The Assembly of European Wine Regions

Arev, juin 2005

RULES OF PROCEDURE

THE ASSEMBLY OF EUROPEAN WINE REGIONS

(AEWR)

The present Rules of Procedure have been drawn up in accordance with Article 21 of theArticles of Association of10.06.2005.

The purpose is to specify the workings of the Association within the framework of its Articles.

MEMBERSHIP / PROCEDURE

FEES / CATEGORIES / CRITERIA

STRIKING OFF / EXCLUSION

FUNCTIONAL ORGANISATION

COMPOSITION OF THEINTERNATIONAL BUREAU

ATTRIBUTIONS / DELEGATIONS

PROFESSIONAL CHAMBER

INSTITUTES / TECHNICAL BODIES

Article 1- Membership/ Procedure

To become a member of the AEWR, by the terms of Article 5 of the Articles of Association, the applicant must send an application to the President of the Association, specifying the membership status being applied for. The applicant provides a succinct presentation of the Region and its winegrowing activities and undertakes, should its application be accepted, to comply unreservedly with the Articles and Rules of Procedure of the Association.

After examining the acceptability of the application and the various parameters used to determine the category of membership fees, the International Bureau presents the membership proposal to the following International Council meeting to confirm acceptance of the application.

During the interim period, the future member / applicant is considered as being an Observer Member exempted from administrative fees.

Should the membership applicationbe turned down, the applicant is informed of the reasons for which its application has been rejected by the International Bureau or by the International Council.

Article 2– Fees / Categories / Criteria

Fees

In accordance with Article 6 of the Articles of Association, the amount of the contributions is proposed by the International Council at the Plenary Session, on the basis of the categories of members defined hereunder

The fees are due in advance at the beginning of each financial year.

Should the proposed amount of the fees be rejected by the Plenary Session, the matter is referred back to the International Council.

In themeantime, the proposed fees remain due in advance until the definitive amount has been set.

Criteria

Regional GDP

+ 130% of M 1

115% - 130%2

100% - 115%3M = Mean GDP of all the Regions

85% - 100%4

– 85% of M5

Economic weight of winegrowing in the region’s agriculture

+ 40%1

30% - 40%2

20% - 30%3

10% - 20%4

– 10%5

Size and status of the production zone:

Very well known

Exported worldwide1

International model

3 +/–2

2 +/–3

1 +/–4

Little known

Sold locally5

Non identified

The mean score of the three criteria determines the category of the Region.

In the absence of data allowing these criteria to be applied, a comparison will be made with the other regions that are already members.

A list of all the Member Regions of the AEWRand of the category to which each of them belongs will be published at the beginning of the financial year.

The data underlying the criteria is updated every five years. This update gives rise to a review of the allocation of the categories.

As of the entry into forceof the present Rules of Procedure, all new members will be subject to the following criteria to establish their category.

Article 3–Striking Off / Exclusion

By the terms of Articles 7.3 and 10.11 of the Articles of Association, the status of Member may be lost by a striking off pronounced by a decision of the International Councilfor failure to pay the membership fees for the previous financial year. Two reminders must be sent beforehand in writing to the Member. However,should grounds for the delay be given and accepted jointly by the Treasurer and the President, the start of the striking off procedure may be postponed by a maximum of one year.

The decision is announced at the following Plenary Session.

By the terms of Articles 7.4 and 10.11 of the Articles of Association, the status of Member may be lost by an exclusion decided by the Plenary Session with a two-thirds majority, at the proposal of theInternational Council, if the said Council has ascertained that a Member has

-committed an act causing a prejudice to the Association,

-infringed the terms of the Articles of Association or the Rules of Procedure.

It issues a notification in writing to the Member in question demanding that a written explanation be provided within a period of 30 days.

Further to these explanations, the International Council shall decide on the definitive action, reprimand, suspension or exclusion, and shall inform the Member in question of its decision in writing within a period of 30 days.

The Member in questionmay only lodge an appeal with the President in writing and with the support oftwo members at least of the International Council.

The Presidency will take the final decision and will serve final notice of the said decision to the Member in question in writing.

