Document:

EXHIBIT 4.07

 

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

 

DEFINITIONS

 

	
Agreement:
    	
 
    	
the agreement between   the Participant and the Company concluded at the start of participation in   the Plan Rules containing the terms and conditions relating to the   Variable Compensation under the Plan Rules;
    
	
 
    	
 
    	
 
    
	
AEGON or the Company:
    	
 
    	
AEGON N.V., a public   limited liability company incorporated under Dutch law and having its   statutory seat at AEGONplein 50, 2591 TV, The Hague, The Netherlands and,   where applicable, any of its Subsidiaries;
    
	
 
    	
 
    	
 
    
	
AEGON Group:
    	
 
    	
AEGON N.V. and its   Subsidiaries;
    
	
 
    	
 
    	
 
    
	
Allocation:
    	
 
    	
means the allocation of   a Variable Compensation Grant following the Ex ante risk-based assessment   pursuant to clause 4.6 and the assessment of actual realized performance on   the Performance Indicators;
    
	
 
    	
 
    	
 
    
	
Business Day:
    	
 
    	
any day on which the   NYSE Euronext stock exchange in Amsterdam, the Netherlands (or its successor)   is open for business;
    
	
 
    	
 
    	
 
    
	
Change of Control:
    	
 
    	
a transaction or series   of transactions or the conclusion of an agreement, that either alone or taken   together may result in an outside party obtaining Control of the Company;
    
	
 
    	
 
    	
 
    
	
Claw Back:
    	
 
    	
means the claw back   right of the Company pursuant to clause 4.7;
    
	
 
    	
 
    	
 
    
	
Committee:
    	
 
    	
the Compensation   Committee of the Supervisory Board;
    
	
 
    	
 
    	
 
    
	
Compliance Officer:
    	
 
    	
the Compliance Officer   of AEGON;
    
	
 
    	
 
    	
 
    
	
Control:
    	
 
    	
means (i) the   possession, directly or indirectly, of the majority of the outstanding shares   in the capital of the Company, or (ii) the ability, directly or   indirectly, to vote on the majority of the outstanding shares in the capital   of the Company or (iii) the ability, directly or indirectly, to appoint   the majority of the members of the Executive Board and/or the Supervisory   Board;
    
	
 
    	
 
    	
 
    
	
Disability or Disabled:
    	
 
    	
a Participant who is   totally and permanently disabled, as defined by any applicable disability   law;
    
	
 
    	
 
    	
 
    
	
Ex-ante risk-based assessment:
    	
 
    	
means the assessment   referred to in clause 4.5;
    
	
 
    	
 
    	
 
    
	
Executive Board:
    	
 
    	
the Executive Board of the   Company;
    
	
 
    	
 
    	
 
    
	
Fixed Salary:
    	
 
    	
the annual amount of   fixed compensation to be determined as part of the Total Compensation,   including holiday allowance and 13th month, if any;
    
	
 
    	
 
    	
 
    
	
Grant(s):
    	
 
    	
the conditional grant of   Long Term Variable Compensation to a Participant in relation to the Plan   Year, as set out in section 2 of the Plan Rules;
    

 

 

	
Grant Date:
    	
 
    	
has the meaning   attributed hereto in section 2.8;
    
	
 
    	
 
    	
 
    
	
Grant Price:
    	
 
    	
means the average Share   price on the NYSE Euronext stock exchange in Amsterdam, the Netherlands   during the period 15 December preceding the Plan Year and 15   January of the Plan Year;
    
	
 
    	
 
    	
 
    
	
Holding Period:
    	
 
    	
means the holding period   as referred to in clause 5.4;
    
	
 
    	
 
    	
 
    
	
Identified Staff:
    	
 
    	
employees of AEGON Group   who have been identified by the Company as Identified Staff;
    
	
 
    	
 
    	
 
    
	
Long Term Variable Compensation:
    	
 
    	
the long term variable   component of the Total Compensation, which will be paid in Shares in   accordance with these Plan Rules;
    
	
 
    	
 
    	
 
    
	
Long Term Variable Compensation Plan   Rules or Plan Rules:
    	
 
    	
the Long Term Variable   Compensation Plan Rules that set out the terms and conditions of the   Long Term Variable Compensation, attached as Appendix 2, as may be amended   from time to time;
    
	
 
    	
 
    	
 
    
	
Other Staff:
    	
 
    	
a Participant (including   Staff in Control Functions) who does not qualify as an Executive Board Member   or Identified Staff;
    
	
 
    	
 
    	
 
    
	
Participant:
    	
 
    	
a Participant who is an   employee of AEGON Group and who has accepted the terms and conditions of the   Long Term Variable Compensation Plan Rules by signing the Agreement;
    
	
 
    	
 
    	
 
    
	
Pay-out or Paid-out:
    	
 
    	
means the pay-out of all   or part of the Long Term Variable Compensation after the third financial year   (i.e., the second year following the Performance Year) in accordance with   these Plan Rules;
    
	
 
    	
 
    	
 
    
	
Pay-out Date:
    	
 
    	
means the date of a   Pay-out in accordance with these Plan Rules;
    
	
 
    	
 
    	
 
    
	
Performance Indicators:
    	
 
    	
the one-year performance   indicators which will be used to calculate the allocated Long Term Variable   Compensation of a Participant regarding the Plan Year in accordance with   section 3 of these Plan Rules;
    
	
 
    	
 
    	
 
    
	
Plan Year or Performance Year:
    	
 
    	
the financial year 2011   during which these Plan Rules are in place. In the event the Plan   Rules are terminated prior to the end of the financial year, the   expression ‘Plan Year’ shall refer to the period between January 1 and   the date of termination;
    
	
 
    	
 
    	
 
    
	
Release(d):
    	
 
    	
means the release of any   Shares to the Participant following Vesting, or, in case a Holding Period   applies at the end of such Holding Period, in accordance with these Plan   Rules;
    
