<SEC-DOCUMENT>0001292814-15-000843.txt : 20150414
<SEC-HEADER>0001292814-15-000843.hdr.sgml : 20150414
<ACCEPTANCE-DATETIME>20150414132342
ACCESSION NUMBER:		0001292814-15-000843
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20150630
FILED AS OF DATE:		20150414
DATE AS OF CHANGE:		20150414

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
		CENTRAL INDEX KEY:			0001170858
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31317
		FILM NUMBER:		15768801

	BUSINESS ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
		BUSINESS PHONE:		011-55-11-3388-8000

	MAIL ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sbs20150410_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Washington, DC 20549 </B></FONT></DIV>

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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORM 6-K</B></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>REPORT OF FOREIGN ISSUER</B><BR><B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center>

<DIV><FONT color=#000000 size=2 face="Times New Roman"><B>For&nbsp;April 10, 2015</B></FONT></DIV><FONT color=#000000 size=2 face="Times New Roman"><B>(Commission File No. 1-31317) </B></FONT></DIV>

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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Exact name of registrant as specified in its charter) </I></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Translation of Registrant's name into English) </I></FONT></DIV>

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<BR>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><B>Rua Costa Carvalho, 300 <BR>S&#227;o Paulo, S.P., 05429-900 <BR>Federative Republic of Brazil </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Address of Registrant's principal executive offices) </I></FONT></DIV><BR>

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<BR>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark whether the registrant files or will file <BR>annual reports under cover Form 20-F or Form 40-F. <BR><BR>Form 20-F ___X___ Form 40-F ______</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(1)__.</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(7)__.</FONT></DIV>

<P></P>

<P align=center><FONT size=2 face="'Times New Roman, Times, Serif'">Indicate by check mark whether the registrant by furnishing the <BR>information contained in this Form is also thereby furnishing the <BR>information to the Commission pursuant to Rule 12g3-2(b) under <BR>the Securities Exchange Act of 1934. <BR><BR>Yes ______ No ___X___</FONT></P>

<P></P>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">If "Yes" is marked, indicated below the file number assigned to the<BR>registrant in connection with Rule 12g3-2(b):</FONT> </DIV>

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<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt 60%; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">TERM OF AGREEMENT ENTERED INTO <BR>BETWEEN THE STATE OF S&#195;O PAULO, <BR>COMPANHIA DE SANEAMENTO B&#193;SICO <BR>DO ESTADO DE S&#195;O PAULO AND THE <BR>DEPARTMENT OF WATER AND <BR>ELECTRICITY &#8211; DAEE.</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The parties below:</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">1.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The State of S&#227;o Paulo (&#8220;State&#8221;), Legal entity governed by public law, through the Treasury Office, represented herein by its head officer, Mr. Renato Augusto Zagallo Villela dos Santos; </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">2.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></I><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> (&#8220;Sabesp&#8221; or &#8220;Company&#8221;), mixed capital and publicly-held Company, corporate taxpayer&#8217;s ID (CNPJ) 43.776.517/0001-80, headquartered at Rua Costa Carvalho n<SUP>o</SUP> 300, in the City and State of S&#227;o Paulo, represented herein by its Chief Executive Officer, Mr. Jerson Kelman, jointly with the Chief Financial Officer and Investor Relations Officer, Mr. Rui de Brito &#193;lvares Affonso; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">3.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Department of Water and Electricity (&#8220;DAEE&#8221;), independent governmental entity, headquartered at Rua Boa Vista n<SUP>o</SUP> 170, in the City and State of S&#227;o Paulo, corporate taxpayer&#8217;s ID (CNPJ) 46.853.800/0001-56, represented herein by its Superintendent, Mr. Ricardo Daruiz Borsari, jointly with its Chief Financial Officer, Mr. Jos&#233; Borzani Neto.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Severally referred to as &#8220;Party&#8221; and jointly as &#8220;Parties&#8221;, and as intervening party,</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">4.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sanitation and Water Resources Secretariat of the State of S&#227;o Paulo (&#8220;SSRH&#8221;), represented herein by its head officer, Mr. Benedito Pinto Ferreira Braga J&#250;nior.</FONT></P>

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<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=right><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">1</FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT></P></DIV></DIV>

