CODE OF ETHICS

OF THE MEMBERS OF ASSOCIATION "CULINARY ARTS AND HOSPITALITY"

DOBRICH
2012

In pursuance of Article 15, paragraph 1, section 2 of the Statute of the Association «Culinary Arts and Hospitality» / AKIG / the General Assembly of AKIG has adopted the following Code of Ethics for members of the Association "Culinary Arts and Hospitality", the norms which according to Articles 11, section 1 of the Statute of AKIG are mandatory for all members of the association.

1. AKIG accepts this Code of Ethics that through the underlying principles and rules to regulate the behavior and relationships of association members in the performance of their duties as among themselves and with non-legal individuals, with various government and other institutions and establishments.
2. This Code sets out rules of conduct for the organizations in Association "Culinary Arts and Hospitality" that follow generally accepted human, moral and business standards of conduct, and aims to increase public confidence in their professionalism and ethics, as well as the prestige of Cluster "Culinary Arts and Hospitality".
3. Adoption and application of this Code enhances the prestige of AKIG and guarantees the quality of products and services offered by its members.
4. The Code is an integral part of the Statute of AKIG and its compliance is mandatory norm for all members of the association.
5. With the adoption of the Code each former member of the association declares that accepts and will comply with this Code.
6. This Code is based on the following principles and values:
1. professional competence and responsibility;
2. honesty, integrity, ethics, loyalty and good faith;
3. tolerance;
4. mutual assistance;
5. initiative, and continued upward development of AKIG;
6. collegiality;
7. legality;
8. political neutrality;
9. fairness and impartiality.
7. Non-observance of these principles and requirements undercuts the credibility of our members, customers, suppliers, employees and others. and damages and serious threats to both our competitiveness and prestige, and our upward development.
8. Each member of AKIG pledges:
- To strictly observe the laws of the Republic of Bulgaria. Violation of laws and regulations for personal gain or a competitive advantage is considered a gross violation of this Code and the conditions for membership in the association.
- To be loyal in its relationships with the colleagues from the association.
- To be loyal and honest to customers to inform them correctly. Not to submit misleading information.
To observe the principle of non-violation interest of its colleagues when they are not in violation of the law.
- To work continuously to promote the good image of the association and not to prejudice its interests.
- To be acquainted with and to comply with its obligations under the law, the Statute of Association and the Code.
- To strictly comply with the above principles and norms of behavior and to constantly work on its strengthening.
- To respect and protect the reputation of the members of the association as a whole and not to allow into its business activities activities, actions in terms of Chapter VII of the LPC that contradict the rules of fair trade practice and to prejudice the interests of other members of the association.
- To take no action that would harm the trust in the other members of the association as well as the services offered by allegations, distribution of data or presentation of facts in a distorted form.
- To treat strictly confidential to all information received from the other members during the business relationships, not to make it available to third parties and not to use it to the detriment of other party.
- Not to submit its own product in a way that could mislead and influence customer behavior, and also not to use the data on the superiority of its services by comparing or assigning nonexistent flaws of services offered by other members of the association.
- To contribute to the implementation and to benefit from common business initiatives and proposals realized by the association.
- Not to allow in the work with clients actions that do not meet the requirements of good faith and lead to a significant imbalance between the rights and obligations of the consumer and the trader in the sense of Chapter V of the LCPTR and of Article 34 of the LPC.
9. Members of the administrative or management body of AKIG accept moral obligation in any form not to use its position in the association to receive any advantage or benefit from the company / organization that led.
10. Members must devote sufficient time to the events of the association, to provide the information required by the governing bodies of AKIG.
11. To ensure the transparency of its activities, organizations in AKIG clearly define and provide public access to:
• Mission and objectives of AKIG;
• Means of achieving the objectives (priorities, strategies, activities, programs);
