Document:

Exhibit 4.2

 

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
PARTIES
    	
 
    	
 
    	
1
    
	
RECITALS
    	
 
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
Section   1.
    	
Certain   Definitions
    	
 
    	
 
    
	
(a)
    	
ADR Register
    	
 
    	
1
    
	
(b)
    	
ADRs; Direct Registration ADRs
    	
 
    	
1
    
	
(c)
    	
ADS
    	
 
    	
1
    
	
(d)
    	
Custodian
    	
 
    	
1
    
	
(e)
    	
Deliver, execute, issue et al.
    	
 
    	
1
    
	
(f)
    	
Delivery Order
    	
 
    	
2
    
	
(g)
    	
Deposited Securities
    	
 
    	
2
    
	
(h)
    	
Direct Registration System
    	
 
    	
2
    
	
(i)
    	
Holder
    	
 
    	
2
    
	
(j)
    	
Securities Act of 1933
    	
 
    	
2
    
	
(k)
    	
Securities Exchange Act of 1934
    	
 
    	
2
    
	
(l)
    	
Shares
    	
 
    	
2
    
	
(m)
    	
Transfer Office
    	
 
    	
2
    
	
(n)
    	
Withdrawal Order
    	
 
    	
2
    
	
Section   2.
    	
ADRs
    	
 
    	
2
    
	
Section   3.
    	
Deposit   of Shares
    	
 
    	
3
    
	
Section   4.
    	
Issue   of ADRs
    	
 
    	
4
    
	
Section   5.
    	
Distributions   on Deposited Securities
    	
 
    	
4
    
	
Section   6.
    	
Withdrawal   of Deposited Securities
    	
 
    	
4
    
	
Section   7.
    	
Substitution   of ADRs
    	
 
    	
4
    
	
Section   8.
    	
Cancellation   and Destruction of ADRs
    	
 
    	
5
    
	
Section   9.
    	
The   Custodian
    	
 
    	
5
    
	
Section   10.
    	
Co-Registrars   and Co-Transfer Agents
    	
 
    	
6
    
	
Section   11.
    	
Lists   of Holders
    	
 
    	
6
    
	
Section   12.
    	
Depositary’s   Agents
    	
 
    	
6
    
	
Section   13.
    	
Successor   Depositary
    	
 
    	
6
    
	
Section   14.
    	
Reports
    	
 
    	
7
    
	
Section   15.
    	
Additional   Shares
    	
 
    	
8
    
	
Section   16.
    	
Indemnification
    	
 
    	
8
    
	
Section   17.
    	
Notices
    	
 
    	
9
    
	
Section   18.
    	
Miscellaneous
    	
 
    	
9
    
	
Section   19.
    	
Consent   to Jurisdiction
    	
 
    	
10
    
	
TESTIMONIUM
    	
 
    	
11
    
	
SIGNATURES
    	
 
    	
12
    

 

i

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
EXHIBIT A
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
FORM OF FACE OF ADR
    	
 
    	
A-1
    
	
 
    	
 
    	
 
    
	
Introductory   Paragraph
    	
 
    	
A-1
    
	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
Issuance   of ADRs and Pre-Release of ADRs
    	
 
    	
A-2
    
	
(2)
    	
Withdrawal   of Deposited Securities
    	
 
    	
A-3
    
	
(3)
    	
Transfers   of ADRs
    	
 
    	
A-4
    
	
(4)
    	
Certain   Limitations
    	
 
    	
A-5
    
	
(5)
    	
Taxes
    	
 
    	
A-5
    
	
(6)
    	
Disclosure   of Interests
    	
 
    	
A-6
    
	
(7)
    	
Charges   of Depositary
    	
 
    	
A-6
    
	
(8)
    	
Available   Information
    	
 
    	
A-8
    
	
(9)
    	
Execution
    	
 
    	
A-8
    
	
 
    	
 
    	
 
    	
 
    
	
Signature of Depositary
    	
 
    	
A-8
    
	
 
    	
 
    	
 
    
	
Address of Depositary’s Office
    	
 
    	
A-8
    
	
 
    	
 
    	
 
    
	
FORM OF REVERSE OF ADR
    	
 
    	
A-9
    
	
 
    	
 
    	
 
    
	
(10)
    	
Distributions   on Deposited Securities
    	
 
    	
A-9
    
	
(11)
    	
Record   Dates
    	
 
    	
A-10
    
	
(12)
    	
Voting   of Deposited Securities
    	
 
    	
A-10
    
	
(13)
    	
Changes   Affecting Deposited Securities
    	
 
    	
A-11
    
	
(14)
    	
Exoneration
    	
 
    	
A-11
    
	
(15)
    	
Resignation   and Removal of Depositary; the Custodian
    	
 
    	
A-13
    
	
(16)
    	
Amendment
    	
 
    	
A-14
    
	
(17)
    	
Termination
    	
 
    	
A-14
    
	
(18)
    	
Appointment
    	
 
    	
A-15
    
	
(19)
    	
Waiver
    	
 
    	
A-15
    

 

ii

 

DEPOSIT AGREEMENT dated as of [DATE]  , 2012 (the “Deposit Agreement”) among CEMENTOS PACASMAYO S.A.A. and its successors (the “Company”), JPMORGAN CHASE BANK, N.A., as depositary hereunder (the “Depositary”), and all holders from time to time of American Depositary Receipts issued hereunder (“ADRs”) evidencing American Depositary Shares (“ADSs”) representing deposited Shares (defined below).  The Company hereby appoints the Depositary as depositary for the Deposited Securities (as defined below) and hereby authorizes and directs the Depositary to act in accordance with the terms set forth in this Deposit Agreement.  All capitalized terms used herein have the meanings ascribed to them in Section 1 or elsewhere in this Deposit Agreement. The parties hereto agree as follows:

 

1.  Certain Definitions.

 

(a)           “ADR Register” is defined in paragraph (3) of the form of ADR.

 

(b)           “ADRs” mean the American Depositary Receipts executed and delivered hereunder. ADRs may be either in physical certificated form or Direct Registration ADRs.  ADRs in physical certificated form, and the terms and conditions governing the Direct Registration ADRs (as hereinafter defined), shall be substantially in the form of Exhibit A annexed hereto (the “form of ADR”).   The term “Direct Registration ADR” means an ADR, the ownership of which is recorded on the Direct Registration System. References to “ADRs” shall include certificated ADRs and Direct Registration ADRs, unless the context otherwise requires. The form of ADR is hereby incorporated herein and made a part hereof; the provisions of the form of ADR shall be binding upon the parties hereto.

 

(c)           Subject to paragraph (13) of the form of ADR, each “ADS” evidenced by an ADR represents the right to receive [•] Share and a pro rata share in any other Deposited Securities.

 

(d)           “Custodian” means the agent or agents of the Depositary (singly or collectively, as the context requires) and any additional or substitute Custodian appointed pursuant to Section 9.

 

(e)           The terms “deliver”, “execute”, “issue”, “register”, “surrender”, “transfer” or “cancel”, when used with respect to Direct Registration ADRs, shall refer to an entry or entries or an electronic transfer or transfers in the Direct Registration System, and, when used with respect to ADRs in physical certificated form, shall refer to the physical delivery, execution, issuance, registration, surrender, transfer or cancellation of certificates representing the ADRs.

 

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(f)            “Delivery Order” is defined in Section 3.

 

(g)           “Deposited Securities” as of any time means all Shares at such time deposited under this Deposit Agreement and any and all other Shares, securities, property and cash at such time held by the Depositary or the Custodian in respect or in lieu of such deposited Shares and other Shares, securities, property and cash.

 

(h)           “Direct Registration System” means the system for the uncertificated registration of ownership of securities established by The Depository Trust Company (“DTC”) or any successor thereto and utilized by the Depositary pursuant to which the Depositary may record the ownership of ADRs without the issuance of a certificate, which ownership shall be evidenced by periodic statements issued by the Depositary to the Holders entitled thereto. For purposes hereof, the Direct Registration System shall include access to the Profile Modification System maintained by DTC which provides for automated transfer of ownership between DTC and the Depositary.

 

(i)            “Holder” means the person or persons in whose name an ADR is registered on the ADR Register.

 

(j)            “Securities Act of 1933” means the United States Securities Act of 1933, as from time to time amended.

 

(k)           “Securities Exchange Act of 1934” means the United States Securities Exchange Act of 1934, as from time to time amended.

 

(l)            “Shares” mean the common shares of the Company (including any such shares initially represented by preliminary stock certificates (certificados provisionales)), and shall include the rights to receive Shares specified in paragraph (1) of the form of ADR.

 

(m)          “Transfer Office” is defined in paragraph (3) of the form of ADR.

 

(n)           “Withdrawal Order” is defined in Section 6.

 

2.  ADRs.  (a)  ADRs in certificated form shall be engraved, printed or otherwise reproduced at the discretion of the Depositary in accordance with its customary practices in its American depositary receipt business, or at the request of the Company typewritten and photocopied on plain or safety paper, and shall be substantially in the form set forth in the form of ADR, with such changes as may be required by the Depositary or the Company to comply with their obligations hereunder, any applicable law, regulation or usage or to indicate any special

 

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limitations or restrictions to which any particular ADRs are subject.  ADRs may be issued in denominations of any number of ADSs.  ADRs in certificated form shall be executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary.  ADRs in certificated form bearing the facsimile signature of anyone who was at the time of execution a duly authorized officer of the Depositary shall bind the Depositary, notwithstanding that such officer has ceased to hold such office prior to the delivery of such ADRs.

 

(b)  Direct Registration ADRs. Notwithstanding anything in this Deposit Agreement or in the form of ADR to the contrary, ADSs shall be evidenced by Direct Registration ADRs, unless certificated ADRs are specifically requested by the Holder.

 

(c)  Holders shall be bound by the terms and conditions of this Deposit Agreement and of the form of ADR, regardless of whether their ADRs are Direct Registration ADRs or certificated ADRs.

 

3.  Deposit of Shares.  In connection with the deposit of Shares hereunder, the Depositary or the Custodian may require the following in form satisfactory to it:  (a) a written order directing the Depositary to issue to, or upon the written order of, the person or persons designated in such order a Direct Registration ADR or ADRs evidencing the number of ADSs representing such deposited Shares (a “Delivery Order”); (b) proper endorsements or duly executed instruments of transfer in respect of such deposited Shares; (c) instruments assigning to the Depositary, the Custodian or a nominee of either any distribution on or in respect of such deposited Shares or indemnity therefor; and (d) proxies entitling the Custodian to vote such deposited Shares.  As soon as practicable after the Custodian receives Deposited Securities pursuant to any such deposit or pursuant to paragraph (10) or (13) of the form of ADR, the Custodian shall present such Deposited Securities for registration of transfer into the name of the Depositary, the Custodian or a nominee of either, to the extent such registration is practicable, at the cost and expense of the person making such deposit (or for whose benefit such deposit is made) and shall obtain evidence satisfactory to it of such registration.  Deposited Securities shall be held by the Custodian for the account and to the order of the Depositary at such place or places and in such manner as the Depositary shall determine.  Deposited Securities may be delivered by the Custodian to any person only under the circumstances expressly contemplated in this Deposit Agreement. To the extent that the provisions of or governing the Shares make delivery of certificates therefor impracticable, Shares may be deposited hereunder by such delivery thereof as the Depositary or the Custodian may reasonably accept, including, without limitation, by causing them to be credited to an account maintained by the Custodian for such purpose with the Company or an accredited intermediary, such as a bank, acting as a registrar for the Shares, together with delivery of the documents, payments and Delivery Order referred to herein to the

 

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Custodian or the Depositary.

 

4.  Issue of ADRs.  After any such deposit of Shares, the Custodian shall notify the Depositary of such deposit and of the information contained in any related Delivery Order by letter, first class airmail postage prepaid, or, at the request, risk and expense of the person making the deposit, by cable, telex or facsimile transmission.  After receiving such notice from the Custodian, the Depositary, subject to this Deposit Agreement, shall properly issue at the Transfer Office, to or upon the order of any person named in such notice, an ADR or ADRs registered as requested and evidencing the aggregate ADSs to which such person is entitled.

 

5.  Distributions on Deposited Securities.  To the extent that the Depositary determines in its reasonable discretion that any distribution pursuant to paragraph (10) of the form of ADR is not practicable with respect to any Holder, the Depositary may, after consultation with the Company if practicable, make such distribution as it so deems practicable, including the distribution of foreign currency, securities or property (or appropriate documents evidencing the right to receive foreign currency, securities or property) or the retention thereof as Deposited Securities with respect to such Holder’s ADRs (without liability for interest thereon or the investment thereof).

 

6.  Withdrawal of Deposited Securities.  In connection with any surrender of an ADR for withdrawal of the Deposited Securities represented by the ADSs evidenced thereby, the Depositary may require proper endorsement in blank of such ADR (or duly executed instruments of transfer thereof in blank) and the Holder’s written order directing the Depositary to cause the Deposited Securities represented by the ADSs evidenced by such ADR to be withdrawn and delivered to, or upon the written order of, any person designated in such order (a “Withdrawal Order”). Directions from the Depositary to the Custodian to deliver Deposited Securities shall be given by letter, first class airmail postage prepaid, or, at the request, risk and expense of the Holder, by cable, telex or facsimile transmission.  Delivery of Deposited Securities may be made by the delivery of certificates (which, if required by law shall be properly endorsed or accompanied by properly executed instruments of transfer or, if such certificates may be registered, registered in the name of such Holder or as ordered by such Holder in any Withdrawal Order) or by such other means as the Depositary may deem practicable, including, without limitation, by transfer of record ownership thereof to an account designated in the Withdrawal Order maintained either by the Company or an accredited intermediary, such as a bank, acting as a registrar for the Deposited Securities.

 

7.  Substitution of ADRs.  The Depositary shall execute and deliver a new Direct Registration ADR in exchange and substitution for any mutilated certificated ADR

 

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upon cancellation thereof or in lieu of and in substitution for such destroyed, lost or stolen certificated ADR, unless the Depositary has notice that such ADR has been acquired by a bona fide purchaser, upon the Holder thereof filing with the Depositary a request for such execution and delivery and a sufficient indemnity bond and satisfying any other reasonable requirements imposed by the Depositary.

 

8.  Cancellation and Destruction of ADRs; Maintenance of Records.  All ADRs surrendered to the Depositary shall be cancelled by the Depositary.  The Depositary is authorized to destroy ADRs in certificated form so cancelled in accordance with its customary practices.

 

The Depositary agrees to maintain or cause its agents to maintain records of all ADRs surrendered and Deposited Securities withdrawn under Section 6 hereof and paragraph (2) of the form of ADR, substitute ADRs delivered under Section 7 hereof, and canceled or destroyed ADRs under this Section 8, in keeping with the procedures ordinarily followed by stock transfer agents located in the City of New York or as required by the laws or regulations governing the Depositary.

