Document:

Second Amendment to the Amended and Restated Credit and Guaranty Agreement

 Exhibit 10.3 
 Execution Copy 
 SECOND AMENDMENT 
 TO THE AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT 
 SECOND AMENDMENT, dated as
of November 22, 2005 (this “Amendment”), to the Amended and Restated Credit and Guaranty Agreement, dated as of March 5, 2003 (as amended by the First Amendment, dated October 3, 2003, and as further amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Houghton Mifflin Company (“HM”), Houghton Mifflin Holdings, Inc. (“Holding”), each lender from time to time party
to the Credit Agreement (the “Lenders”), CIBC World Markets Corp. and Goldman Sachs Credit Partners L.P. (“GSCP”), as Joint Lead Arrangers and Joint Bookrunners, GSCP and Deutsche Bank Securities Inc., as
Co-Syndication Agents, Canadian Imperial Bank of Commerce, as Administrative Agent and Collateral Trustee, Fleet Securities Inc. and Bank One, N.A., as Co-Documentation Agents, and General Electric Capital Corporation, as Senior Managing Agent.

 W I T N E S S E T H: 
 WHEREAS, HM and Holding have requested certain amendments to the Credit Agreement; 
 WHEREAS, HM has delivered notice to the Administrative Agent in accordance with Section 2.13 of the Credit Agreement terminating $75,000,000 of the
Revolving Commitments, so that the aggregate amount of the Revolving Commitments at the Second Amendment Effective Date is $250,000,000. 
 NOW THEREFORE, in consideration of the premises herein contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Defined Terms. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement. 
 2. Amendment to Section 1.1. 
 (a) Section 1.1 of the Credit Agreement is hereby amended by inserting in such Section the following definitions in their appropriate alphabetical
order: 
 “New Term Loan” as defined in Section 6.1(y). 
 “New Term Loan Commitments” as defined in Section 6.1(y). 
 “New Term Loan Documentation” as defined in Section 6.1(y). 
 “New Term Loan Intercreditor Agreement” means the intercreditor agreement executed by the Administrative Agent and the administrative
agent for the New Term Loans in order to effectuate the intention of the parties thereto that any New Term Loans be secured on an equal and ratable basis with the Indebtedness incurred under this Credit Agreement. 
  

 1 

 “Second Amendment” means the amendment to this Agreement dated as of November 22,
2005. 
 “Second Amendment Effective Date” means the date on which the conditions set out in Section 11 of the Second
Amendment are waived or satisfied. 
 “Series” as defined in Section 6.1(y). 
 (b) The first sentence of the definition of “Permitted Business Acquisition Amount” in Section 1.1 of the Credit Agreement is hereby
amended by deleting the text up to and including the word “further” in the first six lines of such definition and inserting in lieu thereof the following: 
 “Permitted Business Acquisition Amount” shall mean each of $150,000,000 for any individual acquisition and $300,000,000 in the aggregate from the Second Amendment Effective Date until the date of
determination; 
 (c) The definition of “Related Agreement” in Section 1.1 of the Credit Agreement is hereby amended by
deleting the period at the end of such definition and inserting in lieu thereof the following: 
 and the New Term Loan Documentation.

 (d) Provision (b) of the definition of “Excess Cash Flow” in Section 1.1 of the Credit Agreement is hereby deleted and
replaced with the following: 
 (b) any permanent voluntary reductions to the Revolving Commitments to the extent that an equal amount of the
Revolving Loans simultaneously is repaid, so long as such amounts are not already reflected in Debt Service and any permanent voluntary prepayments of the New Term Loans in accordance with the New Term Loan Intercreditor Agreement, 
 3. Amendment to Section 2.14. Section 2.14(a) of the Credit Agreement is hereby deleted. 
 4. Amendment to Section 2.15. Section 2.15(b) of the Credit Agreement is hereby deleted and replaced with the following: 
 (b) Application of Mandatory Prepayments by Type of Loans. Any amount required to be paid pursuant to Section 2.14(b) shall be applied as
follows: 
 first, to repay any outstanding New Term Loans, if any, to the full extent thereof; 
  

 2 

 second, to repay outstanding Swing Line Loans to the full extent thereof;

 third, to prepay the Revolving Loans to the full extent thereof and to further permanently reduce the Revolving
Commitments by the amount of such prepayment; and 
 fourth, to cash collateralize Letters of Credit and to further
permanently reduce the Revolving Commitments by the amount of such cash collateralization. 
 5. Amendments to Section 5.1.
Sections 5.1(b), (c), (d) and (e) of the Credit Agreement are hereby amended by deeming all references therein to “Holding and its Subsidiaries” as referring instead to “HM Publishing Corp. and its Subsidiaries”.

