Exhibit 10.8.6
SECTOR ECONOMIA Y FINANZAS
CONVENIO DE ESTABILIDAD JURIDICA CON DOE RUN CAYMAN LTD.
Conste por el presente documento el Convenio de Estabilidad Juridica que
celebran, de una parte, el ESTADO PERUANO, debidamente representado por el Xx.
Xxxxxx Xxxxxxx Xxxxxx, Secretario General de la Comision Nacional de Inversiones
y Tecnologias Extranjeras CONTE, autorizado para tal efecto por Resolucion del
Directorio xx XXXXX No.001-93-EF/35 de fecha 01 de febrero de 1993 con domicilio
en Xx. Xxxxxxx Xxxx Xxxxxxx Xx. 000 - 0xx. xxxx, Xxxx, a quien en adelante se le
denominara el ESTADO; y, de la otra parte, DOE RUN CAYMAN LTD una empresa
constituida y existente bajo las leyes de Islas Caiman, con domicilio en Xxxx
Xxxxxx Xxx Xx 000, Xxxxxx Xxxxx, Xxxxx Xxxxxx Xxxxxx, Xxxxx Xxxxxx, Xxxxxx
Islands, British Xxxx Indies, Gran Bretana, representada por su Apoderado senor
Xxxxxx Xxxx Xxxxxxxxxx Xxxxx, de nacionalidad peruana, identificado con Libreta
Electoral No 01794578, domiciliado en Xx. Xxxxxxx Xxxxx Xxxx Xx 000, Xxxxx
Xxxxx, Xxxx, Xxxx, segun poder que se encuentra en tramite; a quien en adelante
se le denominara DOE RUN ; en los terminos y condiciones que constan en las
siguientes clausulas:
PRIMERA.-DOE RUN ha presentado ante la Comision Nacional de Inversiones y
Tecnologias Extranjeras, en adelante CONITE, una solicitud para la suscripcion
de un Convenio de Estabilidad Juridica al amparo de lo dispuesto en el Decreto
Legislativo No 662, en el Titulo II y en el Capitulo Primero del Titulo V del
Decreto Legislativo No 757, y en el Reglamento de los mismos aprobado por el
Decreto Supremo No 162-92-EF del 12 de octubre de 1992, el que en adelante se
denominara el REGLAMENTO.
SEGUNDA.- DOE RUN en virtud del presente Convenio, se acoge a la modalidad de
inversion prescrita en el inciso a) del articulo 16o del REGLAMENTO. En
consecuencia, se obliga a lo siguiente:
1. Efectuar aportes dinerarios al capital de la empresa DOE RUN MINING
X.X.Xxxx., una compania constituida en la ciudad de Lima, Peru, inscrita
en la Ficha No 143928 del Registro de Personas Juridicas de la Oficina
Registral de Lima y Callao, por un monto de US$ 2 000 000 (Dos Millones y
00/100 Dolares de Estados Unidos de America) en un plazo que no excedera
del 23 de octubre de 1997.
2. Canalizar el aporte proveniente del exterior a que se refiere el numeral
1, a traves del Sistema Financiero Nacional, conforme debera constar en la
certificacion que emita el banco interviniente en la operacion.
3. Registrar su inversion, valorizada en moneda de libre convertibilidad, en
CONITE.
TERCERA. - El ESTADO, en virtud del presente Convenio y mientras este se
encuentre vigente, se obliga, en relacion con la inversion a que se refiere la
CLAUSULA SEGUNDA, a garantizar la estabilidad juridica para DOE RUN en los
siguientes terminos:
1. Estabilidad del regimen tributario referido al Impuesto a la Renta.
conforme a lo prescrito en el inciso a) del articulo 10o del Decreto
Legislativo No 662, vigente al momento de la suscripcion del presente convenio,
segun el cual los dividendos y cualquier otra forma de distribucion de
utilidades, no se encuentran gravadas, de conformidad con lo prescrito en el
inciso a) del articulo 25o de la Ley del Impuesto a la Renta, aprobada por el
Decreto Legislativo No. 774 y normas modificatorias vigentes a la fecha de
suscripcion del presente Convenio. La mencionada ley y sus modificatorias
tampoco gravan las remesas al exterior de los montos que correspondan a DOE RUN
por cualquiera de los conceptos CONITEmplados en este inciso.
