The Order of 10 June 1997 on the operations of the Financial Instruments Collective Investment Institutions in Derivative Financial Instruments opens up to such institutions the possibility of hiring derivative instruments. negotiated in an organised secondary market.

Moreover, the Order of 28 May 1999 on the Agreements for the promotion of the Fund for the Titling of Assets to Promote Business Finance provides for the creation of a Fund for the securitisation of assets which it has the trade name 'FTSMEs', shall be specialised in the securitisation of loans to productive enterprises, counting a portion of their liabilities-within the tranche of fixed income securities with the State guarantee.

With this Order it is permitted that the currently marketed State Debt Investment Funds may contract derivative instruments not traded on secondary markets organized by one party and, on the other hand, the (a) to invest in that part of the assets issued by the 'FTSMEs', which has the State guarantee. Finally, in order to extend the range of financial assets in which this type of funds can be invested, it has been considered appropriate to allow a percentage of its portfolio to also be invested in other fixed income assets, provided that they enjoy high credit quality. In addition, in the case of New Creation State Debt Investment Funds, this Order authorizes investment up to a certain percentage of its portfolio in variable income securities. Thus, the FONDTREASURY will benefit from a wider variety of more profitable assets in which to invest their assets that will allow them to diversify their portfolio and to enhance their profitability without subtracting any of their main characteristics, that is, maintaining its high level of liquidity and ensuring its security.

In order for the State Debt Investment Funds to be able to benefit from the use of such instruments for the management of their assets, I have, First. -Two new annexes are added to those set out in the Order of 7 of June 1990, of the Minister of Economy and Finance, on the Partnership Agreements relating to the State Debt Investment Funds and which are renumbered as Annexes 3 and 4. New investment opportunities are included in these Annexes in both the Fondtreasury, FIM and FIAMM. These annexes may be joined by the newly created funds, as well as those other than those with an existing agreement, who wish to change their investment policy in order to extend the range of financial assets in which they can invest their assets. The Funds covered by Annex 3 shall be given the name ' ... FONDTREASURY RENTA ', FIM and those covered by Annex 4 the name' ... INCOME FUND ", FIAMM.

Second, a new annex is added to those set out in the Order of 7 June 1990, by the Minister for Economic Affairs and Finance, on the Partnership Agreements on Mutual Funds in Debt of the State, which is renumbered as Annex 5. This Annex shall apply only to the newly created State Debt Investment Funds which shall be given the name ' ... FONDTREASURY PLUS, " FIM.

Final disposition.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette".

Madrid, 28 May 1999.

DE RATO Y FIGAREDO Ilmo.

Mr. Director-General of the Treasury and Financial Policy.

ANNEX 3

Convenio-Type of collaboration on Mobilian Investment Funds in State Debt

According to Article 104.2 of the recast text of the current General Budget Law, the Order of the Ministry of Economy and Finance of 7 June 1990 ("Official State Gazette" of the 13th) delegated to the Director-General of the Treasury and Financial Policy the faculty to hold, on behalf of the State, collaboration agreements concerning the State Debt Investment Funds.

By virtue of the foregoing, of a party, D. ................................., Director-General of the Treasury and Financial Policy, in the name and representation of the Spanish State (hereinafter, "Public Treasury") and, of the other, D. ................................................., name and representation of ........................................, management company of Collective Investment Institutions (hereinafter the "management company"), according to the power exhibited.

Both parties recognize the ability to grant this Convention, and to this effect they agree to the following.

CLAUSES

The present Convention aims to regulate the collaboration between the Public Treasury and the management company, in order to develop and disseminate a State Debt Investment Fund, called " ... FONDTREASURY RENT ", FIM.

The Fund, which will be managed by the management company, in addition to being subject to the legal and regulatory provisions applicable to it, will have the specifications described in the following clauses.

(only where applicable) Under this Convention the Fund " ... FIM ", FIM changes its name to" ... FIM, FIM, without prejudice to the formalities to be complied with under the regulations of the Collective Investment Institutions for the change of denomination.