• Governance structure of AKIG (Statute, composition of the supreme and the governing body);
• The process of decision-making (rules, regulation for holding competitions);
12. Members of AKIG desiderate for regularly informing the public about the results of their actions and emerging issues, to seek solidarity and support, explaining its meaning for the public good.
13. Members of AKIG strictly observe all legal requirements, the requirements of its donors and relevant funding programs;
14. Members of AKIG report publicly their activity, indicating the sources and amounts funding received and donations (if donors wish to remain anonymous it is indicated only the amount of funding), ways of spending - activities, programs, projects and results achieved;
15. In providing funding and fundraising, organizations in AKIG ensure that:
- All fund-raising activities and the receipt of funds as well as its utilization are in accordance with the mission and goals of the organizations;
- When applying to funding programs with project, organizations represent themselves, their activities and the activities planned realistically and expressly mention its partners and donors and do not mislead about its past achievements and results planned;
- Received donations and funding are used strictly for the purpose for which are awarded;
- Campaigns for the fundraising must be actual rather than fictitious, providing correct information for organizations that carry them out, and for the use of funds raised.
- The organizations publicly announce the revenue raised from the campaign and the cost of its implementation.
- Not to participate in schemes of money laundering, corrupt practices, scam and terrorist activities and to inform authorities of the proposals received for participation in such acts.
16. Members of AKIG strive in every action to avoid situations of conflict of interest.
17. In the provision and use of information related to their activities, members are required to:
- To interpret objectivity and credibly the data and the results of its various studies, analyzes, etc.;
- To represent, distribute and use associated with its business, information in a misleading way;
- Accurately cite sources of information;
- To respect the intellectual property rights;
- Provide public access to the products of its activity after accounting for the projects to donors.
18. In the relationship with political parties, members of AKIG:
- Can participate in the political process - as far as part of the legitimate obligations of the organizations are to influence policy in the public interest. However organizations never put partisan purposes and do not operate in favor of political parties and party interests;
- Do not protect party interests;
- Do not operate in favor of political parties and party interests;
- Do not finance and raise funds for the benefit of political parties;
- Do not carry out lobbying for narrow partisan purposes.
19. In the relationship with business, members of AKIG:
- are guided by the public interest and do not protect and do not operate in the protection of individual corporate business interests;
- do not build relationships with individual trader who appears in contradiction with the Law on Protection of Competition;
- do not lobby for certain corporate and individual business interests.
20. In interactions with civil authorities, members of AKIG adhere to the following principles:
- Upon receipt and expenditure of public funds organizations observe the highest standards of accountability and publicly announce that spend taxpayers' money of the Republic of Bulgaria or another country;
- Organizations involved in the planning and management of public funds are not involved in its absorption.
- When organizations use public property for implementation of its activity, they do not change its purpose.
- Relations with public authorities are based on dialogue, tolerance, mutual respect and responsibility.
- In interaction with public authorities, organizations do not compromise the mission, principles and values for the sake of short term gaining sympathy and dividends.
- The tone of communication of the organizations with public authorities should be honest and not be deliberately confrontational, but those advocated by organizations should be defended strongly on the basis of convincing legal standards and best practices.
21. Members of AKIG share its resources - experts, analytics, etc. in terms of joint activities and campaigns;
22. Commitments regarding corruption:
- members of AKIG do not achieve any of its goals for providing services or to influence the public policies by offering bribes to officials;
- when applying for projects at national or European institutions, members of AKIG compete solely on the basis of their competence and are not available to anyone in any form of means of providing precedence about their project.
