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## NOTE 13 SHORT-TERM BORROWINGS 

<img src='content_image/256594.jpg'>

All short-term borrowings have a maturity of less than one year. 

## NOTE 14 OTHER LIABILITIES 

Loans from and payables to group companies have a maturity of less than one year. Other includes derivatives with negative fair values of EUR 313 million (2009: EUR 255 million) and income tax payable for EUR 146 million (2009: EUR 30 million). 

AEGON N.V., together with certain of its subsidiaries, is part of a tax grouping for Dutch corporate income tax purposes. The members of the fiscal entity are jointly and severally liable for any taxes payable by the Dutch tax grouping. 

AEGON received cash collateral related to repurchase agreements for which an offsetting liability has been set up as AEGON was obligated to return this amount upon termination of the repurchase agreements (refer note 5). In 2010 AEGON terminated the repurchase agreement. 

## COMMITMENTS AND CONTINGENCIES 

AEGON N.V. has entered into a contingent capital agreement in order to enable its subsidiary Scottish Equitable Plc. to maintain capital in excess of the minimum capital requirements. The agreement is secured by GBP 200 million in assets, which have been allocated to Scottish Equitable. In the event Scottish Equitable’s solvency capital would fall below the minimum capital requirement, AEGON N.V. has agreed to replenish solvency capital up to the amount of assets remaining in the secured account. The agreement expires when certain conditions have been triggered. These conditions are: 1) (partial) disposal of Scottish Equitable or 2) the implementation of solvency II in the UK. 

AEGON N.V. has entered into a net worth maintenance agreement with its indirect subsidiary AEGON Financial Assurance Ireland Limited (AFA), pursuant to which AEGON N.V. will cause AFA to have a tangible net worth of at least 3% of its total liabilities under financial guaranty policies which it issues up to a maximum of EUR 3 billion. 

## AEGON N.V. has guaranteed and is severally liable for the following: 

■ Due and punctual payment of payables due under letter of credit agreements applied for by AEGON N.V. as co-applicant with its subsidiary companies Transamerica Corporation, AEGON USA, LLC and Commonwealth General Corporation. At December 31, 2010, the letter of credit arrangements amounted to EUR 3,489 million (2009: EUR 3,492 million); as at that date no amounts had been drawn or were due under these facilities. 

■ Due and punctual payment of payables by the consolidated group companies Transamerica Corporation, AEGON Funding Company LLC, Commonwealth General Corporation and Transamerica Finance Corp. with respect to bonds, capital trust pass-through securities and notes issued under commercial paper programs (EUR 620 million; 2009: EUR 668 million), as well as payables with respect to certain derivative transactions of Transamerica Corporation (nominal amount EUR 2,094 million; 2009: EUR 1,870 million). 

■ Due and punctual payment of any amounts owed to third parties by the consolidated group company AEGON Derivatives N.V. in connection with derivative transactions. AEGON Derivatives N.V. only enters into derivative transactions with counterparties with which ISDA master netting agreements including collateral support annex agreements have been agreed; net (credit) exposure on derivative transactions with these counterparties was therefore limited as at December 31, 2010. 

## NOTE 15 NUMBER OF EMPLOYEES 

Other than the Executive Board members, there were no employees employed by AEGON N.V. in either 2010 or 2009. 

