Document:

Exhibit 10.1 EARN-IN AGREEMENT

Exhibit 10.1

EARN-IN AGREEMENT

This Earn-In Agreement (the “Agreement”) made and entered into this 25th day of January, 2012 (“Effective Date”), by and between Discovery Gold Ghana Limited, a company organized under the laws of Ghana (“DGG”) located at Hse. No. D3/22, Ashonman Estates, Accra, Ghana and North Springs Resources Corp., a Nevada corporation (“NSRS”) located at 200 S. Virginia, 8th Floor, Reno, Nevada, 89501.

BACKGROUND

WHEREAS, Adom Mining Company Limited, a company organized and existing under the laws of Ghana (“Adom”) is vested with and holds a 100% right, title and interest (the “Interest”) in and to a certain mineral concession situated in the Edum Banso area of the Western Region of Ghana described in Schedule A attached hereto (the “Property”) pursuant to a prospecting license for gold dated May 8, 1991, attached hereto as Schedule B, (the “License”) issued by the Government of Ghana. The Interest held by Adom in the Property is subject to various interests and rights held by the Government of Ghana pursuant to the Minerals and Mining Act of 2006 of Ghana; 

WHEREAS, on October 17, 2005, Adom and Xtra-Gold Resources Corp., a corporation organized and existing under the laws of Canada (“Xtra-Gold”) entered into an option agreement (the “Option Agreement”) whereby Adom granted an exclusive option to Xtra-Gold to acquire 100% of Adom’s Interest in the Property (the “Option”);

WHEREAS, on August 27, 2011, Xtra-Gold and DGG entered into an Agreement for Assignment of Option Interest (the “Assignment Agreement”), whereby Xtra-Gold agreed, among other things, to sell, assign and transfer all its right, title and interest in the Option to DGG in exchange for an aggregate payment of two hundred fifty thousand dollars ($250,000); 

WHEREAS, as of the date of this Agreement, DGG has paid a total of one hundred twenty five thousand dollars ($125,000) to Xtra-Gold, and upon paying the balance of one hundred thirty five thousand dollars ($135,000), DGG shall receive Xtra-Gold’s interest in the Option and be subject to that certain Option Agreement;

WHEREAS, DGG desires to grant to NSRS and NSRS desires to acquire a working interest (the “Working Interest”) in DGG’s rights and interest in and to the Property (“DGG’s Interest”), pursuant to the terms and conditions of this Agreement, the Option Agreement, and the License; 

WHEREAS, DGG is, and shall hereafter be the sole operator of the Property and shall continue to conduct mineral exploration and extraction activities on the Property, subject to the terms and conditions set forth in this Agreement, the Option Agreement, and the License; 

WHEREAS, upon paying the full Initial Payment (as hereinafter defined), NSRS shall acquire a ten percent (10%) Working Interest in DGG’s Interest, as further set forth below; 

WHEREAS, it is further understood and agreed that one hundred thirty five thousand dollars ($135,000) of the Initial Payment shall be used by DGG to perfect DGG’s Interest in the Option;

WHEREAS, upon issuance of shares of its common stock, NSRS shall acquire an additional twenty five percent (25%) Working Interest in DGG’s Interest, as further set forth below;

WHEREAS, these recitals are true and correct and are incorporated into this Agreement by this reference; and, 

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, DGG and NSRS agree as follows:

AGREEMENT

1.

Working Interest.

1.1 

NSRS shall provide funding to DGG to assist DGG in fully exercising the Option and to finance the exploration activities on the Property, which shall amount to a total of one million two hundred fifty thousand dollars ($1,250,000) (the “Total Work Commitment”). NSRS shall supply the Total Work Commitment according to the following Work Commitment payment schedule (each a “Commitment Payment”): 

(i)

an initial payment of two hundred fifty thousand dollars ($250,000) (the “Initial Payment”), of which one hundred fifty thousand dollars ($150,000) is due within five (5) days of the execution of this Agreement and the remaining one hundred thousand dollars ($100,000) is due within thirty (30) days of the execution of this Agreement;

(ii)

five hundred thousand dollars ($500,000) on or before July 31, 2012 (the “Second Commitment Payment”); and

(iii)

five hundred thousand dollars ($500,000) on or before December 31, 2012 (the “Third Commitment Payment”).

One hundred thirty five thousand dollars ($135,000) of the Initial Payment shall be used to perfect DGG’s Interest in the Option. The remainder of the Initial Payment shall be used at the sole discretion of DGG to fund exploration and extraction activities on the Property. Upon making the full Initial Payment to DGG, NSRS shall acquire a ten percent (10%) Working Interest in DGG’s Interest. 

In the event that NSRS fails to provide the Second Commitment Payment to DGG on or before July 31, 2012, fifty percent (50%) of NSRS’ Working Interest shall automatically revert back to DGG and NSRS shall be deemed to have forfeited its right to provide the Third Commitment Payment. DGG shall then have the option to buy back an additional twenty five percent (25%) of NSRS’ Working Interest in exchange for one hundred fifty thousand dollars ($150,000). 

2.

Additional Working Interest.

2.1

NSRS shall acquire an additional twenty five percent (25%) Working Interest in DGG’s Interest (the “Additional Interest”) in exchange for ten million (10,000,000) shares of common stock of NSRS (the “NSRS Shares”). The Additional Interest is in addition to the ten percent (10%) Working Interest described above in Section 1.1. The “Working Interest” and “Additional Interest” are collectively hereinafter referred to as the “Working Interest”, unless otherwise specified.

In the event that the value of the NSRS Shares is less than two million five hundred dollars ($2,500,000) on October 1, 2012, DGG shall have the option to either: (a) take back the Additional Interest from NSRS and return the NSRS Shares to NSRS; or (b) keep the NSRS Shares and allow NSRS to keep the Additional Interest. If DGG elects option (a), DGG shall notify NSRS of its decision in writing, pursuant to Section 15.1 hereto, within five (5) business days from October 1, 2012.

3.

Obligations and Liabilities. Each party shall have the right to take and separately dispose of its portion of the Working Interest’s share of mineral extraction in kind at the concession site (prior to treatment or removal of extracted minerals or other materials) from the Property being developed hereby. The respective obligations and liabilities of the parties shall be several, not joint or collective, and each party shall be responsible only for its own obligations. DGG shall, within ninety (90) days after the end of each calendar year, cause to be delivered to NSRS any and all necessary documentation for NSRS to be able to file its tax return showing its profits/losses from the operations of the Property. 

4.

Costs Incurred. Subsequent to December 31, 2012, any and all costs incurred in association with or pertaining to the Property shall be borne by each party in proportion to each party’s percentage Working Interest in the Property.

5.

Representations and Warranties.

5.1

DGG represents and warrants to NSRS that:

5.1.1

DGG is duly organized, validly existing, in good standing and qualified to do business under the laws of Ghana. DGG has the requisite power and capacity to carry on business as presently conducted, to enter into this Agreement, and to perform all of its obligations hereunder. 

5.1.2

The entering into of this Agreement and the performance by DGG of its obligations hereunder will not violate or conflict with any applicable law or any order, decree or notice of any court or other governmental agency, nor conflict with, or result in a breach of, or accelerate the performance required by any contract or other commitment to which DGG is a party or by which it is bound. 

5.1.3

To the best of DGG’s knowledge, the Property is accurately described in Schedule A attached hereto, is free and clear of all liens, claims, and encumbrances and is in good standing with all applicable federal and local government entities. 

5.1.4

To the best of DGG’s knowledge, there are no outstanding agreements, leases or options (whether oral or written) which contemplate the acquisition of the Property or any interest therein by any other person or entity. 

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5.1.5

DGG is entitled to acquire the Option, per the terms and conditions of the Assignment Agreement. Subject to the Initial Payment by NSRS to DGG, DGG shall perfect DGG’s Interest in the Option.

5.1.6.

DGG shall be responsible for compliance with applicable laws and regulations, including laws and regulations related to exploration, development, mining and reclamation, in the conduct of its exploration, development and other activities on the Property.

5.1.7

DGG shall be responsible for timely payment of required maintenance fees, property taxes, and any other payments required to maintain the Property in good standing with all federal and local government entities. DGG shall also be responsible for timely filing and recording of all documents required to evidence the payment of required maintenance fees, taxes and other payments. 

5.1.8

To the best of its knowledge, information and belief, there are no adverse environmental conditions at the Property that could result in a violation of or liability under any federal or local laws, rules or regulations concerning protection of the environment or human health and safety (“Environmental Laws”). DGG has not received notification from any person, including without limitation, any governmental authority, of any potential breach or alleged breach of any applicable Environmental Laws relating to the Property or of any inspection or possible inspection or investigation by any governmental authority under any applicable Environmental Laws relating to the Property. DGG has not received any notification of and has no knowledge of the presence of any contaminants (including hazardous substances or materials, dangerous goods, chemicals or toxic wastes) in the soil or water in, on or under the Property and DGG has not been the subject of any claims or incurred any expenses in respect of the presence of any contaminants in the soil or water in, on or under the Property. 

5.1.9

To the best of DGG’s knowledge, there is no circumstance that would prevent any and all governmental licenses and permits required to carry out exploration, development, mining, processing and reclamation operations on the Property from being obtained, as and when necessary. 

5.1.10

DGG has obtained all consents required under any agreements to which it is a party and all required consents and approvals from governmental agencies, as necessary or applicable, for it to execute, deliver and perform its obligations under this Agreement. 

5.1.11

There are no actions, suits or proceedings pending or, to the knowledge of DGG, threatened against or affecting the Property, including any actions, suits, or proceedings being prosecuted by any federal or local department, commission, board, bureau, agency, or instrumentality. To the knowledge of DGG, it is not subject to any order, writ, injunction, judgment or decree of any court or any federal or local department, commission, board, bureau, agency, or instrumentality which relates to the Property.

5.2

NSRS represents and warrants to DGG that:

5.2.1

NSRS is duly incorporated and in good standing under the laws of Nevada. NSRS has the requisite corporate power and capacity to carry on business as presently conducted, to enter into this Agreement, and to perform all of its obligations hereunder.

5.2.2 

The entering into of this Agreement and the performance by NSRS of its obligations hereunder will not violate or conflict with any applicable law or any order, decree or notice of any court or other governmental agency, nor conflict with, or result in a breach of, or accelerate the performance required by any contract or other commitment to which NSRS is a party or by which it is bound.

5.2.3

NSRS has obtained all consents required under any agreement to which it is a party and all required consents and approvals from governmental agencies and any stock exchange, as necessary or applicable, for it to execute, deliver and perform its obligations under this Agreement. 

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5.2.4

NSRS has timely made, to the best of its knowledge, all filings with the SEC that it has been required to make under the Securities Act and the Exchange Act (the “Public Reports”). Each of the Public Reports has complied in all material respects with the applicable provisions of the Securities Act, the Exchange Act, and/or regulations promulgated thereunder. None of the Public Reports, as of their respective dates, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements made therein not misleading. There is no revocation order, suspension order, injunction or other proceeding or law affecting the trading of NSRS’s common stock. NSRS agrees to forever indemnify, hold harmless, and appear and defend against any claim, right, or cause of action made against DGG arising out of or related to the Public Reports.

6.

Area of Interest. For purposes of this Agreement, the Area of Interest is defined as the Property boundary affected by the License as set forth in Schedules A and B. In the event the Area of Interest is further restricted or expanded by the Government of Ghana, this Agreement will be terminated and a new agreement will be constructed to revise the Area of Interest.

7.

Construction and Mining Activities. Subject to the terms of this Section 7, if DGG determines that it desires to commence mine construction activities for the production of minerals from any part of the Property, building of access roads to other portions of the Property or adjacent properties, storage of waste materials, tailings or ore products upon the Property or otherwise cause devaluation to the Property, DGG shall use standard industry practices to ensure that any area contemplated for construction of processing facilities or storage of waste upon the Property has been substantially tested to determine the lack of ore or sub-ore grade material, and will be required to secure all permits, obtain insurance and provide adequate bond with appropriate government agencies to cover any and all reclamation costs before commencement of any of the aforementioned construction activities. 

8.

Property Maintenance. 

8.1 

Subject to the additional requirements under Section 11 below, for so long as this Agreement is in effect, DGG shall make such payments as are necessary to keep the Property in good standing, including, but not limited to payment of any government filings, fees or taxes relating to operations on the Property, and satisfying any federal and local filing and bonding requirements for maintaining the Property in good standing for at least one year after the termination of this Agreement.

8.2 

Upon making any payment or filing to maintain the Property, DGG shall promptly deliver to NSRS a copy of the documents that were filed and written evidence of any payment that was made. DGG shall satisfy all federal and local requirements to maintain the Property in good standing and deliver to NSRS written documentation of such satisfaction at least 30 days prior to the legal deadline (whether required by statute, regulation, contract or otherwise) for satisfying such requirement. If NSRS has not received the documentation required under this Section 8.2 within the prescribed time, NSRS may, but has no obligation to, satisfy such requirement(s), and DGG shall promptly reimburse NSRS for the amount of any payment made by NSRS, and any related costs, plus twenty percent (20%) of the amount of those payments and costs. NSRS’s rights under this Section 8.2 shall not affect NSRS’s right to any other remedy for DGG’s failure to maintain the Property in accordance with this Agreement.

