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
