----

| INTERPRETATION AND DEFINITION      | 8                                                         |
|------------------------------------|-----------------------------------------------------------|
|                               |                                                      |   |
| ARTICLE 1 CREDIT AND DISBURSEMENTS | 15                                                        |
|                               |                                                      |   |
| 1.01                               | AMOUNT OF CREDIT                                          | 15 |
| 1.02                               | DISBURSEMENT PROCEDURE                                    | 15 |
| 1.02A                              | TRANCHES                                                  | 15 |
| 1.02B                              | DISBURSEMENT REQUEST                                      | 16 |
| 1.02C                              | DISBURSEMENT NOTICE                                       | 16 |
| 1.02D                              | Disbursement Procedure  for BRL-Linked Tranches | 17 |
|                               |                                                      |   |
| 1.02E                              | DISBURSEMENT ACCOUNT                                      | 18 |
| 1.03                               | CURRENCY OF DISBURSEMENT                                  | 18 |
| 1.04                               | CONDITIONS  OF DISBURSEMENT                     | 18 |
| 1.04A                              | FIRST TRANCHE                                             | 18 |
| 1.04B                              | ALL TRANCHES                                              | 19 |
| 1.05                               | DEFERMENT OF DISBURSEMENT                                 | 20 |
| 1.05A                              | GROUNDS FOR DEFERMENT                                     | 20 |
| 1.05B                              | DEFERMENT INDEMNITY                                       | 21 |
| 1.05C                              | SWAP INDEMNITY                                            | 21 |
| 1.05D                              | CANCELLATION OF A DISBURSEMENT DEFERRED BY 6 (SIX) MONTHS | 21 |
| 1.06                               | CANCELLATION AND SUSPENSION                               | 22 |
| 1.06A                              | BORROWER’S RIGHT TO CANCEL                          | 22 |
| 1.06B                              | BANK’S RIGHT TO SUSPEND AND CANCEL                  | 22 |
| 1.06C                              | INDEMNITY FOR SUSPENSION AND CANCELLATION OF TRANCHE      | 22 |
| 1.06C(1)                           | SUSPENSION                                                | 22 |
| 1.06C(2)                           | CANCELLATION                                              | 22 |
| 1.07                               | CANCELLATION AFTER EXPIRY OF THE CREDIT                   | 23 |
| 1.08                               | SUMS DUE UNDER ARTICLE 1                                  | 23 |
|                               |                                                      |   |
| ARTICLE 2 THE LOAN                 |   23                                                 |
|                               |                                                      |   |
| 2.01                               | AMOUNT OF LOAN                                            | 23 |
| 2.02                               | CURRENCY OF REPAYMENT, INTEREST AND OTHER CHARGES         | 23 |
| 2.03                               | CONFIRMATION BY THE BANK                                  | 23 |
|                               |                                                      |   |
| ARTICLE 3  INTEREST      | 24                                                        |
|                               |                                                      |   |
| 3.01                               | RATE OF INTEREST                                          | 24 |
| 3.01A                              | FIXED RATE TRANCHES                                       | 24 |
| 3.01B                              | FLOATING RATE TRANCHES                                    | 24 |
| 3.02                               | INTEREST ON OVERDUE SUMS                                  | 24 |
| 3.03                               | MARKET DISRUPTION EVENT                                   | 25 |
|                               |                                                      |   |
| ARTICLE 4 REPAYMENT                | 25                                                        |
|                               |                                                      |   |
| 4.01                               | NORMAL REPAYMENT                                          | 25 |
| 4.01A                              | REPAYMENT BY INSTALMENTS                                  | 25 |
| 4.01B                              | SINGLE INSTALMENT                                         | 26 |
| 4.02                               | VOLUNTARY PREPAYMENT                                      | 26 |
| 4.02A                              | PREPAYMENT OPTION                                         | 26 |
| 4.02B                              | PREPAYMENT INDEMNITY                                      | 26 |
| 4.02B(1)                           | FIXED RATE TRANCHE                                        | 26 |
| 4.02B(2)                           | FLOATING RATE TRANCHE                                     | 26 |
| 4.02C                              | PREPAYMENT MECHANICS                                      | 26 |
| 4.02D                              | PREPAYMENT MECHANICS OF A BRL-LINKED TRANCHE              | 27 |
| 4.03                               | COMPULSORY PREPAYMENT                                     | 27 |
| 4.03A                              | GROUNDS FOR PREPAYMENT                                    | 27 |
| 4.03A(1)                           | PROJECT COST REDUCTION                                    | 27 |
| 4.03A(2)                           | PARI PASSU TO NON-EIB FINANCING                           | 27 |
| 4.03A(3)                           | CHANGE OF CONTROL                                         | 28 |
| 4.03A(4)                           | CHANGE OF LAW                                             | 29 |
| 4.03A(5)                           | MODIFICATION/LOSS-OF-LICENCE EVENT                        | 29 |

----

| 4.03A(6)                                           | MERGER                                                     | 30     |
|----------------------------------------------------|------------------------------------------------------------|--------|
| 4.03A(7)                                           | ILLEGALITY                                                 | 30     |
| 4.03A(8)                                           | MATERIAL ADVERSE CHANGE                                    | 31     |
| 4.038                                              | PREPAYMENT MECHANICS                                       | 31     |
| 4.03C                                              | PREPAYMENT INDEMNITY                                       | 31     |
| 4.04                                               | GENERAL                                                    | 31     |
|                                               |                                                       |   |
| ARTICLE 5 PAYMENTS                                 | 31                                                         |
|                                               |                                                       |   |
| 5.01                                               | DAY COUNT CONVENTION                                       | 31     |
| 5.02                                               | TIME AND PLACE OF PAYMENT                                  | 32     |
| 5.03                                               | SET-OFF                                                    | 32     |
| 5.04                                               | DISRUPTION TO PAYMENT SYSTEMS                              | 32     |
| 5.05                                               | EXCEPTIONAL PAYMENT BY MEANS OF SUBSTITUTE FINANCIAL ASSET | 33     |
| A.                                                 | DEFINITIONS                                                | 33     |
| B.                                                 | PROCEDURES IN CASE OF POTENTIAL NTC EVENT OR NTC EVENT     | 34     |
| C.                                                 | THE BANK’S DETERMINATION OF NTC EVENT                | 34     |
|                                               |                                                       |   |
| ARTICLE 6 BORROWER UNDERTAKINGS AND REPRESENTATION | 35                                                         |
|                                               |                                                       |   |
| 6.01                                               | USE OF LOAN AND AVAILABILITY Of OTHER FUNDS                | 35     |
| 6.03                                               | INCREASED COST OF PROJECT                                  | 36     |
| 6.04                                               | PROCUREMENT PROCEDURE                                      | 36     |
| 6.05                                               | CONTINUING PROJECT UNDERTAKINGS                            | 36     |
| 6.06                                               | DISPOSAL OF ASSETS                                         | 37     |
| 6.07                                               | COMPLIANCE WITH LAWS                                       | 37     |
| 6.08                                               | CHANGE IN BUSINESS                                         | 37     |
| 6.09                                               | GENERAL REPRESENTATIONS AND WARRANTIES                     | 37     |
| 6.10                                               | AUDITING OF FINANCIAL STATEMENTS                           | 39     |
| 6.11                                               | BORROWER’S DECLARATION                               | 39     |
| 6.12                                               | INTEGRITY COMMITMENT                                       | 39     |
|                                               |                                                       |   |
| ARTICLE 7 SECURITY                                 | 40                                                         |
|                                               |                                                       |   |
| 7.01                                               | TIMP GUARANTEE                                             | 40     |
| 7.02                                               | GUARANTEE AND INDEMNITY                                    | 40     |
| 7.03                                               | OTHER COLLATERAL AND SUBSTITUTION OF GUARANTOR             | 41     |
| 7.038                                              | GUARANTOR DEFAULT EVENT                                    | 41     |
| 7.04                                               | NEGATIVE PLEDGE                                            | 42     |
| 7.05                                               | PARI PASSU RANKING                                         | 42     |
|                                               |                                                       |   |
| ARTICLE 8 INFORMATION AND VISITS                   | 43                                                         |
|                                               |                                                       |   |
| 8.01                                               | INFORMATION CONCERNING THE PROJECT                         | 43     |
| 8.02                                               | INFORMATION CONCERNING THE BORROWER AND TIMP               | 43     |
| 8.03                                               | VISITS BY THE BANK                                         | 44     |
| 8.04                                               | INFORMATION ON ORIGINATING EVENTS                          | 45     |
| 8.05                                               | INVESTIGATIONS AND INFORMATION                             | 45     |
|                                               |                                                       |   |
| ARTICLE 9 CHARGES AND EXPENSES                     | 45                                                         |
|                                               |                                                       |   |
| 9.01                                               | TAXES, DUTIES AND FEES                                     | 45     |
| 9.02                                               | OTHER CHARGES                                              | 45     |
|                                               |                                                       |   |
| ARTICLE 10 EVENTS OF DEFAULT                       | 46                                                         |
|                                               |                                                       |   |
| 10.01                                              | RIGHT TO DEMAND REPAYMENT                                  | 46     |
| 10.01A                                             | IMMEDIATE DEMAND                                           | 46     |
| 10.01B                                             | DEMAND AFTER NOTICE TO REMEDY                              | 47     |
| 10.02                                              | OTHER RIGHTS AT LAW                                        | 47     |
| 10.03                                              | INDEMNITY                                                  | 47     |
| 10.03A                                             | FIXED RATE TRANCHES                                        | 47     |
| 10.03B                                             | FLOATING RATE TRANCHES                                     | 48     |
| 10.03C                                             | GENERAL                                                    | 48     |
| 10.04                                              | NON-WAIVER                                                 | 48     |
| 10.05                                              | APPLICATION OF SUMS RECEIVED                               | 48     |

