Share savings plan in:

Tax domicile

You can open a PEA as long as you resident for tax purposes in France.

Signature of a contract

When opening the PEA, you sign a contract with the bank.

The opening date is the date of 1^er payment.

It is forbidden to hold several PEA-SME-mid-caps at the same time.

Indeed, the number of PEA-SME-mid-caps is limited to one per person, and two per tax household.

However, it is possible to combine an SME-EAP with a bank EAP or with an insurance EAP.

The bank that receives your application to open PEA-PME-ETI must inform you of the prohibition on holding 2 PEA-PME-ETIs, and ask you whether you already hold an PEA-PME-ETI in another institution or not.

Disbursements and authorized uses

Only the cash payments are allowed. They are running a cash account to buy securities.

The securities acquired are then recorded in a securities account.

Only certain securities may be acquired by payments made to the PEA and entered in the securities account.

These securities must be held by:

• Plan holder
• Person he/she lives with as a couple
• Ascending or descendant

Securities which may be the subject of direct investment

The funds paid out of the PEA-SME-ETI are intended for the financing of small and medium-sized companies and mid-sized companies.

They may be invested in the following securities:

• Shares (excluding preferential shares), or business investment certificates, and cooperative investment certificates
• Shares of SARLSARL : Limited liability company or businesses of equivalent status, and securities representing the capital of cooperative businesses
• Bonds convertible or redeemable in shares (excluding bonds redeemable in unquoted shares)
• Participating securities and fixed-rate bonds acquired through a trader of an investment service provider or a participatory investment advisor via a website approved by the Autorité des marchés financiers.
• Preferential subscription rights issued in the context of a capital increase, allocated to the plan holder and relating to listed securities already held on the PEA.

If the business issuing the securities is a unquoted company, it must have an employed staff of less than 5,000 people and an annual turnover which does not exceed €1.5 billion, or a balance sheet total which does not exceed €2 billions.

If the issuing business is a quoted companyIt must have a market capitalization less than €2 billions or it must to have had market capitalization less than €2 billions in at least one of the last 4 previous calendar years.

The possibility of a business' securities being purchased by the money invested in the PEA-SME-ETI is examined on the basis of its accounts. In particular, the examination shall cover the penultimate closed accounting year preceding the date of acquisition of the securities in the plan.

Once a security is acquired in the PEA-PME-ETI, it can be retained there even if the accounting situation of the business subsequently changes on the basis of the number of employees, turnover or balance sheet total. The same is true if the market capitalization criterion is changed.

But if the business issues new securities, its accounting situation will be reviewed again before these securities can also benefit from the investments of the PEA-SME-ETI.

Securities which may be subject to indirect investment

Indirect investment is the purchase of securities from a business whose business is to invest on behalf of others.

Amounts paid to the PEA-SME-ETI may be indirectly invested in the following securities:

• Shares in open-end investment businesses, the capital of which is more than 75%of securities ofETIETI : Midmarket Enterprise, of which at least two thirds are shares, shares, investment certificates or bonds which are convertible or redeemable into shares
• Mutual fund shares (UCITSUCITS : Collective investment undertaking for transferable securities, SicavSicav : Investment company with variable capital, etc.), more than 75 % of whose capital is made up of mid-cap securities, at least two thirds of which are shares, shares, investment certificates or bonds which are convertible or redeemable into shares
• Units of collective investment undertakings (UCITS, Sicav, etc.) established in the European Economic Area, whose capital is composed of more than 75% of mid-cap securities, of which at least two thirds are shares, shares, investment certificates or bonds which are convertible or redeemable into shares
• Shares in risk-bearing mutual funds or commercial business securities which qualify for exemption from risk capital businesses
• Shares or shares of AIF authorized, provided that more than half of their assets are permanently invested in shares, shares, investment certificates or bonds which are convertible or redeemable into shares and that they do not hold dematerialized real estate assets.

The remuneration of the PEA is uncertain, as it depends on the stock market return of the investment vehicles chosen (shares or shares inOPC).

In the case of a good return on the investment vehicles, the remuneration of the PEA may come from dividends and interest generated by the investments or from the capital gains realized on the occasion of the sales.

The ceiling for the PEA-SME-ETI is €225,000. Its calculation does not take into account the gains made since the opening of the plan.

The EAP income tax depends in particular on the date of withdrawal.

The revenues of the PEA are subject to the social security contributions regardless of the date of withdrawals.

The following operations result in the closure of the EAP:

• Any withdrawal before 5 years (except in authorized cases)
• Non-compliance with one of the operating conditions (e.g. exceeding the ceiling on payments)
• Death of the holder
• Withdrawal after 5 years of all sums or values and conversion of capital into life annuity.