Common use of Enforcement of the Compensatory Penalty Clause in Contracts

Enforcement of the Compensatory Penalty. If verified failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount from the units of work 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 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 of contract default has immediate effect and characterizes a cause sufficient to execute the bid bond offered, including performance bond. Suspension of the performance of the financial guarantee upon ANP’s decision, pursuant to item “m” of paragraph 34.5, or of the arbitration award or court decision in effect does not prevent communication of the loss by ANP to the insurance company, within the effective period of the corresponding guarantee. After the suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.14.3, the effective performance of the financial guarantee shall come upon termination of the suspension, even if the original effective 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. If verified failure to comply with the Minimum Exploration ProgramProgram is verified, ANP shall summon require the Concessionaire to pay the adjusted amount from of the units of work which were not performed, as a compensatory penalty, within thirty (30) days, without any discount for voluntary payment. In the absence of the voluntary payment, ANP shall register include the debit debt in the overdue tax system and execute the amount due, plus applicable statutory charges, deducted from the debit minus the amount already executed from the corresponding financial guarantees. The amount of the imposition 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 of manifestation on contract default has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. Suspension of the performance execution of the financial guarantee upon by ANP’s decision, pursuant to item “m” of paragraph 34.5, or of the any arbitration award or court decision in effect effect, does not prevent communication of the loss by ANP to the insurance company, company within the effective period of the corresponding guarantee. After the suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.14.36.15.3, the effective performance of the financial guarantee shall come be effectively executed upon termination of the suspension, even if the original effective 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. If verified failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount from the units of work 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 include the debit debt in the overdue tax system and execute the amount due, plus applicable statutory charges, deducted from the debit minus the amount already executed from the corresponding financial guarantees. The amount of the imposition 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 of manifestation on contract default has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. bond Suspension of the performance execution of the financial guarantee upon by ANP’s decision, pursuant to item “m” of paragraph 34.5, or of the any arbitration award or court decision in effect effect, does not prevent communication of the loss by ANP to the insurance company, company within the effective period of the corresponding guarantee. After the suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.14.3, the effective performance of the financial guarantee shall come be effectively executed upon termination of the suspension, even if the original effective 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. If verified In case of failure to comply with the Minimum Exploration Program, ANP shall summon the Concessionaire to pay the adjusted amount from corresponding to the units non-executed Units of work which were not performedWork, 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 amount due, plus applicable statutory charges, deducted from the debit the amount already executed from the corresponding respective 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 of contract 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. Suspension Any suspension of the performance of the financial guarantee upon ANP’s decisionexecution depends on a decision made by ANP itself, pursuant to item “m” of paragraph 34.533.5, or of the on an arbitration award or court decision in effect effect. In any case, such suspension does not prevent communication of preclude ANP from communicating the loss by ANP to the insurance companycompany before expiration, within the as well as its effective period of the corresponding guarantee. After execution when the suspension is terminated with no reversal of ends and the administrative decision referred to in paragraph 6.14.3, the effective performance of the financial guarantee shall come upon termination of the suspensionwas not reversed, even if after the original effective period of the guarantee is expiredterm. 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. If verified failure to comply Upon verification of non-compliance with the Minimum Exploration Program, the ANP shall will summon the Concessionaire to pay the adjusted amount from the units of work which were not performedpay, as a compensatory penaltypenal clause, within thirty 30 (30thirty) days, the amount corresponding to the unfulfilled portion of the Minimum Exploration Program updated by the IGP-DI, without incidence of any discount for voluntary payment. In the absence case of the non-voluntary payment, the ANP shall register the debit in the overdue tax system and will execute the amount duedue up to the limit guaranteed by the financial guarantees, and will register the remaining debt in overdue debt, plus the applicable statutory legal charges, deducted from the debit the amount already executed from the corresponding financial guarantees. The amount of equivalent to the imposition set forth in the penalty clause shall Minimum Exploratory Program not complied with will be adjusted updated by the IGP-DI until the date on which the effective payment is made. ANP’s representation of manifestation on contract default has immediate effect and characterizes a cause sufficient to execute the bid bond guarantee offered, including any performance bond. Suspension of the performance execution of the financial guarantee upon by ANP’s decision, pursuant to item “m” of paragraph 34.5, or of the any arbitration award or court decision in effect effect, does not prevent communication of the loss by ANP to the insurance company, company within the effective period of the corresponding guarantee. After the suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.14.36.14.4, the effective performance of the financial guarantee shall come be effectively executed upon termination of the suspension, even if the original effective 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.