	
 
    	
 
    	
 
    
	
Release Date:
    	
 
    	
the date of Release;
    
	
 
    	
 
    	
 
    
	
Remuneration Framework:
    	
 
    	
the AEGON Group Global   Remuneration Framework 2011 as may be amended from time to time;
    
	
 
    	
 
    	
 
    
	
Retirement:
    	
 
    	
the (early) actual   retirement of a Participant, either (i) under a pension plan of the   Company or any of its Subsidiaries, as shall be in place from time to time or   (ii) subsequent to a decision of the Company in accordance with the   Company’s articles of incorporation or an individual employment contract. If   under local laws the starting date of (early) retirement is at the option of   the Participant, a Participant will only be considered a Good Leaver if such   Participant 
    

 

 

	
 
    	
 
    	
actually starts drawing   (early) retirement benefits;
    
	
 
    	
 
    	
 
    
	
Sale:
    	
 
    	
a sale of all or   substantially all the shares in the capital of the Company or all or   substantially all of the assets of the Company and its Subsidiaries;
    
	
 
    	
 
    	
 
    
	
Shares:
    	
 
    	
a common share in the   capital of the Company, with a nominal value of EUR 0.12 (twelve eurocent),   as may be granted as part of the Long Term Variable Compensation;
    
	
 
    	
 
    	
 
    
	
Subsidiary:
    	
 
    	
a direct or indirect   subsidiary of the Company determined as such by the Company for the purpose   of these Plan Rules;
    
	
 
    	
 
    	
 
    
	
Supervisory Board:
    	
 
    	
the Supervisory Board of   the Company;
    
	
 
    	
 
    	
 
    
	
System:
    	
 
    	
an Internet application   made available by AEGON which facilitates a Participant with transactions   regarding the Shares or any other system designated by the Executive Board   for such purpose1;
    
	
 
    	
 
    	
 
    
	
Total Compensation:
    	
 
    	
the Total Compensation   for a Participant which consists of a Fixed Salary, Long Term Variable   Compensation and any other arrangement(s) regarding variable   compensation in cash (if any) that may apply to a Participant;
    
	
 
    	
 
    	
 
    
	
Vest(ing):
    	
 
    	
the occasion upon which   a Participant is transferred the unconditional legal ownership of the   initially conditionally granted Shares, as set out in the Plan Rules;   notwithstanding that Release of Shares may only take place after the lapsing   of a Holding Period; and
    
	
 
    	
 
    	
 
    
	
Vesting Date:
    	
 
    	
the date on which date   the Shares will Vest in accordance with the Plan Rules.
    

 

 

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

 

1.1.1.      Definitions and terms used in these Plan Rules can be found in the list of Definitions; these definitions as stated therein shall be binding;

 

1.1.2.      All references to the masculine gender include the feminine and vice versa;

 

1.1.3.      All references to singular include the plural and vice versa if the context so requires;

 

1.1.4.      All headings and sub-headings are for ease of reference only, and shall not affect the interpretation of any clauses of these Plan Rules;

 

1.1.5.      All references to any enactment or terms under Dutch law shall be extended to other applicable laws or terms of any other country, or region of a country;

 

1.1.6.      All references to tax and/or social security contributions and/or withholding taxes include any tax, social security contribution or withholding tax that is levied or withheld in the Netherlands or any other applicable jurisdiction.

 

1                                    Currently UBS EquatePlus

 

 

1.            Introduction and purpose

 

1.1.         These Long Term Variable Compensation Plan Rules (the Plan Rules) are intended to provide for Long Term Variable Compensation in the form of Shares to eligible employees of AEGON Group and its Subsidiaries who qualify as Other Staff (not being an Executive Board member or Identified Staff) and become a Participant to strengthen their commitment to the Company’s business strategy, risk tolerance and long-term performance, as further set out in the Remuneration Framework or any other arrangements applicable to Participants.

 

1.2.         These Plan Rules are subject to the terms and conditions of the Remuneration Framework and/or other arrangements regarding variable compensation that may apply to the Participant.

 

1.3.         In the event of any discrepancies or inconsistencies between these Plan Rules and the Remuneration Framework, the latter shall prevail.

 

1.4.         In these Plan Rules, unless the context otherwise requires, the capitalized words and expressions shall have the meaning as set forth in the list of Definitions.

 

2.            Conditional Grant Variable Compensation

 

2.1.         The Company may conditionally grant a Participant a conditional entitlement to Long Term Variable Compensation.

 

2.2.         A conditional entitlement to Long Term Variable Compensation will only be made to a Participant upon acceptance of these Plan Rules. The Participant will sign an Agreement offered by the Company to such effect.

 

2.3.         A Participant who becomes an employee of the Company during the Plan Year, and who has signed an Agreement during the first six months of the Plan Year, may be granted a conditional entitlement to Long Term Variable Compensation which shall be on a pro rata basis to reflect the period of active service. Any deviations from this pro-rata principle and any Grants made upon employment at a later stage during the Plan Year will require prior approval of the Company.

 

2.4.         The number of Shares to which a Participant will be conditionally entitled shall be calculated during the first quarter of the Plan Year by dividing the Long Term Variable Compensation by the Grant Price and the outcome shall be rounded down to the nearest share.

 

2.5.         The Long Term Variable Compensation is conditionally granted and the conditional right to Long Term Variable Compensation is subject to the conditions precedent (i) that, unless stated otherwise or approved by the Company, the Participant will remain employed within the AEGON Group uninterruptedly until the Vesting Date of each part of the Long Term Variable Compensation, (ii) that the minimum levels of the Performance Indicators are achieved, as further set out in clause 4.1 of these Plan Rules and (iii) an Ex-ante as set out in clause 4.5 of these Plan Rules.

