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On the balance sheet date AEGON N.V. and its subsidiaries held 29,245,571 of its own common shares with a face value of EUR 0.12 each. Most of the shares have been purchased to neutralize the dilution effect of issued share dividend and to 

hedge share appreciation rights and stock options granted to executives and employees. Movements in the number of repurchased own shares held by AEGON N.V. were as follows: 

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As part of their insurance and investment operations, subsidiaries within the Group also hold AEGON N.V. common shares, both for their own account and for account of policyholders. These shares have been treated as treasury shares and are included at their consideration paid or received. 

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The consideration for the related shares is deducted from or added to the retained earnings. 

## NOTE 10 CONVERTIBLE CORE CAPITAL SECURITIES 

On December 1, 2008, AEGON’s core capital was increased through a transaction with the Dutch State in view of the ongoing uncertainty regarding the financial and economic environment during the year. Vereniging AEGON received a senior loan of EUR 3 billion which was invested in AEGON against issuance of 750 million non-voting convertible core capital securities at EUR 4.00 per security. The newly issued securities rank equal to common shares (pari passu), but carry no voting rights. This structure was designed to avoid dilution of voting rights of existing shareholders. The proceeds from the convertible core capital securities may only be used for general corporate purposes in the ordinary course of business; investments in subsidiaries chargeable to the additional capital in excess of EUR 300 million outside the European Union require prior approval from the Dutch Central Bank. 

On November 30, 2009, AEGON repurchased 250 million of convertible core capital securities. The total payment to the Dutch State amounted to EUR 1.15 billon. Under the terms of AEGON’s agreement with the Dutch State, the premium for repayment amounted to EUR 108 million based on the volume weighted average share price of AEGON shares of EUR 4.8315 during the five trading days from November 23 until November 27. The amount repaid includes accrued interest from May 22, 2009, of EUR 44 million. 

On August 30, 2010, AEGON repurchased 125 million of convertible core capital securities. The total payment to the Dutch State amounted to EUR 563 million and included a premium for repayment amounting to EUR 52 million and accrued interest from May 25, 2010, of EUR 11 million. 

Refer to note 17 for disclosure about a repurchase of convertible core capital securities after December 31, 2010. 

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