Document:

Exhibit 10.61

 

Relmada
Therapeutics, Inc.

 

2021 EQUITY INCENTIVE PLAN

 

As adopted
by the Board of Directors of Relmada Therapeutics, Inc., on March 19, 2021.

 

As approved
by the shareholders of Relmada Therapeutics, Inc., on ________________, 2021.

 

1.
Purpose; Eligibility.

 

1.1
General Purpose. The name of this plan is the Relmada
Therapeutics, Inc. 2021 Equity Incentive Plan (the “Plan”). The purposes of the Plan are to (a) enable Relmada
Therapeutics, Inc., a Nevada corporation (the “Company”), and any Affiliate to attract and retain the types
of Employees, Consultants and Directors who will contribute to the Company’s long range success; (b) provide incentives that
align the interests of Employees, Consultants and Directors with those of the shareholders of the Company; and (c) promote the
success of the Company’s business.

 

1.2
Eligible Award Recipients. The persons eligible to
receive Awards are the Employees, Consultants and Directors of the Company and its Affiliates and such other individuals designated
by the Committee who are reasonably expected to become Employees, Consultants and Directors after the receipt of Awards.

 

1.3
Available Awards. Awards that may be granted under
the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted Awards,
(e) Performance Share Awards, (f) Cash Awards, and (g) Other Equity-Based Awards.

 

2.
Definitions.

 

“Affiliate”
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company.

 

“Applicable
Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate
law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the shares of Common
Stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation
Right, a Restricted Award, a Performance Share Award, a Cash Award, or an Other Equity-Based Award.

 

“Award Agreement”
means a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions of an individual
Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each
Award Agreement shall be subject to the terms and conditions of the Plan.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that
such Person has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable
or is exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

 

     

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

“Board”
means the Board of Directors of the Company, as constituted at any time.

 

“Cash Award”
means an Award denominated in cash that is granted under Section 10 of the Plan.

 

“Cause”
means:

 

With respect to any
Employee or Consultant, unless the applicable Award Agreement states otherwise:

 

(a)
If the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such
agreement provides for a definition of Cause, the definition contained therein; or

 

(b)
If no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no
contest to, a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material
fiduciary breach with respect to the Company or an Affiliate; (ii) conduct that brings or is reasonably likely to bring the Company
or an Affiliate negative publicity or into public disgrace, embarrassment, or disrepute; (iii) gross negligence or willful misconduct
with respect to the Company or an Affiliate; (iv) material violation of state or federal securities laws; or (v) material violation
of the Company’s written policies or codes of conduct, including written policies related to discrimination, harassment,
performance of illegal or unethical activities, and ethical misconduct.

 

With respect to any
Director, unless the applicable Award Agreement states otherwise, a determination by a majority of the disinterested Board members
that the Director has engaged in any of the following:

 

(a)
malfeasance in office;

 

(b)
gross misconduct or neglect;

 

(c)
false or fraudulent misrepresentation inducing the director’s appointment;

 

(d)
willful conversion of corporate funds; or

 

(e)
repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings
in advance.

 

The Committee, in its
absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged
for Cause.

 

    2

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

“Change in
Control” means:

 

(a)
if the Award is not subject to Section 409A of the Code:

 

(i)
 The direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries,
taken as a whole, to any Person that is not a subsidiary of the Company;

 

(ii)
The Incumbent Directors cease for any reason to constitute at least a majority of the Board;

 

(iii)
The date which is 10 business days prior to the consummation of a complete liquidation or dissolution of the Company;

 

(iv)
The acquisition by any Person of Beneficial Ownership of more than 50% (on a fully diluted basis) of either (i) the then
outstanding shares of Common Stock of the Company, taking into account as outstanding for this purpose such Common Stock issuable
upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to
acquire such Common Stock (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this Plan, the following acquisitions shall
not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit
plan sponsored or maintained by the Company or any subsidiary, (C) any acquisition which complies with clauses, (i), (ii) and (iii)
of subsection (e) of this definition or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant
or any group of persons including the Participant (or any entity controlled by the Participant or any group of persons including
the Participant); or

 

(v)
The consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
involving the Company that requires the approval of the Company’s shareholders, whether for such transaction or the issuance
of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination:
(i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the “Surviving
Company”), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient
voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the
Surviving Company (the “Parent Company”), is represented by the Outstanding Company Voting Securities that were
outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding
Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof
is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof
immediately prior to the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by
the Surviving Company or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the
total voting power of the outstanding voting securities eligible to elect members of the board of directors of the Parent Company
(or the analogous governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of
the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company,
the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board’s
approval of the execution of the initial agreement providing for such Business Combination; or

 

    3

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

 (b) if the Award is subject to Section 409A of the Code:

 

(i)
One Person (or more than one Person acting as a group) acquires ownership of stock of the Company that, together with the
stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock
of the Company; provided, that, a Change in Control shall not occur if any Person (or more than one Person acting as a group)
owns more than 50% of the total fair market value or total voting power of the Company’s stock and acquires additional stock;

 

(ii)
One person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on
the date of the most recent acquisition) ownership of the Company’s stock possessing 30% or more of the total voting power
of the stock of such corporation;

 

(iii)
A majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election
is not endorsed by a majority of the Board before the date of appointment or election; or

 

(iv)
One person (or more than one person acting as a group), acquires (or has acquired during the twelve-month period ending
on the date of the most recent acquisition) assets from the Company that have a total gross fair market value equal to or more
than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition(s).

 

“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be
deemed to include a reference to any regulations promulgated thereunder.

 

“Committee”
means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section
3.3 and Section 3.4.

 

“Common Stock”
means the common stock, $0.001 par value per share, of the Company, or such other securities of the Company as may be designated
by the Committee from time to time in substitution thereof.

 

“Consultant”
means any individual or entity which performs bona fide services to the Company or an Affiliate, other than as an Employee or Director,
and who may be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities Act.

 

    4

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is
no interruption or termination of the Participant’s Continuous Service; provided further that if any Award is subject
to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For
example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of
Continuous Service. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered
interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal
or family leave of absence. The Committee or its delegate, in its sole discretion, may determine whether a Company transaction,
such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in a termination of
Continuous Service for purposes of affected Awards, and such decision shall be final, conclusive and binding.

 

“Deferred
Stock Units (DSUs)” has the meaning set forth in Section 8.1(b) hereof.

 

“Director”
means a member of the Board.

 

“Disability”
means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining
the term of an Incentive Stock Option pursuant to Section 6.10 hereof, the term Disability shall have the meaning ascribed to it
under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures
established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an
Incentive Stock Option pursuant to Section 6.10 hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely
on any determination that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by
the Company or any Affiliate in which a Participant participates.

 

“Disqualifying
Disposition” has the meaning set forth in Section 17.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes
of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or
subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s
fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed on any
established stock exchange or a national market system, including without limitation, the New York Stock Exchange or the Nasdaq
Stock Market, the Fair Market Value shall be the closing price of a share of Common Stock (or if no sales were reported the closing
price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination, as reported
in the Wall Street Journal. In the absence of an established market for the Common Stock, the Fair Market Value shall be
determined in good faith by the Committee and such determination shall be conclusive and binding on all persons.

 

    5

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

“Fiscal Year”
means the Company’s fiscal year.

 

“Free Standing
Rights” has the meaning set forth in Section 7.

 

“Good Reason”
means, unless the applicable Award Agreement states otherwise:

 

(a)
If an Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such
agreement provides for a definition of Good Reason, the definition contained therein; or

 

(b)
If no such agreement exists or if such agreement does not define Good Reason, the occurrence of one or more of the following
without the Participant’s express written consent, which circumstances are not remedied by the Company within thirty (30)
days of its receipt of a written notice from the Participant describing the applicable circumstances (which notice must be provided
by the Participant within ninety (90) days of the Participant’s knowledge of the applicable circumstances):

 

(i)
any material, adverse change in the Participant’s duties, responsibilities, authority, title, status or reporting
structure;

 

(ii)
a material reduction in the Participant’s base salary or bonus opportunity; or

 

(iii)
a geographical relocation of the Participant’s principal office location by more than fifty (50) miles.

 

“Grant Date”
means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award to a
Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then
such date as is set forth in such resolution.

 

“Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option within the meaning of
Section 422 of the Code and that meets the requirements set out in the Plan.

 

“Incumbent
Directors” means individuals who, on the Effective Date, constitute the Board, provided that any individual becoming
a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement
of the Company in which such person is named as a nominee for Director without objection to such nomination) shall be an Incumbent
Director. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any
person other than the Board shall be an Incumbent Director.

 

    6

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

“Non-Employee
Director” means a Director who is a “non-employee director” within the meaning of Rule 16b-3.

 

“Non-qualified
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock
Option.

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

“Option”
means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.

 

“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

“Option Exercise
Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

 

“Other Equity-Based
Award” means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, or Performance
Share Award that is granted under Section 10 and is payable by delivery of Common Stock and/or which is measured by reference to
the value of Common Stock.

 

“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

“Performance
Goals” means, for a Performance Period, the one or more goals established by the Committee for the Performance Period
based upon business criteria or other performance measures determined by the Committee in its discretion.

 

“Performance
Period” means the one or more periods of time, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance
Share Award or a Cash Award.

 

“Performance
Share Award” means any Award granted pursuant to Section 9 hereof.

 

“Performance
Share” means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the
performance of the Company during a Performance Period, as determined by the Committee.

 

“Permitted
Transferee” means:

 

(a)
a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships), any person sharing the Optionholder’s household (other than a tenant or employee), a trust
in which these persons have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder)
control the management of assets, and any other entity in which these persons (or the Optionholder) own more than 50% of the voting
interests; and

 

    7

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

(b)
such other transferees as may be permitted by the Committee in its sole discretion.

 

“Person”
means a person as defined in Section 13(d)(3) of the Exchange Act.

 

“Plan”
means this Relmada Therapeutics, Inc. 2021 Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

“Related Rights”
has the meaning set forth in Section 7.

 

“Restricted
Award” means any Award granted pursuant to Section 8.

 

“Restricted
Period” has the meaning set forth in Section 8.

 

“Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Stock Appreciation
Right” means the right pursuant to an Award granted under Section 7 to receive, upon exercise, an amount payable in cash
or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess
of (a) the Fair Market Value of a share of Common Stock on the date the Award is exercised, over (b) the exercise price specified
in the Stock Appreciation Right Award Agreement.

 

“Substitute
Award” has the meaning set forth in Section 4.5.

 

“Ten Percent
Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more
than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

 

“Total Share
Reserve” has the meaning set forth in Section 4.1.

 

    8

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

3.
Administration.

 

3.1
Authority of Committee. The Plan shall be administered
by the Committee or, in the Board’s sole discretion, by the Board. Subject to the terms of the Plan, the Committee’s
charter and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Committee shall
have the authority:

 

(a)
to construe and interpret the Plan and apply its provisions;

 

(b)
to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)
to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve “insiders”
within the meaning of Section 16 of the Exchange Act;

 

(e)
to determine when Awards are to be granted under the Plan and the applicable Grant Date;

 

(f)
from time to time to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom
Awards shall be granted;

 

(g)
to determine the number of shares of Common Stock to be made subject to each Award;

 

(h)
to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

 

(i)
to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment
and vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

 

(j)
to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance
measures that will be used to establish the Performance Goals, the Performance Period(s) and the number of Performance Shares earned
by a Participant;

 

(k)
to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any
outstanding Award; provided, however, that if any such amendment impairs a Participant’s rights or increases a Participant’s
obligations under his or her Award or creates or increases a Participant’s federal income tax liability with respect to an
Award, such amendment shall also be subject to the Participant’s consent;

 

(l)
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees
under the Company’s employment policies;

 

(m) 
to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an
event that triggers anti-dilution adjustments;

 

(n)
to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and
any instrument or agreement relating to, or Award granted under, the Plan; and

 

    9

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

(o)
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the
administration of the Plan.

 

Except in
connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange
of shares), the terms of outstanding Awards may not be amended to reduce the exercise price of outstanding Options or Stock Appreciation
Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation
Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights without
stockholder approval.

 

3.2
Committee Decisions Final. All decisions made by
the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless such
decisions are determined by a court having jurisdiction to be arbitrary and capricious.

 

3.3
Delegation. The Committee or, if no Committee has
been appointed, the Board may delegate administration of the Plan to a committee or committees of one or more members of the Board,
and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. The
Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise
(and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board
may abolish the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall
be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee,
add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill
vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the
case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written
consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to
the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and
regulations for the conduct of its business as it may determine to be advisable.

 

3.4
Committee Composition. Except as otherwise determined
by the Board, the Committee shall consist solely of two or more Non-Employee Directors. The Board shall have discretion to determine
whether or not it intends to comply with the exemption requirements of Rule 16b-3. However, if the Board intends to satisfy such
exemption requirements, with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation
committee of the Board that at all times consists solely of two or more Non-Employee Directors. Within the scope of such authority,
the Board or the Committee may delegate to a committee of one or more members of the Board who are not Non-Employee Directors the
authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. Nothing herein shall
create an inference that an Award is not validly granted under the Plan in the event Awards are granted under the Plan by a compensation
committee of the Board that does not at all times consist solely of two or more Non-Employee Directors.

 

    10

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

3.5
Indemnification. In addition to such other rights
of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws, the
Committee shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred
in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party
by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against
all amounts paid by the Committee in settlement thereof (provided, however, that the settlement has been approved by the
Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such
action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that
such Committee did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the
Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided,
however, that within 60 days after the institution of any such action, suit or proceeding, such Committee shall, in writing,
offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

 

4.
Shares Subject to the Plan.

 

4.1
Subject to adjustment in accordance with Section 14, no more than 1,500,000 shares of Common Stock shall be available for
the grant of Awards under the Plan  (the “Total Share Reserve”).
During the terms of the Awards, the Company shall keep available at all times the number of shares of Common Stock required to
satisfy such Awards.

 

4.2
Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued
shares, treasury shares or shares reacquired by the Company in any manner.

 

4.3
Subject to adjustment in accordance with Section 14, no more than 1,500,000 shares of Common Stock may be issued in the
aggregate pursuant to the exercise of Incentive Stock Options (the “ISO Limit”).

 

4.4
Any shares of Common Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of
the full number of shares of Common Stock to which the Award related shall again be available for issuance of Awards or delivery
under the Plan. Any shares of Common Stock subject to an Award under the Plan that are (a) tendered in payment of an Option, (b)
delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) covered by a stock-settled Stock Appreciation
Right or other Awards that were not issued upon the settlement of the Award shall be added back to the shares of Common Stock available
for issuance of Awards or delivery under the Plan and, to the extent permitted under Section 422 of the Code and the regulations
promulgated thereunder, to the shares of Common Stock that may be issued as Incentive Stock Options.

 

4.5
Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for,
outstanding awards previously granted by an entity acquired by the Company or with which the Company combines (“Substitute
Awards”). Substitute Awards shall not be counted against the Total Share Reserve; provided, that, Substitute
Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as Incentive
Stock Options shall be counted against the ISO limit. Subject to applicable stock exchange requirements, available shares under
a shareholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as
appropriately adjusted to reflect such acquisition or transaction) may be used for Awards under the Plan and shall not count toward
the Total Share Limit.

 

    11

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

5.
Eligibility.

 

5.1
Eligibility for Specific Awards. Incentive Stock
Options may be granted only to Employees. Awards other than Incentive Stock Options may be granted to Employees, Consultants and
Directors and those individuals whom the Committee determines are reasonably expected to become Employees, Consultants and Directors
following the Grant Date.

 

5.2
Ten Percent Shareholders. A Ten Percent Shareholder
shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market Value of the
Common Stock on the Grant Date and the Option is not exercisable after the expiration of five years from the Grant Date.

 

6.
Options. Each Option granted
under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in
this Section 6, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.
All Options shall be separately designated Incentive Stock Options or Non-qualified Stock Options at the time of grant, and, if
certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise
of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other person
if an Option designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A of the Code and the terms of such Option do
not satisfy the requirements of Section 409A of the Code. The provisions of separate Options need not be identical, but each Option
shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the
following provisions:

 

6.1
Term. Subject to the provisions of Section 5.2 regarding
Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.
The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Committee; provided, however,
no Non-qualified Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.

 

6.2
Exercise Price of an Incentive Stock Option. Subject
to the provisions of Section 5.2 regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Stock Option shall
be not less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the
foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Section 424(a) of the Code.

 

6.3
Exercise Price of a Non-qualified Stock Option. The
Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Stock Option may be granted with an Option
Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 409A of the Code.

 

    12

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

6.4
Consideration. The Option Exercise Price of Common
Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (a)
in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion of the Committee, upon such
terms as the Committee shall approve, the Option Exercise Price may be paid: (i) by delivery to the Company of other Common Stock,
duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option Exercise Price
(or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the Participant identifies
for delivery specific shares of Common Stock that have an aggregate Fair Market Value on the date of attestation equal to the Option
Exercise Price (or portion thereof) and receives a number of shares of Common Stock equal to the difference between the number
of shares thereby purchased and the number of identified attestation shares of Common Stock; (ii) a “cashless” exercise
program established with a broker; (iii) by reduction in the number of shares of Common Stock otherwise deliverable upon exercise
of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise; (iv) by any combination
of the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to the Committee. Unless otherwise
specifically provided in the Option, the exercise price of Common Stock acquired pursuant to an Option that is paid by delivery
(or attestation) to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by
shares of the Common Stock of the Company that have been held for more than six months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period for
which the Common Stock is publicly traded (i.e., the Common Stock is listed on any established stock exchange or a national market
system) an exercise by a Director or Officer that involves or may involve a direct or indirect extension of credit or arrangement
of an extension of credit by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002
shall be prohibited with respect to any Award under this Plan.

 

6.5
Transferability of an Incentive Stock Option.
An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of
the Optionholder, shall thereafter be entitled to exercise the Option.

 

6.6
Transferability of a Non-qualified Stock Option.
A Non-qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written
approval by the Committee to the extent provided in the Award Agreement. If the Non-qualified Stock Option does not provide for
transferability, then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder
may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event
of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

 

    13

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

6.7
Vesting of Options. Each Option may, but need not,
vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such
other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria)
as the Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a
fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting and
exercisability in the terms of any Award Agreement upon the occurrence of a specified event.

 

6.8
Termination of Continuous Service. Unless otherwise
provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee, in the event
an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder
may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination)
but only within such period of time ending on the earlier of (a) the date three months following the termination of the Optionholder’s
Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement; provided that, if
the termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) shall immediately
terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within the time
specified in the Award Agreement, the Option shall terminate.

 

6.9
Extension of Termination Date. An Optionholder’s
Award Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous
Service for any reason would be prohibited at any time because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act or any other state or federal securities law or the rules of any securities exchange or interdealer
quotation system, then the Option shall terminate on the earlier of (a) the expiration of the term of the Option in accordance
with Section 6.1 or (b) the expiration of a period after termination of the Participant’s Continuous Service that is three
months after the end of the period during which the exercise of the Option would be in violation of such registration or other
securities law requirements.

 

6.10
Disability of Optionholder. Unless otherwise provided
in an Award Agreement, in the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such
Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following
such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, the
Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.11
Death of Optionholder. Unless otherwise provided
in an Award Agreement, in the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of
death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance
or by a person designated to exercise the Option upon the Optionholder’s death, but only within the period ending on the
earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in
the Award Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein or
in the Award Agreement, the Option shall terminate.

 

    14

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

6.12
Incentive Stock Option $100,000 Limitation. To the
extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its
Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which they were
granted) shall be treated as Non-qualified Stock Options.

 

7.
Stock Appreciation Rights. Each Stock Appreciation Right granted under
the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation Right so granted shall be subject to the conditions
set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable
Award Agreement. Stock Appreciation Rights may be granted alone (“Free Standing Rights”) or in tandem with an
Option granted under the Plan (“Related Rights”).

 

7.1
Grant Requirements for Related Rights. Any
Related Right that relates to a Non-qualified Stock Option may be granted at the same time the Option is granted or at any time
thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Stock Option must
be granted at the same time the Incentive Stock Option is granted.

 

7.2
Term. The term of a Stock Appreciation Right granted
under the Plan shall be determined by the Committee; provided, however, no Stock Appreciation Right shall be exercisable
later than the tenth (10th) anniversary of the Grant Date.

 

7.3
Vesting of SARs.  Each Stock Appreciation Right
may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Stock Appreciation
Right may be subject to such other terms and conditions on the time or times when it may be exercised as the Committee may deem
appropriate. The vesting provisions of individual Stock Appreciation Rights may vary. No Stock Appreciation Right may be exercised
for a fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting
and exercisability in the terms of any Stock Appreciation Right upon the occurrence of a specified event.

 

7.4
Exercise and Payment. Upon exercise of a Stock
Appreciation Right, the holder shall be entitled to receive from the Company an amount equal to the number of shares of Common
Stock subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (i) the Fair Market Value of
a share of Common Stock on the date the Award is exercised, over (ii) the exercise price specified in the Stock Appreciation Right
or related Option. Payment with respect to the exercise of a Stock Appreciation Right shall be made on the date of exercise. Payment
shall be made in the form of shares of Common Stock (with or without restrictions as to substantial risk of forfeiture and transferability,
as determined by the Committee in its sole discretion), cash or a combination thereof, as determined by the Committee.

 

7.5
Exercise Price. The exercise price of a Free Standing
Right shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value of one share of Common Stock
on the Grant Date of such Stock Appreciation Right. A Related Right granted simultaneously with or subsequent to the grant of an
Option and in conjunction therewith or in the alternative thereto shall have the same exercise price as the related Option, shall
be transferable only upon the same terms and conditions as the related Option, and shall be exercisable only to the same extent
as the related Option; provided, however, that a Stock Appreciation Right, by its terms, shall be exercisable only when
the Fair Market Value per share of Common Stock subject to the Stock Appreciation Right and related Option exceeds the exercise
price per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless the Committee determines
that the requirements of Section 7.1 are satisfied.

 

    15

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

7.6
Reduction in the Underlying Option Shares. Upon
any exercise of a Related Right, the number of shares of Common Stock for which any related Option shall be exercisable shall be
reduced by the number of shares for which the Stock Appreciation Right has been exercised. The number of shares of Common Stock
for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the number of shares
of Common Stock for which such Option has been exercised.

 

8.
Restricted Awards.
A Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical Common
Stock units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number
of shares of Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or
otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or
for any other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted
Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the
conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the
applicable Award Agreement.

 

8.1
Restricted Stock and Restricted Stock Units.

 

(a)
Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the
Restricted Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee
determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending
the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the
Company (A) an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect
to the Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted
Stock and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set
forth in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock,
including the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends
and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account,
and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by
the Committee. The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted
Stock (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of
restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

 

    16

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

(b)
The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common
Stock shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for
the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting
date until the occurrence of a future payment date or event set forth in an Award Agreement (“Deferred Stock Units”).
At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one share of Common Stock)
may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one share of Common Stock
(“Dividend Equivalents”). Dividend Equivalents shall be withheld by the Company and credited to the Participant’s
account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant’s account at
a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant’s account
and attributable to any particular Restricted Stock Unit or Deferred Stock Unit (and earnings thereon, if applicable) shall be
distributed in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount
of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted Stock Unit or Deferred
Stock Unit and, if such Restricted Stock Unit or Deferred Stock Unit is forfeited, the Participant shall have no right to such
Dividend Equivalents. Dividend Equivalents may, if so determined by the Committee, be deemed re-invested in additional Restricted
Stock Units or Deferred Stock Units based on the Fair Market Value of a share of Common Stock on the applicable dividend payment
date and rounded down to the nearest whole share.

 

8.2
Restrictions.

 

(a)
Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement
is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

(b)
Restricted Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the
expiration of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided
in the applicable Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights
of the Participant to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part
of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

 

(c)
The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock
Units and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances
arising after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

 

    17

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

8.3
Restricted Period. With respect to Restricted
Awards, the Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established
by the Committee in the applicable Award Agreement. No Restricted Award may be granted or settled for a fraction of a share of
Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award
Agreement upon the occurrence of a specified event.

 

8.4
Delivery of Restricted Stock and Settlement of Restricted Stock Units.
Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section
8.2 and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth
in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant,
or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which have not then
been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any cash dividends or
stock dividends credited to the Participant’s account with respect to such Restricted Stock and the interest thereon, if
any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, or at the expiration
of the deferral period with respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant, or his
or her beneficiary, without charge, one share of Common Stock for each such outstanding vested Restricted Stock Unit or Deferred
Stock Unit (“Vested Unit”) and cash equal to any Dividend Equivalents credited with respect to each such Vested
Unit in accordance with Section 8.1(b) hereof and the interest thereon or, at the discretion of the Committee, in shares of Common
Stock having a Fair Market Value equal to such Dividend Equivalents and the interest thereon, if any; provided, however,
that, if explicitly provided in the applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or
part cash and part Common Stock in lieu of delivering only shares of Common Stock for Vested Units. If a cash payment is made in
lieu of delivering shares of Common Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock
as of the date on which the Restricted Period lapsed in the case of Restricted Stock Units, or the delivery date in the case of
Deferred Stock Units, with respect to each Vested Unit.

 

8.5
Stock Restrictions. Each certificate representing
Restricted Stock awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

 

9.
Performance Share Awards.
Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each Performance Share Award so granted
shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as
may be reflected in the applicable Award Agreement. The Committee shall have the discretion to determine: (i) the number of shares
of Common Stock or stock-denominated units subject to a Performance Share Award granted to any Participant; (ii) the Performance
Period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other
terms, conditions and restrictions of the Award.

 

    18

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

9.1
Earning Performance Share Awards. The number of
Performance Shares earned by a Participant will depend on the extent to which the performance goals established by the Committee
are attained within the applicable Performance Period, as determined by the Committee.

 

10.
Other Equity-Based Awards and Cash
Awards. The Committee may grant Other Equity-Based
Awards, either alone or in tandem with other Awards, in such amounts and subject to such conditions as the Committee shall determine
in its sole discretion. Each Equity-Based Award shall be evidenced by an Award Agreement and shall be subject to such conditions,
not inconsistent with the Plan, as may be reflected in the applicable Award Agreement. The Committee may grant Cash Awards in such
amounts and subject to such Performance Goals, other vesting conditions, and such other terms as the Committee determines in its
discretion. Cash Awards shall be evidenced in such form as the Committee may determine.

 

11.
Securities Law Compliance. Each Award Agreement shall provide that no
shares of Common Stock shall be purchased or sold thereunder unless and until (a) any then applicable requirements of state or
federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel and (b) if
required to do so by the Company, the Participant has executed and delivered to the Company a letter of investment intent in such
form and containing such provisions as the Committee may require. The Company shall use reasonable efforts to seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Awards and to
issue and sell shares of Common Stock upon exercise of the Awards; provided, however, that this undertaking shall not require
the Company to register under the Securities Act the Plan, any Award or any Common Stock issued or issuable pursuant to any such
Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall
be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Awards unless and until such authority
is obtained.

 

12.
Use of Proceeds from Stock.
Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

 

13.
Miscellaneous.

 

13.1
Acceleration of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an
Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding
the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

 

13.2
Shareholder Rights. Except as provided in the Plan,
no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common
Stock subject to such Award unless and until such Participant has satisfied all requirements for exercise of the Award pursuant
to its terms and no adjustment shall be made for, nor shall any Participant be entitled to receive, any dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior
to the date the certificate representing Common Stock issuable pursuant to an Award is actually issued, except as provided in Section
14 hereof.

 

    19

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

13.3
No Employment or Other Service Rights. Nothing in
the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to
serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the
Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause or (b)
the service of a Director pursuant to the By-laws of the Company or an Affiliate, and any applicable provisions of the corporate
law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 

13.4
Transfer; Approved Leave of Absence. For purposes
of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment to
the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave of
absence for military service or sickness, or for any other purpose approved by the Company, if the Employee’s right to reemployment
is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the
Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if
the applicable Award is subject thereto.

 

13.5
Withholding Obligations. To the extent provided by
the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal, state
or local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the following
means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by
a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common Stock from
the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under
the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the maximum amount of tax
required to be withheld by law (or such lesser amount as may be necessary to avoid classification of the Stock Award as a liability
for financial accounting purposes); or (c) delivering to the Company previously owned and unencumbered shares of Common Stock of
the Company.

 

14.
Adjustments upon Changes in Stock. In the event of changes in the outstanding
Common Stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse
stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination,
exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan
and any Award Agreements, the exercise price of Options and Stock Appreciation Rights, the Performance Goals to which Performance
Share Awards and Cash Awards are subject, the maximum number of shares of Common Stock subject to all Awards stated in Section
4 will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock or other consideration
subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant
to this Section 14, unless the Committee specifically determines that such adjustment is in the best interests of the Company or
its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 14
will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3)
of the Code and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section 14 will not constitute
a modification of such Non-qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this
Section 14 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange
Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive
and binding for all purposes.

 

    20

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

15.
Effect of Change in Control.

 

15.1
Unless otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary:

 

(a)
In the event of a Change in Control, all outstanding Options and Stock Appreciation Rights shall become immediately exercisable
with respect to 100% of the shares subject to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire
immediately with respect to 100% of the outstanding shares of Restricted Stock or Restricted Stock Units.

 

(b)
With respect to Performance Share Awards and Cash Awards, in the event of a Change in Control, all Performance Goals or
other vesting criteria will be deemed achieved at 100% of target levels and all other terms and conditions will be deemed met.

 

15.2
In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days’ advance
notice to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination
thereof, the value of such Awards based upon the price per share of Common Stock received or to be received by other shareholders
of the Company in the event. In the case of any Option or Stock Appreciation Right with an exercise price (or SAR Exercise Price
in the case of a Stock Appreciation Right) that equals or exceeds the price paid for a share of Common Stock in connection with
the Change in Control, the Committee may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

 

15.3
The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting
from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding
to all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

 

16.
Amendment of the Plan and Awards.

 

16.1
Amendment of Plan. The Board at any time, and from
time to time, may amend or terminate the Plan. However, except as provided in Section 14 relating to adjustments upon changes in
Common Stock and Section 16.3, no amendment shall be effective unless approved by the shareholders of the Company to the extent
shareholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine, upon
advice from counsel, whether such amendment will be contingent on shareholder approval.

 

16.2
Shareholder Approval. The Board may, in its sole
discretion, submit any other amendment to the Plan for shareholder approval.

 

    21

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

16.3
Contemplated Amendments. It is expressly contemplated
that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants
and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A of the Code
and/or to bring the Plan and/or Awards granted under it into compliance therewith.

 

16.4
No Impairment of Rights. Rights under any Award granted
before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests the consent of
the Participant and (b) the Participant consents in writing.

 

16.5
Amendment of Awards. The Committee at any time, and
from time to time, may amend the terms of any one or more Awards; provided, however, that the Committee may not affect any
amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company requests the consent
of the Participant and (b) the Participant consents in writing.

 

17.
General Provisions.

 

17.1
Forfeiture Events. The Committee may specify in an
Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to applicable vesting conditions of an
Award. Such events may include, without limitation, breach of non-competition, non-solicitation, confidentiality, or other restrictive
covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the Participant’s
Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business or reputation of the Company
and/or its Affiliates.

 

17.2
Clawback. Notwithstanding any other provisions in
this Plan, the Company may cancel any Award, require reimbursement of any Award by a Participant, and effect any other right of
recoupment of equity or other compensation provided under the Plan in accordance with any Company policies that may be adopted
and/or modified from time to time (“Clawback Policy”). In addition, a Participant may be required to repay to
the Company previously paid compensation, whether provided pursuant to the Plan or an Award Agreement, in accordance with the Clawback
Policy. By accepting an Award, the Participant is agreeing to be bound by the Clawback Policy, as in effect or as may be adopted
and/or modified from time to time by the Company in its discretion (including, without limitation, to comply with applicable law
or stock exchange listing requirements).

 

17.3
Other Compensation Arrangements. Nothing contained
in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval
if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

 

17.4
Sub-Plans. The Committee may from time to time establish
sub-plans under the Plan for purposes of satisfying securities, tax or other laws of various jurisdictions in which the Company
intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines
are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants
in the jurisdiction for which the sub-plan was designed.

 

    22

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

17.5
Deferral of Awards. The Committee may establish one
or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon
exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant
to payment or receipt of shares of Common Stock or other consideration under an Award. The Committee may establish the election
procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on
amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee deems
advisable for the administration of any such deferral program. Any such deferral program must comply with Section 409A.

 

17.6
Unfunded Plan. The Plan shall be unfunded. Neither
the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets
to assure the performance of its obligations under the Plan.

 

17.7
Recapitalizations. Each Award Agreement shall contain
provisions required to reflect the provisions of Section 14.

 

17.8
Delivery. Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts
due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise
have, for purposes of this Plan, 30 days shall be considered a reasonable period of time.

 

17.9
No Fractional Shares. No fractional shares of Common
Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional Awards or other
securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional shares should
be rounded, forfeited or otherwise eliminated.

 

17.10
Other Provisions. The Award Agreements authorized
under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon
the exercise of Awards, as the Committee may deem advisable.

 

17.11
Section 409A. The Plan is intended to comply with
Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted
and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral
period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require
otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties
under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant
to the Plan during the six (6) month period immediately following the Participant’s termination of Continuous Service shall
instead be paid on the first payroll date after the six-month anniversary of the Participant’s separation from service (or
the Participant’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any
obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A
of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.

 

    23

    RELMADA THERAPEUTICS, INC. - 2021 EQUITY INCENTIVE PLAN

    

 

17.12
Disqualifying Dispositions. Any Participant who shall
make a “disposition” (as defined in Section 424 of the Code) of all or any portion of shares of Common Stock acquired
upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within one year
after the issuance of the shares of Common Stock acquired upon exercise of such Incentive Stock Option (a “Disqualifying
Disposition”) shall be required to immediately advise the Company in writing as to the occurrence of the sale and the
price realized upon the sale of such shares of Common Stock.