 

2.6.         The employment of the Participant is considered continued uninterruptedly in the case where the Participant’s employment is terminated due to long-term ill health, disability, (early) retirement, death or reduction of work force or redundancy of the job or position of the Participant without cause by the Participant, during the period until a Vesting Date and, consequently, such Participant is considered to be a “Good Leaver.” In addition, the Company may, at its full discretion, declare a Participant to be a Good Leaver. Long term ill health, disability and (early) retirement shall have the meaning as defined under the applicable rules and regulations within AEGON, or in the absence thereof, as determined under the applicable local laws and regulations. In case of any unclarity on whether the Participant qualifies as a Good Leaver, the Company in its sole discretion will decide.

 

2.7.         In the event of termination of employment of a Good Leaver during the Plan Year, in principle, the Long Term Variable Compensation that shall be paid-out (including the number of conditionally granted Shares that shall Vest) shall be pro-rated to reflect the period of active service from the Grant Date until the termination of employment, subject to the final approval of the Company. The Long Term Variable Compensation that shall be paid out (including the number of conditionally granted Shares that shall Vest) shall be determined and paid out in

 

 

accordance with clause 4 of these Plan Rules after the adoption of the Annual Report at the Annual General Meeting of Shareholders.

 

2.8.         The Grant Date will be 1 January 2011, irrespectively whether the amount and/or value of the conditional Long Term Variable Compensation and/or the Performance Indicators will be set later.

 

3.            Performance Indicators

 

3.1.         The Performance Indicators applicable to the Plan Year have been or shall be established by the Company in accordance with the guidelines of the Remuneration Framework and shall be based on financial and non-financial targets. In the process of setting and evaluating Performance Indicators and targets used for the determination of Long Term Variable Compensation, relevant experts from control functions shall be consulted or involved.

 

3.2.         The Performance Indicators may consist of Group Indicators, Reporting Unit Indicators and Strategic / Functional / Personal Indicators which represent both financial and non-financial Indicators. Strategic / Functional / Personal Indicators shall be selected for a Participant individually and shall be provided to the Participant in writing.

 

3.3.         One-year minimum, target and maximum levels relating to the Performance Year will be set for each Performance Indicator.

 

4.            Allocation, Vesting, Pay-out and Release of Long Term Variable Compensation

 

4.1.         After the Performance Year, the Company shall assess the realized performance of each Performance Indicator and a comparison will be made between the minimum, target and maximum levels of the Performance Indicators and the realized performance. Subsequently, the amount of the Long Term Variable Compensation (including the number of Shares) that will be Allocated will be established.

 

4.2.         Subject to the Ex-ante risk-based assessment referred to in clause 4.5, the Long Term Variable Compensation that is Allocated, if any, shall be paid out and Released to the Participant as soon as possible in accordance with payroll requirements of a Subsidiary after the adoption of the Company’s Annual Report relating to the third financial year (i.e., the second financial year following the Performance Year) at the respective Annual General Meetings of Shareholders or after a further Holding Period as set out in clause 5.4.

 

4.3.         Any details as referred to in clause 4.2 regarding (i) the amount of Allocated Long Term Variable Compensation, including the number of Shares and (ii) related Pay-out and Release of such Shares and (iii) any Holding Period (if applicable), will be notified to the Participant in writing.

 

4.4.         Except in the event a Participant is a Good Leaver, the Long Term Variable Compensation that is conditionally granted will become null and void on the date that the employment of the Participant is terminated prior to a Vesting Date of the Long Term Variable Compensation.

 

4.5.         The Allocation of any part of the Long Term Variable Compensation is subject to an Ex-ante risk-based assessment by the Company in order to determine whether conditionally granted Long Term Variable Compensation should be Allocated in full or should be Allocated applying a downwards adjustment. This Ex-ante risk-based assessment will be applied in order to:

 

(i)            ensure that the projected Variable Compensation is aligned with the risk profile of the AEGON Group and Reporting Unit/Subsidiary;

 

(ii)           provide a perspective on the long-term financial and risk effects of the equity element of Variable Compensation;

 

(iii)         take into account quantitative and qualitative AEGON Group, Reporting Unit/Subsidiary and individual factors mitigating performance results.

 

 

4.6.         The Company shall review these Ex-ante risk-based criteria in detail at each Allocation and Vesting Date and document its findings. Relevant experts from control functions shall be consulted or involved in this review process if required or desirable.

 

4.7.         The Company shall be authorized, in accordance with applicable laws and regulations, to reclaim (‘Claw Back’) any Long Term Variable Compensation (whether Vested, Paid-out or Released) to the Participant in case of:

 

(i)            Incorrect data (including non-achievement of Performance Indicators on hindsight);

 

(ii)           material financial restatements2; or

 

(iii)          individual gross misconduct of the Participant.

 

4.8.         In the event of a Claw Back the Company will determine the gross amount in cash that is subject to Claw Back. All or part of the Paid out or Released Variable Compensation that is subject to Claw Back will need to be repaid by the Participant at first demand by the Company as a gross amount in cash, and the entitlement on all or part of the Variable Compensation that is Vested and not yet Paid-out or Released that is subject to Claw Back will lapse, whereby any Shares will be taken into account for the Grant Price. The Company will be entitled to set-off or settle any gross amount owed by the Participant to the Company (i) by any current or future obligations if possible (including but not limited to any salary payments or pension payments) that the Company has against the Participant and/or (ii) against any Allocated and/or Vested but not yet Paid-out or Released Variable Compensation, whereby any Shares will be taken into account for the Grant Price. If and to the extent the Company does not exercise the set-off or settlement right, the Participant will repay the gross amounts due in cash as soon as possible upon instructions of the Company.

 

4.9.         The Company shall inform the Participant as soon as possible of the outcome of the Ex-ante and Claw Back assessment and its decision. The Participant shall have no claim for damages or compensation against the Company or a Subsidiary for any consequences (whether financial, tax, governmental, personal or other consequences) following the Ex-ante or Claw Back assessments resulting in the Long Term Variable Compensation being adjusted downwards.

