Document:

exv4w2

 

EXHIBIT 4.2

Executive Board

Date

15 September 1999

Between

		
	• 	
    ING Groep N.V. hereby represented by
    Mr. E. Kist, Vice-Chairman of the Raad van Bestuur.
    
	 
	• 	
    BBL N.V. hereby represented by
    Mr. J. Moulaert, Chairman of the Board of Directors
    and of the Compensation Committee,
    
	 
	• 	
    Mr. MICHEL TILMANT, domiciled at Rue du Moulin
    10, 1310 la Hulpe,
    

			
	 	— 	
    Whereas an agreement will be entered into between
    ING Bank N.V. and Michel Tilmant becoming effective as
    of July 1st, 1999, hereinafter referred to as
    “arbeidsovereenkomst”,
    
	 
	 	— 	
    Whereas the “arbeidsovereenkomst” is
    similar to the one being entered into by any person becoming a
    member of the Raad van Bestuur of ING Bank as well as of
    the Raad van Bestuur of ING Groep,
    
	 
	 	— 	
    Whereas Michel Tilmant will continue to exercise
    permanent responsibilities in BBL N.V., in whatever functions it
    may be,
    
	 
	 	— 	
    Whereas Michel Tilmant will keep his residence in
    Belgium where his family will remain established,
    

	 	 	
	 	 	 
	
    Strawinskylaan 2631, Amsterdam

    The Netherlands

    P.O. Box 810, 1000 AV Amsterdam

    Tel.: +31 20 5415411
    	 	
    Fax: +31 20 5415451

    ING Groep N.V.

    Trade Register Amsterdam no. 33231073
    

 

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IT IS AGREED AS FOLLOWS:

		
	 	     
    1. The “arbeidsovereenkomst”
    includes all obligations to which Michel Tilmant will be bound
    as well as all benefits to which he will be entitled in his
    capacity of member of the Raad van Bestuur of ING Bank and ING
    Group.
    
	 
	 	     
    2. Furthermore, the existing contract
    between BBL and Michel Tilmant will remain in force regarding
    all obligations and benefits included therein with the exception
    of the remuneration.
    
	 
	 	     
    3. The present remuneration package of
    Michel Tilmant as indicated in exhibit A will be split
    between ING Bank and BBL, as indicated in same exhibit according
    to the following rule:
    

		
	 	     
    3.1. The Dutch portion will be the package
    resulting from the “arbeidsovereenkomst”.
    
	 
	 	     
    3.2. The Belgian portion will be a fixed
    remuneration amounting to BEF 18.872.640 and no variable
    remuneration will be served any longer by BBL.
    

		
	 	     
    4. It is hereby recognised by all parties
    that by abandoning the present variable part of his BBL
    remuneration, Michel Tilmant also gives up all future increases
    of such variable part that could be at the rate of 10 to 15% per
    annum considering past performances of BBL.
    

		
	 	
    Therefore the parties expect this renunciation to
    be made up in the future by increases of the Dutch portion of
    the package. This package has been structured in such a way that
    Michel Tilmant will be awarded a Dutch bonus of minimum
    NLG 390.000.
    

		
	 	     
    5. All benefits other than remuneration
    resulting from Dutch and Belgian contracts will be consolidated
    and served in the following sequence:
    

		
	 	     
    5.1. All individual benefits provided by the
    BBL contract will first be served and/or assumed by BBL.
    
	 
	 	     
    5.2. The balance between the latter benefits
    and those offered by ING Groep will be due by ING Groep.
    

		
	 	
    Consequently, insurance coverage related to
    sickness, pension scheme, life etc. . . will be taken
    by ING Groep for the part of such benefits exceeding those
    provided by the BBL rules. Michel Tilmant (or his heirs) will
    have the choice to take the Belgian part of the pension as a
    lump sum according to present usual practice in Belgium.
    

		
	 	     
    6. The cost of furnished rented housing of
    standing in the Netherlands will be for the account of ING Groep.
    

 

Page 3

		
	 	     
    7. This agreement -namely all provisions
    related to the remuneration and benefits- has been entered into
    in the context of the existing tax law in the Netherlands
    covering expatriates (the 35% rule) and in Belgium (the
    definitively taxed foreign income rule).
    

		
	 	       
     Should the environment change, then the
    agreement will be reviewed and restructured to provide Michel
    Tilmant with at least the same net package as the one served at
    the time of the change.
    

		
	 	     
    8. When either contract -BBL or ING- refer
    to the total remuneration, it means the sum of the hereabove
    indicated split salaries, fixed and variable.
    
	 
	 	     
    9. Michel Tilmant will be entitled to the
    variable portion of his BBL remuneration for the first six
    months of 1999.
    

Brussel, 15 September 1999

	 	 	 
	 
	
    ING Groep N.V.

    

    Mr. E. Kist

    

    Mr. M. Tilmant
    	 	
    BBL N.V.

