شرة يؼهىيبث. Information Memorandum ه ا عرص س ٠ ا ؽر ١ لساءج شسج ا و اخ لث اذخاذ أ لساز اظرص از تشؤ ا ظ د ق

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1 All the information and terms included in the Information Memorandum (IM) of Osool & Bakheet Saudi Trading Equity Fund (the Fund) managed by Osool & Bakheet Investment Company is in compliance with the Investment Funds Regulations issued by the Capital Market Authority of the Kingdom of Saudi Arabia إ ظ ١ ن ا و ااخ ا ث ا ا ا ارو زج نا شاسج ا و ااخ ا خاطح تظ د ق أط ي تخ ١ د رااظسج تاسظا ا عاو ا ٠ ح ا ر ذد ٠ س شسوح أط ي تخ ١ د االظرص از ٠ ح اتك سؼىاا الئؽح ط اا ٠ ك االظارص از ا راتواح ١ اح ا عا ق ا ا ١ اح نا ا ىح ا وست ١ ح ا عو ا ٠ ح شرة يؼهىيبث Information Memorandum Jumada II March 1438H 2017G ظ اا ا صا 3418 ا ازض 1037 ه ا عرص س ٠ ا ؽر ١ لساءج شسج ا و اخ لث اذخاذ أ لساز اظرص از تشؤ ا ظ د ق Potential Investors must read this IM before making an investment decision related to the Fund Certificate No: ONT

2 In the name of Allah the most merciful and compassionate, and peace be upon Prophet Mohammad and his companions. This Information Memorandum ( IM ) sets out the Terms and Conditions of Osool & Bakheet Saudi Trading Equity Fund, an investment Fund that has been established according to the Investment Funds Regulations issued by the Capital Market Authority of the Kingdom of Saudi Arabia. Potential investors must read this IM thoroughly, as it contains detailed information about the Fund. Important Notice Potential Investors must read this IM before making an investment decision related to the Fund. Investing in stocks involves high risk; however, investing in the Fund is relatively less risky than direct investment in the stock market due to the diversity of the Fund s investments. Investors should carefully read Article 12 Principal Investment Risks of the Fund s Terms and Conditions, to familiarize themselves with the Fund s potential risks. The Fund invests its capital in companies whose stocks are listed on the Saudi Stock Market that are compliant with the Shariah criteria set forth by the Shariah supervisory committee of the Fund, no more than 30% of its asset value in REITs and not more than 30% of its asset value in listed companies in the parallel market (Nomu) Stocks. The Fund Manager confirms that all information and terms in this IM are in compliance with the Investment Funds Regulations issued by the Capital Market Authority of the Kingdom of Saudi Arabia. The data contained in this IM have been collected from sources that we believe to be true and precise as of the date of this IM and no material facts known to the Fund Manager have been omitted from this IM to mislead potential investors. Additionally the IM does not guarantee that the information and forecasts herein will continue to be valid and complete after the publication date of this IM. CMA approved the offering of the Units of this Fund on 12/03/1428H, corresponding to 31/03/2007G. This IM has been prepared to present all the information which could help potential investors in their decision to subscribe to the Fund. However, neither the information presented in this IM nor the Fund Manager s views should be considered a recommendation to purchase Units in the Fund. تعاا او ا ظاااج ا عااا ه اا زظاا ي او ه اا اا طااؽث أظ و ١ تود: ار شاسج اطاح تا شاس ؽ اسؼىاا اا وطا د ق أطا ي تخ ١ اد راظسج تاسظ ا عو ا ٠ حو ط د ق اظرص از راص تائؽاح ط اا ٠ ك االظرص از ا ظاازج ا ١ اح ا عا ق ا ا ١ اح نا ا ىاح ا وست ١ ح ا عو ا ٠ ح. ٠ عة ه ا شرسن ن ا ظا د ق لاساءج شاسج ا و ااخ ا خاطاح تا ظا د ق لاساءج ذا اح ؼ ١ اس أ اا ذؽرا ه ا و اخ ذفظ ١ ١ ح ه ا ظ د ق. إشؼبر هبو ه ا عرص س ٠ ا ؽر ١ لساءج شسج ا و اخ لث اذخااذ أ لساز اظرص از تشؤ ا ظ د ق. إ االظاارص از ناا اسظاا ٠ اا ه اا خاااؿسج ها ١ ااح إال أ االظارص از نا ا ظا د ق ٠ ورثاس أوصااس أ ا اا عاث ١ ا ا االظاارص از ا ثاشس ن ظ ق اسظ لسا ر ٠ ن االظرص از. ٠ سظا االؿاام تو ا ٠ اح ه ا ا فماسج 31( ا شاس ؽ أؼىاا ا ظا د ق وا خااؿس ا سئ ١ عح اظرص از ن ا ظ د قو روسف ه ا خاؿس ا ؽر اح اظرص از ن ا ظ د ق. ٠ عااارص س ا ظااا د ق أ ا ااا نااا أظااا ا شاااسواخ ا عاااو ا ٠ ح ا عاا ح ا ر انماح ان ا ؼا اتؾ ا شاسه ١ ح ا را ذمس اا ا ع اح ا شسه ١ ح ظ د ق و ا ٠ ى أ ٠ عرص س ا ظ د ق ا ال ٠ ص ٠ د ه %10 اا طااان ل ١ ااح أطاا ا ظاا د ق ناا ا ؼااداخ ا وماز ٠ ااح ا ردا ح ا ال ٠ ص ٠ د ه %10 طاان ل ١ اح أطا نا أظا ا شسواخ ا دزظح ن ا ع ق ا عو ا ٠ ح ا اش ٠ ح. ٠ مس د ٠ س ا ظ د ق تؤ ظ ١ ن ا و اخ ا ث ا ا ارو زج نا ار ا شسج ذ رص تائؽح ط اا ٠ ك االظرص از ا ظااازج ا ١ اح ا عا ق ا ا ١ ح ن ا ىح ا وست ١ ح ا عو ا ٠ ح. مد ذ ذع ١ ن ت ١ ا اخ ر ا شاسج ا ظاااز ورماد أ اا طاؽ ١ ؽح ال ١ مح ن ذاز ٠ خ إهداا ا و ا أ ٠ ر إ فاء أ هد ذؼ ١ أ ٠ اح و اخ وس نح د ٠ ا ت ادف ذؼا ١ ا عارص س. و اا أ ا شاسج ال ذؼ اظر ساز ٠ ح طؽح و ااي ا و ااخ ا ر لوااخ ا ا ازاج هماة ذاز ٠ خ اإلهداا. انمد ١ ح ا ع ق ا ا ١ ح ه ؿسغ ؼداخ را ا ظ د ق ترااز ٠ خ 3418/01/31 ا ا انك 1007/01/13. مد ذ إهداا شسج ا و اخ ر ت دف ذماد ٠ ظ ١ ان ا و ااخ ا ر ذعاهد ا عرص س ٠ ه اذخاذ لسازاذ تشؤ االشرسان ن ا ظا د ق. ان ذ اه نئ ا ال ٠ عاة اهرثااز أ و ااخ نا ار ا شسج أ زاء د ٠ س ا ظ د ق ور ط ١ ح شساء ؼداخ ا ظ د ق. The Fund Manager name and address: Osool &Bakheet Investment Company P. O. Box Riyadh Kingdom of Saudi Arabia Tel: Fax CRD@OBIC.COM.SA اسى وػ ىا يذ ر انص ذوق: شسوح أط ي تخ ١ د االظرص از ٠ ح ص.ب ا س ٠ اع ا ىح ا وست ١ ح ا عو ا ٠ ح اذف: ناوط: تس ٠ د ا ىرس : CRD@OBIC.COM.SA عخح Version