 6. Amendment to Section 6.1. Section 6.1 of the Credit Agreement is hereby amended by inserting after Section 6.1(x)
the following new Section 6.1(y): 
 ; and (y) Indebtedness evidencing the establishment of one or more new term loan commitments
(the “New Term Loan Commitments”), by an amount not in excess of $250,000,000 in the aggregate and not less than $75,000,000 initially and thereafter in increments of not less than $20,000,000 (any such loan, a “New
Term Loan”), the proceeds of which shall be used for acquisitions; provided that (1) the documentation with respect to such New Term Loan Commitments and New Term Loans (the “New Term Loan Documentation”)
shall, except to the extent expressly set forth on Schedule A to the Second Amendment, be substantially identical to the terms of the Credit Agreement and, without limiting the generality of the foregoing, shall not have any representations,
warranties, covenants, events of default or any mandatory prepayment provisions which are more onerous to any Credit Party than those contained in the Credit Agreement (unless in each case the corresponding provisions in the Credit Agreement are
revised by the Administrative Agent pursuant to its authority conveyed thereunder by Section 17 of the Second Amendment to conform to those relevant provisions in the New Term Loan Documentation) and shall not confer on any holder of the New
Term Loan Commitments or New Term Loans more rights than those conferred on the holders of the Indebtedness evidenced by the Credit Agreement and shall otherwise be reasonably acceptable to the Administrative Agent; (2) there shall be no
obligor in respect of the New Term Loan Commitments or the New Term Loans which is not an obligor under the Credit Agreement; (3) the Administrative Agent shall have the option in its sole discretion to act as administrative agent with respect
to each Series of New Term Loans; (4) no Default or Event of Default under any of the Credit Documents shall exist before or 

  

 3 

 
after giving effect to any such Series of New Term Loan Commitments; (5) both before and after giving effect to the making of any Series of New Term
Loans, the conditions set forth in Section 3.2(c) and (e) of the Credit Agreement shall be satisfied; (6) Company and its Subsidiaries shall be in pro forma compliance with each of the covenants set forth in Section 6.7 of the
Credit Agreement as of the last day of the most recently ended Fiscal Quarter after giving effect to any such Series of New Term Loan Commitments; and (7) Company shall deliver or cause to be delivered any legal opinions or other documents, in
each case as reasonably requested by Administrative Agent, in connection with any such transaction; and provided further that any such Indebtedness incurred pursuant to this Section 6.1(y) shall not be otherwise prohibited by the terms
of any Contractual Obligation of Holdings, HM or any of its Subsidiaries. Any New Term Loans made pursuant to this Section 6.1(y) shall be designated a separate series (a “Series”) of New Term Loans for all purposes of this
Agreement. 
 7. Amendment to Section 6.2. Section 6.2 of the Credit Agreement is hereby amended by inserting after
Section 6.2(v) the following new Section 6.2(w): 
 ; and (w) Liens securing Indebtedness permitted to be incurred pursuant to
Section 6.1(y) and subject to the New Term Loan Intercreditor Agreement. 
 8. Amendment to Section 6.4. Section 6.4 of
the Credit Agreement is hereby amended by deleting the period at the end of such Section and inserting in lieu thereof the following: 
 ; and
(m) Company or Holdings may redeem, repurchase, retire or defease (including in-substance or legal defeasance) the Senior Notes, the Intermediate Holding Notes, any Permitted Refinancing Indebtedness with respect thereto, or Subordinated
Indebtedness; provided that (i) the amount of such redemption, repurchase, retirement or defeasance shall not exceed $100,000,000 in the aggregate and (ii) the Total Leverage Ratio as of the date of determination shall be 0.25 basis
points less than the correlative ratio indicated for the relevant period in Section 6.7(b) of the Credit Agreement. 
 9. Amendments
to Section 6.7. Each of Sections 6.7(b), (c) and (d) of the Credit Agreement is hereby amended in its entirety by substituting the following in its place: 
 (b) Total Leverage Ratio. Holding and Company shall not permit the Total Leverage Ratio as of the last day of any Fiscal Quarter specified below to
exceed the correlative ratio indicated: 
  

