Credit Terms and Conditions for Natural Persons (Non- Business)

Credit Terms and Conditions for Natural Persons (Non- Business) 1. Introductory Provisions 1.1. The below Credit Terms and Conditions for Natural Persons /Non-Business/ (hereinafter the Credit Conditions") represent the Product Terms and Conditions as foreseen by the General Business Terms and Conditions (hereinafter the "General Conditions"). The Credit Conditions and General Conditions form part of the Contract. The Client shall be obliged to familiarise himself/herself with them and comply with them. 1.2. Terms in these Credit Conditions that begin with a capital letter have the meanings defined in Article 13 hereof. 2. Forms of the Credit 2.1. These Credit Conditions apply to the following forms of Credits: a) Mortgage Credit; b) Consumer Credit; c) Other forms of Credit agreed upon in a Contract. 3. Purpose of the Credit 3.1. The Client shall be obliged to use the Credit exclusively for the purpose agreed in the Contract. The Client shall be obliged to demonstrate at any time upon the Bank's request that he/she used, or has been using, such Credit for the purpose agreed in the Contract. 4. Credit Facility 4.1. The Credit Facility is stated in the Contract and quoted in a Credit Currency. 4.2. The Client shall draw the Credit in the Credit Currency. 4.3. The Client shall be entitled to draw the Credit up to the amount of the Credit Facility. 4.4. Should the outstanding amount of the Credit principal be in excess of the Credit Facility for any reason, the aforesaid portion of the principal shall immediately become due and payable. The Bank shall be entitled to demand the Client to pay default interest on the aforesaid amount until he/she repays the portion of the Credit principal in excess of the Credit Facility. The default interest shall be set forth in the Notice on Interest Rates. 5. Drawing the Credit 5.1. The Client shall be entitled to draw down the Credit in the manner set forth in the Contract provided that the Conditions Precedent of the Drawing have been met. Komerční banka, a. s. 1/11

5.2. The Bank shall facilitate the Drawing of: a) The Mortgage Credit: no later than 2 Business Days after the Client has submitted an Application with attached documents proving that the Conditions Precedent of the Drawing have been met; b) The Consumer Credit: without any unnecessary delay after the Client asks for the Drawing and submits documents proving that the Conditions Precedent of the Drawing have been met; c) Other forms of Credit: under the terms conditions set forth in the Contract. 5.3. The Bank shall be entitled to deny the provision of the Drawing in case that (i) the Conditions Precedent of the Drawing have not been met; (ii) the Bank is not sure that Conditions Precedent of the Drawing have been met; (iii) the Application is deficient; or (iv) an Event of Default occurs or is imminent as at a required Drawing Date, or may result from the Drawing. In such cases, the Bank shall inform the Client about reasons of the denial within 5 Business Days and ask the Client at the same to put things right. 5.4. If the Client fails to start drawing the Credit as at the date agreed upon in the Contract, his/her right for the provision of the Credit shall expire on the next day after the lapse of the above deadline. If the Bank allows the Client to draw the funds on the Credit after the lapse of the above deadline, such drawing shall be deemed customary Drawing provided under the Contract. 5.5. The Credit is considered disbursed as soon as it is debited from the Bank s funds and credited to the Client. 5.6. If the Client fails to draw (utilise) the Credit in the course of the Drawing Period, his/her right for the provision of the unutilised portion of the Credit shall expire. If the Bank allows the Client to draw the funds on the Credit after the lapse of the Drawing Period, such drawing shall be deemed customary Drawing provided under the Contract. In case that the Client fails to utilise the Credit in full and the unutilised portion of the Credit is: a) At least equal to the amount of the last repayment of the Credit principal, the date of the complete repayment of the Credit shall be shortened by the date of the last repayment or, depending on the amount of the unutilised principal, several repayments immediately preceding the last repayment of the Credit principal, or the amount of the last repayment of the principal to be repaid during the shortened repayment period might be proportionally lowered; b) Lower than the amount of the last repayment of the Credit principal, the amount of the last repayment shall be decreased by the unutilised portion of the Credit principal. 5.7. The provisions of Article 5.6 hereof shall accordingly apply in case that either the Client or the Bank cancels the Drawing of an unutilised portion of the Credit. Komerční banka, a. s. 2/11