 

4.10.       The Company may, in its sole discretion, direct the Executive Board or the management board of a Subsidiary to determine whether any further action may be necessary with respect to the Claw Back assessment for any local circumstances.

 

4.11.       No dividend or interest will accrue on any part of the Long Term Variable Compensation before Vesting in accordance with these Plan Rules.

 

4.12.       Vested Shares, whether or not subject to a Holding Period as set out in clause 5.4, will accrue dividends as from the Vesting Date, which dividend will be equal to the amount of dividends declared on the Company’s Shares. Accrued dividends will be paid out in cash and / or Shares at the Release Date.

 

4.13.       In connection with any actual or potential Sale or Change of Control or a transaction concerning the sale of a Subsidiary or business unit within AEGON Group, the Company will take all such actions hereunder as it may determine to be necessary or appropriate to treat Participants equal and equitably hereunder, at the discretion of the Supervisory Board, including without limitation the modification or waiver of applicable Performance Indicators, and whether to establish or fund another arrangement intended for variable incentives. The Company may, in its sole discretion, direct the Executive Board or the management board of a Subsidiary to determine whether any further action may be necessary in the event of a Sale or Change of Control of a Subsidiary or business unit.

 

5.            Terms and Conditions regarding the Shares

 

5.1.         Transfer of ownership of the Shares to the Participant shall take place on the relevant Vesting Date. Upon Vesting, the Shares and any transactions regarding the Shares will be at the risk and for the account of the Participant.

 

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

 

 

5.2.         At each of the Vesting Dates, the Shares, less any Shares which shall be sold and settled to pay for any applicable taxes, social security premiums and possible other deductions by the government due in connection with the Vesting of the Shares (unless the Participant indicates that he/she prefers that such Shares shall not be sold and settled, as set out in clause 5.3 of these Plan Rules), shall be transferred into a current account of the Participant held at the System.

 

5.3.         If a Participant prefers not to sell any Shares in connection with any applicable taxes, social security premiums and possible other deductions by the government due in connection with the Vesting, such Participant should notify the Compliance Officer of such preference in writing during any period which is not a black-out period as referred to in clause 7.2 of these Plan Rules. The Participant acknowledges that he/she should have sufficient funds available at the Vesting Date to pay any taxes due.

 

5.4.         Notwithstanding Vesting, the Company may impose a restriction on the Participant to hold the Shares for a certain Holding Period following the relevant Vesting Date and the Participant will, if such restriction is imposed, not be entitled to execute any transactions regarding the Shares during this Holding Period, except as provided in clause 7.3 of these Plan Rules. After this Holding Period, the Shares shall be Released and the Participant will be entitled to exercise its rights relating to the Shares as provided for in these Plan Rules. For the avoidance of any doubt, this provision will not be affected if the employment of a Participant is terminated during this Holding Period for whatever reason. The applicable Holding Period, as referred to in this section will be notified to the Participant in writing.

 

5.5.         Release of any Shares will take place at the Release Date, which may take place following the Vesting Date, or, in case a Holding Period applies as set out in clause 5.4, following the end date of the relevant Holding Period.

 

6.            Transactions regarding the Shares

 

6.1.         The Participant can only perform any Transactions regarding Shares, once they have been Vested and Released, in accordance with clause 5.

 

6.2.         Transactions regarding the Shares can be executed only by submitting an order in the System. Transactions regarding the Shares can be executed on Business Days only. If it is not possible to exercise on the indicated day (for any reason), the exercise will take place on the first Business Day on which exercising the order will be possible, such at the risk of the Participant.

 

6.3.         When the Participant has filed an order to sell all or part of the Shares, the Company will use its best efforts to sell the number of Shares indicated by the Participant at the NYSE Euronext stock exchange in Amsterdam, The Netherlands as soon as possible after the request as referred to in clause 6.1 of these Plan Rules has been processed in the System.

 

6.4.         The Company shall pay the value of the Shares as calculated on the basis of the Share price at the NYSE Euronext stock exchange in accordance with clause 6.3 of these Plan Rules as soon as possible after the order has been processed and the Shares have been sold. The Company shall be entitled to withhold any (trade) costs, taxes (or other amounts to be deducted) due on the value of the Share after exercise and the remaining amount shall be remitted to the Participant in accordance with appropriate payroll practices. The Participant hereby accepts the tax consequences of any transactions regarding the Shares. In case of late payment the Company will have no obligation to compensate interest to the Participant.

 

6.5.         Upon the termination of employment of a Participant, the Shares that have Vested pursuant to clause 4 shall, at the option of the Participant (or the legal personal representative of the deceased Participant), (i) remain registered in the System, (ii) be transferred into another current account as designated by the Participant to the Company or (iii) be sold and be paid to the Participant in accordance with clauses 6.3 and 6.4 of these Plan Rules. Such transfer or sale and the corresponding payment shall be executed at the lapse of the Holding Period (if applicable) set out in clause 5.4 of these Plan Rules or as soon as possible thereafter.

 

 

6.6.         The Company does not accept any liability with regard to the processing of any orders for any transactions regarding the Shares by the Participant in any way.

 

6.7.         The Company is entitled to amend the procedure for transactions regarding the Shares from time to time at its absolute discretion. The Company will inform the Participant of any relevant change in the procedure.

 

6.8.         The costs of any transactions regarding the Shares will be for the account of the Participant.

 

7.            Regulatory restrictions and inside information

 

7.1.         The Shares are stocks traded at the NYSE Euronext stock exchanges in Amsterdam and New York and, consequently, are governed by laws and regulations with regard to inside information. No transactions (including but not limited to a sale of the Shares) regarding the Shares may be effected when the Participant has inside information. Inside information is defined as “knowledge of information which is specific, which directly or indirectly concerns the Company or the trade in AEGON securities, which has not been made public and which, if made public, could have a significant influence on the price of the AEGON securities”.