    

    Mr. J. Moulaert
    

 

Annex 1a

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    Mr. Tilmant

    Married,
    spouse    l   professional
    homemaker

    2 dependent children

    Exchange ratio:
    	 	 
	 	 	 	NLG 1 = BEF	 	 	
       l
    	 	 	 	 	 	 
	
    
    Salary:
    

    	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Base Salary	 	 	 	 	 	18,000,000	 	 	
    BEF
    
	 	 	 	Director’s fee	 	 	 	 	 	1,250,000	 	 	
    BEF
    
	 	 	 	Bonus (35,000,000 BEF)	 	 	
    paid out in such
    	 	 	81,000,000	 	 	
    BEF
    
	 	 	 	 	 	 	
    40% deferred
    	 	 	14,000,000	 	 	
    BEF
    
	 	 	 	Deferred lump sum	 	 	 	 	 	500,000	 	 	
    BEF
    
	 	 	 	 	 	 	 	 	 	82,750,000	 	 	
    BEF
    
	
    Net allowances:
    	 	 	 	 	 	 
	 	 	 	Expenses lump sum	 	 	 	 	 	180,000	 	 	
    BEF
    
	 	 	 	Expenses allowance	 	 	 	 	 	750,000	 	 	
    BEF
    

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			Current		
			situation		Future situation
			
		

	ALL AMOUNTS IN BEF		100% BE		BE		NL		Total 100%
	
		
		
		
		

	
    
    TOTAL EMPLOYER’S COST (before taxes)
    

    	 	 	53,680,000	 	 	 	20,122,640	 	 	 	31,125,006	 	 	 	51,247,646	 
	
    
    Less:  — Company car
    

    	 	 	p.m.	 	 	 	p.m.	 	 	 	N/A	 	 	 	p.m.	 
	
    
               — Group insurance contributions
    (employer)
    

    	 	 	p.m.	 	 	 	p.m.	 	 	 	N/A	 	 	 	p.m.	 
	
    
    Less:  — Expenses lump sum
    

    	 	 	(180,000	)	 	 	(180,000	)	 	 	N/A	 	 	 	(180,000	)
	
    
               — Expenses allowance
    

    	 	 	(750,000	)	 	 	(750,000	)	 	 	N/A	 	 	 	(750,000	)
	
    
    Less:  employer’s social security
    contributions
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
               — Belgium
    

    	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	
    
               — The Netherlands
    

    	 	 	N/A	 	 	 	N/A	 	 	 	(188,711	)	 	 	(188,711	)
	
    
    GROSS SALARY
    

    	 	 	52,750,000	 	 	 	20,122,840	 	 	 	30,996,285	 	 	 	51,058,835	 
	
    
             consisting
    of:
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
               — Base Salary
    

    	 	 	16,000,000	 	 	 	18,872,640	 	 	 	23,797,150	 	 	 	42,689,790	 
	
    
               — Director’s fee (tantiòme)
    

    	 	 	1,250,000	 	 	 	1,250,000	 	 	 	N/A	 	 	 	1,250,000	 
	
    
               — Cash bonus
    

    	 	 	21,000,000	 	 	 	N/A	 	 	 	7,139,145	 	 	 	7,139,145	 
	
    
               — Deferred
    

    	 	 	14,500,000	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	
    
    Less:  social security contributions
    

    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    
               — Belgium (self-employed)
    

    	 	 	(450,000	)	 	 	(450,000	)	 	 	N/A	 	 	 	(450,000	)
	
    
               — The Netherlands (employee)
    

    	 	 	N/A	 	 	 	N/A	 	 	 	(58,248	)	 	 	(58,248	)
	
    
    Plus:  Compensation allowance (NL)
    

    	 	 	N/A	 	 	 	N/A	 	 	 	35,517	 	 	 	35,517	 
	
    
    GROSS AFTER SOCIAL SECURITY (A)
    

    	 	 	52,300,000	 	 	 	19,672,640	 	 	 	30,911,584	 	 	 	60,584,204	 
	
    
    Less:  Dutch income taxes (B)
    

    	 	 	N/A	 	 	 	N/A	 	 	 	(11,619,270	)	 	 	(11,619,270	)
	
    
    Less:  Belgium income taxes (C)
    

    	 	 	(24,958,076	)	 	 	(11,633,010	)	 	 	N/A	 	 	 	(11,633,010	)
	
    
    NET SALARY (A)-(B)-(C)
    

    	 	 	27,331,924	 	 	 	8,039,650	 	 	 	19,292,284	 	 	 	27,331,924	 
	
    
    Plus:   —  Expenses lump sum (D)
    

    	 	 	180,000	 	 	 	180,000	 	 	 	N/A	 	 	 	180,000	 
	
    
               — Expenses allowance (E)
    

    	 	 	750,000	 	 	 	750,000	 	 	 	N/A	 	 	 	750,000	 
	
    
    NET IN HAND
    

    	 	 	28,261,924	 	 	 	8,969,630	 	 	 	18,292,294	 	 	 	28,261,924exv4w3

 

EXHIBIT 4.3

EMPLOYMENT CONTRACT

DEFINITIONS

	 	 	 
	The Company	 	
shall mean ING AMERICA Insurance Holdings Inc established at Iowa, United
States of America,
	 	 	 
	ING	 	
shall mean jointly ING Groep N.V. (“ING Group”), ING Bank N.V. and ING
Verzekeringen N.V.
	 	 	 
	ING Group	 	
ING Groep N.V.
	 	 	 