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<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">WHEREAS</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">I.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the STATE, by force of the State Law n&#186; 4819/58
of August 26, 1958, revoked by Decree-law n&#186; 200 of May 13, 1974, is liable for
the charges deriving from the retirement supplementary benefits and pension
plan to SABESP&#8217;s retirees and pensioners, observing the payment criteria set
forth by the State Department of Personnel Expenses &#8211; DDPE, created by legal
advice of the Treasury Office&#8217;s Legal Consulting, State Attorney General Office
&#8211; PGE and related laws;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">II.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Pursuant to the &#8220;Term of Recognition and
Consolidation of Obligations, Payment Commitment and Other Covenants&#8221; (&#8220;Term of
&#160;Recognition&#8221;) executed between the STATE, SABESP and DAEE, and SSRH (at that
time, Department of Water Resources, Sanitation and Works) as intervening party
on December 11, 2001, the State undertook, amongst other obligations, to
reimburse Sabesp for the amount disbursed thereby between March 1986 until
November 2001, as payment of benefits referred to by the State Law n<sup>o</sup>
4,819 of August 26, 1958 (&#8220;Benefits&#8221;);</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">III.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Pursuant to the Third Amendment to the </font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Term
of</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font><font face=arial,sans-serif style="line-height:150%;"><b><font face=arial,sans-serif lang=EN-US style="font-size:11.0pt;">Recognition and Consolidation of Obligations,
Payment Commitment and Other Covenants</font></b></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> (&#8220;Third
Amendment&#8221;), executed between the State, Sabesp and DAEE, on November 17, 2008,
the Parties acknowledge the Nominal Undisputed Amount calculated by Fipecafi
(Research Institute of Accounting Actuarial &amp; Financial Foundation) of five
hundred and seventy million, six hundred and ninety thousand, two hundred and
eighty-three </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and eighty-four cents (R$570,690,283.84), which restated
until September, 2008, resulting in an Undisputed Amount acknowledged by&#160; the
State and Sabesp of nine hundred and fifteen million, two hundred and fifty-one
thousand, two hundred </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and sixty-eight cents (R$915,251,200.68);</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">IV.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The Third Amendment set forth the payment of
Undisputed Amount to Sabesp by means of:</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:72.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">a.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">DAEE transfers to Sabesp the reservoirs of
Taia&#231;upeba, Jundia&#237;, Biritiba, Paraitinga and Ponte Nova, which compose the Alto
Tiet&#234; system (&#8220;Reservoirs&#8221;) totaling six hundred and ninety-six million, two
hundred and eighty-three thousand, four hundred and sixty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and
forty-nine cents (R$696,283,465.49); and</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:72.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">b.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">payment of the Outstanding Balance of two
hundred and eighteen million, nine hundred and sixty-seven thousand, seven hundred
and thirty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and nineteen cents (R$218,967,735.19), as the
difference between the Undisputed Amount and the financial credit corresponding
to the value of Reservoirs, made in one hundred and fourteen (114) monthly and
consecutive installments, in the amount of one million, nine hundred and twenty
thousand, seven hundred and sixty-nine </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and sixty-one cents (R$1,920,769.61);</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">V.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the transfer of reservoirs was accepted by Sabesp
on a provisional basis (Clause One, Paragraph Two of the Third Amendment), and
Sabesp also offered a provisional acquittance, thus, establishing a financial
credit corresponding to the value of reservoirs, in the amount of six hundred
and ninety-six million, two hundred and eighty-three thousand, four hundred and
sixty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and forty-nine cents (R$696,283,465.49), setting forth,
in the Paragraph six of referred Clause One that the final acquittance will only
occur when the Reservoirs areas are formally registered on behalf of Sabesp, at
the appropriate Register of Deeds;</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">VI.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Eventual Reservoirs ownership transference to
Sabesp in the future, after favorable court decision, would conclude the amount
in the agreement provided for the in the Third Amendment, without any
outstanding balance to Sabesp, whether related to the principal amount or the monetary
restatement;</font></p>

