Legal

How our trust is formed

SETTLOR AND TRUSTEES A:

Los Cabos Hotel Association, A.C. (AHLC).

SETTLOR AND TRUSTEES B:

Baja California Sur Timeshare Developers’ Association (ASUDESTICO).

SETTLOR AND TRUSTEES C:

The individuals and legal entities, public or private that will benefit from the fulfillment of the TRUST’S purpose.

FIDUCIARY:

Service Bank, MIFEL Financial Group, to give certainty and transparency to the use of resources.

These are purposes of the trust:

  1. That on the instructions of the SETTLORS, the FIDUCIARY shall open a bank account at either BANCA MIFEL, S.A., A FULL-SERVICE BANK, MIFEL FINANCIAL GROUP, in the name of this Trust, which shall be referred to as the “RECEIVING ACCOUNT,” as well as the accounts in MEXICAN PESOS or U.S. DOLLARS, as instructed by the Technical Committee subsequent to the signing of this Contract, or in any other institution of the Mexican Financial System, to receive the contributions of the SETTLORS, TRUSTEES, and those of third parties on behalf and order of the SETTLORS and TRUSTEES, and to comply with the purposes of this Contract, authorizing the people chosen by the Technical Committee to sign on said accounts, to issue checks and orders for funds transfers, in the understanding that they will be solely responsible for taking control of their administration, allocating the resources solely and exclusively to fulfill the purposes of the Trust and; therefore, SETTLORS and TRUSTEES formally agree in this act, to release the FIDUCIARY from any liability associated with the misuse of the resources administered by the aforementioned authorized persons. The FIDUCIARY shall inform the other parties of the account number of the opened Receiving Account.
  2. That the FIDUCIARY receives the INITIAL CONTRIBUTION of the SETTLORS and TRUSTEES in the aforementioned Receiving Account for the fulfillment of this Contract’s purposes.
  3. That the FIDUCIARY shall retain ownership of all the sums contributed to the present Trust, making investments in the financial instruments as instructed by the TECHNICAL COMMITTEE.
  4. That the FIDUCIARY, upon instructions of the TECHNICAL COMMITTEE, shall make all the ordered payments from the Trust fund, which are to be destined, among other things, to carry out all the necessary actions and activities for the promotion, broadcasting, advertising, and public relations within the tourism sector to attract more domestic and foreign visitors and tourists to the tourist destination known as “LOS CABOS,” which is understood as the area located within the municipality of Los Cabos, in the State of Baja California Sur, Mexico. The Fiduciary is not responsible for the verification of the application or destination of any of the disbursed funds, as the Technical Committee shall perform this function.
  5. Hire the professional services, as instructed by the Technical Committee and covered by the Trust fund, to conduct the necessary studies, such as; marketing, statistical, trends, market research, and socioeconomic and cultural research, whose purpose is to provide elements of specialized knowledge to the entire tourism industry, for better decision-making by the TECHNICAL COMMITTEE; therefore, such instructions and the text of the corresponding document must be authorized by a minimum of one member of the Technical Committee and ratified through the proxy appointed by the Committee. All contracts or agreements that are entered into on behalf of and charged to this Trust shall invariably be approved by THE TECHNICAL COMMITTEE, under previous instructions from the Settlors.
  6. Upon previous instructions from the Technical Committee, and charged to the Trust’s account, carry out the contracting of third parties associated with other public and private entities, national or foreign, public and private trusts: promotional campaigns, advertising, marketing, and public relations that shall have the effect of positioning the tourist destination of “LOS CABOS” as a national and international attraction, even competing with other domestic or foreign destinations; therefore, the text of the corresponding document shall be authorized by a minimum of one member of the Technical Committee and ratified through the proxy appointed by the Committee.
  7. Upon previous instructions from the Technical Committee, to participate in agreements with other tourism associations or trusts, with Federal, State or Municipal Government agencies, in campaigns and promotional actions, advertising, marketing, and public relations that will have the effect of positioning the tourist destination of “LOS CABOS” as a national and international attraction, even competing with other domestic or foreign destinations; therefore, the text of the corresponding document shall be authorized by a minimum of one member of the Technical Committee and ratified through the proxy appointed by the Committee.