 

17.13
Section 16. It is the intent of the Company that
the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated under
Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated
under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act. Accordingly,
if the operation of any provision of the Plan would conflict with the intent expressed in this Section 17.13, such provision to
the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

 

17.14
Beneficiary Designation. Each Participant under the
Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of
such Participant’s death. Each designation will revoke all prior designations by the same Participant, shall be in a form
reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during
the Participant’s lifetime.

 

17.15
Expenses. The costs of administering the Plan shall
be paid by the Company.

 

17.16
Severability. If any of the provisions of the Plan
or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed
modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions
shall not be affected thereby.

 

17.17
Headings. The headings in the Plan are for purposes
of convenience only and are not intended to define or limit the construction of the provisions hereof.

 

17.18
Non-Uniform Treatment. The Committee’s determinations
under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive,
Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective determinations,
amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

 

18.
Effective Date of Plan.
The Plan shall become effective as of the Effective Date, but no Award shall be exercised (or, in the case of a stock Award, shall
be granted) unless and until the Plan has been approved by the shareholders of the Company, which approval shall be within twelve
(12) months before or after the date the Plan is adopted by the Board.

 

19.
Termination or Suspension of the Plan.
The Plan shall terminate automatically on the tenth (10th) anniversary of the Effective Date. No Award shall be granted
pursuant to the Plan after such date, but (subject to Sections 5.2, 6.1 and 7.2) Awards theretofore granted may extend beyond that
date. The Board may suspend or terminate the Plan at any earlier date pursuant to Section 16.1 hereof. No Awards may be granted
under the Plan while the Plan is suspended or after it is terminated.

 

20.
Choice of Law. The law of the State of Nevada shall govern all questions
concerning the construction, validity and interpretation of this Plan, without regard to such state’s conflict of law rules.

 

 

24Exhibit 4.2

 

COURT SETTLEMENT

FOR FULL REDRESS REGARDING THE COLLAPSE

OF B-I, B-IV, AND B-IVA DAMS / CÓRREGO DO FEIJÃO

SEI Mediation Process No. 0122201-59.2020.8.13.0000

TJMG/CEJUSC (Court of Appeals of the State of Minas Gerais/Judicial Center for Conflict 
 Resolution) APPELLATE LEVEL

 

TABLE OF CONTENTS

 

RECITALS

 

1) PURPOSE

2) SOCIO-ENVIRONMENTAL REMEDIATION

3) SOCIO-ECONOMIC REDRESS

4) AMOUNTS PROVIDED FOR IN THE SETTLEMENT

5) DETAILING AND MONITORING OF PROGRAMS AND PROJECTS

6) INDEPENDENT AUDITS

7) PENALTIES

8) FINANCIAL GUARANTEES

9) TERM OF EFFECTIVENESS AND DISCHARGE

10) AUTHORIZATIONS AND LICENSING

11) FINAL PROVISIONS

12) JURISDICTION

13) SCHEDULES

Schedule I - Socio-Economic Redress Program

I.1. Demand Projects of the Affected Communities

I.2. Income Transfer Program to the affected population

I.3. Projects for Paraopeba Basin

I.4. Projects for Brumadinho

Schedule II – Socio-Environmental Redress Program

II.1. Socio-Environmental Recovery

II.2. Socio-environmental compensation for already known damage

II.3. Water Security Projects

Schedule III - Mobility Program

Schedule IV - Public Service Strengthening Program

Schedule V - Legal Instruments of Settlements related to the Collapse

Schedule VI - Legal Instruments Re-Ratified, Novated or Dismissed by this Settlement

Schedule VII - Dismissed or Suspended Requests in Public-Interest Civil Actions

Schedule VIII - Amounts indicated by Vale as expenses already incurred to redress the damage

Schedule IX - Reference list of irreparable environmental damage and liabilities

Schedule X - Term of Reference of the Audit service

Schedule XI - Expert Investigation Calls

 

1

 

COVENANTORS: STATE OF MINAS GERAIS, a legal entity governed by public law, herein represented by the Office of General Counsel for the State and through the State Departments for Planning and Management (SEPLAG), for the Environment and Sustainable Development (SEMAD), for Infrastructure and Mobility (SEINFRA), and for Health (SES); PROSECUTION OFFICE OF THE STATE OF MINAS GERAIS (MPMG); PUBLIC DEFENDERS’ OFFICE OF THE STATE OF MINAS GERAIS (DPMG); FEDERAL PROSECUTION OFFICE (MPF).

 

COVENANTEE: VALE S.A. (VALE), a legal entity governed by private law, a publicly-held corporation enrolled with the CNPJ (National Corporate Taxpayers’ Register) under No. 33.592.51/0001-54 with head office at Praia de Botafogo, 186, 9o andar, Torre Oscar Niemeyer, Botafogo, in Rio de Janeiro, State of Rio de Janeiro, CEP (Zip Code) 22350-145.

 

All together referred to simply as parties or, individually, as Party, and

 

WHEREAS

 

I.                              Vale is responsible for the Paraopeba II Mining Complex - Córrego do Feijão Mine, located in the municipality of Brumadinho - Minas Gerais;

 

II.                         the collapse of the B-I, B-IV, and B-IVA Dams, of the Córrego do Feijão Mine, on January 25, 2019, in the Municipality of Brumadinho (“Collapse”), which caused damage to public and private, diffuse, collective, and individual interests;

 

III.                    Vale’s liability for the full remediation of all damage arising from the Collapse, already recognized in a court judgment, handed down on July 9, 2019;

 

IV.                     the Prosecution Office of the State of Minas Gerais and Vale entered into a Commitment Agreement, on February 15, 2019, in the record of Civil Investigation No. MPMG-0090.16.000311-8, for the provision of Environmental Audit services to verify the safety and stability of structures at the Paraopeba II Complex - Córrego do Feijão Mine, in Brumadinho - Minas Gerais, as well as to assess the effectiveness of the measures for tailings containment and socio-environmental recovery of all affected areas, ratified by a court decision of April 4, 2019, in the record;

 

V.                          the Parties are willing to agree upon measures and actions for redress, including by means of settlements, monitoring and/or approval by the public authorities, agencies, and signatory entities, which are entitled to protect rights under their constitutional and nonconstitutional duties;

 

VI.                     Article 225 of the Brazilian Federal Constitution provides that “all individuals are entitled to an environment in ecological balance, a wealth of common use by the people and essential to

 

2

 

a healthy quality of life, imposing on the Government and the collectivity the duty to defend it and preserve it for the present and future generations”;

 

VII.                the National Environmental Policy expressly enshrines the principle of State intervention in the management and protection of environmental quality, namely “in the maintenance of ecological balance, considering the environment as a public asset to be necessarily ensured and protected for collective use” as provided for in Article 2, item I, of Law No. 6.938/1981;

 

VIII.           the Prosecution Office is responsible for defending the legal order, the rights guaranteed in the Federal and State Constitutions, including the duty to defend collective and diffuse assets and interests, for protecting the environment, social interests, and unwaivable individual interests, the national, public, and social property, and the Brazilian cultural heritage;

 

IX.                    the Public Defenders’ Office is a permanent institution, essential to the judicial function of the State, and it is basically responsible, as the expression and instrument of the democratic regime, for providing legal guidance, promoting the human rights and the defense, at all levels, whether in court or out of it, of the individual and collective rights, in a full and free manner to those in need, according to Articles 5, LXXIV, and 134 of the Brazilian Federal Constitution, as well as Article 2 of Complementary Law No. 65/2003;

 

X.                         there are lawsuits filed by the Prosecution Office of the State of Minas Gerais (MPMG), the State of Minas Gerais, and the Public Defenders’ Office of Minas Gerais (DPMG) against Vale, in course before the 2nd State Tax Court of the Judicial District of Belo Horizonte (Public-Interest Civil Action No. 5026408-67.2019.8.13.0024, Public-Interest Civil Action No. 50444954-73.2019.8.13.0024, Public-Interest Civil Action No. 5087481-40.2019.8.13.0024 and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024, together referred to as “Lawsuits”);

 

XI.                    the court decision dated March 31, 2020, authorized the withdrawal of five hundred million reais (BRL 500,000,000.00) by the State of Minas Gerais, as an advance payment of the compensation owed by Vale, in the scope of Public-Interest Civil Actions No. 5026408-67.2019.8.13.0024, No. 50444954-73.2019.8.13.0024, No. 5087481-40.2019.8.13.0024, and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024;

 

XII.               the court decision dated May 19, 2020, authorized the withdrawal of one billion reais (BRL 1,000,000,000.00) by the State of Minas Gerais, as an advance payment of the compensation owed by Vale, in the scope of Public-Interest Civil Actions No. 5026408-67.2019.8.13.0024,

 

3

 

No. 50444954-73.2019.8.13.0024, No. 5087481-40.2019.8.13.0024, and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024;

 

XIII.          the Pro-Brumadinho Steering Committee, created by Decree NE 176/2019, with the purpose of planning, organizing, guiding, coordinating, controlling, and evaluating the actions at the state level due to the Collapse carried out a survey of the impacts on the provision of public services, in order to structure programs and projects aimed at seeking full redress for the damage caused to the Paraopeba river basin;

 

XIV.           the COMMITMENT AGREEMENT, governed pursuant to Article 5, Paragraph 6, of Law No. 7.347, of July 24, 1985, as amended by Federal Law No. 8.078, of September 11, 1990, is a constitutional and legal alternative for the consensual resolution of disputes, allowing the parties to reach by this method, with an essentially resolutive, pragmatic, and effective bias, the defense of the legal interest protected, reducing costs and the response time of the controlling action;

 

XV.                the Brazilian legislation enables and encourages conciliation, the adoption of alternative methods for dispute resolution, and the execution of settlements to settle and resolve disputes and litigations, in a more agile and efficient way;

 

resolve to enter into this COURT SETTLEMENT, hereinafter referred to as “settlement”, “agreement”, or simply “instrument”, in good faith, guided by ethics, transparency, and a spirit of collaboration and cooperation within the scope of its purpose, by committing themselves to endeavor efforts to reach a consensual resolution of any disputes and doubts concerning the performance of this agreement and its schedules.

 

1.              PURPOSE

 

1.1                     The purpose of the settlement is to define Vale’s obligations to do and to pay, aiming at full redress of the damage, negative impacts, and socio-environmental and socio-economic losses caused by the Collapse and the consequences thereof, according to the technical solution and adjustment defined for each situation, as set forth in this instrument and its Schedules.

 

1.2        All the Schedules are integral and inseparable parts of this instrument.

 

4

 

2.              SOCIO-ENVIRONMENTAL REMEDIATION

 

2.1.                           The measures for full social and environmental remediation of the impacts and damage resulting from the Collapse will correspond to actions, projects, and works measurable by means of indicators and will not be subject to monetary limitation, except for the environmental compensation defined in this Settlement. Thus, the amounts spent for full socio-environmental remediation and related projects, with the exception of environmental compensation, defined in this Settlement, will not be taken into account for the purposes of calculating the cap of this Agreement.

 

2.2.                           The parameters used to verify the performance of full social and environmental remediation obligations will be those set forth in Brazilian regulations and indicators defined in the Socio-Environmental Remediation Plan, which is being prepared by a company hired and paid by, and under the responsibility of Vale, in administrative proceedings (Case No. 2090.01.0004333/2020-68), after approvals by the State Environmental System (SISEMA) and validations by the Covenantors, with the support of the Environmental Audit, as detailed in Chapter 5 of this Settlement, in schedules, phases, and stages, when they allow division thereof, defined by SISEMA, ensuring the effectiveness of the technically and environmentally feasible measures.

 

2.3.                           The socio-environmental remediation will have as a reference the situation prior to the Collapse, the Socio-Environmental Remediation Plan and its indicators to be approved under the terms of this Settlement.

 

2.4.                           The compensation or indemnity measures defined in this settlement correspond to the set of measures and actions (financial or otherwise) with the purpose of indemnifying, compensating, bringing benefits, considerations and/or counterbalancing, proportionately and as agreed upon herein, the impacts, damage, or losses caused by the Collapse and other negative repercussions. The compensation measures include:

 

I - Irreparable environmental damage, listed in Schedule IX of this Settlement;

 

II - The irrecoverable portion of the recoverable environmental damage known up to the date of execution of this Settlement, according to the diagnosis of the Socio-Environmental Recovery Plan. It should be noted that, if a future diagnosis increases the unrecoverable portion of the damage, new compensatory measures may be applicable in proportion to the additional unrecoverable portion;

 

5

 

III - The losses, negative impacts, and damage resulting from temporary losses of natural resources and/or environmental or ecosystem services resulting from the time between the occurrence of the damage and the conclusion of the environmental remediation measures (considered for this purpose as intercurrent environmental damage), according to the Socio-Environmental Recovery Plan.

 

2.5.                           During the performance of the Socio-Environmental Remediation Plan, whenever it is identified, superveniently, that there is no possible technical solution for the socio-environmental redress or recovery, initially considered as recoverable in whole or in part, additional compensatory measures shall be adopted, which will be socially and environmentally equivalent to the non-recoverable impacts and to the final losses, according to the technical solution required by the environmental agency, with the support of the Environmental Audit.

 

2.6.                           Whenever the execution of redress and recovery measures imply new socio-environmental impacts, additional remediation and/or compensatory measures must be established, which will be socially and environmentally equivalent to the new impacts, in the manner to be defined in the Socio-Environmental Remediation Plan or in the environmental permit, as the case may be. The socio-environmental and socio-economic damage resulting from the socio-environmental redress or recovery measures must be fully redressed.

 

3.              SOCIO-ECONOMIC REDRESS

 

3.1.                           Vale undertakes to pay for or execute projects and actions as detailed in Schedules I.1, I.2, I.3, I.4, III, and IV, which will be intended to redress all diffuse and collective socio-economic damages resulting from the Collapse. The supervening damage, the individual and homogeneous individual damage of a divisible nature are excluded, according to the claims of the Lawsuits not dismissed by this Settlement, which are the subject matter of the judicial expert evidence that will be produced.

 

3.2.                           The socio-economic redress will respect local lifestyle, the autonomy of the affected people, and the strengthening of public services.

 

3.3.                           The affected people will have their informed participation guaranteed in the conception, drafting, execution, monitoring, and evaluation of the plans, programs, projects, and actions related to Schedule I.1 - Affected Communities’ Demands Projects.

 

6

 

3.4.                           The affected people will work on prioritizing and monitoring the projects in listed in Schedules I.3 and I.4.

 

3.5.                           The Commitment Agreement (TC) executed between Vale and the Public Defenders’ Office of the State of Minas Gerais, on April 5, 2019, is hereby ratified.

 

3.5.1.                  The victims and affected parties are free to choose the out-of-court procedure, established in the TC mentioned in item 3.5, the existence of which does not prevent the use of judicial means, with the production of all means of proof admitted by the law.

 

3.6.                           Individual damage and individual homogeneous damage of a divisible nature are not covered by this Settlement.

 

3.7.                           The Assessment Studies on Human Health Risk and Ecological Risk, Morbidity and Mortality, and Agricultural and Livestock Productive Zoning, as well as their reviews, may indicate additional remediation actions, besides those already provided for herein that are not contemplated by the amounts agreed upon in this Settlement.

 

3.8.                           The Human Health Risk and Ecological Risk Studies (ERSHRE), contracted and paid by Vale, will continue, and will be audited under the terms of the Commitment Agreement signed by the Prosecution Office of Minas Gerais and Vale on February 15, 2019 (Civil Investigation No. MPMG 0090.16.000311-8), complying with the standards, guidelines, indicators, and methodology already approved by the Ministry of Health and other competent public agencies.

 

3.8.1.                 The technical assistant of the competent Court for the execution of this Settlement will monitor the execution of the ERSHRE, observing its schedule, becoming aware of the facts and being able to express his opinion, with the objective of helping the Court to make the findings in the hypotheses set forth in Article 518 of the Civil Procedure Code. In these hypotheses, the Court’s technical assistant will have forty-five (45) days to provide his opinion in the aforementioned hypotheses, which term may be extended, upon justification and only once, for another forty-five (45) days.

 

3.8.2.                 The stages of the ERSHRE must be submitted for joint analysis, monitoring, and approval by the Minas Gerais State Department of Health - SES and the State Environmental System - SISEMA, with the support of the Environmental Audit, defined in the scope of the Commitment Agreement signed by the Minas Gerais Prosecution Office and Vale, on February 15, 2019 (Civil Investigation No. MPMG 0090.16.000311-8) or another auditor that may replace it, under the terms of this Settlement.

 

7

 

3.8.3.                 The covenantors must express their opinions on the measures indicated in the studies within forty-five (45) days, after the issuance of the final opinion of SISEMA and SES, with the support of the Environmental Audit. The aforementioned collegiate opinion may be: a) agreement with the results of studies and measures; or b) disagreement, which must be justified, pointing out specifically the aspects to be improved or corrected. Such term may be extended only once, for an equal period, upon justification. If no opinion is expressed within this period, the conclusions of the study will be considered validated by the covenantors.

 

3.8.4.                 Vale may provide its opinion on the measures indicated according to item 3.8.3, within a maximum period of forty-five (45) days, counted from the end of the period provided for in the previous item.

 

3.8.5.                 If there is a consensus between the parties about the measures to be implemented after the conclusion of the ERSHRE, for those that must be carried out directly by Vale, the respective schedules and form for implementation will be defined.

 

3.8.6.                 In the case of measures to be implemented by Vale, their execution and conclusion will be monitored by the Environmental Audit, without prejudice to the jurisdiction of public agencies, and the provisions of this Settlement regarding the discharge of the obligations to do shall apply.

 

3.8.7.                 In case of measures to be implemented by the Government and that are related to risks resulting from the Collapse, their respective cost will be paid in advance by Vale. In these cases, Vale’s obligation will be considered fulfilled and the discharge will be granted automatically after the respective payment.

 

3.8.8.                 In case of disagreement between the parties as to the result of the study and resulting obligations established in this clause, the possibility of submitting the issue to the analysis of the competent court is expressly reserved, under the terms of Article 518 of the Civil Procedure Code.

 

4.              AMOUNTS PROVIDED FOR IN THE SETTLEMENT

 

4.1.                           The economic amount of this settlement, estimated at thirty-seven billion, six hundred and eighty-nine million, seven hundred and sixty-seven thousand, three hundred and twenty-nine reais (BRL 37,689,767,329.00) corresponds to the sum of the obligations defined in this instrument and the amounts indicated by Vale as expenses already incurred in the socio-

 

8

 

environmental and socio-economic remediation actions and as an advance payment of the compensation for collective and diffuse damage, as specified in Schedule VIII.

 

4.1.1.    The estimated amount for the implementation of the Socio-Environmental Remediation Plan for the Paraopeba River Basin is up to five billion reais (BRL 5,000,000,000.00).

 

4.2.                           The amount of twenty-six billion, four hundred and twelve million, six hundred and sixty thousand, one hundred and thirty-four reais (BRL 26,412,660,134.00) corresponds to the Settlement Cap and represents the maximum limit to be invested, paid, or spent by Vale in the fulfillment of the socio-economic remediation and  compensation obligations and in the compensation for socio-environmental damage that is already known, according to Schedules I.1, I.2, I.3, I.4, II.2, II.3, III, and IV of this Settlement and other expenses specified in this chapter. Such cap also contemplates anticipated indemnification amounts, indicated in items XI and XII of the “Recitals”.

 

4.3.         The amount referred to in item 4.2 does not cover the following expenses:

 

a) full socio-environmental redress and recovery, including unknown, future, or supervening damage;

 

b) compensations referring to individual rights;

 

c) performance of the obligations set forth in the commitment agreements and court settlements related to the Collapse already executed and not novated or expressly terminated by this Settlement;

 

d) compensation for any environmental damage resulting from the Collapse, which is not listed in Schedule IX and is considered irrecoverable;

 

e) execution of the emergency demands, except for the emergency payment, with emphasis on drinking water supply, silage supply, and the works related to the remaining structures, the amounts of which cannot be discounted from the socio-environmental and socio-economic redress;

 

f) groundwater monitoring for human consumption according to the monitoring plan to be submitted by Vale and approved by SES, without prejudice to the continuity of the monitoring actions and installation of groundwater treatment technologies that

 

9

 

are already underway until such time as the aforementioned monitoring plan is approved by the SES;

 

g) cost of actions developed by the expert appointed by the competent Court, or that are ordered by the latter, except in relation to what is referred to in item 4.4.2.2;

 

h) referring to temporary compulsory displacement resulting from the Collapse, emergency or repair works, and the consequent allocation, which must take place in adequate temporary housing, that is, in similar conditions to the relocated person’s housing, while the cause of displacement persists. Local specificities and the will of the people affected must be respected, whether they will be accommodated in hotels or in houses made available by Vale, while the cause of displacement persists. The amounts resulting from these measures cannot be discounted from the socio-environmental and socio-economic redress;

 

i) Contracting, costing, and auditing the Human Health Risk and Ecological Risk Studies (ERSHRE), provided for in clause 3.8, and all measures to be implemented upon completion of the ERSHRE.

 

4.4.                  The amount referred to in item 4.2 will be applied as follows:

 

4.4.1.                 The amount of three billion reais (BRL 3,000,000,000.00) will be destined to the funding and operationalization of the Affected Communities’ Demands Projects listed in Schedule I.1. This is an obligation to pay imposed on Vale, which will be settled, pursuant to Chapter 8 of this Settlement, upon the release of the amounts deposited in court.

 

4.4.1.1.   Out of the amounts provided for in this schedule, the minimum amount of one billion reais (BRL 1,000,000,000.00) will be reserved for credit and micro-credit projects for the affected people.

 

4.4.2.                 The amount of four billion and four hundred million reais (BRL 4,400,000,000.00) will be destined to the payment of the Income Transfer Program to the affected population and its operationalization, contained in Schedule I.2, which is the definitive solution of the Emergency Payment. This is Vale’s obligation to pay.

 

4.4.2.1.   During the transition period, which may be up to three (3) months after the ratification of this Settlement, Vale will continue to pay emergency allowance as usual, ensuring that the payment will be not be interrupted during this period, without deduction from the total amount of Schedule I.2.

 

10

 

Once the aforementioned transition is completed, Vale will deposit in court the respective amounts in full within fifteen (15) days, ensuring the continuity of the payments.

 

4.4.2.2.   During this 3-month period, the Covenantors will present to the court a proposal for a company or entity to carry out the registration of people and the payment of the amounts, as an Assistant to the Court.

 

4.4.2.3.   After the period set forth in item 4.4.2.2 and if it is not feasible, for reasons beyond the control of the Covenantors, to transfer the payments operations to the Trustee, Vale undertakes to continue to be exclusively responsible for the operational activity of payment for 3 more months, without changing the transfer criteria used until the date of execution hereof. In this case, the amounts of the Emergency Payment and its operational costs will be debited from the amount established in Schedule I.2.

 

4.4.2.4.   The reallocation of amounts from Schedule I.2 to the projects provided for in Schedule I.1 is authorized.

 

4.4.3.                 The amount of two billion and five hundred million reais (BRL 2,500,000,000.00) will be destined to the accomplishment of the Paraopeba Basin Projects, indicated in Schedule I.3, according to the details to be conducted by Vale and jointly approved by the covenantors. This is an obligation to do, and, therefore, the execution of the projects will be carried out by Vale.

 

4.4.3.1.   In relation to the funds listed in the aforementioned Schedule, which constitute an obligation to pay in the amount of one hundred and twenty-five million reais (BRL 125,000,000.00), the settlement of which will take place, under the terms of Chapter 8, upon release of the amounts deposited in court. If the amount of the guarantees is not sufficient, Vale will make the deposit of the full amount into a specific account indicated by the State Government, in a single installment, within thirty (30) days after the decision ratifying this Settlement becomes final and unappealable.

 

11

 

4.4.4.                 The amount of one billion and five hundred million reais (BRL 1,500,000,000.00) will be destined to the accomplishment of the Projects for Brumadinho, indicated in Schedule I.4, according to the details to be conducted by Vale after the process of prioritization by the affected people, and jointly approved by the covenantors. This is an obligation to do, therefore, the execution of the projects will be carried out by Vale.

 

4.4.5.                 The amount of one billion and five hundred and fifty million reais (BRL 1,550,000,000.00) will be destined to the accomplishment of the Projects for Socio-Environmental Compensation for the Damage already known, indicated in Schedule II.2, which is one Vale’s obligation to do.

 

4.4.6.                 The amount of two billion and fifty million reais (BRL 2,050,000,000.00) will be destined to the operationalization and execution of the Water Security Projects, indicated in Schedule II.3, to be managed by the State Government, and all the interventions and works resulting therefrom will belong to the State of Minas Gerais. This is an obligation to pay imposed on Vale, which will be settled, pursuant to Chapter 8 of this Settlement, upon the release of the total amounts deposited in court referred to in this Schedule. If the amount of the guarantees is not sufficient, Vale will make the deposit of the full amount into a judicial account, in a single installment, within thirty (30) days after the decision ratifying this Settlement becomes final and unappealable.

 

4.4.7.                 The amount of four billion, nine hundred and fifty million reais (BRL 4,950,000,000.00) will be destined to the operationalization and execution of the Mobility Program, described in Schedule III, to be managed by the State Government, and all interventions and works resulting therefrom will belong to the State of Minas Gerais. This is one of Vale’s obligation to pay, which will be settled by the deposit into a judicial account in twelve (12) equal and successive installments of four hundred and twelve million and five hundred thousand Reais (BRL 412,500,000.00) each. The first will mature within sixty (60) days after the decision ratifying this Settlement becomes final and unappealable, the second within two hundred and ten (210) days after the payment of the first installment, and the others every six (6) months after the payment of the previous installment.

 

12

 

4.4.8.                 The amount of three billion, six hundred and fifty million reais (BRL 3,650,000,000.00) will be destined to the operationalization and execution of the Public Service Strengthening Program, described in Schedule IV, to be managed by the State Government. This is one of Vale’s obligation to pay, which will be settled by the deposit into a judicial account in six (6) equal and successive installments of six hundred and eight million, three hundred and thirty-three thousand, three hundred and thirty-three Reais and thirty-three cents (BRL 608,333.333.33) each. The first will mature within sixty (60) days after the decision ratifying this Settlement becomes final and unappealable, the second within two hundred and ten (210) days after the payment of the first installment, and the others every six (6) months after the payment of the previous installment.

 

4.4.9.                 The amount of one hundred and thirty-five million reais (BRL 135,000,000.00) will be destined to the Wolbachia Biofactory and Funed projects, under the terms of this clause.

 

4.4.9.1.   The Wolbachia Biofactory project includes: (i) the implementation of the Biofactory, obligation to do; (ii) the hiring, by Vale itself, of an entity responsible for operating the Biofactory; and (iii) the funding of all expenses necessary to operate the Biofactory within the scope of the Vectors Containment Plan for a period of 5 years, as of the operating license. The said amount also covers the safety and conservation expenses of the Biofactory in the period between the conclusion of the work and the beginning of the operation, subject to the cap amount of this Settlement.

 

4.4.9.1.1.   The governance of this project will be established in a proper legal instrument, to be executed between the parties within thirty (30) days as of the ratification of the Settlement.

 

4.4.9.1.2.   The Audit, carried out only for the implementation of the Biofactory, will follow the terms of this Settlement, especially Chapter 6. For the amount reallocation, the cap and the reallocation hypotheses of Schedule IV must be observed.

 

13

 

4.4.9.2.   The Funed project, which is one of Vale’s obligation to do, includes the restructuring of the Ezequiel Dias Foundation (FUNED - Fundação Ezequiel Dias) and the supply of inputs. The governance of this project is established in a proper legal instrument, except for the Audit, which will follow the provisions of this Settlement, according to Chapter 6. For the amount reallocation, the cap and the reallocation hypotheses of Schedule IV must be observed.

 

4.4.10.          The amount of three hundred and ten million reais (BRL 310,000,000.00) will be destined to public expenses and temporary staff hiring due to the Collapse and the performance of this Settlement. This is Vale’s obligation to pay, which will be settled, under Chapter 8, upon release of the amount of the guarantees deposited into court. If the amount of the guarantees is not sufficient, Vale will make the deposit of the full amount into a judicial account within thirty (30) days after the decision ratifying this Settlement becomes final and unappealable. The release of the amounts will be carried out upon motion by the State Government to the Court, without the need for Vale’s opinion. The amounts will be released according to a four-month spending plan.

 

4.4.11.          The amount of seven hundred million reais (BRL 700,000,000.00) will be destined to the hiring of support structures, including audits and independent technical advisors. In case these amounts are not used, the remaining balance will be used as decided by the covenantors.

 

4.4.12.          The amount of seventy-one million forty thousand, eight hundred and twenty-eight reais (BRL 71,040,828.00) will be destined to the Firefighters’ TAC, signed on 11.17.2020, and the amount of ninety-six million, six hundred and nineteen thousand, three hundred and six reais (BRL 96,619,306.00) will be destined to the Civil Defense TAC, signed on 11.20.2020, as provided for in Schedule V of this Settlement.

 

4.4.13.          The amount of one billion and five hundred million reais (BRL 1,500,000,000.00) corresponds to the advance payment of the compensation owed by Vale, according to the judicial decisions handed down on 3.31.2020 and on 5.19.2020, within the scope of Public-Interest Civil Actions No. 5026408-67.2019.8.13.0024, No. 50444954-

 

14

 

73.2019.8.13.0024, No. 5087481-40.2019.8.13.0024, and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024.

 

4.5.                           The specific accounts referred to in subitems 4.4.6, 4.4.7, and 4.4.8, will have determined purposes and will be held in an official financial institution to be defined by the State Government, as the case may be, with interest-bearing accounts to be created exclusively for this purpose.

 

4.5.1.                 The management of these specific accounts will be carried out by the State Government and their inspection will be done according to legal regulations.

 

4.5.2.                 The destination of amounts from these specific accounts for purposes other than those established in this Settlement, even if on a temporary basis, will give rise to liability for the manager who causes it.

 

4.5.3.                 The balances of the specific accounts, while not used, will be mandatorily invested in a short-term financial investment fund or in open market operations backed by government securities, depending on what proves to be more profitable and safer, at the discretion of the State Government.

 

4.5.4.                 The financial revenues earned by a specific account will be reverted to the benefit for the account itself and, later, to the execution of the Projects provided for respectively in each Schedule.

 

4.6.                           The amounts set forth in this Settlement, unless expressly stated otherwise, will be monetarily restated by the variation of the Extended Consumer Price Index (IPCA), or other index that replaces it, between the date of ratification of this Settlement and their respective payment.

 

4.7.                           The possibility of reallocating the amounts among the projects established in the respective schedule is allowed, subject to the governance established therein; reallocation among schedules is forbidden, except in the cases set forth in item 4.4.2.4. The reallocation will follow efficiency, public interest, effectiveness, and economy criteria.

 

4.8.                           The redress measures in the form of obligations to pay will be considered fulfilled upon deposit/transfer of the amount or installment into the respective fund or account, and the supporting deposit/transfer document must be presented in the record of the action subject matter of this Settlement.

 

15

 

4.9.                           Regarding the obligation to pay, Vale will not be responsible for the management of the resources deposited into the account(s) or fund(s) created under this Settlement, nor for any errors or failures in the execution of the respective measure, work, or project to which the amounts are destined, nor for the achievement of the goal intended, which will be incumbent upon the Government.

 

4.10.                    Vale will implement the measures, directly or by hiring a company or institution with technical qualification and capacity to do so, in the form of an obligation to do to be performed by Vale (Schedules I.3, I.4, II.1, and II.2), according to the terms, deadlines, and conditions described in the details of the Programs and Projects.

 

4.11.                    After detailing the measures jointly approved by the covenantors, in the form of this Settlement, the obligations to do incumbent upon Vale shall be executed in accordance with the deadlines, technical standards, and detailed results.

 

4.12.                    In the event that Vale or its contractors prove to have caused an increase in the costs planned for the execution of the projects, under no circumstances may the increased costs be deducted from the global amount of the Settlement, and Vale shall bear the additional costs caused by it, ensuring the proper conclusion of the projects. In case of comparative fault, Vale will be liable proportionately to its fault.

 

4.13.                    In the obligations to do incumbent upon the Government, if the execution of the redress or compensation measures becomes more expensive than the amount planned in the detailing process, the Executive Branch must:

 

I.  Adjust, change, reduce, or limit the scope of the measure, reviewing it to fit the established financial cap; or

 

II.       Offset the amount that exceeds the amount established herein by readjusting, adjusting, changing, limiting the scope, or excluding another measure or project under the responsibility of the Executive Branch contemplated in this Settlement, always respecting the amount of the schedule.

 

16

 

4.14.                    The parties agree that all financial resources resulting from this settlement, while remaining into court or administrative deposit, are not subject to the provisions of Federal Complementary Law No. 151/2015, and the use thereof, even if temporarily, for purposes other than those established herein is forbidden.

 

5                               DETAILING AND MONITORING OF PROGRAMS AND PROJECTS

 

5.1                              The detailing, monitoring, and auditing of the Projects listed in Schedule I.1, Vale’s obligation to pay, will be carried out with the participation of the affected communities in each territory, which will define the projects of their interest, with the support of the Independent Technical Advisors. The resources management plan will be presented to the court by the Prosecution Offices and the Public Defenders’ Office of the State of Minas Gerais within one hundred and twenty (120) days from the ratification of this Settlement, ensuring the participation of the affected people and the appropriate structure, subject to the cap of the Schedule.

 

5.1.1                             The participation of the affected people can also occur by means of public hearings in the State Legislature of Minas Gerais.

 

5.2                              The detailing, monitoring, and auditing of Schedule I.2 will be carried out jointly by the MPMG, MPF, and DPE and presented to the court within forty-five (45) days after the ratification of this Settlement. The rules and criteria of the new income transfer program will be proposed by the Covenantors and submitted to the court.

 

5.3                              The detailing of the Projects indicated in Schedules I.3 and I.4, will be carried out by Vale after a consultation process for prioritization purposes.

