APPROPRIATION OF RESULT According to Article 33 of the Articles of Incorporation of Friesch-Groningsche Hypotheek bank N.V., as adopted on July 22, 1987, the provisions concerning appropriation of earnings are as follows: 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 Directors, and finally such amount shall be added to equity reserves as the Board of Directors shall determine. 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 obser ved - will first be applied to offset the deficit in the payment to holders of preferred A stock; c. to AEGON N.V., established at 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 seven percent (7%) 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 seven percent as referred to above under d., the earnings available for distribution in subsequent 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 distribution 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 wich 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. 3. AEGON N.V. shall be entitled to distribution of earnings by virtue of its earnings rights as stated - and in the manner discribed - under f. of paragraph 2 of this article, until the full amount of its earnings rights - as calculated in the manner set forth in paragraph 4 of this article - has been paid. 4. The earnings rights of AEGON N.V. will be equal to the result obtained from the formula (RP RD) - GU in which the terms are defined as follows: - RP is NLG 47,100,000. This amount will be increased by 8% at the end of each calendar year, beginning December 31, 1986, which increase will be added to said amount as per the date of increase so that in subsequent years the increase will be calculated on the thus increased amount. 34 PROVISIONS OF THE ARTICLES OF INCORPORATION CONCERNING APPROPRIATION OF EARNINGS. RESERVES DIVIDEND

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Annual Reports FGH Bank | 1990 | | pagina 36