<SEC-DOCUMENT>0001292814-19-000440.txt : 20190225
<SEC-HEADER>0001292814-19-000440.hdr.sgml : 20190225
<ACCEPTANCE-DATETIME>20190225103056
ACCESSION NUMBER:		0001292814-19-000440
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190331
FILED AS OF DATE:		20190225
DATE AS OF CHANGE:		20190225

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:		19628397

	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>sbs20181228_6k5.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 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;December 28, 2018</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 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: center; MARGIN: 0in 0in 10pt 0pt; TEXT-INDENT: 5.4pt" align=center><FONT>
   <IMG alt="Logo preto" src="x18122814092500.jpg" width=51 height=68></FONT></P></TD>

   <TD style="BORDER-TOP: #999999 1pt solid; HEIGHT: 16.4pt; BORDER-RIGHT: #999999 1pt solid; BORDER-BOTTOM: #999999 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" width="89%" colSpan=4>

   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 10pt" align=center><B><FONT><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 10pt; FONT-FAMILY: Verdana; LINE-HEIGHT: 116%">Organizational Instrument</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

   <TD style="HEIGHT: 2.6pt; BORDER-RIGHT: #999999 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="19%">

   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Phase</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Institutional Policy</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>In effect</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

   <TD style="HEIGHT: 2.6pt; BORDER-RIGHT: #999999 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="19%">

   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>NOMINATION</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><B><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI0033 &#8211; V.1</FONT></B></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>First version effective on:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>This version is effective on:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Related Areas (Coverage):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" color=#808080 face=verdana,sans-serif>Processes:</FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>---</FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0in 0in 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; MARGIN: 6pt 0in 6pt 0.25in; TEXT-INDENT: -0.25in" align=left><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>1.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" color=windowtext face="times new roman">&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>Introduction</FONT></B></H1>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 10pt 0.25in"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>This Institutional Nomination Policy establishes the regulations to nominate and assess Sabesp&#8217;s directors, officers and Fiscal Council members. </FONT></P>

<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; MARGIN: 6pt 0in 6pt 0.25in; TEXT-INDENT: -0.25in" align=left><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>2.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" color=windowtext face="times new roman">&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>Objectives </FONT></B></H1>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>2.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To meet the requirements of Law No. 13,303/16, of June 30, 2016; State Decree No. 62,349/16, of December 26; and the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Novo Mercado</FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif> Regulations. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>2.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To establish rules to ensure that the process for nomination and assessment of the members of the Board of Directors, the Fiscal Council and the Executive Board complies with the applicable rules and legislation.</FONT></P>