23. All members of AKIG, regular and associates, shall undertake most strictly to observe the Law on Protection of Competition for which, except as sanctions provided by law, bear the responsibility before the association.
24. As ineligible activities within the meaning of this Code of Ethics shall be construed and:
- any action or behavior in doing business that are contrary to good practice and harm the interests of competitors in their mutual relations or in their relations with customers;
- the manipulative and misleading price offering of goods and services discrepant to the market;
- the supply of goods and services with lower quality in order to reduce the price-formation and manipulative customer acquisition.
- any advertisement or other public appearance, creating a false or exaggerated notion of the quality, the conditions and the nature of the activity.
25. AKIG has the right make available on request from third party information relating to the nature of the activities of its members, after obtaining the written consent of the interested party. Information should be provided so as to reflect the objective reality and in any form not give advantages to one company over another.
26. For this purpose AKIG creates and maintains a public register of information for its members. The information is collected and updated on the basis of the information given by each company member, information certified by its leader, who is responsible for the accuracy of the data.
27. Incorrect presentation of information or submission of false and misleading information as to its own activities and the activities of other member firms of AKIG is inconsistent with ethical standards and is considered as a violation who is liable to approve. This applies both the submission of information to maintain a public register of AKIG and for providing it to third legal or natural persons.
28. Each member of AKIG may provide in the offices of the association information that affects the interests of members of AKIG. Such information could be linked to technological developments, government regulations and any other information concerning the common interests.
29. Members of AKIG are not required and it can not be required the information from them that is internal and can be a trade secret of the company.
30. Each member of AKIG must notify by the association the other companies, in the event that learn information that harms the interests of the association as a whole or the company / organization, its members.
31. At failure to observe the standards of conduct in this code organizations and employees have a responsibility to other organizations from AKIG and the governing body of the association, under the current law. Unlike the rules under the relevant legislation, for such ethical standards are not necessary the "hard evidence". It is sufficient the firm belief (reasonable assumption) that there are serious doubts that they are violated.
32. Control over compliance with the rules of fair competition and professional ethics is assigned to the Ethics Committee consisting of three members, whose members are elected by the General Assembly for a term of four years. Chairman of the Ethics Committee shall be a Chairman of the Board. Committee members have equal rights in the discussion and decision-making. Each member of the Commission shall be entitled to one vote.
33. Ethics Committee consider the information received and complaints relating to compliance with this Code. If a committee member is a party to the appeal, the same does not participate in its consideration.
34. Ethics Committee examine and analyze each case of violation of this Code of Ethics and report to the Management Board of the Association.
35. Any interested company / organization may file a complaint with the Ethics Commission. The Commission may consider an issue on its own initiative and by received information from a member of the association, client, partner.
36. When establishing any breach of this Code by the Ethics Committee, it shall draw up a proposal to the General Assembly of AKIG to impose sanctions on violators, including expulsion from the association.
37. Types of penalties - depending on the severity of the offense proved, the Ethics Commission may propose to the General Assembly the following sanctions:
- warning;
- final warning (before imposing heavier penalties);
- Withdrawal the right out loud at the General Meeting of the Association for a specified period or permanently;
- Exclusion from the Association for a specified period of time or permanently.
38. Proposed by the Ethics Commission sanctions for proven violation of the Code of Ethics are voted by a simple majority of the General Assembly at its next session.
39. When proven breach and where applicable, the General Assembly may decide to inform the Bulgarian and foreign institutions involved in the violation of the rights of consumers and the protection of fair competition, and to notify the competent state authorities.

