Conditions de Fonctionnement PIC LTD

GENERAL TERMS AND CONDITIONS FOR
ACCOUNTS
General terms and conditions for accounts
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SUMMARY
I - General provisions applicable to all accounts...6
Article 1 Conditions governing the opening of accounts - account name..6
Article 2 Proof...6
Article 3 - Bank correspondence.7
Article 4 - Date of effect of processed transactions...7
Article 5 - Scope of the general conditions amendments....8
Article 6 - Collective accounts..8
Article 7 - Transmission execution of orders...9
Article 8 Taxation...10
Article 9 Termination..11
Article 10 - Confidentiality and professional secrecy..11
Article 11 - The banks liability...11
Article 12 Processing of personal information..12
II - Operation of cash accounts..12
Article 13 - Current account agreement..12
Article 14 - Issuance of payment instruments...13
Article 15 - Execution of payment orders14
Article 16 Remuneration of deposits....13
Article 17 - Protests in the event of cheques being rejected....13
Article 18 - Lending terms...13
Article 19 - Credit payability14
Article 20 - Offsetting clause..14
Article 21 SEPA...14
III - Operation of the securities accounts15
Article 22 - Securities recorded in the account.15
Article 23 - Custody of securities custody fees.16
Article 24 - Powers to administer deposited stocks and securities.16
Article 25 - Third party information...16
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Article 26- Income collection..16

Article 27 - Availability of securities deposit term.16
Article 28 - Management mandate.16
Article 29 - Financial future and options transactions....17
Article 30 - Cover and guarantees.17
Article 31 - Customer information.17
Article 32 - Closing the securities account.17
Article 33 General pledge of funds and/or financial instruments.....18
IV - Contractual language/ Disputes/ Governing law...21
Article 34 - Contractual language..21
Article 35 - Governing law - jurisdiction......21
Information about the general risks of investing in financial instruments22
A - Assessing the risks arising from investing in financial instruments22
1- Price variability..22
1.1- Equity securities and debt securities22
1.2- Specific risk and general risk..22
1.3- Issuer risk 22
1.4- Interest risk...23
1.5- Effect of diversifying investments Undertakings for collective investment...23
2- Liquidity...23
3- Currency..23
4- Other factors generating general risks...23
4.1- Deposited funds and securities..23
4.2- Commissions and other charges23
4.3- Transactions on foreign markets23
4.4- Electronic trading systems..24
4.5- Transactions performed outside organised markets24
B - The degree of risk in investing in derivatives.24
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C - The risks of investing in hedge funds or assimilated strategies...24

1- Futures.24
1.1- Leverage24
1.2- Strategies to reduce risk...24
2- Options.25
2.1- Buying an option.25
2.2- Selling an option.25
3- Other factors creating risks applying to both futures and options.25
3.1- Contractual terms and conditions..25
3.2- Suspension or limitation of trading and the relationship between prices..25
3.3- Currency futures.25
D - The degree of risk in discretionary asset management ..25
1- The degree of risk to which a managed portfolio is exposed...26
2- Other general risks related to asset management services..26
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GENERAL TERMS AND CONDITIONS FOR ACCOUNTS

AND GENERAL PLEDGE OF FUNDS AND/OR
FINANCIAL INSTRUMENTS
This agreement entered into by and between the
undersigned:
1. Compagnie Mongasque de Banque, a Monegasque
limited company (socit anonyme), having its registered
office in the Principality of Monaco and registered in the
trade and industry directory under number 76 S 01557,
represented
by...........................................................................................
.....
...............................................................................................
....
Referred to hereinafter as the Bank
2.a.
Mr .........................................................................................
...............................................................................................
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...............................................................................................
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...............................................................................................
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...............................................................................................
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2.b.
Mrs .......................................................................................
...............................................................................................
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...............................................................................................
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...............................................................................................
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...............................................................................................
...............................................................................................
........
(first names, surname, date and place of birth, occupation,

address, matrimonial regime),
Postal address:
...............................................................................................
...............................................................................................
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...............................................................................................
...............................................................................................
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...............................................................................................
...............................................................................................
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Represented by
...............................................................................................
...............................................................................................
........
(first names, surname)
Duly authorised by virtue of
...............................................................................................
...............................................................................................
........
Postal address:
...............................................................................................
...............................................................................................
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...............................................................................................
...............................................................................................
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Or:
The Company
...............................................................................................
...............................................................................................
.......
...............................................................................................
...............................................................................................
.......
...............................................................................................
...............................................................................................
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(company name, legal form, share capital, registered office)
Represented by
...............................................................................................
...............................................................................................
........
...............................................................................................
...............................................................................................
........
(first names, surname, and position in company),
duly authorised by virtue of
...............................................................................................
...............................................................................................
........
...............................................................................................
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Postal address:
...............................................................................................
...............................................................................................
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...............................................................................................
...............................................................................................
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...............................................................................................
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Referred to hereinafter as the Customer or the Pledgor
If applicable:
Name or alias used for the operation of the accounts
covered by the agreement set out below:
...............................................................................................
...............................................................................................
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...............................................................................................
...............................................................................................
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the business relationship ends, represent the single current

account balance.
Article 1 Conditions governing the opening of
accounts - account name
The Bank will define the applicable terms and conditions
before opening an account for a Customer or accepting the
Customers representatives, on the basis of its statutory
know your customer obligations, in particular those
pertaining to anti-money laundering and the fight against
terrorism and corruption, and also on the basis of its own
assessment. For that purpose, it will arrange for the
Customer to sign appropriate documents giving the Bank
sufficient information about the Customer and his/her/its
assets and all other information it deems necessary or
appropriate.
The undersigned agree to open account

no. .........................................................................................
..........
with the following account name:
...............................................................................................
...............................................................................................
........
...............................................................................................
...............................................................................................
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If the Customer is an individual business person and asks

for the account to be opened under the business name,
he/she must guarantee the Bank that he/she is the only
person authorised to conduct business under this name.
The Customer will be liable, personally and without
restriction, towards the Bank for all transactions executed
by the Customer or his/her representative(s) under the said
name. The Customer acknowledges that he/she has been
informed by the Bank that any unavailability of funds or
securities (distraint, opposition, freezing, etc.) will apply in
the same manner whether or not the Customers name(s)
or the business name is specified, and therefore discharges
the Bank from all liability in this respect.
The aforementioned account will be pledged pursuant

to the provisions stipulated in Article 33, General
pledge of funds and/or financial instruments.
These provisions will apply if the Customer is a company

using a name other than its official corporate name as the
account name.
I. GENERAL PROVISIONS APPLICABLE TO ALL

ACCOUNTS
The same rules will apply to accounts opened by a private

individual or a legal entity operating under an alias.
The provisions below govern the operation of all the

accounts that the Customer may decide to open on the
Banks books.
Article 2 Proof
The Bank may allocate the Customer one or more root

numbers to which sub-accounts will be attached, in which
case the parties agree that the sub-accounts, opened and
kept separately solely for processing or administrative
purposes, will actually constitute a single account per
category, i.e. a single cash account and a single securities
account.
Accordingly, all accounts opened under different headings
or definitions or kept in different currencies will irrevocably
form a single, indivisible and comprehensive account. The
parties expressly stipulate that the overall balance, after
setting off the credit balances of all the accounts against all
the debit balances, will, at all times and particularly when
The Banks books and documents will have evidentiary

value unless and until proved to the contrary, without
prejudice to the terms of these General Terms and
Conditions for Accounts concerning the time periods for
challenging transactions or for foreclosure. Documents
extracted from the Banks accounts, reproductions by
whatsoever process and on whatsoever media made of
original documents, or recordings of conversations
irrespective of the technique used, may be disproved by the
Customer solely via a document or evidence of the same
nature.
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Article 3 Bank correspondence

3.1. The Bank will send account statements and other
correspondence to the postal address stated on the first
page of the present agreement.
Should the Customer expressly ask for his correspondence
to be sent to the postal address of any third party of his
choice, he/she/it acknowledges that the Bank, by doing so
as authorised by him/her signing the present agreement,
will be discharged from any information obligation towards
him/her and from all liability for compliance with banking
secrecy. Correspondence will be sent according to different
methods depending on whether the address is that of the
Banks head office or another address indicated by the
Customer. No account statement will be sent if no
transactions have been recorded since the previous
statement.
In the event of any correspondence being returned to the
Bank stating that the addressee is unknown at the postal
address given by the Customer or no longer lives there, the
Bank will be entitled to keep such correspondence on its
files along with all subsequent correspondence intended for
the Customer at the same address.
The Customer will, in all circumstances, have the right to
challenge account statements within one month and
transaction notes within forty-eight hours of the
communication thereof, deemed to be the day after the
date shown on the duplicate or dispatch list in the Banks
possession. In the absence of any such challenge within
the aforesaid time periods, the transactions recorded in the
account statement or transaction note concerned will be
deemed to have been approved definitively by the
Customer, including the collection and calculation of
charges and commission.
3.2. If the Customer designates the Banks head office as
the postal address, correspondence will be produced in
electronic format and kept on file using an electronic
medium, and may be accessed by the Customer at the
Banks head office at all times. When consulting the
correspondence, the Customer may request that a hard
copy of the document concerned is printed out. The day
after the date stipulated on the electronic version of the
correspondence will contractually constitute the starting
point of the time periods referred to above during which the
Customer may challenge the entries recorded by the Bank
on account statements and transaction notes. The
Customer is responsible for consulting his/her/its
correspondence at the Banks head office; the date on
which he/she/it does so will not, however, constitute the
aforementioned starting point.
3.3. If the Customer has subscribed to the service, he/she/it
may view his/her/its correspondence, i.e. account
statements, transaction notes and portfolio statements, via
CMB Online; in this case, the correspondence is made

available in electronic format and the Customer may access
it at any time. The day after the date on which the
correspondence is made available in this format will
contractually constitute the starting point of the time periods
referred to in the third paragraph in Article 3.1. above,
during which the Customer may challenge the transactions
recorded in the account statements and in the transaction
notes.
The parties expressly agree that correspondence produced
in electronic format or made available via the CMB Online
service will have the same effects and evidentiary value as
correspondence sent by post.
Printing correspondence at the request of the Customer will
not have any consequences in respect of time periods for
challenging transactions or for foreclosure.
If the Customer opts to receive correspondence via the
CMB Online service and at the same time asks for the
correspondence to be sent to him/her at a postal address or
held at the Banks head office, the starting point for the time
periods for challenging transactions or for foreclosure shall
be calculated from the day after the date day on which the
correspondence is made available in electronic format.
3.4. All the provisions of this Article 3 shall also apply in the
event correspondence is sent by e-mail if the Customer has
not opted for the CMB Online service and has provided an
e-mail address. In that case, the Customer henceforth
releases the Bank from all liability for any loss or damage
that may arise from the use of this method, and agrees to
bear all consequences of the data not being protected due
to a failure in the electronic messaging system, the hacking
of his/her/its inbox or, more generally, any undesired
transmission to third parties of information concerning
his/her/its account, transactions executed by the Bank, or
the Customer personally.
Article 4 Date of effect of processed transactions
For each transaction, the following are shown: first, the
transaction date, defined as the date when the transaction
is recorded on the account, and, second, the value date,
i.e., the date when the transaction takes effect for the
calculation of interest, expressed in either working days or
calendar days.
To speed up the process and comply with automatic data
processing requirements, all transactions concerning the
Customer will be recorded in the account before the Bank
has been able to make the customary checks in respect of
the signature, adequate funds, nature of the transaction,
etc. This means that account entries may not be considered
as constituting the Banks acceptance of the corresponding
transactions and will become definitive only after the
customary checks have been made.
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Any cancellation will be shown on account statements as a

