As in 2009, the Chairman of AEGON’s Supervisory Board, Rob Routs and two members of the Supervisory Board met with the Director of the Dutch Central Bank to discuss the company’s capital position and strategy. 

## Appointments to the Supervisory and Executive Boards 

In February, the Supervisory Board agreed that share holders would be asked to approve the reappointment of Mr. K.J. Storm for a new term of four years as a member of the Supervisory Board. There were no new appointments of members of the Executive Board. This proposal was accepted by shareholders at their annual General Meeting in April 2010. 

## Legal and compliance 

The Board was regularly updated on operational issues that had surfaced in the company’s administration of policies in the United Kingdom. It noted that AEGON UK took the initiative to notify its regulatory authority and implement a program to deal with the issues. As part of the program, AEGON UK identified impacted customers and took steps to return those customers to the financial position they would have been in had the issue not occured. It also noted that AEGON UK has since put in place more stringent controls to prevent similar issues occurring in the future. 

During 2010, the Supervisory Board and the Audit Committee discussed various issues of compliance, regulatory and legal issues in Europe, the United States and Asia. 

## Educational session and Board review 

In November, the Board extensively discussed the potential implications of Solvency II for AEGON’s business and products during its annual educational session. The Supervisory Board carried out an extensive board evaluation review during the second half of 2010 on the basis of written questionnaires and interviews. The review assessed the performance of individual members, as well as the collective performance of the Board and its Committees. The review of the Chairman was carried out by the Vice Chairman, who collected input from all other Supervisory Board members. The results were consolidated and discussed in a meeting in the absence of management. This year’s assessment did not involve any external consultant. There were no major findings. The Board discussed the composition and the size of the Board and compiled an inventory of the topics Board members wanted to put on the agenda for 2011. 

The Board assessed the performance of members of the Executive Board during the same meeting. 

## Supervisory Board Committees 

The Supervisory Board requires its four Committees to prepare specific issues for decision-making by the Board. Each of these Committees is made up of members exclusively drawn from the Supervisory Board itself. In accordance with its Charter, each Committee reports its findings to the Supervisory Board during a subsequent Supervisory Board meeting. 

## The Audit Committee 

The Audit Committee held seven meetings in 2010, one of which was a combined meeting with the Supervisory Board’s Risk Committee. The meetings were attended by AEGON’s Chief Financial Officer, the head of the Corporate Financial Center and the internal auditor. Representatives from Ernst & Young, AEGON’s external auditor, also attended most of these meetings. Officials from AEGON’s Group Risk and the Actuarial departments were present at some meetings of the Audit Committee. In 2010, discussions focused on the following topics: the quarterly results, the annual accounts and the audit process, AEGON’s 2009 Embedded Value Report and annual VNB figures, actuarial analyses, accounting principles as defined by International Financial Reporting Standards (IFRS), financial reports filed with the Securities and Exchange Commission, capital updates, internal control systems and compliance, the external auditor’s engagement letter and the audit plan for 2010, tax planning and IT applications. During most meetings closed sessions were held with the internal and external auditors in the absence of management. 

During the year, management and the Audit Committee carried out an in-depth assessment of Ernst & Young’s performance, quality, cost levels and independence, as required pursuant to the Dutch Corporate Governance Code. The assessment resulted in a recommendation by the Audit Committee to the Supervisory Board that shareholders be asked to reappoint Ernst & Young for the 2010 financial year. The Committee also confirmed that Shemaya Levy and Ben van der Veer qualify as financial experts within the terms and conditions of both the Dutch Corporate Governance Code and the Sarbanes Oxley Act in the United States. 

The internal auditor attended most meetings of the Audit Committee during 2010 and provided quarterly updates on his activities. During the meetings, the 

