9. Condominium Assessments

9.1. Responsibility for Assessments; Assessments Run with the Land. Each Owner, by acquiring title to a Private Unit or Sub-Condominium Unit, is deemed to covenant and agree to pay and must pay to Administrators all Base Assessments, Benefited Assessments, Extraordinary Assessments, and Penalty Assessments, in accordance with the terms of the Assessment, together with interest thereon, late charges, attorneys' fees, court costs, and any other costs of collection. Each Assessment, together with interest and other costs, is the personal obligation of the Owners to whom the Assessment relates. If more than one Person owns a Private Unit or Sub- Condominium Unit, all such Owners are jointly and severally liable without limits for all Assessments and charges provided for in these Master Rules. The obligation to pay Assessments runs with the land and is automatically transferred to any subsequent Owners of a Private Unit.

9.2. Purpose of Condominium Assessments. Assessments must be used as follows: for all Master Common Expenses; to promote the recreation, health, culture, safety, and welfare of the Owners; to enhance the quality of life within the Master Condominium; and to preserve the value of the Master Condominium.

9.3. Base Assessments. Each Owner of a Sub-Condominium Unit or Private Unit not subject to a Sub-Condominium regime must pay Base Assessments as provided in this section. Base Assessments are for the purpose of paying and satisfying the Master Common Expenses. Base Assessments must be based on the Undivided Interest Percentage of the Sub-Condominium or Private Unit not subject to a Sub-Condominium regime, apportioned between the Owners of the units within such Sub-Condominium or Private Unit not subject to a Sub-Condominium regime in accordance with the respective Undivided Interest Percentage of such units; provided, however, that the Master Condominium Assembly may allocate Base Assessments between Sub- Condominiums and Private Units not subject to a Sub-Condominium regime in a proportion different from their Undivided Interest Percentage after taking into consideration whether units within such Sub-Condominiums or Private Units not subject to a Sub-Condominium regime are constructed or not, the Land Use Classifications of units within such Sub-Condominiums or Private Units not subject to a Sub-Condominium regime, or other criteria that the Master Condominium Assembly deems equitable.

(a) Annual Calculation of Common Expenses; Budget. Not less than 45 calendar days nor more than 60 calendar days prior to any annual Ordinary Master Condominium Assembly Administrators must make a proposed budget for the upcoming calendar year available for review by the Master Representatives. The budget must detail and estimate the Common Expenses to be incurred for that calendar year, and the budget must be submitted for review at the annual Ordinary Master Condominium Assembly. All amounts must be calculated in U.S. Dollars or Mexican pesos as determined by the annual Ordinary Master Condominium Assembly. Common Expenses include, but are not limited to:

(i) The cost of administering, managing, repairing, maintaining, and operating the Master Common Areas;
(ii) The costs incurred by Administrators to provide common services to the Master Condominium;
(iii) The cost of Administrators fees and the fees, salaries, benefits and considerations payable to the Persons hired by or contracted with by Administrators;
(iv) The cost of the acquisition, repair and replacement of tools, machinery and equipment required for the maintenance and operation of the Master Common Areas and the provision of Master Common Services;
(v) The cost of insurance policies contracted for by Administrators;
(vi) The cost of taxes, duties and fees levied against the Master Common Areas; and
(vii) The cost to fund a reserve account equal to at least 5% (five percent) of the Master Common Expenses for the relevant year.

(b) Failure to Approve Budget. If the Ordinary Master Condominium Assembly fails to approve a budget for the Master Condominium for a given calendar year at the annual Ordinary Master Condominium Assembly, then Administrators must calculate the Base Assessments for the relevant calendar year based on the Master Common Expenses of the previous calendar year plus 15 (fifteen) percent. If the Master Condominium Assembly subsequently approves a budget for the relevant calendar year, the Base Assessments for that calendar year must be adjusted accordingly.

9.4. Benefited Assessments. The Ordinary Master Condominium Assembly may levy Benefited Assessments against particular Private Units or Sub-Condominium Units to recover the costs, including overhead and administrative expenses, of providing benefits, items, or services primarily to such units. Benefited Assessments must be billed and collected as determined by the Ordinary Master Condominium Assembly.

