1E9Ct5D

(ii) the penalties applicable to the Public Administration and private partner in case of breach ofcontract, established in a manner that is proportionate to the seriousness of the fault committed and tothe obligations assumed;(iii) the sharing of risks between the parties, including those concerning acts of God, force majeure,factum principes and an area beyond extraordinary economic control;(iv) the types of remuneration and adjustment of contractual amounts;(v) the mechanisms for the preservation of the modernity of the service rendering;(vi) the facts that characterize the monetary default of the public partner, the regularization methodsand term and the method of enforcement of guarantees, when applicable;(vii) the objective evaluation criteria of the performance of the private partner;(viii) the offering, by the private partner, of execution guarantees that are sufficient and compatiblewith the onus and risks involved, with due regard to the pertinent legal provisions;(ix) the sharing, with the Public Administration, of the effective economic gains of the private partner,resulting from the reduction of the credit risk of the financing used by the private partner; this provisiondemonstrates the real partnership, in which, in the case in question, both parties will benefit from anygains that the private partner obtains from its financing entity;(x) the inspection of reversible property, in which the public partner may retain payments to the privatepartner, in the amount necessary to cure any detected irregularities.Optionally, the agreements may additionally determine:(i) the requirements and conditions concerning the transfer of control of a special purpose company(SPC) to its financing entities, with the objective of promoting its financial restructuring and ensuringthe continuity of the service rendering;(ii) the possibility of the issuance of a pledge on behalf of the financing entities of the project in relationto the pecuniary obligations of the Public Administration, which procedure is of great interest to thefinancing entities;(iii) the legality of the financing entities of the project to receive compensation for the earlyextinguishment of the agreement, as well as payments made by the guarantor funds and state ownedcompanies of PPPs, which provision is also of interest to the financing entities.67