 

5.3.1           The covenantors, jointly, will carry out a consultation procedure for prioritization purposes with the affected people, and they must clarify the content of the projects, financial cap, including by informing about the possibility that not all projects will be implemented. The final decision regarding the projects to be implemented will be up to the covenantors.

 

5.3.2           The consultation and prioritization process, including the necessary infrastructure, will be paid with resources provided in Schedules I.3 and I.4.

 

5.3.3           The projects listed in Schedules I.3 and I.4 will be considered a priority by the Covenantors, for the purpose of allocating resources of the respective Schedule, in view of its purpose of strengthening the public service and repairing the effects of the

 

17

 

Collapse. The group of projects subject to the consultation process for prioritization purposes will be defined by the Covenantors.

 

5.3.4           The Covenantors will send the list of the projects they consider to be priority projects for detailing by Vale. The detailing consists of the technical and financial feasibility analysis and presentation of the detailed scope, schedule, estimated costs, and expected results (indicators, goals, and delivery milestones), within a maximum period of ninety (90) days as of the end of the consultation; this period may be extended for another one hundred and eighty (180) days, provided that upon justification.

 

5.3.5           In the listening process for prioritization purposes, the projects indicated by the affected people as the most important will be quoted and detailed in successive stages (“blocks”), subject to a reserve of, at least, 25% of the financial cap of each project.

 

5.3.6           After the approval of the detailing jointly by the covenantors, supported by the evaluation of the Socio-Economic Audit, Vale will start the drafting of the executive projects and the execution of the works/actions.

 

5.3.7           The approval and the beginning of the implementation of a project, or group of projects (“blocks”) will be done in successive stages, subject to a reserve of, at least, 25% of the financial cap of the group of projects (blocks) already approved.

 

5.3.8           In the event there is a residual financial balance that is insufficient for the approval and start-up of projects included in the prioritization list, Vale may settle the obligation by depositing the residual amount in a judicial account to be applied in projects as decided by the covenantors.

 

5.3.9           The beginning of the execution of the projects, or “blocks” of projects, will depend on the availability of financial resources, observing the aforementioned reserve, according to the approval in stages set forth in the previous items and always respecting the cap defined for the respective Schedule. Thus, the availability of financial resources for the execution of each project should be verified throughout the execution of the projects previously approved by the covenantors.

 

5.3.10    In case the projects execution cost is higher than the quoted amount, Vale will be responsible for informing the Covenantors of such a fact and the justification. The resources reallocation rules set forth in this settlement will be complied with, always respecting the cap of the respective schedule, except for the cases established in item 4.4.2.4.

 

18

 

5.4                              Part of the amount established for Schedule I.3 will be destined to projects related to the repair and strengthening of the public service submitted by the municipalities qualified under the terms of the respective Schedule.

 

5.4.1                             Immediately after the ratification of the Settlement, the covenantors will request the municipalities to submit a list, within ninety (90) days, containing projects relevant to the redress, aimed primarily at strengthening public services, containing, at least, scope, amount, schedule, and expected results. In case the deadline or the requirements are not met by the municipalities, the allocation of the resources will be decided by the covenantors.

 

5.4.2                             The projects will be evaluated according to the criteria established by the covenantors, jointly, subject to the obligations already established in this Settlement, in order to optimize the resources involved, subject to the amount destined to these projects in the respective Schedule.

 

5.4.3                             The consultation process for prioritization purposes, referred to in item 5.3.1, will be carried out after the approval of the covenantors.

 

5.4.4                             In no more than one hundred and eighty (180) days after the presentation by the covenantors of the list of prioritized projects, Vale shall detail the projects, aiming at the analysis of the technical and financial feasibility, as well as scope, estimated cost, schedule, and expected results.  After the approval of the detailing by the covenantors, the execution of the projects will start immediately, subject to the established schedule.

 

5.4.5                             The process of quoting, detailing, and implementing these projects will be carried out in blocks, according to items 5.3.5 and 5.3.7.

 

5.5                              For the exclusive purpose of receiving and submitting the project proposals of Schedule I.3, the municipalities listed in the mentioned Schedule are hereby deemed qualified, taking into account the following alternative criteria: they must be located on the banks of Ferro-Carvão Creek, Paraopeba River downstream the Collapse, Reservoir of the Retiro Baixo Hydroelectric Power Plant, or Reservoir of the Três Marias Hydroelectric Power Plant; they must have water supply suspended in compliance with the Joint Technical Note IGAM/SES No. 3/2019; they must have received emergency works and services due to the Collapse or be included in the Socio-Environmental Remediation Plan.

 

5.5.1                             If a municipality not listed in Schedule I.3 meets the criteria of the previous item and wishes to receive projects, it may present a motion with reasons to the

 

19

 

covenantors, demonstrating that it meets the criteria. The acceptance of the request will depend on the decision of the majority of the covenantors.

 

5.5.2                             The deadline for submitting the request referred to in the previous paragraph is up to two (2) years, as of the ratification of this Settlement. During this period, 8% of the total amount of resources destined to Schedule I.3 will be reserved. After this period, the remaining reserved resources will be applied in projects of the qualified municipalities according to the criteria in item 5.5.

 

5.5.3                             The distribution of the resources destined to projects to be financed with Schedule I.3 amounts will be done based on the criteria defined in the Schedule itself.

 

5.5.4                             Without prejudice to the procedures set forth in the previous items, in the consultation procedures set forth in item 5.3.1, the affected population, directly or by representative entities, and the municipalities listed in Schedule I.3, may submit other projects for the Covenantors’ resolution, provided that they are related to the strengthening of public services and the redress of the effects of the Collapse in the region, within ninety (90) days after the decision ratifying this Settlement becomes final and unappealable.

 

5.6                     The monitoring and follow-up of the projects will be done by the affected people. Auditing will be exercised by the covenantors, supported by the Socio-Economic Audit.

 

5.7                     The detailing of the Programs and Projects indicated in Schedule II.1 (Socio-Environmental Recovery) will be carried out as follows:

 

I - Preparation of the environmental remediation chapter/plan/program by a company hired by Vale;

 

II - The Environmental Audit will produce a report on the chapter/plan/program within thirty (30) days after the delivery by Vale. The plan/chapter/program must be analyzed and approved by SISEMA within no later than sixty (60) days after the Audit’s analysis.

 

III - Respecting the authority of SISEMA and other public agencies, as the case may be, the covenantors must periodically follow up the drafting of each chapter/plan/program in order to allow joint validations at the end of each chapter. Such a joint validation of the covenantors must occur within up to thirty (30) days after the issuance of SISEMA’s opinion about the chapter/plan/program. In case of “joint rejection” of the chapter or program by a majority of votes by the covenantors, the latter must indicate, within the same time limit, the appropriate measures for the

 

20

 

fulfillment of the obligation. The absence of opinion within the above-mentioned deadline will be considered as validation.

 

IV - In the event of rejection of a plan/chapter/program or submission of measures for compliance with the obligation, VALE will be heard within thirty (30) days as to the incorporation of the respective plan/chapter/program and consequent execution. If there is no agreement regarding the above measures, Article 518 of the Civil Procedure Code will be applicable to settle the issue, without prejudice to the execution and continuity of the uncontested redress measures approved by SISEMA.

 

V - Vale shall execute environmental remediation actions.

 

5.7.1                             The licenses, grants, consents, and other administrative authorization acts will follow the procedure established in the Law.

 

5.7.2                             The monitoring and auditing of the Programs and Projects of Schedule II.1 will be carried out by the covenantors, with support from the Environmental Audit, respecting the legal and institutional authority of the public agencies.

 

5.8                     The detailing of the Programs and Projects indicated in Schedule II.2, Compensation for already known Socio-Environmental Damage, will be carried out as follows:

 

5.8.1                             Vale will perform the detailing of the projects indicated in Schedule II.2. The detailing consists of the technical and financial feasibility analysis and presentation of the detailed scope, schedule, estimated costs, and expected results (indicators, goals, and delivery milestones), within a maximum period of one hundred and eighty (180) days as of the ratification of this Settlement.

 

5.8.2                             The projects must be quoted and detailed in successive stages, subject to the priority order defined by the covenantors and a reserve of, at least, 25% of the financial cap of each project.

 

5.8.3                             After the approval of the detailing jointly by the covenantors, supported by the evaluation of the Audit, Vale will start the drafting of the executive projects and the execution of the works/actions.

 

5.8.4                             The execution of the projects will depend on the availability of financial resources, according to the cap defined for Schedule II.2. Thus, the availability of financial resources for the execution of each project should be verified throughout the execution of the projects previously approved by the covenantors.

 

21

 

5.8.5                             In case the projects execution cost is higher than the quoted amount, the resource reallocation rules established in this settlement will be complied with, always respecting the cap of the respective schedule.

 

5.9                     The detailing and execution of the Projects of Schedule II.3, Water Security Projects, will be incumbent upon the State of Minas Gerais exclusively, and it may hire specific support structures with resources from this Settlement, including by means of temporary hiring and outsourcing, respecting the cap of the respective Schedule. The interventions and works related to Schedule II.3 are incorporated to the assets of the State of Minas Gerais.

 

5.10              The detailing of the Programs and Projects indicated in Schedules III and IV will be carried out by the State Government, and it may hire specific support structures with resources from this Settlement, including by means of temporary hiring and outsourcing, respecting the cap of the respective Schedule.

 

5.10.1                      The result of the detailing process, which must contain scope, estimated amount, schedule, and expected results, will be disclosed to the public.

 

5.10.2                      The projects that correspond to the execution of public policies must obey their own characteristics and legislation when defining the scope.

 

5.10.3                      During the process of detailing the Programs and Projects, according to the State Government’s decision, the review and distribution of amounts may occur with reallocation among the Programs and Projects included in the respective schedule, but reallocation among different schedules is forbidden.

 

5.10.4                      Any savings from the execution of the Programs will be reverted to the other Programs defined in the respective Schedules.

 

5.10.5                      The execution and the monitoring will be carried out by the State Government and the auditing will be carried out according to the legal rules.

 

5.11              Projects detailing activities must indicate strategies for long-term financial sustainability, including after the implementation.

 

6                 INDEPENDENT AUDITS

 

6.1                     Regarding Vale’s obligations to do, set forth in Schedules I.3 and I.4 and Schedules II.1 and II.2 of this Settlement, Independent External Auditor(s) shall be engaged by Vale in order to evaluate: the achievement of the agreed-upon objectives and the expected results; the adequacy of the financial and material costs in relation to the quoted and approved amount,

 

22

 

 

and the effectiveness of the execution of the measures in relation to the established technical standards and rules and the provisions of this Settlement.

 

6.1.1                             Audits shall be hired, one to evaluate the socio-environmental measures (Schedules II.1 and II.2), called “Environmental Audit”, and another to evaluate the socio-economic measures (Schedules I.3 and I.4), called “Socio-Economic Audit”.

 

6.1.2                             In the case of Schedules I.1 and I.2 projects, even if they constitute an obligation to pay, the covenantors may require Vale to hire an Auditor to evaluate the financial execution, and such cost will be paid with the amounts allocated to the respective Schedule, subject to the respective cap. If the amount has already been deposited in court, the respective withdrawal will be authorized.

 

6.2                     The contract entered into between Vale and the independent auditors shall reflect the provisions of this Settlement and shall be maintained until Vale obtains the discharge of all obligations corresponding to the respective audited scope.

 

6.2.1                             The hiring of the audits must comply with the Term of Reference included in Schedule X.

 

6.2.2                             In order to prove the amounts practiced in the market, Vale shall obtain, at least, four (4) quotes from institutions with technical experience and quality and expertise, attested by their performance, and recognized independence, whose work proposal meets the scope of work provided for in the Settlement. In the case of the Environmental Audit, Vale must request a proposal from the company already hired under the scope of the Commitment Agreement signed by the Prosecution Office of Minas Gerais and Vale on February 15, 2019. Auditors must not subcontract the services without the prior joint approval of the covenantors. Vale shall submit the commercial proposals to the covenantors within a maximum period of forty (40) days after the ratification of the Settlement, subject to extension upon justification.

 

6.2.3                             Within up to fifteen (15) days after Vale’s presentation of the proposals, the covenantors shall jointly evaluate and decide on the company, according to the best proposal presented pursuant to technical and price criteria, informing the decision to Vale with proper reasons. In case all of the selected companies are rejected, it will be up to the covenantors to justify and provide reasons for their refusal.

 

23

 

6.2.4                             The audit services shall be hired within thirty (30) days after the selection of the covenantors is sent to Vale, and, within ten (10) days after the hiring, Vale shall send to the covenantors copies of the contracts.

 

6.3                     Until the Environmental Audit is hired for this Settlement, the Audit already hired under the Commitment Agreement signed by the Prosecution Office of Minas Gerais and Vale, on February 15, 2019, will remain in place, subject to the scope defined in the said Agreement.

 

6.4                     The Socio-Environmental and Socio-Economic audits are responsible for evaluating the scopes, objectives, execution, and expected results, including the physical execution schedule, risks, and details of the financial disbursement schedule, as well as cost estimates and their adequacy to market prices, and technical and financial feasibility and adequacy, with the issuance of technical reports to support the analysis and decision of the covenantors in the scope of this Settlement.

 

6.4.1           They are also responsible for evaluating the financial execution of the obligations agreed upon, in order to verify the compatibility of the quote with what has been executed.

 

6.5                     The Environmental Audit will monitor all the projects, programs, and activities related to the Programs listed in Schedules II.I and II.2, developed to comply with the Settlement.

 

6.6                     The Environmental Audit will periodically evaluate, in loco, the execution and the results effectively achieved by each program and project, their efficiency and effectiveness, considering the respective indicators.

 

6.6.1           The Environmental Audit must prepare monthly reports and present them in monthly meetings, and the participation of all the parties in such meetings is admitted, to inform about the execution of the projects and actions, according to the standards defined by the covenantors. This report must be drafted in plain language and made available electronically.

 

6.6.2           In the case of obligations that may not have been fully performed at the time of verification, the report must indicate the reasons for non-performance, specifying whether they are related to problems in the implementation of the actions or the impossibility of environmental redress, recovery, or remediation, and indicate the recommendations they deem pertinent.

 

6.7                     The Socio-Economic Audit will monitor all the projects, programs, and activities related to the Programs listed in Schedules I.3 and I.4, developed to comply with the Settlement. As

 

24

 

regards Schedules I.1 and I.2, it is up to the Socio-Economic Audit to evaluate the financial execution of the obligations agreed upon.

 

6.8                     The Socio-Economic Audit must prepare monthly reports and present them in monthly meetings, and the participation of all the parties in such meetings is admitted, to inform about the execution of the projects and actions, according to the standards defined by the covenantors. This report must be drafted in plain language and made available electronically.

 

6.8.1           In the case of obligations that may not have been fully performed at the time of verification, the report must indicate the reasons for non-performance, specifying whether they are related to problems in the implementation of the actions or the impossibility of environmental redress, recovery, or remediation, and indicate the recommendations they deem pertinent.

 

6.9                     The Audits will periodically evaluate the cash flow and the financial reports on expenses incurred and to be incurred, analyzing Vale’s accounts and checking the relation between the expenses and the planning, as well as purpose of each project. For such, the company hired shall periodically analyze:

 

I - the expenses incurred in the works, services, and acquisitions performed by Vale compared to the amounts specified in the quote.

 

II - possible differences between the quoted amount and the actual financial execution: in cases of lower-than-quoted performance, it shall verify whether all objectives, results, and quality criteria were met; and, in cases of higher-than-quoted performance, it shall indicate the cause of the difference in the amounts.

 

6.10              In addition to the monthly meetings, for the audit activities to be effective, the auditors must conduct visits and meetings, as often as necessary, with Vale’s teams, as well as with its service providers related to the performance of the Settlement.

 

6.11              The information related to the periodic monitoring of programs and projects must be made available on a Sharing Panel, an online consultation tool, according to the standards defined by the covenantors.

 

6.12              In the event of contractual noncompliance, proven irregular performance, or loss of independence, abusive pricing, technical incompetence, or insufficiency of services of any of

 

25

 

the audits hired, the covenantors will require the replacement of the company by collective resolution.

 

6.13              Any of the covenantors may request the Audit to analyze matters related to compliance with this Settlement, provided they are contemplated in the respective terms of reference (TR), and the Audit shall send the response to all covenantors.

 

6.14              The costs with the Audits mentioned in this chapter are included in the financial cap established for each respective schedule and, therefore, the amounts spent will be deducted from the total amount defined.

 

6.14.1    Exceptionally, the cost of the audit(s) related to the monitoring of the execution of programs and actions related to Schedule II.1 (socio-environmental recovery) and Schedule II.2 will not be subject to the predetermined financial cap; the services of this audit shall be performed at Vale’s expense until the conclusion of the remediation plan (Schedule II.1 and Schedule II.2).

 

6.14.2                      The company(ies) hired to audit the works established in Schedule II.1 or II.2 will have their contract limited to a maximum term of five (5) years, and shall conclude the works and deliver a conclusion report, according to the stage of remediation verified until the end date of this term and provide to the parties and to the possible new audit to be hired all the material produced, in an organized and appropriate manner for the complete understanding of the data and results. The hiring of the audit for the subsequent period will comply with item 6.2 of this Settlement.

 

6.14.3    Aiming at avoiding rework or overlapping of audit works, in the event that the audits already hired and with works in progress due to other terms and agreements executed by the parties contemplate, in whole or in part, the scope of the audits defined in this settlement, the parties may, by mutual agreement, adjust the scopes so as to make the works compatible, provided there is no prejudice to the objectives and obligations of the respective terms.

 

7                 PENALTIES

 

7.1                     In case of non-compliance by Vale or its contractors with their respective obligations undertaken in any of the items contained in this Settlement, except in cases of act of God,

 

26

 

third party liability, or force majeure, the covenantors, jointly, shall send a prior formal notice to Vale, so that Vale becomes aware of and adopts the necessary measures for the full performance of its obligations or justifies the delay, establishing a compatible term for the adjustment, not less than fifteen (15) days, taking into account the technical complexity of the obligation.

 

7.2                     After the previous procedure referred to in the previous item, and in the case of an obligation to do not performed, the covenantors may jointly notify Vale, applying a daily fine of one hundred thousand reais (BRL 100.000.00), which shall be applied from the date of formal receipt of the notification mentioned in this item by Vale until the date of compliance with the obligation or until the limit established in item 7.3, provided that

 

I - No suitable justification for non-compliance is accepted;

 

II - The request for an extension or suspension of the respective term is not accepted.

 

7.3                     In the application of the daily fine, the limit of six million reais (BRL 6,000,000.00) will be observed, or up to the value of the economic content of the defaulted obligation, whichever is lower, without prejudice to the fulfillment of the obligation.

 

7.4                     The amount due as a fine will be reverted to the account created for the obligations of the respective Schedule of the defaulted obligation, and the destination of the resources will be decided according to the rules established in each Schedule.

 

7.5                     If compliance with the obligation to do becomes impossible or unfeasible, Vale may deposit, after evaluation by the covenantors about the impossibility or unfeasibility, subject to the Auditors’ report, the amount equivalent to the cost of implementation of the defaulted obligation into the account created for the purposes of this settlement. The destination of such amount will be defined as provided for in this Settlement under item 7.4. If the impossibility or unfeasibility occurs due to Vale’s or its contractors’ fault, the said company will be liable for damages to the extent of its fault.

 

7.6                     Any failure to comply with the obligation to pay will subject Vale to a fine of 2% on the overdue amount, and default interest of 1% per month, calculated pro rata die (0.033% per day) between the date of receipt of the notification and the effective payment or deposit. As of the due date, adjustment for inflation will be applied to the overdue amount based on the IPCA until the payment date.

 

27

 

7.6.1           The amount of item 7.6 will be reverted to the account created for the obligations of the respective Schedule of the defaulted obligation, and the destination of the resources will be decided according to the rules of each Schedule.

 

7.7                     The administrative authorities failure to meet a legal deadline for the analysis of licenses, grants, or other legal administrative measures constitutes a reason for suspension of the deadline for compliance by Vale with the specific obligation, as of its occurrence, and the deadline will begin to run again only when the reason beyond Vale’s control that prevents or delays its compliance is extinguished.

 

7.8                     In relation to the Consent Decrees - TACs contained in Schedule V, the specific conditions set forth in the respective documents shall be complied with in relation to the form of compliance with the obligations and respective penalties due in the event of non-compliance, unless otherwise expressly established herein.

 

7.9                     The amount paid by Vale as a fine will not be accounted for the purposes of the cap established in this Settlement.

 

7.10              The daily fines referred to in this Chapter will be applied on the basis of calendar days, beginning on the first business day following notification.

 

8                 FINANCIAL GUARANTEES

 

8.1                     All guarantees previously provided by Vale are hereby released, including letters of guarantee, performance bond, and the amounts frozen by the Judge of the 2nd Public Treasure Lower Court of the Judicial District of Belo Horizonte - Minas Gerais in the public-interest civil actions that are the subject matter of this Settlement, which had as cause of action the Collapse.

 

8.2                     The above-mentioned frozen amounts in cash, released by the Judge of the 2nd Public Treasure Lower Court of the Judicial District of Belo Horizonte - Minas Gerais, will remain deposited in court, and will be reverted, as amounts available to the covenantors, as soon as the decision ratifying the Settlement becomes final and unappealable, and will be released by the Court according to the need to comply with the purposes for which such funds are intended. These amounts represent the fulfillment of Vale’s obligations to pay defined in items 4.4.1, 4.4.3, 4.4.6, and 4.4.10. In the event of any difference, a shortage, between the

 

28

 

amount released and the total amount of the obligation, Vale undertakes to deposit the amount of the difference in court within thirty (30) days after becoming aware of the reversal of the aforementioned amount. Vale will be fully discharged regarding these amounts as soon as decision ratifying the Settlement rendered in the CEJUSC - appellate level becomes final and unappealable.

 

8.3                     Regarding item 4.4.2, the amount will be deposited in Court within fifteen (15) days after the conclusion of the transition between Vale and the covenantors.

 

9                 TERM OF EFFECTIVENESS AND DISCHARGE

 

9.1                     This Settlement comes into effect on the date it is signed and becomes fully effective as of its judicial ratification. This Settlement will be in force for ten (10) years.

 

9.2                     In case the term provided for in item 9.1 is reached and there are still obligations pending compliance, without prejudice to the possible incidence of the penalties set forth herein and compliance with the original obligation, the Settlement will be automatically extended specifically in relation to the performance of such obligations to do incumbent upon Vale, for the time necessary for their fulfillment.

 

9.2.1                             The extension mentioned in item 9.2 must be limited to the pending project or program, and there will be no extension of the term in relation to obligations already duly fulfilled and discharged.

 

9.3                     In a manner compatible with the deadlines defined in this settlement and its term of effectiveness, it is hereby established that, in the details of the programs and projects set forth in the Schedules and in the definition of the respective time schedules, intermediate and final delivery deadlines and milestones must always be expressly established.

 

9.4                     Vale will be granted partial discharges regarding the performance of the obligations set forth in this Settlement by a joint decision of the covenantors, subject to intermediate and final delivery milestones for each project.

 

9.4.1                    For the obligations to pay, the discharge will occur when Vale makes the deposit. The proof of payment, deposit, or transfer will be considered as sufficient proof of the full, final, and irrevocable discharge of the respective obligation.

 

29

 

9.4.2                    The obligations to pay set forth in this settlement may be performed in advanced, at Vale’s sole discretion and at any time, by depositing the outstanding balance into the respective account, with full discharge taking place as set forth in the item above.

 

9.5                     For the obligations to do, the discharge will be given by a joint decision of the covenantors, upon prior opinion of the Auditors, and respecting the authority of the competent public agencies.

 

9.5.1                    The statement on the discharge of the obligation to do will be issued within a maximum period of 90 days after the issuance of a formal report by the Auditors on the fulfillment of the obligation. This deadline may be extended for an additional 90 days according to a formal joint opinion of the covenantors with due justification.

 

9.5.2                             In the event covenantors fail to provide the discharge jointly, subject to the term of item 9.5.1, the statement must be justified and grounded, expressly pointing out the pending measures to be executed by Vale for the proper adequacy.

 

9.5.3                    In case the controversy on the discharge persists, Vale may request the covenantors to renegotiate the outstanding obligation into an equivalent one, either to do or to pay.

 

9.5.4                    In case of renegotiation of obligations to pay, Vale shall deposit the amount agreed upon by the Parties within sixty (60) days. The destination of the amounts will be governed as provided for in the Schedule where the outstanding obligation was defined. In this hypothesis, the payment will be considered for the full discharge of the respective obligation.

 

9.6                     In case the covenantors fail to provide their joint statement on the discharge of the obligation referred to in item 9.5.1, Vale shall communicate in court the fulfillment of the obligation to do.

 

10          AUTHORIZATIONS AND LICENSING

 

10.1              Considering the relevant public interest of the measures, works, and actions established under this settlement, the authorization or licensing procedures to be carried out with the Executive Branch of the State of Minas Gerais will comply with the reasonable duration of the

 

30

 

process and the means that ensure the speed of its proceedings, as a priority, complying with the regulations, aiming at the efficiency in the execution of the measure, in favor of the common interest.

 

10.2              The parties, within the scope of their authorities, will make their best efforts with the competent agencies and entities to issue the necessary consent or opinion for the formalization and conclusion of the authorization, granting, or licensing processes, aiming at providing the necessary information and documents and guaranteeing the adequate progress of the respective procedures.

 

11          FINAL PROVISIONS

 

11.1              The parties adopt as principles and rules of interpretation for curing omissions and for the integration of this instrument:

 

11.1.1             The full remediation of damage (item XXXV of article 5, coupled with item VIII of article 24, paragraph 4 of article 216, coupled with paragraphs 2 and 3 of article 225, all of the Brazilian Federal Constitution, coupled with article 927 and sole paragraph of the Brazilian Civil Code, coupled with paragraph 1 of article 14 of Law. No. 6.938/1981);

 

11.1.2             Legal Certainty (article 30 of the Law of Introduction to the Rules of Brazilian Law coupled with item II of article 976 of the Civil Procedure Code);

 

11.1.3             Simplification and celerity (item LXXVIII of article 5 of the Brazilian Federal Constitution);

 

11.1.4             Transparency and informed social participation under this Settlement (Principle No. 10 of the United Nations Conference on Environment and Development, ratified by Legislative Decree No. 2/1994, coupled with item X of article 2, coupled with item V of article 4, coupled with item XI of article 9, all of Law No. 6.938/1981, coupled with Law No. 10.650/2003, coupled with Law No. 12.527/2011);

 

11.1.5             Social pacification (item VII of article 4 of the Brazilian Federal Constitution);

 

11.1.6             Strengthening of public services in the remediation measures;

 

11.1.7             Centrality of the affected people.

 

31

 

11.2              This Settlement binds Vale’s successors on any account, and any provision to the contrary will be ineffective.

 

11.3              The covenantors joint decisions referred to herein will be adopted by majority vote and will be binding on all the covenantors.

 

11.4              The termination of this Settlement or of the obligations established hereunder do not cause the termination of obligations undertaken by Vale under other commitment agreements or agreements executed between the Parties, which have not been expressly novated by this Settlement.

 

11.5              The obligations undertaken hereunder do not imply recognition of administrative or criminal liability of Vale or its employees in any kind, degree, specialty, or role performed at the company.

 

11.6              This Settlement does not exempt Vale from criminal or administrative liability for any unlawful acts practiced and/or damage caused by it, does not inhibit or limit, in any manner, the actions of control, inspection, and monitoring by any competent agency, does not substitute or repeal the environmental licensing procedures that may be necessary for the execution of its purpose, and does not limit or prevent the exercise of the legal and regulatory attributions or prerogatives of the Government in such control, inspection, and monitoring actions.

 

11.7              Without prejudice to the power-duty of inspection and other constitutional and legal prerogatives attributed to the government agents linked to the signatories to this Settlement and aiming at the fulfillment of its terms and objectives, the Parties undertake to guide the agents linked to their respective structures to comply with the flow of information and the governance procedures defined for requests, inspection, audits, questioning, requests for clarifications, demands, recommendations, notifications, determinations, and for the application of penalties related to the performance of this Settlement, as defined herein and expressed in the legislation.

 

11.8              The Parties undertake, first of all, to try to reach a consensual and out-of-court resolution for the disputes associated to this Settlement, in order to avoid its judicialization.

 

11.9              It is forbidden to use the resources from this Settlement for any purpose other than the one established herein.

 

32

 

11.10       All the resources from this Settlement, to be applied directly by the agencies and entities that are part of the administrative structure of the State of Minas Gerais, must obey the budget principles, as well as the rules and regulations that govern the budget appropriation of public revenue and expenditure.

 

11.11       The execution of this instrument will take into account the specificities and singularities of traditional peoples and communities, by means of prior, free, and informed consultation.

 

11.11.1               Channels of dialogue and communication among the affected people, the covenantors, Vale, and the society will be maintained in the existing institutional forms.

 

11.12       Full disclosure will be given and the access to information about this instrument and its performance will be guaranteed to the public.

 

11.13       The obligations under this Settlement are of relevant public interest.

 

11.14       In the implementation of the Programs, Projects, and Actions, the specificity of the situations of women, children, adolescents, the elderly, people with disabilities, the chronically ill, and other vulnerable populations will be recognized.

 

11.15       The resources destined to each of the Schedules of this Settlement may be used to hire people or services necessary to their respective operationalization.

 

11.16       The Consent Decrees (TACs), as well as other Commitment Agreements or similar instruments executed between the parties on the subject prior to the execution of this instrument are hereby ratified, and the full content of the respective instruments, their form of performance, the specific governance established in each one, as well as the parties and intervening parties originally provided for shall be respected, with the exception of novations or terminations expressly listed in this Settlement.

 

11.17       The following instruments will be terminated by the execution of this Settlement:

 

11.17.1               The Preliminary Settlement Agreement (TAP), executed by the parties at the hearing on 2/20/2019, in the case record of the Public-Interest Civil Action No. 5010709-36.2019.8.13.0024, in progress at the 2nd Public Treasure Lower Court of Belo Horizonte.

 

11.17.2               Agreement for Reimbursement and Supply of Emergency Measures to the State of Minas Gerais, executed and ratified on 3/7/19.

 

11.18       The following instruments are ratified again by the execution of this Settlement:

 

33

 

11.18.1               The Commitment Agreement, executed on 11/13/2019, between the MPMG and Vale with the Intervenience of AECOM and IGAM, as informed below:

 

Item 3, sub-item b)

 

Planning and preparation prior to data transfer - expected to take up to thirty-three (33) months as of the end of the previous critical evaluation stage. It covers the monitoring actions, with the redefinitions established in the previous stage, as well as the measures for planning and preparation of the infrastructure necessary for the transfer of monitoring data to IGAM;

 

11.18.2               The Settlement Agreement regarding the temporary hires, entered into between the State of Minas Gerais and Vale on 2/28/2019, ratified on 3/7/2019, contained in case record No. 5010709-36.2019.8.13.0024, in the form of clause 4.15 and effective for the same term of this instrument.

 

11.19       This settlement, after ratification by the CEJUSC - Appellate level, will be effective for the lawsuits filed by the Prosecution Office of the State of Minas Gerais (MPMG), the State of Minas Gerais, and the Public Defenders’ Office of Minas Gerais (DPMG) against Vale (Public-Interest Civil Action No. 5026408-67.2019.8.13.0024, Public-Interest Civil Action No. 50444954-73.2019.8.13.0024, Public-Interest Civil Action No. 5087481-40.2019.8.13.0024, and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024).

 

11.20       The judicial ratification of this Settlement will give rise to the stay or dismissal, total or partial, of the requests indicated in Schedule VII, as provided for therein, and the actions will continue regarding the remaining requests, if any, and for the follow-up on the performance of this instrument. The aforementioned lawsuits will be joined and considered connected, for all purposes and effects, on a permanent and irrevocable basis.

 

11.20.1               Vale undertakes to pay compensation to the Prosecution Office’s Fund for Diffuse Rights (FUNEMP) for the damage caused to the archaeological site “Berros II” - requested in the case records 5026408-67.2019.8.13.0024, 5044954-73.2019.8.13.0024, and 5087481-40.2019.8.13.0024 — in the amount of three hundred and sixty-one thousand, two hundred and fifty reais (BRL 361,250.00), according to the index provided in item 4.6 of this Settlement, as of the date of filing of the corresponding lawsuit, within 10 business days after the decision ratifying this Settlement becomes final and unappealable.

 

34

 

11.21       For the avoidance of doubts, this settlement will have the following effects on the requests presented in the Lawsuits:

 

11.21.1               In the requests for remediation of existing and identified environmental damage, as listed in Schedule VII: total dismissal with prejudice, pursuant to article 487, III, b), of the Civil Procedure Code, substituting the request for the terms of this settlement since the environmental remediation will take place pursuant to this instrument, the remediation plan, and in accordance with the legal standards and macro indicators, as well as indicators established in Schedule II.1 and the Environmental Remediation Plan, and under the governance provided for herein.

 

11.21.2               In requests for the remediation of unknown environmental damage: such requests will be exempted, totally or partially, from dismissal, and the judicial expert work already in progress will continue for its possible identification;

 

11.21.3               In the requests for socio-economic redress and compensation for collective and diffuse non-pecuniary damage: total dismissal with prejudice, pursuant to article 487, III, b), of the Civil Procedure Code, substituting the requests for the obligations to do and to pay established in this settlement;

 

11.21.4               Regarding requests for compensation for homogeneous individual damage of a divisible nature: such requests will be exempted, totally or partially, from dismissal, and the judicial expert work already in progress will continue for its possible quantification;

 

11.22       The judicial ratification of this Settlement, with the dismissal of the requests established in Schedule VII, will lead to the closing of the court-appointed expert’s calls related to them, according to Schedule XI.

