Document:

EX-4.2

 Exhibit 4.2 

Final Form 
 LOAN AGREEMENT 

This Loan Agreement (this “Agreement”) is made and entered into as of the
7th day of January, 2015 by and between Israel Corporation Ltd. (“IC”) and Kenon Holdings Ltd. (“Kenon”). IC and Kenon shall each be referred to as a
“Party”, and collectively, the “Parties”. 
 WHEREAS, IC intends to consummate a structural change
of the holdings of its portfolio companies, under which its holdings in certain of its portfolio companies, including (subject to such changes or variations in the implementation of such structural change as may be executed) IC Power Limited, Zim
Integrated Shipping Services Limited, IC Green Energy Limited, Tower Semiconductor Limited and Quantum (2007) LLC, which holds 50% of the interests in Qoros Automotive Co Limited (“Qoros”), will be transferred to Kenon, and IC will
distribute, inter alia, the shares in Kenon to its then-current shareholders, whereupon, inter alia, Kenon shall cease to be a subsidiary of IC (the “Change of Holdings”); and 

WHEREAS, pursuant to Guarantee Contracts entered into between IC and Chery Automobile Co. Ltd. (“Chery”) dated
July 23 2012 and August 2014 (subject to Section 2.2.1 hereto) (the “Qoros Guarantees”), IC has provided certain guarantees to Chery in respect of up to 50% of the obligations guaranteed by Chery pursuant to (i) a Guarantee
Deed between Chery and China Construction Bank Co., LTD, Suzhou Branch as agent for a syndicate of Chinese banks and (ii) a counter-guarantee contract between Chery and Changshu Port Development and Construction Co. Ltd., in each case of (i) and
(ii) provided in respect of the indebtedness of Qoros under that Syndicated Renminbi/US Dollars Agreement for Fixed Assets Investment with an Aggregate Equivalent Amount of RMB Three Billion dated July 23 2012, between Qoros and said syndicate
of Chinese banks (the “Qoros Loan Agreement”); and 
 WHEREAS, Kenon has requested IC to make available to it,
subject to and concurrently with the consummation of the Change of Holdings, one or more loans, and IC is willing to provide such loans to Kenon, subject to and in accordance with the terms and conditions set forth in this Agreement; 

NOW, THEREFORE, the Parties hereby agree as follows:  
  

	1.	Interpretation; Definitions 

  

	 	1.1.	The preamble to this Agreement forms an integral and a binding part of this Agreement. 

  

	 	1.2.	In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement (including the preamble and any schedules, exhibits or appendices hereto) the following terms shall have the meanings
given to them in this Section: 

  

	 	1.2.1.	“Availability Period” means the period commencing on the Effective Date and ending on the fifth anniversary thereof, or if earlier, the Loans Repayment Date, and with respect to any unutilized amount of
the Loan Facility cancelled in accordance with this Agreement, the date that such cancellation becomes effective;  

	 	1.2.2.	“Business Day” means a day on which commercial banks are open for general business in Israel and Singapore, except in relation to any date for the transfer, payment or purchase of USD, a day (other than
a Saturday or Sunday) which is also a day on which commercial banks are open for general business, including FX dealings and effecting delivery of USD, in accordance with the market practice on the London interbank market;  

 

	 	1.2.3.	“Commitment Fee” means a fee calculated at a rate equal to 2.1% per annum of any unutilized amount of the Loan Facility, accrued and payable in accordance with this Agreement;  

 

	 	1.2.4.	“Default” means an Event of Default or any event or circumstance specified in Section 8 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination or any combination of any of the foregoing) be an Event of Default;  

  

	 	1.2.5.	“Distributions” shall mean any dividends or other similar payment (in cash or in-kind) on, or in respect of, any share capital, or any repayment, prepayment or payment (in cash or in-kind) of the
principal of, or interest (whether or not capitalized) or any other amount on, or in respect of any shareholders loans (including by way of set-off);  

  

	 	1.2.6.	“Dollars”, “USD” and “US$” mean the lawful currency of the United States of America;  

 

	 	1.2.7.	“Effective Date” means the date of the closing of the Change of Holdings as shall be designated by IC and specified in its public filings to the stock exchange; 

 

	 	1.2.8.	“Final Repayment Date” means the date falling 10 (ten) years from the Effective Date (or if such day is not a Business Day, the next following Business Day);  

 

	 	1.2.9.	“Financial Indebtedness” means, at any time, Kenon’s indebtedness in respect of or pursuant to: (a) moneys borrowed or raised in any other way having the commercial effect of borrowing or receiving
other financing, credit facilities (whether or not utilized), including principal, interest and any and all fees and other amounts owing in respect thereof; (b) moneys raised by the sale of receivables, invoices, bills or notes or other financial
assets provided that recourse may be had to the vendor in the event of non-payment of such receivables, invoices, bills or financial assets when due; (c) the net sum of the termination values of derivative transactions entered into in connection
with protection against or benefit from fluctuation in any rate or price payable (taking into account only the marked to market value); and (d) the amount of any liability in respect of any guarantee, indemnity or other instrument to assure payment
of, or against loss in respect of non-payment of, any indebtedness referred to in (a), (b) and (c) above (without double counting). The foregoing shall be calculated by reference to the data appearing in the most recent unconsolidated financial
statements of Kenon, including, for the avoidance of doubt, any amount owing under this Agreement (including, for the avoidance of doubt, (A) the Loan Facility, the outstanding Loans, interest related thereto (including interest at the Default Rate,
if any), any Commitment Fee Cancellation Accrual Amount outstanding and 

  
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outstanding Commitment Fees and (B) the aggregate liability amount for which IC would be liable under the Qoros Guarantees (including, without limitation, amounts in respect of loans, interest
and any fees and expenses) and including the outstanding aggregate Qoros Guarantee Liability Amount (without double counting), provided that, for the purposes hereof, any amount of the Qoros Guarantee Liability Amount outstanding at
that time shall be calculated at 100% and any amount of the liability under the Qoros Guarantees outstanding at that time for which no IC Guarantee Demand has been issued in accordance with this Agreement shall be calculated at 50%, in each case
less any amounts repaid or prepaid in accordance with this Agreement, any unutilized amount of the Loan Facility cancelled in accordance with this Agreement and any amount of the Qoros Guarantees that IC has confirmed to Kenon in writing has been
either irrevocably cancelled or recovered, as the case may be). 

  

	 	1.2.10.	“Holdings Value” means, on any day, the product of (i) the average official closing price of a share of IC Power on the New York Stock Exchange (or, if such shares cease to be listed thereon, on the
relevant exchange on which they are listed) (expressed in US$) during the 5 (five) most recent exchange business days prior to the relevant date, multiplied by (ii) the total number of shares of IC Power held by Kenon. 

 

	 	1.2.11.	“IC Power” means IC Power Ltd., a company organized under the laws of the State of Israel, with company registration number 51-437498-2;  

 

	 	1.2.12.	“ICP Interests” means (i) shares of IC Power and any other securities or rights convertible into, exercisable for or otherwise conferring the right to acquire, shares of IC Power, in each case on a
fully diluted basis, and (ii) any other means of control (within the meaning of that term under the Israeli Securities Law, 1968) in IC Power, either directly or indirectly, by virtue of the holding of any security, by agreement or otherwise.

  

	 	1.2.13.	“Interest Capitalization Period” means a period commencing on the Effective Date and ending on the fifth anniversary of the Effective Date (or if such day is not a Business Day, the next following
Business Day);  

  

	 	1.2.14.	“Interest Period” means (i) the period from the date on which a Loan is provided by IC or a Qoros Guarantee Liability Amount is demanded by IC pursuant to Section 2.2, as applicable, to (and excluding)
the next following anniversary of the Effective Date (or if such day is not a Business Day, the next following Business Day), (ii) each successive period of 12 months thereafter (each such period ending on a date which is an anniversary of the
Effective Date, or if such day is not a Business Day, the next following Business Day), provided that the last such period shall end on the Final Repayment Date; 

 

	 	1.2.15.	“Interest Rate” means a rate equal to LIBOR plus 6% per annum (calculated in accordance with actual/360);  

  

	 	1.2.16.	“IPO” means, in respect of IC Power, an initial public offering of its shares or equity securities convertible into shares, or the listing thereof for trading, as the case may be, on any recognized
exchange in any jurisdiction; 

  
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	 	1.2.17.	“LIBOR” means the London interbank offered rate administered by the ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for USD and for a period
equal to the Interest Period for that Loan or the Qoros Guarantee Liability Amount (as applicable) as of the date which falls two (2) business days on the relevant interbank market prior to the commencement date of each Interest Period, as displayed
on the relevant pages of any internationally recognized information service which publishes that rate from time to time (such as Reuters or Bloomberg) reasonably selected by IC, or if no rate is available on such information service, a rate quoted
to IC at its request by a bank operating in the London interbank market. The Interest Rate so determined will apply for the period from the commencement of the relevant Interest Period until its expiration. 

 

	 	1.2.18.	“Loan Facility Cap Amount” means an amount equal to (i) US$200,000,000 (two hundred million US Dollars), provided that for the purpose of determining the Loan Facility Cap Amount any
amounts capitalized to or accrued on any Loan pursuant to this Agreement shall be disregarded;  

  

	 	1.2.19.	“Loans Repayment Date” means the date falling on the last day of the Interest Capitalization Period, as such date may be extended in accordance with Section 4.1 (and if such day is not a Business Day,
the next following Business Day), provided that, notwithstanding anything to the contrary in this Agreement (including the provisions of Section 4.1), if an IPO is consummated at any time prior to the date which is then designated as
the Loans Repayment Date, then the Loans Repayment Date shall automatically be extended or shortened, as applicable, to the date which is the earlier of (i) the date falling 18 months after the closing date of the IPO, and (ii) the Final Repayment
Date.  

  

	 	1.2.20.	“Net Debt” shall mean, at any time, the aggregate amount of all obligations of Kenon for or in respect of Financial Indebtedness at that time, less cash, cash equivalents and short-term
deposits of Kenon, all as appearing in the most recent unconsolidated financial statements of Kenon.  

  

	 	1.3.	The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

 

	 	1.4.	All references in this Agreement to Sections and annexes or schedules shall, unless otherwise provided, refer to Sections hereof and to annexes or schedules attached hereto. The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. 

 

	 	1.5.	Unless the context otherwise requires, references to (or to any specified provision of) this Agreement or any other document shall be construed as references to that provision or that document as in force for the time
being and as amended, supplemented, modified or replaced in accordance with the terms thereof. 

  

	 	1.6.	References to a law or to a specific section thereof shall be construed as a reference to such law, including any rules or regulations promulgated thereunder, or section, as the same may have been, or may from time to
time be, amended, succeeded or re-enacted. 

  

	 	1.7.	The obligations of IC under this Agreement shall be effective as of the Effective Date. 

  
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	2.	The Loan Facility and Qoros Guarantee Indemnity  

  

	 	2.1.	The Loan Facility. 

  

	 	2.1.1.	In reliance of the representations and undertakings of Kenon hereunder and subject to the terms and conditions of this Agreement, IC makes available to Kenon a USD facility in an aggregate amount not to exceed the Loan
Facility Cap Amount (the “Loan Facility”).  

  

	 	2.1.2.	Subject to the terms and conditions of this Agreement (including the conditions set out in Section 2.1.3), Kenon may, from time to time during the Availability Period, request to drawdown one or more loan(s) (each, a
“Loan”) under the Loan Facility, by submitting to IC, not less than 10 (ten) Business Days (or such shorter period as IC may in its absolute discretion agree) before any Loan is requested to be made, a notice substantially in the
form attached hereto as Schedule 1 (the “Drawdown Notice”).  

  

	 	2.1.3.	Kenon may submit a Drawdown Notice, which will not be regarded as having been duly completed unless all of the following conditions are satisfied - 

 

	 	(a)	the date specified in the Drawdown Notice for the drawdown of the Loan falls within the Availability Period; and 

  

	 	(b)	Kenon has created the relevant pledges in accordance with Section 7.3.1, and has delivered duly executed security documents in accordance with Section 7.3.1 in form and substance agreed between the Parties and
satisfactory to IC together with evidence agreed between the Parties and satisfactory to IC that each pledge granted pursuant hereto (or any amendment thereto, as applicable) has been duly filed for registration with the applicable public registry
in all relevant jurisdictions. 

  

	 	2.1.4.	Subject to the terms and conditions of this Agreement, IC shall provide the Loan requested by Kenon in a Drawdown Notice in accordance with this Agreement, by bank transfer to Kenon’s bank account in accordance
with transfer instructions to be specified in the Drawdown Notice. 

  

	 	2.1.5.	Kenon may apply all amounts borrowed by it under the Loan Facility towards its general corporate purposes or any other purpose approved by its directors. IC shall not be bound or responsible to monitor or verify the
application of any amount borrowed pursuant to this Agreement. 

  

	 	2.1.6.	Kenon may request to cancel any unutilized amount of the Loan Facility by submitting a written notice to IC, not less than 5 (five) Business Days (or such shorter period as IC may in its absolute discretion agree)
before such cancellation is requested to be made, specifying the requested cancellation date of the Loan Facility and the unutilized amount of the Loan Facility to be cancelled, and as of such date all rights and obligations of the Parties under
this Agreement with respect to such unutilized amount of the Loan Facility. 

  
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	 	2.2.	The Qoros Guarantee Indemnity. 

  

	 	2.2.1.	IC agrees not to amend the terms of any Qoros Guarantee which would extend the duration thereof or increase the amounts for which IC may be liable under any Qoros Guarantee, without the prior written consent of Kenon.

  

	 	2.2.2.	Without derogating from the provisions of Section 2.2.1 above, Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of any restructuring, material change or amendment to the Qoros
Loan Agreement or any agreement entered into by any guarantor, credit support provider and/or by Quantum (2007) LLC in connection thereof. 

  

	 	2.2.3.	Kenon agrees and undertakes to indemnify and reimburse IC in full for any and all amounts actually paid by IC in connection with any Qoros Guarantee for any reason whatsoever together with any reasonable out-of-pocket
cost or expense (including reasonable legal fees) paid or incurred by IC in that respect, including in responding to, evaluating, negotiating or complying with any demand or requirement in respect of any of the Qoros Guarantees (the “Qoros
Guarantee Liability Amount”).  

  

	 	2.2.4.	IC shall notify Kenon in writing as soon as reasonably practicable after receiving any demand to pay any amount pursuant to any Qoros Guarantee specifying the amount demanded together with copy of the demand, and to the
extent reasonably practicable to do so shall liaise with Kenon prior to making any payment in respect of such demand, provided however that nothing herein shall limit IC nor hinder or interfere with the performance of its obligations
under law or any contract as it may determine in its sole discretion.  

  

	 	2.2.5.	Kenon shall pay any amount under the Qoros Guarantee Liability Amount following receipt of a written demand from IC (an “IC Guarantee Demand”) as follows: (i) if such IC Guarantee Demand is issued prior
to the Final Repayment Date, no later than the Final Repayment Date (including interest accrued thereon in accordance with this Agreement), and in case that prior to the delivery of such IC Guarantee Demand IC has declared that any or all of the
Loans and the Qoros Guarantee Liability Amount then outstanding under the Agreement be immediately due and payable prior to their specified maturity, within 14 Business Days of receipt of such IC Guarantee Demand; and (ii) if such IC Guarantee
Demand is issued on or after the Final Repayment Date (and without prejudice to the repayment obligation of Kenon in accordance with the provisions of Section 4.2), within 14 Business Days of receipt of such IC Guarantee Demand. For the avoidance of
doubt, however without prejudice to the indemnity undertakings of Kenon hereunder and without imposing on IC any duty or obligation to mitigate or eliminate the effect of any circumstances resulting in an amount becoming payable by it or to take any
action to recover any amount, any amount actually recovered by IC from any third party (including Qoros or Chery) in respect of amounts paid by it in connection with the Qoros Guarantees shall be reduced from the Qoros Guarantee Liability Amount
(that is, there shall be no double recovery). 

  
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	 	2.2.6.	The indemnity undertakings of Kenon hereunder shall continue in full force and effect and be binding upon Kenon (and its successors, including liquidators, judicial managers, administrators and trustees) until the
expiration of the Qoros Guarantees and the final and irrevocable discharge and/or termination of any and all obligations and liabilities of IC or that IC may incur in connection with the Qoros Guarantees (the “Qoros Guarantee Liability
Termination”). For avoidance of doubt, the indemnity undertakings shall not be considered satisfied by any intermediate payment or recovery of all or any amount under this Agreement or any settlement of account in respect thereof, and shall
not be prejudiced and the liability of Kenon shall not be affected, as a consequence of an acceleration or declaration by IC of any amount due and payable prior to its specified maturity, by the pursuit or of any right or remedy available to IC or
by any invalidity, incapacity or defect in any collateral, security or other credit support or with respect to any indebtedness/liability whatsoever of any person or in any other document signed or to be signed by any person for or in connection
with any amount underlying the Qoros Guarantee Liability Amount or any part thereof.  

  

	 	2.2.7.	For the avoidance of doubt, the indemnity undertakings of Kenon hereunder shall be without prejudice to any right or remedy that IC may have against Kenon (including in connection with any breach or default (howsoever
defined) under this Agreement or under any other agreement) or against any other person, including Qoros or Chery (subject to the provisions of Section 2.2.8 below), any other agreement or under applicable law, provided that in no
event shall the availability of any other right or remedy of IC against any person affect the obligations of Kenon under this Agreement.  

  

	 	2.2.8.	Without prejudice to the foregoing, if reasonably practicable to do so and to the extent permitted by law or any relevant agreement, and subject to receipt of the consent of third parties required under such agreements,
if needed, IC shall assign to Kenon, and Kenon undertakes to assume (at Kenon’s sole expense), any and all rights (if any) of IC against Chery and Qoros in connection with the amounts to be indemnified for pursuant hereto in respect of the
Qoros Guarantee Liability Amount, and the parties shall use commercially reasonable efforts (at Kenon’s sole expense) to execute, upon written request of Kenon, any instrument reasonably necessary to evidence such assignment. Kenon undertakes
to use commercially reasonable efforts to preserve and enforce all of the rights available to it, including those assigned to it pursuant hereto, to recover any amounts paid by IC in connection with the Qoros Guarantees. Kenon further undertakes to
apply, in priority to any other amount (other than payments mandatorily preferred in accordance with applicable law) any amounts actually recovered by it from Qoros, Chery or any third party through the pursuit or enforcement of rights available to
it under law or contract, including those assigned to it by IC pursuant hereto, to pay off amounts owing to IC pursuant to the indemnity hereunder in accordance with the provisions of this Agreement. 

  
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 In the event that IC shall determine that it is impossible or inadvisable to assign any rights
it may have against Qoros or Chery in accordance with this Section 2.2.8, IC shall notify Kenon of such determination and the Parties shall consult with one another and cooperate (at Kenon’s sole expense) with regard to the pursuit and
enforcement of the rights available to IC to recover any amounts paid by IC in connection with the Qoros Guarantees. If, following such consultation between the Parties, Kenon shall notify IC that it wishes to pursue the enforcement of any such
rights, IC may (without any obligation) issue Kenon a revocable power of attorney authorizing and empowering Kenon to take action, at its sole expense, in this respect. In the event Kenon notifies IC that it does not wish to enforce such rights (or
in the event that Kenon has failed to so notify IC and IC has given Kenon a ten (10) Business Days’ notice (or such shorter notice, if IC believes that further delay may materially prejudice the pursuit and enforcement of its rights and/or its
ability to recover any amounts paid in connection with the Qoros Guarantees), IC shall be entitled (but not obligated) to do so, at Kenon’s expense. Nothing herein shall limit IC’s right to join as a party to any legal proceedings,
including without limitation where it believes that there may be a conflict of interests that may impair or adversely affect its rights or interests. Any amount actually recovered by IC from Qoros, Chery or any third party through the pursuit or
enforcement of rights available to it under law or contract shall be reduced from the Qoros Guarantee Liability Amount (that is, there shall be no double recovery). 
  

	 	2.2.9.	In no circumstances whatsoever shall IC be liable to Kenon for any action taken or not taken by it in connection with the Qoros Guarantees, or for any delay or partial performance thereof other than with respect to
willful malicious acts or omissions of IC or anyone on its behalf. Kenon may not take any proceedings against IC, any of its directors, officers, employees or anyone acting on its behalf in respect of any act or omission of any kind by any of them
in connection with the Qoros Guarantees, other than with respect to willful malicious acts or omissions. The directors, officers, employees and anyone acting on behalf of IC may rely on this Section and enforce its terms. 

 

	3.	Interest, Fees and Other Payments  

  

	 	3.1.	Commitment Fee. 

  

	 	3.1.1.	On each day a Loan is made to Kenon under the Loan Facility in accordance with this Agreement, an amount equal to the Commitment Fee accrued in respect of the amount of that Loan (but for the avoidance of doubt, not any
other unutilized portion of the Loan Facility, if any), shall be calculated for the period from the Effective Date to the drawdown date of that Loan in accordance with this Agreement, and be capitalized to that Loan on the drawdown date of that
Loan, and shall thereafter be deemed to be a Loan for all intents and purposes hereunder. 

  
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	 	3.1.2.	In the event that any portion of the Loan Facility is cancelled in accordance with this Agreement, an amount equal to the Commitment Fee accrued in respect of the unutilized portion of the Loan Facility so cancelled
shall be calculated for the period from the Effective Date to the date of cancellation of such portion of the Loan Facility in accordance with this Agreement (such amount, a “Commitment Fee Cancellation Accrual Amount”). On the last
day of the Interest Capitalization Period, the Commitment Fee in respect of any unutilized amount of the Loan Facility then remaining shall be calculated for the period from the Effective Date to (and including) that date, and shall constitute a
Commitment Fee Cancellation Accrual Amount. For avoidance of doubt, each Commitment Fee Cancellation Accrual Amount shall be deemed to be a Loan for all intents and purposes hereunder (including, without limitation, that it shall become due and
payable on the Loans Repayment Date). 

 Each Commitment Fee Cancellation Accrual Amount shall accrue interest at the Interest
Rate, calculated daily (in accordance with actual/360) from the date of cancellation of such portion of the Loan Facility to (and including) the last day of each Interest Period during the Interest Capitalization Period, and such interest shall be
capitalized to that Commitment Fee Cancellation Accrual Amount on the last day of each such Interest Period (other than the last date of the Interest Capitalization Period if such day is the Loans Repayment Date). 

 

	 	3.2.	Interest. 

  

	 	3.2.1.	The outstanding amount of each Loan and the outstanding amount of the Qoros Guarantee Liability Amount outstanding (including, in each case, interest amounts previously capitalized thereto in accordance with this
Agreement), shall bear interest at the Interest Rate, which shall be calculated in accordance with Section 3.2.2 below with respect to each Interest Period from the date of which each such Loan is provided by IC or that such amount under the Qoros
Guarantee Liability Amount is demanded by IC pursuant to Section 2.2, as applicable, and until the date of the final repayment of that Loan or the Qoros Guarantee Liability Amount, as applicable, provided that it shall not extend
beyond the Final Repayment Date. 

  

	 	3.2.2.	Interest as aforesaid in Section 3.2.1 above shall be calculated at the Interest Rate and accrue daily (in accordance with actual/360) from the date on which each such Loan is provided by IC or that amount under the
Qoros Guarantee Liability Amount is demanded by IC pursuant to Section 2.2 (or, in the case of amounts capitalized to that Loan or Qoros Guarantee Liability Amount in accordance with this Agreement, from the date on which such amount is so
capitalized thereto), as applicable, to (and including) the last day of each Interest Period during the Interest Capitalization Period, and capitalized to the relevant Loan or the Qoros Guarantee Liability Amount, as applicable, on the last day of
each such Interest Period (other than the last date of the Interest Capitalization Period if such day is the Loans Repayment Date). 

  

	 	3.2.3.	Interest on any Loan and the Qoros Guarantee Liability Amount outstanding, as applicable (including, in each case, interest amounts capitalized thereto in accordance with this Agreement), shall be calculated at the
Interest Rate, shall accrue daily (in accordance with actual/360) during each Interest Period following the Interest Capitalization Period, and shall be payable on the last day of each such Interest Period (and in any event on the Loans Repayment
Date). 

  
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	 	3.3.	Default interest. In the event that Kenon fails to pay any amount owing by it hereunder on the due date therefor (subject to any applicable grace or cure periods set forth in this Agreement), and IC has declared
any amounts accrued or outstanding under the Agreement immediately due and payable, additional interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate of 3% per annum
(the “Default Rate”). Any interest accruing at the Default Rate under this Section shall be immediately payable by Kenon upon demand by IC. 

  

	 	3.4.	Costs and expenses. Kenon shall pay to IC on demand all costs and expenses reasonably incurred by IC, including reasonable fees and expenses of IC’s legal advisors, in connection with any default or the
enforcement of, or preservation of rights under this Agreement (including with respect to the contemplation of any enforcement and preparation therefor, and the creation, perfection and preservation of any pledge granted pursuant hereto).

  

	4.	Repayment and Prepayment  

  

	 	4.1.	Extension of the Loans Repayment Date. Kenon shall have the right to notify IC, on or prior to the date which is one month prior to the then designated Loans Repayment Date (an “Extension Notice
Date”), and provided that an IPO has not been consummated on or prior to that Extension Notice Date, that the Loans Repayment Date be extended to the date which is the earlier of (i) the date falling no later than 2 years
after the date which is then designated as the Loans Repayment Date, and (ii) the Final Repayment Date. 

  

	 	4.2.	Repayment. Subject to Section 4.3, Kenon shall (i) on the Loans Repayment Date, repay to IC an amount equal to one hundred percent (100%) of the then-outstanding Loans and any Commitment Fee Cancellation Accrual
Amounts and (ii) on the Final Repayment Date, pay to IC an amount equal to one hundred percent (100%) of the Qoros Guarantee Liability Amount then outstanding, in each case including interest amounts capitalized in accordance with this Agreement,
together with any accrued interest and all other amounts owing hereunder which then remain unpaid. 

  

	 	4.3.	Prepayment. Kenon shall have the option to prepay to IC all or any part of the then outstanding Loans, Qoros Guarantee Liability Amount and Commitment Fee Cancellation Accrual Amounts without being required to
pay any make-whole or similar payments. Kenon shall deliver a notice to IC of its election to make such prepayment at least three (3) Business Days prior to the proposed prepayment date (which notice shall specify the prepayment amount and the
proposed date for prepayment which must be a Business Day). Kenon shall pay the prepayment amount specified in its notice on the proposed date for prepayment. 

  

	 	4.4.	No Reborrowing. Kenon shall not be entitled to reborrow under this Agreement any part of any Loan which is repaid or prepaid hereunder. 

  
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	5.	Payment Mechanics  

  

	 	5.1.	Payments. All payments to be made by Kenon to IC shall be made in Dollar by bank transfer to an account designated by IC (if Kenon has not received instructions regarding details of such account at least 5
Business Days prior to the relevant payment date, it shall notify IC thereof and request such instructions). 

  

	 	5.2.	No Set-Off. All payments to be made by Kenon to IC under this Agreement shall be calculated and made without (and free and clear of any deduction for) set-off or counterclaim. 

 

	 	5.3.	Taxes. 

  

	 	5.3.1.	If a deduction or withholding for or on account of tax (other than Israeli income tax of IC) from a payment under this Agreement is required by law to be made by Kenon (“Tax Deduction”), then the amount
of the payment due from Kenon shall be increased to an amount which (following such Tax Deduction) leaves an amount equal to the payment which would have been due if no such Tax Deduction had been required. 

 

	 	5.3.2.	Kenon shall make, in consultation with IC, any such Tax Deduction and any payment required in connection therewith, within the time allowed and in the minimum amount required by law, and shall deliver to IC, as soon as
reasonably practicable thereafter, evidence reasonably satisfactory to IC that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

 

	 	5.3.3.	Without derogating from the foregoing, IC and Kenon shall cooperate in good faith in completing any procedural formalities necessary for Kenon to apply (at Kenon’s cost) for authorization to make that payment
without a (or with a reduced) Tax Deduction under the Singapore-Israel Treaty for the Avoidance of Double Taxation (the “Treaty”). Such cooperation shall only extend to assisting Kenon, on a best efforts basis, with any
documentation reasonably required in order to qualify for the Treaty (including a Certificate of Residence from the Israeli tax authorities) and otherwise assist in any procedures reasonably required for Kenon in claiming the benefits under the
Treaty and to obtain authorization to make any payment with no (or with a reduced) Tax Deduction. Kenon shall timely transfer the withheld taxes to the Singapore tax authorities, and as soon as practicable thereafter shall deliver to IC all relevant
documents and information in connection therewith. 

  

	 	5.3.4.	If any payment is increased in accordance with Section 5.3.1, and IC actually receives a tax refund which is attributable to a Tax Deduction borne by Kenon under this Agreement, IC shall reimburse Kenon, within 30 days
or receipt of such tax refund, an amount equal to the lower of (i) the amount by which any payment is increased in connection with said Tax Deduction in accordance with Section 5.3.1 and (ii) the amount of the tax refund actually received by IC. IC
shall promptly notify Kenon of any tax refund obtained (if obtained) in Israel for such Tax Deduction. IC shall not be required to disclose any information relating to the administration of its tax affairs. 

  
 11 

	 	5.4.	VAT. Unless expressly stated otherwise, all amounts payable by Kenon specified in this Agreement do not include value added tax or goods and services tax, to the extent applicable under applicable law of any
jurisdiction. Kenon shall pay to IC all value added tax, if any, payable in respect of any payment to be made by Kenon under the Loan Agreement and shall bear any goods and services tax, if any, payable on any supply made by IC to Kenon under this
Agreement. 

  

	 	5.5.	Application of Payments. If IC and/or any receiver, administrator, administrative receiver, judicial manager, trustee or other similar officer, receives a payment that is insufficient to discharge all the amounts
then owed or due and payable by Kenon under this Agreement, such amount shall be applied towards the obligations of Kenon under this Agreement in the following order or in such other order as IC may deem fit (notwithstanding any appropriation made
(if made) by Kenon): 

  

	 	5.5.1.	first, in or towards payment of all expenses with respect to the collection of any amount, including any unpaid fees of any receiver, judicial manager, administrator, trustee or other similar officer, in the
amount determined by IC pursuant to this Agreement or by the relevant court, execution office or any other relevant authority; 

  

	 	5.5.2.	second, in or towards payment of any unpaid costs and expenses of IC under this Agreement; 

  

	 	5.5.3.	third, in or towards payment of any other amount owing under this Agreement to IC but unpaid, other than principal of the Loans and the Qoros Guarantee Liability Amount, in such order as IC deems fit; and

  

	 	5.5.4.	fourth, in or towards payment to IC on account of the principal of the Loans and the Qoros Guarantee Liability Amount. 

  

	6.	Representations and warranties of Kenon 

 Kenon represents and warrants to IC
(which representations will be deemed to be repeated on each day), in each case from the date of this Agreement and until all amounts owed or payable under this Agreement have been irrevocably paid in full and until the Qoros Guarantee Liability
Termination, as follows and acknowledges that IC is entering into this Agreement in full reliance thereof: 
  

	 	6.1.	Status. It is a company, duly incorporated and validly existing under the law of its jurisdiction of incorporation, and has the power to carry on its business as it is being conducted from time to time.

  

	 	6.2.	Capacity. It has the right, power, authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform its obligations under this Agreement.

  

	 	6.3.	Authorization and binding obligations. This Agreement has been authorized by all necessary corporate action on its part, has been duly executed and delivered by it through its authorized officers, and it
represents valid and binding obligations enforceable against it in accordance with its terms. 

  

	 	6.4.	Consents. No consent, approval or authorization of, exemption by, or filing with, any governmental or regulatory authority or any third party is required in connection with the execution, delivery and performance
by Kenon of this Agreement and the consummation of the transactions contemplated herein other than filing or other actions required for the perfection of the pledges and security interests under Section 7.3 hereto. 

  
 12 

	 	6.5.	Non-conflict. Its entry into, and performance by it of, this Agreement does not and will not conflict with, or result in a violation of (i) its organizational documents, (ii) any other agreement to which it is a
party, (iii) any order, judgment, award, injunction, decree, ordinance or regulation or any other restriction by which it is bound, or (iv) any authorization, consent to which it is subject. 

 

	 	6.6.	Governmental regulation. It is not subject to regulation or other legal impediment under any applicable law which may limit its ability to incur indebtedness or which may otherwise render all or any portion of
the obligations under this Agreement illegal, invalid or unenforceable. 

  

	 	6.7.	No filing or stamp taxes. It is not necessary, under the laws of Kenon’s jurisdiction of incorporation that this Agreement be filed, recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration or similar tax be paid on or in relation to this Agreement or the transactions contemplated by this Agreement other than in relation to the perfection of pledges and security interests under Section 7.3
hereto by (i) a statement containing particulars of charge in respect of the security documents to be filed and lodged with the Accounting and Corporate Regulatory Authority of Singapore, and (ii) the payment of stamp duty (which on the date hereof
is in the amount of Singapore $500) payable in Singapore in respect of the stamping of security documents to be executed in respect of such pledges and security interests. 

 

	 	6.8.	Financial statements. The financial statements of Kenon are and will be prepared in accordance with generally accepted accounting principles, including International Financial Reporting Standards, consistently
applied and truly and fairly represent the financial condition of Kenon for the relevant financial period referred to therein. 

  

	 	6.9.	Governing law and enforcement. 

  

	 	6.9.1.	The choice of the law of the state of Israel as the governing law of this Agreement and the submission by Kenon hereunder to the jurisdiction of the courts of Tel-Aviv-Jaffa, Israel will be recognized and enforced in
Singapore, except, in respect of the choice of law provisions and solely in the case of enforcement of the provisions hereof in any court in Singapore, to the extent that such court determines any such provision to be illegal or contrary to public
policy or applicable mandatory law in Singapore or that any matters of procedure including questions of set-off and counter-claim, interest chargeable on judgment debts, priorities, measure of damages, limitation of actions and submissions to the
jurisdiction of foreign courts would be governed by the laws of Singapore to the exclusion of the relevant expressed governing law. 

  

	 	6.9.2.	Any judgment obtained in the courts in Tel-Aviv-Jaffa, Israel in relation to this Agreement will be recognized in Singapore, and will be enforced in Singapore, provided it is a final and conclusive, monetary judgment
for a fixed sum (other than for the payment of taxes, a fine or penalty), and subject to the following conditions: (i) the relevant court had jurisdiction over Kenon in that Kenon was, at the time such proceeding was instituted, resident in the
jurisdiction in which such proceeding had been commenced or had submitted to the jurisdiction of the relevant court; (ii) that judgment was not obtained by fraud; (iii) the enforcement of that judgment would not be contrary to public policy of
Singapore; and (iv) the judgment had not been obtained in contravention of the principles of natural justice. 

  

	 	6.10.	Pari passu ranking. Its payment obligations under this Agreement will rank at all times at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally. 

  
 13 

	7.	Undertakings and Covenants of Kenon 

 Kenon undertakes in favor of IC from the
date of this Agreement and until the later of: (a) the date of final repayment of all amounts owed or payable under this Agreement and (b) the Qoros Guarantee Liability Termination, as follows: 

 

	 	7.1.	Information undertakings. 

  

	 	7.1.1.	to supply to IC as soon as the same are issued, the audited consolidated and unconsolidated annual financial statements as of the end of and for the previous financial year of Kenon, and in respect of each of the first
three financial quarters of each financial year of Kenon, the unaudited consolidated and unconsolidated interim financial statements for that financial quarter of Kenon, in each case prepared in accordance with generally accepted accounting
principles, including International Financial Reporting Standards, consistently applied; 

  

	 	7.1.2.	to supply, as soon as the same are issued and become available, the audited consolidated annual financial statements (and if issued and when the same becomes available, the audited unconsolidated annual financial
statements) as of the end of and for the previous financial year, and in respect of each of the first three financial quarters of each financial year of IC Power and Qoros, the unaudited consolidated interim financial statements (and if issued and
when the same becomes available, the unaudited unconsolidated interim financial statements) for each financial quarter, of each of IC Power and Qoros, respectively, in each case prepared in accordance with generally accepted accounting principles,
including International Financial Reporting Standards, consistently applied; and 

  

	 	7.1.3.	to promptly provide information and/or documentation regarding the financial condition, business and operations of each of Kenon, IC Power and Qoros, as IC may reasonably request, including financial statements as of
and for any financial period (whether before or after the Effective Date), in each case (including in respect of financial statements provided pursuant to Sections 7.1.1 or 7.1.2) together with all reports, management’s letters, legal opinions
and accountants/auditors’ comfort letters and consents for the inclusion of the foregoing in IC’s public regulatory filings (provided that, the provision of third party letters and opinions so requested is consistent with
market practice), and any other information and/or documentation, and provided further that the aforesaid is required for fulfillment by IC of any legal or regulatory requirements, including for disclosure in any periodic report
(including annual and quarterly reports and such other reports) and/or immediate report, according to applicable regulatory reporting obligations to which IC will be subject and under any applicable law, or in the course of preparing and filing of
public offerings of any kind (prospectuses, shelf prospectuses, registration statements and the like) or other corporate filings in any jurisdiction required under any applicable law or regulations (in which case the request for such information
shall be deemed to be reasonable). 

  
 14 

 Without prejudice to the foregoing, it is agreed that where the financial statements of Kenon,
IC Power or Qoros have been filed with the Securities and Exchange Commission, failure to deliver such financial statements shall not constitute a breach of this undertaking unless IC has requested Kenon to deliver copies of such financial
statements and Kenon has not delivered them to IC within 5 (five) Business Days of such request. 
 Notwithstanding anything to the contrary
in this Agreement, following the Final Repayment Date, Kenon undertakes to promptly provide to IC, any of the aforesaid information and documents in accordance with Section 7.1.3 reasonably required by IC in order to comply with its filing
obligations under applicable law (including financial statements). Notwithstanding the aforesaid, following the Qoros Guarantee Liability Termination, Kenon will be required to provide the aforesaid information and documents in relation to Qoros
only to the extent these are required by IC in order to fulfill its filing obligations under applicable law. The provisions of this Section 7.1 shall survive the termination of this Agreement. 

 

	 	7.2.	Notifications. 

  

	 	7.2.1.	Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of the occurrence of any Default, breach of or non-compliance with any undertaking or condition contained in this Agreement (save
as would be considered to be de minimis), and the steps, if any, being taken to remedy it. 

  

	 	7.2.2.	Kenon shall notify IC, as soon as reasonably practicable after the occurrence of any acquisition or disposition of any material asset, any public offering or private placement of shares or other securities, or any
restructuring, rehabilitation or rescheduling of indebtedness, reorganization, scheme of arrangement or any similar event (including the commencement of negotiations with creditors or other stakeholders in connection therewith), commencement of any
proceedings for liquidation, bankruptcy, insolvency, winding-up or other proceedings affecting creditors’ rights generally, in each case by or in respect of any of Kenon, IC Power (including any subsidiary thereof which is material to its
business), Quantum (2007) LLC or Qoros. The report hereunder will contain a description of such events. Kenon’s obligations to notify IC in connection with IC Power (including its subsidiary as aforesaid), Quantum (2007) LLC or Qoros as
aforesaid shall be subject to the information being available to Kenon and within its knowledge. 

  

	 	7.2.3.	Kenon shall notify IC, promptly upon becoming aware, and otherwise at the request of IC, of (i) any restructuring, material change or amendment to the Qoros Loan Agreement or any agreement entered into by any guarantor,
credit support provider and/or by Quantum (2007) LLC in connection thereof, and (ii) the occurrence of any default or breach by Qoros pursuant to the Qoros Loan Agreement and/or by any guarantor, credit support provider and/or by Quantum (2007) LLC
pursuant to any other agreement or document entered in connection therewith, and shall provide IC any relevant information in that respect. 

  
 15 

	 	7.3.	Security interest over ICP Interests. 

  

	 	7.3.1.	Prior to the consummation of an IPO, Kenon undertakes to grant the following pledges and security interest in favor of IC as security for the full and punctual payment of all amounts owing by Kenon to IC from time to
time under this Agreement: 

  

	 	(a)	as soon as reasonably practicable following the Effective Date (and prior to the utilization of the Loan Facility in accordance with this Agreement (as a condition to the drawdown of the initial Loan hereunder)), create
a first ranking priority fixed pledge and security interest in favor of IC with respect to ICP Interests comprising no less than 40% of all ICP Interests then issued and outstanding; and 

 

	 	(b)	prior to the utilization of any Loan under the Loan Facility in accordance with this Agreement (as a condition to the drawdown of any Loan thereunder), create, or ensure the existence of, for each amount of
US$50,000,000 (or part thereof) out of the aggregate principal amount of all the Loans to be outstanding following the draw-down of such Loan, a first ranking priority fixed pledge and security interest in favor of IC with respect to ICP Interests
comprising 6.5% of all ICP Interests then issued and outstanding, provided that, the aggregate percentage of ICP Interests that shall be pledged hereunder shall not exceed 66% of all ICP Interests then outstanding. 

By way of illustration: (I) the utilization of a Loan under the Loan Facility in a principal amount of US$80,000,000 (assuming no Loans had
been previously made) shall be subject to the creation of a pledge pursuant hereto with respect to ICP Interests comprising in the aggregate 53% of all ICP Interests then outstanding; (II) the utilization of a Loan under the Loan Facility such that
the aggregate principal amount of all Loans previously utilized together with the Loan to be utilized would exceed US$150,000,000 shall be subject to the creation or existence of a pledge(s) pursuant hereto with respect to ICP Interests comprising
in the aggregate 66% of all ICP Interests then outstanding), 
 in each case, pursuant to security documents in form agreed by the parties
prior to the draw-down of the initial Loan (mutatis mutandis according to the security interest pledged with respect to each Loan), provided that prior to the draw-down of future Loans, IC shall be entitled to amend the form of the pledge
documents to be executed by Kenon to the extent required as a result of changes in applicable law. 
  

	 	7.3.2.	 Kenon shall execute and deliver to IC, no later than the dates referred to herein, all documents that are necessary for the purpose of registering or
otherwise perfecting each pledge and security interest granted pursuant hereto in accordance with applicable law in any relevant jurisdiction (including the recordation or registration thereof in any public registry in such jurisdiction), and shall
pay all fees and charges (if any) in connection with such registration or perfection and any stamp duty payable in Singapore in respect of the stamping of said security 

  
 16 

	 	
documents. At the request of IC, Kenon shall provide, upon the registration of any pledge (or an amendment thereto, as may be applicable), a legal opinion of its Singaporean external legal
counsel regarding the legality, validity and perfection of the pledge and security interest (and any amendment or extension thereof, as the case may be) under Singaporean law in form satisfactory to IC. 

 

	 	7.3.3.	Without prejudice to the foregoing, Kenon shall, promptly following the request of IC, execute all documents and take all steps as IC may reasonably require in order to ensure that the pledges granted pursuant hereto
shall be valid and binding against third parties, and to execute and/or deliver to IC any additional and/or new pledge or amendment of, or supplement to, the foregoing pledges and any other documents as IC shall require for this purpose.

  

	 	7.3.4.	In the event that any Transaction permitted by Section 7.5.2 is effected or consummated prior to the consummation of an IPO, Kenon undertakes to ensure that the closing or completion of such Transaction shall be subject
to the creation and registration of a pledge and security interest over the corresponding shares of the Purchasing Entity (together with any related rights and other rights of Kenon as a shareholder in such entity), on substantially the same terms
as the pledge granted over the ICP Interests pursuant hereto (provided however that IC may require to include or modify any term which it reasonably believes is necessary to protect its interest and enable it to exercise any rights or
remedies with respect to such pledge in accordance with applicable law), and Kenon shall execute such documents, complete such procedures and take all such actions as required by Sections 7.3.2 and 7.3.3 (including the registration of the pledge and
security interest and the delivery of a legal opinion at the request of IC). If Kenon shall notify IC that it is a condition to the closing or to the completion of the foregoing Transaction that any pledge(s) and security interest created and
registered in favor of IC over any ICP Interests shall be released, IC shall execute and deliver to Kenon a release in respect of such pledge(s) and security interest, which IC may subject by the creation and registration of the pledge and security
interest referred to above upon or immediately following the closing or completion of said Transaction. 

  

	 	7.3.5.	For the avoidance of doubt, the provisions of this Section 7.3 shall not be construed as limiting or restricting the grant of any security interest by IC Power over its assets including any shares or interests in its
subsidiaries. 

  

	 	7.3.6.	Following the consummation of an IPO, IC shall, within 3 (three) Business Days of Kenon’s request, and provided that no Default, breach of or non-compliance with any material undertaking or material
condition contained in this Agreement under this Agreement is then continuing and the ratio of Holdings Value to Net Debt on such day is at least equal to 2:1, confirm in writing to Kenon that the pledges created pursuant hereto shall be released,
and IC shall within such 3 Business Day period sign and deliver to Kenon the documents required in order to delete or deregister such pledges from any public registry in which they were recorded, in each case at the expense of Kenon.

  
 17 

	 	7.4.	Incurrence of Indebtedness. Following the consummation of an IPO, Kenon shall not incur nor assume any Financial Indebtedness (other than the drawdown of Loans under the Loan Facility in accordance with the terms
of this Agreement, the Qoros Guarantee Liabilities Amounts, Commitment Fee Cancellation Accrual Amounts and any other indebtedness under this Agreement), unless the ratio of Holdings Value to Net Debt is at least equal to 2:1 as of
immediately following such incurrence (as calculated immediately prior to such incurrence, taking into account and giving effect to such incurrence. In determining the effect of such incurrence, the net cash proceeds to be received under the
Financial Indebtedness so incurred or assumed by Kenon shall not be taken into account in the calculation of the ratio of Holdings Value to Net Debt unless it is either (A) actually applied (in whole or in part, as may be applicable)
in exchange for, or to renew, refund, refinance, replace or discharge, any other Financial Indebtedness (in whole or in part), or (B) deposited in a segregate account and pledged in favor of IC under a first ranking fixed pledge until application of
any amount thereof in accordance with (A) above, in each case to the extent required to satisfy the required ratio of Holdings Value to Net Debt). 

  

	 	7.5.	Transactions in IC Power or in ICP Interests. 

  

	 	7.5.1.	Following the consummation of an IPO, Kenon shall not enter into nor permit, cause or agree to the entry into or consummation of, any transaction or a series of related transactions, including (but not limited to) any
sale, transfer, assignment, issuance, tender offer, share exchange, merger, reverse merger, repurchase or other transaction(s) or as a result of any corporate restructuring or reorganization of IC Power, in each case involving the sale or issuance
of any ICP Interests and/or the sale, transfer, conveyance, lease or other disposal of all of the assets of IC Power (a “Transaction”) in which Kenon receives any cash proceeds as consideration under the Transaction,
unless the ratio of Holdings Value to Net Debt is at least equal to 2:1 as of immediately following such Transaction (as calculated immediately prior to the consummation thereof, taking into account and giving effect to such
Transaction. In determining the effect of such Transaction, any amount of the net cash proceeds to be received by Kenon in the sale or issuance of ICP Interests (as opposed to the sale, transfer, conveyance, lease or other disposal of IC
Power’s assets as aforesaid) shall not be taken into account in the calculation of the ratio of Holdings Value to Net Debt unless it is either (A) actually applied (in whole or in part, as may be applicable) in exchange for, or to
renew, refund, refinance, replace or discharge, any Financial Indebtedness (in whole or in part), or (B) deposited in a segregate account and pledged in favor of IC under a first ranking fixed pledge until application of any amount thereof in
accordance with (A) above, in each case to the extent required to satisfy the required ratio of Holdings Value to Net Debt). 

  
 18 

	 	7.5.2.	Kenon shall not, enter into or effect a Transaction which would result in Kenon acquiring shares of another entity (including an entity formed by or surviving any merger, consolidation, amalgamation or combination with
or into IC Power) (the “Purchasing Entity”) in consideration of, in exchange for or against the tendering of, its shares in IC Power or in consideration of the sale, transfer, conveyance, lease or other disposition of all or
substantially all of the assets of IC Power to the Purchasing Entity, unless all of the following conditions are satisfied (without prejudice to the provisions of Section 7.3.4): 

 

	 	(a)	before the consummation of an IPO, the Purchasing Entity is organized in a country which has diplomatic ties with the State of Israel; and 

 

	 	(b)	following the consummation of an IPO, the shares of the Purchasing Entity acquired by Kenon in such Transaction are listed for trading on any recognized exchange in any jurisdiction. 

