	
 
    
	
 
    	
(ii)
    	
a period immediately preceding the   publication of the Company’s six-month results and the quarterly results or   the announcement of any dividend or interim dividend; and
    
	
 
    	
 
    	
 
    
	
 
    	
(iii)
    	
any additional black-out periods   mandatory for designated employees as announced by the Company’s Compliance   Officer from time to time.
    
	
 
    	
 
    	
 
    
	
 
    	
The periods referred to under (i) and   (ii) will be announced annually by the Compliance Officer.
    
	
 
    	
 
    	
 
    
	
7.3
    	
The ban in clauses 5.4, 7.1 and 7.2 of   these Plan Rules are not applicable in the event of a transaction   regarding a Share that takes place at the Vesting Date to cover for any   taxes, social insurance premiums and possible other deductions by the   government due by the Participant in connection with the Vesting and/or,   Release of the Shares into its account, in accordance with clauses 5.2 and   5.3 of these Plan Rules.
    
	
 
    	
 
    
	
7.4
    	
The Participant must at all times   comply with the applicable laws and regulations and the Company’s insider   trading rules (the “AEGON N.V. Employee Insider Trading Rules” or the   “AEGON N.V. Insider Trading Rules”, whichever applies to a Participant) as   amended from time to time. These regulations include the requirement for the   Participant to notify any transactions within five days following such   transaction (i) to the Company’s Compliance Officer and (ii) if the   Participant qualifies as ‘designated insider’ according to the AEGON N.V.   Insider Trading Rules, to the Dutch Authority for the Financial Markets   (“AFM”). Vesting is considered a transaction which require notification to   the Company’s Compliance Officer and the AFM in accordance with the above insider   dealing rules. In the event of any questions or doubts, the Participant   should contact the Company’s Compliance Officer.
    
	
 
    	
 
    
	
8
    	
Additional conditions
    
	
 
    	
 
    
	
8.1
    	
The costs, legal mandatory tax   deductions, employee social insurance premiums and possible other deductions   by the government relating to the Variable Compensation (whether on the   employee or on the employer) shall be for the account of the Participant and   shall be deducted from the salary payment to the Participant or the pension
    

 

 

	
 
    	
payment to the Participant if   possible. All expenses and costs in connection with the operation of these   Plan Rules shall be borne by the Company. 
    
	
 
    	
 
    
	
8.2
    	
The Shares that have been granted as   part of the Variable Compensation are strictly personal and the right to receive   such Shares cannot be assigned or transferred in any way or in any other   manner of passing of title. The Shares that have been conditionally granted   but not been delivered and transferred cannot be pledged or encumbered in any   other way. The Shares that may have been assigned, transferred, pledged or   encumbered in any manner in contravention of this clause become null and void   and will not be delivered or transferred to the Participant.
    
	
 
    	
 
    
	
8.3
    	
The Participant hereby acknowledges   and agrees that AEGON may disclose certain details to any governmental or   regulatory authority (including tax authorities) regarding the Shares that a   Participant (conditionally) holds, including but not limited to the number,   the value and any dividend regarding the Shares.
    
	
 
    	
 
    
	
8.4
    	
It is not allowed to hedge the Shares,   for example by the selling or purchasing of options on Shares, whether or not   marketable.
    
	
 
    	
 
    
	
8.5
    	
In the event of any changes in the   capital structure of the Company between the start of the Plan Year (conditional   grant of Variable Compensation) and the Vesting of Shares which results in an   increase of the total share capital or a material change in the structure of   the share capital or share premium of the Company and a change in the   economic equivalence of the Shares, the Company may at its absolute   discretion adjust the number of conditionally granted Shares in accordance   with customary anti-dilution market practice provisions. Any such adjustment   should not lead to the total Variable Compensation exceeding the maximum   percentage of the Fixed Salary.
    
	
 
    	
 
    
	
8.6
    	
Granting the Variable Compensation   (including Shares) to the Participant according to these Plan Rules is   restricted to the Plan Year. Granting of Variable Compensation (including   Shares) during any other financial year is the absolute discretion of the   Company. The Company has no obligation to grant Variable Compensation   (including Shares) in the future.
    
	
 
    	
 
    
	
8.7
    	
The Company may at any time   unilaterally amend any term or condition of these Plan Rules. In particular,   the Company is free to amend any term or condition in the case of new   (fiscal, employment or other) legislation and/or amended regulations and/or   directions, requests or instructions by or on behalf of any financial   supervising authorities and/or other guidelines as applicable from time to   time within the financial sector.
    