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<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">VII.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">since the Reservoirs are assets of great
interest for Sabesp, the Parties are jointly endeavoring their efforts to make
feasible the Reservoirs ownership transfer to Sabesp, thus, overcoming the
legal uncertainty caused by the Public Civil Lawsuit brought by the State Prosecution
Office before the 12<sup>th</sup> Lower Treasury Court of S&#227;o Paulo (Proceeding
no.1559/053/03/025681-2), which resulted in the lower court decision against
which an Appeal was filed no. 412,899,5/9-00, and whose effects were suspended
by the Court of Justice of S&#227;o Paulo&#8217;s order (Motion for Stay of Proceeding n<sup>o</sup>
116,474,0/0-00) &#8211; which annuls the commitment assumed by the Parties in the
Term of Recognition of transferring rights over Reservoirs grounded on Article 7,
Sole Paragraph of S&#227;o Paulo State Law n<sup>o</sup> 10,058/68;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">VIII.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">up to date, due to forces beyond the Parties&#8217;
control, the Justice has not resolved yet on allowing the Reservoirs ownership transfer,
and the Parties acknowledge they cannot foresee an estimated date for the final
decision and if such decision will authorize or not this transfer;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">IX.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the financial credit which would be settled
definitively with the transfer of Reservoirs, calculated in September 2008 in
the amount of six hundred and ninety-six million, two hundred and eighty-three
thousand, four hundred and sixty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and forty-nine cents (R$696,283,465.49),
restated for February &#160;2015, based on the Amplified Consumer Price Index&#8211; IPCA,
published by the Brazilian Institute of Geography and Statistics &#8211; IBGE (&#8220;IPCA-IBGE&#8221;),
is one billion, twelve million, three hundred and ten thousandand ninety-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">
and sixteen cents (R$1,012,310,095.16); </font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">X.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the State has been making the due payments
referring to the Outstanding Balance of two hundred and eighteen million, nine hundred
and sixty-seven thousand, seven hundred and thirty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and
nineteen cents (R$218,967,735.19), restated as set forth by the Third Amendment
and until January 2015, the State has paid all the due installments;</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:54.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-36.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">XI.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">the State, through the Treasury Office, holds
the shares of preferred stock of Companhia de Transmiss&#227;o de Energia El&#233;trica
Paulista- CTEEP (&#8220;Shares&#8221;), </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">listed at the Stock
Exchange of S&#227;o Paulo &#8211; Bovespa, free and available for sale, under the ticker
TRPL4, whose market value, based on the share closing price on March 17, 2015
is R$39.25. </font></p>
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 <p align=right style="margin:0cm;margin-bottom:.0001pt;text-align:right;"><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">4</font><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font></p>

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</DIV>


<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The Parties resolve to enter into this
present Term of Agreement (&#8220;Term of Agreement&#8221; or &#8220;Instrument&#8221;), which shall be
ruled by the following clauses and conditions, binding the parties by
themselves and eventual successors.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CLAUSE ONE &#8211; NON-EFFECTIVENESS OF TRANSFER
OF RESERVOIRS</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">As the Reservoir ownership transfer to
Sabesp has not been materialized until the signature date hereof, the Parties
acknowledge that the Undisputed Amount owed by the State has not been
definitively settled, which would be paid with the Reservoirs.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CLAUSE TWO &#8211; ADJUSTED CREDIT</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The Parties agree that the financial credit
referring to the amount which would be settled definitively with the Reservoirs
ownership transfer, restated for February 2015 is one billion, twelve million,
three hundred and&#160; ten thousand and ninety-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and sixteen cents
(R$1,012,310,095.16).</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Sole Paragraph</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; The amount described in the </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Caput</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> is comprised by the
following amounts: Principal Amount of Credit of six hundred and ninety-six
million, two hundred and eighty-three thousand, four hundred and sixty-five </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">
and forty-nine cents (R$696,283,465.49), and Inflation Adjustment Credit of
three hundred and sixteen million, twenty-six thousand, six hundred and twenty-nine
</font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and sixty-seven cents (R$316,026,629.67) calculated between
September 2008 and February 2015.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>


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 <p align=right style="margin:0cm;margin-bottom:.0001pt;text-align:right;"><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">5</font><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font></p>