9.

Reporting. DGG shall provide to NSRS annual reports of all activities and operations conducted on or in connection within the Property pursuant to this Agreement, together with copies of all factual data generated as a result of those activities or operations. Those reports shall be provided to NSRS by the 1st of December of each calendar year this Agreement is in effect. Each annual report shall include details of: (i) the preceding year’s activities, operations and expenditures with respect to the Property; (ii) exploration and ore reserve data for the previous year; and (iii) a summary of anticipated activities for the upcoming year. The annual report required to be delivered by December 1 of each year shall be accompanied by digital factual data generated during the previous calendar year, to the extent the data exists in such format. Reports due pursuant to this Section 9 shall be sent to:

North Springs Resources Corp.

200 S. Virginia, 8th Floor

Reno, Nevada, 89501

NSRS may change such address from time to time by written notice to DGG.

10.

Transfer of Interests, Assignments. NSRS and DGG may assign or sell all or parts of their interest under this Agreement to any third party (the “Assignee”) without the consent of either party (but upon notice) provided that the Assignee agrees to execute an acknowledgement to be bound by the terms hereof insofar as each party’s rights hereunder are concerned.

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11.

Standard of Conduct; Environmental Compliance.

11.1

DGG shall ensure that all activities conducted by, or on its behalf on the Property, are in compliance with the laws and regulations of Ghana and any local governmental entity with jurisdiction over the Property or activities thereon, including, but not limited to any laws or regulations regarding environmental protection or reclamation of the Property. DGG shall provide NSRS with satisfactory evidence of such compliance upon DGG’s receipt of such document. All operations under this Agreement shall be conducted in a good and workmanlike manner in accordance with generally accepted mining practices.

11.2

DGG shall provide to NSRS a copy of any permit application or other permitting documents relating to activities or operations on the Property after submission to the applicable government entity. 

11.3

Should any unpermitted discharge, leakage, spillage, repurchase, emission or pollution of any type occur upon, to or from the Property or overlying surface due to DGG’s activities or possession, DGG, at its sole expense, shall promptly clean and restore the Property and overlying surface to standards equal to or exceeding all standards adopted or required by any governmental body having jurisdiction over the affected Property.

12.

Audit and Inspection. NSRS shall be entitled to enter the Property for purposes of inspecting any of DGG’s operations, facilities or structures at reasonable times, upon reasonable advance notice, provided that NSRS or its agents shall so enter at its own risk and shall indemnify and hold DGG and its affiliates harmless against and from any and all loss, cost, damage, liability and expense (including but not limited to reasonable attorneys fees and costs) by reason of injury to NSRS or its agents or representatives, or damage to or destruction of any property of DGG or its agents or representatives while on the Property, or in such workings, facilities and structures, except to the extent that such injury, damage, or destruction is a result, in whole or in part, of the negligence of DGG. NSRS shall have the right during regular business hours to review and copy all of DGG’s files and documents relating to activities on the Property.

13.

Indemnities. DGG shall fully indemnify, defend, repurchase and hold harmless NSRS, its affiliates and successors, and their agents, and employees from and against all loss, costs, penalties, expense, damage and liability (including without limitation, loss due to injury or death, reasonable attorneys fees, expert fees and other expenses incurred in defending against litigation or administrative enforcement actions, either pending or threatened), arising out of or relating to any claim or cause of action relating in any way to conditions, operations or other activities, whether known or unknown, at, or in connection with, the Property (including, but not limited to, any environmental conditions) created, existing or occurring prior to the date of this Agreement or while this Agreement is in effect, or arising out of or resulting from activities conducted by or on behalf of DGG, its affiliates or assigns, which arise in whole or in part under any federal or local law, now existing or hereafter enacted, adopted or amended, including, without limitation, any statutory or common law governing liability to third parties for personal injury or property damage. This indemnity shall survive termination of this Agreement.

14.

Termination.

14.1

NSRS may in its sole discretion terminate this Agreement at any time by giving not less than 30 days prior written notice to that effect to DGG. Upon expiry of the 30 day notice period, or if the Agreement is terminated pursuant to any other provision of this Agreement, the Agreement will be of no further force and effect. Upon such termination, NSRS shall have no further obligation to incur Commitment Payments on or for the benefit of the Property and shall have no further obligations or liabilities to DGG under this Agreement or with respect to the Property (including without limitation liability for lost profits or consequential damages as a result of an election by NSRS to terminate this Agreement).

14.2

In the event NSRS is in default in the observance or performance of any of NSRS’s covenants, agreements or obligations under this Agreement, DGG may give written notice of such alleged default specifying the details of same. NSRS shall have 30 days following receipt of said notice (or, in the event NSRS in good faith disputes the existence of such a default, 30 days after a final, non-appealable order of a court of competent jurisdiction finding that such a default exists) within which to remedy any such default described therein, or to diligently commence action in good faith to remedy such default. If NSRS does not cure or diligently commence to cure such default by the end of the applicable 30-day period, then DGG shall have the right to terminate this Agreement by providing 30 days advance written notice to NSRS. 

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15.

General Provisions.

15.1

Notice. All notices or other communications to either party shall be in writing and shall be sufficiently given if (i) delivered in person, (ii) sent by electronic communication, with confirmation sent by registered or certified mail, return receipt requested, (iii) sent by registered or certified mail, return receipt requested, or (iv) sent by overnight mail by a courier that maintains a delivery tracking system. Subject to the following sentence, all notices shall be effective and shall be deemed delivered (i) if by personal delivery, on the date of delivery, (ii) if by electronic communication, on the date of receipt of the electronic communication, (iii) if by mail, on the date of delivery as shown on the actual receipt, and (iv) if by overnight courier, as documented by the courier’s tracking system. If the date of such delivery or receipt is not a business day, the notice or other communication delivered or received shall be effective on the next business day (“business day” means a day, other than a Saturday, Sunday or statutory holiday observed by banks in the jurisdiction in which the intended recipient of a notice or other communication is situated.) A party may change its address from time to time by notice to the other party as indicated above. 

All notices to DGG shall be addressed to:

Discovery Gold Ghana Limited

P Hse. No. D3/22, 

Ashonman Estates, Accra, Ghana

All notices to NSRS shall be addressed to:

North Springs Resources Corp.

200 S. Virginia, 8th Floor

Reno, Nevada, 89501

15.2

Inurement. All covenants, conditions, indemnities, limitations and provisions contained in this Agreement apply to, and are binding upon, the parties to this Agreement, their heirs, representatives, successors and assigns.

15.3

Implied Covenants. The only implied covenants in this Agreement are those of good faith and fair dealing. This Agreement is not intended to benefit any third-party, nor any class of third-party beneficiaries.

15.4

Waiver. No waiver of any provision of this Agreement, or waiver of any breach of this Agreement, shall be effective unless the waiver is in writing and is signed by the party against whom the waiver is claimed. No waiver of any breach shall be deemed to be a waiver of any other subsequent breach. Notwithstanding the foregoing, each party irrevocably waives any right that he may have to maintain any action for partition with respect to the Property.

15.5

Modification. No modification, variation or amendment of this Agreement shall be effective unless it is in writing and signed by all parties to this Agreement.

15.6

Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to the transactions contemplated herein and supersede any other agreement, representation, warranty or undertaking, written or oral, between DGG and NSRS.

15.7

Further Assurances. Each of the parties agrees that it shall take from time to time such actions and execute such additional instruments as may be reasonably necessary or convenient to implement and carry out the intent and purpose of this Agreement.

15.8

Construction. The section and paragraph headings contained in this Agreement are for convenience only, and shall not be used in the construction of this Agreement. The invalidity of any provision of this Agreement shall not affect the enforceability of any other provision of this Agreement.

15.9

Currency. All references to dollars herein shall mean United States dollars.

15.10

Governing Law. This Agreement shall be governed by, interpreted and enforced in accordance with the laws of the State of Nevada, without regard to its conflicts of laws and provisions.

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15.11

Dispute Resolution. All disputes of every kind and nature between the parties to this Agreement shall be resolved by mutual agreement of the parties. Failing such agreement, disputes shall be resolved by mediation and/or arbitration as follows: either party may demand such arbitration in writing within a reasonable time after the dispute arises, which demand shall be submitted to the party against whom relief is sought, and shall include a statement of the matter and amount in controversy and a list of three (3) acceptable arbitrators. In no event shall the demand be made after the date when institution of legal or equitable proceedings based upon such dispute would be barred by the applicable statute of limitations. Within five (5) business days after such demand the other party shall respond to the demand in writing, and shall either choose an arbitrator from those provided in the list, or propose an arbitrator. If within five (5) days after that response the parties cannot decide upon an arbitrator, they each shall choose one (1) arbitrator who collectively shall choose a third arbitrator, and that chosen arbitrator shall hear the parties’ dispute. The arbitrator shall initially attempt to facilitate a resolution of the matter through mediation. The costs of the mediation shall be borne equally by the parties. If, at any time during the course of the mediation, either the arbitrator or any of the parties believe that a stalemate has been reached, the arbitrator shall schedule a single-hearing arbitration, without any party being entitled to pre-hearing discovery (other than a demand for, and exchange of, all relevant documents, including invoices, receipts, change orders and correspondence). The arbitration costs and expenses of each party shall be borne by the non-prevailing party. Should a dispute arise as to whether or not any dispute arising under the terms of this Agreement is subject to this arbitration provision, the matter shall be decided by arbitration in the same manner and with the same effect as all disputes arising out of this Agreement. All decisions of the arbitrator shall be final, binding, and non-appealable and the arbitrator shall be entitled to render any decision as would be available in law or equity. Nothing herein shall prevent either of the parties from seeking provisional remedies.

15.12

Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise

15.13

Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law.

15.14

Publicity. No party shall cause the publication of any press release or other announcement with respect to this Agreement, the Property, or the transactions contemplated hereby without the consent of the other parties, unless a press release or announcement is required by law. If any such announcement or other disclosure is required by law, the disclosing party agrees to give the non-disclosing party prior notice and an opportunity to comment on the proposed disclosure.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the 25th day of January, 2012.

Discovery Gold Ghana Limited

By:  /s/ Donald Ross          

Name: Donald Ross

Title: President

North Springs Resources Corp. 

By:  /s/ Harry Lappa         

Name: Harry Lappa

Title: President & CEO

 

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SCHEDULE A

The Edum Banso Concession area covers about 20.60 km2 of the greater part lying on Field Sheets 0502C3 in the Western Region of Ghana. The concession lies between the geographical coordinates of latitude 5° 00'N to 5° 05'N and longitudes 1° 53'W to 1° 56'W. The Edum Banso concession is located within Mpohor Wasa East District of the Western Region. The concession is about 35km north-west of Takoradi.

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SCHEDULE B

GOVERNMENT OF THE REPUBLIC OF GHANA

AND

ADOM MINING LIMITED

__________________________________________________

PROSPECTING LICENCE

__________________________________________________

SOLICITOR OF THE

SUPREME COURT

TERM: 

TWO (2) YEARS (RENEWABLE)

COMMENCEMENT:

08-05-1991

EXPIRY DATE: 

07-05-1991

FILE NO.:

LVB 2324/91

THIS AGREEMENT is made the 8th day of May 1991 BETWEEN THE GOVERNMENT OF THE REPUBLIC OF GHANA (hereinafter called "THE GOVERNMENT") acting by-the PNDC Secretary for Lands and Natural Resources (hereinafter called "THE SECRETARY") of the One Part and ADOM MINING LIMITED having its registered office at P. O. Box 0977, Osu-Accra (hereinafter called "THE COMPANY") of the Other Part.

WHEREAS:

1) Government's policy to take all such steps as it deems appropriate and effective for prospecting for minerals throughout the territories of the Republic of Ghana and for producing these minerals thereby ensuring that the maximum possible benefits accrue to the nation from the exploitation of mineral resources.

2) In pursuit of the above policy Government desires to secure the co-operation of Companies which possess to the Government's satisfaction, the necessary financial and managerial qualifications and skills for carrying out mining operations.

3) The Company, whose financial, technical and managerial competence for undertaking mineral operations has been established to the Government's satisfaction, has declared itself willing to engage in prospecting operations in Ghana on the understanding that it shall bear the sole risk and cost of such prospecting operations trusting that after the achievement of commercial production, it shall enjoy the prospect of reasonable rewards.

The Company is also willing that once the prospecting operations come to an end and an economically and financially feasible mining project has been successfully established, the Government shall, if it so desires, have the option to participate in development and production operations.

WITNESSES AS FOLLOWS:

1.

The Government hereby grants unto the Company the right and license to Prospect for and prove gold under or in the area described in the Schedule hereto and demarcated on the map which forms part of this AGREEMENT (hereinafter called "the License Area") excluding any parts to be relinquished from time to time for a term of TWO (2) YEARS from the 8th day of May, 1991 with a right of extension as hereinafter provided.

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2. 