	
 
    	
 
    
	
8.8
    	
The Shares do not form part of the   employment agreement of any Participant, nor grant any Participant any   employment rights or guarantee employment as an employee of the Company and   no (future) rights or benefits can be obtained or implied other than as   specifically set out in these Plan Rules.
    
	
 
    	
 
    
	
8.9
    	
No damages or compensation shall be   payable in consequence of the termination of employment (whether or not in   circumstances giving rise to a claim for wrongful or unfair dismissal or   local equivalent thereof) or for any other reason whatsoever to compensate   him for the loss of any rights the Participant would otherwise have had   (actual or contingent) under these Plan Rules and the Participant shall   be deemed irrevocably to have waived any such rights to which it may   otherwise have been entitled.
    
	
 
    	
 
    
	
8.10
    	
No individual shall have any claim   against the Company arising out of his not being admitted to participation in   these Plan Rules which (for the avoidance of doubt) is entirely at the   full discretion of the Company.
    
	
 
    	
 
    
	
8.11
    	
No Participant shall be entitled to   claim compensation from the Company in respect of any sums paid by him   pursuant to these Plan rules or for any diminution or extinction of its   rights or benefits (actual or otherwise) under any Variable Compensation held   by him/her following the lapse for any reason of any Variable Compensation   held by him or otherwise in connection with these Plan Rules and the Company   shall be entirely free to conduct its affairs as it sees fit without regard   to any consequences under, upon or in relation to these Plan Rules or   any Variable Compensation.
    

 

 

	
8.12
    	
By accepting any Variable   Compensation, the Participant hereby explicitly and unambiguously consents to   the collection, storage, use, processing and transfer, in electronic or other   form, of his/her personal data (as described below) by and among, as   applicable, the Company and / or by the System for the exclusive purpose of implementing,   administering and managing his/her Variable Compensation, and the transfer of   such data by them to government and other regulatory authorities for the   purpose of complying with their legal obligations in connection with any   Grants of Variable Compensation.
    
	
 
    	
 
    
	
8.13
    	
This data may include the   Participant’s name, home address and telephone number, email address, date of   birth, social security number or other identification number, salary,   nationality, job title, details of all rights and any other entitlement to   shares awarded, cancelled, purchased, vested, unvested or outstanding (Data).   The Company is the data controller for this Data.
    
	
 
    	
 
    
	
8.14
    	
The Participant further agrees that   Data may be transferred to any third parties assisting in the implementation,   administration and management in connection with these Plan Rules, that these   recipients may be located in his/her country, or elsewhere including outside   the European Economic Area, and that such location may have less adequate   data privacy laws and protections than the Participant’s own country.
    
	
 
    	
 
    
	
8.15
    	
Data will be held only as long as   necessary to implement, administer and manage these Plan rules. The   Participant may, at any time, view the Data, request additional information   about the storage and processing of the Data, require any necessary   amendments to the Data or refuse or withdraw the consents herein, in any case   without cost.
    
	
 
    	
 
    
	
8.16
    	
Refusing or withdrawing his/her   consent as referred to in this clause 8, although it will not have any negative   effect on his/her employment, may affect any potential Grant, Allocation,   Vesting, Pay-out or Release of any Variable Compensation to the Participant.
    
	
 
    	
 
    
	
8.17
    	
If any provision in these Plan   Rules are held to be invalid or unenforceable, no other provision of   these Plan Rules will be affected thereby.
    
	
 
    	
 
    
	
8.18
    	
These Plan Rules are governed by   Dutch Civil Law.
    
	
 
    	
 
    
	
8.19
    	
These Plan Rules shall apply for   the Plan Year 2011 and will remain in force until the earlier of (i) any   amendments are made to these Plan Rules and (ii) these Plan   Rules are terminated by the Company, provided that no Grants will be   made under these Plan Rules after 31 December 2011.
    
	
 
    	
 
    
	
8.20
    	
These Plan Rules will not be   considered an amendment or adjustment of any short-term or long-term variable   compensation plans existing prior to 1 January, 2011, and no further grants   under any such plans will be made after 2011, and, if made, will be   considered null and void.
    