reversal or cancellation (extourne, annulation or
contrepassation), and the Bank is not required to give any
special notice in this respect.
Article 5 Scope of the general terms and conditions amendments
Transactions executed with the Bank are, unless agreed
otherwise, subject to the Banks general pricing conditions
in force at the time when the transaction is actually
executed. The Customer is informed of these conditions in
brochures available to the public at the Banks head office.
These conditions are subject to change and the brochures
are updated periodically. They notably include the charges
for securities transactions, custody fees and fees for other
services related to the holding of securities and the
operation of a securities account.
By opening the account, the Customer automatically agrees
to abide by the general pricing conditions applicable on the
date of the application to open the account and subsequent
modifications. The Customer has previously familiarised
himself/herself with these conditions, having received a
copy thereof, and will be informed of subsequent
modifications by any means. Any new taxes or levies or
exceptional contributions that the Bank may have to bear
as a result of a legal or regulatory decision will be charged
in addition to the interest and commissions indicated.
Any legal or regulatory measure affecting all or part of the
rights and obligations arising under this agreement shall
apply from the date it comes into force.
The Bank reserves the right to amend the present general
conditions. This is accepted by the Customer, who will be
informed of any such amendments one month before the
proposed effective data via a notice enclosed with an
account statement. The provision of such information may
be proved by the Bank producing the dispatch listing, a
copy of the information letter or the electronic file making
the documents available for the CMB Online service. This
provision also applies to amendments to pricing conditions
and to the Commissions and fees appendix. The new
general conditions will be considered to have been
accepted by the Customer in the absence of any challenge
by the Customer within one month.
Article 6 Collective accounts
6.1. In the case of joint holders, the collective account will
operate according to the conditions set out below, which
are accepted by the joint holders irrespective of their
matrimonial regime, if any, which they expressly agree not
to raise against the Bank:
In the case of a joint account, it will be governed by the

rules of active and passive joint liability defined by Article
1052 et seq. of the Monegasque Civil Code.
It will consequently operate under the signature of any of
the joint holders, with each one, acting separately, able to
execute any transactions, including in particular crediting
any sum of money to the account, remitting any cheques or
bills for encashment, signing any slips, depositing any
shares or other securities, withdrawing any sum of money
or securities deposited in the account, placing any stock
exchange orders, issuing and signing any cheques or
money / transfer orders, investing the funds, requesting and
issuing any receipts, closing any accounts, discharging the
Bank, collecting post, reading any documents such as
account statements or transaction notes, requesting any
assistance or advances of any kind, granting any
guarantees, making any pledges and, more generally,
using any of the Banks banking and financial services. Any
securities account that may be opened to record the
securities acquired or deposited by the Customer will
operate in connection with the joint account and according
to the same legal system.
Therefore, withdrawals and, generally speaking, all acts
and dealings with the Bank, notably acts of disposal such
as selling and pledging and any other transaction relating to
the securities recorded in the joint account will be validly
carried out by any of the joint holders. However, only the
person named first in the name of the account will be
entitled to exercise the rights of a shareholder or
bondholder and only his/her/its identity will be disclosed, if
necessary, to the issuing company, unless the one of the
joint holders issues instructions to the contrary.
Payments, settlements and, more generally, any
transactions carried out by the Bank under the signature of
any one of the joint holders will discharge the Bank, both
with regard to the joint holders and with regard to any heirs
or beneficiaries of any joint holder whose death is
subsequently brought to the Banks attention.
In the event of the death of one or more joint holders, the
provisions set out in Article 9 below will apply.
Pending presentation of the certificate referred to in Article
9, paragraph 5, the Bank will be authorised to open an
account in the names of the surviving joint holders, which
will be credited, by debiting the joint account, with the
amount of assets in cash and securities appearing in credit
on the account, less the deceased joint-holders legal
share. The original joint account will therefore constitute the
account for the purposes of the deceased joint holders
estate and the new account, whether joint or not, will
operate between the surviving joint holder(s) according to
the conditions laid down in the present agreement.
Joint liability and indivisibility will apply ipso jure between
the heirs and representatives of the deceased holder(s) and
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between the surviving joint holder(s) and the deceaseds

heirs. The joint account may be closed at any time either on
the joint instructions of all the joint holders or on the Banks
initiative.
Each joint holder of a joint account may, under their sole
signature, grant a power of attorney or mandate, including
to manage the assets held in the account, to a third party.
The parties expressly agree that this provision constitutes a
power of attorney for any joint holder to grant any mandate
to a third party.
Notice of termination of the joint account agreement may be
given by any one of the joint holders by sending the Bank a
recorded delivery letter with acknowledgement of receipt. In
this case the account will become an indivisible account
operating under the joint signatures of all the joint holders,
although each one will remain liable for the transactions in
progress on the day of the notice of termination and for the
use of any unreturned payment cards issued for the
account. Any distraint notice served on the Bank with
regard to any one of the joint holders will apply to all the
assets in the joint account.
In the case of a joint signature account, it will operate under
the joint signature of all the joint holders in respect of both
capital transactions and transactions involving financial
instruments recorded in the collective account. In the event
of the death of one of the joint holders, all the funds and
securities in the account will be frozen. The same will apply
in the event of distraint, opposition or freezing proceedings
against one of the holders. However if any such distraint,
opposition or freezing applies solely to funds and if the
portion belonging to the joint holder subject to the distraint
can be determined by means of an original deed or a duly
registered indivisibility agreement, then only the portion of
the capital belonging to that account holder will be affected
by the measure.
In the case of a bare / beneficial ownership, the account will
operate under the joint signature of all the joint holders in
respect of both the sums of money and securities recorded
in the account. However the beneficial owner may, provided
he/she/it alone gives receipt therefor, collect all income
from the funds and securities, which, except in the case of
instructions to the contrary, will be transferred automatically
to the account opened in his/her/its sole name on the
Banks books. The bare owner and beneficial owner will
personally arrange to return the sums to the bare owner at
the end of the usufruct. Except in the case of an exception
provided by the articles of association of legal entities
whose shares are registered in a bare / beneficial
ownership account, the voting rights attached to the shares
will be exercised by the beneficial owner at ordinary general
meetings and by the bare owner at extraordinary general
meetings.
Consequently, the certificates attesting to the unavailability
of the shares will be drawn up either in the name of the
beneficial owner or the bare owner, as appropriate. In the

event of the death of one of the joint holders, the account
will be frozen in its entirety unless the deceased is the
beneficial owner, in which case the account may continue
to operate under the joint signature of the bare owner joint
holders.
For joint signature accounts and bare / beneficial ownership
accounts, the joint holders may authorise one of their
number to execute any transactions. They may also, under
their joint signature, give power of attorney or grant any
authority, including for the management of assets, to a third
party. Any such delegation of authority or power of attorney
will end in the event of withdrawal by any one of the joint
holders or the death of any one of them.
In the absence of any indication to the contrary, the
collective account will be deemed to be joint account.
6.2. The following rules will apply irrespective of the type of
collective account:
Deposits of funds or assets made by any or all of the joint
holders in the collective account will be carried out on the
sole responsibility of the depositing joint holder(s), and the
Bank will be exempted from any requirement to verify the
legal situation.
In the event the collective account is overdrawn for any
reason whatsoever, the joint holders will be individually and
jointly liable under the terms of Article 1052 of the
Monegasque Civil Code, and the Bank may send its claim
for the entire debt in principal plus interest, commission and
charges to any of the joint holders.
The collective account may be closed at any time either on
the joint instructions of all the joint holders or on the Banks
initiative.
In the event of distraint, opposition or freezing proceedings
and, in general, any measure rendering the assets held by
the Bank on behalf of one of the joint holders unavailable,
the measure will apply to all sums of money and
instruments recorded in the account.
All information concerning the account will be sent to the
joint holders common postal address as indicated by one
of their number.
Article 7 Transmission execution of orders
7.1. Customer orders
The Customer undertakes to comply with the regulatory
obligations and provisions applicable to the markets on
which orders are placed. Orders must be transmitted in
accordance with these regulations, and with the present
agreement as well with common practice. Failure to do so
means that the Bank may refuse the transmitted orders.
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Funds will be settled and securities delivered according to

the rules and common practice prevailing on the markets
where the securities are subscribed to or traded. Over-thecounter (OTC) transactions will be carried out according to
the agreements governing them by and between the parties
thereto.
The Bank may act as an intermediary or as a counterparty
for securities transactions carried out by the Customer on
financial instruments, including derivative financial
instruments.
The Customer declares that he/she/it is fully informed about
the operating conditions and mechanisms of the markets,
including the OTC markets concerning transactions
involving derivative financial instruments, on which
his/her/its orders are placed or processed. The very fact
that he/she/it gives instructions for orders or operations
concerning a regulated or OTC market constitutes
acceptance by the Customer of the rules of the said market.
In any case, the rules of the market concerned shall be
binding upon the Customer in all circumstances, particularly
in respect of the period of validity of orders. The Customer
specifically declares that he/she/it is familiar with the risks
inherent in transactions conducted on such markets,
particularly in respect of their speculative nature and their
possible lack of liquidity, and accepts such risks. The
Banks involvement in the transmission and execution of
the Customers orders will not imply any assessment by the
Bank of the appropriateness thereof, which is the sole
responsibility of the Customer. The parties expressly agree
that should the Bank, for reasons of its own or due to the
nature of an instrument or product, the rules of the market
or of the issuer, or the regulations of an undertaking for
collective investment, carry out a transaction in its name on
behalf of its Customer, the latter waives reliance on any
obligation for the Bank to provide information, advice or
warnings, or any legal obligation, arising from a brokers
mandate.
7.2. Transmission methods
Orders must be transmitted by the Customer to the Bank in
writing. They may also be transmitted by telephone, fax or
e-mail, in which case the Bank may lay down specific
conditions. The Customer discharges the Bank from any
possible consequences of the use of such means of
communication, particularly the consequences of technical
failures, errors, insufficient or unclear instructions or the
unauthorised or fraudulent use thereof.
All orders must be confirmed in writing by the Customer at
the earliest opportunity, whereas any absence of
confirmation cannot be put forward by the Customer to
dispute the execution of any order.
recordings will have evidentiary value in the event of any

