Annex IV: Specific provisions applicable to purchases made by Subsidiaries of ENDESA resident in SPAIN

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1 Supplies Annex IV: Specific provisions applicable to purchases made by Subsidiaries of ENDESA resident in SPAIN 1. Object The SUPPLIER undertakes to accept the expansions, modifications and reductions in the scope of the Contract, at the agreed prices, provided that they do not represent, as a whole, an increase or decrease of over 20% of the amount of the Contract. The new delivery period, where applicable, shall be established by common agreement between both Parties, at the justified proposal of the SUPPLIER If the expansions, modifications or reductions that ENDESA proposes, motivated by a justified reason, represented as a whole an increase or decrease of more than 20% of the amount of the Contract, the SUPPLIER can accept or reject them, but in this last case, ENDESA will have the right to cancel the Contract. 2. Financial conditions Billing In the event of loss of the invoice, the SUPPLIER can issue a duplicate provided that this is also original and states therein the legend "Duplicate due to loss of the original All invoices and, where applicable, their supporting documentation, and unless the Contract indicates otherwise, should be sent to the following address: ENDESA Dirección de Tesorería Subdirección de Facturación, Cobros, Pagos y Planificación Ribera del Loira, MADRID SPAIN - 1 -

2 2.2. Payment conditions With the agreement of ENDESA on compliance with contract terms, invoices received will be paid within the period specified in the special conditions of the Contract, in accordance with current legislation In case of default in payment by ENDESA for reasons solely attributable to it, shall pay the SUPPLIER an additional amount for interest on late payments, in accordance with current legislation. 3. Financial guarantee The SUPPLIER shall establish, unless agreed otherwise and before issue of the first invoice, a financial guarantee for ENDESA by the delivery of a first demand abstract guarantee (according to the model found at the end of this Annex), subject to Spanish legislation and executable in Spain, granted by a Spanish bank or saving bank of recognized solvency, or by the Spanish branch of the bank should it be foreign, for an amount of 10 % of the total amount of the Contract and its reviews, expansions and works due to administration, to respond to compliance with all the obligations arising therefrom, including the compensations or penalties attributable thereto The guarantee constituted by the SUPPLIER shall expire thirty (30) calendar days after maturity of the Guarantee Period or, where applicable, of the Final Acceptance, and in consequence, it will be refunded, after a request in writing from the SUPPLIER and once ENDESA has carried out the applicable discounts and checks In the cases where the SUPPLIER does not present the guarantee within the indicated periods, and without prejudice to any other applicable actions, ENDESA can choose to terminate the Contract or suspend its effects until presentation of a guarantee that is accepted by ENDESA as well as accepting other equivalent guarantees offered by the SUPPLIER. In any case, ENDESA will be authorized to consign in accordance with law for its submission to the SUPPLIER as soon as it meets its obligation of providing the established guarantees, payments it owes to the SUPPLIER until completing 10% of the total amount of the Contract, including the payments of price reviews, expansions and works due to administration, and without prejudice to the power to terminate the Contract. 4. Delivery and acceptance conditions The SUPPLIER must issue the corresponding Construction Work or Service Management and Final Certificates when mandatory for the legalization of the works or services executed

3 5. Processing of personal details In the event that the execution of the Contract requires that the SUPPLIER accesses, as Processing manager, different personal data files for which ENDESA is responsible, that stipulated in this section shall be applicable Said files processed and managed by the SUPPLIER and the data and information contained therein will be and will remain under ENDESA s responsibility The SUPPLIER is constituted, for the purposes of the Contract, as Processing Manager in accordance with the current Personal Data Protection regulations (LOPD), and undertakes to comply with its obligations as such, not considering this supply of data by ENDESA as a communication of personal data for the purposes of the LOPD The SUPPLIER, as Processing Manager, declares and guarantees: a) That the data processing shall be carried out in accordance with the criteria, requirements and Specifications established in the Contract and, failing this, with the instructions given to it at any time by ENDESA. b) That the personal data the Processing Manager has access to as a consequence of the provision of the services object of the Contract shall not be applied or used for a purpose other than that which appears therein. c) That it will directly return to ENDESA the personal data that have been subject to processing, in a period of fifteen (15) calendar days from the termination date of the service in accordance with that stipulated in the Contract. d) That it will destroy any document, medium or copy of the personal data that have been subject to processing by virtue of that stipulated in the Contract and which it was not possible to return, for different reasons, in the terms stated in the previous section. However, the data will not be destroyed when there is a legal provision that demands its conservation. In this case the SUPPLIER shall conserve said data, duly blocked. e) That it will not communicate, or assign to other individuals or corporate bodies, the personal data supplied to it due to the provision of the services object of the Contract. f) That it will adopt, when processing the data supplied by ENDESA, the necessary technical and organizational methods, required by section 9 of the Spanish Data Protection Act and, especially, by Royal Decree 1720/2007, of 21 December, approving the Regulation implementing - 3 -

