Document:

exv10w23

Exhibit
10.23

(ENGLISH TRANSLATION)

CER no. 04/08

RESERVE POWER AGREEMENT – CER

CER No. 04/08

PRODUCT 2010/2025

	 	 	 

	 

	 	RESERVE POWER AGREEMENT – CER, UNDER THE ENERGY AVAILABILITY
TYPE, BY AND BETWEEN UTE ANGÉLICA AND THE ELECTRIC POWER
SALES CHAMBER – CCEE.

On one side, Angélica Agroenergia Ltda – UTE ANGÉLICA, company authorized to generate electric
power, with headquarters at Estrada Angélica, BR 267 Km. 14 s/no., Fazenda Kurupay, Rural Zone, in
the City of Angélica, State of Mato Grosso do Sul, enrolled with the National Registry of Legal
Entities of the Ministry of Finance [CNPJ/MF] under number 07.903.169/0001-09, hereinafter called
SELLER, and, on the other side, the Electric Power Sales Chamber – CCEE, with headquarters at
Alameda Santos 745, 9° andar, in the City of São Paulo, State of São Paulo, enrolled with the
CNPJ/MF under number 03.034.433/0001-56, simply called CCEE, and jointly called the PARTIES, and
individually the PARTY, represented herein by their undersigned legal representatives, under the
terms of their corporate and statutory documents.

WHEREAS:

     1. Articles 3 and 3A of Law no. 10.848 dated March 15, 2004, together with the provisions of
Decree no. 6.353, dated January 16, 2008, establish the conditions for the hiring of RESERVE POWER
for the National Interconnected System – SIN, being the costs associated to such hiring borne by
the USERS by means of the EER payment;

     2. The contracting of RESERVE POWER is done by means of auctions promoted by the National
Electric Power Agency – ANEEL, directly or indirectly, according to the guidelines of the Ministry
of Mines and Energy – MME;

     3. The Electric Power Sales Chamber – CCEE, under the terms of Decree no. 5.177 dated August
12, 2004, with the wording given by Decree no. 6.353, of 2008, has the responsibility of
celebrating agreements associated to the RESERVE POWER in the capacity of representative of the
USERS;

     4. The SELLER participated of the 1st Auction to hire Reserve Power originated from
Biomass (“AUCTION”), promoted by ANEEL, held on August 14, 2008, according to the Auction
Announcement no. 001/2008-ANEEL (the “BID ANNOUNCEMENT”), and under the terms of Law no. 10.848,
dated March 15, 2004, of Law no. 11.488, dated June 15, 2007,

 

 

of Decree no. 5.163, dated July 30, 2004, of Decree no. 6.353 dated January 16, 2008, of the
MME Administrative Rules no. 331, dated December 4, 2007, no. 6 dated January 9, 2008, no. 20 dated
January 18, 2008, no. 29, dated January 29, 2008, no. 69, dated February 28, 2008 and no. 141
dated April 2nd, 2008, of the Confirmation Resolution no. 644, dated April
22nd, 2008 and other applicable provisions;

     5. Under the terms of the corresponding Authorization granted by the Granting Power, as
provided by the BID ANNOUNCEMENT, the SELLER was authorized to generate electric power, by means of
the operation of the Thermo electrical Plant(s) UTE ANGÉLICA, located respectively at Estrada
Angélica, BR 267, Km. 14, s/no number, Fazenda Kurupay, Angélica – MS, with installed power of 32,0
MW;

     6. The hiring of the RESERVE POWER shall observe the provisions of the legislation , in the
SALES CONVENTION, in the RULES and applicable SALES PROCEDURES;

The PARTIES have agreed to celebrate the present RESERVE POWER AGREEMENT – CER, hereinafter called
“AGREEMENT” or “CER”, which will be ruled by the provisions of Law no. 10.848 of 2004, of Law no.
11.488, of 2007, of Decree no. 5163 of 2004, of Decree no. 6.353 of 2008, and other applicable
legal and regulatory provisions, as well as by the SALES RULES AND PROCEDURES, and according to the
following clauses and conditions: -

CLAUSE 1 – OBJECT AND ATTACHMENTS OF THE AGREEMENT

1.1 The AGREEMENT has the purpose of establishing the terms and conditions which will rule the
hiring of ELECTRIC POWER produced by the PLANT(s) in the CONTRACTED POWER amounts indicated in the
schedules of sub clause 6.1, as of the SUPPLY INITIAL DATE.

1.2 The Parties of the present AGREEMENT are:-

	 	a)	 	ATTACHMENT I – SCHEDULE WITH REFERENCES OF THE PLANT(S);
	 
	 	b)	 	ATTACHMENT II – DEFINITIONS; and
	 
	 	c)	 	ATTACHMENT III – AUTHORIZATION ACT, which will be incorporated to the AGREEMENT
by reference, as if transcribed therein.

1.3 In case of divergence between the provisions of the AGREEMENT and its ATTACHMENTS, the
provisions of the AGREEMENT shall prevail.

CLAUSE 2 – DEFINITION AND ASSUMPTIONS

2.1 For the perfect understanding and accuracy of the technical terminology used in the AGREEMENT
and its attachments, the terms and expressions written in capital letters when used in the
AGREEMENT shall have the meanings listed in ATTACHMENT II – DEFINITIONS.

2.2 The use of the definitions hereof, in the plural or singular, masculine or feminine, does not
change the meaning assigned thereto in ATTACHMENT II – DEFINITIONS.

 

 

CLAUSE 3 – TYPE OF AGREEMENT

3.1 The AGREEMENT is executed in the ELECTRIC POWER availability type.

3.2 The Point of Delivery of the CONTRACTED POWER shall be the GRAVITY CENTER of the SUBMARKET,
where the PLANT(s) is(are) located, in the quantities indicated by sub clause 6.1.

3.3 The SELLER is responsible for the operation and maintenance of the PLANT(s), as well as for the
delivery of the CONTRACTED POWER, under the terms of Clauses 5 and 6.

	 	3.3.1	 	As a consequence of the object of the AGREEMENT, all or part of the PHYSICAL
GUARANTEE of the Plant(s) will be committed to the CONTRACTED POWER for the SUPPLY
PERIOD, according to the amounts foreseen in sub clause 6.1, being the remainder free
and clear for other agreements or use by the SELLER.
	 
	 	3.3.2	 	The PHYSICAL GUARANTEE of the PLANT(s) and the corresponding percentage
committed to this AGREEMENT are listed in ATTACHMENT I.

3.4 In consideration of the sale of the CONTRACTED POWER, the SELLER will be entitled to receive
the FIXED REVENUE for each year of supply, as determined by Clause 7.

3.5 The commitment of the SELLER, in terms of delivery of ENERGY, refers exclusively to the
production of ELECTRIC POWER by the PLANT(s) referred to the GRAVITY CENTER of the SUBMARKET where
the PLANT(s) is/are located, in the amount of the CONTRACTED ENERGY(ies).

CLAUSE 4 – DURATION OF THE AGREEMENT AND SUPPLY PERIOD

4.1 The AGREEMENT will become in force on the present date and expires in the last day of the month
of March, 2025 (second month before the month of the start-up of the CONTRACTED POWER DELIVERY
PERIOD BY THE PLANT(s) and the expiry will occur 24 hours after the
last day of March 2025 (second month before the initial month of the CONTRACTED POWER DELIVERY
PERIOD BY THE PLANT(s) .

4.2. THE SUPPLY PERIOD shall be of 15 years and shall be in force for the period under sub-item
4.3, despite the final authorization term by the SELLER.

4.3. The starting SUPPLY PERIOD shall be at midnight of the 1st day of April of the year
2010 (prior month to the starting SUPPLY PERIOD month of the CONTRACTED POWER DELIVERY PERIOD BY
THE PLANT(s) and the ending shall be at midnight of the last day of March of the year 2025 (second
month prior to the starting month of CONTRACTED POWER DELIVERY PERIOD BY THE PLANT(s).

4.4 Should the final term of authorization of the SELLER expire before the end of the SUPPLIES
PERIOD, the successor in title of the corresponding authorization shall take over all obligations
and rights provided in the AGREEMENT.

4.5 The expiry of the AGREEMENT shall not affect any rights or obligations of the PARTIES which
occur before such event, even if its exercise or compliance occurs after the end of the AGREEMENT.

CLAUSE 5 – OBLIGATIONS OF THE PARTIES

5.1 All activities, operations and procedures provided by the AGREEMENT, irrespectively of their
definition and treatment hereunder, shall be done as provided by the

 

 

legislation applicable to the matter, under ANEEL regulations, in the SALES CONVENTION, in the
SALES RULES AND PROCEDURES and in the specific NETWORK PROCEDURES.

5.2 The operational requirements for the delivery of the CONTRACTED POWER shall be fully met by the
SELLER according to the conditions and standards established in the NETWORK PROCEDURES, especially
those related to the installation and operation of the SMF.

	 	5.2.1	 	In relation to the operation of the delivery of the CONTRACTED POWER to SIN,
the SELLER will be responsible for the implementation of all acts required and delivery
of all documents to CCEE, according to the terms and conditions provided in the
applicable SALES PROCEDURES, for purposes of determination of the generation, modeling
of the measurement assets and other purposes related to the accounting and financial
liquidation procedures related to the present AGREEMENT.

5.3 The SELLER is fully liable for all risks, obligations and responsibilities, TAXES, tariffs and
charges, connection, of use of the transmission and distribution and those related to electric
losses due and/or occurred by and between the PLANT(s) and the GRAVITY CENTER of the SUBMARKET
where the PLANT(s) are located.

5.4 Along the SUPPLY PERIOD, the SELLER shall assure the delivery of the CONTRACTED POWER,
exclusively through the generation of ELECTRIC POWER originated from the PLANT(s).

5.5 The occurrence of ENERGY deliveries in amount inferior to the CONTRACTED POWER, during the
determination period comprising the month prior to the month subsequent to the CONTRACTED POWER
DELIVERY PERIOD, shall subject the SELLER to the penalties provided by Clause 14.

	 	5.5.1	 	The delay in entering commercial operation of the generation units of the
PLANT(s) and/or the occurrence of UNAVAILABILITY in the PLANT(s) which may hinder the
POWER delivery in the amounts of CONTRACTED POWER, shall be object of application of
the penalties defined by Clause 14.
	 
	 	5.5.2	 	The amount of POWER not delivered due to the reduced generation of the
PLANT(s) due to systemic requirement, obeying the ONS command, shall not be taken into
consideration in the audit covered by this clause.
	 
	 	5.5.3	 	The amount of undelivered POWER shall not subject the SELLER to financial
exposure in the SHORT TERM MARKET.
	 
	 	5.5.4	 	The POWER delivery determination time established by sub clause 5.5 is limited
to twelve (12) months.

	5.6	 	CCEE shall promote the collection and payment of EER, as well as the management of CONER and
of the RESERVE FUND, aiming at the payment of the FIXED REVENUE established in Clause 7 and
possible monetary increases resulting from arrears, under the terms of Clause 9 hereof.

