Document:

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

Date:       October 23rd, 2.000.

To:         Cabelte Industrias of Brasil S/A

Atn.:       Mr. Luciano Vasconcelos             Phone :    (0-21-35) 3629-2500
            Manager of Supplies                 Facsimile: (0-21-35) 3629-2503

Of:         Nivaldo Seixas                      Phone:     (0-21-19) 3789 4209
            Manager of sales                    Facsimile: (0-21-19) 3789 4204

CONTRACT OF OPTICAL FIBBERS SUPPLY

1.     SUPPLY

1.1    Product::  SINGLEMODE OPTICAL FIBER - ACRYLATE
1.2    Amount::   2.186.000 KM (TWO MILLIONS, ONE HUNDRED AND EIGHTY SIX
                  THOUSAND KILOMETERS) OF OPTICAL FIBER.
1.3    Term of the Contract: OCTOBER  2000 TO DECEMBER  2003.

1.3.1  Quarterly Scheduled Delivery  Program  of the Product up to 2003:

       ------------------------------------------------------------------------
          PERIOD       YEAR 2000     YEAR. 2001     YEAR 2002      YEAR 2003
       ------------------------------------------------------------------------
       1st quarter   ------------  105.000 km     180.000 km     225.000 km
       ------------------------------------------------------------------------
       2nd quarter   ------------  115.000 km     180.000 km     225.000 km
       ------------------------------------------------------------------------
       3rd quarter   ------------  144.000 km     180.000 km     225.000 km
       ------------------------------------------------------------------------
       4th quarter     58.000 km   144.000 km     180.000 km     225.000 km
       ------------------------------------------------------------------------

1.3.2  Xtal Fibras Opticas S.A. (hereinafter referred to "XTAL") will do
       everything necessary to produce and deliver an extra quantity of 50.000
       km of the Product until June 2.001, and Cabelte Industrias do Brasil S/A
       (hereinafter referred to "CABELTE ") undertakes to acquire this quantity
       of the Product, manufactured by Xtal, up to the maximum limit of 50.000
       km, for the same price established in the item 2.1 of this contract. The
       extra quantity of the product here indicated is not included in the
       delivery schedule in item 1.3.1.

1.4.   Product Specification

1.4.1  Attenuation: 70% minimum @1310nm <0,344 dB/km. ; @1550nm <0,214 dB/km,

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

                  30%  maximum @1310nm <0,354 dB/km. ; @1550nm <0,224 dB/km.
1.4.2 Length:     40%  maximum  of 8.400m, with multiples of 2.100m, up to
                  25.200m and, 60% minimum of  25.200m, with  multiples of
                  2.100m, up to 50.400m.

1.4.3  Complementary specifications: according to Cabelte specifications "
       EPP-EMP-001 and Xtal " DMKV007-0 ".

1.5    Package: the spools and the protecting covers will be returned to Xtal in
       conditions of re-utilization, in accordance to the respective loan
       Invoice to be issued with every shipment.

1.50.1 Xtal will be responsible for removing the package from the place where
       the product is delivered, and will be responsible for all costs with
       respect to such removal.

1.5.2  Xtal cannot remove the package before they are used by Cabelte.

1.5.3  No value will be owed by Cabelte for the use of the package, if the
       packages return to Xtal in re-utilization conditions, as described in
       item 1.5.

1.6    Delivery Place: at Cabelte's Factory and Xtal shall be responsible for
       the freight.

2.     PAYMENT CONDITIONS

2.1    Prices (freight and insurance included)

2.1.1  Net Price of the Optical Fiber, without taxes:

     * Year 2000 - US$ 47.00 /km (Forty seven dollars per kilometer).
     * Year 2001 - US$ 47.00 /km (Forty seven dollars per kilometer).
     * Year 2002 - US$ 43.33 /km (Forty three dollars and thirty three cents
       per  kilometer).
     * Year 2003 - US$ 40.00 / km (Forty dollars for kilometer).

2.1.2  Net Price of the Product in Real (R$): is the value of the Optical Fiber
       net price, converted into Real (R$), using the commercial dollar rate of
       sale (PTAX), given by the information system of the Central Bank,
       transaction PTAX800, option 5 ("accounting quotations") for the
       immediately previous day to the invoicing of the product.

2.2    Invoicing: it will be done based on the net price of the Product in Real
       (R$), with accrued taxes, according to item 3. below.

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

2.3    Payment: 60 days, without any extra financial cost.

2.4    Payment readjustment based in the US dollar Exchange Variation:

2.4.1  Exchange Variation is defined by the corresponding value, in Real (R$),
       of the difference between what would be the net price of the Product in
       Real (R$) on the date of the payment and its net price on the invoicing
       date, using the conversion rate established in item 2.1.2.

2.4.2  Exchange Variation of up to 5% (five percent) shall not give rise to any
       readjustment of the payment value. Cabelte has to compensate Xtal by 50%
       (fifty percent) of the positive exchange variation in the part that such
       variation exceeds the rate of 5% (five percent) mentioned above. In the
       negative exchange variation, according to the definition above, Cabelte
       will be compensated by Xtal, in 50% (fifty percent) of the part if such
       variation exceeds 5% (five percent).

