Document:

<PAGE>

                                                                 Execution Copy

                SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This Second Amended and Restated Employment Agreement (the "Agreement") is
dated the 13th day of May, 2005 (the "Effective Date") by and between
Tekni-Plex, Inc., a Delaware corporation (the "Employer"), having its principal
offices at 201 Industrial Parkway, Somerville, NJ 08876, and F. Patrick Smith,
an individual (the "Executive"), residing at 8601 Riviera Court, Tour 18, Flower
Mound, TX 75022.

                              W I T N E S S E T H:

     WHEREAS, the Executive has been continuously employed by the Employer since
March 18, 1994 and the Executive and the Employer desire that the Executive
continue in his role as the Chairman of the Board of Directors and Chief
Executive Officer of Employer, upon the terms and conditions herein set forth;

     WHEREAS, on January 30, 1997 the Employer and Executive entered into an
employment agreement which superceded and replaced in its entirety the prior
employment agreement between the Employer and the Executive dated March 18, 1994
(as amended, the "Prior Agreement");

     WHEREAS, on March 2, 1998 the Employer and the Executive entered into
Amendment Number 1 to the employment agreement dated as of January 30, 1997 (as
amended, the "Original Agreement");

     WHEREAS, on June 21, 2000 the Employer and the Executive entered into an
amended and restated employment agreement amending the terms of and restating
the prior Original Agreement (as amended, the "Amended and Restated Original
Agreement") in connection with the recapitalization of the Employer pursuant to
the Recapitalization Agreement dated as of April 12, 2000 among the Employer and
other parties thereto; and

     WHEREAS, in connection with the issuance by the Employer of Series A
Preferred Stock under the Series A Preferred Stock Purchase Agreement dated May
13, 2005, the Employer and Executive each desires to amend the terms of and
restate the existing Amended and Restated Original Agreement;

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants contained in this Agreement, the Employer and the Executive, intending
to be legally bound, hereby agree as follows:

     1. Employment. Subject to the terms and conditions hereinafter set forth,
the Employer hereby employs the Executive as Chairman of the Board of Directors
and Chief Executive Officer of Employer, and the Executive hereby accepts such
employment.

     2. Term. The term of employment of the Executive by the Employer commenced
on March 18, 1994 pursuant to the Prior Agreement, which was superceded and
replaced by the Original Agreement effective January 30, 1997, the Amended and
Restated Original Agreement effective June 21, 2000 and by this Agreement on the
date hereof. The term of employment (the "Employment Term") pursuant to this
Agreement shall terminate upon the earlier of (a) two

<PAGE>

years from the date hereof, or (b) the date on which the employment of the
Executive is terminated pursuant to Section 9 hereof. The Employment Term will
not be extended beyond two years from the date hereof unless agreed to in
writing by the parties hereto.

     3. Duties. During the Employment Term, the Executive shall devote such time
as necessary to discharge his duties and responsibilities as Chairman of the
Board of Directors and Chief Executive Officer of the Employer and shall possess
all rights and authorities as have been exercised previously under the Prior
Agreement, such duties and authorities not to be diminished. In addition to the
foregoing, the Executive shall hold, without additional compensation therefor,
such other offices, directorships or memberships of committees of the Employer
and/or any subsidiary or affiliate of the Employer, as the Board of Directors
may reasonably request, and to which, from time to time, during the Employment
Term, the Executive may be elected or appointed.

     4. Salary Compensation. In consideration of the services to be rendered by
the Executive as described in Section 3 above, the Employer shall pay or cause
to be paid to the Executive during the Employment Term, and the Executive shall
accept, compensation at the rate of four million ($4,000,000.00) dollars per
annum (the "Salary"). The Salary shall be payable in equal installments in
accordance with the usual payroll practices of Employer which are in effect from
time to time during the Employment Term, but in no event less frequently than
monthly. The Executive's Salary shall be subject to all applicable withholding
and other taxes.

     5. Bonus Compensation. Bonuses may be awarded solely at the discretion of
the Board of Directors of the Employer with the affirmative consent of a
director designated by Weston Presidio (the "WP Designee" as defined in the
Amended and Restated Certificate of Incorporation).

     6. Employment Benefits. During the Employment Term, the Executive shall be
entitled, in addition to the benefits generally available to other executive
officers of Employer, to the following employment benefits at Employer's cost:

          (a) Four weeks paid vacation for each year of the Employment Term and
     sick leave in accordance with the Employer's policies from time to time in
     effect for executive officers of the Employer;

          (b) Participation in a reasonable medical and hospitalization plan,
     but in no event providing lesser benefits than those in effect at March 18,
     1994, and applicable to its executive officers generally;

          (c) A long-term disability policy (non-Employer policy naming
     Executive as beneficiary and owner) providing for benefits in the amount of
     50% of Executive's Base Salary to age 65, and Executive's compensation
     shall be grossed-up annually to cover any additional taxes resulting from
     the annual premium paid for such policy by the Employer and treated as
     compensation to the Executive;

          (d) Participation, subject to classification requirements and
     continued maintenance thereof by Employer, in other employee benefit plans,
     such as profit

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     sharing plans, which are from time to time applicable to the Employer's
     executive officers generally;

          (e) In the event Executive is relocated, a temporary monthly living
     allowance until Executive is permanently relocated to cover reasonable
     living and travel expenses in connection with maintenance of a temporary
     residence, reimbursement, upon presentation of appropriate receipts, of all
     reasonable moving expenses, brokerage commissions and closing expenses
     related to the sale of his current residence and the purchase of his new
     residence, and, following such relocation, provided Executive's current
     home remains unrented and a good faith effort is being made to sell
     Executive's current residence, Employer shall reimburse Executive for the
     cost of interest on mortgages (not to exceed current levels of debt) and
     real estate taxes for a period not to exceed twelve months;

          (f) A leased automobile, including insurance and maintenance therefor;

          (g) Tax return preparation and reasonable financial planning services;

          (h) A $1 million term life insurance policy on the Executive's life
     for a beneficiary selected by him; and

          (i) The reasonable cost of a country club membership (and dues).

     7. Expenses. During the Employment Term, the Employer will reimburse the
Executive, upon presentation of appropriate receipts, for all travel,
entertainment and other out-of-pocket expenses which are reasonably incurred by
the Executive in the performance of his duties hereunder.

     8. Insurance. The Executive agrees to cooperate with the Employer in
obtaining any insurance on the life or on the disability of the Executive which
the Employer may reasonably desire to obtain at its cost for its own benefit and
shall undergo reasonable physical and other examinations for this sole purpose,
and shall execute any consents or applications which the Employer may reasonably
request in connection with the issuance of one or more of such insurance
policies.

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     9. Termination.

