Certification of Agreement 042-2015 Reform of the 2013 Tax Plan Amendment

A: Solid waste management services that include street cleaning, collection, transport, and final disposal of solid waste are classified as:

B: It is the responsibility of the Municipal Sanitation Superintendency to supervise waste generators, collection, transport, and final disposal of solid waste. The final disposal of special, hazardous, biological, and highly contaminating waste shall be done through special cells that ensure there is no environmental damage. NO.070 of Minutes NO.025 dated December 18, 2014, for application in fiscal year 2016.- WHEREAS: The Budgetary Norms constitute an indispensable instrument for the effective execution of the Budget of Income and Expenses of the Municipality for Fiscal Year 2016, consequently their approval is indispensable.- WHEREAS: Municipal Corporations shall issue general application norms within the municipal territory, in matters of their exclusive jurisdiction, which must be communicated by any suitable means such as: print media, radio, television, notices and loudspeakers- THEREFORE: The Municipal Corporation of the Central District, in use of its powers and in accordance with the provisions established in Articles 12 numeral 2), 25 numerals 1), 4) and 7) of the Law of Municipalities; 13 second paragraph of its Regulation.- AGREES: FIRST ARTICLE: To repeal Articles 36 and 81 of Agreement No. 053 of Minutes No. 017 dated December twentieth of the year two thousand twelve.- SECOND ARTICLE: To reform Articles 40, 42, 143 numeral 1), 147 and 194 and to reform by addition Articles 40-A, 40-B, 41-A, 41-B, 41-C, 41-D and 42-A of Agreement No. 053 of Minutes No. 017 dated December twentieth of the year two thousand twelve; which shall be read from now on as follows:

MONTHLY RATE BY RANGE OF ANNUAL INCOME SOLID WASTE MANAGEMENT ANNUAL PAYMENT IN LEMPIRAS IN LEMPIRAS Up to 75,000.00 51.00 612.00 From 75,000.01 to 150,000.00 76.00 912.00 From 150,000.01 to 300,000.00 201.00 2,412.00 From 300,000.01 to 600,000.00 301.00 3,612.00 From 600,000.01 to 1,000,000.00 511.00 6,132.00 From 1,000,000.01 to 2,000,000.00 1,120.00 13,440.00 From 2,000,000.01 to 5,000,000.00 1,720.00 20,640.00 From 5,000,000.01 to 10,000,000.00 2,416.00 28,992.00 From 10,000,000.01 to 15,000,000.00 2,752.00 33,024.00 From 15,000,000.01 to 20,000,000.00 3,520.00 42,240.00 From 20,000,000.01 to 30,000,000.00 4,480.00 53,760.00 From 30,000,000.01 to 40,000,000.00 5,328.00 63,936.00 From 40,000,000.01 to 60,000,000.00 5,504.00 66,048.00 From 60,000,000.01 to 100,000,000.00 6,400.00 76,800.00 From 100,000,000.01 to 150,000,000.00 8,000.00 96,000.00 From 150,000,000.01 to 200,000,000.00 11,200.00 134,400.00 From 200,000,000.01 to 250,000,000.00 14,400.00 172,800.00 From 250,000,000.01 to 300,000,000.00 17,600.00 211,200.00 From 300,000,000.01 to 400,000,000.00 22,400.00 268,800.00 From 400,000,000.01 to 500,000,000.00 28,800.00 345,600.00 More than 500,000,000.00 32,000.00 384,000.00 The collection of this service fee shall also be monthly, in accordance with the following table: Service and shall be in accordance with annual income from sales volume in each declared branch. La Gaceta

It is entirely mandatory for all citizens who have their home or business in areas where waste collection service is provided to use it, and they are obligated to pay the respective fee whether or not they use it. The Municipal Mayor is authorized to issue agreements that develop the regulations for the collection of Solid Waste and corresponding charges. 3) Other generators: In the case of state institutions or agencies, organizations exempt from the Real Property Tax, and other unregistered properties, as well as any other generator not included in the previous classifications, shall pay a fee according to a special Agreement issued by the Municipal Corporation. For companies and institutions that have more frequent collection per week, or that by their economic activity (supermarkets, restaurants, hotels, assembly plants, shopping centers, schools, universities, factories, hospitals, and similar) constitute themselves as large generators, qualified by the Administration as appropriate, an additional charge is established of up to one hundred percent (100%) of the rates established in the previous table. The Administration is authorized to design an effective monthly collection system, and in this manner proceed to make corresponding collections for the payment of fees for street cleaning, collection, transport and final disposal of solid waste services to all taxpayers of the Central District. Residential Sectors Commercial and Industrial Sectors a-) for street sweeping and cleaning a-) for street sweeping and cleaning 10% of the amount to be paid. 15% of the amount to be paid. b-) for management and final disposal in the b-) for management and final disposal in the municipal dump: municipal dump: 10% of the amount to be paid. 35% of the amount to be paid. Companies and institutions considered by their economic activity as large generators, but that have Waste Management Plans, Best Practices and Cleaner Production Methods may request an inspection from the Municipal Sanitation Superintendency who shall issue an opinion if, due to volumes or weight generated, they do not qualify as Large Residue Generators. ARTICLE 40-B: In the sectors and/or businesses and institutions where waste collection service is not provided but street sweeping service, transport and final disposal of Solid Waste are provided, the following percentages shall be applied to the fee applied to the declaration submitted with prior opinion from the Municipal Sanitation Superintendency: La Gaceta