40. Decisions of the Ethics Commission to impose sanctions may be appealed in writing to the General Assembly of AKIG. Decisions of the General Assembly of AKIG in these cases are final.
41. With its vote to adopt the Code, every member of the association declares that it accepts and will comply with this Code of Ethics.
42. When first entering the Association "Culinary Arts and Hospitality" representatives of the management and / or administrative body of the cluster should to familiarize new-organization with the provisions of this Code.
43. The update of the code is performed on proposals made to the Ethics Commission, which in turn shall examine them and submit for voting of the General Assembly. Changes are deemed to be accepted if they are usually adopted by a majority vote of the General Assembly.

This Code of Conduct was adopted by the General Assembly of Association "Culinary Arts and Hospitality" on 17.10.2012 and is obligatory for all founders, current and future members of AKIG.

REGULATIONS

CONCERNING THE ORGANISATION OF PROCEDURE AND MAINTENANCE OF MEMBERS OF THE ASSOCIATION "CULINARY ARTS AND HOSPITALITY"

DOBRICH
2012

Chapter One.
GENERAL PRINCIPLES
Art. 1. These Regulations determine the internal rules and procedures for organization of activities and services to members of the Association "Culinary Arts and Hospitality", hereinafter referred to as the Association. Association "Culinary Arts and Hospitality" creates its internal organization and carries out its activity on the basis of the Statute and the provisions of these Regulations.
Art. 2. (1) Association "Culinary Arts and Hospitality" is Association for performance of activity for private benefit under the Law for Non-Profit Organizations, registered by Decision № 49/30.08.2011 entered in the Register of non-profit organizations under № 14 Volume 20/137 on u . e № 14/2011 Dobrich District Court. Headquarters and registered office of the Association is Dobrich, "Bulgaria" № 3 Str.
(2) Association "Culinary Arts and Hospitality" is an independent, voluntary, professional association that unites and represents the interests of companies and organizations in the field of gastronomy, family hospitality and tourism.
(3) The Association has an open nature and in it as members all individuals and legal entities could take part in accordance with the procedure laid down in these Regulations.
(4) Funds for the activities of the Association shall be raised from membership dues, donations, programs, grants, subsidies and project financing.

Chapter Two.
PROCEDURE FOR ADMISSION OF MEMBERS IN ASSOCIATION "CULINARY ARTS AND HOSPITALITY"
Art.3. The founders of Association "Culinary Arts and Hospitality" are members by right.
Art.4. (1) Association will expand its scope by attracting new members.
(2) Member of the Association can be any Bulgarian or foreign legal entity or active physical person which is relevant to the objectives that Association sets and activities included in its scope.
(3) Membership in the Association is voluntary.
(4) Members due annual membership fee of the Association determined to the provisions of the Statute and these Regulations.
(5) Members must meet the following requirements:
а) For legal entities - they must be duly registered under the current legislation the Republic of Bulgaria.
b) To be in contact with culinary, family hospitality or tourism.
c) To have a good reputation among the business community, the general public and the state institutions.
Art.5. Admission of new members takes place after written submission of applications to the applicant as a member in which he declares that he accepts and will comply with the Statute and the Regulations of the Association, as well as all internal documents of mandatory status.
Art.6. (1) Filed application shall be considered by the General Assembly, which decides whether the applicant can qualify as a member of the Association.
(2) After receiving the application within 15 days, it is setting a date for a general meeting.
(3) The date should be set so that it makes it possible to follow the procedure for convening the General Meeting in accordance with the Statute of Association and these Regulations.
Art.7. (1) At a session the General Assembly shall decide whether the applicant can qualify as a member of the Association by open ballot and a simple majority.
(2) If the answer to the application for membership is affirmative, the candidate becomes a full member of the Association from the date of the decision of the General Assembly and shall submit a membership fee in accordance with these Regulations.
(3) In case of refusal to be admitted as a member, the candidate will be disqualified from applying again in the next six months.
Art.8. Rights of Members of the Association:
(1) All members of the association have equal rights and obligations. Each member of the association has right of one vote in the General Assembly.
(2) Right out loud is acquired personally or by a duly authorized representative.
(3) Legal entities - members of the association participate in voting through their legal representatives or duly authorized person.
(4) Members of the Association have the right to participate actively in the activities of the association;
(5) Members can elect and be elected in the management bodies;
(6) Members are entitled upon request to receive information about the activities of the association and the state of its accountability;
(7) Members can enjoy the property of the association and the results of its operations;
(8) Members are entitled to use the services of the association in its capacity of cluster for culinary and family hospitality.
(9) Members are entitled to use visual and graphic signs (logo, slogan and message) belonging to the Association, to place them on their printed and electronic information, advertising, promotional, etc. materials, websites, business cards, documents, etc. When using the identifying marks of the Association in their websites members should provide a clickable link to the website of the Association. When using the identifying marks of the Association in printed materials members should place at least the logo, slogan and message of the Association, to write the name of the Association and its contacts.
Art.9. Procedure for terminating the membership relationship.
(1) Any member may unilaterally terminate the relationship with the association after prior written notice to the Board in the form of two months' notice.
(2) In case that any member of the Association violates the provisions of the Statute and decisions of the supreme governing body or other internal documents with binding, he may be expelled from the association.
(3) If such a violation is ascertained the General Assembly is convened, that after hearing the retorted side, vote on whether to terminate the membership.
(4) In the event that the General Assembly voted to expel a member from the Association the decision shall enter into force on the date of the General Meeting.
(5) In the event of termination of membership in the Association, the paid dues for the current year is not refundable.