Second. -The Investment Fund shall have the following specifications, which shall be expressly stated in its Management Regulation:

a) Investment criteria:

1. The equity of the Fund-except the part intended to cover the liquidity ratio, which may not exceed 10 per 100 of the monthly average of the daily balances of the asset of the Fund shall be invested mainly in Debt of the State in any of its modalities or in bonds issued by the "FTSMEs" that have the State's guarantee.

The debt of the State or the fixed income endorsed by the State shall, in any event, represent a percentage of not less than 70 per 100 of the Fund's assets.

2. º At least 50 per 100 of the Fund's assets shall be invested in maturity in Bonds and Obligations of the State or in any other form of State Debt that the Treasury issues with an initial repayment term of more than one year.

For the purposes of this criterion, the investment made in segregated Principal or segregated Cupons referred to in the Order of 19 June 1997 for the purposes of the segregation operations of principal and Government debt securities coupons and their reconstitution and the General Directorate of the Treasury and Financial Policy are authorized to formalize singular loans with financial institutions.

3. The Fund may invest a maximum percentage of 20 per 100 of its total assets in other fixed income securities other than the State Debt denominated in pesetas and/or in euro, traded on an organised secondary market And provided that they have a credit rating granted by any of the agencies recognized by the National Securities Market Commission equivalent or higher than A +, A1 or assimilated.

4. The Fund may only act in the term markets or derivative financial instruments for the sole purpose of covering the financial risks of its portfolio.

In the terms set out in this Order, the Fund may use the following derivative financial instruments:

(a) Contracts of futures on public debt entered in Spanish trading on official secondary derivatives markets.

b) Options contracts on public debt entered in Spanish trading on official secondary derivatives markets.

c) Interest or foreign exchange swap operations. Where such transactions are not negotiated or settled on organised markets, they shall be governed by the requirements laid down in the fourth paragraph of the Order of 10 June 1997 on the operations of the collective investment institutions of Financial Character in Derivative Financial Instruments. In addition, the counterparty must have a credit rating of no less than that of the State awarded by a specialised credit rating agency recognised by the National Securities Market Commission or, failing that, the transaction shall have a sufficient guarantee to cover the risk arising from the risk, materialised in bank deposits or financial assets traded on organised secondary markets which have a credit rating of no less than that of the State.

The management company will in any case maintain a policy of diversification of counterparty risk.

For the purposes of this Convention, no derivative financial instruments, asset acquisition or temporary disposal operations and simultaneous spot purchase and sale of the debt securities are considered as derivative financial instruments. A statement of the following items: (a) the date of the entry into the spot and the date of the sale.

The guarantees or hedges that the Fund has to maintain in the term markets and derivative financial instruments shall be considered investments in State Debt for the purposes of the criteria contained in the paragraph 1. or precedent.

(b) Minimum contribution of the unit-holders: The minimum investment required initially for the potential unit-holders shall not exceed 50,000 pesetas.

c) Commissions and expenses:

The sum of fees and expenses charged annually to the Fund for all concepts shall not exceed 1.50 per 100 of the value of your average daily equity during the financial year. This percentage shall comprise both the fees that specifically pay the management company and the depositary, and all fees or charges relating to other concepts (such as audit, administrative expenditure, etc.). Only those concepts which, exceptionally and by reason of their particular nature, may be authorised by the Treasury, may be charged to the Fund without being charged to the Fund at the request of the management company.

Only a reimbursement fee of no more than 2 per 100 of the value of the shares reimbursed, which shall be charged by the management company and shall be applied exclusively to reimbursements, may be passed on to the unit-holders. which occur during the first two years of the participation in the Fund.

Without prejudice to the foregoing paragraph, those Funds which deem it appropriate may apply to the value of the redemption of the shares which have been acquired within 30 days prior to such refunds, a discount in favour of the Fund which may not exceed 2 per 100 of the value of the shares repaid. For these purposes, the shares repaid are those of the highest seniority. In order to be able to apply the said discount, it must be expressly stated in the Fund's Management Regulation.

The commissions referred to in the preceding paragraphs shall, in any event, have the character of the maximum, and shall include in the explanatory prospectus of the Fund those which are effectively applied by the managing company and the depositary. Any amendment to the commissions actually applied must be communicated to the Treasury in advance and will require the Treasury's compliance when it implies an increase in the amount in force at the beginning of the marketing of the Fund.