RIGHTS OF THE COMPANY:

 

a. The Company shall have the right to conduct such geological and geophysical investigations in the Licensed Area as it considers necessary to determine an adequate quantity of geologically proven and mineable reserve of gold.

b. The Company may exercise all or any of the rights and powers granted hereunder through agents, independent contractors or sub-contractors.

c. The Government shall secure for the Company, upon request by the Company, to the extent authorized by law and at the Company's expense, surface rights for the erection, operation and maintenance of buildings, works and installations together with such wayleaves as the Company may reasonably require for the exercise of its rights and obligations under this Agreement; provided that any damage to private property shall be subject to adequate compensation by the Company.

d. The Company shall not, however, conduct any operations in a sacred area and shall not, without the prior consent of the Secretary conduct any operations:

i. within fifty yards of any building, installations, reservoir, dam, public road, railway or area appropriated for a railway; or

ii. in an area occupied by a market, burial ground, cemetery or within a town or village or an area set apart for, used, appropriated or dedicated to a public purpose.

e. Nothing contained in this Agreement shall be deemed to permit the Company to dispense with the necessity of applying for and obtaining any permit or authority which the Company may be required by law or regulation to obtain in respect of any works and/or activities to be carried out hereunder.

3. 

RIGHTS OF THIRD PARTIES:

 

a. The Government reserves the right to grant Licenses to third parties for prospecting or enter into Agreements for the production of minerals other than gold in the Licensed Area, provided that any such activity shall not unreasonably interfere with the rights granted to the Company hereunder.

b. The Company shall not hinder or prevent members of the local population from exercising the following customary rights and privileges in or over the Licensed Area:

i. to hunt game

ii. to gather firewood for domestic purposes

iii. to collect snails

iv. to till and cultivate farms

v. to observe rites in respect of groves and other areas held to be sacred. Provided always that where the exercise of these customary rights and privileges unduly interferes with or obstructs the operations of the Company hereunder, the Company shall make arrangements with members of the said local population for the limitation or waiver of such rights and privileges, such arrangements to include the payment of compensation where necessary. The Government shall furnish such assistance as is reasonably required in the making of such arrangements.

4. 

CONDUCT OF OPERATIONS:

a. The Company shall conduct all of its operations hereunder with due diligence, efficiency and economy to the maximum extent possible consistent with good mining industry practice and in a proper workmanlike manner observing sound technical and engineering principles and practices, using appropriate modern and effective equipment, machinery, materials and methods and to pay particular regard to the protection of the environment.

 

b. The Company shall maintain all equipment and all pits and trenches in good repair and all excavated areas in safe and good condition and take all practicable steps:

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i. to prevent damage to adjoining farms and villages;

ii. to avoid damage to trees, crops, building, structures and other property in the Licensed Area to the extent however, that any such damage is unavoidable the Company shall pay fair and reasonable compensation. The Company shall provide and maintain in good repair and condition proper roads, gates, stiles and fences for the convenient occupation of the surface of the Licensed Area.

c. The Company shall use its best efforts to exercise its rights and powers granted by this Agreement in such manner as not to cause interference with or avoidable obstruction or interruption to the felling of timber by the Licensed timber operators within the Licensed Area and the Government shall furnish assistance to the Company to make appropriate arrangements with such operators to permit the prospecting programme to proceed without interference or delay.

5. 

WORKING OBLIGATIONS:

a. The Company shall with due diligence and by means of modern geological, geophysical and other methods normally associated with mineral prospecting and within three months of the date of this Agreement or at such other time as the Secretary may specify, commence prospecting operations with a view to establishing the existence of gold in economic quantities.

b. The Company, having prior to the commencement of this Agreement submitted its programme of work to the Government, shall carry out its operations in accordance with the programme and the Chief Inspector of Mines shall from time to time inspect the operations to ensure that the Company does so.

c. The Company shall diligently continue to carry out its operations hereunder and shall spend as actual direct prospecting expenditure not less than the minimum amounts specified in its work programme.

d. If on the termination or expiration of this Agreement for any reason other than force majeure the Company shall not have spent the amounts specified in the work programme, the difference between the amount actually expended and the stipulated minimum for the year in which termination or expiration takes place shall be paid to the Government within thirty days after the date of such termination or expiration.

6. 

NOTIFICATION OF DISCOVERY OF OTHER MINERALS:

The Company shall report forthwith to the Secretary, the Chief Inspector of Mines, the Director of Geological Survey and the Chief Executive of the Minerals Commission the discovery in the Licensed Area of any other minerals subject to satisfactory arrangements between the Government and the Company.

7. 

SAMPLES

a. The Company shall not during the currency of this Agreement destroy, except in analyses, any cores or samples obtained from the Licensed Area without the prior written consent of the Director of Ghana Geological Survey.

b. The Company shall provide the Director of Ghana Geological Survey and the Chief Inspector of Mines with such samples from the Licensed Area as they may from time to time reasonably request.

8. 

RECORDS

a. The Company shall maintain at its registered office copies of the following:

i. full and complete records and books of account relating to the prospecting programme in Ghana.

ii. the detailed results and analysis of all investigations, surveys, boring, pitting and other testing conducted pursuant to the provisions of this Agreement.

b. The records referred to in the foregoing paragraph shall include copies of all geological, geophysical, geochemical, drilling and pitting reports relating to the Licensed Area and all maps, drawings and diagrams pertaining to these reports.

11

c. The said records, with the exception of proprietary technical information, shall be made available for inspection at reasonable times without delaying work on the prospecting programme, by the Chief Inspector of Mines and the Chief Executive, Minerals Commission, upon request, and shall be retained in Ghana, unless removed with Government's consent.

d. Failure to keep such records and to produce them for inspection upon receipt of reasonable notice shall constitute just cause for the cancellation of this License.

9. 

REPORTS

a. The Company shall furnish to the Chief Inspector of Mines, the Director of Ghana Geological Survey and the Chief Executive of the Minerals Commission, not later than the 15th of each fourth month, a report giving a general description of the work done by the Company in the preceding quarter and containing a description accompanied by a sketch plan of the areas where any gold and any other minerals were found, particulars of the type of minerals found and the number and weight of samples taken, if any.

b. All records, reports, plans and information which the Company is required to supply to the Government and its agents pursuant to the provisions of this Agreement shall be supplied at the expense of the Company.

c. Any information or material supplied by the Company to the Government pursuant to the provisions of this Agreement shall be treated by the Government, its officers and agents as confidential and shall not be revealed to third parties except with the consent of the Company (which consent shall not be unreasonably withheld) for a period of 12 months with respect to technical information and 36 months with respect to financial information from the date of submission of such information. The Government and persons authorized by the Government may nevertheless use any such information received from the Company for the purpose of preparing and publishing general reports on minerals in Ghana.

10. 

FINANCIAL OBLIGATION:

a. The Company shall pay to the Government:

i. in consideration of the grant of the right of prospecting for gold in the Licensed Area an amount of Two hundred and fifty thousand cedis ((cent)250,000.00) within 30 days from the date of this Agreement.

ii. a yearly rent of Twenty one thousand nine hundred and ninety cedis ((cent) 21,990)

b. Payment of the rent specified in the foregoing paragraph shall be made yearly in advance, the first year's payment having been made before the execution of this Agreement.

11. 

ASSIGNMENT, MORTGAGE, ETC:

a. The Company shall not assign, mortgage, sublet or otherwise transfer this Agreement provided however that any of the rights and powers granted by this agreement or any interest therein may be transferred with the prior written consent of the Government.

b. The Government may impose such conditions on the giving of such consent as it thinks fit.

12. 

SURRENDER OF PART OF LICENSED AREA:

a. The Company may surrender at any time and from time to time by giving not less than three months' notice to the Chief Inspector of Mines and the Chief Executive of the Minerals Commission, all its rights hereunder in respect of any part or parts of the Licensed Area. The Company shall be relieved of all obligations in respect of the part or parts of the Licensed Area so surrendered except those obligations which accrued prior to the effective date of surrender.

b. The Company shall leave the part of the Licensed Area surrendered and everything thereon in a safe condition. The Company shall take all reasonable measures to restore the surface of such part of the Licensed Area surrendered and all structures thereon not the property of the Company to their original condition. In the event that the Company fails to do so, the Chief Inspector of Mines shall make such part and everything thereon safe and in good condition at the expense of the Company.

12

13. 

EXTENSION:

a. If the Company applies in writing to the Government not less than three months before the expiration of this Agreement for an extension of the term hereof and if the Company shall not be in default at that time in the performance of any of its obligations hereunder the Company may, subject to the provisions of the law, be granted an extension for a period not exceeding two years upon such terms and conditions as the parties may then agree.

b. A further extension may be granted in accordance with the provisions of the Law.

14. 

RE-ENTRY BY GOVERNMENT:

If the operations and activities of the Company in accordance with the prospecting programme shall cease in the Licensed Area before the same have been completed and if such cessation shall be due entirely to the fault of the Company, the Government may, upon giving the notice and following the procedure required in paragraph 15 below, re-enter the Licensed Area and take possession of all buildings, erections, plants and materials thereon without compensation to the Company (such right of entry not to prejudice any additional remedy of the Government), and thereupon the Agreement shall terminate.

15. 

TERMINATION BY THE GOVERNMENT:

a. The Government may, subject to the provisions of this paragraph, terminate this Agreement if any of the following events shall occur:

i. the Company shall fail to make any of the payments described in this Agreement on the payment date; or

ii. the Company shall contravene or fail to comply with any other condition of this Agreement; or

iii. the Company shall become insolvent or commit any act of bankruptcy or enter into any agreement or composition with its creditors or take advantage of any law for the benefit of debtors or go into liquidation, whether compulsory or voluntary, except for the purposes of reconstruction or amalgamation; or 

iv. the Company knowingly submits any false statement to the Government in connection with this Agreement.

b. If and whenever the Government decides to terminate this Agreement pursuant to clauses (i) and (ii) of the preceding sub-paragraph, the Government shall give the Company notice specifying the particular contravention or failure and permit the Company to remedy the same within twenty-one days of such notice or such longer period as the Secretary may specify in such notice as reasonable in the circumstances.

c. If the Company shall fail to remedy an event specified in clauses (i) and (ii) of sub-paragraph (a) of this paragraph within the stated period, or an event specified in clauses (iii) and (iv) of the said sub-paragraph shall occur, the Government may by notice to the Company terminate this Agreement.

d. Upon termination of this Agreement by the Government every right of the Company hereunder shall cease (save as specifically otherwise provided hereunder) but subject nevertheless and without prejudice to any obligation or liability imposed or incurred under this Agreement or applicable law prior to the effective date of termination.

e. No delay or omission or course of dealing by the Government shall impair any of its rights hereunder or be construed to be a waiver of an event specified in sub-paragraph (a) of this paragraph or acquiescence therein.

16. 

ASSETS ON TERMINATION OR EXPIRATION:

Upon the termination or expiration of this Agreement, the Company may within Sixty days from the effective date of such termination, remove from the Licensed Area any structures and installations erected and any movables placed thereon by the Company. Any structures, installations and movables not so removed within the said period shall become the property of the Government without charge.

13

17. 

FORCE MAJEURE:

a. Failure on the part of the Company to comply with any of the terms and conditions hereof (except the obligations to make payment of monies to the Government) shall not be grounds for cancellation or give the Government any claim for damages in so far as such failure arises from force majeure, the Company having taken all appropriate precautions, due care and reasonable alternative measures with the objective of avoiding such failure and of carrying out its obligations hereunder. The Company shall take all reasonable measures to remove such inability to fulfill the obligations hereunder with the minimum of delay.

b. For purposes of this paragraph force majeure includes acts of God, war, insurrection, earthquake, storm, flood or other adverse weather condition but shall not include any event caused by the failure to observe good mining industry practice or by the negligence of the Company or any of its employees or contractors.

c. The Company shall notify the Secretary within twenty-four hours of an event of force majeure affecting its ability to fulfill the terms and conditions hereof.

d. The period of this Agreement shall be extended for a period of time equal to the period or periods during which the company was affected by any of the conditions set forth in sub-paragraph (b) of this paragraph, but not to exceed six months in the aggregate. 

18. 

FOREIGN EXCHANGE:

a. Subject to sub-paragraph (b) of this paragraph the Company shall, during the term of this Agreement and so long as it does not derive any revenue from its operations hereunder, finance such operations in the following manner:

i. by converting to Ghana currency through authorized dealers such amounts of foreign currency as will be sufficient to cover the Company's operating expenses required to be paid in Ghana currency including any payments to the Government and third parties provided that the terms of any loans obtained abroad shall be in conformity with current international, commercial and monetary conditions and that prior notice of such loans and advances shall be furnished to the Bank of Ghana.

ii. By directly purchasing and/or hiring abroad as is necessary for conducting the prospecting programme with its foreign currency funds and importing to and/or using in Ghana freely and without restrictions such machinery, equipment, materials and services of any nature whatsoever as will be required by the Company for its operations hereunder.

b. The Company may be required to pay all its rentals and other licensing fees to the Government in dollars or other freely convertible currency, or such currencies as shall be specified by the Bank of Ghana.

c. All conversions of currency shall be made at the prevailing official rates of exchange.

19. 

PRODUCTION AGREEMENT:

 

If upon the expiration of this Agreement the Company shall have carried out its obligations hereunder to the satisfaction of the Government and shall have successfully established to the Government that the development of a mine from ore reserves established within the Licensed Area is economically and financially feasible, then the Government shall grant to the Company the first option to (i) acquire a License for the purposes of mining gold in the Licensed Area, and (ii) participate in a mining Project in the Licensed Area subject to negotiation with the Government of satisfactory terms for such licence and participation.