 4 

			
	 Fiscal Quarters Ending
	  	Total
Leverage Ratio
	 March 31, 2003 through December 31, 2003
	  	5.15:1.00
	 March 31, 2004 through June 30, 2005
	  	5.10:1.00
	 September 30, 2005 through June 30, 2006
	  	4.75:1.00
	 September 30, 2006 through December 31, 2006
	  	4.50:1.00
	 March 31, 2007 through June 30, 2007
	  	4.25:1.00
	 September 30, 2007 through December 31, 2007
	  	4.00:1.00
	 March 31, 2008 through December 31, 2008
	  	3.75:1.00
	 Thereafter
	  	3.50:1.00

 (c) Senior Leverage Ratio. Holding and Company shall not permit the Senior Leverage Ratio
as of the last day of any Fiscal Quarter specified below to exceed the correlative ratio indicated: 
  

			
	 Fiscal Quarters Ending
	  	Senior
Leverage Ratio
	 March 31, 2003 through June 30, 2006
	  	3.50:1.00
	 September 30, 2006 through December 31, 2006
	  	3.25:1.00
	 March 31, 2007 through December 31, 2007
	  	3.00:1.00
	 March 31, 2008 through December 31, 2008
	  	2.75:1.00
	 Thereafter
	  	2.50:1.00

 (d) Maximum Consolidated Capital Expenditures. (i) Company shall not, and shall not
permit its Subsidiaries to, make or incur Consolidated Capital Expenditures, in any Fiscal Year specified 

  

 5 

 
below, in an aggregate amount in excess of the corresponding amount set forth below opposite such Fiscal Year; provided, such amount for any Fiscal
Year shall be increased by an amount equal to 50% of the excess, if any (without giving effect to any adjustment in accordance with this proviso) over the actual amount of Consolidated Capital Expenditures for the previous Fiscal Year: 

 

				
	 Fiscal Year
	  	Consolidated
Capital
Expenditures
	 2003
	  	$	180,000,000
	 2004
	  	$	155,000,000
	 2005
	  	$	190,000,000
	 2006
	  	$	190,000,000
	 2007
	  	$	190,000,000
	 2008
	  	$	190,000,000
	 2009
	  	$	190,000,000
	 2010
	  	$	190,000,000

 10. Amendment to Schedule 1.1(a). Footnote (e) to Schedule 1.1(a) of the Credit
Agreement is hereby deleted and replaced with the following: 
 (e) Not to exceed $35.0 million, of which $25.0 million must be funded on the
Closing Date and expensed in 2003 and the remaining $10.0 million must be expensed prior to December 31, 2004; provided that notwithstanding the foregoing, an additional $10.0 million may be expensed in the aggregate following the Second
Amendment Effective Date and prior to December 31, 2006. 
 11. Effectiveness. This Amendment shall become effective as of the
date (the “Second Amendment Effective Date”) on which the following conditions are satisfied: 
 (a) The
Administrative Agent shall have received counterparts hereof duly executed by HM, Holding, Intermediate Holding and the Administrative Agent; 
 (b) The Administrative Agent shall have received consent letters from the Requisite Lenders authorizing the Administrative Agent to enter into this Amendment; 
 (c) As of the Second Amendment Effective Date, the representations and warranties contained herein and in the other Credit Documents made
by any Credit Party 

  

 6 

 
shall hereby be deemed to be repeated on and as of the Second Amendment Effective Date and shall be true and correct in all material respects on and as of
the Second Amendment Effective Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and
as of such earlier date; 
 (d) On or prior to the Second Amendment Effective Date, HM shall have permanently reduced the
Revolving Commitments by $75,000,000 by delivering notice to the Administrative Agent as provided for by Section 2.13 of the Credit Agreement; and 
 (e) As of the Second Amendment Effective Date, no Default or Event of Default shall have occurred and be continuing or shall be caused hereby. 
 12. New Term Loan Intercreditor. Each Lender executing this Second Amendment hereby authorizes and instructs the Administrative Agent to enter
into amendments and restatements or such other modifications of any Collateral Document as the Administrative Agent reasonably determines necessary in connection with and prior to the incurrence of the Indebtedness permitted pursuant to
Section 6.1(y) in order to secure the New Term Loans on an equal and ratable basis with the Obligations, including without limitation by the amendment of the definition of “Majority Secured Parties” to include the holders of the New
Term Loans on the same ratable basis as the existing “Secured Parties” in respect of the existing “Secured Obligations” which terms shall be likewise modified, or in place of such amendments, restatements or modifications to the
Collateral Documents, to enter into the New Term Loan Intercreditor Agreement to achieve the same result in respect of any Liens granted to secure the New Term Loans by Grantors on Collateral (which shall be the only Liens granted in respect of the
New Term Loans); provided that (i) any such modification shall provide that the New Term Loans are not provided any more benefits or rights than, and are subject to at least the same obligations as, the existing Secured Parties under the
Collateral Documents and (ii) any such amended, restated or otherwise modified Collateral Document or New Term Loan Intercreditor Agreement shall be distributed to each Lender at least five Business Days prior to its effectiveness. 

