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01. MAIN DOCUMENT1.3.6.3 :: Legal risks1.3.6.3/1 :: Links between the business carried out and therisks identifiedThe legal policy, notably in terms of corporate law, stockmarkets, tax optimization and monitoring, is overseen bythe APRIL group Legal Affairs Division.Risks relating to the business are identified in connectionwith the internal control procedure, liaising with the RiskManager, as presented on Page 114.The Group's activities are heavily regulated at nationaland European level. These regulations establish increasinglystrict demands, whether in terms of insuranceintermediation or specific regulations governing insurancecompanies.1.3.6.3/2 :: Risk assessmentProvisions have been booked for any significant disputesbased on the best possible estimates in view of theelements available at the close of accounts.Provisions for contingencies and lossesBREAKDOWN OF PROVISIONS(in thousand euros)Dec 31 st2008Changesin scopeeIncreasedecreaseReclassificationDec 31 st2009Provisions for disputes 1,512 84 1,656 - 536 - 113 2,603Provisions for pensions 5,800 109 534 - 264 11 6,190Other provisions for contingenciesand losses3,230 - 31 1,912 - 812 - 230 4,069TOTAL PROVISIONSFOR CONTINGENCIES AND LOSSES10,542 162 4,102 - 1,612 - 332 12,862The main actuarial assumptions retained as Groupstandards for determining provisions for retirementbenefits are as follows:- Discount rate: 4 %- Rate of increase in salaries: 2%- Rate of inflation: 2%Provisions for disputes primarily correspond to disputeslinked to the operational activities of APRIL GROUPcompanies, none of which represent a significant amounton their own.To the best of the issuer's knowledge, there are no othergovernment, judicial or arbitration proceedings apartfrom the case presented above which are unresolved orwhich the company is threatened by, and which couldsignificantly affect or have significantly affected over thepast 12 months the financial position or profitability of thecompany and/or Group.1.3.6.3/3 :: Follow-up procedures and resources in placeMeanwhile, the legal developments impacting ourbusiness are specifically tracked by divisions' orcompanies’ operational legal departments.In accordance with regulations, the operational activitiesof Group companies are covered by a broker civilliability policy, extended to include banking and financialprospecting activities. In addition, a specific civil liabilitypolicy has been taken out on franchiser activities. Thelegal departments in the various Group companiesare responsible for constantly checking the suitabilityof coverage in view of changes in their companies’activities.As far as intellectual property-related risks are concerned,and further to the inventory of brands and internet domainnames drawn up in 2005, further work has been carriedout on registrations and filings both in France and atinternational level.Most filings are centralized with service providers thathave been referenced by APRIL GROUP in order to ensurethe most effective protection possible. Administrativefollow-up is centralized by the Group Legal Affairs andRisks Division.INFORMATIONON THE COMPANY’S ACTIVITIESPART0140