5.8. The Bank shall register its receivable in respect of the Client pursuant to the Contract under the registration number specified in the Contract. The Bank shall notify the Client of any change to the registration number of the receivable within 5 Business Days after such change has occurred. 6. Repayment of Principal and Interest 6.1. The Client shall be obliged to repay the Credit to the Bank in the quoted Credit Currency, by deadlines and in the manner set forth in the Contract. 6.2. If the Client is not able to repay the due and payable principal or interest in a manner set forth in the Contract, he/she shall be obliged to negotiate with the Bank an alternative manner of repaying the due portion of the principal or interest before the aforesaid amount falls due. 6.3. The Client shall only be entitled to settle his/her liabilities under the Contract in the Credit Currency. In case that the Bank receives any payment made under the Contract in a currency different from the Credit Currency, the Exchange Rate shall be used for the conversion as per the Bank's exchange list valid as at the conversion date; specifically, the "deviza/valuta nákup" Rate (foreign currency buy rate cashless/cash) for the conversion of a foreign currency to CZK; the "deviza/valuta prodej" Rate (foreign currency sell rate cashless/cash) for the conversion of CZK to a foreign currency; and an ad hoc ratio obtained by calculating the ratio of the "deviza střed" Rates (foreign currency, mean rate cashless) for the conversion of a foreign currency to another foreign currency. 6.4. If the Client repays any amount before its Due Date under the terms and conditions set forth in the Contract, such amount shall be considered as an early repayment of the Credit principal and, consequently, the date of complete repayment of the principal shall be proportionally shortened depending on the amount of the early repayment. If the Client repays, as at a relevant Due Date and in a manner set forth in the first sentence of this paragraph, an amount in excess of the Bank s receivables under the Contract due and payable as at the relevant Due Date, the difference between the amount repaid by the Client and the Bank s due receivables under the Contract shall be considered as an early repayment. 6.5. Any payments made by the Client under the Contract must be void of any deductions. If the law requires the Client to make deductions on any payment, the Client shall be obliged to increase the respective amount so that, after the deductions are subtracted, the Bank shall receive an amount equal to that it should obtain pursuant to the Contract. 6.6. If the Client is obliged to satisfy several due liabilities under the Contract or due liabilities ensuing from other commitment relationships to the Bank at the same time and the rendered payment is insufficient to satisfy all of the Client's due liabilities to the Bank, the payment provided by the Client shall be used to settle the Client's liability in to Bank determined according to the Rules. Komerční banka, a. s. 3/11

6.7. Any amount under the Contract set out or payable in the currency of an EU member state (hereinafter the "National Currency Unit") shall be automatically considered an amount set out or payable in the Common European Currency as of the date on which the National Currency Unit of the respective country is replaced with the Common European Currency in accordance with the applicable laws of the European Union or the laws of the respective member state. 6.8. If the Client wishes to repay the principal of the Credit or any part thereof earlier than initially agreed, he/she shall be obliged to notify the Bank either in writing (with a notarised signature) or in person at the Bank within a deadline specified in the Contract. Unless the Bank and the Client agree otherwise, such early repayment shall be transferred from the current account from which the Credit is to be repaid pursuant to the Contract, or deposited in cash at the Bank. The provision of this Article shall not apply to a Mortgage Credit or to other kinds of a Credit specified in the Contract. 6.9. If the Client and the Bank have agreed on the automatic repaying of the drawn Credit principal and interest by transferring the repayments/instalments from the Client s Current Account, and such transfer (payment) falls on a Business Day (except Mondays), the Bank shall be entitled to block such funds in the Client s Current Account (i.e., prevent the Client from handling such funds in the Current Account) up to the amount of the specific repayment of the principal and interest, starting from 00:00 hrs of the day on which the planned repayment should be made. If the date of the repayment falls on a Monday or another day than a Business Day, the blocking of funds referred to above can be made at the same time as specified in the foregoing sentence, on the day immediately following the last Business Day before the date at which the planned repayment of the principal and interest should be made. 7. Interest Rate 7.1. Interest paid under the Contract shall be calculated using a 360/360 day count; a calendar year shall therefore be deemed to have 360 days for the purpose of the calculation. 8. Client s Obligations 8.1. Throughout the duration of the Bank s receivables under the Contract with respect to the Client, the Bank shall be entitled to examine and assess the Client s financial circumstances, value of the security (collateral), as well as other circumstances that shall or may affect the Client s ability to discharge his/her liabilities to the Bank duly and timely. 8.2. The Client undertakes to submit to the Bank, upon its request and without any unnecessary delay, following printed documents: Komerční banka, a. s. 4/11

