Appropriation of result
31
Provisions of the Articles of
Incorporation concerning
Appropriation of Earnings.
According to Article 33 of the Articles of Incorporation of Friesch-
Groningsche Hypotheekbank N.V.as adopted on July 22, 1987, the
provisions concerning appropriation of earnings are as follows:
Reserves
1. From the earnings as shown by the adopted financial statements any losses
shall first be made good, insofar they have not been offset by other means,
then the equity reserves prescribed by law shall be formed, insofar they have
not been formed by some other means as determined by the Board of Direc-
tors, and finally such amount shall be added to equity reserves as the Board
of Directors shall determine.
Dividend
2. The earnings remaining after applications of the provisions of the
preceding paragraph shall then be distributed in order as follows:
a. to the holders of preferred A stock a dividend of eight percent (8%) of the
nominal amount of this stock will be paid to the extent that the remaining
earnings shall allow;
b. if the remaining earnings do not allow a payment of eight percent as
referred to above, the earnings available for distribution in subsequent years
before the provisions under a. of the paragraph are observed - will first be
applied to offset the deficit in the payment to holders of preferred A stock;
c. to AEGON N. V.established in The Hague, payments will be made until
the total amount of NLG 702,049 on account of this paragraph c.is
received by AEGON N. V.
d. to the holders of preferred B stock a dividend of 8% of the nominal
amount of this stock will be paid to the extent that the remaining earnings
shall allow;
e. if the remaining earnings do not allow a payment of eight percent as
referred to above under d.the earnings available for distribution in subse
quent years after due observance of the provisions under b. and c. with
respect to this remainder - before the provisions under d. are observed - will
be applied to offset the deficit in the payment to holders of preferred B stock;
f. to AEGON N.V. above mentioned, payments will be made until the
amount of its earning rights as referred to in paragraph 3 of this article has
been fully paid;
g. if the earnings for the financial year concerned available for distrubution
to AEGON N.V. do not allow payment in full of the amount of the earning
rights, the earnings available for distribution shall be paid entirely to
AEGON N.V.
h. the earnings which remain after the amount of the earning rights referred
to under f. of this paragraph has been paid in full shall be paid to the holders
of common stock in proportion to the nominal amounts of their shares.