dispute.
7.3. Execution of orders by the Bank
The Bank undertakes to check the signatures of Customers
and of their representatives, without, however, being
obliged to carry out any more detailed check than a simple
identification check. Nevertheless, the Bank does not
accept liability for any consequences of falsification,
imitation or other irregularities that are not noticed during
the identification check. In the event of any doubt as to the
validity of a signature, the Bank reserves the right to
suspend orders given by the Customer or his
representative until confirmation is received.
Orders must contain all details necessary for their proper
execution. They must indicate the direction of the
transaction (e.g. purchase or sale), the description or the
characteristics of the securities being traded, and the
amount. Any illegible or incomplete orders may be rejected
by the Bank, without any liability arising thereto as a
consequence thereof. This shall also apply when securities
or funds are received but cannot be allocated to an account
because of an error or insufficiently clear information
concerning the account.
Orders received without any price indication during market
opening hours will be executed at the market price or value
on continuous quotation markets, unless trading in such
markets is suspended. Orders received outside opening
hours will be executed within a reasonable timescale
following the opening of the market concerned. On unlisted
or OTC markets, orders without any price indication will be
executed within a reasonable timescale of receipt by the
Bank. Subject to the market rules, which will take
precedence in any event, orders may be executed solely
according to the possibilities resulting from the orders
pending processing by the market.
Moreover, any order transmitted for execution will be valid
until:
- the end of the trading day on which the order was given if
no maturity date is indicated,
- the maturity date set by the Customer if this date is before
the final working day of the calendar month in which the
order was given,
- the last working day of the calendar month in which the
order was given for any other order.
Article 8 - Taxation
The Customer is personally responsible for enquiring about
the application of tax legislation concerning him/her/it; the
Bank provides no information or advice in this respect. The
Customer must ensure compliance with his/her/its tax
obligations at all times.
The Customer is informed that instructions given by

telephone may be recorded using any means. The audio
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The Bank complies with its own obligations resulting from

international tax treaties to which the Principality of Monaco
is party. The Customer is responsible for remaining abreast
of any changes in this respect.
For the purposes of application of the Foreign Account Tax
Compliance Act (FATCA), the Customer authorises the
Bank to disclose information concerning him/her/it to the
United States tax authorities. The Customer also agrees to
allow CMB to debit withholding tax in the event he/she/it
fails to fulfil his/her/its obligations with regard to the filing of
returns with the said authorities.
The Customer undertakes to inform the Bank immediately
of any change in his/her/its affairs with regard to the
aforementioned regulations and international treaties.
Article 9 Termination
The account agreement may be terminated at any time,
without the need to state or explain the reason, by recorded
delivery letter with acknowledgement of receipt on the
initiative of the Customer or of the Bank, in particular in the
event of insolvency proceedings against the Customer or
payment incidents. Closure of the account shall take effect
one month after the Bank gives notice. The account may
also be closed in the event of the death of the Customer if
the Bank sees fit.
The Customer must inform the Bank of the name of the
institution to which his/her/its assets should be transferred
and the account number by supplying the IBAN or via any
other means. Failing that, the balance of the account will be
sent to the Customer by post or courier, at his/her/its
expense, in the form of a cheque payable to the Customer.
Closure of a cash account will result in closure of the
attached securities account, unless stipulated otherwise.
Closure of the account shall, unless stipulated otherwise,
result in the acceleration of payment for all obligations not
due. The Bank will be entitled to merge all the components
of the current account and, if it so wishes, to debit all
transactions in progress, including currency transactions
after conversion into euros.
In the event of death of the Customer, if the Bank decides
not to close the account, and if the assets credited to the
account form part of an estate devolved to one or more
heirs or legatees domiciled abroad, the Bank will not
release any such assets until it has been presented with a
certificate issued by the Monegasque official responsible for
collection of registration and other duties (Receveur de
lenregistrement), recording either that the transfer duties
following death have been paid or are not due, all in
accordance with the provisions of Law No. 995 of 24 June
1977.
In particular, the Bank may debit assets from the account,

matured or not, in its possession on the day of closure and
bearing the signature of the Customer on any basis
whatsoever, while retaining the ownership of the assets and
receivables and the benefit of all guarantees. Likewise, the
amount of any guarantee or collateral commitments made
by the Bank on behalf of the Customer may, if the Bank
sees fit, be debited from his/her/its account and be retained
by the Bank to ensure the payment of any sums that it may
have to disburse to honour such commitments.
If the funds are insufficient or non-existent, the Customer
must make up for the shortfall in order to cover all actual or
potential commitments of the Bank. The final balance will
not be determined until all transactions have been settled
and the current commitments have extinguished. Any debit
balance due by the Customer will be payable immediately,
without any prior formal notice, and will automatically bear
interest at the rate specified in the general pricing
conditions until payment in full. This interest will be
compounded if it is due for a whole year.
The same rules will apply to any transactions that the Bank
has not reversed. Any payment will first be set off against
any interest, commission and incidentals due since closure.
Article 10 Confidentiality and banking secrecy
The banking relationship will be subject to banking secrecy
in accordance with Article L.511-33 of the French Monetary
and Financial Code and the penalties provided in Article
308 of the Monegasque Criminal Code.
The Customer releases the Bank from its banking secrecy
obligation and expressly accepts that personal information
concerning him/her may be disclosed to:
- service providers and subcontractors performing certain
tasks within or outside the Principality and on behalf of the
Bank for the purposes described in Article 12, paragraph 3,
below;
- companies within the CMB group in the event of the
pooling of resources or in order to present products or
services offered by these companies, as listed in Article 12,
paragraph 3;
- authorities such as the tax authorities or the Principality's
police force;
- supervisory authorities, in order to comply with the Bank's
legal or regulatory obligations, in particular within the
framework of the consolidated supervision to which it is
subject.
Article 11 The banks liability
The Bank's liability is strictly limited to keeping the
Customer's account and executing his/her/its instructions
with regard to the receipt and transmission of orders on the
markets, with the exception of OTC transactions.
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The Bank does not have any obligation to provide

information, issue warnings or provide the Customer with
advice of any kind, irrespective of the type of transactions
he/she/it instructs the Bank to carry out. The Customer is
free to obtain information, seek an opinion or obtain advice
before taking any decision with regard to his/her/its assets.
The Customer has a duty to find out about the
corresponding risks and investment techniques, including in
particular with regard to futures, structured instruments and
complex instruments, how the markets operate, the
products in which he/she/it wishes to invest, the quality of
the issuers, the published financial information and
currency risks. Transactions executed on a market are
governed by that market's rules, which are binding on all
parties, or by the agreements entered into by and between
the parties to OTC transactions.
The Customer releases the Bank from any obligation to
provide him/her with advice or warnings concerning credit
facilities; he/she/it also releases it from all liability in the
event the facilities are not suitable in view of his/her/its
needs, his/her/its ability to make repayments, the type of
financing or the resulting risk of indebtedness.
Any suit filed by the Customer against the Bank,
irrespective of its purpose, must be duly and properly filed
within two years of the underlying events, on penalty of
foreclosure.
Article 12 Processing of personal information
At the time of signature of this agreement and during its
performance, the Bank will be required to collect, record
and use personal information concerning the Customer.
The Customer expressly accepts that his/her/its telephone
conversations with the Bank may be recorded, depending
on the type of financial activities discussed.
The personal information collected by the Bank is essential
for the proper performance of this agreement and all
transactions between the Bank and the Customer. The
Customer accepts that personal information may be
collected, recorded and processed by the Bank or by any
third-party firm if the Bank subcontracts, delegates or
outsources its work.
Personal information will primarily be used by the Bank, as
the data-processing manager, for the following purposes:
internal management, accounting management, including
management of means of payment, the granting of credit
facilities, execution of instructions and orders relating to any
financial instruments, financial activities, canvassing,
marketing action, internal statistics, risk assessment,
security and protection against payment defaults and fraud,
debt collection, the fight against money laundering, the
financing of terrorism and corruption, and compliance with
legal and regulatory obligations.
For certain transactions the personal information disclosed

by the Customer for the above purposes may be
transferred to another country within the European Union or
outside the European Union. Rules to guarantee the
protection and security of information when it is transferred
to a country outside the European Union have been
defined.
Personal information may be disclosed when an order to do
so is received from any official body or administrative or
judicial authority, in particular in connection with the fight
against money laundering, the financing of terrorism and
corruption. When funds are transferred certain personal
information relating to the Customer will be transferred to
the transfer beneficiarys bank.
The Customer is entitled to access, correct or object to
personal information in accordance with the terms and
conditions provided by Law 1.353 of 4 December 2008,
amending Law 1.165 of 23 December 1993 on personal
data protection. The Customer can obtain a copy of his/her
personal information and, if necessary, correct it, by writing
to the Legal Department, CMB, 23 Avenue de la Costa,
98000, Monaco.
II. OPERATION OF CASH ACCOUNTS
Article 13 Current account agreement
All transactions between the Customer and the Bank take
place within a current account relationship operating via
reciprocal remissions constituting simple credit or debit
items, the sum of which will provide a single balance at any
given moment in time. Given its general nature and subject
to the provisions of paragraphs 2 and 3 below, this current
account will encompass all the relations and obligations
existing between the Customer and the Bank.
Consequently, if several accounts have already been
opened or are subsequently opened in the name(s) of the
Customer, these accounts, whether current or term
accounts, denominated in euros or foreign currencies, will
constitute, unless specifically agreed otherwise,
components of this single current account even if they
operate under different conditions, names or numbers. The
Bank may consolidate them at any time in order to produce
a single overall balance.
Savings accounts and business accounts subject to specific
regulations, as well as any unpaid bills or cheques borne by
the Bank, are excluded from the current account. Entries for
such transactions will be made in special accounts,
although the Bank reserves the right to itemise them and to
debit them from the current account.
Securities accounts are also excluded from the current
account relationship because of the nature of the assets
recorded therein and only the cash sub-accounts of
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securities accounts will be consolidated in the current

account.
For all means of payment remitted for collection, the Bank
reserves the right to credit the account only after receiving
confirmation of effective payment, in particular if they are
payable anywhere other than in the Principality of Monaco.
Article 14 Issuance of payment instruments
The opening of the account may be accompanied by the
issuing of cheque books and credit or payment cards,
except for indivisible accounts and bare ownership
accounts (and unless agreed otherwise). However, the
Bank will be free at all times to refuse to issue such
payment instruments and demand the return of the cheque
forms and credit or payment cards issued even if the
Customer has not been banned from issuing cheques. The
Customer may not use cheque forms other than those
printed and issued by the Bank.
Unless instructed otherwise, cheque books and credit cards
will be held available for collection by the Customer in one
of the Banks branches.
The Customer releases the Bank from any liability in the
event of payment of any cheque being stopped by the
drawer irrespective of the cause and, likewise, holds the
Bank harmless against any loss or damage caused to third
parties, especially the cheque beneficiary, in the event of
an unjustified or improper stop on a cheque. These
provisions do not affect the Banks right to refuse to stop
payment of any cheque.
In all cases, the legal costs that may by incurred by the
Bank following a stop on a cheque shall be borne by the
Customer, even if the Bank, which shall never be obliged to
start proceedings, did so on its own initiative.
Article 15 Execution of payment orders cash
withdrawals
15.1. The Customer authorises the Bank to execute all
payment orders regardless of the instrument used, provided
that the signature matches in appearance the specimen(s)
provided when signing this present agreement or
subsequently. The Customer releases the Bank from any
liability in this respect.
Before issuing a cheque and, more generally, executing
any transaction resulting in a debit entry, the Customer
must check that the account contains sufficient available
funds, which may result from an overdraft provided that it
has been expressly granted by the Bank.
Otherwise, the Customer risks refusal of a payment by the
Bank without prior notice and the application of the law and
regulations concerning cheques returned for insufficient
funds.
Debits carried out in accordance with this Article will also