Article 4–Organisation Chart

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Arev, juin 2005

Article 5-Composition of theInternational Bureau – Aosta 10 June 2005

A E W R /

CHAMBER OF REGIONS

/ PROFESSIONAL CHAMBER

C O U N T R Y

/ MEMBER
REGIONS /

A E W R B U R E A U

HQ/A* SP** CEPV BUREAU / CEPV MANAGEMENT COMMITTEE
EU
R
E
G
I
O
N
S / GERMANY / 4 / 1 / 1
AUSTRIA / 3 / 1 / 1 / 1
SPAIN / 12 / 2 / 1 / 1
FRANCE / 11 / 2 / 2 / 1 / 1
GREECE / 2 / 1 / 1
HUNGARY / 4 / 1 / 1 / 1
ITALY / 13 / 1 / 2 / 1 / 1
PORTUGAL / 4 / 1 / 1 / 1 / 1
ROMANIA / 5 / 1 / 1
BULGARIA
EU
C
O
U
N
T
R
I
E
S / LUXEMBOURG / 1 / 1 / 1 / 1
SLOVENIA / 1 / 1
CZECH REP. / 1 / 1 / 1
CYPRUS
MALTA
SLOVAKIA
FUTURE
EU / CROATIA
MACEDONIA
MONTENEGRO
SERBIA
NON
EU / SWITZERLAND / 1 / 1 / 1 / 1
UKRAINE / 1 / 1
MOLDOVA
64 / 2 / 2 / 14 / 9 / 14
P
R
E
S
I
D
E
N
C
Y / AEWRPRESIDENT / 1
CEPV PRESIDENT / 1
V-P - TREASURER / 1
20 / 10

* HQ / ADMIN OFFICE** HÔSTS OF THE PLENARY SESSION

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Number of Members of the International Bureau

In order to take account of the diversity of the Member Regions while complying with the proportion of two-thirds political representatives to one-third professional representatives required by the Articles, the number of members of the International Bureau is set at 30: aside from the 3 members of the Presidency, it includes 18 political representatives of the regions and the 9 professional representatives making up the Bureau of the CEPV.

Members by Rights of theInternational Bureau

TheInternational Bureau of the AEWR comprises the following 4 members by rights at all times:

TheAlsace Region, as host of the Registered Office of the AEWR – therefore justifying its status governed by the local law of Alsace-Moselle – is a member by rights of the International Bureau.

TheAquitaine Region, as host of the Administrative Office of the AEWR with its Director and staff,is a member by rights of the International Bureau.

The President of the Region in which the Plenary Session is heldis the Joint President of the said Session. From that Plenary Session onwards, he or she becomes a member by rights of the International Bureau for two years, giving up his or her place in that body just before the holding of the third Plenary Session following his or her accession.

Other Members of the International Bureau

As well as the members by rights, the International Bureau is composed of 14 Regions according to the distribution by country or group of countries set out in the table above.

It is the representatives of the Regions of a given country or of a given group of countries who appoint the Regions which sit on the International Bureau. This appointment is made by consensus or by an election organised in even years within the framework of the International Council (one representative per Region) for a term of office of two years.

It is the professional representatives who are members of the Management Committee of the CEPV who appoint the 9 members of the CEPV Bureau who will sit in the International Bureau.

Article 6– Attributions / Delegations

Attributions

The President presents the Association Policy Report andSituation Report.

The First Vice-President presents the Professionals’ Report.

The Vice-President-Treasurer presents the Financial Report, the Budget adopted by the International Council for the financial year underway and the Budget Forecast for the following financial year for adoption, successively, by the International Council and the Plenary Session.

The Secretary General is proposed to the Bureau by the President on his or her election. The duration of their term of office is directly linked to the term of office of the President, even in cases where the President is elected for an outstanding period of a term of office.

The Deputy Secretary Generalhas a renewable term of office for a duration of two years, commencing at the mid-term Plenary Session, in order to ensure continuity between the terms of office of successive heads of the Association, among other things.

To ensure the correct working of the Secretariat General which he or she manages, the Secretary General is assisted by the Deputy Secretary General and the Administrative Director.

Administration

The Secretary General is responsible for, or delegates under his or her responsibility and supervision, the tasks and procedures required for the correct working of the Association. To this effect, he or she may make all indispensable legal provisions and implement any necessary sanctions. In case of a conflict, he or she shall refer to the arbitration of the Presidency.