 

 

APPENDIX 1 -LOCAL DETAILS THE AMERICAS

 

	
No
    	
Clause

Reference
    	
Subject
    	
Local
    
	
1
    	
2.2 & 2.3
    	
Agreement
    	
Participants in The Americas do not execute an offer of Acceptance
    
	
 
    	
2.6
    	
Exceptions to requirement that a Participant’s employment must   continue uninterruptedly until the Vesting Date
    	
In the Americas, long term ill-health and disability means disability   as disability is defined in the AEGON USA, LLC Long Term Disability Plan;   (early) retirement is defined as eligible to retire in the AEGON Companies   Defined Benefit Plan; reduction of work force and redundancy of the job or position   is defined as “Layoffs, Reorganizations, Sales of Assets and Closedown of   Business Unit” in the AEGON Companies Separation Pay Plan.

 
    
	
2
    	
3.3
    	
Spread minimum /at target /maximum
    	
Minimum: 50%

At target: 100%

Maximum: 185%

 
    
	
3
    	
4.2.2
    	
Payout of Upfront Cash
    	
Pay date will be last pay date in March

 
    
	
4
    	
4.2.3
    	
Payout of Upfront Shares
    	
Not applicable in the Americas (100% upfront payable in cash, 100% of   deferred payable in shares so not upfront is payable in shares in the   Americas)

 
    
	
4
    	
4.2.4
    	
Deferral/Vesting Period
    	
3 years (1 year accrual period plus 3 additional vesting years   equaling 4 year vesting period in total following the date of the initial   grant). The Vesting Date is the 2015 AGM. Shares earned will be distributed   following the 2015 AGM, not subject to further holding period

 
    
	
5
    	
5.4 & 5.5
    	
Holding Period
    	
Holding period not applicable in the AmericasEXHIBIT 4.06

 

AEGON N.V.

 

2011 AEGON Group Long-Term Variable Compensation Plan for Other Staff

 

Additional Plan Information

 

Any capitalized terms not defined herein shall have the meaning ascribed to them in the 2011 AEGON Group Long-Term Variable Compensation Plan Rules for Other Staff (the LTVC Plan Rules).

 

Eligible Participants

 

Eligible participants are select senior management employees who are approved to participate in the plan as for the purpose of strengthening their commitment to the Company’s business strategy, risk tolerance and long term performance.

 

Jurisdictional Application

 

Participants are advised that the 2011 AEGON Group Long-Term Variable Compensation Plan for Other Staff (the LTVC Plan) is subject to the Local Details Appendix provided at the end of the LTVC Plan Rules.

 

Securities to be Offered

 

Pursuant to the LTVC Plan, the Company will offer 2,475,193 shares of Common Stock (€ 0.12 par value per share).

 

ERISA Statement

 

The LTVC Plan is not subject to any provisions of the Employee Retirement Income Security Act (ERISA).

 

Tax Effects

 

Tax Treatment to the Individual Who Acquires Stock: The LTVC Plan is not qualified under Section 401(a) of the Internal Revenue Code. The recipient of the Common Stock (the Recipient), therefore, will be deemed for federal income tax purposes to recognize ordinary income during the taxable year in which the first of the following events occurs: (a) the shares become freely transferable, or (b) the shares cease to be subject to a substantial risk of forfeiture.  Accordingly, the Recipient will receive compensation taxable at ordinary rates equal to the fair market value of the shares on the date of vesting (i.e. actual receipt of the Shares) since there will be no substantial risk of forfeiture or other restrictions on transfer.  The Recipient is urged to consult his tax advisor on this matter.

 

Tax Treatment to the Company: The amount of income recognized by any Recipient hereunder in accordance with the foregoing discussion will be an expense deductible by the Company for federal income tax purposes in the taxable year of the Company during which the Recipient recognizes income.

 

Plan Administrator; Requesting Additional Information

 

The Company is the administrator of the LTVC Plan.  There are no assets held for investment under the LTVC Plan and therefore there will be no periodic reports relating to the LTVC Plan.

 

Participants may request additional information about the plan and its administrators, as well as the Form S-8 registration statement and any documents incorporated by reference therein, by contacting the following individual:

 

David J. Beatty

Director – Compensation & Benefits

4333 Edgewood Rd NE

Cedar Rapids, IA  52499

(319) 355-8737 (phone)

(877) 355-2372 (fax)

David.Beatty@Transamerica.com

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