 

9.  The Custodian.  Any Custodian in acting hereunder shall be subject to the directions of the Depositary and shall be responsible solely to it. The Depositary shall be responsible for the compliance by the Custodian with any applicable provisions of this Deposit Agreement to the extent such provisions are directly applicable to the Custodian.  The Depositary reserves the right to add, replace or remove a Custodian. The Depositary will give prompt notice of any such action, which will be advance notice if practicable.

 

Any Custodian may resign from its duties hereunder by at least 30 days written notice to the Depositary.  The Depositary will inform the Company of such resignation promptly upon receipt of written notice of resignation from the Custodian.  The Depositary may discharge any Custodian at any time upon notice to the Custodian being discharged.  Any Custodian ceasing to act hereunder as Custodian shall deliver, upon the instruction of the Depositary, all Deposited Securities held by it to a Custodian continuing to act. If upon the effectiveness of such resignation there would be no Custodian acting hereunder, the Depositary shall, promptly after receiving such notice, use commercially reasonable efforts to appoint a substitute custodian or custodians, each of which shall thereafter be a Custodian hereunder.  Promptly after the appointment of a successor Custodian, the Depositary shall provide the Company with notice of such appointment.  Notwithstanding anything to the contrary contained in this Deposit Agreement (including the ADRs), the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that (A) the Custodian has been determined by a final non-appealable judgment of a court of

 

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competent jurisdiction to have (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of custodial services to the Depositary  as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located and (B) the Company or the Holders have incurred direct damages as a result of such act or omission to act on the part of the Custodian.

 

10.  Co-Registrars and Co-Transfer Agents.  The Depositary may appoint and remove (i) co-registrars to register ADRs and transfers, combinations and split-ups of ADRs and to countersign ADRs in accordance with the terms of any such appointment and (ii) co-transfer agents for the purpose of effecting transfers, combinations and split-ups of ADRs at designated transfer offices in addition to the Transfer Office on behalf of the Depositary.  Each co-registrar or co-transfer agent (other than JPMorgan Chase Bank, N.A.) shall give notice in writing to the Company and the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this Deposit Agreement.

 

11.  Lists of Holders.  The Company shall have the right to inspect transfer records of the Depositary and its agents and the ADR Register, take copies thereof and require the Depositary and its agents to supply copies of such portions of such records as the Company may request.  The Depositary or its agent shall furnish to the Company promptly upon the written request of the Company, a list of the names, addresses and holdings of ADSs by all Holders as of a date within seven days of the Depositary’s receipt of such request.

 

12.  Depositary’s Agents.  The Depositary may perform its obligations under this Deposit Agreement through any agent appointed by it, provided that the Depositary shall notify the Company of such appointment and shall remain responsible for the performance of such obligations as if no agent were appointed, subject to paragraph (14) of the form of ADR.

 

13.  Successor Depositary.  The Depositary may at any time resign as Depositary hereunder by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided.  The Depositary may at any time be removed by the Company by providing no less than 60 days prior written notice of such removal to the Depositary, such removal to take effect the later of (i) the 60th day after such notice of removal is first provided and (ii) the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided. Notwithstanding the foregoing, if upon the resignation or removal of the Depositary a successor depositary is not appointed within the applicable 60-day period, then the Depositary may elect to terminate this Deposit Agreement and the

 

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ADR and the provisions of said paragraph (17) shall thereafter govern the Depositary’s obligations hereunder.  In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best efforts to appoint a successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York.  Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor.  The predecessor depositary, only upon payment of all sums due to it and on the written request of the Company, shall (i) execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder (other than its rights to indemnification and fees owing, each of which shall survive any such removal and/or resignation), (ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding ADRs.  Any such successor depositary shall promptly mail notice of its appointment to such Holders.   Any bank or trust company into or with which the Depositary may be merged or consolidated, or to which the Depositary shall transfer substantially all its American depositary receipt business, shall be the successor of the Depositary without the execution or filing of any document or any further act.

 

14.  Reports.  On or before the first date on which the Company gives notice, by publication or otherwise, of any meeting of holders of Shares or other Deposited Securities, or of any adjourned meeting of such holders, or of the taking of any action in respect of any cash or other distributions or the offering of any rights to such holders, the Company shall transmit to the Depositary a copy thereof in English or with an English translation or summary.  The Company has delivered to the Depositary, the Custodian and any Transfer Office, a copy of all provisions of or governing the Shares and any other Deposited Securities issued by the Company or any affiliate of the Company and, promptly upon any change thereto, the Company shall deliver to the Depositary, the Custodian and any Transfer Office, a copy (in English or with an English translation) of such provisions as so changed.  The Depositary and its agents may rely upon the Company’s delivery of all such communications, information and provisions for all purposes of this Deposit Agreement and the Depositary shall have no liability for the accuracy or completeness of any thereof.  The Company agrees to be responsible for fulfilling, and complying with, any and all registration and reporting requirements of the Superintendencia del Mercado de Valores and any applicable Peruvian governmental and/or regulatory authorities and/or agencies required under applicable Peruvian Law as a requirement for, or as consequence of, the entering into or the execution of this Deposit Agreement.

 

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15.  Additional Shares.  Neither the Company nor any company controlling, controlled by or under common control with the Company shall issue additional Shares, rights to subscribe for Shares, securities convertible into or exchangeable for Shares or rights to subscribe for any such securities or shall deposit any Shares under this Deposit Agreement, except under circumstances complying in all respects with the Securities Act of 1933.  In the event of any issuance of additional securities the Company shall have no obligation to register such additional securities under the Securities Act of 1933 to the extent the Company in its discretion deems it necessary or advisable in order to avoid any requirement to register such additional securities under the Securities Act of 1933.  The Depositary will use reasonable efforts to comply with written instructions of the Company not to accept for deposit hereunder any Shares identified in such instructions at such times and under such circumstances as may reasonably be specified in such instructions in order to facilitate the Company’s compliance with securities laws in the United States.

 

16.  Indemnification. The Company shall indemnify, defend and save harmless each of the Depositary and its agents against any loss, liability or expense (including reasonable fees and expenses of counsel) which may arise out of acts performed or omitted, in connection with the provisions of this Deposit Agreement and of the ADRs, as the same may be amended, modified or supplemented from time to time in accordance herewith by either the Depositary or its agents or their respective directors, employees, agents and affiliates, except for any liability or expense directly arising out of the negligence, criminal fraud or willful misconduct of the Depositary or its agents appointed in accordance herewith and acting in their capacities as such hereunder.

 

The indemnities set forth in the preceding paragraph shall also apply to any liability or expense which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement, prospectus (or placement memorandum), or preliminary prospectus (or preliminary placement memorandum) relating to the offer or sale of ADSs, except to the extent any such liability or expense arises out of (i) information relating to the Depositary or its agents (other than the Company), as applicable, furnished in writing by the Depositary and not changed or altered by the Company expressly for use in any of the foregoing documents or (ii) if such information is provided, the failure to state a material fact necessary to make the information provided not misleading.

 

Except as provided in the next succeeding paragraph, the Depositary shall indemnify, defend and save harmless the Company against any direct loss, liability or expense (including reasonable fees and expenses of counsel) incurred by the Company in respect of this Deposit Agreement to the extent such loss, liability or expense is due to the negligence, criminal fraud or willful misconduct of the Depositary or,

 

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subject to the limitations provided elsewhere in this Deposit Agreement, its agents appointed in accordance herewith and acting in their capacities as such hereunder.

 

Notwithstanding any other provision of this Deposit Agreement or the ADRs to the contrary, neither the Company nor the Depositary, nor any of their agents, shall be liable to the other for any indirect, special, punitive or consequential damages (collectively “Special Damages”) (including, without limitation, lost profits) of any form incurred by any of them or any other person or entity, whether or not foreseeable and regardless of the type of action in which such a claim may be brought except (i) to the extent such Special Damages arise from the gross negligence or willful misconduct of the party from whom indemnification is sought or (ii) to the extent Special Damages arise from or out of a claim brought by a third party (including, without limitation, Holders) against the Depositary, except to the extent such Special Damages arise out of the gross negligence or willful misconduct of the Depositary appointed and acting in their capacities as such hereunder.

 

The obligations set forth in this Section 16 shall survive the termination of this Deposit Agreement and the succession or substitution of any indemnified person.

 

17.  Notices.  Notice to any Holder shall be deemed given when first mailed, first class postage prepaid, to the address of such Holder on the ADR Register or received by such Holder. Failure to notify a Holder or any defect in the notification to a Holder shall not affect the sufficiency of notification to other Holders or to the beneficial owners of ADSs held by such other Holders.  Notice to the Depositary or the Company shall be deemed given when first received by it at the address or facsimile transmission number set forth in (a) or (b), respectively, or at such other address or facsimile transmission number as either may specify to the other by written notice:

 

(a)                                  JPMorgan Chase Bank, N.A.

1 Chase Manhattan Plaza, Floor 58
 New York, NY, 10005-1401

Attention:  ADR Administration

Fax: (212) 552-6650

 

(b)                                 Cementos Pacasmayo S.A.A.

Pasaje el Carmen Numero 180 Urb. El Vivero de Monterrico
 Lima,  Peru

Attention: Javier Durand

Fax: +51-1-437-5715

 

18.  Miscellaneous.  This Deposit Agreement is for the exclusive benefit of the Company, the Depositary, the Holders, and their respective successors hereunder,

 

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and shall not give any legal or equitable right, remedy or claim whatsoever to any other person.  The Company advises the Depositary that because none of the services rendered hereunder are rendered or have effects in Peru (other than those of the Custodian in accepting Shares and otherwise acting in accordance herewith) the services provided hereunder are not subject to the Consumer Protection Code (Law No. 29571).  The Holders and owners of ADRs from time to time shall be parties to this Deposit Agreement and shall be bound by all of the provisions hereof.  If any such provision is invalid, illegal or unenforceable in any respect, the remaining provisions shall in no way be affected thereby.  This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one instrument.

 

19.  Consent to Jurisdiction.  The Company irrevocably agrees that any legal suit, action or proceeding against the Company brought by the Depositary or any Holder, arising out of or based upon this Deposit Agreement or the transactions contemplated hereby, may be instituted in any state or federal court in New York, New York, and irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. The Company also irrevocably agrees that any legal suit, action or proceeding against the Depositary brought by the Company, arising out of or based upon this Deposit Agreement or the transactions contemplated hereby, may only be instituted in a state or federal court in New York, New York.

 

The Company has appointed CT Corporation System, 111 Eighth Avenue, New York, New York, as its authorized agent (the “Authorized Agent”) upon which process may be served in any action or proceeding arising out of or based on this Deposit Agreement or the transactions contemplated hereby by the Depositary or any Holder, expressly consents to the exclusive jurisdiction of any such court in respect of any such action, and waives any other requirements of or objections to personal jurisdiction with respect thereto. Such appointment shall be irrevocable. The Company represents and warrants that the Authorized Agent has agreed to act as said agent for service of process and the Company agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid.  The Company further hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents in any suit, action or proceeding against the Company, by service by mail of a copy thereof upon the Authorized Agent (whether or not the appointment of such Authorized Agent shall for any reason prove to be ineffective or such Authorized Agent shall fail to accept or acknowledge such service), with a copy mailed to the Company by registered or certified air mail,

 

10

 

postage prepaid, to its address provided in Section 17(b) hereof. The Company agrees that the failure of the Authorized Agent to give any notice of such service to it shall not impair or affect in any way the validity of such service or any judgment or award rendered in any action or proceeding based thereon. If, for any reason, the Authorized Agent named above or its successor shall no longer serve as agent of the Company to receive service of process, notice or papers in New York, the Company shall promptly appoint a successor acceptable to the Depositary, so as to serve and will promptly advise the Depositary thereof.  In the event the Company fails to continue such designation and appointment in full force and effect, the Company hereby waives personal service of process and/or notice upon it and consents that any such service of process and/or notice may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices hereunder, and service of process and/or notice so made shall be deemed completed five (5) days after the same shall have been so mailed.   Notwithstanding the foregoing, any action based on this Deposit Agreement or the transactions contemplated hereby may be instituted by the Depositary and Holders in any competent court in the Republic of Peru and/or the United States.

 

To the extent that the Company or any of its properties, assets or revenues may have or may hereafter be entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or other matter under or arising out of or in connection with the Shares or Deposited Securities, the ADSs, the ADRs or this Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement.

 

EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY).

 

11

 

IN WITNESS WHEREOF, CEMENTOS PACASMAYO S.A.A. and JPMORGAN CHASE BANK, N.A. have duly executed this Deposit Agreement as of the day and year first above set forth and all holders of ADRs shall become parties hereto upon acceptance by them of ADRs issued in accordance with the terms hereof.

 

	
 
    	
CEMENTOS   PACASMAYO S.A.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
Vice   President
    

 

12

 

EXHIBIT A

ANNEXED TO AND INCORPORATED IN

DEPOSIT AGREEMENT

 

[FORM OF FACE OF ADR]

 

No. of ADSs:

 

Number

 

Each ADS represents

[EXCHANGE] Share

 

CUSIP:

 

AMERICAN DEPOSITARY RECEIPT

 

evidencing

 

AMERICAN DEPOSITARY SHARES

 

representing

 

ORDINARY SHARES

 

of

 

CEMENTOS PACASMAYO S.A.A.

 

(Incorporated under the laws of the Republic of Peru)

 

JPMORGAN CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as depositary hereunder (the “Depositary”), hereby certifies that          is the registered owner (a “Holder”) of American Depositary Shares (“ADSs”), each (subject to paragraph (13)) representing                   common shares (including the rights to receive Shares described in paragraph (1), “Shares” and, together with any other securities, cash or property from time to time held by the Depositary in respect or in lieu of deposited Shares, the “Deposited Securities”), of Cementos Pacasmayo S.A.A., a corporation organized under the laws of the Republic of Peru (the “Company”), deposited under the Deposit Agreement dated as of [DATE]  , 2012 (as amended from time to time, the “Deposit Agreement”) among the Company, the Depositary and all Holders from time to time of American Depositary Receipts issued thereunder (“ADRs”), each of whom by accepting

 

A-1

 

an ADR becomes a party thereto.  The Deposit Agreement and this ADR (which includes the provisions set forth on the reverse hereof) shall be governed by and construed in accordance with the laws of the State of New York.

 

(1)  Issuance of ADRs; Pre-Release.  This ADR is one of the ADRs issued under the Deposit Agreement.  Subject to the other provisions hereof, the Depositary may so issue ADRs for delivery at the Transfer Office (as hereinafter defined) only against deposit of:  (a) Shares in form satisfactory to the Custodian; (b) rights to receive Shares from the Company or any registrar, transfer agent, clearing agent or other entity recording Share ownership or transactions; or, (c) in accordance with the next paragraph hereof.