3 Fund Summary: يهخص دن م انص ذوق: Fund Name: Osool & Bakheet Saudi Trading Equity Fund Initial Offer Price: SAR 1.00 االسى انرس : ط د ق أط ي تخ ١ د راظسج تاسظ ا عو ا ٠ ح سؼر االكخخبة نهىدذة: 3.00 ز ٠ اي ظو ا Minimum Initial Subscription Amount: SAR 10,000 انذذ األد نالكخخبة نه سخث ر انىادذ: 30,000 ز ٠ اي ظو ا Subscription Commencement Date: 19 Rabia Awal 1428H (April 7, 2007G) حبر خ بذا ت االكخخبة: 39 زت ١ ن اس ي 3418 ا - 7 إتس ٠ 1007 Subscription Last Date: 19 Rabia Thani 1428H (May 6, 2007G) حبر خ اال خهبء ي االكخخبة: 39 زت ١ ن ا ٢ س 3418 ا - 6 ا ٠ 1007 Cut Off Time For Receiving Subscription and Redemption Applications: Every business day before closing the market يىاػ ذ اسخالو عهببث االشتخراكبث واالستخرداداث: وا ٠ ا ه ا لث إغاق ا ع ق. Dealing Days: Every Business Day of the Market أ بو انخؼبيم: و ٠ ه ذو ن ١ ا ع ق Term of the Fund: Unlimited ػ ر انص ذوق: غ ١ س ؽدا فر غ ا دج Fees and Expenses: See Article (13) of the Terms and Conditions انرسىو وان صبر ف: أ لس ا فمسج 31( ا شس ؽ اسؼىا Related Parties األعراف روو انؼاللت: Fund Manager: Osool & Bakheet Investment Company Commercial Registration No. ( ), CMA License No. ( ) to offer management, Dealing and custody services, address: Riyadh - King Fahad Road - Olaya district - Bahrain Tower - mezzanine floor, P.O. Box Riyadh Kingdom of Saudi Arabia, Tel , Fax , website: Custodian: Osool & Bakheet Investment Company Commercial Registration No. ( ), CMA License No. ( ) to offer custody service, address: Riyadh - King Fahad Road - Olaya district - Bahrain Tower - mezzanine floor, P.O. Box Riyadh Kingdom of Saudi Arabia, Tel , Fax , website: Auditor: KPMG Al Fozan & Al Sadhan P. O. Box 92876, Riyadh 11663, Kingdom of Saudi Arabia, Tel , Fax Legal Advisor: AlGasim and Al Zamakhshari Lawyers & Consultants P. O. Box 89402, Riyadh 11623, Kingdom of Saudi Arabia, Tel , Fax Shariah Committee: Sheikh: Dr. Ershad Ahmed Sheikh: Aziz Arahman. P. O. Box 13013, Manama- Kingdom of Bahrain Tel يذ ر انص ذوق: شسوح أط ي تخ ١ د االظرص از ٠ ح ظع ذعاز زل ( ز ض ت اءا ه الئؽح اسشخاص ا س ض ا ١ اح ا عا ق ا ا ١ اح زلا ( رماد ٠ اد اخ اإلاازج ا روا ا ا ؽفق ا و ا : ا س ٠ اع ؿس ٠ ك ا ه ن د ؼ ا و ١ ا تسض ا ثؽس ٠ ا ز ا ١ صا ١ ص.ب ا س ٠ اع ا ىاح ا وست ١ اح ا عاو ا ٠ ح ااذف: ناااااااااااوط ا لاااااااااان اال ىرس اااااااااا أي انذفظ: شسوح أط ي تخ ١ د االظرص از ٠ ح ظع ذعاز زل ( ز ض ت اء ه الئؽح اسشخاص ا س ض ا ا ١ اح ا عا ق ا ا ١ اح صا اح اح ا ؽفاق زلا ( ا و ا ا : ا س ٠ اع ؿس ٠ ك ا ه ن د ؼ ا و ١ ا تاسض ا ثؽاس ٠ ا ز ا ١ اصا ١. ص.ب ا س ٠ اع ا ىاح ا وست ١ اح ا عاو ا ٠ ح ااذف: ناوط ا لن اال ىرس يراجغ انذسبببث: KPMG ا ف شا ا عدؼا ا و ا : ص.ب ا س ٠ اع ا ىح ا وست ١ ح ا عو ا ٠ ح اذف: ناوط: ان سخشبر انمب ى : ا ماظا ا ص خشاس ؽاا عرشااز ا و ا : ص.ب ا س ٠ اع ا ىح ا وست ١ ح ا عو ا ٠ ح اذف: ناوط انهج ت انشرػ ت: نؼ ١ ح ا ش ١ خ / ا.إزشاا أؼ د نؼ ١ ح ا ش ١ خ / هص ٠ ص ا سؼ ا و ا : ص.ب ا ا ح - ىح ا ثؽس ٠ اذف: عخح Version

4 Glossary: لبئ ت ان صغهذبث: The Company: Osool & Bakheet Investment Company. Fund Manager: Osool & Bakheet Investment Company. Board of Directors: The Board of Directors of Osool& Bakheet Saudi Trading Equity Fund. Custodian: Osool & Bakheet Investment Company. CMA: The Capital Market Authority. Market: The Saudi Markets including the main market (Tadawel) and the parallel market (Nomu).. Fund: Osool & Bakheet Saudi Trading Equity Fund. Benchmark: S&P Saudi Arabia Shariah Index Units of the Fund: The Fund is divided into units of equal benefits and rights. Conflict of Interest: : A situation or position where the Fund Manager s objectivity and independence may be influenced by his own interest which may be in conflict with the Fund s interest. Investment Funds Regulations: Investment Funds Regulations issued by the CMA. Risks: Potential factors that may negatively impact the Fund and that should be considered before making an investment in the Fund. Subscribers: The Unit holders or investors in the fund. Auditor: KPMG Al Fozan & Al Sadhan انشركت: شسوح أط ي تخ ١ د االظرص از ٠ ح يذ ر انص ذوق: شسوح أط ي تخ ١ د االظرص از ٠ ح. يجهس اإلدارة: ع ط إاازج ط د ق أي انذفظ: شسوح أط ي تخ ١ د االظرص از ٠ ح انه ئت: ١ ح ا ع ق ا ا ١ ح. أط ي تخ ١ د راظسج تاسظ ا عو ا ٠ ح. انسىق: أظ اق االظ ا عو ا ٠ ح ذش ا ع ق ا ا ١ ح ا عو ا ٠ ح ذدا ي( أ ا ع ق ا سئ ١ ع ١ ح ا ع ق ا اش (. انص ذوق: ط د ق أط ي تخ ١ د راظسج تاسظ ا عو ا ٠ ح. ان ؤشر االسخرشبد : ؤشس ظرا دزا أ د ت زش سظ ا شسواخ ا عو ا ٠ ح ا ر انمح ن ا ؼ اتؾ ا شسه ١ ح. ودذاث انص ذوق: ٠ مع ا ظ د ق ؼداخ ا ا م ١ ح ا ١ صاخ ا ؽم ق ا رعا ٠ ح ذاذ ا. حضبرة ان صبنخ: ا ػن أ ا لف ا ر ذرؤشس ن ١ ػ ه ١ ح اظرما ١ ح لساز د ٠ س ا ظ د ق ت ظ ؽح شخظ ١ ح اا ٠ ح أ و ٠ ح. الئذت ص بد ك االسخث بر: الئؽح ط اا ٠ ك االظرص از ا ظاازج ه ١ ح ا ع ق ا ا ١ ح. ان خبعر: ع هح ا ؤشساخ ا ؽر ح ا ر ٠ عة اإل ا ت ا االؼرساش ا لث اذخاذ ا مساز االظرص از. ان شخركى : ا ى ؼداخ ا ظ د ق. يراجغ انذسبببث: KPMG ا ف شا ا عدؼا Legal Advisor: AlGasim and Al Zamakhshari Lawyers & Consultants ان سخشبر انمب ى : ا ماظ ا ص خشس ؽا عرشاز Shariah Committee: Sheikh: Dr. Ershad Ahmed Sheikh: Aziz Arahman. انهج ت انشرػ ت: نؼ ١ ح ا ش ١ خ/ ا.إزشاا أؼ د نؼ ١ ح ا ش ١ خ/ هص ٠ ص ا سؼ Business Day: Official working days in the Kingdom of Saudi Arabia as per the Capital Market Authority. ىو ػ م: أ ٠ ه ن ا ىح ؿثما س ٠ ا ا و ا سظ ١ ح ن ا ١ ح. Dealing Day: any day in which the Units of the Fund can be redeemed or subscribed in. Calendar Day: any day, whether Business Day or not. Companies stocks: refers to common and preferred shares in both the main and parallel market (Nomu), shares offered in initial public offerings, rights to acquire shares in capital increase rights offerings and shares auctioned off during right issues transactions subscription. Real Estate Investment Traded Fund (REIT): A real estate investment fund that is publicly offered and the units of which are traded on Exchange, whose primary investment objective is to invest in constructionally developed real estates qualified to generate periodic and rental income. ىو انخؼبيم: أ ٠ ر ٠ ن ١ ت ١ ن اظرسااا ؼداخ ط د ق االظرص از. ىو حمى : أ ٠ ظ اء أوا ٠ ه أ ال. أسهى انشركبث: أظ ا شسواخ ا واا ٠ ح ا راشج ن ا ع ق ا سئ ١ ع ١ ح ا ع ق ا اش أظ االطدازاخ اس ١ ح أظ ؼم ق اس ٠ ح اسظ ا رثم ١ ح ه ١ ح اإلورراب ن ؼم ق اس ٠ ح.. انىدذاث انؼمبر ت ان خذاونت: ؼداخ ذعرص س ن همازاخ زج ذ ٠ س ا.إ شائ ١ ا لات ح رؽم ١ دق ا ا ز ذؤظ ١ س عخح Version

