Certification of Agreement 018-2014 Reform of the 2013 Tax Plan Amendment

COLLECTION STRUCTURE ROAD INFRASTRUCTURE MAINTENANCE RATE VEHICLES PRIOR TO THE YEAR 2009 YEAR 2014 PRIVATE AUTOMOBILES RENTAL MOTOR VEHICLES TRAILERS, FLATBEDS AND VANS MOTORCYCLES DISPLACEMENT DISPLACEMENT DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC >2501 CC 0-1400 CC 1401-2000 CC 2001-2500 CC >2501 CC 0-500 CC >501 CC Rate 706 831 956 1222 463 525 713 850 619 175 1000 VEHICLES YEAR 2009 AND ONWARDS YEAR 2014 PRIVATE AUTOMOBILES RENTAL MOTOR VEHICLES TRAILERS, FLATBEDS AND VANS MOTORCYCLES DISPLACEMENT DISPLACEMENT DISPLACEMENT 0-1400 CC 1401-2000 CC 2001-2500 CC >2501 CC 0-1400 CC 1401-2000 CC 2001-2500 CC >2501 CC 0-500 CC >501 CC Rate 813 1063 1375 2295 525 588 775 913 1000 244 1350

As of the year 2015, a mechanism shall be implemented to annually update the value of the Road Rate that each type of vehicle is obligated to pay to the AMDC, based on the current base values shown in the attached Table. These values described in the table shall be those that have been updated as of the date and that are in effect. Second: Said annual adjustment shall be made using principally the Consumer Price Index (CPI) of the Central Bank of Honduras (BCH), as this constitutes a simple, reliable indicator of general character, easily understood, calculated rationally and scientifically by the BCH in accordance with technical and transparent elements and methodologies, whose integration implies the consideration of a great number of variables, economic activities and key inputs, which adequately encompass the behavior of the cost of living and its repercussions on the prices of the majority of categories. Third: The Adjustment Factor (FA) shall be calculated using the following expression or formula; FA = IPCa / IPCo where: FA= Adjustment Factor by which the values of each one of the Rates in effect assigned to each type of Vehicle by the AMDC shall be multiplied, to calculate the adjustment that said values shall undergo. IPCa= Current CPI. According to data issued by the Central Bank of Honduras, corresponding to the month of January of the year in which the rate adjustment is being made. IPCo= Origin CPI, according to data issued by the Central Bank of Honduras, corresponding to the month of January of the year prior to the one in which the Rate adjustment is being made or the year that serves as the base for making the rate adjustment. Fourth: The first adjustment shall begin to be applied in the year 2014, for which purpose the IPCa index shall correspond to the month of January 2014 (268.6) and the IPCo shall correspond to the month of January 2010 (214.0), the year when the last precedent adjustment to the Road Rate was made. Consequently, for the adjustment of the 2010-2014 period, an Adjustment Factor of 1.255 (25.5% increase) applies, resulting from the following operation: 268.6 / 214.0 = 1.255 Subsequent adjustments shall continue to be calculated year by year, using this same formula and varying only the CPI indices of each period (January), compared with the CPI of January of the immediately preceding year. Fifth: The final values resulting from the annual adjustment shall be rounded to the nearest L.10.00. In no case shall the annual adjustment exceed ten percent (10%) with respect to the value of the rate from the prior year, regardless of the results generated by the calculation of the Adjustment Factor described above. CHAPTER IX CONSTRUCTION CONTROL MANAGEMENT SECTION I ALIGNMENT, REVIEW AND APPROVAL OF PLANS SERVICE

... a) ... b) ...

Page 4 Agreement No. 018-2014 contained in Minutes No. 006-12-02-2014 c) ... Projects of social interest shall be understood as those in which dwellings do not exceed 45.00 m2 of construction. d) ... e) ... f) ... g) ... Any inspection that the Construction Control Management considers necessary shall be charged at Lps. 150.00 and/or at the request of the interested party, which must be added to the file from which it originated and a record of the inspection performed must be kept therein.

The Construction Control Management shall conduct the technical review thereof, verifying compliance with the areas previously established, street dimensions, review of the land use table approved, verifying the location and dimensions of green areas, lot areas, easement passages, entrances and exits, etc. As well as the proper delimitation and labeling, both of the green areas and social facilities; forwarding to the Legal Services Management, which shall make the legal assessments of the document, so that it shall forward it to the Honorable Municipal Corporation for its respective acceptance. SECTION II PERMIT FOR CONSTRUCTIONS, IMPROVEMENTS AND NOMENCLATURE

Every construction, enlargement, legalization, change of use, remodeling or restoration, demolition, earth movements, excavations or fills, and/or any complementary work of any project, building, residential project such as subdivision or condominium within the municipal term, shall be authorized by the Construction Control Management Office. … … … However, in the present year, as a complement to road organization efforts, the cost of construction permit for parking spaces and/or parking areas shall be equal to one lempira (Lps.1.00) provided that these are of a single level without a founded structural base and the use to which this service is directed is for the general public (see cost table***), this without prejudice to the duty of performing the corresponding procedures to obtain the respective construction license and the application of the fine in case of initiating work without the corresponding permit, which shall be calculated on the amount indicated in the cost table of the present fee schedule, without the application of the present benefit. If there exists formal construction such as warehouses, guard booths, sanitary facilities, commercial establishments, offices, etc., to these shall be applied the cost table according to type of work published herein. …

