ECCO Entidad Urbanística de Conservación de Cotobro

ECCO Entidad Urbanística de Conservación de Cotobro Founded in 1986 IN NB: Free Translation. In case of doubt, only the Spanish official version shall be applicable. The following terms and abbreviations have been used: Entidad (de conservación) = Public Entity for the Conservation of Cotobro Ayuntamiento (de Almuñécar) = Town Hall (of Almuñécar-La Herradura) Consejo Rector (CR) = Administrative Council or Governing Board of the Entidad Cuotas (de participación) = dues and voting quotas Recaudación = municipal tax collection agency - last modification: AGM held on the 7 th of April, 2012 - CHAPTER I- THE ENTIDAD, MEMBERSHIP AND LEGAL RESIDENCE ARTICLE 1 - The Entidad and its members. The owners of the properties within the Urbanisation of Cotobro constitute an Entidad based on articles 24 to 30, 67 to 70 of the Urban Development Bylaws under the Revised Text of the Ley del Suelo [Land Law], passed by R.D.3.288/78 on 25th August, and published in B.O.E. 27 and 28 on January 31st and February 1 st of 1979. The Entidad is governed by these Statutes and all applicable existing and future laws and regulations. Its legal status is that of an urban entity based on the approval by the acting administration (hereafter referred to as Ayuntamiento de Almuñécar or Ayuntamiento ). The Entidad is listed in the Registry of Entidades of the Comisión Provincial de Urbanismo of Granada. The owners of plots and properties within the scope of the General Development Plan for the Urbanisation of Cotobro shall be members of this Entidad. Membership is obligatory for all owners whose properties are located within the territorial boundaries, and membership will be inseparable from the ownership of the plot, and one will not be disposed of without the other. The Entidad has the legal status of a public administration, subject to the Ayuntamiento de Almuñécar. ARTICLE 2 Legal Residence. The sphere of competence of this Entidad is exclusively local. Its present legal residence is at Apartado de Correos 276, Almuñécar, Granada. The Consejo Rector may change the legal residence when it deems appropriate. CHAPTER II - PURPOSE OF THE ENTIDAD, ITS ENDS AND COMUNAL ASSETS ARTICLE 3 - Purpose and ends of the Entidad. a) To assure the conservation and maintenance of the infrastructure, installations and public services within the geographic area comprising the Urbanisation of Cotobro, assuming the costs and distributing them in accordance with the rules laid down in these Statutes. This includes creating new services, in addition to those already existing in the Urbanisation. b) To attend and solve conflicts which may arise between individual co-owners. c) To collect the cuotas and request the Ayuntamiento to collect cuotas owed by defaulters. The Ayuntamiento shall remit collected cuotas to the Entidad. 16.08.15 Page 1 of 9 ECCO Estatutos_IN_rev.2015.doc

d) To request the Ayuntamiento, or competent organs of the public administration, to sanction any possible urban development offences which may be committed. e) To acquire, transfer, expropriate or dispose of assets or rights which the Entidad may be entitled to. f) To execute the resolutions of the organs of this Entidad. g) To take any action deemed necessary or appropriate to defend the interests of the Entidad and its members, and other objectives prescribed by the urban development legislation. ARTICLE 4 - Communal Assets and Services and their Conservation. The following are considered to be communal areas, assets and services: 1. The areas of public property and use, the assets and installations and other urban services contained within the Cotobro Urbanisation, and those newly created whose implementation may be considered appropriate. 2. Services of security, cleaning and conservation of communal elements, including any measures which may be necessary to keep these in good working order. 3. The conservation, administration and management of these communal urban areas, assets and services will be the responsibility of the Entidad as long as such a body exists. 