5 Osool & Bakheet Saudi Trading Equity Fund Terms & Conditions 1. Name of the Investment Fund: " Osool &Bakheet Saudi Trading Equity Fund" (the Fund) was established by Osool & Bakheet Investment Company after receiving approval from the CMA on ( 12 Rabia Awal 1428H), corresponding to (31 March 2007G). The fund is an open-ended long-term (unlimited term) investment plan which is designed to provide investors (Unit Holders) the opportunity to collectively participate in the Fund's returns through purchasing Units in the Fund 2. Address of the Fund Manager: Osool & Bakheet Investment Company (the Fund Manager), commercial registration No. ( ), CMA license No. ( ) provides management, Dealing and custody services, address: Riyadh - King Fahad Road - Olaya district - Bahrain Tower - mezzanine floor,, P.O. Box Riyadh Kingdom of Saudi Arabia, Tel , Fax , Website ص ذوق أصىل و بخ ج نه خبجرة ببألسهى انسؼىد ت انشروط واألدكبو 1 اسى ص ذوق االسخث بر: أظعد شسوح أط ي تخ ١ د االظرص از ٠ ح وط د ق أط ي تخ ١ د راظسج تاسظ ا عو ا ٠ حو ا ظ د ق( تود ا ؽظ ي ه انمح ١ ح ا ع ق ا ا ١ ح تراز ٠ خ 31 زت ١ ن اس ي 3418 ا( ا انك 13 ازض 1007 (. تس ا ط اظرص از ؿ ٠ اسظ فر غ ا ا ٠ ح غ ١ س ؽدا ا دج( ٠ دف إ إذاؼح ا فسطح عرص س ٠ ا شرسو ١ ( ن ١ تا شازوح ظ اه ١ ا ن هائد ا ظ د ق ه ؿس ٠ ك شساء ؼداخ ا ظ د ق. 2 ػ ىا يذ ر انص ذوق: شااسوح أطاا ي تخ ١ ااد االظاارص از ٠ ح و ااد ٠ س ا ظاا د قو( ظااع ذعاااز زلاا ( ذس ١ ض ١ ح ا ع ق ا ا ١ ح زلا ( رماد ٠ اد اخ اإلاازج ا روا ا ؽفق ا و ا : ا س ٠ اع ؿس ٠ ك ا ه ن د ؼ ا و ١ ا تاسض ا ثؽس ٠ ا ز ا ١ صا ١ ص.ب ا س ٠ اع ا ىح ا وست ١ ح ا عو ا ٠ ح اااااذف: ناااااوط ا لاااان اال ىرس اااا 3. Date of Commencement: The Fund is open for subscription starting from (19 Rabia Awal 1428H), corresponding to (April 07, 2007G). 39 زت ١ ن اس ي 3418 ا( ا اناك 7 3 حبر خ انبذء: ظ ١ ثدأ لث ي االشرساواخ ن ا ظ د ق تراز ٠ خ إتس ٠ 1007 (. 4. The Regulatory Authority: These Terms and Conditions are in compliance with the rules and regulations issued by the Capital Market Authority of the Kingdom of Saudi Arabia, the regulator of the Saudi Capital Market. The Fund Manager is licensed by the CMA to offer management, Dealing and custody services under License No. ( ). The Company s Asset Management Division was appointed by the Fund Manager to manage and supervise the Fund. 5. Date of Issue of these Terms and Conditions: Terms and Conditions of the Fund were issued on (12 Rabia Awal 1428H), corresponding to (March 31, 2007G). The last updated has been with the Fund Terms & condition dated on (15/66/1438H) corresponding to (14/63/2017G). 6. Subscription: The minimum initial subscription to invest in the Fund is SAR 10,000 (Ten thousand Saudi Riyals), while the minimum additional subscription or redemption is SAR 10,000 (Ten thousand Saudi Riyals). A minimum investment of SAR 10,000 (Ten thousand Saudi Riyals) must be maintained in the Fund. The Fund Manager may, at his own discretion, accept lesser amounts.(subscription amounts during the initial offering period are governed by Article 22 of these Terms and Conditions). 7. Currency of the Fund: The Fund dealings are in Saudi Riyals only "SAR". Subscribers should make their deposits only in SAR, All overseas remittances and foreign currency deposits will be accepted as the actual exchanged amounts in SAR. 8. Fund s Investment Universe: The Fund investment universe includes all stocks listed on the Market that are compliant with the Shariah criteria set forth by the Shariah supervisory committee of the Fund including investing in the REITs and the stocks listed on the parallel market (Nomu). 4 انه ئت ان ظ ت: ذرثن ر ا شس ؽ اسؼىا ا ائػ ا ظاازج ه ١ ح ا ع ق ا ا ١ ح ن ا ىح ا وست ١ ح ا عاو ا ٠ ح ا ا ع اح ا ل اح و ا ا عا ق ا ا ١ اح نا ا ىاح ا وست ١ ح ا عو ا ٠ ح. لد ؼظ د ٠ س ا ظ د ق ه ز ض اإلاازج ا روا ا ؽفاق لث ١ ح ا عا ق ا ا ١ اح تسلااااااا ( لاد و اف اد ٠ س ا ظا د ق لع إاازج اسط ي ن ا شسوح تئاازج ا ظ د ق اإلشساف ه ١. 5 حبر خ إصذار شروط وأدكبو انص ذوق: طدزخ شس ؽ أؼىا ا ظ د ق تراز ٠ خ 31 زت ١ ن اس ي 3418 ا( ا انك 13 ازض 1007 (. لد ذا أ اس ذؽاد ٠ س شاس ؽ أؼىاا ا ظا د ق ترااز ٠ خ 3418/06/15 اا ا انك 1037/01/34. 6 االشخران: إ ا ؽد اسا اشرسان 30,000 هشسج الف( ز ٠ اي ظو ا ا ؽاد اسا ا إلػانح االظرسااا 30,000 هشسج الف( ز ٠ اي ا ؽد اسا سط ١ د ا رثم 30,000 هشسج الف( ز ٠ اي ٠ ى د ٠ س ا ظ د ق لث ي ثاا ألا ا ذ اه ن ا ؽاالخ ا را ٠ سا اا اظاثح. ذخؼان ثاا االشارساواخ ااي نراسج ا اسغ اس ااج 11( ر ا شس ؽ اسؼىا (. 7 ػ هت انص ذوق: ٠ روا وا ظ د قو تا س ٠ اي ا عو ا نمؾ. ٠ عة ه ا شرسو ١ إ ٠ دام أ ا ا ن ؼعاب د ٠ س ا ظ د ق تا س ٠ اي ا عو ا نمؾ ٠ وا اد ٠ س ا ظا د ق ظ ١ ان ا ؽ االخ ا ازاج ازض ا ىح أ أ ه ااخ غ ١ اس ا س ٠ ااي ا عاو ا تا ثاا ا فو ١ ح ا عر ح تا س ٠ اي ا عو ا. 8 يجبل اسخث بر انص ذوق: ٠ ش عاي اظرص از ا ظ د ق ظ ١ ن اسظ ا دزظح نا ا عا ق ا ر انماح ن ا ؼا اتؾ ا شاسه ١ ح ا را ذمس اا ا ع اح ا شاسه ١ ح ظا د ق ٠ شا عااي االظاارص از أ ٠ ؼااا أظاا ا شااسواخ ا دزظااح ناا ا عاا ق ا عااو ا ٠ ح ا اش ٠ ااح تاإلػانح إ االظرص از ن ا ؼداخ ا وماز ٠ ح ا ردا ح عخح Version

6 9. Benchmark: S&P Saudi Arabia Shariah Index. 10. Fund s Objectives: The Fund primarily aims to maximize capital growth through achieving positive returns (versus its benchmark, the "S&P Saudi Arabia Sharia Index") while minimizing potential risks through investing in Saudi Joint stock companies that are compliant with Shariah criteria and, no more than 30% of its asset value in REITs and not more than 30% of its asset value in listed companies in the parallel market (Nomu) Stocks, in addition of investing the Fund s available liquidity in low risk and highly liquid Saudi Riyal assets (such as Murabaha and Murabaha funds in Saudi Riyal). The Fund is an open-ended investment Fund. No dividends will be distributed to Subscribers; all profits realized shall be reinvested in the Fund, and thereby reflected in the Fund s Unit price. 11. Investment Strategy The Fund s Investment strategy can be summarized as follows: (1) The Fund invests in companies whose stocks are listed on the Saudi Stock Market that are compliant with the Shariah criteria set forth by the Shariah supervisory committee of the Fund as well as no more than 30% of its asset value in REITs and not more than 30% of its asset value in listed companies in the parallel market (Nomu) Stocks, in addition of Murabaha and Murabaha funds in Saudi Riyal approved by the Shariah supervisory committee. (2) The compliance of the Saudi joint stock companies with Shariah criteria shall be reviewed following the publication of their quarterly financial statements. If any of the companies in which the Fund invests is not in compliance with Shariah criteria, such shares will be sold within a period not exceeding 14 Calendar Days from the date of review. (3) Investments shall focus on diversification and allocation of assets over Market sectors which are expected to achieve higher profit growth. Focus will be on better performing stocks in terms of financial indicators. (4) The Fund Manager has the right to borrow, subject to the Fund's Board of Directors approval, up to 10% of the net asset value of the Fund and subject to Shariah criteria. (5) The Fund shall abide by the percentage investment limits in companies as defined under Article 39 (Investment Limitation), Part 7 (Fund Management), of the Investment Funds Regulations issued by the CMA. (6) The Fund is designed to be an open-ended long-term investment instrument in order to achieve the Fund's objectives. 