          (a) Executive's employment under this Agreement may be terminated
     without further liability by Employer at any time for "Cause." For purposes
     of this Agreement, Cause is defined as (i) Executive's willful refusal,
     after 30 days' prior written notice by Employer (such notice detailing with
     specificity the nature of such breach and the steps required to satisfy
     Employer that such breach will be cured), to begin to take such steps to
     cure any continuing material breach hereof or (ii) a final non-appealable
     adjudication in a criminal or civil proceeding that Executive has committed
     a fraud or felony relating to his employment.

          (b) In addition to life insurance benefits which will be payable in
     lump sum, in the event of Executive's death during the Employment Term, the
     Employer will pay a severance benefit (the "Severance Benefit"), as defined
     below, to Executive's designated beneficiary (or, failing such designation,
     to his estate) payable in 12 equal monthly installments. The Severance
     Benefit shall consist of an amount equal to the then current annual Salary,
     any bonus amounts awarded pursuant to Section 5 but not yet paid, and any
     other accrued benefits if due and payable at the time of Executive's death.

          (c) In the event of Executive's disability or incapacity which renders
     him unable to perform his duties for a period in excess of 120 consecutive
     days or a total of more than 180 days in any 12-month period, the Employer
     may terminate this Agreement. Upon termination under this Section 9(c),
     Employer will pay Executive the Severance Benefit as defined above. In
     addition, Employer will cause ownership of all insurance policies on
     Executive's life to be transferred to Executive.

          (d) If, at any time during the Employment Term, the Executive resigns
     from the employ of the Employer for any reason other than Employer's
     failure to meet its obligations hereunder, Employer and Executive shall
     have no further obligations hereunder after such resignation date other
     than the payment of amounts accrued and unpaid under Sections 4, 5, 6 and 7
     hereof through such resignation date, and continuing obligations under
     Sections 10 and 11 hereof.

     10. Restrictive Covenant. Without the prior written consent of the Board of
Directors of Employer including the WP Designee, such consent not to be
unreasonably withheld, Executive agrees that he will not for a period of one
year following the termination by Executive of his employment with Employer
whether before or after the expiration of the Employment Term (or to such lesser
extent and for such lesser period as may be deemed enforceable by a court of
competent jurisdiction, it being the intention of the parties that this Section
10 shall be so enforced): (i) directly or indirectly engage, in the United
States, in any business in competition with the primary business conducted by
Employer, either as employee, independent contractor, owner, partner, lender or
stockholder, at the time of termination of the Executive (provided that the
foregoing shall not be construed to prohibit ownership of less than 5% of the
outstanding shares of any public corporation); (ii) solicit, canvass, or accept
any business for any other competing company, or business similar to any
business of Employer, from any past, present or future ("future," as used
herein, shall mean at or prior to the time of termination of employment)
customer of Employer; (iii) directly or indirectly induce or attempt

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<PAGE>

to influence any employee of Employer to terminate his employment; or (iv)
directly or indirectly request any present or future (as defined above) entities
with whom Employer has significant business relationships to curtail or cancel
their business with Employer. In addition and without limiting the foregoing,
upon the termination of the Executive's employment by the Employer for any
reason, whether before or after the expiration of the Employment Term, Executive
shall not (x) at any time directly or indirectly disclose to any person, firm or
corporation any trade, technical or technological secrets, or (y) for a period
of one year following termination disclose any details of organization or
business affairs, or any names of past, present or future (as defined above)
customers of Employer. For purposes of this Section 10, the term "Employer"
shall be deemed to include Employer and all of its subsidiary corporations.

     11. Inventions. All inventions, discoveries, improvements, processes,
formulae and data relating to Employer's business that Executive may make,
conceive or learn during the employment of the Executive with the Employer
(during the term of this Agreement, whether during working hours or otherwise)
and relating to the Employer's lines of business shall be the exclusive property
of Employer. Executive agrees to make prompt disclosure to the Board of
Directors of Employer of all such inventions, etc., and to do at Employer's
expense all lawful things necessary or useful to assist Employer in securing
their full enjoyment and protection. In the event of any breach or threatened
breach of the provisions of this Section 11 or the preceding Section 10,
Employer may apply to any court of competent jurisdiction to enjoin such breach.
Any such remedy shall be in addition to Employer's remedies at law under such
circumstances.

     12. Conflicting Agreements. Each of the parties hereby represents and
warrants to the other that (a) neither the execution of this Agreement by such
party nor the performance by such party of any of its obligations or duties
hereunder will conflict with or violate or constitute a breach of the terms of
any other agreement to which such party is a party or by which it is bound, and
(b) such party is not required to obtain the consent of any person, firm,
corporation or other entity in order to enter into this Agreement or to perform
any of his obligations or duties hereunder.

     13. Notices. Any notice, request, information or other document to be given
under this Agreement to any party by any other party shall be in writing and
delivered personally, sent by registered or certified mail, postage prepaid,
delivered by a nationally recognized overnight courier service, or transmitted
by facsimile machine followed by delivery of original documents by a nationally
recognized overnight courier service addressed as follows:

          If to Employer:

               Tekni-Plex, Inc.
               201 Industrial Parkway
               Somerville, NJ  08876
               Attention: Michael F. Cronin
               Facsimile No.: (908) 722-4736

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<PAGE>

          with copies to:

               Davis Polk & Wardwell
               450 Lexington Avenue
               New York, NY 10017
               Attention: Phillip R. Mills, Esq.
               Facsimile No.: (212) 450-4800

          and

               Ropes & Gray LLP
               One International Place
               Boston, MA 02110
               Attention: Thomas B. Draper, Esq.
               Facsimile No.: (617) 951-7050

          If to the Executive:

               F. Patrick Smith
               at his then current address
               included in the employment records of the Employer

          with a copy to:

               David L. Keligian, Esq.
               The Busch Firm P.C.
               2532 Dupont Drive
               Irvine, CA 92612-1254
               Facsimile No.: (714) 474-7732

or to such other address as a party hereto may hereafter designate in writing to
the other party, provided that any notice of a change of address shall become
effective only upon receipt thereof.

     14. Assignment; Successors and Assigns. This Agreement may not be assigned
by either party. This Agreement shall be binding upon and shall inure to the
benefit of the Employer and the Executive and their respective heirs, legal
representatives, successors and assigns.

     15. Entire Agreement. This Agreement contains the entire understanding
between the Employer and the Executive with respect to the employment of the
Executive and supersedes all prior negotiations and understandings (including
the Prior Agreement and the Amended and Restated Original Agreement) between the
Employer and the Executive with respect to the employment of the Executive by
the Employer. This Agreement may not be amended or modified except by a written
instrument signed by both the Employer and the Executive.

     16. Severability. In the event any one or more provisions of this Agreement
is held to be invalid or unenforceable, such illegality or unenforceability
shall not affect the validity or enforceability of the other provisions hereof
and such other provisions shall remain in full force and effect, unaffected by
such invalidity or unenforceability.