In the event that a Transaction permitted under this Section is effected or consummated, the provisions of this Agreement that apply to shares
in IC Power or to ICP Interests shall apply, mutatis mutandis, to the shares of the Purchasing Entity (and, where applicable, references to IC Power and to ICP Interests, including for the avoidance of doubt under the definition of Holdings
Value and for the purpose of the undertakings under Sections 7.1 (Information undertakings) and 7.2 (Notifications), shall be construed as references to the Purchasing Entity and to the shares in the Purchasing Entity, and for the
avoidance of doubt such provisions shall thereupon cease to apply to IC Power and to ICP Interests). 
  

	 	7.5.3.	Notwithstanding anything to the contrary herein, Kenon shall not enter into any transaction or a series of related transactions following the consummation of an IPO, as a result of which the shares of IC Power cease or
will cease to be listed or traded on a recognized exchange. 

  

	 	7.6.	Distributions by Kenon. It will not make, nor resolve to make or permit, cause or agree to the payment of, any Distributions other than as set out below: 

 

	 	7.6.1.	prior to the consummation of an IPO, Kenon may resolve or approve a Distribution in-kind to its shareholders consisting solely of shares of Zim Integrated Shipping Services Limited and/or shares of Renewable Energy
Group, Inc and/or shares of Tower Semiconductor Limited held by Kenon; 

  

	 	7.6.2.	following the consummation of an IPO, Kenon may make, resolve to make or permit, cause or agree to the payment of, any Distributions, provided that upon payment of such Distributions and immediately after
giving effect to payment of such Distributions, the ratio of Holdings Value to Net Debt is at least equal to 2:1; and 

  

	 	7.6.3.	IC agrees that in the event that Kenon meets its undertakings under this Section 7.6 but does not have sufficient retained earnings in order to make any non-cash distribution in-kind (but, for the avoidance of doubt,
not any cash distribution (in whole or in part)), IC will not object to Kenon’s application for a capital reduction, if so needed in order to enable the making of such Distribution, provided however that such agreement shall not
prejudice any other obligation of Kenon hereunder nor constitute a waiver by IC of any of its rights under this Agreement, including for the avoidance of doubt, any rights which arise following any breach by Kenon or a default under this Agreement.

  
 19 

	8.	Events of Default 

 Each of the events or circumstances set out in this Section 8
is an “Event of Default” (whether or not caused by any reason outside the control of Kenon or of any other person): 
  

	 	8.1.	Non-payment. Kenon does not pay on the due date any amount payable pursuant to this Agreement, unless payment is made as soon as practicable and in any event within 5 (five) Business Days of its due date (other
than any payments due on the Loans Repayment Date (as may be extended in accordance with Section 4.1 hereto) or the Final Repayment Date, as applicable, for which there shall be no grace or cure period). 

 

	 	8.2.	Breach of Certain Undertakings. Kenon does not comply with any of the covenants or undertakings in Sections 7.4 (Incurrence of Indebtedness), 7.5 (Transactions in IC Power or in ICP Interests),
and 7.6 (Distributions by Kenon). 

  

	 	8.3.	Cross default. Any Financial Indebtedness of Kenon is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described), provided
that the aggregate amount of such Financial Indebtedness exceeds individually or in aggregate US$50,000,000 (fifty million US Dollars) (or its equivalent in any other currency or currencies) and such Financial Indebtedness remains unpaid
for, or has not been discharged or stayed within, 14 consecutive days thereafter. 

  

	 	8.4.	Insolvency. Kenon is unable to pay its debts as they fall due, commences negotiations with its creditors with a view to the general readjustment, rehabilitation or rescheduling of its indebtedness (excluding, for
the avoidance of doubt, any bona fide refinancing of then existing debt), makes a general assignment for the benefit of a rehabilitation scheme with its creditors, or is declared by a competent court or a governmental authority as being
insolvent for the purposes of any applicable insolvency or bankruptcy law. 

  

	 	8.5.	Insolvency proceedings. 

 Any corporate action, legal proceedings or other procedure or
step is taken in relation to: 
  

	 	8.5.1.	The winding-up, dissolution, administration, judicial management, rehabilitation or reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of Kenon; 

 

	 	8.5.2.	the appointment of a liquidator, receiver, trustee, administrator, judicial manager, compulsory manager or other similar officer in respect of Kenon or any of its assets; or 

 

	 	8.5.3.	enforcement of any security or attachment over any assets of Kenon in each case in respect of indebtedness exceeding individually or in aggregate US$50,000,000 (fifty million US Dollars), 

or any analogous procedure or step is taken in any jurisdiction or an application for the recognition of foreign proceedings under applicable
law is made in respect of Kenon. 
 No Event of Default will occur under this Section 8.5 by reason of any legal proceedings or other
procedure or step (or analogous procedure or step taken in any jurisdiction) presented or taken by any person other than by Kenon, as applicable, which is being contested in good faith and is fully cancelled or discharged within 45 (forty-five)
Business Days of its commencement or presentation. 

  
 20 

 On and at any time after the occurrence of an Event of Default which is continuing, IC may, by
written notice to Kenon: (i) cancel the Loan Facility or any part thereof whereupon it shall immediately be cancelled; (ii) declare that all or part of the Loans and the Qoros Guarantee Liability Amount then outstanding, together with accrued
interest, and all other amounts accrued or outstanding under the Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or (iii) declare that all or part of the Loans and the Qoros Guarantee Liability
Amount then outstanding, together with accrued interest, and all other amounts accrued or outstanding under the Agreement be payable on demand, whereupon they shall immediately become payable on demand by IC. 

In the event that all or any part of the Loans and the Qoros Guarantee Liability Amount have been declared payable pursuant hereto, IC shall be
entitled to take all steps it deems fit in order to collect all sums owed by Kenon, including, to enforce any pledges granted pursuant to Section 7.3 and to realize all or any of the assets pledged under the security documents to recover any amounts
owing by Kenon. For avoidance of doubt, the Events of Default set out in this Section 8 shall be in addition to, and nothing in this Section shall operate or be construed so as to prejudice or derogate from, any other rights, causes of action,
remedies and relief available to IC under this Agreement or by applicable law. 
 Kenon acknowledges and agrees that any payment received by
any of the foregoing (including following the enforcement or realization of any pledge and security interest created or granted to IC by Kenon in accordance with this Agreement) at a time when all amounts owing or that may become due and payable
under this Agreement have not yet become due and payable, including in respect of any obligations, claims, charges and other liabilities of IC or that IC may incur in connection with the Qoros Guarantees, may be deposited by IC (or anyone acting on
its behalf) in a weekly interest bearing cash deposit in a bank account at IC’s name, and shall thereafter be applied towards the payment of any such amounts owing or that may become due and payable under this Agreement, including amounts
actually paid by IC in connection with any Qoros Guarantee, in accordance with Section 5.5. Following the full payment of all amounts due to IC under this agreement and following the Qoros Guarantee Liability Termination, the balance remaining in
the aforementioned bank account (including all interest and proceeds accrued thereon) shall be paid to Kenon. 
  

	9.	Miscellaneous 

  

	 	9.1.	Announcements. The Parties agree to use reasonable efforts to coordinate in advance any public announcement or filing in respect of this Agreement or the transactions contemplated hereby required by applicable
law or by the regulations of any applicable stock exchange, and otherwise neither Party shall communicate with any media without the prior written consent of the other party, provided that nothing herein shall prevent either Party from
making such disclosures in any manner as it shall determine are required by applicable law. The foregoing notwithstanding, Kenon acknowledges that information provided by it in connection with this Agreement may be disclosed by IC in its public
filings. 

  

	 	9.2.	Entire Agreement. This Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject
matter hereof existing between the Parties hereto are expressly cancelled. 

  
 21 

	 	9.3.	Amendment. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only
with the written consent of the Parties. 

  

	 	9.4.	Limitation of Liability. In no circumstances shall IC be required to pay nor be liable to Kenon for any consequential, indirect or punitive damages, opportunity costs or lost profits (whether arising from its
negligence or breach of contract or otherwise), save only that nothing herein shall exclude liability for fraud. 

  

	 	9.5.	Assignment. 

  

	 	9.5.1.	IC may, at any time, and without the consent of Kenon, assign or transfer all or any of its rights, benefits and obligations under the Agreement to any Financial Institution, provided that: (i) the
transferee will take upon itself all such rights and obligations so transferred or assigned pursuant hereto and (ii) the assignment will not derogate from Kenon’s rights under this Agreement and will not impose on Kenon any further or increased
liability whatsoever to indemnify the other party or to pay for any tax liabilities in pursuant to this Agreement that are not applicable to it prior to such assignment. 

In this Section, “Financial Institution” means any bank, insurer, trust, fund (including pension funds, provident funds and
investment funds) or any other entity, incorporated in any jurisdiction, which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets and which is supervised by a
governmental body in the country of its incorporation. 
 If as a result of circumstances existing at the date of the assignment or
transfer, Kenon would be obliged to make an increased payment to the transferee in accordance with Section 5.3.1, then the transferee will only be entitled to receive payment under Section 5.3.1 to the same extent as the transferring party would
have been if the assignment or transfer had not occurred. 
  

	 	9.5.2.	Kenon’s rights and obligations under this Agreement shall not be assigned, transferred or delegated without IC’s prior written consent, except that Kenon may assign its obligations under this
Agreement to any affiliate thereof (being any person or entity which is directly or indirectly controlling or controlled by or under direct or indirect common control with Kenon), provided that Kenon shall remain liable for all such
obligations, jointly and severally with such transferee and without prejudice to any rights of IC under this Agreement (for the purpose hereof Kenon irrevocably waives any defense it may have and any right of first requiring to proceed against or
enforce any other rights or security or claim payment from any person before claiming payment from Kenon, irrespective of any law or the provision of any agreement to the contrary), and provided further that such transfer shall not
prejudice any rights of IC under this Agreement. Any assignment or attempted assignment without IC’s written consent shall be void and of no force or effect. 

  
 22 

	 	9.6.	Successors and Assigns. Without prejudice to the provisions of Section 9.5 (Assignment), this Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Parties hereto.

  

	 	9.7.	Remedies. No failure to exercise, nor any delay in exercising, on the part of a party hereto, any right or remedy hereunder or under law shall operate as a waiver thereof, nor shall any single or partial exercise
of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy. The rights and remedies provided to the Parties under this Agreement are cumulative and not exhaustive or exclusive of any rights or
remedies provided under applicable law. Specifically, the rights and remedies afforded to IC in Section 8 are not exhaustive or exclusive of any other causes of action in respect of breach (material or otherwise) or non-compliance which IC may claim
against and/or remedies it may pursue in respect thereof. Any extension of time or waiver given, or compromise made, with respect to a specific event by IC, shall apply only with respect to such specific event and shall not be interpreted as
applying to any other event and shall not derogate from IC’s rights under this Agreement or under applicable law (save as expressly stated in such waiver or compromise). 

 

	 	9.8.	No Third Party Beneficiaries. This Agreement is made for the Parties hereto, and no third party shall have any right hereunder or be deemed a beneficiary hereof (except as expressly set forth herein to the
contrary). 

  

	 	9.9.	Notices. Any notice, demand or other communication required to be given by one Party to another under this Agreement shall be in writing and shall be deemed to have been served: (i) if personally delivered, when
actually delivered; or (ii) if sent by facsimile or e-mail, on the day sent (and if such day is not a Business Day, the Business Day immediately following) subject to receipt of confirmation of transmission; or (iii) 5 (five) Business Days after
being mailed by certified or registered mail, postage prepaid (for the purposes of proving such service, it being sufficient to prove that such notice was properly addressed and posted) to the respective addresses of the Parties set out herein:

 if to IC: 
  

			
	Address:	  	Millennium Tower, 23 Aranha Street, P.O.B
		  	20456, Tel Aviv, 61204, Israel
		
	e-mail:	  	mayaak@israelcorp.com
		  	natany@israelcorp.com
		
	Attention:	  	Legal Department; Financial Department
		
	if to Kenon:	  	
		
	Address:	  	1 Temasek Avenue #36-01
		  	Millenia Tower
		  	Singapore 039192
		
	e-mail:	  	RobertR@kenon-holdings.com
		  	TzahiG@kenon-holdings.com
		
	Attention:	  	Legal Department, Finance Department

  
 23 

 or at such other address or email as any Party shall have furnished to the other in writing in
accordance with this Section. 
  

	 	9.10.	Governing Law. The internal laws of the State of Israel, without regard to its conflict of laws rules, shall govern the validity, the construction of its terms and the interpretation of the rights and duties of
the Parties hereunder. 

  

	 	9.11.	Jurisdiction and Service of process. The appropriate courts in Tel-Aviv-Jaffa, Israel shall have exclusive jurisdiction over any dispute or claim in connection with this Agreement or any of the transactions
contemplated hereby, and the Parties hereby irrevocably submit to such jurisdiction. 

 The parties agree that this Section is
made for the benefit of IC only. As a result, IC shall not be prevented from taking proceedings to settle any matter, dispute or relating to this Agreement or to enforce any right or remedy it may have in connection herewith in any courts with
jurisdiction in Singapore or in any jurisdiction in which Kenon has assets, as it may deem appropriate and necessary in its sole discretion. To the extent allowed by law, the taking of proceedings in one jurisdiction shall not limit preclude the
taking of proceedings (whether concurrently or not) in any other jurisdiction. 
 Kenon hereby agrees that the process by which any suit,
action or proceedings be initiated or conducted may be served on it by being delivered in connection with any such proceedings in Israel to IC Green Energy Ltd. (“IC Green”). 

A copy of the appointment letter and the consent of IC Green to act as agent for service is attached hereto as Exhibit A.
If the appointment of IC Green ceases to be effective, the undersigned shall immediately appoint another person or entity in Israel to accept service of process on its behalf in Israel and, failing such appointment within 21 (twenty one) days,
service to the law firm of Meitar Liquornik Geva Leshem Tal Law Offices, to the attention of any two of the following: Advs. Dan Geva, Michael Rimon, Judith Gal-Or, Assaf Oz, Tomer Sela and David Glatt (or, in their absence, to any partner in that
law firm) will constitute due service of process to Kenon. Nothing contained herein shall affect the right to serve process in any other manner permitted by applicable law. 
  

	 	9.12.	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the Parties actually executing such counterparts, and all of which together shall constitute
one instrument. 

 [Signature Page to Follow] 

  
 24 

 IN WITNESS WHEREOF, the Parties have executed this LOAN AGREEMENT as of the date first
above written. 
  

			
	ISRAEL CORPORATION LTD.
	
	 /s/ Nir Gilad

		
	By:	 	 Nir Gilad

		
	Title:	 	 CEO

	
	 /s/ Avisar Paz

		
	By:	 	 Avisar Paz

		
	Title:	 	 CFO

	
	KENON HOLDINGS LTD.
	
	 /s/ Yoav Doppelt

		
	By:	 	 Yoav Doppelt

		
	Title:	 	 CEO

 SIGNATURE PAGE OF THE LOAN AGREEMENT 

 SCHEDULE 1 

DRAWDOWN NOTICE 
  

			
	From:	  	Kenon Holdings Ltd.
	To:	  	Israel Corporation Ltd.
	Dated:	  	[                    ]

 Dear Sirs, 
 We refer to the
loan agreement with you dated [            ], 2015 (the “Agreement”). Capitalized terms have the meanings given to them in the Agreement. We wish to borrow a Loan on the
following terms: 
  

	(a)	Amount: US$[        ] 

  

	(b)	Date on which a Loan is to be made: [                    ], (or, if that date is not a Business Day, the next
Business Day), such date being a date falling within the Availability Period. 

  

	(c)	Payment delivery details for proceeds of the Loan: 

[                    ] 

We confirm that each of the conditions for submission of this Drawdown Notice as set forth by the Agreement is satisfied on the date of the requested drawdown
(after giving effect thereto, if applicable). 
  

	
	Yours faithfully,
	
	  

	KENON HOLDINGS LTD.

 EXHIBIT A 

Kenon Holdings Ltd. 
 1Temasek
Avenue #36-01, Millenia Tower 
 Singapore 039192 

IC Green Energy Ltd. 
 19 Ha’arba’a St.,
Hatichon Tower 
 Tel-Aviv 61204, Israel 
 Attention:
[●] 
 [●][●], 2015 
 Dear Sirs,

 Re: Appointment of Process Agent 
  

	1.	We refer to the Loan Agreement dated      day of January 2015, by and between Israel Corporation Ltd. (“IC”) and Kenon Holdings Ltd. (“Kenon”), as may be amended,
supplemented, modified or replaced (the “Loan Agreement”). Terms used hereinafter and hereinabove shall have the meanings ascribed to them in the Loan Agreement (including any Schedules or Exhibits thereto), unless explicitly
dictated otherwise herein. 

  

	2.	We hereby appoint you as our agent for service of process by which any suit, action or proceeding is begun in the courts of the State of Israel arising out of or in connection with the Loan Agreement, on the terms set
out in this letter. 

  

	3.	Your appointment shall cease only upon receipt of notice of confirmation from IC (or any successor, assignee or representative thereof). 

If the Loan Agreement is extended, amended, restated or otherwise modified, your appointment will, nonetheless, be extended and continued
accordingly. 
  

	4.	On receipt of service of process addressed to us by which any suit, action or proceeding is begun in the courts of the State of Israel arising out of or in connection with the Loan Agreement, you shall:

  

	 	4.1	accept service on our behalf; 

  

	 	4.2	notify in writing by email or by fax to the email address or the number stated in this letter, as applicable (or another email address or fax number notified in writing to you by us from time to time), in either case
containing the following: 

  

	 	(a)	the date on which you accepted service of process on our behalf. 

  

	 	(b)	a request by you for the name of the law firm in the State of Israel to whom the originals of the document(s) served on you should be sent. but need not contain any other information nor details of the nature or
substance of the claim made against us. 

  

	 	4.3	You shall also send a copy of the notice referred to in paragraph 4.2 to us by mail or courier to the address stated in this letter (or another address notified in writing to you by us from time to time) with a copy of
the process served. 

	5.	Your dispatch of the notice referred to in paragraph 4.2 or paragraph 4.3 is a good discharge of your obligations contained in the relevant paragraph, whether or not we receive the relevant notice and whether or not you
are aware that we may not have received a notice previously sent to us by you. If, in your opinion, your dispatch or our receipt of either of the notices to be sent to us pursuant to paragraph 4.2 or paragraph 4.3 might be prevented, hindered or
delayed by a cause beyond your control (including, without limitation, interruptions in postal or other communications services) your obligations under those paragraphs are suspended until, in your opinion, dispatch will not be prevented, hindered
or delayed in that way. While your obligations are suspended you shall, if the relevant telephone services are operating normally, use reasonable efforts to give us the information referred to in paragraph 4.2 by telephone call to the number stated
in this letter (or another number notified in writing to you by us from time to time). 

  

	6.	You are instructed to notify us and IC of any change in your name or address as well as of any proposed change in your status that could lead to your winding-up or dissolution or of any contemplated cessation in
maintaining an office or place of business in Israel. 

  

	7.	This letter and any obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, Israeli law. The competent courts of Tel-Aviv-Jaffa, Israel shall have exclusive
jurisdiction on any matters arising out of or in connection with this letter. 

  

	8.	Please acknowledge your acceptance of the terms of this letter by signing the acknowledgement below. We shall notify the parties to the Loan Agreement that you have accepted the terms of this letter and provide them
with a copy of this letter and your acceptance. 

  

	
	Yours faithfully
	
	  

	
	a duly authorized representative of Kenon Holdings Ltd.

 We acknowledge receipt of your letter of which this is a true copy. We accept the appointment as agent for
service process described in the letter on the terms the letter sets out, and undertake to comply with such terms. 
  

	
	  

 a duly authorized representative of IC Green Energy Ltd. 

 (Execution Version) 

SUPPLEMENT NO. 1 
 TO THE
LOAN AGREEMENT 
 This Supplement No. 1 (the “Supplement”) to the Loan Agreement dated 7 January 2015 is made and
entered into as of the 17th day of March 2016, by and between Israel Corporation Ltd. (“IC”) and Kenon Holdings Ltd. (“Kenon”). IC and Kenon shall each be
referred to as a “Party”, and collectively, the “Parties”. 
 WHEREAS, the Parties have entered
into a Loan Agreement dated 7 January 2015 (the “Loan Agreement”); 
 WHEREAS, as security for its obligations
under the Loan Agreement, Kenon pledged in first ranking pledge 6,600,066 ordinary shares of IC Power par value NIS 0.01 each (comprising 66% of the issued and outstanding share capital of IC Power) in favor of IC pursuant to Pledge Agreements dated
7 January 2015, 29 January 2015, 4 May 2015 and 7 October 2015 (the “Existing Pledges”); 

WHEREAS, Kenon wishes to restructure its holdings in IC Power, by introducing ICPS (as defined below), a newly incorporated
wholly-owned subsidiary of Kenon, as a new tier holding company to which all of the ICP Interests will be transferred under the ICPS IPO Restructuring (as defined below) pursuant to the Share Transfer Agreement (as defined below) and in
consideration for the New ICPS Shares (as defined below) and undertaking to repay the Vendor Loans (as defined below), and which will seek to launch an initial public offering of its ordinary shares on the New York Stock Exchange (which offering
will, when completed, constitute an IPO for the purposes of the Loan Agreement); 
 WHEREAS, pursuant to Section 7.5.2 of the Loan
Agreement, the ICPS IPO Restructuring qualifies as a “Transaction” (as defined therein) which Kenon is permitted to enter into, subject to the terms set forth in the Loan Agreement; 

WHEREAS, pursuant to Section 7.3.4 of the Loan Agreement, Kenon is required to grant (or cause to be granted) a pledge and security
interest over ICPS Interests (and all related rights, including distributions thereon, benefits and proceeds in respect thereof or derived therefrom) in accordance with the terms of the Loan Agreement and the Existing Pledges; 

WHEREAS, the parties further agreed to substitute for the Existing Pledges a security interest granted by ICPS over ICP Interests in
favour of IC, as required in order to facilitate the ICPS IPO Restructuring, and further agreed that Kenon would grant IC with a security interest in respect of the Vendor Loans the subject of the 145M Loan Agreement (as defined below) and any ICPS
Interests that may be issued in conversion thereof, and to add to, and implement certain terms of, the Loan Agreement, all set forth in this Supplement; 

NOW, THEREFORE, the Parties hereby agree as follows: 
  

	1.	Definitions and Interpretation 

  

	 	1.1.	The preamble and any schedules, exhibits or appendices hereto form an integral part of this Supplement. 

  

	 	1.2.	In addition to the terms defined elsewhere in this Supplement, the following terms shall have the meanings given to them in this paragraph: 

 

	 	1.2.1.	“Supplement 1 Date” means the date upon which IC notifies Kenon in writing that it has received all of the Schedule 1 Documents (as defined below); 

  
 1 

 (Execution Version) 

 

	 	1.2.1.	“ICPS” means IC Power Pte. Ltd., (Company Registration Number: 201511865D), a company incorporated in Singapore and having its registered office at 80 Raffles Place, #26-01, UOB Plaza, Singapore 048624;
and 

  

	 	1.2.2.	“ICPS Interests” means (i) shares of ICPS and any other securities or rights convertible into, exercisable for or otherwise conferring the right to acquire, shares of ICPS, in each case on a fully
diluted basis, and (ii) any other means of control (within the meaning of that term under the Israeli Securities Law, 1968) in ICPS, either directly or indirectly, by virtue of the holding of any security, by agreement or otherwise.

  

	 	1.2.3.	“Vendor Loans” means loans in an aggregate amount of US$220,000,000 to be provided by Kenon to ICPS, pursuant to the 145M Loan Agreement and the 75M Loan Agreement, in connection with financing the
acquisition by ICPS of the ICP Interests from Kenon pursuant to the Share Transfer Agreement. 

  

	 	1.2.4.	“Vendor Loan Agreements” means the 145M Loan Agreement and the 75M Loan Agreement. 

  

	 	1.2.5.	“145M Loan Agreement” means one of two loan agreements (the other being the 75M Loan Agreement) to be entered into by Kenon and ICPS pursuant to which ICPS will received Vendor Loans to finance a
portion of the cash consideration payable by it to Kenon for the acquisition of the ICP Interests from Kenon pursuant to the Share Transfer Agreement. 

  

	 	1.2.6.	“75M Loan Agreement” means one of two loan agreements (the other being the 145M Loan Agreement) to be entered into by Kenon and ICPS pursuant to which ICPS will received Vendor Loans to finance a
portion of the cash consideration payable by it to Kenon for the acquisition of the ICP Interests from Kenon pursuant to the Share Transfer Agreement. 

  

	 	1.3.	Terms, words and expressions defined in the Loan Agreement, and not otherwise defined herein, shall bear the same meaning as in the Loan Agreement. All references in this Supplement to paragraphs are references to
paragraphs of this Supplement and references to Sections are references to sections of the Loan Agreement. 

  

	 	1.4.	The provisions of the Loan Agreement concerning principles of construction or interpretation shall apply to this Supplement as if set out herein. 

 

	2.	Application of Certain Provisions of the Loan Agreement with regard to the ICPS IPO Restructuring 

Effective as of the Supplement 1 Date, the Loan Agreement shall be supplemented as follows: 

 

	 	2.1.	The definitions set out in this Supplement (including in paragraph 1.2 thereof) shall be read and construed as if set out in the Loan Agreement. 

 

	 	2.2.	Without derogating from the generality of Section 2.6 below, the definition of “IPO” in Section 1.2.16 of the Loan Agreement shall refer to an initial public offering of the shares or equity securities of ICPS
and references to such term in Section 7.5 of the Loan Agreement shall be construed accordingly. 

  

	 	2.3.	Pursuant to Section 7.3.4 of the Loan Agreement, Kenon undertakes to grant (or cause to be granted) the following pledges and security interest in favor of IC as security for the full and punctual payment of all amounts
owing by Kenon to IC from time to time under this Agreement: 

  

	 	(a)	a first ranking priority fixed pledge and security interest in favor of IC with respect to ICP Interests comprising 66% of all ICP Interests issued and outstanding as of the Supplement 1 Date, in substitution for the
Existing Pledges substantially in the form of the security documents used by the parties in connection with the Existing Pledges; 

  
 2 

 (Execution Version) 

 

	 	(b)	a first ranking priority fixed pledge and security interest in favor of IC with respect to ICPS Interests comprising 66% of all ICPS Interests issued and outstanding as of the Supplement 1 Date (including the New ICPS
Shares), substantially in the form of the Security over Shares Agreement (as defined in Schedule 1 hereto); and 

  

	 	(c)	a security assignment in respect of the rights, title and interest of Kenon under the 145M Loan Agreement for the benefit of IC, including with respect to any future ICPS Interests that may be issued to Kenon upon
conversion of the Vendor Loans pursuant to such 145M Loan Agreement from time to time, substantially in the form of the Security Assignment Agreement (as defined in Schedule 1 hereto). 

 

	 	2.4.	It is expressly ackowledged that IC shall not have a security interest in the rights of Kenon under the 75M Loan Agreement. Nowithstanding the foregoing, pursuant to Section 7.3.4 of the Loan Agreement, Kenon undertakes
that: 

  

	 	(a)	it shall not cause ICPS to prepay any amounts under the 75M Loan Agreement if such prepayment would result in the occurrence of an Event of Default (as such term is defined in Loan Agreement); 

 

	 	(b)	not to exercise any Conversion Right under the Vendor Loans if the exercise of such right results in the shares of ICPS that are subject to the Security over Shares Agreement and the Security over Shares Agreement to be
entered into pursuant to Security Assignment Agreement constituting less than 66% of all the issued and outstanding shares of ICPS as of the date of such conversion ; and 

 

	 	(c)	following the occurrence of an event of default (being an Event of Default as defined under the Loan Agreement) and while it is continuing, not to cause ICPS to repay in cash, nor enforce any of its rights under the
Vendor Loan Agreements so as to result in, ICPS repaying in cash any part of the principal amounts owing under either of the Vendor Loan Agreements unless such repayments are in the same proportion to the principal amounts outstanding under each of
the Vendor Loan Agreements. 

 For the purpose of this Section, a Conversion Right means a right to convert amounts owed to it
under the terms of the Vendor Loan Agreements (as the case may be) into shares of ICPS. 
  

	 	2.5.	The Parties hereby agree that in the event that Kenon shall notify IC that ICPS has printed a Red Herring Prospectus in connection with the commencement of a roadshow in respect of the IPO (the date of Kenon’s
notice of same, a “Red Herring Date”), the following shall apply: 

  

	 	(a)	The pledge and security interest in respect of ICP Interests granted by ICPS shall be released effective immediately, subject to the undertakings of Kenon under this Section. 

 

	 	(b)	Kenon shall be entitled and authorized to (and shall be responsible for) date and use the Red Herring Release Documents (as defined below) to strike out the pledge and security interest over ICP Interests from any
public registry and to instruct IC Power to remove any record of such pledge and security interest made in its shareholder register and for the purpose hereof, to request of the Escrow Agent to release the Red Herring Release Documents (as defined
below) in accordance with the terms of the Escrow Instructions (as defined below). 

  
 3 

 (Execution Version) 

 

	 	(c)	Upon the occurrence of the following condition (the “Pledge Reinstatement Condition”): an IPO has not been consummated by the expiry of eight (8) weeks from the Red Herring Date (or such other date as
the Parties may agree in writing) (such date, an “Offering Launch Expiry Date”), Kenon and ICPS will thereupon reinstate (and Kenon will cause ICPS to so reinstate) the pledge and security interest over 66% of ICP Interests in
favour of IC substantially in the form of the security documents used by the parties in connection with the Existing Pledges and in accordance with the security documents agreed between the Parties, and shall take all action and deliver all
documents required in respect thereof in accordance with the Loan Agreement and the ICP Share Pledge Agreement (as defined in Schedule 1 hereto). For the purpose aforesaid, Kenon or ICPS will deliver to MLG&LB Trust Ltd. (the “Escrow
Agent”) on the Red Herring Date an undated executed set of ICP Pledge Reinstatement Documents (as defined below). Within seven (7) days from receiving a letter signed by IC confirming the occurrence of the Pledge Reinstatement Condition (a
copy of which will be delivered concurrently to Kenon and ICPS) and if not legally barred by order of a competent court, the Escrow Agent shall deliver the ICP Pledge Reinstatement Documents to IC and IC is hereby authorized and empowered to date
the ICP Pledge Reinstatement Documents (with the Offering Launch Expiry Date) and submit the documents required for the filing and registration of the ICP Share Pledge Agreement, and the pledge and security interest constituted thereby, with the
Israeli Registrar of Pledges and with ACRA. 

  

	 	(d)	Until the earlier of the consummation of an IPO and the reinstatement of the pledge and security interest over the ICP Interests in accordance with paragraph (c) of this Section 2.5, Kenon and ICPS will not (and Kenon
will ensure that ICPS will not) (i) sell, assign, transfer (by operation of law or otherwise), or otherwise dispose of, or grant any option with respect to, any of the ICP Interests, nor (ii) create or permit to exist any lien, security interest,
option or other charge or encumbrance upon or with respect to any of the ICP Interests. 

 In this Section - 

“Red Herring Prospectus” means a preliminary prospectus in connection with the IPO, in which the expected price range for the
shares to be offered to the public thereunder is completed on the cover page of such preliminary prospectus and on the basis of which ICPS shall conduct its roadshow (or use some other manner of collecting binding purchase orders) for such offering.

  

	 	2.6.	All references in the Loan Agreement to IC Power and to ICP Interests shall be read and construed as references to ICPS and to ICPS Interests, respectively (and shall cease to apply to IC Power and to ICP Interests),
save for such references contained in any recital paragraphs and in Sections 1.2.11, 1.2.12, 7.3.1, 7.3.1A and 7.3.5 of the Loan Agreement (which will continue to apply to IC Power and to ICP Interests only) and in Sections 7.1 (which will cease to
apply to ICP once the ICP Interests are no longer pledged) and 7.2.2 (which will be read and construed as referring to both ICPS and IC Power). It is hereby agreed that reference in Section 7.3.6 to the Loan Agreement to the release of the pledges
created under the Loan Agreement shall be read and construed as reference also to the securities created under Sections 2.3(c) hereto. 

  

	 	2.7.	Until the consummation of an IPO, the events of default set out in Sections 8.3, 8.4 and 8.5 of the Loan Agreement shall be construed such that any reference therein to Kenon shall be read as a reference to each of
Kenon or ICPS, as may be applicable. 

  

	 	2.8.	Kenon undertakes that before effecting or entering into any Transaction (including an initial public offering) in respect of IC Power or the pledged ICP Interests (as applicable) prior to an IPO it shall notify IC
thereof and the Parties shall consult in good faith to determine what adjustment is likely to be appropriate to account for the effect of such Transaction and to achieve the outcome that would have applied had the Parties not effected the
arrangements pursuant to this Supplement. 

  
 4 

 (Execution Version) 

 

	3.	Representations 

 The representations and warranties set out in Section 6 of the
Loan Agreement are true and correct as of the date hereof and the Supplement 1 Date as if made on such dates with reference to the facts and circumstances then existing, and such that references to the Loan Agreement therein shall be construed as
references which include this Supplement. 
  

	4.	Completion of ICPS IPO Restructuring and Conditions Subsequent 

  

	 	4.1.	On the Supplement 1 Date, being the date on which IC notifies Kenon in writing that it has received all of the documents listed in paragraph 1 of Schedule 1 (the “Schedule 1 Documents”), all of the
following will be completed, satisfied and complied with: 

  

	 	4.1.1.	Kenon will transfer 10,000,100 ordinary shares of IC Power par value NIS0.01 each, comprising all of the issued and outstanding share capital of IC Power (of which 6,600,066 ordinary shares (66%) are subject to the
Existing Pledges and as of the Supplement 1 Date shall be subject to the pledge and security interest created by the ICP Share Pledge Agreement), to ICPS, a wholly-owned subsidiary of Kenon. 

 

	 	4.1.2.	In consideration for the transfer to it by Kenon of the ICP Interests, ICPS shall (i) issue to Kenon 559,309 ordinary shares in the capital of ICPS (the “New ICPS Shares”), which together with one
ordinary share of ICPS issued and outstanding and owned by Kenon as of the date hereof, will constitute the entire (100%) ICPS Interests, free and clear of any charge, pledge, lien or other security interest (other than pursuant to the ICPS Share
Pledge Agreement), options, third party rights or any restrictions or limitations on transfer; and (ii) undertake to repay the Vendor Loans pursuant to the 145M Loan Agreement and the 75M Loan Agreement (the transactions under paragraphs 4.1.1 and
4.1.2, the “ICPS IPO Restructuring”). 

  

	 	4.1.3.	IC will deliver to Kenon executed pledge annulment notification forms for the removal of the Existing Pledges from the public registry maintained by the Israeli Registrar of Pledges and by ACRA. 

 

	 	4.1.4.	IC will deliver to Kenon and IC Power a notice of its consent to the transfer of all of the shares in IC Power that are subject to the Existing Pledges from Kenon to ICPS in the form attached hereto as
Annex 4.1.4. 

  

	 	4.1.5.	IC will deliver to the Escrow Agent (i) undated executed pledge annulment notification forms in respect of the pledge and security interest over ICP Interests registered with the Israeli Pledges Registrar under the ICP
Share Pledge Agreement; (ii) undated executed pledge annulment notification forms in respect of the pledge and security interest over ICP Interests registered with ACRA under the ICP Share Pledge Agreement; and (iii) undated executed instructions to
IC Power that it may delete the annotation entered in its internal shareholder register in respect of such pledge (together, the “Red Herring Release Documents”) all in the form attached hereto as Annex 4.1.5A. The Red
Herring Release Documents will be held by the Escrow Agent in escrow and may be used in accordance with the escrow instructions in form attached hereto as Annex 4.1.5B (the “Escrow Instructions”). 

  
 5 

 (Execution Version) 

 

	 	4.1.6.	Kenon will deliver to the Escrow Agent (i) an undated executed pledge agreement in the form of the ICP Share Pledge Agreement in respect of the pledge and security interest over ICP Interests to be reinstated in
accordance with Section 2.5(c) above; (ii) undated executed pledge notification forms in respect of such pledge to be registered with the Israeli Pledges Registrar; (iii) undated executed statement containing particulars of charge in relation to the
charge of and security interest over the ICP Interests which will be filed with ACRA; (iv) an authorisation letter authorising ICPS’s legal counsel to file the above statement containing particulars of charge with ACRA; and (v) undated executed
instructions to IC Power to reinstate the annotation in its internal shareholder register in respect of such pledge (together, the “ICP Pledge Reinstatement Documents”). The ICP Pledge Reinstatement Documents will be held by the
Escrow Agent in escrow and may be used in accordance with the Escrow Instructions. 

 For the purpose of Section 4.1 hereto,
delivery of the Schedule 1 Document shall be deemed completed by Kenon and ICPS by emailing of signed and scanned versions of the Schedule 1 Documents with a written confirmation from Adv. Robert Rosen that the originals of the executed Schedule 1
Documents are duly signed and will be promptly sent by express courier to IC. 
 For the purpose of Section 4.1.5 hereto, delivery of the
ICP Pledge Reinstatement Documents shall be deemed completed by emailing of signed and scanned versions thereof to the Escrow Agent with a written confirmation from Adv. Robert Rosen that the originals of the executed ICP Pledge Reinstatement
Documents are duly signed and will be promptly sent by express courier to the Escrow Agent. 
  

	 	4.2.	Kenon will pay to IC on or before the Supplement 1 Date the amount of all costs and expenses (including legal fees) reasonably incurred by IC in connection with the negotiation, preparation and entry into this
Supplement, not exceeding an amount of US$115,000. 

  

	 	4.3.	Kenon undertakes to deliver the documents set out in paragraph 2 of Schedule 2 (or cause the same to be delivered) to IC as soon as reasonably practicable, but not later than 7 Business Days following the Supplement 1
Date. 

  

	 	4.4.	ICPS undertakes to deliver the documents set out in paragraph 3 of Schedule 3 (or cause the same to be delivered) to IC as soon as reasonably practicable, but not later than 10 Business Days following the Supplement 1
Date. 

  

	5.	Notices 

  

	 	5.1.	Notwithstanding the provisions of Section 9.9 (Notices), and in addition to the provisions of Section 9.11 (Jurisdiction and Service of process), of the Loan Agreement, any notice, demand or other communication required
to be given by IC to Kenon and/or ICPS under the Loan Agreement and this Supplement will be sent, and copies of any documents served on IC Green or any other service of agent for process will also be sent, to Kenon and ICPS to their respective
addresses set out herein by email to all email addresses set out below together with registered mail or hand delivery: 

  

			
	if to Kenon:
		
	Address:	  	1 Temasek Avenue #36-01
		  	Millenia Tower
		  	Singapore 039192

  
 6 

			
	e-mail:	  	RobertR@kenon-holdings.com
		  	TzahiG@kenon-holdings.com
		  	yoavd@kenon-holdings.com
		
	Attention:	  	Legal Department, Finance Department
	
	if to ICPS:
		
	Address:	  	1 Temasek Avenue #36-01
		  	Millenia Tower
		  	Singapore 039192
		
	e-mail:	  	RobertR@kenon-holdings.com
		  	TzahiG@kenon-holdings.com
		  	yoavd@kenon-holdings.com
		
	Attention:	  	Legal Department, Finance Department

 or at such other address or email as such Parties shall have furnished to the other in writing in accordance
with this Section and Section 9.9 of the Loan Agreement. 
  

	6.	General Provisions 

  

	 	6.1.	This Supplement shall be read and construed together with the Loan Agreement as one agreement, and, save as expressly amended by this Supplement, all terms and conditions of the Loan Agreement shall remain unaltered and
in full force and effect. 

  

	 	6.2.	Nothing in this Supplement shall constitute a waiver by IC of any of the rights or remedies available to it under the Loan Agreement or any security. 

 

	 	6.3.	This Supplement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of Israel, without regard to its conflict of laws rules. 

 

	 	6.4.	This Supplement may be executed in any number of counterparts (including by fax transmission and email) all of which, taken together, shall constitute one and the same Supplement and any parties may enter into this
Supplement by executing a counterpart. 

 [Signature Page to Follow] 

  
 7 

 IN WITNESS WHEREOF, the Parties have executed this SUPPLEMENT NO. 1 to the LOAN AGREEMENT as of the date
first above written. 
  

									
	ISRAEL CORPORATION LTD.	 		 	KENON HOLDINGS LTD.
				
	

	 		 		 	
	  
	 		 	  

					
	By:	 	 Adv. Maya Alcheh-Kaplan
	 		 	By:	 	  

					
	Title:	 	 Executive V.P., General Counsel and Company Secretary
	 		 	Title:	 	  

					
	By:	 	Mr. Sagi Kabla	 		 		 	
					
	Title:	 	CFO	 		 		 	

 Acceptance and undertaking of ICPS 

We, the undersigned, IC Power Pte. Ltd., hereby accept and undertake in favour of IC, without prejudice to the obligations and liabilities of Kenon, to
comply with and to observe the terms of the Loan Agreement. We confirm that this acceptance and undertaking has been duly signed by our authorised signatories, and is binding on us for all intents and purposes in accordance with its terms. 

 

			
	IC POWER PTE. LTD.
	
	  

		
	By:	 	  

		
	Title:	 	  

 IN WITNESS WHEREOF, the Parties have executed this SUPPLEMENT NO. 1 to the LOAN AGREEMENT as of the date
first above written. 
  

									
	ISRAEL CORPORATION LTD.	 		 	KENON HOLDINGS LTD.
			
		 		 	

	  
	 		 	  

					
	By:	 	  
	 		 	By:	 	 KENNETH GILBERT CAMBIE

					
	Title:	 	  
	 		 	Title:	 	 DIRECTOR

 Acceptance and undertaking of ICPS 

We, the undersigned, IC Power Pte. Ltd., hereby accept and undertake in favour of IC, without prejudice to the obligations and liabilities of Kenon, to
comply with and to observe the terms of the Loan Agreement. We confirm that this acceptance and undertaking has been duly signed by our authorised signatories, and is binding on us for all intents and purposes in accordance with its terms. 

 

			
	IC POWER PTE. LTD.
	
	

	  

		
	By:	 	 Tzahi Goshen

		
	Title:	 	 Director

 Schedule 1 - Conditions to Supplement 

 

	1.	Conditions Precedent 

  

	 	1.1.	A copy of: 

  

	 	1.1.1.	the share certificates in respect of the ICPS Interests; 

  

	 	1.1.2.	the stock transfer forms or equivalent duly executed by Kenon in blank in relation to the ICPS Interests; and 

  

	 	1.1.3.	the register of members of ICPS extracted from the Accounting and Corporate Regulatory Authority in Singapore (“ACRA”). 

 

	 	1.2.	A copy of a charge agreement granting a first ranking charge and security interest in favor of IC over the ICPS Interests in the form of the Security over Shares Agreement attached hereto as Annex 1.2 (the
“Security over Shares Agreement”) duly executed by Kenon and IC. 

  

	 	1.3.	A copy of the 145M Loan Agreement in the form attached hereto as Annex 1.3, duly executed by each of Kenon and ICPS. 

  

	 	1.4.	A copy of the 75M Loan Agreement in the form attached hereto as Annex 1.4, duly executed by each of Kenon and ICPS. 

  

	 	1.5.	A copy of a Security Assignment of Intercompany Loan Agreement in respect of the rights, title and interest of Kenon under the 145 M Loan Agreement entered into by Kenon for the benefit of IC in the form attached hereto
as Annex 1.5 (the “Security Assignment Agreement”) duly executed by Kenon and IC. 

  

	 	1.6.	A copy of a pledge agreement granting a first ranking pledge and security interest in favor of IC over the ICP Interests in the form delivered with respect to the Existing Pledges (the “ICP Share Pledge
Agreement”) duly executed by ICPS and IC. 

  

	 	1.7.	A copy of the share transfer agreement in the form of the Share Transfer Agreement attached hereto as Annex 1.3 (the “Share Transfer Agreement”) duly executed by Kenon and ICPS.

  

	 	1.8.	The documents required for the filing and registration of the ICP Share Pledge Agreement, the Security over Shares Agreement, the Security Assignment Agreement, and the pledges, charges and security interests
constituted thereby with ACRA. 

  

	 	1.9.	The notice required for the filing and registration of the ICP Share Pledge Agreement and the pledge and security interest constituted thereby with the Israeli Registrar of Pledges. 

 

	 	1.10.	Executed instructions of ICPS to IC Power pursuant to the ICP Share Pledge Agreement. 

  

	 	1.11.	A copy of the updated shareholder register of IC Power (evidencing the pledge and security interest created by the ICP Share Pledge Agreement). 

 

	 	1.12.	A copy of the constitutional documents of Kenon and ICPS. 

  

	 	1.13.	A copy of the resolutions of the board of directors of ICPS: 

  

	 	1.13.1.	approving the terms of, and the transactions contemplated by, this Supplement, the ICP Share Pledge Agreement, the Share Transfer Agreement, the 145M Loan Agreement, the 75M Loan Agreement and the Security Assignment
Agreement (the “ICPS Documents”) and resolving that it executes the ICPS Documents; 

	 	1.13.2.	authorising a specified person or persons to execute the ICPS Documents on its behalf; and 

  

	 	1.13.3.	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with the ICPS Documents. 

 

	 	1.14.	A copy of a certificate under Section 76A(6) of the Companies Act, Chapter 50 of Singapore in relation to compliance with the Singapore financial assistance whitewash procedures by ICPS. 

 

	 	1.15.	A copy of the resolutions of the board of directors of Kenon: 

  

	 	1.15.1.	approving the terms of, and the transactions contemplated by this Supplement, the Security Over Shares Agreement, the Share Transfer Agreeement, the 145M Loan Agreement, the 75M Loan Agreement and the Security
Assignment Agreement (the “Kenon Documents”) and resolving that it executes the Kenon Documents; 

  

	 	1.15.2.	authorising a specified person or persons to execute the Kenon Documents; and 

  

	 	1.15.3.	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents to be signed and/or despatched by it under or in connection with the Kenon Documents. 

 

	 	1.16.	A copy of the resolutions in writing of the sole shareholer of the issued shares in ICPS approving the terms of, and the transactions contemplated by, the ICPS Documents. 

 

	 	1.17.	A certificate, in the form attached hereto as Annex 1.17, signed by duly authorised signatory/ies of Kenon confirming that as of the Supplement 1 Date, no Default, breach of or non-compliance with any
material undertaking or material condition contained in the Loan Agreement has occurred and is continuing. 

 Schedule 2 - Conditions to Supplement 

 

	2.	Conditions Subsequent 

  

	 	2.1.	Evidence of the filing with ACRA of the documents referred to in paragraph 1.8 of Schedule 1. 

  

	 	2.2.	Evidence of the filing with Israeli Registrar of Pledges of the documents referred to in paragraph 1.9 of Schedule 1. 

  

	 	2.3.	Evidence of payment of stamp duty and any and all fees and charges payable in Singapore in respect of the documents referred to in paragraph 1.8 of Schedule 1. 

 

	 	2.4.	A legal opinion of Allen & Gledhill LLP with respect to: 

  

	 	2.4.1.	the Security over Shares Agreement and the Security Assignment Agreement and the charges and security interests constituted thereby; and 

 

	 	2.4.2.	the capacity of ICPS to enter into the ICP Share Pledge Agreement, 

 in each case, in the form
attached hereto as Annex 2.4. 