<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: left; MARGIN: 6pt 0in 6pt 0.25in; TEXT-INDENT: -0.25in" align=left><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>3.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" color=windowtext face="times new roman">&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" color=windowtext face=Arial,sans-serif>Guidelines</FONT></B></H1>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>3.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Controlling Shareholder must respect the Institutional Nomination Policy on selecting directors, officers and members of the Fiscal Council. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>3.1.1. The nomination of Company&#8217;s officers is under the Governor&#8217;s sole responsibility. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>3.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The nomination policy must be made widely available to shareholders and the market on the website of the Company. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: normal" face=arial,sans-serif>3.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The assessment of nominations will be under the responsibility of the Eligibility and Advisory Committee, as per article 31 of the Bylaws. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.3.1. The minutes of Eligibility and Advisory Committee meetings will be disclosed in order to check compliance of nominees with the requirements set forth in the Institutional Nomination Policy. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.3.2. All candidates must devote time to the function to which they were nominated. And members of the public administration will not receive compensation for membership in more than two bodies, Boards of Directors or Fiscal Councils, of state-owned companies or state-controlled companies.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The candidates for members of the Board of Directors and the Executive Board are selected among persons with unblesmished reputation and outstanding knowledge, considering, if possible, the diversity of experiences, behaviors and cultural aspects, age group and gender, alternatively fulfilling one of the requirements set forth in lines &#8220;a,&#8221; &#8220;b&#8221; and &#8220;c&#8221; of item I and, cumulatively, those provided for in items II and III below:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp; Having professional experience of at least:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 92.15pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>a)&nbsp;&nbsp;&nbsp; ten (10) years in the government or private sector, in the sanitation area or in areas relating to those to which they were nominated; or</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 92.15pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>b)&nbsp;&nbsp;&nbsp; four (4) years in at least one of the following positions:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 120.5pt; TEXT-INDENT: -14.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>i.&nbsp;&nbsp; executive or senior head position in companies whose size or corporate purpose is similar to that of the company. &#8220;Senior head position&#8221; means positions in the two (2) highest non-statutory hierarchical levels of the company; </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 120.5pt; TEXT-INDENT: -14.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>ii.&nbsp; position in committees or position of trust, or above, in the public sector; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 120.5pt; TEXT-INDENT: -14.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>iii.&nbsp; faculty member or researcher in the sanitation area;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 92.15pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>c)&nbsp;&nbsp;&nbsp; four (4) years of experience as a self-employed professional in activities directly or indirectly related to the sanitation area. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp; holding an academic education compatible with the position to which he/she was nominated; and </FONT></P></DIV>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Phase</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Institutional Policy</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>In effect</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>NOMINATION</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><B><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI0033 &#8211; V.1</FONT></B></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>First version effective on:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>This version is effective on:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Related Areas (Coverage):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" color=#808080 face=verdana,sans-serif>Processes:</FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>SABESP</FONT></FONT></P></TD>

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<P style="MARGIN: 0in 0in 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp; Non-conformity with the cases of ineligibility provided for in the lines of item I of the main section of article 1 of Supplementary Law No. 64, of May 18, 1990, as amended by Supplementary Law No. 135, of June 4, 2010.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -14.15pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 117%" face=arial,sans-serif>3.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The members of the Fiscal Council are selected among persons with unblemished reputation, resident in the country, holding academic education compatible with their functions, and having occupied, for a minimum of three (3) years, an executive or advisory position in the public administration, or as fiscal council member, director or officer in a company.&nbsp;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.5.1. Fiscal Council members must comply with item III of section 3.4 hereof.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.5.2. The Fiscal Council will have at least one (1) member nominated by the controlling entity that is a public servant permanently linked to the public administration. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compliance with legal requirements and those provided for in the Bylaws of Sabesp must be evidenced with a signed declaration and presentation of documents, as established in the Director and Officer Nomination Registration Form and the Fiscal Council Nomination Registration Form defined by the controlling shareholder.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The requirements provided for in item I of section 3.4 may be waived in the case that a Company&#8217;s employee is nominated for a management position, as long as the following minimum legal requirements are met, with presentation of the relevant documents regarding each item:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp; the employee has joined the Company through civil service exams or competitive examinations, as from the moment that this became mandatory;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp; the employee has permanently worked at the company for over ten (10) years; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp; the employee has performed senior management duties at the Company (&#8220;senior management&#8221; means the two (2) highest non-statutory hierarchical levels of the company), evidencing his/her capacity to undertake the responsibilities of a management position.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representatives of the employees in the Board of Directors must fulfill the same requirements as those of other members. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 35.45pt; TEXT-INDENT: -17.6pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The controlling shareholder has power to elect most Board of Directors members, pursuant to line &#8220;a&#8221; of article 116 of Federal Law No. 6,404/1976.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.10. In addition to the requirements provided for in section 3.4, the minimum conditions to be a member of the Audit Committee are as follows:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp; In the twelve (12) months before the nomination to the Committee, the nominee should not be, and should not have been: </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -14.15pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>a)&nbsp; an officer, employee or member of the Fiscal Council of the Company or its parent company, subsidiary, affiliate, or direct or indirect jointly-controlled company; and</FONT></P></DIV>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Institutional Policy</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>In effect</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>NOMINATION</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><B><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI0033 &#8211; V.1</FONT></B></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>First version effective on:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>This version is effective on:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Related Areas (Coverage):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" color=#808080 face=verdana,sans-serif>Processes:</FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>---</FONT></FONT></P></TD></TR>