give rise, where necessary, to the payment of the
commissions stipulated in the general pricing conditions.
15.2. The Bank may, at any time and without notice, fix the
terms and authorised amounts of cash withdrawals, for
technical or other reasons, and require the Customer to
furnish appropriate documents to support its situation with
regard to its own obligations.
Article 16 Interest on deposits
The Bank will inform the Customer of the interest terms for
current and term deposits, in each currency, unless the
agreement specifically provides otherwise. The said terms
are liable to vary, subject to eight days notice. The
Customers attention is drawn to the fact that the Bank may
debit negative interest from the assets in the account,
notably as a result the policy of a currencys issuing
authority; in this case, the negative interest rate shall be
applied without advance notice to the sums deposited in the
currency of the central bank.
Article 17 Protests in the event of cheques being
rejected
Protests for cheques and bills drawn on third parties and
remitted by the Customer for collection on any basis
whatsoever will be drawn up solely at the prior and express
request of the latter, although the Bank reserves the right to
take any such initiative on its own if it sees fit.
Given that postal timescales and the period needed to draw
up protests make it difficult to meet the statutory
timescales, the Bank may not be subject to forfeiture or be
held liable on this basis. The same will apply in the event of
belated presentation of cheques or bills or the belated
dispatch of any notice of payment or refusal.
Article 18 Lending terms
Unless agreed otherwise and unless recorded in a subaccount for outstanding payments, credit facilities granted
by the Bank to the Customer will be a component of the
current account. Such credit facilities and, more generally,
any account overdraft, irrespective of the cause, including
those resulting from either a tolerance by the Bank or the
application of value dates, will be subject to the pricing
conditions agreed between the Bank and the Customer or,
in the absence of specific conditions, to the general pricing
conditions applicable at the time and, more specifically, the
Banks base rate.
The interest rate is calculated on the basis of the Banks
base rate. Therefore, any increase or reduction in the
Banks base rate will immediately apply to agreements
existing between the Bank and the Customer, regardless of
the nature of the agreement concerned (account overdraft,
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credit facility, loan, etc.). The Customer is informed of

changes in the Banks base rate (resulting essentially from
changes in the market rate to which the Bank refers) via
any means. Unless agreed otherwise, interest will be
calculated at the end of each calendar quarter. It will be
debited from the account in the following month, according
to the value date, and will be compounded ipso jure.
If, due to legal or regulatory provisions, or directives from a
banking authority or tax authority, the Bank has to bear
additional costs relating to the granted credit facility, in
particular as a result of setting up a reserve corresponding
to the amount of the facility, the parties shall adjust the
conditions in such a way as to compensate the Bank for
any new charges that it may have incurred therefrom.
Article 19 Repayment of credit facilities
19.1. In addition to the statutory cases of early repayment,
the Bank may, if its deems necessary, terminate, ipso jure,
any credit facility that it has granted or any overdraft that it
has tolerated without having to first serve a formal notice or
carry out any other formalities, and may refuse any further
use or drawdown in the following cases:
- if the Customer fails to make any of the payments
necessary to reduce the debit balance on the account to
the authorised limit, on their due dates;
- if the Customer or, where appropriate, a guarantor, fails to
fulfil any of his/her/its commitments;
- if the interest and commissions become liable for any tax
or levy that was not applicable when the credit facility or
overdraft was granted, unless the Customer pays this tax or
levy so that the Bank does not have to bear any payment in
this respect;
- if the guarantees granted to the Bank are not at the
agreed ranking or if any of these guarantees is reduced or
eliminated including in the event of the sale, for any reason
whatsoever, compulsory purchase or total or partial
destruction of the assets provided as security, or if they are
not insured or are inadequately insured;
- in the event the Customer or, where appropriate, a
guarantor, ceases his/her/its business operations;
- in the event of payment default;
- in the event of the merger, demerger, dissolution,
voluntary or court-ordered liquidation of the Customer if it is
a legal entity, or in the event of the death of the Customer if
he/she is a natural person;
- in the event of a change in control of the Customer if it is a
legal entity;
- in the event of the merger, demerger, dissolution or, more
generally, any corporate bankruptcy proceedings [or]
proceedings for the settlement of liabilities involving any
legal entity that is acting as a guarantor, or in the event of
the death of the guarantor if he/she is a natural person, or
in the event the guarantor gives notice of termination of
his/her/its commitment.
19.2. However, fixed-term credit facilities other than

occasional ones granted on a professional basis may only
be reduced or interrupted if written notice is given by
recorded delivery letter with acknowledgement of receipt
and upon expiry of a notice period. Unless agreed
otherwise, such notice period will be thirty days for discount
loans or factoring arrangements for trade receivables, and
sixty days for other credit facilities. In all cases, the notice
period will run from the date notice is sent to the address
given by the Customer for receipt of account statements.
However, the Bank will not be obliged to give any notice in
the event of:
- inappropriate conduct by the Customer or if his/her/its
situation is irremediably compromised;
- disappearance or reduction of one of the guarantees
produced to secure the debit balance or any other debt
liable to be incorporated therein, including in the event of a
third party revoking its commitment to act as guarantor.
In addition to the cases referred to above, and unless
agreed otherwise, any occasional credit or overdraft facility
that the Bank may tolerate must be reimbursed immediately
by the Customer, which/who may not demand that it be
maintained.
Article 20 Offsetting clause
Should the Customer hold other specific accounts such as
savings accounts outside the scope of the current account
agreement and if there is a debit balance on the current
account, the parties agree that any tolerance by the Bank of
any such debit will be on the basis of the existence of such
other accounts. The Bank will be entitled, unilaterally and
without advance notice, as irrevocably accepted by the
Customer, to set off receivables and debts against each
other on the basis of the close connection between such
credit balances and the debit balance on the current
account except in the event of any specific regulations
applying to accounts.
Article 21 SEPA
21.1. Single European Payment Area direct debits (SDDs)
concern transactions processed within the SEPA according
to the rules laid down by the European Payments Council
(EPC). SDDs may be debited from or credited to the
Customer. The provisions below cover both situations.
21.1.1. Debtors must authorise direct debits from their
accounts on presentation of orders issued by creditors by
means of a written mandate passed on via the creditors
bank.
The mandate is drawn up by the debtor on a standard form
including all the references required by the EPC. Each
direct debit mandate must be identified by a unique
reference number supplied by the creditor and by the
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latters SEPA identification number. Any mandate not

containing all the necessary references and not signed by
the debtor will not be validly granted to the debtors bank,
which will not be obliged to implement it.
A direct debit mandate may cover an individual transaction
or recurring transactions. In the former case, or if the
transaction is the first in a series, the interbank presentation
timescale for the direct debit is five banking days, while in
the latter case the timescale is two working days starting
with the second transaction in the series.
If a direct debit service previously accepted by the debtor is
replaced by another direct debit service on the creditors
initiative, the direct debit mandate and authorisation and
any objections raised by the debtor before the new service
takes effect will remain valid. Waiving the provisions of
Article 1188 of the Civil Code, the parties accept that the
existence and validity of the direct debit mandate and
authorisation will be established by the lack of any
challenge by the account holder to a direct debit in favour of
the same creditor or a successor thereof.
Direct debit mandates may be withdrawn at any time upon
written instructions given to the debtors bank, although any
such withdrawal will be valid solely for orders that have not
yet been executed.
21.1.2. The rules applicable to SDDs are defined by the
EPCs rulebooks. A French version of the relevant articles
is available for consultation on the site of the Association
Mongasque des Activits Financires (www.amaf.mc).
21.1.3. The attention of the Customer is drawn to the fact
that the debtors bank may reject direct debits before
payment is made, either on its own initiative or at the
debtors request. Moreover, direct debits may be refunded
to the creditors bank on the initiative of the debtors bank
within a period of five banking days of the payment date or
on request by the debtor presented within eight weeks of
the date when the debtors account was debited or, if the
debtor challenges payment on the grounds that the direct
debit was not authorised, within thirteen months.
21.2. SEPA credit transfers (SCTs) are payment
instruments in euros for transferring funds between the
accounts of issuers and beneficiaries kept by banks based
in the SEPA.
Payment instructions must be expressed solely in euros
without any limitation on the amount. The beneficiarys
bank account is identified by the BIC and IBAN supplied to
the issuer, who/which may give a reference to the
transaction and the reason for the payment, which may not
comprise more than 140 characters. The timescale for
executing an SCT may not exceed three banking days (one
banking day as from 1st January 2012) from the date of
acceptance of the order by the issuers bank. If the
beneficiarys account is kept in a currency other than euros,

the beneficiarys bank must convert the transfer on receipt.
The beneficiarys bank undertakes to inform the Customer
of the availability of the funds by the end of the execution
timescale at the latest. The information provided must
include the amount received and the reason for the transfer
or the references provided by the issuer in the SCT order.
III. OPERATION OF THE SECURITIES ACCOUNTS
Article 22 Securities recorded in the account
Any request by the Customer for securities or fund shares
or units to which that he/she/it has subscribed to be
recorded in his/her/its account will entail a recognition that
he/she/it has previously consulted all the funds
documentation as obtained from the promoter, the
management company or the depositary of the funds
assets, thereby also releasing the Bank from any
information or warning obligation in this respect.
Securities and financial instruments as defined by Article 2,
paragraph 13, of the Commercial Code currently or
subsequently deposited by the Customer with the Bank will
be recorded in one or more securities account(s) opened
for this purpose subject to the application of Article 23
below, although the Bank reserves the right, if it sees fit, to
refuse to record securities issued and kept abroad.
The Bank reserves the right to show other movable assets
deposited with it by the Customer in the account statement
under a specific heading.
Likewise, if expressly requested by the Customer, the Bank
may show on the statement partnership shares and assets
that do not classify as transferable securities or certificates
representing assets directly registered as belonging to
him/her/it in the account statement. The Bank may not be
held liable in any way for such entries, particularly with
respect to the rules governing securities ownership or the
value thereof, if any.
The Bank will certify receipt of deposited stocks and
securities by sending the Customer a list of them, although
this list does not constitute representation of the deposited
stocks and securities under any circumstances; it is
provided solely as an indication of the possible value of the
deposited securities. The Customer will have one month
from the dispatch of this list to make any claims, in the
absence of which the list will be deemed to have been
definitively approved. A transaction note replaces the
deposit list for purchases and sales of stocks and securities
made via the Bank by the Customer, who has forty-eight
hours from the dispatch of the note, as referred to in Article
3.1., to make any claims, in the absence of which the note
will be deemed to have been definitively approved.
At the end of each year the Bank will send a statement of
the deposited securities to the Customer, who will have one
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month, in accordance with Article 3.1., in the absence of