                                     - 6 -
<PAGE>

     17. Construction. The parties hereto acknowledge and agree that: (i) each
party and its counsel reviewed and negotiated the terms and provisions of this
Agreement and have contributed to its revision; (ii) the rule of construction to
the effect that any ambiguities are resolved against the drafting party shall
not be employed in the interpretation of this Agreement; and (iii) the terms and
provisions of this Agreement shall be construed fairly as to all parties hereto
and not in favor of or against any party, regardless of which party was
generally responsible for the preparation of this Agreement.

     18. Applicable Law; Submission to Jurisdiction; Litigation Expenses. This
Agreement and the rights, obligations and relations of the parties hereto shall
be governed by and construed and enforced in accordance with the laws of the
State of New York without giving effect to the principles of conflicts of law
thereof.

     The parties hereto (i) submit for themselves, and any legal action or
proceeding relating to this Agreement or for recognition and enforcement of any
judgment in respect hereof, to the exclusive jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any therefor, (ii) consent that
any action or proceeding shall be brought in such courts, and waive any
objection that each may now or hereafter have to the venue of any such action or
proceeding in any such court, (iii) agree that service of process of any such
action or proceeding may be effected by certified mail (or any substantially
similar form of mail), postage prepaid, to the appropriate party at its address
as set forth herein, and service made shall be deemed to be completed upon the
earlier of actual receipt or five (5) days after the same shall have been posted
as aforesaid, and (iv) agree that nothing herein shall affect the right to
effect service of process in any other manner permitted by law.

     The prevailing party in any litigation relating to this Agreement shall be
entitled to recover reasonable professional fees, including attorneys' fees and
litigation expenses relating to such dispute.

     19. Headings. The headings of sections and subsections of this Agreement
are for convenience of reference only and are not to be considered in construing
this Agreement.

     20. Execution in Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which,
when taken together, shall constitute one and the same instrument.

                                     - 7 -
<PAGE>

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

                                     Tekni-Plex, Inc.

                                     By:  /s/ James E. Condon
                                          ---------------------------------
                                          Name:  James E. Condon
                                          Title: Secretary

                                     Executive:

                                          /s/ F. Patrick Smith
                                          ---------------------------------
                                          F. Patrick SmithEXHIBIT 4.3

 

 

THE RULES OF THE ING GROUP

LONG TERM EQUITY OWNERSHIP PLAN

 

Adopted by the Executive Board of ING Groep NV

 

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 1: DEFINITIONS

In the Rules of this Plan, unless the context otherwise requires, the following words and
expressions shall have the meanings set out below:

	 	 	 
	Acquiring Company

	 	any company which obtains Control of the Company or
substantially the whole of the business of the Company;
	 
	 	 
	Acquiring Person

	 	any person, not being an Acquiring Company, who:

	 	(a)  	either alone
or together with any person acting in concert with him
has obtained Control of the Company; or
	 
	 	(b)  	having
Control of the Company, makes a general offer to
acquire the whole of the issued Ordinary Share Capital
(other than that which is already owned by him and/or
by any person acting in concert with him);

	 	 	 
	Adoption Date

	 	the date on which this Plan is adopted by the Executive Board;
	 
	 	 
	Appropriate Period

	 	in relation to an Acquiring Company or an
Acquiring Person, the period of six months
beginning at the time the Acquiring Company or
Acquiring Person obtains Control of the Company;
	 
	 	 
	Award

	 	the award of a Performance Share or the award of a
Performance Share Unit;
	 
	 	 
	BDRs

	 	Bearer Depository Receipts issued in respect of
the fully paid Ordinary Share Capital of the
Company;
	 
	 	 
	Business Conditions

	 	any situation in which the termination of a
Participant’s employment is caused by economic
considerations and is not based primarily on the
Participant’s individual performance;

(2)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	 	 
	Cessation of Employment

	 	the official date of termination of employment,
not being the date on which notice of termination
of employment is given, as included in the
company’s administrative systems and as
communicated, where applicable, to tax and other
government authorities;
	 
	 	 
	the Company

	 	ING Groep NV, having its registered seat at
Amsterdam, The Netherlands, registered with the
Chamber of Commerce (Kamer van Koophandel) of
Amsterdam under registration number 33231073;
	 
	 	 
	Control

	 	where any person or a group of persons acting in
concert has acquired 50.1% of the voting stock of
the Company other than solely as a consequence of
the cancellation of BDRs and such persons have
received a declaration from the regulatory
authorities that there is no objection to their
exercising the voting rights attached to such
stock;
	 
	 	 
	Date of Award

	 	the date on which an Award is made to a
Participant, which shall be the date specified on
the leo Agreement;
	 
	 	 
	Date of Grant

	 	the date on which a Grant is made to a
Participant, which shall be the date specified on
the leo Agreement;
	 
	 	 
	Early Vesting Payout

	 	the payment calculated by reference to the last
performance measure applied preceding the date of
Cessation of Employment, reduced by a factor
reflecting the period in which the Participant is
employed within the Group during the performance
cycle. This factor is calculated by dividing the
period of employment during the performance cycle
in terms of months by the total performance cycle,
also in terms of months;
	 
	 	 
	Employee

	 	Either:

	 	(i)  	an employee
of a Group Company; or
	 
	 	(ii)  	a director
(other than a non-executive director) of a Group
Company other than the Company;

(3)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	 	 
	Executive Board

	 	the board of directors of the Company;
	 
	 	 
	Expiration Date

	 	the last day of the Option Period, being the last day on which the Option can be exercised, as
determined by the Grantor and as specified in the leo Agreement;
	 
	 	 
	Fair Market Value

	 	in the case of Plan Shares which are BDRs, the first trading price of a BDR on the Stock Exchange as
reported by Bloomberg or any such other appropriate source on the Date of Grant and if, on any such
date no such price exists, the first trading price of a BDR on the Stock Exchange as reported by
Bloomberg or any such other appropriate source on the nearest preceding day on which such a price
exists;
	 
	 	 
	Grant

	 	the grant of an Option under the terms of this Plan;
	 
	 	 
	Grantor

	 	the Company or any Group Company, as may be amended from time to time;
	 
	 	 
	Group

	 	the Company and its Subsidiaries as amended from time to time and the expression “member of the Group”
shall be construed in accordance with Dutch law;
	 
	 	 
	Group Company

	 	the Company and any company which is for the time being a Subsidiary over which the Company has Control
and which has been nominated by the Executive Board for participation for the time being in this Plan;
	 
	 	 
	leo

	 	this long term equity ownership plan, as amended from time to time;
	 
	 	 
	leo Agreement

	 	the agreement in respect of a Grant made to an Employee in accordance with Rule 9 and/or an Award
effected to an Employee in accordance with Rule 11;