(d) System of remuneration for members: The Fund shall act as a capital fund by continuing reinvestment of the income obtained.

Third. -During the term of this Convention, the Treasury is obliged to:

Give the management company the non-exclusive use of the trademark "FONDTESORO" and its logos and identifying signs with the sole purpose of marketing the Fund subject to the Convention.

Provide advertising support for the promotion of the Funds under the Convention, subject to the availability of credit for advertising and promotion established annually in the concept applicable to Section 06 (Debt Public) of the General Budget of the State.

Fourth. In addition to observing the specifications identified for the Fund in the second clause of this Convention, the management company is obliged to:

To use in advertising relating to the Fund and to expose in a visible place of the network of offices, through which it is marketed, the logos and distinctive signs of "FONDTREASURY" and of the Public Treasury, respecting the norms of the Public Treasury corporate identity manuals and "FONDTREASURY". It is necessary that all the communication carried out by "FONDTREASURY" comply with the aforementioned rules, its failure to comply will result in the Treasury's reporting of the agreement signed with the responsible manager.

Refer to the Directorate-General of the Treasury and Financial Policy the information, periodic or occasional, which it requires, in general or in relation to a particular Fund. As far as possible, and in order to prevent the management company from incurring unnecessary expenses, the information required shall be related to those which the management company is required to provide to the National Securities Market Commission, the supervisory body of the Collective Investment Institutions.

In addition, the management company must keep the aforementioned Directorate-General informed of how many extremes can be relevant to its activity as a management company of the Fund (modification of the shareholding structure of the company). Company, change of depositary, etc.).

Fifth. -1. Once this Convention has been signed, its validity shall be subject to the registration of the Fund or the modification of its Management Regulations in the Register of the National Securities Market Commission, and shall be extended until 31 January of the year. next, being tacitly extendable for periods of twelve months, except express denunciation, freely agreed by any of the parties and communicated in writing before December 31.

2. Without prejudice to the foregoing, the Treasury shall have the power to unilaterally suspend or terminate the Convention concluded with a management company, in the following cases:

(a) When the National Securities Market Commission, under the scheme provided for in Chapter V of the current Collective Investment Institutions Act, agrees to initiate a criminal file for possible serious infringement or a serious offence committed by the management company, or in respect of any of the intervention or replacement measures referred to in Article 32a of that Law.

b) When the management company amends the Fund Management Regulation without the prior consent of the Treasury.

(c) When the management company repeatedly and unjustifiably disclaims the claims of the members to be transferred to it with its favorable report by the Treasury.

(d) Where the management company fails to comply with the provisions of the second or fourth clauses of this Convention.

e) By the accredited non-compliance by the management company in the advertising campaigns that it carries out individually, the rules of the corporate identity manuals of the Public Treasury and the "FONDTREASURY" or the instructions which, if applicable, have been sent in writing by the Directorate-General of the Treasury and Financial Policy in relation to the advertising of "FONDTREASURY".

3. When making the complaint or resolution of the Convention in accordance with the provisions of the preceding numbers1 or 2, the management company shall immediately inform its members in writing.

If the complaint is made out of the will of the management company or the Convention is resolved by unilateral decision of the Treasury, in accordance with the provisions of the preceding number 2, the management company shall choose to designate as replace any of the other managing companies which continue to be attached to the Convention or another of their choice which is acceptable to the Treasury. In addition, in the case of the preceding number 2 (a), the Treasury may, as a precautionary measure, require the management company to designate temporarily as a substitute for any of the companies which continue to be attached to the Convention or their choice that is acceptable to the Treasury. The Treasury may require such a replacement as definitive if the management company is finally sanctioned, as well as in the cases of intervention or replacement provided for in Article 32a of the Collective Investment Institutions Act, where the measures are extended for a period of more than one year or, within that period, the withdrawal of the authorisation of the company as the manager of the Collective Investment Institutions is agreed.

The Treasury shall give its conformity to the models of the communications to be made to the unit-holders in the various assumptions provided for in this issue.

