Common use of THIRD PARAGRAPH Clause in Contracts

THIRD PARAGRAPH. The Parties agree that the price of fuel may be readjusted, among other reasons, under the following circumstances when the grounds mentioned below affect the price of JET A-1: (i) by disposition of the Ministry of Mines and Energy, or the Commission for Regulation of Energy and Gas “▇▇▇▇”, or whoever replaces it or by the competent authority, in cases when said Ministry, the ▇▇▇▇ or the competent entity, make changes to the fuel price structure; (ii) upon issuance of standards that modify the fuel price or that of any of its components. The above circumstances are inclusive and not limited, thereby modification of the fuel price for reasons other than TERPEL’S decision and that modify the supply conditions, may affect the initially agreed fares; (iii) the parties expressly agree to comply with the tax obligations resulting from taxes issued and procedures decreed by competent authorities of the Colombian Government, under penalty of breach of contract; (iv) modifications to existing taxes and the creation of new taxes through tax reform or in general by modifying applicable law, within the term of the agreement, entitle the parties to review the agreement in good faith in order to adjusted in so far as possible in relation to the objective initially sought by the negotiation, considering the new applicable law. If the stamp tax should increase and this agreement is covered by the fare variation, the value of the levied tax shall apply equally to the contracting parties. However, in any case, modification of price, prior to application, must be duly notified and supported by TERPEL.