Practices Committee

100% Independent

Main duties:

1

Opinion on the naming of the Consultant when the Technical Committee might appoint it.

2

Evaluating senior managers’ performance.

3

Bringing recommendations on the reports that the Technical Committee might have to request to the Consultant and Trustee.

4

Bringing recommendations to the Technical Committee for the removal of the external audit.

5

Bringing opinions on distributions that exceed 95% of the financial period.

6

Recommending on transactions with any related party.

7

A majority of favorable votes from Independent Members is required on any transaction with a related party or any transaction representing more than 5% of the Trust’s Estate.

8

Presenting market assessments and recommendations to the TC, as appropriate.

9

Requesting and obtaining independent experts opinions on relevant matters.

Conflict Of Interest Mitigation Mechanisms

Related-Party Transactions

mecanismo de  resolucion de conflictos de interes

1

A related-party transaction is presented to the Practices Committee.

2

100% independent Practices Committee, analyzes the related-party acquisition.

3

A mandatory fairness opinion and independent appraisal are required before the Practices Committee issues an opinion and recommends the transaction.

4

The Practices Committee, based on its analysis, issues an opinion and a recommendation to the Technical Committee about the related-party acquisition.

5

For the acquisition to be completed:

  • Approval by the majority of the Technical Committee and
  • The favorable vote by the majority of Independent Members of the Technical Committee are needed.

If either of these requirements are not met, the acquisition is discarded.

Commitments and Related-Party Agreement



1

Whenever the controlling families sell a Real Estate asset, FUNO has the first right to buy it.

2

Whenever the controlling families wish to acquire an asset, it must be first offered to FUNO.

3

There is a commitment from the controlling families to transfer all their Real Estate 1 for lease to FUNO.

1 Excludes residential and non-leased real estate.