2. Estabilidad del regimen de libre disponibilidad de divisas conforme a lo
prescrito en el inciso b) del articulo 10o del Decreto Legislativo No 662,
que implica que DOE RUN podra acceder libremente a la moneda extranjera en
el mercado cambiario al tipo de cambio mas favorable que pueda conseguir,
sin que el ESTADO pueda aplicarle con relacion a la inversion a que se
refiere la CLAUSULA SEGUNDA, cualquier regimen o mecanismo de regulacion
xxx xxxxxxx cambiario que limite o restrinja este derecho o que impiique
un tratamiento menos favorable para DOE RUN que el que se apiique a
cualquier persona natural o juridica por la realizacion de cualquier clase
de operacion cambiaria.
3. Estabilidad del derecho de libre remesa de sus utilidades y capitales
conforme a lo prescrito en el inciso b) del articulo 10o del Decreto
Legislativo No 662, que implica que DOE RUN podra transferir al exterior
en divisas libremente convertibles, sin requerir autorizacion previa de
ninguna entidad del Gobierno Central, Gobiernos Regionales o Locales,
siempre que la inversion correspondiente haya sido registrada ante el
Organismo Nacional Competente y se haya cumplido con las obligaciones
tributarias correspondientes, y sin que el ESTADO pueda establecer
restriccion o limitacion alguna a este derecho, lo siguiente:
a) el integro de sus capitales provenientes del exterior, incluyendo el
capital proveniente de la venta de sus acciones, participaciones o
derechos sobre empresas, de la reduccion del capital y de la
liquidacion parcial o total de empresas, provenientes de la
inversion a que se refiere la CLAUSULA SEGUNDA;
b) el integro de los dividendos o las utilidades netas comprobadas
provenientes de la inversion a que se refiere la CLAUSULA SEGUNDA,
asi como las utilidades obtenidas por concepto de contraprestaciones
por el uso o disfrute de bienes ubicados fisicamente en el pais
destinados a dicha inversion; y,
c) el integro de las regalias y contraprestaciones por el uso y
transferencia de tecnologia, marcas y patentes y cualquier otro
elemento de la propiedad industrial que autorice el Organismo
Nacional Competente.
Estabilidad del derecho de utilizar el tipo de cambio mas favorable
conforme a lo prescrito en el inciso b) del articulo 10o del Decreto
Legislativo No 662, que implica que DOE RUN podra acceder a la moneda
extranjera en el mercado cambiario al tipo de cambio mas favorable que
pueda conseguir sin que el ESTADO pueda obligarla a
[LOGO]
SECTOR ECONOMIA Y FINANZAS
realizar sus operaciones cambiarias bajo un regimen o mecanismo que
otorgue un tratamiento menos favorable que el que se aplique a cualquier
persona natural o juridica por la realizacion de cualquier operacion
cambiaria, de acuerdo a lo siguiente
a) cuando se trate de conversion de la moneda extranjera a nacional:
DOE RUN podra venderla a cualquier persona natural o juridica al
tipo de cambio compra mas favorable que encuentre en el mercado
cambiario al momento de efectuar la operacion cambiaria; y,
b) cuando se trate de conversion de la moneda nacional a extranjera:
DOE RUN podra comprarla a cualquier persona natural o juridica al
tipo de cambio venta mas favorable que encuentre en el mercado
cambiario al momento de efectuar la operacion cambiaria.