	5.7	 	CCEE will be subject to possible penalties on the non compliance of the rules provided
hereunder, as well as by the legislation and regulations related to the management of
contracts associated to the RESERVE POWER and the management of CONER and of the RESERVE FUND.

 

 

	5.8	 	Without prejudice of the provisions of sub clauses 5.2 to 5.7, the SELLER and CCEE shall
continue to be obliged to meet the contractual provisions and the provisions of the AGREEMENT,
the applicable legislation, the ANEEL regulations, the SALES CONVENTION, SALES RULES AND
PROCEDURES and in the specific NETWORK PROCEDURES, there being no opposition of perfect
judicial act or acquired right against the regulatory determinations.

	5.9	 	The delay in entering operations of the distribution or transmission facilities required for
the flow of the ENERGY produced by the PLANT(s), provided it is checked by ANEEL, does not
release CCEE from the obligations provided by clause 7, exempting the SELLER from the
penalties established under Clause 14.

CLAUSE 6 – CONTRACTED POWER

6.1 For the purposes of the AGREEMENT, the SELLER shall deliver to the GRAVITY CENTER of the
SUBMARKET where the PLANT(s) is/are located, the CONTRACTED POWER in the amounts specified in the
following schedules.

Schedule 1 – ANGÉLICA PLANT

Power Contracted from UTE ANGÉLICA, located in the Southeast/Centre-West Submarket

	 	 	 	 	 	 	 	 	 
	 	 	CONTRACTED POWER	 	 	CONTRACTED POWER	 
	Year of Supply	 	(Avg. MW)	 	 	(MWh)	 
	1st
	 	 	10	 	 	 	87,600.000	 
	2nd
	 	 	10	 	 	 	87,600.000	 
	3rd
	 	 	10	 	 	 	87,600.000	 
	4th
	 	 	10	 	 	 	87,600.000	 
	5th
	 	 	10	 	 	 	87,600.000	 
	6th
	 	 	10	 	 	 	87,600.000	 
	7th
	 	 	10	 	 	 	87,600.000	 
	8th
	 	 	10	 	 	 	87,600.000	 
	9th
	 	 	10	 	 	 	87,600.000	 
	10th
	 	 	10	 	 	 	87,600.000	 
	11th
	 	 	10	 	 	 	87,600.000	 
	12th
	 	 	10	 	 	 	87,600.000	 
	13th
	 	 	10	 	 	 	87,600.000	 
	14th
	 	 	10	 	 	 	87,600.000	 
	15th
	 	 	10	 	 	 	87,600.000	 
	TOTAL
	 	 	150	 	 	 	1,314,000.000	 

	 	6.1.1.	 	The CONTRACTED POWER shall be delivered during the period comprised between April
(first month of the DETERMINATION WINDOW) and December (last month of the DETERMINATION
WINDOW); for the 1st year of the SUPPLY PERIOD; between April, (first month
of the DETERMINATION WINDOW) and December (last month of the DETERMINATION WINDOW) for
the 2nd year of the SUPPLY PERIOD and between April, (first month of the
DETERMINATION WINDOW) and

 

 

	 	 	 	December (last month of the DETERMINATION WINDOW) for the 3rd. year of
the SUPPLY PERIOD.
	 
	 	6.1.2.	 	For the two first years of the SUPPLY PERIOD, the CONTRACTED POWER amounts are
defined based in the percentages of the PHYSICAL GUARANTEE(s) OF THE PLANT(s)
established by the SELLER and shown in ATTACHMENT I hereof.
	 
	 	6.1.3.	 	The monthly POWER allocation produced by the PLANT(s) shall be dealt with in specific
SALES RULES, observing the contractual provisions.

6.2 The POWER delivered by the SELLER to the GRAVITY CENTER shall be accounted for and liquidated
in the SHORT TERM MARKET, being the resources corresponding to such liquidation destined to CONER.

6.3 The CONTRACTED POWER indicated in the AGREEMENT shall not be delivered by other PLANTS of the
SELLER, by another AGENT OF CCEE nor by the set of the AGENTS, as a consequence of the optimized
operation of SIN.

6.4 The SELLER may, at its exclusive discretion, sell the amounts of POWER produced between the
beginning of the commercial operation of the PLANT(s) and the INITIAL SUPPLY DATE with any AGENTS,
in the Free Contracting Environment – ACL, in the SHORT TERM MARKET or, if applicable, in auctions
to acquire POWER, according to the legislation.

6.5 In case of rationing decree, the CONTRACTED POWER amount shall not be reduced.

CLAUSE 7 – PAYMENT OF THE FIXED REVENUE

7.1 Irrespectively of the POWER delivery, the SELLER shall be entitled to receive, as of the
INITIAL DATE OF SUPPLY, in relation to each CONTRACTUAL month, by means of the centralized
financial liquidation procedure conducted by CCEE, one twelfth of the amount of the PLANT(s’) FIXED
REVENUE.

	 	7.1.1	 	The financial resources used to pay the FIXED REVENUE shall be exclusively
originated from CONER.
	 
	 	7.1.2.	 	The payment of the installments of the FIXED REVENUE shall be done by CCEE by means
of credit to the bank account held by the SELLER, opened for such purpose, under no.
82087-3, Branch 0895 of Banco Bradesco S.A., it so being that such bank account can
only be modified by means of prior and express consent of the project sponsor.

7.2 The FIXED REVENUE of the PLANT(s) shall be monetarily updated as of the first day of September
2008 (month subsequent to the month of conduction of the AUCTION), based in the amount of:

 

 

	 	(i)	 	FIXED REVENUE of USINA ANGÉLICA during the first year of supply of R$
13,766,627.41 (thirteen million, seven hundred and sixty-six thousand, six hundred and
twenty-seven reais and forty-one cents), related to August 2008 (AUCTION month).
	 
	 	(ii)	 	FIXED REVENUE of USINA ANGÉLICA during the second year of supply of R$
13,766,627.41 (thirteen million, seven hundred and sixty-six thousand, six hundred and
twenty-seven reais and forty-one cents), related to August 2008 (AUCTION month).
	 
	 	(iii)	 	FIXED REVENUE of USINA ANGÉLICA from the third to the last year of supply of
R $13,766,627.41 (thirteen million, seven hundred and sixty-six thousand, six hundred
and twenty-seven reais and forty-one cents), related to August 2008 (AUCTION month).

7.3 The monetary updating of the FIXED REVENUE of the PLANT(s) shall occur annually, always during
the month of April (month prior to the beginning of the CONTRACTED POWER DELIVERY PERIOD of the
PLANT(s), observing the minimum legal term of twelve months counted as of the first day of the
month of September 2008 (month subsequent to the AUCTION month) observing the following formula:

FIXED REVENUE

RFi
= RF0 x (Ii / I0)

Where:

RFi will be the new Corrected FIXED REVENUE:

RF0 is the reference FIXED REVENUE determined for year “i” as defined by the SELLER
during the AUCTION;

Ii is the IPCA rate for the month of March (Second month before the month of start-up
of the CONTRACTED POWER DELIVERY PERIOD of the PLANT(s)); and

I0 is the IPCA rate for the month of August 2008 (AUCTION month).

	 	7.3.1	 	Six exact digits shall be adopted for the calculations, ignoring the remaining
digits as of the seventh number, inclusive.

7.4 Should the IPCA not be published up to the financial liquidation made by CCEE for the payment
of EER before the USERS, the latest rate published will be used. On the first financial
liquidation after the publication of the index which should have been used, the adjustment of the
FIXED REVENUE will be adopted using such rate and the payments based in the provisional index.

7.5 Should the IPCA be extinguished, another official index will be adopted substituting same will
be adopted, and, in the absence thereof, another with similar feature, as determined by the
Granting Power.

7.6 The SELLER hereby irrevocably declares that the FIXED REVENUE, together with the corresponding
monetary updating rules and payment rules provided by the AGREEMENT, are sufficient for the full
compliance of the obligations provided hereunder.

 

 

7.7 Should new taxes, sectional charges or para-tax contributions or other legal charges be created
after the execution date hereof, or the calculation base and/or rates of the current taxes are
modified so as to increase or reduce the burden of the SELLER, with reflexes in the contractual
balance, the FIXED REVENUE of the PLANT(s) may be adjusted so as to reflect such changes, upward or
downward, which become in force after the confirmation by ANEEL.

CLAUSE 8 – PAYMENT CONDITIONS

8.1 The monthly payment due to the SELLER shall be done by means of financial liquidation for the
payment of EER before the USERS.

8.2 The above financial liquidation mentioned in sub-clause 8.1 shall happen on date defined
through specific SALE PROCEDURE, observing the contractual provisions.

8.3 The monthly amount related to the SELLER’s credit shown in the FINANCIAL LIQUIDATION MAP OF EER
shall be defined on the bases of the FIXED REVENUE of the PLANT(s) established under sub-clause
7.3, including possible monetary additions resulting from arrears.

8.4 The monthly payment due to the SELLER shall be done exclusively with financial resources of
CONER and of the RESERVE FUND.

8.5 The payments due to the SELLER shall be done free from any burden and unauthorized deductions,
including possible financial expenses originated from such payments.

CLAUSE 9 – LATE PAYMENTS AND CONSEQUENT EFFECTS

9.1 Arrears are characterized when the monetary amount obtained by the SELLER, after the financial
liquidation to pay the EER, considering the financial resources available to CONER and RESERVE
FUND, is inferior to the monthly value related to the SELLER’s credit shown in the EER FINANCIAL
LIQUIDATION MAP.

9.2 In case of payment in arrears, the portion not received by the SELLER shall be subject to the
following additions:

	 	(i)	 	Two percent (2%) fine; and
	 
	 	(ii)	 	Interest on arrears at one percent (1%) per month, calculated pro rata die.

9.3 The additions provided by Sub-clause 9.2 shall be accrued to the amount of the late
installments, updated monthly according to the pro rata die fluctuation of the index foreseen by
sub-clause 7.3, related to the previous month, observing the provisions of sub-clause 7.5 and shall
be included in the EER FINANCIAL LIQUIDATION MAP of the subsequent month.

9.4 Should, during the late period, the monetary correction be negative, the fluctuation provided
under sub-clause 9.3 shall be deemed null.

 

 

CLAUSE 10 – TERMINATION

10.1 In spite of the irrevocable nature of the AGREEMENT, it may be legally terminated at the
discretion of the innocent PARTY, upon the occurrence of any of the following:

	 	I.	 	If bankruptcy, dissolution or judicial or extrajudicial liquidation is decreed
against the SELLER, by means of a 10 days’ notice; or

	 	II.	 	Should the SELLER’s authorization or legal license issued by the Government or
by the Regulatory authority, mandatory to comply with the activities and obligations
foreseen hereunder, including, without limitation, the concession of public service,
permit or authorization.

10.2 After hearing ANEEL, the occurrence of any of the hypothesis provided by this Clause, if not
remedied within a maximum period of 15 business days counted as of the receipt of written notice,
shall allow the innocent PARTY to consider the AGREEMENT legally terminated.

10.3 Should the AGREEMENT be terminated, the defaulting PARTY hereby obliges to maintain the
innocent PARTY exempt from any obligations and responsibilities under the terms of the AGREEMENT,
observing the provisions of the Sub-clause, being also liable for the payment of any burden
originated from such termination.