12. Principal Investment Risks: The Fund invests its capital in stocks of Saudi companies that are compliant with the Shariah criteria. Investors must be aware that investing in stocks involves a high degree of risk. However, investing in the Fund is relatively less risky than direct investment in shares given the Fund s diversified holdings. In addition, the Fund is not a deposit or a liability of the Fund Manager. The Fund is not guaranteed by Osool & Bakheet Investment Company. Furthermore, the risks that the Fund could be exposed to include the following: (1) Political Risk: Instability in the Middle East may adversely impact the Saudi economy and consequently the Market. (2) Economic Risk: The Saudi economy is an emerging economy which is highly dependent on oil revenues and directly affected 9 ان ؤشر االسخرشبد : ؤشاس ظارا دزا أ اد تا زش سظا ا شاسواخ ا عاو ا ٠ ح ا ر انماح ان ا ؼا اتؾ ا شسه ١ ح. 16 أهذاف انص ذوق: ذر ص أ داف وا ظ د قو ن ذ ١ ح زأض ا اي ا ااي ذؽم ١ اك هائاد عاث ا ٠ عات ماز اح تا ؤشاس االظرسشااا ا ؤشاس ظارا دزا أ اد تا زش سظا ا شسواخ ا عو ا ٠ ح ا ر انمح ن ا ؼا اتؾ ا شاسه ١ ح( ان ذؽ ا أا ا عار ى ا خاؿس ذ ه ااي االظارص از نا أظا ا شاسواخ ا عاو ا ٠ ح ا عا ح ا ر ذر انك ن ا ؼ اتؾ ا شسه ١ ح و ا ٠ ى أ ٠ عارص س ا ظا د ق اا ال ٠ ص ٠ اد ها %10 ا طاان ل ١ اح أطا ا ظا د ق نا ا ؼاداخ ا وماز ٠ اح ا ردا ح ا ال ٠ ص ٠ د ه %10 ل ١ ح أطا نا أظا ا شاسواخ ا دزظاح ناا ا عاا ق ا عااو ا ٠ ح ا اش ٠ ااح تاإلػااانح إ اا اظاارص از ا عاا ١ ح ا مد ٠ ااح ا ر نسج ن ا ظ د ق ن اظرص ازاخ خفؼح ا خاؿس ها ١ ح ا عا ١ ح تا س ٠ ااي ا عاو ا صا ه ١ ااخ ا ساتؽاح طا اا ٠ ك ا ساتؽاح تا س ٠ ااي ا عاو ا (. إ ا ظ د ق و فر غو و ا ٠ ر ذ ش ٠ ن أ ٠ ح أزتاغ ه ا شرسو ١ ن ١ ا تا ظا ١ واا اظرص از ظ ١ ن اسزتاغ ا ؽظ ح ن ا ظ د ق اا ظا ١ وىط ه ا ظاوس ؼادج ا ظ د ق. إسخراح ج ت االسخث بر: ذر خض إظرساذ ١ ع ١ ح إاازج ا ظ د ق ن ١ ا ٠ : 3( ٠ عرص س ا ظ د ق ن أظ ا شاسواخ ا عاو ا ٠ ح ا عاا ح ا ر انمااح اان ا ؼاا اتؾ ا شااسه ١ ح ا ؽااداج اا لثاا ا ع ااح ا شاسه ١ ح ظا د ق وار ه ٠ ىا أ ٠ عارص س اا ال ٠ ص ٠ اد ها %10 طان ل ١ ح أطا ا ظا د ق نا ا ؼاداخ ا وماز ٠ اح ا ردا ح ا ال ٠ ص ٠ اد ها %10 ا ل ١ اح أطا نا أظا ا شسواخ ا دزظح نا ا عا ق ا عاو ا ٠ ح ا اش ٠ اح تاإلػاانح إ االظرص از ن ه ١ اخ ا ساتؽح ط اا ٠ ك ا ساتؽح تا س ٠ ااي ا عو ا ا ؽداج لث ا ع ح ا شسه ١ ح. ظاا ١ ر ازاظااح ذ انااك ا شااسواخ ا عااو ا ٠ ح ا عااا ح اان ا ؼ اتؾ ا شسه ١ ح تود إها ا م ائ ا ا ١ ح ى زتن ظ ح ن ؼاااي هااد ذم ١ ااد أ اا ا شااسواخ ا وااح ناا ا ظاا د ق ؼا اتؾ ا شاسه ١ ح نعا ١ ر ت ١ و اا نا ادج ال ذرعاا ش ٠ ا 34 ذم ٠ ذاز ٠ خ ا دزاظح. ظ ١ ر ذسو ١ ص االظرص ازاخ تا ر ٠ ن ا ر ش ٠ ن ألط ي ه لاهاخ ا ع ق ا ر ٠ ر لن ا ذؽم ١ ك ظ ١ د نا أزتاؼ اا ا شا ظ ١ ر ا رسو ١ اص ه ا ا شاسواخ ا عاا ح اسنؼا ا ؼ ١ اس ا ؤشساخ ا ا ١ ح. ؼك د ٠ س ا ظ د ق أ ٠ عؤ ر ٠ ن ا ؽاالخ ا ر ٠ مس ا ع اط إاازج ا ظا د ق تؽ ١ اس أال ٠ رعاا ش ذ ٠ ا ا ظا د ق اا عثر %30( طاان ل ١ اح أطا ذ اه ؼعاة ا ؼا اتؾ ا شسه ١ ح. ٠ رص ا ظ د ق ت عثح ا ر اه نا ا شاسواخ ؼعاة ا عاثح ا سظ ١ ح ا ظسغ ت ا ن ا ااج 19 ل ١ ا االظرص از( ن ا ثاب ا عاتن إاازج ا ظ اا ٠ ك( ن الئؽح ط اا ٠ ك االظارص از ا راتواح ١ ح ا ع ق ا ا ١ ح. إ االظرص از ن ا ظ د ق اظرص از فرا غ ؿ ٠ ا اسظا ذ ه أظ ذؽم ١ ك أ داف ا ظ د ق. 12 ان خبعر انرئ ست نالسخث بر ف انص ذوق: ٠ عرص س ا ظ د ق أ ا ن أظ ا شاسواخ ا عاو ا ٠ ح ا ر انماح ان ا ؼا اتؾ ا شسه ١ ح ٠ ع ة ه ا ع ا ر ص س أ ٠ و ا ت ا ؤ ا ال ظ ا ر ص ا ز ن ا ا س ظ ا ٠ ا ه خاؿسج ها ١ ح إال أ االظرص از ن ا ظا د ق ٠ ورثاس أوصاس أ ا اا عاث ١ ا ا االظرص از ا ثاشس ن ا ع ق لسا ر ش ٠ ن اظرص ازاخ ا ظ د ق و ا أ ا ظ د ق ١ ط ا ٠ وح أ ا رصا ا و ا أ ١ ط ؼ ا شسوح أط ي تخ ١ د االظرص از ٠ ح. ا خاؿس ا ر ٠ ؽر أ ٠ اظ ا االظرص از ن ا ظ د ق ا ٠ : ا خاؿس ا ع ١ اظ ١ ح: إ هد اظرمساز ماح ا شاسق اس ظاؾ لد ٠ ؤشس ه االلرظاا ا عو ا تا را ه ا ع ق ا خاااؿس االلرظاااا ٠ ح: االلرظاااا ا عااو ا اا االلرظاااا ٠ اخ )4 )6 )3 11 عخح Version

7 by oil price fluctuations. (3) Shariah Criteria: The Fund follows Shariah criteria consequently the investment universe of the Fund does not include all companies listed on the Market reducing the diversification ability of the Fund, which may affect investment risk. Additionally, non-compliance with Shariah criteria by any of the Fund s stocks and the Fund Manager being unable to sell such stocks within the period specified may lead to noncompliance risk. In such case, non-complying stocks shall be sold as soon as practically possible. (4) Forecasting Public Companies Future Financial Results: One of the most important tools used by the Fund Manager in making his investment decisions is forecasting future financial results of publicly listed companies. These forecasts are prone to uncertainty. Moreover, once financial results are announced the market price of a stock may move contrary to the forecasted direction. (5) Management Risk: The Fund Manager, similar to other fund managers, is highly dependent on key personnel. The Fund may be negatively impacted due to departure of senior executives or other key personnel involved in the Fund s operations as equally qualified personnel may be difficult to recruit in a short period of time. (6) IT Risk: The Fund Manager depends on information technology in managing the Fund and record-keeping of customer assets. The information systems used by the Fund Manager might suffer unauthorized access, virus attacks, partial or total disruption despite the sophisticated information security systems and procedures employed by the Fund Manager. (7) Trading Disruptions: The market may experience disruptions in trading causing suspension of Units redemptions or Fund valuations. However, such risk applies to all investors in the Saudi