Internal Rules - Section VI

Fees, opening times and use of the golf course, rules of the game and special rules

ARTICLE 19

FEES

POLICY:

The aim of the company Los Arqueros Golf and Country Club is to enable its members to obtain maximum enjoyment from the golf course at a reasonable price. It is not the Club’s objective to obtain the greatest possible profits.

ANNUAL FEES:

Every year the Company’s General Meeting will decide the maintenance fees to be charged the members in their various categories.
The fees for several family members are designed so that the spouse (or regular partner) and the children under 21 pay approximately 50% and 25% respectively of the fees corresponding to the Shareholder member.

 For the financial year 2006 – 2007 the following fees have been established:
Total fee Membership (A)
Restricted fee Membership (B)

Total fee Restricted
fee
Member A 1.000 € Member B 500 €
Spouse 750 € Spouse 400 €
Children under 16 500 € Children under16 300 €
Children up to 21 500 € Children up to 21 300 €

Greenfee
Total Restricted
fee fee
Member A Green fee - Member B Green fee 25 €
Member A Spouse - Member B Spouse 25 €
Member A Children under 16 - Member B Children under 16 12,50 €
Member A Children up to 21 - Member B Children up to 21 25 €

Commmercial Green Fee 70 €
Tour Operators and Travel Agencies Green Fees: 50 €
Invitation Green Fee: 49 €
Tenants And Lodgers: 35 €

Services Members Tenants and/or External Users
lodgers
Tennis/Paddle 1 € 5 € 10 €
Buggies 20 € 24 € 24 €
Trolley - 2 € 3 €
Spa-Fitness Centre - 18 € 18 €
Lockers 5 € /month Not Available Not Available

TRANSFER CHARGE:

There will be a one-off administrative charge on every sale, transfer or surrender.
The amount of the transfer charge will be decided each year by the General Meeting.
The transfer charge will be applied every time a designated members changes his or her designation.

SURRENDER OF RIGHTS:

In the event that a member decides that neither he or she nor his or her family will be able to play in a particular period, he or she may surrender his or her rights to the Company, and thereby be exempted from maintenance charges. The member must present a written application to the Governing Board by no later than 30 October each year, to obtain exemption the following year.

ARTICLE 20

OPENING TIMES

COURSE:

The golf course will be open from dawn to dusk. The Club management reserves the right to close the course due to bad weather or for maintenance.

CADDIE-MASTER:

The opening times of the Caddie-Master, and therefore of the golf club room and for reserved starting times will be from 8 am until one hour after sunset.

OFFICES:

The club’s office is open between 8 am and 4 pm Monday to Friday.

BAR AND RESTAURANT:

The Company has an industrial leasing contract with “Rusolof, S.L.” for the bar and restaurant located on the Club premises, which runs until 1 January, 2009. The Rusolof, S.L. company is run by Mr. Miguel Rus Villa and Mr. Lars Olof Erikson.

ARTICLE 21

USE OF THE COURSE

FEDERATION LICENSE:

To play on the course, participants must hold the corresponding Federation license which will insure against any damage the player may cause during play.

In addition to the Federation licence, those players who do not have a handicap of at least one point lower than the maximum handicaps established by the Federation (currently 28 for gentlemen and 36 for ladies) will require explicit written authorisation from the Club’s instructor in order to use the course.

For junior categories, the age limits established by the Spanish Golf Federation will apply. Players aged between 11 and 16 may use the course accompanied by an adult if they have a handicap of not less than 24, and within the regulations and with the restrictions established by the Competitions Committee in periods and at times when there are the greatest number of players on the course.

RESERVATIONS:

Pending availability, members may reserve starting times no more than 24 hours in advance.

NON-APPEARANCE:

If a member has made a reservation and does not appear or arrives more than 15 minutes late, this will be considered a minor offence. Repeated non-appearance, more than 3 times consecutively or 10 alternate times in any 12-month period, will be considered a serious offence.

CONTROL OF STARTING TIMES:

In order to maintain control over starting times and to establish correct organisation in the use of the Course, no player may begin the course except at those holes indicated for this purpose. The Competitions Committee may authorise exceptions to this rule.

It is forbidden to enter the course from the adjoining properties to begin a round.