 

In its capacity as Depositary, the Depositary shall not lend Shares or ADSs; provided, however, that, unless requested in writing by the Company to cease doing so during reasonable periods necessary in order to enable compliance with applicable law, the Depositary may (i) issue ADSs prior to the receipt of Shares and (ii) deliver Shares prior to the receipt of ADSs for withdrawal of Deposited Securities, including ADSs which were issued under (i) above but for which Shares may not have been received (each such transaction a “Pre-Release”). The Depositary may receive ADSs in lieu of Shares under (i) above (which ADSs will promptly be canceled by the Depositary upon receipt by the Depositary) and receive Shares in lieu of ADSs under (ii) above. Each such Pre-Release will be subject to a written agreement whereby the person or entity (the “Applicant”) to whom ADSs or Shares are to be delivered (a) represents that at the time of the Pre-Release the Applicant or its customer owns the Shares or ADSs that are to be delivered by the Applicant under such Pre-Release, (b) agrees to indicate the Depositary as owner of such Shares or ADSs in its records and to hold such Shares or ADSs in trust for the Depositary until such Shares or ADSs are delivered to the Depositary or the Custodian, (c) unconditionally guarantees to deliver to the Depositary or the Custodian, as applicable, such Shares or ADSs, and (d) agrees to any additional restrictions or requirements that the Depositary deems appropriate. Each such Pre-Release will be at all times fully collateralized with cash, U.S. government securities or such other collateral as the Depositary deems appropriate, terminable by the Depositary on not more than five (5) business days’ notice and subject to such further indemnities and credit regulations as the Depositary deems appropriate. The Depositary will normally limit the number of ADSs and Shares involved in such Pre-Release at any one time to thirty percent (30%) of the ADSs outstanding (without giving effect to ADSs outstanding under (i) above), provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems appropriate. The Depositary may also set limits with respect to the number of ADSs and Shares involved in Pre-Release with any one person on a case-by-case basis as it deems appropriate. The Depositary may retain for its own account any compensation received by it in conjunction with the foregoing. Collateral provided in

 

A-2

 

connection with Pre-Release transactions, but not the earnings thereon, shall be held for the benefit of the Holders (other than the Applicant).

 

Every person depositing Shares under the Deposit Agreement represents and warrants that such Shares are validly issued and outstanding, fully paid, nonassessable and free of pre-emptive rights, that the person making such deposit is duly authorized so to do and that such Shares (A) are not “restricted securities” as such term is defined in Rule 144 under the Securities Act of 1933 (“Restricted Securities”) unless at the time of deposit the requirements of paragraphs (c), (e), (f) and (h) of Rule 144 shall not apply and such Shares may be freely transferred and may otherwise be offered and sold freely in the United States or (B) have been registered under the Securities Act of 1933. To the extent the person depositing Shares is an “affiliate” of the Company as such term is defined in Rule 144, the person also represents and warrants that upon the sale of the ADSs, all of the provisions of Rule 144 which enable the Shares to be freely sold (in the form of ADSs) will be fully complied with and, as a result thereof, all of the ADSs issued in respect of such Shares will not be on the sale thereof, Restricted Securities.  Such representations and warranties shall survive the deposit of Shares and issuance of ADRs.  The Depositary will not knowingly accept for deposit under the Deposit Agreement any Shares required to be registered under the Securities Act of 1933 and not so registered; the Depositary may refuse to accept for such deposit any Shares identified by the Company in order to facilitate the Company’s compliance with such Act.

 

(2)  Withdrawal of Deposited Securities.  Commencing at such  time as the preliminary stock certificates (certificados provisionales) have been converted into common shares of the Company in dematerialized form, subject to paragraphs (4) and (5), upon surrender of (i) a certificated ADR in form satisfactory to the Depositary at the Transfer Office or (ii) proper instructions and documentation in the case of a Direct Registration ADR, the Holder hereof is entitled to delivery at, or to the extent in dematerialized form from, the Custodian’s office of the Deposited Securities at the time represented by the ADSs evidenced by this ADR, provided that the Depositary may deliver Shares prior to the receipt of ADSs for withdrawal of Deposited Securities, including ADSs which were issued under (1) above but for which Shares may not have been received (until such ADSs are actually deposited, “Pre-released Shares”) only if all the  conditions in (1) above related to such Pre-Release are satisfied).  At the request, risk and expense of the Holder hereof, the Depositary may deliver such Deposited Securities at such other place as may have been requested by the Holder.  Notwithstanding any other provision of the Deposit Agreement or this ADR, the withdrawal of Deposited Securities may be restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time to time) under the Securities Act of 1933. Some or all of the

 

A-3

 

Shares may be held by the Custodian through CAVALI S.A. ICLV (“CAVALI”) book-entry settlement system. Under applicable Peruvian law, Shares deposited with CAVALI cannot be withdrawn from CAVALI without complying with applicable regulations in Peru.  It is expected that a Holder wishing to hold Shares directly will be required to establish or maintain an account at CAVALI to receive delivery of such Shares.  As of the date of this Deposit Agreement, CAVALI permits accounts to be held by individuals and entities through brokers or other custodians, and regulations regarding CAVALI do not discriminate between (a) citizens or residents and (b) non-citizens or non-residents of Peru.

 

(3)  Transfers of ADRs.  The Depositary or its agent will keep, at a designated transfer office (the “Transfer Office”), (a) a register (the “ADR Register”) for the registration, registration of transfer, combination and split-up of ADRs, and, in the case of Direct Registration ADRs, shall include the Direct Registration System, which at all reasonable times will be open for inspection by Holders and the Company for the purpose of communicating with Holders in the interest of the business of the Company or a matter relating to the Deposit Agreement and (b) facilities for the delivery and receipt of ADRs. The term ADR Register includes the Direct Registration System.   Title to this ADR (and to the Deposited Securities represented by the ADSs evidenced hereby), when properly endorsed (in the case of ADRs in certificated form) or upon  delivery to the Depositary of proper instruments of transfer, is transferable by delivery with the same effect as in the case of negotiable instruments under the laws of the State of New York; provided that the Depositary, notwithstanding any notice to the contrary, may treat the person in whose name this ADR is registered on the ADR Register as the absolute owner hereof for all purposes and neither the Depositary nor the Company will have any obligation or be subject to any liability under the Deposit Agreement to any holder of an ADR, unless such holder is the Holder thereof.  Subject to paragraphs (4) and (5), this ADR is transferable on the ADR Register and may be split into other ADRs or combined with other ADRs into one ADR, evidencing the aggregate number of ADSs surrendered for split-up or combination, by the Holder hereof or by duly authorized attorney upon surrender of this ADR at the Transfer Office properly endorsed (in the case of ADRs in certificated form) or upon  delivery to the Depositary of proper instruments of transfer and duly stamped as may be required by applicable law; provided that the Depositary may close the ADR Register at any time or from time to time when deemed expedient by it or when reasonably requested by the Company in order to enable the Company to comply with applicable law.  At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated ADR with a Direct Registration ADR, or vice versa, execute and deliver a certificated ADR or a Direct Registration ADR, as the case may be, for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the certificated ADR or Direct Registration ADR, as the case may be, substituted.

 

A-4

 

(4)  Certain Limitations.  Prior to the issue, registration, registration of transfer, split-up or combination of any ADR, the delivery of any distribution in respect thereof, or, subject to the last sentence of paragraph (2), the withdrawal of any Deposited Securities, and from time to time in the case of clause (b)(ii) of this paragraph (4), the Company, the Depositary or the Custodian may require:  (a) payment with respect thereto of (i) any stock transfer or other tax or other governmental charge, (ii) any stock transfer or registration fees in effect for the registration of transfers of Shares or other Deposited Securities upon any applicable register and (iii) any applicable charges as provided in paragraph (7) of this ADR; (b) the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of any signature and (ii) such other information, including without limitation, information as to citizenship, residence, exchange control approval, beneficial ownership of any securities, compliance with applicable law, regulations, provisions of or governing Deposited Securities and terms of the Deposit Agreement and this ADR, as it may deem necessary or proper; and (c) compliance with such regulations as the Depositary may establish consistent with the Deposit Agreement.  The issuance of ADRs, the acceptance of deposits of Shares, the registration, registration of transfer, split-up or combination of ADRs or, subject to the last sentence of paragraph (2), the withdrawal of Deposited Securities may be suspended, generally or in particular instances, when the ADR Register or any register for Deposited Securities is closed or when any such action is deemed advisable by the Depositary or when reasonably requested by the Company in order to enable the Company to comply with applicable law.

 

(5)  Taxes.  If any tax or other governmental charge (including any penalties and/or interest) shall become payable by or on behalf of the Custodian or the Depositary with respect to this ADR, any Deposited Securities represented by the ADSs evidenced hereby or any distribution thereon, such tax or other governmental charge shall be paid by the Holder hereof to the Depositary.  The Depositary may refuse to effect any registration, registration of transfer, split-up or combination hereof or, subject to the last sentence of paragraph (2), any withdrawal of such Deposited Securities until such payment is made.  The Depositary may also deduct from any distributions on or in respect of Deposited Securities, or may sell by public or private sale for the account of the Holder hereof any part or all of such Deposited Securities (after attempting by reasonable means to notify the Holder hereof prior to such sale), and may apply such deduction or the proceeds of any such sale in payment of such tax or other governmental charge, the Holder hereof remaining liable for any deficiency, and shall reduce the number of ADSs evidenced hereby to reflect any such sales of Shares. In connection with any distribution to Holders, the Company will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Company; and

 

A-5

 

the Depositary and the Custodian will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Depositary or the Custodian.  The Depositary will forward to the Company such information from its records maintained by it in its capacity as depositary hereunder as the Company may reasonably request to enable the Company to file any necessary reports with governmental authorities or agencies that are required in order to enable Holders to benefit from any applicable tax withholding treaties. If the Depositary determines that any distribution in property other than cash (including Shares or rights) on Deposited Securities is subject to any tax that the Depositary or the Custodian is obligated to withhold, the Depositary may dispose of all or a portion of such property in such amounts and in such manner as the Depositary deems necessary and practicable to pay such taxes, by public or private sale, and the Depositary shall distribute the net proceeds of any such sale or the balance of any such property after deduction of such taxes to the Holders entitled thereto. Each Holder of an ADR or an interest therein agrees to indemnify the Depositary, the Company, the Custodian and any of their respective directors, employees, agents and affiliates against, and hold each of them harmless from, any claims by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained.

 

(6) Disclosure of Interests.  To the extent that the provisions of or governing any Deposited Securities may require disclosure of or impose limits on beneficial or other ownership of Deposited Securities, other Shares and other securities and may provide for blocking transfer, voting or other rights to enforce such disclosure or limits, Holders and all persons holding ADRs agree to comply with all such disclosure requirements and ownership limitations and to comply with any reasonable Company instructions in respect thereof. The Depositary agrees to forward, upon the request and at the expense of the Company, any written request for beneficial ownership information from the Company to the Holders, and at the Company’s expense, to promptly forward to the Company any responses received by the Depositary. The Company reserves the right to instruct Holders to deliver their ADSs for cancellation and withdrawal of the Deposited Securities so as to permit the Company to deal directly with the Holder thereof as a holder of Shares and Holders agree to comply with such instructions.   The Depositary agrees to cooperate with the Company in its efforts to inform Holders of the Company’s exercise of its rights under this paragraph and agrees to consult with, and provide reasonable assistance without risk, liability or expense on the part of the Depositary, to the Company on the manner or manners in which it may enforce such rights with respect to any Holder.

 

(7)  Charges of Depositary.  The Depositary may charge, and collect from, (i) each person to whom ADSs are issued, including, without limitation, issuances against

 

A-6

 

deposits of Shares, issuances in respect of Share Distributions, Rights and Other Distributions (as such terms are defined in paragraph (10)), issuances pursuant to a stock dividend or stock split declared by the Company, or issuances pursuant to a merger, exchange of securities or any other transaction or event affecting the ADSs or the Deposited Securities, and (ii) each person surrendering ADSs for withdrawal of Deposited Securities or whose ADSs are cancelled or reduced for any other reason, U.S.$5.00 for each 100 ADSs (or portion thereof) issued, delivered, reduced, cancelled or surrendered (as the case may be). The Depositary may sell (by public or private sale) sufficient securities and property received in respect of Share Distributions, Rights and Other Distributions prior to such deposit to pay such charge. The following additional charges shall be incurred by the Holders, by any party depositing or withdrawing Shares or by any party surrendering ADSs, to whom ADSs are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the ADSs or the Deposited Securities or a distribution of ADSs pursuant to paragraph (10)), whichever is applicable (i) a fee of U.S.$0.05 or less per ADS for any Cash distribution made pursuant to the Deposit Agreement, (ii) a fee of U.S.$1.50 per ADR or ADRs for transfers made pursuant to paragraph (3) hereof, (iii) a fee for the distribution or sale of securities pursuant to paragraph (10) hereof, such fee being in an amount equal to the fee for the execution and delivery of ADSs referred to above which would have been charged as a result of the deposit of such securities (for purposes of this paragraph (7) treating all such securities as if they were Shares) but which securities or the net cash proceeds from the sale thereof are instead distributed by the Depositary to Holders entitled thereto,  (iv) an aggregate fee of U.S.$0.05 or less per ADS per calendar year (or portion thereof) for services performed by the Depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against Holders as of the record date or record dates set by the Depositary during each calendar year and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions), and (v) reimbursement of such fees, charges and expenses as are incurred by the Depositary and/or any of the Depositary’s agents (including, without limitation, the Custodian and expenses incurred on behalf of Holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the Shares or other Deposited Securities, the delivery of Deposited Securities or otherwise in connection with the Depositary’s or its Custodian’s compliance with applicable law, rule or regulation (which charge shall be assessed on a proportionate basis against Holders as of the record date or dates set by the Depositary and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions). The Company will pay all other charges and expenses of the Depositary and any agent of the Depositary (except the Custodian) pursuant to

 

A-7

 

agreements from time to time between the Company and the Depositary, except (i) stock transfer or other taxes and other governmental charges (which are payable by Holders or persons depositing Shares), (ii) cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or Holders delivering Shares, ADRs or Deposited Securities (which are payable by such persons or Holders), (iii) transfer or registration fees for the registration or transfer of Deposited Securities on any applicable register in connection with the deposit or withdrawal of Deposited Securities (which are payable by persons depositing Shares or Holders withdrawing Deposited Securities; there are no such fees in respect of the Shares as of the date of the Deposit Agreement), and (iv) expenses of the Depositary in connection with the conversion of foreign currency into U.S. dollars (which are paid out of such foreign currency). Such charges may at any time and from time to time be changed by agreement between the Company and the Depositary.