Stock Market and not uniquely to the Fund. (8) Control of large Percentage of the Fund s Assets by Few Subscribers: The Fund has no maximum subscription limit during the initial subscription period and therefore one or more Subscribers may acquire over 10% of the Fund s assets. Redemptions by one or more of such Subscribers may negatively impact the Fund. (9) Risks of Investment in Real Estate Investment Trusts (REITs): The Fund may invest in Real Estate Investment Trusts (REITs). Risk of Investment in this product is highly linked to the risk of real estate sector, that includes risk of business slowdown, decline in demand, legal risks, operating and maintenance risks that is related to properties, liquidity risk, construction risks, and risks related to tenant and their ability to pay dues amount, in addition to risks arising from the failure of fund manager to meet his obligations. (10) Risks of investing in shares that are listed in NOMU -Parallel market: Investing in parallel market is associated with number of risk factors, that includes the followings: - Liquidity risk and risk of having stale prices.besides, risk of high volatility in shares price. - Risks related to lack of transparency as they have less disclosure requirements. Beside the difficulty of obtaining information about those companies. ا اش ح ٠ ور د تشى وث ١ س ه ا اد ا ا ا فؾ ٠ راؤشس تررترب أظواز. ا ؼ اتؾ ا شسه ١ ح: ؼ ١ س أ ا ظا د ق ٠ رثان ا ؼا اتؾ ا شاسه ١ ح نئ ا شسواخ ا راؼح اظارص از ا ذشا ظ ١ ان ا شاسواخ ا دزظح نا ا عا ق اا ٠ ص ٠ اد ا خااؿس االظارص از نا ا ظاا د ق. و ااا أ اا اا ا خاااؿسج ااس ض أ اا ا شااسواخ ا وح ظ د ق ه ا رم ١ د تا ؼ اتؾ ا شاسه ١ ح هاد ذ ىا د ٠ س ا ظ د ق ت ١ و ا اي ا دج ا ؽداج ن ر ا ؽا ح نع ١ ر ت ١ و ا ن ألسب نسطح ى ح. ذ لن ا رائط ا ا ١ ح ا عرمث ١ ح شسواخ ا عا ح: أ اسا اخ ا ر ٠ ث ا اد ٠ س ا ظا د ق لسازاذا االظارص از ٠ ح ه ١ اا ذ لان ا راائط ا ا ١ اح ا عارمث ١ ح شاسواخ إال أ ار ا ر لوااخ هسػاح ظا اب ا خاؤ و اا أ ا تواد إهاا ا راائط ا ا ١ ح شسوح نئ ا عوس ا ع ل ع ا لد ٠ رؽسن تاذعاا خا ف ر لواخ. خاااؿس اإلاازج: ٠ ور ااد ااد ٠ س ا ظاا د ق شااؤ شااؤ أ ااد ٠ س اظرص از ه ا ا و ظاس ا ثشاس تشاى وث ١ اس تا راا نائ ا ظ د ق لد ٠ رؤشس ظ ثا تخعازج ا دزاء ا ر ف ١ ار ١٠ ا ا كف ١ ا سذث ١ تؤه اي ا ظ د ق طو تح ذ ن ١ س تدائ ه ا عر ذاذ ا خثسج ه ا د ا مظ ١ س. خاؿس ا رم ١ ح: ٠ ور د اد ٠ س ا ظا د ق ه ا اظارخدا ا رم ١ اح ن إاازج ا ظ د ق ؼفق أط ي ا و اء إال أ أ ل ح ا و اخ د ٠ لد ذروسع و ١ اخ ا رساق أ ن ١ س ظاخ أ ذو ظصئا أ و ه ا ا اسغ ا االؼر ١ اؿااخ اس ١ اح ا شاداج ا رثواح د ٠. طو تاخ ا ردا ي: لد ٠ روسع ا ع ق ظو تاخ ن ا ردا ي تؽ ١ س ٠ روعاس اظارسااا أ ذما ٠ ؼاداخ ا ظا د ق. إال أ ا نا ار ا ؽا اح نائ ا خااؿس ا را ذ اظا ا ظا د ق ا ذاذ اا ا را ظر اظ ظ ١ ن ا عرص س ٠ ن ظ ق اسظ ا عو ا ٠ ح ذى مرظسج ه ا ظ د ق نمؾ. اظرؽ اذ هادا ل ١ ا ا ا شارسو ١ ه ا عاثح ها ١ اح ا أط ي ا ظا د ق: ال ٠ ظاد ؼاد أه ا اشارسان نا ا ظا د ق ا ي ن ر س ج ا ال و ر ر ا ا ب ا س ا ت ا ر ا ا ن ئ ا ا ا ى ا ذ ا ه توغ ا شرسو ١ سوصس %30 أط ي ا ظ د ق ارا لاد ٠ عااثة خاااؿس ه ااد اظاارسااا ظااصء أ واا اار ا ف ااح اا ا شرسو ١ سط ا ظ د ق. ا خااؿس ا رو ماح تا رادا ي نا طا اا ٠ ك االظارص از ا وماز ٠ اح ا ردا ااح: اا ا ىاا أ ٠ عاارص س ا ظاا د ق ناا طاا اا ٠ ك االظاارص از ا وماز ٠ ااح ا ردا ااح ٠ ااسذثؾ االظاارص از ناا اار ا ظ اا ٠ ك تث ١ وح ا خااؿس ا رو ماح تا ماام ا ومااز ؿث ١ واح ا ظ اا ٠ ك ا وماز ٠ ح ا ردا ح ا ا خااؿس ا رو ماح تا شااؽ االلرظااا ا خفااع ا اة خااؿس ا رشاس ٠ واخ ا خااؿس ا رشغ ١ ١ ح ذىا ١ ف ط ١ ا ح ذا ٠ س ا وماازاخ خااؿس ا عا ١ ح طااو تح ت ١ اان االطاا ي ا خاااؿس ا رو مااح تاإل شاااء ا ث اااء ا خاؿس ا رو ماح تا عارؤظس ٠ هاد لادزذ ه ا ا نااء تاإل ٠ عاز. خاؿس هد نااء اد ٠ س ا ظا د ق تع ١ ان عاؤ ١ اذ ن راتوح أه اي ا ظ د ق ه ا ا خاؿسج ا سذثح تا ردا ي ن أظ ا ع ق ا اش ا عاو ا : ٠ اسذثؾ االظارص از نا ا عا ق ا ا اش توادا ا ا خاؿس ا: )4 )6 )7 )8 )9 )30 عخح Version

8 (11) - Risks related to investing in micro-cap companies, as there operations are usually concentrated in specific activities that will lead to difficulties in certain economic conditions. Besides, performance of those companies may be linked to certain employees, that makes those companies exposed to any resignation from senior staff. 13. Fees and Expenses: The Fund, and accordingly the Unit holders, bears the expenses listed hereunder as follows: (1) Management Fees: 1.50% p.a. of the Fund net asset value. Accrued fees shall be paid on quarterly basis to the Fund Manager. (2) Custodian Fees: SAR 200,000 p.a. of the Fund net asset value. Accrued fees shall be paid on quarterly basis to the Fund Custodian. (3) Audit Fees: SAR 35,000 will be paid annually to the Fund auditor. Fees will be borne by the Fund daily on pro rata basis. (4) Financing Expense: In case of financing expenses occur to the Fund during the year (according to the prevailing market rates), where borrowing is restricted up to 10% of the net asset value of the Fund after the approval of the Shariah Committee. (5) Remunerations of Board Members: subject to paragraph (2) Article (15) of these Terms and Conditions. (6) Remunerations of Shariah Committee Members: subject to Article (21) of these Terms and Conditions. (7) Supervision Fees: SAR 7,500 will paid annually for regulatory review and disclosure process for the Fund, Fees will be borne by the Fund daily on pro rata basis. (8) Fees for Publishing the Information on Tadawul Website: An amount of SR 5,000 will be paid annually for publishing information on Tadawul website. The fees will be proportionately divided according to the number of the days of the year, and fees will be paid every 12 months. Complete expenses details are set out in Appendix (1), the Financial Disclosure, attached to these Terms and Conditions. 14. Dealing (brokerage) Expenses: The Fund bears all dealing expenses and charges incurred in selling and buying Saudi stocks as well as any other legitimate fees that may be imposed by the CMA and the dealing broker. 