----

| ARTICLE 11 LAW AND JURISDICTION |   48                       |
|---------------------------------|---------------------------------|
|                            |                            |   |
| 11.01                           | GOVERNING LAW                   | 48 |
| 11.02                           | JURISDICTION                    | 48 |
| 11.03                           | AGENT OF SERVICE                | 49 |
| 11.04                           | EVIDENCE OF SUMS DUE            | 49 |
|                            |                            |   |
| ARTICLE 12 FINAL CLAUSES        |   49                       |
|                            |                            |   |
| 12.01                           | NOTICES TO EITHER PARTY         | 49 |
| 12.02                           | FORM OF NOTICE                  | 49 |
| 12.03                           | COMPLETE AGREEMENT              | 50 |
| 12.04                           | PARTIAL INVALIDITY              | 50 |
| 12.05                           | THIRD PARTY RIGHTS              | 50 |
| 12.06                           | COUNTERPARTS                    | 50 |
| 12.07                           | RECITALS, SCHEDULES AND ANNEXES | 50 |
| 12.08                           | PLACE OF PAYMENT                | 51 |
| SCHEDULE A                                                                         | 52        |
|------------------------------------------------------------------------------------|-----------|
|                                                                               |      |
| PROJECT SPECIFICATION AND REPORTING                                                | 52        |
|                                                                               |      |
| A.1 TECHNICAL DESCRIPTION (ARTICLE 6.02)                                           | 52        |
| A.2 INFORMATION DUTIES UNDER ARTICLE 8.01(A)                                       | 52        |
|                                                                               |      |
| APPENDIX A.2                                                                       | 53        |
|                                                                               |      |
| PROJECT INFORMATION TO BE SENT TO THE BANK AND METHOD OF TRANSMISSION              | 53        |
|                                                                               |      |
| SCHEDULE B                                                                         | 55        |
|                                                                               |      |
| DEFINITIONS OF EURIBOR AND LIBOR                                                   | 55        |
|                                                                               |      |
| SCHEDULE C                                                                         | 57        |
|                                                                               |      |
| C.1 FORM OF DISBURSEMENT REQUEST (ARTICLE 1.02B)                                   | 57        |
| C.2 FORM OF CERTIFICATE FROM BORROWER (ARTICLE 1.04b)                              | 59        |
|                                                                               |      |
| SCHEDULE D                                                                         | 60        |
|                                                                               |      |
| D.1 FORM OF DISBURSEMENT REQUEST(ARTICLE 1.02D)                                    | 60        |
|                                                                               |      |
| SCHEDULE D                                                                         | 62        |
|                                                                               |      |
| D.2 FORM OF DISBURSEMENT  NOTICE FOR BRL-LINKED TRANCHES (ARTICLE 1.02D) |   62 |

----

| The European Investment Bank having its seat at 100 blvd Konrad Adenauer, Luxembourg, L-2950 Luxembourg, represented by  Mr. Patrick Walsh, Director. and Mr. Richard Amor, Legal Counsel |   |  (the “Bank”) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|

| Tim Celular S.A., a company incorporated in Brazil, having its registered office at  Avenida Giovanni Gronchi , 7143  Vila   Andrade, São Paulo, SP (CEP 05724-006) represented by Mr. Francesco Mancini and Mr. Stefano D’Ovidio |   | (the “Borrower”) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|

----

| (1) | The Borrower has stated that it is undertaking  an investment  programme  for the geographical coverage expansion and capacity increase of its GSM and UMTS mobile broadband networks in Brazil, as more particularly described in the technical description (the “Technical Description”) set out in Schedule A (the “Project”). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The Borrower is a company established in, and having its principal place of business in, Brazil and ultimately controlled by Telecom Italia SpA. At present, the Borrower provides cellular telecommunications services in Brazil, in seventeen (26) States and the in Federal District pursuant to licences granted by Agencia Nacional de Telecomunicações (“Anatel). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The total cost of the Project is estimated by the Bank to be approximately  EUR 1014 000 000 (one billion and fourteen million euros) and the Borrower has stated that it intends to finance the Project as follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Source                                                                                                                         |   | Amount (M EUR) |
|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                           |   |           |
| Own funds                                                                                                                      |   | 761            |
|                                                                                                                           |   |           |
| Term financing provided by Banco Nacional de Desenvolvimento Economico   e  Social  - BNDES |   | 153.0          |
|                                                                                                                           |   |           |
| Credit from the Bank                                                                                                           |   | 100            |
|                                                                                                                           |   |           |
|                                                                                                                           |   |           |
|                                                                                                                           |   |           |
|                                                                                                                           |   |           |
| TOTAL                                                                                                                          |   |  1014.0   |

| (4) | In order to complete the financing, the Borrower, pursuant to the Asia and Latin America (1/2/2007-3112/2013) Mandate IV and the framework agreement signed between the  Federative Republic of Brazil and the Bank on 19th December 1994 and ratified by  Decreto Legislative No 85 of 30 May and Decreto Legislative No 1609 of 28 August, both 1995, the “Framework Agreement”) has requested from the Bank a loan to be made from the Bank’s own resources in an amount of EUR 200 000 000 (two hundred million euros). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Pursuant to the Framework Agreement, the Government of Brazil has acknowledged by letter dated 15 October 2010 that the financing granted under this finance contract (this “Contract”) falls within the scope of application of the Framework Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The Bank, being satisfied that the financing of the Project falls within the scope of its functions and conforms to the aims of the Framework Agreement and having regard to the matters recited above, has decided to give effect to the Borrower’s request by granting to the Borrower a credit in an amount of EUR 100 000 000 (one hundred million euros) under this Contract; for the avoidance of doubt it is noted that the Bank considered the Borrower’s request for a loan of EUR 200 000 000 (two hundred million euros) but taking into account the amount of project expenditure expected to be incurred during the availability period, the Parties agreed to a loan in the amount of EUR 100 000 000 (one hundred million euros). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (7) | The financial obligations of the Borrower hereunder are to be guaranteed by means of a guarantee and indemnity agreement  in respect of the Credit in form and substance satisfactory to the Bank (the “Guarantee” or the “Guarantee Agreement”) provided by a guarantor or guarantors acceptable to the Bank (each a “Guarantor”). Each Guarantor shall be a Qualifying Guarantor (as defined in Article 7.01). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | TIM Participaçõoes S.A (“TIMP”), the Brazilian parent company of the Borrower, has agreed  to execute a guarantee  and indemnity  agreement, in form and substance satisfactory to the Bank, whereby it undertakes to further guarantee and indemnify the Bank for the financial obligations of the Borrower (the “TIMP Guarantee ). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | According to Council/EP Decision 633/2009 on granting a Community guarantee to the Bank against all losses under loans and loan guarantees for projects  outside the Community, in the event of non-payment, the Community, by a guarantee, covers all payments not received by the Bank and due to it in relation to the Bank’s financing operations entered into with, inter alia, the Borrower (the “EC Guarantee”). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | The Board of Directors of the Borrower has authorised the entry into this Contract and the undersigned has/have been duly authorised to execute this Contract on its behalf in the terms of Annex 1. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | The Statute of the Bank provides that the Bank shall ensure that its funds are used as rationally as possible in the interests of the European Community; and, accordingly, the terms and conditions of the Bank’s loan operations must be consistent with relevant European  Community policies. In accordance  with  the  Recommendations of  the Financial Action Task Force, as established within the Organisation for Economic Cooperation and Development, the Bank gives special attention to its transactions and its business relations in those cases where it provides finance (a) for a project located in a country that does not sufficiently apply those recommendations or (b) for a borrower or beneficiary resident in any such country. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | The Bank considers that access to information plays an essential role in the reduction of environmental and social risks, including human rights violations, linked to the projects it finances. The Bank has therefore established its Transparency policy, the purpose of which is to enhance the accountability of the EIB Group towards its stakeholders and the EU citizens in general, by giving access to the information that will enable them to understand its governance, strategy, policies, activities and practices. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | Interpretation |
|-----|----------------|

|   | (i) | References in this Contract to Articles, Recitals, Schedules and Annexes are, save if explicitly stipulated otherwise, references respectively to articles of, and recitals, schedules and annexes to this Contract. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (ii) | References in this Contract to a provision of law is a reference to that provision in full force and effect as amended from time to time or re-enacted. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iii) | References in this Contract to any other agreement or instrument is a reference to that other agreement or instrument in full force and effect as amended from time to time, novated, supplemented, extended or restated. |
|--------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Definitions |
|-----|-------------|

|   | In this Contract: |
|--------|-------------------|

|   | “Acceptance Deadline” for a notice means: |
|--------|-------------------------------------------------------|

|   | (a) | 16h00 Luxembourg time on the day of delivery, if the notice is delivered by 14h00 Luxembourg time on a Business Day; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (b) | 11h00 Luxembourg time on the next following day which is a Business Day, if the notice is delivered after 14h00 Luxembourg time on any such day or is delivered on a day which is not a Business Day. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Additional Prepayment Amount” means the greater of zero and the Swap Unwind Amount. “BLT Disbursement Request” has the meaning attributed to it in Article 1.02D1. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Brazil” means the Federative Republic of Brazil. |
|--------|---------------------------------------------------------------|

|   | “BRL-Linked Tranche” has the meaning attributed to it in Article 1.02D1. |
|--------|--------------------------------------------------------------------------------------|

|   | “BRL Redeployment Rate” means the floating rate, expressed as three-month LIBOR USD plus a spread in effect on the Prepayment Date on the basis of which the Bank would make an offer to a borrower established in the country in which the Borrower is established for a USD loan having the same terms for the payment of interest and the same repayment profile to Maturity Date as the Prepayment Amount, less 15 basis points (0.15%). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Business Day” means a day (other than a Saturday or Sunday) on which the Bank and commercial banks are open for general business in Luxembourg. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Change-of-Control Event” has the meaning given to it in Article 4.03A(3). |
|--------|----------------------------------------------------------------------------------------|

|   | “Change-of-law Event” has the meaning given to it in Article 4.03A(4). |
|--------|------------------------------------------------------------------------------------|

|   | “Contract has the meaning given to it in Recital (5). |
|--------|-------------------------------------------------------------|

|   | “Credit” has the meaning given to it in Article 1.01. |
|--------|-------------------------------------------------------------------|

|   | “Credit Rating” means any of the following ratings as assigned by a Rating Agency in respect of any Guarantor: |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the rating assigned to a Guarantor’s most recent unsecured and unsubordinated medium or long term debt; |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (b) | the Long Term Issuer Credit Rating (or equivalent) defined as such by Standard and Poor’s Rating Group or its successor; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Corporate Credit Rating (or equivalent) defined as such by Standard and Poor’s Rating Group or its successor; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | the Long Term Issuer Default Rating (or equivalent) defined as such by Fitch Ratings Limited or its successor; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (e) | the Long Term Issuer Rating (or equivalent) defined as such by Moody’s Investor Services, Inc. or its successor; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the long Term Foreign Currency Deposit Rating (or equivalent) defined as such by Moody’s Investor Services, Inc. or its successor; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | in each of the cases (b) to (f) above the terms defined shall be deemed to refer to any equivalent term irrespective of the definition given to it) and excludes any rating qualified by the terms “National Scale”, “NSR”, “Local”, “Local Currency”, “Domestic” or “Domestic Currency”. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Disbursement Notice” means a notice from the Bank to the Borrower pursuant to and in accordance with Article 1.02C. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | “Disbursement Request” means a notice substantially in the form set out in Schedule C.1. |
|--------|------------------------------------------------------------------------------------------------------|

|   | “Disruption Event” means either or both of: |
|--------|---------------------------------------------------------|

|   | (a) | a material disruption to those payment or communications systems or to those financial markets which are, in each case. required to operate in order for payments to be made in connection with this Contract; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the occurrence of any other event which results in a disruption (of a technical or systems related nature) to the treasury or payments operations of either the Bank or the Borrower, preventing that party: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | from performing its payment obligations under this Contract; or |
|--------|-----|-----------------------------------------------------------------|

|   | (ii) | from communicating with other parties, |
|--------|------|----------------------------------------|

|   | (a) | fauna and flora; |
|--------|-----|------------------|

|   | (b) | soil, water, air, climate and the landscape; and |
|--------|-----|--------------------------------------------------|

|   | (c) | cultural heritage and the built environment, |
|--------|-----|----------------------------------------------|

|   | (a)  | EU law, standards and principles as specified by the Bank before the date of this Contract; |
|--------|-----------|---------------------------------------------------------------------------------------------|

|   | (b)  | laws and regulations of Brazil; and |
|--------|-----------|-------------------------------------|

|   | (c)  | applicable international treaties, |
|--------|-----------|------------------------------------|