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</DIV>
<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CLAUSE THREE &#8211; CHANGE
IN PAYMENT CONDITIONS OF THE PRINCIPAL AMOUNT OF CREDIT</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The payment conditions originally agreed
upon in the Third Amendment referring to the Reservoirs ownership transfer is
hereby replaced with the assets described below, and the State undertakes to
pay the Principal Amount of Credit in one hundred and eighty (180) installments,
as follows: </font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">A)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The first twenty-four (24) installments will be settled through the
immediate transfer of </font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2,221,000</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> shares of preferred stock issued by Companhia
de Transmiss&#227;o de Energia El&#233;trica Paulista &#8211; CTEEP,&#160; TRPL4 type, in the total amount
of eighty-seven million, one hundred and seventy-four thousand, two hundred and
fifty </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> (R$87,174,250.00) &#8220;Shares Value&#8221;;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">B)</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp; </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The balance of six hundred, nine million and one hundred, nine thousand
and two hundred, fifteen </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and forty-nine cents (R$609,109,215.49) will
be adjusted as per Paragraph Four of this CLAUSE and paid in cash &#160;by the
remaining one hundred and fifty-six (156) equal and successive monthly
installments, beginning on April 5, 2017 (&#8220;Installment Payment&#8221;).</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph One</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; The Shares Value was calculated based on the BOVESPA&#8217;s share closing
price of March 17, 2015 of thirty-nine </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and twenty-five cents (R$39.25)
per share, corresponding to the current market value of referred asset.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Two</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; Sabesp accepts the Shares issued by CTEEP as part of payment of
Principal Amount of Credit by the amount established above for Shares Value,
corresponding to the payment.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Three</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; Shares will be paid in kind to Sabesp, all of them free and clear
of any burden or encumbrance, assigning to Sabesp all the rights inherent
thereto, including equity and political rights and Sabesp may transfer or dispose
shares without restrictions. </font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Four</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; the balance payable referred to by item B of </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Caput</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> of this
CLAUSE shall be adjusted until the initial payment date, in order to include
the IPCA-IBGE variation or another index to replace it.</font></p>


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 <p align=right style="margin:0cm;margin-bottom:.0001pt;text-align:right;"><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">6</font><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font></p>

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</DIV>
<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Five</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; once payments start, the individual amount of installments
referred to by previous Paragraph shall be adjusted only once every twelve (12)
months, as of April 5, 2017 to include the annual variation of IPCA-IBGE, or
another index to replace it, plus interest rates of half percent (0.5%) per
month.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CLAUSE FOUR &#8211; UNAPPEALABLE COURT
DECISION AUTHORIZING THE TRANSFER OF RESERVOIRS</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">As the Reservoirs are assets of great
interest for Sabesp, the parties agree that if unappealable court decision is
rendered AUTHORIZING the transfer of Reservoirs, and without any restrictions,
the Reservoirs ownership will be transferred to Sabesp, subject to the
following terms and conditions:</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph One</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; In the event the Reservoirs ownership is effectively transferred
with registration at the appropriate real estate district, Sabesp shall reimburse
the State the Principal Amount of Credit paid through the shares, the Shares
Value, added to the Installment amount paid until the transfer date of
Reservoirs.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Two</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; The reimbursement of amounts shall observe the following
principles:</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">a.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The total amount to be reimbursed shall be the
sum of Shares Value, i.e., eighty-seven million, one hundred and seventy-four
thousand, two hundred and fifty </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> (R$87,174,250.00), monetarily adjusted
by IPCA-IBGE, or another index to replace it, until the reimbursement start
date, added to the nominal value of each installment received by Sabesp referring
to the Installment Payment, also monetarily adjusted by IPCA-IBGE, or another
index to replace it, until the reimbursed initial date (&#8220;Reimbursed Amount&#8221;).</font></p>

<p style="line-height:150%;margin-bottom:0cm;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">b.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The Reimbursed Amount shall be paid in sixty (60)
equal and consecutive monthly installments, the first one to mature 30 days
after the reservoirs transfer, or in the event of bank holiday, on the next subsequent
business day and other installments on same day of subsequent months, or in the
event of bank holiday, on the next subsequent business day.</font></p>