Chapter Three.
BODIES OF THE ASSOCIATION "CULINARY ARTS AND HOSPITALITY"
Art.10.(1) Bodies of the Association are the General Assembly and the Management Board.
(2) Non-profit association "Culinary Arts and Hospitality" is managed and represented to third parties by the Chairman of the Board, elected and appointed by the General Assembly under the provisions Law for Non-Profit Organizations and the Statute of Association.
Art.11. (1) The General Assembly is the supreme body in which with the right aloud participating all members of the association.
(2) The general meeting shall be convened by invitation within a month before it takes place which include the date, time and venue of the meeting and its agenda.
(3) The invitation is considered to be duly given when on it there are the date of receipt and received signature - the person who is a member of the General Assembly or its authorized representative or the authorized representative of a legal person, a member of the Company General Assembly.
(4) The general meeting is called regularly once per year in the first four months of the year.
(5) Extraordinary General Meeting may be convened at any time by the initiative of the Board or at the request of one third of the members of the association.
(6) General Assembly is legal and can make valid decisions if the meeting is attended by more than half of all members.
(7) In the absence of a quorum, the relevant provisions of the Law for Non-Profit Organizations are applied.
Art.12. General Assembly shall take decisions by open vote on the following matters:
1. amending and supplementing the Statute;
2. adopting other internal documents;
3. electing and dismissing the members of the Board;
4. admission and exclusion of members;
5. deciding on the opening and closing of branches;
6. deciding on participating in other organizations;
7. deciding on transformation or dissolution of the Association;
8. adoption of the budget of the Association;
9. decision making on the amount of membership dues or property contributions;
10. Adoption the activity report of the Management Board;
11. annulment of the decisions of other bodies of the Association, which are contrary to the law, Statute or other internal documents regulating the activities of the association.
Art.13. The end of the discussion relating to particular paragraphs on the agenda shall be announced by the Chairman on a vote by the General Assembly.
Art.14.(1) Adoption of resolutions by the General Meeting shall be by vote "for", "against" or "abstain".
(2) The voting is open and is done by a show of hands.
Art.15.(1) Decisions of the General Assembly shall be adopted in accordance with the provisions of its majority in the Statute.
(2) Results of the voting are announced by the Chairman.
Art.16. For each session of the General Assembly there is a protocol that shall be signed by the President and by the recorder who are responsible for certifying the accuracy of its contents.
Art.17. Decisions of the General Assembly shall take effect immediately, unless their action is delayed or if the law shall take effect after publication.
Art.18. (1) Management Board - the Management Board consists of a Chairman and two members elected by the General Assembly for a period of 60 months.
(2) The Chairman shall represent the company individually to third parties. He is entitled to perform all acts and enter into all transactions relating to the operation 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 duly decided by the Board.
(3) Members and Chairman of the Board may be reelected without limitation.
(4) The Management Board shall meet at least once in 12 months.
(5) The meeting is legal if there are more than half of its members.
(6) The Management Board shall take decisions by a simple majority - more than half of the attending.
(7) 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.
(8) Board members are required to perform their duties in the interest of the Association.
(9) In order to discharge its duties, the Board members shall have full access to all documents and units of the Association and all employees are required to assist them in carrying out inquiries and inspections.
(10) Board members are jointly liable for the damages caused culpably to the Association.
(11) Each member of the Management Board is obliged to disclose to the Board a presence of a conflict of interest and not to participate in voting on items of the agenda when the decision relating to him, to his spouse, to the relatives of line.
Art.19. The Management Board has the following powers:
(1) To represent the association and determine the representative power of the individual members;
(2) To ensure the implementation of the decisions of the General Assembly;
(3) To dispose of the property of the association in compliance with the Statute;
(4) To prepare and submit a draft budget to the General Assembly;
(5) To prepare and submit an activity report about the company to the General Assembly;
(6) To determine the order and organize the activities of the association;
(7) To determine the address of the association;
(8) To make decisions on all matters which by law or the statutes do not belong to any other authority;
(9) To offer annual amount of the membership fee;
(10) To fulfill the obligations stipulated in the Statute.
(11) To consider the possibilities of applying for grant programs, make decisions and carry out the necessary actions;
(12) To dispose of the property of the Association in compliance with the law, the Statute, these regulations and the decisions of the General Assembly;
(13) To make decisions for adopting a list of services (free or paid services) that provides to its members;
(14) To accept donations and wills made in favor of the Association.
Art.20.(1) Meetings of the Board shall be convened and chaired by the Chairman or in the event that circumstances require important decision-making by the Board, it can be called by any of its members with prior notification of the Agenda.
(2) The Chairman of the Association shall convene a meeting of the Board upon written request of any of its members. If the Chairman fails to convene a meeting of the Board within a week, it can be called by any of the members concerned of the Board. In the absence of the Chairman, the meeting shall be chaired by the Vice Chairman - elected from among the members of the Board.
(3) A meeting of the Board is implemented by written notice received personally by the members at least 3 days before the meeting.
(4) The convocation can be done by e-mail, phone or fax.
(5) The invitation contains items on the agenda, date, time and venue of the meeting..
(6) Governing Board meetings are held generally in the company's headquarters. At the proposal of the Chairman of the Board, they may be called and held and elsewhere.