10.4 The Contractual termination does not release the PARTIES from their obligations due up to the
termination date and shall not affect or limit any right which, expressly or due to its nature,
shall remain in force after the termination or originated thereby.

CLAUSE 11 – RESPONSIBILITY AND INDEMNITY

11.1 The PARTY that, due to action or omission, motivates the termination of the AGREEMENT due to
the cases mentioned by Clauses 9 and 10 will be obliged to pay the other PARTY, notwithstanding
losses and damages, the applicable termination penalty, calculated pursuant to the formula below:

where:

 : is the sum of FIXED REVENUE(S) of the PLANT(S) in force on the date of termination, under the terms of Clause 7;

VEAR: is the remaining volume of CONTRACTED POWER(S) of the PLANT(S) between the date of
termination and the date of expiration of the PERIOD OF SUPPLY, expressed in MWh;

 

 

 : is the sum of the CONTRACTED POWER(S) of the PLANT(S), expressed in MWh, associated with this AGREEMENT for the entire PERIOD OF SUPPLY; and

Min: represents the function minimum, which calculates the smallest out of two values.

11.2. The defaulter shall, within no late than five business days from the date of the termination,
to make the payment of the amount set forth in sub-clause 11.1, in addition to interest as set
forth by item 9.2.(ii), calculated between the date of calculation of the fine and the date of
effective payment.

11.3. In case of controversy in relation to the payment of the penalty due in case of termination,
as of sub-clause 11.1, the issue shall be submitted to the process of controversy resolution, as of
Clause 12.

11.4. The responsibility of each one of the PARTIES hereunder is, at any title, limited to the
amounts of the respective damage caused thereby.

11.5. For the non-compliance of any obligation under their responsibilities, the PARTIES shall
become subject to the application of the applicable administrative penalties, according to the
applicable legislation, notwithstanding the application of the provisions of the AGREEMENT.

CLAUSE 12 – CONTROVERSY SOLUTION

12.1. A controversy will begin with the CONTROVERSY NOTICE from one PARTY to the other.

12.2. In case of controversies resulting from the AGREEMENT, the PARTIES shall use their best
efforts to solve such controversies amicable within up to 15 business days from the receipt of the
CONTROVERSY NOTICE.

12.3. In case the controversies resulting from the AGREEMENT are not resolved as set forth by
sub-clause 12.2, the PARTIES shall submit such controversies to process of conflict resolution by
means of arbitration, as of the COMMERCIALIZATION CONVENTION and ARBITRATION CONVENTION, under the
terms of Law no. 9.307, dated September 23, 1996, and Article 4 of Law no. 10.848, dated March 15,
2004, being valid as clause of commitment.

CLAUSE 13 – FORTUITOUS CASE OR ACTS OF GOD

13.1. In case the SELLER is not able to comply with any of its obligations due to fortuitous case
or acts of God, under the terms of Article 393 of the Civil Code, the AGREEMENT shall remain in
full force, but the SELLER shall not respond for any consequences form the non-compliance of its
obligations hereunder during the period of occurrence of the event and proportionally to its
effects.

13.2. No event of fortuitous case or acts of God shall exempt the SELLER from its obligations due
prior to the occurrence of the respective event or that have been assumed before such event,
although expiring during the event of fortuitous case or acts of God, especially obligations of
delivery of the CONTRACTED POWER(S) and the payment of eventual penalties.

 

 

13.3. The SELLER, when invoking the occurrence of fortuitous case or acts of God, shall adopt the
following measures:

	 	I.	 	communicate CCEE of the occurrence of the event of fortuitous case or acts of
God, as soon as possible, but never in term longer than five days from the date of
awareness of such event, providing a description of the nature of the event, an estimate
on its duration and the impact on the performance of its contractual obligations;
	 
	 	II.	 	adopt the measures applicable to remedy or attenuate the consequences of the
event, aiming at resuming its contractual obligations within the shortest period
possible;
	 
	 	III.	 	regularly communicate CCEE of its actions and its plan of action to remedy and/or
minimize such consequences;
	 
	 	IV.	 	promptly communicate CCEE of the end of the event of fortuitous case or acts of
God and respective consequences; and
	 
	 	V.	 	support all facts and actions with documentation or record available.

CLAUSE 14 – PENALTY FOR THE NON-DELIVERY OF POWER

14.1. The annual reimbursement due by the SELLER in case of delivery of POWER in amounts below
those of the CONTRACTED POWER(S), in the period mentioned in sub-clause 5.5, shall be calculated
by:

where:

RESSi: this is the reimbursement value, expressed in R$, as a result of the delivery of POWER in
amounts below those of the CONTRACTED POWER(S) (ECi), in each year of supply “i”;

ECi: this is the sum of the CONTRACTED POWER(S), in each year of supply “i”;

ENFi: represents the power not supplied, in each year of supply “i”, obtained from the difference,
in MWh, between the sum of the CONTRACTED POWER(S) (ECi) and the amount of POWER delivered by the
SELLER during the period established in sub-clause 5.5.

j: is a counter that represents the number of times, throughout the PERIOD OF SUPPLY, in which the
power not supplied (ENF) was greater than 10% (ten percent) of the sum of the CONTRACTED POWER(S)
(ECi). Every year in which such occurrence was verified, the value of “j” will be increased one
unit, with the initial value of “j” being equal to 0 and limited to 4;

Pmedn: is the average value of the Difference Settlement Price (“PLD”) related to the period “n” of
calculation of the POWER delivered by the SELLER, expressed in R$/MWh;

 

 

RAZi: is the ratio between the sum of the FIXED REVENUE(S) of the PLANT(S), expressed in R$/year,
and the sum of the CONTRACTED POWER(S) (ECi), expressed in MWh/year, for year of supply “i”.

14.2. The calculation of the power not supplied, defined in sub-clause 14.1, shall occur at the end
of the month following that of the expiration of the PERIOD OF DELIVERY OF THE CONTRACTED POWER(S),
considering that the penalty, if due, shall be applied by CCEE immediately after the calculation
mentioned in this sub-clause, according to the applicable COMMERCIALIZATION RULES AND PROCEDURES.

CLAUSE 15 – MISCELLANEOUS

15.1. This AGREEMENT is signed on an irrevocable and unchangeable basis, for the term of
effectiveness defined in Clause 4, notwithstanding the provisions contained in Clauses 10 and 11.

15.2. This AGREEMENT shall not be amended, except if by means of written amendment signed by the
PARTIES, observing the provisions of Law no. 10.848, dated 2004, Law no. 11.488, dated 2007, Decree
no. 5.163, dated 2004, Decree no. 6.353, dated 2008, and the other legal and regulatory provisions
applicable.

15.3. Assignment of rights and/or obligations under this AGREEMENT are authorized in the cases of
corporate reorganization (split, merger, incorporation, creation of subsidiary, etc.) of the
SELLER, with the express consent of CCEE and execution of the Term of Amendment previously agreed
by ANEEL, observing the conditions agreed in this AGREEMENT, especially the FIXED REVENUE(S).

15.4. In case of change of ownership of the authorization of the SELLER, observing the provisions
of item II of sub-clause 15.7, and observing the conditions agreed in the AGREEMENT, the
subrogation of the rights and obligations resulting from this AGREEMENT is previously and expressly
ensure, against prior consent of CCEE.

15.5. The SELLER may assign the credit rights resulting from the AGREEMENT as a collateral for loan
agreements related to the PLANT, with the prior consent of CCEE.

15.6. No delay or tolerance, by any of the PARTIES, in relation to the exercise of any right,
power, privilege, or remedy contained in the AGREEMENT shall not be deemed as likely to harm such
right, power, privilege or remedy, nor will be construed as waiver thereto or novation of any
obligation(s).

15.7. Notwithstanding the other obligations set forth in the AGREEMENT, the PARTIES undertake to:

	 	I.	 	observe and strictly comply with the legislation applicable to their corporate
activities and to the activities to be performed under the terms of this AGREEMENT;
	 
	 	II.	 	obtain and keep duly valid and in force, during the term of effectiveness of the
AGREEMENT, all the licenses and authorizations applicable to its corporate activities
and/or the compliance of the obligations, including in relation to the grant of
authorization assumed hereunder, except if such situation is not modified by a COMPETENT
AUTHORITY and, in this case, the PARTIES undertake to adopt a

 

 

	 	 	 	contractual alternative that preserves the economic and financial effects of the
AGREEMENT, pursuant to what has been originally agreed; and
	 
	 	III.	 	inform the other PARTY, within the maximum deadline of 48 hours from the date of
awareness of the event, at any title, of any nature, that may represent full and
punctual compliance of the obligations assumed under the AGREEMENT.

15.8. The SELLER undertakes not to enter into any agreements of availability or sale of power, nor
to amend those currently existing, with the purpose of assuming any commitments of availability,
supply, or provision of power in amounts that impede or hinder the compliance of the object of the
AGREEMENT.

15.9. Any notice or other communication from one PARTY to the other regarding the AGREEMENT shall
be made in writing, in Portuguese, and may be delivered or submitted by means of registered letter,
fax, or e-mail, in any with formal proof of receipt, to the added and to the care of the legal
representatives and operating representatives, to wit:

If to the SELLER:

c/o: LEONARDO RAUL BERRIDI

Tel.: (11) 3079-5400

Fax.: (11) 3019-3683

E-mail: iberridi@adecoagro.com

If to CCEE:

c/o: AUCTION AND SETTLEMENT MANAGEMENT

Tel.: 0800-100008

Fax.: (11) 3175-6039

E-mail: atendimento@ccee.org.br

15.10. In case any of the provisions set forth in the AGREEMENT is declared illegal, invalid, or
unenforceable, the remaining provisions will not be affected, and must remain in full force and
effectiveness, and in such case, the PARTIES hereby undertake to adopt a measure that replaces and
meets the objectives of the provision deemed illegal, invalid, or unenforceable, and that maintain,
to the extent possible, in all circumstances, the balance of the commercial interests of the
PARTIES.

15.11. This AGREEMENT shall be homologated by ANEEL, as well as any eventual amendments or
alterations.

15.12. This AGREEMENT is acknowledged by the PARTIES at an executive title, as of Article 585, item
II, of the Brazilian Civil Procedure Code, for the effects of collection of the amounts due.

15.13. This AGREEMENT shall be governed and construed, in all aspects, by the Brazilian
legislation.

15.14. Observing the provisions of Clause 12, the PARTIES elect the Court of the Judicial District
of CCEE, expressly renouncing any other, for more privileged it may be, with the specific purpose
of adoption of eventual coercive or precautionary measures deemed

 

 

necessary by the PARTIES, as well as for the eventual execution of arbitration sentence or request
for decree of nullity of arbitration sentence.

In witness whereof, the PARTIES sign this instrument.

São Paulo, February 6, 2009.