4. The conservation, administration and management of the areas defined as private property and of public use within the Cotobro Urbanisation, shall be the responsibility of the owners who are obliged to maintain them in perfect condition. CHAPTER III - THE CO-OWNERS, THEIR RIGHTS AND OBLIGATIONS. ARTICLE 5 - Members of the Entidad. All persons, natural and legal, having acquired by public or private document any real estate property within the Cotobro Urbanisation, shall be members of this Entidad. ARTICLE 6 - Obligatory Membership. All owners described in the previous article shall automatically be members of the Entidad, with all the rights and obligations as established in the these Statutes and other legally binding provisions. CHAPTER IV- RIGHTS AND OBLIGATIONS OF MEMBERS OF THE ENTIDAD. ARTICLE 7 - Rights. a) To exercise the rights and powers granted to them by the ownership of their properties. b) The use and enjoyment of the communal services and assets, in accordance with their nature and the norms and bylaws regulating the exercise of these rights. c) To be both voters and eligible for the posts in the organs of the Entidad. d) To attend the General Assembly of the Entidad as a full member. e) To request the intervention of the organs of the Entidad, in order to settle any disputes which may arise with other owners in the urbanisation. ARTICLE 8 - Obligations. The owners shall have the following obligations: a) To respect and preserve the general areas and installations of communal use, as well as other established assets, installations and services, in the interest of the other owners, and to compensate any damages caused due to their negligence or of those persons for whom they are responsible. b) To maintain their own plots and buildings in a clean and preserved state. c) To consent to the carrying out of repair work on their plots which the maintenance of communal installations may necessitate. They will have the right to request that the Entidad provide them with fair compensation for any damages they may suffer as a consequence of such works. d) To proportionately contribute by means of their cuota to the general expenses of conservation and maintenance of the communal assets. They will have the right to request that the Entidad provide them with fair compensation for any damages which they may suffer. 16.08.15 Page 2 of 9 ECCO Estatutos_IN_rev.2015.doc

e) Likewise, to contribute to extraordinary expenditures, acquisitions or improvements which are approved by the Entidad. f) To observe the utmost diligence in the use of the communal assets and services and, in general, of any other assets, and in their relationships with other owners. They shall be held responsible to the Entidad for any offences committed by the users of their respective properties, whatever the legal title of the usage, notwithstanding any legal action taken against the users. g) To avoid all conduct which may cause inconvenience or discomfort to other owners in the normal and peaceful use of their private properties and communal assets and services. h) To inform the Secretary of the Consejo Rector of any changes of address or ownership, and to provide the names and addresses of the presidents of their Communities of Property Owners who in turn will notify their members of changes of these posts. These reports must be made within a period of thirty (30) days, counting from the moment in which the modifications are made. Within the same period, new owners must accept, in writing, the rights and obligations contained in these Statutes. ARTICLE 9 - Right to Vote. Resolutions by the Entidad shall be taken by simple majority of the cuotas de participación, except where the Statutes or other norms may require a quorum for specified matters. Communities of Property Owners which have opted for the collective cuota shall be represented by their respective presidents whose cuotas de participación are defined by art.11 (B) of these Statutes. Owners who at the opening of an AGM shall not have paid up their debts to the Entidad, and who have not impugned or deposited them at court or at a notary public, may participate in the deliberations, however without voting rights. CHAPTER V - ECONOMIC REGIME ARTICLE 10 - Communal assets and funds of the Entidad. The resources of the Entidad shall derive from the cuotas of the proprietors, and the surplus of annual budgets as established by the Consejo Rector and approved by the General Assembly, as well as income from rates, fines, donations, authorisations, compensations, rent, and any other source. The Consejo Rector may use any surplus funds to cover budget deficits arising in the course of each financial year, and to undertake new works or improvements as described in article 16. ARTICLE 11 - Cuotas (A) Individual cuotas de participación Cuotas shall be apportioned on the basis of the following point scheme: a) Apartments and plots of land without buildings = 1 point b) Plots with buildings up to 2000 m 2 = 2 points c) Plots with buildings exceeding 2000 m 2 = 3 points d) Restaurants, bars and cafes = 3 points e) Social and Sporting plots = 3 points Where a member of the Entidad owns several plots of land and/or apartments he will be charged with the total of all points. (B) Collective cuotas de participación Irrespective of the rules established Section (A) the owners of apartments or detached houses legally organized as Communities of Property Owners may opt for the system of collective participation with the following distribution of points: a) Communities with up to 20 units = 3 points b) Communities with 21 or more units = 4 points. 16.08.15 Page 3 of 9 ECCO Estatutos_IN_rev.2015.doc