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</DIV>
<p style="line-height:150%;margin-bottom:10.0pt;margin-left:36.0pt;margin-right:0cm;margin-top:0cm;text-align:justify;text-indent:-18.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">c.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The individual amount of installments referred
to by previous Paragraph shall be adjusted only once every twelve (12) months,
to include the annual variation of IPCA-IBGE, or another index to replace it.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Three</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; The transfer of Reservoirs, Sabesp&#8217;s reimbursement of amounts
under the terms of this CLAUSE and the settlement of the Outstanding Balance
under the terms of the Third Amendment, fully settles the State&#8217;s obligation
related to the payment of the Undisputed Amount, under the terms of the Third
Amendment, extinguishing in the origin, the application of Inflation Adjustment
Credit referred to by sole Paragraph of CLAUSE TWO hereof.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Four</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; Should the provisions of this CLAUSE occur, there will be no
outstanding balance by the State, in relation to the Principal Amount of Credit,
whether in relation to the Inflation Adjustment Credit, therefore,
discontinuing the Installment Payment.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CLAUSE FIVE &#8211; TRANSFER OF RESERVOIRS IS
UNFEASIBLE</font></b></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The parties agree that the unappealable
court decision that makes UNFEASIBLE the&#160; Reservoirs Transfer results in the inapplicability
of payment of the Principal Amount of Credit through the transfer of
Reservoirs, therefore, the Principal Amount of Credit constitutes an unpaid
financial credit with the transfer of Reservoirs in view of the Third Amendment.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph One</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; Should the provisions in the </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Caput</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> of this CLAUSE occur,
the terms of the CLAUSE THREE hereof shall endure referring to the payment of Principal
Amount of Credit, remaining the amount of Inflation Adjustment Credit referred
to by Paragraph One of CLAUSE TWO to be paid by the State to Sabesp.</font></p>

<p style="line-height:150%;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Paragraph Two</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> &#8211; The amount to be paid by the State to settle the Inflation
Adjustment Credit of three hundred and sixteen million, twenty-six thousand,
six hundred and twenty-nine </font><i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">reais</font></i><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> and sixty-seven cents (R$316,026,629.67)
shall be monetarily adjusted based on IPCA-IBGE as of February 2015 until the
payment start date set forth in item &#8216;a&#8217; below and payment shall be made
according to the following principles:</font></p>


<a name="_bclFooter8"></a><DIV>

 <p align=right style="margin:0cm;margin-bottom:.0001pt;text-align:right;"><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">8</font><font style="display:none;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;"></font></font></p>

</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div>
&nbsp; <A name="page_9"></A>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<a name="_bclHeader9"></a><DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">a.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The amount shall be paid in sixty (60) equal and consecutive monthly installments, the first one to mature 30 days after the payment of the last installment referring to the Principal Amount of Credit or in the event of bank holiday, on the next subsequent business day, and other installments on same day of subsequent months, or in the event of bank holiday, on the next subsequent business day.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">b.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The individual amount of installments referred to by previous item shall be restated only once every twelve (12) months, to include the annual variation of IPCA-IBGE, or another index to replace it, plus interest rates of half percent (0.5%) per month.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">CLAUSE SEVEN &#8211; MISCELLANEOUS</FONT></B></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">A)</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The Central Court of the District of S&#227;o Paulo is hereby elected to settle any doubts and/or litigations deriving herefrom, with the express waiver of any other, no matter how privileged it may be.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">B)</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">The Parties agree that the specific performance of the obligations envisaged herein may be required. This document constitutes an extrajudicially enforceable instrument.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0cm 36pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt 36pt; LINE-HEIGHT: 150%; TEXT-INDENT: -18pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">C)</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">This present Instrument does not represent both parties&#8217; confession with respect to related issues, which are the subject-matter of specific lawsuits.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">In witness whereof, the Parties enter into this present instrument in four counterparts of equal tenor and form, before the presence of the undersigned witnesses.</FONT></P>

<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%" align=right><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt 212.4pt; TEXT-INDENT: 35.4pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">S&#227;o Paulo, March 18, 2015.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%"><B><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">Parties:</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: normal" align=center><B><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">STATE OF S&#195;O PAULO</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: normal" align=center><B><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=right><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">9</FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT></P></DIV>

<DIV></DIV>

<HR align=center SIZE=2 width="100%" noShade>



<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>
<a name="page_10"></a><a name="_bclPageBorder10"></a><DIV STYLE="WIDTH: 100%; PADDING-RIGHT: 0%; PADDING-LEFT: 0%">