 Schedule 3 - Conditions to Supplement 

 

	3.	Conditions Subsequent (ICPS) 

  

	 	3.1.	A copy of a resolution signed by all the holders of the issued shares in ICPS adopting such changes to the constitutional documents of ICPS as IC reasonably requires to, among other things, remove any restriction on any
transfer of shares in ICPS pursuant to any enforcement of the Security over Shares Agreement in the form attached hereto as Annex 3.1.EX-4.5

 Exhibit 4.5 

TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACT FOR 

THE CERRO DEL AGUILA HYDROELECTRIC POWER PLANT 

between 
 Cerro del Aguila SA 

and 
 A joint venture comprising
Astaldi S.p.A. and GyM SA 

 Table of Contents 
  

									
	I.	  	INTERPRETATION	  	 	1	  
				
		  	1.1	  	Definitions	  	 	1	  
		  	1.2	  	Headings	  	 	15	  
		  	1.3	  	Interpretation	  	 	15	  
			
	II.	  	OWNER	  	 	16	  
				
		  	2.1	  	Access to and Possession of the Project Areas	  	 	16	  
		  	2.2	  	Permits, Licenses or Approvals	  	 	17	  
		  	2.3	  	Owner’s Right to do Work	  	 	17	  
			
	III.	  	OWNER’S REPRESENTATIVE	  	 	18	  
				
		  	3.1	  	Owner’s Representatives Duties and Authority	  	 	18	  
		  	3.2	  	No Implied Waiver	  	 	18	  
		  	3.3	  	Owner’s Representative’s Authority to Delegate	  	 	18	  
		  	3.4	  	Owner’s Representative’s Instructions	  	 	19	  
			
	IV.	  	SUPERVISOR	  	 	19	  
				
		  	4.1	  	General Obligations	  	 	19	  
		  	4.2	  	Supervisor’s Rights	  	 	20	  
		  	4.3	  	Control and Monitoring of the Project Schedule	  	 	20	  
		  	4.4	  	Reporting	  	 	20	  
		  	4.5	  	Supervisor’s duties during Warranty Period	  	 	21	  
			
	V.	  	CONTRACTOR	  	 	21	  
				
		  	5.1	  	General Obligations	  	 	21	  
		  	5.2	  	Contractor’s Representative	  	 	22	  
		  	5.3	  	Coordination of the Works	  	 	23	  
		  	5.4	  	Subcontractors	  	 	24	  
		  	5.5	  	Assignment of Subcontractor’s Obligations	  	 	25	  
		  	5.6	  	Setting Out	  	 	25	  
		  	5.7	  	Quality Assurance/Quality Control (QA/QC)	  	 	25	  
		  	5.8	  	Existing Project Data	  	 	25	  
		  	5.9	  	Foundations and Tunnels	  	 	27	  
		  	5.10	  	Access to the Concession Area	  	 	27	  
		  	5.11	  	Project Schedule	  	 	28	  
		  	5.12	  	Progress Reports and Meetings	  	 	29	  
		  	5.13	  	Contractor’s Equipment	  	 	30	  
		  	5.14	  	Safety Precautions	  	 	30	  
		  	5.15	  	Protection of the Environment	  	 	31	  
		  	5.16	  	Public Relations with the Local Communities	  	 	32	  
		  	5.17	  	Clearance of Project Areas	  	 	32	  
		  	5.18	  	Security of the Project Areas	  	 	33	  
		  	5.19	  	Contractor’s Operations on Project Areas	  	 	33	  
		  	5.20	  	Remains	  	 	34	  

  
 i 

									
		  	5.21	  	Use of Explosives	  	 	34	  
		  	5.22	  	Water Borne Traffic	  	 	35	  
		  	5.23	  	Training Program	  	 	35	  
		  	5.24	  	Participation	  	 	35	  
			
	VI.	  	DESIGN	  	 	35	  
				
		  	6.1	  	Design of the Works	  	 	35	  
		  	6.2	  	Construction Documents and Workbook	  	 	36	  
		  	6.3	  	Contractor’s Undertaking	  	 	37	  
		  	6.4	  	Technical Standards and Regulations	  	 	38	  
		  	6.5	  	Samples	  	 	38	  
		  	6.6	  	As-Built Drawings	  	 	38	  
		  	6.7	  	Operation and Maintenance Manuals	  	 	39	  
		  	6.8	  	Error by Contractor	  	 	39	  
		  	6.9	  	Patent Rights	  	 	39	  
			
	VII.	  	STAFF AND LABOR	  	 	39	  
				
		  	7.1	  	Engagement of Staff and Labor	  	 	39	  
		  	7.2	  	Rates of Wages and Conditions of Labor	  	 	40	  
		  	7.3	  	Persons in the Service of Others	  	 	40	  
		  	7.4	  	Labor Laws	  	 	40	  
		  	7.5	  	Working Hours	  	 	41	  
		  	7.6	  	Facilities for Staff and Labor	  	 	41	  
		  	7.7	  	Health and Safety	  	 	41	  
		  	7.8	  	Contractor’s Superintendence	  	 	42	  
		  	7.9	  	Contractor’s Personnel	  	 	42	  
		  	7.10	  	Disorderly Conduct	  	 	43	  
		  	7.11	  	Alcoholic Liquor or Drugs	  	 	43	  
		  	7.12	  	Contractor’s Organizational Chart	  	 	43	  
		  	7.13	  	Labor Actions	  	 	43	  
			
	VIII.	  	MATERIALS AND WORKMANSHIP	  	 	44	  
				
		  	8.1	  	Manner of Execution	  	 	44	  
		  	8.2	  	Delivery to the Concession Area	  	 	44	  
		  	8.3	  	Inspection	  	 	45	  
		  	8.4	  	Testing	  	 	45	  
		  	8.5	  	Rejection	  	 	46	  
		  	8.6	  	Ownership of Major Items of Equipment, Materials or Other Works	  	 	46	  
			
	IX.	  	COMMENCEMENT, DELAYS AND SUSPENSION	  	 	46	  
				
		  	9.1	  	Time for Completion	  	 	47	  
		  	9.2	  	Extension of Time for Completion	  	 	47	  
		  	9.3	  	Extension of the Time for Completion –	  	 	49	  
		  	9.5	  	Rate of Progress	  	 	50	  
		  	9.6	  	Liquidated Damages for Delay and Bonuses	  	 	51	  
		  	9.7	  	Suspension of Works	  	 	52	  
		  	9.8	  	Consequences of Suspension	  	 	53	  

  
 ii 

									
		  	9.9	  	Prolonged Suspension	  	 	53	  
		  	9.10	  	Resumption of Works	  	 	53	  
		  	9.11	  	Burden of Proof	  	 	53	  
			
	X.	  	PERFORMANCE TESTS	  	 	54	  
				
		  	10.1	  	Contractor’s Obligations	  	 	54	  
		  	10.2	  	Preparation and Timing for Performance Tests	  	 	54	  
		  	10.3	  	Punch List	  	 	54	  
		  	10.4	  	Conduct of Performance Tests	  	 	55	  
		  	10.5	  	Failure to Achieve Performance Guarantee Level	  	 	56	  
		  	10.6	  	Interference with Performance Tests	  	 	57	  
		  	10.7	  	Issuance of Certificates	  	 	57	  
		  	10.8	  	Modifications to Achieve Passage of Performance Tests	  	 	57	  
		  	10.9	  	Early Operation	  	 	57	  
		  	10.10	  	Increased Capacity Bonuses and Spill Water Generator Bonus	  	 	58	  
			
	XI.	  	PARTIAL TAKING-OVER, FINAL TAKING-OVER AND ACTUAL PROJECT ACCEPTANCE	  	 	58	  
				
		  	11.1	  	Partial Taking-Over Certificate and Final Taking-Over Certificate	  	 	58	  
		  	11.2	  	Operation by Owner after Partial Taking-Over	  	 	59	  
		  	11.3	  	Buy-Down Amount	  	 	59	  
		  	11.4	  	Actual Project Acceptance	  	 	60	  
		  	11.5	  	Issuance of Certificates	  	 	60	  
			
	XII.	  	CONTRACTOR’S REPRESENTATIONS AND WARRANTIES	  	 	61	  
				
		  	12.1	  	Representations and Warranties	  	 	61	  
			
	XIII.	  	DEFECTS LIABILITY	  	 	63	  
				
		  	13.1	  	Completion of Outstanding Works and Remedying Defects	  	 	63	  
		  	13.2	  	Cost of Remedying Defects	  	 	63	  
		  	13.3	  	Notice to Correct	  	 	63	  
		  	13.4	  	Extension of Warranty Period	  	 	64	  
		  	13.5	  	Removal of Defective Works	  	 	64	  
		  	13.6	  	Further Tests	  	 	64	  
		  	13.7	  	Contractor to Search	  	 	64	  
		  	13.8	  	Final Acceptance Certificate	  	 	65	  
		  	13.9	  	Unfulfilled Obligations	  	 	65	  
			
	XIV.	  	CONTRACT PRICE AND PAYMENT	  	 	65	  
				
		  	14.1	  	The Lump Sum Price	  	 	65	  
		  	14.2	  	Taxes and Duties	  	 	68	  
		  	14.3	  	Customs and Import Duty -	  	 	68	  
		  	14.4	  	Owner’s Right to Withhold or Set Off Payment	  	 	69	  
		  	14.5	  	Invoicing Documentation	  	 	69	  
		  	14.6	  	Security	  	 	69	  

  
 iii 

									
			
	XV.	  	VARIATIONS	  	 	71	  
				
		  	15.1	  	Right to Vary	  	 	71	  
		  	15.2	  	Variation Procedure	  	 	72	  
			
	XVI.	  	SUSPENSION OF WORKS	  	 	73	  
				
		  	16.1	  	Contractor’s Entitlement to Suspend Works	  	 	73	  
			
	XVII.	  	TERMINATION	  	 	74	  
				
		  	17.1	  	Termination by Owner -	  	 	74	  
		  	17.2	  	Termination by Contractor	  	 	77	  
		  	17.3	  	Payment on Termination	  	 	78	  
		  	17.4	  	Cessation of Works and Removal of Contractor’s Equipment	  	 	78	  
			
	XVIII.	  	RISK AND RESPONSIBILITY	  	 	79	  
				
		  	18.1	  	Indemnity	  	 	79	  
		  	18.2	  	Contractor’s Care of the Works	  	 	79	  
		  	18.3	  	Employees	  	 	80	  
		  	18.4	  	Limitation of Contractor’s Liability	  	 	80	  
		  	18.5	  	Liability	  	 	80	  
			
	XIX.	  	INSURANCE	  	 	81	  
				
		  	19.1	  	General	  	 	81	  
		  	19.2	  	Polices Obtained by the Contractor	  	 	81	  
		  	19.3	  	Requirements in Respect of Contractor’s Insurance	  	 	82	  
		  	19.4	  	Policies Obtained by Owner	  	 	83	  
		  	19.5	  	General Requirements for All Insurance	  	 	84	  
		  	19.6	  	Deductibles & Claims Management	  	 	86	  
		  	19.7	  	Subcontractor Insurance	  	 	86	  
			
	XX.	  	FORCE MAJEURE	  	 	87	  
				
		  	20.1	  	Definition of Force Majeure	  	 	87	  
		  	20.2	  	Effect of Force Majeure Event	  	 	88	  
		  	20.3	  	Contractor’s Responsibility	  	 	88	  
		  	20.4	  	Owner’s Responsibility	  	 	88	  
		  	20.5	  	Payment to the Contractor	  	 	88	  
			
	XXI.	  	CLAIMS, DISPUTES AND ARBITRATION	  	 	89	  
				
		  	21.1	  	Procedure for Claims	  	 	89	  
		  	21.2	  	Payment of Claims	  	 	90	  
		  	21.3	  	Negotiation between Senior Executives	  	 	90	  
		  	21.4	  	Arbitration	  	 	90	  
			
	XXII.	  	MISCELLANEOUS	  	 	91	  
				
		  	22.1	  	Law and Language	  	 	91	  

  
 iv 

									
		  	22.2	  	Communications	  	 	91	  
		  	22.3	  	Validity and Enforceability	  	 	92	  
		  	22.4	  	Documents on Site	  	 	92	  
		  	22.5	  	Construction Documents	  	 	93	  
		  	22.6	  	Contractor’s Use of Owner’s Documents	  	 	93	  
		  	22.7	  	No Technology Transfer	  	 	93	  
		  	22.8	  	Confidential Details	  	 	93	  
		  	22.9	  	Remedies Non-Exclusive	  	 	94	  
		  	22.10	  	Waiver	  	 	95	  
		  	22.11	  	Third-Party Beneficiaries	  	 	95	  
		  	22.12	  	Counterparts	  	 	95	  
		  	22.13	  	Entire Agreement	  	 	95	  
		  	22.14	  	Conflicting Provisions	  	 	95	  
		  	22.15	  	Joint Responsibility for Drafting	  	 	95	  
		  	22.16	  	Notice of Objection	  	 	96	  
		  	22.17	  	Compliance with Statutes, Regulations and Applicable Laws	  	 	96	  
		  	22.18	  	Rights of Assignment	  	 	97	  
		  	22.19	  	Financing Requirements	  	 	97	  
		  	22.20	  	Information for Lender’s Representative	  	 	97	  
		  	22.21	  	Documentation and Right of Audit	  	 	98	  

  

			
	Exhibits	  	
		
	Technical Specifications	  	Exhibit A
	Performance Guarantee Levels	  	Exhibit B
	Performance Test Protocol	  	Exhibit C
	Project Data	  	Exhibit D
	Contractor’s Organizational Chart	  	Exhibit E
	Contractor and Owner Permits	  	Exhibit F
	Main Spare Parts	  	Exhibit G
	Concession and Project Areas	  	Exhibit H
	Measurements & Payments – Risk Sharing Mechanism	  	Exhibit I
		
	Schedules	  	
		
	Preliminary Project Schedule	  	Schedule 1
	Subcontractors List	  	Schedule 2
	Advance Payment Bond	  	Schedule 3
	Performance Bond	  	Schedule 4
	Warranty Letter of Credit	  	Schedule 5
	Preliminary Schedule of Payments	  	Schedule 6
	Monthly Payment Certificate	  	Schedule 7
	Punch List Bank Guarantee	  	Schedule 8
	Performance Test Certificate	  	Schedule 9
	Partial Taking-Over Certificate	  	Schedule 10
	Final Taking-Over Certificate	  	Schedule 11
	Actual Project Acceptance Certificate	  	Schedule 12
	Final Acceptance Certificate	  	Schedule 13
	Final Payment Certificate	  	Schedule 14
	Reserved	  	Schedule 15

  
 v 

			
	Owner’s Parent Guaranty	  	Schedule 16
	Variation Order Proposal	  	Schedule 17
	Reserved	  	Schedule 18
	Contractor Safety Plan	  	Schedule 19
	Contractor Quality Assurance Program	  	Schedule 20
	Reserved	  	Schedule 21
	Form of Proof of Subcontractor Payment	  	Schedule 22
	Form of Labor Obligations’ Certificate	  	Schedule 23

  
 vi 

 This TURNKEY ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACT FOR CERRO DEL AGUILA
HYDROELECTRIC POWER PLANT, dated as of November 4th, 2011 (this “Contract”), is by and between: 

Cerro del Aguila SA (“Owner”); and 

Astaldi S.p.A. (“Astaldi”) and 

GyM SA (“GyM”) 

Astaldi and GyM (jointly with Astaldi and GyM, the “Contractor” and jointly with the Owner, the “Parties” including their
successors and assignees as permitted herein). 
 W I T N E S S E T H: 

WHEREAS, Owner desires to build, own and operate a 504 MW hydroelectric power plant (as hereinafter described) to be located in the
districts of Surcubamba and Colcabamba, department of Huancavelica, Peru (the “Plant”), in order to fulfill its obligations with the Ministry of Energy and Mines established in the Concession Contract (as hereinafter defined); 

WHEREAS, the Contractor desires to provide all the goods and services necessary for the design, engineering, procurement, construction,
commissioning and testing of the Plant, on a turnkey basis; 
 WHEREAS, Owner intends to obtain financing for the Plant; 

NOW, THEREFORE, in consideration of the mutual premises contained herein, the Parties, intending to be legally bound, hereby
agree as follows: 
  

	I.	INTERPRETATION 

  

	 	1.1	Definitions - In this Contract (as defined below) the words and expressions defined below shall have the meanings assigned to them. 

 

	 	1.1.1	“Access Contract” means the contract to be executed by a Governmental Authority that provides terms and conditions that will govern the design, procurement and construction of some or all of the Access
Roads and Accessways as set forth in Section 5.11. 

  

	 	1.1.2	“Access Roads” means the permanent roads, bridges and any infrastructure that the Contractor might need to build, alter or modify within the Concession Area for the execution of the Works, as further
described in the Technical Specifications. 

  

	 	1.1.3	“Access Routes” means the existing roads, bridges and any infrastructure, outside the Concession Area, that the Contractor might need to alter or modify in order to access or execute the Works, as
further described in the Technical Specifications. 

  
 1 

	 	1.1.4	“Accessway” means the temporary roads, bridges and any infrastructure, within the Concession Area, that the Contractor might need to build, alter or modify for the execution of the Works, as further
described in the Technical Specifications. 

  

	 	1.1.5	“Actual Project Acceptance Certificate” means the certificate issued by Owner under Section 11.4 in the form set forth in Schedule 12. 

 

	 	1.1.6	“Actual Project Acceptance Date” means the date after the Final Taking-Over Date when the Contractor has accomplished all the criteria described in Section 11.4. 

 

	 	1.1.7	“Additional Installed Capacity Bonus” means (a) the difference between the Low Net Electric Output and the High Net Electric Output multiplied by (b) US$ 450.00 per kilowatt.

  

	 	1.1.8	“Advance Payment Bond” means the bank guaranty to be provided by Contractor substantially in the form set forth in Schedule 3. 

 

	 	1.1.9	“Affiliate” means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person. A Person “controls”
any Person in which it has the power to vote, directly or indirectly, five percent (5%) or more of the voting interest in such Person or, in the case of a partnership, if it is the general partner. 

 

	 	1.1.10	“Applicable Laws” means all legally binding laws, statutes, orders, treaties, ordinances, judgments, decrees, injunctions, writs and orders of any court, arbitrator or governmental agency or authority
applicable to, and legally binding rules, regulations, orders and interpretations of any governmental instrumentality or agency (including COES), court or other body having jurisdiction over: 

 

	 	(a)	the Contractor’s or Owner’s (as applicable) obligations to be performed hereunder; 

  

	 	(b)	the provision of energy or capacity from the Plant; or 

  

	 	(c)	the execution of the Works; 

 all as such may be in effect from time to time.

  

	 	1.1.11	“Applicable Permits” means all licenses, authorizations, consents, decrees, permits, waivers, privileges or approvals required to be obtained or maintained in connection with the Contractor’s and
Owner’s obligations to be performed hereunder, the provision of energy, capacity or the performance of the Works, as may be in effect from time to time and includes the Environmental Impact Assessment. 

 

	 	1.1.12	“Astaldi” has the meaning ascribed to it in the introduction. 

  
 2 

	 	1.1.13	“Auxiliary Services” means the drainage system, illumination, air conditioning, fire prevention and other similar services required in connection with the Contractor’s performance of the Works,
described in the Technical Specifications. 

  

	 	1.1.14	“Base Date” means the date fifteen (15) days prior to the Effective Date. 

  

	 	1.1.15	“Business Day” means any day that is not Saturday or Sunday, or a non working day for government employees in Peru pursuant to the Applicable Laws. With respect to any payment obligation by a Party
under the Contract, shall mean a day on which the banks operating in Lima, Peru are open for the processing of transfer of funds. 

  

	 	1.1.16	“Buy-Down Amount” means the sum due and payable by the Contractor to Owner calculated with reference to Section 11.3. 

 

	 	1.1.17	“Center” means the center for dispute resolution of the International Chamber of Commerce. 

  

	 	1.1.18	“Change in Law” means changes to any Applicable Laws or Applicable Permits that directly affect the Contractor’s lawful design, construction or execution of the Works, commissioning and testing of
the Plant which are issued, adopted, amended, modified, repealed, reinterpreted, promulgated or enacted by any Peruvian Government Authority after the Base Date. 

  

	 	1.1.19	“COES” means “Comité de Operación Económica del Sistema Interconectado Nacional”. 

  

	 	1.1.20	“Concession Area” means the geographical area identified as such and described in Exhibit H. 

  

	 	1.1.21	“Concession Contract” means the contract executed between Owner and the Ministry of Energy and Mines of Peru dated June 24, 2011, as it may be assigned or amended. 

 

	 	1.1.22	“Contract” is defined in the Preamble hereof and includes the Schedules, the Technical Specifications and the Exhibits and such documents as may be expressly incorporated herein. 

 

	 	1.1.23	“Commencement Date” means the date on which Owner’s Representative issues the Limited Notice to Commence to the Contractor. 

 

	 	1.1.24	“Confidential Information” has the meaning defined in Section 22.8. 

  

	 	1.1.25	“Consortium Agreement” means the consortium agreement to be entered by and between Astaldi and GyM. 

  
 3 

	 	1.1.26	“Construction Documents” means all drawings, calculations, samples, patterns, models, operation and maintenance manuals, and other manuals and information of a similar nature, to be submitted by the
Contractor as required hereby including all engineering and construction documentation required by the Technical Specifications. 

  

	 	1.1.27	“Contractor” is defined in the introduction hereof. 

  

	 	1.1.28	“Contractor’s Equipment” means all machinery, apparatus and other things (other than Temporary Works) required for the execution and completion of the Works and the remedying of any Defects or
Deficiencies, but does not include Major Items of Equipment, Materials, or other things intended to form or forming part of the Permanent Works. 

  

	 	1.1.29	“Contractor’s Permits” means the permits described in Exhibit F. 

  

	 	1.1.30	“Contractor’s Organizational Chart” means the organizational chart included in Exhibit E. 

  

	 	1.1.31	“Contractor’s Representative” means the Person named as such in this Contract or other Person appointed from time to time by the Contractor under Section 5.2. 

 

	 	1.1.32	“Cost” means (a) all expenditure properly incurred or to be incurred by Contractor, whether on or off the Project Areas, plus ten percent (10%) for head office costs and any similar concepts
and (b) excluding Profit unless expressly so provided herein. 

  

	 	1.1.33	“Cure Period” has the meaning specified in Section 10.5. 

  

	 	1.1.34	“Dangerous Substance” means any natural or artificial substance, whether in the form of solid, liquid or gas, alone or in combination with each other or any other substance, or radiation in each of the
foregoing cases capable of causing harm to man or any other living organism, or capable of damaging the environment or public health or welfare, including but not limited to, controlled, special, hazardous, toxic or dangerous waste, and whether or
not subject to regulation, licensing or permitting under any Applicable Laws or otherwise. 

  

	 	1.1.35	“Defects, Deficiencies, Deficient or Deficiency” means any portion of the Works which, on the date when any such works are completed by the Contractor, do not conform to the Technical Specifications,
the Construction Documents or the warranties given in the Contract or is defective or deficient including defects in materials, workmanship or design. 

  

	 	1.1.36	“Detailed Design” means the drawings, calculations and other technical documentation and information to be prepared by the Contractor for the final design of the Plant. 

 

	 	1.1.37	“Disclosing Party” means (a) a Party that provides Confidential Information to the Receiving Party; (b) such Party’s Affiliates; and, (c) such Party’s or its Affiliate’s
directors, officers, employees, consultants, subcontractors, advisors, rating agencies, insurers or financial institutions. 

  
 4 

	 	1.1.38	“Dispute” means any controversy, discussion, demand, difference, disagreement or claim arising from, or related or connected to this Contract, including but not limited to any controversy, discussion,
demand, difference, disagreement or claim over the validity, interpretation, effectiveness, termination, enforcement or non-performance thereof. 

  

	 	1.1.39	“Dollars” or “US$” means Dollars of the United States of America. 

  

	 	1.1.40	“Early Final Taking Over Bonus” means US$ 65,000.00 per day with respect to the first Generator Set, US$ 50,000.00 per day with respect to the second Generator Set and US$ 80,000.00 per
day with respect to the Plant. 

  

	 	1.1.41	“Early Operation Extension Period” has the meaning set forth in Section 5.1. 

  

	 	1.1.42	“Easement Rights” means the easement rights or any other right to possess or use land or real estate granted in favor of Owner by the owners of the land or by any Governmental Authority to execute the
Works. 

  

	 	1.1.43	“Effective Date” means the date of this Contract, which is November 4th, 2011. 

 

	 	1.1.44	“Efficiency Test” means the test (conducted in accordance with Exhibit C) of each of the Generator Sets, meeting at all times all the other Performance Guarantee Levels, to determine the compliance with
the Guaranteed Efficiency or the Minimum Efficiency Levels. 

  

	 	1.1.45	“Electricity Measuring Point” is the high voltage side of the step up transformers for each Generator Set. 

  

	 	1.1.46	“Eligible Bank” means any bank or financial institution which has non-credited enhanced long-term senior unsecured debt rated at least A3 by Moody’s Investors Service or A- by Standard &
Poor’s Rating Services, and is acceptable to Owner. 

  

	 	1.1.47	“Environmental Impact Assessment” or “EIA” means the Environmental Impact Assessment attached in Exhibit D, as it may be amended. 

 

	 	1.1.48	“EST” means the Q System subdivision of different excavation and support types for tunnels to be excavated at the Works, as determined in Exhibit I. 

 

	 	1.1.49	“Final Acceptance Certificate” means the certificate issued by Owner substantially in the form set forth in Schedule 13. 

  
 5 

	 	1.1.50	“Final Payment” means the payments made upon approval by Owner of the Final Payment Certificate. 

  

	 	1.1.51	“Final Payment Certificate” means the payment certificate approved by Owner and submitted by the Contractor substantially in the form set forth in Schedule 14. 

 

	 	1.1.52	“Final Taking-Over Certificate” means a certificate issued under Section 11.1 for the Plant as a whole, in the form set forth in Schedule 11. 

 

	 	1.1.53	“Final Taking-Over Date” means the date when the Contractor has demonstrated that the Plant, as a whole, meets or exceeds the Final Taking-Over Levels, which notification date shall be the date
acknowledged and stated by Owner’s Representative in the Final Taking-Over Certificate. 

  

	 	1.1.54	“Final Taking-Over Levels” means the following levels for the Plant as a whole, demonstrated during the Performance Tests, while it is operating in compliance with all Applicable Laws of Peru and
Applicable Permits: (a) the Minimum Efficiency Levels, (b) the Minimum Functional Levels of Plant Equipment and (c) the Minimum Net Electric Output Levels. 

 

	 	1.1.55	“Financing Documents” means any collateral or intercreditor agreement, security document, credit agreement, indenture or contract between Owner and the Lenders and the other parties thereto and also
includes all amendments, restatements and replacements thereof as well as any other document or agreement pursuant to which Owner obtains financing or refinancing (including any credit enhancement with respect to the issuance of any bonds or notes)
for the acquisition, development, construction, construction loan retirement, modification, repair, or operation of the Plant. 

  

	 	1.1.56	“Force Majeure” is defined in Section 20.1. 

  

	 	1.1.57	“Functional Guarantees over Plant Equipment” means the operational and functional levels applicable to the Plant Equipment excluding the turbines and the generators, guaranteed by the Contractor
according to the Technical Specifications. 

  

	 	1.1.58	“Functional Test” means the test (conducted in accordance with Exhibit C) to determine the adequate operation and function of the Plant, including the Major Items of Equipment. 

 

	 	1.1.59	“Generator Set” means each turbine and its transformers and generator in the Plant. 

  

	 	1.1.60	“Governmental Authority” means any federal, regional, national, state, municipal, local, territorial, or other governmental department, commission, board, bureau, agency, regulatory authority,
instrumentality, judicial or administrative body, domestic or foreign having jurisdiction over the applicable portion of the Works. 

  
 6 

	 	1.1.61	“Grid” means the Peruvian national electrical grid. 

  

	 	1.1.62	“Guaranteed Deductible” means the deductible payable under the insurance policy referenced under Section 19.4(a) equal to: (a) US$ 100,000 for each loss classified under the LEG 2/96 clause of
such policy, (b) US$ 25,000 for each loss suffered during land transportation, (c) 250,000 for each loss suffered during hot testing and commissioning, (d) US$ 500,000 for losses suffered during the performance of Surface Invasive and
Subsurface Civil Work and (e) US$ 500,000 for losses caused by an earthquake that is not considered a Force Majeure event. 

  

	 	1.1.63	“Guaranteed Efficiency” means the efficiency that the Contractor guarantees for each Generator Set excluding the Spill Water Generator, according to the Technical Specifications. 

 

	 	1.1.64	“Guaranteed Net Electric Output” means the net electric output that the Contractor guarantees for each Generator Set and for the Plant as a whole of 504 MW using a water flow of 210.5 m3/sec, excluding
the Spill Water Generator, according to the Technical Specifications. 

  

	 	1.1.65	“GyM” has the meaning ascribed to it in the introduction. 

  

	 	1.1.66	“Headrace Tunnel” means the tunnel which conveys water from the water intake to the powerhouse, to be designed and constructed by Contractor under this Contract. 

 

	 	1.1.67	“High Net Electric Output” means the measured Net Electric Output using a water flow in excess of 210.5 m3/sec. 

  

	 	1.1.68	“Increased Installed Capacity Bonus” means the difference between (a) the Low Net Electric Output and the Guaranteed Net Electric Output multiplied by (b) US$ 900.00 per kilowatt.

  

	 	1.1.69	“Lender” means any party to the Financing Documents (including any trustee or agent) other than Owner and its Affiliates. 

 

	 	1.1.70	“Lender’s Representative” means any Person engaged by or on behalf of Lender in connection with the Financing Documents whose rights and duties may include, but shall not be limited to:
(a) examination of the design, engineering and technical efficacy of the Construction Documents; (b) examination of substantial changes in such Construction Documents; (c) periodic inspections of the Works, including confirmation of
construction schedule estimates and cost estimates; (d) attend the Partial Taking-Over Date, the Final Taking-Over Date and the Actual Project Acceptance Date; and (e) review of the information contained in each of the Progress Reports,
Monthly Payment Certificates or the Final Payment Certificate. 

  
 7 

	 	1.1.71	“Liability Cap” is defined in Section 18.4. 

  

	 	1.1.72	“LIBOR” means (a) the three-month rate prevailing for deposits in U.S. Dollars in the London Interbank market as of approximately 11:00 a.m., London Time, as reported by Thomson Reuters appearing
on Bloomberg BBAM1 Page (or any equivalent successor page); or (b) if the rate referenced in the preceding clause (a) is not available, the three-month rate equal to the British Bankers Association Interest Settlement Rate for deposits in
Dollars, determined as of approximately 11:00 a.m., London Time. For the purpose of this definition, “Bloomberg BBAM1 Page” means the display so designated on the Reuters Screen or such other page as may replace that page on that service.

  

	 	1.1.73	“Limited Notice to Commence” means the written notice to the Contractor issued by Owner authorizing and directing Contractor to perform the Preliminary Works. 

 

	 	1.1.74	“Low Net Electric Output” means the measured Net Electric Output using a water flow of up to 210.5 m3/sec. 

  

	 	1.1.75	“Lump Sum Price” means the fixed lump sum of Four Hundred and Fifty Two Million Seven Hundred and Sixty Five Thousand Three Hundred and Forty Seven Dollars (US$ 452,765,347) and of Six Hundred and
Twenty Four Million Three Hundred and Fourteen Thousand One Hundred and Seven Peruvian Soles (S/. 624,314,107) as it may be adjusted pursuant to this Contract. 

  

	 	1.1.76	“Main Spare Parts” means the spare parts described in Exhibit G. 

  

	 	1.1.77	“Major Items of Equipment” means the turbine, the generator, the step-up transformer, equipments and parts thereto, which form the principal components of the Plant. 

 

	 	1.1.78	“Materials” means things of all kinds to be provided for the Works and/or incorporated in the Permanent Works by the Contractor, including without limitation Main Spare Parts, equipment and other parts.

  

	 	1.1.79	“Maximum Deductible” means US$ 500,000. 

  

	 	1.1.80	“Maximum Load” means the maximum load at which each Generator Set individually and the Plant as a whole, excluding the Spill Water Generator, are able to operate continuously and with the stability
recommended for normal, safe and continuous operation by equipment manufacturers and within all other limits recommended by such vendors and in accordance with the Detailed Design of the Plant and the Technical Specifications. 

  
 8 

	 	1.1.81	“Minimum Efficiency Levels” means the minimum efficiency levels that each Generator Set and the Spill Water Generator must comply with, according to the Technical Specifications. 

 

	 	1.1.82	“Minimum Functional Levels of Plant Equipment” means the minimum operational and functional levels that the Plant Equipment excluding the turbines and the generators must comply with, according to the
Technical Specifications. 

  

	 	1.1.83	“Minimum Net Electric Output Levels” means the minimum electric output levels that each Generator Set and the Plant as a whole must comply with, according to the Technical Specifications.

  

	 	1.1.84	“Minimum Spill Water Demonstrated Capacity” means 3 MW. 

  

	 	1.1.85	“Mobilization” means the commencement of Works at the Project Area by the Contractor. 

  

	 	1.1.86	“Monthly Payment Certificate” means a certificate issued under Section 14.1.2., in the form set forth in Schedule 7. 

 

	 	1.1.87	“Net Electric Output” means the sum of the electric output as measured at the Electricity Measuring Point during Performance Tests, while each or some of the Generator Sets or the Plant as a whole are
operating at Maximum Load (but excluding any generating capacity of the Spill Water Generator). Net Electric Output will be expressed in KW. 

  

	 	1.1.88	“Net Electric Output Test” means a test (conducted in accordance with Exhibit C) of each or some of the Generator Sets or the Plant as a whole (but excluding any generating capacity of the Spill Water
Generator), while they are operating at Maximum Load meeting at all times all the other Performance Guarantee Levels, to determine the compliance with the Guaranteed Net Electric Output or the Minimum Net Electric Output Levels. 

 

	 	1.1.89	“Notice to Commence” means the written notice to the Contractor issued by Owner directing the Contractor to begin all activities necessary to complete the Works as contemplated herein.

  

	 	1.1.90	“Official” means: (a) any officer or employee of a local or foreign government, department (whether executive, legislative, judicial or administrative), agency or instrumentality of such
government, including a regional governmental body or a government-owned business, or of a public international organization; (b) any person acting in an official capacity for or on behalf of such government, department, agency.

  

	 	1.1.91	“Owner” is defined in the preamble hereto and includes legal successors of such Person, including any assignee of such Person permitted under Section 22.18 but not (except with the consent of the
Contractor provided that such consent may not be unreasonably withheld or delayed) any subsequent assignee of such Person. 

  
 9 

	 	1.1.92	“Owner Permits” means the permits described in Exhibit F. 

  

	 	1.1.93	“Owner’s Representative” means any and all Persons appointed from time to time by Owner and notified as such to the Contractor. 

 

	 	1.1.94	“Parent Guaranty” means each parent guaranty executed by each of Astaldi and GyM substantially in the form set forth in Schedule 15. 

 

	 	1.1.95	“Partial Taking-Over Certificate” means a certificate issued under Section 11.1 for each Generator Set, in the form set forth in Schedule 10. 

 

	 	1.1.96	“Partial Taking-Over Date” means the date when the Contractor has demonstrated that each Generator Set, individually, meets or exceeds the Partial Taking-Over Levels, which notification date shall be
the date acknowledged and stated by Owner’s Representative in the Partial Taking-Over Certificate. 

  

	 	1.1.97	“Partial Taking-Over Levels” means with respect to each Generator Set, no less than eighty percent (80 %) of the Performance Guarantee Levels for Net Electric Output. 

 

	 	1.1.98	“Parties” has the meaning ascribed to it in the introduction. 

  

	 	1.1.99	“Performance Guarantee Level(s)” means the Guaranteed Efficiency and the Guaranteed Net Electric Output of each Generator Set and for the Plant as a whole, excluding the Spill Water Generator, and the
Functional Guarantees over other Plant Equipment and Minimum Spill Water Demonstrated Capacity, measured during Performance Tests while the Works are operating in compliance with all Applicable Laws of Peru and Applicable Permits and in accordance
with Exhibit B. 

  

	 	1.1.100	“Performance Bond” means the letter of credit to be provided by the Contractor substantially in the form set forth in Schedule 4. 

 

	 	1.1.101	“Performance Test Certificate” means the certificate issued by Owner under Sections 10.4 and 10.7 in the form set forth in Schedule 9. 

 

	 	1.1.102	“Performance Test Protocol” means the procedures for performance and acceptance testing for each Generator Set and for the Plant as a whole, set forth in Exhibit C. 

 

	 	1.1.103	“Performance Tests” means the tests specified in this Contract and designated as such, and any other such tests as may be agreed by Owner’s Representative and the Contractor or instructed as a
Variation, which are to be carried out by the Contractor before the Plant is taken over by Owner, in accordance with Article X hereof and Exhibits A and C. 

  
 10 

	 	1.1.104	“Permanent Works” means all those components and civil works defined or contemplated in the Technical Specifications for the Plant, including all related facilities located on, under or around the
Project Areas, taken as a whole, including the dam, the Spill Water Generator, the Access Roads, all underground structures and the substation and transmission line. 

 

	 	1.1.105	“Person” means any individual, corporation, company, partnership, joint venture, association, trust, unincorporated organization, entity or Governmental Authority. 

 

	 	1.1.106	“Peru” means the Republic of Peru. 

  

	 	1.1.107	“Peruvian Soles” means Nuevos Soles of Peru. 

  

	 	1.1.108	“Plant” has the meaning ascribed to it in the recitals. 

  

	 	1.1.109	“Plant Equipment” means all hydromechanical equipments, mechanical and electrical apparatus and parts which form part of the Plant, including the Major Items of Equipment. 

 

	 	1.1.110	“Precommissioning” means the acts, tests and procedures involved in checking-out, starting-up and initially operating the Permanent Works 

 

	 	1.1.111	“Preliminary Schedule of Payments” means Contractor’s referential schedule of payments described in Schedule 6. 

 

	 	1.1.112	“Preliminary Works” means the part of the Works which will be performed by the Contractor between the Limited Notice to Commence and the Notice to Commence, as described in Exhibit A, and which includes
topographic surveys, geo-physic investigation, geologic investigation, engineering basic design, purchase orders of critical equipment and plants, construction of Access Roads and Accessways to the dam and powerhouse areas, including mobile working
camps and spoil area preparation, maintenance and conditioning of the Access Routes where necessary to allow safety transit of the personnel and equipment, commencement of the construction of bridges over the Mantaro river, commencement of the earth
moving activities of the camp sites and of the construction of the temporary electric transmission line for construction purposes. 

  

	 	1.1.113	“Preliminary Works Lump Sum” means the portion of the Lump Sum Price payable to Contractor for the performance of the Preliminary Works, as described in the Preliminary Schedule of Payments, for the
amount of Forty Million Dollars (US$ 40,000,000.00). 

  

	 	1.1.114	“Profit” means, with respect to any Cost, an amount equal to five percent (5%) of such Cost. 

  

	 	1.1.115	“Progress Reports” means the progress reports to be delivered by the Contractor as set forth in Section 5.13. 

  
 11 

	 	1.1.116	“Project Areas” means the geographical areas, within the Concession Area, where the Works are to be executed as described in Exhibit H. 

 

	 	1.1.117	“Project Data” means the information described in Section 5.8 as set forth in Exhibit D. 

  

	 	1.1.118	“Project Schedule” means Contractor’s detailed schedule for performing the Works pursuant to Section 5.12. Contractor’s preliminary Project Schedule (summary level) is set forth in
Schedule 1. 

  

	 	1.1.119	“Prudent Electrical Practices” means with regard to the design, construction and erection, installation of the Plant, those practices, methods, standards and equipment as changed, from time to time,
that are generally accepted internationally for use in electric utility industries and that are compatible with the safety and reliability of the Grid, as well as the employment of competent technical personnel qualified in established and generally
accepted electrical engineering applications and operations, in order to operate the Plant Equipment lawfully, safely, efficiently and with dependability in accordance with all applicable Peruvian statutes, regulations, codes and standards.

  

	 	1.1.120	“Prudent Utility Practices” means those practices, methods and equipment, in effect at the time of performance of the applicable Works, that are commonly used by reputable utilities operating on an
international basis in the electric utility industry and having regard to operational considerations in Peru as prudent to design, construct, equip, operate and maintain electric power generating equipment lawfully and giving due regard to safety,
dependability, efficiency and economy. 

  

	 	1.1.121	“Punch List” means the list submitted by the Contractor and approved by Owner’s Representative of items that are not completed as of the date required regarding the Works, such as insulation,
painting, final cleanup, final grading and any other portion of the Works which do not constitute Defects or Deficiencies and which do not affect the operability, safety or mechanical and electrical integrity of the Plant. 

 

	 	1.1.122	“Q-System” means the Norwegian Geotechnical Institute System classification (Barton et al., 1974, 1994, 2002) used to express the quality of the rock mass classification for Surface Invasive and
Subsurface Civil Works. 

  

	 	1.1.123	“Raw Data” means data that has not been processed for use and that is collected as a result of the performance of any Performance Test pursuant to this Contract. 

 

	 	1.1.124	“Receiving Party” means (a) a Party that receives Confidential Information from the Disclosing Party; (b) such Party’s Affiliates; and, (c) such Party’s or its Affiliate’s
directors, officers, employees, consultants, subcontractors, advisors, rating agencies, insurers or financial institutions provided that any such person is bound to a duty of confidentiality with the relevant Party. 

  
 12 

	 	1.1.125	“Remains” means all fossils, coins, articles of value or antiquity, and structures and other remains or things of geological or archaeological interest. 

 

	 	1.1.126	“Remedial Plan” is defined in Section 9.3. 

  

	 	1.1.127	“Representatives” means Owner’s Representative, Contractor’s Representative and the Lender’s Representative. 

 

	 	1.1.128	“Review Period” means in connection to any Construction Document, the period required by Owner’s Representative for review and approval of such Construction Document as provided in Exhibit A.

  

	 	1.1.129	“RM” means a Q System specific rock class mass condition, as established in Exhibit I. 

  

	 	1.1.130	“Rules” means Rules of Arbitration adopted by the Center, as in effect at the time the party requesting the arbitration files its request for arbitration. 

 

	 	1.1.131	“Scheduled Final Taking-Over Date” means forty-eight (48) months from the Commencement Date. 

  

	 	1.1.132	“Scheduled Partial Taking-Over Dates” means one thousand three hundred and sixty (1360) days for the first Generator Set and one thousand four hundred and twenty five (1425) days for the
second Generator Set, from Commencement Date. 

  

	 	1.1.133	“Shipment Notice” has the meanings ascribed to it in Section 8.2. 

  

	 	1.1.134	“Site” means Contractor’s central office to be located within the boundaries of the areas specified in Schedule 21. 

 

	 	1.1.135	“Spill Water Generator” means the electric generator(s) to be powered solely by the ecological flow of the dam approved by the Peruvian Governmental Authority, with a maximum capacity of the lower of 10
MW or the capacity in megawatts agreed by the Parties in writing. 

  

	 	1.1.136	“Spill Water Generator Bonus” means an amount equal to the difference between the Tested Spill Water MW Capacity minus the lower of the Minimum Spill Water Demonstrated Capacity and the maximum capacity
of the Spill Water Generator, multiplied by US$ 1,000.00 per kilowatt. 

  

	 	1.1.137	“Start-Up” means the process of collectively starting and initially operating the aggregate of systems, subsystems, and components of each Generator Set. A necessary prerequisite of Start-Up is that
Pre-commissioning on individual systems, subsystems, components and auxiliaries for the relevant Generator Set has been safely and successfully completed. Unless otherwise stated herein, Start-Up will commence at energization of the low voltage bus
and will conclude upon the commencement of the Performance Tests of the relevant Generator Set. 

  
 13 

	 	1.1.138	“Subcontractor” means any subcontractor, contractor, manufacturer, supplier or other Person engaged in any part of the Works or any Person to whom a part of the Works has been subcontracted in
accordance with Section 5.4, and the legal successors to such Person, but not any assignee of such Person and for the avoidance of doubt will not include contractors or subcontractors of Owner. In no case shall Subcontractor include any Person
retained by Owner or any third party to perform work. 

  

	 	1.1.139	“Subcontractor List” means the list of Subcontractors as set forth in Schedule 2. 

  

	 	1.1.140	“Supervisor” means the Person or Persons appointed by Owner to supervise the execution of the Works in accordance with Section 4.1 hereof. 

 

	 	1.1.141	“Surface Invasive and Subsurface Civil Work” is any part of the Works involving major excavation or tunneling (the powerhouse cavern, the left half of the dam’s foundation, the Headrace Tunnel, the
tailrace tunnel and auxiliary tunnels) but excludes any work related to the diversion tunnel, Access Routes, Accessways and quarries, as described in Exhibit I. 

  

	 	1.1.142	“Technical Specifications” means the document entitled Technical Specifications included in Exhibit A, including the Construction Documents, the basic design and the Detailed Design, which contain the
technical characteristics and conditions of the Works. 

  

	 	1.1.143	“Temporary Works” means all temporary works of every kind, other than Contractor’s Equipment, including the Accessways, required for the execution and completion of the Works and the remedying of
any Defects or Deficiencies. 

  

	 	1.1.144	“Termination Fee” means the fees for termination as set forth in Section 17.3. 

  

	 	1.1.145	“Test Procedures” has the meaning ascribed to it in Section 10.4. 

  

	 	1.1.146	“Tested Spill Water MW Capacity” means the Net Electrical Output measured during the Performance Test of the Spill Water Generator. 

 

	 	1.1.147	“Time for Completion” means the time required herein for achieving the Partial Taking-Over Date, the Final Taking-Over Date and the Actual Project Acceptance Date, from Commencement Date and includes
adjustments (if any) in accordance with this Contract. 

  
 14 

	 	1.1.148	“Training Program” means the training program provided by the Contractor for operators of the Plant as set forth in Exhibit A. 

 

	 	1.1.149	“Variation” means any alteration or modification to this Contract, which is instructed in writing by Owner or approved in writing as a Variation by Owner, in accordance with Article XV.

  

	 	1.1.150	“Unit Rates” means the unitary value assigned to Surface Invasive or Subsurface Civil Work as set forth in Exhibit I. 

 

	 	1.1.151	“Unit Values” means the value of all items listed in the bill of quantities detailed in the Preliminary Schedule of Payments, Schedule 6. 

 

	 	1.1.152	“Warranty Letter of Credit” means the bank guarantee to be provided by Contractor substantially in the form set forth in Schedule 5. 

 

	 	1.1.153	“Warranty Period” means the period starting on the Final Taking-Over Date and ending on (a) the first anniversary of the Final Taking-Over Date in the case of all Works which are not civil Works;
and (b) the fifth anniversary of the Final Taking-Over Date in the case of civil Works; 

  

	 	1.1.154	“Works” means the Permanent Works and the Temporary Works concerning the Plant, including engineering and design, procurement, manufacture, delivery, site clearance, civil works, construction and
erection, installation, training, Start-Up (including calibration, inspection and Start-Up operation), demonstration and testing with respect to the Permanent Works and Temporary Works to be performed by the Contractor pursuant to the Contract. The
term ‘Works’ includes all or partial portions of the foregoing, including labor, materials, equipment, machinery, tools, transportation, construction fuels, chemicals, utilities, administration, and any other services or items to be used
by the Contractor or its Subcontractors in the prosecution of this Contract, wherever the same are being performed. 

  

	 	1.1.155	“Workbook” means a numbered book/registry to be maintained by the Contractor in which the Representatives shall write and sign all the daily incidences, occurrences, orders, questions, consultations and
answers to such questions and consultations during the execution of the Works. 

  

	 	1.2	Headings - Headings are for ease of reference only and may not be used to determine or interpret the content of the provisions of this Contract. 

 

	 	1.3	Interpretation - Words importing Persons or parties shall include firms and corporations and any organization having legal capacity. Words importing the singular also include the plural and vice versa where the
context requires. Words importing one gender also include other genders. The words “herein” “hereof” and “hereunder” shall refer to this Contract as a whole and not to any particular section or subsection of this
Contract; and the words “include” “includes” or “including” shall mean “including, but not limited to.” 

  
 15 

 
Any reference to the terms “articles”, “clauses”, “sections”, “exhibits” or any similar term generally used to identify specific subdivisions of a contract
or document, shall be deemed to mean an “article”, “clause”, “section”, “exhibit” or any other specific subdivision of this Contract, as the case may be. References to any document, instrument or agreement
shall mean such document, instrument or agreement, as amended, modified and supplemented from time to time and in effect at any given time. 
  

	II.	OWNER 

  

	 	2.1	Access to and Possession of the Project Areas -. Owner shall timely grant the Contractor right of access to and possession of Project Areas as necessary for the performance of the Works by Contractor in
accordance with the Project Schedule. 

 Owner will be responsible of acquiring the land and/or establish Easement Rights over
all areas which are Project Areas and are required by the Contractor for the construction, alteration or modification of the Works, Accessways and Access Roads, in accordance with Exhibit H. 

Easement Rights and/or acquisition of land and/or permits required for Access Routes will be the exclusive responsibility of the Contractor.
The imposition of Easements Rights and the acquisition of property rights over additional areas within the Concession Area that are not Project Areas will be the exclusive responsibility of the Contractor. 