5. Estabilidad del derecho a la no discriminacion conforme a lo prescrito en
el inciso c) del articulo 10o del Decreto Legislativo No 662, que implica
que el ESTADO en ninguno de sus niveles, ya se trate de entidades o
empresas del Gobierno Central, Gobiernos Regionales o Locales, podra
aplicar a DOE RUN un tratamiento diferenciado atendiendo a su
nacionalidad, los sectores o tipos de actividad economica que desarrolle o
la ubicacion geografica de la empresa en que invierta, ni en las
siguientes materias:
a) cambiaria, de tal modo que el ESTADO no podra aplicar a DOE RUN, en
lo relativo a la inversion a que se refiere la CLAUSULA SEGUNDA, un
regimen cambiario que implique un tratamiento menos favorable que el
que se aplique a cualquier persona natural o juridica por la
realizacion de cualquier clase de operacion cambiaria;
b) precios, tarifas o derechos no arancelarios, de tal modo que el
ESTADO no podra aplicar por estos conceptos a DOE RUN, en lo
relativo a la inversion a que se refiere la CLAUSULA SEGUNDA, montos
o tasas diferenciados;
c) forma de constitucion empresarial, de tal modo que el ESTADO no
podra exigir a DOE RUN que la empresa DOE RUN MINING X.X.Xxxx., en
la que va a invertir, adopte una determinada modalidad empresarial;
d) su condicion de persona natural o juridica, de tal modo que el
ESTADO no podra aplicar a DOE RUN un tratamiento diferenciado por
este concepto; y,
e) ninguna otra causa de efectos equivalentes, como es el caso de la
aplicacion de tratamientos discriminatorios para DOE RUN resultantes
de cualquier combinacion de los diversos acapites del presente
numeral.
El presente numeral se aplica sin perjuicio de las limitaciones
establecidas en el articulo 30 del REGLAMENTO.
CUARTA. - DOE RUN se compromete a presentar en el plazo de cuarenta y cinco (45)
dias calendario el poder formalizado e inscrito ante el registro
correspondiente, que faculte debidamente al senor Xxxxxx Xxxx Xxxxxxxxxx Xxxxx a
suscribir el presente Convenio de Estabilidad Juridica.
QUINTA. - DOE RUN asume adicionalmente de conformidad con lo pactado en la
CLAUSULA SEGUNDA, la obligacion de acreditar que ha cumplido con la realizacion
del aporte dinerario por US$ 2 000 000 (Dos Millones y 00/100 Dolares de Estados
Unidos de America) al capital de la empresa DOE RUN MINING X.X.Xxxx., mediante
la presentacion ante CONITE, de copia del Testimonio de la Escritura Publica de
Aumento de Capital y Modificacion de Estatutos de la empresa, debidamente
inscrita en el registro correspondiente, asi como la certificacion que emita el
banco interviniente en la operacion
La obligacion a que se refiere el parrafo anterior debera acreditarse en un
plazo maximo de treinta (30) dias calendario, contado a partir de la fecha
limite para su cumplimiento, conforme a lo establecido en la CLAUSULA SEGUNDA.
El incumplimiento de la misma constituye causal de resolucion del Convenio.
SEXTA. - El presente Convenio de Estabilidad Juridica tendra una vigencia xx
xxxx (10) anos contados a partir de la fecha de su suscripcion. En consecuencia,
no podra ser modificado unilateralmente por ninguna de las partes durante dicho
periodo, ni aunque la legislacion nacional sea modificada, asi se trate de
modificaciones mas beneficiosas o perjudiciales para alguna de las partes que
las pactadas en este Convenio.
SEPTIMA. - DOE RUN tendra derecho a renunciar por unica vez al regimen de
estabilidad juridica que se le otorga al amparo del presente Xxxxxxxx, debiendo
formalizar dicha renuncia mediante una comunicacion por escrito dirigida a
CONITE, la que se hara efectiva desde la fecha de recepcion de la comunicacion
por este ultimo.
Si DOE RUN opta por ejercer el derecho de renuncia al Convenio de Estabilidad,
que se le reconoce al amparo de la presente Xxxxxxxx, automaticamente pasara a
regirse por la legislacion comun.
OCTAVA. - DOE RUN tendra derecho a ceder su posicion contractual en el presente
Convenio. Para que sea valida dicha cesion de posicion contractual, DOE RUN
debera obtener previamente la autorizacion correspondiente de CONITE, la misma
que se formalizara mediante un Addendum al presente Convenio.
Queda entendido que la cesion de posicion contractual que realice DOE RUN a otro
inversionista no extiende el plazo de duracion del Convenio a ie se refiere la
CLAUSULA SEXTA.
NOVENA. - El presente Convenio de Estabilidad Juridica podra sermodicado de
comun acuerdo por las partes, salvo en lo referente a su plazo de vigencia
establecido en la CLAUSULA SEXTA. Tampoco podra dificarse el monto de la
inversion por debajo del limite establecido en el inciso a) del articulo 16o del
REGLAMENTO.
