STATUTE
OF NON-PROFIT ASSOCIATION
"CULINATY ARTS AND HOSPITALITY"

January 2012
Dobrich

I. General principles
Art. 1. (1) This statute establishes a legal framework of the association for implementation of activity for private benefit under the Law for Non-Profit Organizations.
(2) Association has legal personality under the name:
Association "Culinary arts and hospitality" (АКИГ)
residence of a company: Dobrich, Republic of Bulgaria
address: "Bulgaria" 3, St.

Objectives
Art. 2. The Association is established to achieve the following objectives:
(1) to unite and represent the interests of companies and organizations in the field of culinary, family hospitality and tourism;
(2) to support sustainable development and effective market realization of its members;
(3) to contribute to improving the quality of products and services in the field of gastronomy, family hospitality and tourism;
(4) to initiate actions to increase the market share, innovation and creating products and services with high added value in the area of culinary and hospitality;
(5) to achieve cooperation with educational institutions and non-governmental organizations working in support of business;
(6) to effectively market the services and products of all companies and organizations involved in the cluster, including the active use of the capabilities of information technology;
(7) to assist the access of its members to specialized services, business innovation, new markets, training, qualified human resources and improving management capacity;
(8) to attract new members and to extend its scope.

Scope of activity
Art. 3. (1) For the attainment of the defined objectives in Art. 2 of the Statute, the association will carry out the following activities:
(1) the establishment and resourcing of the administrative body of the cluster;
(2) providing consultation and educational services to members, its employees and staff as well as to external customers;
(3) organizing seminars, trainings, conferences, information events, trips, exchange of best practices and increase qualifications of managers and staff members;
(4) organizing and conducting events for presenting the cluster, the development of its business and attracting new members;
(5) conducting research and analysis, strategy development and business planning;
(6) promoting the name of the cluster and its members;
(7) participation in regional, national and international fairs and exhibitions;
(8) integration of independent institutions and companies that share common development opportunities, combine resources and initiate joint actions;
(9) Other activities that support the sustainability of the cluster.
(2) Pursuant to Art. 2 of the Law for Non-profit associations, AKIG describes itself as an organization to operate a private benefit, namely in favor of the founders and members.

Financing
Art. 4. (1) For carrying out its activities and achieve its goals, AKIG
will raise funds from
(1) membership fee;
(2) providing educational and consultancy services to members and external organizations;
(3) donations;
(4) submission to donor programs for the realization of projects of social value;
(5) Other sources not prohibited by law;

(2) Association will conduct its economic activities through:
(1) maintenance and management of the necessary equipment;
(2) organizing and conducting trainings;
(3) organizing and conducting specific tourist and culinary tours, excursions, trips, group visits, advertising campaigns, marketing promotions, exhibitions and other promotional activities;
(4) creating and implementing innovative tourist and culinary products and services;
(5) conducting research, analysis, market surveys, and those for consumer demand, wants and needs, the state of competition and opportunities for quality improvement;
(6) other activities not prohibited by law, and the income from this activity will be used to achieve aims determined in the Statute.

II. Reformation
Art. 5. (1) Association may be converted into another type of legal non-profit entity, to join, unite, separate and split.
(2) The transformation is based on a decision of the General Assembly, passed by a majority - more than half of all members.

III. Membership legal relations
Art. 6. (1) The founders of the Association "Culinary Arts and Hospitality" (AKIG) listed in the final provisions of the Statute are its members by right.
(2) Member of the association can be any Bulgarian and foreign legal and capable individual, having regard to the objectives that AKIG sets and activities included in its scope of activities.

Admission of new members
Art. 7. (1) Membership in the Association "Culinary Arts and Hospitality" (AKIG) is voluntarily.
(2) Admission of new members shall be by decision of the General Assembly by open ballot and a simple majority on a proposal from the Management Board on the basis of written application lodged by the applicant.