If the Contractor suffers delay or incurs Cost from failure on the part of Owner to grant right of access to or possession of Project Areas,
in accordance with the previous paragraphs, the Contractor shall give notice to Owner’s Representative within ten (10) days of suffering such delay or incurring such Cost, and after receipt of such notice and provided that the Owner’s
failure to grant right of access to or possession of Project Areas was not caused by the Contractor, Owner’s Representative shall proceed in accordance with Article XV to agree or determine: 

 

	 	(a)	any extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost plus Profit thereon which shall be added to the Lump Sum Price and shall notify the Contractor accordingly. 

For the avoidance of doubt, the granting of possession of Project Areas shall not be treated as creating any legal or other interest over
Project Areas in favor of the Contractor. 
 If by application of this section, the Contractor acquires title or any legal interest over
pieces of land located within the Project Areas, the Contractor must transfer title of such pieces of land to Owner promptly free and clear of any and all liens, claims, security interests or other encumbrances. 

  
 16 

 The Contractor shall provide, at his own cost and subject to Owner’s approval, any
additional pieces of land, any clearances, temporary rights of access, rights of way, work space or easement rights outside the Project Areas that are required by it for the purposes of the Works. 

Owner will retain unlimited access for itself, for the Owner’s Representative, for the Lenders, the Lender’s Representative, the
insurer or the insurers and the Supervisor who shall be entitled to enter into and remain at the Project Areas at all times without prior notice and without the Contractor’s prior consent. Contractor shall also permit unrestricted access to the
Project Areas to any Governmental Authority according to the Applicable Laws. 
  

	 	2.2	Permits, Licenses or Approvals - Owner shall timely obtain all the Owner Permits as necessary for the performance of the Works by Contractor in accordance with the Project Schedule. Owner will also be responsible
for obtaining all authorizations needed to modify or adjust those permits to the new design of the Works according to the Technical Specifications. 

If the Contractor suffers delay or incurs Cost from failure on the part of Owner to obtain Owner’s Permits in accordance with the
previous paragraph, the Contractor shall give notice to Owner’s Representative within ten (10) days of suffering such delay or incurring such Cost, and after receipt of such notice and provided that the Owner’s failure to obtain
Owner’s Permits was not caused by the Contractor, Owner’s Representative shall proceed in accordance with Article XV to agree or determine: 
  

	 	(a)	any extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost plus Profit thereon which shall be added to the Lump Sum Price and shall notify the Contractor accordingly. 

Owner shall, at the request of the Contractor, provide reasonable assistance in applying for permits, licenses or approvals which are required
for any part of the Works and required to be obtained by the Contractor for delivery (including clearance through customs) of Major Items of Equipment, Materials and Contractor’s Equipment, and for the completion of the Works. Such requests may
also include requests for Owner’s assistance in applying for any necessary government consent to the re-export of Contractor’s Equipment when it is removed from the Project Areas. It is the sole responsibility of the Contractor to timely
request such assistance and to provide all necessary documentation and other information to facilitate the provision of such assistance. The Contractor shall reimburse the Owner for any documented out of pocket expenses incurred by the Owner in
providing the assistance provided by the Owner to the Contractor pursuant to this Section 2.2. 
  

	 	2.3	Owner’s Right to do Work - If the Contractor fails to commence to furnish sufficient workers of the required skill, or materials of the required quality or quantity or fails to perform the Work in accordance
with the requirements hereof or the Project Schedule, within fifteen (15) days after written notice specifying such failure, and such failure is affecting the Time for Completion, Owner shall have the option to supply workers, materials, or
both, and perform the Works. 

  
 17 

 
Owner shall deduct expenses incurred in engaging other contractors, and supplying workers and material from payments due or which may become due to the Contractor. If expenses exceed the balance
due or which becomes due to the Contractor, the Contractor shall pay the excess to Owner immediately upon written demand therefor. 
 The
Contractor shall allow other contractors or entities access to their work within the Project Areas. The Contractor shall make no claims against Owner for additional payment due to delays or other conditions created by the reasonable operations of
such other parties, provided that, if such other parties materially interfere with the Contractor’s reasonable performance of the Works, the Contractor shall have the right to request a Variation in accordance with Section 15.1 to the
extent necessary to overcome the impact of such interference or hindrance. 
 Any Work provided by Owner due to the Contractor’s
failure to perform shall be charged to the Contractor at Owner’s Cost plus Profit and shall not relieve the Contractor from any obligation or responsibility provided in this Contract. 

 

	 	2.4	Owner’s Financial Arrangements – The Owner within ten (10) days after the Notice to Commence has been delivered, and up to three (3) times before the Actual Project Acceptance Date, upon
Contractor’s written request, will provide reasonable evidence that financial arrangements have been made as to enable the Owner to pay the Lump Sum Price in accordance with Section 14. If the Owner makes any material change to any of
Financing Documents, the Owner shall promptly give notice to the Contractor with detailed particulars. 

  

	III.	OWNER’S REPRESENTATIVE 

  

	 	3.1	Owner’s Representatives Duties and Authority - Owner’s Representative shall carry out the duties and exercise the authority provided in this Contract. Owner’s Representative shall have no authority
to amend this Contract and the Contractor shall have no obligations to perform any such amendment except pursuant to an executed Variation. 

  

	 	3.2	No Implied Waiver 

 Any proposal, inspection, examination, testing, consent, approval or
similar act by Owner’s Representative, including any omission by Owner’s Representative to disapprove, object or notify any breach of the Contractor’s obligations under this Contract, will not relieve the Contractor from any duty,
responsibility or obligation, including responsibility for errors, omissions, discrepancies, and non-compliance with Sections 6.3 and 6.4. 
  

	 	3.3	Owner’s Representative’s Authority to Delegate - Owner’s Representative may from time to time delegate any of his duties to the Supervisor or assistants, and may at any time revoke any such
delegation. Any such delegation or revocation shall be in writing and shall not take effect until a copy has been delivered to Owner and the Contractor, specifying the powers, functions and authorities being delegated or revoked 

  
 18 

 The Supervisor or the assistants shall be suitably qualified persons who are competent to carry
out these duties and exercise this authority. 
 Any determination, instruction, inspection, examination, testing, consent, approval or
similar act by any such assistant of Owner’s Representative in accordance with the delegation shall have the same effect as though it had been an act of Owner’s Representative. However: 

 

	 	(a)	any failure to disapprove any equipment, Materials, Main Spare Part, design or workmanship shall not prejudice the right of Owner’s Representative to reject (if prior to the start of the Warranty Period) or make a
warranty claim (if the Warranty Period is in effect) on such defective item, Materials, Main Spare Part, design or workmanship; 

  

	 	(b)	if the Contractor questions any determination or instruction of an assistant of Owner’s Representative, the Contractor may refer the matter to Owner’s Representative who shall confirm, reverse or vary such
determination or instruction. 

  

	 	3.4	Owner’s Representative’s Instructions - The Contractor shall comply with instructions given by Owner’s Representative in accordance with this Contract. 

 

	IV.	SUPERVISOR 

  

	 	4.1	General Obligations – 

 Owner will communicate to the Contractor the appointment of
the Supervisor before the Limited Notice to Commence or the Notice to Commence, as applicable. However, from the Limited Notice to Commence until the Notice to Commence, the Supervisor’s duties may be performed by Owner. 

Owner may change the Supervisor at any time by notice to Contractor. 

The Supervisor will provide assistance to Owner for the observational oversight of this Contract during the construction of the Plant and
until the Actual Project Acceptance. 
 The observation to be carried out by the Supervisor mainly encompass the following: 

 

	 	(a)	observe and inventory the engineering and design and the Detailed Design and the Construction Documents produced by the Contractor; 

  

	 	(b)	observe the manufacturing, factory assembling, testing and preparation for shipment of the Plant Equipment, including the Major Items of Equipment; 

  
 19 

	 	(c)	observe and inventory the methods and procedures to be used in the design and manufacturing by the Contractor; 

  

	 	(d)	observe the execution of the civil works; 

  

	 	(e)	observe the quality control of all construction, erection, testing of equipment and the commissioning activities carried out by the Contractor to determine if such is being performed properly and according to the terms
and conditions of this Contract; 

  

	 	(f)	attend the execution of the Performance Tests; 

  

	 	(g)	approve the respective payments to the Contractor; and 

  

	 	(h)	Issue reports on the above matters to Owner. 

 Any proposal, inspection, examination, testing,
consent, approval or similar act by the Supervisor (including absence of disapproval) shall not relieve the Contractor from any duty, responsibility or obligation, including responsibility for errors, omissions, discrepancies, and non-compliance
with Sections 6.3 and 6.4. 
  

	 	4.2	Supervisor’s Rights –The Supervisor may maintain on the Project Areas throughout the construction of the Plant and until the Actual Project Acceptance a team of resident engineers and technicians. This
team may observe any and all construction, Plant Equipment erection, testing and commissioning operations of the Contractor, in order to assess the conformity and quality of the Works for Owner. In addition, the Supervisor or its personnel may carry
out at all reasonable times and whenever deemed necessary, inspection visits to the Project Areas as well as to all workshops, storage facilities and installations where Major Items of Equipment are manufactured, assembled, tested or prepared for
shipment. 

 All information produced by the Contractor shall be communicated to the Supervisor with the authorization of and
information to Owner. 
  

	 	4.3	Control and Monitoring of the Project Schedule –The Supervisor may observe all phases and operations of the Works to see if they remain organized throughout construction to respect the Project Schedule. The
Supervisor may alert the Contractor promptly, whenever the Supervisor foresees any risk of delays and may request that the Contractor analyze its programs and sequences of work. The Supervisor may suggest partial or general adaptations of the
program whenever it deems necessary. 

  

	 	4.4	Reporting –The Supervisor may prepare and submit to Owner monthly progress and site activity reports basically containing all figures and site measurements, results of quality control, observations and
description of factual events occurring on the Project Areas and in home offices or shops of all Major Items of Equipment, and any other report that Owner may deem appropriate. 

  
 20 

	 	4.5	Supervisor’s duties during Warranty Period –The Supervisor will provide assistance to Owner during the Warranty Period when required by Owner. Plant Equipment as well as civil works specialists and
experts will be made available to Owner for performing site visits when needed to provide the technical and contract management services during this period. 

  

	V.	CONTRACTOR 

  

	 	5.1	General Obligations - The Contractor shall perform or cause to be performed the Preliminary Works once the Limited Notice to Commence has been given and Permanent Works and the Temporary Works once the Notice to
Commence has been given, including as applicable, engineering and design, procurement, manufacture, delivery, site clearance, civil works, construction and erection, installation, training, start-up (including calibration, inspection and start-up
operation), demonstration and testing of the Works, and provide all labor, Major Items of Equipment, Materials, Auxiliary Services, equipment, machinery, tools, transportation, construction fuels, chemicals required in connection with the
Contractor’s performance of any part of the Works, utilities required in connection with the Contractor’s performance of any part of the Works (except to the extent expressly provided otherwise herein), administration and other services or
items required to complete the Works, all on a lump sum, fixed price (with the exception of Surface Invasive and Subsurface Civil Work), turnkey basis and otherwise in accordance with this Contract, including without limitation the Technical
Specifications, and in compliance with all Applicable Laws and Applicable Permits which apply to the Works, and generally recognized professional and industry standards (including Prudent Utility Practices and Prudent Electrical Practices). The
Contractor shall further design, engineer, construct and execute the Works in a manner consistent with the requirements of this Contract and to provide Owner a complete, integrated and fully functional hydropower generating Plant to be used for base
load service. 

 Owner is relying upon the expertise of the Contractor to furnish the completed Plant in accordance with the
terms of this Contract. The Contractor acknowledges Owner’s reliance upon the expertise of the Contractor as set forth in this Section 5.1. 

The Works shall be completed by the Contractor wholly in accordance with this Contract and generally recognized professional and industry
standards (including Prudent Utility Practices and Prudent Electrical Practices), compliant with the Applicable Laws of Peru and Applicable Permits. The Works shall include any work which is necessary to satisfy the Technical Specifications and
Schedules, or is implied by this Contract, or arises from any obligation of the Contractor, and all works not mentioned in this Contract but which may be reasonably inferred from this Contract to be necessary for the stability or completion or the
safe, reliable and efficient operation of the applicable Works. 
 The Contractor shall design, execute and complete the Works, including
providing Construction Documents, within the Time for Completion, each as provided herein, and shall remedy any Defects or Deficiencies that may arise within the Warranty Period irrespective of whether such Defects or Deficiencies can be remedied
during such Warranty Period. The Contractor shall provide all superintendence, labor, plant, Materials, Main Spare Parts, Contractor’s Equipment, Temporary Works and all other things, whether of a temporary or permanent nature, required in and
for such design, execution, completion and remedying of Defects or Deficiencies. 

  
 21 

 
The Contractor shall execute the Works continuously and diligently and shall achieve the Partial Taking-Over Dates and the Final Taking-Over Date on or before the Scheduled Partial Taking-Over
Date and the Scheduled Final Taking-Over Date, and thereafter achieve the Actual Project Acceptance Date as expeditiously as possible, but not later than one hundred eighty (180) days after the Final Taking-Over Date, or if Owner exercises its
right under Section 10.9, one hundred eighty (180) days after the Contractor is provided access again to the Works to perform Performance Tests (“Early Operation Extension Period”). 

Unless as otherwise stated in the Contract, the Contractor knows and accepts that during the execution of the Works (with the exception
provided in Sections 5.9 and 5.10) it may find geological, hydrological or meteorological or other conditions that could affect construction costs or the Time for Completion. The Contractor declares that has reviewed the Project Data and made such
other investigations as it deems necessary and has considered all risks (whether related thereto or not) in its derivation of the Lump Sum Price. As a result, if any such risks arise, the Contractor will not be released from its obligations under
the Contract on the basis of a Force Majeure claim or on any other basis and will not be entitled to a Variation for the adjustment of the Lump Sum Price or the extension of the Time for Completion. This provision shall not prejudice
Contractor’s rights according to Article XX for future supervening Force Majeure events that are not caused by the conditions existing at the Effective Date. 

The Contractor shall satisfy itself prior to the Effective Date regarding the design criteria (if any) included in the Technical
Specifications and the accuracy of any setting-out points, lines and levels of reference specified therein. The Contractor shall make no claim for additional compensation, extension of the Time for Completion, Variation or otherwise for any alleged
error, fault or defect in the Technical Specifications. 
 The Contractor shall take full responsibility for the adequacy, stability and
safety of the Plant, of all means and methods of construction by Contractor and its Subcontractors and of all the Works, irrespective of any approval or consent or the lack thereof by Owner’s Representative or the Supervisor. Once the Works are
completed, they shall be fit for purpose as defined under this Contract and the Technical Specifications. 
 The intent of this Contract is
to relieve Owner of the necessity of engaging or supplying any labor, service or material to complete the Plant unless the labor, service or material is expressly stated in this Contract as being furnished by Owner. 

 

	 	5.2	Contractor’s Representative - Unless the Contractor’s Representative is named in this Contract, the Contractor shall, within fourteen (14) days of the Effective Date, submit to Owner’s
Representative for consent the name and particulars of the Person the Contractor proposes to appoint, which shall not be unreasonably delayed or withheld. The Contractor shall not revoke the appointment of the Contractor’s Representative
without the prior consent of Owner’s Representative. 

  
 22 

 The Contractor’s Representative shall be a full time employee of the Contractor dedicated
to directing the preparation of the Construction Documents and the execution of the Works. Except as otherwise stated in this Contract, the Contractor’s Representative shall receive (on behalf of the Contractor) all notices, instructions,
consents, approvals, certificates, determinations and other communications under this Contract. Whenever the Contractor’s Representative is to be absent, a suitable replacement person shall be appointed, and Owner’s Representative shall be
notified accordingly. Owner will have the right to approve those individuals who will hold key project positions as defined in Exhibit E. Owner shall have the right at all times to require that any personnel (whether or not previously approved by
Owner) be removed and replaced by personnel acceptable to Owner in the case that any person is not fit, skilled or capable of performing the work assigned to him or otherwise jeopardizes the safety or efficient performance of any part of the Works.

 Subject to the written consent of Owner’s Representative, the Contractor’s Representative may delegate any of his powers,
functions and authorities to any competent person, and may at any time revoke any such delegation. Any such delegation or revocation shall be in writing and shall not take effect until Owner’s Representative has received prior notice signed by
the Contractor’s Representative, specifying the powers, functions and authorities being delegated or revoked. The Contractor’s Representative and such persons shall be fluent for day-to-day communications in written and verbal English and
Spanish. 
  

	 	5.3	Coordination of the Works - The Contractor shall be responsible for the coordination and proper execution of the Works, including cooperation with Owner’s other contractors so as to minimize conflicts with
the Works. The Contractor shall, as specified in the Technical Specifications, afford all reasonable opportunities for carrying out its work to: 

  

	 	(a)	any other contractors employed by Owner and their workmen; 

  

	 	(b)	the workmen of Owner; and 

  

	 	(c)	the workmen of any legally constituted public authorities who may be employed in the execution on or near the Project Areas of any work not included in this Contract, which Owner may require. 

If any part of the Works depends for proper and timely execution or results upon the work of any other contractor, the Contractor shall
inspect and promptly report in writing to Owner any Defects or cause of delay in such work that renders it unsuitable for such proper and timely execution or results. Failure of the Contractor to do so shall constitute its acceptance of such other
work as fit and proper for the reception of the Works. 

  
 23 

 The Contractor shall timely inform to Owner’s Representative and the Supervisor the scope
of works related to Subcontractors and suppliers who will perform works within the Project Areas. 
  

	 	5.4	Subcontractors - The Contractor shall not subcontract any portion of the Works whose value exceeds five millions Dollars (US$ 5,000,000) without the prior written consent of Owner. Unless otherwise stated in this
Contract: 

  

	 	(a)	the Contractor shall not be required to obtain consent for purchases of new Materials or for subcontracts for which the Subcontractor is an Affiliate or named in this Contract or identified in the Subcontractor List set
forth in Schedule 2; 

  

	 	(b)	the prior consent of Owner’s Representative shall be obtained (and shall not be unreasonably delayed, withheld or conditioned) to other proposed Subcontractors not set forth in subparagraph (a) above; and

  

	 	(c)	not less than twenty-eight (28) days before the intended date of each new Subcontractor commencing work on the Project Areas, the Contractor shall notify Owner’s Representative and the Supervisor of such
intention. 

 The Contractor shall be responsible for observance by all Subcontractors of all the provisions of this Contract.
The Contractor shall be responsible for the acts or defaults of any Subcontractor, his agents or employees, in the performance of the Works as fully as if they were the acts or defaults of the Contractor, his agents or employees. Any subcontracting
by the Contractor of any portion of the Works shall not release or discharge the Contractor of any of its responsibilities or obligations under this Contract. Any Subcontractor warranties extending beyond the Warranty Period (or any longer
applicable period agreed to by the Contractor) shall be assigned to Owner. 
 All Works performed for the Contractor by a Subcontractor
shall be governed by terms and conditions provided in written contracts executed between Contractor and Subcontractor. 
 The Contractor
agrees to incorporate into each Subcontractor agreement greater than one million five hundred thousand Dollars (US$1,500,000) in value, terms and conditions substantially equivalent to those in this Contract to the extent applicable to such
Subcontractor’s work. All such Subcontract agreements and purchase orders shall contain a provision providing for assignment of such subcontracts or purchase orders to Owner in the event of termination of the Contractor’s employment
pursuant to the terms of this Contract. Such assignment will be at the discretion of Owner and at no cost to Owner. 
 At any time during
the execution of the Works, Owner may reasonably require the Contractor to remove any Subcontractor employed on the Project Areas. 

  
 24 

 The Contractor shall pay each Subcontractor the amount to which said Subcontractor is entitled
under the applicable subcontract. Contractor shall execute and deliver to Owner a certificate substantially in the form of Schedule 22 (Form of Proof of Subcontractor Payment) every three (3) months, by which Contractor will represent and
warrant to Owner that it paid to the Subcontractors any amounts due to the Subcontractor that are related to the amounts evidenced in the relevant invoice. 
  

	 	5.5	Assignment of Subcontractor’s Obligations - If a Subcontractor has undertaken a continuing obligation to the Contractor for work designed or executed, or Major Items of Equipment, Materials, Auxiliary
Services or other services supplied, by such Subcontractor, and if such obligation extends beyond the expiry of the Warranty Period, the Contractor shall if permitted under the terms of such Subcontract, upon the expiry of the Warranty Period,
assign the benefit of such obligation to Owner for its unexpired duration at the request of Owner. The Contractor shall ensure that all of its rights under any Subcontract that is valued at greater than one million five hundred thousand Dollars
(US$1,500,000), are capable of being assign to Owner. Such assignment will be at the discretion of Owner and at no cost to Owner. 

  

	 	5.6	Setting Out - The Contractor shall set out the Works in relation to original points, lines and levels of reference specified in the Technical Specifications or, if not specified, given by Owner’s
Representative in writing. The Contractor shall correct, at his cost, any error in the positions, levels, dimensions or alignment of the Works. The Contractor shall be responsible for the joining and fitting of all civil works and parts of the Works
in a manner such that the Plant can operate as an integrated power plant, and any checking or inspection by Owner or the Supervisor shall not relieve the Contractor of any responsibility as to the correctness of the Works. 

 

	 	5.7	Quality Assurance/Quality Control (QA/QC) - Unless otherwise stated in this Contract, the Contractor shall institute a quality assurance system to demonstrate compliance with the requirements of this Contract
that conforms to the guidelines provided by Schedule 20. The implementation of a quality assurance system pursuant to this Section 5.7 will not relieve the Contractor of any of its duties, obligations or responsibilities with Owner under this
Contract. 

 The Contractor shall make available to Owner’s Representative and the Supervisor all quality assurance or
quality control procedures and compliance documents at the Contractor’s premises before the commencement of each design and execution stage. When any QA/QC document is issued to Owner’s Representative and the Supervisor, it shall be
accompanied by the signed quality statements for such document, in accordance with the details stated in this Contract. Owner’s Representative may instruct the Contractor to amend any quality assurance or quality control procedure that does not
adhere to the guidelines provided in Schedule 20 and to take any corrective action that is needed to achieve compliance with such guideline. 
  

	 	5.8	Existing Project Data - The Contractor shall be solely responsible for interpreting and using all of the data provided by Owner and contained in Exhibits A and D, and Owner makes no warranty or representation
that such information is accurate, complete or exhaustive, except as stated below. In case of contradiction between the information contained in Exhibits A and D, Exhibit A will prevail. Exhibit D shall supplement the omissions that may exist in
Exhibit A. 

  
 25 

 The Contractor shall be deemed to have inspected and examined the Concession Area, its
surroundings, the Project Data and other available information, and to have satisfied itself prior to the Effective Date as to: 
  

	 	(a)	the form and nature of the Concession Area, including all Concession Area conditions; 

  

	 	(b)	unless as otherwise stated in the Contract, all applicable hydrological and climatic conditions, including those of the Concession Area and Peru; 

 

	 	(c)	the extent and nature of the work, labor, manpower, services including Auxiliary Services, construction equipment, Materials necessary for the execution and completion of the Works, and the remedying of any Defects or
Deficiencies; and 

  

	 	(d)	the means of access to the Project Areas and the accommodation it may require. 

 The Contractor
shall be deemed to have obtained all necessary information as to risks, contingencies and all other circumstances which may influence or affect the Lump Sum Price or Project Schedule. 

The Contractor has thoroughly investigated the Concession Area, including any applicable easements, water sources, access to the Project
Areas, transportation, international and local labor conditions, all Applicable Laws in the locations where Works are to be performed; and has investigated the Applicable Permits required as of the Effective Date and all attachments hereto; and
investigated all other matters or conditions it deems relevant or that could affect execution of the Works, and the Contractor shall not be entitled to and shall make any claim for additional compensation, Force Majeure, extension of the Time for
Completion, Variation or otherwise, for any reason relating to any of the foregoing matters (other than as provided in this Contract) or for any matter relating to conditions encountered above, below on or at the Project Areas on the ground of any
allegation or fact that incorrect or insufficient information was given to them by Owner or any other Person, whether in the employ of Owner or otherwise. 

The Owner acknowledges that the Contractor shall design the Plant on the basis of hydrological and water quality data supplied by the Owner
included in Exhibit D and therefore, the Contractor shall not be held liable for the accuracy of such data. Correctness and Sufficiency of the Lump Sum Price—The Contractor shall be deemed to have satisfied itself as to the correctness and
sufficiency of the Lump Sum Price. Unless otherwise stated in this Contract, the Lump Sum Price (other than with respect to Surface Invasive or Subsurface Civil Work) shall cover the performance of all its obligations under this Contract. 

  
 26 

	 	5.9	Foundations and Tunnels - All Surface Invasive and Subsurface Civil Work, will be subject to the risk sharing mechanism set forth in Exhibit I. Modifications to the Lump Sum Price and/or an extension of Time for
Completion will be granted to the Contractor according to the geological risk sharing procedures and Unit Rates set forth in Exhibit I, through the execution of a Variation. 

 

	 	5.10	Access to the Concession Area - The Contractor shall be responsible for the selection, design and construction of Access Roads and Accessways and for the alterations or modifications that it may need to introduce
in Access Routes, without prejudice to Section 2.1 and Exhibit F. The Contractor shall maintain and repair all Access Roads and Accessways and shall be responsible for repairing the Access Routes damaged by the Contractor or his Subcontractors.
Such selection, design, construction, alterations, modifications, maintenance and repair of Access Roads, Access Routes and Accessways, including their use and signaling, shall conform to the Applicable Laws. The Contractor shall provide any signs
or directions which he may consider necessary for the guidance and security of its staff, labor and others. The Contractor shall obtain any permission that may be required from any Governmental Authority or from any third party for the construction,
modification, alteration or use of such routes, signs and directions. 

 Owner will not be responsible for any claims which
may arise from the use or otherwise of any Access Route, Access Road or Accessway and the Contractor will defend Owner against and indemnify Owner for any third party claim or sanction imposed by any Governmental Authority for the use of any such
route or for the damages suffered as a result of any such use. 
 The Contractor shall be deemed to have satisfied himself as to the
suitability and availability of the Access Routes, Access Roads and Accessways he chooses to use in order to reach the Concession Area or the Project Areas, as applicable. Owner does not guarantee the suitability or availability of any particular
route, including those described by reference in the Project Data, and the Contractor shall not be entitled to any Variation for any non-suitability or non-availability for continuous use during construction of any such route except (a) as a
result of Force Majeure, if applicable, or (b) civil works on any route carried out by a Governmental Authority. 
 The Contractor
shall use reasonable efforts to prevent any of the highways or bridges connecting with or on the route to the Concession Area from being damaged or injured by any traffic of the Contractor or any of his Subcontractors. The Contractor in particular
shall select routes, choose and use vehicles and restrict and distribute loads so that any extraordinary traffic that will inevitably arise from moving the Major Items of Equipment and Material from and to the Concession Area shall be limited as far
as reasonably possible so that damage or injury to such highways and bridges shall be minimized or avoided altogether. 
 Any modification
or change in the selection, design or use of any Access Road, Access Route or Accessway shall be previously approved by Owner. 

  
 27 

 In case that the design and construction of some or all Access Roads and Accessways, are
executed by local or regional authorities within the Concession Area, then the Contractor shall participate in the public bid solicitation processes conducted by such authorities according to the Applicable Law and the Contractor shall make its best
efforts to be awarded the Access Contract. The Contractor shall be responsible for complying with the rules of the bid solicitation process and for the performance of its obligations under any Access Contract. The Parties will execute a Variation to
reflect the impact in the cost of the Works caused by the construction of such Access Roads and Accessways under any Access Contract. 
  

	5.11	Project Schedule - 

 The Contractor shall submit a detailed Project Schedule of the
execution of the Works to Owner’s Representative, for information, within forty-five (45) days after the Commencement Date. 
 The
Project Schedule (in the form of a GANTT chart) shall be in a level of detail reasonably acceptable to Owner’s Representative, shall not substantially deviate from the durations and milestones established in the preliminary Project Schedule set
out in Schedule 1 and shall be in accordance with the requirements hereof. The final Project Schedule shall include the following: 
  

	 	(a)	the order (identifying the tasks that are on the critical path) in which the Contractor proposes to carry out the Works (including each stage of design, procurement, manufacture, delivery to the Project Areas,
construction, erection, testing and Precommissioning, Start-Up and the Performance Tests); 

  

	 	(b)	the times when submissions and approvals or consents by Owner’s Representative are required, but only if indicated as required in the Technical Specifications; and 

 

	 	(c)	the Precommissioning, Start-Up and Performance Tests. 

 The Contractor shall prepare the
Project Schedule or any amendment or update to the Project Schedule in Primavera software or equivalent. The Project Schedule shall include all major events and activities in the production of Construction Documents and the periods for the
pre-construction reviews under Section 6.2. Unless otherwise stated in this Contract, the Project Schedule shall be developed using critical path method and precedence networking techniques, showing early start, late start, early finish and
late finish dates. 
 The Contractor shall, whenever required by the Owner’s Representatives or the Supervisor, provide in writing a
general description of the arrangements and methods which the Contractor proposes to adopt for the execution of the Works. If Contractor materially alters any such actions, obligations or Works, the Contractor shall inform Owner’s
Representative. If the progress of the Works does not conform to the Project Schedule, Owner’s Representative may request the Contractor to revise the Project Schedule, showing the modifications necessary to achieve completion within the Time
for Completion. 

  
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 The Contractor will not be relieved or excused of any obligation undertaken hereunder by the
absence or delay of Owner’s acceptance of the Project Schedule. 
  

	 	5.12	Progress Reports and Meetings – Daily reports shall be prepared by Contractor and submitted to the Representatives and the Supervisor electronically on the following day. The daily report shall include all
occurrences of the last twenty four (24) hours together with a description of the labour and Materials which have been incorporated in the Works. 

Monthly progress reports shall be prepared by the Contractor and submitted to the Owner’s Representatives and the Supervisor
electronically. One physical copy shall be delivered to Owner. The first report shall cover the period up to the end of the calendar month after that in which the Commencement Date occurred; reports shall be submitted monthly thereafter, on or
before the fifth (5th) Business Day of each calendar month. Reporting shall continue until the Contractor has completed all Works which are known to be outstanding at the completion date
stated in the Final Taking-Over Certificate. Each monthly report shall include: 
  

	 	(a)	photographs and detailed descriptions of progress, including each stage of design, procurement, manufacture, delivery to Project Areas, construction, erection, testing and Precommissioning, Start-Up and Performance
Tests; 

  

	 	(b)	charts showing the status of Construction Documents, purchase orders, manufacture and construction; 

  

	 	(c)	for the manufacture of each Major Item of Equipment, Materials and Spare Parts, the name of manufacturer, manufacture location, percentage progress and the actual or expected dates of commencement of manufacture,
Contractor’s inspections, tests and delivery; 

  

	 	(d)	records of personnel and Contractor’s Equipment on the Project Areas; 

  

	 	(e)	log of quality assurance documents, test results and certificates of Materials and equipment issued during the prior month; 

  

	 	(f)	safety statistics, including details of any hazardous incidents and activities relating to environmental aspects and public relations; 

  
 29 

	 	(g)	comparisons of actual and planned progress (including a summary of the Works expected to be completed during the ensuing calendar month), with details of any aspects which may jeopardize the completion in accordance
with the Project Schedule and this Contract, and the measures being (or to be) adopted to overcome such aspects (including material quantities installed, tables and charts for comparison versus total quantities for complete installation);

  

	 	(h)	any and all unresolved claims or disputes that involve requests for extension to the Time for Completion, or adjustment to any other date or milestone set forth in this Contract or increases in the Lump Sum Price; and

  

	 	(i)	any additional information that Owner’s Representative or any Governmental Authority may request. 

Notwithstanding the obligations provided in this Section 5.13, the Contractor shall promptly deliver any information reasonably requested
by Owner or any Governmental Authority regarding the execution of the Works. 
 Weekly meetings will be held at the Site between the
Contractor, Owner’s Representative and the Supervisor to review the status of the Works and all issues relating to the performance of Contractor’s obligations hereunder. 

Once a month the Contractor, Owner’s Representative and the Supervisor shall attend a meeting in order to discuss the previous monthly
progress report. Owner will inform seven (7) days in advance the date and location of the meeting. 
 The Contractor shall attend any
other meeting reasonably requested by Owner or the Supervisor. 
  

	 	5.13	Contractor’s Equipment - The Contractor shall provide all Contractor’s Equipment necessary to complete the Works within the Time for Completion. Contractor guarantees that all equipment and materials
listed on Exhibit A will be on site at the times and in at least the quantities listed therein. All Contractor’s Equipment shall, when brought on to the Project Areas, be deemed to be exclusively intended for the execution of the Works in order
to comply with the Technical Specifications. The Contractor shall not remove from the Project Areas any such Contractor’s Equipment without the consent of Owner’s Representative, which shall not be unreasonably withheld. 

 

	 	5.14	Safety Precautions - The Contractor shall comply with all applicable safety laws and regulations in his design, access arrangements and operations on the Project Areas, including, without limitation, Applicable
Laws of Peru, Applicable Permits, the Equator Principles based on the International Finance Corporation Performance Standards and particularly the EIA, Reglamento de Seguridad y Salud en el Trabajo de las Actividades Eléctricas (RM
No. 161-2007-MEM-DM del 13 de abril de 2007) and the most recent revisions of standards published by the International Organization for Standardization for the Protection of the Environment and Human Health and Safety. The Contractor shall,
from the commencement of Works on the Project Areas until the Final Taking-Over Date, provide the following in relation to on-site activities at the Project Areas: 

 

	 	(a)	fencing, lighting, guarding, watching and protecting the Works; 

  
 30 

	 	(b)	temporary roadways, footways, flagmen, warning signs, guards and fences which may be necessary for the accommodation and protection of owners and occupiers of adjacent land, the public and others; 

 

	 	(c)	reasonable measure for the prevention of fires; 

  

	 	(d)	the elimination of excessive dust or smoke; 

  

	 	(e)	the protection of overhead utility lines, underground pipes, conduit or cables clearly identified with full description thereof in Exhibits A and D; 

 

	 	(f)	protection of adjacent properties from subsidence, collapse, discharge, and from dust, smoke, fire and chemical or other intrusion from the performance of the Works; 

 

	 	(g)	personnel protection equipment for the Contractor’s personnel, Owner’s personnel and the Supervisor’s personnel; and 

  

	 	(h)	first aid facilities for the Contractor’s personnel, Owner’s personnel and the Supervisor’s personnel. 

Should Owner request that Contractor provide safeguards reasonably required by Applicable Laws or Applicable Permits for the protection of
persons or property as required by this Section 5.15 and should the Contractor fail to comply with such request within a reasonable time, Owner may provide such safeguards and the Contractor shall reimburse Owner for the reasonable costs
thereof. 
  

	 	5.15	Protection of the Environment - The Contractor shall comply with all Applicable Laws in the locations where Works are being performed and the portions of Applicable Permits which apply to Contractor’s
performance of Works, particularly the Environmental Management Plan contained in the EIA and other EIA regulations concerning construction, in its design, access arrangements and operations on the Concession Area. During construction, the
Contractor shall take all necessary steps to protect the environment (both on and off the Project Areas) pursuant to the Applicable Permits and the Applicable Laws in force in Peru from time to time. 

The Contractor shall provide properly designed storage areas which are impermeable to leakage into the surrounding soil for storage of oils,
lubricants or other hazardous wastes. Such storage will also be covered and protected from inundation and overflow by rainfall into the surrounding soil. Dangerous Substances generated during completion of the Works will be properly disposed of by
the Contractor. 

  
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 The Contractor shall be responsible only for Dangerous Substances which the Contractor brings
onto the Concession Area to use in the performance of the Works or which are generated by the Contractor at the Project Areas and shall not be responsible for Dangerous Substances nor any other environmental liabilities which exist at the Concession
Area on or before the Limited Notice to Commence. 
 Contractor shall remove any Dangerous Substances from the Concession Area before
returning any part thereof to Owner. 
 The Contractor shall, immediately upon discovery of any Dangerous Substance for which Owner is
responsible, notify Owner’s Representative, who may issue instructions to the Contractor regarding the removal of such Dangerous Substance. If the Contractor suffers delay or incurs Cost as a result of the execution of Owner’s
Representative instructions to remove Dangerous Substance, the Contractor shall give notice to Owner’s Representative of such delay or of the incurrence of such Costs, with a copy to Owner and Owner’s Representative shall promptly
thereafter agree or determine pursuant to Article XV: 
  

	 	(a)	the extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost, which shall be added to the Lump Sum Price, and shall notify the Contractor accordingly. 

  

	 	5.16	Public Relations with the Local Communities - During the execution of the Works the Contractor, its personnel and its Subcontractors shall undertake best efforts to keep and maintain good relations with the local
communities located within the Concession Area, respecting their customs and traditions. The Contractor must comply with the Community Relations Plan contained in the EIA in coordination with Owner. 

The Contractor shall appoint a person with experience in community relations management to liaise with Owner on the management of relations
with communities established in areas surrounding the Concession Area. The Contractor may not execute agreements or undertake commitments with stakeholders of the Works, including but not limited to Governmental Authorities, community leaders,
unions and others, without the prior written consent of Owner and once it executes any such agreement or assumes any such commitment, it shall comply with the obligations it has assumed therein. 

 

	 	5.17	Clearance of Project Areas - During the execution of the Works, the Contractor shall keep the Project Areas free from all unnecessary obstruction, and shall store or dispose of any Contractor’s Equipment or
surplus materials. The Contractor shall clear away and remove from the Project Areas any wreckage, rubbish or Temporary Works no longer required. Clearance of the Project Areas by the Contractor must comply with the Applicable Laws and particularly
with any environmental regulation. 

  
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 Upon the issue of the Final Taking-Over Certificate, the Contractor shall clear away and remove,
from that part of the Project Areas, all Contractor’s Equipment, surplus material, wreckage, rubbish and Temporary Works. The Contractor shall leave the Project Areas, the Works, the Access Routes and the Access Roads in a clean, safe and good
condition to the reasonable satisfaction of Owner’s Representative, except that, the Contractor shall be entitled to retain on the Project Areas, until the expiry of the Warranty Period, such Contractor’s Equipment, Materials and Temporary
Works as reasonably required by it for the purpose of fulfilling its obligations under this Contract. 
 Owner will have the option to
purchase for one (1) dollar the work camps infrastructure and buildings installed by the Contractor on the Project Areas for itself or for the local communities, or to instruct the Contractor to remove such camps and leave the Project Areas in
a clean condition. 
 If the Contractor fails to remove from the Project Areas, by twenty-eight (28) days after the issue of the Actual
Project Acceptance Certificate, any remaining Contractor’s Equipment, surplus material, wreckage, rubbish and Temporary Works or camp infrastructure, Owner may sell or otherwise dispose of such items. Owner shall be entitled to retain, from the
proceeds of such sale, a sum sufficient to meet the costs incurred in connection with the sale or disposal, and in restoring the Project Areas. Any balance of the proceeds remaining after Owner has reimbursed itself of disposal costs pursuant to
this Section 5.18, shall be paid by Owner to the Contractor. 
  

	 	5.18	Security of the Project Areas - Unless otherwise stated herein: 

  

	 	(a)	the Contractor shall be responsible for keeping unauthorized encroachment or persons off the Project Areas and shall not be entitled to a Variation if such occurs and damage or theft results therefrom and such shall not
be considered Force Majeure; and 

  

	 	(b)	authorized persons shall be limited to the employees of the Contractor, employees of Subcontractors, employees of the Supervisor and persons authorized by Owner or the Representatives. 

The Contractor shall allow Owner, Owner’s Representative, the Supervisor and any other Person notified to the Contractor by Owner,
Owner’s Representative or the Supervisor to inspect the Works at all times. 
  

	 	5.19	Contractor’s Operations on Project Areas - The Contractor shall confine his operations for Works to the Project Areas. The Contractor shall take all necessary precautions to keep his personnel, equipment and
Subcontractors within the Project Areas, and to keep and prohibit them from encroaching on adjacent land. 

  
 33 

	 	5.20	Remains - The Contractor may not claim any property interest or rights of any other nature over the Remains discovered by the Contractor on the Project Areas. The Contractor shall take reasonable precautions to
prevent its staff, labor or other Persons from removing or damaging any Remain discovered in the Project Areas. 

 The
Contractor shall, immediately upon discovery of a Remain of archeological nature, suspend the Works and advise Owner’s Representative, who may issue instructions how to proceed regarding such findings. The Contractor shall advise Owner’s
Representative of the estimated costs of removing any such Remain promptly after receiving instructions to remove the relevant remain and shall not commence the removal of the Remains until it receives written approval from Owner’s
Representative. If the Contractor suffers delay or incurs Cost as a result of the finding of the Remains or the execution of Owner’s Representative’s instructions regarding the Remains, the Contractor shall give notice to Owner’s
Representative of such delay or of the incurrence of such Costs with a copy to Owner and Owner’s Representative shall promptly thereafter agree or determine pursuant to Article XV: 

 

	 	(a)	the extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost, which shall be added to the Lump Sum Price, and shall notify the Contractor accordingly. 

The Contractor will be responsible of obtaining all permits and authorizations necessary for the exploitation of the quarries needed for the
executions of the Works. 
 The Contractor shall immediately inform Owner of any discovery of minerals and seek instructions for dealing
with them. The manipulation and disposal of minerals shall be done in compliance with the corresponding rules of the EIA and the Applicable Laws. 

The Contractor, its Subcontractors, their Affiliates, agents, staff and labor shall not file any application, petition or request to be
granted an authorization, permission or concession to explore or exploit minerals within the Concession Area and surrounding areas that could interfere with the proper execution of the Works. 

 

	 	5.21	Use of Explosives - The Contractor shall comply with the Technical Specifications and with all Applicable Laws and internationally accepted practices related to the acquisition, transportation, storage, handling
and use of explosives for the execution of the Works. The Contractor shall build adequate explosives storage facilities on the Project Areas duly approved by the competent Government Authority. The acquisition, transportation, storage, handling and
use of explosives shall be executed by the Contractor according to a written proceeding protocol previously delivered by the Contractor and approved by Owner. The Contractor shall obtain all Applicable Permits and shall be the only responsible for
the acquisition, transportation, storage, handling and use of explosives in the Works, including all security issues and safety precautions thereto. 

  
 34 

 The Contractor shall inform the communities located in the Concession Area the dates and times
of programmed use of explosives, the recommended safety measures and any other information relevant to guarantee their security and safety, pursuant to a communication plan previously approved by Owner. 

 

	 	5.22	Water Borne Traffic - Where the nature of the Works is such that Contractor elects to use of water borne transport, the Contractor shall use reasonable efforts to prevent any of the locks, docks, sea walls or
other structures related to a waterway from being damaged or injured by any traffic of the Contractor or any of his Subcontractors. The Contractor in particular shall select routes, choose and use crafts and restrict and distribute loads so that any
extraordinary traffic that will inevitably arise from moving the Major Items of Equipment and Material from and to the Concession Area shall be limited as far as reasonably possible so that damage or injury to such waterway structures shall be
minimized or avoided altogether. 

  

	 	5.23	Training Program - The Contractor shall provide, at no additional cost to Owner, training at the Plant for the operators of the Plant pursuant to the Training Program set forth in Exhibit A. Such training shall
commence ninety (90) days prior to the first Partial Taking-Over Date. 

  

	 	5.24	Participation - The Contractor shall and shall cause each of its Subcontractors carrying out Works in Peru: 

  

	 	(a)	to the maximum extent possible, give preference to the use of construction equipment and other equipment, materials and products produced and manufactured in Peru; and 

 

	 	(b)	to the maximum extent possible, give preference to the use in the performance of its obligations under this Contract to local labor (both skilled and unskilled), local supervisory, professional and other personnel,
local services and local contractors. 

  

	VI.	DESIGN 

  

	 	6.1	Design of the Works - The Contractor shall carry out and be responsible for all the design of the Works. Detailed Design shall be prepared by qualified designers who are engineers or other professionals and who
are also internationally experienced designers. Once approved by Owner’s Representative, in accordance with Exhibit A, Detailed Design will become part of the Technical Specification. Any examination, comment or approval to the Detailed Design
by Owner’s Representative or the Supervisor will not relieve the Contractor from any duty, responsibility or obligation under this Contract. 

  
 35 

 For each part of the Works, the prior written consent of Owner’s Representative shall be
obtained before any design engineer or design Subcontractor, if they are not named as such in this Contract or identified in the Subcontractor List set forth in Schedule 2. Nothing contained in this Contract shall create any contractual relationship
or professional obligations between any design engineer or a design Subcontractor (including in each case, between their respective employee or employers) and Owner. 

The Contractor represents and warrants to the Owner that the Contractor, its designers and design Subcontractors have the experience and
capability necessary for the design of the Plant. The Contractor shall make available all designer engineers for discussions with Owner’s Representative and the Supervisor at any time prior to the expiration of the Warranty Period and promptly
after the receipt of a request from Owner. 
  

	 	6.2	Construction Documents and Workbook –The Contractor shall prepare Construction Documents which must satisfy the Technical Specifications (Exhibit A), all Applicable Laws, Applicable Permits and all
regulatory approvals, to provide Contractor’s suppliers and construction personnel sufficient instruction to execute the Works, and to describe the operation of the completed Works. 

Construction Documents shall, when considered ready for use, be submitted to Owner’s Representative for review and approval when required
in accordance with Exhibit A. The Contractor shall issue at least one counterpart of each Construction Document in Spanish and shall be approved as required by Applicable Law. 

If Owner’s Representative, within the applicable Review Period, notifies the Contractor that a proposed Construction Document is
deficient, such Construction Document shall be rectified and resubmitted by the Contractor for review in accordance with this Section at the Contractor’s expense. 

For each part of the Works: 
  

	 	(a)	construction shall not commence prior to either the date on which Owner’s Representative gives its final review comments and such have been addressed by the Contractor in a manner satisfactory to the Owner’s
Representative or the expiry of the Review Periods (whichever is earlier) (including, to the extent required by Exhibit A, the receipt of Owner’s Representative’s approval within such Review Period) for the Construction Documents which are
relevant to the design and construction of such part as indicated in Exhibit A; 

  

	 	(b)	construction shall be strictly in accordance with such Construction Documents; and 

  

	 	(c)	if the Contractor modifies any Construction Document which has previously been submitted for such pre-construction review, the Contractor shall immediately in writing notify Owner’s Representative of the change and
provide Owner with a copy of the modified Construction Document, which shall be submitted for pre-construction review within a new Review Period. 

  
 36 

 Errors, omissions, ambiguities, inconsistencies, inadequacies and other Defects in the
Construction Documents or arising therefrom shall be rectified by the Contractor at its sole cost and risk. 
  

	 	6.2.1	No Relief from Liability - Neither: 

  

	 	(a)	the examination, review or approval of Construction Documents under this Section 6.2 or the making of objections, representations, comments or suggestions, or failure to make the same in relation to the said
Construction Documents, the Workbook or any other aspect of the Works; nor 

  

	 	(b)	any other act or omission of Owner, the Representatives, the Supervisor or of any other Person acting or purporting to act on its behalf in relation to any aspect of the Works (including without limitation the issue of
any payment certificate or other certificate or the issue of any order or instruction pursuant to this Contract); 

 shall
relieve the Contractor in whole or in part of any duty, obligation or liability undertaken by the Contractor in relation to the Works under this Contract or otherwise, or diminish or vary any such duty, obligation or liability, whether by way of
contribution or otherwise. Neither Owner nor the Representatives or the Supervisor shall be under any duty or obligation to warn or notify the Contractor of the breach of any duty or obligation owed by the Contractor hereunder or otherwise in
relation to the Works of which Owner, the Supervisor or the Representatives are aware. 
  

	 	6.2.2	No Variation - Neither any review of Construction Documents or the Workbook by the Representatives or the Supervisor under this Section 6.2 nor any modification as a result of such review shall be capable of
constituting a Variation pursuant to Article XV and no additional payment of any kind or extension of Time for Completion shall be awarded in respect of the time taken for, or other circumstances whatsoever surrounding, review of the Construction
Documents by Owner’s Representative and the Supervisor or the subsequent carrying out of the Works. 