[LOGO]
SECTOR ECONOMIA Y FINANZAS
Para tal efecto, DOE RUN presentara una solicitud a CONITE, que se tramitara
conforme al mismo procedimiento utilizado para la suscripcion del presente
Convenio.
DECIMA. - Siendo la intencion de las partes que los problemas que se presenten
en relacion con el cumplimiento del presente Convenio se resuelvan de la manera
mas expeditiva posible, se conviene desde ahora que cualquier litigio,
controversia o reclamacion entre ellos, relativa a la interpretacion, ejecucion
o validez del presente Convenio, sera resuelta mediante arbitraje de derecho.
El arbitraje se llevara a cabo en la ciudad de Lima, mediante la constitucion de
un Tribunal Arbitral conformado por tres miembros, de los cuales cada una de las
partes nombrara a uno y los dos arbitros asi designados nombraran al tercer
arbitro. Los arbitros quedan expresamente facultados para determinar la
controversia materia del arbitraje.
Si una parte no nombra arbitro dentro de los diez (10) dias de recibido el
requerimiento de la parte o partes que soliciten el arbitraje o si dentro de un
plazo igualmente xx xxxx (10) dias, contado a partir del nombramiento del ultimo
arbitro por las partes, los dos arbitros no consiguen ponerse de acuerdo sobre
el tercer arbitro, la designacion del arbitro faltante sera hecha, a peticion de
cualquiera de las partes, por la Camara de Comercio de Lima.
El plazo de duracion del proceso arbitral no debera exceder de sesenta (60) dias
habiles, contado desde la fecha de designacion del ultimo arbitro y se regira
por lo dispuesto en la Ley General de Arbitraje, aprobada por la Ley No. 26572
y/o las normas que la sustituyan o modifiquen.
Los gastos que se generen por la aplicacion de lo pactado en la presente
Xxxxxxxx seran sufragados por las partes contratantes en igual medida.
DECIMO PRIMERA.- Constituyen causales de resolucion de pleno derecho del
presente Convenio de Estabilidad Juridica, sin mediar requisito de comunicacion
previa, las siguientes:
1. EL incumplimiento por parte de DOE RUN de las obligaciones establecidas en
la CLAUSULA SEGUNDA, CLAUSULA CUARTA y CLAUSULA QUINTA.
2. La cesion de posicion contractual que realice DOE RUN a otro inversionista
sin obtener la correspondiente autorizacion previa de CONITE, conforme a
lo pactado en la CLAUSULA OCTAVA.
En el caso que DOE RUN incurra en una de las mencionadas causales de solucion
del presente Convenio, si por efecto de la estabilidad juridica concedida al
amparo del mismo, hubiera gozado de una carga fiscal menor a la que le hubiera
correspondido de no estar amparada por dicho Convenio, estara obligada a
reembolsar al ESTADO el monto actualizado de los tributos que le hubieran
afectado de no haber suscrito el Convenio, mas los recargos correspondientes a
que se refiere el Codigo Tributario.
Queda entendido que en el caso a que se refiere el parrafo anterior, si DOE RUN
hubiera soportado una carga fiscal mayor por efectos del presente Convenio, no
existira obligacion de reembolso de suma alguna por parte del Estado.
Estando las partes de acuerdo en todos los terminos del presente Convenio, lo
suscriben en dos copias de igual CONITE nido, en Lima, a los veintiun dias del
mes de octubre de 1997.
POR DOE RUN CAYMAN LTD.