Art.21. 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. opens and closes bank accounts of the Association and operates with them;
4. coordinates ongoing activities and enforces into implementation the decisions of the association;
5. prepares an annual balance sheet and financial report of the association and submits it for approval by the Board.
6. delegates in writing to the absence, the implementation of these functions to another member of the Board.
Art.22. (1) The General Assembly may recall a board member for gross violations of the Statute, decisions of the General Assembly or the Board and when consistently does not participate in the meetings, does not cooperate and does not work for ideas and objectives of the Association.
(2) Removal of a board member is voted by the General Assembly after exposure to the violations.
Art.23. Board member may participate and vote in decision making without holding a session by establishing a telephone or Internet connection, ensuring the identification and allowing participation in discussions and decision-making.
Art.24. (1) The Management Board has the obligation to organize and direct the activities of the Association in accordance with the Statute and the decisions of the General Assembly.
(2) The Management Board shall prepare the agenda and convene General Meeting under The Statute, these regulations and the law.
(3) The Management Board shall receive requests for inclusion and leaving the members of the Association, shall report to the General Assembly as the order provided by the Statute.
(4) The Management Board shall prepare and submit to the General Assembly a report on the activities of the Association.
(5) Stores and keeps the correspondence of the Association and establishes subsidiary bodies to it.
(6) Decides on all matters that are not within the exclusive competence of the General Assembly.