Page 5 Agreement No.018-2014 contained in Minutes No.006-12-02-2014 WORK COST TABLE TYPE DESCRIPTION UNIT COST RATE 1 BUILDINGS OF ONE OR TWO LEVELS For all buildings of one or two levels regardless of their use M² L8,500.00 1.00% 2 BUILDINGS OF THREE OR MORE LEVELS For all buildings of three or more levels regardless of their use M² L9,500.00 1.00% SINGLE-FAMILY HOUSING Adding Third Paragraph Social Interest Housing (up to 45.00 m²) L 1.00 per housing unit Housing up to 60.00m² M² L7,000.00 0.40% Housing with area of 60.01 m² to 100.00m² M² L7,000.00 0.50% Housing with area of 100.01 m² to 200.00m² M² L7,500.00 0.70% Housing with area of 200.01 m² to 300.00m² M² L7,800.00 1.00% Housing with area exceeding 300.01m² M² L8,500.00 1.00% Single-family and Multifamily Housing in Historic Center. L 1.00 per housing unit or multifamily project. WAREHOUSE BUILDINGS Metal frame structures of rigid frame or metal truss type on load-bearing walls, metal sheet roof. A. One level, with maximum height of 6.00 meters. M² L6,000.00 1.00% B. One level, at a height greater than 6.00 meters. M² L6,000.00 1.00% C. Mezzanine M² L6,000.00 1.00% BUILDINGS FOR INDUSTRIAL INSTALLATIONS Metal structure, wooden trusses, stringers or beams, metal sheet roof and load-bearing walls. A. One level with maximum height of 6.00 meters. M² L6,000.00 1.00% B. One level, at a height greater than 6.00 meters. M² L6,000.00 1.00% C. Two or more levels M² L6,000.00 1.00% D. Mezzanine M² L6,000.00 1.00% OTHER Parking spaces (Parking areas) of one level without founded structural base and depending on final use. *** L 1.00 per project Gas stations M² L9,500.00 1.00% Guard booths (guard houses) M² L9,500.00 1.00% Multi-purpose hall M² L9,500.00 1.00% Basements M² L9,500.00 1.00% Pedestrian bridges M² L9,500.00 1.00% OTHER CONSTRUCTION ACTIVITIES Brick wall construction M² L900.00 1.00% Concrete block wall construction M² L700.00 1.00% Retaining wall M³ L3,000.00 1.00% Stone wall construction M² L2,000.00 1.00% Prefabricated wall construction M² L1,500.00 1.00% Wall construction of other materials M² L600.00 1.00% Metal sheet or wooden structure roof M² L1,200.00 1.00% Concrete roof M² L2,250.00 1.00% Change of metal sheet roof to metal sheet M² L800.00 1.00% Parking spaces with metal sheet roof L 1.00 per project Parking spaces with multi-level concrete slab roof. (L 1.00 benefit does not apply when use is private). M² L5,500.00 1.00% Excavations and/or earth movements M³ L250.00 1.00% Demolition M² L250.00 1.00% Exterior work, landscaping M² L750.00 1.00% Concrete pavement, asphalt, private/public parking areas without roof L 1.00 per project Swimming pools M³ L7,500.00 1.00% Cisterns M³ L4,000.00 1.00% Gates for guard booths/Guard houses ML L2,500.00 1.00% REMODELING, MODIFICATIONS OF APPROVED PROJECTS AND/OR CHANGES OF USE Remodeling and changes of use greater than 45.00m² and up to 200.00m² (single-family housing, multifamily housing and/or non-residential uses) 20% of the value of the construction license calculated on the total area of the remodeling Remodeling and changes of use greater than 200.00 m² (single-family housing, multifamily housing and/or non-residential uses) 30% of the value of the construction license calculated on the total area of the remodeling. EXTENSIONS In case of social interest housing, the extension of the permit shall pay L 1.00 In other cases, the extension after the expiration date of the permit shall pay (shall not pay the previous years in which the construction permit was not used, but shall pay the previous years in case work has been initiated). 10% of the value of the license with a minimum of L.150.00. CERTIFICATES Zoning/Compatibility Certificates L 150.00 Normative Parameters Certificate. L 500.00 PRELIMINARY PROJECTS Single-Family Housing L 500.00 per project COMMERCIAL AND/OR MULTIFAMILY (Also included are Subdivisions, Gated Communities and/or Condominiums) From 1.00m² to 1,500m² L. 1,500.00 From 1,500m² to 3,000 m² L.2,500.00 From 3,000 m² and above L.5,000.00

Page 6 Agreement No.018-2014 contained in Minutes No.006-12-02-2014 The costs per square meter in the present "work cost" tables were provided by the Honduran Chamber of Industry and Construction (CHICO), which shall update and publish said costs annually through an informational bulletin in a newspaper of national circulation or by the means it deems appropriate. The Municipal Mayor's Office of the Central District may review and update the costs per square meter according to official publications. For the pertinent legal purposes, CHICO, prior to publication of cost updates, shall remit by official communication to the Mayor's Office, the new values, this with the purpose of promptly standardizing the amounts to be charged. … … … In cases where the individualization of properties has not been carried out in the Cadastral Management Office, the sum of the square meters of construction of the requested housing units shall be made under general cadastral keys of the project and to this result the value stipulated in the work cost table shall be applied.