	Mr. Hubbell	 	
Mr. F.S. Hubbell, resident at Groot Haesebroekseweg 29-b
2243 EC Wassenaar, The Netherlands
	 	 	 
	The Board	 	
The Boards of ING
	 	 	 
	The Fixed Salary	 	
The amount defined in and calculated in accordance with
clause 3. below as amended from time to time.
	 	 	 
	Supervisory Board	 	
The Supervisory Board of ING Group
	 	 	 
	Remuneration	 	
Jointly, the Fixed Salary, Bonus, Expense Allowance, Company Car and Pension.
	 	 	 
	Termination Amount	 	
Three times the Fixed Salary.
	 	 	 
	Major Reorganisation	 	
This will be deemed to occur when the working conditions of
Mr. Hubbell, as a result of merger, major reorganisation or a
similar, external circumstance, have been altered to such an
extent that he can in all reasonableness not be required to
continue to perform its duties to and for ING.

 

 

The undersigned,

	a.	 	ING America Insurance Holdings Inc (the “Company”),
	 
	b.	 	Mr F. Hubbell, and
	 
	c.	 	ING Groep N.V., ING Bank N.V. and
ING Verzekeringen N.V. (jointly “ING”)

whereas,

	a.	 	The Company has seconded Mr. Hubbell to work for ING on the terms set forth
in the assignment agreement dated 5 March 1999. However, it is the intention of
Mr Hubbell to eventually return to the USA to live.
	 
	b.	 	Mr. Hubbell has been appointed member of the Executive Boards of TNG with
effect from 2 May 2000 of ING.
	 
	c.	 	The secondment of Mr. Hubbell, who will continue to be solely an employee of
the Company and will hold a corporate position of ING, will be extended on the
following terms and conditions, which replace all previous contracts and
conditions.
	 
	d.	 	The following conditions will take effect as of 2 May 2000.

declare to have agreed as follows:

	1.	 	Position
	 
	 	 	Subject to all legal requirements being made as of 2 May 2000, Mr. Hubbell
shall be confirmed as an employee of the Company, and also as member of the
Boards.
	 
	 	 	The governance of the Boards and of the Supervisory Board, and the relationship
between both bodies, is described in the memorandum “Consultative and
management structure within the ING Group”, dated February 1999. Mr. Hubbell
declares himself

2

 

	 	 	to be in agreement with this memorandum and acknowledges that it can be amended
by resolution of the Supervisory Board,
	 
	 	 	Under the Articles of Association of ING Group, the Supervisory Board has
discretion to determine the remuneration (including bonus, stock options etc,
etc) of members of the Executive Board.
	 
	2.	 	Term of the contract
	 
	 	 	This contract is entered into for an indefinite period of time and may be
terminated in writing with due regard by the Company of a notice period of six
months and by Mr. Hubbell of a notice period of three months, without prejudice
to the provisions of the articles of association of ING with respect to
suspension and dismissal of a member of the respective Executive Board.
	 
	3.	 	Fixed Salary
	 
	 	 	Mr. Hubbell’s gross base salary (inclusive of 8% holiday allowance) shall
amount to USD 1,300,000 per year (“the Fixed Salary”). Mr. Hubbell will remain
on the Company payroll, and ING will reimburse and the Company for the costs of
the Fixed Salary. Any transaction costs incurred by Mr. Hubbell in the transfer
of net salary from the USA to the Netherlands shall be borne by the Company.
	 
	4.	 	Illness and disability
	 
	 	 	If Mr. Hubbell is prevented by illness from carrying out the essential
functions of his job, with or without reasonable accommodations, as a result of
illness or disability, he shall remain entitled to 100% of The Fixed Salary for
a period of 52 weeks, as long as the contract of employment remains in effect.
	 
	5.	 	Bonus
	 
	 	 	Mr. Hubbell shall be entitled to receive a bonus. The amount of bonus depends
on the increase of the net operating profit per share of ING Group (“EPS”). For
every one (1) percent (%) growth of the EPS over 3%, Mr. Hubbell will receive a
cash bonus up to a maximum amount equal to 45% of the Fixed Salary. The formula
shall be: less than 3% increase in EPS: no bonus; for each % EPS growth above
3% (inclusive of 1 to 3%

3

 

	 	 	growth) 2,5% bonus will be paid
(Example: 4% EPS growth equals 10% bonus). The
maximum bonus of 45% therefore equates with an 18% growth in EPS. The payment
of the bonus will be made within a reasonable period after determination of the
EPS of ING Group, but at latest within six months from the end of the relevant
calendar year.
	 
	6.	 	Stock Options
	 
	 	 	ING will, as of 2 May 2000 and on
an annual basis thereafter, grant ING Group
stock options to Mr. Hubbell with respect to the prior calendar year under the
Global Stock Option Plan (GSOP). These grants will depend on the increase of
the EPS of ING Group. For every 1% rise of the EPS of ING Group Mr. Hubbell
will receive 2,000 stock options without maximum (Example: 4% EPS growth gives
rise to a grant of 8,000 ING Group stock options).
	 
	 	 	In view of the fact that stock option rights are intended to promote present
and future ties with ING, the Supervisory Board has decided that no stock
option rights shall be allocated in the year of retirement. Allocation is only
made in the last full year in which the person concerned was active with ING.
	 