a) Certificate of Client s incomes (tax return; documents confirming salary and other similar incomes; documents confirming incomes from the pledged property, etc.); b) Documents confirming receipt of social benefits; c) Documents confirming permanent residence; d) Insurance policies related to the subject of securing, Subject of the Credit and Client s life insurance, or other insurance policies, if they exist; e) Trade licence; f) Documents necessary for assessing the purpose, rate of return and securing of the Credit; g) Documents confirming potential termination and settlement of the Client s common marital property, if both spouses are Clients; and h) Other documents justifiably required by the Bank in association with the provision, Drawing, repayment and/or securing of the Credit. 8.3. The Client shall be obliged to inform the Bank without any delay about any circumstances that shall or may affect his/her ability to repay the Credit to the Bank, or shall or may result in deterioration or lapse of the securing of the Client s liabilities under the Contract. The Client also undertakes to notify the Bank of potential termination of the Client s common marital property, if both spouses are Clients, and of a proposed manner of settling Client s liabilities under the Contract. 8.4. The Client shall notify the Bank by registered letter of any changes to his/her personal data, notably the permanent residence, mailing address and/or employer, no later then 5 Business Days after such change occurs. 8.5. The Client undertakes not to assign, transfer or encumber with third party s rights (titles) his/her own rights (titles) or receivables under the Contract without prior written consent of the Bank. Any assignment or transfer of rights (titles) or receivables made by the Client without the Bank's consent shall be void. The Client further undertakes not to transfer his/her obligations or liabilities under the Contract to any third party without prior written consent of the Bank. Any transfer of such obligations or liabilities made by the Client shall be void. 8.6. The Client shall be obliged to have a notarial record made, containing the enforceability permission as per Act No. 358/1992 Coll., the Notarial Code, as amended, or to have an executor (distrainor) record made as per Act No. 120/2001 Coll., the Executory Procedure Code, as amended, with regard to any of the Bank s receivables in respect of the Client associated with the Contract, if he/she is requested by the Bank to do so. By virtue of the aforesaid record, the Client shall first and foremost agree that an execution of a ruling is enforced in case the Client fails to meet his/her liabilities arising from the Contract duly and timely. The Bank may require that such relevant record also include as its part the acknowledgement of the Client's liabilities in respect of the Bank. Komerční banka, a. s. 5/11