The aforementioned collective cuota system shall be valid for Communities whose application will be received by the Consejo Rector within six (6) months of the current fiscal year of the Entidad. As of this date prior individual cuotas for the current fiscal year shall be cancelled. ARTICLE 12 - Modification of Cuotas. Cuotas may only be changed with the approval of the General Assembly. When the total volume of land for development in the Urbanisation is changed, a new calculation of the cuotas shall be made which must be approved by the General Assembly. ARTICLE 13 - Private Expenses. Any taxes, arbitration awards and rates which, for whatever reason, may be levied on individual owners or constitute a determinable quota for each plot, and the cost of the individual services or supplies of any one of them shall be borne by the respective owners and considered as private expenses, entirely independent of the cuotas of the Entidad. ARTICLE 14 - Special Cases. The owners of plots with no buildings, as well as those who for whatever reason do not inhabit their respective buildings, have left them abandoned or not rented, even though this may be due to circumstances beyond their control, will equally contribute to conservation and maintenance expenses, without exception, according to the proportions and conditions laid down in these Statutes. ARTICLE 15 - Annual accounts. The Administrator will prepare the accounts of the previous financial year and present them, together with the draft budget for the current year, to every member of the Entidad, together with the notification and agenda for the Annual General Assembly (AGM). The latter is to be held during Easter week to approve the accounts and annual budgets, and to deal with other matters. ARTICLE 16 - Reserve Fund. The annual ordinary budget will be incremented by five percent (5%) of the total, which will constitute and increase a reserve fund until this reaches a determined limit which will be fixed by the General Assembly. By means of this reserve fund, the General Assembly may meet any extraordinary expenses for repairs necessary for the conservation or improvement of communal assets and services or any other extraordinary expenses which they deem appropriate or necessary. In accordance with article 10, the Consejo Rector may use these funds, providing that their total cost does not exceed 20% of the current Budget, that they are financed without raising the cuotas and that they reduce the reserve fund by more than 5%. Contributions to the reserve fund of the Entidad will be included in the annual cuotas. ARTICLE 17 - Payment of cuotas. Annual cuotas which owners must meet on the basis of the approved budget shall be paid to the Administration of the Entidad within two (2) months after the holding of the General Assembly or, in any case, within one (1) month after receiving the notification of the Minutes of Assembly. Cuotas not paid within the first two months, will bear a one-off surcharge for administrative costs of twenty (20%) percent, in addition to interest charges of five (5) % per year, to be paid together with the amount of the afore-mentioned cuotas. If the owner does not meet his annual dues including the afore-mentioned surcharges and interest, including possible further charges by the Ayuntamiento, within the ten (10) days following receipt of the corresponding notification, the accumulated debts will be reclaimed either through the Town Hall Recaudación or by civil court action. In the latter case, any costs for engaging legal assistance will also be borne by the defaulter. 16.08.15 Page 4 of 9 ECCO Estatutos_IN_rev.2015.doc

The afore-mentioned items must be clearly specified in the notifications. Any member of the Entidad considering the notification to be incorrect may present his claim to the Administration of the Entidad within a period of 15 days, however this does not exempt him/her from the payment of the total sum within the indicated time period. Corrections will be made with the next cuota notification, in case it should not possible to correct the receipt. ARTICLE 18 - Preference of Payment. Any claims by the Entidad deriving from the obligation of owners to contribute to the costs for communal assets and services, on the basis of approved ordinary or extraordinary budgets, shall have preference over any other claims, and shall remain attached to the corresponding property, irrespective of the actual owner and