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   <TD width="11%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD>

   <TD width="7%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD>

   <TD width="43%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD>

   <TD width="20%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD>

   <TD width="19%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 63.8pt; TEXT-INDENT: -14.15pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>b)&nbsp; technician in charge, officer, manager, supervisor or any other member with a team management function involved in audit activities at the Company;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp; Not being a spouse or </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt; LETTER-SPACING: -0.2pt; LINE-HEIGHT: 116%" face=arial,sans-serif>relative, by blood or by marriage, up to the second degree or by adoption, of the persons mentioned in item I;&nbsp; </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp; Not receiving any other type of compensation from the Company or its parent company, subsidiary, affiliate or direct or indirect jointly-controlled company, except for that relating to the function of member of the Statutory Audit Committee; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>IV. Not having, and not having had a permanent public position, even if on leave, or a position in a committee of a </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt; LETTER-SPACING: -0.2pt; LINE-HEIGHT: 116%" face=arial,sans-serif>legal entity of public law holding controlling interest in the Company in the twelve (12) months before the nomination to the Audit Committee. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.10.1.&nbsp; The members of the Audit Committee should have sufficient technical knowledge of accounting and financial matters. At least one (1) member should have recognized experience in internationally known corporate accounting subjects, analysis, preparation and assessment of financial statements, knowledge of internal controls and policies on disclosure of information to the market, being responsible for the coordination of the Committee.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 70.9pt; TEXT-INDENT: -35.45pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.10.2.&nbsp; The Statutory Audit Committee includes three (3) directors who should cumulatively fulfill the requirements of independence, technical knowledge and availability of time. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.11. The fulfillment of these conditions must be evidenced through documents, as provided for in the Audit Committee Registration Form defined by the controlling shareholder and maintained in the headquarters of the Company for a minimum term of five (5) years as from the last day in office of the Audit Committee member.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.12. The nomination of the persons below to the Board of Directors and the Executive Board is prohibited:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; representatives of the regulatory body to which the Company is subject, Ministers, State Secretaries, Municipal Secretaries, holders of positions without a permanent link with the public service, of a special nature or in senior management and advisory positions in public administration, statutory officials of political parties and holders of positions in the Legislative Branch of any federal entity, even if licensed from their positions;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp;&nbsp;&nbsp;&nbsp; persons who have participated in decision-making structures of political parties, or in activities relating to the organization, structuring and performance of election campaigns in the past thirty-six (36) months;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp;&nbsp;&nbsp; persons holding a position in workers&#8217; unions;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>IV.&nbsp;&nbsp; persons who have signed a contract or partnership, as a supplier or buyer, demander or offeror, of goods or services of any nature, with the Government of the State of S&#227;o Paulo or the Company in the past three (3) years before the date of nomination;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>V.&nbsp;&nbsp;&nbsp; persons who have or might have any conflict of interest with the Government of the State of S&#227;o Paulo or the Company.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VI.&nbsp;&nbsp; persons impeded by special law, or convicted for criminal bankruptcy, malfeasance, bribery, corruption, embezzlement, crimes against the public economy, public faith or property, or subject to a&nbsp; criminal penalty preventing them from holding public positions, even if temporarily.</FONT></P></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 10pt" align=center><B><FONT><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 10pt; FONT-FAMILY: Verdana; LINE-HEIGHT: 116%">Organizational Instrument</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Phase</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Institutional Policy</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>In effect</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <TD style="HEIGHT: 8.75pt; BORDER-RIGHT: #999999 1pt solid; BORDER-BOTTOM: #999999 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="70%" colSpan=3>