15. Fund Board of Directors ("the Board"): The Fund is managed by a board of directors (the Board) consisting of five members, including the Chairman and two independent members. The Board members term shall not exceed five years. The Fund Manager reserves the right to change the composition of the Board, subject to the CMA s approval. Unit holders will be notified of any such change. The term of the first Board shall commence from the date the CMA approves the establishment of the Fund. (1) The Fund's Board of Directors are: 1. Mr. Beshr Mohammed Burhanuddin Yasin Bakheet (Chairman Non- Independent ) Board member of Osool & Bakheet Investment Company, the Fund Manager. Obtained a Master Degree in Engineering Management from Keio University in Japan in 1987G. He is a board member of "Osool& Bakheet IPO Fund, "Osool & Bakheet Qatari Trading Equity Fund and "Osool & Bakheet IPO Trading Fund Sharia Compliant". خاؿس شػ ا ع ١ ح هد ظ ا ذدا ي ه أظ و ١ ح ادج ش ١ اح ؿ ٠ اح. خااؿس ا ررتارب ا ىث ١ اس نا أظاواز اسظ. خاؿس ا شفان ١ ح ؼ ١ اس أ انظااؼاخ ا شاسواخ ا رصا اذ اا ذورثاس ألا ا ذ اه نا ا عا ق ا سئ ١ عا إػاانح إ ا طو تح ا ؽظ ي ه ا و اخ. خاؿس ا شسواخ ا ظغ ١ سج ظدا ؼثس أ توغ ا شسواخ لد ذىا طااغ ١ سج ا ؽعا ؽااد اج ا شااؽ ااا لاد ٠ وسػاا ا خاؿس ا رسو ١ ص ه شاؽ وا ١ ا ا ىا أ ٠ اظا طو تاخ ن ؼاالخ الرظاا ٠ ح ا إػانح إ ذسو ١ ص ا ه ا كف ١ ؽدا ٠ ن أه ا اا اا ٠ عو اا هسػاح رغ ١ اساخ ن ؼاي ذسو ا و. 13 انرسىو وان صبر ف: ٠ رؽ ا ظ د ق ظ ١ ن ا سظ ا ظااز ٠ ف ا ارو زج أا اا ٠ رؽ اا ذثواا ار ه ا شرسو و ا ى ا ؼداخو وا را : زظاا اإلاازج: ذؽرعااة زظاا اإلاازج ه اا أظاااض %3.10 ظ ٠ ا طان أط ي ا ظ د ق. ٠ ر انن ا سظ ا عرؽمح و 1 أش س د ٠ س ا ظ د ق. زظ ا ؽفق: ظ ١ ؽظ أ ١ ا ؽفق ه ا ث ا 100,000 ز ٠ ااي ظو ا ظ ٠ ا طان أط ي ا ظا د ق ٠ ار انان ا سظا ا عرؽمح و 1 أش س س ١ ا ؽفق. أذواب ساظن ا ؽعاتاخ: ظ ١ ؽظ ساظن ا ؽعاتاخ ه ث ا م م لدز ز ٠ اي ظو ا ظ ٠ ا. ظرمعا ا سظا ذ اظث ١ ا ه هدا أ ٠ ا ا ع ح. ظاز ٠ ف ا ر ٠ : ن ؼاي ظ ا ظاز ٠ ف ذ ٠ نو ١ ثاشسج ظ د ق اي ا ع ح ؼعة ا عوس ا عاائد نا ا عا ق( تشسؽ أ ال ٠ رعا ش ذ ٠ ا ظا د ق عاثح %30( ا طاان ل ١ ح أط تود أ ر انمح ا ع ح ا شسه ١ ح ه ا ر ٠. ىانآخ أهؼاء ع ط اإلاازج: أ لس ا فمسج 1( ا ا اااج 31( ر ا شس ؽ اسؼىا. ىاناؤج أهؼااء ا ع اح ا شاسه ١ ح: أ لاس ا اااج 13( ا ار ا شس ؽ اسؼىا. ا سظ ا سلات ١ ح: انن ث م م لدز ز ٠ ااي ظاو ا ظ ٠ ا ماء ه ١ ااخ ا ساظواح اإلنظااغ ظا د ق. ظرمعا ا سظا ذ اظاث ١ ا ه ا هادا أ ٠ اا ا عا ح ٠ ار انان ا سظا ا عرؽمح و 31 ش س. زظا شاس ا و ااخ ه ا لان ذادا ي : انان ث ا م م لدز 1,000 ز ٠ اي ظو ا ظ ٠ ا ماء شاس ا و ااخ ه لن ذدا ي. ظرمع ا سظ ذ اظث ١ ا ه ا هادا أ ٠ اا ا ع ح ٠ ر انن ا سظ ا عرؽمح و 31 ش س. ذ هسع إظ ا ا ظااز ٠ ف ا خظا ح ا أطا ي ا ظا د ق نا ا ؽاك 3( اإلنظاغ ا ا ا سنك ن ر ا شس ؽ اسؼىا. 14 يصبر ف انخؼبيم )انىسبعت(: ٠ رؽ ا ظ د ق ظ ١ ن ظااز ٠ ف زظا ا روا ا ا رو ماح تاا ث ١ ن ا شاساء نا اسظ ا عو ا ٠ ح أ أ ٠ ح زظ لا ١ اح أ اس ذفسػا ا ١ اح ا عا ق ا ا ١ اح أ ظ ١ ؾ ا روا. 15 يجهس إدارة انص ذوق )ان جهس(: ٠ ر إاازج ا ظ د ق ع ط إاازج ا ع ط( ؤ ف عح أهؼاء ت ١ زئ ١ ط ا ع ط هؼ ا عرما ذعر س هؼ ٠ ح ا ع اط ادج ال ذص ٠ اد ها ط ظ اخ. ظ ١ ى د ٠ س ا ظ د ق ا ؽك ن ذغ ١١ س اسهؼاء تود أ ر انمح ا ١ اح نا ذ اه ظا ١ ر إشاواز اا ى ا ؼاداخ تاؤ ذغ ١ اس نا ع اط إاازج ا ظ د ق. ذثدأ ادج هؼا ٠ ح أ ي ع اط إاازج ا ذااز ٠ خ انماح ١ اح ا عا ق ا ا ١ ح ه إ شاء ا ظ د ق. أظ اء أهؼاء ع ط إاازج ا ظ د ق: 3. أ. تشاس ؽ اد تس اا ا اد ٠ ٠ اظا ١ تخ ١ اد و ا اسئ ١ ط- غ ١ اس عرم " هؼ ع ط ااازج ن شسوح أط ي تخ ١ د االظرص از ٠ ح و د ٠ س )3 )4 )6 )7 )8 )3 عخح Version

9 2. Mr. Mazin Mohammad Nasser Al-Dawood (Non- Independent Member) Chief Executive Officer Of Osool & Bakheet Investment Company. Obtained a Bachelor degree in Business Administration with Finance emphasis from Portland State University U.S. and a Master degree in Management from City University Cass Business School in U.K. He is a board member of Osool & Bakheet IPO Fund and Osool & Bakheet IPO Trading Fund Sharia Compliant. 3. Mr. Amer Afif Mohammed Al-Mahmassani (Non- Independent Member) Consultant, engineer and businessman. He owns Al Mehmesani Engineering Consultancies Bureau in Riyadh, Kingdom of Saudi Arabia. He obtained an MA degree in Civil Engineering from the University of Texas, United States in 1984, and B.Sc in Civil Engineering from the American University of Beirut, Lebanon, in He is a board member of "Osool & Bakheet IPO Fund, Osool & Bakheet Qatari Trading Equity Fund and "Osool & Bakheet IPO Trading Fund Sharia Compliant. 4. Mr. Abdullah Mohammed Abdullah Al-Deweesh ( Independent Member) Vice President in ITA Agri Ltd company. He previously worked in Saudi Fransi Capital, He has experience in the field of transactions and operations (Such as initial public offerings, merger and acquisition, debt capital market, private issue, rights issue) As well as Commercial finance operations. He holds a bachelor's degree in Finance From Portland State University, America in He is a board member of Osool & Bakheet IPO Fund, Osool & Bakheet Qatari Trading Equity Fund and Osool & Bakheet IPO Trading Fund Sharia Compliant ". 5. Mr. Tareq Abdullah Hamad Al-Garaawy (Independent Member) Co-Founder and Chief Executive Officer at IDFA Management & Financial Consultants Obtained a Master Degree in Accounting from George Washington University. He is the Chairman of the Executive Committee at Salamah Cooperative insurance Co. He also holds a Certificate in Financial Management (CFM) and a member of the institute of management Accounting (IMA).He is a board member of "Osool &Bakheet IPO Fund, "Osool& Bakheet Qatari Trading Equity Fund and "Osool & Bakheet IPO Trading Fund Sharia Compliant ". (2) The Remuneration and Allowances of the Board of Directors: The remuneration for members of the Fund s Board is as follows: 1. Annual remuneration of SAR 30,000 for each Four members who are not an employee in the Company. 2. The total annual remuneration for each member shall not exceed 5 % of the annual Fund s management fees. 3. The company employees who are Board members shall not receive any remuneration or allowances in return for their membership in the Fund's Board. 