(4)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	 	 
	leo Committee

	 	such person or committee of persons and successor person or committee of
persons appointed by the Executive Board to whom the Executive Board has delegated such of its
powers in relation to this Plan as it may determine and this definition should include any
duly appointed agent or delegate of the leo Committee;
	 
	 	 
	Option

	 	a right to acquire Plan Shares at the Strike Price granted to a Participant under the provisions of this Plan;
	 
	 	 
	Option Period:

	 	the period in which the Option remains valid and can be exercised, beginning on the Date of
Grant and ending on the Expiration Date, as determined by the Executive Board and specified in the leo Agreement;
	 
	 	 
	Ordinary Share Capital

	 	the issued fully paid-up shares in the capital of the Company;
	 
	 	 
	Participant

	 	an Employee to whom an Option has been granted and/or an Award has been made under the terms
of this Plan;
	 
	 	 
	Performance Share

	 	a right to receive Plan Shares at the Vesting Date where such right is conditional upon
the attainment of the Performance Target;
	 
	 	 
	Performance Share Unit

	 	a right to receive payment in the form of cash at the Vesting Date where such right is conditional upon the
attainment of the Performance Target;
	 
	 	 
	Performance Target

	 	the target, set at the Date of Award, that should be attained in order to determine the level of payment as a
result of the Vesting of Awards; for the first Awards effected under this Plan in 2004, this Performance Target is determined by
reference to a relative Total Shareholder Return (“RTSR”) measure;

(5)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	 	 
	Plan

	 	the ING Long term Equity Ownership plan, otherwise known as leo, in its present
form or as from time to time amended in accordance with the provisions hereof;
	 
	 	 
	Plan Shares

	 	BDRs, or American Depositary Receipts or other instruments in respect thereof, as
determined at the Date of Grant or the Date of Award by the Grantor and all references to Plan Shares in
this Plan shall be construed accordingly;
	 
	 	 
	Purchase Price:

	 	at any specified time, the Strike Price of an Option to purchase one (1) Plan Share
multiplied by the number of Plan Shares subject to such Option being exercised;
	 
	 	 
	Redundancy

	 	termination of a Participant’s employment within the Group due to a reorganisation of the
Group in such circumstances that the Executive Board determines in its absolute discretion;
	 
	 	 
	Release

	 	the transfer of Plan Shares to a Participant and “Release” and “Released” shall be construed
and interpreted accordingly;
	 
	 	 
	Rules

	 	the rules for the time being governing the Plan;
	 
	 	 
	Stock Exchange

	 	the stock exchange of Euronext Amsterdam NV;
	 
	 	 
	Strike Price

	 	the price per Plan Share at which an Option may be exercised, which shall be the Fair
Market Value of one (1) share on the Date of Grant, unless determined otherwise by the Executive Board and
specified in the leo Agreement;
	 
	 	 
	Subsidiary

	 	a company in which the Company holds at least 50,1% of the voting share capital, as set out
in Article 2:24a of the Dutch Civil Code;
	 
	 	 
	Supervisory Board

	 	the Board of Supervisory Board Directors of the Company or a duly authorised committee thereof;

(6)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	 	 
	Target Payout

	 	a payment made to a Participant during the Appropriate Period, as defined in Rule 14.2,
where the level of payment is not dependent on, or calculated by reference to, the attainment of the
Performance Target;
	 
	 	 
	Total and Permanent
Disability:

	 	the mental or physical disability, whether occupational or non-occupational in cause, which
satisfies such definition in: (i) any insurance policy or plan provided to the Participant by the Company
or a Group Company; or alternatively (ii) the Participant’s applicable national legislation pertaining to
persons with disability;
	 
	 	 
	Vesting

	 	the satisfaction of the requirements of Rules 9 and 11 as appropriate, and “Vested” and
“Vest” shall be construed accordingly; and
	 
	 	 
	Vesting Date

	 	the date on which an Award or an Option shall Vest, as determined by the Executive Board
and as specified in the leo Agreement, where the context so requires and admits, the date upon
which vesting takes place pursuant to Rule 9 or Rule 11.

RULE 2: INTERPRETATION

Words or expressions used in the Plan shall where appropriate:

	(i)  	when denoting the masculine gender include the feminine and vice versa;

	 
	(ii)  	when denoting the singular include the plural and vice versa;
	 
	(iii)  	when referring to any enactment be construed as a reference to that enactment as for the
time being consolidated, amended, re-enacted or replaced and shall include any regulations
made thereunder;
	 
	(iv)  	when referring to the Rules be taken to refer to the Rules of this Plan;
	 
	(v)  	when a period of time is specified and starts from a given day or the day of an act or event,
be calculated exclusive of that day;
	 
	(vi)  	be construed such that the headings and sub-headings are for ease of reference only, and do
not affect the interpretation of any Rule;

(7)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	(vii)  	when referring to any enactment or regulations under Dutch law be construed at the
discretion of the Executive Board as a reference to other applicable laws or regulations of
any other country (or region of a country); and
	 
	(viii)  	references to tax and/or social security contributions and/or withholding taxes shall for
the avoidance of doubt include The Netherlands and any other jurisdiction to which an Employee
to whom a Grant and/or an Award is made may be subject.

RULE 3: LAPSE OF OPTIONS/AWARDS

Where under any of the provisions of these Rules it is provided that an Option or an Award shall
lapse, that lapsed Option or Award shall cease to confer any rights whatsoever on the Participant
notwithstanding any other provisions of these Rules.

RULE 4: AVAILABILITY OF PLAN SHARES

The Company shall at all times keep available sufficient authorised and unissued Plan Shares or
shall procure that sufficient Plan Shares are available for transfer to satisfy:

	(i)  	the exercise to the full extent possible of all Options which have neither lapsed nor been
fully exercised taking account of any other obligations of the Company to provide shares of
the same class as Plan Shares; and

	(ii)  	the Release to the full extent possible of all Awards which have neither lapsed nor been
fully Released taking account of any other obligations of the Company to procure the provision
of Plan Shares.

RULE 5: POWERS OF THE EXECUTIVE BOARD

	5.1  	The Plan shall be administered by the Executive Board. The Executive Board shall have such
powers and authority delegated to it as set out in the Plan.
	 
	5.2  	On behalf of the Grantor and following consultation with the Supervisory Board, the Executive
Board shall have the exclusive authority and complete discretion to:

	 	(i)  	decide, on an annual basis, whether or not to effect a Grant and/or an Award
to Employees and decide what percentage of the Ordinary Share Capital will be used to
give effect to such annual Grant/Award;
	 
	 	(ii)  	make a Grant and/or an Award to Employees;
	 
	 	(iii)  	determine the format, terms and conditions of any leo Agreement;

(8)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	(iv)  	determine, for each Award effected, that the Performance Target attaching to
such an Award has been met;
	 
	 	(v)  	construe and interpret the Plan, any leo Agreement and any other
agreement or document executed pursuant to the Plan;
	 
	 	(vi)  	authorise any person to execute on behalf of the Company, any instrument
required to effectuate a Grant and/or an Award; and
	 
	 	(vii)  	make all other determinations deemed necessary or desirable for the
administration of the Plan.