The owner of the construction and/or subdivision of lots (in already urbanized areas) shall pay a single time for the purpose of assignment of nomenclature to the dwelling or building, the amount of seven hundred fifty Lempiras (L 750.00). The owner shall be obligated to have the respective plaque prepared. In the case of dwellings of social interest, the aforementioned charge for nomenclature shall be exempt.

SUPERVISION OF URBAN DEVELOPMENTS. … … Urban developments approved from 2008 to the present shall be subject to monthly inspections by the Construction Control Management in order to verify their progress and compliance with what was approved according to the Opinion, being required to leave a report of each of the urban developments visited. These urban developments shall not be subject to the monthly amount referred to in the preceding paragraph.

The supervision of the Construction Control Management shall comprise the following aspects: a) … b) ... and, c) Land Use Chart, and that described in article 103 of the present arbitrium plan. The developer shall notify the Construction Control Management and the Infrastructure Management or whoever acts in its stead, with an execution schedule of the urban works, reporting the dates of laying of pavements (sidewalks, streets, curbs, etc.), as well as to request from the developer any study to verify the resistance of materials, soil, concrete, asphalt and others related thereto.

Page 7 Agreement No. 018-2014 contained in Minutes No. 006-12-02-2014 … … …

For non-compliance with applicable regulations, sanctions shall be imposed in accordance with the following table. The application of fines and sanctions shall be made without prejudice to the obligation to carry out the corresponding construction permit procedures. SANCTIONS TABLE CONSTRUCTION CONTROL MANAGEMENT ACTIVITY / INFRACTIONS SANCTION A. … The Judge of the Municipal Department of Justice shall proceed to order the suspension of the works. And inform the respective professional college. … … … D… A fine equal to two hundred percent (200%) of the cost of the permit for the modified area shall be applied. If modifications were executed within the already authorized area, the party shall pay fifty percent (50%) of the cost of the permit and shall update the plans. …

Natural or legal persons who initiate construction work without obtaining the respective permit, understanding as work for this purpose that which is established in the regulation, shall be subject to the fine established in the current Fee Schedule. However, once the amount of the fine has been determined, it may be applied with the following benefits: They shall pay twenty-five percent (25%) of the fine if they prove payment of the permit within a period of ten (10) days counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. They shall pay fifty percent (50%) those persons who prove payment of the construction permit in the period from day 11 to day 20 counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. They shall pay seventy-five percent (75%) those persons who prove payment of the construction permit in the period from day 21 to day 30 counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. It shall be understood that the periods indicated above are established in business days. The interested party must prove the payment of the permit fee and the corresponding fine or fine percentage before the Construction Control Management within the established timeframes. Natural or legal persons to whom the corresponding fine has been imposed for initiating work without the respective permit prior to the entry into force of the present regulation, shall be granted the benefit indicated in the preceding paragraph. The provisions contained in this article are applicable during the validity of the present fee schedule. All cases submitted for consideration under the present fee schedule shall enjoy the aforementioned benefit provided that the established conditions are met. This does not exempt natural or legal persons to whom the fine has been imposed from presenting the respective file and the requirements and documentation that it may require.

The applicant shall cancel one hundred percent (100%) of the cost of the construction permit.

The withdrawal of the guarantee shall be carried out within a period of no less than five (5) months nor more than ten (10) months depending on the magnitude of the damage, the type of material existing in the wearing surface, and the road hierarchy of the affected roadway, and once it is verified that the repair was performed adequately and is in perfect condition. With respect to the condition of streets adjacent to new construction projects with work amounts exceeding Lp. 5 million, according to the cost table, the Construction Control Management shall issue a street condition report before initiating the project, it being a mandatory requirement for the interested party to present to the Construction Control Management a Bank Guarantee of 0.5% of the project budget to ensure street maintenance. After execution of the project, the interested party must request the Work Completion Certificate and the return of the aforementioned Bank Guarantee, for which the case shall be referred to the Road Infrastructure Directorate so that it may issue an opinion regarding the condition of the streets adjacent to the project and the feasibility of the return of the Bank Guarantee. SECTION V SIGNS AND BILLBOARDS

DEFINITIONS AND BASIC CONCEPTS

o SIDEWALK: Section of the public right-of-way designed exclusively for pedestrian circulation.

o ADVERTISER: Natural or legal person, owner and responsible for the message disseminated through advertising elements, installed on their own account or through third parties.

o ADVERTISING AGENT OR AGENCY: Natural or legal person engaged in the artistic creation of advertising messages, production of advertisements, development of campaigns and/or selection and contracting of media.

o PRIVATE AREA OF COLLECTIVE USE: Private space of collective use, intended for pedestrian and vehicular circulation (commercial buildings, office buildings and parking areas).

o BANNER (Pancarta): Graphic advertisement, generally of temporary advertising type, which is typically rectangular in shape.