The Secretary General recruits all the administrative staff. Should the post of Administrative Office Director be vacant, the selection is made from among several applicants after interviews conducted in the presence of at least four members of the International Bureau, including the Vice Presidents.

The Administrative Director and the staff are subject to the rules in force for the staff ofChambers of Commerce and Industry in the country in which they work.

Finances

In accordance with and subject to the limits of the Articles of Association, the President and the Vice-President-Treasurer and, by delegation, the Secretary General are entitled to sign in the name of the Association, thereby binding it contractually and financially. The Director of the Administrative Office is entitled to sign in the name of the Association in administrative and banking matters to provide for the autonomous day-to-day operation and the recurring expenditure written into the Budget Forecast for the financial year in question. However, no single commitment made by the Administrative Director may exceed the limit of €10,000 without the counter-signature of the Vice-President-Treasurer.

For all expenditure not provided for in the budget of the financial year in question, the Administrative Director is required to request the authorisation of the Vice-President-Treasurer and the Secretary General.

The use of a credit card (or similar) is duly authorised by the Vice-President-Treasurer. This is also subject to limits on the powers delegated. Each actual expense must be backed up as quickly as possible by an invoice or a duly signed and completed expense account.

As these provisions are not restrictive, any doubts must be referred to the Presidency.

The accounts of the AEWR are entrusted to a Chartered Accountant to check and assess the justification of expenditure.

Article 7–Professional Chamber (CEPV)

As the body representing European wine-sector professionals, the European Professional Wine Council (CEPV) debates on and puts forward plans, motions or solutions on all subjects related to the life of the vine and wine sector.

The CEPV is convened by its President prior to every Plenary Session of the AEWR. Its Management Committee meets before each meeting of the International Council and its Bureau meets before each meeting of the International Bureau. The purpose of these meetings is to study the subjects included on the agenda and the draft resolutions, and to prepare proposals to be made to the bodies which will be making the decisions.

The members of the CEPV will hold at least one annual meetingon the occasion of the Plenary Session of the AEWR.

The Secretary General, the Deputy Secretary General and the Administrative Director of the AEWR attend meetings of the CEPV and its bodies.

Members of the CEPV

All members of the Professional Chamber are nominated by the President of each Region from among the representatives deemed locally to be the most representative of sector professionals. The number of representatives is set according to the diversity of the professional structures in the region. The term of office is directly linked to that of the regional executive. The Administrative Secretariat of the AEWR must be informed immediately in writing of any change of professional delegate.

Whatever the number of its professional representatives, each region has only one vote – both within the CEPV and at the Plenary Session of the AREV.

Management Committee of the CEPV

The Management Committee of the CEPV is composed of one member of the Professional Chamber per country, which is to sayof as many Members as countries, plus the President of the CEPV. It is the professional representatives of all the Regions of a given country who appoint their representative on the Management Committee of the CEPV. The appointment is made by common agreement or by an electionorganised between all the professionals from the country in question.

Bureau of the CEPV

The members of the Management Committee of the CEPV appoint by common agreement or by election (identical rules) the members of the Bureau of the CEPV (1/3 of the International Bureau of the AEWR).

President of the CEPV

The President of the CEPV is elected for a renewable two-year term of office by an absolute majority of the members of the Management Committee who are present.

The Management Committee of the CEPV meets for that purpose in odd years on the occasion ofthe Plenary Session of the AEWR. His deputy is also elected in accordance with the same rules.

Article 8- Institutes and Technical Bodies

To be recognised by the AEWR, any Institute or Technical Body must have its Articles of Association and Rules of Procedureapproved by theInternational Bureau of the AEWR.

For a budget allocation to be provided for in the AEWR Budget, an official written request to the President must be received by the Administrative Secretariat before 30thJune of the financial year preceding the year for which the request is being made. It must be clearly justified in the Forecast Budget of the applicant.

The final response will only be known after the approval of the Forecast Budget for the financial year, which is to say after the Plenary Session in question.

Here is the list of these Institutes (to be updated regularly)

♦European Winegrowing Regions Wine and Health Institute (IEVSRV)

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