A: The Municipal Sanitation Superintendency is authorized to collaborate with the Municipal Justice Department regarding the citation or service regarding violations of the provisions contemplated in Articles 40, 41, 41-A, 41-B, 41-C, 42, and Article 47 literals a, b, c, d, e; and, j of this Plan of Levies. Every clinic, health care facility, hospitals and similar establishments where hospital waste is generated must present, for renewal of the operating permit, proof of use of the Special Cell in the Sanitary Landfill issued by the Municipal Sanitation Superintendency and be current with payments for this service.

B: Shall be charged for the service of hospital solid waste disposal in the special cell within the sanitary landfill, at the rate of three thousand lempiras (L. 3,000.00) deposited by contracting company, clinic, hospital or laboratory, whether of a public or private nature.

D: A special account shall be created to sustain the operations of the Municipal Sanitation Superintendency. Said account shall be maintained exclusively with funds from the payment of fines imposed for violating the provisions established in Articles 41, 41-A, 41-B and 47, as well as from collections for the Service of Use of Hospital Cells and Special Cells established in this Plan of Levies.

C: The only Final Disposal site for Waste is the Sanitary Landfill; in the case of inert materials they may be disposed of in landfills authorized by the Environmental Management Unit.

B: Persons in charge of transporting solid waste to the Sanitary Landfill must do so taking into consideration corresponding measures and framed within national and municipal legislation such as: covering the waste with a tarp to prevent it from scattering in the public roadway at the moment of being transported, personal protective equipment, road equipment and other applicable items.

A: Regarding the use of containers:

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  Containers located at various points in the city are for residential use only; discharge of vehicles is prohibited.

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  A maximum discharge equivalent to one barrel of waste is permitted in containers of 20 and 30 cubic yards.

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  Waste must be deposited within the container and be in bags of sufficient strength.

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  Garden waste or tree pruning, tires, construction waste, demolition, soil, special waste and biological-infectious waste shall not be deposited.

All businesses such as: restaurants, shopping centers, stores, warehouses, residences and others, have the obligation to keep their sidewalks or spaces clean and free of waste or garbage having the obligation to know the days and times the garbage collection unit passes. In the Residential Sector it shall apply to zones of difficult access, villages and hamlets, located more than four hundred meters from the nearest collection point, including containers. In the case of the Commercial Sector, they must use the Sanitary Landfill making periodic and continuous discharges. La Gaceta

h) For Temporary Operation Licenses for Concerts and Artistic, Cultural Presentations and International Speakers of all kinds shall be paid at the time of processing the permit in accordance with the following table: g) National events and spectacles of mass mobilizations such as carnivals, marathons, walks, competitions, races and exhibitions of all kinds shall pay ONE THOUSAND LEMPIRAS (L. 1,000.00). f) Temporary Operation License for commercial and non-commercial events of national character such as congresses, lectures, workshops, bingo games and fashion shows shall pay ONE THOUSAND LEMPIRAS (LPS. 1,000.00) per event. d) Temporary Operation Licenses for Circuses: 1. For national owners shall pay TWO HUNDRED (L. 200.00) LEMPIRAS daily. 2. For foreign owners shall pay ONE THOUSAND TWO HUNDRED (LPS. 1,200.00) LEMPIRAS per function. e) For national events and spectacles such as: concerts, cultural, theatrical and artistic presentations; sporting spectacles duly federalized and accredited by CONDEPAH, as well as celebrations and events of educational centers, shall be granted Temporary Operation Permit through payment of receipt for L. 200.00 for a maximum period of 3 months. 2. For foreign owners shall pay per month or fraction L. 2,500.00 1. For national owners shall pay per month or fraction L. 500.00 b) Gambling games, game tables, including bingo games of any occasional kind, installed within amusement parks, shopping centers and others, except those installed in patron fairs, seasonal, craft fairs and mechanical games parks, shall pay FIVE THOUSAND LEMPIRAS (L. 5,000.00) per month or THREE HUNDRED LEMPIRAS (L. 300.00) daily, having to declare the quantity of games to be installed. c) Temporary Operation Licenses for the installation of mechanical games in amusement parks and similar establishments for profit, except those installed in Patron Fairs, Seasonal, Craft, shall pay:

B: Any temporary activity with a maximum duration of three months, of a commercial, industrial, service, acts or representations of all kinds open to the public, carried out by natural or legal persons of any class, national or foreign, with or without profit motive, shall previously require a temporary operating permit from the Municipality, which shall be processed and issued in the Citizen Service Management (AER), in accordance with the requirements that said Management establishes for such purposes. Temporary licenses shall be extended in accordance with the following rate: a) Patron fairs in the urban area shall pay per month FIVE THOUSAND (L. 5,000.00) LEMPIRAS and in rural area shall pay per month TWO HUNDRED (L. 200.00) LEMPIRAS, seasonal fairs TWENTY-FIVE THOUSAND LEMPIRAS (L. 25,000.00) and for craft fairs THREE HUNDRED (L. 300.00) LEMPIRAS DAILY.

I: La Gaceta

"ARTICLE 34: The Municipal Mayor is authorized to manage a rotating fund of up to Five Hundred Fifty Thousand Lempiras exact (L. 550,000.00); a rotating fund for the Municipal Vice-Mayor of up to Three Hundred Thousand Lempiras exact (L. 300,000.00); a rotating fund for each of the Aldermen of up to One Hundred Fifty Thousand Lempiras (L. 150,000.00); a rotating fund for the Municipal Secretary of up to Seventy-Five Thousand THIRD ARTICLE: To reform Articles 34, 36 literal e), 38, 81 and 98 of the Budgetary Norms contained in Agreement NO.070 of Minutes NO.025 dated December 18, 2014, for application in Fiscal Year 2016; which shall be read as follows: mixed or commercial property that is not the property of the applicant for purposes of issuing Business Operation Permits.

C: Prior to resolving requests that imply the granting of rights by the Municipality, it must verify the solvency of the petitioner, interested party or beneficiary, through the Collections Management and Financial Control. Likewise, the solvency of the immovable property of mixed or commercial use shall be verified. The foregoing is without prejudice to the application of the sanctions established in the Law of Municipalities and its Regulation and the Law of Police and Citizen Coexistence. The event organizer or coordinator must have the respective license at a minimum FORTY-EIGHT (48) HOURS before the event. Non-compliance with said deadline shall give rise to payment of an additional fine of 5% of the total value of the permit. Event organizers who do not process the permit through this municipality shall pay an equal fine without prejudice to the payment of the fee. The owners of establishments where these types of events are developed must request the exhibition of the corresponding license from the organizers at the time of signing the contract. The owner of the establishment that authorizes the event without the corresponding license shall pay a fine of TWENTY-FIVE THOUSAND LEMPIRAS (L. 25,000.00). When the events are contemplated in subsections f), g) and h) of this article and as long as they are developed for charitable purposes or without profit motive, the Municipal Mayor of the Central District shall grant a discount of 10% of the total value of the permit, subject to investigation carried out by the Citizen Service Management (AER). ARTISTIC PRESENTATIONS, INTERNATIONAL CONCERTS CULTURAL AND INTERNATIONAL SPEAKERS Venue with capacity Value to pay Venue with capacity Value to pay of: of: 1 to 3,000 persons L. 35,000.00 1 to 1,000 persons L. 5,000.00 From 1,001 to 2,000 3,001 to 6,500 L. 75,000.00 persons L. 10,000.00 persons 6,501 persons onwards 2,001 persons onwards L. 85,000.00 L. 15,000.00 Section A Agreements and Laws

COSSETTE A. LÓPEZ-OSORIO A. MUNICIPAL SECRETARY Likewise, the Administration may manage medical and life insurance for those the Municipal Corporation authorizes in accordance with the Law".

... requests for aid in the month of December. These funds must be liquidated in the respective month of their allocation. month of May; piñatas, candy, sweets and toys for the celebration of Children's Day in September and various. The Municipal Mayor may authorize the creation of Special Funds for members of the Municipal Corporation on each of the following dates: First week of February First week of May First week of September First week of December. These funds shall be for strengthening the capacity to address requests made by different sectors of the Municipality in relation to school supplies, uniforms and books in the month of February; support for mothers in the

C: Rotating funds shall be used for the payment of the following: a) . b) . c) Economic aid of a social/humanitarian nature and matching funds for social/community projects. Such aid may be in cash or in kind. d) . e) . f) .

D: Officials who manage reimbursable funds shall have to liquidate them no later than December 31, 2016 and obtain the corresponding discharge, understanding by moment of liquidation that moment in which the responsible official remits it to the Finance and Administration Department; no official shall be provided with new funds in 2017 if they have not satisfactorily liquidated 2016. Lempiras exact (L. 75,000.00); all of them authorizable on a monthly basis. La Gaceta