o CURB: Edge of concrete, stone or brick that delimits the width of the roadway of a street.

o ADVERTISING FACE: The part of the advertising medium on which the advertising announcement or propaganda is placed or painted and is visible.

o HISTORIC CENTER: The polygon formed by cadastral sectors 01, 06 and part of sector 02 protected by the legislation in effect in the country due to its historical content.

o VISUAL CONTAMINATION: The saturation of advertising objects within the municipal space which causes negative impacts on the visual perception of inhabitants, due to distortion or any form of transformation of the natural, historical, urban and rural environment of the municipality.

o RIGHT-OF-WAY: The strip of State land designated for the construction of roadway works and other works related to safety, ornamentation, pedestrian use and the installation of basic services and other complementary works. It is comprised of roadways, medians, sidewalks, free areas, green areas and other infrastructure, limited on both sides by the boundary lines of adjacent properties.

o ADVERTISING ELEMENT: Sign or billboard, of flat, volumetric or combined form, with or without illumination, installed in private or public space, intended to promote goods, brands or services directly or indirectly; and to disseminate a message, name or activity of an establishment.

o ADVERTISING STRUCTURE: Support elements used to install advertising elements in public or private spaces.

o ADVERTISING COMPANY: Any natural or legal person that manufactures and installs advertising elements in the terrestrial and aerial space located within the jurisdiction of the Central District, whether commercializing them directly or through third parties.

o PRIVATE SPACE: Area owned by natural or legal persons, which is evidenced by valid title.

o PROPERTY LINE: Boundary that limits the property right over a parcel of land.

o BANNER (Manta): Rectangular piece of fabric or other flexible material, whose proportions are wider than they are tall and permitted only within private spaces, with exception to what is established in the Sign and Billboard Regulation.

o CANOPY (Marquesina): Covering formed by small roofs intended to provide shelter from sun or rain, which may be installed on facades, entrances or walkways.

o MINI-BILLBOARD: Advertising medium located in a private place different from the property occupied by the establishment that advertises, with maximum dimensions of five meters by two point fifty meters (5.00m x 2.50m), with a maximum of three (3) mini-billboards permitted per location.

o URBAN FURNITURE: All those urban elements that offer a complementary service to the city and that serve as support to its infrastructure and equipment.

o MUPIS: Rectangular form advertising element installed on sidewalks, green areas and adjacent areas.

o PENNANT (Pendón): A type of flag used as a distinctive mark, signal or insignia, whose proportions are longer than they are wide. Generally found as a hanging element.

o MUNICIPAL PERMIT FOR SIGNS AND BILLBOARDS: Resolution issued by the Mayor or Delegated Official that permits the installation of advertising elements in a specific location, according to the technical specifications established in the Sign and Billboard Regulation of the Construction Control Management, prior to payment of the corresponding fees.

o ADVERTISING: Action aimed at calling the attention of the public to disseminate a message or promote the sale of products, goods and/or services; intended to influence the consumer.

o SIGN (Rótulo): Advertising element, flat, volumetric or combined, that announces the commercial activity of the establishment where it is installed.

o BILLBOARD: Element, flat, volumetric or combined, that announces the advertising of companies and is not necessarily located on the property of the advertiser.

o UNIPOLAR BILLBOARD: Advertising medium that differs from the conventional billboard due to its smaller size and the typology of its structure that requires special safety conditions, as it consists of a tube as a central axis supporting an advertising box in the upper part.

o CONVENTIONAL BILLBOARD: Any advertising medium in the form of a poster or announcement with fixed physical structure, with productions painted or printed on self-adhesive or non-self-adhesive paper, that display letters, texts, figures, objects, symbols and logos, intended to remain in view of the public in outdoor environments and may be placed only in private places outside and within the urban area, being able to be located in a place different from the property occupied by the establishment that advertises them.

o PUBLIC RIGHT-OF-WAY OR MUNICIPAL PUBLIC SPACE: The area of State property that comprises the aerial, terrestrial and subterranean space, enabled for public use.

The purpose of this Section is to regulate the procedure and conditions for the installation of all advertising elements (indicated in the preceding subsections), in the private space authorized within the Municipality of the Central District through the Construction Control Management; with regard to classification, rates, fines, sanctions and final disposition thereof. Said conditions are as follows:

• a)

  All advertising elements that use as a transmission vehicle for the message, material means of diverse nature susceptible to attracting the attention of any persons found in open or public spaces, who transit public thoroughfares, circulate through communication routes, utilize private or collective means of transport and, in general, remain or move about in private areas of collective use, shall be subject to the norms of this Tax Plan.

• b)

  Every natural or legal person who engages in commercial activities within the municipal territory shall identify their establishment by means of a sign that announces the company name of said enterprise.

• c)

  Every advertising element shall meet the technical specifications, safety and aesthetic requirements, described in the Regulations for the Installation of Signs and Billboards in the Central District.

• d)

  In no case shall advertising elements, whether installed or intended to be installed, obstruct pedestrian and/or vehicular circulation, access to properties, emergency exits or be placed in locations where they may compromise adequate visibility of vehicular traffic or pedestrians. Both their location and the materials used in their construction may not jeopardize the physical integrity of persons, the security of their property or cause verifiable nuisance to the inhabitants of the area.

