Common use of Paragraph Five Clause in Contracts

Paragraph Five. In order to serve public interest, under a specific authorizing law, the CONCESSION- GRANTING AUTHORITY may resume the service during the concession period, after payment of the compensation of the installments of investments attached to reversible assets, not yet amortized or depreciated, which have been made by the TRANSMISSION UTILITY so as to secure the continuity and modernity of the service granted. Paragraph Six – Upon verification of any of the default cases provided for in Law No. 8.987 of 1995, and in this CONTRACT, the CONCESSION-GRANTING AUTHORITY shall issue, in order to secure the continuity and modernity of the service, the declaration of caducity of the concession, which will be preceded by an administrative proceeding to prove infractions or failures of the TRANSMISSION UTILITY. The TRANSMISSION UTILITY shall have the right to ample defense and compensation, calculated in the course of the proceedings. The amounts of penalties and damages caused by the TRANSMISSION UTILITY will be deducted from the compensation ascertained. Paragraph Seven - The administrative default proceeding will not be filed until the TRANSMISSION UTILITY has been fully informed of the contractual infractions, and enough time has been given for the TRANSMISSION UTILITY to make the corrections of the alleged failures and transgressions pointed out. Paragraph Eight - The declaration of caducity shall not imply, for the CONCESSION-GRANTING AUTHORITY or ▇▇▇▇▇, any kind of liability for the charges, burdens, obligations or commitments with third parties or with employees of the TRANSMISSION UTILITY. Paragraph Nine - By means of a legal action specifically filed for this purpose, the TRANSMISSION UTILITY may terminate this CONTRACT, in the event of breach by the CONCESSION-GRANTING AUTHORITY of the contractual rules. In this case, the TRANSMISSION UTILITY shall not interrupt or stop the provision of the service until the final court decision ruling on the termination of this CONTRACT has been rendered. Paragraph Ten - In any of the cases of termination of the concession, the CONCESSION-GRANTING AUTHORITY will take over the service, directly or through its agents, to secure the continuity and regularity of the provision of PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION. SECTION THIRTEEN - COMMITMENT OF THE CONTROLLING SHAREHOLDER OR QUOTAHOLDER PARTNER Paragraph One - The transfer, in whole or in part, of shares that are part of the shareholding control will only be recognized by ▇▇▇▇▇ when the new controlling shareholder(s) - or quotaholder(s) partner(s) - sign(s) the Paragraph Two – The CONTROLLING SHAREHOLDER(S) - or QUOTAHOLDER(S) PARTNER(S) – sign(s)

Paragraph Five. In order to serve public interest, under a specific authorizing lawno case may amounts be stipulated that make it impracticable for the LOCAL COMMISSIONS, the CONCESSION- GRANTING AUTHORITY may resume REGIONAL ▇▇▇▇▇▇▇▇ and the service during the concession period, after payment FORUM OF OBSERVERS PARAGRAPH SIX. The total value of the compensation AFFECTED PEOPLE BUDGET may be increased by up to twenty-five percent (25%) for extraordinary meetings and other expenses directly related to the provisions of SECTION SIXTY-FOUR, provided they are duly justified, the local specificities are met, and they are previously agreed between the PUBLIC PROSECUTOR OFFICE EXPERT responsible for hiring the TECHNICAL ADVISERS and the FOUNDATION, applying in the case of deadlock the provisions in PARAGRAPHS TWO, THREE and FOUR of this SECTION. SECTION SIXTY-FOUR. The AFFECTED PEOPLE BUDGET shall address only the following cost and expenses, which shall be detailed: PARAGRAPH ONE. For purposes of costing, the LOCAL COMMISSIONS’ meetings shall take place at the municipality seat or in a district or community located within the scope of said commission, preferably in public locations, free of charge, whenever possible. In the case of the installments of investments attached to reversible assets, not yet amortized or depreciated, which have been made by the TRANSMISSION UTILITY so as to secure the continuity and modernity of the service granted. Paragraph Six – Upon verification of any of the default cases provided for in Law No. 8.987 of 1995, and in this CONTRACT, the CONCESSION-GRANTING AUTHORITY shall issue, in order to secure the continuity and modernity of the service, the declaration of caducity of the concession, which will be preceded by an administrative proceeding to prove infractions or failures of the TRANSMISSION UTILITY. The TRANSMISSION UTILITY shall have the right to ample defense and compensation, calculated in the course of the proceedings. The amounts of penalties and damages caused by the TRANSMISSION UTILITY will be deducted from the compensation ascertained. Paragraph Seven - The administrative default proceeding will not be filed until the TRANSMISSION UTILITY has been fully informed of the contractual infractions, and enough time has been given for the TRANSMISSION