4 Organic Law 15/1999, or by the regulations which, where applicable, may replace it, as well as those imposed by the current legislation at any time, so that it guarantees the security of the personal data and avoids its alteration, loss, processing or unauthorized access, bearing in mind the state of the technology, the nature of the data stored and the risks to which they are exposed, whether from human action, the hardware or natural causes. The measures shall cover, by way of example, hardware, software, recovery procedures, backup copies and personal data extracted in the form of screen display or print outs. g) That if any international data transfer was necessary for the provision of the service, the SUPPLIER undertakes to inform ENDESA in advance and with sufficient notice so that it can request the corresponding authorizations, without which the SUPPLIER cannot make said transfers Without prejudice to that stipulated in letter (e) above, in the case that ENDESA should authorize the subcontracting of certain services in favour of third parties, which shall also imply that these third parties had to access the personal data included in the files affected by this section, the SUPPLIER undertakes that, before said subcontracting, a contract is signed jointly by the Parties and the subcontractors where the latter expressly accept that they will hold the position of Processing Managers with respect to the File Manager, with the same precautions contained in the present section, as well as all those obligations arising from the data protection regulations and that are typical of their role as Processing Managers as a consequence of the Contract content The SUPPLIER undertakes to hold ENDESA harmless from any claims that may be brought (in particular in the case of any type of proceedings brought by the Data Protection Agency), due to their breach, as Processing Manager, of the Personal Data Protection legislation, and accepts to pay the amount which, as sanction, fine, compensation, damages and interests ENDESA may be ordered due to said breach To comply with the duty of care as regard personal data protection, ENDESA reserves the right to perform, whenever it considers appropriate, audits that allow verifying the degree of compliance of the security measures required by Royal Decree 1720/2007 as established in paragraph f) of point 4.4. In accordance with current legislation, the SUPPLIER shall perform a biennial audit that guarantees compliance with Royal Decree 1720/2007 of 21 December. For these purposes it may seek the collaboration of ENDESA. ENDESA can request a copy of the audit performed from the SUPPLIER and the SUPPLIER must provide a copy of this to ENDESA

5 5.8. Legal-technical obligation in protecting information. The SUPPLIER shall comply with the necessary security measures, whether due to the existence of legislation or at the request of ENDESA abiding by the classification made of the information being handled. In this sense, ENDESA reserves the right to carry out, whenever it considers appropriate, audits that enable verifying the degree of compliance with the defined security measures. 6. Legal-Labour obligations, of Occupational Safety and Health The SUPPLIER shall comply with the applicable labour regulations, legal or conventional, and the Social Security provisions with respect to the workers in its charge. For said purpose, ENDESA shall control compliance with the legal-labour obligations stipulated in current legislation, and the SUPPLIER should provide the following documentation at each one of the points indicated: A. Documentation that must be submitted together with the bids: 1. Photocopy of the CIF (Corporate tax identity no.) and MEMORANDUM OF ASSOCIATION if a corporate body, or NIF (tax identity no.) if an individual entrepreneur 2. SUPPORTING DOCUMENTATION of having implemented an ISO 9000 or quality system, where applicable. 3. SUPPORTING DOCUMENTATION of owning the industrial or intellectual property rights, in those cases where applicable. 4. CERTIFICATION STATING THERE IS NO MONEY OWED, issued by the managing body of the SOCIAL SECURITY. 5. CERTIFICATION of being up-to-date in payment of all taxes owed due to company configuration and its activities, expressly including the IAE (Tax on Business Activities) and the SUBSIDIARY RESPONSIBILITY CERTIFICATE (Contractors and Subcontractors Certificate) issued by the Tax Agency of being upto-date in payment of its tax obligations by virtue of General Tax Act 58/2003 of 17 December. 6. CIVIL LIABILITY AND THIRTY PARTY DAMAGE INSURANCE. This documentation should be submitted by the bidder together with its bid, except in the event of having recently participated in any other tender for ENDESA, it is in force and complies with that required in the new tender. In said case, it shall not be necessary to resend it, but the - 5 -

6 bidder must indicate the bid reference with which it was previously submitted to ENDESA. Likewise, if the SUPPLIER has provided this documentation through any system that ENDESA has for said effect, it shall not be necessary to provide it again, and in this case should indicate the system used. B. Contracting of Temp Agencies. When the contracting of the works is carried out with Temp Agencies, they must present the documentation detailed below together with the bids, in addition to the preceding documentation: 1. Certificate issued by the Provincial Employment and Social Security Office, certifying the administrative authorization granted to the Temp Agency to make available to ENDESA, on temporary basis, workers hired by it. 2. Certificate issued by the Provincial Employment and Social Security Office, certifying the financial guarantee required by Act 14/1994 on Temp Agencies. C. Documentation that must be submitted before signing the Contract: 1. Sufficient POWER OF ATTORNEY, registered in the Companies Register and not revoked, of the person or persons who are going to sign on behalf of and on the account of the SUPPLIER. A photocopy of the power of attorney shall remain in ENDESA s possession. 2. DOCUMENTATION certifying ownership of the corresponding ADMINISTRATIVE AUTHORIZATIONS or LICENCES, when the activity contracted with ENDESA so requires. 3. Document of professional risks coverage with the employer s mutual insurance company or with the National Social Security Institute (INSS), as relevant, and self-insurance information, where applicable. 4. Specific safety and health plan of the Construction Work or Service contracted which covers: general and specific risks, risk assessment, protection measures (both collective and individual), preventive planning of the works to perform and work procedures. 5. CERTIFICATE of registration in the ACCREDITED COMPANIES REGISTER (REA) dependent on the labour authority where the company s registered address is located, if work is going to be performed in construction work