• e)

  All billboards shall display in a location visible from the public thoroughfare or private areas of collective use an identification decal with a serial number issued by the Construction Control Management, which shall be renewable each year.

• f)

  In the case of billboards, in addition to the placement of the decal, the name of the owner and their telephone number shall appear in a visible and legible location. It shall be the obligation of the owner of the structure to ensure said identification.

• g)

  Advertising structures in which these elements are not found shall be considered deficient or illegal.

• h)

  Signs, billboards, posters, advertising notices and propaganda of any kind, within the municipal area and in the sites authorized for such purpose, shall pay a single time for the permit for installation of the structure and annually for the renewal of the permit, shall pay the same amount established in the RATES Section, being able to cancel said concept through a payment agreement executed solely by the Construction Control Management, prior to the request of the interested party, and must pay a minimum of twenty-five percent (25%) of the total amount owed at the time of executing the agreement and the remaining amount within a maximum of twelve (12) months, in no case may it exceed the current fiscal year, and if necessary, the number of installments shall be adjusted to the number of months remaining of the fiscal year when applicable. To guarantee compliance with the obligation (payment agreement) the interested party shall be obliged to issue to the Municipality a promissory note for the total value of the debt, this being an indispensable requirement for the execution of agreements.

• i)

  Failure to comply on the stipulated dates shall give right to the Municipal Government of the Central District to demand fulfillment of the obligation and to charge two percent (2%) monthly interest on the total value of the debt; likewise, delay in payment of an installment shall give rise to the sanctions that are appropriate under law and that the Construction Control Management jointly with the Municipal Department of Justice shall impose; in the same manner, the respective permit for the installation or renewal of advertising elements shall be extended only when the debt has been paid in full.

All advertising elements intended to be installed on public roadways shall be submitted to the Mayor or Vice-Mayor for approval, with oversight by the Construction Control Management Office.

RATES. In accordance with the present Tax Plan, all signs and billboards located outside the historic district shall pay a rate corresponding to the unit of measurement, the number of faces, and the type of structure, according to the following classification:

For Signs:

• a)

  Advertising of any commercial activity, adhered, affixed, painted, or flag-type opaque that occupies the business or in places of public entertainment shall be charged annually two hundred Lempiras (L 200.00) per square meter or fraction of a meter and per advertising face. Flag-type signs that are approved must install the support and/or support structure within private property, being able to extend the advertising over the sidewalk, provided it does not exceed half thereof.

• b)

  Advertising placed on marquees, awnings, and opaque umbrellas of buildings shall pay annually two hundred fifty Lempiras (L 250.00) per square meter or fraction, and luminous ones three hundred Lempiras (L 300.00) per square meter or fraction of a meter, these must be placed on private property and may extend over the sidewalk provided that it does not exceed half thereof, up to a maximum of ninety centimeters (0.90 m) and that the height from the ground to the lower edge of the billboard is greater than three meters (3.00 m).

• c)

  Unipolar, affixed, and luminous flag signs shall pay annually three hundred Lempiras (L 300.00) per square meter or fraction of meters and per advertising face. Also, in the case of unipolar signs, they must present an insurance policy against damage to third parties once approved.

• d)

  Advertising signs that are installed or painted on motor vehicles and non-motor vehicles that identify the commercial activity of the company owning the vehicle in accordance with the provisions of the Construction Control Management shall pay annually per vehicle one thousand Lempiras (L 1,000.00).

• e)

  Advertising announcements that are installed or painted on motor vehicles and non-motor vehicles that do not identify the commercial activity of the company owning the vehicle shall pay annually one thousand two hundred fifty Lempiras (L 1,250.00) per vehicle.

• f)

  For the distribution of leaflets fifty Lempiras (L 50.00) for each one hundred. Distribution shall only be permitted in shopping centers, public educational institutions, and similar establishments, prior to authorization from their owner and/or administrator. Lack of permission and distribution of leaflets in public thoroughfares shall generate a fine of one hundred percent of the cost of the permit for each one hundred leaflets and without prejudice to the established sanctions.

• g)

  For announcements or advertising on pennants (of fiberglass material, silicon, or any other flexible material) on private property, three hundred Lempiras (L 300.00) per unit shall be charged by week and/or fraction of a week.

• h)

  For announcements or advertising on banners and flags (of fiberglass material, silicon, or any other flexible material) on private property, two hundred Lempiras (L 200.00) per unit per week or per fraction of a week shall be charged. To guarantee their removal, the Construction Control Management shall not authorize new installations to the interested party without having removed the previously authorized ones. The interested party must remove the banner no later than one day after the permit expiration date, and otherwise the Construction Control Management shall proceed to remove it, without prejudice to the established fine.

• i)

  For electronic and/or digital screens, four thousand Lempiras (L 4,000.00) per square meter or fraction of a meter shall be paid annually.

• j)

  For the installation of inflatable advertising, the Construction Control Management shall establish the parameters for the authorization of airships, small aircraft, or similar devices, and one thousand Lempiras (L 1,000.00) per unit shall be paid; the same amount shall be paid for each week or fraction of a week in which such advertising is used.