----

|   | (a) | the Bank would, on the effective date of the swap, pay an amount in USD (the “USD Initial Exchange Amount”) calculated by reference to the principal amount of the BRL­ Linked Tranche at an exchange rate determined by the Bank (the “Original Exchange Rate”); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Bank would, on the effective date of the swap, receive an amount in BRL equal to the amount of the relevant BRL-Linked Tranche (the “BRL Initial Exchange Amount”); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Bank would make periodic payments in BRL throughout the life of the swap equal to the aggregate of (A) a sum equal to, in the case of a BRL-Linked Tranche that is due to be repaid by instalments, the scheduled repayments of principal on such BRL-Linked Tranche as they fall due pursuant to Article 4.01 (“BRL Principal Instalments”) and (B) a sum calculated as a fixed rate (the “BRL Periodic Rate”) on the BRL Initial Exchange Amount (minus any BRL Principal Instalments already paid) equal to the total rate of interest charged under this Contract on the relevant BRL Tranche pursuant to Article 3.01A; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the Bank would receive periodic payments in USD throughout the life of the swap equal to the aggregate of (A) a sum equal to, in the case of a BRL-linked Tranche that is due to be repaid by instalments, the USD equivalents of the BRL Principal Instalments (“USD Principal Instalments”) calculated at the Original Exchange Rate and (B) a sum calculated as a certain floating rate (the “USD Periodic Rate”) on the USD Initial Exchange Amount (minus any USO Principal Instalments already paid); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the Bank would, on the termination date of the swap, pay an amount in BRL equal to the BRL Initial Exchange Amount minus any BRL Principal Instalments already paid (the “BRL Final Exchange Amount”); and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the Bank would, on the termination date of the swap, receive an amount in USD equal to the USD Initial Exchange Amount minus any USO Principal Instalments already paid (the “USD Final Exchange Amount”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  (a) | there are, in the reasonable opinion of the Bank, exceptional circumstances adversely affecting the Bank’s access to its sources of funding; |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in the opinion of the Bank, funds are not available from its ordinary sources of funding to fund such Tranche in the relevant currency and/or for the relevant maturity and/or in relation to the reimbursement profile of such Tranche; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In relation to Tranche in respect of which interest is payable at Floating Rate: |
|--------|-----|----------------------------------------------------------------------------------|

|   | (A) | the cost to the Bank of obtaining funds from its sources of funding, as determined by the Bank, for a period equal to the Floating Rate Reference Period of a Tranche (i.e. in the money market) would be in excess of the applicable Relevant Interbank Rate; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | the Bank determines that adequate and fair means do not exist for ascertaining the applicable Relevant Interbank Rate for the relevant currency of such Tranche or it is not possible to determine the Relevant Interbank Rate in accordance with the definition contained in Schedule B. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the ability of the Borrower or TIMP to perform its payment obligations under this Contract or the TIMP Guarantee; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (b) | the business or the financial condition of the Borrower, TIMP or the Group as a whole; or |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (c) | the validity or enforceability of, or the effectiveness or ranking of, or the value of any security granted to the Bank, or the rights or remedies of the Bank under this Contract or the TIMP Guarantee. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | for a Fixed Rate Tranche, the following Relevant Business Day, without adjustment to the interest due under Article 3.01 except for those cases where repayment is made in a single instalment according to Article 4.01B, when the preceding Relevant Business Day shall apply instead to this single instalment and last interest payment and only in this case, with adjustment to the interest due under Article 3.01; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | for a Floating Rate Tranche, the next day, if any, of that calendar month that is a Relevant Business Day or, failing that, the nearest preceding day that is a Relevant Business Day, in all cases with corresponding adjustment to the interest due under Article 3.01. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the Borrower shall specify the proposed Pricing Date in the BLT Disbursement Request for the relevant BRL-Linked Tranche; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if the matters set out in the relevant BLT Disbursement Request are not agreed on the date specified by the Borrower in the BLT Disbursement Request as the Pricing Date, the Pricing Date shall instead be the date on which the relevant matters are agreed; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the agreement reached on the Pricing Date shall also be recorded in writing by the Bank at a later date, no longer than 5 days from the telephone conference call, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | for EUR, a day which is a TARGET DAY; and |
|--------|-----|-------------------------------------------|

|   | (b) | for any other currency, a day on which banks are open for general business in the principal domestic financial centre of the relevant currency. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | EURIBOR for a Tranche denominated in EUR; |
|--------|-----|-------------------------------------------|

|   | (b) | LIBOR for a Tranche denominated in USD; and |
|--------|-----|---------------------------------------------|

|   | (c) | the market rate and its definition chosen by the Bank and separately communicated to the Borrower, for a Tranche denominated in any other currency. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  (i) | the amount equivalent to the BRL Initial Exchange Amount and BRL Final Exchange Amount shall be the principal amount outstanding of the BRL-Linked Tranche to be prepaid; |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (ii) | the amount equivalent to the USD Initial Exchange Amount and USD Final Exchange Amount shall be the USD equivalent of the principal amount outstanding of the BRL­Linked Tranche to be prepaid, calculated at the Original Exchange Rate; |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iii) | the rate equivalent to the BRL Periodic Rate shall be equal to the total rate of interest charged under this Contract on the relevant BRL-Linked Tranche pursuant to Article 3.01A; |
|--------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iv) | the rate equivalent to the USD Periodic Rate shall be the BRL Redeployment Rate; and |
|--------|------------|--------------------------------------------------------------------------------------|

|   | (v) | the effective date of the Unwinding Swap will be the prepayment date of the relevant BRL-Linked Tranche if such date was a Payment Date with respect to the relevant BRL linked Tranche or, if it was not a Payment Date with respect to the relevant BRL-linked Tranche, the immediately preceding Payment Date with respect to the relevant BRL­Linked Tranche and the termination date of the Unwinding Swap will be the termination date of the relevant Funding Swap. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.01  | Amount of Credit |
|------------|------------------|

| 1.02  | Disbursement procedure |
|------------|------------------------|

| 1.02A  | Tranches |
|-------------|----------|

| 1.02B  | Disbursement Request |
|-------------|----------------------|

|   |  (a) | The Borrower may present to the Bank a Disbursement Request for the disbursement of a Tranche, to be received by the latest on or prior to 15 (fifteen) days before the Final Availability Date. The Disbursement Request shall be in the form set out in Schedule C and shall specify: |
|--------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the amount and currency of the Tranche; |
|--------|-----|-----------------------------------------|

|   | (ii) | the preferred disbursement date for the Tranche; such preferred disbursement date must be a Relevant Business Day falling at least 15 (fifteen) days after the date of the Disbursement Request and on or before the Final Availability Date, it being understood that the Bank may disburse the Tranche up to 4 (four) calendar months from the date of the Disbursement Request; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | whether the Tranche is a Fixed Rate Tranche or a Floating Rate Tranche, each pursuant to the relevant provisions of Article 3.01; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the preferred terms for repayment of principal for the Tranche, chosen in accordance with Article 4.01; |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | (v) | the preferred first and last dates for repayment of principal for the Tranche; and |
|--------|-----|------------------------------------------------------------------------------------|

|   | (vi) | the IBAN code (or appropriate format in line with local banking practice) and SWIFT BIC of the bank account to which disbursement of the Tranche should be made in accordance with Article 1.02E. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If the Bank, following a request by the Borrower, has provided the Borrower, before the submission of the Disbursement Request, with a non-binding fixed interest rate or spread quotation to be applicable to the Tranche, the Borrower may also at its discretion specify in the Disbursement Request such quotation, that is to say: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in the case of a Fixed Rate Tranche, the aforementioned fixed interest rate previously quoted by the Bank; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (ii) | in the case of a Floating Rate Tranche, the aforementioned spread previously quoted by the Bank, |
|--------|------|--------------------------------------------------------------------------------------------------|