7 6. Appointment of the SUPPLIER s INTERLOCUTOR with the main company. 7. Appointment of the SUPPLIER S OCCUPATIONAL SAFETY AND HEALTH MANAGER. This documentation must be submitted except in the case of having recently participated in any other tender for ENDESA, it is in force and complies with that required in the new tender. In said case, it shall not be necessary to resend it, but it must indicate the tender reference to which it was sent. Likewise, if the SUPPLIER has provided this documentation through any system that ENDESA has for said effect, it shall not be necessary to provide it again, in this case it should indicate the system used. D. Documentation that must be submitted after signing the CONTRACT and before the execution of the works: 1. Visit Book. 2. NOMINAL LIST OF WORKERS of the SUPPLIER company which will provide services in the contract execution, with specification of professional category, Spanish national identity card (DNI), Social security affiliation number, type of employment contract and duration thereof, as well as of those subject to conditions of specifically hazardous nature in accordance with R.D. 39/97 and R.D. 1627/ REGISTRATION IN THE SOCIAL SECURITY of said workers. 4. RESIDENT CERTIFICATE AND WORK PERMIT in the case of services provided by non-residents in the European Economic Community. 5. If the workers belong to a member state of the European Union, Form E-101 certifying that the worker continues to be subject to the social security legislation of his country of origin during displacement to another member country of the European Union, as well as the valid Healthcare card and Form E-102 (in displacements over two months). 6. If the workers do not belong to a member state of the European Union, Authorization from the Social security of each country for healthcare in Spain and bilateral agreement document between the social security systems of both countries. 7. Certificate of theoretical and practical training sufficient for the type of activity to be performed

8 8. Certificate of delivery of personal protection equipment to the workers, when made necessary by the tasks to be performed. 9. Fitness-for-work certificate, when made necessary by the tasks to be performed. 10. Certificate of having received sufficient information on the general and specific risks in the workplace where the activity will be performed, and certificate of having notified this risk information to its workers. 11. Copy of the communication of having complied with the obligations of information to its workers and to the General Treasury of the Social Security, with the requirements established in section 42.5 of the Workers Statute. 12. Communication to the workers representatives of signing the contract in the terms established in section 42.4 of the Workers Statute. 13. Declaration of the SUPPLIER of having complied with the obligations of information to its workers and to the General Treasury of the Social Security with the requirements established in section 42.3 and 5 of the Workers Statute. 14. In the case of Assignment or Subcontracting, the supporting documentation of the prior acceptance of the contractual conditions by the assignee or subcontractor, as stipulated in the present General Contracting Conditions. 15. Rest of the documentation required as indicated in the General Contracting Conditions and in the present annex. This documentation shall be accredited with ENDESA, at least 24 hours before the start of the works contracted, with the exception of the Social Security registration, which can be presented on the same day the works start. ENDESA or its Representative for the Construction Work or Service shall expressly indicate to the SUPPLIER what Unit the documentation must be submitted to. E. Documentation that must be submitted during execution of the Contract: Irrespective of the periods established below, all related documentation must be available to ENDESA when it requires

9 When it occurs: 1. Arrivals and departures among the personnel performing the provision. They shall immediately inform after it occurs or at most in the following working day. 2. Copy of the notification of opening the Work Place to the Employment Authorities, when legally required (as the works last more than one month). 3. Immediate communication in the event of accidents, incidents and risks to ENDESA s Interlocutor with the SUPPLIER company. 4. In the case of subcontracting, document wherein the subcontractor undertakes to comply with the obligations arising from the contract as if it were the main SUPPLIER. Monthly: The following information will be sent to Endesa s Joint Safety and Health Service: 1. Total number of hours worked by the personnel of the SUPPLIER company and its subcontractors. 2. Total number of accidents (distinguishing those which have led to leave and those which have not) and incidents of the SUPPLIER and its subcontractors in relation to the Contract. 3. Number of electrical accidents and incidents of the SUPPLIER and its subcontractors. 4. Number of mining accidents and incidents of the SUPPLIER and its subcontractors. 5. Number of gas accidents and incidents of the SUPPLIER and its subcontractors. 6. Number of fatal accidents of the SUPPLIER and its subcontractors. 7. Total of working days lost for any cause of the SUPPLIER and its subcontractors. Quarterly: 1. Certification stating nothing is owed from the previous month issued by the managing entity of the Social security