 

(8)  Available Information.  The Deposit Agreement, the provisions of or governing Deposited Securities and any written communications from the Company, which are both received by the Custodian or its nominee as a holder of Deposited Securities and made generally available to the holders of Deposited Securities, are available for inspection by Holders at the offices of the Depositary and the Custodian and at the Transfer Office.  The Depositary will distribute copies of such communications (or English translations or summaries thereof) to Holders when furnished by the Company. The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and accordingly files certain reports with the United States Securities and Exchange Commission (the “Commission”).  Such reports and other information may be inspected and copied at public reference facilities maintained by the Commission located at the date hereof at 100 F Street, NE, Washington, DC 20549.

 

(9)  Execution.  This ADR shall not be valid for any purpose unless executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary.

 

Dated:

 

	
 
    	
JPMORGAN   CHASE BANK, N.A., as Depositary
    
	
 
    	
By
    	
 
    
	
 
    	
Authorized   Officer
    

 

The Depositary’s office is located at 1 Chase Manhattan Plaza, Floor 58, New York, NY, 10005-1401

 

A-8

 

[FORM OF REVERSE OF ADR]

 

(10)  Distributions on Deposited Securities.  Subject to paragraphs (4) and (5), to the extent practicable, the Depositary will distribute to each Holder entitled thereto on the record date set by the Depositary therefor at such Holder’s address shown on the ADR Register, in proportion to the number of Deposited Securities (on which the following distributions on Deposited Securities are received by the Custodian) represented by ADSs evidenced by such Holder’s ADRs:  (a) Cash.  Any U.S. dollars available to the Depositary resulting from a cash dividend or other cash distribution or the net proceeds of sales of any other distribution or portion thereof authorized in this paragraph (10) (“Cash”), on an averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such distribution being impermissible or impracticable with respect to certain Holders, and (iii) deduction of the Depositary’s expenses in (1) converting any foreign currency to U.S. dollars by sale or in such other manner as the Depositary may determine to the extent that it determines that such conversion may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars to the United States by such means as the Depositary may determine to the extent that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority required for such conversion or transfer, which is obtainable at a reasonable cost and within a reasonable time and (4) making any sale by public or private means in any commercially reasonable manner.  (b) Shares.  (i) Additional ADRs evidencing whole ADSs representing any Shares available to the Depositary resulting from a dividend or free distribution on Deposited Securities consisting of Shares (a “Share Distribution”) and (ii) U.S. dollars available to it resulting from the net proceeds of sales of Shares received in a Share Distribution, which Shares would give rise to fractional ADSs if additional ADRs were issued therefor, as in the case of Cash. (c) Rights.  (i) Warrants or other instruments in the discretion of the Depositary representing rights to acquire additional ADRs in respect of any rights to subscribe for additional Shares or rights of any nature available to the Depositary as a result of a distribution on Deposited Securities (“Rights”), to the extent that the Company timely furnishes to the Depositary evidence satisfactory to the Depositary that the Depositary may lawfully distribute the same (the Company has no obligation to so furnish such evidence), or (ii) to the extent the Company does not so furnish such evidence and sales of Rights are practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Rights as in the case of Cash, or (iii) to the extent the Company does not so furnish such evidence and such sales cannot practicably be accomplished by reason of the nontransferability of the Rights, limited markets therefor, their short duration or otherwise, nothing (and any Rights may lapse).  (d) Other Distributions.  (i) Securities or property available to the Depositary resulting from any distribution on Deposited Securities other than Cash, Share Distributions and Rights  (“Other Distributions”), by any means that the Depositary may deem equitable and practicable, or (ii) to the

 

A-9

 

extent the Depositary deems distribution of such securities or property not to be equitable and practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Other Distributions as in the case of Cash. Such U.S. dollars available will be distributed by checks drawn on a bank in the United States for whole dollars and cents. Fractional cents will be withheld without liability and dealt with by the Depositary in accordance with its then current practices.

 

(11)  Record Dates.  The Depositary may, after consultation with the Company if practicable, fix a record date (which, to the extent applicable, shall be as near as practicable to any corresponding record date set by the Company) for the determination of the Holders who shall be responsible for the fee assessed by the Depositary for administration of the ADR program and for any expenses provided for in paragraph (7) hereof as well as for the determination of the Holders who shall be entitled to receive any distribution on or in respect of Deposited Securities, to give instructions for the exercise of any voting rights, to receive any notice or to act in respect of other matters and only such Holders shall be so entitled or obligated.

 

(12)  Voting of Deposited Securities.  As soon as practicable after receipt from the Company of notice of any meeting or solicitation of consents or proxies of holders of Shares or other Deposited Securities, the Depositary shall distribute to Holders a notice stating (a) such information as is contained in such notice and any solicitation materials, (b) that each Holder on the record date set by the Depositary therefor will, subject to any applicable provisions of Peruvian law, be entitled to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities represented by the ADSs evidenced by such Holder’s ADRs and (c) the manner in which such instructions may be given, including instructions to give a discretionary proxy to a person designated by the Company.  Upon receipt of instructions of a Holder on such record date in the manner and on or before the date established by the Depositary for such purpose, the Depositary shall endeavor insofar as practicable and permitted under the provisions of or governing Deposited Securities and Peruvian law (the Depositary having no obligation to interpret Peruvian law) to vote or cause to be voted the Deposited Securities represented by the ADSs evidenced by such Holder’s ADRs in accordance with such instructions. The Company understands that, as a result, the Depositary may be presenting votes on behalf of some instructing Holders that may be contrary to votes it presents on behalf of other instructing Holders.   To the extent not prohibited by Peruvian law, the Company agrees to accept such any and all such votes. The Depositary will not itself exercise any voting discretion in respect of any Deposited Securities.  There is no guarantee that Holders generally or any Holder in particular will receive the notice described above with sufficient time to enable such Holder to return any voting instructions to the Depositary in a timely manner or that the Depositary will be able to vote as instructed by each Holder to the extent there are any limitations under Peruvian law.

 

A-10

 

Notwithstanding anything contained in the Deposit Agreement or any ADR, the Depositary may, to the extent not prohibited by law or regulations, or by the requirements of the stock exchange on which the ADSs are listed, in lieu of distributing the materials provided to the Depositary in connection with any meeting of, or solicitation of consents or proxies from, holders of Deposited Securities, distribute to the Holders a notice that provides Holders with, or otherwise publicizes to Holders, instructions on how to retrieve such materials or receive such materials upon request (i.e., by reference to a website containing the materials for retrieval or a contact for requesting copies of the materials).

 

(13)  Changes Affecting Deposited Securities.  Subject to paragraphs (4) and (5), the Depositary may, in its discretion, amend this ADR or distribute additional or amended ADRs (with or without calling this ADR for exchange) or cash, securities or property on the record date set by the Depositary therefor to reflect any change in par value, split-up, consolidation, cancellation or other reclassification of Deposited Securities, any Share Distribution or Other Distribution not distributed to Holders or any cash, securities or property available to the Depositary in respect of Deposited Securities from (and the Depositary is hereby authorized to surrender any Deposited Securities to any person and, irrespective of whether such Deposited Securities are surrendered or otherwise cancelled by operation of law, rule, regulation or otherwise, to sell by public or private sale any property received in connection with) any recapitalization, reorganization, merger, consolidation, liquidation, receivership, bankruptcy or sale of all or substantially all the assets of the Company, and to the extent the Depositary does not so amend this ADR or make a distribution to Holders to reflect any of the foregoing, or the net proceeds thereof, whatever cash, securities or property results from any of the foregoing shall constitute Deposited Securities and each ADS evidenced by this ADR shall automatically represent its pro rata interest in the Deposited Securities as then constituted.

 

(14)  Exoneration. The Depositary, the Company, their agents and each of them shall: (a) incur no liability (i) if any present or future law, rule, regulation , fiat, order or decree of the United  States, the Republic of Peru or any other country, or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or governing any Deposited Securities, any present or future provision of the Company’s charter, any act of God, war, terrorism or other circumstance beyond its control shall prevent or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement or this ADR provides shall be done or performed by it or them (including, without limitation, voting pursuant to paragraph (12) hereof), or (ii) by reason of any exercise or failure to exercise any discretion given it in the Deposit Agreement or this ADR; (b) assume no liability except to perform its obligations to the extent they are specifically set forth in this ADR and

 

A-11

 

the Deposit Agreement without gross negligence, criminal fraud or willful misconduct; (c) in the case of the Depositary and its agents, be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR; (d) in the case of the Company and its agents hereunder be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR, which in its opinion may involve it in expense or liability, unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability be furnished as often as may be required; or (e) not be liable for any action or inaction by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, or any other person believed by it to be competent to give such advice or information. The Depositary shall not be liable for the acts or omissions made by, or the insolvency of, any securities depository, clearing agency or settlement system.   The Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, the insolvency of any Custodian that is not a branch or affiliate of JPMorgan Chase Bank, N.A. Notwithstanding anything to the contrary contained in the Deposit Agreement or this ADR, the Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, any act or omission to act on the part of the Custodian except to the extent that (A) the Custodian has been determined by a final non-appealable judgment of a court of competent jurisdiction to have (i) committed fraud or willful misconduct in the provision of custodial services to the Depositary or (ii) failed to use reasonable care in the provision of custodial services to the Depositary  as determined in accordance with the standards prevailing in the jurisdiction in which the Custodian is located and (B) the Company or the Holders have incurred direct damages as a result of such act or omission to act on the part of the Custodian.  The Depositary, its agents and the Company may rely and shall be protected in acting upon any written notice, request, direction or other document believed by them to be genuine and to have been signed or presented by the proper party or parties. The Depositary shall be under no obligation to inform Holders or any other holders of an interest in an ADS about the requirements of Peruvian law, rules or regulations or any changes therein or thereto. The Depositary and its agents will not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, for the manner in which any such vote is cast or for the effect of any such vote.  The Depositary may rely upon instructions from the Company or its counsel in respect of any governmental or agency approval or license required for any currency conversion, transfer or distribution.  The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs. Notwithstanding anything to the contrary set forth in the Deposit Agreement or an ADR, the Depositary and its agents may fully respond to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement, any Holder or Holders, any ADR or ADRs or otherwise related

 

A-12

 

hereto or thereto to the extent such information is requested or required by or pursuant to any lawful authority, including without limitation laws, rules, regulations, administrative or judicial process, banking, securities or other regulators.   None of the Depositary, the Custodian or the Company shall be liable for the failure by any Holder or beneficial owner to obtain the benefits of credits on the basis of non-U.S. tax paid against such Holder’s or beneficial owner’s income tax liability. The Depositary and the Company shall not incur any liability for any tax consequences that may be incurred by Holders and beneficial owners on account of their ownership of the ADRs or ADSs. The Depositary shall not incur any liability for any failure to determine that any distribution or action may be lawful or reasonably practicable, for the content of any information submitted to it by or on behalf of the Company for distribution to the Holders or for any inaccuracy of any translation thereof, for any investment risk associated with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to lapse upon the terms of this Deposit Agreement or for the failure or timeliness of any notice from the Company.  Notwithstanding anything herein or in the Deposit Agreement to the contrary, the Depositary and the Custodian(s) may use third party delivery services and providers of information regarding matters such as pricing, proxy voting, corporate actions, class action litigation and other services in connection herewith and the Deposit Agreement, and use local agents to provide extraordinary services such as attendance at annual meetings of issuers of securities. Although the Depositary and the Custodian will use reasonable care (and cause their agents to use reasonable care) in the selection and retention of such third party providers and local agents, they will not be responsible for any errors or omissions made by them in providing the relevant information or services.  The Company has agreed to indemnify the Depositary and its agents under certain circumstances.  Neither the Depositary, the Company nor any of their respective agents shall be liable to Holders or beneficial owners of interests in ADSs for any indirect, special, punitive or consequential damages (including, without limitation, lost profits) of any form incurred by any person or entity, whether or not foreseeable and regardless of the type of action in which such a claim may be brought. No disclaimer of liability under the Securities Act of 1933 is intended by any provision hereof.

 

(15)  Resignation and Removal of Depositary; the Custodian. The Depositary may resign as Depositary by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement.  The Depositary may at any time be removed by the Company by no less than 60 days prior written notice of such removal, to become effective upon the later of (i) the 60th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as

 

A-13

 

provided in the Deposit Agreement. The Depositary may appoint substitute or additional Custodians and the term “Custodian” refers to each Custodian or all Custodians as the context requires.

 

(16)  Amendment.  Subject to the last sentence of paragraph (2), the ADRs and the Deposit Agreement may be amended by the Company and the Depositary, provided that any amendment that imposes or increases any fees or charges (other than stock transfer or other taxes and other governmental charges, transfer or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or that shall otherwise prejudice any substantial existing right of Holders, shall become effective 30 days after notice of such amendment shall have been given to the Holders.  Every Holder of an ADR at the time any amendment to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such ADR, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby.  In no event shall any amendment impair the right of the Holder of any ADR to surrender such ADR and receive the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. Any amendments or supplements which (i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the Securities Act of 1933 or (b) the ADSs or Shares to be traded solely in electronic book-entry form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not to prejudice any substantial rights of Holders.   Notwithstanding the foregoing, if any governmental body or regulatory body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement or the form of ADR to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and the ADR at any time in accordance with such changed laws, rules or regulations.  Such amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or within any other period of time as required for compliance.  Notice of any amendment to the Deposit Agreement or form of ADRs shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders to retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the Depositary’s or the Company’s website or upon request from the Depositary).

 

(17)  Termination.  The Depositary may, and shall at the written direction of the Company, terminate the Deposit Agreement and this ADR by mailing notice of such termination to the Holders at least 30 days prior to the date fixed in such notice for such termination; provided, however, if the Depositary shall have (i) resigned as

 

A-14

 

Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor depositary shall not be operating hereunder within 60 days of the date of such resignation, or (ii) been removed as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor depositary shall not be operating hereunder on the 60th day after the Company’s notice of removal was first provided to the Depositary.   After the date so fixed for termination, the Depositary and its agents will perform no further acts under the Deposit Agreement and this ADR, except to receive and hold (or sell) distributions on Deposited Securities and deliver Deposited Securities being withdrawn.  As soon as practicable after the expiration of six months from the date so fixed for termination, the Depositary shall sell the Deposited Securities and shall thereafter (as long as it may lawfully do so) hold in a segregated account the net proceeds of such sales, together with any other cash then held by it under the Deposit Agreement, without liability for interest, in trust for the pro  rata benefit of the Holders of ADRs not theretofore surrendered.  After making such sale, the Depositary shall be discharged from all obligations in respect of the Deposit Agreement and this ADR, except to account for such net proceeds and other cash.  After the date so fixed for termination, the Company shall be discharged from all obligations under the Deposit Agreement except for its obligations to the Depositary and its agents.