4. The Board members remuneration shall be paid annually ا ظ د قو ؼاط ه ا اظعر ١ س ن اإلاازج ا دظ ١ ح ظا وح وو ١ و تا ١ اتا ها 3987 هؼ ن ع ط إاازج ط د ق وأط ي تخ ١ د إلطدازاخ اس ١ حو ط د ق وأط ي تخ ١ د راظسج تاسظ ا مس ٠ حو ط د ق وأط ي تخ ١ د راظسج تؤظ االطدازاخ اس ١ ح ا ر انمح ن ا ؼ اتؾ ا شس ٠ وحو. 1. أ. اش ؽ د اطس ا دا ا وهؼ غ ١ س عرم و ٠ شغ ؼا ١ ا ظة ا سئ ١ ط ا ر ف ١ ر د شسوح أط ي تخ ١ د االظرص از ٠ ح. ؼاط ه ازظح ا ثىاا ز ٠ ض نا إاازج اسه ااي ظا وح وت زذا دو )Portland State University ش تود ذ ه ؼظ ه ازظح ا اظعر ١ س ن االاازج و ١ ح ووااضو إلاازج االه اااي اا ظا وااح وظاا ١ ر و )City University تا ىااح ا رؽدج. هؼ ن ع اط إاازج طا د ق وأطا ي تخ ١ اد اطدازاخ اال ١ حو ط د ق وأطا ي تخ ١ اد رااظسج تؤظا االطدازاخ اس ١ ح ا ر انمح ن ا ؼ اتؾ ا شس ٠ وحو. 1.. ها س هف ١ ف ؽ د ا ؽ ظا وهؼ ا غ ١ س عرم " دض عرشاز زظ أه اي طاؼة ىرة ا ؽ ظا اظرشازاخ ا دظ ١ ح ا س ٠ اع ا ىح ا وست ١ ح ا عو ا ٠ ح ؼاط ه ا اظعر ١ س ن ا دظح ا د ١ ح ظا وح وذىعاضو تؤ س ٠ ىا ها تىا ز ٠ ض ن ا دظح ا د ١ ح ا عا وح اس س ٠ ى ١ ح ن ت ١ س خ ث ا ها هؼ ن ع ط إاازج ط د ق و أط ي تخ ١ د راظسج تاسظ ا مس ٠ حو ط د ق و أط ي تخ ١ د إلطدازاخ اس ١ حو ط د ق وأط ي تخ ١ د راظسج تؤظ االطدازاخ اس ١ ح ا ر انمح ن ا ؼ اتؾ ا شس ٠ وحو. 4 أ. هثداو ؽ د هثداو ا د ٠ ش وهؼ ا عرما" ائة ا سئ ١ ط ن شسوحLtd.ITA Agri ه ظاتما ن شسوح ا عو ا ا فس ع وات ١ راي د ٠ ثسج ن عاي ا ظفماخ ا و ١ اخ ص االورراتاخ ا وا ح اس ١ ح اال د اض االظرؽ اذ اسظ اق ا ا ١ ح د ٠ ا س ؼاخ ا خاطح إطداز ا ؽم ق( نؼا ه ه ١ اخ ا ر ٠ ا رعاز. ؼاط ه ازظح ا ثىا ز ٠ ض ن ا ا ١ ح ظا وح ال ٠ ح ت زذا د تؤ س ٠ ىا ها 1001 هؼ ن ع ط إاازج ط د ق و أط ي تخ ١ د إلطدازاخ اس ١ ح و ط د ق وأط ي تخ ١ د راظسج تاسظ ا مس ٠ حو ط د ق وأط ي تخ ١ د راظسج تؤظ االطدازاخ اس ١ ح ا ر انمح ن ا ؼ اتؾ ا شس ٠ وحو. 5. أ. ؿازق هثداو ا مسها وهؼ ا عرما" ا ا ه ا سئ ١ ط ا ر ف ١ ر ن شسوح اػفاء اظرشازاخ ا ا ١ ح االااز ٠ ح ؼاط ه ا اظعر ١ س ن ا ؽاظثح ظا وحو ظ زض اش و ٠ شغ ظة زئ ١ ط ا ع ح ا ر ف ١ ر ٠ ح ن شسوح ظا ح را ١ ؼاط ه ش ااج د ٠ س ا ور دCFM هؼ ا ع و ١ ح اال س ٠ ى ١ ح ؽاظث ١ االااز ١٠.IMA هؼ ن ع ط إاازج ط د ق وأط ي تخ ١ د راظسج تاسظ ا مس ٠ حو ط د ق و أط ي تخ ١ د إلطدازاخ اس ١ حو ط د ق وأط ي تخ ١ د راظسج تؤظ االطدازاخ اس ١ ح ا ر انمح ن ا ؼ اتؾ ا شس ٠ وحو. 1( ىانآخ تدالخ أهؼاء ع ط اإلاازج: ذى ا ىانآخ ا ا ١ ح سهؼاء ع ط إاازج ا ظ د ق ه ا ؽ ا را : ىان اح ظاا ٠ ح تم ١ ااح 10,000 ز ٠ ااي( ىاا هؼاا اا ١ ط كف ن ا شسوح ا ر ٠ ث هدا أزتوح أهؼاء. ٠ عة أ ال ذص ٠ د إظ ا ا ىانآخ ا ع ٠ ح ى هؼ ها %1( زظ اإلاازج ا ع ٠ ح ظ د ق..3.1 عخح Version

10 to independent members and non-independent members who are not employees in the company and borne by the Fund daily on a pro rata basis. ٠ رماػ أهؼاء ع ط إاازج ا ظا د ق ا ا ا كف ١ نا ا شاسوح أ ىاناآخ أ تادالخ ل ١ اس هؼا ٠ ر نا ع ط إاازج ا ظ د ق Travel expenses (if need arises) for meetings attendance shall be paid to the members of the Fund s Board. (3) Board of Directors Responsibilities: The Board responsibilities include, but are not limited to, the following: 1. Approving all contracts, resolutions and material reports that the Fund is party to. 2. Overseeing and, where appropriate, ratifying any Conflict of Interest the Fund Manager discloses according to the Investment Funds Regulations. 3. Meeting at least twice a year with the Fund Manager's compliance officer, compliance committee, anti-money laundering and anti-terrorist financing officers to ensure the compliance of the Fund Manager with all applicable rules and regulations. 4. The approval of any recommendations submitted by the liquidator, if such liquidator was appointed. 5. Ensuring that all Fund Terms and Conditions are comprehensive and in compliance with the Investment Funds Regulations. 6. Ensuring that the Fund Manager carries out its obligations in the best interest of the Unit Holders in accordance with the Terms & Conditions of the Fund and with the Shariah Committee decisions and the Investment Funds Regulations. 7. To act for the benefit of the Fund and its Unit Holders. (4) Voting by the Board of Directors: The Board of Directors shall meet following a written invitation issued by the Chairman at least 15 Calendar Days prior to the date set for the meeting. The Chairman of the Board shall call for a Board meeting if requested by any two Board members. The Board shall meet at least twice a year and the meetings will take place at the Fund Manager s headquarters or at any other venue as decided by the Board. A Board meeting can take place only if attended by at least 50% of the members, including the Chairman or his proxy from the Board members. In the event that a member of the Board appoints another member as a proxy to attend a Board meeting on his behalf, such proxy shall fulfill the following conditions: 1. The proxy shall be made in writing. 2. A member of the Board may not act on behalf of more than one member in attending the same meeting. 3. The Board's resolutions shall be adopted with the approval of the majority vote of the members present in person or represented by proxy. In case of a tie, the Chairman shall have the casting vote. 16. Fund Manager: Osool & Bakheet Investment Company, the Fund Manager, Commercial Registration No. ( ), Licensed under CMA Authorized Persons Regulation, to provide management services, License No.( ), address: Riyadh - King Fahad Road - Olaya district - Bahrain Tower - mezzanine floor,, P. O. Box Riyadh 11526, Kingdom of Saudi Arabia, Tel , Fax , web site The Fund Manager is an employee of the Fund and is paid a management ذ شم ا سظ ا عرؽمح ه ا ظ د ق تشاى ذ اظاث ه أ ٠ ا ا ع ح ٠ ر انن ا سظ ا فو ١ ح سهؼاء ع ط اإلاازج ا عاارم ١ غ ١ ااس ا عاارم ١ اا غ ١ ااس اا كف ا شسوح و 31 ش س. ذىا ١ ف ا عفس إذا اهد ا ؽاظح ؽؼ ز االظر اهاخ سهؼاء ع ط اإلاازج 1( عؤ ١ اخ أهؼاء ع ط اإلاازج: ذش عؤ ١ اخ أهؼاء ع ط إاازج ا ظ د ق ه ظث ١ ا صاي ال ا ؽظس ا ٢ ذ : 3. ا انمح ه ظ ١ ن ا وم ا ا مسازاخ ا رمااز ٠ س ا ع س ٠ اح ا ر ٠ ى ا ظ د ق ؿسنا ن ١ ا. 1. اإلشساف را واا ذ اه اظاثا ا ظااالح ه ا أ ذؼاازب ظاا ػ ٠ فظاػ ه ا اد ٠ س ا ظا د ق نماا ائؽاح ط اا ٠ ك االظرص از. 1. االظر ام سذ ١ ظ ٠ ا ه اسل ان عاؤ ي ا اتماح اال رصا ع ح ا اتمح اال راصا ( اد اد ٠ س ا ظا د ق عؤ ي ا رث ١ ه غع اس اي ذ ٠ اإلز اب د ٠ رؤود ا رصا د ٠ س ا ظ د ق تع ١ ان ا ا ائػ اس ل اح ا رثوح. 4. إلساز أ ذ ط ١ ح ٠ سنو ا ا ظف ن ؼا ح ذو ١١. ا رؤود اور اي ا رصا شس ؽ أؼىا ا ظا د ق تائؽاح ط اا ٠ ك االظرص از. ا رؤود ا ل ١ اا اد ٠ س ا ظا د ق ت عاؤ ١ اذ ت اا ٠ ؽماك ظ ؽح ا ى ا ؼداخ نما شاس ؽ أؼىاا ا ظا د ق لاااسازاخ ا ع اااح ا شاااسه ١ ح أؼىاااا الئؽاااح طااا اا ٠ ك االظرص از. ا و اا تؤ ا ااح ظاا ؽح طاا د ق االظاارص از ااا ى ا ؼداخ ن ١. 