 

11.23       The Parties, in all activities related to this settlement, shall comply with the provisions of the Brazilian Anticorruption Law (Law No. 12.846/2013) at all times, as well as the provisions contained in any other law, rule, or regulation with similar purpose and effect, in particular those applicable to the Government, as well as all regulations, laws, rules, and statutes related to corruption, bribery, conflict of interest, money laundering, fraud, or misconduct in public office.

 

35

 

11.24       The Parties abandon all ongoing appeals and waive their right to file new appeals against decisions rendered until the date of execution of this Settlement within the scope of the lawsuits filed by the Prosecution Office of the State of Minas Gerais (MPMG), the State of Minas Gerais, and the Public Defenders’ Office of Minas Gerais (DPMG) against Vale (Public-Interest Civil Action No. 5026408-67.2019.8.13.0024, Public-Interest Civil Action No. 50444954-73.2019.8.13.0024, Public-Interest Civil Action No. 5087481-40.2019.8.13.0024, and Action for Interlocutory Relief No. 5010709-36.2019.8.13.0024).

 

11.25       Within up to 48 hours after the ratification of this Settlement, the Covenantors undertake to indicate to the Pro-Brumadinho Steering Committee, by act of the supreme leader, a permanent member (strategic level), an assistant permanent member (tactical level), and a deputy, the people responsible for the performance of the said settlement in each body. The servants indicated will have authority to formally represent the institution on any issues related to the performance of this settlement.

 

11.26       The powers of the executive department to articulate the actions of the covenantors to this settlement will be exercised by the State Government by means of the coordination of the Pro-Brumadinho Steering Committee.

 

11.27       The projects indicated in Schedules I.3, I.4, II.2, III, and IV are subject to change or substitution until the final approval of the detailing referred to in chapter 5, respecting the cap of each Schedule and the rules established herein.

 

12          JURISDICTION

 

12.1              The 2nd Public Treasure Lower Court of the Judicial District of Belo Horizonte - Minas Gerais has jurisdiction to deal with the issues, doubts and/or disputes arising from this instrument, pursuant to article 518 of the Civil Procedure Code.

 

Thus, in order to produce its regular legal effects, the parties execute this instrument in seven (7) identical counterparts, hereby waiving the term for appealing.

 

Belo Horizonte, February 4, 2021.

 

Romeu Zema Neto

Governor of the State of Minas Gerais

 

36

 

Antônio Augusto Brandão de Aras

Federal Prosecutor General

 

Sérgio Pessoa de Paula Castro

General Counsel for the State Government

 

Jarbas Soares Júnior

State Prosecutor General

 

Flávio Alexandre Correa Maciel

Prosecutor

 

Otto Alexandre Levy Reis

State Secretary for Planning and Management

 

Carlos Eduardo Amaral Pereira da Silva

State Secretary of Public Health

 

Marília Carvalho de Melo

State Secretary for Environment and Sustainable Development

 

Fernando Scharlack Marcato

State Secretary for Infrastructure and Mobility

 

Gério Patrocínio Soares

State Defender General

 

Edilson Vitorelli Diniz Lima

Federal Prosecutor

 

Eduardo Henrique de Almeida Aguiar

Federal Prosecutor

 

Alexandre Silva D’Ambrósio

Legal Vice-President - Vale S/A

 

37

 

SCHEDULES

 

SCHEDULE I — SOCIO-ECONOMIC REDRESS PROGRAM

 

	
Schedule I.1 -   Demand Projects of the Affected Communities
    
	
 
    
	
Amount: BRL 3,000,000,000.00
    
	
 
    
	
Type of obligation
    	
Projects
    
	
Vale’s Obligation to Pay
    	
Projects to be defined by the affected people in   Region 1
    
	
Projects to be defined by the affected people in   Region 2
    
	
Projects to be defined by the affected people in   Region 3
    
	
Projects to be defined by the affected people in   Region 4
    
	
Projects to be defined by the affected people in   Region 5
    
	
Financing, guarantee, and equalizer funds for   economic diversification, farming and agroindustry - Credit and Micro-credit.
    

 

	
Schedule I.2 -   Program for Income Transfer to the affected population
    
	
 
    
	
Amount: BRL   4,400,000,000.00
    
	
 
    	
 
    
	
Type of obligation
    	
Project
    
	
Vale’s Obligation to Pay
    	
Amounts to be transferred to the affected people   according to criteria to be defined.
    

 

	
Schedule I.3 - Projects   for Paraopeba Basin
    
	
 
    
	
Amount: BRL   2,500,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Reference list of projects
    
	
Vale’s Obligation to Pay - Projects subject to   technical and financial feasibility assessments, subject to the cap in the   Schedule.
    	
 
    	
Upgrade of the public lighting systems and   installation of safety and communication functionalities.
    
	
 
    	
Financing fund for municipal concession projects
    
	
 
    	
 
    	
 
    
	
Vale’s Obligation to Do - Projects subject to   technical and financial feasibility assessments, subject to the cap in the   Schedule.
    	
 
    	
Execution of road works - Construction of a   bridge over the Paraopeba River in the municipality of Papagaios
    
	
 
    	
Execution of road works - Esmeraldas -São José da   Varginha
    
	
 
    	
Execution of road works - Papagaios-Pompéu
    
	
 
    	
Biofactory for production of insects beneficial   to agriculture
    
	
 
    	
Rural Area Modernization - Mobile Communication   Network for Rural Areas
    
	
 
    	
Research and technology transfer to agriculture   and cattle raising
    
	
 
    	
Preparation of a dossier on the traditional   agricultural practices in the region of Paraopeba Valley
    
	
 
    	
Light on Cultural Heritage: Underground cabling   in historical sites and areas of cultural interests.
    
	
 
    	
Performance of the Inventory of Pontinha Quilombola Community
    

 

38

 

	
 
    	
 
    	
Performance of regional inventory of cultural   assets of Paraopeba Valley
    
	
 
    	
 
    	
Restoration of protected railway stations
    
	
 
    	
 
    	
Safeguard of protected intangible heritage
    
	
 
    	
 
    	
Fire and panic safety in protected buildings with   public access
    
	
 
    	
 
    	
Support to small rural producers in the   preparation of projects in the raising of funds for adequacy of physical   infrastructure
    
	
 
    	
 
    	
Certification of agriculture and cattle raising   and agro-industrial production
    
	
 
    	
 
    	
Donation of market kits, structuring of street   markets in the municipalities and technical and managerial guidance to rural   producers
    
	
 
    	
 
    	
Strengthening of agriculture to diversity the   economic activity - Fruits and Vegetables
    
	
 
    	
 
    	
Maintenance of rural roads and environmental   recovery works
    
	
 
    	
 
    	
Food acquisition program with simultaneous   donation
    
	
 
    	
 
    	
Survey, identification and georeferencing of   rural properties susceptible to land regularization
    
	
 
    	
 
    	
Recovery of pasture areas in cattle farming   properties
    
	
 
    	
 
    	
Revitalization of the tributary subwatersheds of   Paraopeba River
    
	
 
    	
 
    	
Paraopeba Creative Corridor
    
	
 
    	
 
    	
Qualification of cultural agents for the   conservation and restoration of the heritage
    
	
 
    	
 
    	
Youth Audiovisual Hub
    
	
 
    	
 
    	
Production and dissemination of original   audiovisual content to preserve the cultural memory of the Paraopeba Basin
    
	
 
    	
 
    	
Registration Update and Generation of a   Georeferenced Digital Base
    
	
 
    	
 
    	
Local Development through Municipal Public   Procurement
    
	
 
    	
 
    	
Young Entrepreneurship and Innovation Program
    
	
 
    	
 
    	
Urban Land Regularization
    
	
 
    	
 
    	
Review of Municipal Directive Plans
    
	
 
    	
 
    	
Expansion of accessibility and assistive   technology in public structures
    
	
 
    	
 
    	
Capacity building for child and adolescent   protection network professionals
    
	
 
    	
 
    	
Capacity building in financial education,   entrepreneurship and careers
    
	
 
    	
 
    	
Structuring and fostering of collective   enterprises
    
	
 
    	
 
    	
Strengthening of state social assistance services
    
	
 
    	
 
    	
Strengthening of municipal social assistance   services
    
	
 
    	
 
    	
Implantation of Reference Centers for the Trade   of Craftsmanship and Agricultural Productions of the Communities
    

 

39

 

	
 
    	
 
    	
Implementation of the Support Division to the   State Reference Center for Alcohol and Other Drugs (N-CREAD)
    
	
 
    	
 
    	
Implementation of Well-Being Centers
    
	
 
    	
 
    	
Implementation of skateboarding tracks
    
	
 
    	
 
    	
Implementation of multisport courts
    
	
 
    	
 
    	
Improvement of the structure for traditional   communities
    
	
 
    	
 
    	
Improvement of the access to health services for   traditional communities
    
	
 
    	
 
    	
Community-based tourism
    
	
 
    	
 
    	
Attention to the mental health of the school   community
    
	
 
    	
 
    	
Strengthening of bonds and reintegration into the   school community
    
	
 
    	
 
    	
Strengthening and expansion of full-time   education in state schools
    
	
 
    	
 
    	
Restructuring of the state schools in Paraopeba   Basin
    
	
 
    	
 
    	
Restructuring of the municipal schools in   Paraopeba Basin
    
	
 
    	
 
    	
Crime Prevention - Fica Vivo (Stay Alive) and Conflict Mediation
    
	
 
    	
 
    	
Crime Prevention - Prevention Seal Program
    
	
 
    	
 
    	
Structuring of Emergency Care Units - UPA
    
	
 
    	
 
    	
Completion of the works on Basic Health Units
    
	
 
    	
 
    	
Strengthening of the Primary Health Care
    
	
 
    	
 
    	
Strengthening of medium complexity health care,   through Intermunicipal Health Consortia serving the affected municipalities
    
	
 
    	
 
    	
Promove Minas - Increasing the multidisciplinary   teams of the Extended Family Health Center
    
	
 
    	
 
    	
Strengthening of the Psychosocial Care Network   (funding, hiring and capacity building of professionals)
    
	
 
    	
 
    	
Professional Education Program in the Paraopeba   Basin
    
	
 
    	
 
    	
Education for Autonomy Program
    
	
 
    	
 
    	
Strengthening of the activities of the Workers’   Health Reference Centers - CERESTs
    
	
 
    	
 
    	
Creation of a Support Center for Victims of   Domestic Violence
    

 

	
Schedule I.3   Projects for the affected Municipalities
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Municipalities qualified under   the terms of Clause 5.7 of the Settlement
    
	
Vale’s Obligation to do - Projects to be proposed   by the municipalities and performed according to technical and financial   feasibility assessment, subject to the cap set in the Schedule and the   percentages of the methodology below.
    	
 
    	
Abaeté, Betim, Biquinhas,   Brumadinho, Caetanópolis, Curvelo, Esmeraldas, Felixlândia, Florestal,   Fortuna de Minas, Igarapé, Juatuba, Maravilhas, Mário Campos, Mateus   Leme, Morada Novas de Minas, Paineiras, Papagaios, Pará de Minas, Paraopeba,   Pequi, Pompéu, São Gonçalo do Abaeté, São Joaquim de Bicas, São José da   Varginha, and Três Marias.
    

 

40

 

Criteria for distribution of funds to the projects proposed by the municipalities (according to item 5.7.3 of the Settlement):

 

1.                  Socio spatial dimension of the Paraopeba River bed in relation to the total area of the municipality

 

In order to measure the presence of the Paraopeba River in each of the municipalities, the proportion between the length of the Paraopeba River channel in the municipality (km) and the total area of the municipality (km2) will be calculated. To this effect, the extent of the Paraopeba River channel in each municipality (km) will be divided by the total area of the municipality (km2).  We will use data from the Brazilian Institute of Geography and Statistics (IBGE), the National Water Agency (ANA), and the Minas Gerais Water Management Institute (IGAM). The criterion has the standard weight used in the construction of the methodology (7/50).

 

2.         Proximity of the municipality to the Collapse site

 

The municipalities will be classified on a scale of 1 to 5, according to their proximity to the Collapse site, and the municipalities closer to Córrego do Feijão Mine, which suffered greater environmental, social and economic impacts, will receive a higher score, while the more distant municipalities will receive a lower score. The reference adopted for the classification will be the subdivision of the municipalities proposed by the Prosecution Office of Minas Gerais, in five areas of operation of the Independent Technical Advisors (ATIs), where municipalities in region 1 will receive grade 5, region 2 will receive grade 4, region 3 will receive grade 3, region 4 will receive grade 2, and region 5 will receive grade 1. The municipalities that may not be on the list of ATIs’ operations will be evaluated with the same score obtained by the closest bordering municipalities. The data source will be the list of municipalities per region of operation of the ATIs. The criterion has the standard weight used in the construction of the methodology (7/50).

 

3.         Percentage of total approximate population

 

The data source will be the population projection of the Brazilian Institute of Geography and Statistics (IBGE) for 2020. For the calculation, the approximate total population of each municipality will be divided by the sum of the approximate total population of all the municipalities. The objective therefor is to understand the proportion of inhabitants of each municipality in relation to the total population, approaching the logic of per capita

 

41

 

distribution. For a better understanding of the number of people affected in each municipality, the population criterion will be weighted (8/50).

 

4.   Municipal Human Development Index (2010)

 

The Municipal Human Development Index (HDI) is an adaptation, made by IPEA and FJP, of the global methodology of the Human Development Index (HDI), of the United Nations Development Program (UNDP). The variables used are: long and healthy life - longevity; access to knowledge - education; standard of living - income. The index ranges from 0 to 1, being 0 low municipal human development and 1 high municipal human development. HDI is calculated based on the national census data conducted every ten years. The polarity of the index is “the higher, the better”, therefore, to operationalize the calculation, which aims at attributing a higher score to the municipalities with lower human development, it is necessary to invert the polarity of the index, making it “the higher, the worse” - this can be done by calculating “=1 - [index amount]”. The data sources will be the Institute for Applied Economic Research (IPEA) and the João Pinheiro Foundation (FJP). The criterion has the standard weight used in the construction of the methodology (7/50).

 

5.   FIRJAN Municipal Development Index

 

A summary of the annual socioeconomic indicator developed by the Federation of Industries of Rio de Janeiro (FIRJAN), which comprises variables related to employment and income; education; and health, obtained from the Ministries of Labor, Education and Health. The variables are related to municipal competences, such as: maintenance of a business environment conducive to local jobs and income generation, early childhood and elementary education, and basic health care.

 

The index ranges from 0 to 1, being 0 low municipal development and 1 high municipal development. The polarity of the index is “the higher, the better”, therefore, to operationalize the calculation, which aims at attributing a higher score to the municipalities with lower municipal development, it is necessary to invert the polarity of the index, making it “the higher, the worse” - this can be done by calculating “=1 - [index amount]”.

 

The data source will be the 2018 IFDM (base year 2016) and, in the absence of such data for a given municipality, the base year 2015 will be adopted. Although the FIRJAN Index measures dimensions similar to the HDI, the decision was to use it also due to its annual periodicity, with more recent and updated data in relation to the reality of the municipalities. The criterion has the standard weight used in the construction of the methodology (7/50).

 

6.   Social Vulnerability Index

 

Indicator calculated by IPEA based on the demographic census, that seeks to measure dimensions related to the insufficiency of essential resources for the well-being and quality of life of the population, generating situations of social vulnerability. The index is composed of sixteen indicators, organized in three dimensions (urban infrastructure; human capital; income and work). The index ranges from 0 to 1, with 0 being low social vulnerability and 1

 

42

 

being high social vulnerability. Unlike the previous two, its polarity is “the bigger, the worse”, and no adjustment is needed to make it operational. The criterion has the standard weight used in the construction of the methodology (7/50).

 

7.   Percentage of population under poverty and extreme poverty conditions (CadÚnico)

 

The CadÚnico is the national system for registering the population in order to have access to social policies. To calculate the index, the number of people registered with a monthly per capita income between BRL0.00 and BRL89.00 (extreme poverty) and between BRL89.01 and BRL178.00 (poverty) is divided by the approximate total population of the municipality, according to the IBGE’s population projection for 2020. The data source is CECAD 2.0, a platform for consultation, selection, and extraction of information from CadÚnico and the Brazilian Institute of Geography and Statistics (IBGE). The criterion has the standard weight used in the construction of the methodology (7/50).

 

	
Criterion
    	
 
    	
Weight
    
	
Socio spatial dimension of the Paraopeba River bed   in relation to the total area of the municipality
    	
 
    	
7
    
	
Proximity of the municipality to the Collapse site
    	
 
    	
7
    
	
Percentage of total estimated population (2020)
    	
 
    	
8
    
	
Municipal Human Development Index (2010)
    	
 
    	
7
    
	
FIRJAN Municipal Development Index
    	
 
    	
7
    
	
Social Vulnerability Index
    	
 
    	
7
    
	
Percentage of population under poverty and extreme   poverty conditions (CadÚnico)
    	
 
    	
7
    
	
Total Weight
    	
 
    	
50/50
    

 

For calculation purposes, the 8/50 weight will be used for the percentage of total estimate population in 2020 (IBGE) criterion and the 7/50 weight for all other criteria. The sum of the weighted scores in each criteria will indicate the percentage corresponding to each municipality.

 

In summary, the score of each municipality in each criterion will be divided by the sum of the scores of all municipalities in the respective criterion, multiplied by the weight associated with it. Then the amount will be divided by 50 (sum of the weights assigned to the criteria) and the municipality’s final percentage will be obtained by adding up the scores of the municipalities in each criterion.

 

The formula may be operated by considering:

 

[Amount of municipality A in criterion 1 / (Sum of amounts of all municipalities in criterion 1) * Weight of criterion 1 / (Sum of weights associated with all criteria)] + [Amount of municipality A in criterion 2 / (Sum of amounts of all municipalities in criterion 2) * Weight of criterion 2 / (Sum of weights associated with all criteria)] ... + 

 

43

 

[Amount of municipality A in criterion 7 / (Sum of amounts of all municipalities in criterion 2) * Weight of criterion 7 / (Sum of weights associated with all criteria)]

 

44

 

	
Schedule I.4 -   Projects for Brumadinho
    
	
 
    
	
Amount: BRL 1,500,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Indicative list of projects
    
	
 Vale’s Obligation to Do - Projects   subject to technical and financial feasibility assessments, subject to the   cap in the Schedule.
    	
 
    	
Building of CBMMG Department in Brumadinho
    
	
 
    	
Consolidation of the ruins of Brumadinho Fort
    
	
 
    	
Building of the Police Station of Brumadinho
    
	
 
    	
Flowers for Brumadinho Project
    
	
 
    	
Rural Land Regularization in Brumadinho
    
	
 
    	
Support to Cultural Tourism in Brumadinho
    
	
 
    	
 
    	
Expansion of accessibility and assistive   technology in public structures
    
	
 
    	
 
    	
Capacity building for child and adolescent   protection network professionals
    
	
 
    	
 
    	
Capacity building in financial education,   entrepreneurship and careers
    
	
 
    	
 
    	
Structuring and fostering of collective   enterprises
    
	
 
    	
 
    	
Strengthening of municipal social assistance   services
    
	
 
    	
 
    	
Implantation of Reference Centers for the Trade   of Craftsmanship and Agricultural Productions of the Communities
    
	
 
    	
 
    	
Implementation of the Support Division to the   State Reference Center for Alcohol and Other Drugs (N-CREAD)
    
	
 
    	
 
    	
Implementation of Well-Being Centers
    
	
 
    	
 
    	
Implementation of skateboarding tracks
    
	
 
    	
 
    	
Implementation of multisport courts
    
	
 
    	
 
    	
Improvement of the structure for traditional   communities
    
	
 
    	
 
    	
Education for Autonomy Program
    
	
 
    	
 
    	
Community-based tourism
    
	
 
    	
 
    	
Restructuring of state schools in Brumadinho
    
	
 
    	
 
    	
Crime Prevention - Prevention Seal Program
    
	
 
    	
 
    	
Completion of the works on Basic Health Units
    
	
 
    	
 
    	
Strengthening of the Primary Health Care
    
	
 
    	
 
    	
Strengthening of medium complexity health care,   through Intermunicipal Health Consortia serving the affected municipalities
    
	
 
    	
 
    	
Promove Minas - Increasing the multidisciplinary   teams of the Extended Family Health Center
    
	
 
    	
 
    	
Strengthening of the Psychosocial Care Network   (funding, hiring and capacity building of professionals)
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for the Qualification   and Development of Tourism: Touristic Infrastructure Project; Project for   Productive Interaction of Tourism with Agriculture and cattle raising   Activities; Tangible Heritage Project; Intangible Heritage Project;   Watercourses pollution clean-up Project
    

 

45

 

	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for Support to   Organization and Qualification of Primary Production: Project for Structuring   the Managerial Support System to Municipal Agriculture and Monitoring of   Productive Conditions; Safe Production and Traceability Project; Product   Wrapping, Packaging, and Labeling Project; Technology Development and   Application Project; Project to Support and Foster Agroecological Activities;   Project to Support the Establishment of Municipal Inspection Services (SIM);   Project to Support and Foster Installation of Small Agribusinesses (family   farming); Project to Foster the Collective, Cooperative, and Collaborative   Work Methods in the Rural Community;
    
	
 
    	
 
    	
MACRO STRATEGY: TERRITORY PLANNING AND   INTEGRATION - Urban Requalification Program for Public Spaces: Project for Deployment,   Shared Construction of Intervention Projects, and Social-Community   Appropriation of Public Spaces; Project for Implementation of Agreed   Interventions in Public Spaces; Project for Development of Information   Material on the Agreed Interventions;
    
	
 
    	
 
    	
MACRO STRATEGY: TERRITORY PLANNING AND   INTEGRATION - Program for Appropriation of Conservation Units (UC): Project   for Preparation and Implementation of Management and Physical Structuring   Tools for the Municipal Natural Monument Mãe D’água; Project for Recovery of   Liabilities in the State Park of Serra do Rola-Moça and Support to the UC   Management; Project for Preparation and Implementation of Management and   Physical Structuring Tools for the Historical and Landscape Set of Serra da   Calçada; Project for the Creation of a New Full Protection UC; Project for   Support to the Fire Brigades.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Program for the Reclaiming of the Paraopeba River Sub-basins:   Project for Improvement and Construction of Sewage Structures; Aflora   Brumadinho Project (reclaiming of riparian forests, river sources and   ecological corridors)
    
	
Vale’s Obligation to Do - Projects subject to   technical and financial feasibility assessments, subject to the cap in the   Schedule.
    	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Water Supply Program: Project for Improvement and   Construction of Water Supply Structures; Project for Support to Registration,   Control and Inspection of Water Use Granting throughout the Municipality
    
	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Program for Water and Hydrogeological Assessment of   Brumadinho Sub-basins: Water and Hydrogeological Assessment Program of   Brumadinho Sub-basins;
    
	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Solid Waste Program: Solid waste management project;   Selective collection Project; Citizens Qualification Project; Recyclable   Materials Economic Project; Organic Matter Utilization Project;
    

 

46

 

	
 
    	
 
    	
GLOBAL STRUCTURING PROGRAMS - Global Structuring   Program for Idea Mobility - Brumadinho Digital: Global Structuring Program   for Idea Mobility - Brumadinho Digital
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for the Improvement and   Internalization of the Metallic Mineral Production Chain: Shared Supply   Network Mapping Project; Regional Consumer Market Mapping Project; Mining   Governance Project; Project to Foster Migration or Creation of New Suppliers   - basic level; Project to Foster Migration or Establishment of New Suppliers   - advanced level;
    
	
 
    	
 
    	
GLOBAL STRUCTURING PROGRAMS - Global Structuring   Program for Mobility of Things and People: Construction of a bridge over the   Paraopeba River (Ponte do Estado); Paving of the Road to Casa Branca - park   road from Alberto Flores to Casa Branca; Paving of the Conquistinha Road   (Farofa mountain range); Implantation of the South Beltway; Circulation Plan   Headquarters and Conceição de Itaguá; Improvement of the connection between   the “connecting bridge with the cargo terminal”; Duplication of the access   bridge to the Cohab neighborhood; Improvements on the MG-040 (North) at the   crossing of the industrial district area; Prospecting and follow-up on new   connections and improvements; Paving of MG-040 (south); Paving of MG-155   (south) with access to São José do Paraopeba; Paving of the MG-155 (south)   Road to Suzana; Construction of a bridge on the Paraopeba River (near Melo   Franco or Alberto Flores); Construction of a bridge over the Paraopeba River   (near São José do Paraopeba or Maricota); Construction of the Córrego do   Feijão Road - Tejuco - UPA; Construction of a road connection south of   Aranha; Construction of a roundabout U turn; Circulation Plan in Casa Branca;   Circulation Plan Aranha/Melo Franco; Serra da Moeda Park-Road (Encosta da   Serra Route) Circulation Plan in Palhano; Indicative signs throughout the   municipality; Improvements in the connection between the headquarters,   Aranha, Piedade do Paraopeba, BR-040; Improvement on the road to Serra do   Retiro do Chalé; School Transportation Improvement Project; Chartered   Transportation Regulation Project; Sustainable Mobility Project; Cidade   Acessível para Todos (pedestrians) Project; Safe Cycling Project; Accessible   Transportation Project; Brumadinho Logistics Project; Immediate Action Plan   for Transportation - PAIT
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for Reconfiguration of   the Local Energy Matrix and Promotion of Alternative Sources: Energy Plan   Project; Project for Incentive to Energy Matrix Replacement; Automotive Fleet   Electrification Project;
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Incentive Program for Secondary   Activities and Complex Services: Institutional Support Project; Incentives to   Social Organizations Project; New Production Units Study Project;   Industry-Tertiary Complex Project; Project for 
    

 

47

 

	
 
    	
 
    	
Preparation of Development Plan for Low Scale   Industrial Activities and Cooperative-Solidarity Base
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Capacity building, Technological   Capacity Building, and Competencies Development Program: Action Plan for the   Progressive Internalization of Labor in Dynamic Production Activities   Project; Troubleshooting Applications Project; Interaction Design Training   Project; Digital Literacy Project; Project for Phenomenon-Based Training   (response to local and global challenges); Local Youth and Workers Technical   Training Project; Integrated Learning Production Center Project; Capacity   Building Project for the Age of Artificial Intelligence
    
	
 
    	
 
    	
MACRO STRATEGY: TERRITORY PLANNING AND   INTEGRATION - Housing and Territory Management Program: Legal Territory   Project; Sustainable Building Project
    
	
 
    	
 
    	
MACRO STRATEGY: INTELLIGENT TERRITORY GOVERNANCE   AND SOCIAL INNOVATION - Program for Implementation, Monitoring and Assessment   of Brumadinho Transformation Strategy: Project for the Identification and   Characterization of the Players Integrating the Territory’s Intelligent   Governance Strategy; Project for Creation of a Steering Body for the General   Coordination of the Intelligent Governance and Social Innovation Macro   Strategy; Project for Structuring Communication and Inter-institutional   Integration Networks; Project for Dialogic Communication Relationships   Training; Project for Construction of Indicators and Monitoring Instruments;   Project for Capacity Building and Strengthening of Representativeness,   Qualification of Participation, Monitoring, and Proposition of Projects;   Capacity Building and Training Project for Managers, Agents, and Local   Leaders Involved in the Governance of the Territory; Capacity Building   Project for Public Managers, Political Agents and Local Government Teams in   Public Policy Management
    
	
 
    	
 
    	
MACRO STRATEGY: INTELLIGENT GOVERNANCE OF THE   TERRITORY AND SOCIAL INNOVATION - Program for the Development of Tools and   Instruments for Qualification of Integrated Municipal Management: Project for   the Municipal Government’s Organizational Diagnosis; Project for   Reconfiguring the Municipal Government’s Organizational Structure; Project   for Structuring and Adequacy of Personnel Management Areas and Tools;   Permanent Capacity Building Project for Municipal Government Employees and   other Public and Political Agents; Project for Sizing and Adequacy of the   Municipal Government’s Staff; Project for Revision and Preparation of Legal   Instruments governing the Municipal Government’s Actions; Project for   Preparation of Regulatory Instruments and Management Control Systems; Project   for Structuring the Area Responsible for the Administrative Modernization; Project   for the Development and Structuring of a Management Information System;   Project for Registration Restructuring and Updating; Project for General and   Sectoral Databases Structuring and Updating;
    

 

48

 

	
 
    	
 
    	
MACRO STRATEGY: INTELLIGENT TERRITORY GOVERNANCE   AND SOCIAL INNOVATION - Communication Network Program: Project for Creation   and Qualification of Information Access Channels; Project for Dissemination   of Potentialities; Communication School Agency Project; Communication   Consultancy Project; Dissemination Network Project; Readings of Reality   Project; Citizen Content Production Project; Participatory Design   Methodologies Project; Community Communicators Project;
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for Managing and   Monitoring Brumadinho’s Economic Transition: Program for Managing and   Monitoring Brumadinho’s Economic Transition
    
	
 
    	
 
    	
MACRO STRATEGY: TERRITORY PLANNING AND   INTEGRATION - Program for Selection, Development and Implementation of Urban   Furniture and Support Materials for Urban Interventions and the Municipal   Road System: Project for Selection and Technical Specification of Materials   Used in the Interventions; Project for Definition of the Design and Visual   and Graphic Specifications of the Urban Furniture and Physical Support of the   Public Space; Project for Scheduled Maintenance of Furniture and Supporting   Elements for Public Spaces;
    
	
 
    	
 
    	
MACRO STRATEGY: TERRITORY PLANNING AND   INTEGRATION - Program for Restructuring the Conditions for Environmental   Management and Governance: Project for Structuring the Municipal Department   of Environment;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program for Adequacy and Qualification of the   Social Services to the Strategy to Transform Brumadinho: Project for the   Adequacy and Qualification of Health Care Units and CRAS/CREAS/PAECs;   Education Units Restructuring Project; Health Information, Accessibility and   Monitoring Project; Social Services Mobility Project;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program to Strengthen Support Networks for   Vulnerable Social Segments: Intimacy Networks Project; Collaborative Networks   of Employment and Income Project focused on Family Production; Youth   Entrepreneurship Incentive Project;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program for Qualification of Psychosocial   Practices: Public Psychodrama Project; Theme Workshops Project; Continued   Education Project;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program to Support Qualification of Social   Coexistence and Community Strengthening: Project for Revitalizing/Boosting   Dwellers or Community Associations of Brumadinho; Project Construction and   Renovation of Soccer Fields; Project for Promotion of Sports Culture;
    

 

49

 

	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Traditional Communities and their Cultural   Events Program: Project for Strengthening of the Organizational Capacities of   Communities; Project for Creation of Communication Channels; Education and   Life Project; Project for Leisure and Tourism at Traditional Communities;   Craftsmanship Expansion Project; Intangible Heritage Strengthening Project
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program for Strengthening of Culture, Cultural   Spaces, and Audience Education: Tangible and Intangible Heritage Project;   Project for Restructuring the Heritage and Cultural Management Conditions;   Project for Restructuring and Occupation of Cultural Spaces and Equipment;   Public Education for Culture Project; Brumadinho’s Memory Archive Project.
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Social Innovation Incentive Program:   Non-reimbursable Funds Project; Reimbursable Funds Project;
    
	
 
    	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Paraopeba River Program: Project for Leisure and Living   Spaces on the Urban Banks of the Paraopeba River; Project for Survey of the   Historical Uses of the Paraopeba River; Project for Reclaiming and   Requalification of the Toca de Cima Waterfall Surroundings;
    
	
 
    	
 
    	
MACRO STRATEGY: INTELLIGENT TERRITORY GOVERNANCE   AND SOCIAL INNOVATION - Municipal Government Infrastructure Adequacy Program:   Infrastructure and Tangible Resources Diagnosis Project; Project for   Acquisition of Equipment and Tangible Resources; Project for Adequacy of the   City Hall’s Facilities; Sustainable City Hall Project; Project for   Structuring the Development, Application, and Technological Support Area;   Project for Survey and Assessment of Available and Necessary Technological   Resources and their Use;
    
	
 
    	
 
    	
MACRO STRATEGY: COEXISTENCE WITH MINING   DEPENDENCE AND TRANSITION TO A NEW ECONOMY - Program for Internalization of   Public Outlays; Program for Internalization of Public Outlays;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Program for School Infrastructure Adequacy to   Transformation Strategy of Brumadinho: Project for Qualification of Existing   Spaces and Construction of New Spaces; Operation Structuring Project; Space Use   Enhancement Project;
    
	
 
    	
 
    	
MACRO STRATEGY: QUALITY OF LIFE AND FIGHTING   SOCIO SPATIAL VULNERABILITIES - Gender Impacts Program: Mobility and Time   Uses Project; Safe City Project; Women-Friendly Transition Project; Women’s   Entrepreneurship Incentive Project; Women and Other Economies Project;
    
	
 
    	
 
    	
MACRO STRATEGY: WATER RESOURCES MANAGEMENT AND   WATER FOR ALL - Program to Support Irrigated Crops and the Perpetuation of   Surface Springs: Barraginhas System Project; Training for Barraginhas Social   Technology
    

 

50

 

SCHEDULE II - SOCIO-ENVIRONMENTAL REDRESS PROGRAM

 

	
Schedule II.1 -   Socio-environmental Recovery
    
	
 
    
	
Not subject to financial cap,   previously established.
    
	
 
    
	
Program Mode
    	
 
    	
Projects
    
	
Vale’s Obligation to Do
    	
 
    	
Socio-Environmental Remediation Plan for the   Paraopeba River Basin, to be prepared by a company retained by Vale and   approved by the Government.
    

 

Basic and exemplary macro indicators of the socio-environmental remediation and guidelines for achievement of the specific indicators that must be followed as provided for in the settlement, including in clause 2.3, defined and assessed within the Socio-Environmental Remediation Plan for the Paraopeba River Basin:

 

1.              B_1 to the junction of the Ferro-Carvão creek with the Paraopeba river:

 

a.              Tailings removal:

 

i.                  Indicators - topography and bathymetry prior to the collapse of the dams vs. topography and bathymetry after the complete removal of the tailings, also considering the volumes added in the stain due to the erosive effect caused by the passage of the tailings wave, geochemical characterization, including dating of soil and/or sediment cores (when necessary) proving the efficiency of the measure.

