Notes to Financial Statements
John Hancock Funds -- Patriot Premium Dividend Fund II
affect the respective interests of the DARTS and Common Shares. The DARTS have a liquidation preference of
$100,000 per share, plus accumulated and unpaid dividends. The Fund is required to maintain certain asset
coverage with respect to the DARTS, as defined in the Fund's By-Laws.
NOTE B --
MANAGEMENT FEE AND TRANSACTIONS
WITH AFFILIATES AND OTHERS
Under the present investment management contract, the Fund pays a monthly management fee to John Hancock
Advisers, Inc. (the "Adviser"), a wholly-owned subsidiary of The Berkeley Financial Group, for a continuous
investment program, equivalent on an annual basis, to the sum of 0.50% of the Fund's average weekly net asset
value, plus 5% of the Fund's weekly gross income. The Adviser's total fee is limited to a maximum amount equal
to 1% annually of the Fund's average weekly net asset value. For the period ended April 30, 1995, the advisory
fee incurred did not exceed the maximum advisory fee allowed.
The Fund has entered into an administrative agreement with the Adviser under which the Adviser oversees the
custodial, auditing, valuation, accounting, legal, stock transfer and dividend disbursing services and maintains
Fund communications ser vices with the shareholders. The Fund pays a monthly administrative fee to the Adviser
equivalent, on an annual basis, to 0.10% of the Fund's average weekly net asset value.
Each unaffiliated Trustee is entitled, as compensation for his or her services, to an annual fee plus remuneration
for attendance at various meetings.
Messrs. Edward J. Boudreau, Jr. and Richard S. Scipione are directors and/or officers of the Adviser and/or its
affiliates, as well as Trustees of the Fund. The compensation of unaffiliated Trustees is borne by the Fund.
Effective with the fees paid for 1995, the unaffiliated Trustees may elect to defer for tax purposes their receipt of
this compensation under the John Hancock Group of Funds Deferre