/s/ Xxxxxx Xxxx Xxxxxxxxxx Xxxxx
--------------------------------
Xxxxxx Xxxx Xxxxxxxxxx Xxxxx
POR EL ESTADO
[SEAL] /s/ XXXXXX XXXXXXX XXXXXX
-------------------------
/s/ [ILLEGIBLE] [SEAL] XXXXXX XXXXXXX XXXXXX
------------------ Secretario General
[ILLEGIBLE] CONITE
ABOGADA
Reg. [ILLEGIBLE] 20682
LEGAL STABILITY AGREEMENT WITH DOE RUN CAYMAN LTD. Witnesseth
hereby the Legal Stability Agreement entered into by and between the STATE OF
PERU, duly represented by Mr. Xxxxxx Xxxxxxx Xxxxxx, Secretary General of the
National Commission for Foreign Investments and Technologies-CONITE, authorized
for such purposes by CONITE Board of Directors Resolution No. 001-93-EF/35,
dated February 1, 1993, domiciled for purposes hereof at Xx. Xxxxxxx Xxxx
Xxxxxxx Xx. 000, 4th Floor, Lima, hereinafter referred to as the STATE, as party
of the first part; and DOE RUN CAYMAN LTD., a company incorporated and existing
under the laws of Cayman Islands, domiciled for purposes hereof at Xxxx Xxxxxx
Xxx Xx. 000, Xxxxxx Xxxxx, Xxxxx Xxxxxx Xxxxxx, Xxxxx Xxxxxx, Xxxxxx Islands,
British Xxxx Indies, Great Britain, duly represented by Mr. Xxxxxx Xxxx
Xxxxxxxxxx Xxxxx, a Peruvian citizen, identified with Xxxxx'x Registration Card,
No. 01794578, domiciled at Xxxx. Xxxxxxx Xxxxx Xxxx, Xx. 000, Xxxxx Xxxxx, Xxxx,
Xxxx, as per power of attorney in process, hereinafter referred to as DOE RUN,
as party of the second part; under the terms and conditions set forth in the
following clauses: FIRST.- DOE RUN has presented to the National Commission for
Foreign Investments and Technologies-CONITE hereinafter referred to as CONITE, a
request for the signing of a Legal Stability Agreement as authorized by the
provisions set forth in Legislative Decree No. 662, in Title II, and in the
First Chapter of Title V of Legislative Decree No. 757, and in the Regulations
of said Decrees approved by Supreme Decree No. 162-92-EF, dated October 12,
1992, hereinafter referred to as the REGULATIONS. SECOND.- By virtue of the
present Agreement, DOE RUN agrees to the form of investment prescribed in Clause
a) of Article 16 of the REGULATIONS. As such DOE RUN is obligated as follows:
To execute monetary contributions to the Capital of the company
DOE RUN MINING S. R. Ltda., a company incorporated in the city of Lima, Peru,
registered on Filing Xxxx Xx. 000000 of the Book of Corporations of the Registry
of Companies of Registry Office of Lima and Callao, for an amount of
US$2,000,000 (TWO MILLION and 00/100 US DOLLARS) in a term not to exceed October
23, 1997.
To channel the contribution from abroad referred to in numeral 1,
through the National Financial System, as per the certification that shall be
issued by the bank participating in the operation.
0.Xx register its investment, valued in freely convertible
currency, with CONITE. THIRD.- By virtue of the present agreement and while it
is in force, the STATE is bound to guarantee the legal stability for DOE RUN,
regarding the investment referred to in the SECOND CLAUSE hereof, under the
following terms:
The stability of the tax regime regarding the Income Tax, in
keeping what is provided in clause a) of Article 10 of Legislative Decree No.
662, in force at the time of the signing of the present agreement, according to
which the dividends and any other form of profit distribution are not subject to
taxation, pursuant to the provisions set forth in clause a) of Article 25 of the
Income Tax Law, approved by means of Legislative Decree No. 774 and amending
standards in force at the time of signing the present agreement. Said Law and
amendments thereof do not xxxx a tax on remittances abroad of the amounts that
correspond to DOE RUN for any of the matters included in this numeral.
The stability of the regime of free availability of foreign
exchange pursuant to clause b) of Article 10 of Legislative Decree No. 662,
signifying that DOE RUN will have free access to foreign exchange on the foreign
exchange market at the most favorable rate of exchange that it may obtain, and
the State may not apply to it, with regard to the investment referred to in the
SECOND CLAUSE hereof, any regime or mechanism to regulate the foreign exchange
market, that may limit or restrict these rights or that may imply a less
favorable treatment for DOE RUN than that which is applied to any individual or
corporate body to carry out any kind of exchange operation.