8.7. The Client shall compensate the Bank, upon its request, for any and all reasonably expended costs, including all fees and charges, incurred in relation to the execution, performance, amendment, termination or breach of the Contract and of any contracts entered into pursuant to the Contract or in connection therewith, including contracts arranging the securing of the Client's liabilities under the Contract, as well as any costs incurred by the Bank in protection or execution of any of the Bank's rights and titles under the Contract and any contracts entered into pursuant to the Contract or in connection therewith. 8.8. The Client shall be obliged to have a current account with the Bank so long as the Bank s receivables in respect of the Client exist. 9. Security (Collateral) 9.1. If the Contract demands that the Credit should be secured, the Client shall be obliged to provide the Bank with the security (collateral) whose form, amount, contents, and duration should correspond with the Bank s demands set forth in the Contract. The Client shall maintain the security for the duration of any of his/her liabilities with respect to the Bank arising from the Contract. 9.2. Unless specified otherwise in the Contract or security documents, the security shall secure all Bank s receivables in respect of the Client that arose, or might arise, in connection with the Contract. The security shall also apply to the Bank s claims arising from any possible withdrawal from the Contract and to the Bank s claims asserted in case that the Contract has been found null and void, a receivable under the Contract has not arisen, and the claims arising from such relationship would have been considered as unjust enrichment. 9.3. The Client shall be obliged, upon the Bank s request, to prove without unnecessary delay that the security continues to exist in the extent set forth in the Contract. 9.4. Should the security or any part thereof cease to exist, become ineffective, deteriorate or be disputed in any other way, the Bank, unless it applies the procedure set forth in Article 11 hereof, shall be entitled to demand that the Client should supply an additional security or replace the security with other adequate security within a given period of time that, however, shall not be shorter than 3 Business Days. Should the Client fail to comply with the Bank s demand by the set forth deadline, the Bank shall be entitled to proceed in accordance with Article 11 hereof. The Client shall also be obliged to augment the security upon the Bank s request and without an delay if, as a result of a deterioration of the Client s financial or business situation or as a result of other circumstances, the existing security proves to be insufficient in the Bank s estimation. Should the Client fail to comply with the Bank s demand pursuant to the foregoing sentence within the set forth period of time, the Bank shall be entitled to proceed in accordance with Article 11 hereof. The Client shall also be obliged to augment the security upon the Komerční banka, a. s. 6/11

Bank s request and without any delay if, as a result of a deterioration of the Client s financial or business situation or as a result of other circumstances, the existing security proves to be insufficient in the Bank s estimation. Should the Client fail to comply with the Bank s demand pursuant to the foregoing sentence within the set forth period of time, the Bank shall be entitled to proceed in accordance with Article 11 hereof. 9.5. The Client shall be obliged to have prepared, at his/her own expense and upon Bank s request, an updated assessment of the market price of a pledge and submit it to the Bank by a deadline set forth by the Bank. If the Client fails to meet the obligation as per the foregoing sentence, the Bank shall be entitled to have the assessment of the market price of a pledge prepared at its expense. In that case, the Client shall compensate the Bank for the costs incurred in relation with preparing the assessment without any unnecessary delay upon receipt of the Bank s call. The Client undertakes to render necessary cooperation so that the assessment of the market price of a pledge can be made. 10. Contractual Penalty 10.1. If the Client breaches his/her obligation under the Contract secured against by a contractual penalty, he/she shall pay to the Bank a contractual penalty at an agreed amount. 10.2. The contractual penalty shall become due and payable on the 7th Business Day after the call for paying the penalty has been delivered to the Client. Before lodging its claim to the contractual penalty, the Bank may set, once or repeatedly, a deadline by which the Client should rectify the breach in question. 10.3. The fact that a contractual penalty has been paid shall not prejudice the Bank s right to claim compensation for damage caused by a breach of the obligation to which the contractual penalty relates, nor shall exempt the Client from the duty to meet the obligation in question and/or pay default interest (interest on late payment). 11. Events of Default 11.1. Any of the facts listed below shall be deemed to be an Event of Default: a) The Client makes default in payment of any financial liability under the Contract; b) The Client uses the Credit for another purpose than that agreed upon in the Contract; c) The Client fails to perform any obligation imposed on him/her by the Contract, or the Client or the person providing the security fails to perform any obligation imposed by the contract by which the security is established as per the Contract, made between the Client or provider of the security on one hand and the Bank on the other, while this is not another Event of Default and the above breach is not remedied within the period of 10 Komerční banka, a. s. 7/11

