## PENSION AND OTHER ARRANGEMENTS 

Other elements of the reward structure of Executive Board members have not been revised in the Remuneration Policy. 

The pension arrangements aim at creating a reliable retirement provision for Executive Board members that conform to market practice. The plan for the Dutch Executive Board members, based on the attained age system, sets the pension age at 62, with the possibility of an earlier retirement under specified terms, and a benefit of maximum 70% of the calculated pension base, depending on the years of service. Mr. Shepard has continued his participation in the AEGON USA pension provisions. 

Mr. Shepard is entitled to a variable allowance in addition to the STI. Until his appointment as Chairman of the Executive Board this allowance related to the earnings' increase of AEGON USA. Effective from his appointment as Chairman per April 18, 2002, the Committee advised, and the Supervisory Board resolved to do this, to entitle Mr. Shepard to an annual allowance equal to 0.1% of the net income of AEGON N.V., as a compensation for the fact that the variable allowance related to the AEGON USA earnings increase was stopped as per the same date and his base salary was not increased at that time. The total of these pro rata allowances over 2002, paid in April 2003 to Mr. Shepard, amounted to EUR 1,207 million. In the individual employment contracts, specific arrangements 

regulate the Executive Board members’ entitlements in case of termination by AEGON of the Executive Board membership or employment with AEGON. Mr. Shepard would, under such termination other than for ‘cause, death, disability, retirement or voluntary resignation’, be entitled to three years’ fixed salary plus an amount equal to the average of the STI bonuses he has received in three previous years. As for the other members no specific financial arrangement was agreed, as a consequence of which relevant procedures in the Netherlands will apply. 

The individual employment contracts also determine the provisions in case of termination of Executive Board membership or employment with AEGON, in connection with a merger, takeover or fundamental changes. In that case Mr. Shepard is entitled to compensation in line with CEOs in the US insurance industry, but not less than three years’ fixed salary, in addition to vested benefits, plus an amount equal to the average of the STI bonuses he has received in three previous years. 

Mr. Streppel would be entitled to compensation using the Dutch ‘Zwartkruis formula’ by which the amount will be calculated on the basis of and depending on age, years of service, functional level and the probability of finding another equivalent position. For Messrs. Van der Werf and Wynaendts relevant procedures in the Netherlands will be followed. 