The Board

The Board, referred to as “Technical Committee” for the purposes of the TRUST, has the goal of fully complying with the purposes set forth in the Trust’s Contract, and must be designated through a written instrument provided by the Los Cabos Hotel Association, A.C., and the Baja California Sur Timeshare Developers’ Association.

Structure of the Technical Committee

The Committee will mainly consist of three proprietary members with the necessary alternate members for each position, whose goal must be to fully comply with the purposes outlined in the Trust’s Contract as well as the provisions of this Regulations. The plenary members are:

President:

The President of the Los Cabos Hotel Association, A.C.

Secretary A:

The President of the Baja California Sur Timeshare Developers’ Association.

Secretary B:

The Secretary of the Los Cabos Hotel Association, A.C.

  1. To instruct the Fiduciary to open the checking and investment accounts needed for this Trust in BANCA MIFEL, S.A., a Full-Service Bank, MIFEL Financial Group, or in any other Banking Institution of their choice.
  2. It shall be the monitoring and decision-making authority regarding the strategic matters of the Trust, and their instructions shall be issued in writing to the Fiduciary.
  3. To, through the President, instruct the Fiduciary regarding the instruments, values, and terms in which they must invest or withdraw the resources that are part of the Trust’s assets to achieve the best market performance.
  4. To instruct the Fiduciary on the terms and conditions in which the contribution or acquisition of the property must be made.
  5. To instruct the Fiduciary to acquire the necessary or convenient services for the fulfillment of the Trust’s purposes, which shall be billed to the Trust’s account.
  6. To keep a simplified registry to maintain control over the various contributions made by the Settlors, Donors, and Third-Party Contributors on behalf and order of the Settlors.
  7. To evaluate the assets’ investment results and send a monthly report to the Settlors, clearly explaining the assets’ movement details for said month’s report.
  8. To instruct the Fiduciary on the delivery of the amounts to be charged to the Trust’s account, to the extent and until its funds run out, to whomever the Technical Committee instructs for the fulfillment of the Trust’s purposes, highlighting that if the Fiduciary has delegated powers to third parties in accordance with the Technical Committee’s instructions for the disposition of Trust funds, the Settlors hereby release the Fiduciary from any liability in that regard.
  9. To instruct the Fiduciary to enter into agreements modifying this Contract, stating the terms and conditions to carry them out.
  10. To meet at intervals to be determined by said body.
  11. To review and approve the statements issued by the Fiduciary concerning the Trust’s Assets.
  12. To Instruct the Fiduciary to grant or revoke the necessary limited powers of attorney to comply with the purposes outlined in this Trust, instructing the corresponding proxies, with charge to the Trust’s account, to the extent and until its funds run out, on the understanding that the Fiduciary shall neither be liable for the actions of said proxies, nor shall it be responsible for the payment of the fees or expenses incurred in carrying out the mandate. The Fiduciary shall, in any case, retain the ample power of attorney, which it shall exercise on the instructions of the Technical Committee.
  13. Instruct the Fiduciary to grant or revoke the limited powers necessary to comply with the purposes outlined in this Trust, instructing the corresponding proxies, with charge to the Trust’s account, to the extent and until its funds run out, on the understanding that the Fiduciary shall not be liable for the actions of said proxies, nor is it responsible for the payment of their fees or expenses incurred in carrying out the mandate. The Fiduciary shall, in any case, retain the powers of control, which it shall exercise on the instructions of the Technical Committee.
  14. Instruct the Fiduciary to carry out the transfer of property or rights from the Trust’s assets to the persons selected by the Technical Committee, indicating the terms and conditions of the operation, on the understanding that a minimum of one member of the Technical Committee must appear at the signing of the public deed and ratify the instructions.
  15. All other obligations of the Technical Committee that are either necessary or convenient for the exercise of the aforementioned clauses of this Contract and the fulfillment of the Trust’s purposes.
  16. Whenever the FIDUCIARY acts on the Technical Committee’s instructions, it will be released from liability, as outlined in article 80 of the Credit Institutions’ Law.
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  • Cabo San Lucas, Baja California Sur. C.P. 23454

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