 

(18) Appointment.   Each Holder and each person holding an interest in ADSs, upon acceptance of any ADSs (or any interest therein) issued in accordance with the terms and conditions of the Deposit Agreement shall be deemed for all purposes to (a) be a party to and bound by the terms of the Deposit Agreement and the applicable ADR(s), and (b) appoint the Depositary its attorney-in-fact, with full power to delegate, to act on its behalf and to take any and all actions contemplated in the Deposit Agreement and the applicable ADR(s), to adopt any and all procedures necessary to comply with applicable law and to take such action as the Depositary in its sole discretion may deem necessary or appropriate to carry out the purposes of the Deposit Agreement and the applicable ADR(s), the taking of such actions to be the conclusive determinant of the necessity and appropriateness thereof.

 

(19) Waiver.  EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER 

 

A-15

 

THEORY).

 

A-16Exhibit 10.1

 

OPEN PRICE POWER SUPPLY AGREEMENT

ENTERED INTO BY AND BETWEEN ELECTROPERÚ S.A.

AND CEMENTOS PACASMAYO S.A.A.

 

This Open Price Power Supply Contract is hereby entered into by and between:

 

The Supplier, electricity generation company ELECTROPERÚ S.A., holder of Tax ID Number (RUC) 20100027705, with registered office at Av. Pedro Miotta 421, San Juan de Miraflores, Province and Department of Lima, acting by and through its General Manger, César Raúl TENGAN MATSUTAHARA, identified by National Identity Card (DNI) 08557857, vested by powers of attorney registered in Electronic Entry 11009718 of the Registry of Companies of the Public Records Office in and for Lima and Callao (hereinafter, THE POWER SUPPLIER); and

 

The Customer, CEMENTOS PACASMAYO S.A.A., holder of Tax ID Number (RUC) 20419387658, with principal place of business at Calle La Colonia 150, Urbanización El Vivero, Santiago de Surco, Province and Department of Lima, acting by and through Messrs. Lino ABRAM CABALLERINO, identified by National Identity Card (DNI) 09137017, and Humberto NADAL DEL CARPIO, identified by National Identity Card (DNI) 07785454, vested by powers of attorney registered in Entry 11076338 of the Registry of Companies in and for Lima (hereinafter, THE CUSTOMER) under the following terms and conditions:

 

ARTICLE ONE: RECITALS

 

1.1        THE POWER SUPPLIER is a corporation duly authorized to carry out electric energy generation and transmission activities, in accordance with the generation and transmission concession agreements entered into with the Ministry of Energy and Mines, put into the form of a notarially recorded instrument on February 20, 1995.

 

1.2        THE CUSTOMER is a cement company which has recently entered into a power supply contract with Kallpa Generación S.A., for a Maximum Power Supply of 9 MW during Peak Hours and 16 MW, during Off-Peak Hours, which expires on July 1, 2012.

 

1.3        THE CUSTOMER requires for THE POWER SUPPLIER to provide additional electricity over and above that provided hereunder in Sub-clause 1.2 and for all requirements of its own operations up to December 31, 2020.

 

1.4        The Parties hereby agree that this is an Open Price Power Supply Contract, in accordance with Section 44 of the Law.

 

 

ARTICLE TWO: DEFINITIONS

 

When the terms defined in Exhibit 1 are used in this Contract, they shall have the meaning ascribed thereto in such exhibit. When the context so requires, the terms defined in Exhibit 1 shall have the same meaning, whether they are used in singular or in plural.

 

ARTICLE THREE: PURPOSE

 

3.1        Power Supply

 

From the Start Date, THE POWER SUPPLIER agrees to supply and make available to THE CUSTOMER at the Points of Delivery, the maximum power (hereinafter, Maximum Power) during Peak Hours and during Off-Peak Hours as established in the following schedule:

 

	
 
    	
 
    	
Maximum Power (MW)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
2012
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2011
    	
 
    	
January 1
   to June 30
    	
 
    	
July 1 to
   December
   31
    	
 
    	
2013
    	
 
    	
2014
    	
 
    	
2015
    	
 
    	
2016
    	
 
    	
2017
    	
 
    	
2018
    	
 
    	
2019
    	
 
    	
2020
    	
 
    
	
Peak Hours
    	
 
    	
16,0
    	
 
    	
16,0
    	
 
    	
25,0
    	
 
    	
34,0
    	
 
    	
29,5
    	
 
    	
29,5
    	
 
    	
36,0
    	
 
    	
42,0
    	
 
    	
36,0
    	
 
    	
44,5
    	
 
    	
57,5
    	
 
    
	
Off-Peak Hours
    	
 
    	
24,0
    	
 
    	
24,0
    	
 
    	
40,0
    	
 
    	
50,0
    	
 
    	
50,0
    	
 
    	
52,0
    	
 
    	
52,0
    	
 
    	
52,0
    	
 
    	
62,0
    	
 
    	
65,0
    	
 
    	
66,0
    	
 
    

 

The Maximum Power values and their application start and end dates anticipated for every year as from 2013, shall be confirmed or modified by the CUSTOMER by written notice forwarded to THE POWER SUPPLIER on a date no later than September 30 — or on the date immediately preceding business day, in case September 30 is a non-business day — of the year immediately preceding in relation to the year corresponding to the Maximum Power and the respective start and end dates subject of confirmation or modification. Under no circumstances may the values of the Maximum Power modified by the CUSTOMER exceed 110% (hundred and ten percent) of the initial values established in the schedule for each period.

 

In absence of such written notice by THE CUSTOMER,  or if the notice was received by THE POWER SUPPLIER after  the said day and month, the Parties shall consider that the value to apply will be the Maximum Power determined in the schedule and that the application start and end dates of such Maximum Power, will be January 1 and December 31, respectively, of the year fixed in such schedule.

 

The Maximum Power represents the Maximum Power Supply obligations of THE POWER SUPPLIER to THE CUSTOMER. The Parties agree to establish — in favor of THE CUSTOMER — a tolerance of 5% (five percent) of the Maximum Power being applicable; thus, THE CUSTOMER may

 

 

eventually consume power quantities in excess of the Maximum Power, up to a maximum limit of 5% (five percent) of the applicable Maximum Power, without paying any power excess penalty established in Sub-clause 5.2. This tolerance limit shall be applicable only whenever the power supply to THE CUSTOMER — at the Point of Delivery established in Article Seven — is not shared by THE POWER SUPPLIER with some other supplier.

 

As from the Start Date, THE CUSTOMER agrees to purchase the Minimum Power (hereinafter, Minimum Power) during Peak Hours and during Off-Peak Hours, and to pay the power charges agreed in Sub-clause 6.2.2. For the purposes hereof, the values of the Minimum Powers are equivalent to 30% (thirty percent) of the respective values of the applicable Maximum Power; this value, with respect to the Maximum Power of the schedule mentioned above, is as follows:

 

	
 
    	
 
    	
Minimum Power (MW)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
2012
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2011
    	
 
    	
January 1
   to June 30
    	
 
    	
July 1 to
   December
   31
    	
 
    	
2013
    	
 
    	
2014
    	
 
    	
2015
    	
 
    	
2016
    	
 
    	
2017
    	
 
    	
2018
    	
 
    	
2019
    	
 
    	
2020
    	
 
    
	
Peak Hours and Off-Peak Hours  
    	
 
    	
4,8
    	
 
    	
4,8
    	
 
    	
7,5
    	
 
    	
10,2
    	
 
    	
8,9
    	
 
    	
8,9
    	
 
    	
10,8
    	
 
    	
12,6
    	
 
    	
10,8
    	
 
    	
13,4
    	
 
    	
17,3
    	
 
    

 

The Minimum Power represents the minimum power purchase obligations of THE CUSTOMER from THE POWER SUPPLIER.

 

Without prejudice to any increased to the previously prescribed Maximum Power, in case THE CUSTOMER requires increases in the Maximum Power, it may request the additional supply from THE POWER SUPPLIER,  in writing, no less than sixty (60) days in advance. In that case, the Parties shall establish the conditions applicable to such increases by mutual agreement.

 

3.2        Energy Supply

 

As from the Start Date, THE POWER SUPPLIER agrees to provide on a monthly basis to THE CUSTOMER, at each of the Points of Delivery, the Maximum Power.

 

As from the Start Date, THE CUSTOMER agrees to purchase and pay on a monthly basis to THE POWER SUPPLIER, the charge for Active Energy agreed in Sub-clause 6.2.4; and, when applicable, the charge for Reactive Energy agreed in Sub-clause 6.4.

 

 

3.3        Excess Consumption

 

THE POWER SUPPLIER shall not be obliged to supply at the Points of Delivery more power than the Maximum Power established in Sub-clause 3.1, or more energy than the Maximum Power established in Sub-clause 3.2.

 

In case that (i) during more then two (2) consecutive months, or more then three (3) non-consecutive months during the course of a calendar year, the Monthly Maximum Demand During Peak Hours of THE CUSTOMER exceeds the respective Maximum Power plus the tolerance agreed upon in Sub-clause 3.1,  where applicable, or (ii) the Active Energy consumption of THE CUSTOMER exceeds the Maximum Power During Peak Hours and/or the Maximum Power During Off-Peak Hours for more than two (2) consecutive months, or for more then three (3) non-consecutive months during the course of a calendar year — without prejudice to the penalties charges agreed upon in Sub-clauses 5.2 and 5.3 — THE POWER SUPPLIER shall notify THE CUSTOMER in writing about such cases of non-compliance. In such cases, if the Parties do not agree to increase the respective Maximum Power, THE CUSTOMER shall be obliged to enter into contracts with other suppliers for the additional power supply in sufficient amount to cater to such excess.

 

3.4        Modification to the Power under Contract

 

Only by agreement of the Parties, pursuant to Sub-clause 18.1 may the maximum and minimum power commitments set out in Sub-clause 3.1 be expanded or reduced.

 

The Parties agree that the supply subject matter of the Contract is of an exclusive nature. Without prejudice to the above, THE CUSTOMER may enter into contracts with other suppliers for its power and energy requirements in addition to the maximum commitments of Power Supply and of energy set out in Sub-clauses 3.1 and 3.2, respectively, only whenever: (i) THE CUSTOMER had entered into a contract with another supplier for part of its power supply requirements on a date prior to that of the signing of this Contract; or, (ii) the Parties had not reached agreement as to the increase of power requested by the CUSTOMER within thirty (30) calendar days following the filing of the request by the latter to THE POWER SUPPLIER, pursuant to the provisions of Sub-clause 3.1. In this case, THE CUSTOMER may enter into contracts with other suppliers for the difference between its total power requirement and the Maximum Power under contract with THE POWER SUPPLIER,  invalidating the tolerance of consumer power established in 3.1.

 

To the extent the power supply of THE CUSTOMER provided by Kallpa Generation S.A., as referred to in Sub-clause 1.2 of Article One, is in effect, that is to say, up to June 30, 2012, the Monthly Maximum Demand of THE CUSTOMER shall be divided between all the electricity suppliers of THE CUSTOMER based on its maximum power under contract or agreed upon, so that the portion corresponding to THE POWER SUPPLIER will be

 

 

proportional to the Maximum Power fixed in Sub-clause 3.1 with respect to the total maximum power under contract or agreed upon. In the same case mentioned above, THE POWER SUPPLIER shall assume the part of the total energy consumed monthly by the CUSTOMER, in proportion to the Maximum Power established in 3.1 with respect to the corresponding Monthly Maximum Demand of THE CUSTOMER.

 

ARTICLE FOUR: TERM

 

This Contract shall come into force on the date of signing by the representatives of both parties; and it shall end on December 31, 2020.

 

Without prejudice to the provisions of this clause concerning the term of the Contract, the power supply subject matter of this Contract shall begin on the Start Date defined in Item 14 of Exhibit 1.

 

ARTICLE FIVE: PRICES, PENALTIES AND ADJUSTMENTS

 

5.1        For the supply subject matter of the Contract, THE CUSTOMER shall pay monthly to THE POWER SUPPLIER the unit prices set out in Exhibit 2 for the power and for the Active Energy, without prejudice to the provisions of 6.2.7.

 

5.2        In case that the Monthly Coincident Demand of THE CUSTOMER exceeds the sum of the corresponding Maximum Power plus the consumer power tolerance established in 3.1, where applicable, this excess shall be paid by the CUSTOMER with a penalty; to that effect, THE POWER SUPPLIER shall bill and THE CUSTOMER shall pay the price of power set forth in Exhibit 2, plus a penalty of 25% (twenty-five percent) of this price.

 

5.3        In case that in the Peak Hour period or in the Off-Peak Hour period, the Monthly Maximum Demand During Peak Hours and/or the Monthly Maximum Demand During Off-Peak Hours exceeds the sum of the corresponding Maximum Power plus the consumer power tolerance established in 3.1, where applicable; and, as a result thereof, the monthly power consumption by THE CUSTOMER exceeds the Maximum Power During Peak Hours and/or the Maximum Power During Off-Peak Hours, such excess shall be billed by THE POWER SUPPLIER and paid by THE CUSTOMER as per the penalty equivalent to the portion proportional to such excess of energy of the Cost of Uninstalling Active Energy defined in Item 3 of Exhibit 1, plus 1,7% (one point seven percent).

 

For purposes of the billing of the penalty for such excess energy, the Cost of Uninstalling Active Energy stated in Nuevos Soles (S/.) shall be converted into US Dollars (US$) with application of the respective weighted average sell exchange rate in effect on the last business day of the supply month published by the Superintendency of Banking, Insurance and Private Pension Fund Management Companies or by the substituting competent body.

 

 

5.4        Since it is foreseeable that during the performance of the Contract, THE POWER SUPPLIER may sell power and energy to third parties at a price higher than that agreed to with THE CUSTOMER, or that THE CUSTOMER may purchase power and energy from other suppliers at a price lower than that agreed to in the Contract, the Parties hereby declare that they expressly assume such risks, as risks inherent to the Contract, and that since these assumptions are foreseeable, there shall not be file any claims concerning the modification of the agreed prices or the agreed adjustment formulas, for any reason whatsoever, it being understood that they reciprocally waive to any such claims.

 

5.5        The prices and penalties agreed to are net, that is to say, they do not include Value Added Tax (VAT) or the Contribution set forth in Law 28749, Item h)  — Rural Electrification Law, that shall be in the account of THE CUSTOMER.  In addition, all future changes to the tax laws, which may establish taxes to be paid by electricity consumers, which must be passed on to THE CUSTOMER, shall result in an automatic adjustment to the agreed prices, in such manner that THE POWER SUPPLIER will always receive the agreed upon net prices.