2.4.3  On the payment date, Cabelte should pay the product invoiced
       independently of the Exchange Variation verified in respect to such
       payment.

2.4.4  At the end of every month the Exchange Variations will be calculated of
       the payments made by Cabelte during the referred period. The Exchange
       Variation calculated above in the form of item 2.4.2 in the reference
       month will be computed in the first Revenue of the following month.

2.4.5  If the difference of the variation verified relates to the last revenue,
       the compensation will be made through financial payment.

3.     TAXES ON THE NET PRICE IN REAL (R$)

3.1    ICMS tax (sales tax) will be included according to the State where the
       product is sold.

3.2    15% of IPI (excise tax) tax to be mentioned separately in the Invoice.

4.     DOWN PAYMENT, BANK GUARANTEE AND FINE

4.1    Down Payment:

4.1.1  Down Payment of US$ 3.000.000,00 (three million dollars) shall be made up
       to 30 (thirty) days after the signature of this contract and a complement
       of another US$ 3.000.000,00 (three million dollars) until July 15, 2001.
       Such value will be converted into Real (R$) for payment effect, according
       the criteria specified in item 2.1.2 above.

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

4.1.2  The down payment will be reduced proportionally from the amount due from
       Cabelte over the first 9 (nine) months of supply, and the complement will
       be discounted proportionally during the 12 (twelve) following months,
       according to Annex 1.

4.2    Bank Guarantee:

4.2.1  Cabelte shall present a bank guarantee in the equivalent value of the
       revenue that should be calculated in the following way: ((Quantity in km
       to be delivery in the quarter / 12 weeks )*8 weeks)*1,25.

4.2.2  From the specified value of the above bank guarantee shall be
       proportionally excluded, the value paid as down payment.

4.3    Fine:

4.3.1  2% (two percent) of fine, and 2,5% (two and half percent) of financial
       rates will be charged over the total amount of the payment in case of
       delay, in the event it has not been caused by Xtal.

5.     COMMITMENT OF PURCHASE AND SALE

5.1    Xtal to meet the Quarterly Delivery Program described in item 1.3.1 of
       the contract, dividing it per weeks. It should also make the delivery
       within 3 (three) business days of the Invoicing date, subject to the
       suspension of the respective payment, excluding the event of force
       majoure or fortuitous events.

5.2    If Xtal does not meet the delivery schedule, established in item 1.3.1,
       Cabelte will be reimbursed in 30% of the value related to the quantities
       delayed, not releasing Xtal from the obligation of delivering the delayed
       quantity.

5.2.1  The maximum period of 10 (ten) days will be considered tolerable before
       Xtal is considered to have delayed the delivery.

5.3    According to item 1.3.1. of the contract, after the beginning of the
       supply of products, if Xtal interrupts, without any justification, the
       delivery of the quantities established for the first 31 (thirty one)
       months, excluding the event of force majoure, Cabelte shall be
       financially indemnify Cabelte of the amount equivalent to the quantities
       not delivered, applying the obligatory purchase percentage established in
       item 5.6.1.

5.3.1  On the other hand, if Cabelte, after the beginning of the delivery of
       Products by Xtal, give up, without any justification, partially or
       totally, the acquisition of the contracted fiber quantities for the first
       31 (thirty one) months, excluding the event of force majoure, Xtal shall
       be financially reimbursed of the amount equivalent to the quantities not

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

       delivered, applying the obligatory purchase percentage established on the
       item 5.6.1.

5.4    Xtal undertakes to reduce the product final sales price, in a maximum
       period of 30 (thirty) days, in the same proportion of the reduction of
       the import duties for optical fiber, including the amount of the cascade
       effect of taxes calculation on the manufacturing products (IPI) and sales
       taxes (ICMS).

5.5    In case a substantial alteration of the economic-financial balance of
       this contract, such as alterations of (sales and excise) ICMS or IPI
       taxes, the values will be renegotiated and readjusted every six months.

5.6    Condition of obligatory purchase ("Take or Pay"):

5.6.1  Cabelte undertakes obligatorily to buy the quantities described in item
       1.3.1, guaranteeing the total payment of the quantities to be shipped, as
       described in the item 4.2, in the following proportions:

      - October of 2000 to December of 2000: 100% (a hundred percent);
      - January of 2001 to December of 2001: 100% (a hundred percent);
      - January of 2002 to December of 2002: 70% (seventy percent);
      - January of 2003 to December of 2003: 70% (seventy percent).

5.7    This contract substitutes and cancels the contract 292/2000 of August 08,
       2000.

5.8    This contract cannot be transferred, total or partially, without the
       previous agreement of the parties.

5.9    The commercial conditions will be bi-annually renegotiated starting from
       January 2002. If the parties do not reach an agreement, the conditions
       will remain the same as established in this contract.