Sixth. This Convention shall be of an administrative nature and shall be governed, in addition to the provisions of the foregoing clauses, by the Order of 7 June 1990 in the wording resulting from its amendments to the Orders of 25 January-December 1994, the Order of 16 January 1997 and the Order of 28 May 1999, in accordance with the rules on the legal status of the institutions for collective investment, general rules of administrative law and how many others are applicable to you.

It shall be for the Directorate-General of the Treasury and Financial Policy to be precise in order for the conclusion, execution, interpretation, extension, denunciation and resolution of the Convention. Its resolutions shall end the administrative procedure, proceeding against them administrative-administrative proceedings in accordance with the provisions of the Law of the Administrative-Administrative Jurisdiction.

ANNEX 4

Convenience-Type of Partnership on Investment Funds in Monetary Market Assets (FIAMM) relating to State Debt

According to Article 104.2 of the recast text of the current General Budget Law, the Order of the Ministry of Economy and Finance of 7 June 1990 ("Official State Gazette" of the 13th) delegated to the Director-General of the Treasury and Financial Policy the faculty to hold, on behalf of the State, collaboration agreements concerning the State Debt Investment Funds.

By virtue of the foregoing, of a party, D. ................................., Director-General of the Treasury and Financial Policy, in the name and representation of the Spanish State (hereinafter, "Public Treasury") and, of the other, D. ................................................, in the name and representation of ..........................., the management company of Collective Investment Institutions (hereinafter the "management company"), according to the power exhibited.

Both parties recognize the ability to grant this Convention, and to this effect they agree to the following:

CLAUSES

The present Convention aims to regulate the collaboration between the Public Treasury and the management company, in order to develop and disseminate a State Debt Investment Fund, called " ... INCOME FUND ", FIAMM.

The Fund, which will be managed by the management company, in addition to being subject to the legal and regulatory provisions applicable to it, will have the specifications described in the following clauses.

(only where applicable) Under this Convention the Fund " ... FONDTREASURE ", FIAMM changes its denomination by" ... FONDTREASURY RENTA ", FIAMM, without prejudice to the formalities to be complied with under the regulations of the Collective Investment Institutions for the change of denomination.

Second. -The Investment Fund shall have the following specifications, which shall be expressly stated in its Management Regulation:

a) Investment criteria:

1. The equity of the Fund-except the part intended to cover the liquidity ratio, which may not exceed 10 per 100 of the monthly average of the daily balances of the asset of the Fund shall be invested mainly in Debt of the State in any of its forms or in bonds issued by the "FTSMEs" which have the State's guarantee and whose residual life period does not exceed the limits established in the legislation in force. The debt of the State or the fixed income endorsed by the State shall in any event represent a percentage of not less than 80 per 100 of the monthly average of the daily balances of the Fund's assets.

2. º At least 60 per 100 of the Fund's assets must be invested in State Debt in any of its modalities and the residual life of the Fund does not exceed the limits established in the current legislation.

3. The Fund may invest a maximum percentage of 10 per 100 of its total assets in other fixed income securities other than the State Debt denominated in pesetas and/or in euro, traded on an organised secondary market Spanish, whose residual life period does not exceed the limits laid down in the legislation in force and provided that they have a credit rating granted by one of the agencies recognized by the National Securities Market Commission equivalent to or greater than A +, A1 or assimilated.

4. The Fund may only act on the term markets for derivative financial instruments for the sole purpose of covering the financial risks of its portfolio.

In the terms set out in this Order, the Fund may use the following derivative financial instruments:

(a) Contracts of futures on Spanish-registered public debt or on short-term interest rates traded on official secondary derivatives markets.

b) Options contracts on Spanish annotated public debt or on short-term interest rates traded on official secondary derivatives markets.

c) Interest or foreign exchange swap operations. Where such transactions are not negotiated or settled on organised markets, they shall be governed by the requirements laid down in the fourth paragraph of the Order of 10 June 1997 on the operations of the collective investment institutions of Financial Character in Derivative Financial Instruments. In addition, the counterparty must have a credit rating of no less than that of the State awarded by a specialised credit rating agency recognised by the National Securities Market Commission or, failing that, the transaction shall have a sufficient guarantee to cover the risk arising from the risk, materialised in bank deposits or financial assets traded on organised secondary markets which have a credit rating of no less than that of the State.

The management company will have to maintain, in any case, a policy of diversification of counterparty risk.

