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 XXXXX, 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. ATTORNEY GENERAL´S OFFICE/XXXXX INITIALS 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. [Provision applicable only to Lot 11] Paragraph Eleven - Termination of the contract for non-verification of the suspensive condition referred to in this Section shall not imply the execution of the performance bonds presented or any other legal commitment to the 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 XXXXX may review the amount of any ALLOWED ANNUAL REVENUE - RAP, in order to contribute to the modicity of tariffs of the default cases provided for PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION, whenever there is revenue earned from other activities. Paragraph Seven - The establishment of new amounts of ALLOWED ANNUAL REVENUE, resulting from adjustments and revisions, as defined in Law No. 8.987 of 1995, the legislation 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 only 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 XXXXX, 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 renderedperformed through XXXXX Resolution. ATTORNEY GENERAL´S OFFICE/XXXXX INITIALS 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 SECTION EIGHT – SERVICE INSPECTION The CONCESSION OF PUBLIC SERVICE OF ELECTRIC POWER TRANSMISSION, object of this CONTRACT, will be overseen by XXXXX. [Provision applicable only to Lot 11] Paragraph Eleven - Termination One – The inspection shall cover the monitoring and control of the contract for non-verification of the suspensive condition referred to in this Section shall not imply the execution of the performance bonds presented or any other legal commitment to the TRANSMISSION UTILITY's actions in the administrative, technical, commercial, economic, financial and accounting areas, and XXXXX 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 XXXXX does not exempt or diminish the 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 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 Four – 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 defined in the sections of this CONTRACT.

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 XXXXX, 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. ATTORNEY GENERAL´S OFFICE/XXXXX INITIALS 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. [Provision applicable only SECTION THIRTEEN - COMMITMENT OF THE CONTROLLING SHAREHOLDER OR QUOTAHOLDER PARTNER The controlling shareholder - or quotaholder partner - undertakes not to Lot 11] Paragraph Eleven - Termination transfer, assign or otherwise dispose of, directly or indirectly, free of charge or onerously, the shares that are part of the contract for non-verification control group, without the prior consent of XXXXX. Paragraph One - The transfer, in whole or in part, of shares that are part of the suspensive condition referred shareholding control will only be recognized by XXXXX when the new controlling shareholder(s) - or quotaholder(s) partner(s) - sign(s) the ATTORNEY GENERAL´S OFFICE/XXXXX INITIALS instrument of agreement and adherence to the provisions of this CONTRACT and the legal and regulatory rules of the concession. Paragraph Two – The CONTROLLING SHAREHOLDER(S) - or QUOTAHOLDER(S) PARTNER(S) – sign(s) this CONTRACT as Intervening Party and Guarantor of the obligations and duties hereby established in this Section shall not imply the execution of the performance bonds presented or any other legal commitment to the TRANSMISSION UTILITYCONTRACT.

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 XXXXXXXX and the service during the concession periodFORUM OF OBSERVERS to be formed, after payment operate, or to regularly exercise their powers and duties. 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: I – physical structure that can adequately host, with safety, efficiency and comfort, the LOCAL COMMISSIONS; II – adequate and safe space for meetings of the installments of investments attached to reversible assetsLOCAL COMMISSIONS in their respective territories, 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 REGIONAL XXXXXXXX, in their territorial scope, and in its activities and meetings of any articulation, in addition to the FORUM OF OBSERVERS, in the area of the default cases Basin which is provided for in Law No. 8.987 its schedule; and III – costs and expenses with travel, food and, if necessary, lodging of 1995(i) members of the LOCAL COMMISSIONS and REGIONAL XXXXXXXX for participation in its ordinary meetings and the articulation and discussion meetings with the FOUNDATION, PUBLIC PROSECUTOR OFFICE and PUBLIC DEFENSE OFFICE, and, if the case may be, for meetings of the FORUM OF OBSERVERS, and (ii) Affected People members, indicated thereby, as per this AGREEMENT, for meeting of CIF and TECHNICAL XXXXXXXX. 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 REGIONAL XXXXXXXX, the provisions of PARAGRAPH ONE of SECTION THIRTY- FOUR shall be respected. Comentado [1]: Comment of the companies: replicate parameter to CIF PARAGRAPH TWO. The LOCAL COMMISSIONS, supported by the PUBLIC PROSECUTOR OFFICE EXPERT responsible for the contracting of the own TECHNICAL ADVISERS and TECHNICAL ASSISTANTS themselves, with the consent of the PUBLIC PROSECUTOR OFFICE and of the FOUNDATION, shall define their own regulations to establish the limits, accountability and criteria of expenses of its meetings and of its members, assured the equality of treatment and observed the local peculiarities, including those of the REGIONAL XXXXXXXX, observed the provisions of this chapter, as well as the rules practiced by the federal administration and the rules for travelling of the FOUNDATION for its employees, prevailing the rules that are more beneficial to the users, forbidden the payment of daily fees. 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 FORUM OF OBSERVERS. SECTION SIXTY-FIVE. For purposes of preparing the estimates of the AFFECTED PEOPLE BUDGET for the second half of 2018 and for 2019, the PUBLIC PROSECUTOR OFFICE EXPERT responsible for the contracting of the TECHNICAL ADVISERS shall consider (i) the activities to be carried out by the LOCAL COMMISSIONS already created by then, as well as the commissions being created; (ii) the history of the costs related to the activities carried out by the LOCAL COMMISSIONS already created; (iii) the proper adjustment of such amounts by the IPCA; and (iv) the peculiarities of the LOCAL COMMISSIONS to be created. PARAGRAPH ONE. In compliance with the provisions and procedure set forth in this CONTRACTchapter, it shall be incumbent upon FOUNDATION to make available, each quarter, to the AFFECTED PEOPLE MANAGER, the CONCESSION-GRANTING AUTHORITY shall issueamounts to be used to pay the expenditures and expenses provided for in the AFFECTED PEOPLE BUDGET, in order to secure within 10 (ten) days before the continuity and modernity end of the service, quarter preceding the declaration of caducity of quarter in which the concession, which expenses and expenditures 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 XXXXX, 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. ATTORNEY GENERAL´S OFFICE/XXXXX INITIALS 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. [Provision applicable only to Lot 11] Paragraph Eleven - Termination of the contract for non-verification of the suspensive condition referred to in this Section shall not imply the execution of the performance bonds presented or any other legal commitment to the TRANSMISSION UTILITYincurred.