Fondazione Principato di San Bernardino Foundation of San Bernardino Principality

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1 Foundation of San Bernardino Principality I, the undersigned Giorgio Azzellino (mother 's birth name: Di Nola Gianna, with residence in Via Stesicoro 178, Rome 00125, Italy; passport number: D103319; date and place of birth: Italy, Rome, 1966 September 11; tax number: ZZLGRG66P11H501N) as Founder (hereinafter : Founder), based on the Civil Code 1959 Act IV (hereinafter CC), 74/A, 74/F, the present Articles of Association IV derived of long-term public interest purposes, for indefinite time, I create a separate legal entity Foundation (hereinafter referred to as the Foundation ) as follows: (In order to comply with 6.Pk / 2014/3 of The Budapest Court thenumber of amendments calling for completion is picked thick, italics, and underlined at the same time in the text. ) I. General Provisions 1. Name of the Foundation: Foundation of San Bernardino Principality 2. Location of the Foundation: Ürmösst. 50, Erd, Postal Code: The duration of the Foundation: The Foundation was created for an indefinite period. 4. To ensure the possibility of joining the Foundation: The Foundation is open; the Founder of the Foundation permits joining new members. 5. The Foundation's initial capital: 200,000 HUF that is two hundred thousand forints consisting solely of cash. 6. The Foundation is responsible for the debts up to its own assets. The Founder - in addition to the payment of capital contributions is not responsible for the debts with his own assets. 7. The Foundation initial capital may increase with contributions of new members, as well as the results of the Foundation's operation and management, which can consist of, inter alia: state, municipal or other subsidies; donations; revenues derived from specified percentage of personal income tax; returns from the investment of funds (e.g. interest); income on properties, revenues generated from the exploitation of other ways; and other income. 8. Contribution to the Foundation can also be made in foreign currencies. These contributions to the Foundation's forint or foreign currency could also be used to achieve the goals.

2 II. The objectives and scope of activities of the Foundation 1. The objectives of the Foundation a) As part of the Zubair Islands in the Red Sea in Yemen coast of 50 kilometers in December 2011, it emerged a new island created a new state, San Bernardino Principality as facilitating humanitarian and charitable activities carried on by the new subject of international law, promoting diplomacy b) protection and dissemination of human rights culture in particular in the Member States of the European Union and in North Africa as well as in other parts of the world to support people in need c) in the case of North Africa and the Mediterranean region reaching natural disasters (earthquakes, epidemics, drought, etc.) and help the needy wars with food, drinking water, clothing, rebuilding schools and through financial support towards programs for the preservation of health.; furthermore d) to obtain diplomatic rank, which makes it easier to be able to carry out humanitarian actions. 2. Activities of the foundation a) cultural activities, b) educational activities, c) health activities, d) social activities, e) rights protection activities, f) international activities. 3. The Foundation's business-entrepreneurial activities to accomplish public goals, without endangering it. 4. The results achieved during the fourth financial management of the Foundation will not be divided, but that translates the activities set out in the present Articles of Association. 5. The Foundation does not pursue direct political activities, its organization is nonpartisan and does not provide any financial support.

3 III. Foundation s Management 1. The Foundation's Board of Trustees controls, which consist of a Chairman and two members. a) The Board of Trustees Chairman Giovanni Rolando - Nationality: Italian - His mother's birth name: Silvia Peron - Residing in Italy, IT Ravenna, Via di Roma 42nd - Passport number: G b) The Board of Trustees members: Claudio PETRONICI - Nationality: Italian - His mother's birth name: Adriana Visani - Residing in San Marino, SM Domagnano, Via Francesco Flora 12th - Passport number: AA Lishchuk Tetyana - Nationality: Ukrainian - His mother's birth name: Valentina Spisova - Residing in Italy, IT Cesena, Via Bruno Baldoni 57th - Number of passport: EX The members of the Board - including the Chairman of the person as well - appointed by the Founder; their mandate is open-ended. 3. If the Board of Trustees of the Foundation's activities jeopardize the purpose of the Foundation Board of Trustees may revoke the appointment of the new Board of Trustees simultaneous designation. 4. The members of the Board carry out their activities without consideration, but reimbursement of expenses incurred in the operation of the Foundation are eligible. 5. Members of the Board - a separate sheet attached to this Deed of Foundation declarations - declare that the mandate adopted. 6. The members of the Board of Trustees acknowledge that the Trustees decision may not take part in a person who is, or who have relatives nearby (Civil Code b)), her partner on the basis of decision relieved of its obligation, or liability, or any other benefit, or otherwise interested in the legal transaction.

