Common use of Enforcement of the Compensatory Penalty Clause in Contracts

Enforcement of the Compensatory Penalty. If failure to comply with the Minimum Exploration Program is verified, ANP shall require the Concessionaire to pay the adjusted amount 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 voluntary payment, ANP shall include the debt in the overdue tax system and execute the 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 manifestation on contract default has immediate effect and characterizes cause sufficient to execute the guarantee offered, including any performance bond. Suspension of the execution of the financial guarantee by ANP, pursuant to item “m” of paragraph 34.5, or any 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 suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.15.3, the financial guarantee shall 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 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 perform the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be executed upon withdrawal of the 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 from the depositor.

Enforcement of the Compensatory Penalty. If verified failure to comply with the Minimum Exploration Program is verifiedProgram, ANP shall require summon the Concessionaire to pay the adjusted amount of from 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 voluntary payment, ANP shall include the debt in the overdue tax system and execute the 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 manifestation on contract default has immediate effect and characterizes cause sufficient to execute the guarantee offered, including any performance bond. bond Suspension of the execution of the financial guarantee by ANP, pursuant to item “m” of paragraph 34.5, or any 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 suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.15.36.14.3, the financial guarantee shall 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 perform 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 perform implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be executed upon withdrawal of the 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 from the depositor.

Enforcement of the Compensatory Penalty. If In case of failure to comply with the Minimum Exploration Program is verifiedProgram, ANP shall require summon the Concessionaire to pay the adjusted amount corresponding to the non-executed Units of the units of work which were not performedWork, 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 amount due, plus applicable statutory charges, minus the amount already executed from the corresponding respective 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 manifestation representation 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 guarantee bid bond offered, including any performance bond. Suspension Any suspension of the execution of the financial guarantee depends on a decision made by ANPANP itself, pursuant to item “m” of paragraph 34.533.5, or any on an arbitration award or court decision in effect. In any case, such suspension does not prevent communication of preclude ANP from communicating the loss by ANP to the insurance company within before expiration, as well as its effective execution when the effective period of the corresponding guarantee. After suspension is terminated with no reversal of ends and the administrative decision referred to in paragraph 6.15.3, the financial guarantee shall be effectively executed 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 perform 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 perform implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be executed performed upon withdrawal of the updated amount of the penalty clause corresponding to the non-performed portion of the Minimum Exploration Program adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization from of the depositor.

Enforcement of the Compensatory Penalty. If verified failure to comply with the Minimum Exploration Program is verifiedProgram, ANP shall require summon the Concessionaire to pay the adjusted amount of from 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 include register the debt debit in the overdue tax system and execute the amount due, plus applicable statutory charges, minus deducted from the debit the amount already executed from the corresponding financial guarantees. The amount of the penalty 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 manifestation on representation of contract default has immediate effect and characterizes a cause sufficient to execute the guarantee bid bond offered, including any performance bond. Suspension of the execution performance of the financial guarantee by upon ANP’s decision, pursuant to item “m” of paragraph 34.5, or any of the 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 6.15.36.14.3, the effective performance of the financial guarantee shall be effectively executed 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 perform 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 perform implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be executed performed upon withdrawal of the updated amount of the penalty clause corresponding to the non-performed portion of the Minimum Exploration Program adjusted amount, through correspondence from ANP to the depositary, regardless of prior authorization from of the depositor.

Enforcement of the Compensatory Penalty. If failure to comply Upon verification of non-compliance with the Minimum Exploration Program is verifiedProgram, the ANP shall require will summon the Concessionaire to pay the adjusted amount of 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 non-voluntary payment, the ANP shall include the debt 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, minus the amount already executed from the corresponding financial guarantees. The amount of equivalent to the penalty 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 manifestation on contract default has immediate effect and characterizes cause sufficient to execute the guarantee offered, including any performance bond. Suspension of the execution of the financial guarantee by ANP, pursuant to item “m” of paragraph 34.5, or any 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 suspension is terminated with no reversal of the administrative decision referred to in paragraph 6.15.36.14.4, the financial guarantee shall 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 perform 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 perform implement the Minimum Exploration Program; and does not allow the Concessionaire to advance to the Production Phase. For escrow deposit, the guarantee shall be executed upon withdrawal of the 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 from the depositor.