which the statement will be deemed to have been
definitively approved.
Article 23 Custody of securities custody fees
The Bank generally undertakes to comply with the market
rules on returning securities for all the securities in its
custody.
The Bank reserves the right to consolidate deposited stocks
and securities and place them in the custody of other Bank
entities or branches or of foreign correspondents chosen by
the Bank.
The Bank entrusts securities physically kept abroad to its
correspondent in the relevant country, in its own name but
on behalf of the Customer. Such correspondents will be
authorised to keep and administer them according to the
normal rules applying in their markets. Such securities will
be subject, ipso jure, to all the statutory requirements of the
country where they are deposited.
The Bank receives a quarterly commission, debited from
the account at the end of each quarter, for the custody of
the stocks and securities specified herein. This commission
will be calculated on the basis of the average value of the
portfolio in the previous quarter, as determined eight
working days before the end of each of the three previous
months. The rate applied by the Bank is indicated in the
general pricing conditions.
Article 24 Mandate to administer deposited stocks
and securities
The Customer authorises the Bank, which accepts, to
administer the portfolio of securities that he/she/it deposits
with it. The securities numbers will be communicated to the
Customer solely on his/her/its express request.
By virtue of this mandate, the Bank will carry out
administrative acts on behalf of the Customer and, more
specifically, will collect all income.
Acts of disposal, including the exercise of rights to capital
increases, and securities or cash settlements, will be
carried out on the specific instructions of the Customer,
although the Bank may claim the principals tacit
acceptance for certain transactions in accordance with
common practice.
In the event of the insolvency of an issuer, irrespective of
the type of insolvency proceedings initiated to settle its
liabilities, the mandate to administer stocks and securities
deposited with the Bank entitles the Bank to represent the
Customer with regard to the insolvency authorities, to
submit any claim evidencing such stocks in securities, to
negotiate and define the terms and conditions of collection,
and to attend and vote at meetings of creditors. However,
this power of representation is discretionary, and the Bank

may choose not to exercise it without any need to provide
the Customer with explanations. If it decides to exercise
such right, it shall inform the Customer before taking any
action. The Customer henceforth undertakes not to hold the
Bank liable with regard to the performance of this specific
mandate to represent its interests in any issuer's insolvency
proceedings; likewise, the Customer agrees to pay all
taxes, levies, commissions, costs and, in particular, all
lawyers' fees incurred in application of this paragraph; the
corresponding amounts shall be debited from the
Customer's account by the Bank.
Article 25 Third party information
The Customer expressly authorises the Bank to
communicate any information required by a central
custodian or, by virtue of a clause of the articles of
association or a statutory or regulatory provision, to the
legal entity that has issued the securities recorded in the
account, the market authorities, the clearing houses and all
players involved in the market.
This rule will also apply with regard to regulations
applicable to any sub-depositary, in particular in respect of
the fight against money laundering, the financing of
terrorism and corruption.
This authorisation extends to all transactions concerning
derivative financial instruments as also provided for in
Article 7.1 hereof.
Article 26 Income collection
Income collected by the Bank on the securities recorded in
the account will be credited, depending on the nature
thereof, in the current account or securities account once
the Bank has received the corresponding monies or
securities.
Article 27 Availability of securities deposit term
The parties agree that securities will be deposited for an
indefinite term. The Customer may dispose of his/her/its
securities at any time subject to cases of contractual,
judicial or legal unavailability to which they may be subject
and subject to the provisions of Article 32 below.
Article 28 Management mandate
If the account holder has granted the Bank an exclusive
management mandate, the provisions thereof will
supplement the present agreement. In the event of any
discrepancy, the provisions of the management mandate
will take precedence, although only in this case.
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Article 29 Future and options transactions
Article 31 Customer information
Future transactions may be executed by the Customer on

his/her/its sole responsibility. The Bank reserves the right to
make them conditional upon its prior agreement at any
time.
The Bank will inform the Customer, simply by notifying

him/her/it, if time permits, of all transactions to which
securities give rise, insofar as the Bank is aware thereof, in
order to enable the Customer to exercise rights attached to
the securities recorded in the account each time that
his/her/its cooperation is required. The information
communicated to the Customer will be limited to events
affecting rights attached to securities, excluding events
affecting the relevant issuing companys corporate affairs or
solvency.
A transaction note will be sent to the Customer for each
order executed. The Bank will also send the Customer an
annual statement of his/her/its securities.
The Bank particularly draws the attention of the Customer

to the uncertainty of transactions on futures and option
markets and of the extent of the risks entailed.
Upon the present agreement being signed, the Bank will
give an information notice about the general risks of
investing in financial instruments to the Customer, who
expressly acknowledges this.
Article 30 Cover and guarantees
The Customer undertakes to comply with the market rules
on minimum guarantees and cover in accordance with the
applicable regulations.
The Customer allocates all securities and cash recorded in
accounts with the Bank to cover his/her/its securities
transactions carried out via the Bank. At any time, the Bank
may, if it so wishes, transfer funds and/or securities
corresponding to the cover for any transaction in progress
from any account with a credit balance to a special blocked
account.
Moreover, the Bank may at any time demand the provision
of full cover in cash or securities and refuse to execute any
order exceeding the amount of cover demanded. Should
the cover for the commitments made by the Customer
prove insufficient and should the Customer fail to provide
such cover within one stock exchange business day of the
request presented to him/her/it by the Bank, the latter
reserves the right to liquidate the Customers commitments.
Consequently, the Bank is entitled to buy back securities
sold and not delivered or resell securities purchased and
not paid for, at the Customers expense and risk, and debit
the corresponding amounts from his/her/its account, in
which case the Bank may, at its convenience and without
notice, sell all securities still in the Customer account in
order to settle his/her/its/debit positions, as all the
Customers securities and cash are allocated, in advance,
for the payment of all of his/her/its commitments towards
the Bank for the transactions executed within the
framework of the present agreement.
The Customer unreservedly accepts that the cover rules
referred to in the present article are quoted in the interest of
the market and the account manager and undertakes not to
take advantage thereof for his/her/its own benefit or to
claim insufficient cover under any circumstances.
Information shall be sent to the Customers personal

address or the postal address indicated or, in the case of a
collective account, solely to the common postal address
indicated by the joint holders.
The Customer has forty-eight hours as mentioned in Article
3.1. in which to make any claims or comments, in the
absence of which the information will be deemed to have
been approved.
Article 32 Closing the securities account
The closure of the securities account will put an end to any
transactions normally conducted via the account except for
transactions in the process of being executed on the day of
closure that have not been definitively settled. Accordingly,
the Bank can retain all or some of the securities recorded in
the account until such transactions have been settled in
order to cover them, subject to the effect of any sureties in
the Banks favour.
These rules also apply for the purposes of settling the
Customers positions with respect to the Bank and covering
the debit balance, in the event of custody of financial
futures or fund shares or units when redemption requests
are processed at a later date.
If the Customer fails to give sufficiently complete transfer
instructions within one month of notice of closure of the
securities account, the Customer expressly authorises the
Bank to sell all the financial instruments recorded in the
account and releases it from all liability in connection
therewith. Non-negotiable instruments not transferred on
the Customers instructions will be recorded in an internal
account with the Bank pending a transfer order; this
situation will not have the effect of prolonging the account
relationship between the parties. The non-transferability of
the securities or their illiquidity will not affect the rules for
closing the account. The Customer waives reliance on any
rights other than those resulting from any proceeds from
the redemption of the non-transferable instruments, which
may be carried out by the Bank.
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In the event of the securities account being closed for any

reason whatsoever, outstanding fees will be deducted
according to the general pricing conditions in force at the
time.
Article 33 General pledge of funds and/or financial
instruments
The parties expressly agree that the purpose of the
provisions of Articles 33-1 to 33-10 below is to enforce a
general pledge granted by the Customer in favour of the
Bank. In the provisions concerning this pledge, the
Customer is referred to as the Pledgor.
The purpose of this general pledge of funds and/or financial
instruments in favour of the Bank is to secure all of the
customers commitments, notably in his/her/its capacity as
debtor and/or guarantor.
33.1. Pursuant to the provisions of paragraphs 13 and 59 to
61-1 of Article 2 of the Commercial Code (Code de
commerce) and the provisions of Sovereign Order No.
14309 of 28 December 1999 as amended by Sovereign
Order No. 1770 of 28 August 2008, to which this pledge is
subject, the Pledgor expressly agrees to pledge all assets
in the form of financial instruments, including structured
products (referred to hereinafter as structured products)
combining several financial instruments, or funds, which are
or will be credited to the securities accounts and cash
accounts opened in its name in the Banks books, under the
aforementioned root number, without it being necessary to
itemise or specify the scope of the pledge in more detail, in
accordance with Article 59-1 of the Commercial Code.
The parties expressly agree that the amount of the secured
debt will be finally determined on the date the pledge is
sold.
The Pledgor represents that the aforementioned assets are
in no way inalienable for whatsoever reason and
undertakes to ensure that this remains the case throughout
the entire term of this agreement; in the event of an
omission or false representation, the Bank is authorised to
demand the early repayment of all credit facilities set up for
the Pledgors benefit.
33.2.The parties agree that the purpose of the pledge
granted in application of the provisions of Article 33-1 is to
secure all the commitments, formally recorded or otherwise,
both present and future, of the Pledgor with regard to the
Bank, whatsoever the nature and purpose thereof, including
all forms of loan and all signed commitments (security
deposits, signatures guaranteeing bills, independent
guarantees, etc.) subscribed by the Bank and/or subscribed
by the Pledgor in favour of the Bank, both for all sums due
in payment of principal amounts, interest, fees, ancillary
charges, the penalty clause and termination fees and, in
general, for all sums due to the Bank for whatsoever reason
and for any account under any root number whatsoever

open in the Banks books.
The Pledgor acknowledges that both the purchase and
sale of foreign currencies, derivative products,
regardless of the nature of the underlying asset, and
structured products constitute a commitment within
the meaning of this article.
The Pledgor accepts that this pledge entails the
dispossession in favour of the Bank, with no further
formality being required, of all the assets in the form of
funds and financial instruments comprising the scope of the
pledge hereby agreed upon, the amount of which will be
determined precisely if and when the said pledge is sold.
33.3.1. In the event that the Bank has not been granted a
mandate to manage the assets, the Pledger will manage
the pledged assets held in the accounts open in the
depositary Banks books under the aforementioned root
number under its sole responsibility, which the Bank
accepts under the express provision that the total weighted
value of the assets (as defined in Article 33-4) held
permanently in the aforementioned accounts is at least
equal to the minimum stipulated in Article 33-4 below.
The Pledgor will continue to exercise the voting rights
attached to the pledged securities notwithstanding this
pledge; he/she/it must, however, refrain from exercising
such rights in a manner liable to be contrary to the Banks
interests, in its capacity as pledgee creditor.
Likewise, the Pledgor retains its pecuniary rights over the
pledged assets and may notably receive dividends, interest,
premiums and other sums in addition to any amortisation or
redemption of the pledged securities, whatever the means
of payment thereof. These proceeds will be automatically
included in the scope of the pledge, unless the Bank
expressly and in writing agrees to grant an exception to this
rule.
The Pledgor may only dispose of the pledged assets with
the Banks express, prior consent, provided that such
consent or lack of consent is not liable to incur any liability
whatsoever for the Bank. Any arbitrage must maintain the
Minimum Weighted Value of the said pledged securities at
all times, in compliance with the provisions of Article 32-4
below.
All financial instruments and/or funds held in the
aforementioned accounts and any accounts that may
replace or complement them, notably following a sale,
purchase, exchange, split, reverse split, conversion, free
allotment, cash subscription or other, will be automatically
included scope of the pledge.
In the event that after signing this pledge, the Pledgor
wishes to grant the Bank a mandate to manage the pledged
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assets, the parties expressly agree that the resulting