 

ARTICLE SIX: BILLING AND PAYMENT

 

6.1        As from the Start Date and during the Contract’s term, the billing for the supply shall be performed monthly (calendar month) breaking down every one of the items billed; and in two invoices: one for the Power Supply and Active Energy, stated in US Dollars (US$); and another invoice for the charges for transmission; and, if applicable, for Reactive Energy, stated in Nuevos Soles (S/.).

 

6.2        The monthly billing for the Power Supply and for the Active Energy shall be performed by adding the charges for power and for Active Energy, to be obtained as follows:

 

6.2.1        When the Monthly Coincident Demand of THE CUSTOMER does not exceed the addition of the Maximum Power plus the consumer power tolerance established in 3.1, where applicable, THE POWER SUPPLIER shall bill and THE CUSTOMER shall pay the valuation of the Monthly Coincident Demand.

 

6.2.2       In case that the Monthly Coincident Demand is lower than the Minimum Power established in 3.1, THE POWER SUPPLIER shall bill and THE CUSTOMER shall pay the valuation of the respective Minimum Power, whether or not it has used such Minimum Power.

 

6.2.3       The billing of the excess power determined pursuant to the provisions of 5.2, shall be equal to the product of the multiplication of such excess by the respective price, plus the agreed upon penalty.

 

 

6.2.4       The monthly charge for Active Energy shall be equal to the product of the multiplication of the Active Energy used by the CUSTOMER by the price of Active Energy agreed to in 5.1.

 

6.2.5        In case that the power supply was shared with another power supplier, the power and the Active Energy to be billed by THE POWER SUPPLIER, in a regular situation where THE CUSTOMER does not have excess consumption, shall be determined in accordance with the following:

 

6.2.5.1        During the period comprised between January 1, 2011 and June 30, 2012, when the supply referred to in Sub-clause 1.2 is in effect:

 

	
Power:
    
	
 
    
	
PELP = DMC * (PMELP / (PMELP + PCOtro))
    
	
 
    
	
Active Energy:
    
	
 
    
	
EELP = E * (PELP / DMC)
    
	
 
    
	
Where:
    
	
 
    
	
PELP
    	
:
    	
Power   to be billed by THE POWER SUPPLIER to   THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
DMC
    	
:
    	
Monthly   Coincident Demand of THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
PMELP
    	
:
    	
Maximum   Power during Peak Hours under contract by THE POWER   SUPPLIER and  THE CUSTOMER   established in 3.1; the fixed tolerance does   not apply to such point.
    
	
 
    	
 
    	
 
    
	
PCOtro
    	
:
    	
Power   under contract during Peak Hours by THE CUSTOMER   with other supplier(s).
    
	
 
    	
 
    	
 
    
	
EELP
    	
:
    	
Monthly   Active Energy to be billed by THE POWER SUPPLIER   to THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
E
    	
:
    	
Total   energy supplied to THE CUSTOMER by   all its suppliers, including THE POWER SUPPLIER,   recorded every fifteen (15) minutes of the corresponding month.
    

 

In case there is DMC in the Off-Peak Hours period set forth for the power in Point 4 of Exhibit 2, PMELP and PCOtro shall be those under contract for such Off-Peak Hours period.

 

6.2.5.2        During the period comprised between July 1, 2012 and December 31, 2020:

 

 

	
CASE 1: DMC <= PMELP
    
	
 
    
	
·
    	
Power:
    
	
 
    	
 
    
	
 
    	
PELP = DMC
    
	
 
    	
 
    
	
·
    	
Active   Energy:
    
	
 
    	
 
    
	
 
    	
EELP = E
    
	
 
    	
 
    
	
CASE 2: DMC > PMELP
    
	
 
    	
 
    
	
·
    	
Power:
    
	
 
    	
 
    
	
 
    	
PELP = PMELP
    
	
 
    	
 
    
	
·
    	
Active   Energy:
    
	
 
    	
 
    
	
 
    	
EELP = E * (PELP / DMC)
    

 

	
Where:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PELP
    	
:
    	
Power   to be billed by THE POWER SUPPLIER   to THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
DMC
    	
:
    	
Monthly   Coincident Demand of THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
PMELP
    	
:
    	
Maximum   Power During Peak Hours under contract with THE POWER   SUPPLIER by THE CUSTOMER   established in 3.1; the fixed tolerance does   not apply to such point.
    
	
 
    	
 
    	
 
    
	
EELP
    	
:
    	
Monthly   Active Energy to be billed by THE  POWER SUPPLIER to THE CUSTOMER.
    
	
 
    	
 
    	
 
    
	
E
    	
:
    	
Total   energy supplied to THE CUSTOMER by   all its suppliers, including THE POWER SUPPLIER,  recorded every fifteen (15) minutes of the corresponding   month.
    

 

In case there is DMC in the Off-Peak Hours period set forth for the power in Point 4 of Exhibit 2, PMELP shall be that under contract for such Off-Peak Hours period.

 

6.2.6       In the event of congestion in the transmission systems of the SEIN and/or if there are restrictions or interruptions in the supply of natural gas for the generation of electricity, THE POWER SUPPLIER shall bill and THE CUSTOMER shall pay, in addition to the price of Active Energy set forth in 5.1, the additional costs, plus 1,7% (one point seven percent), that COES — in application to the legal provisions in force during the performance of the Contract — may assign THE

 

 

POWER SUPPLIER in the corresponding month, provided that: (i) this is the direct result of such situations, and (ii) they must be assumed by THE POWER SUPPLIER as a consequence of the supply to THE CUSTOMER. The costs to be paid by THE CUSTOMER shall be determined in the proportion represented by the Active Energy supplied to THE CUSTOMER during the occurrence of the mentioned events with respect to the total energy supplied by THE POWER SUPPLIER to all its customers affected by the occurrence of such events, during the same period.

 

For the purposes of the corresponding billing, the mentioned additional costs stated in Nuevos Soles (S/.) shall be converted into US Dollars (US$), with application of the corresponding weighted average sell exchange rate in effect on the last business day of the supply month, published by the Superintendency of Banking, Insurance and Private Pension Fund Management Companies or by the substituting competent body.

 

6.2.7       The billing for the excess energy determined pursuant to the provisions of 5.3 shall be equal to the product of the multiplication of such excess by the penalty agreed to in 5.3.

 

6.3        The power and Active Energy generation prices fixed and adjusted in accordance with the provisions of Exhibit 2, will be increased by the unit tolls for transmission — including the toll relating to the secondary transmission system and to the additional transmission system — determined and published by OSINERGMIN, including their respective updates. The Unit Toll for Connection to the Main Transmission System (PCSPT) shall include all charges set forth by OSINERGMIN.

 

6.4        THE CUSTOMER shall be solely liable for  the payment associated with the consumption of inductive and capacitive Reactive Energy to the owner of the transmission systems up to the Point of Delivery, which may be attributable to the power supply to THE CUSTOMER.  In case that the companies owning the bars located before or at the Point of Delivery, issued bills for payment by THE POWER SUPPLIER with  some charge  for inductive and/or capacitive Reactive Energy associated with the power supply from THE POWER SUPPLIER to THE CUSTOMER, based on the corresponding readings performed in the mentioned bars, THE POWER SUPPLIER shall pass on to THE CUSTOMER any  eventual amounts billed for such items. In any case, billing for Reactive Energy shall take place in accordance with the regulations, criteria and prices set forth by OSINERGMIN.

 

6.5        THE POWER SUPPLIER shall forward to the electronic mail addresses specified by THE CUSTOMER,  the calculation of the billing for the supply delivered, as well as the records of the meter used for such calculation, within the first five (5) calendar days of the month immediately following the consumption month. Subsequently, within the following five (5) calendar

 

 

days, THE POWER SUPPLIER shall issue and submit the respective bills to THE CUSTOMER, accompanied by the supporting Exhibits. The bills must be paid or observed in full or in part by the CUSTOMER, with the relevant arguments and proof, within a term of fifteen (15) calendar days from the receipt of the bills duly accompanied by the supporting exhibits, provided that the meter’s records have been forwarded by electronic means.

 

6.6        If the bills were not paid or observed within the term specified in 6.5, THE POWER SUPPLIER shall bill and THE CUSTOMER shall pay regular interest in addition to arrears interest. Regular interest shall be determined based on the application of the Average Lending Rate in foreign currency (TAMEX) for bills in US Dollars (US$) and of the Average Lending Rate in Domestic Currency (TAMN) for bills in Nuevos Soles (S/.), published by the Superintendency of Banking, Insurance and Private Pension Fund Management Companies or by the substituting competent body, in effect up to the time of its application. The arrears interest shall be equivalent to 115% (one hundred and fifteen percent) of the regular interest.

 

Regular interest shall be applied as from the due date of the bill not paid on time, up to the eighth day following the due date of the bill or up to date of its payment, whichever occurs first. Arrears interest shall be applied as from the ninth day following the due date of the bill, up to the date of its payment. Under no circumstances may this interest be accumulated or applied simultaneously.

 

6.7        If THE CUSTOMER made any observations to the bill, within the term stipulated in 6.5, THE CUSTOMER must pay the non-observed amount. Once the mentioned term has expired, bills may not be observed.

 

6.8        In case of observations of bills, the Parties shall try to solve by direct dealings any disagreements concerning the observed portion, within fifteen (15) calendar days following to the presentation of the observation.

 

If the observations are not reconciled by direct dealings within the term prescribed in this sub-clause, the dispute shall be resolved through arbitration pursuant to Article Twelve.

 

Once the dispute has been solved, whether through direct dealings or through arbitration, in case the claim submitted is not admitted, the debtor party must pay the creditor party the amount owed, plus any regular and arrear interest accrued up to the date of payment, within the following ten (10) calendar days.

 

6.9        The accumulation of debts for an amount equivalent to two (2) months of power supply billings, shall lead to the supply being cut off immediately, prior written notice —five days in advance — by THE POWER SUPPLIER to THE CUSTOMER. In such case, THE POWER SUPPLIER reserves the right to coordinate with the transmission company that owns the bar where the Point

 

 

of Delivery  is located,  for the supply to be cut off. For the purposes of the provisions of this sub-clause, lack of payment of the amount observed of the bills observed by the CUSTOMER in accordance with the provisions of Sub-clause 6.5 shall not be considered part of the debt.

 

As long as the supply cut situation is maintained, THE POWER SUPPLIER shall bill monthly and THE CUSTOMER must pay for the charge associated with the power, as set forth in 6.2.2. If the cut off situation extends for a period in excess of two (2) months, THE POWER SUPPLIER shall be empowered to terminate the Contract due to default by THE CUSTOMER.

 

The supply shall only be reconnected when THE CUSTOMER has paid the full amount owed for consumption, fixed power charges, the corresponding reconnection costs and other debts, plus regular and arrears interest accrued in accordance with 6.6.

 

6.10     The stipulations of Sections 6.5 to 6.8 shall be applicable to the bills submitted by each party to the other (other than supply bills), for amounts owed with respect to penalties or other sums payable in accordance with the Contract. Under no circumstances may the parties offset amounts or grant unilateral discounts in the supply bills or other bills issued by the other party; which — if applicable — shall represent an act of non-compliance with the Contract.

 

ARTICLE SEVEN: POINT OF DELIVERY

 

The Point of Delivery of the power supply subject matter of this Contract shall be the 60 kV Bar of the Guadalupe Sub-Station.

 

ARTICLE EIGHT: TECHNICAL FEATURES

 

THE POWER SUPPLIER agrees to supply the electricity subject matter of the Contract to THE CUSTOMER at the Point of Delivery, abiding by the conditions related to product quality and supply quality specified in the Electricity Services Quality Technical Standard (NTCSE), approved by Supreme Decree 020-97-EM, as well as the current and future amendments, interpretations, complementary and/or substituting provisions.

 

In accordance with the provisions of the NTCSE, for the purposes of application of such Standard, the nominal tension shall be taken into account, this being equal to the average of the tension recorded at the respective Point of Delivery, for the past twelve (12) months; or, of the number of months elapsed since the Start Date, if lower than twelve (12).

 

ARTICLE NINE: READING

 

9.1        THE POWER SUPPLIER shall be responsible for  the  installation and maintenance of its reading equipment or for the hiring — without any cost

 

 

whatsoever for THE CUSTOMER — of the equipment needed to read consumption parameters and parameters associated with the quality of the electricity supplied to THE CUSTOMER, at the points of reading — associated to the Point of Delivery — as mentioned in the unifilar scheme shown in Exhibit 3.

 

9.2        The power and energy meter shall be electronic, multi-function, Class 0.2 IEC or higher, with a mass information storage memory capacity of at least thirty-five (35) days, with integration intervals every 15 minutes, including modem for remote inquiries.

 

THE CUSTOMER may install reading equipment similar to that owned by THE POWER SUPPLIER, this being in the account of THE CUSTOMER with respect to  acquisition, installation and corresponding maintenance expenses.

 

9.3        Time updating, as well as any modifications to the configuration of the reader’s base page and/or memory, which may become necessary, shall be performed under the sole responsibility of THE POWER SUPPLIER, through teleprocessing or on site, prior telephone notice to THE CUSTOMER. Once these actions have been carried performed, THE POWER SUPPLIER shall forward to THE CUSTOMER by electronic mail, the file for every meter, containing the information stored up to the interval of fifteen (15) minutes immediately preceding the execution of the specified actions.

 

Any on site intervention on the reading equipment, which may result in the alteration of the records (substitutions, contrasts, etc.) shall be made by the POWER SUPPLIER, prior written notice to THE CUSTOMER, at least three (3) business days in advance; with THE CUSTOMER being entitled to  witness such interventions and to sign the corresponding reports. Non-attendance by the representative of THE CUSTOMER to the said interventions, shall be no impediment for their undertaking, and it shall not invalidate the results.

 

9.4        THE POWER SUPPLIER shall use, for the monthly billing, the information stored in the memory of the meter installed at the points of reading mentioned in 9.1, as from midnight at the beginning of Day One, to midnight at the end of the last day of every month.

 

9.5        THE POWER SUPPLIER shall provide to THE CUSTOMER — at no cost whatsoever — the facilities required to access the information recorded in the meter under THE POWER SUPPLIER, via remote inquiry and/or direct reading, in accordance with the technical procedure set forth to that effect.

 

9.6        For the reading of the power consumed at the Point of Delivery, the average value of power recorded in each fifteen-minute integration periods corresponding to the supply month shall be considered.

 

 

9.7        A meter installed under liability of THE POWER SUPPLIER shall be matched at the Reading Laboratory of THE POWER SUPPLIER — at no cost whatsoever for THE CUSTOMER —, prior to its installation at the respective point of reading, and every three (3) years beginning with the Start Date of the supply specified in Article Four. On an extraordinary basis, the meter shall be compared whenever any of the Parties requests it in writing; in these cases, if as a result of the comparison, the equipment revealed an error in excess of that of its accuracy class, the cost of the comparison shall be in the account of THE POWER SUPPLIER, and if the error was equal to or lower than such limit, the cost of the comparison shall be in the account of the requesting party.