the legal title of the acquisition. ARTICLE 19 - Action against Defaulters. In addition to the described actions against defaulting owners, the Consejo Rector may order the suspension of water supply or other services. ARTICLE 20 - Banking The Consejo Rector will open a current account at a bank or Caja de Ahorros on behalf of the Entidad. For withdrawal of funds and other bank operations, the signature of both the President and the Treasurer will be required, or the persons authorised for these members of the Consejo Rector. CHAPTER VI - GOVERNMENT AND ADMINISTRATION OF THE ENTIDAD ARTICLE 21 - Government and Administration. The Entidad will be governed by the General Assembly of owners and by a Consejo Rector, with the following competences: ARTICLE 22 - General Assembly of Owners. The highest organ of government and decision-making of the Entidad is the General Assembly of owners, formed by the meetings of all members in accordance with article 5 of these Statutes, duly summoned and constituted. Its decisions, providing that they are not against the Law or other complementary regulations, or against these Statutes, are obligatory for all owners, absentees and dissidents included. ARTICLE 23 - Powers of the General Assembly. The competence of said organ shall be the following: 1. To appoint and dismiss the members of the Consejo Rector and decide over any complaints which owners may make against their performance. 2. To approve the annual budget and corresponding accounts, as well as any modifications. 3. To approve the execution of extraordinary works and services or improvements and raise funds for their execution. 4. To approve or reform the Statutes of the Entidad. 5. To take note and decide matters of general interest for the Entidad and necessary or appropriate measures to to achieve the objectives. 6. To approve personnel employed by the Entidad. 7. To acquire or dispose of communal assets or modify their designation, within the legal rules and regulations. 8. To consent to rights of access for communal assets. 9. To designate three of its members to approve the minutes and sign them, representing all the others, together with the President and the Secretary. 10. To totally or partially delegate to the Consejo Rector any of the competences listed under # 3, 5, 6 and 8. ARTICLE 24 - Meetings. The General Assembly shall meet at least once a year during Easter Week. Notwithstanding any other matter or item, the General Assembly shall be informed of the development of the current year and examine the accounts 16.08.15 Page 5 of 9 ECCO Estatutos_IN_rev.2015.doc

of the past year, pending their approval, as well as the next budget. Further, the General Assembly shall elect the persons for the posts in the Consejo Rector. The General Assembly shall meet on an extraordinary basis when the President so calls or when requested by a group of owners who represent at least 21% of the cuotas de participación, or 25% of the members of the Entidad. ARTICLE 25 - Summons for Meetings. The President shall summon the meetings, indicating the matters to be dealt with and the place where the meeting shall be held. This shall be communicated in writing and delivered to the address conveyed by the each owner. The summons, for both the Annual General Assembly and any Extraordinary General Assemblies, shall be made following the afore-mentioned procedure at least thirty days prior to the meeting. ARTICLE 26 - Representation. Attendance at the General Assembly will be either in person or by legal or voluntary representation. For the admission of the latter it suffices to present a private document signed by the owner or a notary proxy. The faculties of the representative normally refer to administrative matters. When dealing with dispositions or resolutions implying approval or changes of the rules contained in a property title or in these Statutes, they must be included in the competence of the legal agent or, in the case of voluntary representation, by express authorization. If a property giving right to vote belongs to several owners, they must name a representative to attend and vote in the Assembly. In case of a usufruct, attendance and voting will correspond to the legal owner who, except where the contrary is expressed, will be represented by the beneficiary. The delegation must be express when dealing with resolutions referred to in the second paragraph of this article or for extraordinary works or improvements. Each member of the Entidad may represent a maximum of five (5) others. Proxies shall be accredited before the Secretary before the start of the meeting. ARTICLE 27 - Quorum. The General Assembly will be considered valid at the first summons if 50% of the total votes either present