   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>NOMINATION</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><B><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI0033 &#8211; V.1</FONT></B></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>First version effective on:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>This version is effective on:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Related Areas (Coverage):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" color=#808080 face=verdana,sans-serif>Processes:</FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <TD width="20%"><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD>

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<P style="MARGIN: 0in 0in 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VII.&nbsp;&nbsp; persons impeded by the Brazilian Securities Commission; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VIII.&nbsp; persons holding positions in companies that may be seen as a market rival, particularly regarding positions in advisory committees, boards of directors or fiscal council. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.13. The prohibition established in item I of section 3.12 also covers the relatives by blood or marriage of the persons mentioned therein, up to the third degree.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.14. The nomination of the persons below for the position of Independent member of the Board of Directors is prohibited:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; persons holding any relation with the Company, except for holders of equity interest;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp;&nbsp;&nbsp;&nbsp; direct or indirect controlling shareholders;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp;&nbsp;&nbsp; persons whose voting rights in Board of Directors meetings are bound by a shareholders&#8217; agreement whose subject matter relates to the Company. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif>IV.&nbsp;&nbsp; spouse, companion, or direct or collateral relative, up to the second degree, of the controlling shareholder, company&#8217;s directors or officers, or managers in the controlling shareholder;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>V.&nbsp;&nbsp;&nbsp; spouse or relative by blood or marriage, up to the third degree or by adoption, of Executive Branch officers, Ministers, State or Municipal Secretaries, or Company&#8217;s directors and officers; </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VI.&nbsp;&nbsp; persons who have maintained, in the past three (3) years, a connection of any nature with the Company or its controlling shareholders, that may compromise his/her independence; </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VII.&nbsp;&nbsp; persons who are or have been, in the past three (3) years, employees or officers at the Company, or a controlled company, affiliate or subsidiary of the Company, except if this relationship relates exclusively to public education or research institutions;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>VIII.&nbsp; direct or indirect suppliers or &nbsp;buyers of the Company&#8217;s services or products to the extent that might imply loss of independence;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>IX.&nbsp;&nbsp; employees or managers of a company or entity offering or requesting services or products to the Company, to the extent that may imply loss of independence; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 56.7pt; TEXT-INDENT: -21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>X.&nbsp;&nbsp;&nbsp; receiving other compensation from the company in addition to that relating to the position of director, except for cash earnings from equity interest. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.15. The nomination of the persons below for the Fiscal Council is prohibited:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>I.&nbsp;&nbsp; members of management bodies and employees at the Company, its subsidiaries or group companies, and&nbsp; spouses and relatives of directors and officers up to the 3<SUP>rd</SUP> degree. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>II.&nbsp; persons impeded by special law, or convicted for criminal bankruptcy, malfeasance, bribery, corruption, embezzlement, crimes against the public economy, public faith or property, or subject to a criminal penalty preventing them from holding public positions, even if temporarily.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>III.&nbsp; persons impeded by the Brazilian Securities Commission;</FONT></P></DIV>

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   <IMG alt="Logo preto" src="x18122814092500.jpg" width=51 height=68></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 10pt" align=center><B><FONT><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 10pt; FONT-FAMILY: Verdana; LINE-HEIGHT: 116%">Organizational Instrument</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Phase</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Institutional Policy</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>In effect</FONT></B></FONT></FONT></B><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>NOMINATION</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><B><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI0033 &#8211; V.1</FONT></B></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>First version effective on:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>This version is effective on:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>Oct. 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 9pt; LINE-HEIGHT: 116%" face=verdana,sans-serif>Related Areas (Coverage):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" color=#808080 face=verdana,sans-serif>Processes:</FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT face=arial,sans-serif><FONT style="FONT-SIZE: 9pt; LINE-HEIGHT: 115%" face=arial,sans-serif>SABESP</FONT></FONT></P></TD>