UTILITY to make the corrections of the alleged failures and transgressions pointed out. Paragraph Eight - The declaration of caducity shall not imply, for the CONCESSION-GRANTING AUTHORITY or REGIONAL ▇▇▇▇▇▇▇▇, any kind the provisions of liability PARAGRAPH ONE of SECTION THIRTY- FOUR shall be respected. Comentado [1]: Comment of the companies: replicate parameter to CIF PARAGRAPH THREE. The AFFECTED PEOPLE BUDGET shall specify in detail the amounts to be paid for each LOCAL COMMISSION, for each REGIONAL CHAMBER and for the chargesFORUM OF OBSERVERS. PARAGRAPH ONE. In compliance with the provisions and procedure set forth in this chapter, burdensit shall be incumbent upon FOUNDATION to make available, obligations or commitments with third parties or with employees each quarter, to the AFFECTED PEOPLE MANAGER, the amounts to be used to pay the expenditures and expenses provided for in the AFFECTED PEOPLE BUDGET, within 10 (ten) days before the end of the TRANSMISSION UTILITY. Paragraph Nine - By means of a legal action specifically filed for this purpose, quarter preceding the TRANSMISSION UTILITY may terminate this CONTRACT, quarter in which the event of breach by the CONCESSION-GRANTING AUTHORITY of the contractual rules. In this case, the TRANSMISSION UTILITY shall not interrupt or stop the provision of the service until the final court decision ruling on the termination of this CONTRACT has been rendered. Paragraph Ten - In any of the cases of termination of the concession, the CONCESSION-GRANTING AUTHORITY expenses and expenditures will take over the service, directly or through its agents, to secure the continuity and regularity of the provision of PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION. SECTION THIRTEEN - COMMITMENT OF THE CONTROLLING SHAREHOLDER OR QUOTAHOLDER PARTNER Paragraph One - The transfer, in whole or in part, of shares that are part of the shareholding control will only be recognized by ▇▇▇▇▇ when the new controlling shareholder(s) - or quotaholder(s) partner(s) - sign(s) the Paragraph Two – The CONTROLLING SHAREHOLDER(S) - or QUOTAHOLDER(S) PARTNER(S) – sign(s)incurred.

Paragraph Five. In order to serve public interest, under a specific authorizing law, the CONCESSION- GRANTING AUTHORITY may resume the service during the concession period, after payment of the compensation of the installments of investments attached to reversible assets, not yet amortized or depreciated, which have been made by the TRANSMISSION UTILITY so as to secure the continuity and modernity of the service granted. Paragraph Six – Upon verification of any of the default cases provided for in Law No. 8.987 of 1995, and in this CONTRACT, the CONCESSION-GRANTING AUTHORITY shall issue, in order to secure the continuity and modernity of the service, the declaration of caducity of the concession, which will be preceded by an administrative proceeding to prove infractions or failures of the TRANSMISSION UTILITY. The TRANSMISSION UTILITY shall have the right to ample defense and compensation, calculated in the course of the proceedings. The amounts of penalties and damages caused by the TRANSMISSION UTILITY will be deducted from the compensation ascertained. Paragraph Seven - The administrative default proceeding will not be filed until the TRANSMISSION UTILITY has been fully informed of the contractual infractions, and enough time has been given for the TRANSMISSION UTILITY to make the corrections of the alleged failures and transgressions pointed out. Paragraph Eight - The declaration of caducity shall not imply, for the CONCESSION-GRANTING AUTHORITY or ▇▇▇▇▇, any kind of liability for the charges, burdens, obligations or commitments with third parties or with employees of the TRANSMISSION UTILITY. Paragraph Nine - By means of a legal action specifically filed for this purpose, the TRANSMISSION UTILITY may terminate this CONTRACT, in the event of breach by the CONCESSION-GRANTING AUTHORITY of the contractual rules. In this case, the TRANSMISSION UTILITY shall not interrupt or stop the provision of the service until the final court decision ruling on the termination of this CONTRACT has been rendered. Paragraph Ten - In any of the cases of termination of the concession, the CONCESSION-GRANTING AUTHORITY will take over the service, directly or through its agents, to secure the continuity and regularity of the provision of PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION. SECTION THIRTEEN Paragraph Eleven - COMMITMENT OF THE CONTROLLING SHAREHOLDER OR QUOTAHOLDER PARTNER Paragraph One - The transfer, in whole or in part, of shares that are part Termination of the shareholding control will only be recognized by ▇▇▇▇▇ when contract for non-verification of the new controlling shareholder(s) - suspensive condition referred to in this Section shall not imply the execution of the performance bonds presented or quotaholder(s) partner(s) - sign(s) any other legal commitment to the Paragraph Two – The CONTROLLING SHAREHOLDER(S) - or QUOTAHOLDER(S) PARTNER(S) – sign(s)TRANSMISSION UTILITY.

