Document:

EX-10.4

 Exhibit 10.4 

 
  

 
 AMENDED AND RESTATED GUARANTEE
AGREEMENT 
 made by 
 THE SUBSIDIARIES OF CONSTELLATION BRANDS, INC. FROM TIME TO TIME 
 PARTY HERETO

 and 

CONSTELLATION BRANDS, INC. 
 in favor of 
 BANK OF AMERICA, N.A., 

as Administrative Agent 
 Dated as of June 7, 2013 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	SECTION 1.	  			
	DEFINED TERMS	  			
			
	 1.1
	  	Definitions	  	 	2	  
	 1.2
	  	Other Definitional Provisions	  	 	2	  
		
	SECTION 2.	  			
	GUARANTEE	  			
			
	 2.1
	  	Guarantees	  	 	2	  
	 2.2
	  	Right of Contribution	  	 	4	  
	 2.3
	  	No Subrogation	  	 	4	  
	 2.4
	  	Amendments, etc., with Respect to the Obligations	  	 	4	  
	 2.5
	  	Guarantees Absolute and Unconditional	  	 	5	  
	 2.6
	  	Reinstatement	  	 	5	  
	 2.7
	  	Payments	  	 	6	  
		
	SECTION 3.	  			
	REPRESENTATIONS AND WARRANTIES	  			
		
	SECTION 4.	  			
	MISCELLANEOUS	  			
			
	 4.1
	  	Amendments in Writing	  	 	7	  
	 4.2
	  	Notices	  	 	7	  
	 4.3
	  	No Waiver by Course of Conduct; Cumulative Remedies; Enforcement	  	 	7	  
	 4.4
	  	Successors and Assigns	  	 	7	  
	 4.5
	  	Set-Off	  	 	7	  
	 4.6
	  	Counterparts	  	 	8	  
	 4.7
	  	Severability	  	 	8	  
	 4.8
	  	Section Headings	  	 	8	  
	 4.9
	  	Integration	  	 	8	  
	 4.10
	  	GOVERNING LAW	  	 	8	  
	 4.11
	  	Submission To Jurisdiction; Waivers	  	 	8	  
	 4.12
	  	Acknowledgements	  	 	9	  
	 4.13
	  	Additional Guarantors	  	 	9	  
	 4.14
	  	Releases	  	 	9	  
	 4.15
	  	WAIVER OF JURY TRIAL	  	 	10	  
	 4.16
	  	Effect of Restatement	  	 	10	  

 ANNEXES 

Annex 1 Joinder Agreement 

  
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 GUARANTEE AGREEMENT 
 AMENDED AND RESTATED GUARANTEE AGREEMENT, dated as of June 7, 2013, made by each of the signatories identified on the signature pages hereto under the heading “Guarantors” (collectively,
and together with any other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for
the banks and other financial institutions or entities (the “Lenders”) from time to time parties to the Second Amended and Restated Credit Agreement, dated as of May 2, 2013 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among CONSTELLATION BRANDS, INC. (the “Company”), CIH INTERNATIONAL S.À R.L., a private limited liability company (société
à responsabilité limitée) incorporated under the laws of Luxembourg, having its registered office at 5, rue Guillaume Kroll, L-1882 Luxembourg and registered with the Luxembourg trade and companies register under number B
176.850 with a share capital of US $25,000 (the “European Borrower” and, together with the Company, the “Borrowers”), certain other parties thereto, the Lenders and the Administrative Agent. 

W I T N E S S E T H: 

WHEREAS, pursuant to the Credit Agreement, the Lenders have severally agreed to make extensions of credit to the Borrowers upon the terms
and subject to the conditions set forth therein; 
 WHEREAS, the Borrowers are members of an affiliated group of companies that
includes each other Guarantor; 
 WHEREAS, the proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrowers to make valuable transfers to one or more of the other Guarantors in connection with the operation of their respective businesses; 
 WHEREAS, the Borrowers and the other Guarantors are engaged in related businesses, and each Guarantor will derive substantial direct and indirect benefit from the making of the extensions of credit under
the Credit Agreement; 
 WHEREAS, the Subsidiary Guarantors on the date hereof have previously entered into a Guarantee
Agreement, dated as of May 3, 2012 (the “Original Guarantee Agreement”) and the parties hereto wish to amend and restate the Guarantee Agreement on terms set forth herein; and 

WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrowers
under the Credit Agreement that the Guarantors shall have executed and delivered this Agreement to the Administrative Agent; 

NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth and to induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective extensions of credit to the Borrowers thereunder, each Guarantor hereby agrees with the Administrative Agent: 

 SECTION 1. 
 DEFINED TERMS 
 1.1 Definitions. 

(a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement. 
 (b) The following terms shall have the following meanings: 

“Agreement”: this Guarantee Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 “Guarantors”: the collective reference to each Guarantor. 

“Parent Guarantor” means the Company. 
 “Qualified ECP Guarantor” shall mean, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant”
under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act. 

“Specified Guarantor” means any Guarantor that is not an “eligible contract participant” under the Commodity
Exchange Act (determined prior to giving effect to Section 2.8 hereof). 
 “Subsidiary Guarantor” means
each Guarantor other than the Parent Guarantor. 
 1.2 Other Definitional Provisions. 

(a) The words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section and Schedule references are to this Agreement unless otherwise specified. 

(b) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 SECTION 2. 
 GUARANTEE 
 2.1 Guarantees. 

(a) (i) Each of the Subsidiary Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to the
Administrative Agent, for the ratable benefit of the Secured Parties the prompt and complete payment and performance of the Obligations and (ii) the Parent Guarantor hereby unconditionally and irrevocably, guarantees to the Administrative
Agent, for 

  
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the ratable benefit of the Secured Parties the prompt and complete payment and performance of the European Obligations. 
 (b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Subsidiary Guarantor hereunder and under the other Loan Documents in respect of the
Obligations, shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in
Section 2.2). 
 (c) Each Guarantor agrees that the Obligations, may at any time and from time to time exceed the amount of
the liability of such Guarantor hereunder without impairing the guarantees contained in this Section 2 or affecting the rights and remedies of the Administrative Agent or any other Secured Party hereunder. 

(d) Each Guarantor’s guarantees contained in this Section 2 shall remain in full force and effect until all the Obligations (
other than contingent indemnification and contingent expense reimbursement obligations, Obligations in respect of Secured Hedge Agreements and Cash Management Obligations) of each Guarantor under the guarantees contained in this Section 2 shall
have been satisfied by payment in full, the Commitments have been terminated and either no Letter of Credit shall be outstanding or each outstanding Letter of Credit has been cash collateralized so that it is fully secured to the reasonable
satisfaction of the Administrative Agent, notwithstanding that from time to time during the term of the Credit Agreement any Loan Party may be free from any of the Obligations. 

(e) Except as provided in Section 4.14, (i) no payment made by any of the Subsidiary Guarantors, any other guarantor or any
other Person or received or collected by the Administrative Agent or any Secured Party from any of the Subsidiary Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Subsidiary Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Subsidiary Guarantor in respect of the Obligations or any payment received or collected from such Subsidiary Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum
liability of such Subsidiary Guarantor hereunder until the Obligations are paid in full, the Commitments have been terminated, and either no Letters of Credit shall be outstanding or each outstanding Letter of Credit has been cash collateralized so
that it is fully secured to the reasonable satisfaction of the Administrative Agent and (ii) no payment made by the Parent Guarantor, any other guarantor or any other Person or received or collected by the Administrative Agent or any Secured
Party from the Parent Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the European Obligations
shall be deemed to modify, reduce, release or otherwise affect the liability the Parent Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by the Parent Guarantor in respect of the European Obligations or
any payment received or collected from the Parent Guarantor in respect of the European Obligations), remain liable for the European Obligations up to the maximum liability of the Parent Guarantor hereunder until the European Obligations are paid in
full. 

  
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 2.2 Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its
proportionate share of such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3. The provisions of this Section 2.2 shall in no respect limit the obligations and
liabilities of any Guarantor to the Administrative Agent and the Secured Parties, and each Guarantor shall remain liable to the Administrative Agent and the Secured Parties for the full amount guaranteed by such Guarantor hereunder. 

2.3 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any
Guarantor by the Administrative Agent or any other Secured Party, no Guarantor shall seek to enforce any right of subrogation in respect of any of the rights of the Administrative Agent or any other Secured Party against any Guarantor or any
collateral security or guarantee or right of offset held by the Administrative Agent or any other Secured Party for the payment of the Obligations, nor shall any Guarantor seek any contribution or reimbursement from any other Guarantor in respect of
payments made by such Guarantor hereunder, until all amounts owing to the Administrative Agent and the other Secured Parties by the Loan Parties on account of the Obligations are paid in full, either no Letter of Credit shall be outstanding or each
outstanding Letter of Credit has been cash collateralized so that it is fully secured to the reasonable satisfaction of the Administrative Agent and the Commitments are terminated. If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Administrative Agent and the other Secured Parties, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Administrative Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Administrative Agent, if required), to be applied against
the Obligations , whether matured or unmatured, in such order as the Administrative Agent may determine. For the avoidance of doubt, nothing in the foregoing agreement by the Guarantors shall operate as a waiver of any subrogation rights.

 2.4 Amendments, etc., with Respect to the Obligations. To the fullest extent permitted by applicable law, each
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Obligations made by the
Administrative Agent or any other Secured Party may be rescinded by the Administrative Agent or such Secured Party and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative
Agent or any other Secured Party, and the Credit Agreement and the other Loan Documents, any other documents executed and delivered in connection therewith, any Swap Agreement and any agreement giving rise to Cash Management Obligations may be
amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders or all Lenders, as the case may be, or, solely in the case of any Swap Agreement or any agreement giving rise to Cash Management
Obligations, the applicable Hedge Bank or Cash Management Bank) may deem reasonably advisable from time to time, and any collateral 

  
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security, guarantee or right of offset at any time held by the Administrative Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or
released. Neither the Administrative Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantees contained in this
Section 2 or any property subject thereto. 
 2.5 Guarantees Absolute and Unconditional. To the fullest extent
permitted by applicable law, each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Administrative Agent or any other Secured Party upon the
guarantees contained in this Section 2 or acceptance of the guarantees contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended
or waived, in reliance upon the guarantees contained in this Section 2; and all dealings between the Borrowers and the Guarantors, on the one hand, and the Administrative Agent and the other Secured Parties, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the guarantees contained in this Section 2. To the fullest extent permitted by applicable law, each Guarantor waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon any of the Guarantors with respect to the Obligations. Each Guarantor understands and agrees that the guarantees contained in this Section 2, to the fullest extent permitted by applicable law, shall be
construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Credit Agreement or any other Loan Document, any of the Obligations or any other collateral security therefor
or guarantee or right of offset with respect thereto at any time or from time to time held by the Administrative Agent or any other Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which
may at any time be available to or be asserted by the Borrowers or any other Person against the Administrative Agent or any other Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of such Guarantor)
which constitutes, or might be construed to constitute, an equitable or legal discharge of such Guarantor under the guarantees contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise
pursuing its rights and remedies hereunder against any Guarantor, the Administrative Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have
against any Guarantor or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Administrative Agent or any other Secured Party to make any such
demand, to pursue such other rights or remedies or to collect any payments from any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any other
Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied
or available as a matter of law, of the Administrative Agent or any Lender against any Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 

2.6 Reinstatement. The guarantees contained in this Section 2 shall continue to be effective, or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any of the Obligations (or with respect to the guarantee of the Parent Guarantor contained in this Section 2, 

  
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the European Obligations) is rescinded or must otherwise be restored or returned by the Administrative Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, any Guarantor or any substantial part of its property, or otherwise, all as though such
payments had not been made. 
 2.7 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid in
Dollars to the Administrative Agent without set-off or counterclaim at the Administrative Agent’s Office. 
 2.8
Keepwell. Each Guarantor that is a Qualified ECP Guarantor at the time of the guarantee hereunder or the grant of the security interest under the Loan Documents, in each case, by any Specified Guarantor, becomes effective with respect to any
Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Guarantor with respect to such Swap Obligation as may be needed by such Specified
Guarantor from time to time to honor all of its obligations under its guarantee and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without
rendering such Qualified ECP Guarantor’s obligations and undertakings under this Section 2.8 voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and
undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full. Each Qualified ECP Guarantor intends this Section to constitute, and this
Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Guarantor for all purposes of the Commodity Exchange Act. 