13. Continuing Effect of Credit Agreement. This Amendment shall not be construed as a waiver of or consent to any further or future action on
the part of the Credit Parties that would require a waiver or consent by the Administrative Agent and/or the Lenders. Except as expressly amended hereby, the Credit Agreement shall continue to be and shall remain in full force and effect in
accordance with its terms. 
 14. Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of
separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Amendment by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof. 
 15. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 16. Expenses. HM agrees to pay or reimburse the
Administrative Agent for all of its out-of-pocket costs and expenses incurred in connection with the preparation, negotiation 

  

 7 

 
and execution of this Amendment, including, without limitation, the fees and disbursements of counsel to the Administrative Agent. 
 17. Miscellaneous. To facilitate reference to the provisions of the Credit Agreement, as amended by this Second Amendment, each Lender executing
this Second Amendment hereby authorizes the Administrative Agent, on its behalf, to enter into an amendment and restatement of the Credit Agreement, at the Administrative Agent’s option, as amended by this Second Amendment, including, without
limitation, so as to give effect to revisions to the Credit Agreement to conform to the New Term Loan Documentation, as expressly provided for pursuant to Section 6.1(y)(1) of the Credit Agreement; provided that any such amendment and
restatement shall be distributed to each Lender. 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their
duly authorized officers as of the date first written above. 
  

			
	HOUGHTON MIFFLIN COMPANY
		
	By:	 	 /s/ Joseph P. Fargnoli

		 	Name: Joseph P. Fargnoli
		 	Title: TREASURER
	
	HOUGHTON MIFFLIN HOLDINGS, INC.
		
	By:	 	 /s/ Joseph P. Fargnoli

		 	Name: Joseph P. Fargnoli
		 	Title: TREASURER
	
	HM PUBLISHING CORP.
		
	By:	 	 /s/ Joseph P. Fargnoli

		 	Name: Joseph P. Fargnoli
		 	Title: TREASURER

  

 S-1 

			
	CANADIAN IMPERIAL BANK OF COMMERCE, as Administrative Agent
		
	By:	 	 /s/ Gerald Girardi

		 	Name: Gerald Girardi
		 	 Title: Canadian Imperial Bank of Commerce
 Authorized Signatory

  

 S-2 

			
	CIBC Inc.
		
	By:	 	 /s/ Gerald Girardi

		 	Name: Gerald Girardi
		 	 Title: Authorized Signatory
 CIBC
Inc.

  

 S-3 

			
	GOLDMAN SACHS CREDIT PARTNERS L.P.
	(NAME OF LENDER)
		
	By:	 	 /s/ Elizabeth Fischer

		 	Name: Elizabeth Fischer
		 	Title: Authorized Signatory

  

 S-4 

			
	JPMorgan Chase Bank
		
	By:	 	 /s/ D. Scott Farquhar

		 	Name: D. Scott Farquhar
		 	Title: Vice President

  

 S-5 

			
	Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc.
		
	By:	 	 /s/ Kelli O’Connell

		 	Name: Kelli O’Connell
		 	Title: Vice President

  

 S-6 

			
	General Electric Capital Corporation
	(NAME OF LENDER)
		
	By:	 	 /s/ Karl Kieffer

		 	Name: Karl Keiffer
		 	Title: Duly Authorized Signatory

  

 S-7 

			
	Transamerica Business Capital Corporation
	(NAME OF LENDER)
		
	By:	 	 /s/ Karl Kieffer

		 	Name: Karl Keiffer
		 	Title: Duly Authorized Signatory

  

 S-8 

			
	 ALLIED IRISH BANKS PLC

		
	By:	 	 /s/ Roisin O’Connell

		 	Name: Roisin O’ Connell
		 	Title: Vice President
		
	By:	 	 /s/ Rima Terradista

		 	Name: Rima Terradista
		 	 Title: Co-Head Leverage Finance
 Director of Corporate Banking North America