  

	 	6.3	Contractor’s Undertaking - The Contractor represents and warrants that the design, the Construction Documents, the execution and the completed Works will be in accordance with the following, in order of
priority: 

  

	 	(a)	the Applicable Permits; 

  

	 	(b)	the Applicable Laws of Peru; and 

  

	 	(c)	the documents forming this Contract, as altered or modified by Variations. 

  
 37 

 The Contractor shall not, under any circumstances, deviate from the requirements of (a) and
(b) above without Owner’s prior written approval. The Contractor shall make no claim for any additional compensation, extension of the Time for Completion, Variation or otherwise for any such deviations due to legal or physical
impossibility except and only to the extent expressly permitted by this Contract. The Contractor further represents and warrants that as of the Base Date, it is not aware of any conflict between the Applicable Laws in Peru and the requirements of
this Contract. The above additional compensation does not include any indemnification for loss or damages arising from Owner’s breach of Contract. 
  

	 	6.4	Technical Standards and Regulations - The design, the Construction Documents, the execution and the completed Works shall comply with the technical standards specified in the Technical Specifications and
Schedules or as defined by Applicable Laws and Applicable Permits including requirements of local utility providers and the electric transmission grid. References in this Contract to such specifications and other matters shall be understood to be
references to the edition applicable on the Base Date, unless explicitly stated otherwise herein. If a Change in Law occurs after the Base Date, the Contractor, if it does so within thirty (30) days after knowledge of such Change in Law, may
submit proposals for compliance to Owner’s Representative and upon Owner’s Representative’s acceptance of the technical solution included in such proposal the Contractor shall be entitled to a Variation in accordance with Article XV.

  

	 	6.5	Samples - The Construction Documents shall include the following samples and any relevant information, which the Contractor shall submit for pre-construction review by Owner’s Representative in accordance
with Section 6.2: 

  

	 	(a)	samples (if any) specified in the Technical Specifications; 

  

	 	(b)	additional samples instructed by Owner’s Representative under Article XV; and, 

  

	 	(c)	additional samples proposed or requested by the Contractor. 

  

	 	Each	sample shall be labeled as to origin and intended use in the Works. 

  

	 	6.6	As-Built Drawings - The Contractor shall prepare and keep up-to-date a complete set of “as-built” records of the execution of the Works pursuant to Applicable Law, showing the exact as-built locations,
sizes and details of the Works as executed. These records shall be kept on the Site. 

 “As-built” records shall be
submitted to the Owner’s Representatives and the Supervisor prior to the commencement of the Performance Tests for the Plant. The Works shall not be considered to be completed for the purposes of issuing the Final Taking-Over Certificate under
Article XI until such “as-built” records have been submitted to Owner’s Representative and the Supervisor. 

  
 38 

 Two (2) full-size original copies and six (6) printed copies of the relevant
‘as-built drawings’ and digital support of such as-built drawings, all of which must be compatible with the latest version of AUTOCAD and shall be available at the Site, shall be provided to Owner’s Representative and the Supervisor
within ninety (90) days after the Final Taking-Over Date. As-built drawing requirements are as specified in the Technical Specifications. 
  

	 	6.7	Operation and Maintenance Manuals - The Contractor shall prepare operation and maintenance manuals for all equipment included in the Works and of the Plant’s control system and shall deliver two
(2) printed and one (1) electronic copies to Owner’s Representative no later than thirty (30) days prior to the commencement of the Training Program. The manuals referenced herein shall be drafted in English and in Spanish
pursuant to the Contract and shall contain sufficient detail to enable Owner to operate, maintain, adjust and repair the Works. The Works shall not be considered to be completed for the purposes of issuing the Final Taking-Over Certificate under
Article XI until such operation and maintenance manuals have been submitted to Owner’s Representative and the Supervisor. Prior to the Actual Project Acceptance Date, the Contractor shall provide to Owner and the Supervisor with final versions
of said operation and maintenance manuals reflecting any revisions that are required according to the conclusions of the testing, Start-Up, Precommissioning and Performance Tests processes. The Contractor shall assist Owner in preparing operating
procedures for the Works. 

  

	 	6.8	Error by Contractor - If errors are found in the Construction Documents and a warranty claim made prior to the expiration of the Warranty Period, they and any resulting Defective Works shall be corrected promptly
at the Contractor’s cost. 

  

	 	6.9	Patent Rights - The Contractor shall indemnify Owner and its Affiliates against all claims of infringement of any patent, registered design, copyright, trade mark or trade name, or other intellectual property
right if the claim or proceedings arises out of the design, construction, manufacture or use of the Works. 

  

	VII.	STAFF AND LABOR 

  

	 	7.1	Engagement of Staff and Labor - The Contractor shall make its own arrangements for the engagement of all staff and labor, local or otherwise, and for its payment, housing, feeding, security, and transport.

 The Contractor may import such staff, artisans, and laborers as are required to execute the Works. The Contractor is solely
responsible for ensuring that all such staff and labor are provided with the required migratory condition and work permits, and shall be responsible for their safety and security while under its employ. The Contractor shall be responsible for the
return to the place where they were recruited or to the domicile of all persons whom the Contractor recruited and employed for the purposes of or in connection with the Works and this Contract. The Contractor shall be responsible for such persons
until they have left the Project Areas and shall cause any person employed by it who is not a citizen of Peru to leave the territory of Peru when required by such person’s migratory condition pursuant to Applicable Law. 

  
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 The Contractor shall defend the Owner against any threatened or actual claim brought by any
employee of the Contractor or its Subcontractors or any person engaged by any of the latter for the performance of the Works relating to the breach of any obligations of the Contractor or its Subcontractors under this section 7.1 and shall indemnify
the Owner and hold the Owner harmless of any loss or damage suffered by the Owner of the result of any such claim. 
  

	 	7.2	Rates of Wages and Conditions of Labor - For the Works being carried out in Peru, the Contractor shall pay rates of wages and observe conditions of labor not less favorable than those established for the
Applicable Law. If no such established rate or conditions are applicable, the Contractor shall pay rates of wages and observe conditions not less favorable than the general level of wages and conditions observed by other countries in Latin America
which have labor conditions similar to those of Peru and in any case, no less favorable than those imposed by Applicable Law. On each date on which wages are paid, the Contractor shall deliver to each employee in Peru receiving wages a copy of the
payroll slip evidencing the amounts withheld by Contractor pursuant to Applicable Law and the Contractor shall require all Subcontractors to provide each of its employees in Peru with such payroll slip upon payment of wages. 

 

	 	7.3	Persons in the Service of Others - Any Party shall not recruit, or attempt to recruit, its staff and labor from amongst persons in the service of the other Party, its Representatives, Supervisor or Owner’s
consultants. 

  

	 	7.4	Labor Laws - The Contractor shall comply, and shall cause its Subcontractors to comply, with all the relevant labor laws applying to their employees, and shall duly pay and afford to them all their legal rights
under Applicable Laws and Applicable Permits. The Contractor shall require all such employees and Subcontractors to obey all Applicable Laws and regulations concerning safety and health at work. 

The Contractor shall submit detailed reports showing the supervisory staff and the numbers of the several classes of labor from time to time
employed by the Contractor and Subcontractors on the Project Areas. The reports shall be submitted in such form and at such intervals as Owner’s Representative may prescribe. 

The Contractor shall submit details in the prescribed forms to the appropriate manpower agencies having jurisdiction over the Concession Area
showing supervisory staff and the numbers of the several classes of labor from time to time employed by the Contractor and the Subcontractors on the Project Areas. The forms shall be submitted in such manner and at such intervals as prescribed under
the labor laws of Peru and other applicable regulations, with copies to Owner’s Representative and the Supervisor. 
 In addition,
Contractor shall deliver to Owner a certificate substantially in the form of Schedule 23 (Form of Labor Obligations’ Certificate), enclosed to each invoice to be issued by the Owner, by which Contractor will represent and warrant to Owner that
the Contractor and any Subcontractor have complied with all of their obligations pursuant to applicable labor legislation with respect to employees performing activities at the Site related to the amounts evidenced in the relevant invoice. 

  
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 Whenever threatened or actual picketing, slowdowns, work stoppages, strikes or other forms of
labor dispute may threaten to or cause delay or otherwise affect the Works, the Contractor shall immediately notify Owner in writing about the existence of any such dispute. Such notice shall include all relevant information regarding the labor
dispute, its background, its estimated impact and the steps the Contractor proposes to take to resolve or prevent its occurrence. 
 In the
event of a labor dispute directed at the Contractor, the Contractor shall promptly take action, whether to initiate proceedings in such administrative, judicial, or arbitral forum having jurisdiction, or to otherwise resolve, or minimize the impact
of the labor dispute. No such labor dispute directed at the Contractor shall constitute Force Majeure unless expressly within the coverage of Section 20.1 or entitle the Contractor to a Variation or any other relief. 

The Contractor’s obligations in the event of any labor dispute shall include taking all reasonable steps necessary to have pickets or any
other obstruction to the Works removed. 
  

	 	7.5	Working Hours - The Contractor shall be permitted to work at the Project Areas at any time or hour, as permitted by Applicable Laws and Applicable Permits. The Contractor’s Representative or a qualified
supervisor shall be present during all periods, including overtime and second and third shifts, when work is in progress at the Project Areas. 

The Contractor shall in dealings with its staff and labor have due regard to all recognized festivals, days of rest and religious or other
customs observed by its staff and labor and in Peru all of which shall remain the exclusive responsibility of Contractor, and none of the latter shall have an impact in the Project Schedule or the Lump Sum Price. 

 

	 	7.6	Facilities for Staff and Labor - The Contractor shall provide and maintain all necessary accommodation and welfare facilities for its, its Subcontractor’s, Owner’s and the Supervisor’s staff and
labor, as may be required under Applicable Laws or hereby, as well as accommodation and welfare facilities for the Lender’s Representative. The Contractor shall not permit any of its employees or any of the employees of Subcontractors to
maintain any temporary or permanent living quarters within the structures forming part of the Works. 

  

	 	7.7	Health and Safety - Precautions shall be taken by the Contractor to ensure the health and safety of its staff and labor. The Contractor agrees to abide by the undertakings assumed by Owner with the competent
Governmental Authority and all applicable standards issued by the World Health Organization as applicable to the practices prevailing in Peru. The Contractor shall, in collaboration with and to the requirements of the local health authorities,
ensure that medical staff, first aid facilities, sick bay and ambulance service are available at the staff’s accommodation and on the Project Areas during all times the Works are being executed and that suitable arrangements are made for all
necessary welfare and hygiene requirements provided by Applicable Law, including but not limited to material and procedures necessary for the prevention of epidemics. 

  
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 The Contractor shall maintain records and make reports concerning health, safety and welfare of
persons, and damage to property, as Owner’s Representative may reasonably require. 
 The Contractor shall appoint a member of its
staff at the Site to be responsible for maintaining the safety, and protection against accidents, of personnel on the Project Areas. This person shall be qualified to perform such function, shall be a full time employee of the Contractor and shall
have the authority to issue instructions and take protective measures to prevent accidents. The Contractor shall send to Owner’s Representative and the Supervisor details of any accident as soon as possible (but in any event within twenty-four
(24) hours) after its occurrence. 
 The Contractor shall at all times take the necessary precautions to protect all staff and labor
employed on the Project Areas from any health hazard that may be caused by insects, animals or any pest nuisance. The Contractor shall cause any competent third party to spray thoroughly all buildings erected on the Project Areas with an insecticide
whose use is permissible under Applicable Laws of Peru, at least twice each month or as instructed by such authorities. 
 In the event of
any outbreak of illness of an epidemic nature, the Contractor shall comply with and carry out such regulations, orders and requirements as may be made by the government of Peru, or the local medical or sanitary authorities, for the purpose of
dealing with and overcoming the same. 
 The Contractor agrees to comply with any and all safety and health requirements established by
Owner and provided in this Contract and in Applicable Law. 
  

	 	7.8	Contractor’s Superintendence - The Contractor shall provide all necessary superintendence during the design and execution of the Works, and as long thereafter as Owner’s Representative may consider
necessary for the proper fulfilling of the Contractor’s obligations under this Contract. Such superintendence shall be given by sufficient and suitably qualified persons having adequate knowledge of the operations to be carried out (including
the methods and techniques required, the hazards likely to be encountered and methods of preventing accidents) for the satisfactory and safe execution of the Works. For proper superintendence, the Contractor’s Construction Manager shall
dedicate sufficient attention to her or his responsibilities regarding the Works. 

  

	 	7.9	Contractor’s Personnel - The Contractor shall employ (or cause to be employed) only persons who are careful and appropriately qualified, skilled and experienced in their respective trades or occupations.
Owner’s Representative may reasonably require the Contractor to remove (or cause to be removed) any person employed on the Project Areas or Works, including the Contractor’s Representative, who in the opinion of Owner’s
Representative: 

  

	 	(a)	persists in any misconduct; 

  
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	 	(b)	is incompetent or negligent in the performance of her or his duties; 

  

	 	(c)	fails to conform with any provisions of this Contract; or 

  

	 	(d)	persists in any conduct which is prejudicial to safety, health, or the protection of the environment. 

If appropriate, the Contractor shall then appoint (or cause to be appointed), at Contractor’s sole cost, a suitable replacement person.

  

	 	7.10	Disorderly Conduct - The Contractor shall cause its staff and labor to comply with Owner’s policies and procedures and at all times take all reasonable precautions to prevent any unlawful, riotous or
disorderly conduct by or amongst its staff and labor and the staff and labor of its Subcontractors, and to preserve peace and protection of persons and property in the Concession Area against such conduct, including offsite locations, and no such
conduct shall be considered Force Majeure or entitle the Contractor to a Variation. The Contractor shall be responsible for observance by the Subcontractors of the foregoing. 

 

	 	7.11	Alcoholic Liquor or Drugs - The Contractor shall not, otherwise in accordance with the statutes, ordinances and government regulations or orders or under any Applicable Laws, import, sell, give, barter or
otherwise dispose of any alcoholic liquor or drugs, or permit or suffer any such importation, sale, gift, barter or disposal by its Subcontractors, agents, staff and labor. The Contractor shall be responsible for observance by the Subcontractors of
the foregoing. 

  

	 	7.12	Contractor’s Organizational Chart - None of the individuals identified in the Contractor’s Organizational Chart as key individuals may be withdrawn from the Plant without prior notification to Owner and
all such listed individuals shall dedicate appropriate attention to their responsibilities regarding the Works. No such withdrawal shall be made if it will jeopardize successful completion of the Works within the Time for Completion.

  

	 	7.13	Labor Actions -The Contractor shall establish and maintain for each Project Areas a primary access gate and an access policy. The Contractor shall also establish and maintain at all times for the each Project
Areas a reserve gate. The Contractor shall be obligated and shall ensure that all Subcontractors continue the proper performance of the work and meet all reasonable manning requirements notwithstanding the use of pickets at the reserve gate
established for use by the Contractor and any of the Subcontractors or at any other location or entrance at or near the Project Areas. The Contractor shall ensure that its Subcontractors and all persons entering the Project Areas enter and exit the
gate designated for their use and will instruct all persons exiting and entering the Project Areas as to the proper gates. If for any reason the Contractor fails to perform any condition contained in this Section 7.13, and thereafter fails to
remedy such condition within thirty (30) days after notice from Owner, the Contractor shall be in default of its obligations under this Contract and the Contractor shall not be entitled to an adjustment in any amounts payable under this
Contract or the Time for Completion. The Contractor and all Subcontractors shall comply with and observe all terms and conditions of any collective bargaining or labor agreements to which any of them is a party. 

  
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	VIII.	MATERIALS AND WORKMANSHIP 

  

	 	8.1	Manner of Execution - All Major Items of Equipment and Materials to be supplied shall be manufactured and all work to be done shall be executed in the manner set out in this Contract. The Contractor shall supply
only new Materials to Owner. Owner may reject the delivery, installment or use of any previously used Materials. The Works shall be executed in a proper, workmanlike and careful manner with properly equipped facilities and non-hazardous Materials
(except for those fluids, lubricants and materials routinely used by Contractor in this type of work and whose use is permissible under Applicable Laws of Peru and to Applicable Permits), in accordance with recognized good practice and Prudent
Utility Practices. 

  

	 	8.2	Delivery to the Concession Area - The Contractor shall be responsible for procurement, transport, receiving, unloading and safe keeping of all Major Items of Equipment, Materials, Contractor’s Equipment and
other things required for the completion of the Works. At least thirty (30) days prior to the first shipment of Contractor’s Equipment, the Contractor shall submit to Owner a shipping schedule giving the proposed month of shipment of each
of the Major Items of Equipment, Materials as well as Contractor’s Equipment. The Contractor may from time to time revise such shipping schedule to take account of any changes and supply to Owner each such revised schedule within five
(5) days of its revision. Not later than four (4) days before departure of any shipment of a Major Item of Equipment or relevant Materials which shipment is covered by an insurance policy of Owner, the Contractor shall provide Owner with a
written notice (a “Shipment Notice”) forwarded by facsimile specifying: 

  

	 	(a)	the item to be shipped; 

  

	 	(b)	the date of shipment; 

  

	 	(c)	the point of loading or transfer of each shipment; 

  

	 	(d)	the anticipated date of arrival in Peru and at the Project Areas of each shipment; and 

  

	 	(e)	the name of the carrier and the name of the ship (or other means of transport) of each shipment. 

The Contractor shall confirm to Owner the details referred to in paragraphs (a) through (e) above by facsimile immediately after
departure of each shipment or in any case no later than (a) by the close of business in Peru of the fourth day after departure of each shipment or (b) on the last date by which Owner would be able to forward the information contained in
the Shipment Notice to its insurer or insurers pursuant to the insurance policy or policies covering such shipment, whichever is earlier. 

  
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	 	8.3	Inspection - To the extent provided herein or to the extent there exists reasonable justification therefor under the circumstances at the time, Owner, the Supervisor and the Owner’s Representatives shall be
entitled, during manufacture, lubrication and preparation at any places where work is being carried out (but only at reasonably agreed witness or hold points in the case of Subcontractors who are not Affiliates of the Contractor), to inspect,
examine and test the materials and workmanship, and to check the progress of manufacture, of all Major Items of Equipment and Materials to be supplied under this Contract. In furtherance of the foregoing, the Contractor shall within ninety
(90) days of the Notice to Commence submit to Owner and the Supervisor a detailed plan of all inspections concerning any subcontracted or purchased portion of the Works which would be dictated by Prudent Utility Practices and give the foregoing
parties full opportunity to inspect, examine, measure and test any work on the Project Areas or wherever carried out. All costs related to the inspections under this Section 8.3 shall be at Owner’s expense. 

The Contractor shall give due notice (but in any event, not more than seven (7) days’ prior Notice) to the Owner’s
Representatives and the Supervisor whenever work subject to the above witness plan coverage is ready, before packaging, covering up or putting out of view such work. The Owner’s Representatives and the Supervisor shall then witness the
inspection, examination, measurement or testing without unreasonable delay, or notify the Contractor that it is considered unnecessary. If the Contractor fails to give such notice, it shall, when required by the Representatives, uncover such work
and thereafter reinstate and make good at its own cost. 
  

	 	8.4	Testing - If this Contract specifies some tests, the Contractor shall provide all documents and other information necessary for testing and such assistance, labor, materials, electricity, stores, apparatus and
instruments as are necessary to carry out such tests efficiently. 

 The Contractor shall notify Owner’s Representative
and the Supervisor the time and place for the testing of any equipment and other parts of the Works as specified in this Contract. Owner’s Representative and the Supervisor shall give the Contractor written notice of their intention to attend
the tests not less than twenty-four (24) hours prior to the time in which the test is schedule to occur. 
 If the Owner does not
attend or does not notify the Contractor as specified above, at the time and place agreed, the Contractor will proceed with the tests. 

The Contractor’s notification pursuant to this paragraph shall be made no later than the fifteenth Business Day prior to the date in
which the relevant test is scheduled. The Contractor shall provide sufficient suitably qualified and experienced staff to carry out the tests specified in this Contract. 

The Contractor shall promptly make available at the place of testing to Owner’s Representative and the Supervisor duly certified reports
of the tests and copies of the data upon which the reports are based. When the specified tests have been passed, Owner’s Representative shall endorse the Contractor’s test certificate, or issue a certificate to them, certifying that the
test was passed as of the date on which the tests were passed. 

  
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	 	8.5	Rejection - If, as a result of inspection, examination or testing made prior to the start of the Warranty Period, it is determined that any item or service provided has Defects or Deficiencies or otherwise is not
in accordance with this Contract, Owner’s Representative may reject such item or service and shall notify the Contractor promptly, stating its reasons. The Contractor shall then promptly remedy the Defects or Deficiencies and ensure that the
item complies with this Contract at its sole cost and risk of delay. 

 If Owner’s Representative requires such defective
item of Works or service rejected under this Section 8.5 to be retested, the tests shall be repeated under the same terms and conditions. If such correction and retesting cause Owner to incur additional costs, such costs shall be recoverable
from the Contractor by Owner, and may be deducted by Owner from any monies due, or to become due, to the Contractor. 
  

	 	8.6	Ownership of Major Items of Equipment, Materials or Other Works - Title to each Major Items of Equipment, Materials or Works shall pass to Owner at Final Taking Over Date. 

The Contractor warrants and guarantees that legal title to all Materials, equipment, tools and supplies furnished by the Contractor,
Subcontractors or their agents which are being shipped to the Project Areas, incorporated in the Works or in storage at the Project Areas, shall pass free and clear of any and all liens, claims, security interests or other encumbrances. Without
derogating from the generality of the foregoing, the Contractor hereby irrevocably waives the right to assert any contractor’s lien over the Works, the Plant or the Project Areas. If at any time prior to the expiry of the Warranty Period there
is evidence of any lien or claim for which Owner might be or become liable and to which the Works or any part thereof, the Plant or the Project Areas might become subject and which arises from any act or omission on the part of the Contractor or any
debt or liability of the Contractor, the Contractor shall indemnify Owner against all losses suffered by Owner as a result thereof. Owner may retain an amount (not to exceed the amount of the claim in respect of which the lien was placed) as
security until Owner is satisfied that such lien or claim is invalid unless such lien or claim is delaying the Partial Taking-Over Date or the Final Taking-Over Date or adversely affects the Owner’s ability to operate the Plant, in which case,
Owner may after giving Contractor seven (7) days’ prior written notice, pay and discharge the same and deduct the amount so paid from any amount due and payable to the Contractor under the Contract or otherwise recover the same as a debt
due from the Contractor. 
 Notwithstanding transfer of title or ownership, risk of loss or damage shall be as stated in Article XVIII. 

 

	IX.	COMMENCEMENT, DELAYS AND SUSPENSION 

 Commencement of Works – The Limited Notice
to Commence authorizes and directs the Contractor to perform the Preliminary Works. The Limited Notice to Commence shall be issued by Owner no later than December 30, 2011. If Owner gives the Limited Notice to Commence after
December 30, 2011, the Contractor shall be entitled to a Variation of the Time for Completion and Lump Sum Price in accordance with Article XV. 

  
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 The Contractor shall commence the execution of the Works immediately after the receipt of
(a) the Notice to Commence issued by Owner’s Representative and (b) the information required under Section 2.4. The Contractor shall then proceed with the Works with due expedition and without delay until completion. Owner shall
be under no obligation or liability to give the Notice to Commence. 
 If Owner does not give the Notice to Commence by the end of the sixth
month after the Commencement Date the Parties shall negotiate for a term of thirty (30) days changes to the Time for Completion and Lump Sum Price. For such purpose the right of Owner under Section 15.2 shall not apply. If such changes are
not agreed within the term above, this Contract shall be automatically terminated upon the receipt by a Party of written notice from the other Party indicating its decision to terminate. Such termination shall be without any further liability to the
Parties, except for payment of the Preliminary Works Lump Sum that is due hereunder as of the date of termination and reimbursement of Costs incurred by Contractor until the date of termination of the Contract; provided, that Contractor shall
reimburse Owner for the roads included in the Preliminary Works paid but not performed by such date, according to and only for their Unit Values. The remaining balance of the Preliminary Works Lump Sum after such reimbursement is made, will be
retained by the Contractor. During such thirty (30) day period Contractor shall not perform any Works nor enter into any purchase or similar orders and shall limit all its actions to maintaining a stand-by status minimizing any costs associated
thereto. 
  

	 	9.1	Time for Completion - The Contractor guarantees that the Partial Taking-Over Date will be achieved on or before the Scheduled Partial Taking-Over Date and that the Final Taking-Over Date will be achieved on or
before the Schedule Final Taking-Over Date. The Contractor further agrees that it shall use its best efforts to achieve the Actual Project Acceptance Date as expeditiously as possible, but in no event later than one hundred eighty (180) days
after the Final Taking-Over Date (as such time may be extended under Section 5.1). If the Partial Taking-Over Date or the Final Taking-Over Date do not occur on or before the Scheduled Partial Taking-Over Date or the Scheduled Final Taking-Over
Date, then the Contractor shall, within fifteen (15) days of Schedule Partial Taking-Over Date or the Scheduled Final Taking-Over Date, submit to Owner a detailed technical and narrative analysis of the root causes that prevented the
achievement of Partial Taking-Over Date or Final Taking-Over Date and a detailed plan (the “Remedial Plan”) designating the new expected date for Partial Taking-Over Date or Final Taking-Over Date and setting out the technical steps
necessary for such. 

  

	 	9.2	Extension of Time for Completion - 

  

	 	9.2.1	Causes for extension of Time for Completion - In addition to any extension provided under Section 5.1, the Contractor may apply for an extension of the Time for Completion if any of the following events
effectively causes a delay in the Works: 

  

	 	(a)	a Variation (unless an adjustment to the Time for Completion is agreed under Section 15.2); 

  
 47 

	 	(b)	a Force Majeure event (as defined in Section 20.1); 

  

	 	(c)	interference by Owner with Contractor’s performance of Performance Tests to the extent permitted under Section 10.6; 

  

	 	(d)	delays in the execution or performance of Access Contracts due to causes not attributable to the Contractor; 

  

	 	(e)	failure by Owner to perform any of its obligations in accordance with Section 2.1 of this Contract; 

  

	 	(f)	a Change in Law; 

  

	 	(g)	if the Contractor suffers delays due to failure on Owner’s part to remove any Dangerous Substance or as a result of the execution of Owner’s Representative’s instructions to remove Remains in accordance
with Section 5.16 or 5.21; or 

  

	 	(h)	Suspension of Works in accordance with Section 9.7; 

  

	 	(i)	delay in obtaining the Owner’s Permits, as eventually modified or adjusted in accordance with Section 2.2; 

  

	 	(j)	the presence or discovery of Remains which delay or interfere with the Works; 

  

	 	(k)	non availability of the COES for connection of the Works at the time for testing or commissioning, for more than seven (7) days regarding the last Generator Set to be subject to Performance Tests;

  

	 	(l)	insufficient water flows to perform the Performance Tests during any period in which the Contractor is required to perform such tests under the Contract; 

 

	 	(m)	the Owner directing tests under Section 8.4 and Section X that are additional to those specified in this Contract; and 

  

	 	(n)	physical action of Governmental Authority where such physical action prevents the Contractor from carrying out any portion of the Works and which is not due to the (i) negligence or lack of due diligence or
reasonable efforts of the Contractor to overcome such physical action and/or omissions on the part of Contractor with respect to the action or inaction claim or (ii) failure to wait a reasonable and customary period for such action to be
resolved; and 

  

	 	(o)	delay in obtaining Owner’s Representative approval of Construction Documents as provided by Exhibit A. 

  
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	 	9.2.2	Exclusions for Extension of Time for Completion – Except where otherwise expressly specified in the Contract including Section 20.1, the Contractor is expressly precluded from any extension of the Time
for Completion due to: 

  

	 	(a)	actions or inactions of (i) any Governmental Authority if caused by or attributable to the Contractor’s failure to make due and timely application for an Applicable Permit for which it is responsible under
Section 2.2 in accordance with the procedures laid down by the relevant Governmental Authority or (ii) the Contractor, including the lapse of any Applicable Permit; 

 

	 	(b)	delays in obtaining labor or delivery of goods or services from any Subcontractor unless such is caused by a Force Majeure event affecting such Subcontractor; 

 

	 	(c)	physical conditions at or under the Project Areas of any kind or character (except in accordance with Sections 5.10 and 5.11); or 

  

	 	(d)	any other reason attributable to the Contractor that has caused a delay to the progress of the Works. 

  

	 	9.3	Extension of the Time for Completion – 

 The Contractor shall be entitled to an
extension of the Time for Completion by the time the Contractor is delayed by any one or more of the events identified in Section 9.3.1 above, provided (i) notice is given as hereinafter provided, (ii) the delay is on the critical
path as determined by the final Project Schedule submitted under Section 5.12 in the form approved by Owner (but taking into account all Variations that have been executed) and is outside the reasonable control of the Contractor or its
Subcontractors; (iii) there is no concurrent delay or interruption according to 9.3.2 above; (iv) the Contractor and its Subcontractors, in view of all the circumstances, have exercised all reasonable efforts to avoid and minimize the
delay; and (v) the Final Taking-Over Date is actually delayed by such events. In the event of a concurrent delay under item (iii) above, the amount of such concurrent delay shall be deducted from the aggregate of the time the Contractor
would otherwise be entitled to receive as an extension under this Section 9.4. 

  
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 If the Contractor intends to apply for an extension of the Time for Completion, the Contractor
must give notice to Owner’s Representative and of such intention as soon as possible and in any event no later than the seventh day after the date in which it acquired or should acquire knowledge of the start of the event giving rise to the
delay, together with any other notice required by this Contract and relevant to such cause. If the Contractor cannot submit all relevant details within such period because the cause of delay continued for a period exceeding twenty-eight
(28) days, the Contractor shall submit interim details at intervals of not more than twenty-eight (28) days (from the first day of its knowledge of such delay) and full and final supporting details of his application within twenty-one
(21) days of the last day of delay. The Contractor is further required to submit to Owner, as part of its request for an extension of the Time for Completion, an acceleration schedule on a “fragnet” basis to demonstrate how such delay
can be overcome. The Contractor shall keep such contemporary records as may be necessary to substantiate any application, either on the Site or at another location acceptable to Owner’s Representative, and such other records as may reasonably
be requested by Owner’s Representative. The Contractor shall permit Owner’s Representative and the Supervisor to inspect all such records and shall provide Owner’s Representative and the Supervisor with copies as required. 

Compliance by the Contractor with the conditions of this Section 9.4 is a condition precedent to the Contractor’s right or
entitlement to any extension of the Time for Completion. 
 Owner’s Representative shall proceed in accordance with Article XV to agree
or determine either prospectively or retrospectively such extension of the Time for Completion as may be due. Owner’s Representative shall notify the Contractor accordingly. When determining each extension of time, Owner’s Representative
shall review his previous determinations and may revise, but shall not decrease, the total extension of time. 
 Any extension of time
granted (above or below) by Owner’s Representative to the Contractor shall, except as expressly provided elsewhere in this Contract, be deemed to be in full and final compensation and satisfaction for and in respect of any actual or probable
loss or injury sustained or sustainable by the Contractor in respect of any matter or thing in connection with which such extension shall have been granted. If Contractor disagrees with the determination of Owner’s Representative, it shall be
entitled to submit such dispute for resolution under Article XXI. 
 9.5 Rate of Progress - If at any time the
Contractor’s actual progress (measured in physical executed volumes) falls behind the Project Schedule referred to in Section 5.12, or it becomes apparent that it will so fall behind schedule that it is likely to be unable to meet the Time
for Completion (as applicable) within fifteen (15) days after the date shown in the Project Schedule (as adjusted under the Contract), the Contractor shall immediately submit to Owner’s Representative and the Supervisor a revised Project
Schedule taking into account the prevailing circumstances. The Contractor 

  
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 shall, at the same time, notify Owner’s Representative and the Supervisor of the steps
being taken to expedite progress, so as to achieve completion for the Works within the Time for Completion. The costs of implementing such steps or of revising the Project Schedule as herein noted, shall be solely for the Contractor’s account.

 If any steps taken by the Contractor in meeting its obligations under this Section 9.5 require Owner to incur additional costs, such
costs shall be recoverable from the Contractor by Owner, and may be deducted by Owner from any monies due, or to become due, to the Contractor. 

If the Contractor falls behind the critical path identified in the Project Schedule so as to delay achieving the Partial Taking-Over Date or
the Final Taking-Over Date by the Scheduled Partial Taking-Over Date or the Scheduled Final Taking-Over Date for the Plant, except to the extent the Contractor is entitled hereunder to an extension of the time therefor, the Contractor shall, upon
written notice by Owner’s Representative and at no additional cost to Owner, develop and submit to Owner a detailed written recovery plan and schedule and work such hours (including night shifts, weekends and holidays) and furnish such
additional labor and equipment as necessary to overcome the effects of such delay. 
  

	 	9.6	Liquidated Damages for Delay and Bonuses - 

 If the Partial Taking-Over Date of the
first Generator Set is not achieved by the Scheduled Partial Taking-Over Date for such Generator Set, the Contractor shall pay Owner liquidated damages in the amount of US$ 130,000.00 for each day of delay until the Partial Taking-Over Date is
achieved. 
 If the Partial Taking-Over Date of the second Generator Set is not achieved by the Scheduled Partial Taking-Over Date for such
Generator Set, the Contractor shall pay Owner liquidated damages in the amount of US$ 100,000 for each day of delay until the Partial Taking-Over Date is achieved. 

If the Partial Taking-Over Date of the last Generator Set is not achieved by the Scheduled Final Taking-Over Date, the Contractor shall pay
Owner liquidated damages in the amount of US$ 160,000.00 for each day of delay until the Partial Taking-Over Date is achieved. 
 If any
Generator Set stop working or reduce their output after their Partial Taking-Over Date and such outage or reduction of output is caused by a Defect or by a Contractor’s request, then the Contractor shall pay Owner liquidated damages in the
amount of US$ 100,000.00 for each day of outage or reduction in output excluding the first day in aggregate in which an outage or reduction in output occurred. 

If the Contractor achieves the Partial Taking-Over Date of the first Generator Set before the one hundredth day prior to the fourth
anniversary of the Commencement Date, Contractor will be entitled to the Early Final Taking Over Bonus for such Generator Set. 
 If the
Contractor achieves the Partial Taking-Over Date of the second Generator Set before the fiftieth day prior to the fourth anniversary of the Commencement Date, Contractor will be entitled to the Early Final Taking Over Bonus for such Generator Set.

  
 51 

 If Contractor achieves the Final Taking Over Date before the fourth anniversary of the
Commencement Date, Contractor will be entitled to the Early Final Taking Over Bonus for the Plant. 
 The liquidated damages provided in
this Section 9.6 shall be in lieu of all liability of Contractor to Owner for any and all extra costs, losses or expenses of whatsoever nature incurred or to be incurred by Owner as a result of any delay in achieving the Partial Taking-Over
Date or the Final Taking-Over Date, and shall be the sole and exclusive remedy to the Owner in case of delay. The forgoing liquidated damages shall be paid within twenty (20) days of written demand therefor and if not so paid, may be collected
by Owner from any amount then owed to the Contractor. 
 The above liquidated damages are a reasonable forecast of the actual costs, losses
and expenses incurred by Owner as a result of delays in achieving the Partial Taking-Over Date and the Final Taking-Over Date by the Time for Completion and therefore, do not constitute a penalty. The parties, having bargained in good faith for such
specific damages, are estopped from contesting the validity or enforceability of such damages. 
 The payment or deduction of such
liquidated damages shall not relieve the Contractor from its obligation to complete the Works and achieve the Final Taking-Over Levels, remedy any Defects or Deficiencies or from any other of its outstanding duties, obligations or responsibilities
under this Contract. 
 The Contractor shall issue an invoice evidencing the applicable bonuses within thirty (30) days after the
issuance of the Final Taking-Over Certificate. Payment of such invoice shall occur in accordance with Section 14.3. 
  

	 	9.7	Suspension of Works - Owner may at any time instruct the Contractor in writing to slow or suspend progress of part or all of the Works. During suspension or slowing, the Contractor shall continue to guard,
protect, store and secure such part of the Works against any deterioration, loss or damage at Owner’s expense. 

Promptly upon providing the Contractor with written instructions regarding the slowing or suspension, Owner shall meet with the Contractor to
review the progress of the completed Works and the status of Works that are in progress. In addition, Owner and the Contractor shall meet to review the advantages and disadvantages of having the Contractor complete during the suspension period
certain Works that are in progress. The Contractor shall follow Owner’s written instructions with respect to performing Works during any slowing or suspension period and the Contractor shall be paid for such Works in accordance with the
applicable Monthly Payment Certificate as reasonably adjusted to take into account such slowing or the suspension while preserving any profit the Contractor would have been expected to earn on such reductions. 

  
 52 

	 	9.8	Consequences of Suspension - If the Contractor suffers delay and/or incurs Costs in following Owner’s instructions under Section 9.7 or in resumption of the Works, the Contractor shall give prompt
written notice thereof to the Owner’s Representatives and the Supervisor, with a copy to Owner. After receipt of such notice Owner shall proceed to agree or determine: 

 

	 	(a)	any extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost plus Profit thereon which shall be added to the Lump Sum Price and shall notify the Contractor accordingly. 

The Contractor shall not be entitled to any extension of time or payment of Cost if the suspension is due to a cause attributable to the
Contractor, or required as a result of a Contractor’s risk under this Contract. 
 The Contractor shall not be entitled to extension of
time for, or payment of the Costs incurred in, making good any deterioration, defect or loss caused by faulty design, workmanship or Materials, or by the Contractor’s failure to take the measures specified in Section 9.7. 

 

	 	9.9	Prolonged Suspension - If suspension under Section 9.7 has continued for more than either (i) eighty-four (84) consecutive days, or (ii) one hundred twenty-six (126) non-consecutive days
and the suspension is not due to a cause attributable to the Contractor, the Contractor may by notice to Owner require permission to proceed within fourteen (14) days. If permission is not granted within that time, the Contractor may, at its
sole discretion, either (i) treat the suspension as a Variation under Article XV regarding the affected part of the Works or (ii) terminate this Contract pursuant to Section 17.2. 

 

	 	9.10	Resumption of Works - After receipt of permission or of a written instruction to proceed, the Contractor shall, after notice to Owner and the Supervisor, and together with Owner and the Supervisor, examine the
Works and Materials affected by the suspension. The Contractor shall at Owner’s cost make good any deterioration or defect in or loss of the Works or Materials, which has occurred during the suspension. 

If Owner has taken over risk and responsibility for the suspended Works, risk and responsibility shall revert to the Contractor fourteen
(14) days after receipt of the permission or instruction to resume Works. 
  

	 	9.11	Burden of Proof - In case of a dispute regarding the application of the provisions of this Article IX, including any dispute as to whether the Contractor is entitled to an extension of the Time for Completion,
the Contractor shall have the burden of proof as to its entitlement to relief under this Article IX. 

  
 53 

	X.	PERFORMANCE TESTS 

  

	 	10.1	Contractor’s Obligations - The Contractor shall carry out the Performance Tests in accordance with Exhibits A and C, this Section 10.1, and Section 8.4, after providing the documents in accordance
with Sections 6.6 and 6.7. The Contractor shall propose to the Owner’s Representatives a date in which the Performance Tests would be carried out no later than ninety (90) days in advance of the proposed date. Such proposed date can be
updated by the Contractor forty five (45) days thereafter. The Owner’s Representatives shall promptly after receipt of such proposal respond to the Contractor by scheduling a date for the performance of the Performance Tests which shall
not be later than fourteen (14) days after the date proposed by the Contractor as provided herein. 

 Specific
Performance Tests are identified in the Technical Specifications (Exhibit A) and in the Performance Test Protocol (Exhibit C), and are generally categorized as: (i) Efficiency Test, (ii) Net Electric Output Test; and (iii) Functional
Test. 
 The Raw Data that is obtained by the Contractor as a result of the Performance Tests shall be delivered to Owner promptly after the
Performance Tests have been completed. 
 As soon as the Works have passed the Performance Tests, the Contractor shall provide the
Representatives, the Supervisor and Owner with a certified report of the results of all such Tests. 
 If during any Performance Tests it is
discovered that the Works cannot be operated in a safe manner in accordance with Prudent Utility Practices and Prudent Electrical Practice, the Performance Test shall be stopped and the Deficient system or component promptly replaced or repaired by
the Contractor at its expense, whereupon the Performance Test shall start over from hour one. 
  

	 	10.2	Preparation and Timing for Performance Tests - Performance Tests shall be performed by the Contractor utilizing Owner’s normal complement of operating personnel and the Contractor’s employees under the
Contractor’s direction and supervision. 

 The Performance Tests shall be carried out at the times authorized by COES.
Owner shall request the authorization of COES for the performance of the Performance Tests with sufficient advance written notice to COES. Any limitations or scheduled restrictions imposed by COES shall not constitute Force Majeure or serve to
postpone the Scheduled Partial Taking-Over Date or the Scheduled Final Taking-Over Date unless such delays is more than seven (7) days on the last Generator Set that is within the critical path, in the case of either the applicable Scheduled
Partial Taking-Over Date or the Scheduled Final Taking-Over Date and are not as result of Contractor’s failure to comply with a request or rule of COES. 
  

	 	10.3	 Punch List - The Partial Taking-Over Certificate or the Final Taking-Over Certificate will not be issued
until such time as the Punch List has been prepared and agreed upon as set out below. Contractor and Owner’s Representative shall jointly prepare the Punch List prior to the anticipated Partial Taking-Over Date or Final Taking-Over Date. The
Contractor shall provide it to Owner and Owner’s Representative together with an estimate of the cost and time required to complete or correct each Punch List item. Owner’s Representative shall

  
 54 

	 	
notify the Contractor whether it accepts such Punch List and estimate or shall otherwise state its reasons for disagreement therewith in reasonable detail; provided, however, that acceptance or
rejection thereof shall not relieve the Contractor of its liability to complete or correct the Punch List items. Owner may withhold from amounts otherwise payable hereunder an amount equal to one hundred fifty percent (150%) of the estimated
value of each Punch List item until the Contractor has completed that item. Alternatively the Contractor may provide a bank guarantee in the form of Schedule 8 equal to the above referred value. If the Contractor fails to complete all Punch List
items once it has been given ninety (90) days of access to the Works after the Partial Taking-Over Date or the Final Taking-Over Date, Owner may complete, or cause to be completed, any item which the Contractor has so failed to complete at the
Contractor’s expense including third party costs and costs of Owner for such item. 

  

	 	10.4	Conduct of Performance Tests - Guidelines for the conduct of Precommissioning and Start-Up are set forth in Exhibit A. The Performance Test Protocols shall be in accordance with Exhibit C. No later than ninety
(90) days prior to the commencement of the Performance Tests, the Contractor will submit to the Representatives and the Supervisor its proposed detailed testing procedures, which shall complement and be in accordance with Exhibit C (the
“Test Procedures”) for the conduct of Performance Tests. The Owner’s Representatives and the Supervisor will review and respond to the Contractor’s proposed Test Procedures within thirty (30) days of the submission, and the
Parties, and the Supervisor shall meet to finalize the Test Procedures within five (5) days of the Owner’s Representatives’ and the Supervisor’s response. The Contractor will submit the final version of the Test Procedures to the
Representatives and the Supervisor not more than fifteen (15) days prior to the commencement of the Performance Tests. 

The Net Electric Output Test shall define the capacity in KW as a single value measured in KW and shall not allow for any tolerance.
Allowances are only those set forth in the Technical Specifications. 
 The Contractor shall use plant instrumentation and non-plant
instrumentation as specified and calibrated in accordance with the approved protocol, the Technical Specifications, and applicable codes and standards and no tolerances will be permitted. Employees of Owner will witness all Performance Tests. The
Contractor shall be solely responsible for directing such employees in implementing such tests. 
 Upon completion of any Performance Test,
regardless of the test results or when the test was performed, the Contractor shall prepare and deliver to Owner’s Representative and the Supervisor for information a Performance Tests report to document the results of the test. Each Party
shall have the right to perform data collection for each Performance Test. The Parties shall agree on the data to be used for analysis, and the analysis will be performed by the Contractor. Owner may direct that the Performance Test be stopped and
restarted after appropriate corrective action has been taken by the Contractor at the Contractor’s sole cost and expense, if (a) Owner observes any Defects or Deficiencies in any Plant Equipment or the Plant or their performance during any
Performance Test, (b) Owner has notified the Contractor in writing promptly thereafter, and (c) in Owner’s reasonable judgment such Defect or Deficiency calls into question the validity of the Performance Test or poses any risk of damage
or injury to property or persons. 

  
 55 

 Once Performance Tests are completed and Partial Taking-Over Levels or Final Taking-Over Levels
have been accomplished by Contractor, a Performance Test Certificate shall be requested by Contractor to Owner and Owner shall issue the requested Performance Test Certificate substantially in the form set forth in Schedule 9. 

The Performance Tests shall be deemed to be successfully completed when the Contractor has successfully completed all of the criteria
specified in Exhibit C at levels meeting or exceeding the Partial Taking-Over Levels or the Final Taking-Over Levels. If the Partial Taking-Over Levels or the Final Taking-Over Levels are not met, the Contractor is obligated to conduct additional
work as necessary in an attempt to meet such levels. 
 Once the Contractor has successfully completed the Performance Tests, the Contractor
may request that Owner issue to the Contractor a Final Taking-Over Certificate, substantially in the form set forth in Schedule 10 and in Schedule 11 accordingly. 

The Contractor is entitled to the issuance of the Partial Taking-Over Certificate by the Owner after both Parties verify that the relevant
Generation Set has accomplished the Partial Taking-Over Levels measured by the measuring instrument of the Generator Set pursuant to Section 11.1. For this purpose, an additional Performance Test is not required. The Contractor is entitled to
the issuance of the FinalTaking-Over Certificate by the Owner after both Parties verify that the Generation Sets have accomplished the FinalTaking-Over Levels measured by the measuring instruments of the Generator Sets pursuant to Section 11.1.
For this purpose, an additional Performance Test is not required. 
 The Performance Test described in Exhibit A shall be completed by the
Contractor prior to the date of issuance of the Final Taking-Over Certificate and the Performance Test described in Exhibit C shall be completed by the Contractor no later than sixty days after the date of issuance of the Final Taking-Over
Certificate. The provisions contained in the three last paragraphs of this Section 10.4 prevail over any other provision of this Contract. 
  

	 	10.5	Failure to Achieve Performance Guarantee Level - In the event the Contractor has failed, as of the Partial Taking-Over Date or the Final Taking-Over Date, to successfully complete Performance Tests at levels
meeting or exceeding the Partial Taking-Over Levels or Performance Guarantee Level(s), respectively, the Contractor shall (unless commercially unreasonable to do so) conduct additional testing and work in an attempt to meet such Partial Taking-Over
Levels or Performance Guarantee Level(s), respectively. The Contractor shall have one hundred and twenty (120) days from the Partial Taking-Over Date or the Final Taking-Over Date, respectively, to achieve the Partial Taking-Over Levels or
Performance Guarantee Level(s), respectively (the “Cure Period”). 

  
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Performance Tests carried out within such period, if any, cannot be corrected by degradation curves. The Contractor and Owner shall use their best efforts to minimize the economic impact on Owner
during periods of repairs or Performance Tests carried out during such period, if any. Failure of the Contractor to successfully complete Performance Tests at levels meeting or exceeding the Partial Taking-Over Levels or Performance Guarantee
Level(s), respectively, within the above-referenced period (as extended by Section 5.1, if applicable) shall require the payment on demand to Owner by the Contractor of the Buy-Down Amount (but only for Guaranteed Net Elective Output in the
case of the Partial Taking-Over Date). If the Buy-Down Amount is not paid on demand, Owner may withhold such sums and set off such sums against any amount then owed to the Contractor, or resort to any other remedy available to it in law or equity
for the recovery of the Buy-Down Amount. 

  

	 	10.6	Interference with Performance Tests - If the Contractor is prevented from carrying out the Performance Tests by Owner’s failure to perform its obligations hereunder or due to Owner’s breach of this
Contract the Contractor may request an extension of the Time for Completion, pursuant to Section 9.4. If the Contractor incurs additional Cost as a result of this delay in carrying out the Performance Tests, such Cost plus Profit thereon shall
be determined mutually by Owner’s Representative and Contractor’s Representative pursuant to the provisions of Article XV and such Cost and Profit shall be added to the Lump Sum Price. 