• k)

  The Construction Control Management may authorize in revitalization and maintenance projects of public use areas, the installation of advertising elements with the exception of medians; the Construction Control Management shall determine the conditions, design, and execution thereof.

  For Billboards:

  a) Conventional advertising billboards may be placed in private locations, within and outside the urban area and that are located in places different from the property that houses the establishment they advertise, shall pay annually three hundred Lempiras (L 300.00) per square meter or fraction. All land where a conventional billboard is installed must be properly fenced. Their measurements shall not exceed seven meters (7.00 m) in height by thirty-five meters (35.00 m) in length for billboards installed in areas outside the urban district. For billboards installed within the Urban District excluding the Historic District, their measurements shall not exceed five meters (5.00 m) in height by fourteen meters (14.00 m) in length. The interested party must present an insurance policy against damage to third parties once approved, when the billboard has an area greater than seventy square meters (70.00 m²).

  • a)

    Unipolar billboards shall pay annually four hundred Lempiras (L 400.00) per square meter or fraction, the interested party must present an insurance policy against damage to third parties once approved and the structural design signed by a specialist Engineer. The minimum distance between unipolar billboards shall be one hundred meters (100.00 m). All land where a unipolar billboard is installed must be properly fenced.

  • b)

    Multiple unipolar billboards shall pay annually five hundred Lempiras (L 500.00) per square meter or fraction, the interested party must likewise present an insurance policy against damage to third parties once approved and the structural design signed by a specialist Engineer.

  • c)

    For mini billboards, seven hundred Lempiras (L 700.00) per square meter or fraction shall be paid annually. These shall be permitted only on private property and may be installed on perimeter walls on public thoroughfares, provided that no element thereof interferes with the free circulation of pedestrians or vehicles; it may have cantilever lighting elements, provided that the height is not less than two point eighty meters (2.80 m) and does not exceed one-third (⅓) of the sidewalk; these shall not have a measurement greater than five meters (5.00 m) by two point fifty meters (2.50 m), with a maximum thickness of zero point twenty meters (0.20 m); each group of mini billboards shall be composed of a maximum of three (3) units; the minimum distance between each group of mini billboards shall be two hundred meters (200.00 m). Companies that install mini billboards must grant ten percent (10%) of the number of mini billboards that are installed for use by the Municipality containing civic, educational, informational, or regulatory messages that benefit the population of the Municipality.

  • d)

    Mupis, bus stops, and all signs installed on urban furniture, with the exception of digital or electronic screens, shall pay annually three hundred Lempiras (L 300.00) per square meter or fraction, with the minimum separation between mupis being thirty meters (30 m), in which the advertising company is obligated to provide maintenance to the sidewalk or green area where it is installed.

SIGNAGE WITHIN THE HISTORIC DISTRICT. The Management of the Historic Center shall be responsible for the regulation of all advertising within the Historic Center of the Central District, and shall determine the guidelines for the installation of signs, announcements, and advertising of any kind, denying or approving, as applicable, their installation, in accordance with the Regulations for the Management of the Historic Center, whereby the applicant is obliged to be familiar with the guidelines for the installation of signs or advertising announcements. Once the design is approved, the final processing of the application shall be conducted at the Construction Control Management, and the applicant must submit the required documentation, in addition to making the corresponding payment for the permit for signs or advertising announcements, without prejudice to the payment specified in Chapter VI, Section II, and in accordance with the following classification: a) Opaque affixed advertising, opaque flag type and painted shall pay one hundred fifty lempiras (L 150.00) per meter or fraction thereof. b) Advertising on awnings and canopies shall pay two hundred fifty lempiras (L 250.00) per meter or fraction thereof. GENERAL PROVISIONS

The placement of advertising banners in horizontal form that traverse both ends of streets shall not be permitted, in view that they may cause visual pollution and diminish driver visibility. The violation of the foregoing stipulated provision shall be sanctioned with the fine specified in the present fee schedule, without prejudice to the seizure and final disposition thereof. The Construction Control Management shall be responsible for monitoring compliance with the present provision.

All small businesses that do not have branches shall be exempt from the annual payment for renewal as described above, when their sign does not exceed one point five square meters (1.50 m²). Such commercial establishments are listed in the following inventory: INVENTORY OF SMALL BUSINESSES

Page 15 Agreement No. 018-2014 contained in Minutes No. 006-12-02-2014 No. DESCRIPTION 1 Small grocery stores. 2 Beauty salon services. 3 Food and non-alcoholic beverage services (sale of candy, refreshment stands, cafeterias, snack bars, food stalls and dining establishments). 4 Internet services. 5 Sale of meats and meat products (butcher shops). 6 Corn and other basic grain milling services (mills). 7 Manufacture of clothing items except those made of leather and fur. 8 Wood products factories (carpentry shops). 9 Repair of domestic electrical appliances. 10 Tire and pneumatic repair services (tire shops). 11 Footwear and other leather goods repair. 12 Upholstery services. 13 Sale of fresh fruits, vegetables and greens (produce shops). 14 Barbershops and/or hair salons. 15 Sale of foam desserts. 16 Photocopy and stationery services. 17 Miscellaneous and accessories small market. Any activity of enterprises considered as microenterprises, simple accumulation enterprises and subsistence enterprises, in accordance with the law and what may be established by the Construction Control Management.