9.5. Extraordinary Assessments.

(a) Short-falls. If Administrators determine at any time that Base Assessments or Benefited Assessments for the current year are or will become inadequate to meet all Master Common Expenses or if as a result of the failure of Owners to meet their payment obligations Administrators have insufficient funds to fully meet payment obligations, then such Administrators must immediately take the following action, subject to the prior approval of the Sub-Condominium Surveillance Committee: (i) determine the approximate amount of the inadequacy; (ii) issue an estimate of amounts required to cover the short-fall; (iii) determine the amount of the Extraordinary Assessments to be paid by each Owner; (iv) determine the date(s) on which payments are due; and (v) submit the proposed Extraordinary Assessments and payment schedule for approval at an Ordinary Master Condominium Assembly. If an Extraordinary Assessment is caused by the breach of one or more Owners of their payment obligations,

Administrators must credit such amounts against future Assessments payable by the complying Owners, plus interest, if any, at a rate to be determined from time to time by the Master Condominium Assembly, within 30 (thirty) calendar days following the date on which the corresponding amounts are recovered from the Owner or Owners causing the short-fall.

(b) Capital Improvements. An Extraordinary Assessment may be approved by an Ordinary Master Condominium Assembly against all of the Private Units or Sub-Condominium Units for capital improvements for the purpose of defraying, in whole or in part, the cost of any action or undertaking in connection with any construction or replacement of capital improvements upon the Master Common Areas, including the necessary fixtures and personal property relating to the improvements not included in the Master Common Expenses budget. When an extraordinary Assessment is approved, Administrators must, subject to the prior approval of the Sub- Condominium Surveillance Committee: (i) determine the approximate cost of the capital improvements, (ii) determine the amount of the Extraordinary Assessments to be paid by each Owner, (iii) determine the date(s) on which payments are due, and (iv) submit the proposed Extraordinary Assessments and payment schedule for approval at an Ordinary Master Condominium Assembly.

(c) Emergencies. An Extraordinary Assessment may be approved by the Urgent Master Condominium Assembly against part or all of the Private Units to overcome an emergency affecting the safety, security, or operation of the Master Condominium or any part thereof. Administrators must, subject to the approval of the Sub-Condominium Surveillance Committee: (i) determine the approximate amount required to address the emergency, (ii) determine the amount of the Extraordinary Assessment to be paid by each Owner and the date or dates when due, and (iii) submit the proposed Extraordinary Assessments and payment schedule for approval at the Urgent Master Condominium Assembly.

9.6. Penalty Assessments. If, as determined by Administrators, the Surveillance Committee, or the Design Review Committee, (a) any portion of any Private Unit or Sub-Condominium Unit presents a public or private nuisance or an unreasonable condition, or detracts substantially from the appearance or quality of the surrounding Private Units, Sub-Condominium Units, or other areas of the Master Condominium; (b) any portion of a Private Unit or Sub-Condominium Unit is being used in a manner that violates these Master Rules; or (c) any Owner or Occupant of a Private Unit, Sub-Condominium Unit, or portion thereof, or their Guests, agents, employees, or suppliers, fails to perform any of their obligations under these Master Rules or applicable Design Guidelines or causes any damages to the Master Common Areas, assumed common areas, infrastructure or equipment, machinery or tools used to provide common services or to any part thereof, then the Ordinary Master Condominium Assembly may by resolution make a finding to that effect. Notice of the agenda item and the nature of the violation, condition, nuisance, or failure to comply must be delivered to the affected Owners as required by these Master Rules, and the Owner will have the right to attend and speak at the assembly. Administrators must give notice of the findings of the Ordinary Master Assembly, as specified in the resolution, to the Owner of the Private Unit or Sub-Condominium Unit, specifying that unless corrective action is taken within a deadline reasonably established by such Administrators, Administrators may cause corrective action to be taken at the Owner's expense. If at the expiration of the deadline fixed by such Administrators the requisite corrective action has not been taken, Administrators are authorized and empowered to cause remedial action to be taken. The cost of any remedial action