 

7.2.         In any event, no transaction regarding the Shares may be effected during the following black-out periods:

 

(i)            a period immediately preceding the publication of the Company’s annual report;

 

(ii)           a period immediately preceding the publication of the Company’s six-month results and the quarterly results or the announcement of any dividend or interim dividend; and

 

(iii)          any additional black-out periods mandatory for designated employees as announced by the Company’s Compliance Officer from time to time.

 

The periods referred to under (i) and (ii) will be announced annually by the Compliance Officer.

 

7.3.         The ban in clauses 5.4, 7.1 and 7.2 of these Plan Rules are not applicable in the event of a transaction regarding a Share that takes place at the Vesting Date to cover for any taxes, social insurance premiums and possible other deductions by the government due by the Participant in connection with the Vesting and/or, Release of the Shares into its account, in accordance with clauses 5.2 and 5.3 of these Plan Rules.

 

7.4.         The Participant must at all times comply with the applicable laws and regulations and the Company’s insider trading rules (the “AEGON N.V. Employee Insider Trading Rules” or the “AEGON N.V. Insider Trading Rules,” whichever applies to a Participant) as amended from time to time. These regulations include the requirement for the Participant to notify any transactions within five days following such transaction (i) to the Company’s Compliance Officer and (ii) if the Participant qualifies as ‘designated insider’ according to the AEGON N.V. Insider Trading Rules, to the Dutch Authority for the Financial Markets (“AFM”). Vesting is considered a transaction which requires notification to the Company’s Compliance Officer and the AFM in accordance with the above insider dealing rules. In the event of any questions or doubts, the Participant should contact the Company’s Compliance Officer.

 

8.            Additional conditions

 

8.1.         The costs, legal mandatory tax deductions, employee social insurance premiums and possible other deductions by the government relating to Long Term Variable Compensation (whether on the employee or on the employer) shall be for the account of the Participant and shall be deducted from the salary payment to the Participant or the pension payment to the Participant if possible. All expenses and costs in connection with the operation of these Plan Rules shall be borne by the Company.

 

8.2.         The Shares that have been granted as part of the Long Term Variable Compensation are strictly personal and the right to receive such Shares cannot be assigned or transferred in any way or in any other manner of passing of title.

 

 

The Shares that have been conditionally granted but not been delivered and transferred cannot be pledged or encumbered in any other way. The Shares that may have been assigned, transferred, pledged or encumbered in any manner in contravention of this clause become null and void and will not be delivered or transferred to the Participant.

 

8.3.         The Participant hereby acknowledges and agrees that AEGON may disclose certain details to any governmental or regulatory authority (including tax authorities) regarding the Shares that a Participant (conditionally) holds, including but not limited to the number, the value and any dividend regarding the Shares.

 

8.4.         It is not allowed to hedge the Shares, for example by the selling or purchasing of options on Shares, whether or not marketable.

 

8.5.         In the event of any changes in the capital structure of the Company between the start of the Plan Year (conditional grant of Long Term Variable Compensation) and the Vesting of Shares which results in an increase of the total share capital or a material change in the structure of the share capital or share premium of the Company and a change in the economic equivalence of the Shares, the Company may at its absolute discretion adjust the number of conditionally granted Shares in accordance with customary anti-dilution market practice provisions. Any such adjustment should not lead to the total Long Term Variable Compensation exceeding the maximum percentage of the Fixed Salary.

 

8.6.         Granting the Long Term Variable Compensation (including Shares) to the Participant according to these Plan Rules is restricted to the Plan Year. Granting of Long Term Variable Compensation (including Shares) during any other financial year is the absolute discretion of the Company. The Company has no obligation to grant Long Term Variable Compensation (including Shares) in the future.

 

8.7.         The Company may at any time unilaterally amend any term or condition of these Plan Rules. In particular, the Company is free to amend any term or condition in the case of new (fiscal, employment or other) legislation and/or amended regulations and/or directions, requests or instructions by or on behalf of any financial supervising authorities and/or other guidelines as applicable from time to time within the financial sector.

 

8.8.         The Shares do not form part of the employment agreement of any Participant, nor grant any Participant any employment rights or guarantee employment as an employee of the Company and no (future) rights or benefits can be obtained or implied other than as specifically set out in these Plan Rules.

 

8.9.         No damages or compensation shall be payable in consequence of the termination of employment (whether or not in circumstances giving rise to a claim for wrongful or unfair dismissal or local equivalent thereof) or for any other reason whatsoever to compensate him for the loss of any rights the Participant would otherwise have had (actual or contingent) under these Plan Rules and the Participant shall be deemed irrevocably to have waived any such rights to which it may otherwise have been entitled.

 

8.10.       No individual shall have any claim against the Company arising out of his not being admitted to participation in these Plan Rules which (for the avoidance of doubt) is entirely at the full discretion of the Company.

 

8.11.       No Participant shall be entitled to claim compensation from the Company in respect of any sums paid by him pursuant to these Plan rules or for any diminution or extinction of its rights or benefits (actual or otherwise) under any Long Term Variable Compensation held by him/her following the lapse for any reason of any Long Term Variable Compensation held by him or otherwise in connection with these Plan Rules and the Company shall be entirely free to conduct its affairs as it sees fit without regard to any consequences under, upon or in relation to these Plan Rules or any Long Term Variable Compensation.

 

8.12.       By accepting any Long Term Variable Compensation, the Participant hereby explicitly and unambiguously consents to the collection, storage, use, processing and transfer, in electronic or other form, of his/her personal data (as described below) by and among, as applicable, the Company and/or by the System for the exclusive purpose of implementing, administering and managing his/her Long Term Variable Compensation, and the transfer of such

 

 

data by them to government and other regulatory authorities for the purpose of complying with their legal obligations in connection with any Grants of Long Term Variable Compensation.