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<P style="MARGIN: 0in 0in 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>IV. persons holding positions in companies that may be seen as a market rival, particularly regarding positions in advisory committees, boards of directors or fiscal council; and </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>V.&nbsp; persons whose interests are conflicting with those of the Company.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 49.65pt; TEXT-INDENT: -14.25pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face=arial,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.16. Items V and VIII of section 3.12, and items IV and V of section 3.15 must be evidenced by a Declaration pursuant to the terms defined by the Brazilian Securities Commission&#8211; CVM.</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 6pt 42.55pt; TEXT-INDENT: -24.7pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; LINE-HEIGHT: 116%" face=arial,sans-serif>3.17. The members of the Board of Directors, the Fiscal Council and the Executive Board are subject to the rules provided for in </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt; TEXT-DECORATION: none; LINE-HEIGHT: 116%" color=windowtext face=arial,sans-serif>Law No. 6,404, of December 15, 1976</FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 116%" face=Calibri,sans-serif>.</FONT></P>

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   <P style="MARGIN: 2pt 0in"><FONT lang=EN-US style="FONT-SIZE: 8pt; LINE-HEIGHT: 116%" face=arial,sans-serif>Appendix 2_PI0033v.1_Procedure.pdf</FONT></P></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT><SUP><FONT><B><FONT style="FONT-SIZE: 12pt" face=Verdana,sans-serif>Procedure</FONT></B></FONT></SUP></FONT></B></P></TD>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT><SUP><FONT><B><FONT style="FONT-SIZE: 12pt" face=Verdana,sans-serif>PI0033v1 &#8211; Nomination</FONT></B></FONT></SUP></FONT></B></P></TD></TR></TABLE></DIV>

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<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -17.85pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>1.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>Nominations must be submitted to the CEO, who will take the internal actions, as required. </FONT></P>

<P style="MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -17.85pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>2.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>Nominations must include:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>2.1.&nbsp;&nbsp;&nbsp; Updated r&#233;sum&#233;;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>2.2&nbsp;&nbsp;&nbsp;&nbsp; Copy of identity document with photograph, showing RG [General Register] and CPF [Individual Taxpayers Register] numbers;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>2.3.&nbsp;&nbsp;&nbsp; Copy of proof of address of the nominee issued in the past ninety (90) days;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>2.4.&nbsp;&nbsp;&nbsp; Registration form provided for in item 3.6, and the relevant supporting documents; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>2.5.&nbsp;&nbsp;&nbsp; The declarations required by this Policy. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -17.85pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>3.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>The Eligibility and Advisory Committee is responsible for checking compliance of the nomination process. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 49.65pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>3.1.&nbsp;&nbsp;&nbsp; In the absence of important documents, the </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Eligibility and Advisory Committee will return the </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>nomination process to the CEO, who will request the missing information. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 49.65pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>3.2.&nbsp;&nbsp;&nbsp; Upon completion of the analysis, the minutes of the meeting will be issued by the Eligibility and Advisory Committee in accordance with State Capital Protection Board (CODEC) Resolution No. 023/2017, and forwarded to the CEO for continuity of the process.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -17.85pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>4.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>The nominations made by shareholders must be presented in a timely manner, so that compliance of the nomination can be checked.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 49.65pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>4.1.&nbsp;&nbsp;&nbsp; Regarding the nomination of officers, members of the Audit Committee and other Committees, the Chairman of the Board of Directors may invite the candidate to a previous presentation before the Directors in a joint session, and any director may request verification of additional requirements regarding the integrity and technical skills of the candidate.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in 3pt 49.65pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=arial,sans-serif>4.2.&nbsp;&nbsp;&nbsp; Exceptionally, the nominations made during the Meeting may be analyzed by the Meeting&#8217;s Secretary. </FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -17.85pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>5.</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Arial,sans-serif>The investiture of the candidate will be conditioned on the verification, by the Eligibility and Advisory Committee, of the requirements and prohibitions applicable to the position. </FONT></P>

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<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;December 28, 2018</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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