As consistently disclosed in AEGON’s annual reports and in the normal course of the business, members of the Executive Board of AEGON are entitled to mortgage loans under the terms applicable to personnel as a whole, subject to the prior approval of the Supervisory Board.  [II.2.8] AEGON has detailed regulations applicable to members of the Executive Board and the Supervisory Board concerning the ownership of and transactions in securities, other than AEGON stock. These regulations are in conformity with the regulations prescribed by the Dutch regulators and shall be further refined so as to comply with the more detailed best practice provisions of the Dutch Corporate Governance Code. Compliance with these regulations is supervised by the Group Compliance Officer, who acts alongside compliance officers appointed by country units and the business units.  [II.2.6; III.7.2; III.7.3] The duties of the Supervisory Board are the supervision of the management by the Executive Board and the general course of affairs of AEGON and the business connected with it. In particular, this includes supervision of the achievement of AEGON’s stated objectives, corporate strategy, risk management, the financial reporting process (also in light of the United States’ Sarbanes-Oxley legislation) and general compliance with legislation and regulations. The Supervisory Board is also responsible for deciding on how to resolve conflicts of interest between members of the Executive Board, members of the Supervisory Board, major shareholders and the independent auditor on the one hand, and AEGON on the other hand. The Supervisory Board assists the Executive Board by giving advice. In performing their duties, the members of the Supervisory Board are required to act in accordance with the interests of AEGON and its affiliated enterprises. Pursuant to AEGON’s Articles of Incorporation and the Rules and Regulations of the Supervisory Board, the Supervisory Board is empowered to obtain all information they deem necessary for the performance of their duties, which includes the right to obtain information from officers and external experts of the company.  [III.1; III.1.6; III.1.8; III.1.9; III.6] The Remuneration Policy will be submitted to the General Meeting of Shareholders to be held on April 22, 2004 for adoption. Any future material changes to the Remuneration Policy regarding members of the Executive Board will also be submitted to the General Meeting of Shareholders for adoption.  [Principle above II.2.9; III.5.10] In its remuneration report, the Supervisory Board will account for the manner in which the Remuneration Policy regarding members of the Executive Board has been applied on the basis of the report of the Compensation Committee of the Supervisory Board. Any special remuneration as well as any severance payments shall be included and explained in the remuneration report. In addition, each year the annual report provides an overview of the then current Remuneration Policy for the near future. The remuneration report will be posted on AEGON’s website www.aegon.com.  [II.2.9; II.2.10; II.2.13] In accordance with existing practice, the remuneration of the individual members of the Executive Board will be determined by the Supervisory Board within the scope of the adopted Remuneration Policy. Upon conclusion of a contract with a new member of the Executive Board, the main elements of the employment contract with this member shall be made public.  [Principle above II.2.9; II.2.11; II.2.12] In AEGON’s annual accounts the value of options and stock appreciation rights, if any, granted to the Executive Board and personnel are being recognized with an indication as to how this value is determined. [II.2.14] Compiled in 2002, after a company-wide collaborative effort, AEGON’s Code of Conduct is a code of ethics that addresses conflicts of interest that may occur between AEGON and its employees including the members of the Executive Board.  The Code of Conduct is available on AEGON’s website www.aegon.com. More detailed regulations regarding conflicts of interest between members of the Executive Board and AEGON are included in the Rules and Regulations of the Executive Board. Subject to making some technical refinements thereto the Rules and Regulations of the Executive Board are compliant with the Dutch Corporate Governance Code.  [II.3; II.3.1; II.3.2; II.3.3; II.3.4] However, under the provisions of the Dutch Corporate Governance Code, the membership of Messrs. Shepard and Streppel of the executive committee of Vereniging AEGON may give rise to deemed conflicts of interest. The Supervisory Board and the Executive Board will consider how any such deemed conflicts of interest should be addressed. The Supervisory Board shall continue its existing practice to include a detailed report of its activities in the relevant financial year in each annual report. In its report it will include the information prescribed in the Dutch Corporate Governance Code. The report will include appropriate reference to the subjects discussed within the Supervisory Board during the relevant year.  [III.1.2; III.1.3; III.1.5; III.1.7; III.1.8] The Rules and Regulations of the Supervisory Board contain provisions regarding the division of duties within the Supervisory Board and its internal procedures and contacts with the Executive Board, as well as with the General Meeting of Shareholders. Subject to further refinements in the context of implementing the Dutch Corporate Governance Code being made, these regulations shall be posted on AEGON’s website. [III.1.1] AEGON GROUP ANNUAL REPORT 2003 65 COMPLIANCE SUPERVISORY BOARD ROLE AND PROCEDURE DETERMINATION AND DISCLOSURE OF REMUNERATION CONFLICTS OF INTEREST