SECTION 3. 

REPRESENTATIONS AND WARRANTIES 
 To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to make their respective extensions of credit to the Borrower thereunder, each Guarantor hereby represents and
warrants to the Administrative Agent and each Lender that: 
 (a) it is duly organized and in good standing under the laws of
the jurisdiction of its organization and has full capacity and right to make and perform its obligations under this Agreement, and all necessary authority has been obtained; 
 (b) this Agreement constitutes its legal, valid and binding obligation enforceable in accordance with its terms; 
 (c) the making and performance of this Agreement does not and will not violate the provisions of any applicable law, regulation or order, and does not and will not result in the breach of, or constitute a
default or require any consent under, any material agreement, instrument, or document to which it is a party or by which it or any of its property may be bound or affected, except to the extent that such violation or default could not reasonably be
expected to have a Material Adverse Effect; and 

  
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 (d) all consents, approvals, licenses and authorizations of, and filings and registrations
with, any governmental authority required under applicable law and regulations for the making and performance of this Agreement have been obtained or made and are in full force and effect, except where the failure of which to obtain or make could
not reasonably be expected to have a Material Adverse Effect. 
 SECTION 4. 

MISCELLANEOUS 

4.1 Amendments in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except in accordance with Section 9.02 of the Credit Agreement. 
 4.2 Notices. All notices, requests and
demands to or upon the Administrative Agent or any Guarantor hereunder shall be effected in the manner provided for in Section 9.01 of the Credit Agreement; provided that any such notice, request or demand to or upon any Guarantors shall
be addressed to such Guarantor c/o Constellation Brands, Inc. at its address provided in Section 9.01 of the Credit Agreement. 
 4.3 No Waiver by Course of Conduct; Cumulative Remedies; Enforcement. 
 (a)
Neither the Administrative Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 4.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Administrative Agent or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Administrative Agent or any other Secured Party of any
right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Administrative Agent or such other Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 

(b) By its acceptance of the benefits of this Agreement, each Secured Party agrees that this Agreement may be enforced only by the
Administrative Agent and that no Secured Party shall have any right individually to enforce or seek to enforce this Agreement. 

4.4 Successors and Assigns. This Agreement shall be binding upon the successors and assigns of each Guarantor and shall inure to
the benefit of the Administrative Agent and the Secured Parties and their permitted successors and assigns; provided that no Guarantor may assign, transfer or delegate any of its rights or obligations under this Agreement except as permitted by the
Credit Agreement. 
 4.5 Set-Off. If an Event of Default shall have occurred and be continuing, each Lender and each of
its Affiliates is hereby authorized at any time and from time to time, to the 

  
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fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final and in whatever currency denominated) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of any Guarantor against any of and all the Obligations of such Guarantor now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other
rights of setoff) which such Lender may have. 
 4.6 Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by telecopy or other electronic means), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

4.7 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 
 4.8 Section Headings. The Section headings used in this Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 
 4.9 Integration. This Agreement and the other Loan Documents represent the agreement of the Guarantors, the Administrative Agent and the Lenders with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents.

 4.10 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK. 
 4.11 Submission To Jurisdiction; Waivers. Each Guarantor hereby irrevocably
and unconditionally: 
 (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York located in the County of New
York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or
that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

  
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 (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Guarantor at its address referred to in Section 4.2 or at such other address of which the Administrative
Agent shall have been notified pursuant thereto; 
 (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and 
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or
consequential damages. 
 4.12 Acknowledgements. Each Guarantor hereby acknowledges that: 

(a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party; 
 (b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to any Guarantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Guarantors, on the one hand, and the Administrative Agent and the Lenders, on the
other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
 (c) no joint
venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Guarantors and the Lenders. 

4.13 Additional Guarantors. Each Subsidiary of the Company that is required to become a party to this Agreement pursuant to
Section 5.09 of the Credit Agreement shall become a Guarantor for all purposes of this Agreement and an Obligor under the U.S. Pledge Agreement upon execution and delivery by such Subsidiary of a Joinder Agreement in the form of Annex 1 hereto.

 4.14 Releases. 
 (a) At such time as the Loans, the amounts owed to any Issuing Bank in respect of Letter of Credit and the other Obligations (other than contingent indemnification and contingent expense reimbursement
obligations, Obligations in respect of Secured Hedge Agreements and Cash Management Obligations) shall have been paid in full, the Commitments have been terminated and either no Letters of Credit shall be outstanding or each outstanding Letter of
Credit has been cash collateralized so that it is fully secured to the reasonable satisfaction of the Administrative Agent, this Agreement and all obligations (other than those expressly stated to survive such termination) of the Administrative
Agent and each Guarantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party; provided that the Parent Guarantor’s obligations hereunder (other than those expressly stated to survive such
termination) shall terminate upon the repayment in full of the European Obligations. 

  
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 (b) Any Subsidiary Guarantor shall be automatically released from its obligations under the
circumstances provided in clause (i)(iii) of Article VIII of the Credit Agreement. 
 4.15 Consent and Reaffirmation.
Each Guarantor hereby consents to the execution, delivery and performance of the Credit Agreement and agrees that each reference to the Original Credit Agreement in the Loan Documents shall, on and after the date hereof, be deemed to be a reference
to the Credit Agreement. Each Guarantor hereby acknowledges and agrees that, after giving effect to the Credit Agreement, all of its respective obligations and liabilities under the Loan Documents to which it is a party, as such obligations and
liabilities have been amended by the Credit Agreement, are reaffirmed, and remain in full force and effect. 
 4.16 WAIVER OF
JURY TRIAL. EACH GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 

4.17 Effect of Restatement. This Agreement amends and restates the Original Guarantee Agreement in its entirety and supersedes the
Original Guarantee Agreement in all respects. 

  
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 IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee Agreement to be duly
executed and delivered as of the date first above written. 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	/s/ Colleen O’Brien
	 Title:
	 	 Sr. Vice President

 
  
  

 
 [Constellation – Amended & Restated Guarantee Agreement]

 
			
	 GUARANTORS:

	
	 ALCOFI INC.

	 CONSTELLATION BRANDS SMO, LLC

	 CONSTELLATION BRANDS U.S.

    OPERATIONS, INC.

	 CONSTELLATION LEASING, LLC

	 CONSTELLATION TRADING COMPANY, INC.

	 CROWN IMPORTS LLC
 FRANCISCAN VINEYARDS, INC.

	 ROBERT MONDAVI INVESTMENTS

	 THE HOGUE CELLARS, LTD.

		
	 By:
	 	/s/ David E. Klein
	 Name:
	 	David E. Klein
	 Title:
	 	Vice President and Assistant Treasurer
	
	 CONSTELLATION BEERS LTD.

	 CONSTELLATION BRANDS BEACH HOLDINGS, INC.

CONSTELLATION SERVICES LLC

		
	 By:
	 	/s/ David E. Klein
	 Name:
	 	David E. Klein
	 Title:
	 	Vice President and Treasurer
	
	CONSTELLATION BRANDS, INC., as Parent Guarantor
		
	 By:
	 	/s/ David E. Klein
	 Name:
	 	David E. Klein
	 Title:
	 	Vice President and Treasurer

 [Constellation – Amended & Restated Guarantee] 

 [FORM OF JOINDER AGREEMENT] 

Annex 1 to  

Guarantee Agreement 
 JOINDER AGREEMENT, dated as of            , 201    , made
by             (the “Additional Pledgor”), in favor of BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for
the Secured Parties (as defined in the Credit Agreement referred to below). All capitalized terms not defined herein shall have the meaning ascribed to them in the Guarantee Agreement (as defined below) or the U.S. Pledge Agreement (as defined
below), as applicable. 
 W I T N E S S E T H : 

WHEREAS, CONSTELLATION BRANDS, INC. (the “Company”), certain other parties thereto, the Lenders and the Administrative
Agent have entered into a Second Amended and Restated Credit Agreement, dated as of May 2, 2013 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, in connection with the Credit Agreement, the Borrowers and the Guarantors (other than the Additional Pledgor), as applicable,
have entered into (i) the Amended and Restated Guarantee Agreement, dated as of June 7, 2013 (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”) and (ii) the U.S. Pledge
Agreement, dated as of May 3, 2012 (as amended, supplemented or otherwise modified from time to time, the “U.S. Pledge Agreement”) in favor of the Administrative Agent for the ratable benefit of the Secured Parties; 

WHEREAS, the Credit Agreement requires the Additional Pledgor to become a party to the Guarantee Agreement and the U.S. Pledge Agreement;
and 
 WHEREAS, the Additional Pledgor has agreed to execute and deliver this Joinder Agreement in order to become a party to
the Guarantee Agreement and the U.S. Pledge Agreement; 
 NOW, THEREFORE, IT IS AGREED: 

1. Guarantee Agreement. By executing and delivering this Joinder Agreement, the Additional Pledgor, as provided in
Section 4.13 of the Guarantee Agreement, hereby becomes a party to the Guarantee Agreement as a Subsidiary Guarantor thereunder with the same force and effect as if originally named therein as a Subsidiary Guarantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Subsidiary Guarantor thereunder. The Additional Pledgor hereby represents and warrants that each of the representations and warranties contained in
Section 3 of the Guarantee Agreement is true and correct in all material respects on and as the date hereof (after giving effect to this Joinder Agreement) as if made on and as of such date (unless stated to relate to a specific earlier date,
in 

 
which case, such representations and warranties shall be true and correct in all material respects as of such earlier date). 