20. 

NOTICE:

Any application, notice, consent, approval, direction, or instruction hereunder shall be in writing and shall be served by hand or by registered mail. Delivery by hand shall be deemed to be effective when made and delivery by registered mail shall be deemed to be effective at such time as it would in the ordinary course of registered mail be delivered to the addressee.

Until changed by appropriate notice, the Company's address in Ghana is its registered office as set forth above and the addresses of the Government officials are as follows:

i. The PNDC Secretary, Ministry of Lands and Natural Resources, P.O. Box M.212, Accra.

ii. The Chief Inspector of Mines, Mines Department, P.O. Box 254, Takoradi.

14

iii. The Director of Geological Survey , Geological Survey Department, P.O. Box M.80, Accra

iv. The Chief Executive, Minerals Commission, P.O. Box M.248, Accra

v. The Chief Survey Officer, Survey Department, P.O. Box 191, Accra

vi. The Governor, Bank of Ghana, P.O. Box 2674, Accra.

21. 

POLITICAL ACTIVITY:

Neither the Company nor any of its employees who is not a citizen of Ghana shall engage in political activity of any kind in Ghana nor make a donation, gift or grant to any political party or for political purposes in Ghana.

22. 

ARBITRATION:

Subject to the provisions hereof, if any time during the continuance of this Agreement or after its termination any question or dispute shall arise regarding the rights, powers, duties and liabilities of the parties hereto such question or dispute shall be referred to arbitration in accordance with the Arbitration Act 1961 (Act 38). In such event, there shall be two arbitrators, one to be appointed by each party.

23. 

GOVERNING LAW:

This Agreement shall be governed by, construed and interpreted in accordance with the laws of Ghana.

24. 

HEADINGS:

 

The headings given to paragraphs in this Agreement are for convenience only and shall not affect the construction or interpretation of this Agreement.

15

THE SCHEDULE ABOVE REFERRED TO:

All that pieces or parcels of land containing an approximate area of 43.98 square kilometers lying to the north and south of Latitudes 5(degree) 00 and 5(degree) 071 respectively; and bounded on the east by Longitude 1(degree) 52 and west by Longitude 1(degree) 57 in the Mpohor Wassa East district of the Western Region of the Republic of Ghana which piece or parcel of land is more particularly delineated on the plan annexed hereto for the purposes of identification and not of limitation.

IN WITNESS WHEREOF the parties hereto of the first part has hereunto set his hand and affixed the Seal of the Ministry of Lands and Natural Resources and the party hereto of the second part has hereunto caused its Common Seal to be affixed the day and year first above written.

SIGNED AND SEALED with the SEAL 

)

of the Ministry of Lands and 

)

Naturall Resources and DELIVERED by 

)

the said PNDC Secretary for Lands and 

) 

/s/                                             

Natural Resources for and on behalf of

) 

Minister

the Government of the 

) 

Ministry of Lands & Natural Resources

Republic of Ghana in the presence: 

)

/s/                                                       

Witness

The COMMON SEAL/STAMP of the said 

)

ADOM MINING LIMITED 

)

was affixed to these presents and the 

)

same were DELIVERED in the 

)

presence of: 

)

/s/                                                       

Managing Director

/s/                                                       

Secretary

16

OATH OF PROOF

 

I, James Ackah, of Minerals Commission MAKE OATH and SAY that on the 8th day of May, 2004

I was present and saw the PNDC Secretary for Lands and Natural Resources duly execute the Instrument now produced to me and Marked "A" and that the said JOE AHIMA DANSO can read and write, 

Sworn at Accra this 21st day of May, 2001

Before Me

/s/                                                       

/s/ James Ackah                                 

 REGISTRAR OF LANDS 

DEPONENT

This is the Instrument Marked "A" Referred to in the Oath of James Ackah

SWORN before me this 21st... day of May, 2001

 

/s/                                                       

 

REGISTRAR OF LANDS

On the 21st day of May, 1991 at 11:50 O'clock in the forenoon this Instrument was proved before me by the Oath of the within-named to have been duly executed by the within-named Joe Ahima Danso.

 

/s/                                                       

REGISTRAR OF LANDS

 

Chief Registrar

 

High Court Accra

17Exhibit 4.10

 

Allen & Overy LLP

 

 

 

EIGHTH SUPPLEMENTAL INDENTURE

 

 

 

 

among

 

AEGON N.V.,

as issuer

 

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

as trustee

 

and

 

CITIBANK, N.A.,

as paying agent

 

dated as of January 31, 2012

 

 

to the Indenture among

 

AEGON N.V.,

 

AEGON FUNDING COMPANY LLC,

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (as successor in interest to Citibank, N.A.),

as trustee

 

dated as of October 11, 2001

 

$500,000,000 principal amount of 8.00% Non-Cumulative Subordinated Notes due 2042

 

 

 

TABLE OF CONTENTS

 

	
Section
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Definitions
    	
 
    	
2
    
	
 
    	
1.1
    	
Definitions of Terms
    	
 
    	
2
    
	
2.
    	
General Terms and Conditions of the Subordinated   Notes
    	
 
    	
7
    
	
 
    	
2.1
    	
Designation and Principal Amount
    	
 
    	
7
    
	
 
    	
2.2
    	
Maturity
    	
 
    	
7
    
	
 
    	
2.3
    	
Form, Issuance, Registration and Exchange
    	
 
    	
7
    
	
 
    	
2.4
    	
Payments
    	
 
    	
7
    
	
3.
    	
Redemption, Conversion, Substitution, Variation and   Purchases
    	
 
    	
9
    
	
 
    	
3.1
    	
General
    	
 
    	
9
    
	
 
    	
3.2
    	
Optional Redemption
    	
 
    	
9
    
	
 
    	
3.3
    	
Redemption for Tax Reasons
    	
 
    	
9
    
	
 
    	
3.4
    	
Redemption, Conversion, Substitution, Exchange or   Variation for Regulatory Reasons
    	
 
    	
10
    
	
 
    	
3.5
    	
Notice of Redemption
    	
 
    	
11
    
	
 
    	
3.6
    	
Postponement of Redemption and Payment at Maturity
    	
 
    	
11
    
	
 
    	
3.7
    	
Purchases
    	
 
    	
12
    
	
 
    	
3.8
    	
Cancellation
    	
 
    	
12
    
	
4.
    	
Remedies
    	
 
    	
12
    
	
 
    	
4.1
    	
Non-Payment When Due; Limitation of Remedies
    	
 
    	
12
    
	
5.
    	
Subordination
    	
 
    	
13
    
	
 
    	
5.1
    	
Agreement to Subordinate
    	
 
    	
13
    
	
 
    	
5.2
    	
Section 1402 of the Base Indenture
    	
 
    	
13
    
	
6.
    	
Covenants of the Company
    	
 
    	
13
    
	
 
    	
6.1
    	
Listing
    	
 
    	
13
    
	
 
    	
6.2
    	
Officers’ Certificate on Cancellation or   Postponement
    	
 
    	
14
    
	
7.
    	
Form of Subordinated Notes
    	
 
    	
14
    
	
 
    	
7.1
    	
Form of Subordinated Notes
    	
 
    	
14
    
	
8.
    	
Original Issue of Subordinated Notes
    	
 
    	
14
    
	
 
    	
8.1
    	
Original Issue of Subordinated Notes
    	
 
    	
14
    
	
9.
    	
Winding Up
    	
 
    	
14
    
	
 
    	
9.1
    	
Winding Up
    	
 
    	
14
    
	
10.
    	
Satisfaction and Discharge
    	
 
    	
14
    
	
 
    	
10.1
    	
Satisfaction and Discharge
    	
 
    	
14
    
	
11.
    	
Taxation; Additional Amounts
    	
 
    	
15
    
	
 
    	
11.1
    	
General
    	
 
    	
15
    
	
 
    	
11.2
    	
Section 1006 of the Base Indenture
    	
 
    	
16
    
	
12.
    	
Miscellaneous
    	
 
    	
16
    
	
 
    	
12.1
    	
Issuance of Definitive Subordinated Notes
    	
 
    	
16
    

 

ii

 

	
 
    	
12.2
    	
Further Issuances
    	
 
    	
17
    
	
 
    	
12.3
    	
Ratification of Base Indenture; Eighth Supplemental   Indenture Controls
    	
 
    	
17
    
	
 
    	
12.4
    	
Trustee Not Responsible for Recitals
    	
 
    	
17
    
	
 
    	
12.5
    	
Governing Law
    	
 
    	
17
    
	
 
    	
12.6
    	
Severability
    	
 
    	
17
    
	
 
    	
12.7
    	
Counterparts
    	
 
    	
17
    
	
 
    	
12.8
    	
Paying Agent
    	
 
    	
18
    
	
13.
    	
Definition of Officers’ Certificate, Company Request   and Company Order Amended
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Form of 8.00%   Non-Cumulative Subordinated Notes due 2042
    	
 
    	
1
    

 

iii

 

EIGHTH SUPPLEMENTAL INDENTURE

 

EIGHTH SUPPLEMENTAL INDENTURE dated as of January 31, 2012 (the Eighth Supplemental Indenture)

 

AMONG:

 

(1)                               AEGON N.V., a Netherlands public company with limited liability (AEGON N.V. or the Company), having its principal executive office at AEGONplein 50, 2501 CB, The Hague, The Netherlands;

 

(2)                               THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association duly organized and existing under the laws of the United States of America, as trustee (the Trustee) under the Indenture dated as of October 11, 2001 (the Base Indenture), among the Company, AEGON Funding Company LLC (AEGON Funding) and the Trustee (as successor in interest to Citibank, N.A.), as modified and supplemented by a supplemental indenture dated as of November 14, 2003, a second supplemental indenture dated as of June 1, 2005, a third supplemental indenture dated as of November 23, 2005, a fourth supplemental indenture dated as of December 12, 2005, a fifth supplemental indenture dated as of June 28, 2006, a sixth supplemental indenture dated as of September 21, 2007, a seventh supplemental indenture dated as of November 27, 2009 and as shall be further supplemented by this Eighth Supplemental Indenture (this Eighth Supplemental Indenture together with the Base Indenture, the Indenture); and

 

(3)                               CITIBANK, N.A., a national banking association, through its New York branch, which has agreed to act as Paying Agent hereunder.

 

WHEREAS:

 

(A)                           the Company, AEGON Funding and Citibank, N.A. executed and delivered the Base Indenture to provide for the future issuance by the Company of its Securities to be issued from time to time in one or more series as might be determined under the Base Indenture, in an unlimited aggregate principal amount, which may be authenticated and delivered as provided in the Base Indenture;

 

(B)                            the Trustee is the successor in interest to Citibank, N.A. under the Indenture pursuant to the terms of the Agreement of Resignation, Appointment and Acceptance dated as of August 21, 2007 by and among the Company, AEGON Funding Corp., the Trustee and Citibank, N.A.;

 

(C)                            Section 301 of the Base Indenture permits the terms of any series of Securities to be established pursuant to a Board Resolution or in one or more indentures supplemental to the Base Indenture;

 

(D)                           the Company desires to issue a series of Securities, the terms of which it deems appropriate to set out in this Eighth Supplemental Indenture;

 

(E)                             pursuant to the terms of the Base Indenture, the Company may issue Securities now and additional Securities of the same or different series at later dates under the Base Indenture, as established by the Company, and the Company desires to initially issue $500,000,000 aggregate principal amount of Securities, entitled the 8.00% Non-Cumulative Subordinated Notes due 2042 (the Subordinated Notes) plus up to an additional $75,000,000 if, and to the extent that, the underwriters of the Subordinated Notes elect to exercise their over-allotment option in whole or in part, the form and substance of such Subordinated Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture as supplemented by this Eighth Supplemental Indenture;

 

 

(F)                              pursuant to Section 301 of the Base Indenture, the Company desires to appoint Citibank, N.A., through its New York branch, to act as Paying Agent with respect to the Subordinated Notes;

 

(G)                            the Subordinated Notes shall be treated as a separate series of Securities in accordance with the terms of the Indenture and for all purposes under the Indenture; and

 

(H)                           the Company has duly authorized the execution and delivery of this Eighth Supplemental Indenture and requested that the Trustee execute and deliver this Eighth Supplemental Indenture, and all requirements necessary to make this Eighth Supplemental Indenture a valid and binding instrument in accordance with its terms have been done.

 

NOW THEREFORE, in consideration of the purchase and acceptance of the Subordinated Notes by the holders thereof, and for the purpose of setting forth, as provided in the Indenture, the form and substance of the Subordinated Notes and the terms, provisions and conditions thereof, as well as for other purposes set forth herein, the parties hereto hereby agree as follows:

 

1.                                    DEFINITIONS

 

1.1                            Definitions of Terms

 

For all purposes of the Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(a)                               a term defined in the Base Indenture and not otherwise defined herein has the same meaning when used in this Eighth Supplemental Indenture;

 

(b)                               unless otherwise specified, a reference to a Section or Article is to a Section or Article of this Eighth Supplemental Indenture;

 

(c)                               headings are for convenience of reference only and do not affect interpretation; and

 

(d)                               the following terms have the meanings set forth below for purposes of this Eighth Supplemental Indenture and the Base Indenture as it relates to the series of Subordinated Notes issued hereunder.