	5.3  	The Executive Board shall determine as soon as practicable after the Adoption Date if, how
and to what extent any of its powers shall be delegated to the leo Committee. The
Executive Board shall provide the leo Committee with written guidelines to this
effect, notwithstanding the authority of the Executive Board to amend or withdraw any such
delegation of powers at any time.

	5.4  	The Executive Board’s interpretation and construction of any provision of the Plan, of any
Grant and/or Award effected under the Plan or of any leo Agreement shall be final
and binding on all persons claiming an interest in a Grant and/or an Award effected under the
Plan. The Executive Board shall not be liable for any action or determination made in good
faith with respect to the Plan.

RULE 6: PARTICIPATION IN THE PLAN

	6.1  	Employees may become Participants of the Plan.
	 
	6.2  	The Executive Board shall have complete discretion to select Employees as Participants.

RULE 7: NON-TRANSFERABILITY OF OPTIONS AND AWARD

Save as provided in Rules 9.8 and 11.7, no Option and no Award nor any right there under
(conditional or otherwise) shall be capable of being transferred, assigned, charged, pledged or
encumbered and any attempt to do so by a Participant will cause such Option and/or Award to lapse
with immediate effect. In addition, a Participant’s rights under this Plan are not subject, in any
manner, to alienation, sale, transfer, pledge, attachment or garnishment by creditors of the
Participant or by the beneficiaries of the Participant.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 8: VARIATION OF CAPITAL AND ADJUSTMENT OF OPTIONS AND AWARDS

	8.1  	In the event of any capitalisation issue (other than a capitalisation issue in substitution
for, or as an alternative to, a cash dividend) or rights issue or rights offer or any
reduction, sub-division, consolidation or other variation of the capital of the Company
affecting the number of BDRs in issue (including any change in the currency in which Plan
Shares are denominated):

	 	(i)  	the number of Plan Shares comprised in any Option over Plan Shares in the
Company and/or the Strike Price; and
	 
	 	(ii)  	the number of Plan Shares comprised in any Award

	   	may be adjusted by the Grantor (including retrospective adjustments where appropriate) in
such manner as the Grantor considers to be in its opinion fair and reasonable.
	 
	8.2  	Except in the case of an Option over Plan Shares already in issue, no adjustment shall be
made which would cause the Strike Price to be less than the nominal value of that Plan Share.
	 
	8.3  	Notice of any adjustment shall be given to those Participants affected by such adjustment by
the Grantor who may call in leo Agreements for endorsement, cancellation or
re-issue subsequent upon such adjustment.

RULE 9: OPTIONS

	9.1  	Options may be granted at any time on or after the Adoption Date of this Plan.

	9.2  	Each Option shall be evidenced by a written leo Agreement concluded between the
Participant and the Grantor, setting forth the terms and conditions pertaining to such Option.
leo Agreements shall be available in each of the countries in which the Plan is operational and shall, together and concurrently with the Plan, govern the grant of Options in
accordance with local legal and regulatory requirements.

	9.3  	Such leo Agreement shall specify, inter alia, the Date of Grant, the number of
Plan Shares subject to the Option, the Strike Price, the Option Period, the Expiration Date
and all such other information as required by the terms of these Rules.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	9.4  	The Executive Board may decide when an Option becomes exercisable or Vests. Each
leo Agreement may include a schedule describing the date, event or act upon which an
Option shall Vest or become exercisable, in whole or in part, with respect to all or a
specified portion of the Plan Shares covered by such Option.
	 
	9.5  	Save as provided in Rules 9.8 to 9.10 and 14, an Option:

	 	(i)  	shall only Vest or be exercisable in such parts after the expiry of such
period or periods of time from its Date of Grant as shall be determined by the
Executive Board and as stated on the leo Agreement; and
	 
	 	(ii)  	shall not be exercisable at a time precluded by any restrictions, such as the
attainment of performance targets, set out in the leo Agreement; but
	 
	 	(iii)  	subject to Rules 9.6 and 9.7, may thereafter be exercised in whole or in
part at any time or from time to time provided that, unless the Executive Board
determines otherwise, the exercise would not be at a time when the acquisition or
disposal of Plan Shares by an Employee would be in contravention, in the opinion of
the Company’s compliance officer, of the regulations concerning inside information or
any provision which restricts certain Employees and those connected with them from
dealing in the Company’s shares when in possession of unpublished price sensitive
information.

	9.6  	Options unexercised on the Expiration Date, as specified in the leo Agreement,
shall lapse.

	9.7  	An Option may be exercised wholly or partly. In the event of partial exercise of an Option,
it must be exercised to the extent of at least 500 Plan Shares on each occasion, unless the
number of Plan Shares under Option that can be exercised is less than 500, in which case the
balance of the Option must be exercised in full.

	9.8  	If a Participant dies, his legal personal representatives (or, if appropriate, his designated
beneficiary or beneficiaries and in the event of there being no designated beneficiary or
beneficiaries, his estate) may exercise all or any of his Options in whole or in part at any
time in the period ending on the Expiration Date.
	 
	9.9  	If a Participant ceases to be employed within the Group by reason of:

	 	(i)  	injury or Total and Permanent Disability (evidenced to the satisfaction of
the Executive Board); or
	 
	 	(ii)  	early retirement by agreement of the Executive Board; or
	 
	 	(iii)  	by virtue of retirement on reaching his normal retirement age as determined
in the applicable retirement benefit programme, statutory or otherwise

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	 	   	he may, subject to Rules 9.5 to 9.7, exercise all or any of his Options in whole or in part
at any time in the period ending on the Expiration Date.

	9.10  	If a Participant ceases to be employed within the Group:

	 	(i)  	by virtue of termination of employment by the Company or a Group Company due
to Business Conditions (including, but not limited to, Redundancy) as determined by
the Executive Board in their absolute discretion; or
	 
	 	(ii)  	solely by reason of the company by which he is for the time being employed
then ceasing to be a Group Company or by reason of the transfer of the undertaking or
part of the undertaking in which the Participant is employed to a transferee which is
not a Group Company,

	   	then, he may, subject to Rules 9.5 to 9.7, exercise all or any of his Options in whole or
in part during the period ending twelve months after the date of such Cessation of
Employment or transfer as the case may be.
	 