----

|   | (b) | (bis) The Borrower may at its discretion specify in the Disbursement Request a maximum fixed interest rate or maximum spread applicable to the Tranche until the Maturity Date. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Each Disbursement Request shall be accompanied by evidence of the authority of the person or persons authorised to sign it and the specimen signature of such person or persons. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)  | Subject to Article 1.02C(b), each Disbursement Request is irrevocable. |
|--------|-----------|------------------------------------------------------------------------|

| 1.02C  | Disbursement Notice |
|-------------|---------------------|

|   | (a) | Not less than 10 (ten) days before the proposed Scheduled Disbursement Date of a Tranche the Bank shall, if the Disbursement Request conforms to this Article 1.02, deliver to the Borrower a Disbursement Notice which shall specify: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the currency, amount and EUR equivalent of the Tranche; |
|--------|-----|---------------------------------------------------------|

|   | (ii) | the Scheduled Disbursement Date; |
|--------|------|----------------------------------|

|   | (iii) | the interest rate basis for the Tranche; |
|--------|-------|------------------------------------------|

|   | (iv) | the first interest Payment Date for the Tranche; |
|--------|------|--------------------------------------------------|

|   | (v) | the terms for repayment of principal for the Tranche; |
|--------|-----|-------------------------------------------------------|

|   | (vi) | the first and last dates for repayment of principal for the Tranche; |
|--------|------|----------------------------------------------------------------------|

|   | (vii) | the applicable Payment Dates for the Tranche; and |
|--------|-------|---------------------------------------------------|

|   | (viii) | for a Fixed Rate Tranche the Fixed Rate and for a Floating Rate Tranche the |
|--------|--------|-----------------------------------------------------------------------------|

|   | (b) | If one or more of the elements specified in the Disbursement Notice does not reflect the corresponding element, if any, in the Disbursement Request, the Borrower may following receipt of the Disbursement Notice revoke the Disbursement Request by written notice to the Bank to be received no later than 12h00 Luxembourg time on the next Business Day and thereupon the Disbursement Request and the Disbursement Notice shall be of no effect. If the Borrower has not revoked in writing the Disbursement Request within such period, the Borrower will be deemed to have accepted all elements specified in the Disbursement Notice. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If the Borrower has presented to the Bank a Disbursement Request in which the Borrower has not specified the fixed interest rate or spread as set out in Article 1.02B(b), the Borrower will be deemed to have agreed in advance to the Fixed Rate or Spread as subsequently specified in the Disbursement Notice. If the Borrower has presented to the Bank a Disbursement Request in which the Borrower has specified the maximum fixed interest rate or maximum spread referred to in Article 1.02B(b)/(bis), the Borrower will be deemed to have agreed in advance to the Fixed Rate or Spread as subsequently specified in the Disbursement Notice, to the extent that such Fixed Rate or Spread are equal to or less than the maximum fixed interest rate or maximum spread that were specified by the Borrower in the Disbursement Request. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.02D  | Disbursement Procedure for BRL-Linked Tranches |
|-------------|------------------------------------------------|

| 1.  | BLT Disbursement Request |
|----------|--------------------------|

|   |  (i) | the proposed Pricing Date, provided that no BLT Disbursement Request may propose a Pricing Date which is within 3 Business Days of any other proposed Pricing Date; |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (ii) | the requested BRL amount of the BRL-Linked Tranche (and the estimated equivalent USD amount); |
|--------|------------|-----------------------------------------------------------------------------------------------|

|   |  (iii) | the preferred Scheduled Disbursement Date for such BRL-Linked Tranche, which shall be a date falling not less than twenty (20) Business Days after the date of the BLT Disbursement Request; |
|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iv) | the preferred principal repayment characteristics tor the BRL-Linked Tranche which may be on an amortizing or bullet basis provided that : |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if the BLT Disbursement Request is for an amortizing BRL-Linked Tranche, the first repayment date shall fall no earlier than 4 (four) years after disbursement and the final repayment date shall fall no later than 10 (ten) years after disbursement; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if the BLT Disbursement Request is for a bullet BRL-Linked Tranche, the repayment date shall fall no earlier than 3 (three) years and no later than 7 (seven) years after disbursement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.  | The Bank’s Offer |
|----------|------------------------|

----

| 3.  | Occurrence of a Pricing Date |
|----------|------------------------------|

| 1.02E  | Disbursement Account |
|-------------|----------------------|

| 1.03  | Currency of disbursement |
|------------|--------------------------|

| 1.04  | Conditions of disbursement |
|------------|----------------------------|

| 1.04A  | First Tranche |
|-------------|---------------|

|   | (i) | evidence that all action necessary to exempt from taxation in Brazil all payments of principal, interest and other sums due to the Bank hereunder and to permit the payment of all such sums gross without deduction of tax at source shall have been taken; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | an original copy of the Guarantee duly executed by the Guarantor in accordance with Article 7.02 as well as adequate documentary evidence of the authority of the signatories of the Guarantor; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the TIMP Guarantee duly executed together with a legal opinion on due execution of the TIMP Guarantee by TIMP and on the validity and enforceability of TIMP’s obligations under the TIMP Guarantee; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | evidence (i) of the appointment by the Borrower, TIMP, and each Guarantor of its agent for service of process in the United Kingdom and (ii) of the acceptance by the latter of its appointment; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (v) | evidence of the authority of the person or persons authorised to sign Disbursement Requests and the authenticated specimen signature of such person or persons in the form of Annex I and Annex II; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | legal opinions in the English language and in form and substance acceptable to the Bank from: (i) counsel to the Borrower regarding the due execution by, and, validity and enforceability as against the Borrower of this Contract (ii) counsel to the relevant Guarantor regarding the due execution by, and, validity and enforceability as against the Guarantor of the Guarantee; and (iii) counsel to TIMP regarding the due execution by, and, validity and enforceability as against TIMP of the TIMP Guarantee: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | evidence that (i) the Borrower has registered the terms and conditions of this Contract and the first Tranche to be disbursed under this Contract with the Central Bank of Brazil by means of the registration through the SISBACEN system named Registro de Operarações Financeiras (“ROF”) or any equivalent system applicable at the date of registration and that (ii) such ROF registration is valid and effective to allow the Borrower to receive the disbursement of the Tranche and, subsequently, to allow the Borrower to complement the ROF with the terms and conditions of the amortisation tables so as to enable the Borrower to comply in full with any of its payment obligations under or in connection with this Contract; and, |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | evidence that insurances in accordance with the requirements of Article 6.05 are in place, in the form of certified true copies of the relevant insurances or insurance brokers letters. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.04B  | All Tranches |
|-------------|--------------|

|   | (a) | receipt by the Bank in form and substance satisfactory to it, on or before the date falling 7 (seven) Business Days before the Scheduled Disbursement Date for the proposed Tranche, of the following documents or evidence: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)  | a certificate from the Borrower in the form of Schedule C.2; |
|--------|-----------|--------------------------------------------------------------|

|   | (ii) | a list of the contracts and invoices evidencing expenditure (net of taxes and duties payable in the Federative Republic of Brazil) already incurred or to be incurred within three (3) months from the Scheduled Disbursement Date by the Borrower in respect of items specified in the Technical Description as eligible for financing under the Credit, which contracts shall have been executed on terms reasonably satisfactory to the Bank having regard to the Bank’s Guide to Procurement (all such expenditure being herein referred to as “Qualifying Expenditure”) for a minimum aggregate value equal to or exceeding the amount of the Tranche to be disbursed by the Bank under this Contract; and, if requested by the Bank, certified true copies of invoices contracts and such other documents evidencing the said expenditure in the form of, inter alia, contracts and proof of payment; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the Borrower has registered the terms and conditions of such further Tranche to be disbursed under this Contract with the Central Bank of Brazil by means of the registration through the ROF or any equivalent system applicable at the date of registration; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | the ROF obtained by the Borrower pursuant to Article 1.04A(vii) is valid and effective to allow the Borrower to receive the disbursement of such further Tranche and, subsequently, to allow the Borrower to complement the ROF with the Schedule of Payments in the appropriate “Schedule of Payments” screen so as to enable the Borrower to comply in full with any of its payment obligations under or in connection with this Contract; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | that the Borrower has complemented the ROF with the Schedule of Payments for all previous Tranches disbursed under this Contract; and, |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | a copy of any other authorisation or other document, opinion or assurance which the Bank has notified the Borrower is necessary or desirable in connection with the entry into and performance of, and the transactions contemplated by, the Contract, the Guarantee and the TIMP Guarantee or the validity and enforceability of the same. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | that on the date of the Disbursement Request and on the Scheduled Disbursement Date for the proposed Tranche: |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (i) | the representations and warranties which are repeated pursuant to Article 6.09 are correct in an respects; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   |  (ii) | no event or circumstance which constitutes or would with the passage of time or giving of notice under this Contract constitute: |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | an event of default under Article 10.01, or |
|--------|------|---------------------------------------------|

|   | (bb) | a prepayment event under Article 4.03, or |
|--------|------|-------------------------------------------|

|   | (cc) | a Guarantor default event or an event as a result of which a Guarantor may become an Affected Guarantor, under Article 7.03, |
|--------|------|------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | on the date of the Disbursement Request and on the Scheduled Disbursement Date there is no event outstanding or prevailing which, with the lapse of time and the fulfilment of any other condition would constitute an Originating Event; and, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | on the date of the Disbursement Request and on the Scheduled Disbursement Date, the Guarantor is a Qualifying Guarantor as defined in Article 7.02. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.05  | Deferment of disbursement |
|------------|---------------------------|

| 1.05A  | Grounds for deferment |
|-------------|-----------------------|

----

| 1.05B  | Deferment Indemnity |
|-------------|---------------------|

|   | (a)  | shall be calculated using the day count convention applicable to R1; |
|--------|-----------|----------------------------------------------------------------------|

|   | (b)  | where R2 exceeds R1, shall be set at zero; and |
|--------|-----------|------------------------------------------------|

|   | (c)  | shall be payable in accordance with Article 1.08. |
|--------|-----------|---------------------------------------------------|

| 1.05C  | Swap Indemnity |
|-------------|----------------|

|   | (a) | such amount certified by the Bank as being the cost incurred by the Bank for deferring, cancelling or unwinding its hedging arrangements relating to such BRL­ Linked Tranche, such cost not to exceed the Additional Prepayment Amount (the Additional Prepayment Amount being a reference to payment due from the Borrower to the Bank and excluding any case where a payment might be due by the Bank under the unwinding process referred to in the definition of Unwinding Swap) in respect of the amount of the BRL-Linked Tranche the disbursement of which is deferred or suspended; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (b) | the properly incurred and documented legal and documentation expenses incurred by the Bank (if any) in connection with such deferment or suspension. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.050  | Cancellation of a disbursement deferred by 6 (six) months |
|-------------|-----------------------------------------------------------|

----

| 1.06  | Cancellation and suspension |
|------------|-----------------------------|

| 1.06A  | Borrower’s right to cancel |
|-------------|----------------------------------|

| 1.06B  | Bank’s right to suspend and cancel |
|-------------|------------------------------------------|

|   |  (i)  | upon the occurrence of an event or circumstance mentioned in Article 4.03A or 10.01; or |
|--------|-----------------|-----------------------------------------------------------------------------------------|

|   | (ii)  | if a Material Adverse Change occurs. |
|--------|------------|--------------------------------------|

|   |  (iii) | if an event which, with the lapse of time and the giving of notice under this Contract would constitute an Originating Event is, in the reasonable opinion of the Bank, imminent or prevailing; |
|--------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (iv) | if the warranties and undertakings regarding Integrity (Article 6.12) and Investigations (Article 8.05) shall not have been performed; |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 1.06C  | Indemnity for suspension and cancellation of a Tranche |
|-------------|--------------------------------------------------------|

| 1.06C(1) | SUSPENSION |
|----------|------------|

| 1.06C(2) | CANCELLATION |
|----------|--------------|

|   | (a) | a Fixed Rate Tranche which is a Notified Tranche, it shall indemnify the Bank under Article 4.02B; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | a Floating Rate Notified Tranche or any part of the Credit other than a Notified Tranche, no indemnity is payable. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