  

 S-9 

			
	 Webster Bank, National Association

		
	By:	 	 /s/ Hans Jung

		 	Name: Hans Jung
		 	Title: Vice President

  

 S-10 

			
	NORTH FORK BUSINESS CAPITAL CORPORATION
		
	By:	 	 /s/ Ron Walker

		 	Name: Ron Walker
		 	Title: VP

  

 S-11 

			
	Deutsche Bank Trust Company Americas
		
	By:	 	 /s/ Susan L. LeFevre

		 	Name: Susan L. LeFevre
		 	Title: Director
		
	By:	 	 /s/ Omayra Laucella

		 	Name: Omayra Laucella
		 	Title: Vice President

  

 S-12 

 SCHEDULE A TO 
 SECOND AMENDMENT TO 
 AMENDED AND RESTATED 
 CREDIT AND GUARANTY AGREEMENT 
 NEW
TERM LOANS 
 In all events, any New Term Loans incurred under Section 6.1(y) shall conform with the following: 
 (i) the aggregate annual scheduled amortization in respect of any Series of New Term Loans shall not exceed 5.0% of the principal amount of such Series
prior to the Revolving Loan Maturity Date; 
 (ii) the applicable New Term Loan Maturity Date of each Series shall be no shorter than six
months following the latest of the final maturity of the Revolving Loans; and 
 (iii) the rate of interest applicable to the New Term Loans
of each Series shall be determined by Company and the applicable new Lenders and shall be set forth in the New Term Loan Documentation; provided however that the interest rate applicable to the New Term Loans shall not be greater than
the highest interest rate that may, under any circumstances, be payable with respect to Revolving Loans plus 0.25% per annum unless the interest rate with respect to the Revolving Loans are increased so as to equal the interest rate applicable
to the New Term Loans. 
  

 A-1EXHIBIT 4.15

 Exhibit 4.15 
 Supervisory Board 
  

					
		 		  	
		 		  	AEGON N.V.
		 		  	  
 P.O. Box 202
 2501 CE The Hague (The Netherlands)

		 		  	 50, AEGONplein
 2591 TV The Hague
 Telephone +31 70 344 32 10

		 		  	Fax +31 70 347 52 38

  

							
	 Our reference
	  	Your reference	  	Direct Dial	  	The Hague
	 EUS/po
	  		  		  	 July 1, 2005

 Dear Alex, 
 This letter confirms the terms and conditions which will apply during your assignment to AEGON USA (“the assignment”). The assignment is offered subject to you and your accompanying family members securing a
passport, necessary work permit, visa and your acceptance of the terms and conditions outlined in this letter. 
  

	1.	Employment status 

 All conditions laid down in your
employment agreement with AEGON N.V. (“the Company”) dated April 17, 2003 (as amended March 1, 2005), remain applicable unless otherwise amended by the terms and conditions outlined below. 
 For the purpose of the assignment your home country will be the Netherlands and the host country will be Maryland / the United States of America.

  

	2.	Commencement date 

 The assignment will commence on
1 August 2005 and will end on 1 July 2006. If the assignment is extended beyond the initial period, the terms and conditions will be reviewed between us and these may vary from those outlined in this letter. 
  

	3.	Position  

 You will remain a member of the
Executive Board of the Company, working out of Baltimore, USA. 
  

	4.	Expatriate Policy 

 It is the expatriate policy of
the Company that your purchasing power in the USA remains the same as if you had remained in The Netherlands. 
 In determining the specific
provisions of the assignment, we have engaged independent, external advisors to advise that the arrangements are customary in relevant reference markets and segments. In addition, the Compensation Committee has reviewed and approved of the
provisions. 
  

	5.	Expatriate Salary and calculation method 

 The basis
for calculating your expatriate salary is your Base Salary as defined in article 5.1 

 
of your employment agreement (EUR 563,750 gross per annum, as per July 1, 2005). From this, an amount is deducted for income tax and social security
premiums that you would have paid had you continued to live and work in The Netherlands. The result is your “home net salary”. 
 Your home net salary will then be adjusted for cost of living in case those costs in the USA are higher then in The Netherlands (§ 6.1). The outcome of this adjustment (if any) delivers your “host net salary”. The host
net salary will subsequently be calculated in USD using the prevailing exchange rate on the date of payment of your monthly salary. 
 As per
July 1, 2005 your host net salary is EUR 284,215 or USD 344,014, i.e. an exchange rate of 1.2104 USD = 1.00 EUR; please refer to the enclosed calculation. 
  