4( إظساءاخ ا رظ ٠ د سهؼاء ع ط إاازج ا ظ د ق: ٠ عر اان ع ااط إاازج ا ظاا د ق تااده ج ١ ااح اا زئ ١ عاا لثاا ا هااد ا ؽاادا اظر ااام تخ عااح هشااس ٠ ااا ذم ١ ٠ ااا ه اا اسلاا ٠ عااة ه اا زئاا ١ ط ا ع ااط أ ٠ ااده إ اا االظر ااام را ؿ اة ذ اه اش اا ا اسهؼااء ٠ عاة أ ال ذما اظر اهااخ ا ع اط ها اظر ااه ١ ظا ٠ ا ذوماد اظر اهااخ ا ع اط نا مااس ااد ٠ س ا ظاا د ق أ ناا أ ىااا ااس ٠ مااسز ا ع ااط. ال ٠ ىااا اظر اااام ا ع اااط طاااؽ ١ ؽا إال إذا ؼؼاااس ظاااف أهؼااااء ا ع ااط ه اا اسلاا ت اا ناا ١ زئاا ١ ط ا ع ااط أ اا ١ ٠ ثاا اا اسهؼاااء ناا ؼاااي إ اتااح هؼاا ع ااط اإلاازج هؼاا ا ااس ناا ؼؼاا ز اظر اهاااخ ا ع ااط ٠ رواا ١ أ ذىاا اإل اتااح تا ؼاا اتؾ ا ٢ ذ ١ ح: 3. أ ذى اإل اتح شاترح تا ىراتح. 1. ال ٠ عا ش وؼا ع اط اإلاازج أ ٠ ا ب ها أوصاس ا هؼاا اؼد ن ؼؼ ز ذاخ االظر ام. 3.ذظااادز لاااسازاخ ا ع اااط تؤغ ث ١ اااح زاء اسهؼااااء ا ؽاػاااس ٠ تاسطاااا ح اإل اتاااح ه اااد ذعاااا اسطااا اخ ٠ اااسظػ ا عا اااة ا ر ط خ و زئ ١ ط ا ع ط. 16 يذ ر انص ذوق: شااسوح أطاا ي تخ ١ ااد االظاارص از ٠ ح و ااد ٠ س ا ظاا د قو ظااع ذعاااز زلاا ( ز ض ت اء ه الئؽح اسشخاص ا س ض ١ ح ا عا ق عخح Version

11 fee in consideration for its management services (as defined in Appendix "1", Financial Disclosure). 17. Custodian: Osool & Bakheet Investment Company, the Custodian, Commercial Registration No. ( ), Licensed under CMA Authorized Persons Regulation, to provide custody service, License No. ( ), address: Riyadh - King Fahad Road - Olaya district - Bahrain Tower - mezzanine floor, P. O. Box Riyadh 11526, Kingdom of Saudi Arabia, Tel , Fax , web site Auditors: KPMG Al Fozan & Al Sadhan ( the Auditor ) P. O. Box 92876, Riyadh 11663, Kingdom of Saudi Arabia, Tel , Fax The Fund s Board of Directors reserves the right to change the Auditors subject to CMA notification. Unit holders shall be notified of such change. 19. Annual Audited Financial Statements: The annual audited financial statements shall be made available to current and potential Unit Holders for free and will be posted within a period not exceeding 90 Calendar Days from year end on the Fund Manager s website, and by mail upon request. The first annual financial statements of the Fund shall be prepared following year end 2007G. Additionally, the Fund Manager will prepare semiannual unaudited financial statements for the Fund within 45 days from mid-year end and make them available for current and potential Unit Holders on the Fund Manager's website, and by mail upon request, starting after mid-year Fund Units and Dividends: The Fund is divided into Units of equal value, benefits and rights. No dividends shall be distributed and profits shall be reinvested in the Fund. 21. Shariah Supervisory Committee: (1) Shariah Supervisory Committee members providing advice to the Fund: ا ا ١ ح صا ح شااؽ إاازج اسطا ي زلا ( ا و ا ا : ا س ٠ ااع ؿس ٠ اك ا ه ن د ؼا ا و ١ اا تاسض ا ثؽاس ٠ ا ز ا ١ اصا ١. ص.ب ا س ٠ ااع ا ىح ا وست ١ ح ا عاو ا ٠ ح ااذف: نااوط ا لن اال ىرس ٠ ورثس د ٠ س ا ظ د ق أظ ١ سا د ا ظ د ق ٠ ؽظ مات إاازذ ه زظ اإلاازج و ا ػاػ نا ا ؽاك 3( اإلنظاغ ا ا (. 17 أي انذفظ: شاااسوح أطااا ي تخ ١ اااد االظااارص از ٠ ح وأ ااا ١ ا ؽفاااقو ظاااع ذعااااز زلااا ( ز ض ت اء ه الئؽح اسشخاص ا س ض ١ ح ا عا ق ا ا ١ ح صا ح شاؽ ا ؽفااق زل ( ا و ا : ا س ٠ ااع ؿس ٠ اك ا اه ن د ؼ ا و ١ اا تاسض ا ثؽاس ٠ ا ز ا ١ اصا ١. ص.ب ا س ٠ ااع ا ىح ا وست ١ ح ا عاو ا ٠ ح ااذف: نااوط ا لن اال ىرس 18 يراجغ انذسبببث: KPMG ا فاا شا ا عاادؼا و ساظاان ا ؽعاااتاخو ص.ب ا س ٠ اااع ا ىاح ا وست ١ اح ا عاو ا ٠ ح ااذف: نااوط: ع ط إاازج ا ظ د ق ا ؽك ن ذغ ١١ س ساظن ا ؽعاتاخ تود إ ااز ١ اح ا ع ق ا ا ١ ح ظ ١ ر إشواز ا ى ا ؼداخ تر ه. 19 انمىائى ان بن ت انس ى ت ان ذلمت وانجذاول ان خ ت نهب: ظا ١ ر إؿاام اا ى ؼاداخ ا ظا د ق ا و ااء ا ؽر ا ١ تاا م ائ ا ا ١ اح ا ع ٠ ح ا ساظوح ظ د ق عا ا ذ ه ت شس ا ااي ادج ال ذرعاا ش 90( ٠ اا ذم ١ ٠ اا ا ا ٠ اح ا واا نا ا لان اإل ىرس ا ا خااص ت اد ٠ س ا ظا د ق أ ه ؿس ٠ ك ا ثس ٠ د ن ؼاي ؿ ث ا ظ ١ ر إهاداا أ ي لا ائ ا ١ ح ظ ٠ ح ظ د ق اترداء ا ٠ اح هاا و اا ظا ١ م اد ٠ س ا ظا د ق تئهداا ل ائ ا ١ ح ظف ظ ٠ ح فؽ طح ظ د ق اي 41( ٠ اا ذم ١ ٠ اا ا ا ٠ ح ظف ا ع ح ظ ١ ر إؿام ا ى ؼاداخ ا ظا د ق ا و ااء ا ؽر ا ١ عا ا اي ا لن اإل ىرس ا خاص ت د ٠ س ا ظ د ق أ ه ؿس ٠ ك ا ثس ٠ د ن ؼاي ؿ ث ا ظ ١ ر إهداا أ ي ل ائ ا ١ ح ظف ظ ٠ ح فؽ طح اترداء ا ٠ اح ا ظف اس ي ها خصبئص انىدذاث وأرببدهب: ٠ مع ا ظ د ق ؼداخ اا ا م ١ اح ا ١ اصاخ ا ؽما ق ا رعاا ٠ ح ذاذ اا ال ٠ ظد ذ ش ٠ ن ألزتاغ ظ ١ واا اظرص از اسزتاغ ن ا ظ د ق. 1. Sheikh: Dr. Ershad Ahmed. Dr. Ershad Ahmed is a Sharia advisor.he holds a certificate of specialization in fiqh and Ifta and specialization certificate in Business Administration (Finance). He is a member of the Sharia advisors forum for the Pakistan's central bank as well as on the setup and control of legal standards for Islamic financial institutions. Also he is a visiting scholar of the Eqra a University and the National Institute of Banking Studies (Pakistan's central bank) and Islamic Economics Centre and Sheikh Zayed Islamic University of Karachi. Educational attainment: He holds a global certificate from the University of Dar Al Uloom He holds a certificate of specialization in fiqh and Ifta of the University of Dar Al Uloom. He holds a master's degree in Business Administration (Finance). 2. Sheikh: Aziz Arahman Sheikh Aziz Arahman holds a degree from the Darul Uloom Institute in Acura Khattak Pakistan In fiqh and Ifta and elimination. Sheikh Aziz Arahman also passed from the Accounting and Auditing Organization for Islamic انهج ت انشرػ ت نهص ذوق: أظااا اء أهؼااااء ا ع اااح ا شاااسه ١ ح ا ااار ٠ ٠ ماااد االظرشازاخ: 1. نؼ ١ ح ا ش ١ خ / ا.إزشاا أؼ د: ا اادور ز إزشاااا أؼ ااد عرشاااز شااسه ؼاطاا ه اا شاا ااج ا رخظاااض نااا ا فمااا اإلنرااااء شااا ااج ا رخظاااض نااا إاازج اسه ااااي ا ر ٠ ااا ( ااا هؼااا نااا راااد ا عرشااااز ٠ ا شااااسه ١١ ث ااااه ا سوااااص ا ثاوعاااارا ا و اااا ت ػاااان ا وااا ١٠ س ا شااسه ١ ح ؤظعاااخ ا ا ١ ااح اإلظااا ١ ح سالثر ااا إػاانح إ ا و اا هؼا ١ اح ذاادز ٠ ط شائاس نا واا ا ظا وااح إلااسأ ا و ااد ا اا ؿ دزاظاااخ ا ظااسن ١ ح ا ث ااه ا سوااص ا ثاوعاارا ( سوااص االلرظاااا اإلظااا سوااص ا شاا ١ خ شا ٠ ااد اإلظا تعا وح وساذش. ا رؽظ ١ ا و : ؼاط ه ا ش ااج ا وا ١ ح ظا وح ااز ا و. ؼاطا ه ا شا ااج ا رخظاض نا ا فما اإلنرااء ا ظا واح ااز ا و. ؼاط ه ش ااج ا اظعر ١ س ن إاازج اسه اي ا ر ٠ ( 21 عخح Version