The stability of the rights to freely remit profits and capitals
pursuant to what is established in clause b) of Article 10 of Legislative Decree
No. 662, signifying that DOE RUN may transfer abroad in freely convertible
currency, without requiring prior authorization from any entity of the Central,
Regional or Local Governments, as long as the corresponding investment has been
registered with the Governing National Organism, and all the corresponding tax
obligations have been fulfilled, and the STATE may not establish any restriction
or limitation whatsoever to this right, the following:
The entirety of its capitals originating abroad, including the
capital originating from the sale of its shares, participations or rights on
companies, the reduction of capital and the partial or total liquidation of
companies originating from the investment to which the SECOND CLAUSE hereof
refers;
The entirety of the dividends or confirmed net profits
originating from the investment referred to in the SECOND CLAUSE hereof, as well
as profits obtained in exchange for the use or usufruct of properties physically
located in the country and destined to said investment; and,
The entirety of the royalties and retributions for the use and
transfer of technology, trademarks and patents, and any other industrial
property element authorized by the Governing National Organism.
4. The stability of the right to use the most favorable exchange
rate pursuant to the provisions set forth in clause b) of Article 10 of
Legislative Decree No. 662, signifying that DOE
2
RUN will have access to foreign exchange on the foreign exchange
market at the most favorable rate of exchange that it may obtain, and the STATE
may not obligate it carry out its exchange operations under a regime or
mechanism granting a less favorable treatment than what is applied to any
individual or corporate body to carry out any exchange operation, in accordance
with the following:
When it is a matter of conversion of foreign to national
currency: DOE RUN may sell the foreign currency to any individual or
corporate body at the most favorable "buy" exchange rate available on the
foreign exchange market, at the time of execution of the foreign exchange
operation; and,
When it is a matter of conversion of national to foreign
currency: DOE RUN may buy the national currency from any individual or
corporate body at the most favorable "sale" exchange rate available on the
foreign exchange market, at the time of execution of the foreign exchange
operation.
5. The stability of the right to non-discrimination in accordance
with the stipulations set forth in clause c) of Article 10 of Legislative Decree
No. 662, which provide that the STATE, at any level, whether entities or
companies of the Central Government, Regional or Local Governments, may not
apply to DOE RUN any differential treatment due to its nationality, the sector
or types of economic activity it carries out, or the geographical location of
the company in which it invests, nor in the following matters:
foreign exchange, in such a way that the STATE may not apply to
DOE RUN, as regards the investment referred to in the SECOND CLAUSE hereof, a
foreign exchange regime that implies a less favorable treatment than what is
applied to any individual or corporate body to carry out any kind of foreign
exchange operation;
prices, tariffs or non-Customs duties, in such a way that the
STATE may not apply differential amounts or rates to DOE RUN , as regards the
investment referred to in the SECOND CLAUSE hereof;
manner of business incorporation, in such a way the STATE may
not demand of DOE RUN that the company DOE RUN MINING X.X.Xxxx., in which it
is going to invest, adopt a given manner of incorporation;
its condition as an individual or corporate body, in such a
way that the STATE may not apply a differential treatment to DOE RUN on this
regard; and,
no other cause of equivalent effects, as is the case of the
application of discriminatory treatment against DOE RUN resulting from any
combination of the various paragraphs of this numeral.
3
This numeral is applicable without prejudice to the limitations
established in Article 3 of the REGULATIONS.
FOURTH.- DOE RUN commits itself to present within forty-five (45)
calendar days, the power of attorney, formalized and registered in the
corresponding registry, which duly empowers Mr. Xxxxxx Xxxx Xxxxxxxxxx Xxxxx, to
sign this Legal Stability Agreement.
FIFTH.-In addition, and pursuant to the provisions set forth in
the SECOND CLAUSE hereof, DOE RUN assumes the obligation to accredit that it has
complied with carrying out the monetary contribution of US$2,000,000 (TWO
MILLION AND 00/100 US DOLLARS) to the capital of the company DOE RUN MINING
X.X.Xxxx. by presenting to CONITE a copy of the Testimony of the Public Deed of
the Capital Increase and Amendment of the Articles of Incorporation of the
company, duly registered in the corresponding registry, as well as a
certification issued by the bank that participates in the operation. The
obligation referred to in the foregoing paragraph must be accredited within a
maximum period of thirty (30) calendar days counted as of the deadline for
compliance, in line with what is established in the SECOND CLAUSE hereof.
Non-compliance with the same constitutes a cause for the termination of the
Agreement.