or represented are attending. The Assembly can be held at a second summons, half an hour after the time announced for the first summons, irrespective of the number of participating or represented voters, and their resolutions will be valid and obligatory even for absentees and dissidents, subject to the rights described in Article 29 of these Statutes. ARTICLE 28 - Agenda. Both in Ordinary and Extraordinary General Assemblies resolutions may only be taken on items included in the Agenda. The President will set the Agenda. Inclusion in the Agenda will be obligatory for all items presented by at least 10 members of the Entidad, providing the proposal is received at the domicile of the Entidad at least 40 days prior to the date of the meeting. ARTICLE 29 - Required Majorities. The resolutions of the General Assembly shall be taken by majority vote of the cuotas de participación of those present and represented. 16.08.15 Page 6 of 9 ECCO Estatutos_IN_rev.2015.doc

Duly notified owners who do not attend the Assembly, will be conclusively notified of the resolutions adopted by those present and if in the period of one month of said notification they do not manifest, in the same manner, their founded disagreement it will be understood that they are bound by the resolutions, which will not be executed until the afore-mentioned time period ends, unless they express their acceptance beforehand. When the owners who represent at least 25% of the cuotas deem a majority resolution to be seriously damaging for them, they may appeal to the Ayuntamiento to decide the issue. Resolutions against the law or the Statutes can be challenged before the Ayuntamiento. ARTICLE 30 - Minutes of the Meetings. The resolutions of the General Assembly will be recorded in the Minutes, signed by the President, the Secretary and three other members, freely appointed by the Assembly from among the participants who will approve the contents on their behalf. The resolutions of the General Assembly will be duly stamped and numbered and registered in the Book of Minutes at the Ayuntamiento. ARTICLE 31 - The Consejo Rector. The Consejo Rector will be formed by a President, a Vice-President, a Secretary, a Vice-Secretary, a Treasurer, a Vice-Treasurer, and up to five members. All shall be members of the Entidad. The President and the Secretary shall also be members of the General Assembly. The appointment of the afore-mentioned posts will be made by simple majority in the General Assembly. Further, the representative appointed by the Ayuntamiento shall be a member of the Consejo Rector. Membership and modifications of the Consejo Rector will be registered in the Registry of the Comisión Provincial de Urbanismo de Granada. ARTICLE 32 - Renewal of Posts. The duration of the Consejo Rector posts will be two years, however they may be re-elected indefinitely. All posts on the Consejo Rector will be gratuitous. Vacancies produced during the validity of each mandate may be temporarily covered by the Consejo Rector, pending the rectification or substitution by the General Assembly at their first meeting held thereafter. However, the vacancy of the President will always be covered by the Vice-President. The rules of this article shall not be applied to the representative appointed by the Ayuntamiento. ARTICLE 33 - Consejo Rector Meetings. The Consejo Rector shall meet at least once a month and whenever the President summons a meeting. Resolutions will be made by majority vote of those present at its meetings. The Consejo Rector will be considered set up when at least 3 (three) of its members are present, one of them being the President/Vice-President. Every attending member will have one vote, regardless of any representation he/she may hold. ARTICLE 34 - Powers of the Consejo Rector. The Consejo Rector shall have the following competence: 1. To order the carrying out of works and repairs of an ordinary or extraordinary nature within the limits set by the Budget. 2. To demand payment of corresponding fees and compensation from the owners. 3. To manage and standardise all that which concerns conservation and the use of communal assets. 16.08.15 Page 7 of 9 ECCO Estatutos_IN_rev.2015.doc

