Isagen S A ESP : publishes the profit distribution Proposal that will be submitted for consideration of the Shareholders Meeting.

DOCUMENT 7 PROFIT DISTRIBUTION PROPOSAL ORDINARY SHAREHOLDERS MEETING March 31, 2017

Profit Distribution Proposal

Board of Directors Proposal to the General Shareholders Meeting of ISAGEN S.A

E.S.P. on the appropriation and distribution of profits of 2016.

The Shareholders Assembly of ISAGEN S.A. E.S.P. in exercise of its statutory powers and, particularly those conferred in sections 8 and 9 of article 18, and

WHEREAS:

1. ISAGEN's dividend distribution policy must abide by articles 155 and 454 of the Commercial Code.

2. During the period January 1 to December 31, 2016, the Company obtained net profits of 140,877,442,206 COP.

3. Since the year 2003, the Company, as part of tax planning, has depreciated its fixed assets with tax usable lives other than those in accounting, a procedure that has also been used in 2016. To be able to apply this deduction, Article 130 of the Tax Statute provides for: "The tax payers who, pursuant to pertinent provisions request in their tax returns depreciation installments exceeding the value of installments registered in the profit and loss statement, for the tax deduction on higher value to be applicable, must appropriate from the profits of the respective taxable year as on-distributable reserve, a sum equivalent to seventy per cent (70%) of such higher value requested 140,806,472,531 COP out of 2016 profits must be allocated to said reserve.

4. In accordance with items before, The adjusted profit of 2017 is 70,969,675 COP

5. Given the adjusted profit is neither efficient nor practical distribute it as dividend, the proposal is add it to the occasional reserve to uphold the risk rating valued.

RESOLVES:

1. Apply net profit of 140,877,442,206 COP obtained in the period January 1st to December 31st, 2016, as follows:

2. Establish the reserve set out in Article 130 of the Tax Statute, for the sum of 140,806,472,531 COP

3. Consequently:

   Net profit 140,877,442,206 COP

   Reserve Art. 130 (140,806,472,531 COP)

   Adjusted profit 70,969,675 COP

4. Allocate the adjusted profit of 70,969,675 COP to increase the occasional reserve to uphold the risk rating valued.