Chapter Four.
DOCUMENT FLOW
Art.25. The outgoing documents from the document flow of the Association "Culinary Arts and Hospitality" is drawn up in duplicate, a copy remaining in the registry and one that is sent, contain the logo and seal of the Association and the signature of the authority who has prepared the document and the date of preparation.
Art.26. (1) In Association "Culinary Arts and Hospitality" is kept the following mandatory documentation:
1. Incoming and outgoing register for documentation, lists, records and correspondence;
2. The Management Board of the Association shall keep the following mandatory documentation:
2.1. Incoming and outgoing register of records;
2.2. Register of members;
2.3. Register to record the decisions of the Board;
2.4. Register to record the protocols, records and reports of the Board and General Assembly;
2.5. Register of orders, etc. if necessary.
(2) Mandatory documentation is numbered and stamped with the seal of the Association.
(3) The seal of the Association shall be kept by the Chairman of the Board;
Art.27. (1) For each session of the General Assembly or the Board record is kept which shall include:
1. time and place of the meeting;
2. the names of present members and external parties who attend the meeting with the permission of the board (if any);
3. the agenda;
4. the proposals for decisions;
5. the votes and the results thereof, indicating the vote of each member of the Board;
6. the decisions taken.
(2) The protocols shall be made within three (3) working days of the session and signed by all present at the session.
(3) Written materials submitted for discussion, the proxy to represent the members and their possible observations on the items on the agenda are attached to the protocol.
(4) The originals of the protocols with all attachments thereto are stored at the Chairman or a person appointed by the Board.
(5) Copies of the protocols can be provided automatically to its members immediately after the preparation of the protocols.
(6) The ready protocols are listed in the protocol log (book) that is certified annually by the Chairman. Protocols and annexes thereto shall be kept five (5) years from the date of the session.
Art.28. Transcript excerpts of the protocols, containing the decisions of the General Assembly or the Board, may be provided to any interested member of the Association.
Art.29. (1) The documentation of the Association shall be kept by the Chairman or other designated person.
(2) Access to the documentation of the Association have members and persons appointed by the Board or by normative act.
Art.30. (1) The questions posed for resolution by the General Assembly or the Board shall be considered on written information prepared and submitted by the importer within one week before the meeting date.
(2) Of the meetings with the view of the nature of the issues can be allowed to attend and other interested parties (experts, etc.), whose professional competence is related to the issues discussed at the meeting.