4 7. Can not have two (2) years following the seventh of an NGO termination of the Foundation's executive officer, the person who held a non-governmental organization - the termination of the previous two (2) years for at least one (1) year - leading position, which is the public debt under the Act on Taxation not paid. 8. The functions of the Board of Trustees: a) decide on the Foundation's programs; b) decide that in order to achieve its objective, the Foundation when engaged in what activity or activities which support; c) establishing the principles of the Foundation's management, the amounts assigned to the assets used for this purpose each year; d) develop and support the application system; e) establish concrete forms and extent of subsidies; f) once a year inform the Functioning of the Founder of the Foundation's financial position; g) evaluation report by the annual activity report (once a year, based on the proposal of the President); h) establish its own control and operation of the Secretariat accompanying order of business The Board of Trustees shall have a quorum if at least two members are present The Board determines the rules for the operation itself, reports on the activities of the Founder once a year The Board of Trustees shall meet in public, private meeting should only be allowed when discussing issues concerning privacy rights. Holding a closed meeting of any board member may propose to the Board of Trustees has been ordered by a simple majority The Board is required to hold at least four times a year meetings, meetings of the IGC Chairman of the Board provides The Board of Trustees to convene at least eight (8) days shall be initiated in writing before the proposed date. With the invitation of the meeting must be scheduled items on the agenda is the Founder and inform the members of the Board of Trustees. The Board is required to hold a meeting even if the convening of two Board members jointly initiated.

5 8.6. The Board's decisions open majority vote. In the event of unanimity establishment and termination of employment, as well as issues relating to the rules of procedure. In the presence of two Board members, unanimity is required to reach a decision The Board will inform the decisions of those affected by post or fax, or via . The decisions of the Board of Trustees of the Foundation on its website Chairman of the Board of Trustees is required to keep records of decisions of the Board of Trustees. The register shall be designed to establish from the decision of the Board of Trustees: a) content; b) date; c) the scope; d) the results of the vote by roll call The Foundation for the line of duty, and operate their own employees, representatives, employing six or apply, as well as commercial companies may contract in order to carry out its tasks. The tasks in this regard are the responsibility of the Board of Trustees The Board's decisions on the implementation of their delegated this task to ensure professionals The Foundation's operation and the method and the accounts of the Foundation's Board of Trustees decision to service the same way, by displaying the headquarters of the Foundation publishes Chairman of the Board of Trustees is required - by appointment - to any documents related to the operation of the Foundation to provide insight. The exception are the documents that relate to personality rights. 9. Responsibilities of the President of the Board of Trustees : a) preparation of the Board of Trustees meeting, convening and conducting ; b) to increase the Foundation 's visibility, promotion activities between the media and other Hungarian and foreign foundations and NGOs ; c) follow -up of the use of the Foundation's assets, control.