will be a Penalty Assessment against the Private Unit. Notwithstanding the foregoing, if Administrators believe that immediate action is or may be necessary to avoid a serious risk of physical injury to individuals or damage to property, Administrators are entitled, after giving notice to affected Owners, to take whatever action it believes to be minimally necessary to guard against or prevent injury or damage, without being required to wait for the period otherwise established by such Administrators as a deadline for action by the Owner. In the event a Private Unit is owned by more than one Person, all of the Owners are jointly liable for the payment and indemnity obligations herein established. Notwithstanding the foregoing, in the case of violation by specific Owners of a Private Unit, Administrators may choose to levy the Penalty Assessment directly to the relevant Owner or Owners. In addition to any Penalty Assessment levied pursuant to the terms of this section as set forth above, Administrators may levy a Penalty Assessment against an Owner or Owners if the violation or condition is found to affect the safety, security, appearance, operation or use of the Master Condominium or any part thereof, even if the violation does not result in damage to the Master Common Areas or infrastructure. In such cases, the amount of the Penalty Assessment must be determined by the Master Assembly, and may range from a minimum of US$100.00 (one hundred dollars legal currency of the United States of America) to a maximum of US$10,000.00 (ten thousand dollars legal currency of the United States of America) depending on the severity of the violation.

9.7. Time, Place, and Manner of Payment; Late Charges and Interest. Except as expressly provided elsewhere in these Master Rules, it is the responsibility of Administrators to collect the Assessments on a monthly basis, or on any other basis determined by the Ordinary Master Condominium Assembly. Assessments are due and payable by Owners in such manner as Administrators may determine. If not paid when due each unpaid Assessment will bear interest until paid at the Default Rate of Interest established by the Master Condominium Assembly. In the event the Ordinary Master Condominium Assembly has failed to establish a Default Rate of Interest, interest shall be charged at the rate of five per cent (5%) per annum. Administrators may, in their discretion, waive such interest, or any portion thereof, without such waiver being deemed a waiver of any other interest or penalties that may be due at the time or in the future. A delinquent Owner is liable for attorneys' fees and other related costs incurred by Administrators as a result of such delinquency, if any suit, action or arbitration proceeding is brought to collect the amount of the Assessment.

9.8. Reserves. Any reserves that are collected as part of the Base Assessments must be accounted for separately by Administrators. All reserves collected for a specific purpose must be held only for the purpose for which they were collected, unless a subsequent resolution of the Ordinary Master Condominium Assembly provides otherwise. Administrators may invest the amounts of the reserves in investment instruments payable on demand with the highest rate of return available in the market consistent with preservation of the capital.

9.9. Administrators Rules Regarding Billing and Collection Procedures. Administrators have the right to adopt procedures for making, billing and collecting the Assessments and other charges provided for in the Master Rules, provided that the procedures are not inconsistent with the provisions of the Master Rules, the Master Condominium Declarations, the Administrators Rules, any other applicable rule, regulation, standard, resolution, or guideline issued by the Master Condominium Assembly, or the Law. The failure of Administrators to send a bill to an Owner does not relieve an Owner of liability for any Assessment or charge under these Master Rules. Successor Owners must be given credit for prepayments made by prior Owners.

9.10. Executive Civil Action (Via Ejecutiva Civil). The past due Assessment statement prepared by Administrators and signed by the chair of the Master Surveillance Committee, together with the corresponding past-due payment records, the page of the Owners and Visitors Registry Book in which the conventional address provided by the Owner who is in default is shown, certified by Administrators and the chair of the Surveillance Committee, and a certified copy of the Master Condominium Assembly minutes whereby the Assessments were approved, constitute an executive instrument (título ejecutivo) that may be immediately foreclosed in an executive civil action (via ejecutiva civil) by Administrators, pursuant to applicable provisions of the Law. Administrators may initiate this action upon failure by an Owner to pay three or more monthly Assessments.