 

Accrued Interest Payment means, at any time, the amount of interest (if any) that has continued to accrue after an Interest Payment Date in respect of the failure to make a payment when due on an Interest Payment Date.

 

Additional Amounts has the meaning specified in Section 11.1.

 

Base Indenture has the meaning specified in the Preamble.

 

Base Redemption Price means, in respect of any date fixed for redemption of the Subordinated Notes or the Scheduled Maturity Date, the aggregate principal amount of the Subordinated Notes, together with any accrued but unpaid Interest to such date fixed for redemption or the Scheduled Maturity Date that has not previously been cancelled in accordance with Section 2.4(d) or Section 2.4(e).

 

Business Day means a day, other than a Saturday or Sunday, on which commercial banks and foreign exchange markets are open for general business in New York and Amsterdam.

 

2

 

Capital Adequacy Event means that the Company’s solvency margin, additional solvency margin or any other regulatory capital resources or levels, or any equivalent terminology employed by the then applicable Capital Adequacy Regulations, is/are below the capital adequacy requirements imposed upon the Company by its Supervisory Authority pursuant to the then applicable Capital Adequacy Regulations which, following the implementation of the Solvency II Directive, includes the Company’s “Solvency Capital Requirements” (as defined in the Solvency II Directive) or any equivalent terminology employed by the then applicable Capital Adequacy Regulations.

 

Capital Adequacy Regulations means the solvency margin, capital adequacy regulations or any other regulatory capital rules applicable to the Company from time to time pursuant to Dutch law and/or the laws of any other relevant jurisdiction and which set out the requirements to be satisfied by financial instruments to qualify as solvency margin or additional solvency margin or regulatory capital (or any equivalent terminology employed by the then applicable Capital Adequacy Regulations).

 

Capital Disqualification Event means that the Subordinated Notes cease to be capable of qualifying, in whole or (as a result of any transitional or grandfathering provisions) in part, under the then applicable Capital Adequacy Regulations for the purposes of determining the Company’s solvency margin, capital adequacy ratios or comparable margins or ratios, of the Group or any member thereof, or, where subdivided in tiers, as Tier 2 own funds, on a solo and/or consolidated basis, except where such nonqualification is only as a result of any applicable limitation on the amount of such capital.

 

Compliant Securities means securities issued directly or indirectly by the Company that:

 

(a)                               have terms which are not materially less favorable to the holders of the Subordinated Notes, from a financial point of view, than the terms of the Subordinated Notes (as reasonably determined by the Company, and provided that an Officers’ Certificate to such effect shall have been delivered to the Trustee prior to the issuance of the relevant securities), provided that such securities (i) contain terms such that they comply with the then current requirements of the Company’s  Supervisory Authority in relation to Tier 2 capital, (ii) include terms which provide for at least the same interest rate from time to time applying to the Subordinated Notes, and (iii) rank at least pari passu with the Subordinated Notes; and

 

(b)                               if the Subordinated Notes which have been substituted or varied were listed immediately prior to their substitution or variation, are listed on (i) the New York Stock Exchange or (ii) such other internationally recognized stock exchange as selected by the Company.

 

Change in Law has the meaning set forth in Section 3.3(c).

 

Clearstream, Luxembourg means Clearstream Banking, société anonyme.

 

DTC means The Depository Trust Company.

 

Euroclear means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

 

Exchange Act means the Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time.

 

Executive Board means the executive board of AEGON N.V.

 

3

 

Existing Capital Securities means three series of the Company’s perpetual capital securities in aggregate principal amounts of €950 million, $500 million and €200 million, respectively, issued under a trust deed dated July 15, 2004 between AEGON N.V., as issuer, and ATC Financial Services B.V., as trustee, together with five series of the Company’s perpetual capital securities in aggregate principal amounts of $1 billion, $500 million, $1,050 million, $250 million and $550 million, respectively, issued under the  Base  Indenture, as modified and supplemented from time to time in connection with the issuance of such securities.

 

Final Payment Date has the meaning set forth in Section 3.6(b).

 

Global Securities has the meaning set forth in the Base Indenture.

 

Group means AEGON N.V. and all of its consolidated subsidiaries and Undertakings, as reflected in the primary consolidated financial statements of AEGON N.V.

 

Indenture has the meaning specified in the Recitals.

 

Interest shall, where appropriate, include any Interest Amounts and/or Accrued Interest Payments.

 

Interest Amount means:

 

(a)                               in respect of an Interest Payment Date, the amount of interest payable on a Subordinated Note for the relevant Interest Period; and

 

(b)                               in the event of redemption due to a Tax Event or a Capital Disqualification Event or a payment on the Final Payment Date, any interest accrued in the period from (and including) the preceding Interest Payment Date (or, if none, the Issue Date) to (but excluding) the due date for such redemption or the Final Payment Date, and, if not an Interest Payment Date, as calculated on the basis of a 360-day year consisting of 12 months of 30 days each.

 

Interest Payment means (a) in respect of an Interest Payment Date, the aggregate Interest Amount for the Interest Period ending on such Interest Payment Date and (b) in respect of a payment on any other date on which an Interest Amount is payable, the aggregate Interest Amount for the relevant period.

 

Interest Payment Date has the meaning specified in Section 2.4(c).

 

Interest Period has the meaning specified in Section 2.4(b).

 

Interest Rate has the meaning specified in Section 2.4(a).

 

Issue Date means January 31, 2012.

 

Junior Guarantee means any guarantee, indemnity or other contractual support arrangement entered into by the Company in respect of securities (regardless of name or designation) issued by one of the Company’s subsidiaries or Undertakings and ranking, in a Winding-Up or in respect of distributions or payment of dividends or any other payment thereon, after the Subordinated Notes.

 

Junior Securities means all classes of share capital, capital securities or any of the Company’s other securities which rank or are expressed to rank after the Subordinated Notes with respect to distributions

 

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on a return of assets in a Winding-Up or in respect of distributions or payment of dividends or any other payments thereon.

 

Mandatory Cancellation Condition means that, on the 20th Business Day preceding any Interest Payment Date, (a) the Company has determined that (i) the Company is not Solvent or (ii) payment of the Interest Payment (or part thereof) on such Interest Payment Date would result in the Company becoming not Solvent or (b) the Company is then subject to the Capital Adequacy Regulations and the Company has determined that (i) a Capital Adequacy Event has occurred and continues to exist or (ii) payment of the Interest Payment (or part thereof) on such Interest Payment Date would result in a Capital Adequacy Event occurring or continuing to exist.

 

Mandatory Postponement Condition means that, on the 10th Business Day preceding any date fixed for redemption of the Subordinated Notes or the Scheduled Maturity Date, as the case may be, (a) the Company has determined that (i) the Company is not Solvent or (ii) that payment of the Base Redemption Price on such date fixed for redemption or the Scheduled Maturity Date, as the case may be, would result in the Company becoming not Solvent or (b) the Company is then subject to the Capital Adequacy Regulations and the Company has determined that (i) a Capital Adequacy Event has occurred and continues to exist or (ii) payment of the Base Redemption Price on such date fixed for redemption or the Scheduled Maturity Date, as the case may be, would result in a Capital Adequacy Event occurring or continuing to exist.

 

Non-Payment Event has the meaning set forth in Section 4.1(a).

 

Parity Guarantee means any guarantee, indemnity or other contractual support arrangement the Company enters into with respect to securities (regardless of name or designation) issued by any of the Company’s subsidiaries or Undertakings that rank, or are expressed to rank, in a Winding-Up or in respect of distributions or payments thereon equally with the Subordinated Notes.

 

Parity Securities means the Company’s Perpetual Cumulative Subordinated Bonds and any of the Company’s securities that rank or are expressed to rank equally with the Subordinated Notes with respect to distributions on a return of assets in a Winding-Up or in respect of distribution or payment of any amounts thereunder by the Company.

 

Paying Agent means Citibank, N.A. as paying agent in relation to the Subordinated Notes, or its successor or successors for the time being appointed in accordance with the terms of the Indenture.

 

Perpetual Cumulative Subordinated Bonds means three series of the Company’s perpetual capital securities in aggregate principal amounts of €203 million, $114 million and €136 million, respectively, issued under a prospectus dated January 28, 1996, June 2, 1995 and October 9, 1996, respectively.

 

Person has the meaning set forth in the Base Indenture.

 

Regular Record Date means the February 1, May 1, August 1 or November 1 of each year, as the case may be, immediately preceding an Interest Payment Date.

 

Relevant Date means:

 

(a)                               in respect of any payment other than a Winding-Up Claim, the date on which such payment first becomes due and payable but, if the full amount of the monies payable on such date has not been received by the Trustee on or prior to such date, the “Relevant Date” means the date 

 

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on which such monies shall have been so received and notice to that effect shall have been given to the holders in accordance with Section 106 of the Base Indenture; and

 

(b)                               in respect of a Winding-Up Claim, the date which is one day prior to the commencement of a Winding-Up, or the date that is one day prior to the date of redemption of the Subordinated Notes, as applicable.

 

Securities has the meaning set forth in the Base Indenture.

 

Senior Creditors means all the present and future unsubordinated creditors of the Company.

 

Senior Debt means indebtedness of the Company held by one or more of its Senior Creditors as Senior Creditors.

 

Solvency II Directive means Directive 2009/138/EC of the European Union of November 25, 2009 and the implementing measures adopted by the European Commission thereunder.

 

Solvent means the Company is (a) able to pay its debts to Senior Creditors as they fall due and (b) the Company’s assets exceed its liabilities (other than its liabilities to Persons who are not Senior Creditors). For the purposes of this definition, “assets” refers to the Company’s non-consolidated gross assets and “liabilities” means its non-consolidated gross liabilities, in each case as shown on the Company’s then latest published audited balance sheet but adjusted for contingencies and for subsequent events in such manner and to such extent as the Executive Board, the Company’s auditors or, as the case may be, the Company’s liquidator may determine.

 

Subordinated Notes has the meaning specified in the Recitals.

 

Successor Jurisdiction has the meaning set forth in Section 11.1.

 

Supervisory Authority means De Nederlandsche Bank N.V., or such other governmental authority in the Netherlands (or any Successor Jurisdiction) having primary supervisory authority with respect to supplementary prudential aspects of AEGON N.V. in accordance with the relevant directives of the European Union applicable to AEGON N.V.

 

Tax Event has the meaning specified in Section 3.3(a).

 

Undertaking means a corporate body, partnership, limited partnership, cooperative or an incorporated association carrying on a trade or business with or without a view to profit in which the Company has a direct or indirect financial, commercial or contractual majority interest.

 

Winding-Up means a winding-up, bankruptcy or moratorium (vereffening na ontbinding, faillissement or surseance van betaling) of the Company.

 

Winding-Up Claim means, in a Winding-Up (other than in connection with a moratorium (surseance van betaling)), amounts in respect of the aggregate principal amount of the Subordinated Notes (whether or not yet due), together with any accrued but unpaid Interest that has not been cancelled in accordance with Section 2.4(d) or Section 2.4(e), which have not been satisfied on the date of a Winding-Up.

 

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2.            GENERAL TERMS AND CONDITIONS OF THE SUBORDINATED NOTES

 

2.1         Designation and Principal Amount

 

The aggregate principal amount of Subordinated Notes which may be authenticated and delivered under this Indenture is unlimited.

 

2.2         Maturity

 

Unless otherwise redeemed or purchased and cancelled, but subject to the conditions set forth in Section 3.6, the principal amount of the Subordinated Notes shall be due and payable on February 15, 2042.

 

2.3         Form, Issuance, Registration and Exchange

 

The Subordinated Notes shall:

 

(a)          be issued as Securities in minimum denominations of $25 and integral multiples thereof represented by one or more Global Securities, and shall not be exchangeable for definitive Subordinated Notes except in the limited circumstances as provided in Section 12.1; and

 

(b)          be issued as Global Securities deposited with or on behalf of DTC or its nominee and registered in the name of Cede & Co., as nominee of DTC; provided, however, (i) such Global Securities may not be transferred except as a whole by DTC to a nominee or a successor to DTC, unless and until the Subordinated Notes are exchanged for definitive Subordinated Notes in the limited instances as provided in Section 12.1; (ii) beneficial interests in Global Securities shall be shown on, and transfers thereof shall be effected only through, the book-entry records maintained by DTC and its direct and indirect participants, including Euroclear and Clearstream, Luxembourg; and (iii) so long as DTC, or its nominee, is the holder of the Global Securities, it shall be considered the sole holder of the Global Securities for all purposes under the Indenture.

 

2.4         Payments

 

(a)          Interest Rate.

 

Subject to Section 2.4(d) and Section 2.4(e), the Subordinated Notes shall bear Interest for any full Interest Period at a fixed rate per annum on their outstanding principal amount equal to 8.00% (the Interest Rate). Interest shall be computed and paid on the basis of a 360-day year consisting of 12 months of 30 days each. If any Interest Payment Date, any redemption date, the Scheduled Maturity Date or the Final Payment Date of the Subordinated Notes falls on a day that is not a Business Day, the Company shall make any required payment on the next succeeding Business Day, and no additional Interest shall accrue in respect of the payment made on the next succeeding Business Day.