Paragraph Five. In order The parameters quoted in Paragraphs One and Two of this Section and in APPENDIX V of this CONTRACT refer exclusively to serve public interest, under a specific authorizing law, the CONCESSION- GRANTING AUTHORITY may resume Periodic Revenue Review and cannot be invoked for the service during the concession period, after payment purpose of the compensation economic and financial rebalancing of the installments of investments attached to reversible assets, not yet amortized or depreciated, which have been made by the TRANSMISSION UTILITY so as to secure the continuity and modernity of the service grantedthis CONTRACT. Paragraph Six – Upon verification ▇▇▇▇▇ may review the amount of any of the default cases provided for in Law No. 8.987 of 1995, and in this CONTRACT, the CONCESSION-GRANTING AUTHORITY shall issueALLOWED ANNUAL REVENUE - RAP, in order to secure contribute to the continuity and modernity modicity of tariffs of the service, the declaration of caducity of the concession, which will be preceded by an administrative proceeding to prove infractions or failures of the TRANSMISSION UTILITY. The TRANSMISSION UTILITY shall have the right to ample defense and compensation, calculated in the course of the proceedings. The amounts of penalties and damages caused by the TRANSMISSION UTILITY will be deducted from the compensation ascertained. Paragraph Seven - The administrative default proceeding will not be filed until the TRANSMISSION UTILITY has been fully informed of the contractual infractions, and enough time has been given for the TRANSMISSION UTILITY to make the corrections of the alleged failures and transgressions pointed out. Paragraph Eight - The declaration of caducity shall not imply, for the CONCESSION-GRANTING AUTHORITY or ▇▇▇▇▇, any kind of liability for the charges, burdens, obligations or commitments with third parties or with employees of the TRANSMISSION UTILITY. Paragraph Nine - By means of a legal action specifically filed for this purpose, the TRANSMISSION UTILITY may terminate this CONTRACT, in the event of breach by the CONCESSION-GRANTING AUTHORITY of the contractual rules. In this case, the TRANSMISSION UTILITY shall not interrupt or stop the provision of the service until the final court decision ruling on the termination of this CONTRACT has been rendered. Paragraph Ten - In any of the cases of termination of the concession, the CONCESSION-GRANTING AUTHORITY will take over the service, directly or through its agents, to secure the continuity and regularity of the provision of PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION, whenever there is revenue earned from other activities. SECTION THIRTEEN - COMMITMENT OF THE CONTROLLING SHAREHOLDER OR QUOTAHOLDER PARTNER Paragraph One Seven - The transferestablishment of new amounts of ALLOWED ANNUAL REVENUE, resulting from adjustments and revisions, as defined in whole or the legislation and in partthis CONTRACT, of shares that are part of the shareholding control will only be recognized performed through ▇▇▇▇▇ Resolution. SECTION EIGHT – SERVICE INSPECTION Paragraph One – The inspection shall cover the monitoring and control of the TRANSMISSION UTILITY's actions in the administrative, technical, commercial, economic, financial and accounting areas, and ▇▇▇▇▇ may establish procedural guidelines or suspend actions deemed incompatible with the provision of the service granted or which could compromise the economic and financial balance of the concession. Paragraph Two – The inspection by ▇▇▇▇▇ when does not exempt or diminish the new controlling shareholder(s) - responsibilities of the TRANSMISSION UTILITY for the adequacy of its works and facilities, the object of the bidding, the correction and legality of accounting records, financial and commercial operations and the quality of services rendered. Paragraph Three – ANEEL's personnel or quotaholder(s) partner(s) - sign(s) its specially appointed agents shall have free and unrestricted access, at any time, to any and all documentation, works, installations and equipment related to the PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION, including their accounting records, as they may request , to any sector or person of the TRANSMISSION UTILITY, in the manner deemed necessary, information and clarifications that allow to verify the correct performance of this CONTRACT, as well as the data considered necessary for the statistical control and planning of the national electrical system, whereas the TRANSMISSION UTILITY is prohibited to restrict, under any claim, the provisions of this Paragraph. Paragraph Two Four – The CONTROLLING SHAREHOLDER(S) - Non-compliance by the TRANSMISSION UTILITY with ANEEL's requests and determinations will imply the application of the penalties provided for in the regulatory norms on the subject or QUOTAHOLDER(S) PARTNER(S) – sign(s)defined in the sections of this CONTRACT.