Any application for a new sign that is authorizable and for which a file has been filed in the last quarter of the year shall be subject to a charge of fifty percent (50%) of the total value of the permit.

Every payment notice shall have a validity period of five (5) business days, and once that period has expired, proceedings shall be conducted in accordance with the provisions established in the SANCTIONS section.

With respect to unipolar and conventional billboards that are already installed, the Construction Control Management may legalize their installation with the characteristics and conditions in which they are installed, provided that they comply with zoning parameters. This type of legalization obtained within the time period established in the following article shall be exempt from the amount of fines, surcharges, and interest generated by the installation of billboards without authorization and from the fine imposed for failure to pay in a timely manner the renewal of the corresponding permit and those complete requests that, being subject to the imposition of a fine, are submitted and resolved during the time period established in this article. Taxpayers may avail themselves of this procedure and therefore of the benefit, whether natural or legal persons, owners (the owner of the property, the company owning the billboard, or the advertiser shall be jointly and severally liable) of unipolar billboards installed within the Central District that process their permit and that make payments for all outstanding years of payment, with the amounts established in this Fee Schedule, which shall be applied in the following manner: They shall pay twenty-five percent (25%) of the fine if they provide proof of payment of the permit within a period of ten (10) days counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. They shall pay fifty percent (50%) those persons who provide proof of payment of the construction permit in the period from day 11 to day 20 counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. They shall pay seventy-five percent (75%) those persons who provide proof of payment of the construction permit in the period from day 21 to day 30 counted from the notification of the fine imposed, this notification shall be made by means of a payment notice. It shall be understood that the time periods mentioned above are established in business days. The preceding terms shall be understood as counted from the day following the expiration of the deadline for the submission of the inventory and the payment of the advertising elements indicated in the current fee schedule. The provisions contained in this article are applicable during the term of this fee schedule.

Those persons who, as of the effective date of this Schedule of Fees, shall have paid the amounts corresponding to the rate for license or installation permit and the percentage of the fine required to access payment plans, and those who as of such date shall have already subscribed to payment plans, shall enjoy the same benefit, being able to be relieved of the remainder of the obligation in accordance with the date on which they present themselves to execute the respective discharge with the Construction Control Management in accordance with that established in the preceding article. Payment agreements that shall have been executed at a percentage greater than that which would correspond in accordance with the date on which the beneficiary presents himself to the Construction Control Management shall be considered automatically fulfilled, without this implying any type of refund or credit for the excess amount SANCTIONS:

Measures for Non-Compliance and Recidivism. Any person who, having been sanctioned for infringing the present regulations, reoffends by committing a similar or identical action, shall have their right of preference suspended for processing of Permit applications. If the person reoffends in committing the infraction, their corresponding operating permit to work in the installation of advertising in the Municipality shall be suspended and the preferential right to which they were subject shall be cancelled, as well as the non-return of the confiscated items. The imposition of the administrative sanctions herein provided shall be made without prejudice to those established by other applicable laws.

The location or distribution of all types of signs or written advertising shall be subject to the following:

Pàg.17 Agreement No.018-2014 contained in the Minutes No.006-12-02-2014 a) The Construction Control Management shall be responsible for the regulation of all advertising within the Municipality, which shall determine the guidelines to be followed, including the application of restrictions in zones under special control for environmental, cultural, historical, comfort, aesthetic, and safety reasons. In cases of non-compliance with current regulations, the Construction Control Management shall report to the Municipal Department of Justice, which through the unit created for such purpose, shall proceed to execute the removal of the sign or billboard at the cost of the violator, without prejudice to the imposition and corresponding payment thereof. b) Billboards shall be subject to annual payment to be made at institutions of the national financial system authorized by the Municipal Administration, in accordance with the payment notice issued by the Construction Control Management. Responsibility for any irregularity and payment for the installation and/or renewal of billboards shall be joint and several among the advertising company, advertiser, and property owner where the billboard and/or sign is located. It is understood that the issuance of the permit for installation of advertising billboards shall be the exclusive faculty of the Construction Control Management, and for future requests, the advertising company must be current with this Management either by completion of agreement or full payment. c) For the presentation of all types of advertising elements, all natural or legal persons are obliged to provide to the Construction Control Management, a sworn statement of the number of signs, billboards, and all types of advertising elements that they have installed in the Central District (inventory) as well as payment for the renewal and/or authorization of such elements, within a maximum period of twenty (20) business days from the effective date of this Schedule of Fees. The Construction Control Management shall establish the conditions and requirements at its discretion in which such inventory shall be presented, as well as all documentation. In case of non-presentation and failure to make the corresponding payment within the period previously established, the corresponding sanctions shall be applied and proceedings shall be initiated for its removal and destruction. d) Prior to issuing the statement for payment of the Industry, Commerce and Services Tax, the Collection and Financial Control Management and/or the AER shall request from the taxpayer a certification issued by the Construction Control Management indicating that the taxpayer is current in payment of signs, billboards, poles, cables, and any other type of element installed within private property. e) The lack of authorization for installation or renewal of permit within the times established in the current schedule of fees, as well as the lack of payment and/or expiration of payment notice issued, shall generate a fine of one hundred percent (100%) of the value of the permit or its renewal, as well as the placement of the sticker, removal of the elements, and blocking of the operating permit; this fine shall be applied subsidiarily to the company owning the supporting element as well as to the company being advertised.