For the purposes of this Convention, no derivative financial instruments, asset acquisition or temporary disposal operations and simultaneous spot purchase and sale of the debt securities are considered as derivative financial instruments. A statement of the following items: (a) the date of the entry into the spot and the date of the sale.

The guarantees or hedges that the Fund has to maintain in the term markets and derivative financial instruments shall be considered investments in State Debt for the purposes of the criteria contained in the paragraph 1. or precedent.

(b) Minimum contribution of the unit-holders: The minimum investment required initially for the potential unit-holders may not exceed 200,000 pesetas.

c) Commissions and expenses:

The sum of fees and expenses charged annually to the Fund for all concepts shall not exceed 1.25 per 100 of the value of your average daily equity during the financial year. This percentage shall comprise both the fees that specifically pay the management company and the depositary, and all fees or charges relating to other concepts (such as audit, administrative expenditure, etc.). Only those concepts which, exceptionally and by reason of their particular nature, may be authorised by the Treasury, may be charged to the Fund without being charged to the Fund at the request of the management company.

Only expenses arising from the use of cheques may be passed on to the unit-holders.

The commissions referred to in the preceding paragraphs shall, in any event, have the character of the maximum, and shall include in the explanatory prospectus of the Fund those which are effectively applied by the managing company and the depositary. Any amendment to the commissions actually applied must be communicated to the Treasury in advance and will require the Treasury's compliance when it implies an increase in the amount in force at the beginning of the marketing of the Fund.

(d) System of remuneration for members: The Fund shall act as a capital fund by continuing reinvestment of the income obtained.

(e) Refund of the shares: The repayment of the shares shall be made on the terms and conditions set out in the provisions in force.

Third. -During the term of this Convention, the Treasury is obliged to:

Give the management company the non-exclusive use of the trademark "FONDTESORO" and its logos and identifying signs with the sole purpose of marketing the Fund subject to the Convention.

Provide advertising support for the promotion of the Funds under the Convention, subject to the availability of credit for advertising and promotion established annually in the concept applicable to Section 06 (Debt Public) of the General Budget of the State.

Fourth. In addition to observing the specifications identified for the Fund in the second clause of this Convention, the management company is obliged to:

To use in advertising relating to the Fund and to expose in a visible place of the network of offices, through which it is marketed, the logos and distinctive signs of "FONDTREASURY" and of the Public Treasury, respecting the norms of the Public Treasury corporate identity manuals and "FONDTREASURY". It is necessary that all the communication carried out by "FONDTREASURY" comply with the aforementioned rules, its failure to comply will result in the Treasury's reporting of the agreement signed with the responsible manager.

Refer to the Directorate-General of the Treasury and Financial Policy the information, periodic or occasional, which it requires, in general or in relation to a particular Fund. As far as possible, and in order to prevent the management company from incurring unnecessary expenses, the information required shall be related to those which the management company is required to provide to the National Securities Market Commission, the supervisory body of the Collective Investment Institutions.

In addition, the management company must keep the aforementioned Directorate-General informed of how many extremes can be relevant to its activity as a management company of the Fund (modification of the shareholding structure of the company). Company, change of depositary, etc.).

Fifth. -1. Once this Convention has been signed, its validity shall be subject to the registration of the Fund or the modification of its Management Regulations in the Register of the National Securities Market Commission, and shall be extended until 31 January of the year. next, being tacitly extendable for periods of twelve months, except express denunciation, freely agreed by any of the parties and communicated in writing before December 31.

2. Without prejudice to the foregoing, the Treasury shall have the power to unilaterally suspend or terminate the Convention concluded with a management company, in the following cases:

(a) When the National Securities Market Commission, under the scheme provided for in Chapter V of the current Collective Investment Institutions Act, agrees to initiate a criminal file for possible serious infringement or a serious offence committed by the management company, or in respect of any of the intervention or replacement measures referred to in Article 32a of that Law.

b) When the management company amends the Fund Management Regulation without the prior consent of the Treasury.

(c) When the management company repeatedly and unjustifiably disclaims the claims of the members to be transferred to it with its favorable report by the Treasury.