2. U.S. Pledge Agreement. By executing and delivering this Joinder Agreement, the Additional Pledgor, as provided in
Section 4.13 of the Guarantee Agreement and Section 6.10 of the U.S. Pledge Agreement, hereby becomes a party to the U.S. Pledge Agreement as an “Obligor” thereunder with the same force and effect as if originally named therein
as an Obligor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of an Obligor thereunder. Without limiting the generality of the foregoing, the Additional Pledgor hereby grants and
assigns to the Administrative Agent for the benefit of the Secured Parties, a security interest in, all of its right, title and interest in the Collateral, as collateral security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of the Obligations. Pursuant to any applicable law, each Additional Pledgor authorizes the Administrative Agent to file or record financing statements and other filing or recording documents or
instruments with respect to the Collateral without the signature of such Additional Pledgor in such form and in such offices as the Administrative Agent determines appropriate to perfect the security interests of the Administrative Agent under the
U.S. Pledge Agreement. Each Additional Pledgor authorizes the Administrative Agent to describe the collateral and indicate that after-acquired assets are covered in such financing statements. The information set forth in Annex 1-A hereto is hereby
added to the information set forth in the Schedules to the Perfection Certificate (as defined in the Credit Agreement). The Additional Pledgor hereby represents and warrants that each of the representations and warranties contained in Section 2
of the U.S. Pledge Agreement is true and correct in all material respects on and as the date hereof (after giving effect to this Joinder Agreement) as if made on and as of such date (unless stated to relate to a specific earlier date, in which case,
such representations and warranties shall be true and correct in all material respects as of such earlier date). 
 3.
Governing Law. THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written. 

 

			
	[ADDITIONAL PLEDGOR]
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 -2-

 Annex 1-A to  
 Joinder Agreement 
 Perfection Certificate Supplement 

  
 -3-EX-10.1

 Exhibit 10.1 
 PRUDENTIAL FINANCIAL, INC 
 Terms and Conditions of the 

2012 Long-Term Incentive Program for Senior Executives 

  
 1 

 IMPORTANT NOTICE 
 This document is intended to help you understand the main features of the 2012 Long-Term Incentive Program (the Long-Term Program) under the Prudential Financial, Inc. Omnibus Incentive Plan (the
Plan). You should refer to this document only for grants made in 2012, because terms may change from year to year. 
 This
document is not a substitute for the official Plan documents, which govern the operation of the Plan. All terms and conditions of the Long-Term Program and the Plan, including your eligibility and any benefits, will be determined pursuant to, and
are governed by, the provisions of the Plan documents. If there is any discrepancy between the information in this document or in any other materials relating to the Plan and the actual Plan documents, or if there is a conflict between information
discussed by anyone acting on behalf of Prudential and the actual Plan documents, the Plan documents, as interpreted by the Compensation Committee as the Plan administrator in its sole discretion, will always govern. 

Prudential may, in its sole discretion, modify, amend, suspend, or terminate the Plan or the Long-Term Program, or any and all of the policies, programs
and plans described in this document in whole or in part, at any time, without notice to or consent of any Participant to the extent permissible under applicable law. 
 Nothing contained in this document, or in any other materials related to either the Long-Term Program or the Plan, is intended to constitute or create a contract of employment nor shall it constitute or
create the right to remain associated with or in the employ of Prudential for any particular period of time. For US Participants only employment with Prudential is employment-at-will; this means that either you or Prudential may terminate the
employment relationship or association at any time, with or without cause or notice. 

 CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 PART A: General terms and conditions
	  	 	1	  
	 1.
	 	 Purpose
	  	 	1	  
	 2.
	 	 Eligibility and grants
	  	 	1	  
	 3.
	 	 Acceptance of an Award
	  	 	1	  
	 4.
	 	 Taxes
	  	 	1	  
	 5.
	 	 Value of Awards
	  	 	2	  
	 6.
	 	 Covenant not to solicit; other terms and restrictions
	  	 	2	  
	 7.
	 	 Compliance with Applicable Laws
	  	 	4	  
	 8.
	 	 Investment representation
	  	 	4	  
	 9.
	 	 Governing law
	  	 	4	  
	 10.
	 	 Electronic delivery and acceptance
	  	 	4	  
	 11.
	 	 No rights as a shareholder
	  	 	5	  
	 12.
	 	 Section 409A
	  	 	5	  
	 13.
	 	 Other terms
	  	 	5	  
	 PART B: Terms and conditions applicable to Restricted Stock Units
	  	 	6	  
	 1.
	 	 Restricted Period
	  	 	6	  
	 2.
	 	 Settlement of Restricted Stock Units
	  	 	6	  
	 3.
	 	 Vesting or forfeiture of Restricted Stock Units following termination of Employment in specific circumstances
	  	 	6	  
	 4.
	 	 Section 409A
	  	 	8	  
	 5.
	 	 Dividend Equivalents
	  	 	8	  
	 PART C: Terms and conditions applicable to Options
	  	 	10	  
	 1.
	 	 Vesting and exercise
	  	 	10	  
	 2.
	 	 Exercise of Options
	  	 	10	  
	 3.
	 	 Option term
	  	 	10	  
	 4.
	 	 Exercise or forfeiture of Options following termination of Employment in specific circumstances
	  	 	10	  
	 PART D: Terms and conditions applicable to Performance Shares and Performance Units under the Long-Term
Performance Program, a sub-program of the Long-Term Incentive Program
	  	 	13	  
	 1.
	 	 Performance Cycle
	  	 	13	  
	 2.
	 	 Settlement of Performance Shares and Performance Units
	  	 	13	  
	 3.
	 	 Earnout: Performance Goals
	  	 	13	  
	 4.
	 	 Vesting or forfeiture of Performance Shares and Performance Units following termination of Employment in specific
circumstances
	  	 	14	  
	 5.
	 	 Section 409A
	  	 	16	  
	 6.
	 	 Dividend Equivalents
	  	 	17	  
	 PART E: Terms and conditions applicable to Book Value Units under the Book Value Performance Program, a
sub-program of the Long-Term Incentive Program
	  	 	18	  
	 1.
	 	 Book Value Units
	  	 	18	  
	 2.
	 	 Vesting Period
	  	 	18	  
	 3.
	 	 Settlement of Book Value Units
	  	 	18	  
	 4.
	 	 Vesting or forfeiture of Book Value Units following termination of Employment in specific circumstances
	  	 	18	  
	 5.
	 	 Forfeiture
	  	 	21	  
	 6.
	 	 Section 409A
	  	 	21	  
	 7.
	 	 No Dividend Equivalents
	  	 	21	  

							
	 Schedule
	   

	 1.
	 	 Definitions
	  	 	22	  
	 2.
	 	 Country specific variations
	  	 	25	  
	 3.
	 	 Form for declining an Award
	  	 	27	  

 Prudential Financial, Inc. 2012 Long-Term Incentive Program 

This document contains the principal terms and conditions applicable to Awards granted to employees under the Prudential Financial, Inc. Omnibus
Incentive Plan (the Plan) for 2012. Specific provisions applicable to any employees selected to participate in any particular country are set out in Schedule 2. 
 PART A: General terms and conditions 
  

	1.	Purpose 

 Prudential’s 2012 Long-Term
Incentive Program (the Long-Term Program) is made available to employees subject to the terms of the Plan and is designed to strengthen the links between leadership, motivation and consistent performance. Employees selected to participate in
the Long-Term Program may be granted Awards of Performance Units valued by reference to the book value of the Common Stock (the Book Value Units), Awards of Restricted Stock Units, Options, Performance Shares, Performance Units, or a
combination thereof, and will be advised of the Awards made to them in their own personalized compensation statement or a communication from their manager. 
 The grant of Awards under the Long-Term Program is subject to the terms and conditions contained in the Plan document. This document describes the principal terms and conditions of Awards granted to
employees under the Plan (the Terms). The Schedule to these Terms contains the definitions used in these Terms. If there is any discrepancy between these Terms and the Plan document, or if there is a discrepancy between any information given
by anyone acting on behalf of any member of the Company Group and the Plan document, the Plan document, as interpreted by the Compensation Committee, will always govern. 

 

	2.	Eligibility and grants 

 Grants of Awards
under the Plan are entirely at the sole discretion of Prudential. 
 A grant of an Award under the Plan on one occasion does not give an
employee the right to any further grant at any time in the future. 
  

	3.	Acceptance of an Award 

 An employee
granted an Award may accept the Award in any manner specified by the Compensation Committee (or the Company Group) and may be deemed to have accepted an Award if the employee has not declined the grant of that Award (in whole or in part) within any
period of time specified by the Compensation Committee (or the Company Group) and notified to the employee. 
 By accepting an Award, a
Participant will be responsible for complying with any Applicable Laws relating to: 
  

	(i)	the transfer of funds on the exercise of an Option (if the Cash Exercise method is used); 

 

	(ii)	the acquisition, holding and sale of shares of Common Stock acquired under the Plan; and 

 

	(iii)	the opening and maintaining of a U.S. brokerage account. 

 The Applicable Laws may change and Participants should seek their own professional legal, financial and taxation advice in relation to their participation in the Plan. 

 

	4.	Taxes 

 Prudential or any member of the
Company Group, as appropriate, has the right to deduct, report and account for any taxes or other obligations required to be withheld by law in connection with an Award. Prudential 

  
 1 

 
(or, as appropriate, any other member of the Company Group) may require a Participant to pay to Prudential (or, if appropriate, any other member of the Company Group) the amount necessary to
satisfy any such taxes or other obligations and may defer delivery of shares of Common Stock under the Plan to a Participant until such withholding is satisfied. On the exercise of an Option or the Vesting of Restricted Stock Units or Performance
Shares, Prudential or, if appropriate, any other member of the Company Group, will have the right to withhold, either through payroll, through the withholding of sufficient shares of Common Stock or otherwise, in order to satisfy any applicable
withholding requirements on the exercise of an Option or the Vesting of Restricted Stock Units or Performance Shares. Participants will be responsible for ensuring that their own tax affairs in connection with the Plan are in order. 

 

	5.	Value of Awards 

 Prudential makes no
representation as to the future value of any Award under the Plan or whether any profit will be realized with respect to any Award. Past performance may not be a reliable guide to future performance. Investments may fall as well as rise in value. By
accepting the grant of an Award, a Participant agrees that Prudential and the other members of the Company Group are not responsible for foreign exchange fluctuations between the Participant’s local currency and the U.S. dollar and are not
liable for any decrease in the value of shares of Common Stock. Changes in exchange rates may have an adverse effect on the value, price or income of the securities. 
  