 

8.13.       This data may include the Participant’s name, home address and telephone number, email address, date of birth, social security number or other identification number, salary, nationality, job title, details of all rights and any other entitlement to shares awarded, cancelled, purchased, vested, unvested or outstanding (Data). The Company is the data controller for this Data.

 

8.14.       The Participant further agrees that Data may be transferred to any third parties assisting in the implementation, administration and management in connection with these Plan Rules, that these recipients may be located in his/her country, or elsewhere including outside the European Economic Area, and that such location may have less adequate data privacy laws and protections than the Participant’s own country.

 

8.15.       Data will be held only as long as necessary to implement, administer and manage these Plan rules. The Participant may, at any time, view the Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data or refuse or withdraw the consents herein, in any case without cost.

 

8.16.       Refusing or withdrawing his/her consent as referred to in this clause 8, although it will not have any negative effect on his/her employment, may affect any potential Grant, Allocation, Vesting, Pay-out or Release of any Variable Compensation to the Participant.

 

8.17.       If any provision in these Plan Rules are held to be invalid or unenforceable, no other provision of these Plan Rules will be affected thereby.

 

8.18.       These Plan Rules are governed by Dutch Civil Law.

 

8.19.       These Plan Rules shall apply for the Plan Year 2011 and will remain in force until the earlier of (i) any amendments are made to these Plan Rules and (ii) these Plan Rules are terminated by the Company, provided that no Grants will be made under these Plan Rules after 31 December 2011.

 

8.20.       These Plan Rules will not be considered an amendment or adjustment of any short-term or long-term variable compensation plans existing prior to 1 January, 2011, and no further grants under any such plans will be made after 2011, and, if made, will be considered null and void.

 

 

APPENDIX 1 -LOCAL DETAILS THE AMERICAS

 

 

	
No
    	
 
    	
 
    	
Clause
   reference
    	
 
    	
 
    	
Subject
    	
 
    	
 
    	
Local
    	
 
    
	
1
    	
 
    	
 
    	
2.2 & 2.3
    	
 
    	
 
    	
Agreement
    	
 
    	
 
    	
Participants in The Americas do not execute an offer of Acceptance
    	
 
    
	
 
    	
 
    	
 
    	
2.6
    	
 
    	
 
    	
Exceptions to requirement that a Participant’s employment must   continue uninterruptedly until the Vesting Date
    	
 
    	
 
    	
In the Americas, long term ill-health and disability means disability   as disability is defined in the AEGON USA, LLC Long Term Disability Plan;   (early) retirement is defined as eligible to retire in the AEGON Companies   Defined Benefit Plan; reduction of work force and redundancy of the job or   position is defined as “Layoffs, Reorganizations, Sales of Assets and   Closedown of Business Unit” in the AEGON Companies Separation Pay Plan.
    	
 
    
	
2
    	
 
    	
 
    	
3.2
    	
 
    	
 
    	
Plan Measurements
    	
 
    	
 
    	
Mix of AEGON Americas and AEGON NV
    	
 
    
	
3
    	
 
    	
 
    	
3.3
    	
 
    	
 
    	
Spread minimum /at target / maximum
    	
 
    	
 
    	
Minimum: 50% 
   At target: 100% 
   Maximum: 200%
    	
 
    
	
4
    	
 
    	
 
    	
4.2
    	
 
    	
 
    	
Deferral/Vesting Period
    	
 
    	
 
    	
2 years (1-year accrual period plus 2 additional vesting years   equaling 3-year vesting period in total). The Vesting Date is the 2014 AGM.   Shares earned will be distributed following the 2014 AGM, not subject to   further holding period
    	
 
    
	
5
    	
 
    	
 
    	
5.4 & 5.5
    	
 
    	
 
    	
Holding Period
    	
 
    	
 
    	
Holding period not applicable in the AmericasEXHIBIT 4.3

 

June 7, 2012

 

CW Financial Services LLC

555 Fifth Avenue, Fifth Floor

New York, NY 10017

 

Re:  Piggy-Back Registration Rights with respect to Walker & Dunlop, Inc.

 

Reference is made to (i) the Registration Rights Agreement dated as of December 20, 2010 (the “2010 Registration Rights Agreement”), by and between Walker & Dunlop, Inc., a Maryland corporation (the “Company”), and the holders listed on Schedule I thereto, including Column Guaranteed LLC (“Column Guaranteed”), William M. Walker, Mallory Walker, Howard W. Smith, III, Deborah Wilson and Richard Warner (each, a “Current Holder” and together the “Current Holders”) and (ii) the Purchase Agreement dated as of June 7, 2012 among the Company, Walker & Dunlop, LLC, CW Financial Services LLC (“CWFS”) and CWCapital LLC (the “Purchase Agreement”).

 

In connection with the Purchase Agreement, the Company and CWFS have agreed to the form of Registration Rights Agreement attached as an exhibit to the Purchase Agreement (the “New Registration Rights Agreement”).  The New Registration Rights Agreement will be entered into by CWFS or its assignee(s) at closing of the Purchase Agreement.  In connection with the transactions contemplated by the Purchase Agreement and the rights granted to CWFS under the New Registration Rights Agreement, the Company and CWFS are hereby seeking the consent from the Current Holders regarding the treatment of piggy-back registration rights with respect to securities of the Company held by CWFS and the Current Holders.  Each of the Company, CWFS and the Current Holders, by execution of this letter agreement (this “Agreement”), hereby consent to the treatment of CWFS’s and the Current Holders’ respective “Registrable Securities” (as defined in the 2010 Registration Rights Agreement, in the case of the Current Holders, and as defined in the New Registration Rights Agreement, in the case of CWFS) in connection with “Piggy-Back Registrations” (as defined in the 2010 Registration Rights Agreement, in the case of the Current Holders, and as defined in the New Registration Rights Agreement, in the case of CWFS).