 

b.              Tailings containment and handling structures:

 

i.                  Decommissioning of all structures built to contain and handle the tailings and implementation of the PRAD;

 

ii.               Decommissioning of the structures at Laginha/Iracema Farms and implementation of PRAD for the sites;

 

iii.            Indicators - original topography vs. topography after decommissioning and PRAD implementation completed.

 

c.               Surface water, groundwater and sediment quality;

 

i.                  Return to the conditions before collapse of B-I, B-IV and B-IVA Dams, according to the applicable standards and available history in relation to the aspects impacted by the collapse, detailed in the final version in the Environmental Reclaiming Plan (Arcadis Plan);

 

51

 

ii.               In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, sediment and soil cores.

 

d.              Air quality:

 

i.                  Return to the conditions before collapse of B-I, B-IV and B-IVA Dams, according to the applicable standards and available history in relation to the aspects impacted by the collapse, detailed in the final version in the Environmental Reclaiming Plan (Arcadis Plan);

 

e.               Fauna and Flora:

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams and available history in relation to the aspects impacted by the collapse, detailed in the final version in the Environmental Reclaiming Plan (Arcadis Plan);

 

1.              Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

2.              Bees;

 

3.              Vector control;

 

4.              Flora.

 

ii.               Indicators - diversity and species richness, density of species, no presence of contaminants directly or indirectly related to the collapse.

 

f.                Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation, fishing and landscaping, observing the condition prior to the collapse;

 

g.               Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law;

 

h.              Reclaim any areas impacted by tailings and/or emergency works and/or decommissioning works of structures and/or by the environmental reclaiming works, according to legal standards, criteria and objectives in specific plans approved by the environmental agency;

 

i.                  Mitigation of all impacts, technically possible and feasible, caused in the territory by the temporary floating population associated with the works and interventions in the territory;

 

j.                 Improved of the urban Adequacy in the territory, due to the impact caused by the collapse of B-I, B-IV and B-IVA Dams, the subsequent tailings containment and handling works, the

 

52

 

decommissioning works of the tailings containment and handling structures, and finally, the works for the implementation of the municipal park;

 

k.              j. Minimization of flood areas, risk of landslides in the territory, in relation to the negative impacts that directly result from the dam collapse.

 

l.                  k. Mitigation of environmental impacts from the interaction of vehicles used in the tailings containment and handling works, by the decommissioning works of the tailings containment and handling structures, and finally, by the municipal park implementation works;

 

2.              Junction of Ferro-Carvão creek to Juatuba:

 

a.              Full removal of the tailings or on site containment of tailings:

 

i.                  Indicators - bathymetry data, Intra and Extra flume cores, and solid discharge.

 

b.              For the possible use of containment structures on site:

 

i.                  Use environmentally adequate solutions, easily integrated with the environment;

 

ii.               Indicators - as built projects of all structures built by VALE as a result of compliance with the Settlement.

 

c.               Surface water, groundwater and sediment quality;

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to applicable standards and available history;

 

ii.               In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, intra and extra channel sediment and soil cores.

 

d.              Fauna and Flora:

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to available data detailed in the final version included in the Environmental Reclaiming Plan (Arcadis Plan);

 

1.              Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

2.              Bees;

 

3.              Vector control;

 

4.              Flora.

 

ii.               Indicators - species diversity and richness, species density, absence of contaminants.

 

53

 

e.               Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation and fishing;

 

f.                Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law;

 

g.               Reclaim any areas impacted by tailings and/or emergency works and/or decommissioning works of structures and/or by the environmental reclaiming works, according to legal standards, criteria and objectives in specific plans approved by the environmental agency;

 

h.              Mitigation of all impacts, technically possible and feasible, caused in the territory by the temporary floating population associated with the works and interventions on site.

 

3.              Juatuba to the Retiro Baixo reservoir:

 

a.              Full removal of the tailings or on site containment of tailings:

 

i.                  Indicators - bathymetry data, Intra and Extra flume cores, and solid discharge.

 

b.              For the possible use of containment structures on site:

 

i.                  Use environmentally adequate solutions, easily integrated with the environment;

 

ii.               Indicators - as built projects of all structures built by VALE as a result of compliance with the Settlement.

 

c.               Surface water, groundwater and sediment quality;

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to applicable standards and available history;

 

ii.               In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, intra and extra channel sediment and soil cores.

 

d.              Fauna and Flora:

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to available history, detailed in the final version included in the Environmental Reclaiming Plan (Arcadis Plan);

 

1.              Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

2.              Bees;

 

54

 

3.              Vector control;

 

4.              Flora.

 

ii.               Indicators - species diversity and richness, species density, no presence of contaminants.

 

e.               Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation and fishing;

 

f.                Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law;

 

g.               Reclaim any areas impacted by tailings and/or emergency works and/or decommissioning works of structures and/or by the environmental reclaiming works, according to legal standards, criteria and objectives in specific plans approved by the environmental agency;

 

h.              Mitigation of all impacts, technically possible and feasible, caused in the territory by the temporary floating population associated with the works and interventions in the territory.

 

4.              Retiro de Baixo Reservoir:

 

a.              Surface water, groundwater and sediment quality;

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to applicable standards and available history;

 

ii.               In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, intra and extra channel sediment and soil cores.

 

b.              Fauna and Flora:

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to available history, detailed in the final version included in the Environmental Reclaiming Plan (Arcadis Plan);

 

1.              Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

2.              Bees;

 

3.              Vector control;

 

4.              Flora.

 

ii.               Indicators - species diversity and richness, species density, no presence of contaminants.

 

55

 

c.               Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation and fishing;

 

d.              Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law;

 

e.               Reclaim any areas impacted by tailings and/or emergency works and/or decommissioning works of structures and/or by the environmental reclaiming works, according to legal standards, criteria and objectives in specific plans approved by the environmental agency;

 

f.                Technically possible and feasible mitigation of all impacts caused in the territory by the temporary floating population associated with the works and interventions in the territory;

 

5.              Stretch between UHE Retiro Baixo and UHE Três Marias:

 

a.              Surface water, groundwater and sediment quality;

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to applicable standards and available history;

 

ii.               In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, intra and extra channel sediment and soil cores.

 

b.              Fauna and Flora:

 

i.                  Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to available history, detailed in the final version included in the Environmental Reclaiming Plan (Arcadis Plan);

 

1.              Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

2.              Bees;

 

3.              Vector control;

 

4.              Flora.

 

ii.               Indicators - species diversity and richness, species density, no presence of contaminants.

 

c.               Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation and fishing;

 

56

 

d.              Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law;

 

e.               Reclaim any areas impacted by tailings and/or emergency works and/or decommissioning works of structures and/or by the environmental reclaiming works, according to legal standards, criteria and objectives in specific plans approved by the environmental agency;

 

f.                Technically possible and feasible mitigation of all impacts caused in the territory by the temporary floating population associated with the works and interventions in the territory;

 

57

 

Três Marias Reservoir:

 

Surface water, groundwater and sediment quality;

 

Return to the condition before collapse of B-I, B-IV and B-IVA Dams, according to available history;

 

In relation to the Human Health Risk Assessment and Ecological Risk Assessment, indicate the contaminated areas, the areas with human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas. Indicators - surface water monitoring, groundwater monitoring, intra and extra channel sediment and soil cores.

 

Fauna and Flora:

 

Return to the condition before B_I Dam collapse, according to available history:

 

Ichthyofauna, Avifauna, Small Mammals, Medium and Large Mammals, Herpetofauna;

 

Bees;

 

Vector control;

 

Flora.

 

Indicators - species diversity, species density, no presence of contaminants related to the collapse.

 

Carrying out or funding the actions contained in the remediation plan and commitments made by VALE, seeking to promote regional tourism activities involving the ethnic aspects, natural heritage, family farming history, and the use of water for recreation and fishing;

 

Detailed mapping for identification and characterization of archeological sites at sites where works and interventions linked to the fulfillment of the Settlement will be performed as set forth in the governing law,

 

Reclaiming of any area impacted by the tailings;

 

Technically possible and feasible mitigation of all impacts caused in the territory by the temporary floating population associated with the works and interventions in the territory;

 

Cava de Feijão:

 

No contamination of the groundwater table as a result of the use of the Cava de Feijão to receive the tailings excavated from the region between B-1 dam and the junction of the Ferro-Carvão creek with the Paraopeba river. It should be noted that all historical data available for this assessment and impacts related to VALE’s activity will be considered;

 

Indicators - groundwater quality monitoring, comparison with background areas, comparison with data before the start of disposal.

 

58

 

On identification of contamination, conduct studies of contaminated area management, indicating the contaminated areas, the areas with risk to human health and ecological risk, and the respective intervention/remediation measures - Reclaiming of contaminated areas.

 

Socio-environmental remediation of the areas for which the human health risk and ecological risk assessment studies indicate contamination and/or risk. For possible cases in which it is not possible to implement remediation measures, economic and physical relocation of the affected communities.

 

The macro indicators and other references of this nature provided for in this schedule shall always be applied in accordance with applicable Brazilian legal rules and technical standards, such as, but not limited to, the ABNT standards and regulations in force.

 

59

 

	
Schedule   II.2 - Socio environmental compensation for already known damage
    
	
 
    
	
Amount: BRL   1,550,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Reference list of projects
    
	
Obligation to Do - Projects subject to technical   and financial feasibility assessments, subject to the cap in the Schedule.
    	
 
    	
Disease Control on Dogs and Cats - Zoonosis   control
    
	
 
    	
Structuring of the Conservation Unit in   Brumadinho and Serra do Rola Moça State Park Management
    
	
 
    	
Strengthening of the Environmental Regularization   and Reclaiming Program for water recharge areas
    
	
 
    	
Implementation of a Reception Center, selection,   transitional shelter, castration and referral of domestic animals for   adoption
    
	
 
    	
Implementation of the Somos Todos Água Program - Revitalization of Priority   Areas
    
	
 
    	
Implementation of water resources management   tools in the Paraopeba river basin
    
	
 
    	
Red lists - Preparation of lists of threatened   flora and fauna species in Minas Gerais
    
	
 
    	
Payment for environmental services to reclaim or   restore native vegetation cover areas in the Paraopeba River Basin
    
	
 
    	
State government action plan for the conservation   of the São Francisco Basin Ichthyofauna
    
	
 
    	
Universal basic sanitation in impacted   municipalities - Modeling and Basic Project
    
	
 
    	
Universal Basic Sanitation in impacted   municipalities - Works
    
	
 
    	
Fisheries zoning for the Minas Gerais portion of   the São Francisco River Basin
    

 

60

 

	
SCHEDULE   II.3 - WATER SECURITY PROJECTS
    
	
 
    
	
Amount: BRL   2,050,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Projects
    
	
 Vale’s Obligation to Pay - Projects   subject to technical and financial feasibility assessments, subject to the   cap in the Schedule.
    	
 
    	
Interventions and Works to be performed under the   responsibility and ownership of the State of Minas Gerais, to increase the   resilience of the Paraopeba and Rio das Velhas Basins and thus ensure the   water supply to the Metropolitan Region of Belo Horizonte - RMBH.
    

 

	
SCHEDULE   III - MOBILITY PROGRAM
    
	
 
    
	
Amount: BRL   4,950,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Indicative list of projects
    
	
Vale’s Obligation to Pay - Projects subject to   technical and financial feasibility assessments, subject to the cap in the   Schedule.
    	
 
    	
Recovery of paved roads in poor condition,   according to technical evaluation of the Transit Authority of Minas Gerais -   DER-MG, completion of the structuring logistics corridor according to   technical criteria of SEINFRA.
    
	
 
    	
Implementation of the Beltway of Belo Horizonte   Metropolitan Region
    
	
 
    	
Supplementation of the federal funds to RMBH   Subway
    
	
 
    	
Construction of bridges in São Francisco, Manga   and São Romão, over the São Francisco River.
    

 

61

 

	
SCHEDULE   IV - PUBLIC SERVICE STRENGTHENING PROGRAM
    
	
 
    
	
Amount: BRL   3,650,000,000.00
    
	
 
    	
 
    	
 
    
	
Type of obligation
    	
 
    	
Indicative list of projects
    
	
Vale’s Obligation to Pay - Projects subject to   technical and financial feasibility assessments, subject to the cap in the   Schedule.
    	
 
    	
Preparation of a Water Safety Metropolitan Plan   for the Metropolitan Region of Belo Horizonte
    
	
 
    	
Logistics, technological, and collection   restructuring of AGE’s overdue debts
    
	
 
    	
Update of the Directive Plan for Integrated   Development of the Metropolitan Region of Belo Horizonte - PDDI-RMBH
    
	
 
    	
Preparation of a Water Safety Metropolitan Plan   for the Metropolitan Region of Vale do Aço
    
	
 
    	
Implementation of ARSAE-MG’s Regulatory   Information System
    
	
 
    	
Performance of engineering works and services in   several CBMMG units
    
	
 
    	
Implementation of CBMMG’s critical communication   system for monitoring risk areas
    
	
 
    	
Installation of kennels in CBMMG’s Operational   Units
    
	
 
    	
Restructuring of CBMMG’s Information Technologies
    
	
 
    	
CBMMG fleet renewal, logistics modernization and   replacement of materials
    
	
 
    	
Expansion and strengthening of the Military Fire   Brigade Academy
    
	
 
    	
Southeast Corridor - Interconnection of public   transport between the affected municipalities and the RMBH Subway Network (or   alternative railroad that proves feasible)
    
	
 
    	
Preparation of road projects - Brumadinho-Mário   Campos-BR381
    
	
 
    	
Preparation of road projects - Small bridges
    
	
 
    	
Performance of road works - Caeté - Barão de   Cocais and Barão de Cocais Bypass
    
	
 
    	
Restructuring of FHEMIG Network Hospitals   (Hospital Infantil João Paulo II, Hospital João XXIII, Hospital Júlia   Kubitschek)
    
	
 
    	
Acquisition of supply tank trucks
    
	
 
    	
Capacity building through distance learning, in   Civil Defense
    
	
 
    	
Coexistence with Droughts - Construction of   cisterns
    
	
 
    	
Structuring and strengthening of the Civil   Defense School
    
	
 
    	
Georeferencing of protected cultural assets
    
	
 
    	
Strengthening of Instituto Mineiro de   Agropecuária’s structure and processes
    
	
 
    	
Implementation of the Process Management System   (BPMS) at Instituto Mineiro de Agropecuária (IMA)
    
	
 
    	
Restructuring of the agriculture and cattle   raising chemistry laboratory at Instituto Mineiro de Agropecuária
    
	
 
    	
Revitalization of the Bolivar de Andrade   Exhibition Park
    
	
 
    	
Implementation of Ombudsman 4.0 and Mobile   Ombudsman
    
	
 
    	
Construction of the Police Station of Nova Lima
    

 

62

 

	
 
    	
 
    	
Construction of the Integrated Forensics Center   of the Civil Police of Minas Gerais
    
	
 
    	
 
    	
Operational structuring of the Civil Police of   Minas Gerais
    
	
 
    	
 
    	
Modernization of the civil and criminal   identification - Digitization of the fingerprint records and name cards   collection
    
	
 
    	
 
    	
Modernization of the aircraft of the Civil Police   of the State of Minas Gerais
    
	
 
    	
 
    	
Project ABIS - Automated Biometric Identification   System
    
	
 
    	
 
    	
Expansion of the coverage capacity of the aerial   network of the Military Police of Minas Gerais
    
	
 
    	
 
    	
Expansion of the digital radio network in the   hinterland of State of Minas Gerais
    
	
 
    	
 
    	
Strengthening of the covert activities of the   Minas Gerais Military Police - Acquisition of motorcycles for the ROTAM   Battalion
    
	
 
    	
 
    	
Strengthening of the military health care
    
	
 
    	
 
    	
Individual police and Minas Gerais citizen   protection
    
	
 
    	
 
    	
Rural and Risk Areas Security
    
	
 
    	
 
    	
Agriculture and Cattle Raising Chain Development   Plan
    
	
 
    	
 
    	
Strengthening of tourism competitiveness in Minas   Gerais
    
	
 
    	
 
    	
Surveys, Trends and Monitoring of Culture and   Tourism
    
	
 
    	
 
    	
Minas Gerais Integrated Tourism Development Plan
    
	
 
    	
 
    	
Preparation of management tools for sustainable   and competitive mining development - Strategic Environmental Assessment
    
	
 
    	
 
    	
Elaboration of management tools for the   development of sustainable and competitive mining - Preparation of the Minas   Gerais State Mining Plan
    
	
 
    	
 
    	
Gas pipeline - Paraopeba Basin trunk line
    
	
 
    	
 
    	
Improvement of the infrastructure of   municipalities through completion of ongoing agreements
    
	
 
    	
 
    	
Flood Prevention - Construction of Containment   Basins on Ferrugem Stream
    
	
 
    	
 
    	
Flood Prevention - Expropriation for construction   of containment basins on the Riacho das Pedras stream
    
	
 
    	
 
    	
Revision and updating of   the PELT - Plano Estratégico de Logística de Transportes de Minas Gerais   (Minas Gerais’ Strategic Transportation Logistics Plan)
    
	
 
    	
 
    	
Social reintegration and humanization of the   prison system
    
	
 
    	
 
    	
Expansion of state-owned gas stations
    
	
 
    	
 
    	
Capacity building of municipal managers
    
	
 
    	
 
    	
Structuring of the Environmental Museum
    
	
 
    	
 
    	
Improvement in the logistics and energy structure   of Cidade Administrativa
    
	
 
    	
 
    	
Completion of works and equipping of Regional   Hospitals
    
	
 
    	
 
    	
Technical and financial feasibility study and   management model and Implementation of the Minas Gerais Center for Disease   Control and Health Surveillance
    
	
 
    	
 
    	
Fire Prevention and Fighting Actions in State   Conservation Units
    

 

63

 

	
 
    	
 
    	
Release areas under the Wild Animal Release Areas   Project - ASAS
    
	
 
    	
 
    	
Consolidation of the conservation units in the   state of Minas Gerais
    
	
 
    	
 
    	
Construction and/or maintenance of Screening and   Reclaiming Centers for Wild Animals in the state of Minas Gerais
    
	
 
    	
 
    	
Technical consulting on the de-characterization   of I and II dams of Mundo Mineração Ltda.
    
	
 
    	
 
    	
Strengthening of the inspection structure of the   State Environmental System
    
	
 
    	
 
    	
Implementation of the software plant to build the   environmental governance system
    
	
 
    	
 
    	
Maintenance of conservationist nursery and   breeding grounds
    
	
 
    	
 
    	
Actions to deal with COVID-19
    
	
 
    	
 
    	
Strengthening and technological restructuring of   the State Comptroller General
    

 

64

 

SCHEDULE V - LEGAL INSTRUMENTS OF SETTLEMENTS RELATED TO THE COLLAPSE

 

BRUMADINHO

 

Pará de Minas TAC: signed on 03/15/19 and ratified on 04/04/19.

 

Subject Matter: Until construction, completion and full operation of the pipeline, it will perform the raw water catchment and supply at the junctions of Moreira and Cova Danta streams and storage in the nearby lagoon (sand box), through the implementation of a dam, installation of machinery sufficient to catch up to 96 liters per second and the interconnection of the catchment to the pipeline owned by the CONCESSIONAIRE. Also as a mitigating solution, it undertakes to supply drinking water to the population of the Municipality of Pará de Minas. It also undertakes to drill sufficient artesian wells within 60 days, to ensure a new water availability of at least 25 liters per second and within 90 days, wells that ensure at least 50 liters per second. Provide and bear the costs to obtain authorizations, licenses, easements, expropriations, and grants needed to carry out the works.

 

COPASA TAC: signed on 07/08/19 and ratified on 08/06/19.

 

Subject Matter: “Funding of audit services to provide information to the parties and competent State agencies, regarding the re-establishment of water catchment by COPASA, which was impacted by the collapse, restoring the water supply to the pre-collapse condition.” Carry out all action plans to remedy the impacts of the collapse on the water catchment of Belo Horizonte Metropolitan Region - RMBH and other impacted municipalities, and to protect the integrity of the RMBH water supply system in view of the risk of collapse of other VALE structures and dams along the Rio das Velhas. Perform all emergency measures needed to remedy the impacts caused by the collapse in the water catchment of the RMBH and all other impacted municipalities, restoring it to the previous conditions, and to carry out all emergency measures necessary to minimize the impacts of any shortage of treated water supply in RMBH and other impacted municipalities, upon proof based on AECOM’s technical assessment that the lack of supply results from the collapse.  Build at its own expenses a new water catchment point on Paraopeba River assigned by AECOM, 12 km upstream from COPASA’s water catchment point to the Rio Manso water treatment plant, upstream from the collapse point, and other operational units necessary to carry the water, completing the works by September 30, 2020. “Implement the works already agreed upon by the parties, for installation of cofferdam floodgates to protect COPASA’s catchment and substation on Rio das Velhas. “ Prepare engineering projects and the necessary studies for the implementation of a supplementary treatment system to be installed in the water treatment plant operated by COPASA in Rio das Velhas, to enable water treatment in this river in case of a hypothetical collapse of a tailings dam upstream the water treatment plant. Fund the acquisition and transfer to COPASA of an area where the new  water catchment will be built, as well as all other operational units needed to convey water to the Rio Manso treatment station. Contract or supply products and/or services necessary and technically adequate for the performance

 

65

 

by COPASA, the STATE OF MINAS GERAIS, their acting agencies and indirect administration, of the works and measures listed in the Agreement.

 

Psychosocial TAC: signed on 01/18/19 and ratified on 08/20/19.

 

Subject Matter: Transfer the amount of BRL 2,636,522.79 to the Municipality of Brumadinho, to fund the temporary hiring of workers for a period of six months.  Acquire and deliver the equipment and supplies described in Schedule II of the Agreement to the Municipality of Brumadinho, as well as provide the leasing of 20 vehicles to transport the health and psychosocial teams, and real estate to house the emergency health and psychosocial care. Retain under its full responsibility, one of the following companies for independent external auditing: Ernst & Young, KPMG, Deloitte, and Pricewaterhouse Coopers (PwC).

 

Amendment to the Psychosocial TAC: signed on 07/29/19 and ratified on 08/20/19.

 

Subject Matter: Transfer the amount of BRL 25,484,436.50 to the Municipality of Brumadinho, to fund the temporary hiring of workers, as well as the compensation of the already hired personnel.  Transfer the amount of BRL 622,420.37 to the Municipality of Brumadinho. Transfer the amount of BRL 49,933.90 to improve the services provided by the NUPIC in the municipality of Brumadinho. To transfer the amount of BRL 4,152,099.76 to meet the held up demands from the Health Department of the Municipality of Brumadinho. Acquire and transfer to the Municipality of Brumadinho a surgical table for the Polyclinic block. Acquire and deliver the equipment and supplies described in Schedule V of the Amendment to the Municipality of Brumadinho.

 

Amendment to the COPASA TAC: signed on 10/21/19 and ratified on 10/24/19.

 

Subject Matter: implement (equip, energize, interconnect, treat, and fund the operation) an estimated 50 deep wells to serve 40 essential customers located in the SBP and SRV, as listed in SCHEDULE II, with an estimated volume for full service of those places of 80 ml/day of water. Bear all costs related to the operation of the wells, including for engagement of the selected company.

 

Water Management TAC: signed on 11/13/19 and ratified on 11/21/19.

 

Subject Matter: Funding of the independent technical and environmental audit to assess and ensure the reliability of (i) the monitoring plan for surface water and sediment quality in the Paraopeba and São Francisco river basin; (ii) plan for surface water quality monitoring; (iii) drinking water distribution program for the population affected by the collapse; (iv) sediment transport studies, to be carried out by VALE; and (v) program to transfer the management of the monitoring and data generated to IGAM.  Perform and fund all plans, programs and studies described above.

 

Water Resilience Commitment Agreement: signed on 02/07/20 and ratified on 02/13/20.

 

Subject Matter: Carry out technical and environmental feasibility assessment of structuring interventions (new run-of-river catchment, supply and reservation in Ribeirão da Prata, in the

 

66

 

region called Ponte de Arame do Rio das Velhas - 2,000 L/s, in Ribeirão Macaúbas - 2,500 L/s; expansion of the Manso River System - 9,000 L/s; Transfer pipeline between the Paraopeba Basin and Rio das Velhas Systems - 3,200 L/s), to ensure that RMBH’s current hydric demand corresponding to 15,000 L/s, is met. Carry out and fund all assessments, analyses, and measures required to fulfill the Agreement, including contracting or supplying products and/or services, as well as reimbursing the expenses incurred. Prepare basic engineering projects of the structuring interventions selected based on criteria set in the Feasibility Assessments, to ensure that the RMBH’s current hydric demand corresponding to 15,000 L/s, is met.

 

Federal Government TAC: signed on 03/13/19 and ratified on 03/15/19 (extension occurred on 04/13/20).

 

Subject Matter: Contracting and funding of a laboratory to analyze samples to be collected from alternative collective and individual water supply solutions, whose catchments from underground springs are located up to 100 meters from the banks of the Paraopeba River in the municipalities along the stretch that may have been impacted by the event.

 

Hearing held on 06/19/19 (João Monlevade): signed and ratified on 06/19/19.

 

Subject Matter: Project to survey the costs to install an alternative water catchment system (installation of new catchment points at Ribeirão D’Carmo and Ribeirão Bexiga).

 

Civil Defense TAC: signed on 11/20/20. Pending ratification.

 

Subject Matter: Acquisition and transfer by VALE of assets to the Civil Defense of Minas Gerais, to integrate a set of compensatory actions for the benefit of the State of Minas Gerais.

 

Fire Department TAC: signed on 11/17/2020. Pending ratification.

 

Subject Matter: Acquisition and transfer by VALE of assets to the Fire Department of Minas Gerais, to integrate a set of compensatory actions for the benefit of the State of Minas Gerais.

 

Settlement in Lieu of Environmental Penalty: signed on 07/11/19 and ratified on 03/27/20.

 

Subject Matter: Contract the INCT Diagnostic and Proposition Plan within 30 days as from signature of the Instrument.  After completion of said Plan, the parties will establish upon mutual agreement within 120 days, an Executive Project providing for the specific measures to be implemented, as well as the conditions and deadlines for such implementation - always subject, in any event, to the maximum assigned amount, corresponding to BRL 54,391,445.00.  Allocate the required funds to implement the projects, works and initiatives provided for in item (i) of Clause One and perform, by itself or third parties, the measures of socio environmental nature to be established in the Executive Project, according to the terms, deadlines and conditions thereunder, in any event subject to the joint cap amount of BRL 108,782,890.00. Regarding the projects and measures to be carried out or implemented under the Instrument, whenever VALE is responsible for performing them by itself or by a third party,

 

67

 

it shall forward to the Municipality (i) weekly Monitoring and Follow-up Reports, until the final implementation of these projects and measures; and (ii) Account-Rendering Report.

 

Settlement in Lieu of Environmental Fine - IBAMA: signed on 07/06/20 and ratified on 08/27/20.

 

Subject Matter: Make a deposit into court of BRL 250 million. Invest up to BRL 150 million in the National Parks of Serra da Canastra, Caparaó, Serra do Cipó, Serra do Gandarela, Cavernas do Peruaçu, Grande Sertão Veredas and Sempre-Vivas, all of them in the State of Minas Gerais, enabling the strengthening of these conservation units and increase of ecotourism activity through works (infrastructure, renovation or implementation), fencing and signaling, strengthening and supporting management plans, handling plans whenever they are absent or outdated, fir, when absent or outdated, firefighting, trail demarcation and adaptation. The investment will be made according to the Program to be submitted by Vale within six (6) months from the final and unappealable decision of the court ratification provided for herein. The Program is subject to assessment by ICMBio within fifteen (15) days after receipt thereof, and after approval, within fifteen (15) by the Monitoring Group provided for in the Instrument.  Send to IBAMA, ICMBio, and the Ministry of the Environment, on a semi-annual basis, (i) monitoring and follow-up reports, detailing the physical and financial execution until the final implementation of these projects and measures; and (ii) Account-Rendering Report. The projects approved thereunder shall be promoted or implemented by Vale within no more than 36 months as from the date of their approvals, extension allowed in case of grounded needs.

 

AECOM TAC: signed on 02/15/19 and ratified on 04/04/19.

 

Subject Matter: Contracting of AECOM for independent technical and environmental audit services to check the safety and stability of the remaining structures at Paraopeba II Complex - Córrego do Feijão Mine, as well as all other structures that may be built to promote the containment of tailings that leaked from the collapsed dams; as well as check the effectiveness of the reinforcement measures being adopted by VALE on the remaining structures - Note: As to this TAC there is a partial novation, limited to the environmental aspect comprised in this settlement. In the event AECOM is not to retained auditor under this new settlement, AECOM’s scope in the TAC dated 02/15/2019 may be reduced.

 

68

 

SCHEDULE VI - LEGAL INSTRUMENTS RE-RATIFIED, NOVATED OR DISMISSED BY THIS SETTLEMENT

 

VI.1 - Re-ratified

 

Settlement Agreement for Temporary Hiring: signed on 02/28/20 and ratified on 03/19/20.

 

Subject Matter: Transfer of the amounts, for 24 months as from publication of the aforementioned notices of the simplified processes, for each of the open positions that will be filled by temporary public agents by the State of Minas Gerais, FHEMIG, IMA, FUNED, IGAM, IEF, FEAM, DER, IEPHA, EMATER, and EPAMIG, as well as for outsourced employees. Funding of the charges, increments, and other advantages that may be due to the hired public agents. It will be subject to recourse for any sums owed by the state, independent governmental agencies or foundations, by EPAMIG and EMATER.

 

VI.2 Novated

 

IGAM Commitment Agreement:  signed on 11/13/19 and ratified on 11/21/19.

 

Subject Matter: Provision by AECOM do Brasil of independent technical and environmental audit services to the Prosecution Office of Minas Gerais (MPMG) and competent state agencies to assess and ensure reliability: (i) of the monitoring plan for surface water and sediment quality in the Paraopeba and São Francisco river basin; (ii) plan for surface water quality monitoring; (iii) drinking water distribution program for the population affected by the Collapse, currently carried out by Vale; and (v) the program to transfer the management of the monitoring and data generated to the Minas Gerais Water Management Institute - IGAM, to be funded by Vale.

 

VI.3 - Dismissed

 

General Fauna TAC: signed on 09/23/19 and ratified on 10/11/19.

 

Subject Matter: Preparation/updating of emergency response plans focused on wildlife issues for all structures, with effectiveness ensured by funding of an independent technical audit.

 

Preliminary Agreement for Emergency Payment: signed and ratified on 02/20/19.

 

Subject Matter: Monthly payments to all people who up to the date of the dam collapse, were fully registered with the Electoral Court, the Municipal and State Departments of Agriculture, CRAS or SUAS in the localities of Brumadinho and also in the communities within 1km of the Paraopeba riverbed from Brumadinho and other municipalities along the Paraopeba river channel, to the city of Pompeu in the Retiro Baixo reservoir, under the following terms: one minimum wage per adult, half a minimum wage per adolescent, and 1/4 of a minimum wage per child, for a period of one year from the time the dam collapse.

 

69

 

Agreement for Reimbursement and Supply of Emergency Measures to the State of Minas Gerais: signed and ratified 03/07/19.

 

Subject Matter: Contract or supply products and/or services that are necessary and technically adequate for execution by the State, its acting agencies and its Indirect Administration, of the emergency works related to the collapse. Reimburse the State, its acting agencies, and its Indirect Administration for all emergency expenses related to the collapse. Maintain a deposit into court of BRL 500 million, as security.

 

Renewal of the Emergency Payment: signed and ratified on 11/28/19.

 

Subject Matter: Continued emergency payment for a further 10 months starting on January 25, 2020, of one minimum wage per adult, half a minimum wage per adolescent and 1/4 of a minimum wage per child, for the persons who on the date of collapse provenly lived in the communities of Córrego do Feijão, Parque da Cachoeira, Alberto Flores, Cantagalo, Pires and on the banks of Córrego Ferro-Carvão. Continued emergency payment for a further 10 months as from January 25, 2020, for affected people, including those living in locations other than those mentioned, who are currently participating in the following support programs developed by VALE: housing, social assistance, agriculture and cattle raising, and assistance to local producers. For other persons not included in the above criteria, and are already receiving the emergency payment established at the hearing on 02/20/19, continued payment, also for a further 10 months, as from January 25, 2020, of the amount equivalent to 50% of the previously agreed amounts.