(d) Where the management company fails to comply with the provisions of the second or fourth clauses of this Convention.

e) By the accredited non-compliance by the management company in the advertising campaigns that it carries out individually, the rules of the corporate identity manuals of the Public Treasury and the "FONDTREASURY" or the instructions which, if applicable, have been sent in writing by the Directorate-General of the Treasury and Financial Policy in relation to the advertising of "FONDTREASURY".

3. When making the complaint or resolution of the Convention in accordance with the provisions of the first or second preceding numbers, the management company shall immediately inform its members in writing.

If the complaint is produced at the will of the management company, or the Convention is resolved by unilateral decision of the Treasury, in accordance with the provisions of the preceding number 2, the management company shall choose to appoint as a substitute for any other managing company which continues to be attached to the Convention or another of its choice which is acceptable to the Treasury. In addition, in the case of the preceding number 2 (a), the Treasury may, as a precautionary measure, require the management company to designate temporarily as a substitute for any of the companies which continue to be attached to the Convention or their choice that is acceptable to the Treasury. The Treasury may require such a replacement as definitive if the management company is finally sanctioned, as well as in the cases of intervention or replacement provided for in Article 32a of the Collective Investment Institutions Act, where the measures are extended for a period of more than one year or, within that period, the withdrawal of the authorisation of the company as the manager of the Collective Investment Institutions is agreed.

The Treasury shall give its conformity to the models of the communications to be made to the unit-holders in the various assumptions provided for in this issue.

Sixth. This Convention shall be of an administrative nature and shall be governed, in addition to the provisions of the foregoing clauses, by the Order of 7 June 1990 in the wording resulting from its amendments to the Orders of 25 January-December 1994, the Order of 16 January 1997 and the Order of 28 May 1999, in accordance with the rules on the legal status of the institutions for collective investment, general rules of administrative law and how many others are applicable to you.

It shall be for the Directorate-General of the Treasury and Financial Policy to be precise in order for the conclusion, execution, interpretation, extension, denunciation and resolution of the Convention. Its resolutions shall end the administrative procedure, proceeding against them administrative-administrative proceedings in accordance with the provisions of the Law of the Administrative-Administrative Jurisdiction.

ANNEX 5

Convenience-Type of collaboration envelopes Investment Funds Mobilia in State Debt "FONDTREASURY PLUS", FIM

According to Article 104.2 of the recast text of the current General Budget Law, the Order of the Ministry of Economy and Finance of 7 June 1990 ("Official State Gazette" of the 13th) delegated to the Director-General of the Treasury and Financial Policy the faculty to hold, on behalf of the State, collaboration agreements concerning the State Debt Investment Funds.

By virtue of the foregoing, of a party, D. ................................., Director-General of the Treasury and Financial Policy, in the name and representation of the Spanish State (hereinafter, "Public Treasury") and, of the other, D. ................................................, in the name and representation of ..........................., the management company of Collective Investment Institutions (hereinafter the "management company"), according to the power exhibited.

Both parties recognize the ability to grant this Convention, and to this effect they agree to the following:

CLAUSES

The present Convention aims to regulate the collaboration between the Public Treasury and the management company, in order to develop and disseminate a State Debt Investment Fund, called " ... FONDTREASURY PLUS, " FIM.

The Fund, which will be managed by the management company, in addition to being subject to the legal and regulatory provisions applicable to it, will have the specifications described in the following clauses.

Second. -The Investment Fund shall have the following specifications, which shall be expressly stated in its Management Regulation:

a) Investment criteria:

1. The equity of the Fund-except the part intended to cover the liquidity ratio, which may not exceed 10 per 100 of the monthly average of the daily balances of the asset of the Fund shall be invested mainly in Debt of the State in any of its modalities or in bonds issued by the "FTSMEs" that have the State's guarantee.

The debt of the State or endorsed by the State shall, in any event, represent a percentage of not less than 70 per 100 of the Fund's assets.

2. º At least 50 per 100 of the Fund's assets shall be invested in maturity in Bonds and Obligations of the State or in any other form of State Debt that the Treasury issues with an initial repayment term of more than one year.

For the purposes of this criterion, the investment made in segregated Principal or segregated Cupons referred to in the Order of 19 June 1997 for the purposes of the segregation operations of principal and Government debt securities coupons and their reconstitution and the General Directorate of the Treasury and Financial Policy are authorized to formalize singular loans with financial institutions.