 

NOW THEREFORE, in consideration of the mutual covenants and agreements made herein, the parties hereby agree as follows:

 

1.             Piggy-Back Registration Rights.  Notwithstanding any terms to the contrary in Section 2.2 of the 2010 Registration Rights Agreement and Section 2.2 of the New Registration Rights Agreement, each Holder (as defined below) of common stock of the Company (the “Common Stock”) agrees that:

 

(a)           If CWFS and/or subsequent Holders of its Registrable Securities, on the one hand, and any Current Holder(s) and/or subsequent Holders of its Registrable Securities, on the other hand, have Piggy-Back Registration rights with respect to an offering of Common Stock for the Company’s own account, and the managing underwriter seeks to reduce the offering in accordance with Section 2.2(b) of each of the New Registration Rights Agreement and the 2010 Registration Rights Agreement, respectively, then each Holder participating in the offering agrees that its Registrable Securities shall be cutback pro rata in accordance with the number of Registrable Securities which such participating Holders have requested to be included in such offering.

 

(b)           If the Company undertakes an underwritten offering for the account of CWFS and/or subsequent Holders of its Registrable Securities, on the one hand, or any Current Holder(s) and subsequent Holders of its Registrable Securities, on the other hand, then the Company shall provide notice to each Holder no less than 10 Business Days (as defined in the New Registration Rights Agreement) before the proposed offering, and each of the Holders shall have the opportunity to participate in such offering with respect to the number of Registrable Securities as the undersigned may request in writing to the Company within five Business Days of receipt of such notice from the Company.  If the managing underwriter for such underwritten offering advises the Company and the Holders of Registrable Securities that in its opinion the dollar amount or number of shares of Common Stock or other securities that the undersigned seek to include exceeds the maximum dollar amount or maximum number of securities that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering, then each Holder participating in the offering

 

 

agrees that its Registrable Securities shall be cutback pro rata in accordance with the number of Registrable Securities which such participating Holders have requested to be included in such offering.

 

(c)           The parties agree that (i) with respect to any demand by CWFS and/or its Affiliates (as defined below) that are subsequent Holders (the “New Demand Holders”) of its Registrable Securities (“New Demand Registrable Securities”) for an underwritten offering in accordance with the New Registration Statement, the New Demand Holders holding a majority of the New Demand Registrable Securities to be included in such underwritten offering under (a) or (b) above shall be entitled to select the managing underwriters for any such underwritten offering, on behalf of all such participating Holders; and (ii) with respect to any demand by Current Holders (the “Current Demand Holders”) of its Registrable Securities (“Current Demand Registrable Securities”) for an underwritten offering in accordance with the 2010 Registration Statement, the Current Demand Holders holding a majority of the Current Demand Registrable Securities to be included in such underwritten offering under (a) or (b) above shall be entitled to select the managing underwriters for any such underwritten offering, on behalf of all such participating Holders.

 

(d)           Each Holder agrees that if any Current Holder(s) and/or subsequent Holders of its Registrable Securities exercises a demand for an underwritten offering under Section 2.1(d) of the 2010 Registration Rights Agreement or piggyback registration rights under Section 2.2(a) of the 2010 Registration Rights Agreement, and other holders under the 2010 Registration Rights Agreement that are not Current Holders elect to participate in such underwritten offering (such participants, the “Other Holders”), then the Registrable Securities of the Holders participating in such underwritten offering shall participate pro rata based in accordance with the number of Registrable Securities which such participating Holders have requested to be included in such offering, but shall be subordinate in priority with respect to any underwriter cutback (if any) to the Registrable Securities of such Other Holders.

 

(e)           Except as modified by this Agreement, the terms of Section 2.2 of each of the 2010 Registration Rights Agreement and the New Registration Rights Agreement remain in full force and effect.

 

(f)            For purposes of this Agreement, “Holders” means (a) CWFS and any assignee or transferee (of CWFS or any subsequent Holder) of any of the Registrable Securities, provided such assignee or transferee agrees in writing to be bound by the provisions hereof; and (b) any Current Holder and any assignee or transferee (of such Current Holder or any subsequent Holder) of any of the Registrable Securities, provided such assignee or transferee agrees in writing to be bound by the provisions hereof.

 

2.             Demand Rights of Column Guaranteed.  Each of the Company and Column agree that, notwithstanding the requirement of Section 2.1(d) of the 2010 Registration Rights Agreement that the holders thereunder requesting an Underwritten Offering Notice must represent at least 10% of the Private Placement Shares (as defined in the 2010 Registration Rights Agreement) originally issued in the Formation Transactions (as defined in the 2010 Registration Rights Agreement), Column and/or its subsequent Holders shall be entitled to submit an Underwritten Offering Notice under the 2010 Registration Rights Agreement so long as such Holders represent at least 5% of issued and outstanding shares of the Company as of the Closing Date (as defined in the Purchase Agreement).  Except as modified by the foregoing, the terms and conditions of Section 2.2(d) remain in full force and effect.

 

3.             Shelf Registration Statement.  In connection with filing the registration statement as required under Section 2.1(a) of the New Registration Rights Agreement (the “New Shelf Registration Statement”), the Company shall include the Registrable Securities of the Current Holders so that such Registrable Securities shall be registered under the New Shelf Registration Statement, together with the Registrable Securities of CWFS.

 

4.             Effective Time; Termination.  The undersigned agree that the terms of this Agreement shall not be effective unless and until the closing occurs under the Purchase Agreement, and upon termination of the Purchase Agreement in accordance with its terms, this Agreement shall terminate.

 

5.             Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to the choice of laws provisions thereof.