	7.	 	Holiday
	 
	 	 	Mr. Hubbell shall be entitled to 35 business days paid vacation per 12 months
of service to be taken by Mr. Hubbell in consultation with the
Chairman of ING Group. Holiday not taken in any calendar year may not be carried forward to the
next calendar year.
	 
	8.	 	Expense allowance
	 
	 	 	The Company shall pay Mr. Hubbell a fixed net expense allowance of €9,100 Per
annum for business expenses. This shall be paid in January each year.
	 
	9.	 	Business expenses
	 
	 	 	Business travel expenses and other direct business expenses incurred in the
interest of ING shall be reimbursed against presentation of receipts or other
appropriate proof of such expenses according to the policy for Executive Board
members.
	 
	10.	 	Company Car

4

 

	 	 	The Company shall make available to Mr. Hubbell a company car and a driver in
line with the practice for Executive Board members. The Company shall assign an
English-speaking driver to Mr. Hubbell.
	 
	11.	 	Telephone and fax allowance
	 
	 	 	In view of the frequent business use of private telephone and fax connections,
telephone charges, other than for children’s telephone calls, shall be for the
account of the Company.
	 
	12.	 	Pension
	 
	 	 	Mr. Hubbell shall remain in
his current pension plan and 401-K-plan. The Company
shall pay 100% of the premiums and costs of the pension plan of Mr. Hubbell and
the employer’s contributions to the 401-K-plan.
	 
	13.	 	Termination clause
	 
	 	 	In case of a termination of the
Employment Contract by the Company and/or a
termination by ING of the membership of Mr. Hubbell of the Board for other
reasons than urgent reasons as referred in article 7: 678 of the Netherlands
Civil Code attributable to Mr. Hubbell (“Urgent Reasons”), Mr. Hubbell shall
receive the Termination Amount by way of sole compensation from the Company (or
any affiliate thereof, including ING) for such termination(s).
	 
	 	 	Without prejudice to the foregoing, in case of a termination of the Employment
Contract, Mr. Hubbell can exercise the irrevocable Stock Options granted to
him during the remaining term thereof with due observance of ING Group
Regulations concerning inside information. In case, however, the Company
and/or ING terminates the Employment Contract and/or the membership of Mr.
Hubbell of the Board for Urgent Reasons, all irrevocable Stock Options granted
to Mr. Hubbell will have to be exercised — and will
lapse if not so exercised — during the first Open Window Period (as defined in and having regard to the ING
Group Regulations concerning inside information) following such termination.
	 
	14.	 	Insurance scheme for accidents and business travel

5

 

	 	 	A continuos travel insurance has been taken out for Mr. Hubbell and his family.
This includes death in service provisions. Mr. Hubbell shall also remain in the
United States Group Life Insurance Plans.
	 
	15.	 	Major Reorganisation
	 
	 	 	In case the Supervisory Board has concluded that a Major Reorganisation has
occurred or is likely to occur in the near future it will inform Mr. Hubbell
accordingly and will also inform Mr Hubbell of the date on which the Major
Reorganisation will be deemed to take, or has taken, effect (the
“Reorganisationdate”).
	 
	 	 	As from the Reorganisationdate, this Employment Contract will continue for a
period of six months after which period Mr Hubbell will have a maximum period
of thee months during which he may decide to continue or terminate this
Employment Contract with effect as from the last day of the three-month
period. These periods may be shortened by mutual agreement between the
Supervisory Board and Mr Hubbell.
	 
	 	 	If the Employment Contract and the membership of Mr Hubbell of the Board is
terminated by Mr. Hubbell in accordance with this article 15 as consequence of
the occurrence of a Major Reorganisation, the Termination Amount shall be
payable to Mr. Hubbell and Mr. Hubbell can exercise the irrevocable Stock
Options granted to him during the remaining term thereof with due
observance of ING Group Regulations concerning inside information.
	 
	 	 	This clause 15 is without prejudice to the right of the Company or ING to
terminate this Employment Contract and/or the membership of Mr. Hubbell of the
Board, as the case may be under the terms and with the consequences of article
13, it being understood and agreed that in such case the Termination Amount
payable under article 13 is in stead of and not in addition to any Termination
Amount that would otherwise have been payable under a article 15.
	 
	16.	 	Non-competition in connection with payment of Termination Amounts
	 
	 	 	In case the Termination Amount is or has been paid to Mr. Hubbell, he shall
during the first 12 months following the termination of the Employment Contract
under Article 13 or 15, not directly or indirectly advise, work for or provide
services to or sit on the

6

 

	 	 	board of corporations or enterprises which in any country in which ING is
active in the financial services sector, including the financial services
division of a non-financial services company, such as Ahold or KPN unless
prior written approval has been obtained from the Supervisory Board. If at any
time during this 12 months period Mr. Hubbell takes such position with a
Competitor the right to receive a Termination Amount will be forfeited and Mr.
Hubbell must repay to ING Group any Termination Amount paid to him under
Article 13 or 15, as the case may be.
	 
	17.	 	Health insurance
	 
	 	 	Mr. Hubbell and his family shall be eligible to participate in the (full cover)
health care insurance of ING Group in the Netherlands. The Company shall pay
100% of the premiums of the health care insurance of Mr. Hubbell and his
family. Mr. Hubbell and his family shall also participate in the
ING US health
insurance, without any restrictions or exclusions.
	 