SELLER:

	 	 	 

	Digitally signed by: /s/ Cheng Gonk Vim

	 	Digitally signed by: /s/ Cheng Gonk Vim
	CHENG GONK VIM

	 	CHENG GONK VIM
	Reason: I am approving this document

	 	Reason: I am approving this document
	Location:

	 	Location:
	Date: 06/02/2009 – 12:02

	 	Date: 06/02/2009 – 12:03

CCEE:

[blank]

WITNESSES:

	 	 	 

	Digitally signed by: /s/ Ricardo Takeshi Kato

	 	Digitally signed by: /s/ Joao Vitor Costa
	Ricardo Takeshi Kato

	 	Joao Vitor Costa
	Reason: I am approving this document

	 	Reason: I am approving this document
	Location:

	 	Location:
	Date: 06/02/2009 – 11:58

	 	Date: 06/02/2009 – 11:59

 

 

ATTACHMENT
I TO THE RESERVE POWER AGREEMENT – CER

1) TABLE OF TECHNICAL REFERENCES

1. PERIOD OF DELIVERY OF THE CONTRACTED POWER(S) of the PLANT(S)

	 	(i)	 	1st year of the PERIOD OF SUPPLY: May to November
	 
	 	(ii)	 	2nd year of the PERIOD OF SUPPLY: May to November
	 
	 	(iii)	 	after the 3rd year of the PERIOD OF SUPPLY: May to November

2. Time window for the calculation of POWER delivered by the SELLER

	 	(i)	 	1st year of the PERIOD OF SUPPLY: April to December
	 
	 	(ii)	 	2nd year of the PERIOD OF SUPPLY: April to December
	 
	 	(iii)	 	after the 3rd year of the PERIOD OF SUPPLY: April to December

 

 

ANGÉLICA PLANT

1. Name of PLANT: ANGÉLICA

	2.	 	Location: Estrada Angélica, BR 267 Km 14, s/no,
Fazenda Kurupay, Angélica – MS
	 
	3.	 	Submarket: Southeast / Mid-West
	 
	4.	 	Installed Power: 32.0 MW
	 
	5.	 	Fuel: biomass
	 
	6.	 	Physical Guarantee: 18.0 MWavg
	 
	7.	 	Declaration of Inflexibility: 18.0 MWavg
	 
	8.	 	Percentage of the total PHYSICAL GUARANTEE of the PLANT committed with this AGREEMENT

	 	(i)	 	in the first year of the PERIOD OF SUPPLY (2010): 55.56%
	 
	 	(ii)	 	in the second year of the PERIOD OF SUPPLY (2011): 55.56%
	 
	 	(iii)	 	after the third year of the PERIOD OF SUPPLY (2012): 55.56%

	9.	 	Unitary Variable Cost (Cvar): 0.00 R$/MWh (zero)
	 
	10.	 	Scheduled Unavailability: 0.0%
	 
	11.	 	Equivalent Fee of Forced Unavailability: 3.0%
	 
	12.	 	Maximum Capacity Factor: 100.0%

Monthly POWER* availability (MWh)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year of Supply	 	Jan	 	 	Feb	 	 	Mar	 	 	Apr	 	 	May	 	 	Jun	 	 	Jul	 	 	Aug	 	 	Sep	 	 	Oct	 	 	Nov	 	 	Dec	 
	1st year
	 	 	0,0	 	 	 	0,00	 	 	 	0,00	 	 	 	0,00	 	 	 	30,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	0,0	 
	2nd year
	 	 	0,0	 	 	 	0,00	 	 	 	0,00	 	 	 	0,00	 	 	 	30,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	0,0	 
	after
3rd year
	 	 	0,00	 	 	 	0,00	 	 	 	0,00	 	 	 	0,00	 	 	 	30,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	31,0	 	 	 	0,0	 

 

			
	*	 	Values indicated by the SELLER and contained in the Technical Qualification issued by EPE

 

 

ATTACHMENT
II TO THE RESERVE POWER AGREEMENT – CER

DEFINITIONS

CCEE AGENT or AGENT: concessionaire, holder of permission for authorized services and installations
of electric power and consumers members of CCEE.

ANEEL: National Agency of Electric Power, autarchy under special regimen established by Law no.
9.427, dated 1996, modified by Law no. 10.848, dated 2004, responsible for the regulation, control,
and inspection of the electric power services and installations;

AUTHORIZATION ACT: act of grant of authorization for the generation of electric power, issued by
the Granting Power;

COMPETENT AUTHORITY: any government entity with competence to interfere with this AGREEMENT or with
the activities of the PARTIES;

SETTLEMENT BANK: financial institution holding the CONER and the RESERVE FUND, hired by CCEE to
proceed with the financial liquidation of the amounts informed in the EER FINANCIAL LIQUIDATION
MAP;

CHAMBER OF ARBITRATION: entity elected by the AGENTS and by CCEE for the purposes of structuring,
organizing, and administering the conflict resolution process that, in the strict exercise of the
rights available, shall resolve any conflicts by means of arbitration, under the terms of the
Commercialization Convention and the Buy-Laws of CCEE.

ELECTRIC
POWER SALES CHAMBER – CCEE: a private legal entity with non-profitable purposes acting
under authorization of the Granting Power and regulated and inspected by ANEEL, according to the
COMMERCIALIZATION CONVENTION, with the attribution of entering into agreements associated with
RESERVE POWER, under the terms of Decree no. 5.177, dated August 12, 2004, with wording as of
Decree no. 6.353, dated January 16, 2008;

GRAVITY CENTER: virtual point defined by the COMMERCIALIZATION RULES related to the SUBMARKET where
the PLANT is located and the delivery of the CONTRACTED POWER will occur;

RESERVE POWER ACCOUNT– CONER: bank account managed by CCEE for the conduction of operations
associated with the contracting and use of RESERVE POWER by the USERS, as of Article 5 of Decree
no. 6.353, dated 2008, and applicable rules;

RESERVE POWER AGREEMENT – CER: this agreement, signed between the SELLER and CCEE;

ARBITRATION CONVENTION: instrument signed by the agents of CCEE and by CCEE, under which both
undertake to submit conflicts to the CHAMBER OF ARBITRATION, approved by the Resolution of
Homologation no. 531, dated August 7, 2007;

COMMERCIALIZATION CONVENTION: legal instrument instituted by Normative Resolution ANEEL no. 109,
dated October 26, 2004, under the terms of Law no. 10.848, dated March 15, 2004, Decree no. 5.163,
dated July 30, 2004, and Decree no. 5.177, dated August 12, 2004;

DATE OF BEGINNING OF SUPPLY: date corresponding to the beginning of the PERIOD OF SUPPLY of this
AGREEMENT;

 

 

RESERVE POWER FEE – EER: specific fee for incurring costs resulting from the contracting of reserve
power, including administrative, financial, and tributary costs, to be divided by the USERS in the
SIN, proportionally to the parcel of the fee in name of such AGENTS, as measured by CCEE on an
annually basis, under the terms of Law no. 10.848, dated 2004, and Decree no. 6.353, dated 2008;

RESERVE POWER: POWER destined to increasing the safety in the supply of POWER to the SIN;

ELECTRIC POWER or POWER: quantity of active electric power during any period of time, expressed in
MWh;

CONTRACTED POWER: amount of POWER, expressed in MWavg and MWh, to be delivered by the SELLER,
exclusively against generation of POWER from the PLANT, as of the number of BATCHES agreed in the
AUCTION, under the terms of this CER;

RESERVE FUND: fund managed by CCEE to which the financial resources available at CONER will be
transferred, except the parcel corresponding to the provisions of Article 5, item VI of Decree no.
6.353, dated 2008, which may be operated by the SETTLEMENT BANK after the process of centralized
financial liquidation, up to the limit of the credits informed by CCEE in the MAP OF FINANCIAL
LIQUIDATION OF EER;

PHYSICAL GUARANTEE: the amount, in MWavg, equivalent to the maximum amount of POWER related to the
PLANT that can be used for proving ballast for commercialization of POWER through agreement,
established as of Directive MME no. 303, dated November 18, 2004;

UNAVAILABILITY: state in which the unit of generation is not available for operation in the
conditions determined in the dispatch orders;

IPCA: National Price Index to Broad Consumer, disclosed by Fundação Instituto Brasileiro de
Geografia e Estatística;

AUCTION: bidding process for the contracting of RESERVE POWER, governed by Call to Auction no.
001/2008-ANEEL and correlated documents;

BATCH: amount of POWER equal to 1.0 MWavg, which represents the smallest parcel negotiated in the
AUCTION;

EER FINANCIAL LIQUIDATION MAP: Electronic document issued by the Superintendence of CCEE,
responsible for informing all amounts to be operated by the SETTLEMENT BANK, individualizing the
debts and credits related to the SELLER and USERS;

SHORT TERM MARKET: segment of CCEE where the difference between the amounts of electric power
contracted and registered by the AGENTS OF CCEE and the amounts of generation or consumption
effectively verified and attributed to the respective AGENTS OF CCEE are traded.

CONTROVERSY NOTICE: formal document destined to communicate the PARTIES of controversies applicable
to the provisions of this AGREEMENT and/or related thereto;

ONS: National Operator of the Electric System, responsible for the coordination, supervision, and
control of the operation and transmission of electric power of the SIN;

PERIOD OF DELIVERY OF THE CONTRACTED POWER: period in which the PLANT has availability of
generation, according to the amounts declared by the SELLER and contained in the Technical
Qualification issued by EPE;

 

 

PERIOD OF SUPPLY: corresponding to the interval of time of 15 years from the DATE OF BEGINNING OF
THE SUPPLY;

PLD: Difference Settlement Price;

COMMERCIALIZATION PROCEDURES: set of rules approved by ANEEL that define the conditions,
requirements, events, and terms related to the commercialization of electric power under the CCEE;

NETWORK PROCEDURES: documents elaborated by the ONS with the participation of agents and approved
by ANEEL, which establish the procedures and technical requirements necessary for the planning,
implementation, use, and operation of the SIN, and for defining the responsibilities of the ONS and
of the agents;

FIXED REVENUE: annual remuneration value of the PLANT, presented by the SELLER in the AUCTION,
expressed in Reais per year, including, among others, at the discretion of the SELLER, (i) cost and
remuneration of the investment (return internal rate), (ii) costs of connection and use of the
system of distribution and transmission; (iii) fixed costs of operation and maintenance of the
PLANT and other eventual variable costs, (iv) costs with insurance and guarantees of the PLANT and
financial commitments of the SELLER, and (v) TAXES and direct and indirect charges necessary for
the execution of the object of this AGREEMENT;

COMMERCIALIZATION RULES or RULES: set of operating and commercial rules and their algebraic
formulations defined by ANEEL, and of obligatory compliance by the AGENTS OF CCEE, applicable to
the commercialization of electric power under the CCEE;

INVOICING MEASUREMENT SYSTEM or SMF: set of equipment necessary for the measurement of the
electrical units and set of measure meters, potential transformers, and current transformers
necessary for measuring active and reactive power, active and reactive potency, voltage, and other
electrical units, as of the technical specification specified;

NATIONAL INTERCONNECTED SYSTEM or SIN: set of facilities and equipment that allow the supply of
POWER in the regions of the country electrically interconnected, according to the applicable
regulation;

SUBMARKET: division of the National Interconnected System – SIN to which a specific PLD is
established and whose frontiers are defined as a result of the presence and duration of relevant
restrictions of transmission to the flows of electric power of the SIN;

TAXES: all taxes, fees and contributions levied upon the object of this AGREEMENT, excluding any
other currently existing or that may be created over the net profit or result of any of the
PARTIES. Such exclusion comprises, but not limited to, the tax over revenue of legal entity, social
contribution over net profit or contributions over financial operations;

PLANT: industrial facility described in ATTACHMENT I hereto, destined to the production of electric
power, resulting from thermal source of biomass;

END USERS OF THE ELECTRIC POWER OF SIN (“USERS”): all captive consumers (represented by the
distribution agents), free consumers, special consumers set forth in § 5 of Article 26 of Law no.
9.427, dated 1996, auto-producers in the parcel of POWER resulting from the interconnection with
SIN, exporters, and generators with profile of consumption within CCEE.