3. The Fund may invest a maximum percentage of 20 per 100 of its total assets in variable income securities of IBEX 35 and other fixed income securities other than the State Debt denominated in pesetas and/or in euro, negotiated in a Spanish secondary market and provided that they have a credit rating given by any of the agencies recognized by the National Securities Market Commission equivalent or higher than A +, A1 or assimilated. Notwithstanding the foregoing, the Fund may invest a maximum percentage of 15 per 100 of its total assets in variable income securities of IBEX 35.

4. The Fund may only act in the term markets or derivative financial instruments for the sole purpose of covering the financial risks of its portfolio.

In the terms set out in this Order, the Fund may use the following derivative financial instruments:

(a) Contracts of futures on public debt entered in Spanish trading on official secondary derivatives markets.

b) Options contracts on public debt entered in Spanish trading on official secondary derivatives markets.

c) Interest or foreign exchange swap operations. Where such transactions are not negotiated or settled on organised markets, they shall be governed by the requirements laid down in the fourth paragraph of the Order of 10 June 1997 on the operations of the collective investment institutions of Financial Character in Derivative Financial Instruments. In addition, the counterparty must have a credit rating of no less than that of the State awarded by a specialised credit rating agency recognised by the National Securities Market Commission or, failing that, the transaction shall have a sufficient guarantee to cover the risk arising from the risk, materialised in bank deposits or financial assets traded on organised secondary markets which have a credit rating of no less than that of the State.

The management company will in any case maintain a policy of diversification of counterparty risk.

For the purposes of this Convention, no derivative financial instruments, asset acquisition or temporary disposal operations and simultaneous spot purchase and sale of the debt securities are considered as derivative financial instruments. A statement of the following items: (a) the date of the entry into the spot and the date of the sale.

The guarantees or hedges that the Fund has to maintain in the term markets and derivative financial instruments shall be considered investments in State Debt for the purposes of the criteria contained in the paragraph 1. or precedent.

(b) Minimum contribution of the unit-holders: The minimum investment required initially for the potential unit-holders shall not exceed 50,000 pesetas.

c) Commissions and expenses:

The sum of fees and expenses charged annually to the Fund for all concepts shall not exceed 1.50 per 100 of the value of your average daily equity during the financial year. This percentage shall comprise both the fees that specifically pay the management company and the depositary, and all fees or charges relating to other concepts (such as audit, administrative expenditure, etc.). Only those concepts which, exceptionally and by reason of their particular nature, may be authorised by the Treasury, may be charged to the Fund without being charged to the Fund at the request of the management company.

Only a reimbursement fee of no more than 2 per 100 of the value of the shares reimbursed, which shall be charged by the management company and shall be applied exclusively to reimbursements, may be passed on to the unit-holders. which occur during the first two years of the participation in the Fund.

Without prejudice to the foregoing paragraph, those Funds which deem it appropriate may apply to the value of the redemption of the shares which have been acquired within 30 days prior to such refunds, a discount in favour of the Fund which may not exceed 2 per 100 of the value of the shares repaid. For these purposes, the shares repaid are those of the highest seniority. In order to be able to apply the said discount, it must be expressly stated in the Fund's Management Regulation.

The commissions referred to in the preceding paragraphs shall, in any event, have the character of the maximum, and shall include in the explanatory prospectus of the Fund those which are effectively applied by the managing company and the depositary. Any amendment to the commissions actually applied must be communicated to the Treasury in advance and will require the Treasury's compliance when it implies an increase in the amount in force at the beginning of the marketing of the Fund.

(d) System of remuneration for members: The Fund shall act as a capital fund by continuing reinvestment of the income obtained.

Third. -During the term of this Convention, the Treasury is obliged to:

Give the management company the non-exclusive use of the trademark "FONDTESORO" and its logos and identifying signs with the sole purpose of marketing the Fund subject to the Convention.

Provide advertising support for the promotion of the Funds under the Convention, subject to the availability of credit for advertising and promotion established annually in the concept applicable to Section 06 (Debt Public) of the General Budget of the State.