	18.	 	Financing and insurance schemes
	 
	 	 	Mr. Hubbell has the option of availing himself of financing and insurance
products of ING.
	 
	 	 	Mr. Hubbell may take out a mortgage loan with ING Group or one of the
subsidiaries engaged in such business. A discount of 25% on the mortgage
interest rate normally charged to third party clients of the lending institute
in question shall be granted over a sum up to a maximum mortgage of €700,000.
	 
	 	 	Mr. Hubbell further qualifies for a personnel discount on other bank and
insurance products carried by companies of the ING Group.
	 
	 	 	Furthermore, use may be made of an unsecured credit facility according to the
terms for ING Bank personnel, up to a maximum of 25% of the Fixed Salary.
	 
	19.	 	Housing
	 
	 	 	The Company will provide Mr. Hubbell and his family with accommodation in The
Netherlands based on a maximum housing allowance of € 7,260 net per month. In
the

7

 

	 	 	event that Mr. Hubbell purchases a property in The Netherlands the following
will apply:

	 	a)	 	As stated in article 18 above, Mr. Hubbell will be entitled to benefit
from the ING Staff mortgage rates under the normal terms for members of
the ING Group Executive Board.
	 
	 	b)	 	The Company will continue to pay to Mr. Hubbell the lower costs of

	 	(i)	 	interest ONLY on the mortgage loan, or
	 
	 	(ii)	 	€7,260 net per month.

	 	c)	 	any and all tax refunds (in the Netherlands or elsewhere) relating to the
deductibility of the mortgage interest shall, in the first instance, fall
to ING Group. Any such tax refunds payable to ING Group will be limited to
the amount relating to mortgage interest paid by the Company.

	 	 	If Mr. Hubbell disposes of the property any profit or loss arising in
connection therewith shall be his and not subject to this employment
contract.
	 
	20.	 	Home leave
	 
	 	 	For every 12 months of employment with the Company, it shall pay two round trip
business class airline tickets between United States and the Netherlands for
Mr. Hubbell and his wife and children.
	 
	21.	 	School fees
	 
	 	 	The Company will reimburse the school fees for Mr. Hubbell’s dependent children
directly to the American school in Wassenaar, or the equivalent value of those
school fees if his children are in school elsewhere (through grade 12).
	 
	22.	 	35% ruling
	 
	 	 	If a 35% ruling as referred to in the Resolution of the State Secretary of
Finance dated May 29, 1995 number DB 95/119m is obtained, the remuneration of
Mr. Hubbell during his employment with the Company is deemed to include for
Dutch wage tax and social security purposes — an expense
allowance, amounting to
35% of Mr. Hubbell’s remuneration for wage tax purposes, for the costs
relating to his stay in The Netherlands.

8

 

	23.	 	Tax compensations
	 
	 	 	The intent of the Company and Mr. Hubbell is to use the existing ING EC
Americas Tax Equalization Policy and the memo entitled “Fred
Hubbell — Expatriate Tax Policy” dated 27 November 2000 from Alexander Rinnooy Kan and
signed by Fred Hubbell on 30 November 2000 (“the Memo”). The Memo takes
precedence over the Policy and this section of the Employment Contract.

	 	•	 	State income taxes are not considered in the calculation of the tax
equalization.
	 
	 	•	 	Mr. Hubbell’s obligation on compensation elements that he would
normally be entitled to in the USA is limited to the equivalent amount
of federal income and US social security taxes that would be incurred on
such compensation. The compensation elements include, but are not
limited to base salary, bonus, taxable portion of group life insurance
premiums, qualified pre-tax deductions funded by Mr. Hubbell (i.e. 401
(K) and other pre-tax items), stock option income and performance
based compensation.
	 
	 	•	 	Only the standard deduction is considered in computing Mr. Hubbell’s
obligation.
	 
	 	•	 	The Company will compensate Mr. Hubbell for any excess tax (including
US Alternative Minimum Tax) incurred on compensation income elements.
	 
	 	•	 	Any income tax arising on non-Company related income is the
responsibility of Mr. Hubbell.
	 
	 	•	 	Based on these guiding principles, PricewaterhouseCoopers had
developed a model (adapted by the Memo) that illustrates how the tax
equalization will operate. This model is not incorporated herein, as it
contains personal information relating to him and his family.
	 
	 	 	 	Accordingly, PricewaterhouseCoopers and Mr. Hubbell will retain the model. It
is intended that this model be used in calculating the tax reimbursement to
Mr. Hubbell.
	 
	 	 	 	Although Mr. Hubbell is responsible for any tax on non-company income, MP.
Hubbell will be allowed to consult the Board of ING Group prior to
undertaking financial transactions(s) that could give rise to excess tax on
personal income. The purpose of this consultation is to determine whether in
the view of the Board of ING Group there is any cause to undertake further
measures,

9

 

	 	 	 	such as providing tax assistance for the account of ING, in order to reduce the
tax burden for Mr. Hubbell.
	 
	 	•	 	The Company will reimburse Mr. Hubbell for the Dutch net wealth tax
due by his three children, upon filing their Dutch net wealth tax
return. The annual reimbursement is limited to the present private
equity for each child of US$175,000.
	 
	 	•	 	The Company N.V. will not reimburse gift or estate taxes to Mr.
Hubbell.