 

	 	10.7	Issuance of Certificates - Owner agrees to promptly issue any certificate required under this Article X if the criteria for the issuance of such a certificate have been satisfied to Owner’s satisfaction and
to certify in such certificate, the date in which the event giving rise to the certification was completed. 

  

	 	10.8	Modifications to Achieve Passage of Performance Tests - Owner and the Contractor shall confer and mutually agree upon any corrective measures or modifications to the Plant to be taken by the Contractor to achieve
passage of the Performance Tests. No automatic controls or safety protections may be temporarily avoided to achieve passage of the Performance Tests. 

  

	 	10.9	Early Operation - If the Partial Taking-Over Date or the Final Taking-Over Date do not occur by the Scheduled Partial Taking-Over Date or the Scheduled Final Taking-Over Date, respectively, Owner may, at its sole
option, place any Generator Set or the Plant as a whole into service at any time provided that it is completed such that it can be operated safely; and further provided, that, if requested by Contractor, Owner will provide Contractor the opportunity
to perform Performance Tests and reparations of any Defects, if any, within a mutual agreed schedule. Such placement into service shall not be deemed to be the Partial Taking-Over Date nor the Final Taking-Over Date for all purposes under this
Contract and the associated Monthly Payment Certificate due upon the Partial Taking-Over Date or the Final Taking-Over Date shall be paid to the Contractor, unless there are any sums due by Contractor to Owner, in which case Owner will have the
right to withhold such sums from any amount then owed to the Contractor, until the Contractor complies with its obligations under this Contract. 

  
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 The Contractor shall cooperate with Owner so that it may operate the relevant Generator Set or
the Plant. The Contractor shall not be relieved from any of its obligations hereunder (including testing for achieving the Actual Project Acceptance Date) so long as Owner follows proper safety procedures and conforms to the Contractor’s
directions in the receipt, handling, storage, protection, installation, maintenance, inspection and operation of the relevant Generator Set or the Plant. Once Owner is operating any Generator Set or the Plant, all risks, care, custody and control
thereof shall pass to Owner and Owner shall thereby bear the associated risk of loss. 
 If, in any case above, the Contractor shall fail or
refuse to give Owner operating instructions as aforesaid, Owner shall follow accepted operating practices with respect to its operation of the relevant Generator Set or the Plant. 

Owner will act reasonably in allowing the Contractor continued access to the Plant to fulfill its obligations to achieve the Performance
Guarantee Levels and the Actual Project Acceptance Date. If Contractor is not permitted to complete Performance Tests within six (6) months after the Partial Taking-Over Date nor the Final Taking-Over Date, then the Actual Project Acceptance
Date shall be deemed to have occurred for all purposes under this Contract. 
  

	 	10.10	Increased Capacity Bonuses and Spill Water Generator Bonus - If the final installed capacity of the Plant, measured on the Final Taking-Over Date or during the Cure Period at the bushings of the high voltage
step-up transformer, is above 504 MW, the Contractor shall be entitled to the Increased Installed Capacity Bonus if the final installed capacity is measured using a water flow of up to 210.5 m3/sec and to the Additional Installed Capacity Bonus if
the final installed capacity is measured using a water flow higher than 210.5 m3/sec. 

 If the Tested Spill Water MW Capacity
measured on the Final Taking-Over Date or during the Cure Period at the bushings of the high voltage step-up transformer, is above the Minimum Spill Water Demonstrated Capacity, the Contractor shall be entitled to the Spill Water Generator Bonus.

  

	XI.	PARTIAL TAKING-OVER, FINAL TAKING-OVER AND ACTUAL PROJECT ACCEPTANCE 

  

	 	11.1	Partial Taking-Over Certificate and Final Taking-Over Certificate –Each Generator Set and the Plant shall be taken over by Owner when it has been completed in accordance with this Contract and has passed the
Performance Tests and Partial Taking-Over Certificate or a Final Taking-Over Certificate for the Works has been issued or deemed to have been issued in accordance herewith and pursuant to the last paragraph of Section 10.4 and it can be placed
into operation for dispatch by COES. 

  
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 The Contractor may apply by notice to Owner’s Representative for a Partial Taking-Over
Certificate or a Final Taking-Over Certificate not earlier than fourteen (14) days before the Works will, in the Contractor’s opinion, be complete and ready for Partial Taking-Over or Final Taking-Over. Owner shall, within twenty-eight
(28) days after the receipt of the Contractor’s application: 
  

	 	(a)	issue the Partial Taking-Over Certificate or the Final Taking-Over Certificate to the Contractor, stating the date on which the Works were completed in accordance with this Contract (except for work described in the
Punch List) including passing the Performance Tests; or 

  

	 	(b)	reject the application, giving its reasons and specifying the work required to be done by the Contractor to enable the Partial Taking-Over Certificate or the Final Taking-Over Certificate to be issued and the Contractor
shall then complete such work before issuing a further notice under this Section 11.1. 

 If Owner fails either to issue
the Partial Taking-Over Certificate or the Final Taking-Over Certificate or to reject the Contractor’s application on or before the twenty-eighth day after the receipt of the Contractor’s application for the issuance of such certificate,
and if the Works are complete in accordance with this Contract (except for work described in the Punch List), free of Defects or Deficiencies, the Partial Taking-Over Certificate or the Final Taking-Over Certificate shall be deemed to have been
issued on the date of delivery of the Contractor’s application. 
  

	 	11.2	Operation by Owner after Partial Taking-Over – After the Partial Taking-Over of any Generator Set, Owner will be entitled to place the relevant Generator Set into service. The Contractor shall
cooperate with Owner for a period not exceeding the Final Taking-Over Date so that it may operate the relevant Generator Set. 

Owner will provide Contractor the opportunity to perform any works, tests and reparations necessary to complete the Plant, within a mutual
agreed schedule. 
 The Contractor shall not be relieved from any of its obligations hereunder so long as Owner follows proper safety
procedures and conforms to the Contractor’s directions in the receipt, handling, storage, protection, installation, maintenance, inspection and operation of the relevant Generator Set. If, in any case above, the Contractor shall fail or refuse
to give Owner operating instructions as aforesaid, Owner shall follow accepted operating practices with respect to its operation of the relevant Generator Set. 
  

	 	11.3	Buy-Down Amount - The Parties agree that the following formula will be used to calculate liquidated damages due to Owner by the Contractor as a result of the Contractor’s failure to achieve the Performance
Guarantee Levels applicable to any Generator Set, the Plant as a whole or the Minimum Spill Water Demonstrated Capacity. The sum is referred to singularly and in the aggregate as the “Buy-Down Amount”. The Contractor must attempt to
achieve the Performance Guarantee Levels and the Minimum Spill Water Demonstrated Capacity until the end of the Cure Period after the Partial Taking-Over Date of a Generator Set and the Final Taking-Over Date. 

  
 59 

 In the event the Contractor has failed to demonstrate the Performance Guarantee Levels at the
end of the above-referenced period and complying with all Applicable Laws and Applicable Permits, the Contractor shall pay Owner the Buy-Down Amount in accordance with Section 10.5, which amount shall be equal to the Guaranteed Net Electric
Output minus the Net Electric Output of the Plant multiplied by US$ 1,800.00 per kilowatt. 
 In the event the Contractor has failed to
demonstrate the Minimum Spill Water Demonstrated Capacity at the end of the above-referenced period, the Contractor shall pay Owner the Spill Water Generator Buy-Down Amount, which amount shall be equal to the Minimum Spill Water Demonstrated
Capacity minus the Tested Spill Water MW Capacity multiplied by US$ 2,400.00 per kilowatt. 
 The Parties agree that the Buy-Down
Amount specified in this Section 11.3 constitutes liquidated damages to compensate Owner for the losses it is likely to suffer or damages it is likely to incur as a result of the Contractor’s failure to achieve the Performance Guarantee
Levels, and such Buy-Down Amount shall be in lieu of all liability for any and all extra costs, losses, or expenses incurred by Owner as a result of the Contractor’s failure to achieve the Performance Guarantee Levels once the Partial
Taking-Over Date or the Final Taking-Over Date has been achieved and constitutes the sole and exclusive remedy to the Owner in case of such failure. These liquidated damages are a reasonable forecast of the actual costs, losses and expenses Owner
will incur as a result of such Contractor’s failure and do not constitute a penalty. The Parties, having bargained in good faith for such specific damages and are therefore estopped from contesting the validity or enforceability of such
damages. 
 The payment or deduction of such liquidated damages shall not relieve the Contractor from its obligation to complete the Works
achieve the Final Taking-Over Levels, remedy any Defects or Deficiencies or from any other of its outstanding duties, obligations or responsibilities under this Contract. 
  

	 	11.4	Actual Project Acceptance - Actual Project Acceptance shall be deemed to occur when the Contractor has: (a) successfully met the criteria specified in Exhibits A and B at level meeting or exceeding the
Performance Guarantee Levels or, if the Contractor has been unable to meet or exceed the Performance Guarantee Levels, paid the Buy-Down Amount; (b) fully completed all the Works, including the Punch List, free of Defects or Deficiencies and no
Variations concerning the Works remain unsettled; (c) paid any liquidated damages for delay, as well as any other obligations then owed by the Contractor to Owner, which date shall be the date acknowledged and stated by Owner’s
Representative in the Actual Project Acceptance Certificate; (d) delivered to Owner all final drawings, as-built drawings and manuals required under this Contract; and (e) the Warranty Letter of Credit is in full force and effect.

 Upon the Contractor achieving Actual Project Acceptance, Owner shall issue a Actual Project Acceptance Certificate in the
form set forth in Schedule 12. 
  

	 	11.5	Issuance of Certificates - With respect to Owner’s obligations to issue certificates pursuant to this Article XI, Owner agrees to promptly issue the certificate indicating the date in which the event giving
rise to the certification was completed, if the criteria for the issuance of such a certificate have been satisfied. 

  
 60 

	XII.	CONTRACTOR’S REPRESENTATIONS AND WARRANTIES 

  

	 	12.1	Representations and Warranties 

 Each of Astaldi and GyM represents and warrants to Owner
that, as of the date of this Contract and the Notice to Commence date: 
  

	 	(a)	the Consortium Agreement is valid, binding and has been legally executed in accordance with the Applicable Laws; 

  

	 	(b)	is a duly organized and legally existing corporation under the laws of the jurisdiction of incorporation; 

  

	 	(c)	has authority to and has obtained all corporate approvals necessary for the execution of this Contract; 

  

	 	(d)	this Contract constitutes a binding obligation of the Contractor, and both Astaldi and GyM are jointly and severally responsible before the Owner for all obligations assumed by the Contractor under this Contract;

  

	 	(e)	the execution of this Contract by the Contractor will not cause the Contractor to breach any legal or contractual obligation assumed by the Contractor: 

 

	 	(f)	has thoroughly examined this Contract and have become familiar with its terms; 

  

	 	(g)	has full experience and proper qualifications to perform the Works and to construct the Plant; 

  

	 	(h)	other than with respect to subsurface conditions and antiquities, they have ascertained the nature and location of the Works, the character and accessibility of the Project Areas and its surrounding areas, the quality
and quantity of water to execute the Works and the on-Site access thereto without prejudice to Section 5.9, the availability of lay-down areas for Contractor’s Equipment and tools, the existence of visually apparent obstacles to
construction (other than underground obstacles, if any, or other conditions referred to in this Contract), the availability of facilities and utilities, the location and character of existing or adjacent work or structures, the conditions as of the
Base Date of roads and waterways in the vicinity of the Project Areas, including the conditions affecting shipping and transportation (such as the limitations of bridges and tunnels), access, disposal, handling and storage of Materials, the surface
conditions and other general and local conditions, including labor, safety, weather, environmental conditions (other than Dangerous Substances which are not known to the Contractor), geological conditions, if any, noted in and attached to this
Contract; 

  
 61 

	 	(i)	each company, and its Subcontractors are, fully qualified and capable of performing the Works to complete the Plant in accordance with the terms of this Contract and no proceeding has been commenced or has been
threatened to be commenced against or by the Contractor that could materially impair the Contractor’s ability to perform the Works to complete the Plant; 

  

	 	(j)	all services provided and procedures followed by the Contractor hereunder to engineer, design, procure, construct, commission, start-up and test the Works shall be done in a workmanlike manner and in accordance with the
requirements of this Contract; 

  

	 	(k)	it is familiar with all necessary facilities for delivering, handling and storing all Contractor’s Equipment and other parts of the Works; 

 

	 	(l)	the Contractor will design the Plant based on a useful life objective of at least fifty (50) years; 

  

	 	(m)	has satisfied as to the means of communication with and access to and through the Concession Area and accommodations it may require to use in the Project Areas after the Contractor shall have been given unrestricted
access thereto and the precautions and times and methods of working necessary to prevent any Person under the direction of the Contractor from creating any nuisance or interference, whether public or private, which might give rise to any legal
action; 

  

	 	(n)	the Applicable Laws of Peru in effect on the Base Date and all Applicable Laws in existence on the Effective Date that, by their terms, are effective and applicable to the Contractor or the Works to be performed by
Contractor as of the Base Date, have been taken into account in its calculation of the Lump Sum Price and shall be reflected in the design of the Plant and the Works. 

 

	 	(o)	has received from Owner and has thoroughly examined the data available provided to Contractor by the Owner on topographical, geological, hydrological and sub-surface conditions at, under and around the Project Areas,
and studies on environmental impact which have been obtained by or on behalf of Owner from investigations for the Works, which information is described in Exhibits A and D; and 

 

	 	(p)	is financially capable of performing its obligations contained in this Contract; 

  
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	XIII.	DEFECTS LIABILITY 

  

	 	13.1	Completion of Outstanding Works and Remedying Defects - The Contractor warrants: 

  

	 	(a)	the Works shall be free from Defects and Deficiencies in accordance with the Contract; and 

  

	 	(b)	that the Works shall be new and unused when installed; the services provided will be performed in accordance with the standards and requirements specified in this Contract; the Works shall be designed, engineered and
constructed to meet the requirements of this Contract and to produce a fully functional facility that is capable of demonstrating the Performance Guarantee Levels (taking into account the Buy Down Amounts paid), and the Plant (including design and
engineering) will conform to the Technical Specifications. 

 In order that the Construction Documents and the Works comply
with the warranties and conditions required by this Contract, (fair wear and tear excepted) by the expiry date of the Warranty Period, the Contractor shall: 

(i) complete any Works which is outstanding on the date stated in a Partial Taking-Over Certificate or a Final Taking-Over Certificate, as
applicable, as soon as practicable after such date; and 
 (ii) execute all Works of amendment, reconstruction, and remedying Defects or
Deficiencies, promptly or as may otherwise be instructed by Owner or Owner’s Representative. 
 If any Defect or Deficiency appears,
Owner or Owner’s Representative shall promptly notify the Contractor in writing within the applicable Warranty Period. 
  

	 	13.2	Cost of Remedying Defects - All work referred to in Section 13.1 shall be executed by the Contractor at its own cost. All costs incidental to the Contractor’s performance of its obligations, including
the removal, replacement and reinstallation of Materials which Materials were part of the Works necessary to gain access to Defects or Deficiencies and retesting of repaired or replaced portions of the Works (if appropriate in accordance with
industry standards) shall be borne by the Contractor. Any duties or taxes assessable for the importation of items required to meet the Contractor’s obligations herein shall also be borne by the Contractor. 

 

	 	13.3	Notice to Correct - If the Contractor fails to carry out any of its obligations, including to remedy any Defect or Deficiency within the times permitted under this Contract, or if no specific time is provided, a
reasonable time, or if the Contractor is not executing the Works in accordance with this Contract, Owner may give notice to the Contractor requiring it to make good such failure and remedy the same provided that no individual claim may be inferior
to US$ 50,000 and provided further that after the second anniversary of the Final Taking-Over Date the Owner may only require the repair of Defects or Deficiencies of civil Works that in the aggregate cost more than US$ 2,000,000 if such Defects or
Deficiencies can be attributed to the same cause or more than US$ 4,000,000 if such Defects or Deficiencies can not be attributed to the same cause. 

  
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The construction of Access Roads and Accessways are not subject to the provisions of this Section 13.3. 

In the event the Contractor neglects to make good such failure and remedy the same within the time agreed upon by Owner and the Contractor or,
if no such time is agreed upon, within thirty (30) days from the Contractor’s receipt of notice, Owner may, without prejudice to other remedies Owner may have, undertake such work at the Contractor’s cost but the Contractor shall not
have responsibility for this work and deduct the cost thereof, from any payments then or thereafter due to the Contractor. If payments then or thereafter due to the Contractor are not sufficient to cover such amounts, the Contractor shall pay the
difference to Owner on demand. 
  

	 	13.4	Extension of Warranty Period - The applicable Warranty Period for the Works or any portion of them repaired or replaced by the Contractor shall be extended for a term of one (1) year from the date any such
repair or replacement is completed. Without derogating from the foregoing, the Warranty Period shall be extended during any period in which the Plant is unavailable for service or de-rated by reason of any Defect or Deficiency. In case of
unavailability of the Plant, the extension shall be on a day-by-day basis. In the case of de-rated, the extension shall be equal to the number of de-rated days multiplied by the de-rated factor. 

However, the total Warranty Period shall not be extended for more than one (1) year from the date of expiry of the original applicable
Warranty Period. 
  

	 	13.5	Removal of Defective Works - If the Defect or Deficiency is such that it cannot be remedied expeditiously on the Concession Area, the Contractor may, with the consent of Owner’s Representative or Owner,
remove from the Project Areas for the purposes of repair any part of the Works which is defective or damaged at the risk of loss and expense of the Contractor. 

  

	 	13.6	Further Tests - If the remedying of any Defect or Deficiency or damage is such that it may affect the performance of the Works, Owner may require that the related portion of Performance Tests be repeated to the
extent necessary to demonstrate that the Defect or Deficiency has been remediated. The requirement shall be made by written notice within twenty-eight (28) days after the Defect or Deficiency or damage is remedied. Such Performance Tests shall
be carried out pursuant to Article X utilizing plant instrumentation and at the cost of the Contractor. 

  

	 	13.7	Contractor to Search - The Contractor shall, if directed by Owner’s Representative, search for the root cause of any Defect or Deficiency. If a Defect or Deficiency is present, the Contractor shall be liable
for all such Costs. 

  
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 Within twenty four (24) hours from receipt of Owner’s request or as soon as reasonably
practicable, the Contractor shall deliver to the Project Areas qualified personnel and shall immediately proceed to identify and analyze the root cause of the Defect or Deficiency found. The Defect or Deficiency will not be considered remedied and
the Contractor will not be released from its obligations and responsibilities under this Contract until a detailed root cause analysis is submitted to Owner providing that the Defect or Deficiency found has been or will be adequately addressed and
corrected. 
  

	 	13.8	Final Acceptance Certificate - The obligations of Contractor for the Works shall not be considered to be completed until the Final Acceptance Certificate has been signed by Owner’s Representative and
delivered to the Contractor, stating the date on which the Contractor completed its obligations under this Contract. 

 The
Final Acceptance Certificate shall be issued and delivered by Owner’s Representative substantially in the form set forth in Schedule 13 no later than the twenty-eighth day after the expiry of the Warranty Period, or as soon after such date as
the Contractor has provided all the Construction Documents and completed and tested all the Works, including remedying any Defects or Deficiencies, whichever is earlier. 

If the Owner fails to issue the Final Acceptance Certificate accordingly, the Final Acceptance Certificate shall be deemed to have been issued
on the date 28 days after the date on which it should have been issued, as required by this Section, unless a Dispute regarding a Defect or Deficiency remains outstanding by such date. 

 

	 	13.9	Unfulfilled Obligations - The Final Acceptance Certificate issuance shall not release the Contractor or Owner from any unfulfilled obligation under this Contract. 

 

	XIV.	CONTRACT PRICE AND PAYMENT 

  

	 	14.1	The Lump Sum Price 

  

	 	14.1.1	The Lump Sum Price - The Lump Sum Price shall be the full and sole compensation of the Contractor for all the engineering and design services, procurement and transportation services, civil works, construction,
erection and installation services and obligations hereunder, but may be adjusted by additions or deletions expressly provided under this Contract. Except otherwise stated herein: 

 

	 	(a)	the Lump Sum Price shall not be adjusted for changes in costs or any other matters; and 

  

	 	(b)	any quantities which may be set out in any Schedule of this Contract are only estimated quantities and are not to be taken as the actual and correct quantities of the Works to be executed by the Contractor in
fulfillment of his obligations under this Contract. 

  
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 If any part of the Works performed pursuant to a Variation under Article XV hereof is to be paid
according to quantity supplied or Works done, the provisions for measurement and valuation shall be as stated herein. 
  

	 	14.1.2	Monthly Payment Certificate – Together with the monthly Progress Report Contractor shall prepare and submit a Monthly Payment Certificate, specifying the progress of the Works achieved in the previous
calendar month and identifying the applicable amount of the Lump Sum Price to be paid by Owner for such progress. The applicable progress of the Works shall be demonstrated with the corresponding monthly Progress Report. 

The Contractor may submit a Monthly Payment Certificate in four (4) copies to the Owner’ Representative in the form set forth in
Schedule 7. 
 The Monthly Payment Certificate shall also include any other sums, including those arising out of Variations, that the
Contractor certifies are due and owing since the last Monthly Payment Certificate and a certification that all insurance required to be maintained by the Contractor under this Contract is in full force and effect. 

 

	 	14.1.3	Payment - Upon receipt of a Monthly Payment Certificate, the Owner’s Representative will, within ten (10) days, determine whether the applicable Monthly Payment Certificate is in accordance with the
payment required by the Contractor and the Progress Report submitted. Once approved, if such is the case, the Owner’s Representative will countersign the Monthly Payment Certificate and upon receipt thereof by the Contractor, the Contractor may
submit such countersigned Monthly Payment Certificate together with invoices (for the portion of the Lump Sum Price) requesting payment for such Monthly Payment Certificate in the corresponding amount set forth therein, and Owner will pay the
Contractor the entire amount due in respect of such Monthly Payment Certificate within thirty (30) days subject to the next subparagraph below, minus any amounts owed by the Contractor to Owner and minus any amounts that Owner shall withhold
pursuant to the Applicable Law. Owner’s determination of the Monthly Payment Certificate shall be final and conclusive absent manifest error. 

As a condition precedent to payment of such amounts, the Contractor shall deliver to Owner: (a) the certificate mentioned in
Section 5.4 of the Contract in the form of Schedule 22 (Form of Proof of Subcontractor Payment), (b) the certificate mentioned in Section 7.4 of the Contract in the form of Schedule 23 (Form of Labor Obligations’ Certificate),
(c) a copy of any tax return filed by the Contractor related to any taxes assessed or levied in connection to the execution of the Works that are the subject matter of such invoice, and (D) a written release of liens of the contractor
against owner and their property, agents and employees for demands for payment or compensation for equipment, materials or services in connection with the monthly payment certificate. 

  
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In addition, the Contractor shall execute and furnish to Owner supporting documents as will establish title in and to the Works. No payment made hereunder shall be considered an approval or
acceptance of any Works or constitute a waiver of any claim or right that Owner may have at that time or thereafter, including claims and rights relating to warranty and indemnification obligations of the Contractor. 

 

	 	14.1.4	Form and Manner of Payments - All payments owed by Owner to the Contractor hereunder shall be made in Dollars and Peruvian Soles, as applicable, by wire transfer of immediately available funds to the bank account
the Contractor may designate from time to time in writing by notice to Owner given not less than five (5) Business Days prior to the next payment date to which such payment instructions are to apply. 

If the date for any payment called for under this Contract should fall on a day that is not a Business Day at the location designated for
receipt of such payment, then such payment may be made on the next succeeding Business Day in such location with the same effect as if made on the date due. 
  

	 	14.1.5	Delayed Payment - Any sum owed by Owner under Section 14.1.6 that is not paid when due will accrue interest at a rate per annum equal to LIBOR + 2% from the date in which the payment came due to the date in
which the amount is paid in full. 

  

	 	14.1.6	Application for Final Payment Certificate - The Contractor shall be entitled to request payment of its final Monthly Payment Certificate, which shall include all sums due and outstanding to the Contractor for
Works executed in accordance with the Contract, upon having successfully completed the criteria specified in Article XI herein (or whenever such criteria is deemed completed under Section 11.1) at levels meeting or exceeding the Performance
Guarantee Levels or having paid the Buy-Down Amount in accordance with Section 11.3 hereof and so long as no Variation claims remain outstanding. 

The Contractor shall submit to the Owner’s Representative the final Monthly Payment Certificate with supporting documents, showing the
value of all work done in accordance with the Contract and all other sums due and outstanding to the Contractor under the Contract, and Owner shall then make payment in accordance with Section 14.1.3. 

 

	 	14.1.7	 Discharge - When submitting its request for Final Payment in accordance with Section 14.1.6, the
Contractor shall submit a Final Payment Certificate in the form set forth in Schedule 14 which confirms that Owner’s Final Payment shall represent a full and final settlement of all monies due to the Contractor for Works done under this
Contract and shall release all claims of the Contractor and Subcontractors against Owner and its property, agents, and employees for demands for payment or compensation for equipment, materials or services.

  
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This certificate shall state that it becomes effective when the Contractor has received the securities provided under Sections 14.6.1 and 14.6.2 and the outstanding balance and the Final Payment
Certificate in which event the discharge shall be effective on such date. 

  

	 	14.1.8	Cessation of Owner’s Liability - Owner shall not be liable to the Contractor for any matter concerning the cost of the Works after Final Payment has been made. 

 

	 	14.2	Taxes and Duties 

  

	 	14.2.1	Taxes - The Lump Sum Price includes all taxes, duties and other charges imposed by any country or any political subdivision thereof other than Peruvian value-added tax and custom and import duties. Owner shall
not be responsible for any income taxes of any kind which may now or hereafter be applicable to, measured by, or imposed upon the Contractor as a result of the transactions hereunder. Also, the Parties recognize that all monetary amounts referred to
in this Contract do not include Peruvian value-added tax. 

  

	 	14.2.2	Owner’s Right to Withhold: Tax Certificates - With respect to payment for any services provided hereunder by the Contractor, Owner may withhold or deduct from the payment of any amount otherwise payable to
the Contractor under this Contract as Owner may be required to withhold or deduct under the laws of Peru or any other country or political subdivision or taxing authority or agency thereof, and Owner shall promptly furnish the Contractor with
appropriate tax certificates/receipts of all sums so withheld or deducted. 

  

	 	14.2.3	Other Taxes – Owner shall be responsible for the administration and payment of any property taxes in connection with the Project Areas, all corporate income taxes with respect to Owner’s profits and all
taxes related to the employment of Owner’s personnel. 

  

	 	14.2.4	Adjustment of Lump Sum Price - The Lump Sum Price cannot be changed or adjusted except pursuant to a Variation. Contractor shall complete the Works and achieve the Actual Project Acceptance Date irrespective of
the cost of achieving such. 

  

	 	14.3	Customs and Import Duty - 

 Owner is responsible for the payment of any import duties
imposed on or as consequence of the importation of Major Items of Equipment and Materials into Peru and Owner shall reimburse Contractor such concept without affecting the Lump Sum Price and through the invoices issued by Contractor provided that
the imposition of any such import duties, import surcharges do not result from an error attributable to the Contractor in such importation or in the filing of any 

  
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 return or in performing any formality in connection to such importation. Owner shall pay such
invoices within five (5) Business Day after receiving them. The Contractor shall be responsible for handling the clearance customs procedures of all Major Items of Equipment and Materials entering Peru. 

 

	 	14.4	Owner’s Right to Withhold or Set Off Payment - Contractor and Owner shall have the right to set-off from monies and securities otherwise due to the Contractor or Owner any claims or charges that Owner or the
Contractor have against the other Party under this Contract. 

 The obligation of Owner to make any payment to the Contractor
for Works performed shall be subject to the right of Owner to withhold an amount equal to the amount of any outstanding claims or charges as stated above against the Contractor. 

 

	 	14.5	Invoicing Documentation. 

 The Contractor shall address to Owner each notice, request,
invoice, statement or other such document issued by it for the payment of an amount due to it from Owner or both in accordance with this Article XIV and shall at the time of such issuance provide copies thereof to each of Owner, and Owner’s
Representative. 
  

	 	14.6	Security. 

 As security for the Contractor’s obligations under this Contract, the
Contractor shall provide Owner with the Advance Payment Bond, the Performance Bond, the Warranty Letter of Credit and a Parent Guaranty in the form attached as Schedule 15. 

Should any security, collateral or guarantee delivered hereunder have a stated maturity date that falls prior to the expiry of the obligations
covered thereby, respectively, Owner may foreclose on any such security, collateral or guarantee and maintain the amounts received therefrom as for security of the obligations caused by such securities, collateral or guarantees and may apply such
funds to cover any obligation covered thereby as if no such foreclosure had occurred. If any security, collateral or guarantee is foreclosed hereunder, the Contractor shall replace it with a new one executed in the same terms and conditions. Upon
delivery to Owner of the new security, collateral or guarantee, Owner shall promptly return such amounts. Owner shall not pay interest. 
  

	 	14.6.1	 Advance Payment Bond - Contractor shall deliver to Owner four (4) standby letter of credits in
substantially the form of Schedule 3 issued by an Eligible Bank in a stated amount equal to US$ 20,000,000 each, in accordance with the Preliminary Schedule of Payments, and the Contractor shall deliver the first standby letter of credit no later
than five (5) Business Day after the date on which Owner issues the Notice to Commence. 

  
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The amount of this Advance Payment Bond shall be reduced every three (3) months after its issuance in proportion to the percentage of the payments of the Lump Sum Price made by Owner in
accordance with Section 14.1.4, which is to be ultimately certified by Owner. 

 The cost of obtaining and maintaining
the Advance Payment Bond shall be borne by the Contractor. If any bank that has issued an Advance Payment Bond fails to be an Eligible Bank, within ten (10) Business Days of such failure, the Contractor shall cause another Advance Payment Bond
to be posted by an Eligible Bank or Owner may demand payment under such Advance Payment Bond and the Contractor will be deemed to be in default hereunder. 
  

	 	14.6.2	Performance Bond - No later than one (1) Business Day after the delivery of the Notice to Commence, the Contractor shall deliver to Owner an irrevocable standby letter of credit in substantially the form of
Schedule 4 (the “Performance Bond”) issued by an Eligible Bank, in a stated amount equal to fifteen per cent (15%) of the Lump Sum Price, which shall expire no earlier than the fifteenth day after the Final Taking-Over Date. The cost
of obtaining and maintaining the Performance Bond, if any, shall be borne by the Contractor. Owner shall return the Performance Bond to the Contractor within ten (10) Business Days from the Final Taking-Over Date, provided that Owner has
received the Warranty Letter of Credit on or before such date. The Performance Bond may be partially or totally drawn upon by Owner to satisfy any unsatisfied obligation of Contractor which has matured hereunder. 

In the case where Owner draws on the Performance Bond, the Contractor shall, within ten (10) Business Days after Owner’s drawing,
ensure that the Performance Bond is restored to the full value which it had immediately prior to Owner’s drawing. 
 The
Contractor’s failure to restore the Performance Bond to its full value as aforesaid within the aforesaid ten (10) Business Days shall constitute an event of default and a fundamental breach of this Contract which shall entitle Owner to
terminate this Contract. 
  

	 	14.6.3	Warranty Guarantee – No later than the Final Taking-Over Date, the Contractor shall deliver to Owner an irrevocable standby letter of credit in substantially the form of Schedule 5, issued by an Eligible
Bank, in a stated amount equal to five per cent (5%) of the Lump Sum Price plus any unpaid liquidated damages for delay (determined pursuant to Section 9.6) and any unpaid Buy-Down Amount, which expires no earlier than the thirtieth day
after the end of the Warranty Period applicable to all Works which are not civil works. Owner shall return the Warranty Letter of Credit to the Contractor within ten (10) Business Days from the issuance of the Final Acceptance Certificate. The
cost of obtaining and maintaining the Warranty Letter of Credit, if any, shall be borne by the Contractor. 

  
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	 	14.6.4	Parent Guaranty - No later than the Commencement Date, the Owner shall deliver to Contractor a Parent Guaranty in substantially the form of Schedule 16, which expires on the Final Taking-Over Date.

  

	 	14.6.5	Right to Draw - Owner may draw upon either the Performance Bond or the Warranty Letter of Credit or the Advance Payment Bond or the Parent Guaranty should Contractor, after ten (10) days written notice, fail
to comply with any obligation hereunder. 

  

	XV.	VARIATIONS 

  

	 	15.1	Right to Vary - Variations may be initiated by (a) Owner at any time prior to its taking over the portion of the Works in question, by a request for the Contractor to submit a proposal or (b) by the
Contractor at any time prior to the Partial Taking-Over Date or the Final Taking-Over Date in connection with the operation of the provisions of this Contract expressly permitting a Variation. Such a Variation may provide for a change in, addition
to, or deletion from the Works, an adjustment in the pricing, Project Schedule or other terms of this Contract, including but not limited to changes: 

  

	 	(a)	in the Technical Specifications; 

  

	 	(b)	in the method or manner of performance of the Works; 

  

	 	(c)	in the Owner-furnished services; 

  

	 	(d)	directing acceleration or deceleration in the performance of the Works; 

  

	 	(e)	adjusting the Partial Taking-Over Date or the Final Taking-Over Date; 

  

	 	(f)	adjusting the Lump Sum Price; or 

  

	 	(g)	Change in Law that causes a material increase in the costs of performance of any obligation hereunder. 

The Contractor shall not be required to make any alteration or modification of the Works unless and until Owner approves a Variation, unless
the Construction Documents or Works do not conform with the provisions of this Contract, in which case the Contractor shall rectify the Construction Documents or Works and any such rectification shall not constitute a Variation. 

The Contractor shall provide to Owner such information as Owner may reasonably request in connection to any Variation request or proposal made
by Owner or by the Contractor, including but not limited to, identifications of the country of origin of equipment to be incorporated into the Works. Detailing of or refinements to the Construction Documents shall not constitute a Variation. 

Except as otherwise provided in a Variation, no order, instruction, proposal, suggestion, consent, approval, statement, or conduct of Owner,
Owner’s Representative or the Supervisor shall constitute a change to this Contract or entitle the Contractor to an adjustment to the Lump Sum Price. 

  
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	 	15.2	Variation Procedure - If Owner requests a proposal for a Variation or the Contractor requests a Variation to which it is entitled under Section 15.1, the Contractor shall prepare at its expense and submit as
soon as practicable: 

  

	 	(a)	a written description of the proposed design or work to be performed and a program for its execution in the form of Schedule 17; 

  

	 	(b)	the Contractor’s proposal for any necessary modifications when such proposal impacts the critical path schedule to the Project Schedule according to Section 5.12; 

 

	 	(c)	the Contractor’s proposal for adjustment of the Lump Sum Price, Time for Completion or modifications to this Contract, accompanied by detailed pricing and a proposed payment schedule therefor; and

  

	 	(d)	a statement whether and the extent to which, in its opinion, the proposed Variation would, notwithstanding the exercise of all due skill and care, result in defective design or construction or prevent the Contractor
from performing its obligations under this Contract, including Defects liability and the Performance Guarantee Levels. 

 As
soon as practicable after receipt of such proposals, Owner shall review this estimate with the Contractor for the purpose of determining whether to proceed with the Variation and, if so, for the purpose of agreeing on the matters set forth therein,
including a mutually acceptable adjustment to the Lump Sum Price or the Project Schedule, if any, if the proposed change requires a modification of the Technical Specifications. 

Compliance by the Contractor with the provisions of this Section 15.2 is a condition precedent to the Contractor’s entitlement to an
extension of time or adjustment to the Lump Sum Price. 
 Variations whether initiated by Owner or by Contractor, must be mutually and
expressly agreed upon. No order, instruction, proposal, suggestion, consent, approval, statement, or conduct of Owner, Owner’s Representative or the Supervisor shall be construed as an implied Variation. 

In the event the Owner or the Contractor requests a Variation over a task that is on the critical path of the Works, Owner shall determine
whether to proceed with the Variation within forty five (45) days after the receipt of such request. If no answer is given by Owner within such forty five (45) days period, the relevant Variation shall be deemed approved. 

Once a Variation is agreed, then both Owner and the Contractor shall proceed to agree or determine adjustments to the Lump Sum Price, the
amount of the guarantees provided in Section 14.6, Time for Completion and schedule of payment for such adjustment, if applicable. 

  
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 On receipt of an order for a Variation, the Contractor shall forthwith proceed to carry out the
Variation and be bound by this Contract in so doing as if such Variation was stated in this Contract. In case of disagreement between the Parties regarding the adjustment of the Lump Sum Price or an extension of the Time for Completion resulting
from such order, the Contractor shall continue to carry out the works comprised by the order for a Variation. In this case Contractor shall keep records of such Variation and of time expended thereon. Such records shall be open to inspection by
Owner’s Representative and the Supervisor at all reasonable times. 
 Once Owner and the Contractor execute a Variation with respect to
any matter, the Contractor shall not be entitled to make any claim or any claim for a price adjustment, schedule extension or variation or modification of any other item that was included in such Variation, nor will any subsequent Variation be
construed to alter a prior Variation except to the extent expressly set forth in such subsequent Variation. 
 In no event shall the
Contractor be entitled to: 
  

	 	(a)	recover any damages or additional compensation from Owner or Owner’s contractors; or 

  

	 	(b)	any extension of time, or relief for, its performance hereunder; 

 on account of any delay,
obstruction or interference attributable to any Person or cause, unless such delay, obstruction or interference is grounds for and results in a Variation, in which case the Contractor shall only be entitled to such relief as is specified in such
Variation and the Contractor hereby expressly waives any and all rights, on its own behalf as well as on behalf of all the Contractor’s agents, servants, Subcontractors and employees, to any claim against Owner for damages or additional
compensation or extension of time or excuse for performance as a result thereof under any legal or equitable theory including common law principles of, mistake, frustration, or impossibility of performance. 

Any disputes or disagreements between the Contractor and Owner regarding the approval and execution of a Variation shall be resolved according
to the provisions of Article XXI. 
  

	XVI.	SUSPENSION OF WORKS 

  

	 	16.1	Contractor’s Entitlement to Suspend Works - The Contractor may suspend the performance of its duties under the Contract in whole or in part, or reduce the rate of such performance, if Owner fails to
(i) pay any amount owed to the Contractor when due after the fifth Business Day after the date in which Owner received a written demand of payment from the Contractor or (ii) provide to the Contractor reasonable evidence that financial
arrangements have been made in accordance with Section 2.4. The remedy provided in this Section 16.1 is without prejudice to other remedies available to the Contractor under this Contract and by operation of law. 

  
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 Notwithstanding, this Section 16.1 may not be construed as to limit or restrict
Owner’s right to set off under Section 14.4 nor entitle the Contractor to suspend the performance of its obligations under this Contract if Owner refuses to make a payment of any amount due on the basis that such amount has been set off
pursuant to Section 14.4 with an amount owed by the Contractor to Owner. 
 If the Contractor suspends work or reduce the rate of work,
and Owner subsequently pays the amount due plus interest accrued over such amount then the Contractor shall promptly resume normal working progress. 

If the Contractor suffers delay or incur Cost as a result of suspending the performance of its duties under the Contract or reducing the rate
of work in accordance with this Section 16.1, the Contractor shall give written notice to Owner of any such delay or Cost. After receipt of such notice, Owner shall proceed to agree or determine: 

 

	 	(a)	any extension of time to which the Contractor is entitled under Section 9.4; and 

  

	 	(b)	the amount of such Cost plus Profit thereon shall be added to the Lump Sum Price, and shall notify the Contractor accordingly. 

  

	XVII.	TERMINATION 

  

	 	17.1	Termination by Owner - 

  

	 	17.1.1	Events of Termination by Default - If the Contractor: 

  

	 	(a)	fails to comply any obligation under this Contract within a reasonable time, but in no case more than thirty (30) days after notice under Section 13.3 is given by the Owner provided that such thirty
(30) day period shall be extended for an additional period of not more than thirty (30) days so long as according to Owner’s sole discretion, the Contractor is diligently pursuing remediation of any such failure and provided further
that the foregoing sixty (60) day period shall be extended by the time reasonably required to procure and deliver to the Project Areas any defective part or component on commercially reasonable terms taking into account the financial harm that
Owner will suffer; 

  

	 	(b)	abandons or repudiates Works or fails to replace a Performance Bond whose issuer is no longer an Eligible Bank within twenty eight (28) days of such occurrence; 

 

	 	(c)	continues to fail to employ sufficiently diligent measures in its performance of the Works such that completion could reasonably be expected to be achieved within the Time for Completion after the forty fifth day
following the date on which Owner delivered to the Contractor written notice demanding the employment of diligent measures to ensure the completion of the Works by the Time of Completion; 

  
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	 	(d)	becomes bankrupt or insolvent, goes into liquidation, has a receiving or administration order made against it, compounds with his creditors, or carries on business under a receiver, trustee or manager for the benefit of
its creditors, or if any act is done or event occurs which (under any Applicable Laws) has a similar effect to any of these acts or events; 

  

	 	(e)	fails to comply with a notice issued under Section 8.5 within twenty-eight (28) days after having received it; 

  

	 	(f)	assigns this Contract or subcontracts the Works without Owner’s prior written consent; 

  

	 	(g)	fails to achieve the Final Taking-Over Date within one hundred and eighty (180) days after the Scheduled Final Taking-Over Date as such date may be extended from time to time under Section 9.4;

  

	 	(h)	continues to fail to comply with the requirements of any Applicable Laws and Applicable Permits after the thirtieth day following the date on which Owner delivered to the Contractor the written notice demanding that the
Contractor comply with the requirements of any Applicable Laws or Applicable Permits, provided that the Contractor shall have an additional thirty (30) day period thereafter so long as they are diligently pursuing the cure of such failure;

  

	 	(i)	fails to maintain in full effect the Parent Guaranty required of the Contractor pursuant to Section 14.6 hereof; 

  

	 	(j)	any of its Subcontractors at any tier, agents or servants pays or gives or offers to pay or give any inappropriate or illegal consideration or incentive to any officer, agent, employee or consultant of any Government
Authority with the purpose of influencing the decision of any Government Authority in connection with the performance of the Works or this Contract; or 

  

	 	(k)	fails to maintain and keep in effect the insurance as is required hereunder. 

 then Owner may
terminate this Contract by advising the Contractor in writing of its decision fourteen (14) days in advance of the date of termination and the Contractor shall no later than on such date (i) turn over to Owner’s Representative all
Works in process; (ii) transfer title to Owner over any pieces of land acquired by the Contractor for the purposes of the Works for one (1) dollar; (iii) remove all Contractor’s Equipment from the Project Areas (unless Owner
requires that the Contractor refrain from such removal); (iv) assign to Owner, in the manner, at the times, and to the extent directed in writing by Owner’s Representative, all of the rights and duties, title and interest of the Contractor
under any Subcontract or purchase order relating to the Works that are specifically identified in such directive for one (1) dollar (v) indemnify Owner for any direct damages suffered by Owner as a result of the termination of this
Contract; and (vi) deliver all Construction Documents, and other design documents made by or for him, to Owner’s Representative. 

  
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 Upon completion of all of the foregoing obligations, the Contractor shall be released from any
of its obligations or liabilities under this Contract, except for material failure of the Works performed by the Contractor until the termination of this Contract becomes effective, discovered within two (2) years thereafter. Owner may upon
such termination complete the Works itself or by any other contractor. Owner or such other contractor may use for such completion so much of the Construction Documents, other design documents made by or on behalf of the Contractor, Contractor’s
Equipment, Temporary Works and Materials as it or they may think proper. Upon completion of the Works, or at such earlier date as Owner’s Representative thinks appropriate, Owner’s Representative shall give notice that the
Contractor’s Equipment and Temporary Works will be released to the Contractor at or near the Site. The Contractor shall remove or arrange removal of the same from such place without delay and at his cost. The obligations of the Contractor and
the rights and remedies to which Owner is entitled pursuant to this Section 17.1 shall survive the termination of this Contract. 
 If
it is subsequently found that Owner was not entitled to terminate under this Section 17.1, this Contract shall be deemed to have been terminated under Section 17.1.4. 

 

	 	17.1.2	Valuation at Date of Termination - Owner’s Representative shall, as soon as possible after termination under this Section 17.1, reasonably determine and advise the Contractor of the value of the
Construction Documents, Major Items of Equipment, Materials, Contractor’s Equipment and Works in excess of the portion of the Lump Sum Price that has been previously paid to the Contractor. 

 

	 	17.1.3	Payment after Termination - After termination under Section 17.1, Owner shall not be liable to make any further payments to the Contractor for Works except the payment provided in the Section 17.1.2
after taking into account the cost recovery provided in the next sentence which will not be due until the costs of design, execution, completion and remedying of any Defects or Deficiencies, liquidated damages for delay in completion (if any),
Buy-Down Amounts (if any) and all other actual and documented costs (if any) incurred by Owner have been established and paid in full. 

Owner shall be entitled to recover from the Contractor the costs in excess of the unpaid portion of the Lump Sum Price involved in completing
the Works after allowing for any sum due to the Contractor under Section 17.1.2. 

  
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	 	17.1.4.	Termination without cause - Unless Owner is in breach of any of its obligations under this Contract, Owner will be entitled to terminate this Contract at its convenience at any time by a written notice executed
and delivered by Owner to the Contractor. In the event of such termination, the Contractor: 

  

	 	(a)	shall proceed in accordance with Section 17.4; and 

  

	 	(b)	shall be paid by Owner the Termination Fee set forth in Section 17.3 provided that this Contract is terminated pursuant to this Section 17.1.4 after the issuance of the Notice to Commence. 

In the event this Contract terminates under this Section 17.1.4 prior to having issued the Notice to Commence, the Contractor shall have
no rights to be paid any monies by Owner or make any claim for costs arising out of or relating to this Contract, except for any portion of the Preliminary Works Lump Sum owed by Owner to the Contractor, in accordance with the Preliminary Schedule
of Payments. Contractor shall reimburse the Owner for any portion of the Preliminary Works Lump Sum paid for any Preliminary Works not performed as of the date in which this Contract is terminated as provided herein. 

 

	 	17.2	Termination by Contractor – If: 

  

	 	(a)	the Contractor is not paid any amount due, excluding any disputed amounts within forty-two (42) days after the expiry of the time stated in Section 16.1 within which payment is to be made (except for a
deduction that Owner is entitled to make under this Contract); 

  

	 	(b)	the Contractor does not receive the reasonable evidence within forty-two (42) days after giving notice under Section 16.1 in respect of a failure to comply with Section 2.4; 

 

	 	(c)	the Owner fails to comply with Section 22.18; 

  

	 	(d)	a prolonged suspension affects the whole of the Works as described in Section 9.9; or 

  

	 	(e)	the Owner becomes bankrupt or insolvent, goes into liquidation, has a receiving or administration order made against him, compounds with his creditors, or carries on business under a receiver, trustee or manager for the
benefit of his creditors, or if any act is done or event occurs which (under Applicable Laws) has a similar effect to any of these acts or events, provided that Lenders or an Owner’s Affiliate do not assume the rights and obligations of the
Owner under this Contract within ninety (90) days since the occurrence of any such event. 

  
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 then the Contractor may terminate its employment under this Contract by giving notice to Owner,
with a copy to the Representatives. Such notice shall take effect fourteen (14) days after the giving of the notice. The Contractor’s election to terminate the Contract shall not prejudice any other right or remedy of the Contractor under
the Contract. 
  

	 	17.3	Payment on Termination –After termination under Section 17.2, Owner shall pay the Contractor a Termination Fee amount equal to (i) Contractor’s actual and documented costs (including for this
purpose, reasonable home office overhead and allocated profit thereon of five percent (5%)), as audited and accepted by an independent quality surveying firm of international reputation selected by Owner and reasonably acceptable to Contractor,
incurred and which could not be avoided in connection with the performance by Contractor of the Work hereunder as of the date of such termination and which were not previously paid by Owner, and (ii) with respect to Materials, equipment or
supplies to be incorporated into the Works which have been ordered, but have not been delivered to the Project Areas either (a) all documented costs incurred by Contractor in connection with such materials, equipment or supplies, for which
Contractor has not been paid, provided that such materials, equipment or supplies are delivered to Owner at the Project Areas together with all documents necessary to transfer good and unencumbered title thereto Owner, if Owner has elected (in its
sole discretion) in writing to take possession of such materials, equipment or supplies, or (b) all actual, documented, reasonable and customary cancellation charges payable by the Contractor to its Subcontractors for such materials, equipment
or supplies as a result of such cancellation, to the extent that such charges are not mitigated despite best efforts to do so by Contractor, if Owner has in its sole discretion elected in writing not to take possession of such materials, equipment
or supplies. (iii) any other Cost or liability which in the circumstances was reasonably incurred by the Contractor in the expectation of completing the Works, (iv) the Cost of removal of Temporary Works and Contractor’s Equipment
from the Concession Area and the return of these items to the Contractor’s works in his country (or to any other destination at no greater cost) and (v) the Cost of repatriation of the Contractor’s staff and labor employed wholly in
connection with the Works at the date of termination of this Contract. Payment of this Termination Fee shall be the sole and exclusive liability of Owner, and the sole and exclusive remedy of Contractor, with respect to the termination of this
Contract. 