Termination of membership relationship
Art. 8. (1) Any member may unilaterally terminate the relationship with the association
upon prior written notification to the Management Board as a 2-month notice.
(2) Any member may be expelled from the association by decision of the General Assembly in gross violation of the provisions of the Statute and decisions of the supreme and governing body, and other internal documents with binding effects.
(3) Before voting, the General Assembly must hear the person whose exclusion is requested.
Art. 9. (1) All members of the association have equal rights and obligations. Each member of the association has one vote.
(2) The right out loud is exercised personally or by a duly authorized representative.
(3) Legal persons - members of the association participate in voting through their legal representatives or expressly authorized person.
Art. 10. Members of the Association have the following rights:
1. to actively participate in the activities of the association;
2. to vote and to be elected to its management bodies;
3. upon request to receive information about the activities of the association and the state of its accounts;
4. to benefit from the association's property and the results of its operations;
5. to use the services of the association as a cluster for culinary and family hospitality.
Art. 11. Members of the Association shall be obliged:
1. to respect the provisions of this Statute, decisions of the General Assembly and the Board and all internal documents with binding.
2. to contribute to achieving the objectives, set out in Art. 2 of the Statute;
3. to protect the reputation of the association;
4. to pay property fees specified in this Statute.

IV. Bodies of the Association
Art. 12. Bodies of the Association are the General Assembly and the Management Board.

General Assembly
Art. 13. (1) The General Assembly is the supreme body in which with the right aloud participate all members of the association.
(2) The General Assembly shall be convened by invitation within a month before it took place, which includes the date, time and venue of the meeting and its agenda.
(3) The General Assembly shall meet regularly once a year in the first four months of the year.
(4) The General Assembly may be convened at any time by the Board - Extraordinary General Meeting.

Quorum
Art. 14. (1) General Assembly is legal and can make valid decisions if at the meeting there are attended by more than half of all members.
(2) In the absence of a quorum, are applied the relevant provisions of the Law for non-profit organizations.

Decision-making
Art. 15. (1) General Assembly shall take decisions by open vote on the following matters:
1. amending and supplementing the Statute;
2. adopting other internal documents;
3. appointment and dismissal of members of the Board;
4. admission and exclusion of members;
5. deciding on the opening and closing of branches;
6. decision to participate in other organizations;
7. decision for transformation or dissolution of the Association;
8. adoption of the budget of the association;
9. decision on the amount of membership dues or property contributions;
10. adoption of the activity report of the Board;
11. annulment of the decisions of other bodies of the Association, which are contrary to the law, the Statute or other internal documents regulating the activities of the association.
(2) The General Assembly shall be convened by the Management Board - on its own initiative or at the request of one third of the members of the association.
(3) The invitation of Art. 13, paragraph. 2 of the Statute shall be deemed to be duly served when on it there are the date of receipt and received signature - the person who is a member of the General Assembly or his authorized representative or the authorized participants the legal entity, a member of the General Assembly
(4) Decisions of the General Assembly shall take effect immediately, unless its action is delayed or if by the law they take effect after its publication.

Management Board
Art. 16. (1) Governing body of the Association is the Board.
(2) The Management Board of the Association shall consist of a Chairman and two members elected by the General Assembly for a period of 60 months.
(3) Board members unanimously emit a Chairman. The Chairman shall represent the company individually to third parties. The Chairman may perform all acts and enter into all transactions that are associated with the activities of the association, to represent it and to authorize other persons to perform certain actions. The Chairman shall not alienate or encumber property of the Association, unless it's duly decided by the Board.
(4) Members and Chairman of the Board may be reelected without limitation.

Quorum
Art. 17. (1) Management Board shall meet once in every 12 months.
(2) The meeting is legal, if there are more than half of its members.