 

In the same instances specified in the preceding paragraph, THE CUSTOMER may request a verification of the accuracy of the meter, by the National Institute of Defense for the Competition and Protection of Intellectual Property (INDECOPI); or, in case INDECOPI did not have the elements necessary to carry out such verification, it may request the issuing of a certification by this entity, stating that the comparison made by THE POWER SUPPLIER is accurate.

 

9.8        In case that due to any fault in the reading equipment the amounts of electricity consumed by the CUSTOMER had not been appropriately recorded, or if tests performed on the reading equipment reveal that there was an error greater than that of its accuracy class, or that due to any reasons, the information recorded in the reading equipment is not available, THE POWER SUPPLIER will prepare the corresponding billing from the month when the fault was detected or when the reading information was not available, using the best information available, which shall be compatible with the balance made or approved by the COES at the corresponding transfer bar.

 

ARTICLE TEN: OPERATIONAL COORDINATION

 

10.1      Emergency situations that occur in the SEIN and result from unexpected failures or outages of power supply and/or transmission equipment shall be immediately notified by THE POWER SUPPLIER to THE CUSTOMER via telephone and followed by notice via fax or e-mail within twenty-four (24) hours, indicating causes for the mentioned failures or outages when possible. The parties shall follow the corresponding procedure established by the Technical Regulation for Operating in Real Time, in accordance with the provisions set forth in Sub-Clause 14.6.

 

10.2      The parties hereby agree to share information on yearly maintenance programs for the respective power facilities involved for which each of the parties is responsible, i.e. from the Point of Delivery to THE POWER SUPPLIER and then from the Point of Delivery to THE CUSTOMER, as soon as such information becomes available, in order to make the necessary

 

 

arrangements in order to minimize effects on the normal supply of electricity to THE CUSTOMER.

 

ARTICLE ELEVEN: FORCE MAJEURE

 

11.1      The definition and contents of force majeure (including acts of God) shall be governed by Section 1315 et seq of the Peruvian Civil Code.

 

11.2      The party directly affected by a force majeure event shall immediately notify the other party in writing and within no more than forty-eight (48) hours of the event, demonstrating the manner in which it affects its contractual obligations and indicating an estimated timeframe. The notified party may observe the force majeure or its contractual implications within five (5) business days as from receiving notification, in which case the dispute shall be settled under Article 12.

 

11.3      The party which fulfillment of its obligations is affected by an act of God or force majeure shall put forth its best effort to resolve the breach as soon as possible. If, despite this, the act of God or force majeure continues for more than three (3) months and substantially affects the fulfillment of its contractual obligations, either party may terminate the contract.

 

ARTICLE TWELVE: SETTLEMENT OF DISPUTES

 

12.1      Any dispute that should arise between the parties regarding the contract shall be resolved in a direct manner within ten (10) business days, extendable by mutual consent of the parties.

 

12.2      If an agreement is not reached directly within the term established in Sub-Clause 12.1, the parties agree that disputes arising from this Contract shall be settled by de jure arbitration, unless the parties expressly agree to settle a specific dispute by de facto arbitration. The arbitration shall be conducted in accordance with the Rules and Regulations of Arbitration of the Lima Chamber of Commerce, except when naming the arbitrators, in which case the provisions agreed upon in Sub-Clause 12.3 shall govern, as well as Executive Order (Decreto Legislativo) 1071.

 

12.3      The arbitration court shall consist of three (3) arbitrators, one appointed by each party and a third arbitrator appointed by the two arbitrators designated by each party.

 

If the parties fail to appoint arbitrators in the arbitration request or in their reply, the remaining arbitrator or arbitrators shall be designated by the Arbitration Center of the Lima Chamber of Commerce.

 

If the designated arbitrators do not reach an agreement regarding the selection of the third arbitrator in the term specified in the Rules and

 

 

Regulations of the Arbitration Center of the Lima Chamber of Commerce, the designation of the third arbitrator shall be made by said administrative entity for arbitration.

 

12.4      The provisions set forth in Sub-clause 12.3 shall be applied when naming substitute arbitrators, if necessary.

 

12.5      The arbitration court shall be held in Lima and the award issued shall be final and conclusive.

 

12.6      The expenses incurred in the arbitration proceeding, including arbitrators’ fees, shall be assumed by the parties, as ordered in the arbitration award or ruling.

 

12.7      Without prejudice to the arbitration agreement hereof, the parties submit themselves to the jurisdiction of the Judges and Courts of the District of Lima, thereby waiving the jurisdiction of their respective legal domiciles.

 

ARTICLE THIRTEEN: TERMINATION OF THE CONTRACT

 

13.1      Grounds for Contractual Termination due to Non-Compliance with Prior Notice to the Breaching Party

 

13.1.1         Except for those grounds included in Sub-clause 13.2 hereof, the parties hereto agree that in the event that either party breaches any of its obligations under the Contract, the aggrieved party may request a notarized letter indicating it will meet the provision within a term of no less than thirty (30) days, otherwise, the Contract shall be terminated.

 

13.1.2         In the event of breach by either party, the other party shall be permitted to request payment for damages expressly provided for in this Contract. In no case shall the parties be responsible for any other damage not covered herein, including damages which are accidental, punitive, direct, indirect, caused by third parties and/or loss of profit.

 

13.1.3         If the Contract is terminated in accordance with Sub-clause 13.1.1, the party responsible for such grounds shall pay the opposing party a penalty equal to twelve (12) times the total average monthly bill for the last twelve (12) months, or the actual period is less than twelve (12) months. The penalty must be paid no later than thirty (30) days as from the date of termination of the Contract.

 

13.1.4         The parties expressly agree that the penalty indicated in the preceding paragraph shall constitute the maximum limit of liability of either party for damages resulting from or related to breach of obligations under this Contract.

 

 

13.2 Grounds for Termination of the Contract as a Matter of Law

 

13.2.1         Either party shall reserve the right to terminate this Contract as a matter of law if any of the following grounds constituting alleged breach are confirmed, pursuant to the provisions of Article 1430 of the Civil Code:

 

a)      If the other party is declared bankrupt by the competent authority by a final ruling.

 

b)      If the other party is threatened with forced or voluntary dissolution or liquidation.

 

c)      If the other party is voluntarily or unwillingly prevented from developing its corporate purpose.

 

d)      If the obliged party is unaware of or fails to fulfill the arbitration awards or injunctions under Article 12 and, in the case of arbitration awards, had not been subject of appeal of annulment during the legal term provided or, if appropriate, when presenting an appeal of annulment, said annulment had been dismissed by the Judiciary.

 

e)      If the other party transfers its obligations under this contract to a third party without the prior written consent of its counterpart.

 

f)       If a force majeure event prevents the total or partial performance of the Contract for a term longer than three (3) months, pursuant to Article 11.

 

13.2.2         THE POWER SUPPLIER shall also reserve the right to terminate this Contract as a matter of law on the ground of default in payment under Sub-clause 6.9 hereof, provided, in this case, that the outage lasts more than two (2) months.

 

Moreover,  THE CUSTOMER shall also reserve the right to terminate this Contract as a matter of law in the event of breach by THE POWER SUPPLIER to (i) provide energy to THE CUSTOMER for more than thirty (30) consecutive calendar days or thirty (30) total days during a sixty-day calendar period, provided the breach is not due to an act of God or force majeure, or (ii) pay in an unreasonable manner the compensation established in the NTCSE and this contract.

 

13.2.3         For a termination to take effect as a matter of law, the non-breaching party shall notify the other party via notary of its decision to terminate, indicating the specific ground confirmed to have been breached.

 

 

13.2.4         In the event the Contract is terminated as provided in Sub-clauses 13.2.1.d, 13.2.1.e and 13.2.2, the party liable for termination shall pay the other party a penalty equal to twelve (12) times the total average monthly bill for the last twelve (12) months, or the actual period is less than twelve (12) months.

 

13.3     Unilateral Termination of Contract Without Cause

 

13.3.1         Either of the parties may terminate the contract without cause by notification to the other party via notary at least ninety (90) calendar days prior to the anticipated effective date of termination. Unilateral termination shall result in the breaching party being required to pay the other party a penalty equal to twelve (12) times the total average monthly bill for the last twelve (12) months, or twelve (12) times the total average monthly bill for the months billed, if the actual period is less than twelve (12) months.

 

13.3.2         The penalty shall be paid within thirty (30) calendar days as from the date of termination of the Contract.

 

13.3.3         The parties expressly declare that the agreed upon penalty restricts the right to compensation in compliance with said provision, by which the creditor of this penalty shall have no right to request a larger payment for compensation or further damage.

 

13.4     Standard Provision

 

Except where specifically provided for in this Contract, the failure of either party to demand the opposing party’s strict adherence to any provision of this Contract or exercise any right thereunder, shall not be construed as a waiver or abandonment of the right of said party to appeal the respective contractual provision or to exercise its rights, unless there is an express written waiver. No waiver executed by either party concerning any provision hereof or the exercise of any right in the case of any breach hereunder shall be considered to be an applicable precedent in the future for other situations or clauses, rights or violations.

 

ARTICLE FOURTEEN: LIABILITY OF THE PARTIES

 

14.1      THE POWER SUPPLIER is hereby obliged to provide compensation to THE CUSTOMER for breaches in the quality standards established in the NTCSE for the amounts determined in accordance with said Standard, except in cases of force majeure or acts of God, as specified in Article 11. THE POWER SUPPLIER shall make payments for said compensations to THE CUSTOMER according to the provisions established in the NTCSE.

 

14.2      THE CUSTOMER shall prevent voltage fluctuations, imbalances and harmonic fluctuations, as well as any other disturbances produced by the

 

 

SEIN as a result of the operation of the facilities of THE CUSTOMER, from exceeding the limits established by the NTCSE. In any case, THE CUSTOMER is obliged to pay THE POWER SUPPLIER compensation for any disturbance above the limits established by the NTCSE caused to the SEIN by THE CUSTOMER. Pursuant to the chain of payment established in this Standard, THE CUSTOMER shall pay THE POWER SUPPLIER for the amount THE POWER SUPPLIER must pay to the other companies comprising the SEIN.

 

14.3      In cases where the law or contract provides for the payment of penalties, those penalties shall constitute the only obligations of the parties concerning the payment of damages and, in the case of the payment of penalties agreed upon, no proof of damage shall be necessary.

 

14.4      In cases where the law or contract provides for the payment of compensation between the parties, said compensation shall be limited to payment for direct damages and, in no case, shall guarantee the payment of compensation for loss of profits, which the parties both waive.

 

14.5      THE POWER SUPPLIER agrees to send THE CUSTOMER copies of the reports released by COES concerning events occurring in the operation of the SEIN that have affected the power supply to THE CUSTOMER.

 

14.6      THE CUSTOMER and THE POWER SUPPLIER, in their capacity as Members of the SEIN, are obliged to comply with the provisions established in the Technical Regulation for Coordinating Operation in Real Time for Interconnected Systems, approved by Resolution of the Director’s Office 014-2005-EM/DGE, as amended.

 

ARTICLE FIFTEEN: GUARANTEE

 

15.1      Either of the Parties, when there is duly confirmed evidence of breach by the other party of any of its material obligations established in this Contract, may require the breaching party — as a performance bond — to present a bank letter of guarantee, issued by a first-class Peruvian bank which, at the time of issuing said letter of guarantee, has been classified as a Category I institution by the Investment Classification Commission (CCI), published by the Superintendency of Banking, Insurance, and Private Pension Fund Management Companies for short-term instruments.

 

The letter of guarantee shall be joint and several, unconditional, irrevocable and of automatic execution at the sole request of the receiving party by means of a notarized letter without the need for a coercive demand for its payment or execution. In any case, the wording of the letter of guarantee shall be previously approved by the receiving party.

 

15.2      The letter of guarantee indicated in Sub-clause 15.1 shall be for an amount equivalent to the financial value of the breach up to a maximum of US$

 

 

2,500,000 (Two Million Five Hundred Thousand U.S. Dollars) and shall be delivered to the party receiving the letter of guarantee within fifteen (15) business days as from the date the letter was requested by the other party. It shall also be valid for a period of six (6) months renewable, during which the party which delivered the letter of guarantee shall remain obliged to submit an updated letter a minimum of five (5) business days prior to the expiration of the letter of guarantee, so as to always maintain the validity established in this sub-clause. In the event that the party that had delivered the letter of guarantee demonstrates that the ground giving rise to its delivery is no longer valid prior to the expiration of the letter of guarantee, said party shall be relieved of any obligation to supply a new letter.

 

15.3      If, during the term of the Contract, the letter of guarantee is executed, the party which letter of guarantee was executed shall deliver to the requesting party — within five (5) business days as from its execution — a new letter of guarantee for the amount requested, so as always to maintain the amount agreed upon in Sub-clause 15.2.

 

If the execution of the letter of guarantee should correspond to a financial claim for an amount less than that established by the letter of guarantee, the requesting party shall deliver, upon receiving the new letter of guarantee, a cashier’s check for the excess balance to the party which letter of guarantee was executed.

 

ARTICLE SIXTEEN: DOMICILE

 

For the purposes of this Contract, the parties hereto indicate their domiciles to be the following:

 

	
THE POWER SUPPLIER
    	
:
    	
Av. Pedro Miotta 421, San Juan de Miraflores,   Lima.
    
	
 
    	
 
    	
 
    
	
THE CUSTOMER
    	
:
    	
Calle La Colonia 150, Urbanización El Vivero,   Santiago de Surco, Lima.
    

 

Any party changing its address shall notify the other party at least seven (7) days in advance. Otherwise, the addresses indicated in this clause shall be valid and fully effective for communications and notices.

 

ARTICLE SEVENTEEN: EXHIBITS

 

Duly signed by the Parties, the following exhibits form an integral part of the Contract:

 

Exhibit 1             :        Definitions

Exhibit 2             :        Electricity Supply Tariff

Exhibit 3             :        Single-line Diagram ndicating the points of measurement associated with the Point of Delivery

 

 

ARTICLE EIGHTEEN: MISCELLANEOUS PROVISIONS

 

18.1      Amendment of the Contract

 

In order to be applicable, any amendments to the Contract agreed upon during the Contract term must be signed by the authorized representatives of the Parties.

 

18.2      Applicable Law

 

The laws of the Republic of Peru effective at the date of execution of the Contract shall apply in all matters not covered herein.

 

18.3      Captions

 

The captions appearing next to each clause of this Contract are intended solely as a reference and are not to be used to interpret this Contract.

 

18.4      Partial Invalidity

 

In the event one or more clauses or sub-clauses of the Contract are rendered null and void, said nullity shall not affect the remaining provisions hereof.