change in root number, indicated in the management
mandate agreement signed by the Pledgor, will in no way
modify the validity or effects of this pledge, and the assets
in the form of financial instruments and/or funds held in the
securities and cash accounts open under this new root
number will automatically remain pledged in favour of the
Bank. The same shall apply to any subsequent transfer of
the pledged assets to an ordinary root number or another
root number in order to identify the assets covered by the
management mandate.
33.3.2. In the event that the Bank has been granted a
mandate to manage the assets, the Pledgor may under no
circumstances rely on the Banks management of the
pledged portfolio to avoid the obligations arising from this
pledge. In particular, should the Bank fail to collect
dividends or interest, monitor calls for funds, exchange
securities, satisfy subscription or conversion rights, prizes
and premiums, etc., or in the event that the results of its
management are not satisfactory, neither the validity nor
the effectiveness of the pledge will be affected.
In the event that after signing this pledge, the Pledgor
wishes to end the asset management mandate and grant
another asset management mandate to the Bank and/or
manage the pledged assets directly and under its sole
responsibility, the parties expressly agree that the resulting
change in root number indicated, if applicable, in the new
contract or in any other instruction by the Pledgor, will in no
way modify the validity or effects of this pledge, and the
assets in the form of financial instruments and/or funds held
in the securities and cash accounts open under this new
root number will automatically remain pledged in favour of
the Bank.
33.4. The Pledgor irrevocably undertakes to complete the
pledge in such a manner that the weighted value of the
financial instruments and pledged sums recorded in the
aforementioned accounts are at all times equal to at least
one hundred per cent (100%) of the amount of its
commitments towards the Bank based on the Minimum
Weighted Value.
To this end, the Weighted Value of the pledged assets is
determined by applying to the market value of the said
financial instruments and pledged sums the weighting
percentages in effect at the Bank as defined in the
weightings for pledged portfolios table provided on the
signing hereof; the Pledgor represents that he/she/it has
expressly familiarised himself/herself/itself with and
unreservedly accepts the said weighting applying to the
various classes of pledged assets.
The other types of financial instruments not mentioned in
the weightings for pledged portfolios table will not be
taken into account for the calculation of the Weighted Value
of the pledged assets. Due to the volatility of the financial
markets and the liquidity risks to which the portfolio of

pledged securities is exposed, the Pledgor irrevocably and
unconditionally accepts that the weighting rates for each
financial instrument line may be modified by the Bank; the
Bank will inform the Pledgor before implementing this
modification, specifying the criteria it has adopted in
connection with developments in the financial markets.
In addition and except where the assets are in the form of
term deposits in the currency of the commitment or where a
contractual provision exists to the contrary, the total market
value of the pledged financial instruments and funds may
under no circumstances be less than one hundred and
twenty per cent (120%) of the amount of the Pledgors
commitments.
Should the Pledgor fail to maintain the minimum weighted
value and/or this minimum cover, the Bank is expressly
authorised to demand early repayment of the receivable (or
receivables) it holds over the principal debtor and to sell the
pledged assets, two (2) working days after sending formal
notice to remedy the situation by recorded delivery letter
with acknowledgement of receipt to the Pledgors home
address or, if applicable, address for service, remaining
without effect.
Lastly, it should be noted that the financial terms
applied to the Debtors commitment have been
determined notably in view of the nature of the pledged
assets. Accordingly, in the case of funds deposited in
sight accounts or invested in term deposits in euros (or
in the currency of the commitments), such assets must
remain in sight accounts or invested in term deposits
in euros or in the currency of the secured
commitments until full repayment of the commitments
of the Pledgor or, if the latter is a third party, the
principal debtor.
Should the Pledgor wish to modify all or part of the
composition of the pledged assets, he/she/it must seek
the Banks express consent thereto prior to any
modification. In the absence of the Banks express
consent, no modification will be possible. Should the
Bank grant its consent, the Pledgor hereby
acknowledges and accepts that such modification will
be liable to result in changes to the financial terms of
the secured commitments.
33.5.The Bank may exercise its lien over the pledged
assets until the Pledgor has honoured its commitments in
full, in any way whatsoever and until the final release of the
Pledgor from its commitments, issued and signed by the
Bank.
In the event that the pledge is sold in full or in part, for
whatsoever reason and notably for default on payment by a
due date, the creditor may, after the expiration of two days
from the sending of formal notice to pay by recorded
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delivery letter with acknowledgement of receipt to the

Pledger at his/her home address or, if applicable, its
address for service, in the Principality of Monaco, as
indicated above, sell the pledge pursuant to the provisions
of Article 61-1 of the Commercial Code.
Accordingly, the Bank may, on its sole initiative, realise the
financial instruments of its choice and appropriate the
pledged financial instruments up to the amount of its
receivable, or offset its outstanding receivables against the
cash assets for which it is the depositary on behalf of the
Pledgor.
Under no circumstances will the Bank be responsible for
the price at which the pledge is sold.
As structured products are not traded on organised or
regulated markets, their realisation is therefore liable to be
enforced pursuant to the provisions of Article 61-1 1 of the
Commercial Code. Accordingly, by way of the following
provisions, the Pledgor and the Bank agree to seek a
system that derogates from that provided for in the second
paragraph of Article 61-1 1, while protecting their
respective investment interests in addition to the rights of
third parties.
In order to determine a price for the assignment of such
assets, the Pledgor grants the Bank a mandate to search
via three market operators, such as brokers,
establishments providing investment services or interbank
market agents, counterparties to the assignment of the
structured products included in the Pledgors portfolio.
These market operators shall be chosen by the Bank,
which shall take care to select third parties with no direct or
indirect links, whether capitalistic or other, with either of the
parties. The creditor pledgee, in its capacity as agent of the
Pledgor for the purpose of this assignment, shall inform the
latter by any appropriate means of the results of its search
for assignees. Accordingly, the Pledgor expressly grants
the Bank a mandate to assign the portion of structured
products necessary to pay the secured debt, according to
the best offer obtained from the market operators and at the
time of the Banks choosing. The Bank shall inform the
Pledgor of the conditions of the transaction promptly after
its completion. The depositary Bank incurs a debt to return
the proceeds from the assignment of the structured
products, which enter into the scope of the pledge.
This method of realisation preludes the possibility of an
illegal clause enabling the pledge to be sold other than as
provided for by law (clause de voie pare), as the
structured products cannot be assigned to the Bank.
The Pledgor waives any assertion of the Banks liability,
other than the information obligations, as a result of the
implementation of the foregoing provisions concerning the
assignment of structured products.
33.6. In the event that the financial instruments or funds

recorded in the accounts open in the Banks books in the
Pledgors name are done so in a different currency from
that of the receivables owed to the Bank, the exchange rate
applied to value the pledge when it is sold, attributed or
appropriated, shall be the interbank rate traded between
banks on the Paris foreign exchange market at 11 a.m.
(Paris time) on the date of the planned transaction or, if no
quotation is possible on such date, the next available
quotation.
In the event that the method for determining the exchange
rate provided for in the previous paragraph cannot be
implemented, the Pledgor accepts the application of a
substitute exchange rate defined by the prices applied by
the Bank in sales of the currencies concerned.
33.7. The Pledgor expressly acknowledges that simple
forbearance by the Bank of any kind (notably in the event of
insufficient cover or no sale of the pledge despite the
conditions for such a sale being met) shall never constitute
a waiver of any right whatsoever and that, accordingly, it
may be terminated immediately, without notice and without
incurring any form of liability for the Bank.
Further, this pledge does not replace the Banks rights; in
particular, it shall exist in addition to any other security
interests held by the Bank.
In addition and in the event that any whatsoever clause
herein becomes or is declared null and void, prohibited or
without effect, the validity of the other clauses herein shall
not be affected.
33.8. The costs connected with this pledge shall be borne
by the Pledgor and all costs, fees (even non-taxable fees),
taxes, duties or sundry charges borne by the Bank in order
to sell the pledge shall be debited from the proceeds of the
said sale.
Costs, commissions, taxes and charges of any kind owed
as a result of transactions involving the pledged assets
shall be debited, at the Banks discretion, from the pledged
or unpledged cash accounts open in the Pledgors name in
the Banks books.
33.9. In the event that the Pledgor has no legal address in
the Principality of Monaco, he/she/it expressly and
irrevocably gives his/her/its address for service in the
Principality of Monaco at the address of the Banks head
office, in accordance with the first Article of Sovereign
Order No. 14309 of 28 December 1999 as amended by
Sovereign Order No. 1770 of 28 August 2008 and all
correspondence shall be addressed to the Bank, C/O the
name or company name of the Pledgor.
The Pledgor shall hold the Bank harmless from and against
any liability in connection with the sending of
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correspondence to its address for service, it being specified

that in the event of a dispute, process shall be served at the
Pledgors address for service. In the event that the Pledgor
has a legal address in the Principality of Monaco at the time
of signing this pledge but ceases to dispose of such an
address before he/she/it it has honoured its commitments
to the Bank in full, he/she/it shall expressly and irrevocably
give its address for service at the Banks head office as
indicated on the first page of this agreement. (Article 1 of
Sovereign Order No. 14309 of 28 December 1999 as
amended by Sovereign Order No. 1770 of 28 August 2008)
and the provision set forth in the foregoing paragraphs shall
automatically apply.
The Pledgor further represents that the information
concerning it on the first page of this agreement is accurate
as at the signature date hereof and irrevocably undertakes
to inform the Bank of any whatsoever change thereto, by
recorded delivery letter with acknowledgement of receipt,
within 48 hours after taking effect.
33.10. In the event of the death of the Pledgor, if the latter
is a natural person, the Pledgors heirs and representatives
shall be jointly and severally liable for the performance
hereof.
The Customer acknowledges that he/she/it has read and

received the present general terms and conditions for
accounts and the general pledge of funds and/or financial
instruments, the information notice on the general risks of
investing in financial instruments, the general pricing
conditions and the table of weightings appended hereto.
Done in
On ...............................
In as many originals as there are parties, which by signing
this agreement acknowledge having each received one
original.
Signature of the Bank :
Signature of the Customer(s) :
Signed in the presence of :
Pledgors signature preceded by the words Bon pour

accord (good for agreement)
IV. CONTRACTUAL LANGUAGE

GOVERNING LAW
DISPUTES
Article 34 Contractual language

The Customer declares that it has elected to enter into the
agreement in a language other than French (notably in
English, Italian or German).
In the event of a dispute, exhibits shall be produced before
the Monegasque courts in French. The document, signed
by the parties, is a translation of the original text drawn up
in French, which shall constitute the reference version in
the event of legal proceedings, this latest version is placed
at the Customers disposal.
Article 35 Governing law jurisdiction
The present agreement, its appendices and the general
pledge of funds and/or financial instruments is governed by
Monegasque law. The courts of the Principality of Monaco
have sole jurisdiction to hear any disputes arising from the
interpretation or performance thereof.
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INFORMATION ABOUT THE GENERAL RISKS OF