	24.	 	Tax assistance
	 
	 	 	The Company shall bear the costs of income tax advice and the preparation of
income tax returns of Mr. Hubbell in both The Netherlands and the United
States.
	 
	25.	 	Dutch language course
	 
	 	 	The Company or ING shall pay the costs for following a Dutch language course by
Mr. Hubbell and his family.
	 
	26.	 	Additional functions
	 
	 	 	During the term hereof, Mr. Hubbell will require the prior written approval
from the Chairman and the Vice-Chairmen of the Supervisory Board of ING Group
before (i) accepting, after the effective date, any additional other executive
or non-executive position and/or any position as, managing or supervisory
director, agent, receiver, (ii) conducting a business or pursuing an
occupation, as a self-employed person to establish or acquire a business for
his own account or act as an agent or third parties or (iii) act
as counsellor,
consultant, or to perform (employment) activities for third parties, whether or
not paid, for or in respect, or on behalf, of any entity, company or
corporation not being an affiliate of ING Group (“Functions”). Any remuneration
payable to Mr. Hubbell in respect of Functions shall be paid to the Company or
ING Group, as directed by the Company. This obligation is without prejudice to
the Functions Mr. Hubbell may hold immediately prior to the Effective Date
(“Current Functions”). Mr. Hubbell will disclose any remuneration whatsoever
relating to any Current Functions to the Group Compliance Officer of ING Group.

10

 

	 	 	Mr. Hubbell may continue to remain on the Board of Directors of Macerich INC on
the proviso that most meetings will be attended by telephone. Mr. Hubbell must
disclose any remuneration whatsoever relating to this as or any other
activities to the Group Compliance Officer of ING Group.
	 
	27.	 	Indemnification against liability as director
	 
	 	 	The Company, ING and its subsidiaries, indemnifies Mr. Hubbell against and in
respect of liabilities incurred by him in his capacity as member of the Boards
of ING, or as a member of any governing body of a subsidiary of ING Group and
in respect of Functions approved by the Chairman and Vice-Chairmen of the Board
of Supervisory Directors of ING Group (“ING Activities”), provided that such
liability is not the result of gross negligence or wilful misconduct of Mr.
Hubbell in the performance of or in connection with ING Activities (the
“Indemnity”).

	 	(a)	 	If and to the extent the Indemnity is enforceable against the Company,
Mr. Hubbell shall be reimbursed in addition, all reasonable costs he
incurs in his defence both in and out of court against claims which are
made or threaten to be made against him by third parties in connection
with ING Activities. Mr. Hubbell shall be reimbursed the said costs upon
submission to the Company of the receipts and invoices concerned.
	 
	 	(b)	 	Any costs reimbursed to Mr. Hubbell, hereunder may be reclaimed from him
by the Company if and to the extent the Indemnity is not enforceable
against the Company because the liability giving rise to the Indemnity is
the result of gross negligence or wilful misconduct of Mr. Hubbell in the
performance of or in connection with the performance of ING Activities.
	 
	 	(c)	 	Mr. Hubbell is required to inform the Chairman of the Board of ING Group
immediately in writing of claims from third parties which are to be or are
threatened to be made against him and to inform him on each occasion
beforehand with regard to the measures Mr. Hubbell purposes to take in
his defence. Furthermore, Mr. Hubbell will not conclude any settlement
with regard to claims in respect of which Mr. Hubbell invokes or wishes to
invoke the Indemnity, without obtaining prior written approval from the
Chairman of the Board of ING Group.

11

 

	 	(d)	 	Without prejudice to the proviso in article 27 (a), the Indemnity is not
enforceable against the Company or any other company being a subsidiary of
ING, if and to the extent the liability of Mr. Hubbell, arising from the claims
from third parties as referred to in article 27 (c) and/or the costs as stated
in article
27 (c) are covered under the terms of liability insurance contract(s) taken out
by ING and/or by Mr. Hubbell.

	 	 	The Indemnity remains in force after Mr. Hubbell has resigned or been
terminated as a member of the respective Boards or as a member of any governing
body of a subsidiary of ING.
	 
	28.	 	Confidentiality clause
	 
	 	 	Mr. Hubbell shall observe both during and after the employment the strictest
secrecy in respect of all he may come to know about in respect of the business
operations of the Company, ING and its affiliated companies, insofar not in
conflict with your statutory obligation to divulge such information to
governmental or regulatory authorities which require information.
	 
	 	 	Upon termination of employment with the Company, all documentation — in the
broadest sense of the word — concerning the Company, ING and its affiliated
companies, as well as the position(s) relinquished, shall be returned to ING.
	 
	29.	 	Scheme with regard to private investment transactions by insiders
	 
	 	 	The Regulations Concerning Inside Information (Reglement inzake Voorwetenschap
ING Groep) and the Insider Regulations (“Insider Regeling”) of ING Group, as
from time to time amended are applicable to Mr. Hubbell.
	 
	30.	 	Gifts
	 
	 	 	Mr. Hubbell is not permitted to accept or demand, either directly or
indirectly, any form of commission, compensation or fee in any form whatsoever
or gifts from third parties in connection with the performance of his duties of
employment under this contract, without prior written permission from the
Chairman and Vice-Chairman of

12

 

	 	 	the Supervisory Board. The provisions of the previous sentence do not apply to
reasonable promotional gifts.
	 