10 6.2. Incompatibilities. 2. Statement, where applicable, of power of attorney of the SUPPLIER certifying that its subcontractors are up-to-date with its wage, Social security and Occupational Safety and Health obligations. 3. Forms TC1 and TC2 of those workers who have provided services in executing the Contract. 4. Statement of the SUPPLIER of being up-to-date with its wage payments. 5. Copy of the previous documentation required of the SUPPLIER, from the subcontractor. This documentation shall be accredited in the ENDESA Centre where the works contracted are performed. ENDESA or its representative for the work or service shall expressly indicate to the SUPPLIER which Unit the documentation must be submitted to. In order to execute the object of the Contract, the SUPPLIER undertakes to not use the services of working persons or those people who are no longer working due to early retirement or retirement in the companies of ENDESA, whether provided in labour or commercial regime, either personally, through an entity with which it had labour, commercial or property relations or through third parties, unless expressly authorized by ENDESA. Likewise, no working person, or person in early retirement or retired in the companies of ENDESA can be director or majority shareholder of the SUPPLIER, unless express authorization is given by it. Breach of any of these obligations shall be just cause for termination of the Contract General occupational safety and health provisions for the acquisition of material and/or equipment and for contracting works and services Compliance with regulations. The SUPPLIER shall comply with the occupational safety and health regulations established by Act 31/ of November, its implementing or complementary provisions and all other current or conventional legal rules, containing prescriptions regarding the adoption of preventive measures in the employment area or which may arise in said area

11 Organization of the work. The work organization and the safety organization required by the acquisition of materials and/or equipment is the SUPPLIER s obligation. It will appoint a responsible party from its organization, of proven capability, for the purposes of its management, supervision and coordination, where applicable, with responsible parties from other SUPPLIERS, and with ENDESA personnel with responsibility in the organization of work and occupational safety and health, including personnel from ENDESA s Joint Safety and Health Service Safety and health organization. The SUPPLIER will establish the safety and health organization, including safety and health services, safety and health resources and healthcare, required by legal provisions, agreed in coordination of activities or where prudence is advised depending on the risks arising from the work, in order to avoid occupational accidents SUPPLIER s personnel. The SUPPLIER shall guarantee the safety and protection of the workers in its service in all aspects related to the work. For said purpose and within the framework of its exclusive responsibility, it shall adopt the necessary risk assessment measures, safety and health planning, training and information on risks, action in the event of emergency or of serious and imminent risk and of supervision of the health of the personnel in its service and all other necessary measures Coordination of activities. In the case that the Contract entails the performance of work in ENDESA s premises, the SUPPLIER shall draft a Safety and Health Plan for this purpose. Said Safety and Health Plan shall include the general and specific risks, the risk assessment, the protection measures (both collective and individual), the preventive planning of the works to perform and the work procedures. When several SUPPLIERS are involved in performing these activities, each SUPPLIER shall cooperate in applying the Occupational Safety and Health regulations, assuming their obligations and being liable for their breaches. ENDESA shall establish the resources and measures of business activity coordination it deems convenient so that the SUPPLIERS receive suitable information and instructions in relation to the existing

12 risks and with the corresponding protection and safety and health measures, as well as on the emergency measures to be applied, to inform its respective workers. Likewise, each SUPPLIER shall inform ENDESA of the risks arising from the activity to be performed, that may affect own or outside workers or third parties, as well as of the safety and health measures to adopt Particularly hazardous activities. In the event that the installation by the SUPPLIER of the material or equipment supplied or the performance of the construction work or service to ENDESA entailed the performance of particularly hazardous activities, with exposure of the workers to any of the risks defined in Annex I of R.D. 39/97 of the "Safety and Health Services Regulation", or where applicable Annex II of the R.E. 1627/97 on "Safety in Construction Works", ENDESA can request from the SUPPLIER all data on health supervision of its workers legally required, to ensure compliance with Occupational Safety and Health legislation. In particular and when the previous circumstances are present, the SUPPLIER shall provide ENDESA, before the start of the installation of the material or equipment supplied, the following documentation: Nominal list of the personnel subject to the indicated risks and the date of last medical examination. Medical service which has performed the examination. Classification of "suitable for the installation works indicated. Likewise, and in compliance with that established in section 32 bis of the Occupational Safety and Health Act it is mandatory to have the Safety and Health Resources necessary for supervision of compliance with the preventive activities Communication of accidents, incidents and risks. Whenever an accident occurs in its activities, even when there are no victims, the SUPPLIER has the unavoidable obligation of notifying the responsible party in ENDESA for the Contract, completing the accident declaration forms provided by ENDESA or its own, otherwise. Likewise, when required by ENDESA, the SUPPLIER shall undertake a complementary investigation reflecting the causes of the accident and the safety and health measures adopted. Likewise, the SUPPLIER shall notify ENDESA of the serious incidents occurring when performing the activity object of the Contract