----

| 1.07  | Cancellation after expiry of the Credit |
|------------|-----------------------------------------|

| 1.08  | Sums due under Article 1 |
|------------|--------------------------|

| 2.01  | Amount of Loan |
|------------|----------------|

| 2.02  | Currency of repayment, interest and other charges |
|------------|---------------------------------------------------|

| 2.03 | Confirmation by the Bank |
|------|--------------------------|

----

----

| 3.01  | Rate of interest |
|------------|------------------|

| 3.01A  | Fixed Rate Tranches |
|-------------|---------------------|

| 3.01B  | Floating Rate Tranches |
|-------------|------------------------|

| 3.02  | Interest on overdue sums |
|------------|--------------------------|

----

| 3.03  | Market Disruption Event |
|------------|-------------------------|

| 4.01  | Normal repayment |
|------------|------------------|

| 4.01A  | Repayment by instalments |
|-------------|--------------------------|

|   | (a) | The Borrower shall repay each Tranche by instalments on the Payment Dates specified in the relevant Disbursement Notice in accordance with the terms of the amortisation table delivered pursuant to Article 2.03. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each amortisation table shall be drawn up on the basis that: |
|--------|-----|--------------------------------------------------------------|

|   | (i)  | repayment shall be made by equal, semi-annual instalments of principal; |
|--------|-----------|-------------------------------------------------------------------------|

|   | (ii) | the first repayment date of each Tranche shall be a Payment Date falling not earlier than 60 days from the Scheduled Disbursement Date (or, in case of deferment, the actual disbursement date) and not later than the first Payment Date immediately following the second anniversary of the Scheduled Disbursement Date of the Tranche; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the last repayment date of each Tranche shall be a Payment Date falling not earlier than 4 (four) years and not later than 12 (twelve) years from the Scheduled Disbursement Date; and, |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | in respect of a BRL-Linked Tranche, the last repayment date shall be determined in accordance with Article 1.02D1(iv)(a). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------|

----

| 4.01B  | Single instalment |
|-------------|-------------------|

| 4.02  | Voluntary prepayment |
|------------|----------------------|

| 4.02A  | Prepayment option |
|-------------|-------------------|

| 4.02B  | Prepayment indemnity |
|-------------|----------------------|

| 4.02B(1) | FIXED RATE TRANCHE |
|----------|--------------------|

|   | (a) | the interest that would accrue thereafter on the Prepayment Amount over the period from the Prepayment Date to the Maturity Date, if it were not prepaid; over |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the interest that would so accrue over that period, if it were calculated at the Redeployment Rate, less 0.15% (fifteen basis points). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| 4.02B(2) | FLOATING RATE TRANCHE |
|----------|-----------------------|

| 4.02C  | Prepayment mechanics |
|-------------|----------------------|

|   | (a)  | that it confirms the Prepayment Notice on the terms specified by the Bank; or |
|--------|-----------|-------------------------------------------------------------------------------|

|   | (b)  | that it withdraws the Prepayment Notice. |
|--------|-----------|------------------------------------------|

----

| 4.020  | Prepayment Mechanics of a BRL-Linked Tranche |
|-------------|----------------------------------------------|

|   | (a)  | that it confirms the Prepayment Notice on the terms specified by the Bank; or |
|--------|-----------|-------------------------------------------------------------------------------|

|   | (b)  | that it withdraws the Prepayment Notice. |
|--------|-----------|------------------------------------------|

| 4.03  | Compulsory prepayment |
|------------|-----------------------|

| 4.03A  | Grounds for prepayment |
|-------------|------------------------|

| 4.03A(1) | PROJECT COST REDUCTION |
|----------|------------------------|

| 4.03A(2) | PARI PASSU TO Non-EIB Financing |
|----------|---------------------------------|

----

| 4.03A(3) | CHANGE OF CONTROL |
|----------|-------------------|

|   | (a)  | a “Change-of Control Event” occurs if: |
|--------|-----------|----------------------------------------------------|

|   | (i) | any person or group of persons acting in concert gains control of the Borrower or of the entity directly or ultimately controlling the Borrower; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Telecom ltalia SpA ceases to control directly or indirectly more than 50% (fifty per cent) of the issued share capital of the Borrower and TlMP. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | “acting In concert” means acting together pursuant to an agreement or understanding (whether format or informal); and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “control” means (a) the ownership of more than fifty percent (50%) of the share capital or the voting rights of an entity; or (b) the power to appoint or remove the majority of members of the governing bodies of an entity. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.03A(4) | CHANGE OF LAW |
|----------|---------------|

| 4.03A(5) | MODIFICATION/LOSS-OF LICENCE EVENT |
|----------|------------------------------------|

----

|   | (a) | terminated, suspended or revoked or does not remain in full force and effect or otherwise expires; or, |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (b)  | declared to be unlawful or contrary to regulation or substantially and adversely modified, |
|--------|-----------|--------------------------------------------------------------------------------------------|

| 4.03A(6) | MERGER |
|----------|--------|

| 4.03A(7) | ILLEGALITY |
|----------|------------|

|   | (a) | it becomes unlawful in any applicable jurisdiction tor the Bank to perform any of its obligations as contemplated in this Contract or to fund or maintain the Loan; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Framework Agreement, the Mandate or the EU Guarantee is: |
|--------|-----|--------------------------------------------------------------|

|   | (i) | no longer valid or in full force and effect; |
|--------|-----|----------------------------------------------|

|   | (ii) | in respect of the Framework Agreement, repudiated by the Host Government or not binding on the Host Government in any respect; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in respect of the EU Guarantee, if the conditions for cover under the EU Guarantee are not fulfilled; or |
|--------|-------|----------------------------------------------------------------------------------------------------------|

----

|   | (iv) | not effective in accordance with its terms or is alleged by the Borrower to be ineffective in accordance with its terms |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

| 4.03A(8) | MATERIAL ADVERSE CHANGE |
|----------|-------------------------|

| 4.03B  | Prepayment mechanics |
|-------------|----------------------|

| 4.03C  | Prepayment Indemnity |
|-------------|----------------------|

| 4.04  | General |
|------------|---------|

| 5.01  | Day count convention |
|------------|----------------------|

----

|   | (a) | for a Fixed Rate Tranche, a year of 360 (three hundred and sixty) days and a month of 30 (thirty) days; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | for a Floating Rate Tranche, a year of 360 (three hundred and sixty) days and the number of days elapsed. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

| 5.02  | Time and place of payment |
|------------|---------------------------|

| 5.03  | Set-off |
|------------|---------|

| 5.04  | Disruption to Payment Systems |
|------------|-------------------------------|

|   | (a) | the Bank may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Contract as the Bank may deem necessary in the circumstances; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Bank shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Bank shall not be liable for any damages, costs or losses whatsoever arising as a result of a Disruption Event or for taking or not taking any action pursuant to or in connection with this Article 5.04. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.05.  | Exceptional Payment by means of Substitute Financial Asset |
|-------------|------------------------------------------------------------|

| A.  | Definitions |
|----------|-------------|

|   | (a)  | a deposit: |
|--------|-----------|------------|

|   | (i) | freely disposable by the Bank and made irrevocably in favour of the Bank with the Central Bank of Brazil, or with any other authority or legal entity for the time being entrusted with the relevant functions of a central bank in Brazil; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | held on an account in the name of the Bank at such other credit institution licensed to exercise banking activities in Brazil, as the Bank shall promptly notify to the Borrower upon the latter’s request; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an instrument constituting a claim by the Bank on an acceptable credit institution in Brazil or any third country. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (a) | any action by the Host Government which prevents the Borrower from converting funds in local currency into the currency of any sum due under this Contract or into a freely convertible currency or into another currency deemed acceptable by the Bank or from transferring outside Brazil the local currency concerned or the currency into which the local currency has been converted, for the purpose of paying any sum due under this Contract; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any failure by the Host Government to take action with a view to effecting or allowing such conversion or such transfer by or on behalf of the Borrower; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the Borrower is able freely and lawfully to avail itself within Brazil of the local currency or other currency into which the local currency has been converted; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the Borrower has without success for a period of 30 (thirty) days endeavoured by all reasonable means to complete the necessary legal formalities to effect the transfer or conversion. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| B.  | Procedures In case of Potential NTC Event or NTC Event |
|----------|--------------------------------------------------------|

|   | (a) | shall, within 5 (five) Business Days after the due date of the said sum (or such longer period as the Bank may agree), provide the Bank with evidence of the relevant Potential NTC Event or NTC Event and, if the Bank so requires from the Borrower after examining that evidence, shall within a like interval provide the further evidence so required; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | shall, within 5 (five) Business Days following receipt of notice by the Borrower to the effect that the Bank accepts that a Potential NTC Event or NTC Event has occurred and is continuing and that the sum in question is a Prevented Payment, create a Convertible SFA in the amount of the Prevented Payment or, if the Bank by such notice informs the Borrower that it is satisfied, having regard to any evidence supplied by the Borrower, that the laws and regulations in force in Brazil do not allow the creation of a Convertible SFA, a Local Currency SFA having a value equivalent to that of the Prevented Payment; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.  | The Bank’s Determination of NTC Event |
|----------|---------------------------------------------|

----

|   | (a) | the Borrower’s payment default was caused by the occurrence of a Potential NTC Event or an NTC Event; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (i) | he Borrower continues to suffer from the effects of a Potential NTC Event or an NTC Event in respect of the Prevented Payment and has done so continuously since the date of the Borrower’s payment default; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | at all material times the Borrower has diligently endeavoured to make the payment by all legal means available to it. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

|   | (i) | interest shall accrue on the Prevented Payment from its original due date to the actual date of payment at the rate applicable under Article 3.01; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the Borrower shall compensate the Bank for any loss or expense incurred by it as a consequence of the Borrower’s initial payment default; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | within 15 (fifteen) Business Days following the date of making of the Prevented Payment by the Borrower under this Article 5.05C, the Bank shall, to the extent possible, assign or transfer to the Borrower the SFA and all interest thereupon accrued, net of any loss or expense incurred by the Bank in connection therewith. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Project undertakings |
|----|----------------------|

| 6.01  | Use of Loan and availability of other funds |
|------------|---------------------------------------------|

