I tried to create a sp in db2 as400. I got following error. no idea why

CREATE PROCEDURE PROFILESCHEDULESCAN (
IN INSYSDATE DATE,
OUT p_sqlstate_out CHAR(5),
OUT p_sqlcode_out INT)
LANGUAGE SQL
SPECIFIC PROFILESCHEDULESCAN
NOT DETERMINISTIC
MODIFIES SQL DATA
CALLED ON NULL INPUT
SET OPTION ALWBLK = *ALLREAD ,
ALWCPYDTA = *OPTIMIZE ,
COMMIT = *NONE ,
DECRESULT = (31, 31, 00) ,
DFTRDBCOL = *NONE ,
DYNDFTCOL = *NO ,
DYNUSRPRF = *USER ,
SRTSEQ = *HEX
PSS: BEGIN
DECLARE SQLCODE INTEGER DEFAULT 0 ;
DECLARE SQLSTATE CHAR(5) DEFAULT '00000';

DECLARE CONTINUE HANDLER FOR SQLSTATE '23503'
VALUES (SQLSTATE, SQLCODE)
INTO p_sqlstate_out
,p_sqlcode_out;

DECLARE INTERNALID INTEGER DEFAULT 0 ;
END PSS ;

Message: [SQL0104] Token INTERNALID was not valid. Valid tokens: EXIT UNDO CONTINUE. Cause . . . . . : A syntax error was detected at token INTERNALID. Token INTERNALID is not a valid token. A partial list of valid tokens is EXIT UNDO CONTINUE. This list assumes that the statement is correct up to the token. The error may be earlier in the statement, but the syntax of the statement appears to be valid up to this point. Recovery . . . : Do one or more of the following and try the request again: -- Verify the SQL statement in the area of the token INTERNALID. Correct the statement. The error could be a missing comma or quotation mark, it could be a misspelled word, or it could be related to the order of clauses. -- If the error token is <END-OF-STATEMENT>, correct the SQL statement because it does not end with a valid clause.

I don't know about iSeries, but on in DB2 LUW compound statements variable declarations must come before exception handlers.