<a name="_bclHeader10"></a><DIV>


<p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<div style="border:none;border-bottom:solid windowtext 1.0pt;margin-left:63.8pt;margin-right:63.7pt;padding:0cm 0cm 1.0pt 0cm;"><p align=center style="border:none;line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;padding:0cm;text-align:center;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">&nbsp;</font></p>

</div>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">Renato Augusto Zagallo Villela dos
Santos</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">S&#227;o Paulo State Treasury Office</font></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">COMPANHIA
DE SANEAMENTO B&#193;SICO DO ESTADO DE S&#195;O PAULO &#8211; SABESP</font></b></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=PT-BR style="font-size:12.0pt;">&nbsp;</font></b></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:100%;">
 <tr>
  <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=47% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Jerson Kelman</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Chief Executive
  Officer</font></p>
  </td>
 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Rui de Brito
  &#193;lvares Affonso</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Chief Financial Officer
  and Investor Relations Officer</font></p>
  </td>
 </tr>
</table></div>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">DEPARTMENT OF WATER AND ELECTRICITY &#8211; DAEE</font></b></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:100%;">
 <tr>
  <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=47% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Ricardo Daruiz
  Borsari</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Superintendent</font></p>
  </td>
 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Jos&#233; Borzani Neto </font></b></p>
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table></div>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="background:white;font-size:12.0pt;">Intervening party:</font></b></p>

<p style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">SANITATION AND WATER RESOURCES SECRETARIAT - SSRH</font></b></p>

<p align=center style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<div style="border:none;border-bottom:solid windowtext 1.0pt;margin-left:63.8pt;margin-right:63.7pt;padding:0cm 0cm 1.0pt 0cm;">

<p align=center style="border:none;line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;padding:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

</div>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Benedito Pinto
Ferreira Braga J&#250;nior</font></b></p>

<p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Sanitation and Water
Resources Secretariat</font></p>

<p align=center style="background:white;line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="background:white;font-size:12.0pt;">Witnesses:</font></b></p>

<p style="line-height:normal;margin-bottom:10.0pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:100%;">
 <tr>
  <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="border-bottom:solid windowtext 1.0pt;padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
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<tr>
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  <p align=left style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:left;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Name: Flavio Fernandes
  Naccache</font></p>
  <p align=left style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:left;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">RG (ID card): </font></p>
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 <td valign=top width=6% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=center style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=top width=47% style="padding:0cm 5.4pt 0cm 5.4pt;">
  <p align=left style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:left;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Name:Marcelo Miyagui</font></p>
  <p align=left style="line-height:normal;margin-bottom:.0001pt;margin-left:0cm;margin-right:0cm;margin-top:0cm;text-align:left;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">RG (ID card): </font></p>
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<P style="BACKGROUND: white; TEXT-ALIGN: left; MARGIN: 0cm 0cm 10pt; LINE-HEIGHT: 150%" align=left><FONT style="LINE-HEIGHT: 150%" color=gray><FONT lang=EN-US style="FONT-SIZE: 11pt" color=gray face="Times New Roman">Page of signatures, an integral part of the Term of Agreement entered into between the State of S&#227;o Paulo, Sabesp and DAEE on March 18, 2015.</FONT></FONT></P></DIV>

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<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=right><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman">11</FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman"></FONT></FONT></P></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>SIGNATURE&nbsp;</U></B></FONT><FONT size=1>&nbsp;</FONT></DIV></U></B></FONT>

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<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city S&#227;o Paulo, Brazil. <BR></FONT></DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Date:&nbsp;April 10, 2015</FONT></DIV>

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   <DIV align=left><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV></TD></TR>

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   <TD vAlign=top align=left><FONT color=#000000 size=2 face="Times New Roman">By:</FONT></TD>

   <TD vAlign=bottom align=left>/s/&nbsp;&nbsp;<FONT style="FONT-FAMILY: times new roman" size=3>Rui de Britto &#193;lvares Affonso</FONT>&nbsp;&nbsp;&nbsp;&nbsp;

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   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>

   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Title: Chief Financial Officer and Investor Relations Officer </FONT></DIV></TD>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

<P align=justify><FONT size=2 face="'Times New Roman, Times, Serif'">This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. </FONT></P>

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