13 When ENDESA starts proceedings to investigate the cause of an accident, the SUPPLIER will be obliged to give maximum collaboration, providing all data and formalities requested of it. All observations related to Occupational Safety and Health made by the Responsible party of ENDESA in the Construction Work or in the Facility, must be immediately dealt with by the personnel it is addressed to and when it was due to non-observance of already established rules or prescriptions, a sanction may be given which should be proportional to the seriousness of the breach committed. With a view to permanent improvement of work and safety conditions, the personnel participating in the works contracted should notify their superiors of the suggestions they consider convenient. Said suggestions shall be delivered, by the communication procedure established in each case, to the Responsible party of ENDESA for the construction work or service. The actions to be taken resulting from the information shall be decided by the Responsible party of the SUPPLIER and, if necessary, they will be subject to the approval of the Responsible party of ENDESA for the Construction Work or Service Training. The SUPPLIER shall guarantee and, where applicable, certify the appropriate theoretical and practical training of the risks inherent to the activity to be performed and the training of its personnel in Safety and Health and First Aid, informing of the actions carried out in this sense to the Responsible party of ENDESA for the delivery of the materials and/or equipment, and/or the construction work or service Particular safety and health provisions for materials and equipment Safety conditions. The SUPPLIER is obliged to comply with section 41 of the Occupational Safety and Health Act regarding the safety conditions of the machinery, equipment, products and tools it supplies to ENDESA. The SUPPLIER shall guarantee that the work machinery, equipment and tools supplied to ENDESA are not a source of danger for the worker, provided that they are installed and used in the conditions, form and for the recommended purposes. The SUPPLIER shall provide ENDESA with the information indicating the correct form of its use by the workers, the additional safety and health measures that should be taken and the occupational risks the materials and equipment supplied entail, both in their normal use and in unsuitable handling or use

14 Acquisition of machinery. For machinery acquisition, the SUPPLIER shall give ENDESA guarantee of compliance with the requirements affecting it, contained in Directive 98/37/EC on the approximation of the laws of the Member States relating to machinery. (Shall be replaced from 29 December 2009 by Directive 2006/42/EC)). The Instructions Manual for the use of the machinery or equipment the SUPPLIER supplies to ENDESA shall include all specifications that said R.D. 1435/92 on "machines" establishes as necessary and in particular, the instructions so that the following can be carried out with a permitted risk level: commissioning, use, maintenance, installation, dismantling, adjustment, maintenance (conservation and repair), training instructions and the contraindications of use of the equipment Acquisition of chemical substances and products. The SUPPLIER is obliged a supply ENDESA with correctly packaged and labelled chemical substances and products, to enable their storage and handling in safe conditions and with clear indication of the content and the risks for the safety and health of the workers entailed by their storage or use. When the SUPPLIER supplies ENDESA with chemical products that may have, depending on their composition and use characteristics, risks for the workers, and in all cases, if said products are classified in accordance with regulation as toxic, harmful, inflammable, explosive, corrosive, carcinogenic, radioactive, etc., it shall inform ENDESA of the risks their use and application entails, as well as on the safety and health measures for their elimination or control. When these materials are considered hazardous, in accordance with current legislation, the SUPPLIER shall notify ENDESA of who is the Safety Councillor in order to coordinate the activities aimed at protecting people s safety and health. The SUPPLIER is obliged to inform ENDESA in the case of acquisition of material which contains metal dust, organic dust, asbestos, silica or other substances that may cause particularly hazardous risks to the workers or to the facilities. The SUPPLIER shall guarantee ENDESA compliance with R.D. 664/97 on the "Protection of workers from risks related to exposure to biological agents during work", when it supplies preparations or substances that may involve said risks. The SUPPLIER shall guarantee ENDESA compliance with R.D. 665/97 on the Protection of workers from risks related to exposure to

15 carcinogenic agents during work", if it supplies ENDESA with substances or preparations classified as carcinogenic agents or that the processes referred to in said Royal Decree should be applied in ENDESA by virtue of the acquisition of materials and/or equipment to be made Acquisition of installations, apparatus and instruments. When the SUPPLIER supplies ENDESA with installations, apparatus and instruments, it shall guarantee that they are in accordance with Industrial and Occupational Safety and Health Legislation and shall inform ENDESA of the risks entailed by their use and application, as well as on the safety and health measures for their elimination or control. In the case of acquisition of Personal Protection Equipment (PPEs) and collective protection equipment, the SUPPLIER shall guarantee ENDESA that they are effective, provided that they are installed and used in the conditions and in the form recommended for them. The SUPPLIER shall inform ENDESA of the type of risks they are aimed at, the protection level against them and the correct form of their use and maintenance and, in general, of all obligations specified in R.D. 773/97 of "Use of PPEs Other specific provisions. ENDESA can demand from the SUPPLIER, depending on the characteristics, the acquisition of materials and/or equipment, the organization and the preventive approaches (Plans, Standards, Safety procedures, etc.) and the coordination measures legally required or considered convenient to guarantee safety in all phases of its delivery of materials and equipment. As a consequence of the above, ENDESA can demand from the SUPPLIER compliance with other specific Occupational Safety and Health Provisions, which complement, replace or optimize the previous requirements Specific safety and health provisions for contracting construction works and services General. Unless ENDESA gives it exemption from this, the SUPPLIER shall send a Responsible party for its organization with powers to organize and prepare its implementation to the place of the Construction Work or Service provision, with sufficient notice