6 10. The Board membership is terminated : a) the death of the member ; b ) where the member resigns ; c) termination of the Foundation ; d ) recall by the Founder when the Board member 's activities jeopardize the purpose of the Foundation ; e) of the Civil Code. 74 / C. Refusal set out in creation of Upon termination of Board of Trustees of the founding members - the Board of Trustees heard the proposal - is entitled to make up for the loss of members. To this end, the Founder shall be invited to take action toward filling a vacant Board membership. IV. Representation of the Foundation 1 to represent any member of the Board of Trustees of the Foundation is entitled to their own. 2. The representative of the Foundation notes as meaning that the Foundation under the name specified by hand or machine, pre-printed or printed to its own name. The political right of representation without restriction. 3. The Foundation's bank account to dispose of any member of the Board of Trustees is entitled to their own. If he is unable fourth President of the Board of Trustees of the president may entrust any member of the Board of Trustees to which specific functions. V. The Foundation's operations, management 1. In order to achieve the objectives of the Foundation, especially on a secondary basis to carry out economic and business activities. Management, use dedicated the second of the Foundation's assets in accordance with scheme developed by the Board and adopted rules of procedure laid down principles. 3. The Foundation provides funds (cash and non-cash), grants, services. Financial support, services and resources necessary for its operation costs are provided by the Foundation primarily interest and other positive effects, as well as revenues from the enterprise, and the amount of money offered donations, and their legacy is the Foundation's assets.

7 4. Any unused payments and other benefits from the funds offered in addition to start-up capital - if the donor specifically provided for - the share capital increase. VI. Support the Foundation 1. Support for the payment to be effected by the Foundation, the Foundation's account, allowance in kind or otherwise. The Foundation is also the assets necessary for achieving its objectives by collecting donations. 2. CLXXV 2011 on the right of association, a non-profit jogállásról, as well as the operation and support of civil society organizations. Law According to ai, or on behalf of the Foundation's fundraising may not result in donors or other persons harassment, violation of inherent rights and human dignity. Fundraising on behalf or for the benefit of the Foundation can only be done on the basis of the Foundation's written authorization. Donations book value, in the absence of the usual market price must be recorded. 3. The Foundation contributions made to or for the benefit of services, public donations enjoy tax benefits under the applicable tax laws. VII. How use the Foundation's assets 1. The Foundation's total assets may be used for the Foundation's purpose, method of use following the implementation of the Foundation's objectives and activities exposition. 2. Use of the Foundation's assets invitations to tender, payment of scholarships, grants and disbursed through the provision of benefits in kind is happening. The property also costs incurred in the implementation of activities under the Foundation's goal is based on the decision of the Board of Trustees reversible. A third of calls for proposals and evaluating the order and the deadline for the payment of ad hoc measures and the provision of benefits in kind shall decide on the Board of Trustees. The use of the assets of the Foundation Board of Trustees present at the meeting, board members decide by simple majority. 4. The Foundation's assets are striving to gain support, which is in line with the objectives of the Foundation. For us it is important to emphasis accordingly: a) appropriate support for the objectives of the International Foundation for charitable actions and conduct of the goals of suitable projects; b) the Foundation to fulfill the goals of the publications used to support it.

8 VIII. Termination of the Foundation 1. The court of the Foundation - following the procedure prescribed by law - is deleted from the register, if specified in the Articles of Association a) the objective was achieved; b) time; occurred c) condition. 2. The Foundation will also be deleted from the register accordingly if the court terminates reunification foundation or other ordered by the Foundation. 3. According to the prosecutor's application, the court terminates the Foundation when it became impossible to achieve the objective, or even if a change in the legislation should be denied entry. Based on the founder's request, the court terminates the Foundation to implement the Foundation's goals become impossible. 4. The court may terminate the Foundation, if the activities of control and endanger the founding purpose of the Foundation - despite calling the court - does not withdraw the designation and management as the other body (body) does not appoint. 5. The Foundation's assets, the court terminated the support of the National Cooperation Fund shall be paid. The present Articles of Association on matters not regulated by the Civil Code., As well as other relevant provisions of law shall prevail. The Foundation notes that the Foundation for Budapest and surroundings Tribunal registration is created. Budapest, 2014 July 8

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