 

(b)          Interest Period.

 

Subject to the conditions contained in the Indenture (including the Company’s right or obligation to cancel Interest Payments pursuant to Section 2.4(d) and Section 2.4(e)), Interest accrues on the Subordinated Notes from the Issue Date until the full outstanding principal amount of the Subordinated Notes is paid or duly made available for final payment. Interest

 

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shall accrue from (and including) the immediately preceding Interest Payment Date or from (and including) the Issue Date, in the case of the first Interest Payment Date, to (but excluding) the next succeeding applicable Interest Payment Date (each, an Interest Period). The Company shall make Interest Payments through the Paying Agent to the Person in whose name a Subordinated Note is registered at the close of business on the Regular Record Date. Each Subordinated Note shall cease to bear Interest from the relevant date on which payment is due, unless, upon due presentation, payment of principal is improperly withheld or refused. In such event, each Subordinated Note shall continue to bear Interest at the Interest Rate as provided herein.

 

(c)          Interest Payment Dates.

 

Subject to Section 2.4(d) and Section 2.4(e), Interest shall be payable quarterly in arrears in equal payments for any full Interest Period on February 15, May 15, August 15 and November 15 of each year, commencing on May 15, 2012 (each such date an Interest Payment Date).

 

(d)          Mandatory Cancellation of Interest Payments

 

(i)            If, on the 20th Business Day preceding any Interest Payment Date, the Company is subject to a Mandatory Cancellation Condition, then, unless the Mandatory Cancellation Condition is waived by the Company’s Supervisory Authority, the Company shall cancel such Interest Payment by giving written notice of the Mandatory Cancellation Condition to the Trustee, the Paying Agent and the holders of Subordinated Notes not less than 10 Business Days prior to the relevant Interest Payment Date.

 

(ii)           Interest Payments cancelled pursuant to Section 2.4(d)(i) shall (A) not accumulate or be payable at any time thereafter, and holders of the Subordinated Notes shall have no right thereto, whether in a Winding-Up or otherwise and (B) be at the sole disposal of the Company.

 

(e)          Optionally Cancelled Payment

 

(i)            The Company has the option at any time and from time to time, in its sole discretion and for any reason, to cancel all or part of any Interest Payment that would in the absence of such election be due and payable on the relevant Interest Payment Date by giving written notice to the Trustee, the Paying Agent and the holders of Subordinated Notes not less than 10 Business Days prior to the relevant Interest Payment Date.

 

(ii)           Interest Payments cancelled pursuant to Section 2.4(e)(i) shall (A) not accumulate or be payable at any time thereafter, and holders of the Subordinated Notes shall have no right thereto, whether in a Winding-Up or otherwise and (B) be at the sole disposal of the Company.

 

(f)           Restrictions Following Cancellation of Interest Payments

 

If, on any Interest Payment Date, an Interest Payment scheduled to be made on such date is not paid in full, the Company shall not, and the Company’s Executive Board shall not, to the fullest extent permitted by applicable law, recommend to the Company’s shareholders, as applicable,

 

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and the Company and the Company’s Executive Board, as applicable, shall otherwise act to prevent:

 

(i)            The declaration or payment of any distribution or dividend (other than a distribution or dividend declared by our Executive Board before the Company gives notice that payment of such Interest Payment is not to be paid in full) or the making of any other payment (including any interest payment) on, and shall procure that no distribution or dividend or other payment is made on, any Junior Securities or Junior Guarantees; or

 

(ii)           the redemption, purchase, cancellation, reduction or acquisition in any other way of any Junior Securities or Junior Guarantees,

 

in each case unless or until the earlier of: (x) an Interest Payment scheduled to be made on any subsequent Interest Payment Date has been paid in full (i) to the holders of the Subordinated Notes or (ii) to a designated third party trust account for the benefit of the holders of the Subordinated Notes pending payment by the Paying Agent to the holders of the Subordinated Notes on such subsequent Interest Payment Date, or (y) the redemption or purchase and cancellation of the Subordinated Notes in full; provided that this Section 2.4(f) shall not apply to interest payments on any Existing Capital Securities outstanding on the date of the Indenture that are mandatory in accordance with the terms and conditions of such capital securities.

 

(g)          Set-Off

 

By purchasing Subordinated Notes, the holders of Subordinated Notes and the Trustee shall be deemed to have waived any right of set off, counterclaim or combination of accounts with respect to the Subordinated Notes or the Indenture (or between the Company’s obligations regarding the Subordinated Notes and any liability owed by a holder of Subordinated Notes or the Trustee to the Company) that the holders of Subordinated Notes or the Trustee might otherwise have against the Company. Each holder of Subordinated Notes shall, by virtue of holding any Subordinated Note, be deemed to have waived all such rights of set-off.

 

3.            REDEMPTION, CONVERSION, SUBSTITUTION, VARIATION AND PURCHASES

 

3.1         General

 

Any redemption made in accordance with this Article 3 shall be made in accordance with Section 1102, Section 1104 and Section 1105 of the Base Indenture.

 

3.2         Optional Redemption

 

Subject to Section 3.6 and subject to the Company first obtaining any required consent of its Supervisory Authority, the Company may, by giving notice in accordance with Section 3.5, redeem the Subordinated Notes in whole (but not in part) at its option, on August 15, 2017, or on any Interest Payment Date thereafter at the Base Redemption Price.

 

3.3         Redemption for Tax Reasons

 

(a)          Subject to Section 3.6 and subject to the Company first obtaining any required consent of its Supervisory Authority, the Company may, by giving notice in accordance with Section 3.5, redeem in whole (but not in part) the Subordinated Notes at their Base Redemption Price if a 

 

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Tax Event occurs. A Tax Event shall occur if the Company determines that immediately prior to the giving of the notice of redemption pursuant to Section 3.5, that on the next Interest Payment Date any of the following is true or would be true, in each case as a result of a Change in Law:

 

(i)            the Company would, for reasons outside its control, be unable to make the Interest Payment on such Interest Payment Date without being required to pay Additional Amounts, and the Company cannot avoid the requirement or circumstance by taking reasonable measures available to it;

 

(ii)           payments of amounts in respect of Interest on the Subordinated Notes would be treated as “distributions” within the meaning of Section II of the Dividend Withholding Tax Act 1965 (Wet op de dividendbelasting 1965, or such other provision as may from time to time supersede or replace Section II of the Dividend Withholding Tax Act 1965 for the purposes of such definition), and the Company cannot avoid the requirement or circumstance by taking such measures as it (acting in good faith) deems appropriate; or

 

(iii)          there is more than an insubstantial risk that the Company will not obtain substantially full relief for the purposes of Dutch corporation tax for any payment of Interest, and the Company cannot avoid this risk by taking such measures as it (acting in good faith) deems appropriate.

 

(b)          In the case of redemption upon the occurrence of a Tax Event, the Company shall, before it gives a notice of redemption pursuant to Section 3.5, deliver to the Trustee a written legal opinion of independent Dutch counsel (or independent counsel in a Successor Jurisdiction, if applicable) of recognized standing, selected by the Company, in a form satisfactory to the Trustee, confirming that the Company is entitled under the terms of this Section 3.3 to exercise its right of redemption. The Trustee shall accept such opinion as sufficient evidence of the conditions set out in Section 3.3(a), which shall be conclusive and binding on the holders of Subordinated Notes.

 

(c)          Change in Law means any change or amendment to the laws of the Netherlands, or any change in the application of official or generally published interpretation of such laws, or any interpretation or pronouncement by any relevant tax authority that provides for a position with respect to such law or regulations that differs from the previously generally accepted position in relation to similar transactions or which differs from any specific written confirmation given by a tax authority in respect of the Subordinated Notes, which change or amendment becomes effective, or is enacted by Act of Parliament or made by Statutory Instrument, on or after January 24, 2012, provided that if Additional Amounts are payable on account of taxes imposed by a Successor Jurisdiction, a Tax Event shall not have occurred unless such Additional Amounts are required to be paid as a result of a change in law affecting taxation in such Successor Jurisdiction occurring on or after the date that such jurisdiction becomes a Successor Jurisdiction.

 

(d)          Section 1109 of the Base Indenture shall not apply to the Subordinated Notes.

 

3.4         Redemption, Conversion, Substitution, Exchange or Variation for Regulatory Reasons

 

If a Capital Disqualification Event occurs, the Company may:

 

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(a)          subject to Section 3.6 and subject to the Company first obtaining any required consent of its Supervisory Authority, by giving notice in accordance with Section 3.5, redeem the Subordinated Notes in whole (but not in part) at their Base Redemption Price; or

 

(b)          subject to compliance with applicable regulatory and legal requirements, elect, at any time, and without the consent of the holders of the Subordinated Notes, to convert, substitute or exchange the Subordinated Notes in whole (but not in part) for Compliant Securities, or vary the terms of the Subordinated Notes, such that the Subordinated Notes, after giving effect to such variation, become or do not cease to be Compliant Securities; provided that any conversion, substitution, exchange or variation of the Subordinated Notes shall be (x) made after notice is given to the holders of the Subordinated Notes, the Paying Agent and the Trustee not less than 30 days nor more than 60 days prior to the date fixed for conversion, substitution, exchange or variation, as applicable, and (y) subject to the Company first obtaining the required consent of its Supervisory Authority.

 

Prior to the publication of any notice of conversion, substitution, exchange or variation pursuant to Section 3.4(b), the Company shall first deliver to the Trustee an Officers’ Certificate, certifying that the securities to be offered on conversion, in substitution or in exchange for the Subordinated Notes or the terms of the Subordinated Notes as so varied are not materially less favorable to the holders of the Subordinated Notes, from a financial point of view (as reasonably determined by the Company).

 

3.5         Notice of Redemption

 

In the event of redemption pursuant to Section 3.2, Section 3.3 or Section 3.4(a), the Company shall give written notice to the Trustee, the Paying Agent and holders of the Subordinated Notes not less than 30 nor more than 60 days prior to the date fixed for redemption. Subject to the provisions of Section 3.6, any notice of redemption is irrevocable and must be given in accordance with Sections 1102 and 1104 of the Base Indenture. If the Base Redemption Price in respect of any of the Subordinated Notes is improperly withheld or refused and is not paid by the Company, any Interest Payments otherwise payable on the Subordinated Notes shall continue to be payable until the Base Redemption Price is actually paid, subject to Section 2.4(d) and Section 2.4(e).

 

3.6         Postponement of Redemption and Payment at Maturity

 

(a)          If, on the 10th Business Day preceding any date fixed for redemption of the Subordinated Notes or the Scheduled Maturity Date, as the case may be, the Company is subject to a Mandatory Postponement Condition, then, unless the Mandatory Postponement Condition is waived by the Company’s Supervisory Authority, such date fixed for redemption or the Scheduled Maturity Date (as the case may be), and payment of the Base Redemption Price thereon, shall be postponed and written notice of the Mandatory Postponement Condition shall be given to the Trustee and the Paying Agent. The payment of the Base Redemption Price which has been postponed pursuant to this Section 3.6(a) shall become due and payable, and further written notice shall be given to the Trustee and the Paying Agent, on the Final Payment Date.

 

(b)          Final Payment Date means the date falling 10 Business Days after the date on which the Company determines that (i) the Company is Solvent and that payment of the Base Redemption Price on such Final Payment Date would not result in the Company becoming not Solvent and (ii) a Capital Adequacy Event has not occurred or, if it has occurred, does not continue to exist or that payment of the Base Redemption Price on such Final Payment Date would not result in a 

 

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Capital Adequacy Event occurring or continuing to exist or (iii) the Mandatory Postponement Condition has been waived by the Company’s Supervisory Authority.

 

3.7         Purchases

 

Subject to the Company first obtaining any required consent of its Supervisory Authority, the Company may purchase on the open market at any time Subordinated Notes in any manner and at any price. Purchased Subordinated Notes may be held, resold or, at the Company’s option, cancelled, as provided in Section 3.8.

 

3.8         Cancellation

 

Cancellation of any Subordinated Notes so redeemed or purchased by the Company shall be effected by reducing the principal amount of the Global Securities, and any Subordinated Notes so cancelled may not be reissued or resold and the Company’s obligations in respect of any such cancelled Subordinated Notes shall be discharged.

 

4.            REMEDIES

 

4.1         Non-Payment When Due; Limitation of Remedies

 

(a)          A Non-Payment Event shall occur with respect to the Subordinated Notes only if the Company does not elect to cancel an Interest Payment, is not obliged to cancel an Interest Payment or is not required to postpone the payment of the Base Redemption Price and nevertheless fails to pay or set aside for payment the amount due to satisfy, when due, any such Interest Payment or payment of the Base Redemption Price, and such failure continues for 14 days.

 

(b)          If a Non-Payment Event occurs and is continuing with respect to the Subordinated Notes, the Trustee may pursue all legal remedies available to it, including the commencement of a judicial proceeding in the Netherlands (but not elsewhere) for the collection of the sums due and unpaid or a Winding-Up, subject to the limitations that may exist under the law of the Netherlands in bankruptcy or insolvency proceedings, but the Trustee may not, in the case of a Non-Payment Event in respect of an Interest Payment, declare the principal amount of any outstanding Subordinated Note to be due and payable.