	6.	Covenant not to solicit; other terms and restrictions 

  

	(a)	Restrictions during Employment: By accepting the grant of an Award a Participant agrees that during Employment, the Participant will not, other than on behalf of
the Company Group or as may otherwise be required in connection with the performance of the Participant’s duties on behalf of the Company Group, solicit or induce, either directly or indirectly, or take any action to assist any entity, either
directly or indirectly, in soliciting or inducing any employee of the Company Group (other than the Participant’s administrative assistant) to leave Employment (Induce Departures). 

 

	(b)	Post-Employment restrictive covenants, acknowledgements and representations: By accepting the grant of an Award a Participant agrees that following the
termination of the Participant’s Employment: 

  

	 	(i)	Until the original latest Vesting date of the Award or, if ending later, for a period of one year after the termination of the Participant’s Employment for any
reason, the Participant will not Induce Departures or hire or employ, or assist in the hire or employment of, either directly or indirectly, any employee of the Company Group (other than the Participant’s administrative assistant) or any former
employee of the Company Group within 60 days of that former employee’s cessation of Employment with the Company Group; 

  

	 	(ii)	If the Participant voluntarily resigns in circumstances qualifying for Approved Retirement, the Participant will not compete with the Company Group in any business in
which the Company Group is engaged on the last date of the Participant’s Employment that operates in any geographic area in which the Company Group operates as of the Participant’s last date of Employment, for a period of one year
following the Participant’s termination of Employment or until the original latest Vesting date of the Award, whichever is the shorter period; and 

  

	 	(iii)	The Participant could earn a living while fully complying with all of the provisions, restrictions and covenants contained in these Terms. The Participant acknowledges
that Prudential provides a wide range of insurance, investment management and other financial products and services to customers throughout the world and that the restrictions contained in these Terms are reasonable and necessary to protect
Prudential’s legitimate interests in its confidential information, trade secrets, customer relationships, and investment in the training and development of its employees. 

  
 2 

	(c)	Restrictions separable and divisible: By accepting the grant of an Award a Participant acknowledges and accepts the restrictions imposed by subsections 6(a) and
(b) of Part A of these Terms and that each restriction will be construed as separate and divisible from every other restriction. If any provision contained in the Plan or these Terms is for any reason held invalid, illegal or unenforceable in
any respect, that invalidity, illegality or unenforceability will not affect any other provision of the Plan or these Terms, and the Plan or these Terms will be construed as if the invalid, illegal or unenforceable provision had not been included in
the Terms. It is the intention of the parties that if any of the restrictions or covenants contained in these Terms is held to cover a geographic area or to be for a length of time which is not permitted by Applicable Law, or in any way construed to
be too broad or to any extent invalid, that provision will not be null, void and of not effect, but to the extent the provision would be valid or enforceable under Applicable Law, a court of competent jurisdiction will construe and interpret or
reform the Terms to provide for a covenant having the maximum enforceable geographic area, time period and other provisions (not greater than those contained in these Terms) as will be valid and enforceable under the Applicable Law. Prudential may
waive any restriction or any breach in circumstances that it determines do not adversely affect its interests, but only in writing signed by its Senior Vice President, Human Resources (or the successor to his or her human resource responsibilities),
or his or her delegate. No waiver of a breach of a restriction will be deemed a waiver of any other breach. 

  

	(d)	 Remedies: By accepting the grant of an Award a Participant agrees that the restrictions in subsections 6(a) and (b) of Part A of these
Terms are fair, reasonable and necessary, and are reasonably required for the protection of Prudential and any other member of the Company Group. The Participant agrees and acknowledges that the amount of damages that would derive from the breach of
any restriction is not readily ascertainable and that the restrictions are a significant portion of the consideration that the Participant conveys to Prudential in consideration of the grant of an Award. Accordingly, if a Participant fails to
execute and submit or revokes a Release or breaches any of the restrictive covenants set out in subsections 6(a) and (b) of Part A of these Terms, all of the Participant’s outstanding Awards will be cancelled immediately on the date of
that failure, as determined in the sole discretion of the Compensation Committee or its delegate. If a Participant breaches any of the restrictive covenants set out in subsections 6(a) and (b) of Part A of these Terms, in addition to any
equitable relief available to Prudential as outlined below, the Participant will transfer to Prudential Common Stock (rounded to the nearest whole share) equal in value (using the current Market Value of Common Stock on the date the letter of
notification of the breach is dated) to the profit realized by the Participant under the Plan occurring (I) in the case of any breach while the Participant is an employee of the Company Group, within twelve (12) months before the date of
the breach or at any time after the date of such breach; or (II) in the case of a breach after the termination of the Participant’s Employment, within six (6) months before the date on which the Participant’s Employment terminated or
at any time after the date of such termination of Employment. For the avoidance of doubt, the term “profit” referred to in the preceding sentence will be equal to (I) in the case of any Options, the sums (determined separately for
each exercise of any portion of the Options within the applicable period established pursuant to such sentence) of (i) (A) the Market Value of a share of Common Stock on the date of exercise, in the case of a Cash Exercise, the price at
which shares of Common Stock are sold, in the case of a Same Day Sale, or a combination of such Market Value and sales price, in the case of a Sell to Cover (as each such term is defined in Part C below), minus (B) the Grant Price of the
Option, times (ii) the number of shares of Common Stock acquired on exercise of the Option(s); (II) in the case of any Restricted Stock Unit or Performance Share Award, the sums (determined separately for each grant payable within the
applicable period established pursuant to such sentence) of (i) the Market Value of a share of Common Stock on the date of payment times (ii) the number of shares of Common Stock acquired or acquirable, and (III) in the case of any other
Award payable in cash, the amount of cash paid in respect of such Award. The Participant will pay any such amount (in the form of Common Stock or cash, as applicable) to Prudential within five (5) business days of the date Prudential notifies
the Participant that a breach of the provisions of this Section 6 has occurred. If payment is not made within that period, any subsequent payment will be made with interest at a rate equal to the prime

  
 3 

	 	
rate as reported in The Wall Street Journal (Eastern Edition) on the date on which notice of the breach is sent to the Participant by Prudential, plus two (2) percent. Interest payments will
be made in cash. A Participant also acknowledges that the damages to Prudential for any breach of subsections 6(a) or (b) of Part A of these Terms would be irreparable. Therefore, in addition to monetary damages and/or reasonable
attorney’s fees, Prudential will have the right to seek injunctive and/or other equitable relief in any court of competent jurisdiction to enforce the restriction. Further, a Participant consents to the issue of a temporary restraining order to
maintain the status quo pending the outcome of any proceeding. 

  

	7.	Compliance with Applicable Laws 

 Awards
granted under the Plan and Prudential’s obligation to deliver shares of Common Stock or make payment of cash, as applicable, under these Terms will be subject in all respects to (a) all Applicable Laws, and (b) any registration,
qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Compensation Committee determines to be necessary or applicable. Shares of Common Stock or cash, as applicable, may not be delivered or
paid to a Participant if their receipt would be contrary to any Applicable Laws or the rules of any applicable stock exchange. 
  

	8.	Investment representation 

 If at the time
of delivery of any shares of Common Stock under the Plan, the Common Stock is not registered under the United States Securities Act of 1933, as amended (the Securities Act), or there is no current prospectus in effect under the Securities Act
with respect to the Common Stock, a Participant will, if requested by the Compensation Committee, execute, before the delivery of any shares of Common Stock, an agreement (in the form the Compensation Committee specifies) in which the Participant
represents and warrants that the Participant is acquiring the shares for the Participant’s own account, for investment only and not with a view to the resale or distribution of the shares, and agrees that any subsequent offer for sale or
distribution of any kind of such shares will be made only pursuant to either (a) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the
shares being offered or sold; or (b) a specific exemption from the registration requirements of the Securities Act, but in claiming that exemption, the Participant will, before any offer for sale of the shares, obtain a prior favorable written
opinion, in form and substance satisfactory to the Compensation Committee, from counsel for or approved by the Compensation Committee, as to the applicability of the exemption. 

 

	9.	Governing law 

 A Participant acknowledges
that Prudential is organized under the laws of the State of New Jersey and maintains its headquarters in Newark, New Jersey. The Participant further acknowledges that Prudential has an interest in ensuring the uniform interpretation and application
of these Terms to all Participants. Accordingly, Prudential and the Participant agree that the Plan and these Terms will be governed by the laws of the State of New Jersey, without giving effect to its conflict of law provisions. 

 

	10.	Electronic delivery and acceptance 

 By
accepting an Award under the Plan, a Participant agrees, to the fullest extent permitted by Applicable Laws, in lieu of receiving documents in paper format to accept electronic delivery of any documents that any member of the Company Group may be
required to deliver in connection with the Plan. Electronic delivery of a document may be via e-mail or by reference to a location on a member of the Company Group’s intranet site or a designated third-party vendor’s internet site.

  
 4 

	11.	No rights as a shareholder 

 A Participant
does not have any rights as a shareholder in Prudential by virtue of the grant of an Award under the Plan, but only with respect to shares of Common Stock, if any, delivered to the Participant in accordance with the Plan and these Terms. 

 

	12.	Section 409A 

 Notwithstanding any
provision of the Plan to the contrary, no acceleration of the time or schedule of any delivery of shares or other payment related to an Award will be permitted to the extent necessary to comply with Code Section 409A and any regulations issued
under Section 409A. The Compensation Committee may amend, modify, adjust or supplement any provision of the Plan without a Participant’s consent if the Compensation Committee determines that the amendment, modification, adjustment or
supplementation is required or advisable for an Award or Prudential to comply with, or not violate, any Applicable Laws, regulation or rule, including, without limitation, Section 409A. 

 

	13.	Other terms 

 Participation in the Plan
does not entitle an employee of the Company Group to any benefit other than that granted under the Plan. Any benefits granted under the Plan will not be deemed to be compensation under any pension plan or other retirement plan, welfare plan or any
compensation plan or program maintained by any member of the Company Group, and will not be considered as part of compensation for the purposes of calculating pension, profit-sharing, bonuses, service awards, or in the event of severance, redundancy
or resignation. 
 Prudential may modify, amend, suspend or terminate the Plan or any and all of the policies, programs and terms of the Plan in
whole or in part, at any time, without notice to or with the consent of Participants. 
 If shares of Common Stock are, or are to be, delivered
in a manner not specifically authorized by the Plan, (i.e., in “Error”), Prudential will be entitled to correct the Error, including reversing the transaction and recouping any Common Stock or gain that might be delivered as a result of
the Error. 
 The English language version of any documents provided in connection with the Plan will prevail in the case of any ambiguities or
divergences as a result of the translation of the document into any other language. 
 Participation in the Plan is not intended to constitute
or create a contract of employment nor does it constitute or create the right to remain associated with or in the employ of any member of the Company Group for any particular period of time. Participation in the Plan does not affect in any way a
member of the Company Group’s right to terminate an employee’s Employment at any time, with or without cause, and does not form part of an employee’s employment contract, if any. 