16 The Responsible party of the SUPPLIER in the ENDESA Construction Work or Facility shall liaise with the Responsible party in ENDESA or person to whom it is delegated, for the purposes of coordinating the works so that they adapt to the overall system, organization and programming of the Construction Work or Service ENDESA has. The Responsible party of ENDESA in the Construction Work or in the Facility shall have permanent contact with the SUPPLIER collaborating for the suitable application of the safety measures in all the works. For its part, and to contribute to that same mission, the organization of Safety in the Construction Work or in the Facility established by the SUPPLIER shall be in close relation to the Joint Safety and Health Service of ENDESA. The safety organization of the SUPPLIER shall take special care that its personnel and that of the subcontractors comply with the Occupational Safety and Health standards contained in its own Safety and Health Plan for the construction work or service contracted. Unless indicated otherwise, before starting the works, the SUPPLIER shall submit a Safety and Health Plan to ENDESA for its knowledge. This shall be especially studied for the Construction Work or Service contracted. Should ENDESA not agree with said Plan, the SUPPLIER must modify it, the Contract not being effective until modifications have been made in accordance with ENDESA s indications. By way of general guidance, the specific Safety and Health Plan for the works or services contracted that the SUPPLIER must submit to ENDESA will have at least the following sections: Object and scope of application. Construction works or services to be performed: o Description of the construction work or service. o Risks foreseen: identification and, if it is not possible to eliminate them, their assessment. o Particularly hazardous risks. o Safety and health measures and protections. o Safety and health planning of the works to be performed

17 Place where the Construction Work or Service is performed: o Description of environmental conditions. o Risks foreseen: identification and, if it is not possible to eliminate them, their assessment. o Existence of Particularly hazardous risks. o Safety and health measures and protections. Working methods to be used in performing the Construction Work or Service: o Risks foreseen: identification and, if it is not possible to eliminate them, their assessment. o Particularly hazardous risks. o Methods for particularly hazardous risks. o Safety and health measures and protections. Safety organization in the Construction Work or Facility. Applicable safety regulations, especially internal procedures. The review by ENDESA of the SUPPLIER s Safety and Health Plan, does not exempt it from its legal Occupational Safety and Health obligations. The SUPPLIER is obliged to inform its personnel, before the start of the works, on the content of the risks analysis for the different works which its Safety and Health Plan includes. In this sense, each worker shall be informed of the description of the work to be performed, its most relevant phases described in sequential order, the risks identified in each phase and the safety and health and individual and collective protection measures that should be adopted, as well as of the complementary safety instructions required. This action shall be accredited in writing to the Responsible party of ENDESA and it shall indicate the terms dealt with, the teaching technical personnel and signature of the attending personnel Actions during the performance of the Construction Work or Service. The SUPPLIER shall observe at all times and ensure that its personnel observes all occupational safety and health rules and measures required by legal provisions or advised by prudence, to avoid accidents from occurring, damages caused to third parties or penal and administrative infringements committed. The SUPPLIER

18 shall be solely and directly responsible for all of this, even though ENDESA has the intervention and powers acknowledged in this document. In particular, the SUPPLIER undertakes to comply with all occupational safety and health measures and coordination of business activities reported by ENDESA either in the technical specifications or conditions of the call for tender, or in the Contract or Order, or in any other document prior to start of the work and/or during the course thereof. The SUPPLIER s responsible party in the Construction Work or in the Facility shall take great care in complying with everything that affects Safety and Health at work and preservation of the environment. It is responsible for the discipline and order of its personnel and, where applicable, for that of its subcontractors if there are any. Furthermore, for each phase of the Construction Work or Service, it shall previously analyse and study the work to be performed to detect their risks and adopt the suitable measures to eliminate them or control them and shall order an investigation into the accidents and incidents arising, the facts and the causes, proposing the measures that eliminate, reduce and control them Organization of safety on site. The SUPPLIER shall establish the Safety organization required by the construction work, so that there is always a party responsible for safety thereof in charge of the works and whose information and qualifications in Occupational Safety and Health must be disclosed to ENDESA before the start of the works or before establishing the delegation of duties due to absences or staff changes Coordination of activities. When, for the performance of the Construction Work or Service contracted, the SUPPLIER must perform activities in the presence of or with other SUPPLIERS, it must comply, insofar as it affects the Construction Work or Service contracted, with sections 24 (and in R.D. 171/2004 it implements) and 41 of the Occupational Safety and Health Act, for the coordination of business activities and the information on risks to the workers Application and monitoring of the Safety and Health Plan. Relations between the SUPPLIER and ENDESA, with respect to the application and monitoring of the Safety and Health Plan, shall be