 

70

 

SCHEDULE VII - DISMISSED OR SUSPENDED REQUESTS IN PUBLIC-INTEREST CIVIL ACTIONS

 

	
Public-Interest
   Civil  Action - ACP
    	
 
    	
Petition
    	
 
    	
Request
    	
 
    	
Definition
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.1 - Impose on defendant the emergency measures to be implemented   for
   interruption, mitigation, reclaim and full remediation of socio environmental   and
   socio economic damage caused by the collapse of the dam in
   Córrego do Feijão Mine, in Brumadinho - Minas Gerais; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.15 - Obligation for defendant to pay, within ten (10) days   from the choice 
   by the communities affected by the collapse of the dams, to engage
   entities that will provide independent technical advice to the affected   persons;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.3 - to carry out, at its own expense, the global 
   socio economic recovery approved by the competent agencies, ensuring at   least:
   i. the cleaning and reconstruction of affected settlements, with proper   relocation
   of the affected population; where necessary; ii. reconstruction of roads,   bridges, ducts, basic sanitation equipment and electric transmission lines,   destroyed or damaged by the accident; iii. full social and economic   reactivation of the State of Minas Gerais and the Municipalities affected by the   collapse of the dams; iv. payment of a maintenance allowance to all affected   people until the socio economic and socio environmental conditions and   livelihoods of all people are fully restored. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) Compensation for the damage caused to “Berros II” archeological   site, in an amount not less than three hundred and sixty-one thousand, two   hundred and fifty reais (BRL 361,250.00), as stated in item 4.4.2.II, to be   deposited to the Fund for Natural Rights of the Prosecution Office (FUNEMP),   without prejudice to the measures that may be required by IPHAN.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
5) Granting the request for injunctive relief to the cultural   environment (4.1, item “e” and final requests II and IV),as below: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

71

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
a) Considering that the party that caused the damage cannot be left   with the sole responsibility for diagnosing the extent of its liability, Plaintiffs   and the Amici Curiae request that defendant be ordered to present in court a   full diagnosis of the damage to the cultural environment, mentioning: a) the   methodology for developing the diagnosis, including with regard to the   participation of the population; b) the inclusion of the uncontroversial   damage mentioned in this case record; c) analysis of all other damage already   pointed out by the parties; d) compliance with the attached reports, produced   by the MPMG and the technical advisors and by the State of Minas Gerais,   addressing in the diagnosis all the damage mentioned therein; e) consultation   and approval of all instances of cultural heritage protection according to   competence (municipal councils of cultural heritage, IEPHA, IPHAN,   CECAV etc.); 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) With the insertion in the record, a request is made to submit the   diagnosis to the parties, including advisors, for examination;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) In the event of a controversy, an evaluation of the diagnosis by   the CTC-UFMG is requested, to check its adequacy and sufficiency;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
d) after completion and approval of the diagnosis by all competent   entities, including the parties, the defendant be ordered to prepare, obtain   approval by all competent cultural protection agencies (federal, state and   municipal, according to the protection level of the asset), and submission to   this court of plans for the global recovery of the damage - contemplating the   damage contained in the diagnosis approved by the parties and the court -   with presentation of: (I) program for restoration of the tangible   heritage assets, including archeological and speleological, that can be   restored, according to the request for injunctive relief 4.1, “e”, I,   and final requests II and IV, item “c.1”; (II) program to safeguard the   intangible heritage of all the affected municipalities, according to the   injunctive relief
   4.1, “e”, II and final requests II and IV, item “a”, “b”, “c.1”; (III) program   to reestablish the tourist and landscape heritage, with requalification of   the affected sites, according to injunctive relief 4.1, “e”, III and IV,   and final requests II and final request IV, item “c.1”;   (IV) compensation/indemnity plans for 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

72

 

	
 
    	
 
    	
 
    	
 
    	
damage to the cultural environment irreparable by restoration or   safeguard measures.
    	
 
    	
 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
e) that: e.1) the preparation of the plans and programs, as well as   their performance, be fully monitored by multidisciplinary technical teams,   with Annotation of Technical Responsibility; e.2) include all the damage   listed in the diagnosis (including the damage caused in the second wave,   based on works performed by defendant for the recovery and/or mitigation of   the damage originally caused; and the damage caused to traditional   communities that are not within the territorial limit initially established   for the payment of emergency aid); e.3) respect the legislation in force and   contemplate the adoption of the best available techniques, containing short,   medium, and long term targets and objectives, as well as performed schedules   to be strictly complied with; e.4) be submitted for approval and monitored by   the competent public agencies, with defendant making all the adjustments   required by them, including in relation to execution schedules, and prepare   reports of compliance, on monthly basis or within shorter periods, as   required by the competent agencies; e.5) defendant ensure the social   participation in the adequacy of the prepared plans/programs; e.6) the right   to information be ensured, providing this case record and an electronic media   with all information about the prepared plans/programs, as well as about   their execution, within thirty (30) days. (Requests for Interlocutory Relief   6 and 7); e.7) the plans and programs must take into consideration the information,   surveys, assumptions and recommendations contained in the reports produced by   MPMG and by the Technical Advisors Aedas, Guaicuy and Nacab (attached);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
f) that defendant be ordered to present proof in the case record of   compliance with the measures required above, inserting copies of plans and   programs, together with receipts and resolutions of the competent agencies,   within ten (10) days from the date of the acts;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
h) lastly, that defendant submit evidence of the measures provided for   in the duly approved plans and
   programs, audited by company AECOM and 
   information thereof in the case record; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
11) That defendant be ordered to evidence the actions taken to   mitigate and recover the socio-environmental damage already identified by the   company; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - 
    

 

73

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
CPC, article 487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.2 - to carry out, at its own expense, the global plan of socio   environmental recovery approved by the competent environmental agencies,   ensuring at least: i. the dredging, transportation, treatment and disposal of   sludge sediments discharged into Paraopeba River, its affected affluents,   streaks and tributaries, removing them to an adequate location indicated by   the environmental authorities, as well as the mud deposited on the banks of   the aforementioned water agencies; ii) the restoration of the forests and the   lands on the sides of Paraopeba River,    especially the Permanent Preservation Areas (APP) related to affected   water agencies; iii. the recovery of the flora and fauna of the Paraopeba   River and the entire affected area, reintroducing, based on a technical   project to be submitted to the competent environmental agencies, within   thirty (30) days, native species of the regions affected by the environmental   disaster, giving priority to endemic species at risk of extinction iv. the   promotion of all necessary and sufficient measures for the possible   decontamination of the Paraopeba River, should it be proven that the tailings   were also composed of any toxic substance of any origin (heavy metals,   chemical inputs used by the mining company, or any other substance unfit for   human consumption or harmful to the survival of plants and animals) that were   deposited in the Paraopeba River as a result of the environmental disaster;   v. that defendant, as a measure of compensation for the degradation that   occurred and to speed up the recovery of the Paraopeba River, invest in a   program to improve the Sewage and solid waste Collection and Treatment, until   the level of coverage reaches eighty percent (80%) of the urban population   located on the banks and proximities of the Paraopeba River; vi. the adoption   of a program to recover springs in the Paraopeba River basin, as a way to   harness and facilitate the flow of a larger volume of water in order to   accelerate the recovery of the affected water body; vii. adoption of a program   that ensures alternatives to water catchment in relation to Paraopeba River,   as well as ensures the mitigation of losses in the supply systems, in terms   of technical specifications of the National Water Agency and the state and   municipal water and sewage companies; viii. the adoption, due to the   extermination of the aquatic biodiversity of Paraopeba River, of a technical   and financial 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b.

 

Reservation:   regarding indigenous people, the dismissal will be deemed without prejudice.
    

 

74

 

	
 
    	
 
    	
 
    	
 
    	
support program for Fishermen, Indigenous Peoples, Traditional   Populations and Small Rural Producers, as a means to guarantee subsistence   and income alternatives; ix. the adoption of an environmental education   program that enables the mobilization of the population for a Restoration   Plan of the Paraopeba River, that contemplates the Awareness and Emergency Preparedness   Program at Local Level - APPEL, developed by the United Nations Environment   Program; x. the establishment of a monitoring program, project structuring   and monitoring of the Paraopeba River Environmental Restoration Plan,   ensuring transparency in the application of resources and favoring   institutional and social dialogue with the entities and population involved.   xi. preparation of a program for the safety of the tailings dams, with   presentation of studies, assessment and proposals for the adoption of   measures that guarantee the safety of Defendant’s dams, including the   preparation of specific contingency plans for each unit and as one of the   compensatory measures, the obligation to implement an efficient electronic   control system to be made available and implemented at Defendant’s expense   with technology fit to all existing upstream technology dams in Minas Gerais;   
    	
 
    	
 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
a) OPENING OF A SPECIFIC JUDICIAL ACCOUNT AND JUDICIAL AUTHORIZATION   for
   the State of Minas Gerais to use all frozen funds immediately as described in   the subsequent items, necessary to
   meet the urgent demands of victims, people, animals, municipalities and the   environment affected by the disaster, on any account, and render accounts to 
   this Court of the measures adopted and amounts used, the funding for any   other purposes not connected to the subject of this action prohibited;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
b) ADJUDICATION OF FREEZE of financial assets, via BACENJUD, subject   to the limit equivalent to one billion reais (BRL 1,000,000,000.00),
   existing in any bank accounts of the parent company of VALE S.A, as well as   of those in the list of branches in Schedule I, to comply with item “a”.
   of this petition; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

75

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
c) ADJUDICATION OF FREEZE of all shares held by defendant (and   not  third parties) and traded in the   Stock Exchange Markets of Rio de Janeiro, São Paulo (Dovespa), Madrid   (Latibex), New York Stock Exchange (NYSE) and NYSE Euronext Paris, subject to   the limit equivalent to twenty billion reais (BRL 20,000,000,000.00), by  VALE’s parent company as well as by the   branches listed in the Schedule, with the issuance of the applicable notices,   including through the Ministry of Foreign Affairs: Palácio Itamaraty,   Esplanada dos Ministérios - Bloco H, Brasília/DF - Brazil, CEP 70.170-900, to   comply with item “a” of this petition;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
d) ADJUDICATION OF FREEZE of real estate properties or security   interests in the name of defendants, through the National Center for Freeze   of Assets - eNIB, as authorized by the rule in Article 184 of the   National Tax Code - CTN and Article  4, paragraph 3, of Law 
   8.397/1992, combined with Article 1.024-K, paragraph 8, of   Administrative Act no. 260/13 of the CGJ/TJMG and CNJ Administrative Act  39/2014, with reservations to the   non-freeze set in law, subject to the limit equivalent to twenty billion   reais (BRL 20,000,000,000.00) of the parent company of VALE S.A., as well as   of those in the list of subsidiaries in the Schedule, to 
   comply with item “a” of this petition;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
e) issuance of a freeze order via RENAJUD, determining the freeze of   any automobile ownership records in
   the name of defendants, equivalent to twenty billion reais (BRL   20,000,000,000.00) of VALE S.A.’s parent company, as well as of those in the   list of subsidiaries in Schedule 1, to comply with item “a” of this petition;   
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
f) attachment of the marks VALE S.A. and VALE MANGANÊS at the INPI -   Instituto Nacional de Propriedade lndustrial (Brazilian Patent and Trademark   Office), with issuance of an official letter to that independent governmental   agency to inform of the freeze of the mark until further order from this court,   to comply with item “a” of this petition;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
g) PROVISIONAL ATTACHMENT of ten percent (10%) of the NET SALES,   meaning the gross sales minus state taxes, of VALE S.A.’s parent company, as   well as of the branches in the list in Schedule I, month by month, as set   forth in article 324,
   paragraph 1, 11, and 111 of the CPC, until the amount of effective   compensation for all 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

76

 

	
 
    	
 
    	
 
    	
 
    	
emergency damage caused by the disaster is reached, to comply with   item “a’ of this petition;
    	
 
    	
 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
h) ORGANIZATION of said DICTUM Institute (CNPJ 16.454.61710001-17), to   perform the duty of administrator-depositary, at the defendants’ expense,   pursuant to article 677 and article 655-A, paragraph 3 of the Civil Procedure   Code;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
i) DETERMINATION for the trustee to make a deposit of the judgment   lien amount each month into an interest-bearing judicial account, at the 
   disposal of this court, on the 5th business day of each month (or on another   date to be suggested by the trustee-depositary, each month), rendering   account in this case record until the amount of twenty billion reais is   reached; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.2 - Impose on defendant the obligation to provide all means and   conditions necessary for the full remediation of the socio environmental and   socio economic damage caused by the collapse of the dam of Córrego do   Feijão  Mine in Brumadinho - Minas   Gerais;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.4 - Determine that the amounts spent by defendant to comply with   the
   obligations such as donations, assistive actions or supply of products
   or service cannot be computed, deducted, or offset
   against the amounts to be set as full remediation or compensation for the 
   socio environmental and socio economic damage caused by the collapse of the   dam in 
   Córrego do Feijão Mine, in Brumadinho - Minas Gerais;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.7 - Require defendant to adopt all necessary measures for the   full stanching
   of entrainment of the volume of tailings and sludge that is still leaking
   from the collapsed dams, including to build and operate emergency structures
   for sediment containment and/or on-site treatment systems for water and 
   tailings que leaked with the collapse of the dams of Córrego
   do Feijão Mine, to maximize efficiency of the containment systems and 
   minimize the impact associated with the continued transportation of sediments   to
   Paraopeba river, its affluents or other watercourses.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

77

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.8 - Require defendant to present, within a non-extendable period   of sixty (60) days,
   a tailings handling and removal plan, prepared with extensive knowledge and
   ensuring the participation of the affected people, covering the entire area   affected
   by the material that leaked with the collapse of dams in Córrego do
   Feijão Mine, and to submit it to the competent agencies for analysis, and to   all other
   signatories, for knowledge. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.9 - Require defendant, once the tailings handling plan is   approved, to 
   start the immediate removal of the volume of tailings discharged by the   collapse of the
   dams of Córrego do Feijão Mine, providing the 6th 
   State Tax Court and the Independent Agencies of the Judicial District of Belo
   Horizonte - Minas Gerais and the competent authorities with month report on   the activities and the 
   results obtained. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.12 - Require defendant’s immediate adoption of urgent measures to   prevent tailings from contaminating the spring and water catchment sources,   as well as any other river watercourse; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.13 - Order defendant to provide drinking water to the affected   people
   and appropriate water for all other purposes, until proof that the water is   fit for
   human, animal, and agricultural consumption; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.14 - Require defendant to immediately control the proliferation   of 
   synanthropic species (rats, cockroaches, etc.) and vectors of diseases   transmissible to people
   and animals in the vicinity of residences and communities, by itself or by
   a duly contracted specialized company, presenting proof of the adopted
   measures to the court within five (5) business days; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

78

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.16 - Require defendant to pay for the execution, by an   independent, competent and recognized entity (or entities), of a global plan   for
   socio environmental recovery of the Paraopeba River Basin and the entire
   degraded area, within ninety (90) days, after complying with the   determinations and
   parameters of the competent environmental agencies, with detailed
   description of the actions to be developed, schedule for execution of the 
   respective actions, as well as the disbursement schedule of the respective
   funds for the full execution of the project. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.17 - Require defendant to pay for the performance, by   independent, reputable and capable entity (or entities), of a global

 

socio economic recovery plan for the population affected by the  
   disaster in the STATE OF MINAS GERAIS and the affected MUNICIPALITIES, within   ninety (90) days, according to the determinations and parameters of the
   competent agencies, with a detailed breakdown of the actions to be 
   developed, timeline for the execution of the respective actions, as well as   the
   disbursement schedule of the respective adequate funds for the full execution   of the
   project;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.18 — Require defendant to submit and perform a remediation plan   for the obstructed local thoroughfares, 
   escape routes and transportation means for the 
   local production, including by making transportation available. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.19 - Require defendant to contract or supply products and/or   services necessary for the State of Minas Gerais, its bodies and its Indirect   Administration, to execute the works required in view of the collapse of the   dams in Córrego do Feijão Mine. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.20 - Require defendant, without prejudice to the provisions of   the preceding clause, to reimburse
   the State of Minas Gerais, its bodies and its Indirect Administration
   for all expenses incurred directly or indirectly, or increased by
   the collapse of the dams in Córrego do Feijão Mine 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

79

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.21 - Determine that the payment provided for in item 10.2.20 and   the hiring
   provided for in item 10.2.19 be made immediately by defendant, after direct   demand
   from the Government. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.22 - Order defendant to retain under its full responsibility, 
   consultancy company(ies) for the independent external audit activities, which   will 
   monitor defendant’s activities, both of accounting and 
   financial, and finalist nature according to effectiveness and efficiency   indicators,
   and to publicize the information obtained from the reports produced. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.5 - based on article 324, paragraph 1, items I, II and III   of the Civil Procedure Code, an
   order for defendant to remediate to the fullest extent possible, all   consequences
   resulting from the collapse of the dams, subject matter of the dispute, that   may be identified
   during the progress of the case; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.6 - to reimburse all the expenses that the Government incurred -   and those that
   will certainly arise during the progress of this case - with human resources,   materials,
   services and other expenses that were and may be necessary in view of the   collapse of
   the tailings dam in Feijão Mine, which reimbursement to the 
   public treasury must be made immediately, upon submission of the respective   expense. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.7 - to make monthly payment for a minimum period of thirty-six   (36) months
   to the STATE OF MINAS GERAIS, irrespective of reduced economic activity,
   of the amounts corresponding to the tax collection, at a
   minimum level calculated by the average for the past twelve (12) months that   preceded the 
   collapse of the dams, on account of reconstitution of the tax
   collection, to be awarded by the judge; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

80

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.8 - Thus, defendant must be ordered to implement measures to   reactivate the tourist activity in the entire affected region, with a   request  for a special measure, without   prejudice to other measures, of recovery and reactivation of the  railway between Belo Horizonte — Brumadinho   — Águas Claras - Eldorado, with the provision of passenger trains with space   for luggage, and the building of two stations in two tourist spots in the   Judicial District of Brumadinho, according to the attached map. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.9 - payment of compensation for non-pecuniary damage, in an   amount not less than
   five billion reais (BRL5,000,000,000.00), to be reverted to the State 
   Fund for the Environment. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.4.0 - constitution of a capital provision of ten billion reais (BRL   10,000,000,000.00) at the disposal of the STATE OF MINAS GERAIS, linked to   this Ven.  Court, for full remediation   of the socio environmental and socio economic damage caused, to ensure the   full restoration of the existing environmental and social conditions of the   affected areas before the environmental disaster; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.4 - A daily fine in the amount of one million reais (BRL   1,000,000.00) for non-compliance with any obligation imposed in the decision.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
1) the immediate judgment - by partial decision on the merits - of the   following claims, with an order for defendant to pay: a)   indemnity/compensation for collective moral damages and social damages, in   the amount of twenty-eight billion, fifteen million, six hundred and   sixty-seven thousand, one hundred and fifty-seven reais and forty cents 
   (BRL 28,015,667,157.40);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) Indemnity/compensation for economic damages suffered by the State   of Minas Gerais, by funding the following projects, in the amount of
   BRL 26,680,100,000.00, related to the programs that are duly 
   detailed in the schedule called “Analysis of the effects of the collapse of   Vale S/A’s dams in Brumadinho and its effects in the State of Minas Gerais” -   4. Proposals from the State Government.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
2) The granting of Provisional Remedy to determine the freeze of   accounts held by defendant up to the limit of BRL 26,680,100,000.00,   referring to the socio economic damage suffered by the State of Minas Gerais;   
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

81

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
3) Notification for defendant to present the existing plans to   remediate the damage to the fauna, as alleged in the challenge, so that they   can be assessed by a technical team, to be defined at adversary proceeding;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
4) Dismissal of the dispute in relation to the provisional measures   regarding protection of the fauna, in the following terms: a) Grant of the   requests presented in items 3.1 and 3.2 of the complaint, by recognizing the   validity of the request by the defendant itself, and subsequent dismissal of   the dispute in relation to these topics, according to article 487, item  III, sub-item “a” of the Civil Procedure   Code/2015; b) Ratification of the Preliminary Commitment Agreement signed by   the parties on  April 5, 2017,   with the consequent dismissal of the dispute in relation to items 3.3 and   3.4, on grounds of article 487, item    III, sub-item “b” of the Code of Civil Procedure.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
g) an order for assessment of the plans by CTC-UFMG, to check their   adequacy and sufficiency.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
6) an order for the defendant to prepare a detailed diagnosis of all   environmental damage, including cultural and tourist heritage, housing and   urban planning, caused by the collapse of dams B-I, B-IV and B-IV. A,   ensuring the identification of intercurrent and irreparable damages, as well   as their quantification, for environmental compensation purposes. The   diagnosis in question must meet all the specifications and recommendations   issued by the competent environmental bodies; a) Alternatively, that such diagnosis   be prepared by the Technical Committee of the UFMG, in a consolidated form   based on the 67 calls already issued and on new calls to be issued according   to the requests in this statement, also in a manner allowing the   quantification of intercurrent and irreparable damage and meeting all   specifications and determinations of the applicable environmental bodies; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
8) that defendant be ordered to expressly state in this lawsuit all   the plans/actions it is developing for environmental remediation/   compensation, informing on what account the remediation is intended to be   made. It is requested that all plans/actions be submitted to the technical   audit and the court-appointed expert for review; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

82

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
9) evidentiary expansion regarding the following topics: a) Submission   to the UFMG Technical Committee and/or opening of calls regarding the topics   presented in item 3.1.5 of this petition; b) Expansion of calls 3, 7, 33, 35   and 36, 39, 55 and 60, so that they also contemplate socio economic aspects   of the municipalities in Region 5 (São Gonçalo do Abaeté, Felixlândia, Morada   Nova de Minas, Biquinhas, Paineiras, Martinho Campos, Abaeté, and Três   Marias);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.10 - Order for defendant to pay for the performance, by an   independent entity, of  immediate   mapping of the different resilience potentials, health  and habitability of the affected area,   subject, in the mapping, to the thickness of the slurry cover, the grain   size, and PH of the material, and the possible concentration of heavy metals   and other toxic wastes, in order to prevent damage to health and the   environment in general, including for the construction of a broad scenario   that allows the preparation of a plan to reclaim these areas;
    	
 
    	
Dismissal of the portion related to the Environment and suspension of   the remainder request (related to Health). 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
7) that the CTC-UFMG quantify the irreparable and intercurrent   damages, for purposes of environmental remediation and compensation;
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.6 - Order for defendant to perform full interruption, mitigation,   recovery,
   remediation and redress of socio environmental and socio economic damages
   caused throughout the territory affected by the collapse of the dams in 
   Córrego do Feijão Mine in Brumadinho - Minas Gerais, and provide all means   and 
   conditions required for the full remediation of the socio environmental and 
   socio economic damages caused by the collapse of the dam of Córrego do Feijão   
   Dams in Brumadinho - Minas Gerais, without prejudice to other measures of   greater
   scope due to the disaster.
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    

 

83

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.1 - to restore all the damage caused to the environment,   returning it to
   the previous condition, as determined in the award by the judge (with
   collection of wastes in the affected rivers and areas, as well as other   measures to be 
   verified as necessary for the restoration) and, in the event of
   impossibility to fully reclaim the degraded environment, order defendant to   bear compensatory measures (also to be awarded by the judge), 
   all in accordance with a study to be submitted to the environmental bodies   for approval and subsequent 
   execution by defendant; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3.4 - to indemnify any residual damage, as well as interim damage
   (environmental loss occurred between the date of the environmental damage and   effective recovery
   of the area) and the nonpecuniary damage caused to the collectivity, at an   amount to be
   determined during evidentiary phase or awarded by the judge; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
10) Opening of new calls by the CTC-UFMG on individual moral damage,   damage to private property, right to come and go, socio environmental damage,   access to water, food security, rural production, economic chains,   non-pecuniary damage, health, impacts on public policies, and perpetuations   of violations, encompassing all municipalities and communities that could   already be identified as affected; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.11 - Establish that on identification of conditions that evidence   risk to
   health, lack of habitability or non-compliance with the required sanitary
   conditions, defendant will provide adequate housing, observing the
   specific local aspects and the will of the affected person; 
    	
 
    	
Suspension
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.3 - Impose on defendant the obligation to comply with financing,
   leasing and monthly installments of the obligations undertaken before
   collapse, to which the affected people are liable and unable to
   pay as a result of the collapse of the dam, until restoration of the
   socio economic conditions and way of life of said persons;
    	
 
    	
Maintenance
    

 

84

 

	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2 - Given that between the dates of filing of this interlocutory 
   and the ACP other serious socio environmental and socio economic damages were   identified, the remediation of which cannot await the final decision on this   case, a request is made on grounds of article 294, sole paragraph and 297, of   the Civil Procedure Code, for extension of the interlocutory relief and grant   through INJUNCTION of the claims below, and that defendant meet such   requests, on pain of daily fine of one million reais (BRL 1,000,000.00):
    	
 
    	
N.A. 
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.3 - The grant of this public-interest civil action in order to, on   confirmation of the interlocutory reliefs requested in the present action,   also order defendant:
    	
 
    	
N.A.
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10.2.5 - Determine that the obligations established in the preliminary   injunctions will not
   limit or replace the prerogatives legally attributed to the bodies and
   entities of the GOVERNMENT and to the bodies and entities with authority to
   inspect, license and authorize defendant’s activities.
    	
 
    	
N.A.
    
	
5026408-67.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
12) Reversal of the burden of proof regarding the knowledge activities   related to the definition of the amount due, of the holders of rights and the   damage occurred, imposing on defendant the duty to discharge itself of such   burden when the plaintiffs’ assertions are supported by elements of   information  or result from logical   conclusions from ordinary observations; 
    	
 
    	
N.A.
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
a) That the interlocutory relief be granted in antecedent manner,   without the prior testimony of DEFENDANT, to determine: a.1) that DEFENDANT   adopt all necessary measures - using the best existing technology - to ensure   the stability of dam VI of the Feijão Mine Complex. Request for DEFENDANT to   present reports on the measures being adopted and the stability condition or   not of DAM VI to SEMAD, State Civil Defense and Municipalities at risk, and   the Fire Department, every 6 hours or less if necessary;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

85

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
a.2) the freeze of amounts found in existing bank accounts in the name   of DEFENDANT, through the Bacen-Jud System, in an amount not less than 5   billion Reals, to secure the EMERGENCY measures only. In case of insufficient   funds, the freeze of vehicles through RENAJUD and of real estate properties   through the issuance of official letters to the real estate registry offices   of Belo Horizonte - Minas Gerais and Brumadinho - Minas Gerais; The   Prosecution Office requests an express indication in the decision that this   frozen amount is to be used exclusively to remediate the damage caused to the   environment. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
1) Immediately and continuously: to take all the technically necessary   measures - according to the best available techniques - to guarantee the   safety and stability of all the remaining structures of the Paraopeba Mining   Complex, according to the Brazilian standards and best international   practices. To this end, in addition to other measures that may be necessary,   the Prosecution Office requests: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
1.1) suspension of all activities at the Córrego do Feijão/Jangada   Mining Complex that may increase the risk of collapse of its structures,   without prejudice to the necessary environmental control measures;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
1.2) the imposition on DEFENDANT of the following obligations within   10 days: a) to present the current stability condition of the structures to   the competent bodies; b) to propose, perform and submit to the competent   bodies the results of a new campaign of geophysical and geotechnical   investigation and characterization for all structures; c) to review the   safety factors and, for the structures that do not meet the safety factors recommended   by the Brazilian standards and the best international practices, develop,   present to the competent bodies, and execute the necessary engineering   projects to meet the safety factor recommended by the Brazilian standards and   the best international practices; d) to update the safety plans for the dams,   including the emergency action plans to be adopted in case of collapse of the   remaining structures of the Paraopeba Mining Complex, contemplating the most   critical scenario and cumulative and synergistic effects, subject to all   requirements provided for in DNPM Regulation no. 70.389/2017 and State Law   23.291/2019. The plans, besides being submitted to the competent bodies, must   be disclosed to the populations living in the flood zone, in the event of a dam   break.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

86

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
3) Within 10 days, to submit to the competent bodies an emergency plan   for the actions of search, rescue and care of native, exotic or domestic   animals, affected by the collapse of the dams of the Paraopeba Mining Complex   of the company Vale S.A., in Brumadinho - Minas Gerais. In compliance, the   covenantor must immediately perform all the measures provided for in the   aforementioned plan, conducting improvements, as indicated by public   agencies, especially; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
3.1) The maintenance of sufficient professionals to compose a   qualified technical team, preferably specialized in ethological handling, to   perform actions for search, rescue and care of animals;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
3.2) The availability of infrastructure, equipment, machinery,   vehicles (air or land), and supplies necessary for the search, rescue, and   care of the animals;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
3.3) Diagnosis of the affected areas, aiming at the continuity of the   actions for location, identification and quantification of isolated animals,   especially through: (i) daily overflight of the affected area at the   lowest altitude recommended for viewing the animals; (ii) recording of   the overflights in high quality footage, that allow later analysis of the images   and identification of animals that may not have been seen during the action;   (iii) transcription of the footage; (iv) georeferencing of the   points where isolated animals were visualized; (v) performance of an   interview, using a specific form, identifying the number, species, and   possible location of the animals under their care before the event;   (vi) overland investigation.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
3.4) Based on the information compiled in the diagnosis, promote:   (i) the immediate rescue of the isolated animals; (ii) the   provision of food, water, and veterinary care to those animals whose rescue   is not technically recommendable, as determined in a technical report signed   by the professional responsible for the execution of the emergency plan;   (iii) fencing of the areas covered by the slurry, which represent a risk   of entrapment of animals, especially cattle.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

87

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
4.1) Plan for the prevention of new damage, mitigation, recovery, and   socio environmental compensation for the total environmental impact   (including the natural, cultural, and artificial environment) that occurred   as a result of the collapse of the dams under its responsibility. Without   prejudice to all the technical measures for the full prevention against new   damage, mitigation, recovery and socio environmental compensation, the Plan   must contemplate:
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
a) a specific provision for recovery and compensation of all affected   natural resources, especially flora, fauna, soil and water resources (surface   and underground). The plan shall: (i) contain the mapping of different   resilience potentials of the directly affected area, subject to the thickness   of the slurry cover, the grain size and PH of the material, further to the   possible concentration of heavy materials; (ii) encompass the forest   recovery chain and provide for the complete recovery of the affected areas -   including by the very interventions promoted during its execution and the   carrying out of the measures provided for in the preceding topics - subject   to the specific regulatory system for each natural resource subject to   special protection (such as permanent preservation areas, Atlantic Forest   biome, Conservation Units);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
b) adoption of efficient measures to remove suspended and/or dissolved   material in the water - from Brumadinho to where the presence of   tailings/contaminating plume has been verified - so that the quality   indicators of the affected watercourses are adjusted to the standards   required by law, allowing the resumption of multiple uses of the water and   the restoration of biota. The preparation and execution of the plan must take   into account the content of the Directive Plan for the affected Watershed;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

88

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
c) a global management and handling plan for the solid   wastes/contaminating substances/material to be removed from the impacted   areas, including those currently being removed on an emergency basis. The   plan shall contemplate: (i) the containment and full removal;   (ii) transportation to the appropriate location; (iii) treatment   and final environmentally adequate disposal of solid wasters/contaminating   substances/material. The entire plan must provide for the mapping of found   items and consider the previous sorting and physical-chemical   characterization of the material/tailings, so that the removal,   transportation, treatment, and final disposal are carried out according to   their characteristics. Furthermore, the plan should favor solutions that   contemplate the reuse and recycling of waste, following the best available   techniques.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article 487, III,   b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
d) global urban recovery plan, rebuilding the affected urban   environment - especially in the communities of Vila Ferteco and Bairro Nova   Cachoeira -, providing the urban center with urban and community equipment,   such as roads, streets, bridges, pipelines, squares, green areas, leisure   areas, urban infrastructure equipment, especially basic sanitation and   electric transmission lines destroyed or damaged by the disaster.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
e) perform a full diagnosis of the affected cultural heritage and   preparation and execution of: (i) a program for restoration of tangible   heritage assets, including archaeological heritage, that can be restored;   (ii) intangible heritage protection program; (iii) program for   reestablishing the landscape heritage; (iv) program for re-establishing   and promoting local and regional tourism.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

89

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
f) fauna damage remediation plan, which must provide, at least:   (i) program for wild fauna restoration, including, among other actions:   (i.a) monitoring for definition of the impact on the fauna and mitigation   measures to be adopted, notably the recovery, release and monitoring; (i.b)   the creation of ecological corridors that foster the natural reintroduction   of animal species decimated by the tragedy; (i.c) conservation and   reintroduction of threatened ichthyofauna species; (ii) a program to   ensure to all affected domestic, wild and exotic animals the favorable   conditions of well-being by providing them with food, water, environmental   enrichment, veterinary treatment and other necessary measures for each   species until they are returned to their owners, if any, or reintroduced into   the habitat or their natural death; (iii) program to control, in an   ethical way, the proliferation of synanthropic species (rats,   cockroaches, etc.) and vectors of diseases transmissible to humans and   animals near the residences and communities, by itself or by a retained   specialized company; (iv) for to ensure the supply of water for animals   in the areas of municipalities affected by the collapse of Defendant’s   tailings dam; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
4.2) Environmental monitoring plan for the entire Paraopeba River   Watershed, aiming at knowing the secondary impacts and the effectiveness of   actions for the prevention of further damage, mitigation, recovery, and   environmental compensation to be developed in all environmental sectors   (natural, cultural and urban).  The   plan must be submitted to the competent bodies for approval and follow-up,   considering the regional aspects of the environmental damage caused by the   event. It must contemplate the entire affected area and have a standardized   methodology, protecting the specific aspects of each environment, in order to   generate highly reliable data.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5) Within 120 days, to prepare and submit to the competent bodies,   executing, according to the schedule, a Global Recovery Plan for the affected   Watershed, with a minimum term of 10 years, mandatorily containing at least: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.1) a program for the recovery of permanent preservation areas (APP)   in the watershed, according to the attached reports;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

90

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.2) program for the recovery of springs in the watershed;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.3) program to strengthen and maintain the Structures for the   Screening and Reintroduction of Wildlife in the watershed;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.4) program for the Improvement of Water Quality - Collection and   Treatment of Sewage and Solid Waste in the municipalities of watershed,   subject to the specific aspects and needs of each municipality;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.5) a program to Strengthen the Water Supply and Reduce Losses in the   affected Municipalities of the watershed, subject to the specific aspects and   needs of each Municipality and ensuring alternatives to the water catchment   from the Paraopeba River, as well as the reduction of losses in the supply   systems, according to the technical specifications of the ANA and the state   and municipal water and sewage companies; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.6) Environmental Education program, contemplating the Program for   Emergency Awareness and Preparedness at Local Level - APPEL, developed by the   United Nations Environment Program;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.7) program to support and strengthen the existing conservation units   in the Watershed of Paraopeba River, with follow-up by the managing bodies   and advisory boards, especially the State Park of Serra do Rola Moça;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
5.8) program for follow-up on the structuring of projects and the   management of the Global Recovery Plan of the affected Watershed, in order to   ensure transparency in the application of resources and to privilege the   institutional and social liaison with the entities and the population   involved.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