	6.	Supplementary allowances 

 All allowances deriving
from the assignment will be valid for the assignment period and will cease upon the effective date of termination of the assignment or so much earlier as you will repatriate. 
  

	6.1	Cost of Living Allowance  

 The Cost of Living
Allowance (“COLA”) is designed to provide you with a host net salary that gives you a similar purchasing power in the USA, as you would have had in The Netherlands. Our external, independent consultants determine the COLA. This COLA if
any) is paid net of tax and reviewed monthly on the date of payment of your salary. In line with our policy, a negative index would not be applied 
 As per July 1, 2005, at the exchange rate mentioned in section 5, the costs of living in the United States are higher compared with The Netherlands; the cost of living index for The Netherlands vs. urban USA per this date is 101.7%.
Further to this exchange rate, the compensation for cost of living as (already) included in your host net salary amounts to EUR 4,762 or USD 5,764 net per annum. 
  

	6.2	USA housing 

 The Company shall provide you
furnished house in the USA acceptable to you, and shall either pay directly or reimburse you for the cost of all utilities and maintenance of such house, and reasonable improvements thereto. The costs of the household contents insurance will be
borne by the Company. 
  

	7.	Bonus 

 The conditions of your Short Term Incentive
Plan (STIP) remain unchanged. 
  

	8.	Income tax 

  

	8.1	Tax Equalization Method 

 Further to the
Company’s policy (see section 4) that you should not be either better or worse off while on assignment, the Company provides that all Dutch and USA income taxes payable during the assignment period, as well as all Dutch and USA social security
premiums, will not be higher than the income taxes and social security premiums that you would have paid would you have continued to work and live in The Netherlands through applying the Tax Equalization Method. 
 This method is limited to employment income only, i.e. income derived from the employment with the Company (including, but not limited to, benefits in
kind). Taxation (including but not limited to federal, state and city income taxes, capital gains, wealth, gift and inheritance taxes) on personal income will be for your own account. Personal income will always be treated as your top slice of
income and where your personal income falls into a number of tax bands, the 

  

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calculation should ensure that the personal income is taxed at the highest rates. The exception to this is where the character of the income is such that it
is subject to a lower rate of tax. 
 As a result of this Method, any tax and/or social security premiums due or refundable in The Netherlands
and/or USA relating to the assignment will be for the Company account. 
 To administer the Tax Equalization Method, a hypothetical amount for
Dutch and social security premiums will be deducted from the total Base Salary at the start of the assignment. This deduction equals the amount you would have paid should you have continued to work and live in The Netherlands. At the end of the
Dutch tax year, the Company’s designated tax advisors will determine a final hypothetical tax liability, by re- computing your initial hypothetical tax and social security liability to take account of changes that may have occurred during the
tax year in question. 
  

	8.2	Tax Advice 

 You will be entitled to tax advice
(including the filing of your Dutch and/or USA income tax returns) from the Company’s designated tax advisors at the Company’s expense. For that purpose, you are required to provide all relevant information to the Company’s designated
advisers in a timely manner. 
 It is understood that the Company’s designated tax advisors will make such elections, deductions and
allocations as appropriate that will minimize the Company’s obligations and liabilities. 
  

	9.	Social Security 

  

	9.1	Dutch Social Insurances 

 You and your accompanying
family members will remain subject to the various Dutch Social Insurances for as long as such coverage is permitted under the US – NL social security treaty. If such coverage should cease or be amended, you will be advised accordingly and the
Company will put in place such suitable alternative arrangements as are permitted by the relevant regulations. 
 As described in section 5,
you will continue to pay an amount for social insurance premiums, which will be equal to the amount that you would have paid had you continued to work and live in The Netherlands. 
  

	9.2	Pension  

 You will remain a participant of the
AEGON NV pension plan for members of the Executive Board for so long as this remains possible under the relevant provisions. If this arrange-ment should be amended, you will be advised accordingly and the Company will put in place such suitable
alternative arrangements as are permitted by the relevant regulations. 
 Gross-up costs of the attendant pension contributions
(employer’s and employee’s) will be at the Company’s expense. 
  