calendar days from the date at which the Client or the provider of the security has been liable to perform the obligation; d) Any statement made under the Contract or securing documents is or shall become inaccurate, incomplete or misleading while, in the Bank's opinion, this fact affects or may affect the Client's ability to perform his/her commitments under the Contract; e) Any document, confirmation or other statement by a third party is or becomes inaccurate, incomplete, invalid or misleading while, in the Bank s opinion, this fact affects or may affect the Client s ability to perform his/her commitments under the Contract; f) Legal action is taken against the Client or the Client is finally convicted of an offence after having entered into the Contract; g) The Client s financial situation deteriorates to the extent that the repaying/return of the provided Credit might be threatened (e.g., the Client s assets are subject to an execution of a ruling or distress, or exercise of a lien, or insolvency proceedings concerning Clients assets or other proceedings with similar legal effects are opened before the court); h) Securing of the Client's liabilities pursuant to the securing documents ceases to exist, deteriorates or becomes ineffective, or is declared as such by the Client or the provider of the security, or such security is disputed in any other way, or insolvency proceedings/other proceedings with similar legal effects are opened before the court concerning assets of the provider of the security, which are the subject of security of the Credit or any part thereof; i) The Client breaches any obligation under another contract entered into by him/her and the Bank; j) The Client dies or is pronounced dead; k) The Client is divested of legal capacity or his/her legal capacity is limited; or l) Client s common marital property ceases o exist during the effective period of the Contract in case that both spouses are Clients, and at the same time the Client fails to settle his/her liabilities under the Contract upon Bank s request or, in the Bank s opinion, the Bank s rights under the Contract may be prejudiced by the Client s property settlement agreement. 11.2. If any of the events listed above in Article 11.1 occurs, the Bank shall be entitled to: a) Cancel the Contract; b) Not to release Client's funds kept in Clients accounts with the Bank up to the total amount of all outstanding receivables of the Bank in respect of the Client under the Contract; c) Satisfy the Bank's due receivables with respect to the Client arising under the Contract or in connection therewith by debiting the Client s accounts kept with the Bank. For the purpose of the settlement pursuant to the foregoing sentence, the Bank shall also be entitled to use the funds in the deposit accounts or deposits, and to do so even before prearranged due dates of such deposit accounts or deposits. In such case, the Bank shall be Komerční banka, a. s. 8/11

entitled to charge the Client with a fee for early drawing and other charges in accordance with the relevant Product Terms and Conditions. The Bank shall also be entitled to satisfy its due receivables from the debit balance up to the amount of an authorised debit balance prearranged for Client's current accounts kept with the Bank; d) Disable the Drawing of a hitherto undrawn (unutilised) portion of the Credit; e) Demand additional securing of its receivables under the Contract; f) Demand instant repayment of the Credit or a portion thereof plus interest and service payments; g) Increase the interest rate by up to 25% per annum. 11.3. The Bank shall be entitled to apply, at its discretion, one or more aforesaid measures, whether concurrently or in sequence. The Bank shall notify the Client in writing of the measures to be applied as well as of the reason of its decision and of the effective date of the measures. A measure shall come into effect as at the date of delivery to the Client of the notice in the manner specified in this Article unless set forth otherwise by the Bank, however no sooner than on the day on which the Event of Default has occurred. 12. Default Interest 12.1. In case that the Client makes default (falls behindhand) in repaying any of his/her financial liabilities under the Contract, the Bank shall be obliged to claim default interest as set forth in the Notice on Interest Rates, starting from the first day of default until the outstanding amount is fully repaid. 12.2. Default interest shall become due and payable at the moment the Bank becomes entitled to be paid such interest. The default interest shall be paid in the manner set forth in the Contract for repaying the Credit principal and contractual interest on the Credit. This provision shall not prejudice the Bank s right to settle the default interest in accordance with Article 11(2)(c) hereof. 12.3. In case that the Client repays the outstanding amount within 5 calendar days after it has become due, his/her obligation to pay default interest to the Bank shall lapse. 12.4. Paying up of the default interest shall not exempt the Client from his/her duty to compensate the Bank for any loss or damage incurred as a result of the Client's being in default. 13. Definition of Terms Terms in these Conditions that begin with a capital letter have the following meanings Application shall mean the Client's application for the Drawing submitted by the Client to the Bank, made on a properly completed Bank s form. Bank shall mean Komerční banka, a.s., registered office at Prague 1, Na Příkopě 33/969, Postal Code: 114 07, IČ (Company ID): 45317054, entered in the Komerční banka, a. s. 9/11