SELLER: holder of authorization for the generation of POWER with BATCHES negotiated in the AUCTION.exv10w24

Exhibit 10.24

(ENGLISH TRANSLATION)

AGREEMENT FOR POWER PURCHASE WITH INCENTIVES

CEMIG GT/MONTE ALEGRE

AGREEMENT FOR POWER PURCHASE WITH INCENTIVES EXECUTED BETWEEN USINA MONTE ALEGRE LTDA. AND CEMIGA
GERAÇÃO DE TRANSMISSÃO S.A.

By this instrument,

On the one side, USINA MONTE ALEGRE LTDA., with head office at Fazenda Monte Alegre, in the city of
Monte Belo, State of Minas Gerais, CEP 37140-000, enrolled with CNPJ under No. 22.587.687-0001/46,
herein represented in accordance with its Articles of Association, hereinafter called “SELLER”; and

On the other side, CEMIG GERAÇÃO E TRANSMISSÃO S.A., with head offices at Avenida Barbacena, No.
1200, in the City of Belo Horizonte, State of Minas Gerais, enrolled with CNPJ under
No.06.981.176/0001-58, herein represented in accordance with its By-laws, hereinafter called
“PURCHASER”;

Individually called PARTY, and jointly called PARTIES,

WHEREAS

	a)	 	the legislation applicable to the Brazilian electric sector, especially the one contained in
Laws No. 9.074, of July 7, 1995 and No. 9.648 of May 27, 1998 and No. 10.848 of 03.15.2004, in
Decrees No. 5.163 of July 30, 2004 and No. 2.655 of July 2, 1998 and No. 2.003, of September
10, 1996 and in ANEEL’s (Brazilian Electricity Regulatory Agency) Resolutions;
	 
	b)	 	SELLER has or will have electric power deriving from SOURCES SUBJECT
TO INCENTIVES;
	 
	c)	 	PURCHASER proceeded to the public calls 02/2009 for the purchase of such
power;
	 
	d)	 	PURCHASER is CCEE’s (Chamber of Electric Power commercialization)
agent;
	 
	e)	 	SELLER participated and won bidding 02/2009 promoted by PURCHASER.
	 
	f)	 	SELLER and PURCHASER will maintain a contract relationship proper for the legislation
pertinent to the Brazilian Electricity Regulatory Agency — ANEEL, to COMMERCIALIZATION
CONVENTION of CCEP: COMMERCIALIZATION RULES and/or any other ones that shall succeed them.

They decided to execute this Agreement for Power Purchase with Incentives, hereinafter called
“AGREEMENT”, which shall be governed by the following clauses and conditions:

 

 

SECTION I — DEFINITIONS

CLAUSE ONE — Aiming at the perfect understanding and accuracy in the technical terminology used in
this AGREEMENT, the terms and expressions are hereby defined in capital letters listed in
ATTACHMENT I — Technical Nomenclature and is made a part hereof, duly initialed by the PARTIES.

Paragraph One — The use of the definitions stated on this AGREEMENT, in plural or in singular, in
the masculine or in the feminine, will not change the meanings attributed to the same.

Paragraph Two — In case of divergences between the clauses stated on this agreement and the terms
set forth in its ATTACHMENT I, the clauses hereof shall prevail.

SECTION II — OBJECT

CLAUSE TWO — The object of this AGREEMENT is to set forth the terms and conditions referring to
the purchase and sale of the CONTRACTED POWER WITH INCENTIVES that SELLER will make available to
PURCHASER at the GRAVITY CENTER from the Southeastern/Mid-Western SUBMARKET.

Paragraph One — The PARTIES acknowledge that the supply will be fully subject to the technical
determinations from ONS (National Electric-System Operator) and ANEEL, including in case the
Granting Power decrees electric power rationing at the SUBMARKET of the supply of CONTRACTED POWER
WITH INCENTIVES object hereunder.

Paragraph Two — The supply of CONTRACTED POWER SUBJECT TO INCENTIVES object hereunder will
originate from the generation derived from SELLER’s biomass, being ensured through the
INTERCONNECTED SYSTEM according to the rules set forth by CCEE, ONS and ANEEL.

SECTION III — TERM

CLAUSE THREE — This AGREEMENT will become in force on the date of its execution and will regulate
the conditions for the purchase and sale of electric power between the PARTIES from midnight of
05/01/2009 to midnight of 11/30/2018.

SECTION IV — REGISTRATION OF THE CONTRACTED POWER WITH

INCENTIVES IN CCEE

CLAUSE FOUR — SELLER will be liable for the registration, accounting and settlement in the CCEE.

Paragraph One — SELLER or its representative in CCEE will be in charge of registering the contract
quantities in CCEE within up to ninety (90) days as of the execution of the AGREEMENT, according to
the provisions set forth in Clauses Five and Six, subject to the COMMERCIALIZATION RULES AND
PROCEDURES.

Paragraph Two — PURCHASER, according to the clauses provided for in the COMMERCIALIZATION RULES
AND PROCEDURES, shall validate the registration of

 

 

the contract values made by SELLER, through its representative in the Accounting and Settlement
System (SCL) from CCEE, 10 days after registration by SELLER.

SECTION V- CONTRACTED POWER WITH INCENTIVES

CLAUSE FIVE — The quantities of CONTRACTED POWER SUBJECT TO INCENTIVES sold by SELLER to
PURCHASER, according to the clauses herein, for the period between midnight of 05/01 and midnight
of 11/30, in 2009 to 2018, will be listed in the chart below:

	 	 	 	 	 	 	 
	Year	 	Period in each year	 	Power — average MW
	2009

	 	05/01 to 11/30	 	 	 	 
	2010

	 	05/01 to 11/30	 	 	 	 
	2011

	 	05/01 to 11/30	 	 	 	 
	2012

	 	05/01 to 11/30
	 	 	9.0	 
	2013

	 	05/01 to 11/30
	 	(average nine megawatts)

	2014

	 	05/01 to 11/30	 	 	 	 
	2015

	 	05/01 to 11/30	 	 	 	 
	2016

	 	05/01 to 11/30	 	 	 	 
	2017

	 	05/01 to 11/30	 	 	 	 
	2018

	 	05/01 to 11/30	 	 	 	 

Paragraph One — The MONTHLY CONTRACTED POWER WITH INCENTIVES will be calculated by the
multiplication of the quantity of CONTRACTED POWER WITH INCENTIVES on a monthly basis, expressed in
average MW, as above, by the number of hours of the corresponding BILLING CYCLE.

Paragraph Two — SELLER may, at any time, in order to fulfill its supply obligation object of this
AGREEMENT, acquire power in the MARKET and supply the same to PURCHASER, which shall accept it
without restrictions, except for the ones provided for herein.

CLAUSE SIX — PURCHASER shall, by the eighteen (18) hours of the last business day of the month
prior to the supply month, forward to SELLER a spreadsheet informing the MONTHLY CONTRACTED POWER
WITH INCENTIVES per LOAD LEVEL in average W, which shall be registered in CCEE for the supply
month. The POWER quantities registered for PURCHASER will be subject to all the limits stated on
the chart below:

	 	 	 
	Load Levels	 	Modulation Flexibility
	Light

	 	0.95 x ECM < or = ECMP 1.05 x ECM
	Medium

	 	0.95 x ECM < or = ECMP 1.05 x ECM
	Heavy

	 	0.95 x ECM < or = ECMP 1.05 x ECM
	Daily Ascertaining

Where:

ECMP = MONTHLY CONTRACTED POWER PURCHASE WITH INCENTIVES per LOAD LEVEL in average MW

 

 

ECM = MONTHLY CONTRACTED POWER PURCHASE, in average MW

Paragraph One — The ascertaining of those quantities in the spreadsheet in each LOAD LEVELS will be
verified daily and monthly, will be subject to 100% of the value of the MONTHLY CONTRACTED POWER
PURCHASE WITH INCENTIVES — ECM, and the limits set forth in the caput of this Clause.

Paragraph Two — In case of failure in receiving or delay in the sending of the information
provided for in this Clause Six, SELLER will record the quantity corresponding to one hundred
percent (100%) of the MONTHLY CONTRACTED POWER PURCHASE — ECM, with flat modulation.

SECTION VI — PRICE

CLAUSE SEVEN — The price of the CONTRACTED POWER PURCHASE WITH INCENTIVES referred to in Clause
Five will be one hundred and sixty-six reais and sixty-nine cents per megawatt/hour (R$166.69/MW).

Paragraph One — The price submitted in the caput of this Clause takes into consideration the suply
of the CONTRACTED POWER in the GRAVITY CENTER, including therein: Inspection Fee from ANEEL, PIS
(Social Integration Plan)/PASEP (Patrimony Formation Program for the Public Employee, Brazil),
COFINS (Contribution for Social Security Financing), IR (Income Tax), CSLL (Social Contribution on
Net Profit) and the power losses of the BASIC GRID of the generator’s liability. The ICMS (State
Sales and Services tax) shall be further added to the price, which will be borne by PURCHASER.

Paragraph Two — The PARTIES agree that PURCHASER shall be liable for all the risks, costs,
obligations, liabilities, taxes, tariffs, sector charges, charges related to transmission,
distribution and connection, and transmission losses possibly due, and/or verified in view of the
availability of the CONTRACTED POWER WITH INCENTIVES in the GRAVITY CENTER provided for in the
current and/or future legislation.

Paragraph Three — The PARTIES agree that SELLER shall be liable for all the risks, costs,
obligations, liabilities, taxes, tariffs, sector charges, charges related to transmission,
distribution and connection, and transmission losses possibly due in view of the availability of
the CONTRACTED POWER WITH INCENTIVES in the GRAVITY CENTER in view of the activities of generation
and/or commercialization, provided for in the current and/or future legislation.

Paragraph Four — The price submitted in the caput of this Clause Seven refers to 01/01/2009, and as
of such date it shall be adjusted pro rata die at every twelve (12) month period, according to the
variation of the “IPCA — Extended Consumer Price Index” of the IBGE (Brazilian Geography and
Statistics Institute), ascertained in the period, or in case of its extinction, another index with
a role similar to the one that comes to substitute for the same, previously agreed between the
PARTIES that keeps the economic/financial equation originally covenanted by the PARTIES.