----

| 6.02  | Completion of Project |
|------------|-----------------------|

| 6.03  | Increased cost of Project |
|------------|---------------------------|

| 6.04  | Procurement procedure |
|------------|-----------------------|

| 6.05  | Continuing Project undertakings |
|------------|---------------------------------|

|   | (a) | Maintenance: maintain, repair, overhaul and renew all property forming part of the Project as required to keep it in good working order; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Project assets: unless the Bank shall have given its prior consent in writing retain title to and possession of all or substantially all the assets comprising the Project and maintain the Project in substantially continuous operation in accordance with its original purpose; provided that the Bank may withhold its consent only where the proposed action would prejudice the Bank’s interests as lender to the Borrower and provided further that the Bank’s consent shall not be required in the event of replacement or renewal of such assets in line with technologically required evolutions; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Insurance: insure all works and property forming part of the Project with first class insurance companies in accordance with the most comprehensive relevant industry practice; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Rights and Permits: maintain in force all rights of way or use and all permits necessary for the execution and operation of the Project; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Environment: |
|--------|-----|--------------|

|   | (i) | Implement and operate the Project in compliance with Environmental Law; |
|--------|-----|-------------------------------------------------------------------------|

|   | (ii) | obtain and maintain requisite Environmental Approvals for the Project; and |
|--------|------|----------------------------------------------------------------------------|

|   | (iii)  | comply with any such Environmental Approvals. |
|--------|-------------|-----------------------------------------------|

----

|   | (f) | EU law: |
|--------|-----|---------|

| B. | General undertakings |
|----|----------------------|

| 6.06  | Disposal of assets |
|------------|--------------------|

|   | (a) | Except as provided below, the Borrower shall not either in a single transaction or in a series of transactions whether related or not and whether voluntarily or involuntarily dispose of any part of its assets |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Paragraph (a) above does not apply to any disposal of assets for fair market value and at arm’s length: |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (i) | the aggregate book value of which, during the life of the Loan, does not exceed an amount equivalent to 15% (fifteen per cent) of the Group’s consolidated net tangible fixed assets as reflected in the latest audited consolidated financial statements of the Borrower prior to the signature of this Contract; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | made in the ordinary course of trading of the disposing entity; |
|--------|------|-----------------------------------------------------------------|

|   | (iii) | made in exchange tor other assets comparable or superior as to type, value and quality; or, |
|--------|-------|---------------------------------------------------------------------------------------------|

|   | (iv) | made with the prior written consent of the Bank, |
|--------|------|--------------------------------------------------|

| 6.07  | Compliance with laws |
|------------|----------------------|

| 6.08  | Change in business |
|------------|--------------------|

| 6.09  | General Representations and Warranties |
|------------|----------------------------------------|

|   | (a) | it is duly incorporated and validly existing as a company “sociedade anonima” with limited liability under the laws of Brazil and it has power to carry on its business as it is now being conducted and to own its property and other assets; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it has the power to execute, deliver and perform its obligations under this Contract and all necessary corporate, shareholder and other action has been taken to authorise the execution, delivery and performance of the same by it; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | this Contract constitutes its legally valid, binding and enforceable obligations; |
|--------|-----|-----------------------------------------------------------------------------------|

----

|   | (d) | the execution and delivery of, the performance of its obligations under and compliance with the provisions of this Contract do not and will not: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | contravene or conflict in any material respect with any existing applicable law, or regulation, or any judgement, decree or authorisation to which it is subject; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | contravene or conflict in any material respect with, or result in any material breach of any of the terms of, or constitute a material default under any other agreement or other instrument binding upon it which might reasonably be expected to have a material adverse effect on its ability to perform its obligations under this Contract; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | contravene or conflict with any provision of its statutes or by-laws; |
|--------|-------|-----------------------------------------------------------------------|

|   | (e) | the latest available consolidated audited accounts of the Borrower and TIMP have been prepared on a basis consistent with previous years and have been approved by its auditors as representing a true and fair view of the results of its operations for that year and accurately disclose or reserve against all the liabilities (actual or contingent) of the Borrower and TIMP; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | there has been no Material Adverse Change since 23 March 2011; |
|--------|-----|----------------------------------------------------------------|

|   | (g) | no event or circumstance which constitutes an event of default under Article 10.01 has occurred and is continuing unremedied or unwaived; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | no material litigation, arbitration, administrative proceedings or investigation is current or to the best of its knowledge is threatened or pending before any court, arbitral body or agency which has resulted or if adversely determined is reasonably likely to result in a Material Adverse Change, nor is there subsisting against it or any of its subsidiaries any unsatisfied judgement or award; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | it has obtained all necessary material consents, authorisations, licences or approvals of governmental or public bodies or authorities in connection with this Contract and the Project and all such consents, authorisations, licences or approvals are in full force and effect and admissible in evidence; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | at the date of this Contract, no Security Interest exists over its assets or over those of the Group save as reflected in the latest audited financial statements of the Borrower and TIMP prior to the date of the Contract; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | its payment obligations under this Contract rank not less than pari passu in right of payment with all other present and future unsecured and unsubordinated obligations under any of its debt instruments except for obligations mandatorily preferred by law applying to companies generally; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | it is in compliance with Article 6.05(e) and to the best of its knowledge and belief (having made due and careful enquiry) no material Environmental Claim has been commenced or is threatened against it not previously disclosed to the Bank; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | no loss of rating clause, financial covenants or cross-default provision concluded with any other lender of the Borrower are more restrictive than the ones contained in the Contract; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | to the best of its knowledge, there is no event outstanding, imminent or prevailing which, with the lapse of time and the fulfilment of any other condition would constitute an Originating Event. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.10  | Auditing of Financial Statements |
|------------|----------------------------------|

| 6.11  | Borrower’s Declaration |
|------------|------------------------------|

| 6.12  | Integrity Commitment |
|------------|----------------------|

|   | (i) | the offering, giving, receiving or soliciting of any improper advantage to influence the action of a person holding a public office or function or a director or employee of a public authority or public enterprise or a director or official of a public international organisation in connection with any procurement process or in the execution of any contract in connection with those elements of the Project described in the Technical Description; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any act which improperly influences or aims improperly to influence the procurement process or the implementation of the Project to the detriment of the Borrower, including collusion between tenderers. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.01  | TIMP Guarantee |
|------------|----------------|

| 7.02  | Guarantee and indemnity |
|------------|-------------------------|

|   | (a) | at the time of issue of the Guarantee, or, as the case may be, at the time it accedes to the Guarantee: |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (i)  | each Credit Rating that it holds is not lower than: |
|--------|-----------|-----------------------------------------------------|

|   |   | 1) A-, where the rating is assigned by Standard and Poor’s Rating Group or its successor; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | 2) A3, where the rating is assigned by Moody’s Investors Service, Inc. or its successor; and |
|--------|----------------------------------------------------------------------------------------------------|

|   | 3) A-, where the rating is assigned by Fitch Ratings Limited or its successor; |
|--------|--------------------------------------------------------------------------------|

|   | (ii) | that such bank or other financial institution is in other respects acceptable to the Bank; or |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (b) | is accepted by the Bank by notice in writing, with a copy to the Borrower, subject to the conditions the Bank may in its discretion deem appropriate, and to the acceptance of the terms of notice by the Guarantor and acknowledgement by the Borrower. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.03  | Other collateral and substitution of Guarantor |
|------------|------------------------------------------------|

| 7.03A  | Loss of qualifying status |
|-------------|---------------------------|

|   | (a) | any Credit Rating is lower than the respective Credit Rating specified in Article 7.02(a)(i); |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (b) | all of the Credit Ratings of two or more Rating Agencies specified under Article 7.02(a)(i) cease to be published; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (c) | in the reasonable opinion of the Bank such Qualifying Guarantor has suffered a material adverse change since becoming a Qualifying Guarantor or has failed to comply with any condition specified in the Bank’s notice of acceptance delivered under Article 7.02(b); or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | its obligations under the Guarantee cease to be valid, legal and enforceable obligations, |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (a) | procure the replacement of the Qualifying Guarantor affected by any such event (the “Affected Guarantor”) by a Qualifying Guarantor; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | save in the case of paragraph (d) of this Article 7.03A procure that the Affected Guarantor provides security in favour of the Bank offering protection in manner, form and substance acceptable to the Bank; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | provides other security offering protection in manner, form and substance acceptable to the Bank. |
|--------|-----|---------------------------------------------------------------------------------------------------|

| 7.03B  | Guarantor default event |
|-------------|-------------------------|

----

| 7.04  | Negative pledge |
|------------|-----------------|

|   | (i) | any Security Interest entered into prior to this Contract and disclosed in writing to the Bank in a disclosure letter to be delivered by the Borrower to the Bank prior to the date of this Contract; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to any vendor’s lien or other encumbrance on land or other assets, where such encumbrance secures only the purchase price or any credit, having a term of not more than twelve months, obtained to finance it; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any security, lien or other encumbrance arising by operation of law; |
|--------|-------|----------------------------------------------------------------------|

|   | (iv) | any pledge over inventories created to secure any short-term credit; |
|--------|------|----------------------------------------------------------------------|

|   | (v) | any Security Interest granted to BNDES over assets the aggregate value of which does not exceed on a cumulative basis 40% (forty percent) of TIMP’s net tangible worth based on its most recent audited accounts; and, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | any Security Interest over or affecting any asset acquired by the Borrower after the date hereof and subject to which such asset is acquired, if: |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a)  such Security Interest was not created in contemplation of the acquisition of such asset by the Borrower; and, |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | (b)  the amount thereby secured has not been increased in contemplation of, or since the date of, the acquisition of such asset the Borrower. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.05  | Pari Passu ranking |
|------------|--------------------|