 In no event the Termination Fee to be paid by Owner will be higher than the Lump Sum Price, as amended, minus any
payments already made. After termination under Section 17.2 has taken effect, the Owner shall promptly: 
  

	 	(a)	return the securities provided under Section 14.6; 

  

	 	(b)	pay the Contractor in accordance with this Section 17.3 above. 

  

	 	17.4	Cessation of Works and Removal of Contractor’s Equipment - After termination under Section 17.1.4 or Section 17.2, the Contractor shall do the following: 

 

	 	(a)	cease all further work, except for such work as may be necessary and instructed by Owner’s Representative for the purpose of ensuring the safety or protecting those parts of the Works already executed, and any work
required to leave the Project Areas in a clean and safe condition; 

  
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	 	(b)	transfer possession and title over all Construction Documents, Major Items of Equipment and Materials for which the Contractor have received payment; 

 

	 	(c)	transfer possession and title over those other parts of the Works executed by the Contractor up to the date of termination; 

  

	 	(d)	transfer possession and title over any pieces of land acquired by Contractor for the purposes of the Works; and 

  

	 	(e)	remove all Contractor’s Equipment which is on the Concession Area and repatriate all its staff and labor from the Project Areas. 

Any such termination shall be without prejudice to any other right or remedy of the Contractor under this Contract. 

 

	XVIII.	RISK AND RESPONSIBILITY 

  

	 	18.1	Indemnity - Contractor shall defend, indemnify and hold Owner, Owner’s Representative, the Supervisor, Lender’s Representative and its representatives and all of the foregoing Persons’ respective
Affiliates, contractors, agents and employees harmless from and against all claims, damages, losses and expenses (including reasonable attorneys’ fees) to the extent resulting from the Contractor’s or any Subcontractor’s negligence.

  

	 	18.2	Contractor’s Care of the Works - The Contractor shall bear the risk of loss and take full responsibility for the care, custody and control of the Works and of the Project Areas and any Major Items of
Equipment, Materials, Temporary Works, whether delivered to or placed on the Project Areas or elsewhere in connection with or for the purpose of the Works, from the Commencement Date until the Final Taking-Over Date when responsibility therefor
shall pass to Owner. 

 If any loss or damage happens to the Works arising from any cause during the period for which the
Contractor is responsible, the Contractor shall as promptly as practicable rectify such loss or damage, at its cost, so that the Works conform to this Contract. The Contractor shall also be liable for any loss or damage to the Works caused by any
operations carried out by the Contractor after the Final Taking-Over Date. 

  
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	 	18.3	Employees - No Party nor its directors, officers, employees, agents, Affiliates or representatives, nor any independent contractor engaged by it in connection with the performance of this Contract, shall be
deemed an employee of the other Party. No Party shall bring any claim against the other Party or its directors, officers, Affiliates, agents, representatives, employees or independent contractors with respect to any liability for compensation under
any Applicable Laws. 

  

	 	18.4	Limitation of Contractor’s Liability - The Contractor’s total liability for all claims of any kind, whether as a result of breach of contract, delays, warranty, tort, negligence, strict liability or
otherwise, for any loss or damage arising out of, connected with, or resulting from the Works, shall in no case exceed a sum equal to one hundred percent of the Lump Sum Price; provided, however, that the foregoing limitation shall not apply to any
liability arising from gross negligence, fraud or willful misconduct of Contractor, or any of their employees or agents (the “Liability Cap”). The limitations of liability of Contractor hereunder shall not limit its obligations to perform
the Works and achieve completion as provided under this Contract including achieving the Final Taking-Over Levels. 

 The
Contractor’s liability for liquidated damages under Section 9.6 shall not exceed twelve (12) percent of the Lump Sum Price and under Section 11.3 shall not exceed eight (8) percent of the Lump Sum Price and under both
Sections 9.6 and 11.3 in the aggregate shall not exceed fifteen (15) percent of the Lump Sum Price. Notwithstanding the payment by the Contractor of any indemnification under this Contract, the Contractor shall complete the Works and achieve
the Actual Project Acceptance Date. In any case, the Contractor’s liability shall not be limited, and no credit shall be issued against the Liability Cap, for: 
  

	 	(a)	the Contractor’s indemnification obligations (except as to claims of Owner’s customers for loss of service) under the applicable sections of this Contract; 

 

	 	(b)	the costs incurred by the Contractor in achieving the Partial Taking-Over Date at the Partial Taking-Over Levels or the Final Taking-Over Date at the Final Taking-Over Levels; 

 

	 	(c)	any loss or damage arising out of or connected with the Contractor’s gross negligence or willful misconduct; or 

  

	 	(d)	any risks insured through insurance required under this Contract, it being the Parties’ specific intent that the Liability Cap shall not provide any relief or satisfaction of any obligation of the Contractor’s
insurers or guarantors. 

  

	 	18.5	Liability - Except to the extent that damages specifically provided for in Sections 9.6 and 11.3 of this Contract, neither Party nor its officers, directors, agents, employees, or Affiliates, shall be liable to
the other Party, its subsidiaries, Affiliates, officers, directors, agents, employees, successors or assignees, for claims for incidental, indirect or consequential damages of, or in any nature connected with or resulting from, performance or
non-performance of this Contract, including, inter alia, claims for loss of profit or revenue, loss of use of equipment, and cost of capital or return on capital irrespective of whether such claims are based upon warranty, negligence, strict
liability, contract, operation of law or otherwise; provided, however, that the foregoing provisions shall neither affect nor impair the rights or remedies of either Party to recover, in addition to any other remedies under this Contract,
“direct damages” (for the avoidance of doubt “direct damages” in this section means “daño emergente” according to Peruvian law) for a breach of this Contract for which liquidated damages do not apply, and subject
to the limitation established in Section 18.4. 

  
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	XIX.	INSURANCE 

  

	 	19.1	General - The provisions of this Article XIX do not modify or change or abrogate any responsibility of the Contractor or any Subcontractor stated elsewhere in this Contract. Owner assumes no responsibility for
the solvency of any insurer or the failure of any insurer to settle any claim. Requirements of the Contractor’s and Owner’s insurance policies are set forth below. 

 

	 	19.2	Polices Obtained by the Contractor - The Contractor shall maintain in force during its performance of the Works and until the Actual Project Acceptance Date, at its cost, insurance policies with company(s)
approved by Owner (such approval not to be unreasonably withheld), in compliance with the laws of Peru, of the types and in the amounts as follows. 

  

	 	(a)	Workers’ Compensation Insurance or any other similar form of employees’ social insurance which is required by Applicable Laws. The Contractor expressly agrees to comply with all provisions of the
Workers’ Compensation Laws or similar employee benefit laws of Peru, or wherein said Works are to be performed, or of the countries from which its personnel are employed, where required, if applicable. 

The Contractor shall effect and maintain insurance against losses and claims arising from the death or injury to any person employed by the
Contractor or any Subcontractor. For a Subcontractor’s employees, such insurance may be effected by the Subcontractor, but the Contractor shall be responsible for compliance with this Section 19.2. 

 

	 	(b)	Automobile Liability Insurance with companies approved or licensed to do business in Peru including owned, hired, rented or non-owned vehicles for bodily injury and property damage with a Combined Single Limit
Each Occurrence: one million Dollars (US$1,000,000) or amount required by Applicable Laws, whichever is greater. 

 All
policies pursuant to this Section 19.2 shall contain appropriate no-fault insurance provisions or other endorsements as are required under Applicable Laws and Applicable Permits. 

 

	 	(c)	Aircraft and Watercraft Liability Insurance is required if the Contractor or any Subcontractor utilizes aircraft or watercraft while performing the Works. Aircraft liability insurance, which shall include
passenger liability, or Watercraft Liability Insurance shall each have a minimum limit of coverage of fifteen million Dollars (US$15,000,000) per occurrence and in the annual aggregate. 

  
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	 	(d)	Third Party Liability Insurance excess over the coverage provided by Owner under Clause 19.4(b) for losses arising out of or in connection with the Works at the Project Areas and primary for losses arising away
from the Project Areas. Such insurance shall provide contractual coverage in respect of the Contractor’s commercial activities, including the Contractor’s indemnity obligations to Owner and shall include broad form property damage, sudden
and accidental pollution and personal injury coverage. Such insurance shall have a limit of coverage of ten million Dollars (US$ 10,000,000) per occurrence and in the annual aggregate. 

Regarding coverage in respect of liability for claims arising out of products and completed operations, a third parties’ liability
coverage shall be granted until twenty four (24) months after the Final Taking-Over Date. Such insurance shall have a limit of liability of three million Dollars (US$ 3,000,000) per occurrence and in the annual aggregate. 

 

	 	(e)	Excess Liability / Umbrella Liability Insurance this policy must provide following form coverage excess of the policies contained in this Section 19.2(a) to (d) with a minimum limit of liability of ten
million Dollars (US$ 10,000,000) per occurrence and in the annual aggregate. 

  

	 	19.3	Requirements in Respect of Contractor’s Insurance - In regards to each policy described under Section 19.2 the following shall apply: 

 

	 	(a)	The amounts of insurance may be satisfied by purchasing coverage in the amounts specified or by any combination thereof, so long as the total amounts of insurance meet the requirements specified. 

 

	 	(b)	The Contractor shall provide to Owner’s Representative promptly upon request a certificate of insurance providing evidence of each such insurance upon the terms required hereunder and make available for
Owner’s inspection all other policies in which Owner is included as an insured. The Contractor shall furnish Owner such evidence as may reasonably request from time to time regarding the establishment and maintenance of insurance by any
Subcontractor. 

  

	 	(c)	Each policy under Section 19.2, with the exception of Workers’ Compensation, shall specify Owner as additional insureds. 

  

	 	(d)	Each policy under Section 19.2 shall be placed and maintained with reputable insurers or reinsurer of sound financial standing as approved by Owner provided that such approval shall not to be unreasonably withheld
by Owner. 

  
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	 	(e)	Each insurance policy shall provide that the cancellation, non renewal or amendment of the policy shall be effective thirty (30) days’ after the date in which the insurer has advised Owner in writing of any
such cancellation, non renewal or amendment provided that if any such notice is sent to or from an office outside Peru, it will be sent by reputable international courier. 

 

	 	(f)	All policies obtained by the Contractor or any Subcontractor shall include a waiver by the insurer of any right of subrogation it may have against Owner or any of its employees, agents, directors, and shareholders.

  

	 	(g)	Except as provided for in Section 19.2(e), the above described insurance, with the exception of Worker’s Compensation Insurance referenced by Section 19.2(a), shall be considered primary insurance with
respect to the obligations assumed by the Contractor hereunder and all insurance carried by Owner, its agents, representatives, or Lenders shall be considered secondary and non-contributory in relation thereto. 

 

	 	(h)	The insurance policies described in section 19.2 shall cover the risk derived from the Subcontractors’ activities. 

  

	 	(i)	At Contractor’s request, Owner will contract the insurance policies described in section 19.2 above and Contractor will reimburse Owner the cost of maintaining such policies. 

 

	 	(j)	The Contractor shall comply with all terms, conditions and warranties of policies procured by Owner pursuant to the following Section 19.4. 

 

	 	19.4	Policies Obtained by Owner -, Owner shall maintain in force until the Final Taking-Over Date at its cost: 

  

	 	(a)	Construction/ Erection All Risk Insurance, effective on the date in which the Contractor has advised Owner in writing that it will commence Mobilization, provided that such notice has to be received by Owner with at
least thirty (30) Business Days in advance to such date. If Owner fails to maintain Construction/ Erection All Risk insurance then Contractor shall have the right to seek indemnification for any losses it should incur by reason of Owner’s
failure to maintain such insurance. Such insurance shall include Contractor, Subcontractors and their Affiliates as insureds and provide for waivers of subrogation against Contractor, Subcontractors and their Affiliates. Such policy shall be
governed by Peruvian law and the issuer of such policies shall submit to the jurisdiction of Peruvian courts; 

  
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	 	(b)	Third Party Liability up to five million Dollars (US$5,000,000) per occurrence and in the annual aggregate, effective on the date in which the Contractor has advised Owner in writing that it will commence Mobilization,
provided that such notice has to be received by Owner with at least thirty (30) Business Days in advance to such date, in respect of claims by third parties arising out of or in connection with the Works at the Project Areas; and

  

	 	(c)	Marine Cargo (including Air & Inland transit), effective on the date of the first shipment (which coverage shall be at DDU per Incoterms 2000), provided that Contractor notifies Owner in writing the shipment
information as stated in Section 8.2 above, on an All Risk basis with limits sufficient to provide replacement cost of the single highest value shipment. 

The Owner may divide the coverage described above in separate polices to ensure coverage for the scope of the Preliminary Works and for the
scope of the Works scheduled to be performed after the Notice to Commence. The Owner shall promptly thereafter give written notice to the Contractor providing reasonable details of the coverage. 

Owner shall ensure that any minor activities with a value not to exceed one million Dollars (US$ 1,000,000) per activity, to be performed
by the Contractor on the Project Areas prior to Mobilization, including but not limited to bench mark studies and geotechnical investigations, are covered by Owner’s existing all risk and third party liability insurance policies. 

The Contractor shall not be liable for any loss or damage to the Works in the case that insurance proceeds under the policies listed in
19.4(a) and 19.4(c) are paid to Owner and then not made promptly available to the Contractor. Contractor acknowledges that Owner may elect to insure the Works for less than their full replacement value subject to the condition that in such case
Contractor shall not be liable for any loss or damage to the Works to the extent such loss or damage exceeds the insurer’s limit of liability thereof. 

If the Final Taking-Over of the Plant by Owner does not occur by the Scheduled Final Taking-Over Date, for any reason attributable to the
Contractor, then the Contractor shall be responsible for the additional costs to be incurred by Owner for extending the enforceability of the Construction/Erection All Risk Insurance and the Contractor shall reimburse Owner for the resulting
additional insurance costs. 
  

	 	19.5	General Requirements for All Insurance - The following provisions shall apply to all insurance policies required pursuant hereto. 

 

	 	(a)	The Contractor and Owner shall immediately procure replacement coverage for all its canceled policies required hereunder. If a Party fails to effect and keep in force any of the insurances required under this Contract,
the other Parties 

  
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 shall have the right but not the obligation to, without prejudice to any other right or remedy,
effect insurance for the coverage relevant to such default, and pay the premiums due. Such payments shall be recoverable from the breaching Party and may be deducted from any sums due, or to become due, hereunder. 

 

	 	(b)	Nothing in this Section 19.5 limits the obligations, liabilities or responsibilities of the Contractor or Owner under the other terms of this Contract or otherwise. 

 

	 	(c)	Each Party shall deliver to the other Party, prior to the commencement of the Works, certificates of insurance evidencing the insurance coverages required herein. 

 

	 	(d)	All policies listed in Section 19.4 obtained by Owner shall contain a waiver by the issuer of its rights of subrogation against the Contractor, its Affiliates and any Subcontractor. All policies listed in
Section 19.4 shall include the Contractor, Subcontractors and their Affiliates as named insureds for their respective interests (except for the Delay in Start-up insurance), and will provide that the cancellation, non renewal or amendment of
the policy will be effective on the thirtieth day after the insurer advices the Contractor of any such cancellation, nonrenewal or amendment, provided however that the Construction/Erection All Risk Insurance shall not be subject to cancellation
except for non payment of premium. These policies with the exception of the Contractor’s offsite liability policy, will all be primary and further be endorsed to specify that they are primary to and not excess to or on a contributing basis with
any insurance maintained by the Contractor or any Subcontractor in the case any other policies exist for such coverage. The Construction/Erection All Risk Insurance shall provide that the interests of the Contractor, Affiliates and their
Subcontractors and the other interests shall not be invalidated by any action or inaction of Owner and shall insure the Contractor, Affiliates and their Subcontractors notwithstanding the breach of any representations, warranties or policy
conditions by Owner. 

  

	 	(e)	All policies obtained by the Contractor shall contain a waiver by the insurer of any subrogation rights against Owner, shall include Owner as an insured for their respective interests with the exception of the
Worker’s Compensation, as provided for in Section 19.3(c), will provide that the cancellation, non renewal or amendment of the policy will be effective on the thirtieth day after the insurer advices the Contractor of any such cancellation,
nonrenewal or amendment. These policies will further be endorsed to specify that they are primary to and not excess to or on a contributing basis with any insurance maintained by Owner with the exception of the Third Party Liability Insurance
required under Section 19.2(e) and Section 19.2(d) . 

  
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	 	(f)	All policies, except Workers’ Compensation, shall contain severability of interest or standard cross liability clauses and shall respond to claims or lawsuits that are brought worldwide, including within the United
States of America. 

  

	 	19.6	Deductibles & Claims Management - Notwithstanding any other provision of this Article XIX, any deductible(s) or self-insured retention payable under insurance policies required under Section 19.2
hereof shall be the sole responsibility of the Contractor. In addition, with respect to the insurance policy described under Section 19.4(a), the Contractor shall be responsible for the Guaranteed Deductible (inclusive of legal expenses) on all
covered incidents or occurrences thereunder, excluding Force Majeure events, after which the remaining deductible amount will be paid by Owner which shall not exceed the Maximum Deductible. The Owner will assume the cost of the applicable deductible
if the loss is caused by a Force Majeure event. The deductible for Marine Cargo insurance shall not exceed one percent (1%) per shipment, for physical damage losses, with a minimum of US$25,000. 

The Contractor shall be responsible for filing and prosecuting claims and administering the requirements of the insurance purchased by the
Contractor and Owner as defined in Section 19.2 and 19.4 as such requirements relate to engineering, procurement, construction and shipping activities such as loss control surveys, shipping notices and schedules, reporting claims, developing
information required for claims adjustment, preparation of necessary reports and preparation of insurance reports of cargo shipments. 
 The
Contractor shall notify Owner in writing of any actual or potential casualty or claim under any insurance policy, promptly after acquiring knowledge thereof. Such written notice of claim shall be given by the Contractor whether or not the amount of
such claim is within the deductible limits of the applicable insurance coverage. 
 If a loss is sustained, the Contractor and Owner shall
work together jointly for the purpose of adjusting the amount of the loss with the insurance companies. Subject to Owner’s consent, the Contractor shall repair or replace any loss or damage and complete the Works in accordance with this
Contract; provided, however, that the Contractor is relieved of its obligation to the extent that any claims settlement is solely vitiated or otherwise materially compromised because of some material act or omission on behalf of Owner. 

 

	 	19.7	Subcontractor Insurance - The Contractor shall use all reasonable endeavors to ensure that its Subcontractors maintain insurance similar to the insurance required of the Contractor in Section 19.2 provided,
however, that lesser limits may be required of such Subcontractor insurance if reasonably deemed appropriate by Contractor given consideration to such Subcontractor’s scope of work. 

  
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	XX.	FORCE MAJEURE 

  

	 	20.1	Definition of Force Majeure - In this Article XX, “Force Majeure” means an event, condition, or circumstance, which is not foreseeable to either Owner or the Contractor on or prior to the Base Date, is
of such a nature no Person can prevent or avoid it, is demonstrably beyond the control of Owner and the Contractor and its Subcontractors, which makes it impossible or illegal for any Party to perform hereunder, and includes without limitation, to
the extent consistent with the foregoing: 

  

	 	(a)	epidemic officially declared by the World Health Organization after the Limited Notice to Commence, with proven impact over the Works, lightning strikes, hurricane, storms of unusual severity (provided that the first
five (5) days of severe weather in any calendar month shall not be considered Force Majeure), or floods of the Mantaro river occurred during the construction of the Works greater than the twenty year flood affecting the Project Area provided
that the Constructor has reasonably mitigated the risk and that the damages to the Works would not have occurred if the flood where lower than the twenty year flood; 

 

	 	(b)	earthquakes causing material damages to the Works provided that such damages where not caused by the Contractor’s failure to act as a prudent contractor acting in a severe seismic zone. 

 

	 	(c)	war, hostilities (whether war be declared or not), invasion, act of foreign enemies, government requisition, or embargo; 

  

	 	(d)	rebellion, revolution, insurrection, or military or usurped power, or civil war; 

  

	 	(e)	contamination by radioactivity from any nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive, or other hazardous properties of any explosive nuclear assembly or
nuclear component of such assembly; 

  

	 	(f)	riot, commotion or disorder, unless solely restricted to employees of the Contractor or of its Subcontractors; and 

  

	 	(g)	unforeseeable labor strikes that affect a specific trade on a national or industrial scale that are not caused by the acts of omissions of the Contractor or its Subcontractors. 

The Parties expressly recognize that labor and Material and equipment shortages and acts or omissions of Subcontractors of any tier shall not
be deemed an “event beyond the control of the Contractor” unless the Contractor can demonstrate that the actual event giving rise to the Force Majeure would be an event specifically enumerated in any of the clause (a), (b), (c), (d), (e),
(f) or (g) of this Section 20.1 if the Contractor was carrying out the portion of the Works so subcontracted. 

  
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 Collapse of any Temporary Works or any condition affecting the Access Roads in any way
whatsoever shall never be Force Majeure. 
  

	 	20.2	Effect of Force Majeure Event - Neither Owner nor the Contractor shall be considered in default or in contractual breach to the extent that performance of obligations is prevented by a Force Majeure event which
arises after the Effective Date and prevents, delays or interrupts an activity on the critical path as set forth on the original Project Schedule. 

Changes in market conditions and changes in the financial condition of any Subcontractor shall not be considered a Force Majeure and neither
shall the condition of waterways, roads, bridges or tunnels which are inadequate for transportation of equipment and materials be considered Force Majeure, unless such inadequate condition is a result of an event that would otherwise constitute
Force Majeure. Force Majeure shall never excuse a payment obligation provided that the obligation of the other Party which gives rise to the payment obligation in question has been performed. 

If a Force Majeure event which prevents the continuance of every aspect of the Works occurs and is in effect for a period of eighty-four
(84) consecutive days, either Owner or Contractor may give to the other a notice of termination which shall take effect thirty (30) days after the giving of such notice. If, at the end of the thirty (30) days period, the effect of the
Force Majeure continues, this Contract shall terminate. In the event of termination under this Section, the total amount that the Contractor shall be entitled to for its performance under this Contract shall be the payment provided in the
Section 17.3 excluding the profit provided in such Section. 
  

	 	20.3	Contractor’s Responsibility - Upon occurrence of an event considered by the Contractor to constitute Force Majeure and which may affect performance of its obligations, it shall promptly notify Owner’s
Representative pursuant to Section 9.4 and shall continue to perform its obligations as far as reasonably practicable. The Contractor shall also notify Owner’s Representative of any proposals, including any reasonable alternative means for
performance, but shall not effect proposals without the consent of Owner’s Representative. 

  

	 	20.4	Owner’s Responsibility - Upon occurrence of an act considered by Owner to constitute Force Majeure and which may affect performance of their obligations, they shall promptly notify the Contractor and the
Lender’s Representative, and shall continue to perform their obligations as far as reasonably practicable. Owner’s Representative shall also notify the Contractor of any proposals with the objectives of completing the Works and mitigating
any increased costs to Owner and the Contractor, if applicable, provided that the Contractor shall not have the obligation to execute any such Proposals. 

  

	 	20.5	Payment to the Contractor - If as a result of a Force Majeure event, the Works suffer loss or damage, the Contractor shall be entitled to include, in a Monthly Payment Certificate, the Cost of work performed
prior to the occurrence of the Force Majeure event. Any additional Cost incurred by the Contractor in 

  
 88 

 complying with the proposals made by it and approved by Owner’s Representative under
Section 20.3 shall be added by Owner’s Representative to the Lump Sum Price, as applicable. Other than as specifically set forth herein, the Contractor shall be entitled to no other payments as a result of the occurrence of a Force Majeure
event. Under no circumstances shall the Contractor be entitled to compensation, after the Final Taking-Over Date, for a Force Majeure event which occurred before the Final Taking-Over Date. 

If as a result of a Force Majeure the Contractor suffers delay and/or incurs Cost by reason of such Force Majeure, the Contractor shall be
entitled to: 
  

	 	(a)	an extension of time for any such delay, if completion is or will be delayed under Section 9.4; and 

  

	 	(b)	if the event or circumstance is of the kind described in Section 20.1, payment of any such Cost. 

  

	XXI.	CLAIMS, DISPUTES AND ARBITRATION 

  

	 	21.1	Procedure for Claims - If the Contractor intends to claim any additional payment as expressly permitted under any provision of this Contract, the Contractor shall give written notice to Owner as soon as possible
and in any event within twenty-eight (28) days of the day in which the Contractor discovered or reasonably should have discovered the event giving rise to the claim. 

The notice must include a written statement setting forth the general nature of such claim. Failure to provide such written statement within
such times shall constitute a presumption that no payment or adjustment of the Lump Sum Price is claimed or warranted. 
 Notwithstanding
the existence of a claim or any other matter in dispute between the Parties, the Contractor shall proceed diligently with performance of this Contract and follow the instructions of Owner or Owner’s Representative, as the case may be, in
accordance with the terms of this Contract unless otherwise agreed to in writing. If Owner disputes such claim, the Contractor’s sole recourse will be to pursue its rights under Sections 21.3 and 21.4 of this Contract. 

The Contractor shall keep such contemporary records as may be necessary to substantiate any claim, either on the Site or at another location
acceptable to Owner’s Representative. Without admitting Owner’s liability, Owner’s Representative shall, on receipt of such notice, inspect such records and may instruct the Contractor to keep further contemporary records. The
Contractor shall permit Owner’s Representative to inspect all such records and shall (if instructed) submit copies to Owner’s Representative. 

Within twenty-eight (28) days of such notice, or such other time as may be agreed by Owner’s Representative, the Contractor shall
send to Owner’s Representative an account, giving detailed particulars of the amount and basis of the claim. Where the event giving rise to the claim has a continuing effect, such account shall be considered as interim. 

  
 89 

 The Contractor shall then, at such intervals as Owner’s Representative may reasonably
require, send updated interim accounts giving the accumulated amount of the claim and any applicable particulars. Where interim accounts are sent to Owner’s Representative, the Contractor shall send a final account no later than the
twenty-eighth day after the day in which the effects resulting from the event. 
 If the Contractor fails to comply with this
Section 21.1, its claims shall cease to be valid immediately after such failure. 
  

	 	21.2	Payment of Claims - The Contractor shall be entitled to have included in any Monthly Payment Certificate such amount for any claim as Owner’s Representative considers due. Unless and until the particulars
supplied are insufficient to substantiate the whole of the claim, the Contractor shall be entitled to payment for such part of the claim as has been substantiated to the reasonable satisfaction of Owner’s Representative. 

 

	 	21.3	Negotiation between Senior Executives - The Parties will attempt in good faith to resolve any Dispute promptly by negotiation between senior executives of the Parties who have authority to settle the controversy
or claim. In the event a Party intends to invoke such negotiation process, it shall give the other Party written notice of such intent and specify in writing the specific nature of the dispute. Within fifteen (15) days of receipt of said
notice, the receiving party shall submit to the other a written response. The executives representing the Parties shall meet at a mutually acceptable time and place within thirty (30) days of the receiving Party’s notice and thereafter as
often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the dispute. In the event such dispute is not resolved by such negotiations within thirty (30) days, the Parties shall proceed to arbitration in
accordance with Section 21.4. The notices called for within this Section 21.3 shall not be deemed a substitute for any other notice requirement set forth in this Contract. 

 

	 	21.4	Arbitration - In the event the Parties are unable to resolve any Dispute, through the procedures set forth in Section 21.3, the resolution of such Dispute shall be solved in an arbitration at law governed by
the Rules of the International Chamber of Commerce, and the award issued as a result of such arbitration shall be final and binding on the Parties. 

The arbitration shall be conducted by an arbitral tribunal composed of three (3) arbitrators. The Party requesting the commencement of
the arbitration shall nominate an arbitrator in its notice of arbitration, while the Party served with such notice of arbitration shall nominate an arbitrator within 20 days of the date on which it was served with the notice of arbitration. The
arbitrators nominated by the Parties shall appoint the third member of the arbitral tribunal, who shall act as chairman. This last appointment shall be made within 20 days of the date on which the Center confirms the appointment of the last
party-nominated arbitrator. 
 In the event that any of the Parties fails to nominate its arbitrator within the term established in the
previous paragraph or the two arbitrators appointed by the Parties fail to appoint the third arbitrator within the term established in the foregoing paragraph, the Center shall appoint the remaining arbitrator(s) pursuant to the Rules. 

  
 90 

 The seat of the arbitration shall be the city of New York, New York, United Stated of America
and shall be conducted in the English language under the rules of the Center. 
 Any arbitration resulting from a Dispute, including,
without limitation, any settlement which the Parties may reach in the course of the arbitration; any awards, orders, or rulings issued by the Tribunal; and any pleadings, briefs, submissions, and documents filed by the Parties, as well as their
contents, shall be confidential and may not be disclosed by the Parties or their agents, representatives, employees, directors, administrators and lawyers to third parties, unless such information is necessary for the enforcement of the relevant
award or its disclosure is necessary according to the applicable laws. Any proceeding under the Parent Guaranty may be consolidated with any arbitration hereunder at the option of the Owner. 

The decision of the arbitrators shall be final and binding upon the Parties. Judgment upon the award rendered by the arbitrator (s) may
be entered in any court having jurisdiction thereof. The prevailing Party may enforce such award or judgment in any jurisdiction, including any jurisdiction where the other Party’s assets may be located. Except as the Parties otherwise agree in
writing pending the final resolution of any claim or controversy or arbitration proceeding, Contractor shall proceed diligently with the performance of the Works under this Contract and in compliance with Owner’s Representative’s
directions in accordance with the terms of this Contract. 
  

	XXII.	MISCELLANEOUS 

  

	 	22.1	Law and Language - This Contract shall be governed by and construed in accordance with the laws of Peru. The language for all communications and notices hereunder shall be English regardless of any course of
dealing of the Parties. 

  

	 	22.2	Communications - Wherever provision is made for the giving or issue of any notice, instruction, invoice, consent, approval, certificate or determination by any Person, unless otherwise specified such
communication shall be in writing in the language specified in Exhibit A and shall not be unreasonably withheld or delayed. 

Wherever provision is made for a communication to be written, or in writing, this means any hand-written, type-written or printed
communication, including facsimile. 

  
 91 

 All certificates, invoices, notices or written orders to be given hereunder shall either be
delivered by hand against written acknowledgment of receipt or be sent by reputable international courier service. The addresses for the receipt of such communications shall be as follows: 

If to Owner: 
 Cerro del
Aguila SA 
 Av. Victor Andres Belaunde 147 Torre Real 5 piso 11 

Lima 27, Peru 
 Attention:
Javier García-Burgos Benfield 
 Phone: +51 1 7067878 

If to the Contractor: 

Astaldi S.p.A. 
 Calle Los
Nardos 1018, Piso 2, 
 Lima 27, Peru 

Attention: Giacomo Orsatti 

Phone: +51 1 206 4300 
 and 

GyM SA 
 Av. Paseo de la
Republica 4675 
 Lima 34, Peru 

Attention: Juan Manuel Lambarri Hierro 

Phone: +51 1 2130444 
 If to
Owner’s Representative: 
 As designated in writing by Owner. 

If to Lender’s Representative: 

As designated in writing by the Lenders. 

If to the Supervisor: 

As designated in writing by the Supervisor. 
  

	 	22.3	Validity and Enforceability - The invalidity or unenforceability of any portion or provision of this Contract shall not affect the validity or enforceability of any other portion or provision. Any invalid or
unenforceable portion or provision shall be deemed severed from this Contract, and the balance of this Contract shall be construed and enforced as if this Contract did not contain such invalid or unenforceable portion or provision. Notwithstanding
the provisions of the preceding sentence, should any term or provision of this Contract be found invalid by any Governmental Authority having jurisdiction thereof, the Parties shall immediately renegotiate in good faith such term or provision of
this Contract to eliminate such invalidity. 

  

	 	22.4	Documents on Site - The Contractor shall keep on the Site one complete set of the documents applicable hereto when under construction and forming this Contract. This includes the Construction Documents and the
Workbook. Owner, Owner’s Representative, the Supervisor and assistants shall have the right to use such documents at all reasonable times. 

The Contractor may keep records in some or all the Project Areas in order to register the incidences relative to works performed in such
locations. However, for the purposes of this Contract, the official and binding record of such occurrences will be the Workbook. 

  
 92 

	 	22.5	Construction Documents - The Construction Documents shall be in the custody and care of the Contractor. The Contractor shall provide a sufficient number of copies for the use of Owner’s Representative or the
Supervisor, or as specified herein. 

  

	 	22.6	Contractor’s Use of Owner’s Documents - Copyright and ownership of (i) all items contained in the request for proposals issued by Owner in connection with the Plant and other documents and computer
programs issued by Owner or Owner’s Representative to the Contractor shall (as between the Parties) be the property of Owner. The Contractor may, at its cost, copy, use and communicate any such documents (including making and using
modifications) for the purposes of this Contract and the Contractor shall not, without Owner’s written consent, use such documents for purposes other than those related to the Works. They shall not, without Owner’s consent, be used, copied
or communicated to a third party by the Contractor, except as necessary for the purposes of this Contract. Effective upon the Commencement Date, the Contractor hereby grants to Owner and its successors and assignees for the lifetime of the Plant an
irrevocable, royalty-free license to use any Construction Documents or computer programs furnished by the Contractor hereunder for the purpose of maintaining and operating the Plant. 

 

	 	22.7	No Technology Transfer - For the avoidance of doubt, Owner understands that the foregoing is not and shall not be deemed to be a technology transfer to Owner of any technology or intellectual property rights
relating to the Construction Documents or equipment and the Contractor shall retain all rights, title and interest in the Contractor’s and its Affiliates proprietary technology, patents, trade secrets and shop drawings. 

 

	 	22.8	Confidential Details - All documents, plans, drawings, specifications, and the subject matter contained therein and any information provided by a Disclosing Party to the Receiving Party in connection with the
performance of this Contract which is in writing and marked, stamped or otherwise identified in writing by the Disclosing Party as being proprietary, secret, or confidential (hereinafter “Confidential Information”), shall be held
confidential by the Receiving Party and shall not be used or disclosed by the Receiving Party for any purposes other than those for which they have been prepared or supplied, unless otherwise permitted with the prior written consent of the
Disclosing Party. As a condition to receiving such Confidential Information, the Receiving Party agrees to hold all such Confidential Information confidential and not to use, discuss or disclose such Confidential Information with or to third parties
for a period of four (4) calendar years following the date of disclosure by the Disclosing Party, without the prior written consent of the Disclosing Party. For purposes of this Section 22.8, the entire content of this Contract shall be
Confidential Information. 

  
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 This Section 22.8 shall not prevent the Receiving Party from disclosing such Confidential
Information of the Disclosing Party pursuant to: (a) a subpoena issued by a court of competent jurisdiction, (b) other requirements of law or judicial or administrative order, or (c) activities related to the development, construction
and financing of the Works; provided, however, that prior to making such a disclosure pursuant to (a) and (b), the Receiving Party will provide the Disclosing Party with timely advance written notice of its intent to so disclose, to the extent
reasonably practical, and prior to making such a disclosure pursuant to (c) to any Person not bound by confidentiality obligations at least as restrictive as those contained in this Section 22.8, the Receiving Party will obtain from such
Person a confidentiality agreement consistent with this Section 22.8. 
 The Receiving Party shall have no obligation hereunder with
respect to any portion of the Confidential Information received by it from the Disclosing Party that: (a) has been made public, unless such Confidential Information was made public by or with the assistance of the Receiving Party in violation
of this Contract; (b) becomes part of the public domain by publication or otherwise, after disclosure to the Receiving Party, unless such Confidential Information was made public by or with assistance of the Receiving Party in violation of this
Contract; (c) shall otherwise lawfully become available to the Receiving Party on a non-confidential basis from a third party who has not received the Confidential Information directly or indirectly from the Disclosing Party; (d) was or is
independently developed by the Receiving Party, and such fact can be proven by reasonable written documentation, and such Confidential Information was not acquired directly or indirectly from the Disclosing Party; or (e) was already rightfully
in the Receiving Party’s possession at the time it was disclosed to the Receiving Party. 
 The Parties agree that, as far as possible
and unless needed for the proper execution of their responsibilities under this Contract, they will keep confidential the terms of this Contract. In addition, unless otherwise required by Applicable Laws, the Contractor shall not, without the prior
written consent of Owner, issue any public statement, press release, publicity handout, photograph or other material relating to or disclosing in any way whatsoever to any Person other than a prospective Subcontractor the award to the Contractor of
this Contract or the scope, extent or value of the Works, or any details as to the Major Items of Equipment, Materials and other equipment to be used or installed by the Contractor, or anything whatsoever relating to the Works or any part thereof.
Without in any way restricting the generality of the foregoing, the Contractor shall not invite or permit any reporter, photographer, television camera crew, commercial radio broadcaster or any other such Person to enter upon the Project Areas
without the express prior written consent of Owner. 
  

	 	22.9	Remedies Non-Exclusive - Except as expressly provided herein with respect to (a) breach of Article XIII (Defects Liability); (b) liquidated damages for failure to achieve the Partial Taking-Over Date or
the Final Taking-Over Date by the Scheduled Partial Taking-Over Date or the Scheduled Final Taking-Over Date and failure to achieve the Performance Guarantee Levels once the Final Taking-Over Levels have been achieved; and (c) damages as
provided in Section 17.1 upon termination hereof, or (d) any other section of this Contract which expressly provides for an exclusive or sole remedy, all remedies provided in this Contract shall be deemed cumulative and not in lieu of, or
exclusive of, each other or of any other remedy available to either Party under this Contract, at law or in equity, and the exercise of any remedy, or the existence herein of other remedies, shall not prevent the exercise of any other remedy,
provided that the Contractor shall not have any right to suspend its performance or terminate this Contract except as expressly provided in Articles XVI and XVII. 

  
 94 

	 	22.10	Waiver - The waiver of any breach or failure to enforce any of the terms, covenants or conditions of this Contract shall not in any way affect, limit, modify or waive the future enforcement of such terms,
covenants or conditions. 

  

	 	22.11	Third-Party Beneficiaries - Except with respect to indemnification obligations contained herein in favor of third parties and as expressly provided herein, the provisions of this Contract are intended for the
sole benefit of the Parties, and there are no third-party beneficiaries other than assignees contemplated by the terms herein. 

  

	 	22.12	Counterparts - This Contract may be executed in any number of counterparts and by each of the Parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same Contract. 

  

	 	22.13	Entire Agreement - Any of the Works described in this Contract which were performed or caused to be performed by the Contractor prior to the execution of this Contract shall be deemed to have been performed under
this Contract. This Contract sets forth the full and complete understanding of the parties relating to the subject matter hereof as of the date first above stated, and supersedes any and all negotiations, agreements and representations made or dated
prior thereto. Subsequent to the Effective Date, this Contract may be supplemented, modified or otherwise amended by mutual agreement or only in accordance with the terms of this Contract; provided that any such supplements, modifications and
amendments to this Contract, if any, must be in the form of a written amendment to this Contract, and signed by authorized representatives of all Parties to this Contract. 

Under no circumstances shall any Party be liable for any oral clarifications, instructions, or interpretations of this Contract. Owner shall
not be liable for any misinterpretation or misunderstanding of this Contract on the part of the Contractor, or for any failure by the Contractor to acquaint itself fully with all circumstances relating to the Works. The Contractor represents that it
has carefully and completely read and examined the entire Contract, including all plans, drawings, specifications and all exhibits thereto and other documents referenced herein. 

 

	 	22.14	Conflicting Provisions - Any Party, upon becoming aware of any conflict or inconsistency among any of the components of this Contract shall promptly notify the other Parties in writing of such conflict or
inconsistency. 

  

	 	22.15	Joint Responsibility for Drafting - This Contract was negotiated and prepared by the Parties with advice of counsel to the extent deemed necessary by each Party; the Parties have agreed to the wording of this
Contract; and none of the provisions hereof shall be construed against one Party on the ground that such Party is the author of this Contract or any part thereof. 

  
 95 

	 	22.16	Notice of Objection - Owner hereby gives notice of its objection to any different or additional terms and conditions than those contained in this Contract. This Contract is expressly conditioned on the
Contractor’s assent to the terms and conditions stated herein. 

  

	 	22.17	Compliance with Statutes, Regulations and Applicable Laws - The Contractor shall, in all matters arising in the performance of this Contract, comply with, give all notices under, and pay all fees required by, the
provisions of any national or local statute, ordinance, decree or other law, the portions of the EIA concerning construction activities, or any regulation, decree or decision of any legally constituted public authority having jurisdiction over the
Works, including all Applicable Laws and Applicable Permits. Except for those permits, licenses, or approvals listed on Exhibit F or required to be obtained by Owner in its name for the operation of the Plant (“Owner Permits”) the
Contractor shall obtain in a timely manner (not to delay any portion of the Works), secure, pay for and maintain in full force and effect any and all permits, licenses, consents or approvals required for the Contractor to carry out any part of the
Works (“Contractors Permits”), sufficient time in advance, taking account of the times for import of any Contractor’s Equipment, obtaining visas or work permits for any Contractor’s personnel, delivery of the Major Items of
Equipment and Materials for completion of the Works. The Contractor has made a thorough and complete investigation of all Applicable Laws and Applicable Permits or consents required from or by any Governmental Authority in Peru or elsewhere
respecting design, construction, performance and testing of the Works, including those permits and consents set forth in the Technical Specification. The Contractor warrants that the listing of required permits and consents contained in the
Technical Specification is accurate and complete, but such listing shall not operate to diminish or limit the Contractor’s responsibilities under this Section 22.17. In the event it is subsequently discovered that (other than Owner
Permits) additional permits or consents are required to be obtained by the Contractor to carry out any part of the Works, the Contractor assumes full responsibility for any additional cost and delay that is incurred by the Contractor as a result of
the requirement to obtain, to secure, pay for and maintain in full force and effect any such additional permits or consents provided that such additional permits or consents are not a result of a Change in Law. The Contractor shall be entitled to a
Variation in accordance herewith if the additional permits or consents referred to herein are a result of a Change in Law. Lapse of any Contractor Permit shall not be considered as an Event of Force Majeure nor entitle Contractor to a Variation.

 The Contractor shall comply with the laws of Peru and of each jurisdiction where activities are performed in connection
with the Works. The Contractor shall not nor shall it allow any of its Affiliates or their respective directors, officers, shareholders, employees or agents shall make or offer, in respect of the performance of the Works, any loan, gift or other
payment, directly or indirectly, whether in cash or in kind, for the use or benefit of an Official for the purposes of influencing any act or decision of such Official in its official capacity, or 

  
 96 

 
inducing such Official to do or omit to do any act in order to obtain or retain business or otherwise to secure any improper advantage. The Contractor shall indemnify, defend and hold Owner and
the Lenders harmless from any and all liabilities, costs, penalties, fines, and attorney’s fees costs associated to its breach of any of the foregoing. The Contractor shall cause its Subcontractors to comply with the provisions of this
Section 22.17. 
  

	 	22.18	Rights of Assignment - Neither this Contract nor any right, privilege or delegation hereunder may be assigned or transferred in whole or in part by any Party without the prior written consent of all other
Parties, and any attempted assignment or transfer without such written consent shall be void. Notwithstanding the above, Owner is allowed to assign its rights under this Contract, in whole or in part, to any of its Affiliates or to the Lender,
without approval of Contractor. The Contractor agrees, if required by any Lender, within five (5) Business Days to enter into agreements evidencing its consent to assignment of this Contract, or to enter into a direct agreement with the Lenders
or the agent, which shall include terms and conditions customary for an agreement of this type, including the right of the Lenders or the agent to assume the obligations of Owner hereunder or to assign or transfer these obligations to a third party
nominated by the Lenders or the agent, to require the Contractor to make any payments due to Owner pursuant to this Contract directly into a collateral security account maintained by or on behalf of the Lenders and to provide notice to such parties
and a reasonable opportunity for such parties to remedy the event giving rise to a right of termination prior to exercising any such right and to allow the agent or the Lenders to exercise any right of termination hereunder. 

 

	 	22.19	Financing Requirements - The Contractor shall cooperate with Owner in the negotiation and execution of any reasonable amendment to or modification of this Contract required by any Lender or other entity providing
financing for this Contract, Works or Plant, including, without limitation, an amendment or modification: 

  

	 	(a)	extending the Contractor’s indemnities to such Lender or other entity and its engineer; 

  

	 	(b)	providing that such Lender or other entity be named as loss payee, and that it and Lenders’ Representative be named as additional insureds, under the insurance policies required to be maintained hereunder; and

  

	 	(c)	generally making provision for the Lenders’ Representative to be included in the construction review process. 

The Contractor will promptly provide an opinion of outside counsel, in each case, to the extent required by Lender or agent concerning this
Contract or any agreement referred to in Section 22.18. 
  

	 	22.20	Information for Lender’s Representative - The Contractor shall (subject to the non-disclosure requirements of Section 22.8) provide such documents and other technical assistance as Lender’s
Representative may reasonably request in connection with obtaining financing for the Plant. During the performance of 

  
 97 

 the Works, the Contractor shall make available to Lender’s Representative information
relating to the status of the Works including, but not limited to, information relating to the design, engineering, construction and testing of the Plant and such other matters as Lender’s Representative may reasonably request. Lender’s
Representative shall have the right to participate in all inspections conducted by Owner under this Contract and to attend all Performance Tests which may be witnessed by Owner. Owner shall cause all such persons to observe the Contractor’s
security and safety regulations at all applicable locations and to refrain from interfering with the Contractor’s performance of the Works. 
  

	 	22.21	Documentation and Right of Audit 

  

	 	22.21.1	Where the Contractor performs any work on a time and material basis in connection with a Variation, Owner and their duly authorized representatives and the Supervisor shall have access, at all reasonable times,
during the course of the Works and for a period of six (6) months after the completion of the Variation work to all applicable Contractor’s books and records for the purpose of auditing and verifying costs of services. The Contractor is
required to maintain supporting data and accounting records in accordance with the generally accepted accounting principles utilized in Peru, as applicable, all consistently applied regardless of the location of any work performed. In all cases
Owner and the Supervisor shall have the right to verify compliance with Sections 13.5 and 22.17 of this Contract. 

  

	 	22.21.2	Subject to the confidentiality provisions of this Contract, the Contractor shall provide the above mentioned records in computer readable format, if available, as well as an original hard copy. Owner and their
representatives and the Supervisor shall have the right to reproduce any of the aforesaid documents, always subject to Section 22.8, and shall be provided adequate and appropriate work space in order to conduct audits in compliance with this
audit provision. Any adjustments or payments which must be made as a result of any such audit or inspection of the Contractor’s invoices or records shall be made within a reasonable amount of time (not to exceed thirty (30) days) from
presentation of the findings to the Contractor. The Contractor will not charge for its costs incurred with the audit. 

  

	 	22.21.3	The Contractor will cooperate fully and cause all related parties and all Subcontractors to cooperate fully in furnishing or in making available to Owner and the Supervisor from time to time, whenever requested
and in an expeditious manner, any and all such information, materials and data. 

 [signature page follows] 

  
 98 

 IN WITNESS WHEREOF, the Parties have caused this Contract to be executed as of the date first
above written. 
  