	9.11  	If a Participant gives notice to terminate his employment such that he shall cease to be
employed within the Group for a reason not falling within Rules 9.9 to 9.10 all his Options
shall cease to be exercisable and shall lapse on the date of Cessation of Employment save that
the Executive Board may in its absolute discretion, but subject to Rules 9.5 to 9.7, prior to
the Cessation of Employment consent to the exercise of any such Option in whole or in part to
the extent determined by the Executive Board within three months after such Cessation of
Employment or such other period as may be determined by the Executive Board, provided that the
period so determined shall not exceed the maximum permitted by Rule 9.14 after such Cessation
of Employment and at the expiry of which any such Option shall, to the extent unexercised,
lapse.
	 
	9.12  	If a Participant is given notice terminating his employment, such that he shall cease to be
employed within the Group in circumstances not involving gross misconduct or activity
detrimental to the Group on his part and for a reason not falling within Rules 9.8 to 9.10 all
his Options shall cease to be exercisable and shall lapse on the date of Cessation of
Employment save that the Executive Board may in its absolute discretion, but subject to Rules
9.6 and 9.7, prior to the Cessation of Employment consent to the exercise of any such Option
in whole or in part to the extent determined by the Executive Board within three months after
such Cessation of Employment or such other period as may be determined by the Executive Board,
provided that the period so determined shall not exceed the maximum permitted by Rule 9.14
after such Cessation of Employment and at the expiry of which any such Option shall, to the
extent unexercised, lapse.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	9.13  	For the avoidance of doubt if a Participant is given notice terminating his employment in
circumstances involving gross misconduct or detrimental activity, all of his Options shall, to
the extent unexercised, lapse on the date that such notice of termination of employment is
given.
	 
	9.14  	The Executive Board may in its absolute discretion but subject to Rules 9.6 and 9.7 extend
the periods specified in Rules 9.10 to 9.12 to such longer period as it may determine. At the
expiry of the period specified in Rules 9.8 to 9.13, as the case may be or such longer period
as may have been determined under this Rule 9.14 any Options held by the Participant concerned
shall, to the extent unexercised, lapse.
	 
	9.15  	A leo Agreement may contain such other provisions as deemed desirable by the
Executive Board which do not conflict with the terms of the Plan, including without
limitation: (i) restrictions on the exercise of Options; (ii) restrictions on the disposition
of Plan Shares subject to option; (iii) submission by the Participant of such forms and
documents as the Executive Board may reasonably require; and/or (iv) procedures to facilitate
the payment of the Strike Price of an Option under any method allowable under Rule 10 and the
payment of withholding taxes in accordance with Rule 17.

RULE 10: EXERCISE OF OPTIONS

	10.1  	Exercise of an Option, or of new rights under this Plan shall be effected by a notice of
exercise in writing in a form prescribed from time to time by the Executive Board lodged with
the leo Committee specifying the number of Plan Shares in respect of which the
Option is being exercised and accompanied by payment in full of the Purchase Price.

	10.2  	Payment may be made by banker’s draft or cheque or in any other way agreed by the Executive
Board provided that if payment is made by way of cheque, if the cheque is not cleared, the
Participant shall be deemed never to have exercised his Option and the Company will be under
no obligation to provide any Plan Shares for him. Notwithstanding anything to the contrary
contained therein such notice shall (other than in the circumstances mentioned in the
immediately preceding proviso) take effect upon receipt of notice and payment in full and such
day shall constitute for all purposes the date of exercise of such Option. The Grantor shall
procure that the relevant Plan Shares in respect of the option shall be transferred (or issued
as the case may be) as soon as practicable after the date of exercise.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 11: AWARDS

	11.1  	Awards of Performance Shares and/or Performance Share Units may be made at any time on or
after the Adoption Date of this Plan.

	11.2  	Each Award shall be evidenced by a written leo Agreement concluded between the
Participant and the Grantor, setting forth the terms and conditions pertaining to such Award. leo Agreements shall be available in each of the countries in which the Plan is
operational and shall, together and concurrently with the Plan, govern the Award in accordance
with local legal and regulatory requirements.

	11.3  	A leo Agreement shall specify, inter alia, whether Performance Shares or
Performance Shares Units are being granted, the Date of Award, any conditions and limitations
which may have been imposed in accordance with Rule 11.4, the Vesting Date(s), the Release
Date(s) and all such other information as required by the terms of these Rules.

	11.4  	The Executive Board, when making an Award, may in its absolute discretion impose a
Performance Target, being conditions and limitations (additional to any conditions and
limitations contained in any other of these Rules) which must be satisfied prior to the
Vesting of such Award, provided that such additional conditions and limitations shall:

	 	(i)  	be objective, specified at the Date of Award and set out in full in the leo Agreement; and
	 
	 	(ii)  	be such that the Vesting of such an Award after the fulfilment or attainment
of any conditions and limitations so specified shall not be dependent upon the further
discretion of any person, other than the determination by the Executive Board that
such conditions or limitations have been fulfilled; and
	 
	 	(iii)  	not be capable of amendment, variation or waiver unless a change in
circumstances occurs which causes the Executive Board to consider that a waived,
varied or amended condition would be a fairer measure of performance and would not be
more difficult to satisfy than any existing additional conditions.

	11.5  	No consideration shall be payable by a Participant for an Award made in his favour.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	11.6  	Save as provided in Rules 11.7 to 11.10 and 14, an Award will Vest upon each of the Vesting
Dates stated in the leo Agreement provided that, at the applicable Vesting Date:

	 	(i)  	any Performance Target, being additional conditions and limitations imposed
on the Award in accordance with Rule 11.4 (and which have not been waived) have been
fulfilled; and
	 
	 	(ii)  	the Participant is employed by the Group at the Vesting Date.

	11.7  	If a Participant dies, all or any of his Awards shall continue to Vest upon each of the
Vesting Dates stated in the leo Agreement and the right to such Vested Awards shall
reside with his legal personal representatives (or, if appropriate, his designated beneficiary
or beneficiaries and in the event of there being no designated beneficiary or beneficiaries,
his estate).
	 
	11.8  	If a Participant ceases to be employed within the Group by reason of:

	 	(i)  	injury or Total and Permanent Disability (evidenced to the satisfaction of
the Executive Board); or
	 
	 	(ii)  	early retirement by agreement of the Executive Board; or
	 
	 	(iii)  	by virtue of retirement on reaching his normal retirement age as determined
in the applicable retirement benefit programme, statutory or otherwise

	   	all or any of his Awards shall continue to Vest upon each of the Vesting Dates stated in
the leo Agreement.
	 
