175 ANNUAL REPORT 2010 NOTE 16  CONVERTIBLE CORE CAPITAL SECURITIES  On December 1, 2008, AEGON’s core capital was increased  through a transaction with the State of the Netherlands 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 government amounted to EUR 1.15 billion. Under the  Refer to note 53 for disclosure about a repurchase of  convertible core capital securities after December 31, 2010. On August 30, 2010, AEGON repurchased 125 million of  convertible core capital securities. The total payment to the  Dutch government amounted to EUR 563 million and included a  premium for repurchase amounting to EUR 52 million and  accrued interest from May 25, 2010 of EUR 11 million.  terms of AEGON’s agreement with the Dutch government, the  premium for repurchase 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 repurchased includes accrued  interest from May 22, 2009 of EUR 44 million.  SHARPENING OUR FOCUS 2010 2009 2008 At January 1 2,000 3,000 – Additions – – 3,000 Repayments (500) (1,000) – AT DECEMBER 31 1,500 2,000 3,000