 

 

6.             Assignment; Successors and Assigns. This Agreement and the rights granted hereunder may be assigned by any Holder in connection with a transfer of some or all of such Holder’s Registrable Securities to any of its Affiliates (as defined in the New Registration Rights Agreement) or to any third party in a private placement transaction, provided that such transferee agrees in writing to be bound by all of the provisions hereof. This Agreement and the obligations of each Holder hereunder shall be assumed by the transferee of such Holder in connection with such Holder’s transfer of Registrable Securities and its registration rights under the 2010 Registration Rights Agreement or the New Registration Rights Agreement, as applicable, and such shall transferee agree in writing to be bound by all of the provisions hereof.  This Agreement shall inure to the benefit of and be binding upon all of the parties hereto and their respective heirs, executors, personal and legal representatives, successors and permitted assigns.

 

7.             Notices.  Any notice to be given by any party to this Agreement shall be given in writing and may be effected by facsimile, personal delivery, overnight courier or e-mail (provided receipt of such email is evidenced by a reply email), addressed as follows (or by another means approved in writing by a party pursuant to a notice given in accordance with this Section 7):

 

If to the Company:

 

Walker & Dunlop, Inc.

7501 Wisconsin Avenue, Suite 1200E

Bethesda, Maryland 20814

Attention:  General Counsel

Fax:  (301) 634-2190

E-mail:  RLucas@walkerdunlop.com

 

If to CWFS:

 

CWCapital LLC

c/o CW Financial Services, LLC

7501 Wisconsin Avenue, Suite 500W

Bethesda, Maryland 20814

Attention:  Carla Stoner

Fax:  (301) 222-4714

E-mail:  cstoner@cwcapital.com

And

Attention: Scott Spelfogel, General Counsel

Fax:  (866) 572-7745

E-mail:  sspelfogel@cwcapital.com

 

with a copy to (which shall not constitute notice):

 

Sidley Austin LLP

787 Seventh Avenue

New York, New York 10019

Attention: George Petrow, Esq.

Fax (212) 839-5599

Email: gpetrow@sidley.com

 

and

 

Attention:  Matthew J. Rizzo, Esq.

Fax:  (212) 839-5599

Email: mrizzo@sidley.com

 

 

If to Column:

 

Column Financial, Inc.

11 Madison Avenue

New York, New York 10010

Attention: Edmund Taylor

Fax:  (212) 538-2200

E-mail:  edmund.taylor@credit-suisse.com

 

with a copy to:

 

Credit Suisse

1 Madison Avenue

New York, New York 10010

Facsimile: (212) 325-8282

Attn: Legal and Compliance Division

 

with a copy to:

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention: Doug Warner, Esq.

Facsimile: (212) 310-8007

Email: doug.warner@weil.com

 

If to any other Current Holder:  such notice address as shall be provided to the Company by such Current Holder following the date hereof but prior to the closing under the Purchase Agreement.

 

With respect to any subsequent Holder:  such notice address as provided at such time that such Holder agrees in writing to be bound by all of the provisions hereof.

 

The date of service for any notice sent in compliance with the requirements of this Section 7 shall be (i) the date such notice is personally delivered, (ii) the next succeeding Business Day (as defined in the New Registration Rights Agreement) after the date of delivery to the overnight courier if sent by overnight courier or (iii) the next succeeding Business Day after the date of transmission by electronic mail or facsimile.

 

8.             Entire Agreement.  This Agreement (and the 2010 Registration Rights Agreement and New Registration Rights Agreement) constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof, and no party shall be liable or bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

 

9.             Amendment and Waiver.  Any amendment hereto shall be in writing and signed by all parties hereto.  No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party against whom enforcement is sought.  The waiver by any party of the performance of any act shall not operate as a waiver of the performance of any other act or an identical act required to be performed at a later time.  Except as otherwise provided herein, no action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.

 

10.          Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and it will not be necessary in making proof of this Agreement or the terms of this Agreement to produce or account for more than one of such counterparts.  All counterparts shall constitute one and the same instrument.  Each party may execute this Agreement via a facsimile (or transmission of a .pdf file) of this Agreement.  In addition, facsimile or .pdf signatures of authorized signatories of the parties shall be valid and

 

 

binding and delivery of a facsimile or .pdf signature by any party shall constitute due execution and delivery of this Agreement.

 

 [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
COLUMN GUARANTEED LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edward   F. Taylor
    
	
 
    	
Name
    	
Edward   F. Taylor
    
	
 
    	
Title
    	
President
    

 

Piggyback Side Letter

Signature Page

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
/s/ William   M. Walker
    
	
 
    	
Name:    William M. Walker
    

 

Piggyback Side Letter

Signature Page

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
/s/ Mallory   Walker
    
	
 
    	
Name:    Mallory Walker
    

 

Piggyback Side Letter

Signature Page

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
/s/ Howard   K. Smith, III
    
	
 
    	
Name:    Howard K. Smith, III
    

 

Piggyback Side Letter

Signature Page

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
/s/ Deborah   Wilson
    
	
 
    	
Name:    Deborah Wilson
    

 

Piggyback Side Letter

Signature Page

 

 

Please confirm your agreement to the foregoing by signing and returning a copy of this Agreement.

 

 

	
 
    	
/s/ Richard   C. Warner
    
	
 
    	
Name:    Richard C. Warner
    

 

Piggyback Side Letter

Signature Page

 

 

	
Acknowledged   and Agreed:
    	
 
    
	
 
    	
 
    
	
CW   FINANCIAL SERVICES LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Charles R. Spetka
    	
 
    
	
Name:    Charles R. Spetka
    	
 
    
	
Title:    Chief Executive Officer
    	
 
    
			

 

Piggyback Side Letter

Signature Page

 

 

	
Acknowledged   and Agreed:
    	
 
    
	
 
    	
 
    
	
WALKER &   DUNLOP, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   William Walker
    	
 
    
	
Name:    William Walker
    	
 
    
	
Title:  President   and CEO
    	
 
    
			

 

Piggyback Side Letter

Signature Page

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