Paragraph Five — The periodicity of the adjustments referred to in Paragraph Four of this Clause
may occur within a term lower than one year, if the applicable legislation so allows it,

 

 

and the adjustment date shall be adapted to the new periodicity set forth, and as the case may be,
applied on a pro rate tempore basis. The adjustments deemed necessary will be made to adapt
Paragraph Four to such new condition.

SECTION VII — DETERMINATION OF THE BILLABLE POWER, BILLING AND

FORM OF PAYMENT OF THE TAX BILLS /ELECTRIC POWER INVOICES

CLAUSE EIGHT — The Billable Power in each BILLING CYCLE will be the value of the MONTHLY CONTRACTED
POWER WITH INCENTIVES, according to Clause Five.

CLAUSE NINE — The CONTRACTED POWER WITH INCENTIVES will be collected through a tax Bill/Invoice
for the electric power, to be issued, to be due on the 15th business day of each month
and supplied by SELLER to PURCHASER at least five (5) business days in advance to the due date,
together with the bank payment slip, describing the instructions for payment and billing in each
BILLING CYCLE, as follows;

The billing in each BILLING CYCLE will be equal to:

FAT = PEN x EEICM

WHERE:

FAT = is the value in reais (R$), to be billed in each BILLING CYCLE;

PEN = is the POWER Price, in reais per megawatt/hour (R$/MWh) provided for in the “caput” of Clause
Seven, in force for each BILLING CYCLE;

EEICM = is the MONTHLY CONTRACTED POWER WITH INCENTIVES, in megawatt/hour (MWh) in each BILLING
CYCLE, according to Paragraph One of Clause Five, further subject to Clause Ten;

Paragraph One — SELLER shall describe in the Tax Bills/Invoices of Electric Power in addition to
the value referring to the quantity of POWER, and the ICMS VALUE for which PURCHASER will be
liable, if due in accordance with the specific legislation.

Paragraph Two — Should the due date be a bank holiday at the place where the payment has to be
made, the same shall be effected on the first subsequent business day.

Paragraph Three — PURCHASER will accept the sending of a copy of the original collection document
through fax or any other safe electronic means agreed between the PARTIES, and as long as confirmed
by PURCHASER, its receipt under a full and legible form, will then serve to meet the term provided
for in the caput of this Clause. SELLER shall send the original collection document by the due date
of the Tax Bill/Invoice of Electric Power.

Paragraph Four — PURCHASER will incur with possible expenses on the bank transactions deriving from
the payment to SELLER.

Paragraph Five — All the payments due by PURCHASER will be made free of any liens and deductions
not expressly provided for in this AGREEMENT, as long as not deriving from legal and/or regulatory
determination.

 

 

Paragraph Six — The discount percentage in the TUSD (payment of a distribution use of system
charge) given by the generating source, as per authorization to be issued by an ANEEL’s Resolution
specifically for such purpose, may on a certain consumption month be changed by CCEE in accordance
with Normative Resolution from ANEEL under No.286 dated November 6, 2007 and with the
COMMERCIALIZATION RULES from CCEE.

Paragraph Seven — If CCEE ascertains a discount percentage other than 50% in a billing cycle, the
value of the POWER Price — PEM in R$/MWh (reais per megawatt/hour) provided for in the caput of
Clause Seven in that respective billing cycle will be thereafter the PpEN (Power Proportional
Price) and shall be calculated according to the following formula:

PpEN = PEN — [VDB x (50 — Disc %)] / 50.0; where

	 	•	 	PpEN = Power Proportional Price, expressed in R$/MWh (reais per megawatt/hour)
	 
	 	•	 	PEN = POWER Price, in R$/MWh (reais per megawatt/hour), provided for in the caput of
Clause Seven in force for each BILLING CYCLE;
	 
	 	•	 	VDB = Base Difference Value, equal to R$28.50/MWh, on a base date on 01/01/2009, and
must be adjusted according to the criterion of Paragraph Four of Clause Seven;
	 
	 	•	 	% Disc = percentage value of the discount defined by CCEE in a BILLING CYCLE

Paragraph Eight — Should CCEE disclose the discount percentage other than 50%, as provided for in
paragraph seven above, the new value calculated for the month of application of the new discount
percentage will be compared to the value already collected in the respective invoice. The
difference ascertained, upward or downward, in reais (R$), will be given back or charged in the
next invoice to be issued after the date of disclosure by CCEE.

Paragraph Nine — SELLER undertakes to reimburse the reduction in the discount of the TSDU’s value,
applicable only to the quantities of MONTHLY CONTRACTED POWER WITH INCENTIVES.

Paragraph Ten — SELLER will not be liable for the reimbursement due to the reduction in the
discount of the TSDU caused by PURCHASER.

Paragraph Eleven — The changes in the COMMERCIALIZATION RULES as a result of the application of
Normative Resolution from ANEEL under No. 286 of November 6, 2007 may result in changes in the form
and under the limits for reimbursement to PURCHASER so as to keep the conditions agreed in this
Clause.

CLAUSE
TEN — If SELLER generates additional power to the quantity of MONTHLY CONTRACTED POWER WITH
INCENTIVES in the months of May to November in 2009, PURCHASER will be entitled to purchase that
additional power volume under the same price conditions defined in Clause Seven of this AGREEMENT,
and shall, for such purpose, send the document to the SELLER, stating expressing such intent up to
the 1st business day of the month subsequent to the month where that additional power
generation had possibly occurred in 2009. The additional power volume object of this Clause shall
be, at most, an average of 2.0 MW monthly, from May to November 2009.

 

 

CLAUSE ELEVEN — The divergences possibly indicated in the billing of the POWER purchase and sale
object hereunder will not affect the form, value and term for payment of the Tax Bill/Electric
Power Invoice, and the difference, upwards or downwards, if there shall be any, shall be set off or
doubled or [illegible], and the PARTIES may, under mutual agreement, be set off in the month
itself, subject to Paragraphs One and Two of this Clause.

Paragraph One — On any sum contested representing credits for the PURCHASER that may be
subsequently agreed by the PARTIES or defined judicially, or by a PROPER AUTHORITY as being due by
SELLER, Clause Twelve will be applied, except for the fine. The interest and the monetary
adjustment will apply as of the due date of the contested portion up to the date of its settlement
by SELLER.

Paragraph Two — Should the divergences remain in relation to the invoiced values, the PARTIES
agree to act according to the solution of disputes provided for in Clause Thirty-Two.

CLAUSE TWELVE — The delay is hereby characterized when the PURCHASER fails to make any of the
payments in full up to the due date. In case of delay by PURCHASER of any Tax Bill/Invoice of
Electric Power issued with basis on this AGREEMENT, the amounts due shall be monetarily adjusted
pro rata die according to the variation of the IPCA from the IBGE (Brazilian Geography and
Statistics Institute), or another index that substitutes for the same in case of its extinction or
of the index that the PARTIES agree, and the following additions will be applied on the adjusted
values:

a) a two percent (2%) fine applied on the debit amount; and

b) delinquent interest equivalent to one percent (1%) per month calculated pro rata die, for the
period between the date of default and the date of the effective payment, including the same.

Paragraph One — The additions provided for in the preceding items will apply on the value of the
installments in arrears, monthly monetarily adjusted according to the pro rata die variation of the
IPCA of the IBGE (Brazilian Geography and Statistics Institute) relative to the previous month, or
in case of its extinction, another index with a similar role that will substitute for the same,
previously agreed between the PARTIES.

Paragraph Two — For the purposes of application of the adjustment referred to in Paragraph One of
this Clause, any negative variation of the IBGE’s IPCA will be considered null.

SECTION VIII — PAYMENT GUARANTEES

CLAUSE THIRTEEN — Within the thirty (30) day-term prior to the date on which the power supply
object hereof commences, under the Accounting and Settlement (SCL) System of CCEE, PURCHASER shall
give a payment guarantee to SELLER sufficient to liquidate the three (3) billing months through one
of the types listed below, which will be accepted at
SELLER’s discretion after [illegible] as to
the quality, regardless of the type of constitution, under the penalty of payment of a ten percent
(10%) fine on the value of the AGREEMENT, without prejudice to the application of the other
penalties set forth herein in view of the non-fulfillment of its clauses and conditions. If
PURCHASER does not fulfill the obligation provided for in this Clause in the due term, SELLER will
be discharged from commencing to

 

 

supply the POWER object hereunder on 05/01/2009, and the POWER supply may be delayed for the same
number of months which PURCHASER possibly may delay the granting of guarantee for the payment
provided for herein.

a) Letter of Bank Guaranty;

b) Pledge
of PURCHASER’s receivables;

c) Guarantee Insurance contracted in favor of SELLER; or

d) Pledge of bonds of the Public Federal Certificates of Indebtedness.

Sole Paragraph — If the guarantee is not anymore valid and in force in advance for reasons
attributed to PURCHASER and/or sued by SELLER, the PURCHASER, within a fifteen (15) day-term after
the notice from SELLER, shall replace it by another one of equal tenor and form, under the penalty
of a fine of the caput of this Clause.

SECTION IX — ACT OF GOD OR FORCE MAJEURE

CLAUSE FOURTEEN — If any of the PARTIES does not fulfill any of its obligations, for act of God or
force majeure, under the terms of Article 393 of the Brazilian Civil Code, this AGREEMENT will
remain in force, however, the PARTY affected by the event will not be liable for the consequences
from not fulfilling the obligations during the term of the event and proportionally to its effects.

Sole Paragraph — The PARTY affected by the event evidently characterizing act of God or force
majeure will inform the other one, within at most forty-eight (48) hours from the event
circumstances, detailing its nature, time estimate to be able to fulfill the achieved obligation
and other information pertinent to the same, in addition to regularly renew the same information.

SECTION X — RATIONING

CLAUSE FIFTEEN — If the Granting Power decrees rationing, the contract liabilities will be governed
by the legislation in force and the COMMERCIALIZATION RULES.

SECTION XI — DEFAULT AND RESOLUTION

CLAUSE SIXTEEN — If the failure in the payment of any Tax Bill/Electric Power Invoice or the
failure of payment of any amount due by PURCHASER is evidenced, SELLER may, at its discretion, and
subject to ANEEL’s regulation, stay the sale of CONTRACTED POWER WITH INCENTIVES to PURCHASER until
the amount(s) due, added by the corresponding delay charges, is(are) paid to SELLER. PURCHASER, as
of now, acknowledges SELLER’s entitlement to commercialize POWER promptly to any third parties of
its free discretion in those cases without any prejudice of the other rights provided for in this
AGREEMENT and in the applicable legislation.

Sole Paragraph — The discontinuance of the sale of CONTRACTED POWER WITH INCENTIVES, at SELLER’s
discretion, as provided for in this Clause, will not exempt PURCHASER from the obligations provided
for in this AGREEMENT, including the

 

 

obligations pending payment and cannot be alleged by PURCHASER as a reason for its termination.

