335 Dividend policy  Under Dutch law and Aegon’s Articles of Association, holders of Aegon’s common shares are entitled to dividends paid out of the  profits remaining, if any, after the creation of a reserve account. Aegon’s Executive Board may determine the dividend payment date  and the dividend record date for the common shares, which may vary for the various kinds of registered shares. Aegon’s Executive  Board, with the approval of Aegon’s Supervisory Board, may also determine the currency or currencies in which the dividends will be  paid. Aegon may make one or more interim distributions to the holders of common shares. Aegon aims to pay out a sustainable dividend to allow equity investors to share in Aegon’s performance, which can grow over time if  Aegon’s performance so allows. After investment in new business to generate organic growth, capital generation in Aegon’s operating  subsidiaries is available for distribution to the holding company, while maintaining a capital and liquidity position in the operating  subsidiaries in line with Aegon’s capital management and liquidity risk policies.  Aegon uses cash flows from its operating subsidiaries to pay holding expenses, including funding costs. The remaining cash flow is  available to execute Aegon’s strategy and to fund dividends on its shares, subject to maintaining holding company targeted capital.  Depending on circumstances, future prospects and other considerations, Aegon’s Executive Board may elect to deviate from this target.  Aegon’s Executive Board will also take capital position, financial flexibility, leverage ratios and strategic considerations into account  when declaring or proposing dividends on common shares.  Under normal circumstances, Aegon would expect to declare an interim dividend when announcing Aegon’s second quarter results and  to propose a final dividend at the annual General Meeting of Shareholders for approval. Dividends would normally be paid in cash or  stock at the election of the shareholder. The relative value of cash and stock dividends may vary. Stock dividends paid may, subject to  capital management and other considerations, be repurchased in order to limit dilution.  When determining whether to declare or propose a dividend, Aegon’s Executive Board has to balance prudence versus offering an  attractive return to shareholders, for example in adverse economic and/or financial market conditions. Also, Aegon’s operating  subsidiaries are subject to local insurance regulations which could restrict dividends to be paid to us. There is no requirement or  assurance that we will declare and pay any dividends.  Holders of common shares historically have been permitted to elect to receive dividends, if any, in cash or in common shares, except for  the final dividend for 2002, as distributed in May 2003, which was made in common shares only. For dividends, which holders may elect  to receive in either cash or common shares, the value of the stock alternative may differ slightly from the value of the cash option. We  pay cash dividends on shares of New York registry in US dollars through Citibank, N.A., Aegon’s NYSE paying agent, based on the  foreign exchange reference rate (as published each working day at 14:15 hours by the European Central Bank) on the business day  following the announcement of the interim dividend or on the second business day following the shareholder meeting approving the  relevant final dividend. 