Pàg.18 Agreement No.018-2014 contained in the Minutes No.006-12-02-2014 f) The removal of the unauthorized sticker placed under the aforementioned concepts shall generate a fine of five hundred lempiras (L 500.00) per square meter or fraction, calculated based on the surface area of the sign from which it was removed. g) Any collection requirement for payment of permits, renewals, reports, and other services of the Construction Control Management whose requests were filed in prior years shall be calculated and issued based on this Schedule of Fees. h) In the case of companies advertising without the respective permit, the Construction Control Management shall notify such non-compliance, granting a period of five (5) days to present the corresponding installation permit; if they fail to do so, the sanction described in subsection e), Sanctions, shall be imposed. i) Advertising installed in public space and unauthorized right of way shall be sanctioned as follows: TYPE OF ELEMENT RATE OF CHARGE (L) Advertising on Poles L 200.00 per m² Advertising on Medians L 400.00 per m² Mobile Billboards L 2,000.00 per unit Street Crossing Banners L 500.00 per unit Mobile Antennas L 7,000.00 per unit Mobile Screens L 2,500.00 per m² Mobile Advertising Elements (including persons in motion) L 1,000.00 per unit The owners of seized signs and/or billboards shall have a period of ten (10) business days to remove them from the facilities designated for such purpose by the AMDC, and must for this purpose pay the respective fine; otherwise, the Municipality may dispose of such advertising media for municipal works or other purposes that the Municipal Corporation deems appropriate. j) The distribution of propaganda and/or written advertising in contravention of laws, morality, good customs, or that does not include information about its origin or person responsible for its distribution shall not be permitted. In case of violation of the foregoing, the propaganda and/or advertising shall be seized and those responsible shall be sanctioned with a fine of three thousand lempiras (L 3,000.00), without prejudice to legal responsibilities that may be applicable. k) The amounts paid for permit fee and/or renewal concepts that are not utilized may not be used in other requests. In no case shall this municipality return the payment made for the permit for installation of advertising either for problems that the permit holder may have in not being able to install authorized advertising or that it be removed before the expiration of the permit held by the interested party. Unless through verification in the public deed the obligations and rights acquired by the new company are indicated, in which case it may continue to enjoy the previously granted permit, solely by paying for all new advertising.

Pàg.19 Agreement No.018-2014 contained in the Minutes No.006-12-02-2014 l) It is forbidden to affix advertising or propaganda on poles and walls at the limits of the Historic Center using any type of adhesive. Likewise, it is strictly prohibited within the cadastral sectors comprising the Historic Center area, the placement of propaganda on building facades, public lighting or telephone poles, or on any other urban equipment, such as: telephone booths, trash deposits, bus and taxi stations, etc. For the installation of any signs or advertising announcements in the Historic Center area, prior authorization for approval must be requested from the Historic Center Management, in addition to the permit extended by the Construction Control Management. Luminous signs, electronic screens, nor similar elements shall be permitted. Contravention of what was established herein shall cause a fine of ten thousand Lempiras (L.10,000.00) as well as the obligation of its immediate removal. Article 135… … … a)… b)… c)… d)… e)… f)… g)… In the event that a new cemetery lot is acquired for the municipal cemetery during the year 2014, the administration is authorized to establish the rate corresponding to the Fee for the lot, which must be in proportion and proportional to the rate charged in existing ones, to the price of acquisition of the land, as well as to market value and category of service rendered, and must inform the Municipal Corporation thereof. ARTICLE THREE: All those provisions contained in the Schedule of Fees for Fiscal Year 2013 and in effect for this year 2014, in which it says "TRANSITIONAL NORMS FOR UPDATING THE ZONING AND STANDARDS OF SUBDIVISION, WORKS AND LAND USE IN THE CENTRAL DISTRICT", shall be read and applied REGULATIONS OF THE ZONING, WORKS AND LAND USE IN THE CENTRAL DISTRICT. Likewise, in those provisions in which "2013" is read, "2014" shall be understood. ARTICLE FOUR: This agreement shall be executed immediately and shall be published in the Official Gazette La Gaceta. BE PUBLISHED AND COMMUNICATED.- Seal f) Nasry Juan Asfura Zablah, Municipal Mayor, Juan Carlos García Medina, Vice Mayor and the Aldermen: Martín Stuar Fonseca Zúniga, José Javier Velásquez Cruz, Erick Ricardo Amador Aguilera, Rafael Edgardo Barahona Osorio, Marcia Facusse Andonie, Jorge Alberto Zelaya Munguía, María Luisa Borjas Vásquez, José Carleton Dávila Mondragón, Faiz Salvador Sikaffy Canahuati and Silvia Consuelo Montalván Matute.- Seal f) Cossette A. López-Osorio A., Municipal Secretary". Executed in the city of Tegucigalpa, Municipality on the twenty-seventh day of the month of February of the year two thousand fourteen. COSSETTE A. LÓPEZ-OSORIO A. MUNICIPAL SECRETARY