CLAUSE SEVENTEEN — The AGREEMENT may be lawfully terminated upon the following events:

	a)	 	at SELLER’s decision, if PURCHASER fails to fulfill its obligation to fully pay the Electric
Power Tax Bills/Invoices under the terms herein and SELLER notifies PURCHASER to pay the delay
within a fifteen (15) day-term as of the receipt of the notification from SELLER with the due
additions and PURCHASER fails to pay the delay within said fifteen (15) day-term;
	 
	b)	 	at the decision from any of the PARTIES under the cases of: (i) non-fulfillment by the other
PARTY of any other obligation provided for contractually, if the PARTY liable for the default
fails to remedy such fault within a thirty (30) day-term as of the receipt of the notification
from the non-defaulting PARTY, specifying the fault and requiring that it is remedied; or (ii)
the application for bankruptcy by any of the PARTIES or the decree of its bankruptcy, or
further, any analogous event characterizing its insolvency status, including but not limited
to the judicial or extrajudicial recovery, composition with creditors and the processing of
judicial recovery.

Paragraph One — The termination of this AGREEMENT does not exempt the PARTIES from the obligations
due up to the date of the termination and will not affect or limit any right that, expressly or for
its nature, shall remain in force after the termination or deriving from the same.

Paragraph Two — If the AGREEMENT is terminated at any time as of the date of its execution for any
of the reasons provided for in items “a” [illegible] of the caput of this Clause, the PARTY that
causes the same or is responsible for the termination will pay the [illegible] in favor of the
other PARTY in the amount equivalent to ten percent (10%) of the CONTRACT value, adjusted according
to the criterion of Paragraph Four of Clause Seven within a ten (10) day-term after the receipt of
the written notification from the other PARTY.

Paragraph Three — The termination shall be formally and expressly informed in writing to CCEE, and
to the proper regulatory entities, and SELLER is hereby promptly released from any liability
relative to the supply object of this AGREEMENT, without prejudice to the obligations set forth
prior to the termination and communication referred to above.

SECTION XII — THE PARTIES’ OBLIGATIONS

CLAUSE EIGHTEEN — Without prejudice to the other obligations provided for herein, the PARTIES
undertake to:

	a)	 	strictly meet and fulfill the whole legislation applicable to its corporate businesses
and/or to the activities to be performed under the terms hereunder;
	 
	b)	 	obtain and keep valid and in force, during the whole term, all the licenses and
authorizations pertinent to its operating activities and/or to the fulfillment of the
obligations undertaken in this AGREEMENT, except if such situation is changed by a PROPER
AUHTORITY, within the scope of its attributions, on which occasion the

 

 

	 	 	PARTIES undertake to seek a contract alternative preserving the economic/financial effects of
the AGREEMENT as originally agreed; and
	 
	c)	 	inform the other PARTY, within at most a three (3) business day term as of the date of
acknowledgment of the event on any events from any nature that may represent a threat to the
full and punctual fulfillment of the obligations undertaken herein.

PARAGRAPH ONE — Except for the income taxes, the creation, change or extinction of any taxes or
legal charges after such electric power purchase and sale is formalized, when the impact is
evidenced, shall imply the automatic price adjustment, upwards or downwards, as the case may be,
pursuant to the formalization of the Contract Amendment with effects retroactive to the date of the
creation, change or extinction, indicated.

PARAGRAPH TWO — The expiration of the term of this AGREEMENT will not affect any rights or
obligations prior to such event, nor will it affect obligations or rights of any of the PARTIES,
even if its exercise or fulfillment occurs after the AGREEMENT expires.

SECTION XIII — GENERAL PROVISIONS

CLAUSE NINETEEN — This AGREEMENT is attributed the value of seventy-six million, six hundred and
ninety thousand seven hundred and thirty-five reais and [illegible] cents (R$76,690,735)
corresponding to the product from the quantity of CONTRACTED POWER WITH INCENTIVES in the whole
term hereof, in MWh, according to Clause Five, for the Power Price set forth in Clause Seven.

CLAUSE TWENTY — Possible suggestions for advancing or postponing the payment by PURCHASER may be
examined by SELLER, at its exclusive discretion, and the PARTIES will agree the financial terms for
achieving the advances and postponements.

CLAUSE TWENTY-ONE — This AGREEMENT cannot be amended, and its clauses cannot be waived, except by
means of written amendment executed by the PARTIES, subject to the clauses provided for in the
applicable legislation.

CLAUSE TWENTY-TWO — PURCHASER herein acknowledges and accepts that SELLER may freely commercialize
the credits and other rights deriving from this AGREEMENT,

CLAUSE TWENTY-THREE — No delay or acceptance by any of the PARTIES relative to the exercise of any
right, power, privilege or resource contained herein may adversely affect such right, power,
privilege or resource, nor will it be construed as waiver of the same or novation of the
obligation(s).

CLAUSE TWENTY-FOUR — Any notice or another communication from one PARTY to the other one about
this AGREEMENT will be made in writing, in Portuguese and may be delivered or sent by certified
mail, email, fax, in any case against formal evidence of its effects, to the contacts mentioned
below or to others that are indicated expressly in the future and will be considered received on
the date of their acknowledgment of receipt:

By SELLER:

 

 

Name: Cheng Gonk Vim

Telephone: + (55 11) 3079-5400

Fax: + (55 11) 3079-3683

Email: cvim@adecoagro.com

By PURCHASER:

Name: Bruno Gabrich

Telephone: + (55 31) 3506-5114

Fax: + (55 31) 3506-4939

Email: gabrich@cemig.com.br

CLAUSE TWENTY-FIVE — Should any of the clauses herein be deemed illegal, invalid or unenforceable,
the remaining provisions shall be not affected and shall remain in full effect. Under such
hypothesis, the PARTIES undertake, as of now, to agree on a provision that replaces it and meets
the purposes of the clause deemed illegal, invalid or unenforceable, maintaining, as much as
possible, under all circumstances the balance of the business interests of the PARTIES.

CLAUSE TWENTY-SIX — This AGREEMENT includes, or expressly makes reference to the entire
understanding between the PARTIES in regard to its purpose, and includes all the previous
agreements and understandings of the PARTIES on its purpose. Each PARTY recognizes and acknowledges
that the execution of this AGREEMENT does not depend on any statement, guarantee or any other
commitment of the other PARTY, not fully reflected by the clauses herein.

CLAUSE TWENTY-SEVEN — After this AGREEMENT is formalized, if there are any amendments to the
legislation on Electric Power or to the COMMERCIALIZATION RULES, or to the COMMERCIALIZATION
PROCEDURES that might substantially affect the conditions hereof, the PARTIES, as of now, agree to
negotiate, in good faith, an amendment to this AGREEMENT aiming at keeping the economic and
financial balance of the AGREEMENT.

CLAUSE TWENTY-EIGHT — The PURCHASER shall present to CCEE the data of this AGREEMENT, for
registration purposes.

CLAUSE TWENTY-NINE — Another CCEE’s agent may, upon appointment, substitute for PURCHASER as
PURCHASER hereof, subject to the prior acceptance of SELLER, which after the analysis of the credit
risk posed by the agent appointed by PURCHASER may refuse the request, pursuant to a formal
justification, and maintaining the responsibility of PURCHASER before the SELLER in case of default
by the ASSIGNEE, especially regarding the obligations of PURCHASER described in Section VII of this
AGREEMENT.

Paragraph One — The PARTIES agree that the mentioned assignment is made, if necessary, totally or
partially, both as to the term and to the power volume, subject to the conditions agreed herein,
especially with regard to the power price, the flexibilities contracted, to the SUBMARKET where the
supply is to be made and the maximum term of the AGREEMENT.

 

 

Paragraph Two — The assignment will be made through the execution of the DEED OF ASSIGNMENT as per
the draft stated on Attachment II hereto, which the PARTIES shall execute, with the mandatory
intervenience and consent from SELLER.

CLAUSE THIRTY — The PARTIES acknowledge this AGREEMENT as an executive instrument, according to
Article 585, item II, of the Brazilian Civil Procedure Code for the purposes of the collection of
the values due.

Sole Paragraph — The obligations undertaken by the PARTIES hereunder shall be specifically
enforced, in accordance with the Brazilian Civil Procedure Code.

CLAUSE THIRTY-ONE — The Brazilian laws shall govern and construe this AGREEMENT in all its aspects.

CHAPTER XIV — SETTLEMENT OF DISPUTES AND JURIDICTION

CLAUSE THIRTY-TWO — Should there be any disputes or issues arising out of this AGREEMENT, the
PARTIES, as of now, agree to endeavor their best efforts to settle matters amicably, negotiating to
achieve a fair and satisfactory solution for both PARTIES, within a thirty (30) day term.

Paragraph One — The statement of dispute by one of the PARTIES does not exempt such Party from the
fulfillment of its contractual obligations, and the necessary adjustments shall take place after
the negotiation or settlement of the dispute.

Paragraph Two — If the PARTIES do not reach to an amicable solution, the PARTIES, as of now,
undertake, irrevocably and unchangeably, to settle the dispute by Arbitration, in accordance with
Law No. 9.307 of September 23, 1996, and its further amendments, and in accordance with the Rules
of the Conciliation and Arbitration Chamber of Getúlio Vargas Foundation, by three (3) arbitrators,
appointed according to the provisions of aforementioned Rules. The arbitration shall be held in the
City of Belo Horizonte, State of Minas Gerais and conducted in the official language of the
Federative Republic of Brazil, in Portuguese.

Paragraph Three — The defeated Party shall bear the costs and the expenses of the Arbitration. If
the arbitration award is partially favorable to each Party, the award shall indicate the proportion
of the costs and expenses to be borne by each party.

Paragraph Four — The Party who, by any means or for any reason, impedes the establishment of
arbitration or compels the other Party to file the judicial action provided for in article 7 of Law
No. 9.307/96, or further, that does not meet the arbitration award shall be liable for daily
non-compensatory fine equivalent to three thousand Reais (R$3,000.00), duly adjusted up to the
date of such fine payment, according to the IGP-M/FGV [General Price Index of the Getúlio Vargas
Foundation] variation for the period, or by any substituting index.

Paragraph Five — The disputes arising out of matters linked to CCEE shall be settled according to
ANEEL’s Homologation Resolution No. 551, of August 7 2007, i.e., by the Arbitration Convention
instituted by this rule at the Conciliation and Arbitration Chamber of the Getúlio Vargas
Foundation (FGV).

 

 

\

Paragraph Six
— The PARTIES elect the jurisdiction of Belo Horizonte, State of Minas Gerais,
excluding any other one however privileged it may be, to, if necessary and solely for such purpose,
acknowledge suits ensuring the most complete performance of the arbitration procedures under Law
No. 9.307/96, and the possible enforcement of the award.

IN WITNESS WHEREOF, the PARTIES execute this instrument in two (2) counterparts of the same tenor,
before the two (2) undersigned witnesses.

Belo Horizonte, January 19, 2009.

USINA MONTE ALEGRE LTDA.

	 	 	 	 
	/s/ Leonardo Raul Berridi

	 	Name: Cheng Gonk Vim	 
	Name: Leonardo Raul Berridi

	 	Name: Cheng Gonk Vim	 
	Title:

	 	Title:	 

CEMIG GERAÇÃO E TRANSMISSÃO S.A.