 

(c)          Subject to the provisions of this Section 4.1, and without prejudice to Sections 504 and 505 of the Base Indenture, the Trustee may at its discretion and without further notice institute such proceedings against the Company as it may think fit to enforce any term or condition binding on the Company under this Indenture and the Subordinated Notes (other than for the payment of any principal or satisfaction of any Interest Payments in respect of the Subordinated Notes); provided that the Company shall not by virtue of the institution of any such proceedings be obligated to pay any sum or sums, in cash or otherwise, sooner than it would otherwise have been obligated to pay.

 

(d)          The Trustee shall not be bound to take any of the foregoing actions against the Company to enforce the terms of this Indenture or the Subordinated Notes unless (i) it shall have been so requested by an extraordinary resolution or in writing by the holders of at least 25% in principal amount of the Subordinated Notes then outstanding and (ii) it shall have been offered reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request.

 

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(e)          Notwithstanding the foregoing, in accordance with Section 508 of the Base Indenture, holders of the Subordinated Notes have the absolute and unconditional right to institute suit for the enforcement of any Interest Payment that the Company does not timely elect to cancel or is not obliged to cancel, or any payment of the Base Redemption Price that the Company is not required to postpone, and such right may not be impaired without the consent of the holder of the Subordinated Notes.

 

(f)           Without prejudice to Sections 504 and 505 of the Base Indenture, the Trustee is and shall be fully authorized by each and any holder of record of a Subordinated Note to commence proceedings for a Winding-Up in the Netherlands.

 

(g)          Sections 501, 502 and 503 of the Base Indenture shall not apply with respect to the Subordinated Notes.

 

5.            SUBORDINATION

 

5.1         Agreement to Subordinate

 

The Company covenants and agrees, and each holder of Subordinated Notes issued hereunder, by such holder’s acceptance thereof, likewise covenants and agrees, that the Subordinated Notes issued hereunder (i)(A) shall rank pari passu with respect to each other, (B) shall rank pari passu with other Parity Securities, Parity Guarantees and other debt obligations expressed to be similarly subordinated as and, accordingly, ranking pari passu with, the Subordinated Notes, such other Parity Guarantees and Parity Securities, (ii) are and shall be subordinated (achtergesteld), and accordingly be subject in right of payment to prior payment in full upon liquidation, moratorium of payments or bankruptcy of the Company, to the claims of Senior Creditors, present and future, and (iii) shall rank in priority to any Junior Securities and Junior Guarantees.

 

5.2         Section 1402 of the Base Indenture

 

With respect to the Subordinated Notes, the provisions of Section 5.1 replace in their entirety Section 1402 of the Base Indenture. In addition, with respect to the Subordinated Notes, Section 1403 through Section 1416 of Article Fourteen of the Base Indenture is hereby amended by replacing the term “Senior Debt” as used in such sections with the term “Senior Debt” as defined in this Eighth Supplemental Indenture.

 

6.            COVENANTS OF THE COMPANY

 

6.1         Listing

 

The Company shall use reasonable efforts to maintain the listing of the Subordinated Notes on the stock exchange on which they were listed on or about the Issue Date or, if it is unable to do so having used such efforts or if the maintenance of any such listing is agreed by the Trustee to be unduly burdensome, use all reasonable efforts to obtain and maintain a quotation or listing of Subordinated Notes on such other stock exchange or exchanges or securities market or markets as the Company may (with the prior written approval of the Trustee) decide so that the Subordinated Notes are listed on at least one stock exchange or securities market.

 

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6.2         Officers’ Certificate on Cancellation or Postponement

 

If the Company elects to or is obliged to cancel any Interest Payment in accordance with Section 2.4(d) or Section 2.4(e) or is obliged to postpone payment of the Base Redemption Price in accordance with Section 3.6, it shall deliver to the Trustee and the Paying Agent, no later than ten (10) Business Days preceding the relevant Interest Payment Date, an Officers’ Certificate, certifying that it is obliged to cancel the Interest Payment pursuant to Section 2.4(d), has elected to cancel the Interest Payment pursuant to Section 2.4(e) or is obliged to postpone payment of the Base Redemption Price pursuant to Section 3.6, as applicable.

 

7.            FORM OF SUBORDINATED NOTES

 

7.1         Form of Subordinated Notes

 

The Subordinated Notes shall be substantially in the form of Schedule 1 hereto. Schedule 1 hereto is hereby incorporated into and expressly made a part of this Eighth Supplemental Indenture.

 

8.            ORIGINAL ISSUE OF SUBORDINATED NOTES

 

8.1         Original Issue of Subordinated Notes

 

Subordinated Notes in the initial aggregate principal amount of up to $500,000,000 may, upon execution of this Eighth Supplemental Indenture, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver such Subordinated Notes to or upon the written order of the Company, in accordance with Section 303 of the Base Indenture.

 

There is no limit on the amount of Subordinated Notes which may be issued pursuant to this Eighth Supplemental Indenture.

 

9.            WINDING UP

 

9.1         Winding Up

 

If at any time an order is made, or an effective resolution is passed, for a Winding-Up (except in any such case a solvent Winding-Up solely for the purpose of a reconstruction, amalgamation or the substitution of a successor in business, the terms of which reconstruction, amalgamation or substitution (a) have previously been approved in writing by the Trustee or by an extraordinary resolution of the Company’s shareholders and (b) do not provide that the Subordinated Notes shall thereby become payable), holders of the Subordinated Notes shall, in respect of each Subordinated Note held, be entitled to a Winding-Up Claim, which Winding-Up Claim shall rank for payment in accordance with Section 5.1.

 

10.         SATISFACTION AND DISCHARGE

 

10.1       Satisfaction and Discharge

 

The Company covenants and agrees, and each holder of Subordinated Notes issued hereunder, by such holder’s acceptance thereof, likewise covenants and agrees, that all Subordinated Notes shall be issued as Securities subject to the provisions of Article 4 of the Base Indenture.

 

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11.         TAXATION; ADDITIONAL AMOUNTS

 

11.1       General

 

Any amounts to be paid by the Company on the Subordinated Notes (including principal, Interest Amounts, Accrued Interest Payments and payments in respect of a Winding-Up) shall be made without withholding of or deduction for any present or future taxes, duties, assessments or other charges imposed by the government of the Netherlands or the government of a jurisdiction in which a successor to the Company is organized (a Successor Jurisdiction), unless the withholding or deduction of such taxes, duties, assessments or charges is required by law. In that event, subject to the Company first obtaining any required consent of its Supervisory Authority, and subject to Section 2.4(d), Section 2.4(e) and Section 3.6, the Company shall pay such additional amounts (Additional Amounts), as may be necessary in order that the net amounts received by holders of Subordinated Notes after such withholding or deduction equal the respective amounts of principal and interest which would have been received in respect of the Subordinated Notes in the absence of such withholding or deduction, except that no such Additional Amounts shall be payable in relation to any payment with respect to any Subordinated Notes:

 

(a)          to, or to a third party on behalf of, a holder of the Subordinated Notes who is liable to such taxes, duties, assessments or governmental charges in respect of such Subordinated Notes by reason of such holder having some connection with the Netherlands or a Successor Jurisdiction, as applicable, other than the mere holding of such Subordinated Notes;

 

(b)          to, or to a third party on behalf of, a holder of the Subordinated Notes, if such withholding or deduction may be avoided by complying with any statutory requirement or by making a declaration of non-residence or other similar claim for exemption to the relevant tax authority if, following a request to do so, such holder or third party fails to comply with such requirement;

 

(c)          to, or to a third party on behalf of, a holder of the Subordinated Notes, that is a partnership, or a holder of the Subordinated Notes that is not the sole beneficial owner of the Subordinated Notes or which holds the Subordinated Notes in a fiduciary capacity, to the extent that any of the members of the partnership, the beneficial owner or the settler or beneficiary with respect to the fiduciary would not have been entitled to the payment of an Additional Amount had each of the members of the partnership, the beneficial owner, settler or beneficiary (as the case may be) received directly his beneficial or distributive share of the payment;

 

(d)          presented for payment (where presentation is required) more than 30 days after the Relevant Date except to the extent that the holder of the Subordinated Notes would have been entitled to such Additional Amounts on presenting the same for payment on the last day of such period of 30 days; or

 

(e)          where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to the European Union Council Directive of June 3, 2003 on the taxation of savings income, implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 or any law implementing or complying with, or introduced in order to conform to such Directive, or similar measures adopted by a number of third countries and territories.

 

15

 

References herein to principal, Interest Amounts and/or Accrued Interest Payments shall be deemed to include any Additional Amounts that may become payable pursuant to the terms of this Indenture.

 

11.2       Section 1006 of the Base Indenture

 

The provisions of Section 1006 of the Base Indenture are hereby replaced by Section 11.1 hereof and shall not apply with respect to the Subordinated Notes.

 

12.         MISCELLANEOUS

 

12.1       Issuance of Definitive Subordinated Notes

 

(a)          So long as DTC holds the Global Securities, the Global Securities shall not be exchangeable for definitive Subordinated Notes unless: (i) DTC notifies the Trustee that it is unwilling or unable to continue to hold the book-entry Subordinated Notes, or DTC ceases to be a clearing agency registered under the Exchange Act and the Trustee does not appoint a successor to DTC which is registered under the Exchange Act within 120 days; (ii) a Non-Payment Event has occurred and is continuing; (iii) in the event of a Winding-Up, it fails to make a payment in respect of the Subordinated Notes when due; or (iv) at any time following a determination by the Company in its sole discretion that the Global Securities representing the Subordinated Notes should be exchanged for definitive Subordinated Notes in registered form.

 

(b)          Each Person having an ownership or other interest in the Subordinated Notes must rely exclusively on the rules and procedures of DTC or any participant therein, as the case may be, and any agreement with any participant of DTC or any participant therein, as the case may be, or any other securities intermediary through which that Person holds its interest to receive or direct the delivery of possession of any definitive Subordinated Notes.

 

(c)          Any definitive Subordinated Notes shall be issued in registered form only in denominations of $25 and any integral multiples thereof and shall be substantially in the form of the Global Security included as Schedule 1 hereto with such insertions, omissions, substitutions and other variations as appropriate for definitive Subordinated Notes as evidenced by the execution of such securities. To the extent permitted by law, the Company and the Trustee are entitled to treat the Person in whose name any definitive Subordinated Note is registered as its absolute owner.

 

(d)          Payments in respect of definitive Subordinated Notes shall be made to the Person in whose name the definitive Subordinated Notes are registered as it appears in the register. Payments shall be made in respect of the Subordinated Notes by transfer to the holder’s account in New York. Definitive Subordinated Notes must be presented to the Paying Agent for redemption.

 

(e)          If the Company issues definitive Subordinated Notes in exchange for Global Securities, DTC, as holder of the Global Securities, shall surrender the Global Securities against receipt of the  definitive Subordinated Notes, cancel the book-entry securities of that series and distribute the definitive Subordinated Notes of that series to the Person in the amounts that DTC determines.

 

(f)           If definitive Subordinated Notes are issued in the limited circumstances as set forth above, such definitive Subordinated Notes may be transferred in whole or in part in denominations of any whole number of Subordinated Notes upon surrender of the definitive Subordinated Notes certificates together with the form of transfer endorsed on it, duly completed and executed at

 

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the specified office of the Trustee. If only part of a Subordinated Notes certificate is transferred, a new Subordinated Notes certificate representing the balance not transferred shall be issued to the transferor.

 

12.2       Further Issuances

 

The Company may from time to time, without the consent of the holders of the Subordinated Notes, create and issue further subordinated notes ranking equally in all respects (or in all respects save for the date from which interest thereon accrues and the amount of the first payment of interest on such further subordinated notes) and such that the further issuance of subordinated notes shall be consolidated and form a single series with the outstanding Subordinated Notes; provided that any further subordinated notes that are not fungible with the Subordinated Notes for U.S. federal income tax purposes shall have a unique CUSIP and any other identifying number assigned to such further subordinated notes. Any further issuance of subordinated notes shall be issued pursuant to an additional supplemental indenture.

 

12.3       Ratification of Base Indenture; Eighth Supplemental Indenture Controls

 

The Base Indenture, as supplemented by this Eighth Supplemental Indenture, is in all respects ratified and confirmed. This Eighth Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. The provisions of this Eighth Supplemental Indenture shall supersede the provisions of the Base Indenture to the extent the Base Indenture is inconsistent herewith with respect to the Subordinated Notes and any other Subordinated Notes issued hereunder.

 

12.4       Trustee Not Responsible for Recitals

 

The recitals contained herein are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the accuracy thereof. The Trustee makes no representation as to the validity or sufficiency of this Eighth Supplemental Indenture or the Subordinated Notes. The Trustee shall not be accountable for the use or application by the Company of the Subordinated Notes or the proceeds thereof.

 

12.5       Governing Law

 

This Eighth Supplemental Indenture and each Subordinated Note shall be governed by and construed in accordance with the laws of the State of New York, except for any provision of Article 5 and Article 9 relating to subordination, which provisions shall be governed by and construed in accordance with the laws of the Netherlands.