SIXTH.- The present Legal Stability Agreement shall have a term
of force of ten (10) years as of the date of its signing. Consequently, it may
not be amended unilaterally by either of the parties during said period, even in
the event of modification of national legislation, whether said amendments are
more beneficial or prejudicial to either of the parties than what is convened in
this Agreement.
SEVENTH.- DOE RUN shall have the right to waive, one time only,
the legal stability regime granted to it by the authority of this Agreement, and
to this end it must formalize said waiver by means of a written communication to
CONITE; said waiver shall become effective as of the date of reception of the
communication by CONITE. If DOE RUN opts to exercise the right of waiver of the
Stability Agreement granted to it pursuant to this Clause, it shall
automatically become subject to ordinary legislation.
EIGHTH.- DOE RUN shall have the right to assign its contractual
position in this Agreement. For said contractual position assignment to be
valid, DOE RUN must obtain the corresponding prior authorization from the
CONITE, which must be formalized by an Addendum to this Agreement. It is
understood that the contractual position assignment that DOE RUN may make to
another investor, does not extend the term of the Agreement referred to in the
SIXTH CLAUSE hereof.
NINTH.- This Legal Stability Agreement may be amended by common
agreement between the parties, except in what regards its term of effect as
established in the SIXTH CLAUSE hereof.
4
The amounts of the contributions may not be modified either under
the limit established in clause a) of Article 16 of the REGULATIONS.
To this end, DOE RUN. shall present a request to CONITE, which
shall be processed in line with the procedure followed for the signing of this
Agreement.
TENTH.- It being the intention of the parties that problems
arising in relation to the fulfillment of this Agreement be resolved in the most
expeditious manner possible, it is hereby agreed that any litigation,
controversy, claim or complaint between the parties, related to the
interpretation, execution or validity of this Agreement, shall be resolved
through legal arbitration.
The arbitration will be carried out in the city of Lima, through
the establishment of an Arbitration Court comprised of three members of whom
each of the parties will name one and the two so designated members will in turn
name the third. The arbitrators are expressly empowered to resolve the
controversy subject to the arbitration. If one party fails to name an arbitrator
within ten (10) days of receipt of the request of the party or parties for an
arbitration, or if within an equal period of ten (10) days, counted as of the
naming of the last arbitrator by the parties, the two arbitrators do not reach
an agreement regarding the third arbitrator, the designation of the missing
arbitrator shall be carried out upon the request of either party, by the Chamber
of Commerce of Lima. The duration of the arbitration process shall not exceed
sixty (60) working days, counted as of the date of the designation of the last
arbitrator, and shall be ruled by what is provided in the General Arbitration
Law, approved by Law No. 26572 and/or the standards that substitute or amend it.
The expenses generated by the exercises of what is agreed to in
the present Clause shall be borne in equal parts by the contracting parties.
ELEVENTH.- The following constitute causes for termination as a
matter of law of this Legal Stability Agreement, without needing prior notice:
Non-compliance on the part of DOE RUN with the obligations
established in the SECOND, FOURTH and FIFTH CLAUSES hereof.
Assignment of the contractual position of this Agreement, that
may be made by DOE RUN to another investor without obtaining the
corresponding prior authorization from the CONITE, pursuant to the provisions
set forth in the EIGHTH CLAUSE hereof.
In the event that DOE RUN incurs in one of the previously
mentioned causes of termination of the present Agreement, and if as a result
of the legal stability conferred by the authority of the same agreement DOE
RUN enjoyed a lighter tax burden that would have corresponded to it if it had
not been under the authority of said Agreement, it shall be obliged to
reimburse the
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STATE for the actual amount of the taxes that would have affected it if such
Agreement had not been signed, plus the corresponding surcharges referred to
in the Tax Code. It is understood that in the case referred to in the
foregoing paragraph, if DOE RUN had borne a greater tax burden as a result of
this Agreement, the STATE will have no obligation to refund any sum
whatsoever.
Whereas the parties agree to all of the terms hereof, they
sign it in two copies of equal content, in Lima, on October 21, 1997.
for DOE RUN CAYMAN LTD. for the STATE
Xxxxxx Xxxx Xxxxxxxxxx Xxxxx Xxxxxx Xxxxxxx Xxxxxx
Secretary General of CONITE
Xxxx X. Xxxx Xxxxxxx
CONITE Lawyer
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