  
 5 

 PART B: Terms and conditions applicable to Restricted Stock Units under the Long-Term
Incentive Program 
  

	1.	Restricted Period 

 The restricted period
(the Restricted Period) with respect to the Restricted Stock Units will begin on the Grant Date and will end on the RSU Payment Date. 
  

	2.	Settlement of Restricted Stock Units 

Subject to the terms and conditions of the Plan, a Participant in active Employment on the RSU Payment Date will receive as soon as administratively
practicable after the RSU Payment Date (but not later than the end of the calendar year in which the RSU Payment Date occurs) the number of shares of Common Stock equal to the number of Restricted Stock Units vested in accordance with these Terms,
less any taxes or other deductions required by Applicable Law. 
  

	3.	Vesting or forfeiture of Restricted Stock Units following termination of Employment in specific circumstances 

A Participant’s outstanding Restricted Stock Units will automatically be forfeited and cancelled on the termination of the Participant’s
Employment and no shares of Common Stock may thereafter be issued with respect to the Restricted Stock Units, except in the specific circumstances set out in the table below: 

 

			
	  	  	 Restricted Stock Units

	 Type of Termination of Employment
	  	 Vesting Status

	Voluntary Resignation	  	All outstanding Restricted Stock Units are immediately forfeited.

  
 6 

			
	  	  	 Restricted Stock Units

	 Type of Termination of Employment
	  	 Vesting Status

	Approved Retirement	  	 If the Participant retires in 2012 with less than 3 months of active service in such year, all Restricted Stock Units will immediately
be forfeited.
  
 If the Participant retires in 2012 in circumstances
qualifying for Approved Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), the Participant will receive a pro-rated(1) number of shares of Common Stock as soon as administratively practicable following the RSU Payment Date (but in all
events not later than the end of the calendar year in which the RSU Payment Date occurs). The remainder of the Restricted Stock Units will be forfeited. If the Participant does not execute a Release, all Restricted Stock Units will be forfeited on
the last date of Employment.
  
 If the Participant retires after 2012 in
circumstances qualifying for Approved Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), the Participant will receive shares of Common Stock equal to the number of outstanding
Restricted Stock Units as soon as administratively practicable after the RSU Payment Date (but in all events not later than the end of the calendar year in which the RSU Payment Date occurs). If the Participant does not execute a Release, all
Restricted Stock Units will be forfeited on the last date of Employment.

		
	Termination for Cause	  	 All outstanding Restricted Stock Units are immediately forfeited.

 
 The Compensation Committee may require the Participant to repay any payment, profit,
gain or other benefit (including, but not limited to, any dividends or Dividend Equivalents) in respect of the Restricted Stock Units or any prior restricted stock units or Awards received within a period of twelve (12) months before the
Participant’s termination of Employment for Cause. If a Participant’s Employment is terminated by any member of the Company Group for Cause, the provisions in these Terms relating to termination for Cause will apply notwithstanding any
assertion (by the Participant or otherwise) that the Participant’s Employment was terminated for any other reason.

		
	Death (while an active employee)	  	All outstanding Restricted Stock Units become fully vested and the Participant’s estate will receive shares of Common Stock as soon as administratively practicable (but not
later than 74 days) thereafter.

  
 7 

			
	  	  	 Restricted Stock Units

	 Type of Termination of Employment
	  	 Vesting Status

	Disability	  	All outstanding Restricted Stock Units become fully vested and the Participant will receive shares of Common Stock as soon as administratively practicable (but not later than 74
days) thereafter.
		
	Involuntary Termination for any other reason	  	If a Participant executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), a pro-rated(2) number of Restricted Stock Units will vest and
the Participant will receive shares of Common Stock as soon as administratively practicable (but not later than 74 days) thereafter. The remainder of the Restricted Stock Units will be forfeited. If the Participant does not execute a Release,
all Restricted Stock Units will be forfeited on the last date of Employment.
		
	Change of Control	  	All Restricted Stock Units will become vested and the Participant will normally receive shares of Common Stock; unless the entity that acquires control honors, assumes, or
substitutes new rights for the Restricted Stock Units with substantially equivalent or better rights, terms, conditions and values as determined by the Compensation Committee. Alternatively, the Compensation Committee may, at its sole discretion,
provide for payment in cash based on the Change of Control price.

  

	(1) 	 Pro-ration is based on the number of months of active service during that year divided by 12. The remaining balance will be forfeited as of the date of
retirement. 

	(2) 	 Pro-ration is based on the number of months of active service since the Grant Date divided by 36. 

 

	4.	Section 409A 

 Notwithstanding any
other provisions of the Plan to the contrary, to the extent necessary to comply with the requirements of Code Section 409A and any regulations issued under Section 409A with respect to any individual who is a “specified employee”
within the meaning of Section 409A and any regulations, on termination of the Participant’s employment with any member of the Company Group, delivery of shares of Common Stock may not be made before the date that is six (6) months
after the date of such termination of Employment (or, if earlier, the date of the Participant’s death). In addition, to the extent necessary to comply with the requirements of Section 409A and any regulations issued under
Section 409A, if an award of Restricted Stock Units is treated as deferred compensation subject to Section 409A, no distribution will be made (although vesting will accelerate to the extent otherwise provided above) in respect of such
award upon the occurrence of a Change of Control unless such event qualifies as a change in the ownership of a corporation, change in the effective control of a corporation or a change in the ownership of a substantial portion of the assets of a
corporation within the meaning of Section 409A and any regulations issued thereunder. 
  

	5.	Dividend Equivalents 

 A Participant
granted Restricted Stock Units will be eligible to receive Dividend Equivalents on the Restricted Stock Units based on any regular cash dividends declared on Common Stock from the Grant Date until the RSU Payment Date (or until the date of
forfeiture, if sooner). Any Dividend Equivalents will be paid in cash as soon as administratively practicable (but not more than 74 days) after the related cash 

  
 8 

 
dividends are paid to Common Stock holders, unless determined otherwise by the Compensation Committee. Any Dividend Equivalents payable under the Plan will be treated as separate payments from
the underlying Restricted Stock Units for purposes of Section 409A of the Code. There will be no reinvestment option or earned interest credits on any Dividend Equivalent. 

  
 9 

 PART C: Terms and conditions applicable to Options under the Long-Term Incentive Program

  

	1.	Vesting and exercise 

 An Option will
normally vest and become exercisable in three equal annual installments on each anniversary of the Grant Date provided the Participant holding that Option remains in Employment throughout that period. 

 

	2.	Exercise of Options 

 An Option may be
exercised by the Participant: 
  

	(i)	paying in cash the Grant Price and any applicable taxes and fees (Cash Exercise); or 

 

	(ii)	directing the immediate sale of all the shares of Common Stock acquired on exercise and receiving the cash proceeds, after deduction of the Grant Price and applicable
taxes and fees (Same Day Sale); or 

  

	(iii)	directing the immediate sale of sufficient shares of Common Stock acquired on exercise necessary to pay the Grant Price and any applicable taxes and fees and receive
the remaining shares of Common Stock (Sell to Cover). 

 One or more of the exercise methods may not be available (or may
be unavailable during a specified period) if Prudential determines that its availability will or could violate the terms of any Applicable Laws. An Option cannot be exercised when the Market Value of a share of Common Stock does not exceed the Grant
Price. Please refer to Schedule 2 for country specific restrictions regarding the exercise of Options. 
  

	3.	Option term 

 Once an Option vests, it may
be exercised until its Expiration Date unless the Participant’s employment ends before the Expiration Date or a Change of Control occurs. 
  

	4.	Exercise or forfeiture of Options following termination of Employment in specific circumstances 

A Participant’s Options, whether vested or unvested, will automatically be forfeited and cancelled on the termination of the Participant’s
Employment, and no shares of Common Stock may thereafter be purchased under the Options, except in the specified circumstances set out in the table below: 
  

					
	 Stock Options

	 Type of
Termination of
Employment
	  	 Vesting Status on Last Date of Employment
	  	 Exercise
Period(1)

	Voluntary Resignation	  	Unvested Options will immediately be forfeited as of the last date of Employment. Vested but unexercised Options may be exercised after the last date of Employment, conditional on
the Participant executing and submitting a Release by the date specified by Prudential (and not later revoking the Release). If the Participant does not execute a Release, all Options will be forfeited as of the last date of the Participant’s
Employment.	  	Vested Options may be exercised until the earlier of 90 days after the last date of Employment or the option Expiration Date, conditional on the Participant executing and submitting
a Release by the date specified by Prudential (and not later revoking the Release).

  
 10 

					
	 Stock Options

	 Type of
Termination of
Employment
	  	 Vesting Status on Last Date of Employment
	  	 Exercise
Period(1)

	Approved Retirement	  	If a Participant retires in circumstances qualifying for Approved Retirement with less than three months of active service in 2012, all Options will immediately be forfeited.
Otherwise, the Participant’s Options will continue to vest according to the original vesting schedule, conditioned on the Participant executing and submitting a Release by the date specified by Prudential (and not later revoking the Release).
If a Participant does not execute a Release, all Options will be forfeited on the last date of the Participant’s Employment.	  	Vested Options may be exercised until the earlier of: (i) the Expiration Date; or (ii) the date 5 years after the last date of the Participant’s Employment, conditional on the
Participant executing and submitting a Release by the date specified by Prudential (and not later revoking the Release).
			
	Termination for Cause	  	 All Options, whether vested or unvested, will immediately be forfeited on the last date of the Participant’s Employment.

 
 The Compensation Committee may require the Participant to repay any payment, profit,
gain or other benefit (including, but not limited to any dividends or Dividend Equivalents) received in respect of the exercise of any Options for a period of up to twelve (12) months before the Participant’s termination of Employment for
Cause. If a Participant’s Employment is terminated by any member of the Company Group for Cause, the provisions contained in these Terms relating to termination for Cause will apply notwithstanding any assertion (by the Participant or
otherwise) that the Participant’s Employment terminated for any other reason.
	  	A Participant may not exercise any Options after the last date of Employment, even if the Options were vested. All outstanding Options are forfeited.
			
	Death (while an active employee)	  	Options become fully vested and immediately exercisable.	  	 The Participant’s estate may exercise the Options until the third anniversary of the date of death (or any earlier date the
Compensation Committee determines) or, if the Option Expiration Date is earlier than that, the later of:
  

•   the Expiration Date, or

 
 •   the first
anniversary of the date of death.

			
	Disability	  	Options become fully vested and immediately exercisable.	  	Options may be exercised until the earlier of the Expiration Date or 3 years (or any shorter period the Compensation Committee determines) after the Participant’s last date of
Employment.

  
 11 

					
	 Stock Options

	 Type of
Termination of
Employment
	  	 Vesting Status on Last Date of Employment
	  	 Exercise
Period(1)

	Involuntary Termination for any other reason	  	Options that are vested and unexercised at the date of termination of the Participant’s Employment will remain exercisable if the Participant executes and submits a Release by
the date specified by Prudential (and does not later revoke the Release). Unvested Options are immediately forfeited. If a Release is not executed, all Options will be forfeited as of the last date of the Participant’s Employment.	  	Vested Options may be exercised until the earlier of the Expiration Date or 90 days after the Participant’s last date of Employment, conditional on the Participant executing
and submitting a Release by the date specified by Prudential (and not later revoking the Release).
			