 

18.5      Assurances and Guarantees of the Parties

 

Each party hereby declares and guarantees to the other party that, at the date of execution of this Contract, (i) it is a corporation duly organized and existing pursuant to the applicable laws, (ii) it is duly authorized to enter into this Contract and assume the responsibilities established hereof pursuant to its bylaws and applicable laws, (iii) the execution and performance of this Contract does not constitute a violation of any term or provision, or default of (a) any contract or agreement of which said party or any of its affiliates or related parties is part, or by which its assets are liable, (b) its articles of incorporation, or (c) any laws applicable to said party which breach or violation could have a significant adverse effect on its ability to meet its obligations under this Contract, and (iv) it is not an entity entitled to sovereign immunity or other similar right, except as stipulated in the applicable laws in force.

 

18.6      Assignment

 

Any of the parties may assign the Contract to a third party with prior express written consent of the party, provided the third party assignee expressly agrees to assume the entire contract of the assignor party.

 

IN WITNESS WHEREOF and in agreement and approval of each and every provision of this Contract, the representatives of the parties hereunto set their

 

 

hands in two (2) counterparts of the same tenor in the city of Lima, this 3rd day of June, 2010.

 

	
by THE   CUSTOMER
    	
by THE POWER   SUPPLIER
    
	
 
    	
 
    
	
 
    	
 
    
	
Lino Abram Caballerino        Humberto Nadal Del Carpio
    	
César Raúl Tengan Matsutahara
    

 

 

EXHIBIT 1

 

OPEN PRICE POWER SUPPLY CONTRACT ENTERED INTO BY AND BETWEEN ELECTROPERÚ S.A. AND CEMENTOS PACASMAYO S.A.A.

 

DEFINITIONS

 

1.                           “COES” means Committee for the Economic Operation of the National Interconnected Electrical System, with the scope referred to in Article 39 and thereafter of the Law and its Regulations.

 

2.                           “Contract” means this Power Supply Contract, including the exhibits hereof, which, duly signed by the parties, form an integral part of this Contract, in addition to any future amendments agreed upon by the parties in writing in accordance with Sub-clause 18.1.

 

3.                           “Cost of Uninstalling Active Energy” is the sum of: i) the valuation of the corresponding active energy calculated by employing the marginal costs of SEIN used by COES in valuating active energy transfers between power suppliers, duly reflected at the Point of Delivery; and ii) the valuation of the proportion of said energy for all other charges associated with uninstalling active energy from THE POWER SUPPLIER assigned by COES to THE POWER SUPPLIER for the corresponding month.

 

4.                           “Monthly Maximum Demand” means the highest value of power consumption recorded by THE CUSTOMER in any 15-minute interval during the corresponding month.

 

5.                           “Monthly Maximum Demand During Peak Hours” means the highest value of power consumption recorded by THE CUSTOMER at the Point of Delivery during any 15-minute interval of a peak hour in the corresponding month.

 

6.                           “Monthly Maximum Demand During Off-Peak Hours” means the highest value of power consumption recorded by THE CUSTOMER at the Point of Delivery during any 15-minute interval of an off-peak hour in the corresponding month.

 

7.                           “Monthly Coincident Demand” means the monthly demand of THE CUSTOMER, registered at the Point of Delivery, coinciding with the monthly maximum demand of SEIN, registered by COES.

 

8.                           “Day” means calendar day and is a period of twenty-four (24) hours beginning at 12 am and ending at 12 pm.

 

9.                           “Business Day” means each day, Monday to Friday, except non-working days or those declared to be non-working days in Peru by the competent authority.

 

10.                     “THE CUSTOMER” means CEMENTOS PACASMAYO S.A.A.

 

11.                     “Maximum Energy” means the sum of the Maximum Energy during Peak Hours and Off-Peak Hours.

 

12.                     “Maximum Energy During Peak Hours” is the amount of energy expressed

 

 

in kWh, calculated by adding the products obtained by multiplying: (i) the ratio of the sum of the Maximum Power and the power consumption tolerance established in 3.1 when applicable (expressed in kW) during peak hours, and the Monthly Maximum Demand During Peak Hours; (ii) by each of the active energy values corresponding to the successive 15-minute intervals during peak hours in the supply month, recorded at the Point of Delivery.

 

13.                     “Maximum Energy During Off-Peak Hours” is the amount of energy expressed in kWh, calculated by adding the products obtained by multiplying: (i) the ratio of the sum of the Maximum Power and the power consumption tolerance established in 3.1 when applicable (expressed in kW) during off-peak hours, and the Monthly Maximum Demand During Off-Peak Hours; (ii) by each of the active energy values corresponding to the successive 15-minute intervals during off-peak hours in the supply month, recorded at the Point of Delivery.

 

14.                     “Start Date” is January 1, 2011.

 

15.                     “Hertz” or “Hz” means unit of electric frequency, one cycle per second.

 

16.                     “Kilowatt” or “kW” means the power required to perform work at a rate of one kilojoule per second.

 

17.                     “Kilovolt” or “kV” means the potential difference between two points on a conductor carrying a current of one ampere when the power dissipated between the two points is one kilovolt-ampere.

 

18.                     “kWh” means the unit of electric energy in kilowatt hours.

 

19.                     “THE POWER SUPPLIER” means ELECTROPERÚ S.A.

 

20.                     “Law” means the Electrical Concessions Law, approved by Executive Order (Decreto Ley) 25844 and Law 28832.

 

21.                     “Megawatt” or “MW” means one thousand kilowatts (1,000 kW).

 

22.                     “Month” means the period of time starting from any date of one calendar month to the date before in the following calendar month or, if no such date exists, the last day of said month.

 

23.                     “Party” means ELECTROPERU S.A. or CEMENTOS PACASMAYO S.A.A., as appropriate.

 

24.                     “Parties” means ELECTROPERU S.A. and CEMENTOS PACASMAYO S.A.A.

 

25.                     “Maximum Power” is the maximum power THE POWER SUPPLIER agrees to provide THE CUSTOMER, as provided in Sub-clause 3.1.

 

26.                     “Minimum Power” is the minimum power THE CUSTOMER agrees to purchase from THE POWER SUPPLIER, as provided in Sub-clause 3.1.

 

27.                     “Point of Delivery” is the rod in the substation mentioned in Article 7.

 

28.                     “National Interconnected Electrical System (SEIN)” means the Interconnected System established by the Peruvian Ministry of Energy and Mines, as provided in Section 58 of the Law.

 

 

EXHIBIT 2

 

OPEN PRICE POWER SUPPLY CONTRACT ENTERED INTO BY AND BETWEEN ELECTROPERÚ S.A. AND CEMENTOS PACASMAYO S.A.A.

 

ELECTRICITY SUPPLY TARIFF

 

1.                          INITIAL UNIT PRICES AT THE POINT OF DELIVERY

 

Contract Period: January 1, 2011 to December 31, 2020.

 

Point of Delivery Associated with the 60kV Reference Rod at the Guadalupe Substation.

 

	
 
    	
 
    	
Active Energy
    US$/MWh
    	
 
    	
Power
    US$/kW-month
    	
 
    
	
Item
    	
 
    	
Peak Hours
    	
 
    	
Off-Peak Hours
    	
 
    	
Peak Hours
    	
 
    
	
Generation Prices
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generation Prices at the Reference Rod: 60 kV Rod at the Guadalupe Substation
    	
 
    	
40.74
    	
 
    	
37.42
    	
 
    	
5.96
    	
 
    
	
Generation Prices at the Point of Delivery:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
60 kV Rod at the Guadalupe   Substation 
    	
 
    	
40.74
    	
 
    	
37.42
    	
 
    	
5.96
    	
 
    

 

2.                           TRANSMISSION PRICES

 

The transmission prices to be added to the generation prices offered shall be fixed and regulated by OSINERGMIN and later adjusted for use according to their corresponding updating formulas.

 

Currently, the transmission prices to add are the following:

 

·                  Toll Charge for Connection to the Main System of Transmission (PCSPT) — includes the charge for security of supply, transport of natural gas for electrical power supply and the unit charge for additional power supply —, expressed in Nuevos Soles/kW-month, effective in the corresponding month. As reference, as at the date of the Offer, the PCSPT charge is equal to 17.01 Nuevos Soles/kW-month, effective as from February 4, 2010, as established by OSINERGMIN for large open users.

 

·                  The Toll for Secondary Transmission and Complementary Transmission Systems assigned to: i) Demand Area 3 which, at the date of the Offer, is equal to 0.5691 ctm Nuevos Soles/kWh (Accumulated in AT); and ii) Demand Area 15 which is equal to 0.0579 ctm Nuevos Soles/kWh

 

 

(Accumulated in AT); both effective as from February 4, 2010, as established in OSINERGMIN Resolution 184-2009-OS/CD, amended by Resolution 279-2009-OS/CD.

 

3.                          GENERATION PRICE ADJUSTMENT FORMULAS

 

The power and active energy generation prices at the Point of Delivery established in Item 1 shall be adjusted on a monthly basis in accordance with the following formulas:

 

For power:

 

P1 = P0 [(PPI1/PPI0)]

 

For active energy:

 

E1 = E0*FA

 

Where

 

FA = [0.50(PPI1/PPI0)+0.37(PNG/PNG0)+0.07(PBC/PBC0)+0.06(PR6/PR60)]

 

Where:

 

	
P1
    	
:
    	
Generation price for power to   be billed.
    
	
 
    	
 
    	
 
    
	
P0
    	
:
    	
Initial generation price for   power at the Point of Delivery indicated in Item 1.
    
	
 
    	
 
    	
 
    
	
PPI1
    	
:
    	
Producer Price Index —   Commodities, not seasonally adjusted — PPI for the corresponding billing   month, published officially online by the U.S. Department of Labor — Bureau   of Labor Statistics at http://data.bls.gov/cgi-bin/srgate, accessible by then   typing the number “wpusop3000” under “Enter series id(s) below” and   selecting “retrieve data”. The most recent PPI value (preliminary or   official) published the day THE POWER SUPPLIER   sends THE CUSTOMER the billing calculation   mentioned in Sub-clause 6.3 of the   Contract shall be used as PPI1.
    
	
 
    	
 
    	
 
    
	
PPI0  :
    	
Initial PPI equal to 177.3,   recorded in February 2010.
    
	
 
    	
 
    	
 
    
	
E1
    	
:
    	
Generation price for active   energy to be billed.
    
	
 
    	
 
    	
 
    
	
E0
    	
:
    	
Initial generation price for   active energy at the Point of Delivery indicated in Item 1.
    
	
 
    	
 
    	
 
    
	
PNG
    	
:
    	
Price of natural gas —   including its related transportation and delivery costs — in the resolutions   by which OSINERGMIN sets the bar tariffs. According to said resolutions, PNG   = Maximum Reference Price for Natural Gas, expressed in Nuevos Soles/MMBTU   using the exchange rate (ER), which shall be established in accordance with   the provisions contained in the
    

 

 

 

	
 
    	
 
    	
“Procedure   for Determining the Price Ceiling for Natural Gas to Calculate Bar Tariffs”.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For   the purpose of determining the PNG for the last day of the supply month, the   indicated price, expressed in Nuevos Soles/MMBTU, shall be converted to   US$/MMBTU using the average weighted exchange rate for selling Nuevos Soles   corresponding to the last business day of the supply month subject matter of   the invoice, published in the El Peruano newspaper by the Superintendency of   Banking and Insurance and Private Pension Fund Management Companies, or the   competent body in its place.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PNG   is the value published by OSINERGMIN at http://www2.osinerg.gob.pe/gart.htm   and can be accessed by selecting “Combustibles-Precios de Referencia de   combustibles”, followed by “Precio de Gas Natural” for the corresponding   supply month.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For   the purpose of the price adjustment formula, the PNG shall be used without   including applicable natural gas taxes.
    
	
 
    	
 
    	
 
    
	
PNG0
    	
:
    	
Initial   price for natural gas equal to 2.2444 US$/MMBTU, effective February 28, 2010.
    
	
 
    	
 
    	
 
    
	
PR6
    	
:
    	
Net   price for No. 6 residual oil used for Electric Generators at the Callao   Plant, published by PETROPERU on its website   (http://www.petroperu.com.pe/portalweb/Main.asp?Seccion=4), expressed in   Nuevos Soles/Gallon, excluding applicable fuel-related taxes and effective   the last day of the supply month. For more information, click on “Lista de   Combustibles”.
    
	
 
    	
 
    	
 
    
	
PR60
    	
:
    	
Initial   net price for No. 6 residual oil, equal to 3.52 Nuevos Soles/Gallon,   effective February 28, 2010.
    
	
 
    	
 
    	
 
    
	
PBC
    	
:
    	
Reference   price for bituminous coal imports, determined and published by OSINERGMIN   under Resolution 062-2005-OS/CD, effective the last day of the supply month   and expressed in US$/ton, excluding applicable coal import and/or sales   taxes. PCB is the price of coal published by OSINERGMIN at   http://www2.osinerg.gob.pe/gart.htm and can be accessed by selecting   “Combustibles-Precios de Referencia de carbón”.
    
	
 
    	
 
    	
 
    
	
PBC0
    	
:
    	
Initial   reference price for bituminous coal imports, equal to 85.99 US$/ton,   effective February 28, 2010.
    

 

4.                          POWER AND ENERGY TARIFF PERIODS

 

i)            Power:

 

	
· Peak Hours
    	
:
    	
6   pm to 9 pm, Monday to Saturday, except national non-working holidays.
    

 

 

	
· Non-Peak Hours
    	
:
    	
12   am to 6 pm and 9 pm to 12 pm, Monday to Saturday, except national non-working   holidays; and 12 am to 12 pm, Sundays and non-working holidays.
    

 

.

 

In the event the Monthly Coincident Demand occurs during Off-Peak Hours, THE POWER SUPPLIER shall issue an invoice and THE CUSTOMER shall pay the corresponding power charges.

 

ii)         Energy:

 

	
· Peak Hours
    	
:
    	
6   pm to 11 pm, Monday to Saturday, except national non-working holidays.
    
	
 
    	
 
    	
 
    
	
· Off-Peak Hours
    	
:
    	
11   pm to 6 pm, Monday to Saturday, except national non-working holidays; and 12   am to 12 pm, Sundays and non-working holidays.
    

 

 

EXHIBIT 3

 

OPEN PRICE POWER SUPPLY CONTRACT ENTERED INTO BY AND BETWEEN ELECTROPERÚ S.A. AND CEMENTOS PACASMAYO S.A.A.

 

SINGLE-LINE DIAGRAM INDICATING THE POINTS OF MEASUREMENT ASSOCIATED WITH THE POINT OF DELIVERY

 

 

GC-KO/Mcp-jcj

332272K11.3

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