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## DILUTED EARNINGS PER SHARE 

Diluted earnings per share is calculated by adjusting the average number of shares outstanding for share options. For the purpose of calculating diluted earnings per share, AEGON assumed that all dilutive share options have been exercised at the exercise price, or adjusted exercise price if necessary. The proceeds are regarded as having been received from the issue of common shares at the average market price of the AEGON N.V. share during the year. The difference between the number of dilutive options issued and the number of common shares that would have been issued at the average market price has been treated as an issue of common shares for no consideration. 

The number of share options that has not been included in the weighted average number of common shares used in the calculation of diluted earnings per share amounted to 21,844,693 (2009: 27,090,867; 2008: 29,178,516). In 2010 and 2009, the average share price did not exceed the exercise price and in 2008, the share options would have had an anti-dilutive effect. At December 31, 2010, the exercise prices of these share options range from EUR 8.93 to EUR 14.98. 

The potential conversion of the convertible core capital securities is not taken into account in the calculation of the diluted earnings per share for the years 2009 and 2008 as this would have an anti-dilutive effect. 

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