19 governed by the Occupational Safety and Health legislation applicable at any time and in any applicable circumstances and which advise the practice and experience in accordance with the characteristics of the Construction Work or Service to be provided. For this purpose the SUPPLIER undertakes to collaborate with ENDESA to the reasonably possible extent for protection of the integrity and health of the workers. In this way: o The SUPPLIER shall provide ENDESA with the name of the person in charge of safety for each job, as well as his/her training in this regard. o The SUPPLIER shall perform a monthly inspection of the safety equipment and material, including platforms, scaffolds, protections, equipment and material lifting accessories, etc. It shall submit a detailed report on this to ENDESA. This report shall be submitted at the start of the works and on monthly basis throughout the life of the Contract or Order. The tools and the work equipment used shall comply with the corresponding safety standards, in particular R.D. 1215/97 on "Use of Work Equipment ". If necessary, the aforementioned working conditions control procedure can be revised by ENDESA Particularly hazardous activities. When the Construction Work or Service contracted entails the performance of activities such as: o Works at a height; o Mining, excavation or earthmoving works; o Works that require use of explosives; o Activities using high risk chemical products; o Works with electric risks; o and in particular, for the particularly hazardous activities, defined in Annex I of R.D. 39/97 "Safety and Health Services Regulation" or when applicable, in Annex II of R.D. 1627/97 on "Minimum Safety and Health Provisions in Construction Works", the SUPPLIER shall define in the Safety and Health Plan for the

20 Construction Work or Service stated above, the safety and health treatment which shall be given in the construction work to said activities and risks, and, shall, in all cases, comply with all regulatory prescriptions and Royal Decrees which affect the particularly hazardous risks of the activity contracted Other specific provisions. A. Inspection and maintenance works. When Construction Works or Services are contracted which include maintenance activities to be typically performed in generation or distribution centres (mechanical and electrical maintenance of facilities, industrial cleaning, building cleaning, etc.), ENDESA shall require the SUPPLIER to present, before starting the works, a Safety and Health Plan for the performance of said works. In said plan the SUPPLIER shall comply as relevant with the requirements that appear in sections 24 (and R.D. 171/2004 which implements it) and 41 of the Occupational Safety and Health Act, as well as with that specified in this document for particularly hazardous Works. When the SUPPLIER is going to participate in periodic Inspections and Maintenance works, in ENDESA facilities, it will be required to comply with a "Safety and Health Plan and Coordination of activities" (Safety and Health Plan for Group Inspections, for the Facility Maintenance, etc.) which will affect the different SUPPLIERS which participate in said works. ENDESA shall inform the SUPPLIER of the Safety standards and specifications it must comply with within said Plan. This is irrespective of compliance with the Occupational Safety and Health legislation to which it is obliged. B. Construction Works. Application of R.D. 1627/97. When the Construction Work or Service is affected by R.D. 1627/97 on "Minimum Safety and Health Provisions in Construction Works", the SUPPLIER shall comply with all requirements contained therein as applicable to it. ENDESA shall include the mandatory Safety and Health Study in the call for tender. In application of the Safety and Health Study, the SUPPLIER shall prepare a Safety and Health Plan, which must be disclosed to ENDESA before the start of the works. C. Temp agency. When ENDESA contracts Construction Works or Services wherein workers participate on a temporary basis or determined duration, as

21 well as personnel from Temp Agencies, these workers must enjoy the same Safety and Health protection levels as the other ENDESA workers where the works are being performed. Bearing this in mind, when workers from Temp Agencies take part in the Construction Work or Service, the SUPPLIER shall comply with section 28 of the Occupational Safety and Health Act in relation to the duty of protection of the Safety and Health of said workers. ENDESA shall inform, in particular, the Temp Agency of the risks their workers will be exposed to, the need for certain professional qualifications or skills, the requirement of special medical controls or the existence of specific risks in the job to be filled. The SUPPLIER shall guarantee that the workers have sufficient and suitable training for the Construction Work or Service to be provided. D. Self-employed workers. Self-employed workers under a service level contract shall be considered as entrepreneurs for the purposes of application of the Occupational Safety and Health Regulation. ENDESA shall demand from them compliance with the suitable Safety Plans, Standards and Procedures for the activity they are going to perform. E. Transport of hazardous goods When the SUPPLIER, in execution of the Contract, must transport materials considered hazardous, according to current legislation, it must notify ENDESA who its Safety Councillor is, in order to coordinate the activities aimed at protecting people s safety and health. F. Repairs of equipment owned by ENDESA. The SUPPLIER undertakes to repair the equipment complying with the safety requirements included in the equipment repair and maintenance manuals that ENDESA will provide it with. G. Complementary specific provisions. Depending on the characteristics of the Construction Work or Service to be provided, the safety and health organization and approach (Plans, Standards, Safety Procedures, etc.), ENDESA can demand from the SUPPLIER the coordination measures legally required of it or which it considers convenient to guarantee safety in all phases of the Construction Work or Service. As a consequence of the above, ENDESA can demand the SUPPLIER to comply with particular Occupational Safety and Health