INVESTING IN FINANCIAL INSTRUMENTS
The purpose of the present document is to give the Banks
customers general information about the risks of investing
in financial instruments, and about other significant aspects
of such investments and of the personalised asset
management services. However, it does not claim to be
comprehensive in this respect.
Before investing in a financial instrument, the investor must
obtain information from his/her/its intermediary about the
nature and risks of the transactions he/she/it is considering
carrying out and should not enter into any transaction
unless he/she/it fully understands the nature of the
transaction and the degree of risk entailed, in which case
he/she/it should assess whether the investment is
appropriate in terms of his/her/its overall assets and
liabilities, his/her/its investment objectives and his/her/its
experience of financial markets.
A. ASSESSING THE RISKS ARISING FROM INVESTING
IN FINANCIAL INSTRUMENTS
The following factors must be taken into account to assess
the risks arising from investing in financial instruments:
1) variability of the price of the financial instrument;
2) liquidity of the financial instrument;
3) the currency in which the financial instrument is
denominated;
4) Other factors generating general risks.
1- Price variability
The price of each financial instrument depends on many
factors and it may vary to a greater or lesser extent
depending on the type of instrument.
1.1- Equity securities and debt securities
First, a distinction must be made between equity securities
(mainly shares) and debt securities (mainly bonds and
certificates of deposit). For the sake of clarity, equity
securities are referred to hereafter as shares and debt
securities as bonds. This distinction is made between
shares and bonds due to the following:
a) By purchasing shares the investor becomes a
shareholder of the issuing company, participating fully in its
economic risk. Anyone who invests in shares is entitled to
receive an annual dividend drawn from the profits earned
during the reference period if the annual shareholders
meeting resolves to distribute such a dividend, although it
may not do so.
b) By purchasing bonds, the investor becomes a creditor of
the company or organisation that has issued them and is
entitled to receive interest at regular frequencies, as

specified by the issue rules and, on maturity, repayment of
the loaned capital.
All conditions being equal, a share is more risky than a
bond because the return due to the holder is more
dependent on the economic performance of the issuing
company. On the other hand, a bondholder risks not
receiving interest if the issuing company files for insolvency.
In such a case, the bondholders are entitled to a share of
the liquidation proceeds, along with the other creditors.
However, the process may be very lengthy and the losses
may be significant, while shareholders are rarely able to
recover any part of their investments.
1.2- Specific risk and general risk
The risk with both shares and bonds is both specific and
general. The specific risk depends on the issuers particular
characteristics (see 1.3 below) and may be reduced by
diversifying the portfolio, while the general risk is the price
variability of each share or bond, which depends on market
fluctuations and cannot be eliminated via diversification.
The general risk with shares traded on an organised market
arises from variations in the market. The general market
indexes give a useful indication of the evolution of market
risk.
The general risk with bonds (see 1.4 below) arises from
fluctuations in market interest rates, which affect bond
prices (and therefore returns), with an effect increasing with
the residual lifespan of the bond, i.e. the period remaining
until reimbursement (maturity).
1.3- Issuer risk
When investing in financial instruments it is essential to
assess the asset base of the issuing company and its
economic prospects with respect to the sectors in which it
operates.
Share prices reflect the average of market participants
expectations with regard to the issuing companys profits.
In the case of bonds, the risk of the issuing company or
financial institution being unable to pay the interest or
reimburse the loaned capital is expressed in the rate of
interest that the bond guarantees to the investor: the
greater the perceived issuer risk, the higher the interest rate
that the issuer must pay the investor.
To assess the return of a bond, the investor should check
the interest rates paid by the issuers perceived as least
risky, particularly the return on government bonds, referring
to issues with the same maturities, as a reference.
The risks of investing in financial instruments issued by
public and private sector issuers in emerging countries are
exacerbated by the political, legal and economic risks in
such countries.
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1.4- Interest risk
2- Liquidity
Bond prices vary according to market conditions. In order to

calculate their return, the investor must take into account
purchase price, not just the face value.
The face value determines the amount reimbursed by the
issuer when the bond matures. The price of a bond will only
get close to its reimbursement price if it is kept by the
investor until maturity.
The degree of liquidity of a financial instrument is assessed

according to how easy it is to sell it for cash.
This depends primarily on the characteristics of the market
on which the security is traded. All conditions being equal,
securities traded on organised markets are generally more
liquid than other securities. Since such markets account for
the majority of supply and demand for securities, the prices
observed on these markets are more reliable indicators of
the actual value of financial instruments. It should
nonetheless be borne in mind that disposing of securities
on organised markets that are hard to access, in particular
if they are in distant countries, may make it difficult for the
investor to liquidate his/her/its securities and he/she/it may
have to bear additional costs.
If the investor has to sell a bond ahead of maturity, the

actual return will not necessarily be the amount expected
when the bond was purchased.
In particular, for bonds paying fixed-rate interest, the longer
the remaining lifespan, the greater the exposure of the
bonds value to changes in rates. For example, for a zero
coupon bond (i.e. a fixed-rate bond paying interest via a
single payment at the end of the period) with a remaining
lifespan of ten years and a return of 10% per annum, an
increase of one percentage point in the market rates will
reduce the price of this bond by 8.6%.
It is therefore important for the investor, when assessing
the suitability of investing in this category of securities, to
check when he/she/it will need to realise the investment.
1.5- Effect of diversifying investments Undertakings
for collective investment
The specific risk of a particular financial instrument can be
reduced by diversifying, i.e. by spreading the investment
between several financial instruments.
Although diversification may prove costly and difficult to
implement for investors with limited assets, they can
achieve a high degree of diversification at competitive costs
by investing their assets in shares in undertakings for
collective investment (mutual funds [fonds communs de
placement] and variable capital investment companies
[SICAVs]). These vehicles invest the funds entrusted to
them by investors in the various types of securities
described in their investment notices or internal rules. In the
case of open-end mutual funds, for example, savers can
invest or divest by buying or selling fund units on the basis
of the theoretical unit net asset value (plus or minus the
agreed commissions). This value is obtained by dividing the
value of the funds total portfolio, calculated at market
prices, by the number of units in circulation.
However, it is important to emphasise that investments in
such financial instruments may prove risky due to the risk
characteristics of the underlying assets in which they invest
(e.g. funds that invest solely in securities issued by
companies operating in a particular sector or based in
specific countries) or due to insufficient diversification by
investors.
3- Currency
If a financial instrument is denominated in a currency other
than the investors reference currency, e.g. the euro, an
assessment of the overall investment risk must take into
account fluctuations in the exchange rate between the
reference currency and the foreign currency in which the
investment is denominated. The Investor must bear in mind
that rates of exchange with the currencies of many
countries, particularly developing countries, are highly
volatile and that changes in these rates may significantly
affect the result of the investment.
4- Other factors generating general risks
4.1- Deposited funds and securities
The investor must obtain information about the
mechanisms protecting the funds and securities deposited
for execution of transactions, particularly in the event of the
depositarys or the intermediarys insolvency.
Restrictions on taking possession of the deposited assets
may apply pursuant to the regulatory provisions applying to
the location of the depositarys head office and to [sic
translator] the powers or limitations of the administrators in
the event of the depositarys insolvency.
4.2- Commissions and other charges
Before initiating any transaction, the investor must make
detailed enquiries into the commission, expenses and
charges payable to the intermediary.
The investor must always consider that these will be
deducted from any profits on the transaction or will be
added to any losses sustained.
4.3- Transactions on foreign markets
Transactions on foreign markets, including those involving
financial instruments that are also traded on domestic
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markets, may expose the investor to additional risks

because the applicable regulations may over fewer
guarantees and less protection.
Before executing any transaction on such markets the
investor should find out about the relevant rules and take
into account the fact that in such cases the supervisory
authority may be unable to enforce the standards applying
on the territories where the transactions are executed. The
investor must therefore enquire about the applicable
standards and any steps that may be taken with regard to
these transactions.
4.4- Electronic trading systems
Many electronic trading and floor trading systems are
assisted by computer systems for order transmission
procedures (order routing) for transaction execution,
recording and clearing.
Computerised trading systems vary and, like all automated
procedures, may be subject to temporary shutdowns or
malfunctions.
Orders placed on markets that use computerised trading
systems may not be executed according to the terms
specified by the investor or not be executed at all in the
event of a system breakdown.
The ability of the investor to obtain compensation for the
losses caused directly or indirectly by such events may be
compromised by contractual limitations of the liability of the
system suppliers or the markets themselves. The investor
must make the relevant enquiries upfront.
4.5- Transactions executed outside organised markets
Intermediaries may execute transactions outside organised
markets. The intermediary to the investor may also act as
the Customers direct counterparty (i.e. trade on its own
account). For transactions outside organised markets, it
may prove difficult or even impossible to settle a position or
assess the actual value of the position or the risk exposure.
For these reasons, such transactions involve higher risks.
The rules applicable to such transactions may therefore be
different, providing the investor with less protection.
Before proceeding with this type of transaction, the investor
must obtain all essential information on the applicable rules
and the ensuing risks.
B. THE DEGREE OF RISK IN INVESTING IN
DERIVATIVES
Derivatives are characterised by a very high degree of risk
of such complexity that it is hard for the investor to assess
it. Hence, investors should only enter into derivative
transactions if they fully understand understood the nature
and degree of exposure to risk they entail.
Investors must realise that the complexity of these
instruments may lead them to execute unsuitable
transactions in terms of their expertise, needs or investment

