Common use of Enforcement of the Compensatory Penalty Clause in Contracts

Enforcement of the Compensatory Penalty. In case of failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount corresponding to the non-executed Units of Work, as compensatory penalty, within thirty (30) days, without any discount for voluntary payment. In the absence of voluntary payment, ANP shall execute the respective financial guarantees. ANP’s representation on default in an administrative proceeding subject to adversary proceeding and legal defense has immediate effect and characterizes a cause sufficient to execute the bid bond offered, including performance bond. Any suspension of the execution depends on a decision made by ANP itself, pursuant to item “m” of paragraph 33.5, or on an arbitration award or court decision in effect. In any case, such suspension does not preclude ANP from communicating the loss to the insurance company before expiration, as well as its effective execution when the suspension ends and the administrative decision was not reversed, even after the original term. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Minimum Exploration Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed upon withdrawal of the adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization of the depositor.

Enforcement of the Compensatory Penalty. In case of If failure to comply with the Minimum Exploration ProgramProgram is verified, ANP shall summon require the Concessionaire to pay the adjusted amount corresponding to of the non-executed Units units of Workwork which were not performed, as a compensatory penalty, within thirty (30) days, without any discount for voluntary payment. In the absence of voluntary payment, ANP shall include the debt in the overdue tax system and execute the respective amount due, plus applicable statutory charges, minus the amount already executed from the corresponding financial guarantees. The amount of the penalty set forth in the penalty clause shall be adjusted by the IGP-DI until the date on which the effective payment is made. ANP’s representation manifestation on contract default in an administrative proceeding subject to adversary proceeding and legal defense has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. Any suspension Suspension of the execution depends on a decision made of the financial guarantee by ANP itselfANP, pursuant to item “m” of paragraph 33.534.5, or on an any arbitration award or court decision in effect. In any case, such suspension does not preclude ANP from communicating prevent communication of the loss by ANP to the insurance company before expiration, as well as its within the effective execution when period of the corresponding guarantee. After suspension ends and is terminated with no reversal of the administrative decision was not reversedreferred to in paragraph 6.15.3, the financial guarantee shall be effectively executed upon termination of the suspension, even after if the original termeffective period of the guarantee is expired. Receipt of the amount corresponding to the compensatory penalty for failure to implement perform the Minimum Exploration Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement perform the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed executed upon withdrawal of the adjusted amount, updated amount of the penalty clause corresponding to the non-performed portion of the Minimum Exploration Program through correspondence from ANP to the depositary, regardless of prior authorization of from the depositor.

Enforcement of the Compensatory Penalty. In case of If verified failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount corresponding to from the non-executed Units units of Workwork which were not performed, as compensatory penalty, within thirty (30) days, without any discount for voluntary payment. In the absence of voluntary payment, ANP shall include the debt in the overdue tax system and execute the respective amount due, plus applicable statutory charges, minus the amount already executed from the corresponding financial guarantees. The amount of the penalty set forth in the penalty clause shall be adjusted by the IGP-DI until the date on which the effective payment is made. ANP’s representation manifestation on contract default in an administrative proceeding subject to adversary proceeding and legal defense has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. Any suspension bond Suspension of the execution depends on a decision made of the financial guarantee by ANP itselfANP, pursuant to item “m” of paragraph 33.534.5, or on an any arbitration award or court decision in effect. In any case, such suspension does not preclude ANP from communicating prevent communication of the loss by ANP to the insurance company before expiration, as well as its within the effective execution when period of the corresponding guarantee. After suspension ends and is terminated with no reversal of the administrative decision was not reversedreferred to in paragraph 6.14.3, the financial guarantee shall be effectively executed upon termination of the suspension, even after if the original termeffective period of the guarantee is expired. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Minimum Exploration Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed executed upon withdrawal of the adjusted amount, updated amount of the penalty clause corresponding to the non-performed portion of the Minimum Exploration Program through correspondence from ANP to the depositary, regardless of prior authorization of from the depositor.

Enforcement of the Compensatory Penalty. In case of If verified failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount corresponding to from the non-executed Units units of Workwork which were not performed, as compensatory penalty, within thirty (30) days, without any discount for voluntary payment. In the absence of the voluntary payment, ANP shall register the debit in the overdue tax system and execute the respective amount due, plus applicable statutory charges, deducted from the debit the amount already executed from the corresponding financial guarantees. The amount of the imposition set forth in the penalty clause shall be adjusted by the IGP-DI until the date on which the effective payment is made. ANP’s representation on of contract default in an administrative proceeding subject to adversary proceeding and legal defense has immediate effect and characterizes a cause sufficient to execute the bid bond offered, including performance bond. Any suspension Suspension of the execution depends on a decision made by ANP itselfperformance of the financial guarantee upon ANP’s decision, pursuant to item “m” of paragraph 33.534.5, or on an of the arbitration award or court decision in effect. In any case, such suspension effect does not preclude ANP from communicating prevent communication of the loss by ANP to the insurance company before expirationcompany, as well as its within the effective execution when period of the corresponding guarantee. After the suspension ends and is terminated with no reversal of the administrative decision was not reversedreferred to in paragraph 6.14.3, the effective performance of the financial guarantee shall come upon termination of the suspension, even after if the original termeffective period of the guarantee is expired. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Minimum Exploration Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed upon withdrawal of the adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization of the depositor.

Enforcement of the Compensatory Penalty. In case Upon verification of failure to comply non-compliance with the Minimum Exploration Program, the ANP shall will summon the Concessionaire to pay pay, as a compensatory penal clause, within 30 (thirty) days, the adjusted amount corresponding to the nonunfulfilled portion of the Minimum Exploration Program updated by the IGP-executed Units of Work, as compensatory penalty, within thirty (30) daysDI, without incidence of any discount for voluntary payment. In the absence case of non-voluntary payment, the ANP shall will execute the respective amount due up to the limit guaranteed by the financial guarantees, and will register the remaining debt in overdue debt, plus the applicable legal charges. The amount equivalent to the Minimum Exploratory Program not complied with will be updated by the IGP-DI until the date on which the effective payment is made. ANP’s representation manifestation on contract default in an administrative proceeding subject to adversary proceeding and legal defense has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. Any suspension Suspension of the execution depends on a decision made of the financial guarantee by ANP itselfANP, pursuant to item “m” of paragraph 33.534.5, or on an any arbitration award or court decision in effect. In any case, such suspension does not preclude ANP from communicating prevent communication of the loss by ANP to the insurance company before expiration, as well as its within the effective execution when period of the corresponding guarantee. After suspension ends and is terminated with no reversal of the administrative decision was not reversedreferred to in paragraph 6.14.4, the financial guarantee shall be effectively executed upon termination of the suspension, even after if the original termeffective period of the guarantee is expired. Receipt of the amount corresponding to the compensatory penalty for failure to implement the Minimum Exploration Program: does not exempt the Concessionaire from performing the other obligations arising from the Agreement; does not affect ANP’s right to seek other remedies and impose any applicable sanctions for acts other than the mere failure to implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be performed executed upon withdrawal of the adjusted amount, updated amount of the penalty clause corresponding to the non-performed portion of the Minimum Exploration Program through correspondence from ANP to the depositary, regardless of prior authorization of from the depositor.