22 provisions, which complement, substitute or optimize compliance with the previous requirements Breaches, sanctions and responsibilities General aspects. When ENDESA observes that the SUPPLIER does not comply with the legally established or ordered Occupational Safety and Health measures, the Responsible party of ENDESA shall notify immediate stoppage of the works. The SUPPLIER shall perform at its expense all actions necessary to safeguard the safety of people and things. Likewise, ENDESA s corresponding Responsible party, depending on the case, shall set a suitable period for its correction. Should the SUPPLIER not make the necessary modifications within the established period, ENDESA can deputise in this breach, on the account and expense of the SUPPLIER, without this action giving rise to any liability for ENDESA. The correction of situations whose risk level involves imminent hazard in ENDESA s opinion must be performed immediately. If the facts described in the previous section cause delays in execution of the works, the SUPPLIER shall take the measures necessary to recover the delay produced, unless it has the right to extension in the agreed execution periods. ENDESA can demand the SUPPLIER to adopt all measures necessary to avoid repeated breach of the Safety Rules and Prescriptions by the SUPPLIER or its workers Compliance with Occupational Safety and Health Regulations, the Specific Safety and Health Plan for the construction work or service and the Safety and Health Plan. A. Criterion of classification of breaches. From the standpoint of safety breaches, ENDESA shall bear in mind in general the breach by the SUPPLIER of the Occupational Safety and Health Act and other applicable regulations. For said purpose it shall take into consideration, the seriousness of the events, the number of workers exposed to risks (possibility of multiple accident) without the SUPPLIER adopting preventive measures and the breach of the Safety and Health Plans or complementary or replacement measures demanded of the SUPPLIER. B. Sanctions. Based on the previous criteria, the breach of the SUPPLIER shall be

23 considered breach of the Contract or Order and in consequence authorizes ENDESA to adopt any of the following measures depending on its severity: Verbal or written warning to the SUPPLIER. Partial or total stoppage of work until the deficiencies are remedied. Termination of the Contract or Order in the event of repeated breaches or when the rules infringed are considered fundamental for ENDESA and are so in good practice. Withdrawal of the SUPPLIER s classification as suitable supplier for ENDESA. C. Bonuses. In order to stimulate those companies that stringently comply with applicable legislation, ENDESA can establish a bonus-malus system. 7. Application law and conflict resolution The Contract, and all issues that may arise between the Parties in relation or connection thereto, shall be exclusively governed by Spanish law, to which the SUPPLER and ENDESA expressly submit

24 MODEL OF FIRST DEMAND ABSTRACT GUARANTEE The Bank/Savings bank...., and on its behalf Mr.... and Mr.... with sufficient power to bind it in this act, hereby jointly and severally grant, as extensively as required in law, with (Supplier/Contractor) to (Subsidiary of Endesa issuing the Order/Contract), up to the amount of... (...), to respond to the obligations arising for said (Supplier/Contractor) of contract/order no.... signed with (Subsidiary of Endesa issuing the order/contract), dated... The present guarantee is a first demand abstract guarantee, whereby the Bank/Savings bank..... undertakes to pay up to the maximum of the aforementioned amount at first written demand by (Subsidiary of Endesa issuing the order). Said demand shall be signed by the representative of (Subsidiary of Endesa issuing the order) with sufficient power and it shall be presented in the branch of the Bank/Savings bank... located in... The payment obligation of the Bank/Savings bank..... is abstract and it expressly waives the benefits or order, excussion and division, and undertakes to deal with all requests it makes to (Subsidiary of Endesa issuing the order) in relation to this guarantee, handing over to this last Company the amount requested, it being sufficient for this that this request is made to (Subsidiary of Endesa issuing the order) in writing in the form indicated in the previous paragraph, without any excuses or exceptions being admitted, including the opposition of.(supplier/contractor) to execution of this guarantee, before (Subsidiary of Endesa issuing the order) shall notify.( Supplier/Contractor) of the presentation of any demand for payment by virtue of this guarantee, indicating its cause and motive. The present demand guarantee shall be cancelled when..., and this Bank/Savings bank should be jointly notified in writing by (Subsidiary of Endesa issuing the order) and ( Supplier/Contractor). The signatories of the present guarantee are duly authorized to represent and bind the Bank/Savings bank...., this being one of the operations which, in accordance with article [ ] of the Articles of Association which govern it, it can perform, as it constitutes one of its purposes. The present guarantee has been registered with number