	 	 	 	 
	/s/ Djalma Bastos de Morais

	 	/s/ Bernardo Afonso Salomão de Alvarenga	 
	Name: Djalma Bastos de Morais

	 	Name: Bernardo Afonso Salomão de Alvarenga	 
	Title: Chief Executive Officer

	 	Title:	 
	 
	 	 	 
	WITNESSES:
	 	 	 
	 
	 	 	 
	/s/ Victor Gomes de Castro

	 	/s/ Maria Isabel D’Arantes	 
	Name: Victor Gomes de Castro

	 	Name: Maria Isabel D’Arantes	 
	CPF: 679.105.806-49

	 	CPF: 296.266. 310- 48	 
	CI:M-4.100.279
	 	 	 

 

 

ATTACHMENT I — TECHNICAL NOMENCLATURE

	a)	 	“ANEEL”: the Brazilian Electricity Regulatory Agency, a regulatory and inspecting
body for the electric power services, created by Law No. 9.247 of December 26, 1996,
regulated by Decree No. 2.335 of December 6, 1997;
	 
	b)	 	“PROPER AUTHORITY”: any governmental body with attributions to intervene in this
AGREEMENT, or in the activities of the PARTIES;
	 
	c)	 	“CCEE”: the Chamber of Electric Power Commercialization is a non-profit private legal
entity, under the authority of the Granting Power, and the regulation and inspection by
ANEEL, which constitution was authorized under the terms of Article 4 of Law No. 10.848,
of March 15, 2004, and Decree No. 5.177 of August 12, 2004, to enable the
commercialization of electric power of the National Interconnected System — SIN;
	 
	d)	 	“GRAVITY CENTER: a virtual point, defined under the COMMERCIALIZATION RULES, in
which the total generation is equal to the total consumption of that SUBMARKET;
	 
	e)	 	“BILLING CYCLE”: the period corresponding to each calendar month;
	 
	f)	 	“CONCESSIONAIRE”: means the Agent who owns the Public Power concession for performing
the electric power distribution/transmission services, and to whose Distribution or
Transmission System SELLER is connected;
	 
	g)	 	“SPECIAL CONSUMER”: the consumer responsible for the consumption unit or for the set
of consumption units of Group “A”, part(s) of the same INTERCONNECTED SYSTEM submarket,
gathered by type of factual or legal interests, which load is to equal to or exceeds
500kW, as per Normative Resolution No. 247 of 12/21/2006;
	 
	h)	 	“POWER”; is the quantity of active electric power during any given time, expressed in
Watts-hour (Wh), or its multiples;
	 
	i)	 	“MONTHLY CONTRACTED POWER WITH INCENTIVES”: the quantity of monthly power in MWh;
	 
	j)	 	“CONTRACTED POWER WITH INCENTIVES”: the quantity of electric power, in average MWh,
contracted by PURCHASER and made available at the Southeastern/Midwestern SUBMARKET of
the GRAVITY CENTER, originated from a source with incentives, under the current
legislation;

 

 

	k)	 	“POWER SOURCE WITH INCENTIVES”: the plants generating electric power from Small
Hydroelectric Plants, or aeolic, biomass, or solar sources with INJECTED voltage equal to
or lower than 30.000kW as well as for ventures with voltage equal to or lower than
1,000kW;
	 
	l)	 	“ONS”: the National Electric-System Operator, constituted by Law No. 9.448/98;
	 
	m)	 	“PARTY”: the PURCHASER or the SELLER, whenever individually mentioned, which are the
PARTIES, whenever mentioned together;
	 
	n)	 	“LOAD LEVEL”: the number of hours characterized by a level of voltage and by an
average duration, obtained from the analysis of the curves of typical hourly load of each
Subsystem. The classification of the hours by level is defined by the ONS and specified by
CCEE, monthly;
	 
	o)	 	“PLD”: the Difference Settlement Price, calculated for each SUBMARKET, and for each
LOAD LEVEL, as per the specific section of the COMMERCIALIZATION RULES, published weekly
by CCEE;
	 
	p)	 	“COMMERCIALIZATION PROCEDURES”: the set of operational rules defining the
requirements and terms necessary for the development of CCEE’s attributions, including the
ones established under the COMMERCIALIZATION RULES;
	 
	q)	 	“GRID PROCEDURES”: the document elaborated by ONS, with the participation of the
agents and which ANEEL approves, establishing the procedures and the technical
requirements for the planning, the implantation, the use, and the operation of the
transmission system, the fines for non-compliance with the obligations undertaken by the
several agents of the transmission system, as well as the responsibilities of the ONS and
of all users;
	 
	r)	 	“BASIC GRID”: the installations of the INTERCONNECTED SYSTEM, identified in
accordance with the rules and the conditions established by ANEEL;
	 
	s)	 	“COMMERCIALIZATION RULES”: the set of commercial rules and their algebraic
formulations defined by ANEEL, of mandatory compliance by the agents participating from
CCEE;
	 
	t)	 	“INTERCONNECTED SYSTEM”: the installations for the generation, the transmission and
the distribution connected by the BASIC GRID, including the respective installations;

 

 

	u)	 	“SUBMARKET”: the subdivisions of the market, corresponding to certain areas of the
INTERCONNECTED SYSTEM, for which there are specific prices determined, in accordance with
the COMMERCIALIZATION RULES; and

 

 

ATTACHMENT
II — DRAFT OF THE DEED OF ASSIGNMENT ENTERED
 INTO BY CEMIG GERAÇÃO E TRANSMSSÃO S.A AND
(ASSIGNEE) UPON 
THE INTERVENIENCE FROM (SELLER).

IDENTIFICATION:

ASSIGNOR

Corporate Name: CEMIG GERAÇÃO E TRANSMSSÃO S.A.

Head offices: Av. Barbacena, 1200 — 12° pavimento — ala B1,

CNPJ [Legal Entities’ National Enrollment]: 06.981.176/0001-58.

Representatives: Legal, in accordance with its By-laws

Name: ASSIGNOR (PURCHASER)

ASSIGNEE

Corporate Name:

Head offices:

CNPJ [Legal Entities’ National Enrollment]:

Representatives: Legal, in accordance with its By-laws or Articles of Association

Name: ASSIGNEE (_____________)

CONSENTING AND INTERVENING PARTY:

Corporate Name:

Head offices:

CNPJ [Legal Entities’ National Enrollment]:

Representatives: Legal, in accordance with its By-laws/Articles of Association

Name: CONSENTING AND INTERVENING PARTY (SELLER)

 

 

WHEREAS:

a) The ASSIGNOR and the CONSENTING AND INTERVENING PARTY entered into the following instrument
hereinafter named AGREEMENT:

	 	 	 	 	 
	IPO	 	DATE	 
	Electric Power Purchase and Sale Agreement
	 	 	 	 

b) As per Clause Twenty-eight of the Agreement, the rights and obligations under the Agreement may
be assigned to another CCEE’s Agent;

c) The ASSIGNOR undertook, as of the first day of the month following the execution of the Deed of
Assignment, the rights and the obligations under the AGREEMENT, therefore called the PURCHASER, in
the quantities and for the prices defined as follows:

	 	 	 	 	 
	Period:	 	From xx/xx/xxx to xx/xx/xxx	 
	Quantities:
	 	xxxx average MW
	 
	 	 	 

The PARTIES decide to execute this DEED OF ASSIGNMENT, under the following clauses and provisions:

CLAUSE ONE

By this instrument, the ASSIGNOR transfers to ASSIGNEE, irrevocably and unchangeably, all the
rights and obligations arising out of this AGREEMENT, in the quantities and within the terms
defined in the chart of the above item “c”, executed with the INTERVENING AND CONSENTING PARTY, as
of the first day of the moth that follows the execution of this Deed.

CLAUSE TWO

By this DEED OF ASSIGNMENT, the Parties agree to award a new wording to Paragraphs Six and Seven of
Clause 9 of the Agreement shall have the following wording, and whose conditions shall be in effect
for the remainder of the period and in relation to the quantity of power defined in the preamble,
the WHEREAS “c” hereof;

“CLAUSE NINE —

(...)

Paragraph Six — The TUSD’s discount percentage may, during a certain consumption month, pursuant
to the decision from CCEE, suffer a reduction in accordance with ANEEL’s Normative Resolution No.
286, of November 6, 2007, and with CCEE’s

 

 

COMMERCIALIZATION RULES. If such occurs, SELLER will offset, to the PURCHASER, the impact of the
TUSD deduction reduction, which arises out of the sale and the purchase of the power object
hereunder. The limit of the offset is the amount in Reais calculated according to the following
formula:

LIM = ((TUSDRHP — TUSDIHP) * MUEHP + (TUSDRHFP —
TUSDRHFP) * (1+PC)

Where:

LIM = amount in Reais, and it is the limit for reimbursement to PURCHASER of the TUSD discount
reduction related to this AGREEMENT.

TUSDI = value of the TUSD (HP; HFP), without taxes, in R$/kW, resulting from the application of the
initial discount authorized to the SELLER, by Resolution issued by ANEEL, for this specific
purpose.

TUSDR = value of the TUSD (HP; HFP), without taxes, added by the partial or the total loss of the
discount, during a certain month, in regards to the balance of this AGREEMENT.

MUE = the quantities of equivalent use (HP; HFP), in kW, to the CONTRACTED POWER WITH INCENTIVES to
be defined upon the Assignment to the ASSIGNEE.

PC = Aliquot of the PASEP/COFINS of the distributor, used during the month in which the reduction
in the discount percentage of TUSD occurred.

Paragraph Seven — If CCEE ascertains the offset mentioned in Paragraph Six of this Clause, it shall
take effect after the release of the data by CCEE, via an UNCONDITIONAL DISCOUNT for the price of
power — PEN, calculated by dividing the result of the limit of reimbursement, LIM, by the
CONTRACTED CONTRACTED POWER WITH INCENTIVE in the month of the reimbursement. This result, in
R$/kW, shall be subtracted from the PEN, under the above Clause Seven, therefore resulting in the
PEN to be invoiced in the month of the reimbursement.

CLAUSE THREE

Consequently, the ASSIGNOR is vested with all the rights and the obligations arising out of this
instrument, in the quantities and within the terms assigned, as of the first day of the month that
follows the execution of this DEED.

 

 

IN WITNESS WHEREOF, the PARTIES execute this instrument in three 93) counterparts of the same
tenor, before the two (2) undersigned witnesses.

Belo Horizonte, _________________ ________ _______.

	 	 	 
	CEMIG GERAÇÃO E TRANSMISSÃO S.A.
	 	 
	 
	 	 
	Name:

	 	Name:
	Title:

	 	Title:
	 
	 	 
	ASSIGNOR:
	 	 
	 
	 	 
	Name:

	 	Name:
	Title:

	 	Title:
	 
	 	 
	INTERVENING AND COSNENTING PARTY:
	 	 
	 
	 	 
	Name:

	 	Name:
	Title:

	 	Title:
	 
	 	 
	WITNESSES
	 	 
	 
	 	 
	Name:

	 	Name:
	CPF:

	 	CPF:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]