	11.9  	If a Participant ceases to be employed within the Group:

	 	(i)  	by virtue of termination of employment by the Company or a Group Company due
to Business Conditions (including, but not limited to, Redundancy) as determined by
the Executive Board in its absolute discretion; or
	 
	 	(ii)  	solely by reason of the company by which he is for the time being employed
then ceasing to be a Group Company or by reason of the transfer of the undertaking or
part of the undertaking in which the Participant is employed to a transferee which is
not a Group Company,

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	   	then all or any of his Awards shall Vest one day after the date of such Cessation of
Employment such that payment as a result of such Vesting is set at the Early Vesting
Payout. In case of Rule 11.9(ii) above, Cessation of Employment is considered to have taken
place on the date of the company ceasing to be a Group Company, or the date of the transfer
of undertaking, as determined by the Executive Board in its absolute discretion.
	 
	11.10  	All Awards that Vest based on Rules 11.7, 11.8 or 11.9 shall be converted on the Vesting
Date into a right to receive a cash amount equal to the closing price per BDR on the Stock
Exchange on the Vesting Date, as reported by Bloomberg or any such other appropriate source,
multiplied by the number of Vested Plan Shares. Any such payment shall be effected as soon as
practicable following the Vesting Date.
	 
	11.11  	If a Participant ceases to be employed within the Group for any reason other than those
listed in Rules 11.7 to 11.9 and in circumstances not involving gross misconduct or
detrimental activity, all unvested Awards shall lapse on the date of Cessation of Employment.
	 
	11.12  	If a Participant is given notice terminating his employment in circumstances involving gross
misconduct or detrimental activity, all vested and unvested Awards shall lapse on the date
that such notice of termination of employment is given.
	 
	11.13  	The Executive Board shall have the power to allow Awards held by a Participant to Vest at a
date prior to the Vesting Date.
	 
	11.14  	A leo Agreement may contain such other provisions as deemed desirable by the
Executive Board which do not conflict with the terms of the Plan, including without
limitation: (i) restrictions on the disposition of any Plan Shares acquired upon Release; (ii)
submission by the Participant of such forms and documents as the Executive Board may
reasonably require; and/or (iii) procedures to facilitate the payment of withholding taxes in
accordance with Rule 17.

RULE 12: RELEASE OF PLAN SHARES

Subject to Rules 17.2 to 17.5, Release of Plan Shares to the extent that this relates to a Vested
Award shall be effected by the Grantor transferring the relevant Plan Shares, or procuring that the
relevant Plan Shares shall be transferred (or issued as the case may be) to the Participant or
other person, persons or estate mentioned in Rule 11.7 as soon as practicable following the Vesting
Date.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 13: PHANTOM OPTIONS

Subject to Rule 5, the Executive Board shall have the discretionary authority to grant Participants
a phantom Option, which shall entitle the recipient to receive a payment in cash that is calculated
by reference to the amount by which the Fair Market Value of a specified number of Plan Shares
appreciates from the Date of Grant of such right to the exercise date. All rights and obligations
of holders of Options shall apply equally to holders of phantom Options, except for provisions in
the Plan expressly relating to actual Plan Share ownership.

RULE 14: TAKEOVERS, RECONSTRUCTION, AMALGAMATION AND LIQUIDATION

	14.1  	Subject to the Company’s rules of association, required Company shareholder action and any
applicable laws, in the event of the Company’s dissolution, liquidation, sale of all or
substantially all of its assets, merger, split, consolidation or similar transaction, change
in control or share-for-share exchange or similar event as determined by the Supervisory
Board, the Executive Board shall, subject to the approval of the Supervisory Board, have the
power to:

	 	(i)  	effective immediately prior to the occurrence of such event, cancel each
outstanding Option (whether or not then exercisable); and/or
	 
	 	(ii)  	in full consideration of the cancellation referred to in subsection (i), pay
to the Participant, for each Plan Share subject to such Option, an amount in cash
equal to the excess of the value of the property (including cash) received by the
holder of a Plan Share as a result of such event over the Purchase Price; and/or
	 
	 	(iii)  	provide for the exchange of each Option outstanding immediately prior to
such event (whether or not then exercisable) with an option with respect to some or
all of the property for which Plan Shares are exchanged in such transaction and, as a
result, make any necessary equitable adjustment in the strike price of the new option,
or the number of Plan Shares or amount of property subject to the option or, as
appropriate, provide for a cash payment to the Participant to whom such Option was
granted in partial consideration for the exchange of the Option.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	14.2  	If any company becomes an Acquiring Company or any person becomes an Acquiring Person then
all subsisting Awards shall Vest such that payment as a result of such Vesting is set at the
Target Payout. The Plan Shares shall be Released (in the case of Performance Shares) or the
cash payment shall be made (in the case of Performance Share Units) within the Appropriate
Period as soon as the Supervisory Board has determined that the change of Control has occurred
in line with the provisions of this Rule 14.2 and is satisfied that the applicable
requirements of Rules 17.2 to 17.5 have been satisfied. In such case, the Executive Board,
subject to the approval of the Supervisory Board, also reserves the right to pay an amount in
cash equal to the then prevailing value of the Plan Shares subject to the Award.

	14.3  	All adjustments and/or payments described in this Rule 14 shall be made by the Executive
Board acting in good faith and shall be checked and approved by an independent advisor. Such
approval shall be conclusive and binding on all persons.

	14.4  	Except as expressly provided in this Rule 14, no Participant shall be afforded any rights by
reason of any capital or corporate reorganisation of the Company. Any grant of new or
replacement of Options and/or Awards shall not affect any Options and/or Awards previously
granted under the Plan.

	14.5  	An Award or Grant effected pursuant to the Plan shall not affect in any way the right or
power of the Company to effect any capital or corporate reorganisation.

RULE 15: LOSS OF OFFICE OR EMPLOYMENT

	15.1  	The Plan does not form part of the Participant’s employment agreement with the Company or any
Group Company, and shall not be construed to give any Participant the right to remain in the
employ of the Company or any Group Company.

	15.2  	A Grant effected or an Award made under this Plan cannot be considered a guarantee to the
Participant that the employment of the Participant with the Company or with any other Group
Company will continue.

	15.3  	Any benefits derived by the Participant under this Plan shall not be taken into account for
the purposes of determining the Participant’s contribution or entitlement to benefits under
any pension arrangement or for the purposes of determining any other claim for compensation
the Participant may have against the Company or against any other Group Company.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	15.4  	Where the employment of the Participant terminates for whatever reason, the Participant shall
not be entitled to any compensation or damages including damages following unfair dismissal,
any other form of breach of contract or any claim for compensation for the loss of employment
insofar as such compensation or damages arise or may arise from the Participant ceasing to
have rights under, or ceasing to be entitled to receive Performance Shares, to receive cash or
to exercise any Option or any phantom Option under this Plan as a result of such termination.
The Plan shall not at any time affect the rights of the Company or a Group Company to
terminate such Participant’s status as an Employee, whether with or without cause.

	15.5  	The Grant of an Option and the Award of Performance Shares or Performance Share Units shall
not entitle or preclude the Participant from participating in another Grant or another Award
under the Plan or participation in any other plan operated by the Company or Group.