	9.3	Private Medical Insurance  

 With respect to the
private medical cover, the Company will maintain the Dutch medical insurance. The existing coverage will be increased to include the USA. Any change in contribution resulting out of this increase will be for the account of the Company. 

 

	9.4	Disability Insurance 

 With respect to the
disability cover, the Company will maintain the Dutch disability insurance. The existing coverage will be increased to include the USA. Any change in contribution resulting out of this increase will be for the account of the Company. 
  

 Page 3 

	9.5	Other benefits 

 You will continue to participate in
other benefit programs of the Company unless prohibited by Dutch and/or USA laws and regulations 
  

	10.	Expatriate benefits 

  

	10.1	Movement of household goods 

 Since you will be
renting furnished accommodation in the USA, it is expected that the movement of your personal goods from The Netherlands to the USA will be limited. As for this movement, prior approval by the Company is required. Subsequently, the Company will
reimburse all costs directly related to the movement (including, but not limited to, the insurance for the transportation). However, the Company will not pay, nor accept any liability for the transfer or storage of automobiles, motorcycles,
recreational vehicles, motor homes, jewelry, art, collectibles or any other high-value items. 
  

	10.2	Expenses 

 As compensation for the non-specified
costs that you and your accompanying family members will incur in connection with this assignment, you will be entitled to a one-off, gross expense allowance of USD 75,000 in addition to the customary compensation of expenses as specified in this
agreement. 
  

	10.3	Home leave 

 Home leave by you and your accompanying
family members will take place in consultation with the Company, taking into account the interests of the Company. Home leave days will normally be considered as part of your vacation entitlement. The home leave tickets will be for the
Company’s expense. No cash will be paid in lieu of tickets. You will be responsible for any costs associated with travel insurance, accommodation and living expenses during such visits 
  

	10.4	Automobile 

 You will be entitled to the use of a
company-provided automobile for business travel, for which the costs will be for the account of the Company. Any additional automobile that you wish to acquire for personal and family purposes will be paid out of the miscellaneous expenses in
section 10.2 above. 
  

	10.5	School Fees 

 The Company will meet the school fees
for your children’s education in the USA. Prior approval of these costs by the Company is required before making any commitments. 
  

	10.6	Club Membership 

 You shall be entitled to a
Company-paid membership in a country club of your choice in the USA. In addition, you shall also be entitled to participate in the membership of AEGON USA in the Caves Valley Club and local dinner and business clubs. 
  

	10.7	Repatriation 

 Upon the termination of the
assignment, the movement of your household goods will also take place on the basis of the provisions mentioned in § 10.1 of this letter. If you terminate your employment with the Company unilaterally or the Company terminates it for cause,
repatriation costs will be your responsibility. 
  

	11.	Director’s Liability 

 The current
Directors’ & Officers’ insurance also provides cover during the term of the assignment. 
  

 Page 4 

	12.	Jurisdiction and Governing Law  

 All disputes
arising in connection with the assignment, or further contracts resulting thereof, shall be finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute (Nederlands Arbitrage Instituut). The arbitral tribunal
shall be composed of three arbitrators. The place of arbitration shall be The Hague, The Netherlands. 
 This agreement is subject to and
shall be governed by Dutch Law. 
 In order to confirm your acceptance of the above conditions, please sign and return the duplicate copy of this letter at
your earliest convenience. 
  

	
	 Sincerely yours,

	
	 Date:

	
	 AEGON N.V.

	 Represented by D.G. Eustace

 I have read this agreement and accept and agree to its terms and conditions.

 A.R. Wynaendts 
  

 Page 5 

			
		  	Supervisory Board
		
		  	  
 AEGON N.V.
  
 P.O. Box 202
 2501 CE The Hague (The Netherlands)
 50, AEGONplein
 2591 TV The Hague
 Telephone +31 70 344 32 10
 Fax +31 70 347 52 38

  

							
	Our reference	  	Your reference	  	Direct Dial	  	The Hague
	 EUS/po
	  		  		  	 6 December 2005

 Dear Alex, 
 In addition to our letter of 1 July 2005, par. 3, we confirm that the purpose of your assignment is to familiarize yourself with the Company’s activities in the U.S. At the same time, you will remain a
member of the Executive Board of the Company. The activities corresponding with your Board membership will in principle be fullfilled out of the Company’s headquarters based in the Hague, the Netherlands. 
  

	
	 Sincerely yours,

	
	 AEGON N.V.

	 Represented by D.G. Eustace

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