----

| 8.01  | Information concerning the Project |
|------------|------------------------------------|

|   | (a)  | deliver to the Bank: |
|--------|-----------|----------------------|

|   | (i) | the information in content and in form, and at the times, specified in Schedule A.2 or otherwise as agreed from time to time by the parties to this Contract; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any such information or further document concerning the financing, procurement, implementation, operation and environmental matters of or for the Project as the Bank may reasonably require within a reasonable time; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | submit for the approval of the Bank without delay any material change to the Project, also taking into account the disclosures made to the Bank in connection with the Project prior to the signing of this Contract, in respect of, inter alia, the cost, design, plans, timetable or to the expenditure programme or financing plan for the Project; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | promptly inform the Bank of: |
|--------|-----|------------------------------|

|   | (i) | any action or protest initiated or any objection raised by any third party or any genuine complaint received by the Borrower or any Environmental Claim that is to its knowledge commenced, pending or threatened against it with regard to environmental or other matters affecting the Project; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any fact or event known to the Borrower, which may substantially prejudice or affect the conditions of execution or operation of the Project; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any non-compliance by it with any applicable Environmental Law; and |
|--------|-------|---------------------------------------------------------------------|

|   | (iv) | any suspension, revocation or modification of any Environmental Approval, and set out the action to be taken with respect to such matters. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | provide to the Bank, if so requested: |
|--------|-----|---------------------------------------|

|   | (i) | a certificate of its insurers showing fulfilment of the requirements of Article 6.05(c); |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (ii) | a list of policies in force covering the insured property forming part of the Project, together with confirmation of payment of the current premiums. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.02  | Information concerning the Borrower and TIMP |
|------------|----------------------------------------------|

|   | (a)  | deliver to the Bank: |
|--------|-----------|----------------------|

|   | (i) | as soon as they become available but in any event within 180 days after the end of each of its financial years, its consolidated and unconsolidated annual report, balance sheet, profit and loss account and auditors report for that financial year; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | as soon as they become publicly available but in any event within 120 days after the end of each of the relevant accounting periods, TIMP’s interim consolidated semi-annual report, balance sheet and profit and loss account of each of its financial years; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | from time to time, such further information on its general financial situation as the Bank may reasonably require; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------|

|   | (b) | ensure that its accounting records fully reflect the operations relating to the financing, execution and operation of the Project; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | inform the Bank immediately of: |
|--------|-----|---------------------------------|

|   | (i) | any material alteration to its statutes or shareholding structure after the date of this Contract; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (ii) | any fact which obliges it to prepay any financial indebtedness or any EU funding in advance of its scheduled maturity; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any event or decision that constitutes or may result in the events described in Article 4.03A; |
|--------|-------|------------------------------------------------------------------------------------------------|

|   | (iv) | any intention on its part to grant any security over any of its assets in favour of a third party, other than Security Interests permitted pursuant to the terms of Article 7.04; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any intention on its part to relinquish ownership of any material component of the Project; |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (vi) | any fact or event that is reasonably likely to prevent the substantial fulfilment of any obligation of the Borrower under this Contract; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | any event listed in Article 10.01 having occurred or being threatened or anticipated; or |
|--------|-------|------------------------------------------------------------------------------------------|

|   | (viii) | any litigation, arbitration or administrative proceedings or investigation which is current, threatened or pending which might if adversely determined result in a Material Adverse Change. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.03  | Visits by the Bank |
|------------|--------------------|

----

| 8.04  | Information on Originating Events |
|------------|-----------------------------------|

| 8.05  | Investigations and Information |
|------------|--------------------------------|

|   | (i) | to take such action as the Bank shall reasonably request to investigate and/or terminate any alleged or suspected act of the nature described in Articles 6.12; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to inform the Bank of the measures taken to seek damages from the persons responsible tor any loss resulting from any such act; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | to facilitate any investigation that the Bank and any other persons designated by other European Community institutions or bodies may make concerning any such act. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.01  | Taxes, duties and fees |
|------------|------------------------|

| 9.02  | Other charges |
|------------|---------------|

----

| 10.01  | Right to demand repayment |
|-------------|---------------------------|

| 10.01A  | Immediate demand |
|--------------|------------------|

|   | (a) | if the Borrower fails on the due date to repay any part of the Loan, to pay interest thereon or to make any other payment to the Bank as provided in this Contract, unless (i) its failure to pay is caused by an administrative or technical error or a Disruption Event and (ii) payment is made within 3 Business Days of its due date; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if any information or document given to the Bank by or on behalf of the Borrower or TIMP or any representation or statement made or deemed to be made by the Borrower in application of this Contract is or proves to have been incorrect, incomplete or misleading in any material respect; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if, following any default of the Borrower or TIMP in relation to any loan, or any obligation arising out of any financial transaction, other than the Loan |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the Borrower or TIMP is required or is capable of being required or will, following expiry of any applicable contractual grace period, be required or be capable of being required to prepay, discharge, close out or terminate ahead of maturity such other loan or obligation; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any financial commitment for such other loan or obligation is cancelled or suspended; |
|--------|------|---------------------------------------------------------------------------------------|

|   | (iii) | AND such other loans or obligations or commitments falling under paragraphs (i) or (ii) above are in an aggregate principal amount in excess of the equivalent of EUR 25 000 000 (twenty-five million euros). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | if the Borrower or TIMP is unable to pay its debts as they fall due, or suspends its debts, or makes or, without prior written notice to the Bank, seeks to make a composition with its creditors; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | if any corporate action, legal proceedings or other procedure or step is taken in relation to or an order is made or an effective resolution is passed for the winding up of the Borrower or TIMP, or if the Borrower or TIMP takes steps towards a substantial reduction in its capital, is declared insolvent or ceases or resolves to cease to carry on the whole or any substantial part of its business or activities; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | if an encumbrancer takes possession of, or a receiver, liquidator, administrator, administrative receiver or similar officer is appointed, whether by a court of competent jurisdiction or by any competent administrative authority or by any person, of or over, any part of the business or material assets of the Borrower or TIMP or any property forming part of the Project; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | if the Borrower or TIMP defaults in the performance of any obligation in respect of any other loan granted by the Bank or financial instrument entered into with the Bank; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | if any distress, execution, sequestration or other process is levied or enforced upon the property of the Borrower or any property forming part of the Project and is not discharged or stayed within 30 (thirty) days and is likely to materially impair the ability of the Borrower or TIMP to comply with its payment obligations under this contract or the TIMP Guarantee or to perform the Project; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if it is or becomes unlawful for the Borrower or TIMP to perform any of its obligations under this Contract or the TIMP Guarantee or this Contract, the TIMP Guarantee or the Guarantee Agreement is not effective in accordance with its terms or is alleged by the Borrower; TIMP or a Guarantor to be ineffective in accordance with its terms; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | if any Guarantee ceases to be valid and enforceable and an acceptable alternative Guarantee is not provided to the Bank or cash collateral or alternative security are not given, in each case, in accordance with the provisions of Articles 7.02 and 7.03. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.01B  | Demand after notice to remedy |
|--------------|-------------------------------|

|   | (a) | if the Borrower fails to comply with any obligation under this Contract not being an obligation mentioned in Article 10.01A or TIMP fails to comply with any obligation under the TIMP Guarantee; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if any fact related to the Borrower or the Project stated in the Recitals materially alters and is not materially restored and if the alteration either prejudices the interests of the Bank as lender to the Borrower or adversely affects the implementation or operation of the Project, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.02  | Other rights at law |
|-------------|---------------------|

| 10.03  | Indemnity |
|-------------|-----------|

| 10.03A | Fixed Rate Tranches |
|--------|---------------------|

----

| 10.03B | Floating Rate Tranches |
|--------|------------------------|

| 10.03C | General |
|--------|---------|

| 10.04  | Non-Waiver |
|-------------|------------|

| 10.05  | Application of sums received |
|-------------|------------------------------|

| 11.01  | Governing Law |
|-------------|---------------|

| 11.02  | Jurisdiction |
|-------------|--------------|

----

| 11.03  | Agent of Service |
|-------------|------------------|

| 11.04  | Evidence of sums due |
|-------------|----------------------|

| 12.01  | Notices to either party |
|-------------|-------------------------|

|   | -for THE BANK:    | 100 boulevard Konrad Adenauer L-2950 LuxembourgFax +352 437966599Attention: Head of Division, Operations for Latin America |
|--------|----------------------------------|----------------------------------------------------------------------------------------------------------------------------|

|   | -for THE BORROWER     | Avenida das Americas, 3.434, Bloco 1, 7° andarBarra da Tijuca, Rio de Janeiro, RJ BrasilCEP:22.640-102FAX: 55-21-4109-3943 Attention: Treasury Manager (Gerência de Tesouraria) |
|--------|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.02  | Form of notice |
|-------------|----------------|

----

| 12.03  | Complete agreement |
|-------------|--------------------|

| 12.04  | Partial invalidity |
|-------------|--------------------|

| 12.05  | Third party rights |
|-------------|--------------------|

| 12.06  | Counterparts |
|-------------|--------------|

| 12.07  | Recitals, Schedules and Annexes |
|-------------|---------------------------------|

|   | Schedule A  | Technical Description and Reporting |
|--------|------------------|-------------------------------------|

|   | Schedule B  | Definition of EURIBOR and LIBOR |
|--------|------------------|---------------------------------|

|   | Schedule C  | Forms for Borrower |
|--------|------------------|--------------------|

|   | Schedule D  | Forms for BRL Linked Tranches |
|--------|------------------|-------------------------------|

|   | Annex I  | Resolution of Board of  Directors of Borrower and authorisation of signatory |
|--------|---------------|-----------------------------------------------------------------------------------|

----

| 12.08  | Place of Payment |
|-------------|------------------|

|   | Signed for and on behalf of     |   |   | Signed for and on behalf of  |   |
|--------|--------------------------------------|--------|--------|-----------------------------------|--------|
|   | EUROPEAN INVESTMENT BANK   |   |   | TIM CELULAR S.A.                  |   |
|   |                                 |   |   |                              |   |
|   |                                 |   |   |                              |   |

----

| 12.08  | Place of Payment |
|-------------|------------------|

|   | Signed for and on behalf of     |   |   | Signed for and on behalf of  |   |
|--------|--------------------------------------|--------|--------|-----------------------------------|--------|
|   | EUROPEAN INVESTMENT BANK   |   |   | TIM CELULAR S.A.                  |   |
|   |                                 |   |   |                              |   |
|   |                                 |   |   |                              |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   AUTENTICA DI FIRMANOTAIO IN ROMAVin M Prestinan, 1200195 ROMATel. 06/32.23.633 – 32.23.406Fax 32.23.528  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|
|   Oecciico io siioscritto, Doll. Mario LUPI, Molaio in Roma, con Uffinio alla Marcello Presinari n. 13, inscritto nel Colegio dei Distretti Notarili Rioniti di Roma, Velletri e Civitavecchia, che I Signori: – MANCINI Avv. FRANCESCO, nato a Roma il venlotto novembre millenovocentocinquantadue, domiciliato per la carica in Roma, corso d’Italia n. 41; – D’OVIDIO STEFANO, nato a Roma il tredici ottobre millenove-centosessantadue, domiciliato per la carica in Roma, Corso d’Italia n. 41; nella loro qualita di rappresentanti della “TIM CELULAR S.A.”, con sede Avenida Giovanni Gronchi, 7143 Vila Andrade, San Paolo (Brasile) – CEP 05724-006, della cui identita personale, qualifica e poteri, io Notaio sono certo, previa espressa e concorde rinuncia fatta, con il mio consenso, alj ‘assistenza dei testimoni, hanno apposto la propria firma in calce alla avantiestesa ed a margine degli altri rogli, all mia presenza in Roma, nel mio Ufticto ove supra.Roma, ventinove dicembre duemilaundici 429.12.20111. |   |