	31.	 	Repatriation
	 
	 	 	Any expenses incurred by Mr. Hubbell or his family in returning to the USA
shall be paid or reimbursed by ING, regardless of the reason the employee and
his family return to the USA, in a manner consistent with his family’s move
to the Netherlands.
	 
	32.	 	Collective Employment Agreement (“CAO”)
	 
	 	 	The ING Group CAO is not applicable to Mr. Hubbell
	 
	33.	 	Settlement of disputes
	 
	33.1	 	Notwithstanding article 7:685 of the Netherlands Civil Code, all disputes
between the parties of any nature whatsoever, that may arise from or in
connection with this Contract, shall be exclusively adjudicated by
arbitration by an arbitration tribunal consisting of three arbiters (the
“Arbitration Tribunal”).
	 
	33.2	 	At either party’s request, made known to the other party by facsimile or
registered letter (“Arbitration Request”), each of the parties shall
nominate within two weeks of the date of dispatch of the Arbitration
Request, one member of the Arbitration Tribunal. At the request of both
parties or either party and made known to the two members appointed to the
Arbitration Tribunal, these members shall together appoint within two
weeks after they have been appointed, as third and presiding member of the
Arbitration Tribunal a person who is acceptable to both parties.
	 
	33.3	 	If the Arbitration Tribunal has not been properly constituted within six
weeks after the Arbitration Request was dispatched, all members of
Arbitration Tribunal shall be appointed by the President of the District
Court of Amsterdam at the request of either party.
	 
	33.4	 	A member of the Board or the Supervisory Board may not be appointed as
member of the Arbitration Tribunal. The Arbitration Tribunal shall
determine the costs of the proceedings including the remuneration for the
members of the Arbitration Tribunal and the Arbitration Tribunal shall
decide which party will bear these costs. Any advances to be made to the
Arbitration Tribunal shall be borne equally by the parties.

13

 

	33.5	 	Appeal against an arbitration judgement is excluded and the arbitration
provisions of this Employment Contract are without prejudice to the right of
a party to seek a summary judgement from the President of the District Court
of Amsterdam.

Agreed and signed in two copies in Amsterdam on 4 February 2002,

ING AMERICA Insurance Holdings Inc

Title: Head of Human Resources, ING America

Mr. F.S. Hubbell

Mr. C.A.J. Herkstroter

Chairman of the Board of Supervisory Directors of ING Groep N.V
Mr. M. Ververs,

Chairman of the Board of Supervisory Directors of

ING Verzekeringen N.V and ING Bank N.V.

Mr E. Kist

Chairman of the Board of Executive Directors of ING Groep N.V

14

 

1999 GRANT

ING GROEP N.V.

AMENDMENT TO THE STOCK APPRECIATION RIGHT

AGREEMENT (the “Amendment”)

This supplemental agreement (the “Amendment”) between ING Groep NV (the
“Employer”) and Mr. F. Hubbell (“the Employee”) is intended to revise certain
provisions of the ING Groep N.V. Stock Appreciation Agreement (the “Agreement”)
which Agreement entered into effect on 28 May 1999 (the “Grant Date”).

This Amendment, together with the Agreement effective as at 28 May 1999 and the
rules of the ING Groep Stock Appreciation Plan (the “Plan”), set out the terms
and conditions under which the Employee continues to participate in the Plan.
The definitions of the terms used in this Amendment follow those definitions
listed in Article I of the Plan.

Following the consent and approval of the Committee, the Employer is empowered
and has decided to revise the following provisions of the Agreement effective
as at 28 May 1999 and the Plan as follows:

Notwithstanding Article 5.1.3 of the Plan and Clause 3 of the Agreement, the
Stock Appreciation Right shall become exercisable on the earliest of (i) the first
day of the First Window Period that occurs after the date the Employee ceases
to be employed by the Employer or any Group Company; (ii) the first day of the
First Window Period that occurs after a period of 30 days has elapsed following
the date the Employee leaves The Netherlands on a permanent basis; and (iii)
the third anniversary of the Grant Date, being 28 May 2002. For the purposes of
the Plan, the Agreement effective as at 28 May l999 and this Amendment, the
term “exercisable” relates to the ability but not the obligation to exercise.

Furthermore, notwithstanding Articles 5.2.1 and 5.2.2 of the Plan and Clause
4 of the Agreement, the Stock Appreciation Right shall no longer lapse (i) on
the last day of the First Window Period that occurs after a period of 30 days
has elapsed following the date the Employee ceases to be employed by the
Employer or any Group Company nor (ii) on the last day of the First Window
Period that occurs after a period of 60 days has elapsed following the date the
Employee leaves The Netherlands on a permanent basis.

As stated in Article 5.2.3 of the Plan and Clause 4 of the Agreement, any
unexercised Stock
Appreciation Right shall in all cases lapse on, and contain no value as from,
the fifth anniversary of the Grant Date, being 28 May 2004 (the “Expiration
Date”).

By signing this Amendment, the Employee agrees to these revised terms.

This Amendment will be subject to Dutch law. Any disputes arising out of, or in
connection with, this Agreement will be submitted to the competent courts of
Amsterdam.

	 	 	 
	ING Groep N.V.