strategy.
Trading in derivatives is not appropriate for many
investors.
The same risks arise from subscribing to fund shares or
units when the funds engage in leveraged transactions or
short selling.
Once the risk of the transaction has been assessed, the
investor should decide whether the investment is
appropriate in terms of his/her/its overall assets and
liabilities, his/her/its investment objectives and his/her/its
experience of derivatives markets.
C. THE RISKS OF INVESTING IN ALTERNATIVE
FUNDS
Certain investment funds known as alternative funds or
hedge funds adopt this type of investment approach. The
minimum investments are usually high and alternative
funds are not highly regulated or not regulated at all,
depending on their country. They may involve a very high
degree of risk. Alternative funds are often closed funds or at
least less liquid than other types of investment. They may
be opaque as to their functioning and some of them prefer
speculative investment methods.
Some of the risk characteristics of the most widespread
derivatives are described below.
1- Futures
1.1- Leverage
Futures transactions involve a high degree of risk. The
amount of the initial stake is small compared with the value
of the contracts, generating what is called leverage, which
means that a relatively small price movement will have a
proportionally greater effect on the capital exposed to these
products and this effect may be favourable or
unfavourable for the investor.
If movements in the market are unfavourable, the investor
may be obliged to pay more funds on very short notice in
order to keep the positions open. If the investor does not
make the additional payments demanded (known as
margin calls) by the notified deadline, the position may be
automatically liquidated with a loss and the investor may
also be liable for other debts related to these transactions.
All the funds paid initially and subsequently to maintain
positions open may be lost as a consequence.
1.2- Strategies to reduce risk
Certain types of transaction intended to limit losses to
predetermined maximum amounts may be ineffective
because of specific market conditions that make it
impossible to execute orders. Likewise, investment
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strategies using combinations of positions may entail the

same degree of risk as each position taken separately.
indices, etc.) corresponding to the exposure created when

the option was sold.
2- Options
3- Other factors creating risks applying to both futures

and options
Option transactions involve a high level of risk. Any investor

wishing to trade in options must first understand how the
contracts he/she/it is considering for investment operate.
By purchasing an option, an investor acquires the right to
purchase (call option) or sell (put option) a given quantity
of the underlying at a price set in advance (strike price)
until a certain date (maturity date). The price that the
investor pays for this right is called the premium.
By selling an option, an investor undertakes to sell (call
option) or buy (put option) the underlying at the strike
price until the maturity date irrespective of the market price.
Options underlyings may be:
- assets such as shares, bonds, commodities, precious
metals and financial instruments;
- reference rates such as exchange rates, interest rates
and indices;
- derivatives;
- derivative combinations.
2.1- Buying an option
Buying an option is a risky investment and there is a high
probability that the option will mature without any value, in
which case the investor loses all the money invested in
buying it plus the commissions.
After buying an option, the investor may maintain the
position until the maturity date or execute a transaction in
the opposite direction or, for American type options,
exercise it before maturity.
Exercising the option may entail a cash payment for the
difference or purchasing or delivering the underlying asset.
If the transaction concerns futures contracts, exercising the
option will imply taking a position in futures and assuming
the contractual obligations inherent in the obligation to
cover margin calls.
2.2- Selling an option
Selling an option is generally much more risky than buying
it because although the premium received for selling an
option is fixed the losses for the vendor are potentially
unlimited.
If the market price of the underlying asset changes
unfavourably, the vendor is obliged to adapt the margin
cover to maintain the position open. In the case of an
American type option, the vendor may be forced at any
time to settle the transaction in cash or to purchase or
deliver the underlying asset. If the sold option is for futures
contracts, the vendor will be taking a position on the futures
and will have to assume the obligations inherent in adapting
the margin cover. The vendors risk exposure can be
reduced by taking a position on the underlying (securities,
In addition to the general risk factors described in part A,

the investor must take into account the following:
3.1- Contractual terms and conditions
Investors must enquire about the terms and conditions of
the derivatives contracts in which they intend to trade,
paying particular attention to the conditions in which they
may be forced to deliver or receive futures contract
underlyings and, in the case of options, to exercise dates
and procedures.
In certain particular cases, the contractual conditions may
be modified by decision of the markets supervisory
authority or the clearing house in order to integrate changes
in underlying assets.
3.2- Suspension or limitation of trading and the
relationship between prices
The lack of liquidity of the market and the application of
certain rules in certain markets (such as suspensions due
to abnormal price movements, so-called circuit breakers)
may increase the risk of losses, by making it impossible to
execute transactions and liquidate or neutralise positions.
The risk of losses may be increased in the event of an
option sale position. The relationship between the price of
the underlying asset and the derivative may vary in certain
cases.
The possible absence of a price for the underlying asset
can make it difficult to assess the value of the derivative
contract.
3.3- Currency futures
A forward currency contract is a contract for the purchase
or sale of a given value of one currency against another
currency at a firm, definitive exchange rate, with delivery at
a given future date. Such contracts may involve hedging or
speculative transactions and give rise to specific clauses.
D. THE DEGREE OF RISK IN ASSET MANAGEMENT
An asset management service offers investors the benefit
of professional knowledge and experience of selecting the
financial instruments in which they invest. In principle, the
management risk depends on the chosen profile.
The investor determines the general management strategy
by contractually defining the limits for the managers
choices. In turn, these limits will determine the investment
profile, and are specified in an appendix to the
management mandate.
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25/26
Investors must question the manager about the

characteristics and degree of risk entailed in the investment
profile that they intend to select and should only sign the
mandate if they are reasonably sure that have understood
the type of investment strategy and the degree of risk
exposure entailed.
In order to assess the degree of risk more accurately, once
the chosen investment profile has been assessed and
before signing the mandate, the investor and the manager
decide whether the investment is appropriate for the
investor, particularly in terms of his/her/its personal financial
situation, investment objectives and experience in
investment in financial instruments, subject to the liability
limitation clauses including in the management mandate.
1- The degree of risk to which a managed portfolio is
exposed
The investor can influence the degree of risk associated
with a certain investment profile mainly by defining the
categories of financial instrument in which his/her/its assets
can be invested and setting limits for each category.
Financial instrument categories and the assessment of the

risk that they entail for the investor are dealt with in the
section of this document concerning the assessment of the
risks of investing in financial instruments. The risk
characteristics of a management mandate reflect the
degree of risk of the financial instruments according to the
proportion of the managed assets that they represent. For
example, an investment profile requiring a significant
percentage of assets to be invested in low-risk securities
will have risk characteristics that are equally low, whereas if
the percentage of low-risk investments defined in the
mandate is small, the level of overall risk of the
management mandate will be higher.
2- Other general risks related to asset management
services
The information in parts A and B of this document is also
valid for discretionary asset management, since the
transactions concerned are of the same nature.
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26/26
TABLEAU DE PONDERATION PORTEFEUILLES NANTIS

VALEUR MOBILIERE
CLASSE D'ACTIFS NANTIS
Liquidits
TYPE DE VALEUR MOBILIERE
PONDERATION
100%
. Liquidits (compte courant & DAT)
Rating >BB+, Degressif par dure,

taille mini: 100 mios EUR, Basket Pays
Faible Volat.
Titres de crance
. Bon du trsor
.Certificat de dpt ngociable - CDN
.Obligation classique
De 20% 95% max
Produits Structurs </= 3 ans
Produits CMB
En fonction ss-jacent, max 2 ans

de 0% 80% max
Produits Structurs >3 < 5 ans
Produits CMB
0%
FCP CMB
. Fonds Immobilier CMB

. Monaction Europe
. Monaco Plus-Value USD
. Monaco Plus Value EUR
FONDS ACTIONS
. Monaco Eco +
. Monaction Asie
. Monaction Emerging Markets
0%
jusqu' 70%
jusqu' 70%
jusqu' 70%
jusqu' 60%
jusqu' 60%
jusqu' 60%
Monaco Globe
Spcialisation
. Monaction USA
jusqu' 70%
. Monaco Court Terme Euro
jusqu' 100%
jusqu' 95%
jusqu' 100%
jusqu' 75%
jusqu' 75%
jusqu' 80%
jusqu' 85%
jusqu' 70%
jusqu' 80%
Fonds Monetaires . Monaco Trsorerie

Fonds mixtes
Fonds
Obligataires
. Monaco Court Terme USD

. Monaco Patrimoine Scurit Euro
. Monaco Patrimoine Scurit USD
. Expansion Euro
. Expansion USD
Monaco HORIZON
. Monaco Corporate Bond Euro
Fonds
. Monaco Convertible Bond Euro
convertibles
Fonds alternatifs . Monaco Hedge Selection
Jusqu' 60%
jusqu' 50%
Index G20 / Index pays Pays Faible
volatilit, volatilit basse, Capit.
Min. 1 bion EUR, liquidit
Actions
Hedge Funds
Fonds Externes
. Cotes au: CAC 40; DAX, DOW JONES;

MIB 30; FOOTSIE; IBEX;SMI
.Obligation convertible/reverse
.Produits structurs hors CMB capital
garanti
. Autres actions
au cas particulier
. Fonds alternatifs (Fond de fonds)
au cas particulier
. Montaires
. Montaires alternatifs
. Obligataires
. Actions
jusqu' 70%
jusqu' 60%
au cas particulier
jusqu' 95%
jusqu' 30%
jusqu' 70%
jusqu' 60%
Pour les devises (AUD, USD, GBP, CHF, CAD, JPY) diffrentes de l'engagement, il conviendra d'appliquer une pondration supplmentaire de 10%
Pour les autres devises diffrentes de l'engagement, il conviendra d'appliquer une pondration supplmentaire de 20%
11/09/2015

Conditions de Fonctionnement PIC LTD

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Conditions de Fonctionnement PIC LTD

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GENERAL TERMS AND CONDITIONS FOR

General terms and conditions for accounts

version May 2015

version May 2015

Article 26- Income collection..16

General terms and conditions for accounts

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C - The risks of investing in hedge funds or assimilated strategies...24

General terms and conditions for accounts

version May 2015

GENERAL TERMS AND CONDITIONS FOR ACCOUNTS

General terms and conditions for accounts

(first names, surname, date and place of birth, occupation,

version May 2015

the business relationship ends, represent the single current

The undersigned agree to open account

If the Customer is an individual business person and asks

The aforementioned account will be pledged pursuant

These provisions will apply if the Customer is a company

I. GENERAL PROVISIONS APPLICABLE TO ALL

The same rules will apply to accounts opened by a private

The provisions below govern the operation of all the

The Bank may allocate the Customer one or more root

General terms and conditions for accounts

The Banks books and documents will have evidentiary

version May 2015

Article 3 Bank correspondence

General terms and conditions for accounts

CMB Online; in this case, the correspondence is made

version May 2015

Any cancellation will be shown on account statements as a

In the case of a joint account, it will be governed by the

General terms and conditions for accounts

version May 2015

between the surviving joint holder(s) and the deceaseds

General terms and conditions for accounts

beneficial owner or the bare owner, as appropriate. In the

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Funds will be settled and securities delivered according to

recordings will have evidentiary value in the event of any

The Customer is informed that instructions given by

General terms and conditions for accounts

version May 2015

The Bank complies with its own obligations resulting from

General terms and conditions for accounts

In particular, the Bank may debit assets from the account,

version May 2015

The Bank does not have any obligation to provide

General terms and conditions for accounts

For certain transactions the personal information disclosed

version May 2015

securities accounts will be consolidated in the current

General terms and conditions for accounts

Debits carried out in accordance with this Article will also

version May 2015

credit facility, loan, etc.). The Customer is informed of

General terms and conditions for accounts

19.2. However, fixed-term credit facilities other than

version May 2015

latters SEPA identification number. Any mandate not

General terms and conditions for accounts

beneficiarys account is kept in a currency other than euros,

version May 2015