									
	Astaldi S.p.A.	 		 	Cerro del Aguila SA
					
	By:	 	 /s/ Giacomo Orsatti
	 		 	By:	 	 /s/ Javier Garcia

	Name:	 	 Giacomo Orsatti
	 		 	Name:	 	 Javier Garcia

	Title:	 	 Representante Legal
	 		 	Title:	 	 CEO

			
	GyM SA	 		 	Cerro del Aguila SA
					
	By:	 	 /s/ Juan Manuel Lambarri
	 		 	By:	 	 /s/ Juan Carlos Camogliano

	Name:	 	 Juan Manuel Lambarri
	 		 	Name:	 	 Juan Carlos Camogliano

	Title:	 	  
	 		 	Title:	 	  

				
	GyM SA	 		 		 	
					
	By:	 	 /s/ Hernando Graña
	 		 		 	
	Name:	 	 Hernando Graña
	 		 		 	
	Title:	 	  
	 		 		 	

 EXHIBITS & SCHEDULES 

 

			
	 Exhibits
	  	 
		
	Technical Specifications	  	Exhibit A
	Performance Guarantee Levels	  	Exhibit B
	Performance Test Protocol	  	Exhibit C
	Project Data	  	Exhibit D
	Contractor’s Organizational Chart	  	Exhibit E
	Contractor and Owner Permits	  	Exhibit F
	Main Spare Parts	  	Exhibit G
	Concession and Project Areas	  	Exhibit H
	Measurements & Payments – Risk Sharing Mechanism	  	Exhibit I
		
	 Schedules
	  	 
		
	Preliminary Project Schedule	  	Schedule 1
	Subcontractors List	  	Schedule 2
	Advance Payment Bond	  	Schedule 3
	Performance Bond	  	Schedule 4
	Warranty Letter of Credit	  	Schedule 5
	Preliminary Schedule of Payments	  	Schedule 6
	Monthly Payment Certificate	  	Schedule 7
	Punch List Bank Guarantee	  	Schedule 8
	Performance Test Certificate	  	Schedule 9
	Partial Taking-Over Certificate	  	Schedule 10
	Final Taking-Over Certificate	  	Schedule 11
	Actual Project Acceptance Certificate	  	Schedule 12
	Final Acceptance Certificate	  	Schedule 13
	Final Payment Certificate	  	Schedule 14
	Reserved	  	Schedule 15
	Owner’s Parent Guaranty	  	Schedule 16
	Variation Order Proposal	  	Schedule 17
	Reserved	  	Schedule 18
	Contractor Safety Plan	  	Schedule 19
	Contractor Quality Assurance Program	  	Schedule 20
	Reserved	  	Schedule 21
	Form of Proof of Subcontractor Payment	  	Schedule 22
	Form of Labor Obligations’ Certificate	  	Schedule 23

 VARIATION ORDER No. 1 

1. Introduction. This Variation Order No. 1 (this “Variation”) is agreed to pursuant to the Turnkey Engineering, Procurement and
Construction Contract for the Cerro del Aguila Hydroelectric Power Plant, dated November 4, 2011 (the “Contract”) by and between Astaldi and GyM (“Contractor”) and Cerro del Aguila S.A. (“Owner”). Capitalized terms
used but not defined herein shall have the meaning given to them in the Contract. This Variation as submitted by one Party to the other shall constitute a request for a Variation. Upon its countersignature in the space provided below, this Variation
shall constitute a Variation within the meaning of the Contract. 
 2. Scope of Change. 

The Owner has proposed to amend sections 22.1 and 21.4 of the Contract as set forth below. 

3. Changes. 
 Owner and Contractor hereby agree that
section 22.1 and 22.4 will be restated and replaced in their entirety as follows: 
  

	 	21.4	Arbitration - In the event the Parties are unable to resolve any Dispute, through the procedures set forth in Section 21.3, the resolution of such Dispute shall be solved in an arbitration at law governed by
the Rules of the International Chamber of Commerce, and the award issued as a result of such arbitration shall be final and binding on the Parties. 

The arbitration shall be conducted by an arbitral tribunal composed of three (3) arbitrators fluent in English and Spanish. 

The Party requesting the commencement of the arbitration shall nominate an arbitrator in its notice of arbitration, while the Party served
with such notice of arbitration shall nominate an arbitrator within 20 days of the date on which it was served with the notice of arbitration. The arbitrators nominated by the Parties shall appoint the third member of the arbitral tribunal, who
shall act as chairman. This last appointment shall be made within 20 days of the date on which the Center confirms the appointment of the last party-nominated arbitrator. 

In the event that any of the Parties fails to nominate its arbitrator within the term established in the previous paragraph or the two
arbitrators appointed by the Parties fail to appoint the third arbitrator within the term established in the foregoing paragraph, the Center shall appoint the remaining arbitrator(s) pursuant to the Rules. 

The seat of the arbitration shall be the city of New York, New York, United Stated of America and shall be conducted in the English language
under the rules of the Center. Notwithstanding, the arbitral tribunal will not require the translation of any document drafted in Spanish as a requirement to admit such document into evidence. 

 Any arbitration resulting from a Dispute, including, without limitation, any settlement which
the Parties may reach in the course of the arbitration; any awards, orders, or rulings issued by the Tribunal; and any pleadings, briefs, submissions, and documents filed by the Parties, as well as their contents, shall be confidential and may not
be disclosed by the Parties or their agents, representatives, employees, directors, administrators and lawyers to third parties, unless such information is necessary for the enforcement of the relevant award or its disclosure is necessary according
to the applicable laws. Any proceeding under the Parent Guaranty may be consolidated with any arbitration hereunder at the option of the Owner. 

The decision of the arbitrators shall be final and binding upon the Parties. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof. The prevailing Party may enforce such award or judgment in any jurisdiction, including any jurisdiction where the other Party’s assets may be located. Except as the Parties otherwise agree in
writing pending the final resolution of any claim or controversy or arbitration proceeding, Contractor shall proceed diligently with the performance of the Works under this Contract and in compliance with Owner’s Representative’s
directions in accordance with the terms of this Contract. 
  

	 	22.1	Law and Language - This Contract shall be governed by and construed in accordance with the laws of Peru. The language for all communications and notices hereunder shall be in English and Spanish regardless of any
course of dealing of the Parties. 

 4. Other Terms and Conditions. Except as otherwise specifically provided in section 3 of this
Variation, all other terms and conditions of the Contract shall remain in full force and effect. 
 5. Execution. This request for Variation is
hereby submitted by the Owner on December 08th, 2011. By its countersignature below, both parties hereby agree to this Variation. 

 

															
	 Cerro del Aguila S.A.
  
	  		  	Astaldi S.p.A.	  	

	By:	  	 /s/ Javier Garcia
	  		  	By:	  	 /s/ Giacomo Orsatti
	  
		  	Name:	  	Javier Garcia	  		  		  	Name:	  	Giacomo Orsatti	  
		  	Title:	  	CEO	  		  		  	Title:	  	Representante Legal	  
		  	Date:	  	12/1/12	  		  		  	Date:	  	8/12/2011	  

					
	By:	 	 /s/ JC Camogliano

		 	Name:	 	JC Camogliano
		 	Title:	 	
		 	Date:	 	12/01/12

 GyM S.A. 
  

					
	By:	 	 /s/ Jimmy Masciotti

		 	Name:	 	Jimmy Masciotti
		 	Title:	 	Director
		 	Date:	 	11/01/12

  

					
	By:	 	 /s/ Jorge Monaco

		 	Name:	 	Jorge Monaco
		 	Title:	 	Cerro Del Aguila S.A. Ing. Project Manager
		 	Date:	 	

  

 VARIATION ORDER No. 2 

This Variation Order No. 2 (this “Variation No. 2”) is agreed to pursuant to the Turnkey Engineering, Procurement and Construction
Contract for the Cerro del Aguila Hydroelectric Power Plant, dated as of November 4, 2011 (the “Contract”) by and between Astaldi and GyM (jointly, the “Contractor”) and Cerro del Aguila S.A. (“Owner”). Capitalized
terms used but not defined herein shall have the meaning given to them in the Contract. 
 1. Background 

The Owner issued the Limited Notice to Commence on November 4th 2011 which represents the
Commencement Date for the Contract. 
 The Owner has submitted a request for a Variation to the Contractor as a consequence of the delayed issuance of the
Notice to Commence foreseen on or before the end of the sixth month after the Commencement Date. 
 The Contractor presented its proposal by letter Ref.
AGM-CHCA-071-12 dated May 11th 2012 stating the conditions on which the Variation shall be based and including the adjustment to the Lump Sum Price and to the Time for Completion. 

The Owner and the Contractor agree on the following Conditions and Changes 

2. Conditions 
  

	(a)	The applications necessary to obtain the CIRA and the environmental permits in connection to the construction of the road that connects Tacana with the area designated for the Project’s powerhouse and the road
being constructed by the Contractor under the terms of a certain construction agreement entered with the Municipality of Colcabamba and that connects Intivilca with the area designated for the Project’s dam to be filed before the competent
authority by the 18th of May 2012 and the Owner shall deliver to the Contractor copy of the applications with evidence of receipt by the relevant authorities by such date. 

 

	(b)	Owner will provide the Contractor formal handing over of 100% of the land, specified in the Exhibit H that are required to perform the Preliminary Works according to the Project Schedule by the 1st of June 2012. Exception is made for the land in Exhibit H of the Contract and in the Jatuspata area described in Attachment 1 that will be handed over on 15th of June, 2012. 

  

	(c)	Owner will provide to the Contractor access and possession rights over the land area in Exhibit H of the Contract and in Llocce, Barropata and Fundición and adjacent to Uyarico, Platanal and Limonal described in
Attachment 1, sufficient to store air lifted equipment, no later than on the 18th of May 2012. Exception is made for the land in Exhibit H of the Contract and in the Jatuspata area described in
Attachment 1 that will be handed over on 15th of June, 2012. 

 3. Scope of Change. 

Pursuant to Article IX of the Contract, the deadline to issue and deliver the Notice to Commence, the Time for Completion and the Lump Sum Price are adjusted
by amending and restating sections 1.1.75, 1.1.112, 1.1.113, 1.1.131, 1.1.132, 14.6.1, the first sentence of the third paragraph of Article IX, Schedule 1 and Schedule 6 in their entirety as provided in section 4 of this Variation No. 2. 

4. Changes. 
 (a) Owner and Contractor hereby agree that
sections 1.1.75, 1.1.112, 1.1.113, 1.1.131, 1.1.132, 14.6.1, the first sentence of the third paragraph of Article IX, Schedule 1 and the Schedule 6 will be amended and restated in their entirety by replacing their text by the following: 

 

	 	(i)	Section 1.1.75 

  

	 	1.1.75	“Lump Sum Price” means the fixed lump sum of Four Hundred and Fifty Five Million Seven Hundred Sixty Five Three Hundred Forty Eight Dollars (US$ 455,765,348) and of Six Hundred and Twenty Eight Million Three
Hundred Seventeen Thousand One Hundred and Two Nuevos Soles (S/. 628,317,607) as it may be adjusted pursuant to this Contract. 

  

	 	(ii)	Section 1.1.112 

  

	 	1.1.112	“Preliminary Works” means the part of the Works which will be performed by the Contractor between the Limited Notice to Commence and the Notice to Commence, as described in Exhibit A, and which includes
topographic surveys, geo-physic investigation, geologic investigation, engineering basic design, purchase orders of critical equipment and plants, construction of Access Roads and Accessways to the dam and powerhouse areas, including mobile working
camps and spoil area preparation, maintenance and conditioning of the Access Routes where necessary to allow safety transit of the personnel and equipment, commencement of the construction of bridges over the Mantaro river, commencement of the earth
moving activities of the camp sites and of the construction of the temporary electric transmission line for construction purposes as well as any other portion of the Works to be performed by the Contractor prior to the issuance of the Notice to
Commence according to Schedule 1 Preliminary Project Schedule. 

	 	(iii)	Section 1.1.113 

  

	 	1.1.113	“Preliminary Works Lump Sum” means the portion of the Lump Sum Price payable to Contractor in accordance with Schedule 6 Preliminary Schedule of Payment for the amount of Twenty Five Million Six Hundred Thirty
Seven Thousand Six Hundred Eleven Dollars (US$ 25,637,611.00) and Thirty nine Million six Hundred Forty Thousand One Hundred and ninety three Nuevos Soles (S/. 39,640,193.00) plus the additional amount determined pursuant to Section 4(b) of
Variation No. 2. 

  

	 	(iv)	Section 1.1.131 

  

	 	1.1.131	“Scheduled Final Taking-Over Date” means fifty one (51) months from the Commencement Date. 

  

	 	(v)	Section 1.1.132 

  

	 	1.1.132	“Scheduled Partial Taking-Over Dates” means one thousand four hundred and fifty (1450) days for the first Generator Set and one thousand five hundred and fifteen (1515) days for the second Generator
Set, from Commencement Date. 

  

	 	(vi)	First sentence of the third paragraph of Article IX 

 If Owner does not give the Notice to
Commence by September 4, 2012, the Parties shall negotiate for a term of thirty (30) days changes to the Time for Completion and Lump Sum Price. In the event the Notice to Commence is not be given by the end of the 10th month after the
Commencement Date and the Parties agree upon the changes to the Time for Completion and Lump Sum Price, such changes shall take into consideration the hydrological constraints (“ventana hidrologica”) for the performance of the
tunnel diversion. 
  

	 	(vii)	First sentence of the first paragraph of Section 14.6.1 Advance Payment Bond 

 Contractor
shall deliver to Owner four (4) stand by letter of credits in substantially the form of Schedule 3 issued by an Eligible Bank in the amount equal to the value of each advance payment in accordance with the Schedule 6, and the Contractor shall
deliver the first standby letter of credit no later than ten (10) Business day before the end of the month on which the Advance Payment is due. 
  

	 	(viii)	Schedule 1–Preliminary Project Schedule 

 Schedule 1 of the Contract is amended and restated in its entirety by replacing it with a new
Schedule 1 attached to the present Variation Order as Attachment N. 2. 
  

	 	(ix)	Schedule 6–Preliminary Schedule of Payment 

 Schedule 6 of the Contract is amended and
restated in its entirety by replacing it with a new Schedule 6 attached to the present Variation Order as Attachment N. 3. 
 (b) During the period between
the date of execution of this Variation 2 and the date that is the earlier of September 4, 2012 and the date in which the Owner delivers the Notice to Commence to the Contractor, the Owner shall pay the Contractor the Direct Costs equal to the
unitary value of the Works performed by the Contractor and evidenced in a Monthly Payment Certificate prepared and submitted by the Contractor to the Owner on the month of the relevant Preliminary Works Payment Date pursuant to section 14.1.2 of the
Contract and verified by the Owner pursuant to section 14.1.3 of the Contract plus the monthly Indirect Costs provided that the amount to be paid during this period for Direct Cost shall not exceed Twenty Eight Million Dollars (USD 28,000,000.00)
and the amount to be paid for Indirect Cost shall not exceed Six Million Five Hundred Thousand Dollars (USD 6,500,000.00). 
 (c) Insert in the Contract,
sections 1.1.7A, 1.1.36A and 1.1.68A with the following text: 
  

	 	(i)	Section 1.1.7A 

 1.1.7A “Advance Payments” means the portion of the Lump Sum
Price to be paid by the Owner to the Contractor according to the Schedule 6. 
  

	 	(ii)	Section 1.1.36A 

 1.1.36A “Direct Costs” means the portion of the Lump Sum Price
payable by the Owner to the Contractor pursuant to section 14.1.3 of the Contract and determined in the Bill of Quantities contained in Schedule 6 equal to Three Hundred Eighty Six Million Two Hundred and Thirty Thousand Six Hundred Ten Dollars with
Seventy Six Cents (USD 386,230,610.76) and Four Hundred Sixty Three Million Seven Hundred Thirteen Thousand Nine Hundred Sixty One Nuevos Soles (S/. 463,713,961.00). 
  

	 	(iii)	Section 1.1.68A 

 1.1.68A “Indirect Costs” means the portion of the Lump Sum
Price payable by the Owner and the Contractor pursuant to the Preliminary Schedule of Payments contained in Schedule 6 that is equal to Sixty Nine Million Five Hundred Thirty Four Thousand Seven Hundred Thirty Six Dollars (USD 69,534,736.00) and One
Hundred Sixty Four Million Seven Hundred Forty Thousand One Hundred Forty Three Nuevos Soles (S/. 164,740,143.00). 

 5. Other Terms and Conditions. Except as otherwise specifically provided in section 4 of this Variation,
all other terms and conditions of the Contract shall remain in full force and effect. 
 6. Waiver. Each Party hereby irrevocably waives any right
that it has or might have under the Contract or at Law to commence or file any claim, demand, action or any request for financial compensation, additional money and extension of time against the other Party concerning the Project for any causes
whatsoever based on facts that occurred prior to the date of execution of this Variation No. 2. 
 7. Execution. On May 18, 2012, by its
countersignature below, both parties hereby agree to terms and conditions contained in this Variation Order. 
  

															
	 Cerro del Aguila S.A.
  
	 		 	Astaldi S.p.A. 	  	

	 /s/ Javier Garcia

 
	 		 	 /s/ Giacomo Orsatti
	  
	By:	 	 /s/ Javier Garcia
	 		 	By:	  	/s/ Giacomo Orsatti	  
		 	Name:	 	Javier Garcia	 		 		  	Name:	  	Giacomo Orsatti	  
		 	Title:	 	CEO	 		 		  	Title:	  	Representante Legal	  
		 	Date:	 	18/5/2012	 		 		  	Date:	  	18/05/2012	  

  

					
	By:	 	 /s/ Juan Carlos Camogliano

		 	Name:	 	 Juan Carlos Camogliano

		 	Title:	 	
		 	Date:	 	18/05/12

  

					
	 GyM S.A.
  

	 /s/ Juan Manuel Lambarri

		
	By:	 	 /s/ Juan Manuel Lambarri

			
		 	Name:	 	Juan Manuel Lambarri
		 	Title:	 	
		 	Date:	 	18/05/2012

  

					
	By:	 	 /s/ Hernando Graña

			
		 	Name:	 	 Hernando Graña

		 	Title:	 	
		 	Date:	 	18/05/2012

 VARIATION ORDER N° 3 

This Variation Order N° 3 (this “Variation N° 3”) is agreed to pursuant to the Turnkey Engineering, Procurement and Construction Contract
for the Cerro del Aguila Hydroelectric Power Plant, dated November 4, 2011 (the “Contract”) by and between Astaldi and GyM (“Contractor”) and Cerro del Aguila S.A. (“Owner”). Capitalized terms used but not defined
herein shall have the meaning given to them in the Contract. 
 The Owner and the Contractor agree on the following Variation: 

1. Purpose of the Variation. The Owner and the Contractor hereby agree to settle that the Owner shall pay the amount of five hundred and eighty thousand
three hundred and eighty dollars (USD 580,380.00) to the Contractor as a compensation caused by the suspension of some activities, required by the Owner, of the Contractor’s Equipment since the Commencement Date until to the date of execution
of this Variation, inclusive. Within fifteen (15) Business Days after reception of invoice submitted by the Contractor, the Owner shall pay to the Contractor the referred amount. 

The Owner and the Contractor hereby agree that the referred amount shall not be added to the Lump Sum Price and the suspension period shall not affect the
Time for Completion. 
 2. Other Terms and Conditions. Except as otherwise specifically provided in section 1 of this Variation N° 3, all other
terms and conditions of the Contract shall remain in full force and effect. 
 3. Waiver. Each Party hereby irrevocably waives any right that it has
or might have under the Contract or at Law to commence or file any claim, demand, action or any request for financial compensation, additional money and extension of time against the other Party concerning the Project for any causes whatsoever based
on facts that occurred prior to the date of execution of this Variation N° 3. 
 4. Execution. On June 15, 2012], by its countersigned
below, both parties hereby agree to terms and conditions contained in this Variation N° 3. 
  

													
	Cerro del Águila S.A.	 	Astaldi S.p.A.
			
	 /s/ Javier Garcia
	 		 	 /s/ Giacomo Orsatti

					
	By:	 	 /s/ Javier Garcia
	 		 	By:	 	 /s/ Giacomo Orsatti

		 	Name:	 	 Javier Garcia 
	 		 		 	Name:	 	Giacomo Orsatti
		 	Title:	 	CEO	 		 		 	Title:	 	
		 	Date:	 	2/7/12	 		 		 	Date:	 	15/06/2012

  

							
	By:	 	 /s/ Rosa María Flores Araoz

		 	 Name:
 Title:

Date:
	 	 Rosa María Flores Araoz

CERRO DEL AGUILA S.A.

  

					
		 		 	 /s/ Jorge Monaco

		 		 	CERRO DEL AGUILA S.A.
		 		 	Ing. JORGE MONACO
		 		 	Project Manager

  

			
	GyM S.A.
	
	 /s/ Juan Manuel Lambarri

		
	By:	 	 /s/ Juan Manuel Lambarri

		 	Name: Juan Manuel Lambarri
		 	Title:
		 	Date:   15/06/2012
		
	By:	 	 /s/ Hernando Graña

		 	Name: Hernando Graña
		 	Title:
		 	Date:   15/06/2012

  

			
		 	 /s/ Jorge Monaco

		 	CERRO DEL AGUILA S.A.
		 	Ing. JORGE MONACO
		 	Project Manager

  

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 VARIATION ORDER No. 4 

This Variation Order No. 4 (this “Variation No. 4”) is agreed to pursuant to the Turnkey Engineering, Procurement and Construction
Contract for the Cerro del Aguila Hydroelectric Power Plant, dated as of November 4, 2011 (the “Contract”) by and between Astaldi S.p.A. and GyM S.A. (jointly, the “Contractor”) and Cerro del Aguila S.A. (“Owner”).
Capitalized terms used but not defined herein shall have the meaning given to them in the Contract. 
  

	1.	Purpose of the variation: The Owner and the Contractor hereby agree to: 

  

	 	(a)	Amend Schedule 6 of the Contract by substituting the bill of quantities included therein by the new bill of quantities attached herein as Annex 1 to adapt the Unit Values to the new basic consolidated engineering
developed by the Contractor for the Project; 

  

	 	(b)	Modify the Preliminary Project Schedule included in Schedule 1 of the Contract by replacing it with the new Preliminary Project Schedule attached herein as Annex 2; and 

 

	 	(c)	Amend Exhibit I of the Contract by replacing TABLES No. 1, 2, 3, 4 and 5 with TABLES, 1a, 2a, 3a, 4a, 5a - attached herein as Annex 3 and by amending its Section 2.2.2 as provided below: 

 

	 	(i)	Incorporate the following paragraph as the last paragraph immediately preceding the first Example of Section 2.2.2. of Exhibit I: 

“If the overall total cost of excavating the tunnels changes with respect to the estimated amount indicated in Table 1a, due to the
difference in the length of the individual tunnel’s support sections, then the resulting adjustment to the Lump Sum Price (increase or decrease) will be made to reflect the difference between the cost estimation indicated in Table 1a and the
cost effectively incurred by the Contractor during the excavation of the tunnels.” 
  

	 	(ii)	Incorporate the following paragraph as the fourth paragraph of the first Example of Section 2.2.2. of Exhibit I: 

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 “Following the completion of all the Surface Invasive and Subsurface Civil Work, it
will be possible to calculate the total amount applicable to the tunnels, considering that in the case in which better than expected rock conditions are found in those tunnels and additional lengths introduced in this variation, and therefore a
saving is generated, only 80% of the reduction will be applied to the overall final calculation.” 
 2. Other Terms and Conditions. Except
as otherwise specifically provided in section 1 of this Variation, all other terms and conditions of the Contract and of Exhibit I shall remain in full force and effect. 

4. Execution. On May 8, 2013, by its countersignature below, both parties hereby agree to terms and conditions contained in this Variation Order.

  

									
	Cerro del Aguila S.A.	 		 	Cerro del Aguila S.A.
					
	By:	 	 /s/ Javier Garcia Burgos
	 		 	By:	 	 /s/ JC Camogliano

		 	Name: Javier Garcia Burgos	 		 		 	Name: JC Camogliano
		 	Title: Director	 		 		 	Title: Director
		 	Date:15/5/13	 		 		 	Date: 15/5/13
			
	GyM S.A.	 		 	GyM S.A.
					
	By:	 	 /s/ Hernando Graña
	 		 	By:	 	 /s/ Juan Manuel Lambarri

		 	Name:	 		 		 	Name:
		 	Title:	 		 		 	Title:
		 	Date:	 		 		 	Date:
			
	Astaldi S.p.A.	 		 	Astaldi S.p.A.

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

									
	By:	 	  
	 		 	By:	 	 /s/ G. Orsatti

		 	Name:	 		 		 	Name: G. Orsatti
		 	Title:	 		 		 	Title:
		 	Date	 		 		 	Date:

  

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 VARIATION ORDER No. 4-A 

This Variation Order No. 4-A (this “Variation No. 4-A”) is agreed to pursuant to the Turnkey Engineering, Procurement and Construction
Contract for the Cerro del Aguila Hydroelectric Power Plant, dated as of November 4, 2011 (the “Contract”) by and between Astaldi S.p.A. and GyM S.A. (jointly, the “Contractor”) and Cerro del Aguila S.A. (“Owner”).
Capitalized terms used but not defined herein shall have the meaning given to them in the Contract. 
  

	1.	Purpose of the variation: The Owner and the Contractor hereby agree to: 

  

	 	(a)	Amend Schedule 6 of the Contract by substituting the Preliminary Payment Schedule included therein by the new Preliminary Payment Schedule attached herein as Annex 1 only to register an advance payment that will be done
by Owner; and 

  

	 	(b)	Incorporate a set of additional milestones to the development of the Works, included herein as Annex 2, which are hereby incorporated to the Contract. Milestones included in Annex 2 attached hereto are additional to
those set forth on the Preliminary Project Schedule included in Schedule 1 of the Contract, which is not replaced nor amended herein. 

  

	2.	Additional Considerations. This Variation Order doesn’t affect the Project Schedule nor the Contract Price. 

  

	3.	Other Terms and Conditions. Except as otherwise specifically provided in section 1 of this Variation, all other terms and conditions of the Contract shall remain in full force and effect. 

 

	4.	Execution. On June 17, 2013, by its countersignature below, both parties hereby agree to terms and conditions contained in this Variation Order. 

 

			
	Cerro del Aguila S.A.	 	Cerro del Aguila S.A.

  

									
	By:	  	  
	  		  	By:	  	  

		  	Name:	  		  		  	Name:
		  	Title:	  		  		  	Title:
		  	Date:	  		  		  	Date:

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

									
	GyM S.A.	  	 	  	GyM S.A.
					
	By:	 	 /s/ Hernando Graña
	  		  	By:	  	 /s/ Juan Manuel Lambarri

		 	Name:	  		  		  	Name:
		 	Title:	  		  		  	Title:
		 	Date:	  		  		  	Date:

  
  

									
	 Astaldi S.p.A.
  
	  	

	  	
	By:	  	 /s/ Giacomo Orsatti
	  	  	
		  	Name:	  	Giacomo Orsatti	  	  	
		  	 Title:    
 Date:
	  	Representante Legal	  	  	
	  		  		  	  	

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 ANNEX 1 

Preliminary Payment Schedule 

 Variation No. 4 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 ANNEX 2 

Additional Milestones to be achieved by Contractor 
  

					
	No.	  	MILESTONE	  	DUE DATE
	1	  	Complete access road to Power House	  	31.12.2013
			
	2	  	Complete main access tunnel to Power House excavation	  	31.12.2013*
			
	3	  	Complete Adit 2 tunnel excavation up to headrace tunnel	  	31.12.2013*
			
	4	  	Complete Power House cavern excavation	  	30.06.2014*
			
	5	  	Complete river diversion tunnel excavation	  	31.12.2013
			
	6	  	Initiate Dam body concrete pouring	  	30.11.2013
			
	7	  	Complete excavation of Headrace tunnel up to at least 1800 m	  	31.12.2013*

  

	*	Due Date is based on expected class of rock mass distribution mentioned on Exhibit I of the Contract. Such due date might vary in case rock mass found during excavation differs from the distribution mentioned on Exhibit
I of the Contract. 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 VARIATION ORDER No. 5 

This Variation Order No. 5 (this “Variation No. 5”) is agreed to pursuant to the Turnkey Engineering, Procurement and Construction Contract
for the Cerro del Aguila Hydroelectric Power Plant, dated as of November 4, 2011 (as amended, the “Contract”) by and between Astaldi S.p.A. and GyM S.A. (jointly, the “Contractor”) and Cerro del Aguila S.A.
(“Owner”) on the day and year written in Section 14 below (hereinafter, the “Execution Date”). Capitalized terms used but not defined herein shall have the meaning given to them in the Contract. 

 

	1.	Purpose of the Variation: The Owner and the Contractor hereby agree to resolve any and all disputes they may or might have in relation to or arising from the Contract and the Project which arose on or before the
Execution Date and subject to the terms and conditions set forth in this Variation No. 5. 

  

	2.	Waiver of rights: Contractor irrevocably waives and releases any right it may have to pursue any existing or past claim it made or could have made, and future claim it may have made or may make against Owner or
to request additional payments or time extensions based on facts or events that occurred or were known on or before the Execution Date, including but not limited to, the claims asserted or referenced in letters CRM-CDA-R-1-14 and N°
CRM-CDA-R-2-14, dated as of April 15, 2014 and as of May 26, 2014, respectively. 

 Owner irrevocably waives and
releases any right it may have to pursue any existing or past claim it made or could have made, and future claim it may have made or may make against Contractor based on facts or events occurred or known on or before the Execution Date of this
Variation No. 5. 
  

	3.	Amendments to the Contract: In consideration for the waiver and release granted hereby by the Parties, the Parties hereby agree to amend the Contract as follows: 

 

	 	3.1	Lump Sum Price. 

  

	 	(a)	Section 1. 1.75 is hereby amended and restated in its entirety as follows: 

 “1.1.75
“Lump Sum Price” means the fixed lump sum of four hundred and ninety five million seven hundred and sixty five thousand three hundred and forty eight Dollars (US$ 495,765,348) and of Six Hundred and Twenty Eight Million three hundred and
seventeen thousand six hundred and seven Nuevos Soles (S/. 628,317,607) as it may be adjusted pursuant to this Contract.” 
  

	 	(b)	The following text is added at the end of Section 14.1.3: 

  
 

 

  
 Page 1 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 “Notwithstanding the above, a portion of the Lump Sum Price equal to USD 40,000,000
(forty million Dollars), Peruvian VAT excluded, will be paid by Owner to Contractor as follows: 
  

	 	(a)	The amount of USD 10,000,000 (ten million Dollars) upon the tenth day after the date in which the Lenders’ consent to this Variation No. 5 has been obtained. 

 

	 	(b)	The amount of USD 10,000,000 (ten million Dollars) upon the tenth day after the occurrence of the Partial Taking-Over Date of the first Generator Set. 

 

	 	(c)	The amount of USD 10,000,000 (ten million Dollars) upon the tenth day after the occurrence of the Partial Taking-Over Date of the second Generator Set; and 

 

	 	(d)	The amount of USD 10,000,000 (ten million Dollars) upon the tenth day after the occurrence of the Final Taking-Over Date. 

Contractor will be released from the waivers it granted under Section 2 of Variation No. 5 executed between the Parties and
therefore, may exercise any of the rights waived under such provision if Owner continues to fail to pay any of the portion of the Lump Sum Price as provided in the previous subclauses (a), (b), (c) and (d) thirty days after Contractor
demanded payment in writing of any amount set forth therein.” 
  

	 	3.2	Scheduled Partial Taking-Over Dates. 

 Section 1.1.132 is hereby amended and
restated in its entirety as follows: 
 “1.1.132 “Scheduled Partial Taking-Over Dates” means February 28, 2016 for the
first Generator Set and April 30, 2016 for the second Generator Set.” 
  

	 	3.3	Scheduled Final Taking-Over Date. 

 Section 1.1.131 is hereby amended and restated
in its entirety as follows: 
 “1.1.131 “Scheduled Final Taking-Over Date” means July 30, 2016.” 

 

	 	3.4	Liquidated Damages and Early Final Taking Over Bonus. 

  

	 	(a)	Section 9.6 is hereby amended and restated in its entirety as follows: 

  

 

  
 Page 2 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 ‘’If the Partial Taking-Over Date of the first Generator Set is not achieved by
March 15, 2016 for such Generator Set, the Contractor shall pay Owner liquidated damages in the amount of US$ 130,000,00 for each day of delay from such date until the Partial Taking-Over Date of the first Generator Set is achieved. 

If the Partial Taking-Over Date of the second Generator Set is not achieved by the Scheduled Partial Taking Over Date for such Generator Set,
the Contractor shall pay Owner liquidated damages in the amount of US$ 100,000 for each day of delay from such date until the Partial Taking-Over Date of the second Generator Set is achieved. 

If the Final Taking-Over Date of the Plant is not achieved by July 30, 2016, the Contractor shall pay Owner liquidated damages in the
amount of US$ 160,000.00 for each day of delay from such date until the Final Taking-Over Date is achieved. 
 If any Generator Set stop
working or reduce their output after their Partial Taking-Over Date and such outage or reduction of output is caused by a Defect or by a Contractor’s request, then the Contractor shall pay Owner liquidated damages in the amount of US$
100,000,00 for each day of outage or reduction in output excluding the first day in aggregate in which an outage or reduction in output occurred. 

If the Contractor achieves the Partial Taking-Over Date of the first Generator Set before the Scheduled Partial Taking-Over Date for the first
Generator Set, Contractor will be entitled to the Early Final Taking Over Bonus for such Generator Set. 
 If the Contractor achieves the
Partial Taking-Over Date of the second Generator Set before the Scheduled Partial Taking Over Date for the second Generator Set, Contractor will be entitled to the Early Final Taking Over Bonus for such Generator Set. 

The liquidated damages provided in this Section 9.6 shall be in lieu of all liability of Contractor to Owner for any and all extra costs,
losses or expenses of whatsoever nature incurred or to be incurred by Owner as a result of any delay in achieving the Partial Taking-Over Date or the Final Taking-Over Date, and shall be the sole and exclusive remedy to the Owner in case of delay.
The forgoing liquidated damages shall be paid within twenty (20) days of written demand therefor and if not so paid, may be collected by Owner from any amount then owed to the Contractor. 

 
 

 

  
 Page 3 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 The above liquidated damages are a reasonable forecast of the actual costs, losses and
expenses incurred by Owner as a result of delays in achieving the Partial Taking-Over Date and the Final Taking-Over Date by the Time for Completion and therefore, do not constitute a penalty. The parties, having bargained in good faith for such
specific damages, are estopped from contesting the validity or enforceability of such damages. 
 The payment or deduction of such
liquidated damages shall not relieve the Contractor from its obligation to complete the Works and achieve the Final Taking-Over Levels, remedy any Defects or Deficiencies or from any other of its outstanding duties, obligations or responsibilities
under this Contract. 
 The Contractor shall issue an invoice evidencing the applicable bonus for the first Generator Set or the second
Generator Set, as applicable, within thirty (30) days after the issuance of the Final Taking-Over Certificate. Payment of such invoice shall occur in accordance with Section 14.3.” 

 

	 	(b)	Section 1.1.40 is hereby amended and restated in its entirety as follows 

 “1.1.40
“Early Final Taking Over Bonus” means an amount equal to US$ 65,000.00 for each day prior to the Scheduled Partial Taking-Over Date for the first Generator Set, in which Partial Taking-Over Date of the first Generator Set is
achieved by Contractor or US$ 50,000.00 for each day prior to the Scheduled Partial Taking-Over Date for the second Generator Set, in which Partial Taking-Over Date of the second Generator Set is achieved by Contractor. For the
avoidance of doubt, Parties agree that there will be no Early Final Taking Over Bonus associated to the third Generator Set.” 
  

	 	3.5	Punch List. 

 The following text is added at the end of Section 1.1.121: 

“Notwithstanding the above, the items included under Annex I to Variation No.5 can be included in the Punch List and will not be
considered as a valid reason for disputing the achievement of the Partial Taking-Over Dates or the Final Taking Over-Date provided that the failure to provide such items by the Partial Taking Over Dates or the Final Taking Over Date does not
materially impair the ability to safely operate the relevant Generator Set or the Plant as a whole.” 
  
 

 

  
 Page 4 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

	4.	Project Schedule: Within 30 calendar days after the Execution Date, Contractor will submit for Owner’s approval a new Project Schedule, both on Primavera and PDF formats, including the Scheduled Partial
Taking-Over Dates and Scheduled Final Taking-Over Date agreed on this Variation No. 5. Such Project Schedule will include in detail (level 3) all engineering, procurement and construction works to be completed and will clearly indicate all
tasks that are on the critical path. 

  

	5.	Access: Owner accepts the modifications to the access to the Project Area and the Concession Area that are set forth below: 

  

	 	5.1	Access Road Construction. 

 The Contractor is relieved from the construction of the
Access Road that connects Quintao with Jatuspata and the bypass that connects the Access Road to the dam area with Durasnuyoc and the Owner therefore waives any right it may have to demand the construction of such Access Roads or to seek
compensation for such Access Roads not being performed. 
  

	 	5.2	Access Route Alteration or Modification. 

 The Contractor is relieved from the
alteration or modification of the Access Route that connects Andaymarca with Durasnuyoc and the Access Route that connects Durasnuyoc, Suylloc and Quintao and the Owner therefore waives any right it may have to demand the alteration or modification
of such Access Routes or to seek compensation for such Access Routes not being performed. 
  

	 	5.3	Access Road from the powerhouse to Jatuspata. 

 Contractor will build, at no additional
cost to Owner, an Access Road which shall be at least 4 meters wide, connecting the powerhouse of the Project and Jatuspata. Compensation to the Contractor for the performance of such Access Road will be regulated under Section 5.4. 

 

	 	5.4	Bill of quantities modification. 

 The currently unpaid amounts allocated in the bill of
quantities, detailed in the Preliminary Schedule of Payments, Schedule 6 of the Contract (the “Bill of Quantities”) for the performance of the portion of the Works which have been relieved from the Contractor’s obligations pursuant to
Sections 5.1, 5.2 and 5.3 of this Variation No. 5, equals to an amount of USD 3,477,521 (three million four hundred and seventy seven thousand five hundred and twenty one Dollars) plus Peruvian Nuevos Soles 12,279,591 (twelve million two
hundred and seventy nine thousand five hundred and ninety one). Such amounts will be re-assigned for the execution of the Access Road indicated on Section 5.3 of this Variation No. 5 and will be paid in accordance with the progress of the
said portion of the Works in the Monthly Payment Certificates. 
  
 

 

  
 Page 5 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

	 	5.5	Transitability of accesses from Pampas to powerhouse and dam areas 

 Contractor agrees
to perform and pay for all necessary Works and take all necessary actions so as to guarantee safe transit by the accesses that connect the location of Pampas with the powerhouse and the dam of the Project. Contractor further accepts that it will not
file any claims or requests for additional payments or time extensions of any kind which relate to the maintenance and removal of debris resulting from landslides affecting such accesses and therefore waives and releases any claims and rights it may
have to make, file or prosecute any legal action of any nature to pursue any such claim, with the sole exception of the events occurring when (i) large landslides occur that block a section of an access mentioned on this Section 5;
and (ii) the debris and/or damages caused by such landslides cannot be removed or repaired with the use of the set of equipment detailed below despite Contractor’s reasonable efforts within a period of 10 days from the
date of occurrence of any such event. 
  

	 	i.	1 large excavator (excavadora grande) 

  

	 	ii.	1 large front loader (cargador frontal grande) 

  

	 	iii.	1 large tractor (Tractor grande) 

  

	 	iv.	1 compactionroll (rodillo compactador) 

  

	 	v.	1 grader (motoniveladora) 

  

	 	vi.	6 dump trucks (Camiones volquetes) 

  

	 	vii.	1 tanker truck (Camión cisterna) 

 Only upon the occurrence of events that comply
with the conditions set forth in (a) and (b) above, the Contractor is entitled to an increase of the Lump Sum Price and an extension of time pursuant to Section 20.5 of the Contract. 

The increase of the Lump Sum Price as provided in the previous paragraph will include direct and indirect costs (no overheads) incurred by the
Contractor to restore the safe transit by such access. 
 Contractor declares and guarantees that all Equipment necessary to complete the
Works will be received at the Project site no later than November 30, 2015 and that therefore, after November 30, 2015, the Contractor will not have any need to transport any Materials and Major Items of Equipment to the Project site for
the completion of the Works and that therefore, the Contractor irrevocably waives any right it may have to pursue any claim to extend the Time for Completion or to increase the Lump Sum Price in connection to any delay suffered in the transportation
of Materials and Major Items of Equipment to the Project site after November 30, 2015. 
  
 

 

  
 Page 6 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

	 	5.6	Works on the Imperial—Pampas Access Route. 

 Contractor declares, guarantees and
irrevocably waives its right to that it will not file any claims or requests for additional payments or time extensions of any kind that in any way relate to transit limitations that might affect the Access Route Imperial—Pampas as a result of
works performed by any other person or entity and therefore waives and releases any claims and rights it may have to make, file or prosecute any legal action of any nature to pursue any such claim. Contractor acknowledges and agrees to observe the
following transit times applicable for such Access Route: 
  

	 	i.	Until April 15, 2015: 

  

	 	•	from 12:00 to 13.30 and from 18:00 to 07:00 of every day, for the transit of all kinds of vehicles. 

  

	 	•	from 10:00 to 11:00 from Mondays to Fridays, for the transit of vehicles that transport personnel. 

  

	 	ii.	Starting on April 16, 2015 until December 1, 2015: 

  

	 	•	from 12:00 to 13.00 and from 18:00 to 19:00 of every day, for the transit of all kinds of vehicles. Regarding these timeframes, Parties agree that they will make their reasonable commercial efforts to get authorizations
to extend them, however Contractor agrees and accepts that these timeframes will apply and no claims will be made or asserted in the event that the Parties are unable to extend them. 

 

	6.	Pending tunnel excavation works: Contractor acknowledges and accepts that the amendment to Section 1.1.132 of the Contract provided in Section 3.2 of this Variation No. 5 was agreed based on the
assumption that the portion of the headrace tunnel that is pending to be excavated as of the Execution Date, has rock quality C2. Therefore, Contractor waives and releases any claims and rights it may have to request or demand an extension of Time
for Completion under Section 5.9 of the Contract in connection to the rock quality found in the headrace tunnel unless the following conditions are satisfied: (i) the portion of the headrace tunnel that is still to be excavated requires
support of type D, E, E1 or E2 specified in Exhibit I of the Contract; and (ii) Contractor demonstrates that the part of the tunnel affected by a lower than expected rock quality would cause a delay of the Scheduled Partial Taking Over Dates
and/or Scheduled Final Taking-Over Date as a result of such works having an impact on the critical path identified in the Project Schedule required to be delivered in section 4 of this Variation No. 5. 

 
 

 

  
 Page 7 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

	7.	Security Logistics: Contractor will provide at its own cost and as part of its obligations under the Contract, all food and transport to the military and police personnel that have been assigned to the powerhouse
and dam areas of the Project, up to a maximum number of 32 persons per each such locations. In the event that the number of military and police personnel will exceed the 32 units per location—powerhouse or dam area-, the Contractor will be
entitled to be reimbursed for the additional costs incurred. 

  

	8.	Works on the Substation: 

  

	 	(a)	Expansion and Modification Works. 

 Contractor will perform, as part of its obligations
under the Contract, any and all expansion and modification works to be carried out at the Campo Armiño Substation and shall execute such works in accordance with the terms of the Contract and engineering provided by Owner and developed by
Siemens PTD, at the Contractor’s sole cost. 
  

	 	(b)	Commitments with Third Parties. 

 Contractor declares and guarantees that it will
fulfill and complete, in a timely manner, any and all obligations undertaken with local communities and Electroperu, especially those relating to the pavement within the site of the Campo Armiño Substation. 

 

	9.	Perimeter fence of Campamento Limonal: Contractor will perform all necessary Works to build, as part of its obligations under the Contract and at its sole cost, a perimeter
fence in Campamento Limonal, in accordance with the terms and conditions of Contractor’s letter N° C-AGM-CDA-119-15 dated February 16, 2015. 

  

	10.	Effectiveness: This Variation No. 5 will be in full force and effect as of the date in which the Lenders have expressed their consent in writing to this Variation No. 5 as provided in the Financing
Documents. 

 Immediately upon the Execution Date, the Owner shall submit to the Lenders for consent this Variation No. 5
and give evidence thereof to the Contractor. Upon receipt of Lenders’ position, the Owner must promptly provide a written notice to the Contractor stating that position. 

The Owner will use its best endeavors to ensure that the above conditions are satisfied by 45 days after the Execution Date. 

In the event the Lender’s consent to this Variation No. 5 has not been expressed in writing on or before 45 days from the Execution
Date, Contractor may decide, at its own discretion, to terminate this Variation order No.5, which will become null and void upon written notification thereof by the Contractor to the Owner. 

 
 

 

  
 Page 8 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 Notwithstanding the above, Sections 4, 5.1, 5.2, 5.3, 5.4, 10, 11, 12, 13 and 14 of this
Variation No. 5 shall come into full force and effect immediately upon the Execution Date, provided that the delivery of a new Project Schedule pursuant to Section 4 will not be deemed to be an extension of the Time for Completion until
Section 3 is effective. 
  

	11.	Mutual Concessions: Each Party declares that this Variation No. 5 is the result of mutual concessions granted by each Party in favor of the other pursuant to Article 1302 of the Peruvian Civil Code and has
the purpose of finishing any existing disputes on the subject matter thereof and avoiding any future disputes based on facts or events occurred or known on or before the Execution Date of this Variation No. 5. 

 

	12.	Legal Nature: In accordance with article 1302 of the Peruvian Civil Code, Parties hereby irrevocably agree that this Variation No. 5 has the effects of a transacción extrajudicial.

  

	13.	Other Terms and Conditions: Except as otherwise specifically provided in this Variation No. 5, all other terms and conditions of the Contract shall remain in full force and effect. 

 

	14.	Execution Date. On March 27, 2015, by its countersignature below, both Parties hereby agree to the terms and conditions contained in this Variation No. 5. 

 

													
	Cerro del Aguila S.A.	  		  	Cerro del Aguila S.A.
					
	By:	  	 /s/ Javier Garcia
	  		  	By:	  	 /s/ Rosa María Flores Araoz

		  	Name:	  	 Javier Garcia 
	  		  		  	Name:	  	Rosa María Flores Araoz
		  	Title:	  	Director	  		  		  	Title:	  	
		  	Date:	  	27/3/2015	  		  		  	Date:	  	27.03.2015

  

													
	GyM S.A.	  		  	GyM S.A.
					
	By:	  	 /s/ Ricardo Canturin Cano
	  		  	By:	  	 /s/ Renato Rojas

		  	 Name:
 Title:
	  	 Ricardo Canturin Cano

Representante Legal
	  		  		  	Name: Title:	  	 Renato Rojas
 Gerente General

		  	Date:	  	27.03.2015	  		  		  	Date:	  	27.03.2015

  
 

 

  
 Page 9 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 Astaldi S.p.A. 
  

					
	By:	 	 /s/ Matteo Bordin

		 	Name:	 	Matteo Bordin
		 	Title:	 	
		 	Date:	 	27/03/2015

  
 

 

  
 Page 10 of 11 

 Variation No. 5 to the Turnkey Engineering, Procurement and Construction Contract entered into by Cerro del
Aguila S.A. and Astaldi SpA and GyM S.A. dated as of November 4, 2011 
  

 ANNEX 1 

As specified in the aforementioned Section 3.5, the following items may be included in the Punch List at the Partial Taking Over Dates and/or the Final
Taking - Over Date: 
  

	 	•	 	Completion of HVAC (Heating Ventilation and Air Conditioning) 

  

	 	•	 	Completion of Fire-detection and Fire-fighting Systems. The correspondent service will be limited to guarantee essential safety features necessary for starting operations (For instance deluge for transformers and
extinguishers will be guaranteed). 

  

	 	•	 	Completion of Lighting System 

  

	 	•	 	Completion of Maintenance Shops. 

  

	 	•	 	Completion of Compressed Air System. 

  

	 	•	 	Completion of MCC (Motor Control Center) for Balance of Plant. 

  

	 	•	 	Completion of Control System. 

  

	 	•	 	Provision of Spares Parts. 

  

	 	•	 	Completion of O&M (Operation and Maintenance). 

  

	 	•	 	Completion of As-built and Construction Documents. 

 Under the terms defined in Section 1.1.121 of the
Contract and as mentioned in Section 3.5 of this Variation Order No. 5, the above items will not constitute any kind of defect or deficiency as they not affect the operability, safety or mechanical and electrical integrity of the Plant. 

 
 

 

  
 Page 11 of 11

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