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| i. | Second Generation (2G) mobile: By the end of 2012, TIM will have nearly 12 000 Base Transceiver Stations, an increase of over 1 500 over the project period. The number of BSCs is planned to be increased by 50 to 270. The population coverage is planned to increase slightly from 94% to 95% of the urban population. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii. | Third Generation (3G) Mobile: The number of Node Bs is planned to increase by about 3 100 to 8 500, while the RNCs are planned to increase by nearly 50% to close to 90 by 2012. The number of cities covered with 3G technology is planned to increase by over 850 to above 1 100, representing 73% of the urban population |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Company               | TIM CELULAR SA                                                               |
|-----------------------|------------------------------------------------------------------------------|
| Contact person        | Marco Chiarucci                                                              |
| Title                 | Head of Treasury                                                             |
| Function / Department |                                                                         |
| Address               | Av. das Americas3 434 Bloco 1 7 andarBarra da Tijuca, Rio de Janeiro, Brazil |
| Phone                 | +55.21.400.94824                                                             |
| Fax                   | +55.21.400.93943                                                             |
| Email                 | mchiarucci@timbrasil.com.br                                                  |

| Document/Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Deadline   | Frequency of reporting |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------------------|
| Project Progress Report -       A brief update on the technical description based on the documentation provided to the Bank during the due-diligence process explaining the reasons for significant changes vs. initial scope. -       Update on the date of completion of each of the main project’s components, explaining reasons for any possible delay; -       Update on the cost of the project, explaining reasons for any possible changes vs. initial budgeted cost. -       A description of any major issue with impact on the environment; -       Update on procurement procedures -       Update on the project’s demand or usage and comments; (subscribers, ARPU, market share, penetration). -       Any significant issue that has occurred and any significant risk that may affect the project’s operation; -       Any legal action concerning the project that may be ongoing. | 31.03.2012 | 1                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |       |                   |

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| Document/Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Date of delivery to the Bank |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| Project Completion Report, including: -           A brief description of the technical characteristics of the project based on the documentation provided to the Bank during the due-diligence process, as completed, explaining the reasons for any significant change; -           The date of completion for each of the main project’s components, explaining reasons for any possible delay; -           The final cost of the project, explaining reasons for any possible cost changes vs. initial budgeted cost; -           The number of new jobs created by the project: both jobs during implementation and permanent new jobs created. -           A description of any major issue with impact on the environment; -           Update on procurement procedures); -           Update on the project’s demand or usage and comments; (subscribers, ARPU, market share, penetration). Any significant issue that has occurred and any significant risk that ay affect the project’s operation; -           Any legal action concerning the project that may be ongoing. | 31.03.2014                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                         |

| Language of reports | English, Portuguese, Italian |
|---------------------|------------------------------|

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| A.  | EURIBOR |
|----------|---------|

| (a) | in respect of a relevant period of less than one month, the rate of interest for deposits in EUR for a term of one month; |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (b) | in respect of a relevant period of one or more whole months, the rate of interest for deposits in EUR for a term for the corresponding number of whole months; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in respect of a relevant period of more than one month (but not whole months), the rate resulting from a linear interpolation by reference to two rates for deposits in EUR, one of which is applicable for a period of whole months next shorter and the other for a period of whole months next longer than the length of the relevant period, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.  | LIBOR USD |
|----------|-----------|

| (a) | in respect of a relevant period of less than one month, the rate of interest for deposits in USD for a term of one month; |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (b) | in respect of a relevant period of one or more whole months, the rate of interest for deposits in USD for a term for the corresponding number of whole months; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in respect of a relevant period of more than one month (but not whole months), the rate resulting from a linear interpolation by reference to two rates for deposits in USD, one of which is applicable for a period of whole months next shorter and the other for a period of whole months next longer than the length of the relevant period, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| C.  | General |
|----------|---------|

| (a) | “London Business Day” means a day on which banks are open for normal business in London and “New York Business Day” means a day on which banks are open for normal business in New York. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | All percentages resulting from any calculations referred to in this Schedule will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with halves being rounded up. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The Bank shall inform the Borrower without delay of the quotations received by the Bank. |
|-----|------------------------------------------------------------------------------------------|

| (d) | If any of the foregoing provisions becomes inconsistent with provisions adopted under the aegis of EURIBOR FBE and EURIBOR ACI in respect of EURIBOR or of the British Bankers Association in respect of LIBOR, the Bank may by notice to the Borrower amend the provision to bring it into line with such other provisions. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Date: |   |
|-------------|--------|

|                                                                                                   |                         | Loan Name(*):                    |                                     |                             |
|--------------------------------------------------------------------------------------------------------|------------------------------|----------------------------------|------------------------------------------|----------------------------------|
|                                                                                                   |                         |                             |                                     |                             |
|                                                                                                   |                         | Signature Date(*):               |                                     | Contract F1 number:              |   |   |
|                                                                                                   |                         |                             |                                     |                             |   |   |
| Currency & amount requested                                                                        |                         | Proposed disbursement date:      |                                     |
|  Currency                                                                                         |  Amount                 |                             |
|                                                                                                   |                         |                             |
|                                                                                                   |                         |                             |                                     |
| INTEREST                                                                                               | Int. rate basis (Art. 3.01)  |                             |                                     |  Reserved for the EIB       | (contract currency) |
|                                                                                                   |
| Rate (% or Spread)                                                                                     |                         |                             |                                     |                             |
| OR (please indicated only ONE)                                                                         |   _____________________ |                             |  Total Credit Amount:               |                             |
|                                                                                                   |
|                                                                                                   |                         |                             |                                     |                             |
|                                                                                                   |                         |                             |  Disbursed to date:                 |                             |
|                                                                                                   |                         |                             |                                     |                             |
| Payment Dates (Art. 5)                                                                                 |                         |                             |                                     |                             |
|                                                                                                   |                         |                             |  Balance for disbursement           |                             |
|                                                                                                   |                         |                             |                                     |                             |
|                                                                                                   |                         |                             |                                     |                             |
| CAPITAL                                                                                                |                         |                             |                                     |  Current disbursement       |   |
|                                                                                                   |                         |                             |                                     |                             |
|     Repayment methodology(Art. 4.01)                                               |                         |                             |                                     |                             |
|   Equal instalments  □   Single instalment  □ |                         |  Balance afterdisbursement: |                                     |
|                                                                                                   |                         |                             |
|                                                                                                   |                         |                             |
|                                                                                                   |  Disbursement deadline: |                             |
|                                                                                                   |                         |                             |                                     |                             |
|                                                                                                   |                         |                             |                                     |                             |
| First repayment date                                                                                   |                         |                             |  Max. number of  disbursements |                             |
|                                                                                                   |                         |                             |                                     |                             |
| Maturity Date:                                                                                         |                         |                             |  Minimum Tranche size:              |                             |
|                                                                                                   |                         |                             |                                     |                             |   |
|                                                                                                   |                         |                             |                                     |  Total allocations to date: |   |
|                                                                                                   |                         |                             |                                     |                             |   |
|                                                                                                   |                         |                             |                                     |  Conditions precedent:      | Yes/No |

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----

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| To:  | European Investment Bank |
|-----------|--------------------------|

| From:  | Tim Celular S.A. |
|-------------|------------------|

| Date: |   |
|-------|--------|

|   | •  | (the “Finance Contract”) |
|--------|---------------|--------------------------------------|

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| (a) | no event described in Article 4.03A has occurred and is continuing unremedied; |
|-----|--------------------------------------------------------------------------------|

| (b) | no security of the type prohibited under Article 7.04 has been created or is in existence; |
|-----|--------------------------------------------------------------------------------------------|

| (c) | there has been no material change to any aspect of the Project or in respect of which we are obliged to report under Article 8.01, save as previously communicated by us; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | we have sufficient funds available to ensure the timely completion and implementation of the Project in accordance with Schedule A.1; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (e) | no event or circumstance which constitutes or would with the passage of time or giving of notice under the Finance Contract constitute an event of default under Article 10.01 has occurred and is continuing unremedied or unwaived; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | no litigation, arbitration administrative proceedings or investigation is current or to our knowledge is threatened or pending g before any court, arbitral body or agency which has resulted or if adversely determined is reasonably likely to result in a Material Adverse Change, nor is there subsisting against us or any of our subsidiaries any unsatisfied judgement or award; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | the representations and warranties to be made or repeated by us under Article 6.09 are true in all respects; and |
|-----|------------------------------------------------------------------------------------------------------------------|

| (h) | no Material Adverse Change has occurred, as compared with our condition at the date of the Finance Contract. |
|-----|--------------------------------------------------------------------------------------------------------------|

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| TO:  | European Investment Bank |
|-----------|--------------------------|

|  FROM:  | Tim Celular S.A |
|-------------------|-----------------|

| [Date] |   |
|--------|--------|

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| 1.  | the fixed interest rate for such Brazilian Real-linked Tranche; |
|----------|-----------------------------------------------------------------|

| 2.  | Payment Oates; |
|----------|----------------|

| 3.  | the Scheduled Disbursement Date; |
|----------|----------------------------------|

| 4.  | interest payment periodicity; |
|----------|-------------------------------|

| 5.  | terms for repayment of principal; and |
|----------|---------------------------------------|

| 6.t | the first and last principal repayment dates. |
|-----|-----------------------------------------------|

----

----

| To:  | Tim Celular S.A. |
|-----------|------------------|

| From:  | European Investment Bank |
|-------------|--------------------------|

| Date: |   |
|-------|--------|

| Subject |   |
|---------|--------|

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| (a)  | Currency (BRL...., USD equivalent....EUR equivalent |
|-----------|-----------------------------------------------------|

| (b)  | Scheduled Disbursement Date: |
|-----------|------------------------------|

| (c)  | Fixed Interest rate: |
|-----------|----------------------|

| (d)  | Interest payment periodicity: |
|-----------|-------------------------------|

| (e)  | Payment Dates: |
|-----------|----------------|

| (f)  | Terms for repayment of principal: |
|-----------|-----------------------------------|

| (g)  | The first and last principal repayment dates: |
|-----------|-----------------------------------------------|

| (h)  | FX Exchange Rate |
|-----------|------------------|

|   | Yours faithfully,     |   |
|--------|-------------------------------------------|--------|
|   |  EUROPEAN INVESTMENT BANK            |   |

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