No owner of property adjoining the course or of any property whatsoever has the personal or actual right of access or direct entry to any of the rounds on the course.

It is forbidden to skip one or several holes on a round. The Competitions Committee or the Manager may authorise players to skip some of the holes on the round, in order to finish at the holes next to the clubhouse while daylight still holds.

RULES OF THE GAME:

The official rules of the game of golf (Royal and Ancient Club of St. Andrews, in the Spanish Golf Federation Version) and local regulations will be observed.

These last rules will be printed in leaflets available from the Caddie-Master.

ETIQUETTE:

In addition to the above regulations, the usual rules of etiquette governing the game of golf will be observed, such as, for example, not practising in the middle of the rounds, yielding the right of way to faster games, replacing divots, repairing ball-marks and bunkers, etc., etc.

CLOTHING:

Players must be suitably attired as is customary for the sport. It is strictly forbidden to play with a bare torso and/or in a swimsuit.
Anyone not complying with this regulation my be ejected from the course by the Club’s security guards, if this fault is not corrected after a preliminary warning. The employee in charge of starts may refuse to allow anyone who appears in violation of this regulation to start.

BAGS:

Each player must have his or her own bag for golf clubs. It is strictly forbidden for two or more players playing on the course to share the same golf bag.

OTHER ACTIVITIES:

Only golf may be played on the golf course. Any other activity, such as taking walks or walking animals, even on a lead, is expressly forbidden, as is jogging, or sitting on any part of the course and particularly on the greens, sunbathing, etc.,etc.. It is forbidden to practice shots, including approach shots or to practice on the greens for entertainment.

DRIVING RANGE:

The driving range and the recreational putting greens may be used solely and exclusively for recreational practice, according to normal golf usage, and no damage must be caused to the putting greens by, for example, inappropriate footwear or by using clubs which cause divots.

The regulations governing clothing and courtesy will be the same as those included for the course itself in art. 10.

The driving range balls belonging to the club or to the instructor may not be used anywhere outside the driving range, including on the putting green.

ELECTRIC GOLF CARTS:

The use of electric golf carts, including those rented from the club will be the exclusive responsibility of the user. Anyone using the electric carts in an inappropriate or excessive manner will be held liable by the club for disciplinary and financial penalties.

The management may prohibit the use of electric carts either due to the state of the course, the cart, or for any other reasons which make this advisable. The electric carts may be used by a maximum of two players, and carry a total of no more than two bags.

These carts may only be rented by persons over 16, and there must be at least one person over this age in each vehicle who is responsible for the correct use of the vehicle. It is forbidden to race the carts or to drive dangerously, either by using them on unsuitable terrain such as slopes with a steep gradient or in areas with abundant vegetation which pose a risk of overturning, or by
driving too near lakes.

MANUAL GOLF CARTS:

Players using manual golf carts must obtain the corresponding ticket by paying the established fees for their use. At the end of play, they must be returned to the storage depot whence they were obtained. The player will be held liable for disciplinary and financial penalties in the event of any damage caused by misuse.

ARTICLE 22

OTHER CLUB FACILITIES

CHANGING ROOMS:

The changing rooms, changing room washrooms and other complementary clubhouse facilities may only be used by the members and by those who are entitled to play golf at the club.

The changing room lockers may be used by the members who request them after payment of a sum to be agreed by the Governing Board. It is forbidden to leave shoes and clothing used in the game (shirts, socks, etc.) Which may cause disagreeable smells. Only washing items and cosmetics, rainwear, caps, visors etc. May be left in the lockers.

PARKING PLACES:

The parking places marked as such will be reserved exclusively for members.

ARTICLE 23

HOTEL MEMBERS AND MEMBERS OWNING A PROPERTY IN LOS ARQUEROS OR LOS AGUILARES

HOTEL MEMBERS:

Shareholders running Hotel business shall be able to send daily as many lodgers as shares they possess. To exercise that right Total Maintenance Fee (A Total Fee) must have been paid for every share. Lodgers will receive 50 % discount of the commercial green fee but will not be able to use members’ restricted areas (Members Lounge, parking, etc)

PROPERTY OWNERS

Tenants of Members owning a property in Los Arqueros or Los Aguilares shall be considered, for these purposes, as Lodgers of Hotel Members.