	Change of Control	  	Options will become fully vested and immediately exercisable on the date of the Change of Control; unless the entity that acquires Control honors, assumes, or substitutes new rights
for the Options with substantially equivalent or better rights, terms, conditions and value. Alternatively, the Compensation Committee may, at its sole discretion, provide for payment in cash based on the Change of Control price.	  	If the entity that acquires control honors, assumes, or substitutes new rights for the Options, the Options (or any substituted alternative award) may be exercised on terms at least
as favorable as the Options. If the entity that assumes control does not honor, assume, or substitute new rights for Options, the Compensation Committee may cancel the Options in exchange for payment in cash.

  

	(1) 	 The period stated may not extend beyond the Expiration Date, other than in the case of death as applicable. Options can be exercised on the Expiration
Date, but only during hours that the New York Stock Exchange (NYSE) is open for trading. If an Option expires on a day that the NYSE is closed, it can be exercised only during the market hours on or before the last day of NYSE trading before the
Option’s Expiration Date. 

  
 12 

 PART D: Terms and conditions applicable to Performance Shares and Performance Units under
the Long-Term Performance Program, a sub-program of the Long-Term Incentive Program 
  

	1.	Performance Cycle 

 The Performance Cycle
(the Performance Cycle) with respect to Performance Shares and Performance Units will begin on January 1, 2012 and will end on December 31, 2014. 
  

	2.	Settlement of Performance Shares and Performance Units 

 Subject to the terms and conditions of the Plan and following approval by the Compensation Committee, any (i) shares of Common Stock to which a Participant is entitled in respect of Performance
Shares; and (ii) amount of cash to which a Participant is entitled in respect of Performance Units will be delivered or paid to such Participant as soon as administratively practicable (but not later than 74 days) after the PS/PU Payment Date,
less any taxes or other deductions required by Applicable Law. 
  

	3.	Earnout: Performance Goals 

 A
Participant’s Performance Shares and Performance Units are conditioned on achievement of ROE Goals specified by the Compensation Committee, with respect to the Performance Cycle. 
 ROE is defined as Prudential’s “operating return on average equity (based on after-tax adjusted operating income)” as publicly disclosed in Prudential’s Quarterly Financial Supplement
(“QFS”). ROE for each year in the Performance Cycle is defined as the average of the quarterly ROE figures for such year published in the QFS. 
 The number of shares of Common Stock and the amount of cash that a Participant may become eligible to receive will be equal to the applicable target number of Performance Shares and/or Performance Units
awarded, adjusted by the applicable ROE Earned Payout Factor (which is determined based on the achievement of the ROE Goals over the Performance Cycle). Any resulting number of shares of Common Stock shall be rounded to the nearest whole number. The
aggregate amount of shares of Common Stock and cash payable to the Participant will be the “Final Payout Amount,” which will be made on the PS/PU Payment Date (shortly following the end of the Performance Cycle) subject to the terms,
conditions and restrictions set out in these Terms and in the Plan, including the requirement that the Participant remain actively employed with the Company Group as of the PS/PU Payment Date. The Compensation Committee will determine, in its sole
discretion, the Final Payout Amount. 
 The ROE Goals will be the average of actual ROE for 2012, 2013 and 2014. The ROE Goals are as follows:

  

			
	 Table 1

	 ROE Goals
	 	 ROE Earned Payout
Factor

	8.00% or less	 	0
	9.00%	 	0.25
	10.00%	 	0.50
	11.00%	 	0.75
	12.00%	 	1.00 (target)
	12.50%	 	1.25
	13.0% or more	 	1.50 (maximum)

 If the average ROE achieved is between any two data points, the corresponding ROE Earned Payout Factor will bear a linear
relationship with the actual achievement between such data points. 

  
 13 

 In the event of (i) an acquisition (as determined by the Compensation Committee in its sole discretion)
involving Common Stock or a divestiture or other transaction involving Prudential or any other member of the Company Group during the Performance Cycle, (ii) an accounting pronouncement or methodology change, (iii) an unplanned corporate
initiative, or (iv) other significant events that are unusual, non-recurring and not reflective of operating performance, the Compensation Committee may, in its sole discretion, assess the impact of any such event on the ROE Goals and adjust
such goals and related payout scales as the Compensation Committee, in its sole discretion, deems appropriate. 
 Notwithstanding the foregoing,
the Compensation Committee, in its sole discretion, may (i) under normal circumstances, adjust the Final Payout Amount within the standard range of 0% to 150% of the target number of Performance Shares and Performance Units by up to plus or
minus 15% of the amount that would otherwise be payable to take into account performance factors and other events, as the Compensation Committee deems desirable, and (ii) in the event of circumstances deemed to be extraordinary by the
Compensation Committee, make additional adjustments to the Final Payout Amount. 
  

	4.	Vesting or forfeiture of Performance Shares and Performance Units following termination of Employment in specific circumstances 

A Participant’s outstanding Performance Shares and Performance Units will automatically be forfeited and cancelled on the termination of the
Participant’s Employment and no shares of Common Stock and no amount of cash may thereafter be issued or paid with respect to the Performance Shares and Performance Units, respectively, except in the specific circumstances set out in the table
below: 
  

			
	  	  	 Performance Shares and Performance Units

	 Type of Termination of Employment
	  	 Vesting Status

	Voluntary Resignation	  	All outstanding Performance Shares and Performance Units are immediately forfeited.

  
 14 

			
	  	  	 Performance Shares and Performance Units

	 Type of Termination of Employment
	  	 Vesting Status

	Approved Retirement	  	 If the Participant retires in 2012 with less than 3 months of active service in such year, all Performance Shares and Performance Units
will immediately be forfeited.
  
 If the Participant retires in 2012 in
circumstances qualifying for Approved Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), the Participant will receive a pro-rated(1) Final Payout Amount as soon as administratively practicable
following the PS/PU Payment Date (but in all events not later than the end of the calendar year in which the PS/PU Payment Date occurs). The remainder of the Performance Shares and Performance Units will be forfeited. If the Participant does not
execute a Release, all Performance Shares and Performance Units will be forfeited on the last date of Employment.
  
 If the Participant retires after 2012 in circumstances qualifying for Approved Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release),
the Participant will receive the Final Payout Amount as soon as administratively practicable following the PS/PU Payment Date (but in all events not later than the end of the calendar year in which the PS/PU Payment Date occurs). If the Participant
does not execute a Release, all Performance Shares and Performance Units will be forfeited on the last date of Employment.

		
	Termination for Cause	  	 All outstanding Performance Shares and Performance Units are immediately forfeited.

 
 The Compensation Committee may require the Participant to repay any payment, profit,
gain or other benefit (including, but not limited to, any dividends or Dividend Equivalents) in respect of the Performance Shares and Performance Units or any prior performance shares or performance units received within a period of twelve (12)
months before the Participant’s termination of Employment for Cause. If a Participant’s Employment is terminated by any member of the Company Group for Cause, the provisions in these Terms relating to termination for Cause will apply
notwithstanding any assertion (by the Participant or otherwise) that the Participant’s Employment was terminated for any other reason.

		
	Death (while an active employee)	  	All outstanding Performance Shares and Performance Units become fully vested at target and the Participant’s estate will receive a corresponding number of shares of Common
Stock and cash as soon as administratively practicable (but not later than 74 days) thereafter.

  
 15 

			
	  	  	 Performance Shares and Performance Units

	 Type of Termination of Employment
	  	 Vesting Status

	Disability	  	All outstanding Performance Shares and Performance Units become fully vested at target and the Participant will receive a corresponding number of shares of Common Stock and cash as
soon as administratively practicable (but not later than 74 days) thereafter.
		
	Involuntary Termination for any other reason	  	If a Participant executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), a pro-rated(2) target number of Performance Shares and Performance Units will vest
and the Participant will receive a corresponding number of shares of Common Stock and cash, respectively, as soon as administratively practicable (but not later than 74 days) thereafter. The remainder of the Performance Shares and Performance Units
will be forfeited. If the Participant does not execute a Release, all Performance Shares and Performance Units will be forfeited on the last date of Employment.
		
	Change of Control	  	All Performance Shares and Performance Units will become vested at target and the Participant will receive shares of Common Stock and cash, respectively; unless the entity that
acquires control honors, assumes, or substitutes new rights for the Performance Shares and Performance Units with substantially equivalent or better rights, terms, conditions and values as determined by the Compensation Committee. Alternatively, the
Compensation Committee may, at its sole discretion, provide for payment in cash based on the Change of Control price

  

	(1) 	 Pro-ration is based on the number of months of active service during that year divided by 12. The remaining balance will be forfeited as of the date of
retirement. 

	(2) 	 Pro-ration is based on the number of months of active service in the Performance Cycle divided by 36. 

 

	6.	Section 409A 

 Notwithstanding any
other provisions of the Plan to the contrary, to the extent necessary to comply with the requirements of Code Section 409A and any regulations issued under Section 409A with respect to any individual who is a “specified employee”
within the meaning of Section 409A and any regulations, on termination of the Participant’s employment with any member of the Company Group, delivery of shares of Common Stock may not be made before the date that is six (6) months
after the date of such termination of Employment (or, if earlier, the date of the Participant’s death). In addition, to the extent necessary to comply with the requirements of Section 409A and any regulations issued under
Section 409A, if an award of Performance Shares or Performance Units is treated as deferred compensation subject to Section 409A, no distribution will be made (although vesting will accelerate to the extent otherwise provided above) in
respect of such award upon the occurrence of a Change of Control unless such event qualifies as a change in the ownership of a corporation, change in the effective control of a corporation or a change in the ownership of a substantial portion of the
assets of a corporation within the meaning of Section 409A and any regulations issued thereunder. 

  
 16 

	7.	Dividend Equivalents 

 A Participant
granted Performance Shares and Performance Units will be eligible to receive Dividend Equivalents on the lesser of (a) the Final Payout Amount; or (b) the respective target amount of Performance Shares and Performance Units, based on any
regular cash dividends declared on Common Stock from the Grant Date until the PS/PU Payment Date (or until the date of forfeiture, if sooner). Any Dividend Equivalents will be paid in cash as soon as administratively practicable after shares of
common stock are delivered in respect of the corresponding Performance Shares and cash is payable with respect to the Performance Units. There will be no reinvestment option or earned interest credits on any Dividend Equivalent. 

  
 17 

 PART E: Terms and conditions applicable to the Book Value Units under the Book Value
Performance Program, a sub-program of the Long-Term Incentive Program 
  

	1.	Book Value Units 

 Each Participant in the
Book Value Performance Program will be granted a number of Book Value Units. 
  