91

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
6) The Prosecution Office requests that DEFENDANT be ordered to   prepare the plans and programs, and that the execution be fully followed-up   by multidisciplinary technical teams, with the Annotation of Technical   Responsibility. The plans and programs must comply with current legislation   and provide for the adoption of the best available techniques. They must also   contain short, medium, and long-term goals and objectives, as well as   execution schedules, to be strictly complied with. The plans and programs   must be submitted for approval and followed-up by the competent public   agencies, with DEFENDANT making all the adjustments required by them,   including in relation to execution schedules, and prepare reports of   compliance, on monthly basis or within shorter periods, as required by the   competent bodies.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
7) Prosecution Office requests that DEFENDANT ensure the social   participation in the adequacy of the prepared plans/programs. It also   requests that the right to information be ensured, providing this case record   and an electronic media with all information about the prepared   plans/programs, as well as about their execution, within 30 days.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
8) The Prosecution Office requests that DEFENDANT be ordered to   present proof in the case record of compliance with the measures required   above, inserting copies of plans and programs, together with receipts and   resolutions of the competent agencies, within 10 days from the date of the   acts.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
a) prevent further environmental damage, ensuring the safety of all   structures in the Paraopeba mining complex;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
b) mitigate all environmental damage caused by the collapse of the   structures of the Paraopeba mining complex (Córrego do Feijão mine);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
1) the immediate judgment - by partial decision on the merits - of the   following claims, with an order for defendant to pay: a)   indemnity/compensation for collective moral damages and social damages, in   the amount of twenty-eight billion, fifteen million, six hundred and   sixty-seven thousand, one hundred and fifty-seven reais and forty cents 
   (BRL 28,015,667,157.40);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

92

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) Indemnity/compensation for economic damages suffered by the State   of Minas Gerais, by funding the following projects, in the amount of
   BRL 26,680,100,000.00, related to the programs that are duly 
   detailed in the schedule called “Analysis of the effects of the collapse of   Vale S/A’s dams in Brumadinho and its effects in the State of Minas Gerais” -   4. Proposals from the State Government.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
3) Notification for defendant to present the existing plans to   remediate the damage to the fauna, as alleged in the challenge, so that they   can be assessed by a technical team, to be defined at adversary proceeding;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
4) Dismissal of the dispute in relation to the provisional measures   regarding protection of the fauna, in the following terms: a) Grant of the   requests presented in items 3.1 and 3.2 of the complaint, by recognizing the   validity of the request by the defendant itself, and subsequent dismissal of   the dispute in relation to these topics, according to article 487, item  III, sub-item “a” of the Civil Procedure   Code/2015; b) Ratification of the Preliminary Commitment Agreement signed by   the parties on 
   April 5, 2017, with the consequent dismissal of the dispute in relation   to items 3.3 and 3.4, on grounds of article 487, item  III, sub-item “b” of the Code of Civil   Procedure.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
5) Granting the request for injunctive relief to the cultural   environment (4.1, item “e” and final requests II and IV), as below: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
a) Considering that the party that caused the damage cannot be left   with the sole responsibility for diagnosing the extent of its liability,   Plaintiffs and the Amici Curiae request that defendant be ordered to present   in court a full diagnosis of the damage to the cultural environment,   mentioning: a) the methodology for developing the diagnosis, including with   regard to the participation of the population; b) the inclusion of the   uncontroversial damage mentioned in this case record; c) analysis of all   other damage already pointed out by the parties; d) compliance with the   attached reports, produced by the MPMG and the technical advisors and by the   State of Minas Gerais, addressing in the diagnosis all the damage mentioned   therein; e) consultation and approval of all instances of cultural heritage   protection according to 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

93

 

	
 
    	
 
    	
 
    	
 
    	
competence (municipal councils of cultural   heritage, IEPHA, IPHAN, CECAV etc.); 
    	
 
    	
 
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
e) that: e.1) the preparation of the plans and programs, as well as   their performance, be fully monitored by multidisciplinary technical teams,   with Annotation of Technical Responsibility; e.2) include all the damage   listed in the diagnosis (including the damage caused in the second wave,   based on works performed by defendant for the recovery and/or mitigation of   the damage originally caused; and the damage caused to traditional   communities that are not within the territorial limit initially established   for the payment of emergency aid); e.3) respect the legislation in force and   contemplate the adoption of the best available techniques, containing short,   medium, and long term targets and objectives, as well as performed schedules   to be strictly complied with; e.4) be submitted for approval and monitored by   the competent public agencies, with defendant making all the adjustments   required by them, including in relation to execution schedules, and prepare   reports of compliance, on monthly basis or within shorter periods, as   required by the competent agencies; e.5) defendant ensure the social participation   in the adequacy of the prepared plans/programs; e.6) the right to information   be ensured, providing this case record and an electronic media with all   information about the prepared plans/programs, as well as about their   execution, within thirty (30) days. (Requests for Interlocutory Relief 6 and   7); e.7) the plans and programs must take into consideration the information,   surveys, assumptions and recommendations contained in the reports produced by   MPMG and by the Technical Advisors Aedas, Guaicuy and Nacab (attached);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
f) that defendant be ordered to present proof in the case record of   compliance with the measures required above, inserting copies of plans and   programs, together with receipts and resolutions of the competent agencies,   within ten (10) days from the date of the acts;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
g) an order for assessment of the plans by CTC-UFMG, to check their   adequacy and sufficiency.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

94

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
h) lastly, that defendant submit evidence of the measures provided for   in the duly approved plans and
   programs, audited by company AECOM and 
   information thereof in the case record; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
8) that defendant be ordered to expressly state in this lawsuit all   the plans/actions it is developing for environmental remediation/   compensation, informing on what account the remediation is intended to be   made. It is requested that all plans/actions be submitted to the technical   audit and the court-appointed expert for review; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
2) Immediately and continuously: to take all the technically possible   and necessary measures - according to the best available technologies - to   permanently stop the progress of pollution caused by the tailings resulting   from the collapse of the dams of the Córrego do Feijão Mine Complex. To this   end, in addition to other measures that may be necessary, DEFENDANT shall,   within 10 days, prepare, submit to the competent bodies and implement an   action plan, with a defined schedule and goals (including express actions to   be executed by the beginning of the next rainy season in 2019), to ensure the   permanent: a) cessation of the contaminant plume to move forward; b)   dispersion of contaminants through the air; c) contamination of soil, water,   groundwater table and mineral water sources; d) the cessation/staunching of   the transportation of tailings, contaminating substances and materials   mobilized by the collapse of the dams under the responsibility of DEFENDANT   to the watercourses of the Watershed, especially to the Paraopeba River and   its system of lagoons.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
9) The Prosecution Office requests that DEFENDANT be ordered: (9.1) to   keep in its own private fund, working capital never less than 100% of the   amount to be used, for the subsequent 12 months, in the expenses to cover the   preparation and execution of the plans, programs, actions, and measures   addressed herein; (9.2) without prejudice to the amount already secured,   provide a sufficient guarantee for the redress of damages, in the minimum   amount of 50 billion reais;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
10) Based on the provisions of Article 12, paragraph 2, of Law   7.347/85, combined with article 84, paragraph 4 of Law 8.078 and article 537   of the NCPC, the Prosecution Office requests the setting of a daily fine of   BRL 500,000.00 in case its terms (including the deadlines in the performance   schedules), without prejudice to other measures required for the   implementation of the relief 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

95

 

	
 
    	
 
    	
 
    	
 
    	
sought, further to the criminal liability. It requests that the   amounts be reverted to the State Fund of the Prosecution Office - FUNEMP.
    	
 
    	
 
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) Compensation for the damage caused to “Berros II” archeological   site, in an amount not less than three hundred and sixty-one thousand, two   hundred and fifty reais (BRL 361,250.00), as stated in item 4.4.2.II, to be   deposited to the Fund for Natural Rights of the Prosecution Office (FUNEMP),   without prejudice to the measures that may be required by IPHAN.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
2) The granting of Provisional Remedy to determine the freeze of   accounts held by defendant up to the limit of BRL 26,680,100,000.00,   referring to the socio economic damage suffered by the State of Minas Gerais;   
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) With the insertion in the record, a request is made to submit the   diagnosis to the parties, including
   advisors, for examination;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) In the event of a controversy, an evaluation of the diagnosis by   the CTC-UFMG is requested, to check its adequacy and sufficiency;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
d) after completion and approval of the diagnosis by all competent   entities, including the parties, the defendant be ordered to prepare, obtain   approval by all competent cultural protection agencies (federal, state and   municipal, according to the protection level of the asset), and submission to   this court of plans for the global recovery of the damage - contemplating the   damage contained in the diagnosis approved by the parties and the court -   with presentation of: (I) program for restoration of the tangible   heritage assets, including archeological and speleological, that can be   restored, according to the request for injunctive relief 4.1, “e”, I,   and final requests II and IV, item “c.1”; (II) program to safeguard the   intangible heritage of all the affected municipalities, according to the   injunctive relief 4.1, “e”, II and final requests II and IV, item “a”,   “b”, “c.1”; (III) program to reestablish the tourist and landscape   heritage, with requalification of the affected sites, according to injunctive   relief 4.1, “e”, III and IV, and final requests II and final request IV,   item “c.1”; (IV) compensation/indemnity plans for damage to the cultural   environment irreparable by restoration or safeguard measures.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

96

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
9) evidentiary expansion regarding the following topics: a) Submission   to the UFMG Technical Committee and/or opening of calls regarding the topics   presented in item 3.1.5 of this petition; b) Expansion of calls 3, 7, 33, 35   and 36, 39, 55 and 60, so that they also contemplate socio economic aspects   of the municipalities in Region 5 (São Gonçalo do Abaeté, Felixlândia, Morada   Nova de Minas, Biquinhas, Paineiras, Martinho Campos, Abaeté, and Três   Marias);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
11) That defendant be ordered to evidence the actions taken to   mitigate and recover the socio-environmental damage already identified by the   company; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
c) full remediation of the socio environmental damage caused by the   collapse of the dams of the Paraopeba mining complex (Córrego do Feijão   mine), through: (c.1) in natura restoration of impacted areas and ecosystems;   (c.2) environmental compensation as a result of the impacts caused, by means   of actions and the payment of amounts to be ascertained in the evidentiary   phase and/or as awarded by the judge, mandatorily reverted to the affected   watershed; (c.3) indemnity for: (c.3.1) residual (irreparable) damage;   (c.3.2) temporary/intercurrent damage (environmental loss occurred between   the date of the environmental damage and effective remediation); (c.3.3)   non-pecuniary damage caused to the community (collective moral damage and   social damage). The amounts must be determined in the evidentiary phase   and/or as awarded by the judge, without prejudice to the parameters already   included to the case record by MPMG, to be destined to the fund addressed in   article 13 of Law 7347/85.
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    

 

97

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
6) an order for the defendant to prepare a detailed diagnosis of all   environmental damage, including cultural and tourist heritage, housing and   urban planning, caused by the collapse of dams B-I, B-IV_A, ensuring the   identification of intercurrent and irreparable damages, as well as their   quantification, for environmental compensation purposes. The diagnosis in   question must meet all the specifications and recommendations issued by the   competent environmental bodies; a) Alternatively, that such diagnosis be   prepared by the Technical Committee of the UFMG, in a consolidated form based   on the 67 calls already issued and on new calls to be issued according to the   requests in this statement, also in a manner allowing the quantification of   intercurrent and irreparable damage and meeting all specifications and   determinations of the applicable environmental bodies; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
7) that the CTC-UFMG quantify the irreparable and intercurrent   damages, for purposes of environmental remediation and compensation;
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
10) Opening of new calls by the CTC-UFMG on individual moral damage,   damage to private property, right to come and go, socio environmental damage,   access to water, food security, rural production, economic chains,   non-pecuniary damage, health, impacts on public policies, and perpetuations   of violations, encompassing all municipalities and communities that could   already be identified as affected; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
4.3) Assessment of risk to health (human, animal and environmental) in   the entire impacted area, including assessment of the contamination of fish   by inorganics - assess the risk to human health and possible toxicity caused   by the consumption of fish, comparing with standards established by the   Health Surveillance Department and the Ministry of Health;
    	
 
    	
Suspension
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
4) Within 30 days, prepare and submit to the competent bodies,   executing according to the following schedule:  
    	
 
    	
N.A. 
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
IV - Lastly, grant of the requests is sought, with the   confirmation/dismissal of the provisional remedy and interlocutory relief,   making them final, as well as an order for DEFENDANT to:
    	
 
    	
N.A.
    
	
5044954-73.2019.8.13.0024
    	
 
    	
Amendment 
    	
 
    	
VII - the reversal of the burden of proof as a procedural rule,   according to the justifications presented in specific topic.
    	
 
    	
N.A.
    

 

98

 

	
5044954-73.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
12) Reversal of the burden of proof regarding the knowledge activities   related to the definition of the amount due, of the holders of rights and the   damage occurred, imposing on defendant the duty to discharge itself of such   burden when the plaintiffs’ assertions are supported by elements of   information or result from logical conclusions from ordinary observations; 
    	
 
    	
N.A.
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
I. The grant of the inaudita altera pars injunction, given the   presumption of sufficient legal basis and ineffectiveness resulting from   possible delay, with adjudication of freeze of assets of defendant VALE S/A,   in the amount of five billion reais (BRL 5,000,000.000,000.00), with the   initial freeze through BACENJUD of amounts deposited in financial   institutions and, in case of insufficient funds, the freeze of automobiles   through RENAJUD and personal assets upon issuance of official letters to the   real estate registries of Belo Horizonte/MG, Brumadinho/MG, ltabirito/MG,   ltabira/MG and Ouro Preto/MG; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
lI. If sufficient goods and funds are not found as set forth in the   item
   above, a determination to freeze shares listed on the Stock Exchange
   and held by defendant, in the quantity necessary to make up the amount; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
III. The express indication in the decision that this frozen amount be   used
   exclusively in the remediation of the damage caused to the persons affected
   by the collapse of the dams in Córrego do Feijão Mine in the
   territory of the municipality of Brumadinho;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
IV. That defendant be liable for the reception and accommodation, in 
   in hotels, inns, rented real properties, bearing the costs related to the   transfer, transportation of movable goods, people and animals, in addition to   total costs with food, supply of drinking water, subject to the dignity and   adequacy of the places to the specific aspects of each family, always in   conditions equivalent to the status quo prior to the collapse, for ALL those   who had their housing conditions compromised as a result of the collapse of   the dams, for as long as necessary; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
V. For the fulfillment of the previous item, that the affected people   be heard
   about the choice of location and form of accommodation (hotel,
   inn, leased property); 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

99

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
VI. That the defendant be ordered to immediately ensure that the
   collectivity of affected dwellers receive full assistance, and to this effect
   provide a multidisciplinary team composed of at least, 
   a social worker, psychologist, physician, architect, in sufficient numbers to   meet the demands presented by the affected persons;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
VII. That defendant company provide immediately, an adequate structure
   to receive the families of victims who are missing and of those whose death   is already confirmed, providing updated information to each family involved,   food, support from the multidisciplinary team mentioned above,   transportation, burial expenses, and all the logistical and financial support   requested by the families;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
VIII. Disclosure of informative bulletins about the  missing persons, updated at each six hours;   
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Complaint
    	
 
    	
IX. That, on a weekly basis, the company provides the court with a   list of the families
   removed from their dwellings, places where they are sheltered, in addition
   to a detailed report of all actions to support the
   affected persons;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
3. Given the abusive practices and the Defendant’s refusal to comply   with the emergency measures imposed by the court, determine that Defendant:   3.1. Keep in its own private funds, working capital never less than one   hundred percent
   (100%) the amount to be used, for the subsequent twelve (12) months, in the   expenses to cover the preparation and execution of the plans, programs,   actions, measures addressed herein; 3.2. And to provide a sufficient   guarantee for the redress of damages, in the minimum amount of fifty billion   reais (BRL 50,000,000,000.00), without prejudice to the amount already   granted.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
5. Order the Defendant to fully fund the hiring of entities
   that will provide independent technical advice to the affected persons, at
   least, in the five regions listed in the Term of Reference and respective   Notice 
   Public call (attached) already published and informed in 
   case no. 5010709-36.2019.8.13.0024, in progress at the 6th
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

100

 

	
 
    	
 
    	
 
    	
 
    	
Treasury Court and Independent Agencies of the Judicial District of   Belo Horizonte;
    	
 
    	
 
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6. Order that Defendant fund a multidisciplinary entity/technical   staff that
   is independent in relation to Defendant, whose selection is made by this   Court,
   after consulting the MPMG, to prepare a Social and Economic Diagnosis and a   Full
   Remediation Plan for the Damage, according to: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.1. identify social groups or affected people who need immediate
   inclusion in the “emergency payment” already agreed upon in case no.   5010709-36.2019.8.13.0024, which is in progress at the 6th Treasury Court
   and Independent Agencies of the Judicial District of Belo Horizonte; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.2. identify social groups or affected people who need 
   maintenance of the “Emergency Payment” set in case no.   5010709-36.2019.8.13.0024, in progress at the 6th Treasury Court and   Independent Agencies of the Judicial District of Belo Horizonte, beyond the   initially established period of twelve months; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.7. Contemplate plans, projects and emergency actions capable of   mitigating the
   impacts and inhibit the dissemination, multiplication, intensification,   extension and
   rising of new socio economic damage, including in relation to the 
   situations identified in item 6.3;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.9. Contemplate the creation and operation of a specific fund to be   composed of amounts arising from collective moral damages and/or social   damage, whose name will be defined by the affected persons, subject to:   6.9.1. guarantee of informed participation of affected people and members of   civil society in the design, planning, management and seat in decision-making   bodies, 6.9.2. Prohibition of any kind of interference and participation of   Defendant in the design, planning, management and seat in the decision making   bodies; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.10. Submit the execution of all plans, projects and actions created   and
   performed within the scope of the Social and Economic Diagnosis and the
   Full Remediation of Damages to the finalist and accounting-financial audit; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

101

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
8. Order Defendant to pay for the engagement of the entity that will   perform the
   duties of manager of the independent technical advisors, to perform
   the duties of administrative-financial management and will be appointed by a   three-name list of the Prosecution Office and selected and ratified by the   Court, upon fulfilment of the following requirements: a) Have at least 3   years of existence; b) Be technically, financially and institutionally   independent from Defendant; c) Be a not-for-profit entity; d) Have experience   in the defense of human rights. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
9. Order Defendant to fund the engagement, to be carried out by the   manager of the independent technical advisors, of an independent external   auditor for accounting-financial and finalist analysis of the performance of   the work plans of the entities that will provide independent technical   advice; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
10. Determine that Defendant fund the engagement of an independent   external audit
   for the finalist and accounting-financial analysis of the performance of the   plans, projects and actions to be created and executed within the scope of   the Social and Economic Diagnosis and the Plan for Full Remediation of the   Damage; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11. Determine the obligation for Defendant to pay the sum of thirty   thousand reais (BRL 30,000.00) as an ADAVANCE INDEMNITY to the affected   people who fit within the following situations:
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.1. People living in the communities of Parque da Cachoeira, Córrego   do
   Feijão, Alberto Flores, Cantagalo, Pires, in the Self-Rescue Zone and in the
   banks of the Ferro-Carvão stream, by using the same database already created   for the purpose of complying with the “emergency payment” defined in the   record of Case No. 5010709-36.2019.8.13.0024, at a hearing held on   02/20/2019 (Item: 4.3) or upon proof of domicile;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.2. People who have been displaced from their residences due to the   disaster, according to the list inserted on a weekly basis by Vale in  compliance with the preliminary decision   rendered in this case record, or persons who had their furniture affected at   any level, by the slurry/tailings, according to the report prepared by the   MPMG based on the reports of the civil defense;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

102

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.3. Farmers, ranchers, fishermen and fish farmers who use the water   from the
   Paraopeba River, the Ferro-Carvão stream or groundwater, wells or cisterns   located up to 100 meters from the Paraopeba riverbed for agriculture and   cattle raising (irrigation, planting, animal watering), using the same   database already created for the purpose of fulfilling the “emergency   payment”, defined in the record of case no. 5010709-36.2019.8.13.0024, at the   hearing held on 02/20/2019;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.4. Farmers, ranchers, fishermen, fish farmers, tourism
   professionals, extractive persons or collectors of animal, plant or mineral   products
   in the Paraopeba riverbed, upon proof of the activity through
   document issued by public agencies; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.5. To meet the items above, it is requested that pursuant to   article 536 of the
   Civil Procedure Code, Defendant be compelled to provide a multidisciplinary   team to receive the documentation and make the payment within five (05)   working days from the filing of the request. It is also requested that each   week Defendant submit to the court a list of all payments made on this   account, as well as of any denials, attached with the respective   justifications. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
11.6. Without prejudice to the previous item, it is requested that the   affected persons be
   authorized to proceed with the liquidation of the amounts by the court or, in   case of not 
   being provided with the plan of evidentiary documents, it is requested that 
   such situations be expressly protected within the scope of the plan to be   prepared according to item 6.3 of the requests. Due highlight is given to the   terms of article 516, sole paragraph, of the Civil Procedure Code and   precedents of the STJ (Third Panel, Appeal to the Superior Court of Justice -   RESP 1.098.24/GO, Rapporteur Justice NANCY ANDRIGHI, unanimous decision, DJe   of 10/28/2010), which allows that the liquidation not be concentrated in a   single court, as the creditor of a collective negotiable instrument may elect   to propose its liquidation in the most convenient court; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

103

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12. Determine the obligation for Defendant to give a sum certain on   account of ADVANCE
   INDEMNITY in the amount of thirty thousand Reais (BRL 30,000.00) to the   affected persons
   who do not classify within the sub-items above and are in the following
   conditions:
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.1. People subject to forced displacement from their residences due   to the  disaster and do not fit within   item 11.2;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.2. Farmers and ranchers (owners, lessees, sharecroppers, and day   workers)
   who had their production areas totally or partially affected by the   slurry/tailings;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.3. Farmers and ranchers (owners, lessees, sharecroppers, and day   workers)
   who had their production areas “isolated” by slurry/tailings; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.4. People who had their property damaged by the disaster or the   subsequent
   emergency or remediation activities;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.5. People who had their water supply for
   domestic consumption affected by the disaster; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.6. Formal or informal merchants and entrepreneurs, with activities
   related to tourism, leisure or fishing in the municipality of Brumadinho or
   along Paraopeba River, who had their activities adversely affected by
   the disaster; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
12.7. To fulfill the above items, it is requested that the affected   persons be authorized to
   proceed with the judicial liquidation of the amounts or, in the event of not   being provided with an evidentiary documentation plan, that such situations   be expressly protected within the plan to be prepared according to item 6.3   of the requests. Due highlight is given to the terms of article 516, sole   paragraph, of the Civil Procedure Code and precedents of the STJ (Third   Panel, Appeal to the Superior Court of Justice - RESP 1.098.24/GO, Rapporteur   Justice NANCY ANDRIGHI, unanimous decision, DJe of 10/28/2010), which allows   that the 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

104

 

	
 
    	
 
    	
 
    	
 
    	
liquidation not be concentrated in a single court, as the creditor of   a collective negotiable instrument may elect to propose its liquidation in   the most convenient court; 
    	
 
    	
 
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
13. Order Defendant to advance indemnity in an amount corresponding to   the debts and financing related to the productive activities of farmers,   ranchers, fish farmers, and businessmen who could not be paid off due to the   disaster; 13.1. To meet this item, it is requested that, pursuant to article   536 of the Civil Procedure Code, Defendant be compelled to provide a   multidisciplinary team to receive the documentation and make the payment   within five (05) working days from the filing of the request. It is also   requested that each week Defendant submit to the court a list of all payments   made on this account, as well as of any denials, attached with the respective   justifications. 13.2. Without prejudice to the previous item, it is requested   that the affected persons be authorized to proceed with the judicial   liquidation of the amounts or, in the event of not being provided with an   evidentiary documentation plan, that such situations be expressly protected   within the plan to be prepared according to item 6.3 of the requests. Due   highlight is given to the terms of article 516, sole paragraph, of the Civil   Procedure Code and precedents of the STJ (Third Panel, Appeal to the Superior   Court of Justice - RESP 1.098.24/GO, Rapporteur Justice NANCY ANDRIGHI,   unanimous decision, DJE of 10/28/2010), which allow that the liquidation not   be concentrated in a single  court, as   the creditor of a collective negotiable instrument may elect to propose  its liquidation in the most convenient   court; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
0
    	
 
    	
14. Order Defendant: 14.1 - to provide, within 24 hours, drinking   water for human consumption, in adequate quantity and quality, to the   affected persons who request it, collectively or individually;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
14.2. to supply, within 5 days, water for productive activities, with
   adequate quality and quantity for the needs presented
   by the affected persons who request it, collectively or individually; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
14.3. to perform, within 5 working days, the installation of water   tanks already
   delivered (and that may have not yet been installed) to the persons and
   families who were prevented from having access to water due to the disaster;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

105

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
14.5. that, pursuant to article 536 of the Civil Procedure Code,   Defendant be compelled to
   make a multidisciplinary team available to receive the request and
   comply with it within 48 hours from the filing of the request. It is also   requested that each week Defendant submit to the court a list of all requests   made on this account, as well as of any denials, attached with the respective   justifications. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
15. A request is made for the court to appoint an independent retained   expert, to be recommended by IGAM or another competent state agency, at the   expense of defendant, to carry out within a maximum interval of thirty (30)   days, periodic analyses of the water quality along the Paraopeba River, to   assess its suitability for human and animal consumption.  The results of this analysis must be widely   disseminated to the affected parties; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
16. Order Defendant to inform all affected persons about the
   denial of the requests filed with the company, and justification therefor; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
In view of the need for the court to make immediate personal contact   with
   the reality in order to know the relevant matter of the litigation, the   Prosecution Office requests, after notification for defendant to follow up   its respective production, the determination of early production of the   following evidence immediately, regardless of a challenge filed or a pretrial   order, consisting of: a) holding of public judicial hearing(s) for the   community to testify, ensuring the representativeness of the various   communities affected along the Paraopeba River basin; b) Court inspection, pursuant   to articles 481-484 of the Civil Procedure Code, with the respective   registrations in the case record.  
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
1. the grant of an interim or interlocutory relief of declaratory   nature, to clarify a legally relevant doubt, namely: to declare that the   settlement between Defendant and DPMG cannot be interpreted in any way that   implies full discharge of any amounts, in favor of Defendant, by the affected   parties who opted to enter into the settlement, and a further declaration   that any amounts received by the victims will be deemed an indemnity advance,   which may be deducted from future amounts obtained in the scope of this   class  action or any other judicial or   extrajudicial action; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

106

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
2. In the event item “a” is granted, an interim relief be granted to   determine that as the settlement between Defendant and DPMG represents a   confession of debt, those not interested in negotiating individually should   be authorized to liquidate the amounts in court by presenting the proof of   their status as affected party to the court, always with the exception of the   jurisdiction of the Labor Court. This request, as seen, is important to avoid   that Vale alone decide who is affected or not. In the event the person elects   not to be submitted to Vale, or is denied by the company, or even if such   person does not classify within the sorting parameters to meet the DPMG, or   intends to be assisted by a trusted lawyer, the alternative for said person   to seek payment of a debt acknowledged in court must be available upon   liquidation and execution.  It is worth   calling that this request does not need to be concentrated in this court, as,   according to article 516, sole paragraph, of the Civil Procedure Code and the   STJ precedents, the creditor of a collective negotiable instrument may elect   to seek liquidation at the most convenient court.  Finally, it should be stressed that the   authorization, as requested, should be restricted to issues where early   settlement does not present the possibility of future harm to the affected   parties, that is, with regard to the rights addressed in clauses 7, 8, 9, 10,   11, 12, 13, 14 and 15; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
3. order for incidental disclosure of documents mentioning the 
   “damage matrix” expressed in the minutes of the meeting of April 25,   2019, mentioned above, attended by Vale, several Public Institutions and
   several communities affected by the disaster caused by the dams in Brumadinho   (exhibit attached); as well as all documents specifying the terms “standard   package” (clause 8.2), “fixed price” to be submitted by Vale (clause 9.2),   “implementation cost” (clauses 11.3, 11.4 and 11.5), and “value to be   presented by Vale” as reference (clause 14.2), in order to ensure not only   the right of the affected people to information, but also the feasibility of   judicial liquidation of the amounts related to the indemnities addressed in   such clauses; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

107

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
4. grant of an interim relief to determine that Defendant submit a 
   detailed report, with justifications, to the Prosecution Office and the   court, of all
   cases in relation to which there was an attempted extrajudicial settlement   and it was 
   refused, with clarifications on the reason why it was not accepted. 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
2) The granting of Provisional Remedy to determine the freeze of   accounts held by defendant up to the limit of BRL 26,680,100,000.00,   referring to the socio-economic damage suffered by the State of Minas Gerais;   
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
3) Notification for defendant to present the existing plans to   remediate the damage to the fauna, as alleged in the challenge, so that they   can be assessed by a technical team, to be defined at adversary proceeding;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
4) Dismissal of the dispute in relation to the provisional measures   regarding protection of the fauna, in the following terms: a) Grant of the   requests presented in items 3.1 and 3.2 of the complaint, by recognizing the   validity of the request by the defendant itself, and subsequent dismissal of   the dispute in relation to these topics, according to article 487, item  III, sub-item “a” of the Civil Procedure   Code/2015; b) Ratification of the Preliminary Commitment Agreement signed by   the parties on  April 5, 2017,   with the consequent dismissal of the dispute in relation to items 3.3 and   3.4, on grounds of article 487, item    III, sub-item “b” of the Code of Civil Procedure.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
5) Granting the request for injunctive relief to the cultural   environment (4.1, item “e” and final requests II and IV), as below: 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
a) Considering that the party that caused the damage cannot be left   with the sole responsibility for diagnosing the extent of its liability,   Plaintiffs and the Amici Curiae request that defendant be ordered to present   in court a full diagnosis of the damage to the cultural environment,   mentioning: a) the methodology for developing the diagnosis, including with   regard to the participation of the population; b) the inclusion of the   uncontroversial damage mentioned in this case record; c) analysis of all other   damage already pointed out by the parties; d) compliance with the attached   reports, produced by the MPMG and the technical advisors and by the State of   Minas Gerais, addressing in the diagnosis all the damage mentioned therein;   e) 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

108

 

	
 
    	
 
    	
 
    	
 
    	
consultation and approval of all instances of cultural heritage   protection according to competence (municipal councils of cultural   heritage, IEPHA, IPHAN, CECAV etc.); 
    	
 
    	
 
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) With the insertion in the record, a request is made to submit the   diagnosis to the parties, including
   advisors, for examination;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) In the event of a controversy, an evaluation of the diagnosis by   the CTC-UFMG is requested, to check its adequacy and sufficiency;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
d) after completion and approval of the diagnosis by all competent   entities, including the parties, the defendant be ordered to prepare, obtain   approval by all competent cultural protection agencies (federal, state and   municipal, according to the protection level of the asset), and submission to   this court of plans for the global recovery of the damage - contemplating the   damage contained in the diagnosis approved by the parties and the court -   with presentation of: (I) program for restoration of the tangible   heritage assets, including archeological and speleological, that can be   restored, according to the request for injunctive relief 4.1, “e”, I,   and final requests II and IV, item “c.1”; (II) program to safeguard the   intangible heritage of all the affected municipalities, according to the injunctive   relief  4.1, “e”, II and final   requests II and IV, item “a”, “b”, “c.1”; (III) program to reestablish   the tourist and landscape heritage, with requalification of the affected   sites, according to injunctive relief 4.1, “e”, III and IV, and final requests   II and final request IV, item “c.1”; (IV) compensation/indemnity plans   for damage to the cultural environment irreparable by restoration or   safeguard measures.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

109

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
e) that: e.1) the preparation of the plans and programs, as well as   their performance, be
   fully monitored by multidisciplinary technical teams, with Annotation of   Technical Responsibility; e.2) include all the damage listed in the diagnosis   (including the damage caused in the second wave, based on works performed by   defendant for the recovery and/or mitigation of the damage originally caused;   and the damage caused to traditional communities that are not within the   territorial limit initially established for the payment of emergency aid);   e.3) respect the legislation in force and contemplate the adoption of the   best available techniques, containing short, medium, and long term targets   and objectives, as well as performed schedules to be strictly complied with;   e.4) be submitted for approval and monitored by the competent public   agencies, with defendant making all the adjustments required by them,   including in relation to execution schedules, and prepare reports of   compliance, on monthly basis or within shorter periods, as required by the   competent agencies; e.5) defendant ensure the social participation in the   adequacy of the prepared plans/programs; e.6) the right to information be   ensured, providing this case record and an electronic media with all   information about the prepared plans/programs, as well as about their   execution, within thirty (30) days. (Requests for Interlocutory Relief 6 and 7);   e.7) the plans and programs must take into consideration the information,   surveys, assumptions and recommendations contained in the reports produced by   MPMG and by the Technical Advisors Aedas, Guaicuy and Nacab (attached);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
f) that defendant be ordered to present proof in the case record of   compliance with the measures required above, inserting copies of plans and   programs, together with receipts and resolutions of the competent agencies,   within ten (10) days from the date of the acts;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
g) an order for assessment of the plans by CTC-UFMG, to check their   adequacy and sufficiency.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
h) lastly, that defendant submit evidence of the measures provided for   in the duly approved plans and
   programs, audited by company AECOM and 
   information thereof in the case record; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