Signed on behalf of the Employer	 	Mr. F Hubbell

Signature of the Employee
	 
	4 February 2002

Date signed on behalf of the Employer	 	4 February 2002

Date signed by the Employee

 

2000 GRANT

ING GROEP N.V.

AMENDMENT TO THE STOCK APPRECIATION RIGHT

AGREEMENT (the “Amendment”)

This supplemental agreement (the
“Amendment”) between ING Groep NV (the
“Employer”) and Mr. F. Hubbell (“the Employee”) is intended to revise certain
provisions of the ING Groep N.V. Stock Appreciation Agreement (the “Agreement”)
which Agreement entered into effect on
3 April 2000 (the “Grant Date”).

This Amendment, together with the Agreement effective as at 3 April 2000 and
the rules of the ING Groep Stock Appreciation Plan (the “Plan”), set out the
terms and conditions under which the Employee continues to participate in the
Plan. The definitions of the terms used in this Amendment follow those
definitions listed in Article 1 of the Plan.

Following the consent and approval of the Committee, the Employer is empowered
and has decided to revise the following provisions of the Agreement effective
as at 3 April 2000 and the Plan as follows :

Notwithstanding Articles 5.2.1 of the Plan and Clauses 3 and 4 of the
Agreement, the Stock Appreciation Right shall no longer lapse on the last day
of the First Window Period that occurs after a period of 30 days has elapsed
following the date the Employee ceases to be employed by the Employer or any
Group Company.

Furthermore, notwithstanding Articles
5.2.1 and 5.2.2 of the Plan and Clause 4 of
the Agreement, the Stock Appreciation Right shall no longer lapse (i) on the
last day of the First Window Period that occurs after a period of 30 days has
elapsed following the date the Employee ceases to be employed by the Employer
or any Group Company nor (ii) on the last day of the First Window Period that
occurs after a period of 60 days has elapsed following the date the Employee
leaves The Netherlands on a permanent basis.

Any unexercised Stock Appreciation Right shall in all cases lapse on, and
contain no value as from, the fifth anniversary of the Grant Date, being 3
April 2005 (the “Expiration Date”).

For the purposes of the Plan and the Agreement effective as at 3 April 2000,
the term “exercisable” relates to the ability but not the obligation to
exercise.

By signing this Amendment, the Employee agrees to these revised terms.

This Amendment will be subject to Dutch law. Any disputes arising out of, or in
connection with, this Agreement will be submitted to the competent courts of
Amsterdam.

	 	 	 
	ING Groep N.V

	 	Mr. F Hubbell

	Signed on behalf of the Employer	 	
Signature of the Employee
	 
	4 February 2002
	 	4 February 2002

	Date signed on behalf of the Employer	 	
Date signed by the Employee

 

2001 GRANT

ING GROEP N.V.

AMENDMENT TO THE STOCK APPRECIATION RIGHT

AGREEMENT (the “Amendment”)

This supplemental agreement (the “Amendment) between ING Groep NV (the
“Employer”) and Mr. F. Hubbell (“the Employee”) is intended to revise certain
provisions of the ING Groep N.V, Stock Appreciation Agreement (the “Agreement”)
which Agreement entered into effect on 15 March 2001 (the “Grant Date”).

This Amendment, together with the Agreement effective as at 15 March 2001 and
the rules of the ING Groep Stock Appreciation Plan (the “Plan”), set out the
terms and conditions under which the Employee continues to participate in the
Plan. The definitions of the terms used in this Amendment follow those
definitions listed in Article 1 of the Plan.

Following the consent and approval of the Committee, the Employer is empowered
and has decided to revise the following provisions of the Agreement effective
as at 15 March 2001 and the Plan as follows:

Notwithstanding Articles 5.2.1 of the Plan and Clauses 3 and 4 of the
Agreement, the Stock
Appreciation Right shall no longer lapse on the last day of the First Window
Period that occurs after a period of 30 days has elapsed following the date the
Employee ceases to be employed by the Employer or any Group Company.

Furthermore, notwithstanding Articles 5.2.1 and 5.2.2 of the Plan and Clause 4
of the Agreement, the Stock Appreciation Right shall no longer lapse (i) on the
last day of the First Window Period that occurs after a period of 30 days has
elapsed following the date the Employee ceases to be employed by the Employer
or any Group Company nor (ii) on the last day of the First Window Period that
occurs after a period of 60 days has elapsed following the date the Employee
leaves The Netherlands on a permanent basis.

Any unexercised Stock Appreciation Right shall in all cases lapse on, and
contain no value as from, the fifth anniversary of the Grant Date, being 15
March 2006 (the “Expiration Date”).

For the purposes of the Plan and the Agreement effective as at 15 March 2001,
the term “exercisable” relates to the ability but not the obligation to
exercise.

By signing this Amendment, the Employee agrees to these revised terms.

This Amendment will be subject to Dutch law. Any disputes arising out of, or in
connection with, this Agreement will be submitted to the competent courts of
Amsterdam.

	 	 	 
	ING Groep N.V

	 	Mr F Hubbell

	Signed on behalf of the Employer	 	
Signature of the Employee
	 	 	 
	4 February 2002

	 	4 February 2002

	Date signed on behalf of the Employer	 	
Date signed by the Employee

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