	2.	Vesting Period 

 One-third of each
Participant’s Book Value Units will vest on each of the first three anniversaries of the Grant Date. 
  

	3.	Settlement of Book Value Units 

 Subject
to the terms and conditions of the Plan and subject to the Participant’s continued Employment through the applicable BVU Payment Date, as soon as administratively practicable after the date any Book Value Units vest (but not later than the end
of the calendar year in which the Book Value Units vest), a Participant will be paid an amount in cash equal to the product of (a) the number of Book Value Units that have become vested and (b) the Book Value Per Share as of the fiscal
quarter ended on or immediately before the applicable BVU Payment Date, less any taxes or other deductions required by Applicable Law. 
  

	4.	Vesting or forfeiture of Book Value Units following termination of Employment in specific circumstances 

A Participant’s outstanding Book Value Units will automatically be forfeited and cancelled on the termination of the Participant’s Employment
and no amount may thereafter be payable with respect to the Book Value Units, except in the specific circumstances set out in the table below: 
  

			
	  	  	 Book Value Units

	 Type of Termination of Employment
	  	 Vesting Status

	Voluntary Resignation	  	All outstanding Book Value Units are immediately forfeited.

  
 18 

			
	  	  	 Book Value Units

	 Type of Termination of Employment
	  	 Vesting Status

	Approved Retirement	  	 If the Participant retires in 2012 with less than 3 months of active service in such year, all Book Value Units will immediately be
forfeited.
  
 If the Participant retires in 2012 in circumstances qualifying
for Approved Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), the treatment of Book Value Units will depend on the extent to which such Book Value Units are sourced from the
Participant’s long-term incentive compensation or annual incentive award. With respect to the portion of Book Value Units sourced from the Participant’s long-term incentive compensation, the Participant will receive, as soon as
administratively practicable following each successive BVU Payment Date (but in all events not later than the end of the calendar year in which the applicable BVU Payment Date occurs), a cash payment equal to the product of (I) one third (1/3) of
the pro-rated(1) number of the Book Value Units sourced
from the Participant’s long-term incentive compensation outstanding at the time of the Participant’s termination of Employment and (II) the Book Value Per Share as of the fiscal quarter ended on or immediately before the applicable BVU
Payment Date. The remainder of the Participant’s outstanding Book Value Units sourced from the Participant’s long-term incentive compensation will be forfeited. With respect to the portion of Book Value Units sourced from the
Participant’s annual incentive award, the Participant will receive payment in respect of such portion of Book Value Units at the same time and in the same amount that would have been payable had the Participant remained in Employment. If the
Participant does not execute a Release, all Book Value Units (whether or not sourced from long-term incentive compensation or annual incentive award) will be forfeited on the last date of Employment.

 
 If the Participant retires after 2012 in circumstances qualifying for Approved
Retirement and executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), the Participant will receive payment in respect of his or her remaining Book Value Units at the same time and in the same
amounts that would have been payable had the Participant remained in Employment. If the Participant does not execute a Release, all Book Value Units will be forfeited on the last date of
Employment.

  
 19 

			
	  	  	 Book Value Units

	 Type of Termination of Employment
	  	 Vesting Status

	Termination for Cause	  	 All outstanding Book Value Units are immediately forfeited.

 
 The Compensation Committee may require the Participant to repay any payment, profit,
gain or other benefit in respect of the Book Value Units or any prior book value units or Awards received within a period of twelve (12) months before the Participant’s termination of Employment for Cause. If a Participant’s Employment is
terminated by any member of the Company Group for Cause, the provisions in these Terms relating to termination for Cause will apply notwithstanding any assertion (by the Participant or otherwise) that the Participant’s Employment was terminated
for any other reason.

		
	Death (while an active employee)	  	All outstanding Book Value Units become fully vested and the Participant’s estate will receive a cash payment equal to the product of (I) the number of such outstanding Book
Value Units and (II) the Book Value Per Share as of the fiscal quarter ended on or immediately before the date of the Participant’s death. This cash payment will be made as soon as administratively practicable (but not later than 74 days) after
the date of the Participant’s death.
		
	Disability	  	All outstanding Book Value Units become fully vested and the Participant will receive a cash payment equal to the product of (I) the number of such outstanding Book Value Units and
(II) the Book Value Per Share as of the fiscal quarter ended on or immediately before the Participant’s termination of Employment. This cash payment will be made as soon as administratively practicable (but not later than 74 days) after the
Participant’s termination of Employment.
		
	Involuntary Termination for any other reason	  	If a Participant executes and submits a Release by the date specified by Prudential (and does not later revoke the Release), a pro-rated(2) number of such Participant’s then outstanding Book Value Units
will vest and the Participant will receive a cash payment equal to the product of (I) such pro-rated number of such outstanding Book Value Units and (II) the Book Value Per Share as of the fiscal quarter ended on or immediately prior to the
Participant’s termination of Employment. This cash payment will be made as soon as administratively practicable (but not later than 74 days) after the Participant’s termination of Employment. The remainder of the Participant’s
outstanding Book Value Units will be forfeited. If the Participant does not execute a Release, all Book Value Units will be forfeited on the last date of Employment.

  
 20 

			
	  	  	 Book Value Units

	 Type of Termination of Employment
	  	 Vesting Status

	Change of Control	  	All Book Value Units will become vested and the Participant will normally receive a payment in cash based on the Book Value Per Share on the fiscal quarter ended on or immediately
prior to the Change of Control; unless the entity that acquires control honors, assumes, or substitutes new rights for the Book Value Units with substantially equivalent or better rights, terms, conditions and values as determined by the
Compensation Committee.

  

	(1) 	 Pro-ration is based on the number of months of active service during that year divided by 12. The remaining balance will be forfeited as of the date of
retirement. 

	(2) 	 Pro-ration is based on the number of months of active service since the Grant Date (or, if less, since the last BVU Payment Date) divided by the
remainder of (i) 36 minus (ii) the product of (A) 12 and (B) the number of anniversaries of the Grant Date that have occurred prior to the date of termination of Employment. 

The Compensation Committee, in its sole discretion, shall determine the Book Value Units, the Book Value Per Share, and any amount of payments thereof.

  

	5.	Forfeiture 

 Notwithstanding any
provisions in these Terms to the contrary, the Compensation Committee may, in its sole discretion, reduce (but not below zero) the account balance of any Participant under the Book Value Performance Program if, in the opinion of the Compensation
Committee, the Participant has engaged in conduct, or omitted taking appropriate action, which is a contributing factor in the material restatement of any annual Prudential consolidated income statement, as filed with the Securities and Exchange
Commission and as discussed with Prudential’s Audit Committee, with such restatement being filed primarily to correct an error in the consolidated income statement. Any determination by the Compensation Committee regarding such a reduction
shall be final, conclusive and binding on all parties. 
  

	6.	Section 409A 

 Notwithstanding any
other provisions of the Plan to the contrary, to the extent necessary to comply with the requirements of Code Section 409A and any regulations issued under Section 409A with respect to any individual who is a “specified employee”
within the meaning of Section 409A and any regulations, on termination of the Participant’s employment with any member of the Company Group, payment of any cash amount due may not be made before the date that is six (6) months after
the date of such termination of Employment (or, if earlier, the date of the Participant’s death). In addition, to the extent necessary to comply with the requirements of Section 409A and any regulations issued under Section 409A, if
an award of Book Value Units is treated as deferred compensation subject to Section 409A, no distribution will be made (although vesting will accelerate to extent otherwise provided above) in respect of such award upon the occurrence of a
Change of Control unless such event qualifies as a change in the ownership of a corporation, change in the effective control of a corporation or a change in the ownership of a substantial portion of the assets of a corporation within the meaning of
Section 409A and any regulations issued thereunder. 
  

	7.	No Dividend Equivalents 

 A Participant
granted Book Value Units will not be eligible to receive Dividend Equivalents on the Book Value Units. 

  
 21 

 SCHEDULE 1 
 DEFINITIONS 
 For the purposes of the Terms, the following words and expressions have the
meanings ascribed to them. 
 Applicable Laws – applicable laws, rules and regulations relating to any Awards made under the Plan or
otherwise relating to the Plan; 
 Approved Retirement – termination of a Participant’s Employment: 

 

	(i)	on or after the Participant’s normal retirement date or any early retirement date established under any defined benefit pension plan maintained by a member of the
Company Group in which the Participant participates; or 

  

	(ii)	when the Participant has reached age fifty-five (55) with a minimum of five years’ service. 

Approved Retirement does not apply to any Participant who has an Agent Emeritus contract with any of Prudential’s insurance affiliates or to a
Participant whose Employment is terminated for Cause, even if, in either case, the Participant is receiving retirement benefits or is otherwise eligible for retirement or has satisfied the conditions in (ii) above. 

Award – the grant of an Option, a Restricted Stock Unit, a Performance Share, or a Performance Unit (including a Book Value Unit), or a
combination thereof. 
 Board – the board of directors of Prudential. 
 Book Value Per Share – the equity attributed to Prudential’s Financial Services businesses, excluding total accumulated other comprehensive income, as determined based on
Prudential’s financial statements for the relevant period. 
 Book Value Unit – an award of Performance Units, payable in cash
and valued based on the Book Value Per Share. 
 BVU Payment Dates – the dates on which the continuing service requirement
applicable to one-third of the Book Value Units are scheduled to lapse, as specified by the Compensation Committee at the Grant Date, which occur on the first three anniversaries of the Grant Date. 

Cause – includes but is not restricted to any of the following (as determined by the Compensation Committee): (i) dishonesty, fraud or
misrepresentation; (ii) inability to obtain or retain appropriate licenses; (iii) violation of any rule or regulation of any regulatory agency or self-regulatory agency; (iv) violation of any policy or rule of Prudential or any
subsidiary; (v) commission of a crime; (vi) breach by a Participant of any covenant or agreement with any member of the Company Group not to disclose or misuse any information pertaining to, or misuse any property of, any member of the
Company Group; or (vii) any act or omission detrimental to the conduct of the business of any member of the Company Group. 
 Change of
Control – occurs, in general, when (i) any person or entity outside of Prudential acquires, directly or indirectly, twenty-five percent (25%) or more of the combined voting power of Prudential or of the combined assets of
Prudential (and its subsidiaries); (ii) the composition of the Board changes over a 24-month period such that the Incumbent Directors no longer constitute a majority of the Board; (iii) a Corporate Event completes and immediately following
completion the shareholders of Prudential immediately before the Corporate Event do not hold, directly or indirectly, a majority of the voting power of, in the case of (a) a merger or consolidation, the surviving or resulting corporation;
(b) a share exchange, the acquiring corporation; or (c) a division or a sale or other disposition of assets, each surviving, resulting or 

  
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acquiring corporation which, immediately following the relevant Corporate Event, holds more than twenty-five percent (25%) of the consolidated assets of Prudential immediately before the
Corporate Event; or (iv) any other event that the Board declares to be a Change of Control. 
 No change of control occurs on an
underwritten offering of the equity securities of Prudential when no person or entity acquires more than twenty-five percent (25%) ownership in such securities. The Plan document details how a Change of Control will be determined in various
types of acquisitions and corporate reorganization events (including sales of assets), and the document’s terms govern any determination that a Change of Control has occurred. 
 Code – the United States Internal Revenue Code of 1986, as amended. 
 Common Stock
– a share of Common Stock in Prudential. 
 Company Group – Prudential and/or its subsidiaries. 

