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The Company has deposited EUR 25,943 thousand in guarantees required for its commercial activity (EUR 34,907 thousands in 2009).

The breakdown of the guarantees deposited with the tax authorities is as follows:

1) A 3,543 thousand euro guarantee deposited with the Tax and Customs Control Department due to the appeal against the tax settlement agreement which said department notifed to the Company on 24 July 2009 and which confrms the proposal given in the assessment from the tax inspection dated 1 September 2008. The tax inspection included verifcation of income tax for 2004, 2005, 2006 and 2007. Despite executing the Central Tax Court’s ruling of 3 December, which reduced the tax assessment by EUR 345 thousand, the guarantee at year-end 2010 still covered the inicial amount of EUR 3,543 thousand, which was subsequently increased by EUR 177 thousand to cover late-payment interest.

2) A second guarantee of EUR 2,091 thousandwas depositedwith the Tax and Customs Control Department due to the appeal against the tax settlement agreement which the Department notifed to the Company on 26 June 2009 and which confrmed the proposal given in the assessment from the tax inspection dated 1 September 2008. This tax inspection included the verifcation of the gaming tax in respect of bets and promotional draws, as well as rafes and tombolas from September 2004 up to and including May 2008.

To guarantee the late-payment interest, the amount of the guarantee was increased by EUR 104 thousand.

17. Compensation System Indexed to Share Values

A la fecha de formulación de estas cuentas los Planes de Opciones sobre acciones que han cumplido las condiciones de otorgamiento son los siguientes:

2006 share-based payments plan

2007 share-based payments plan

2008 share-based payments plan

2009 share-based payments plan

2010 share-based payments plan

No. Of options 01/01/10 1,480,150 1,042,650 572,325 319,163

Additions - - - - 1,297,650 Disposals - - - - - No. Of options 31/12/10 1,480,150 1,042,650 572,325 319,163 1,297,650 Granted to employees of the company 610,250 545,750 292,375 162,688 671,750 Granted to employees of the Group 869,900 496,900 279,950 156,475 625,900 Strike price 18.57€ 20.82€ 8.21€ 6.29€ 8.08€ Assignment date 26/07/06 25/07/07 30/07/08 29/07/09 28/07/10 Strike term: from 26/07/09 25/07/10 30/07/11 29/07/12 28/07/13 Strike term: to 25/07/11 24/07/12 29/07/13 28/07/14 27/07/15

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Financial Statements, Management and Corporate Governance Report. 2010