4. To appoint and dismiss the Entidad employees, in accordance with the approved staff, establishing the rights and obligations. 5. To be informed of the compliance with all regulations pertaining to the urbanisation. In the case of any infringement of regulations, where necessary with prior technical and/or legal advice, to carry out any necessary action directly, or if practicable to confer the matter to the Ayuntamiento so that pertinent measures may be taken. 6. To propose to the General Assembly the annual budgets, and the commissioning of works and services. 7. To propose the employment of staff. 8. To exercise all powers bestowed by the General Assembly. 9. To solve problems that may arise between owners with regard to their peaceful cohabitation and the use of communal assets. ARTICLE 35 - Powers of the Executive Posts. Responsibilities of the President: 1. To hold full representation of the Entidad in all its aspects and before any organisation or official body be it public or private, any person, physical or legal, with the authority to engage legal professionals so that pertinent legal action may be taken. 2. To summon and preside over the General Assembly and the Consejo Rector, laying down the Agenda and chairing the debates. 3. To order payments and revenues, respecting the limits imposed by the budget. 4. To control the working order of the services of the Entidad. 5. To dispose of the movements of the funds, jointly with the Treasurer. 6. To have the deciding vote in any tie arising in the resolutions of the Consejo Rector. Responsibility of the Vice-President: To substitute the President in all cases of absence, illness, incapacity, resignation, dismissal or death. Responsibility of the Secretary: To keep the minutes of the meetings, to issue certifications of these, to draw up notifications to the owners, to carry out the notifications of resolutions, to maintain the documents of the Entidad and in general any other duties which the Consejo Rector may indicate. Responsibility of the Treasurer: To look after the funds of the Entidad, to collect and make payments jointly with the President, and to draw up annual budget proposals and maintain the accounts. The Vice-Secretary and the Vice-Treasurer will substitute the respective post holders in their absence. ARTICLE 36 - Employed Personnel. Directly depending on the President, there shall be an Administrator of the Entidad whose duties will be the following: 1. To organise and manage the services of the Entidad in accordance with dispositions of the Consejo Rector. 2. To order repair works when necessary. 3. To control the working order of all services and works of the Entidad. 4. To manage the employed personnel. 5. To watch over the compliance of all compulsory rules, putting forward any proposals to the Consejo Rector with regard to any action and compensation should these rules not be observed. The afore-mentioned Administrator and other personnel employed with the approval by the Consejo Rector, shall be remunerated. Their appointment, dismissal and disciplinary regime will correspond to the Consejo Rector. CHAPTER VII - COMPLEMENTARY GENERAL REGULATIONS 16.08.15 Page 8 of 9 ECCO Estatutos_IN_rev.2015.doc

ARTICLE 37 - Works on Communal Properties. No owner may modify or carry out works on any communal properties or services of communal use of the Entidad. Should they believe urgent repairs to be necessary they must inform the Administrator. ARTICLE 38 - Conservation and Works in Private Areas. Any owner or title-holder of a plot who wishes to carry out works or changes of any kind must inform the Consejo Rector in advance. In these cases, they must show a copy of the corresponding plan. The owners of plots without buildings must maintain them in perfectly clean conditions in accordance with the existing bylaws. They will have a period of three months, starting with the request by the Entidad, to comply with said cleaning. If after this time period the request has not been complied with, the Entidad will carry out the appropriate works at its own cost and will charge this amount, adding the financing costs, to the respective owner. When financed, costs and interest may be accredited by a bank certificate. ARTICLE 39 - Change of Ownership. The titleholder who transfers his property, be it totally or partially, must demand in the act of transfer that the buyer provide him with the formal substitution of all communal rights and obligations and the Entidad must be notified in writing of this replacement within the 30 days following the signing of the corresponding contract. ARTICLE 40 - Compulsory Participation. The renunciation of assets of communal use or communal services is not permitted, neither shall a declaration of non-participation in the above, nor the abstinence of the use of the above, with a view to be exempt from payment of cuotas for communal expenditures. ARTICLE 41 -Transfer of the Entidad. The Entidad de Conservación, as an Entidad Urbanística Colaboradora, has an administrative nature and may decide, through its General Assembly and in the manner laid down in the Statutes and pending approval by the Ayuntamiento, its conversion into any other Entidad Urbanística Colaboradora. *********** 16.08.15 Page 9 of 9 ECCO Estatutos_IN_rev.2015.doc