Fourth. In addition to observing the specifications identified for the Fund in the second clause of this Convention, the management company is obliged to:

To use in advertising relating to the Fund and to expose in a visible place of the network of offices, through which it is marketed, the logos and distinctive signs of "FONDTREASURY" and of the Public Treasury, respecting the norms of the Public Treasury corporate identity manuals and "FONDTREASURY". It is necessary that all the communication carried out by "FONDTREASURY" comply with the aforementioned rules, its failure to comply will result in the Treasury's reporting of the agreement signed with the responsible manager.

Refer to the Directorate-General of the Treasury and Financial Policy the information, periodic or occasional, which it requires, in general or in relation to a particular Fund. As far as possible, and in order to prevent the management company from incurring unnecessary expenses, the information required shall be related to those which the management company is required to provide to the National Securities Market Commission, the supervisory body of the Collective Investment Institutions.

In addition, the management company must keep the aforementioned Directorate-General informed of how many extremes can be relevant to its activity as a management company of the Fund (modification of the shareholding structure of the company). Company, change of depositary, etc.).

Fifth. -1. Once this Convention has been signed, its validity shall be subject to the registration of the Fund or the modification of its Management Regulations in the Register of the National Securities Market Commission, and shall be extended until 31 January of the year. next, being tacitly extendable for periods of twelve months, except express denunciation, freely agreed by any of the parties and communicated in writing before December 31.

2. Without prejudice to the foregoing, the Treasury shall have the power to unilaterally suspend or terminate the Convention concluded with a management company, in the following cases:

(a) When the National Securities Market Commission, under the scheme provided for in Chapter V of the current Collective Investment Institutions Act, agrees to initiate a criminal file for possible serious infringement or a serious offence committed by the management company, or in respect of any of the intervention or replacement measures referred to in Article 32a of that Law.

b) When the management company amends the Fund Management Regulation without the prior consent of the Treasury.

(c) When the management company repeatedly and unjustifiably disclaims the claims of the members to be transferred to it with its favorable report by the Treasury.

(d) Where the management company fails to comply with the provisions of the second or fourth clauses of this Convention.

e) By the accredited non-compliance by the management company in the advertising campaigns that it carries out individually, the rules of the corporate identity manuals of the Public Treasury and the "FONDTREASURY" or the instructions which, if applicable, have been sent in writing by the Directorate-General of the Treasury and Financial Policy in relation to the advertising of "FONDTREASURY".

3. When making the complaint or resolution of the Convention in accordance with the provisions of the preceding numbers1 or 2, the management company shall immediately inform its members in writing.

If the complaint is made out of the will of the management company or the Convention is resolved by unilateral decision of the Treasury, in accordance with the provisions of the preceding number 2, the management company shall choose to designate as replace any of the other managing companies which continue to be attached to the Convention or another of their choice which is acceptable to the Treasury. In addition, in the case of the preceding number 2 (a), the Treasury may, as a precautionary measure, require the management company to designate temporarily as a substitute for any of the companies which continue to be attached to the Convention or their choice that is acceptable to the Treasury. The Treasury may require such a replacement as definitive if the management company is finally sanctioned, as well as in the cases of intervention or replacement provided for in Article 32a of the Collective Investment Institutions Act, where the measures are extended for a period of more than one year or, within that period, the withdrawal of the authorisation of the company as the manager of the Collective Investment Institutions is agreed.

The Treasury shall give its conformity to the models of the communications to be made to the unit-holders in the various assumptions provided for in this issue.

Sixth. This Convention shall be of an administrative nature and shall be governed, in addition to the provisions of the foregoing clauses, by the Order of 7 June 1990 in the wording resulting from its amendments to the Orders of 25 January-December 1994, the Order of 16 January 1997 and the Order of 28 May 1999, in accordance with the rules on the legal status of the institutions for collective investment, general rules of administrative law and how many others are applicable to you.

It shall be for the Directorate-General of the Treasury and Financial Policy to be precise in order for the conclusion, execution, interpretation, extension, denunciation and resolution of the Convention. Its resolutions shall end the administrative procedure, proceeding against them administrative-administrative proceedings in accordance with the provisions of the Law of the Administrative-Administrative Jurisdiction.