Decision-making
Art. 18. (1) The Management Board is authorized to:
1. represent the association and determine the representative power of the individual members;
2. ensure the implementation of the decisions of the General Assembly;
3. dispose of the property of the association in compliance with the Statute;
4. prepare and submit to the General Assembly a draft budget;
5. prepare and submit to the General Assembly a report of the activities of the association;
6. determine the order and organize the activities of the association;
7. determine the address of the association;
8. take decisions on all matters which by law or the Statute do not belong to any other authority;
9. propose an annual amount of membership fees;
10. fulfill the obligations stipulated in the Statute.
11. consider the possibilities of applying for grant programs, make decisions and carry out the necessary steps for this;
(2) The Management Board shall take decisions by a simple majority - more than half of the present.
(3) Decision under Art. 25, paragraph 3 of the Statute and the decisions referred to paragraph 1, item 3 and 6 are taken by an absolute majority.
(4) The Management Board may pass resolutions without holding a meeting if the record of the decision is signed without remarks and objections from all the members of the Board.
Art. 19. (1) Meetings of the Board shall be convened and chaired by the Chairman.
(2) Outside the case under paragraph 1, the Board may be convened at the request of any member thereof.
Art. 20. Chairman of the Board shall have the following powers:
1. convenes meetings of the Board;
2. manages the overall activities and represents the Association to third parties;
3. coordinates ongoing activities and enforces the decisions of the association;
4. prepares an annual balance sheet and annual report of the association and submits it for approval by the Board.

V. Property
Art. 21. (1) Association "Culinary Arts and Hospitality" (AKIG) is an independent legal entity and as such it has its own property different than the property of its members.
(2) For the obligations of the association, the members respond to the amount of the property contributions provided in the Statute.
(3) Members of the association are not personally liable for the fulfillment of its obligations taken;
(4) The amount of the membership fee is determined each year based on a proposal by the Board and adopted by the General Assembly;
(5) Property rights of the of the founders are arranged by Law for Non-Profit Organizations.
Art. 22. (1) Association can receive funds from sponsorship and donations from individuals and legal entities;
(2) Members of the association can give funds in the form of a loan or real estate and movable property for rent.
Art. 23. All results (supplies, equipment, vehicles, and other strategic documents) arising from the implementation of a project financed by a donor programs, remain the property of the Association "Culinary Arts and Hospitality", and each of the founders of the association has entitled to use free of charge and for an unlimited period of time.

VI. Dissolution and Liquidation
Art. 24. Association is not limited by time or other condition for termination.
Art. 25. (1) Association may be terminated in the following cases:
- failing to achieve the objectives determined by the Statute;
- by decision of the General Assembly - by mutual consent of all members.
(2) Based on the termination decision, Management Board shall decide to declare the association in liquidation.
(3) By its decision the Management Board shall determine the conduct of the liquidation, its duration, the method of distribution of the remaining property after satisfaction of creditors and appointment of liquidators.
Art. 26. Regarding the procedure for carrying out the liquidation and the liquidator's powers, are applied the provisions of the Commercial Code.
Art. 27. (1) Having completed the distribution of property, the liquidator must
request cancellation of the registration of the association from the register of non-profit organizations.
(2) Liquidation shall enter into force on the date of entry of its judgment in the court register.

VII. Final provisions
Art. 28. (1) Under the provisions of the Accounting Law, the association shall prepare accounting information in accordance with the principles of openness, reliability and timeliness. Accounting and activities of the association are subject to independent audit under the Accounting Law.
Art. 29. This Statute may be amended and supplemented in the manner provided therein, or under the Law for Non-profit organizations.
Art. 30. For these purposes and needs of specific project proposals and its implementation, members of the Association "Culinary Arts and Hospitality" may conclude between themselves agreements under which to allocate specific rights and obligations, responsibilities and actions. Agreements are considered valid if they do not contradict the general laws and legislation.
Art. 31. Any written statement on behalf of the legal person shall contain an indication of the following data: name of the association, headquarters, address, details of its registration and the BULSTAT.
Art. 32. Regarding open questions by the Statute, are applied the provisions of the Bulgarian legislation.