Commercial Register kept by the Municipal Court in Prague, Section B, Insert 1360. Banking Services shall mean any banking deals, services and products provided by the Bank based on its banking licence, including investment services provided by the Bank acting as a security broker/dealer. Business Day shall mean a day that does not fall on a Saturday, Sunday, public holiday or other holidays within the meaning of the applicable law, on which the Bank is open for the provision of Banking Services and on which other institutions that take part in the provision of Banking Services, or on which the provision of the Banking Services depends, are open and provide the relevant services. Client shall mean a natural person (non-business) who has entered into the Contract with the Bank, based on which the Bank provides such person with the Credit. Conditions Precedent of the Drawing shall mean the conditions set forth in the Contract upon meeting of which the Bank shall provide the Client with the Drawing. Contract shall mean the contract based on which the Bank undertakes to provide the Client with a Credit under agreed terms and conditions. The General Conditions and these Credit Conditions are part of the Contract. Credit shall mean financial means (funds) the Bank signs up to render to the Client for a prearranged period of time and up to a prearranged amount, under the conditions set forth in the Contract. Credit Currency shall mean the currency in which the Credit Facility is denominated. Credit Facility shall mean the maximum amount of the Credit set forth in the Contract. Drawing or Drawdown shall mean provision of a Credit pursuant to the Contract after the Conditions Precedent of the Drawing have been met. Drawing Period shall mean a period of time set forth in the Contract in the course of which the drawing of the Credit is possible. Due Date shall mean the date by which the Client shall be obliged to repay the Credit, a portion of the principal of the Credit, or interest, or to make another payment to the Bank under the Contract. Event of Default shall mean any event or situation described under Article 11.1 hereof, or an event or situation specified as an Event of Default in the Contract. Exchange Rate or Rate shall mean an exchange rate published by the Bank. Notices shall mean communications in which the Bank, in accordance with the General Conditions or relevant Product Terms and Conditions, specifies terms and Komerční banka, a. s. 10/11

conditions and technical features of providing the Banking Services, which the Bank is entitled to change. The Bank makes the Notices public at the Bank's points of sale or on its website. Notice on Interest Rates shall mean an overview of all interest rates applied to deposits and credits, as well as associated rates. This overview is not a Notice as envisaged in the General Conditions. Product Terms and Conditions shall mean Bank s terms and conditions regulating the provision of separate Banking Services. Rules shall mean the rules applied to the time order of the settlement (satisfying) of receivables set by the Bank and governing the sequence of performance of the Client s due liabilities to the Bank in case that the Client has multiple due liabilities in respect of the Bank at a certain moment, while the supply performed by him/her is insufficient to cover all due liabilities of the Client in respect of the Bank. The Bank shall publish the Rules at its points of sale. A change/amendment to the Rules shall become effective as soon as the updated version of the Rules is published at the Bank s point of sale. Subject of the Credit shall mean movable asset or real property, a set of assets, or a right acquired by the Client due to the Credit. Tariff of Fees shall mean a list of all charges as set down by the Bank, other fees and payments for the Banking Services or associated therewith, issued and amended by the Bank. The Tariff of Fees is available at the points of sale of the Bank and, abbreviated, also on the Bank's website. 14. Final Provisions 14.1 The Bank shall be entitled to amend these Conditions on an ongoing basis in the manner set forth in the General Conditions. 14.2 These Credit Conditions repeal and replace the Credit Conditions for Natural Persons /Non-Business/ effective as of 01 January 2011. 14.3 These Credit Conditions come into effect as of 15 July 2011. Komerční banka, a. s. 11/11