Compensation Committee – the Compensation Committee of the Board, which administers the Plan. 

Corporate Event – a merger, consolidation, recapitalisation or reorganisation, share exchange, division, sale, plan of complete liquidation
or dissolution, or other disposition of all or substantially all of the assets of Prudential which has been approved by the shareholders of Prudential. 
 Disability – means, with respect to any Participant, long-term disability as defined under the welfare benefit plan maintained by the member of the Company Group in which the Participant
participates and from which the Participant is receiving a long-term disability benefit. In jurisdictions outside the United States where long-term disability is covered by a mandatory or universal program sponsored by the government or an
industrial association, receipt of long-term disability benefit from such a program is considered to have met the disability definition of the Plan. 
 Dividend Equivalent – an amount paid in lieu of dividends declared on Common Stock during a period that an applicable Award is outstanding. 

Employment – means employment with any member of the Company Group. 
 Exercise Date – the date on which an Option is validly exercised. 
 Expiration Date
– the tenth anniversary of the Grant Date and the last date on which an Option can be exercised, unless the Participant’s Employment ends before the Expiration Date or a Change of Control occurs. 

Grant Date – with respect to an Award, the date on which it is granted under the Plan. 

Grant Price – the price set at the Grant Date at which a share of Common Stock can be acquired on exercise of an Option. 

Incumbent Directors – with respect to any period of time specified under the Plan for the purposes of determining a Change of Control, the
persons who were members of the Board at the beginning of the period, as well as any director elected to the Board or nominated for election to the Board by a majority of the Incumbent Directors. 

Market Value – means, on any date, the price at which shares of Common Stock were last traded on that date on the New York Stock Exchange or,
if there are no transactions on that date, the closing price on the immediately preceding date on which there was a transaction. For the purposes of determining the taxable income from Options and/or Restricted Stock Units, it should be noted that
in some countries there are specific rules that set out how Market Value is determined. Where applicable, any particular rules should be noted in the country specific Q&A’s. 

  
 23 

 Option – a conditional right granted under the Plan to purchase one share of Common Stock in the
future at a set price within a set time period specified by the Compensation Committee at the Grant Date. 
 Participant – any
employee of a member of the Company Group who holds an outstanding Award granted under the Plan. 
 Plan – the Prudential Financial,
Inc. Omnibus Incentive Plan, a stock-based compensation plan adopted by the Board and ratified by the shareholders of Prudential in June 2003. 

Performance Share – a right to receive a share of Common Stock, conditioned and subject to adjustment upon the achievement of specified
performance goals during the applicable performance period, and further subject to satisfaction of the applicable continued service requirements. 
 Performance Unit – a right to receive cash valued by reference to a share of Common Stock, conditioned and subject to adjustment upon the achievement of specified performance goals during the
applicable performance period, and further subject to satisfaction of the applicable continued service requirements. 
 PS/PU Payment
Date – the date on which the continuing service requirement applicable to a Performance Share or a Performance Unit is scheduled to lapse, as specified by the Compensation Committee at the Grant Date, which is in the month of February
immediately following the end of the applicable Performance Cycle. 
 Prudential – Prudential Financial, Inc., a New Jersey
corporation, and any successor to Prudential Financial, Inc. 
 Release – a Separation Agreement and General Release (in connection
with an involuntary termination of employment for any reason other than Cause) or a General Release of Claims (in connection with a voluntary termination of employment), whichever is appropriate, in a form and with terms and conditions (including
but not limited to, non-solicitation of employees and business of any member of the Company Group) satisfactory to Prudential. 
 Restricted
Stock Unit – a conditional right (which is subject to forfeiture and transfer restrictions) granted under the Plan to receive one share of Common Stock at the end of a period of time specified by the Compensation Committee at the Grant
Date. 
 RSU Payment Date – the date on which the continuing service requirement applicable to a Restricted Stock Unit is scheduled
to lapse, as specified by the Compensation Committee at the Grant Date, which is the third anniversary of the Grant Date. 
 Vest –
when an Option can be exercised, or a Participant is entitled to receive (i) Common Stock under a Restricted Stock Unit, (ii) Common Stock under a Performance Share, (iii) cash under a Performance Unit, or (iv) cash under a Book
Value Unit, as appropriate, and “Vested” and “Vesting” will be construed accordingly. 

  
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 SCHEDULE 2 
 COUNTRY SPECIFIC VARIATIONS 
 DATA PROTECTION (Applicable to all countries other than
the United States) 
 A Participant agrees by accepting an Award to permit Prudential to process personal data and sensitive personal data
about the Participant in connection with the Plan. Such data includes, but is not limited to, the information provided in the Participant’s grant documents and any changes thereto, other appropriate personal and financial data, and information
about the Participant’s participation in the Plan and shares granted under the Plan from time to time (collectively, Personal Data). A Participant consents to Prudential processing and transferring any Personal Data outside the country
in which the Participant works or is employed to the United States and any other third countries. The legal persons for whom Personal Data is intended include Prudential and any of its subsidiaries, any plan administrator selected by Prudential from
time to time, and any other person or entity that Prudential involves in the administration of the Plan. Prudential will take all reasonable measures to keep Personal Data, confidential and accurate. A Participant can access and correct their
Personal Data by contacting their human resources representative. A Participant understands and agrees that the transfer of information is important to the administration of the Plan and failure to consent to the transmission of that information may
limit their ability to participate in the Plan. 
 JAPAN 
 The following term will also apply: 
 If a Participant is an executive officer subject to the
reporting requirements under Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended (Executive Officers), or has otherwise been identified as a senior officer subject to the Share Ownership Guidelines as amended by the
Board from time to time (Guidelines), then the Participant agrees to retain ownership of 50% of the net shares of Common Stock (after payment of the Grant Price, if any, and applicable fees and taxes) acquired on exercise of an Option or the
vesting of an Award until the first anniversary of the acquisition of that Common Stock. For senior officers who are not Executive Officers; these guidelines will cease to apply once the Participant has satisfied the Guidelines or, if earlier, upon
termination of the senior officer’s employment. Once the Participant has satisfied this holding period, the Participant may dispense of any shares of Common Stock held in excess of the Guidelines, subject to the Personal Securities Trading
Policy, including the “Reporting Responsibilities and Procedures for Section 16 Officers and Directors and Control Persons of Prudential” as then in effect. 
 UNITED STATES 
 Stock Options – for executives subject to the reporting requirements
under Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended, section 2 of Part C will not apply to executives but the following will apply. 
 “An Option may be exercised by the Participant: 
  

	 	(i)	paying in cash the Grant Price and any applicable taxes and fees (Cash Exercise); or 

 

	 	(ii)	directing the immediate sale of sufficient shares of Common Stock acquired on exercise necessary to pay the Grant Price and any applicable taxes and fees and receive
the remaining shares of Common Stock (Sell to Cover).” 

  
 25 

 The following term will also apply: 
 If a Participant is an executive officer subject to the reporting requirements under Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended (Executive Officers), or has
otherwise been identified as a senior officer subject to the Share Ownership Guidelines as amended by the Board from time to time (Guidelines), then the Participant agrees to retain ownership of 50% of the net shares of Common Stock (after
payment of the Grant Price, if any, and applicable fees and taxes) acquired on exercise of an Option or the vesting of an Award until the first anniversary of the acquisition of that Common Stock. For senior officers who are not Executive Officers,
these guidelines will cease to apply once the Participant has satisfied the Guidelines or, if earlier, upon termination of the senior officer’s employment. Once the Participant has satisfied this holding period, the Participant may dispense of
any shares of Common Stock held in excess of the Guidelines, subject to the Personal Securities Trading Policy, including the “Reporting Responsibilities and Procedures for Section 16 Officers and Directors and Control Persons of
Prudential” as then in effect. 
 All Restricted Stock Units, Book Value Units, Performance Shares or Performance Units granted under the
2012 Long-Term Program to a Participant who is a covered employee under Code Section 162(m) are subject to the additional requirement that the maximum aggregate amount payable to such a Participant in respect of such Awards may not exceed
six-tenths of one percent (0.6%) of Adjusted Operating Income (as defined in the Plan) for the most recently reported year ending December 31st before the year payment is made in respect of such Awards. Notwithstanding any provision in these
Terms to the contrary, if a Participant is a “covered employee” within the meaning of Code Section 162(m), any pro-rated payment the Participant would otherwise be entitled to receive under and subject to the otherwise applicable
conditions set forth herein in connection with (i) an Approved Retirement or (ii) an Involuntary Termination other than for Cause, Approved Retirement, death or Disability, will nonetheless be subject to the satisfaction of the condition
set forth in the immediately preceding sentence, and in addition payment in respect of any Award on account of any Involuntary Termination described in subclause (ii) will not be made until after the close of the calendar year in which such
Involuntary Termination of Employment occurs (but not later than March 15 of such subsequent calendar year). 

  
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 SCHEDULE 3 
 FORM FOR DECLINING AN AWARD 
 If you wish to decline the grant of the Restricted Stock
Units, the Options, the Performance Shares, the Performance Units, or the Book Value Units, as applicable, granted to you pursuant to the 2012 Long-Term Incentive Program under the Prudential Financial, Inc. Omnibus Incentive Plan you should
complete and return this form by facsimile on or before the date three weeks after the Grant Date to Stock Plan Administration c/o Carol Hesse at (973)367-8251 or by certified mail with return receipt, postmarked on or before the date three weeks
after the Grant Date to Stock Plan Administration c/o Carol Hesse, 751 Broad Street, 18th Floor, Newark, New Jersey 07102. Please note that if you decline the grant of an Award, that Award (including, but not limited to, any rights, payments,
interests or benefits you have or may have under, related to or associated with, that Award) will be cancelled and terminated immediately. 
 I,
                                        , hereby
decline the grant of: 
  

			
	 	  	Check as appropriate
		
	 (i)       all of the Restricted Stock Units;
	  	 ̈
		
	 (ii)      all of the Options:
	  	 ̈
		
	 (iii)     all of the Performance Shares;
	  	 ̈
		
	 (iv)     all of the Performance Units: and/or
	  	 ̈
		
	 (iii)     all of the Book Value Units
	  	 ̈

 granted to me in
                     2012 under the terms of the Prudential Financial, Inc. Omnibus Incentive Plan. 

 

			
	Signed	 	  

		
	Dated	 	  

  
 27

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