RULE 16: PLAN SHARES

	16.1  	All transfers and all allotments of Plan Shares shall be subject to any necessary regulatory
consents for the time being in force and it shall be the responsibility of the Company to
comply with any requirements to be fulfilled in order to obtain or obviate the necessity for
any such consent.

	16.2  	Plan Shares transferred pursuant to the Plan will be transferred without the benefit of any
rights (including shareholder rights) attaching thereto by reference to a record date
preceding the date of exercise in the case of Options and preceding the date of Vesting in the
case of Awards. Save as regards rights attaching to Plan Shares by reference to a record date
prior to the date on which the Plan Shares are allotted and issued, Plan Shares issued upon
the exercise of Options and Plan Shares Released shall be identical and rank pari passu in all
respects with the shares in the same class then in issue.

RULE 17: TAX AND SOCIAL SECURITY

	17.1  	All applicable personal tax and employee social security levies in respect of the
implementation of the Plan shall be borne by the Participant.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	17.2  	It shall be a condition of the obligation of the Grantor, to issue or to procure the transfer
of Plan Shares to a Participant and the Participant (or in the event of his death, such
person, persons or estate mentioned in Rules 9.8 and 11.9) shall permit the Company or any
Group Company to account for an amount equal to any wage or income tax, employee’s social
security contributions liability and any other liabilities for which the Company or a Group
Company (as the case may be) has an obligation to withhold and account.

	17.3  	In order to meet its obligations, the Participant will permit the Grantor to sell, on behalf
of the Participant, sufficient Plan Shares to meet the Participant’s liabilities under Rule
17.1 above. The Company or any Group Company as the case may be may retain from the sale
proceeds an amount equal to such liability and any balance will be paid to the Participant.

	17.4  	Whenever Plan Shares are to be Released or issued under the Plan, the Company or any Group
Company may require the Participant to remit to the Company or a Group Company an amount
sufficient to satisfy all withholding tax requirements prior to the Release or transfer of the
Plan Shares, including, but not limited to, the withholding of wage tax, income tax and social
security contributions.

	17.5  	The Plan is governed by the applicable tax and social security legislation and regulations
prevailing at the date of the adoption of the Plan by the Supervisory Board of the Company. If
any tax and/or social security legislation or regulations are amended in the future and any
tax or employee social security levies become payable, the costs and risks related thereto
shall be borne by the Participant.

	17.6  	For the avoidance of doubt, the provisions of Rules 17.2 to 17.4 shall apply to a
Participant’s liabilities that may arise on the (i) Grant, Vesting and exercise of an Option
and (ii) the Vesting and/or Release of his Award in more than one jurisdiction.

	17.7  	Except as described in this Rule 17, any tax, employee’s social security contributions or
similar liabilities arising out of the disposal of Plan Shares shall be the responsibility of
the Participant alone. Any payment made under the Plan shall not be pensionable and shall not
be brought into account for the purposes of calculating or imputing any salary related
benefits of the Participant.

(20)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 18: REPORTING

It shall be a condition of the obligation of the Grantor to issue or to procure the transfer of
Plan Shares to Participants that such issue or transfer shall not take place until such time as the
Grantor is satisfied that the Company or Group Company which employs the Participant is aware of,
and will carry out, its reporting obligations in respect of the transfer or issue of Plan Shares
where necessary.

RULE 19: PLAN AMENDMENTS AND TERMINATION

	19.1  	Subject to Rule 19.3, the Executive Board may from time to time at its absolute discretion
amend any of the Rules of the Plan.

	19.2  	The Executive Board shall have the power from time to time to make or vary regulations for
the administration of this Plan and to amend the terms or impose further conditions on the
Vesting or exercise of Options and/or the Vesting or Release of Awards to take account of
taxation, securities law or exchange control laws provided always that such regulations, terms
and conditions do not conflict with the provisions of this Plan.

	19.3  	No amendment, waiver or replacement to or of this Plan, any Rule or regulations for the
administration of this Plan shall be made to the extent to which it would have a detrimental
effect on any of the subsisting rights of Participants except with such consent on their part.

RULE 20: TERMINATION

Notwithstanding the provisions contained in Rules 9.1 and 11.1 of this Plan, the Executive Board
may at any time resolve that no further Options be granted and/or Awards be made to Employees under
this Plan, and in such event no further Options will be granted and/or Awards will be made but in
all other respects the provisions of this Plan shall remain in full force and effect.

RULE 21: ADMINISTRATION

	21.1  	Written notice of any amendment made in accordance with Rule 19 shall be given to those
Participants affected by such amendment.

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ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

	21.2  	Any notice or other document required to be given hereunder to any Participant shall be
delivered to him at his home address or such other address as may appear to the Executive
Board to be appropriate or in any other format agreed in advance between the Participant and
the person giving the notice on behalf of the Executive Board. Any notice or other document
required to be given to the Company, a Group Company, the Executive Board or the Grantor shall
be delivered in a format agreed in advance between the Participant and the person receiving
the notice. Notices sent by post, unless received earlier, shall be deemed to have been given
on the fifth day following the date of posting.

	21.3  	The Grantor may, at its absolute discretion, issue written guidance setting out the
procedures whereby the Plan shall be operated. If such written guidance is issued to any
Group Company, that Group Company shall be obliged to act in accordance with that written
guidance except that in the event of a conflict between any such written guidance and the
Rules, the Rules will take precedence.

	21.4  	Participants shall be subject to and bound by the terms and conditions of the regulations
concerning inside information, the “Reglement inzake Voorwetenschap”. Such rules may restrict
the rights of the Participants under this Plan. Participants are expected to be familiar with
the regulations concerning inside information and any other information, guidance and/or
regulations issued by the Company or relevant government or regulatory bodies, and the Company
shall incur no liability should the Participant act in breach of these rules.

RULE 22: DISPUTES

The decision of the Executive Board in any dispute or question relating to any Grant or Award shall
be final and conclusive subject to the terms of this Plan.

RULE 23: CONFLICTS WITH AGREEMENTS

The provisions of a leo Agreement shall govern and prevail in the event of any conflict
with the Rules of the Plan. Any conflicting or inconsistent term of a leo Agreement
shall be interpreted and implemented by the Executive Board in a manner consistent with the Plan.

(22)

 

ING GROUP LONG TERM EQUITY OWNERSHIP PLAN

RULE 24: GOVERNING LAW

	24.1  	These Rules shall be governed by and shall be construed in accordance with the law of The
Netherlands.

	24.2  	The Company, Group Companies and the Participants irrevocably submit, in respect of any suit,
action or proceeding related to the interpretation or enforcement of the Plan, to the
exclusive jurisdiction of the courts of Amsterdam.

***

(23)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]