110

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
6) an order for the defendant to prepare a detailed diagnosis of all   environmental damage, including cultural and tourist heritage, housing and   urban planning, caused by the collapse of dams B-I, B-IV_A, ensuring the   identification of intercurrent and irreparable damages, as well as their   quantification, for environmental compensation purposes. The diagnosis in   question must meet all the specifications and recommendations issued by the   competent environmental bodies; a) Alternatively, that such diagnosis be   prepared by the Technical Committee of the UFMG, in a consolidated form based   on the 67 calls already issued and on new calls to be issued according to the   requests in this statement, also in a manner allowing the quantification of   intercurrent and irreparable damage and meeting all specifications and   determinations of the applicable environmental bodies; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
7) that the CTC-UFMG quantify the irreparable and intercurrent   damages, for purposes of environmental remediation and compensation;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
8) that defendant be ordered to expressly state in this lawsuit all   the plans/actions it is developing for environmental remediation/   compensation, informing on what account the remediation is intended to be   made. It is requested that all plans/actions be submitted to the technical   audit and the court-appointed expert for review; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
11) That defendant be ordered to evidence the actions taken to   mitigate and recover the socio-environmental damage already identified by the   company; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
1. The upholding of the effects of the Administrative Acts in the   injunctive relief in the context of the present case (case no. 5000053-
   16.2019.8.13.0090), as the facts justifying the measure persist; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
2. The extension of the effects of the Administrative Act in the   injunctive relief in the context of the present case (case no. 5000053-
   16.2019.8.13.0090) to all affected municipalities alongside the Paraopeba   River,
   as the facts justifying the measure not only persist but have now spread out   through the entire Paraopeba River basin;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

111

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.8. Contemplate the option for individual or collective resettlement,   for the
   affected persons or communities, ensuring conditions better than,
   or equal to, the previous situation;
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
7. Determine that Defendant fund the engagement of persons   (individuals or legal entities), for the execution of plans, projects and   actions, including emergency ones, created and executed in the scope of the   Social and Economic Diagnosis and the Plan for Full Remediation of the   Damage, through the following criteria: 7.1. act according to the assumption   centered on the suffering of the affected persons, ensuring them informed   participation, by means of their committees and respective independent   technical advisors; 7.2. the absence of any connection with Defendant, which   would allow it to have autonomy to act in the terms of the work plan it   prepared; 7.3. participation of the affected persons in the preparation of   the work plan, subject to the peculiar aspects of each community and the   extent, intensity and specific aspects of the damage suffered by the   respective communities, as well as situations of social vulnerability,   including on-site visits and activities, which work plan shall be inserted in   the case record; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
14.4. provide other resources, services or materials necessary to   ensure the
   subsistence of the affected persons, families, and communities (such as
   medications, repellents, medical supplies, transportation, food, equipment or   supplies indispensable for the reestablishment of the 
   productive activities) requested by them, collectively or individually,   without prejudice to
   those that may be determined subsequently, in the phase of provisional   fulfillment of
   the decision; 
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
1) the immediate judgment - by partial decision on the merits - of the   following claims, with an order for defendant to pay: a)   indemnity/compensation for collective moral damages and social damages, in   the amount of twenty-eight billion, fifteen million, six hundred and   sixty-seven thousand, one hundred and fifty-seven reais and forty cents 
   (BRL 28,015,667,157.40);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    

 

112

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
b) Indemnity/compensation for economic damages suffered by the State   of Minas Gerais, by funding the following projects, in the amount of
   BRL 26,680,100,000.00, related to the programs that are duly 
   detailed in the schedule called “Analysis of the effects of the collapse of   Vale S/A’s dams in Brumadinho and its effects in the State of Minas Gerais” -   4. Proposals from the State Government.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
c) Compensation for the damage caused to “Berros II” archeological   site, in an amount not less than three hundred and sixty-one thousand, two   hundred and fifty reais (BRL 361,250.00), as stated in item 4.4.2.II, to be   deposited to the Fund for Natural Rights of the Prosecution Office (FUNEMP),   without prejudice to the measures that may be required by IPHAN.
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
9) evidentiary expansion regarding the following topics: a) Submission   to the UFMG Technical Committee and/or opening of calls regarding the topics   presented in item 3.1.5 of this petition; b) Expansion of calls 3, 7, 33, 35   and 36, 39, 55 and 60, so that they also contemplate socio economic aspects   of the municipalities in Region 5 (São Gonçalo do Abaeté, Felixlândia, Morada   Nova de Minas, Biquinhas, Paineiras, Martinho Campos, Abaeté, and Três   Marias);
    	
 
    	
Dismissal with prejudice - Civil Procedure Code - CPC, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.3. identify social groups or affected people who need immediate
   receipt of the indemnity advances/other emergency
   payments; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.4. identify, assess and evaluate the entire social and 
   economic damage caused by the disaster to the affected persons and social   groups and 
   communities, in all their dimensions, extent, and intensity,
   with the exception of the jurisdiction of the Labor Courts; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.5. act according to the assumption centered on the suffering of the   affected 
   persons, ensuring them the informed participation in all stages of the
   Social and Economic Diagnosis and the Plan for Full Remediation of the   Damage, through their commissions and respective independent technical   advisors; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    

 

113

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
6.6. prepare the plans, projects, and actions required for the full   redress
   of damage: 6.6.1. pecuniary (incidental damage and loss of profits), pain and   suffering and disfigurement damage to all affected persons, individually   considered; 6.6.2. pecuniary, pain and suffering, and non-pecuniary damage of   all affected social groups, communities and all other collectivities; 6.6.3.   pecuniary, pain and suffering, non-pecuniary and social damage resulting from   the disaster, in relation to persons that cannot be determined; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
4. That Defendant, except for the jurisdiction of the Labor Court, be   order to make full redress of the social and economic damage resulting from   the disaster,
   as explained in the complaint, through plans, projects, and actions,
   including emergency ones, created and executed in the scope of the Social and   Economic Diagnosis and
   Plan for Full Redress of the Damage, which according to the request
   number 6, of item 7.1., will identify, assess, and evaluate the damage in 
   all of its dimensions, extent and intensity: a. pecuniary (e.g., incidental   damage, loss of profits, loss of a chance) and non-pecuniary (e.g., pain and   suffering and disfigurement) damage of all the affected persons, individually   considered;
   b. pecuniary and non-pecuniary (e.g. collective moral damage) of all affected   social groups, communities and other collectivities, whether determined or   determinable; c. pecuniary and non-pecuniary (e.g. compensatory and punitive   social damages) arising from the disaster, referring to those who cannot be   determined; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
10) Opening of new calls by the CTC-UFMG on individual moral damage,   damage to private property, right to come and go, socio environmental damage,   access to water, food security, rural production, economic chains,   non-pecuniary damage, health, impacts on public policies, and perpetuations   of violations, encompassing all municipalities and communities that could   already be identified as affected; 
    	
 
    	
Dismissed in part with prejudice - Civil Procedure Code, article   487, III, b)
    

 

114

 

	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
14.6 without prejudice, the affected parties be authorized to proceed   with the judicial liquidation
   of the amounts or, in the event of not being provided with an evidentiary   documentation plan, that such situations be expressly protected within the   plan to be prepared according to item 6.3 of the requests. Due highlight is   given to the terms of article 516, sole paragraph, of the Civil Procedure Code   and precedents of the STJ (Third Panel, Appeal to the Superior Court of   Justice - RESP 1.098.24/GO, Rapporteur Justice NANCY ANDRIGHI, unanimous   decision, DJe of 10/28/2010), which allows that the liquidation not be   concentrated in a single court, as the creditor of a collective negotiable   instrument may elect to propose its liquidation in the most convenient court;   
    	
 
    	
Maintenance
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
5. It is also requested that the detailing of the ways to fulfill   these
   obligations on account of homogeneous individual rights, be defined in the
   judgment enforcement phase, pursuant to article 297, sole paragraph, and   article 536, 
   both of the Civil Procedure Code. 
    	
 
    	
Maintenance
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Amendment
    	
 
    	
4. Acknowledgment of the reversal of the burden of proof, in   accordance with STJ Precedent 618,
   with organization of the case, as well as acknowledgment of the duty
   to fund the expert investigations and the disclosure of all relevant   information; 
    	
 
    	
N.A.
    
	
5087481-40.2019.8.13.0024
    	
 
    	
Collective Damage
    	
 
    	
12) Reversal of the burden of proof regarding the knowledge activities   related to the definition of the amount due, of the holders of rights and the   damage occurred, imposing on defendant the duty to discharge itself of such   burden when the plaintiffs’ assertions are supported by elements of   information or result from logical conclusions from ordinary observations; 
    	
 
    	
N.A.
    

 

115

 

SCHEDULE VIII - AMOUNTS INDICATED BY VALE AS EXPENSES ALREADY INCURRED TO REDRESS THE DAMAGE

 

	
Line Names
    	
 
    	
2019
    	
 
    	
2020
    	
 
    	
Subtotal Expenses 
   [illegible]
    	
 
    
	
Works and services
    	
 
    	
1,798,016,467.14
    	
 
    	
793,363,957.35
    	
 
    	
2,591,380,424.49
    	
 
    
	
Tailings   Containment
    	
 
    	
1,300,806,743.53
    	
 
    	
75,747,623.06
    	
 
    	
1,376,554,366.59
    	
 
    
	
Tailings Removal
    	
 
    	
352,311,298.51
    	
 
    	
507,077,536.40
    	
 
    	
859,388,834.91
    	
 
    
	
Infrastructure
    	
 
    	
144,898,425.10
    	
 
    	
210,538,797.89
    	
 
    	
355,437,222.99
    	
 
    
	
Works and technical   works for
    	
 
    	
399,398,820.52
    	
 
    	
1,000,553,079.26
    	
 
    	
1,399,951,899.78
    	
 
    
	
Socio environmental
    	
 
    	
313,865,405.99
    	
 
    	
834,651,897.32
    	
 
    	
1,148,517,303.31
    	
 
    
	
Social
    	
 
    	
55,372,447.92
    	
 
    	
126,979,252.20
    	
 
    	
182,351,700.12
    	
 
    
	
Socio economic   remediation and compensation
    	
 
    	
30,160,966.61
    	
 
    	
38,921,929.74
    	
 
    	
69,082,896.35
    	
 
    
	
Full support to   affected persons
    	
 
    	
82,639,053.98
    	
 
    	
124,816,861.23
    	
 
    	
207,455,915.21
    	
 
    
	
Water Supply
    	
 
    	
58,568,819.42
    	
 
    	
98,927,762.09
    	
 
    	
157,496,581.51
    	
 
    
	
Housing
    	
 
    	
17,368,235.85
    	
 
    	
23,570,619.22
    	
 
    	
40,938,855.07
    	
 
    
	
Logistics
    	
 
    	
6,701,998.71
    	
 
    	
2,318,479.92
    	
 
    	
9,020,478.63
    	
 
    
	
Donations and other   TACs/TCs
    	
 
    	
123,174,904.59
    	
 
    	
70,620,528.53
    	
 
    	
193,795,433.12
    	
 
    
	
Other Voluntary   Investments
    	
 
    	
93,748,768.28
    	
 
    	
42,638,394.34
    	
 
    	
136,387,162.62
    	
 
    
	
Other TACs/TCs
    	
 
    	
29,426,136.31
    	
 
    	
27,982,134.19
    	
 
    	
57,408,270.50
    	
 
    
	
Subtotal   Remediation Expenses
    	
 
    	
2,403,229,246.23
    	
 
    	
1,989,354,426.37
    	
 
    	
4,392,583,672.60
    	
 
    
	
Emergency Aid   Payment
    	
 
    	
1,124,511,707.89
    	
 
    	
649,959,865.11
    	
 
    	
1,774,471,573.00
    	
 
    
	
Reimbursement   already made to the Government of Minas Gerais
    	
 
    	
 
    	
 
    	
110,051,950.00
    	
 
    	
110,051,950.00
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
6,277,107,195.00
    	
 
    

 

116

 

Source: VALE

 

SCHEDULE IX - REFERENCE LIST OF IRREPARABLE ENVIRONMENTAL DAMAGE AND LIABILITIES

 

	
DRIVING ASPECTS
    	
 
    	
IMPACTS
    
	
Dragging and disposal of tailings; Transportation of sediments, tailings,   wastes and/or liquid effluents
    	
 
    	
Increased demand for underground water
    
	
Transportation of sediments, tailings, wastes and/or liquid   effluents Dragging and disposal of tailings;
    	
 
    	
Change in Sediment Quality
    
	
Dragging and disposal of tailings; Transportation of sediments,   tailings, wastes and/or liquid effluents
    	
 
    	
Loss of Ichthyofauna individuals
    
	
Transportation of sediments, tailings, wastes and/or liquid   effluents Dragging and disposal of tailings; Extreme rainfall 2019/2020 and   floods of Paraopeba River
    	
 
    	
Increased Toxicity Effects and Bioaccumulation in Water Biota
    
	
Dragging and disposal of tailings;
    	
 
    	
Loss of Flora individuals
    
	
Dragging and disposal of tailings;
    	
 
    	
Loss of endangered and legally protected flora individuals
    
	
Dragging and disposal of tailings;
    	
 
    	
Loss of seed bank
    
	
Dragging and disposal of tailings;
    	
 
    	
Loss of wildlife individuals
    
	
Dragging and disposal of tailings;
    	
 
    	
Loss of domestic fauna individuals
    
	
Dragging and disposal of tailings; Extreme rainfall 2019/2020   and floods of Paraopeba River Transportation of sediments, tailings, wastes   and/or liquid effluents
    	
 
    	
Toxicity Effects and Bioaccumulation in Wildlife individuals
    

 

117

 

SCHEDULE X - TERM OF REFERENCE OF THE AUDIT SERVICE

 

SUBJECT MATTER

 

1.1       Engagement by Vale of legal entity(ies) to provide INDEPENDENT AUDIT services to COVENANTORS, for technical and financial follow-up on the full socio economic and socio environmental remediation actions to be performed by VALE in compliance with this Settlement, and performance of audit to check the implementation of the plans, projects, actions and programs defined and approved by the competent authorities, with issuance of a conclusive opinion as to the achievement of the delivery milestones, indicators and/or objectively defined standards.

 

1.2       As to the obligations to pay listed in Schedules I.1 and I.2, the Audit will support the COVENANTORS in analyzing the financial execution, implementation and expected deliveries.

 

1.3       For performance of the services proposed in this TERM OF REFERENCE, the option was to divide the audit services in 3 parts, which may or may not be performed by the same company, namely:

 

1.3.1                AUDIT SERVICE FOR VALE’S SOCIO ENVIRONMENTAL OBLIGATIONS TO DO (Schedule II.1, II.2);

 

1.3.2                AUDIT SERVICE FOR VALE’S SOCIO ECONOMIC OBLIGATIONS TO DO (Schedule I.3 and I.4);

 

1.3.3                AUDIT SERVICE FOR VALE’S OBLIGATIONS TO PAY REGARDING THE DEMAND PROJECTS OF THE AFFECTED COMMUNITIES AND THE INCOME TRANSFER PROGRAM (Schedule I.1 and I.2).

 

2                 DESCRIPTION OF THE AUDIT SCOPE AND SERVICES

 

2.1       The Audit for Vale’s socio environmental obligations to do (Schedule II.1 and II.2) shall:

 

2.1.1                Subject to the provisions of the Settlement, especially in clauses 6.5 and 6.6, analyze the detailing of the projects performed by Vale S.A, assessing scopes, objectives, expected results, indicators, targets, physical execution schedule, risks and detailing of the financial disbursement schedule, technical suitability, with the issuance of technical reports to the Covenantors, for purposes of providing support to the order to start the execution of the projects. Additionally, regarding Schedule II.2, follow up and analyze the financial adequacy.

 

2.1.2     Follow up the projects, programs, and actions in order to verify their proper implementation, as well as issue partial and final reports regarding the completion of actions/projects/programs and compliance with the indicators, delivery milestones and/or standards objectively defined in the plans/projects/actions approved by the competent authorities and as signed in the settlement.

 

2.1.3     Follow up the execution according to the physical and financial execution schedule.

 

118

 

2.1.4                Evaluate any difference between the budgeted amount and the actual financial execution, checking whether there was any element of mismanagement that caused the increase or if it is a necessary adjustment in the scope upon implementation;

 

2.1.5     Prepare and issue periodic reports to the Covenantors, in the frequency and according to routines established in the Governance Chapters of the respective Plans;

 

2.1.6     Make periodical evaluations by issuing monthly reports according to item 6 of the Settlement, of the execution and the results achieved by each project and program, considering the goals, indicators, and objectives defined in each Program and Project, and their respective indicators, including on-site verification, if necessary, of the expected effects and results.

 

2.1.7     Provide and issue monthly Audit presentations and reports as established in the external Governance of the Plan, containing: Progress of the projects and programs; Adherence to the execution schedule; Conformity of the projects, studies, works, actions, activities and planning to the Brazilian standards; Adherence to the criteria defined in the programs and projects; Fulfillment of the defined goals and quality standards;

 

2.1.8     Provide an online tool for inquiries on the progress of the services provided;

 

2.1.9     Assess and verify compliance with macro indicators established in each project and program defined according to the settlement and approved by the competent authorities;

 

2.1.10   For the projects and programs in the scope of Schedule II.2, the measurement and verification of compliance with macro indicators will only be made after the detailing of this package of projects, with the establishment of goals, objectives, and result indicators, duly analyzed by the competent bodies;

 

2.1.11   With the follow-up on, and verification of, the completion of the projects and programs according to their schedules, issue a conclusive report/opinion to the COVENANTORS, certifying the deliveries to their respective responsible parties, as a support to the certification of the fulfillment of the goals and objectives of that scope.

 

2.2       The audit of Vale S.A.’s socio economic obligations Schedules I.3 and I.4) shall:

 

2.2.1                Analyze the detailing of projects carried out by Vale S.A, evaluating scopes, objectives, expected results, indicators, targets, physical execution schedule, risks and details of the financial disbursement schedule, as well as estimated costs for the execution of each project, suitability and technical and financial feasibility, with issuance of technical reports to Covenantors as set forth in clause 6 of the Settlement, to support the order to start execution of the projects.

 

119

 

2.2.2                Follow up the projects, programs and actions (“projects”) described in Schedules I.3 and I.4 after detailing the project by the competent parties, checking the adequacy of the implementation according to indicators, targets, schedule of physical and financial execution, as well as in relation to technical and financial feasibility, with the issuance of reports to the Covenantors on a monthly basis or other frequency, deemed more compatible with the routines and dynamics of the project implementation work and its follow-up.

 

2.2.3     Make periodical evaluations by issuing monthly reports according to item 6 of the Settlement, of the execution and the results achieved by each project and program, considering the goals, standards and/or objectives defined in each Program and Project, including on-site verification, if necessary.

 

2.2.4     Evaluate any difference between the budgeted amount and the actual financial execution, checking whether there was any element of mismanagement that caused the increase or if it is a necessary adjustment in the scope upon implementation.

 

2.2.5     Provide and issue monthly Audit presentations and reports, respectively, containing: Progress of the remediation projects and programs; Adherence to the execution schedule; Conformity of the projects, studies, works, actions, activities and planning to the Brazilian standards; Fulfillment of the defined goals and quality standards.

 

2.2.6     Provide an online tool for inquiries on the progress of the services provided.

 

2.2.7     Based on VALE’s projects, action plans and planning after the detailing process, the Audit will present the consolidated master plan with the general schedule of the Compensation and Remediation Program, containing the indicators and targets of each project contained in Schedules I.3 and I.4, to be followed up by the COVENANTORS and other interested parties.

 

2.2.8     After 180 days from the start of the audit work, the Audit shall make the following tools available to the respective competent authorities: Control portal and management of documents produced in the scope of the audit; Management Control Panel: Current vs. planned schedule; Performance indicators and targets; GIS with the location of all actions being implemented: Planned; Completed; Indicators. Information sharing panel with access control by level: Full - Authors; Restricted - General Public.

 

2.2.9     In addition to the information available on the sharing Panel, the Audit will prepare a monthly report for circulation and distribution to the General Public on the progress of the remediation and compensation actions. This report must be prepared in reader-friendly language and made available electronically.

 

2.2.10   For the Projects and Programs in the scope of Schedules I.3 and I.4, the measurement and verification of compliance with macro indicators will only be made after the detailing of this package of programs and projects, with the establishment of goals, objectives, and result indicators, duly analyzed by the competent bodies;

 

120

 

2.2.11         With the follow-up and evaluation of the completion of projects and programs according to their schedules, the COVENANTORS shall be informed to verify and certify that the goals and objectives of that scope have been met, as well as to follow up the process of transferring management and/or equipment to the rightful parties, in relation to items in Schedules I.3 and I.4.

 

2.3       The Audit on Vale’s obligations to pay regarding the demand projects of the affected communities and the income transfer program (Schedule I.1 and I.2) shall:

 

2.3.1                In preventive manner, evaluate the feasibility and adequacy of the actions and projects indicated by the communities in light of the objectives of the settlement, in order to support the approval and start-up of the projects by the Covenantors.

 

2.3.2     Follow up the financial execution as compared to the established objectives and prepared schedule;

 

2.3.3     Present risks involved in the execution of the Program/Project, as well as proposals for their mitigation;

 

2.3.4     Provide an online tool for inquiries on the progress of the services provided;

 

2.3.5     In relation to Schedule I.1, provide and issue monthly Audit presentations and reports, respectively, containing: Progress of the projects and programs; Adherence of the execution to the budget; Adherence to the execution schedule; Conformity of the projects, studies, works, actions, activities and planning to the Brazilian standards; Adherence to the assumptions defined in the programs and projects; Fulfillment of the defined goals and quality standards.

 

2.3.6     For the projects in Schedule I.1, the measurement and verification of compliance with macro indicators will only be made after the detailing of this package, with the establishment of goals, objectives, and result indicators, duly analyzed by the competent bodies. It shall also certify the completion of the projects according to the established schedules and parameters.

 

2.3.7     With regard to Schedule I.2, it will be incumbent upon the audit to certify the good standing of the registration of the program’s beneficiaries and, on a sample basis, the compliance with the necessary requirements prepared by the Covenantors for payment to the affected people.

 

2.4       Methodological requirements of the audit work for Vale S.A.’s obligations to do:

 

121

 

2.4.1                Description: SERVICE PROVIDER shall submit the proposed methodology of the audit work to the COVENANTORS to the Settlement, which shall comply with the objectives presented in this Term of Reference. A detailed document containing the team available for the project must be submitted; the technical qualification of the team in light of Vale’s socio environmental obligations to do; the work methodology, including on-site visits; the template of the reports to be produced and made available; the preparation of content to publicize the results achieved on the various platforms to be appointed by the COVENANTORS to the Settlement. The preparation of the methodology must take into account the complexity of the Socio-Environmental Remediation Plan for the Paraopeba River Basin, prepared by a company retained by Vale S.A., and the Governance items established therein. It must further follow the logics and schedule for the preparation and implementation of the Plan for the Socio-Environmental Remediation Plan for Paraopeba River Basin, the available historical series, as well as the compensation measures listed in Schedule II.2 to the Settlement. In addition, the methodology shall provide for the follow-up on, and assessment of, this detailing until performance of the socio environmental obligations, in order to certify their sufficiency as compared to the identified impacts; scope of the indicators and expected results; compliance with the established deadlines and financial adequacy in relation to the established objectives and the prepared budgets, except for schedule II.1, which is not subject to financial audit. The periodic reports to the Covenantors must inform the risks that may hinder the execution, as well as proposals for their mitigation.

 

2.4.2                Term: twenty (20) days as from execution of the agreement.

 

2.5       Methodological requirements of the audit work for Vale S.A.’s socio economic obligations to do: (Schedules I.3 and I.4):

 

122

 

2.5.1                Description: SERVICE PROVIDER shall submit the proposed methodology to the COVENANTORS to the Settlement, which shall comply with the objectives presented in this Term of Reference. A detailed document containing the team available for the project must be submitted; the qualification of the technical team in light of Vale’s socio economic obligations to do; the work methodology, including on-site visits (whenever necessary); the template of the reports to be produced and made available; the preparation of content to publicize the results achieved on the various platforms to be appointed by the COVENANTORS to the Settlement. The preparation of the methodology must take into account the complexity of the socio economic measures, subject to the relevant legislation in case of public policies and the historical data available. In addition, the methodology shall provide for the follow-up on, and assessment of, this detailing until performance of the socio economic obligations, in order to certify their sufficiency as compared to the identified impacts; scope of the indicators and expected results; compliance with the established terms and financial adequacy in relation to the project’s objectives and prepared budgets. The periodic reports to the Covenantors must inform the risks that may hinder the execution, as well as proposals for their mitigation.

 

2.5.2     Term: twenty (20) days as from execution of the agreement.

 

2.6       Methodological requirements of the audit on Vale’s obligations to pay regarding the demand projects prepared by the affected communities and the income transfer program (Schedules I.1 and I.2) shall:

 

2.6.1                Description: SERVICE PROVIDER shall submit the proposed methodology to the COVENANTORS to the SETTLEMENT, which shall comply with the objectives presented in this Term of Reference. A detailed document containing the team available for the project must be submitted; the technical qualification of the team; the work methodology, including on-site visits; the template of the reports to be produced and made available; the preparation of content to publicize the results achieved on the various platforms to be appointed by the COVENANTORS to the Settlement. The preparation of the methodology must provide for the technical assessment of the feasibility of the defined actions in relation to the schedule I.1 and the follow-up on the financial execution of the obligations, compared to the established objectives and the prepared budgets. The periodic reports to the Covenantors must inform the risks that may hinder the execution, as well as proposals for their mitigation.

 

2.6.2     Term: twenty (20) days as from execution of the agreement.

 

2.7       The SERVICE PROVIDER’s activities in its interactions with the CLIENT AND COVENANTORS TO THE SETTLEMENT, as well as in the internal development of its duties shall be based on the following guidelines:

 

123

 

2.7.1                Independence of SERVICE PROVIDER, producing technically unbiased analyses guided by the search for application of standards, best practices and national experiences for the solution of problems that may arise during execution of the Programs and Projects in the Settlement;

 

2.7.2                “Ex ante” activities as a preventive and propositional audit which anticipates potential problems related to its scope, helping find solutions and supporting the parties in the design of risk mitigation plans, formation of technical consensus, and good governance;

 

2.7.3                Presentation of analysis and conclusions supported by evidence, through technically established methodologies and measurement of indicators, performance goals, and effectiveness and quality metrics defined in the respective plans/projects/programs approved as set forth in the settlement, technical standards, and national legislation;

 

2.7.4                Careful and confidential handling of sensitive data made available by those involved in this Settlement, as the case may be;

 

2.8       SERVICE PROVIDER shall have access to the documents previously requested and related to this Settlement, local facilities and technical information that may be necessary for the effective performance of the activities described in this TERM OF REFERENCE.

 

3                 PLACE OF SERVICES PROVISION

 

3.1       The data survey, meeting or workshop activities shall be preferably provided on site, use of electronic communication means allowed, at the discretion of the COVENANTORS to the Settlement. It is incumbent upon SERVICE PROVIDER to provide its professionals with the Communication IT equipment and services for performance of the subject matter of this TERM OF REFERENCE, as well as call the necessary meetings.

 

4                 TECHNICAL QUALIFICATION

 

4.1       SERVICE PROVIDER must present a technical capacity certificate that proves its experience in auditing socio environmental and socio economic projects.

 

4.1.1                     Valid experiences for socio environmental projects are represented by services in progress or that have taken place no more than 10 years ago, with all the characteristics required in the same work:

 

4.1.1.1           Activities for at least 5 years as manager or auditor of similar programs for recovery and response to accidents and socio environmental disasters.

 

4.1.1.2           Activities as manager or auditor, in recovery programs that have a minimum budget of BRL 100 million for performance of activities related to the recovery of areas affected by environmental disasters.

 

4.1.2                     Valid experiences for socio economic projects are represented by services in progress or that have taken place at least 10 years ago, with all the characteristics required in the same work:

 

4.1.2.1           Activities for at last 5 years as manager or auditor of socio economic projects;

 

124

 

4.1.2.2           Activities as manager or auditor, in projects that have a minimum budget of BRL 100 million for performance of activities related to the recovery of areas affected by environmental disasters.

 

4.2       The certificate must be dated before the contracting is advertised.

 

4.3       SERVICE PROVIDER shall formalize to the COVENANTORS to the Settlement the team responsible for the project, composed of one chief Coordinator, which will account for the SERVICE PROVIDER, for the socio environmental measures, and a Coordinator for the socio economic measures. If there is more than one retained audit, there must be a coordinator for each axis covered by the contract (socio environmental and socio economic).

 

4.4       The SERVICE PROVIDER’S professionals must have proven experience in at least one of the following areas (technical auditing, performance auditing, financial auditing, project management).

 

4.5       After the approval of the team in charge, only the substitution of a professional by another with experience and/or qualification considered equivalent or superior will be admitted.

 

4.6       The team of professionals of the retained companies shall have at least 50% of the staff composed of senior consultants/auditors, with at least ten (10) years of experience in services similar to the subject matter of this term of reference.

 

4.7       The work coordination team must be allocated as a priority to meet the contracted demand, with dedication availability of at least 30 hours a week.

 

5                 OBLIGATIONS OF THE PARTIES

 

5.1       CLIENT’s obligations are:

 

5.1.1                     To provide information and necessary clarifications that may be requested by the SERVICE PROVIDER;

 

5.1.2                     Provide the service provider with access to information and documents necessary for the development of the services;

 

5.1.3                     To follow up, through its technical area, the execution of the services, whenever necessary;

 

5.1.4                     Inform SERVICE PROVIDER of the name(s) of employee(s) who will monitor the execution of the contracted services;

 

5.1.5                     Notify SERVICE PROVIDER of internal structural, process or organizational changes, which may influence the development of the project.

 

5.1.6                     Notify SERVICE PROVIDER of any event related to the performance of the Contract that may have a negative impact on the schedule or the expected results;

 

5.1.7                     Pay SERVICE PROVIDER according to the terms in the contract, and as approved by COVENANTORS;

 

5.1.8                     Meet the provisions of this Term of Reference.

 

5.2       The obligations of the COVENANTORS to the Settlement are:

 

125

 

5.2.1                     To provide information and necessary clarifications that may be requested by the SERVICE PROVIDER;

 

5.2.2                     Provide the SERVICE PROVIDER with access to information and documents necessary for the development of the services;

 

5.2.3                     Reject, in whole or in part, the services performed in disagreement with the requirements of the respective Project/Program and the provisions in this Term of Reference;

 

5.2.4                     Notify CLIENT of the approvals and the authorization for payment.

 

5.3       SERVICE PROVIDER’s obligations are:

 

5.3.1                     To perform the Contract in full, in a manner that the services are promptly and effectively provided, avoiding delays adversely affecting CLIENT’s needs;

 

5.3.2                     To submit to the inspection of COVENANTORS and CLIENT, through their legal representatives at any time;

 

5.3.3                     Provide CLIENT and COVENANTORS with the contact information (telephone, address, e-mail, etc.) of the persons in charge of performance of the services;

 

5.3.4                     Keep registration records updated to CLIENT, as well as the conditions and qualifications required for the contracting;

 

5.3.5                     Provide the contracted services through specialized and qualified personnel, necessary and indispensable for the full and perfect performance of the services, according to the specifications in this Term of Reference and according to the legislation in force;

 

5.3.6                     Bear any losses caused to CLIENT and/or third parties, resulting from inefficiency or irregularities by its employees, contractors or agents involved in the performance of the contract;

 

5.3.7                     Prove, at any time, the payment of taxes levied on the performance of the services rendered;

 

5.3.8                     Bear all expenses with materials, payroll, including ancillary safety equipment, food, travel and lodging expenses for its employees;

 

5.3.9                     Bear all expenses related to insurance, fees, taxes, tax levies and contributions of any nature or kind, labor and social security charges, life insurance, and social charges - including those that may be introduced, and any other charges required for the perfect performance of the subject matter of this Term of Reference;

 

5.3.10              Ensure the confidentiality of information received, produced or used, linked directly or indirectly to the subject matter of the Settlement for undetermined term, with the exception of its publication by the COVENANTORS, as required by Law;

 

5.3.11              Not to transfer or assign the CONTRACT, in whole or in part, to other companies, except upon prior and express consent of the CLIENT and COVENANTORS;

 

126

 

5.3.12              To have all the necessary material determine the data for the correct provision of the service, for each of the professionals to be assigned. Physical space is not included in the scope of this contract, nor is the provision to service provider’s technical team of consumables related to the services, such as paper, printing and office supplies, means of transportation and travel of the technical team.

 

6                 DISBURSEMENT SCHEDULE

 

6.1       Payments will be made monthly, according to the terms of the contract to be signed between the parties, subject to the established duration of the programs and projects mentioned in this Term of Reference. Thus, the commercial proposals must indicate the value for performance of each audit service established in this Term of Reference according to item 1.3, submitting a physical/financial disbursement schedule by activities X Products, and in conformity with the physical schedule of performance of the projects. It should be stressed that the duration of each service under this Term of Reference may be adjusted after each process detailing the obligations set forth in the Settlement.

 

7                 TERM

 

7.1       The term of this Contract will be established in a contract, with a duration compatible with the expected implementation of the respective schedules, up to 5 (five) years at most.  The term may be changed in view of the process detailing the obligations under the Settlement and formalization of an amendment to the Contract.

 

127

 

SCHEDULE XI - EXPERT INVESTIGATION CALLS

 

1. The calls and sub-projects correlated to the risk to human health and ecological risk (4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 25, 26, 29, 31, 32, 34, 35, 36, 37, 38, 51, 52, 53, 54, 56, 57, 61, 62, 67), shall be joined and adjusted to the specific scope of monitoring the Human and Ecological Risk Assessment, whereby the scopes and schedules shall be reassessed and adjusted for purposes of conformity with the provision in clause 3.8 et seq. of this Settlement, and presented to the Parties within forty-five (45) days, for approval within thirty (30) days.

 

2. The calls and sub-projects correlated to the individual and homogeneous individual rights (2, 3, 55, 58) will proceed as court-appointed expert investigations, with a currently delimited scope.

 

3. Calls number 1 and 60 will be kept with their current scope and expert nature, given their instrumental nature to the implementation of the Settlement.

 

4. The calls not mentioned in items 1, 2 and 3 are discontinued.

 

5. The values of the calls and sub-projects already transferred to the Fundação de Desenvolvimento da Pesquisa (FUNDEP) and all other managing institutions are incorporated into the Institution’s budget. The unexpended balance of the discontinued calls will be destined to the completion of the calls whose maintenance is provided for in this Settlement. The amounts not transferred of the discontinued calls become moot

 

128

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}]]