 

12.6       Severability

 

If any provision in the Indenture or in the Subordinated Notes is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

12.7       Counterparts

 

The parties may sign any number of copies of this Eighth Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. Any signed copy shall be sufficient proof of this Eighth Supplemental Indenture.

 

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12.8                    Paying Agent

 

The parties agree that Citibank, N.A., as Paying Agent, shall be entitled to the benefit of all the rights, protections, privileges and immunities, as applicable, contained in the Indenture with respect to the Trustee, as if set forth herein.

 

13.                            DEFINITION OF OFFICERS’ CERTIFICATE, COMPANY REQUEST AND COMPANY ORDER AMENDED

 

With regard to the Subordinated Notes only, the definition of “Officers’ Certificate” in Section 101 of the Base Indenture is hereby amended by deleting the first occurrence of the word “and” from the second line of the first sentence of the definition and replacing it with the word “or.”

 

With regard to the Subordinated Notes only, the definitions of “Company Request” and “Company Order” in Section 101 of the Base Indenture are hereby amended by deleting the first occurrence of the word “and” from the third line of the definition and replacing it with the word “or.”

 

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IN WITNESS WHEREOF, the parties hereto have caused this Eighth Supplemental Indenture to be duly executed as of the day and year first above written.

 

 

 

	
 
    	
AEGON N.V.
    
	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ C.M. van Katwijk
    	
 
    
	
 
    	
 
    	
Name: C.M. van Katwijk
    
	
 
    	
 
    	
Title: Executive Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON   TRUST COMPANY,
   N.A.
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Linda Garcia
    	
 
    
	
 
    	
 
    	
Name: Linda Garcia
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIBANK, N.A.
    
	
 
    	
as Paying Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Louis Piscitelli
    	
 
    
	
 
    	
 
    	
Name: Louis Piscitelli
    
	
 
    	
 
    	
Title: Vice President
    

 

 

SCHEDULE 1

 

FORM OF 8.00% NON-CUMULATIVE SUBORDINATED NOTES DUE 2042

 

[Face of Note]

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A REGISTERED SECURITY, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

The rights of the holders of the Subordinated Notes are, to the extent and in the manner set forth in Article 14 of the Base Indenture and Article 5 of the Eighth Supplemental Indenture, subordinated to Senior Debt, and this Note is issued subject to the provisions of Article 14 of the Base Indenture and Article 5 of the Eighth Supplemental Indenture, and the holder of this Note, by accepting the same, agrees to and shall be bound by such provisions. The terms of this paragraph are governed by, and shall be construed in accordance with, the laws of the Netherlands.

 

AEGON N.V.

 

8.00% Non-Cumulative Subordinated Notes due 2042

 

	
No. [ ]
    	
 
    
	
CUSIP No.:
    	
007924 608
    
	
ISIN No.:
    	
US0079246080
    

 

AEGON N.V., a limited liability public company duly organized and existing under the laws of the Netherlands (herein called the Company, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, the principal sum of [·] MILLION U.S. DOLLARS ($[·]) on February 15, 2042, unless otherwise redeemed or purchased and cancelled in accordance with the Indenture, subject to the Company’s obligation to postpone such repayment, and to pay Interest thereon, subject to the Company’s right or obligation to cancel Interest Payments in accordance with the Indenture, from (and including) an Interest Payment Date (or the Issue Date, in respect of the first Interest Payment Date, to (but excluding) the immediately following Interest Payment Date, quarterly in arrears on February 15, May 15, August 15 and November 15 in each year, commencing on May 15, 2012, and at such other times as are set forth in the Indenture at the rate of 8.00% per annum, until the principal hereof is paid or made available for payment. The Interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such Interest, which shall be the February 1, May 1, August 1 or November 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. If Interest is required to be calculated for any period less than a year, it shall be calculated based on a 360-day year consisting of twelve 30-day months. If any Interest Payment Date, any redemption date, the Scheduled Maturity Date or the Final Payment Date of the Subordinated Notes falls on a day that is not a Business Day, the Company shall make the required payment on the next succeeding Business Day, and no additional Interest shall accrue in respect of the payment made on that next succeeding Business Day.

 

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Subject to the immediately following paragraph, if applicable, any payment in respect of this Note which is payable, and is paid or duly provided for, on any Interest Payment Date or on any date on which the Company makes any payment (including any payment of Additional Amounts in accordance with Article 11 of the Eighth Supplemental Indenture) shall be paid in U.S. dollars to the registered holder, including through a Paying Agent by wire-transfer of same-day funds to the holder or, at the option of the Company, by check mailed to the address of the holder as it appears in the Company’s Security Register. For so long as this Note is held in global form, all payments shall be made in U.S. dollars by wire-transfer of same-day funds.

 

The Company may under certain circumstances, and in accordance with the Indenture, cancel all or part of any Interest Payment that would in the absence of such election be scheduled to be made on the relevant Interest Payment Date. Any Interest on this Note which is not paid or duly provided for on any applicable Interest Payment Date shall not accumulate or be payable at any time thereafter, and holders shall have no right to receive such Interest at any time, whether in a Winding-Up or otherwise.

 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

2

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
 
    	
AEGON N.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

Attest:

 

This is one of the Subordinated Notes of the series designated herein and referred to in the Eighth Supplemental Indenture.

 

Dated:   January 31, 2012

 

 

 

	
 
    	
The Bank of New York Mellon Trust Company, N.A.
    
	
 
    	
as   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Authorized   Signatory
    

 

3

 

[Reverse of Note]

 

This Note is one of a duly authorized issue of Securities of the Company (herein called the Subordinated Notes), issued and to be issued in one or more series under an indenture, dated as of October 11, 2001 (the Base Indenture), between the Company, AEGON Funding Company LLC and The Bank of New York Mellon Trust Company, N.A., as Trustee and successor in interest to Citibank, N.A. (herein called the Trustee, which term includes any successor trustee under the Indenture), as the same has been supplemented and amended from time to time, and as shall be further supplemented and amended by an eighth supplemental indenture dated January 31, 2012 (herein called the Eighth Supplemental Indenture and together with the Base Indenture, the Indenture) and reference is hereby made to the Indenture for a statement of the terms of the Subordinated Notes and the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the holders of Senior Debt and the holders of the Subordinated Notes and of the terms upon which the Subordinated Notes are, and are to be, authenticated and delivered. The Subordinated Notes are subject to all such terms. This Note is one of the series designated on the face hereof and there is no limitation on the amount of Subordinated Notes of such series which may be issued. Terms not defined in this Note shall have the meaning assigned to such terms in the Indenture.

 

All payments on this Note shall be conditional upon, (a) in the case of any Interest Payment, the Company not being subject to the Mandatory Cancellation Condition and (b) in the case of payment of the Base Redemption Price on any date fixed for redemption or the Scheduled Maturity Date, as the case may be, the Company not being subject to the Mandatory Postponement Condition, unless the Mandatory Cancellation Condition or the Mandatory Postponement Condition, as applicable, has been waived by the Company’s Supervisory Authority.

 

Mandatory Cancellation Condition means that, on the 20th Business Day preceding any Interest Payment Date, (a) the Company has determined that (i) the Company is not Solvent or (ii) payment of the Interest Payment (or part thereof) on such Interest Payment Date would result in the Company becoming not Solvent or (b) the Company is then subject to the Capital Adequacy Regulations and the Company has determined that (i) a Capital Adequacy Event has occurred and continues to exist or (ii) payment of the Interest Payment (or part thereof) on such Interest Payment Date would result in a Capital Adequacy Event occurring or continuing to exist.

 

Mandatory Postponement Condition means that, on the 10th Business Day preceding any date fixed for redemption of the Subordinated Notes or the Scheduled Maturity Date, as the case may be, (a) the Company has determined that (i) the Company is not Solvent or (ii) that payment of the Base Redemption Price on such date fixed for redemption or the Scheduled Maturity Date, as the case may be, would result in the Company becoming not Solvent or (b) the Company is then subject to the Capital Adequacy Regulations and the Company has determined that (i) a Capital Adequacy Event has occurred and continues to exist or (ii) payment of the Base Redemption Price on such date fixed for redemption or the Scheduled Maturity Date, as the case may be, would result in a Capital Adequacy Event occurring or continuing to exist.

 

The Subordinated Notes shall constitute direct, unsecured subordinated Securities of the Company, subject to the subordination provisions described herein and in the Indenture, and shall rank pari passu with respect to each other and any other Parity Securities or Parity Guarantees and in priority to any Junior Securities or Junior Guarantees.

 

If a Non-Payment Event occurs and is continuing with respect to the Subordinated Notes, the Trustee may pursue all legal remedies available to it, including the commencement of a judicial proceeding in the Netherlands (but not elsewhere) for the collection of the sums due and unpaid or a Winding-Up, subject to the 

 

4

 

limitations that may exist under the law of the Netherlands in bankruptcy or insolvency proceedings, but the Trustee may not, in the case of a Non-Payment Event in respect of an Interest Payment, declare the principal amount of any outstanding Subordinated Note to be due and payable.

 

Any amounts paid by the Company on the Subordinated Notes (including principal, Interest Amounts, Accrued Interest Payments and payments in respect of a Winding-Up) shall be made without withholding of or deduction for any present or future taxes, duties, assessments or other charges imposed by the government of the Netherlands or the government of a jurisdiction in which a successor to the Company is organized (a Successor Jurisdiction), unless the withholding or deduction of such taxes, duties, assessments or charges is required by law. In that event, subject to the Company first obtaining any required consent of its Supervisory Authority, and subject to the Company’s right to elect to cancel or any obligation to cancel any Interest Payment or any obligation to postpone payment of the Base Redemption Price, subject to the exceptions and limitations set forth in Article 11 of the Eighth Supplemental Indenture, the Company shall pay such additional amounts (Additional Amounts) as may be necessary in order that the net amounts received by holders of the Subordinated Notes after such withholding or deduction equal the respective amounts of principal and Interest which would have been received in respect of the Subordinated Notes in the absence of such withholding or deduction.

 

References herein to principal, Interest Amounts and/or Accrued Interest Payments shall be deemed to include any Additional Amounts that may become payable pursuant to the terms of this Indenture.

 

Except as provided in the Eighth Supplemental Indenture, the Subordinated Notes are not redeemable at the option of the Company prior to August 15, 2017.

 

Subject to the provisions of the Eighth Supplemental Indenture, the Subordinated Notes may be redeemed in whole (but not in part), at the option of the Company and without the consent of the holders of the Subordinated Notes or the Trustee, at the Base Redemption Price: (i) on August 15, 2017, or on any Interest Payment Date thereafter, (ii) upon the occurrence of a Tax Event, provided that the Company shall have already delivered to the Trustee a written legal opinion of independent Dutch counsel (or independent counsel in a Successor Jurisdiction, if applicable) of recognized standing, selected by the Company, in a form satisfactory to the Trustee, confirming that the Company is entitled under the terms of Section 3.3 of the Eighth Supplemental Indenture to exercise such right of redemption, and (iii) in the case of a Capital Disqualification Event as described below.

 

If a Capital Disqualification Event occurs, the Company may, (i) subject to the provisions set forth in the Indenture, and subject to the Company first obtaining any required consent of its Supervisory Authority, redeem the Subordinated Notes in whole (but not in part) at their Base Redemption Price; or (ii) subject to compliance with applicable regulatory and legal requirements, elect, at any time and without the consent of the holders of the Subordinated Notes, to convert, substitute or exchange the Subordinated Notes in whole (but not in part), for Compliant Securities, or vary the terms of the Subordinated Notes, such that the Subordinated Notes, after giving effect to such variation, become or do not cease to be Compliant Securities; provided that any conversion, substitution, exchange or variation of the Subordinated Notes shall be (x) made after notice is given to the holders of the Subordinated Notes, the Paying Agent and the Trustee not less than 30 days nor more than 60 days prior to the date fixed for conversion, substitution, exchange or variation, as applicable, and (y) subject to the Company first obtaining the required consent of its Supervisory Authority.

 

The indebtedness evidenced by this Note is, to the extent provided in the Indenture, subordinate and subject in right of payment to the prior payment in full of all claims of Senior Creditors, present and future, and this Note is issued subject to the provisions of the Indenture with respect thereto. Each holder of this Note, by accepting the same, (i) agrees to and shall be bound by such provisions; (ii) authorizes and directs the Trustee on his or her

 

5

 

behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided; and (iii) appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each holder hereof, by his or her acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Debt, whether now outstanding or hereafter created, incurred, assumed or guaranteed, and waives reliance by each such holder upon said provisions.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Subordinated Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the holders of a majority in principal amount of the Subordinated Notes at the time outstanding of each series to be affected. The Indenture also contains provisions permitting the holders of a majority in principal amount of the Subordinated Notes of each series at the time outstanding, on behalf of the holders of all Subordinated Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Subordinated Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees.

 

The Subordinated Notes of this series are issuable only in registered form without coupons in denominations of $25 and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Subordinated Notes of this series shall be represented by a Global Security.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

This Note is a Global Security and is subject to the provisions of the Indenture relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities.

 

This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York except for the subordination provisions contained herein and in the Indenture, which shall be governed by and construed in accordance with the laws of the Netherlands.

 

6

 

All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

7

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