Amendment #4 Page 400 of 868 ?Attie The blowing surnanzes tre Group's transactions with its parent Renova Sassed expenses from Parent—As dsoussed in note 2, during the periods presented the Group functoned as pen of the Larger grouper companies connoted by Renova and accordingly, Rerova performed tertian operatng and corporate overhead functions fore Group These functions ratite but are not Nixed to execut we oversignt legal, finance, human resources, internal au*. financial reporting, tax panning, and n'estor reborn The costs of such services rove been at ocated to the Group based on the most relevant allocation method for the service provided, primer* based on relative percentage of revenue installed capacity or neat:count Management beeches such alocatons are reasonable; however, they may net be indicative of the actual expense that would rave been incurred had the Group been operatrg as a separate entity apart from Renova. Taal corporate expenses that were anzated to the Group and recorded in general and admnistratnre expenses in the combined income statements were RS3,058 and RS3,134 for the three month period ended at 3/31/2015 and 3/312014, respectively intercompany bans and bararces--Periodcalty the Gray and Renova enter no irterconoany bars based an the Groups working captal needs and available cash positions These irtercondany tons generally bear Merest at TJLP plis a treat spread °distending intercorrpany loans matte and footwear,. including accrued interest are reflected as part of Parent's net nvestmeM At March 31. 2015 arid December 31, 2014. the outstanding balances of loans payable by the Group to Renova were RS2.077 and RS1.683. respects.** Drirdends--The Group convenes are all incorporated as Brazilen corporations (sonata:Fes andronas—S A ) in accordance with Brazdian corporate law Based on the law and thew artcles d incorporation the Group companes are requred to pay mandatory dviderds based on net income, deny. after allocations t