Chapter Five.
FINANCING AND PLANNING
Art.31. Activity of the association is funded by:
(1) Membership fees;
(2) Targeted payments;
(3) Donations, grants and subsidies from Bulgarian and foreign natural and legal persons;
(4) Receipt of government funding;
(5) Advertising revenues of the members of the Association;
(6) Funds donated by the founders and members of the Association;
(7) Income from own property and other assets;
(8) Starting fees related to the organization of research, educational and cultural events in conjunction with tasks and objectives under the Statute of the Association;
(9) Providing consultancy and specialized services;
(10) Sponsorship;
(11) Joint venture agreements;
(12) Other sources permitted by law;
Art.32. (1) Contributions of members of the Association shall be reviewed annually by the General Assembly. The amount is as follows:
1. founders pay an annual membership fee of 0.00 lev;
2. new members pay an annual membership fee 0.00 lev;
(2) The membership fee may be amended only by the General Assembly of the Association. By the same decision is automatically amended this Article of these regulations, without requiring changes to be taken by the General Assembly. Of the decision taken shall be notified to the members of the Association, whose representatives were not present at the General Meeting decided on the change in the amount of dues.
(3) The amount of dues shall be paid in cash or bank transfer until the end of the first quarter of the current year.
(4) New members shall pay within one month after its admission to the Association, the remainder of the annual dues from the month in which they are adopted.
Art.33. (1) Association provides services in the following areas:
1. Organized presentation of the services of the members;
2. Identification and promotion of products in the field of culinary and hospitality;
3. Organizing and conducting trainings;
4. Conducting specific tourism and culinary tours;
5. Excursions, trips, group visits;
6. Advertising campaigns;
7. Marketing promotions;
8. Fairs and other promotional activities - conferences, competitions, festivals, etc.;
9. Creating and offering innovative tourism and culinary products and services;
10. Conducting research, analyzes, surveys of market demand, wants and needs, the state of competition and opportunities for quality improvement, etc..
(2) Association members enjoy benefits and discounts on participation in organized events of the cluster, including training courses and seminars, activities for technical assistance, advertising services, preparation of studies and analyzes, etc.
(3) The provided discounts on various activities will be as follows:
1. For the founders of the Association - free of charge;
2. For members of the Association - a discount of 30% - 50% depending on the services provided. The exact amount of the rebate for each service will be announced on the website of the Association;
3. For external natural and legal persons - at market prices.
(4) Amount of the discount may be altered by the General Assembly. By the same decision is automatically amended this Article of these regulations, without requiring changes to be taken by the General Assembly.
(5) Member or founder of the Association can provide additional discount on its services / products to other members of the Association. The amount of discount for specific service / product shall be declared by the supplying member / founder on the website of the Association.
(6) Association provides services for upon written request-application of the founder, member or different physical / legal entity. The request-application should contain the type of service required, its volume and parameters and additional requirements (if applicable). Provision of any service by the Association objectifies in a separate written agreement with a party, in which it is specifying the type, volume and technical parameters of the requested service, the price (including the amount of the agreed discount) and the deadline for its submission.
(7) Information on current services provided by the Association can be found on the website of the Association or upon request at the office of the same.
Art.34.(1) Association will spend its funds in the following areas:
1. Costs of conducting training through seminars and symposiums of the Association, as well as training and retraining courses for specialists in the field of gastronomy, family hospitality and tourism;
2. Cost of carrying out projects in the field of training and education related to the objectives of the Association;
3. Organizing and financing international cultural exchange with Bulgarian and foreign participants at home and abroad;
4. Costs of setting up and maintenance of equipment, designed for carrying out the activities of the Association;
5. Costs for the formation of appropriate media and social climate for the development of culinary, family hotels and tourism;
6. Costs of disseminating the results of the activities of the Association in the media;
7. Costs of implementing the additional economic activity of the Association relating to the main activity.
Art.35.(1) Annual program for the activities of the Association shall be made by the Board and adopted by the General Assembly. It identifies the activities and measures included in the main activity of the association, which it plans to perform during the calendar year.
(2) The annual program provides specific actions that will be taken to each individual event or activity. The Management Board shall establish a plan for carrying out different activities and organizing individual events for the calendar year.
(3) The resources needed to carry out the various activities and events for the calendar year, its type, size, specific purpose, method of disbursement shall be determined by the Board with the annual program for the activities of the association and provide for the annual budget.
(4) With the annual program Management Board of the Association organizes and carries out scheduled separate activities and spends identified in the program and the budget allocations in accordance with the approved type, size and purpose of use of funds.
Art.36.(1) The General Assembly adopts guidelines and programs of activities.
(2) Based on the guidelines adopted by the General Assembly, the Management Board shall prepare an annual plan of activities of the Association and the draft for annual budget to be submitted for adoption by the General Assembly.
(3) In the annual Action Plans specific tasks, deadlines and persons in charge will be identified.
(4) Annual activity plans are linked to the annual budget of the Association.
Art.37. The control over the implementation of the planned tasks is performed by the Board.
Art.38 Association by its governing bodies controls the following basic processes of coordination in the cluster network:
• Exchange of information and communications;
• Achieving a balance of interests and conflict resolution;
• Establishing mutual trust among the network partners;
• Preparation of solutions;
• Establishment and strengthening of the common interest.

The present Regulations are adopted by the General Assembly on 17/10/2012 and came into force from the date of its adoption. These Regulations may be amended or supplemented by the General Assembly of the Association.

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.