6.     PRODUCT GARANTEE

       Xtal will substitute without any burden to Cabelte, any quantity of
       Product, in no-conformity situation with the specifications determined in
       the item 1.4 of this contract, provided the cabling operations have been
       made using the adequate technical standard and that the generating fact
       of this situation is communicated formally to Xtal within a period of 10
       (ten) days, starting from the date of its occurrence. The period of this
       warranty is of 06 (six) months counting as of the date of the shipment of
       the Product.

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

7.     END OF THE CONTRACT

       After a period of 31 (thirty one) months of the beginning of the
       contract, any of the parties may rescind it, at any moment, giving
       previous notification of 6 (six) months.

8.     IMPORTANT MODIFICATIONS

       If it is necessary, Cabelte shall inform in its purchase order, any
       Corporate changes or changes in its by-laws that may imply in any
       alteration to any of the obligations or condition established in this
       contract.

9.     RESOLUTION OF LITIGATIONS

       Any controversy due to this contract shall be ruled by the courts of the
       city of Sao Paulo, and the parties waive to any other court, even if it
       is more beneficial.

10.    VALIDITY OF THE PROPOSAL

       This proposal is valid until October 31, 2.000.

11.    APPROVAL OF THE PROPOSAL - XTAL OPTICAL FIBERS S/A

                                        Campinas, SP, _____ of October of 2.000.

------------------------ ---------------------------- --------------------------
Rafael B. Gandara        Celso Arantes Simoes         Antonio Carlos de Campos
Financial Director       Marketing & Sales Director       Managing Director

12. ACCEPTANCE OF THE PROPOSAL - CABELTE INDUSTRIAS OF BRASIL S/A

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

                                       Itajuba, MG, __25___ of October of 2.000.

-------------------------- -------------------------- --------------------------
      Luis Souto              Jose Roberto Aragao      Carlos Neiva of Oliveira
Financial Manager              Adjunct Director          General director

13. WITNESS:

--------------------------------          ------------------------
Luciano Vasconcelos                       Nivaldo Seixas
Purchase  Manager                         Sales Manager
Cabelte Industrias of Brasil S/A          Xtal Optical Fibers S/A
RG M5.581.284                             RG 20.449.226-91

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204

<PAGE>

XTAL
FIBERCORE Brazil
[Graphic Ommitted]

                          Commercial Proposal 301/2000

ANNEX 1
CALCULATION OF THE DOWN PAYMENT DISCOUNT

1ST PERIOD

Percentile of the discount on the bill = (down payment / total value to be
delivered with taxes in the period)

Down Payment            3,000,000.00

Total  value to be delivered with taxes in the period

Total amount to be delivered              km    278,200

Value per kilometer                       US$   47.00

Subtotal                                  US$   13,066,000.00

Addition of ICMS (12%)                    US$   14,847,727.27

Addition of IPI (15%)                     US$   17,074,886.36

Percentile of the discount on the bill =  (US$3,000,000.00 / US$ 17,074,886.36)

Percentile of the discount on the bill =  17,57%

2ND PERIOD

Percentile of the discount on the bill = (down payment / total value to be
delivered with taxes in the period)

Down Payment            3,000,000.00

Total  value to be delivered with taxes in the period

Total amount to be delivered in 2001      km    288,000

Value per kilometer                       US$   47.00

Total amount to be delivered in 2002      km    366,000

Value per kilometer                       US$   43.33

Subtotal                                  US$   29,134,800.00

Addition of ICMS (12%)                    US$   33,107,727.27

Addition of IPI (15%)                     US$   38,073,886.36

Percentile of the discount on the bill =  (US$3,000,000.00 / US$ 38,073,886.36)

Percentile of the discount on the bill =  7,88%

XTAL FIBRAS OPTICAS S/A. - Rod. SP-340 - Campinas/Mogi-Mirim, km 118 - Caixa
Postal 6551 CEP 13082-970 - Campinas - SP - Fone (55-19) 3789 4200 - Fax Coml.
(55-19) 3789 4204EXHIBIT 10.24

                                 SUPPLY CONTRACT
                                     305/200

SUPPLY CONTRACT - OPTICAL FIBERS
--------------------------------

One party

Xtal Fibras Oticas S.A is a stock company located in the city of Uberlandia,
Minas Gerais State, at the address Av. Comendador Alexandrino Garcia, number
2689, conjunto 08, Distrito Industrial, and its by-laws registered and filed in
Junta Comercial do Estado de Minas Gerais (Minas Gerais State Board of Trade)
under number NIRE 31300010236, in a session on August 18th, 1993 and properly
registered on the National Legal Entity Organization in the Revenue Secretary
CNPJ-MF under number 71.340.707/0002-76 (hereinafter referred to as Xtal, and
the other party, Quintas & Quintas Condutores Eletricos do Brasil Ltda., located
in the city of Belo Horizonte, Minas Gerais State, at the address Rua Parnaiba,
number 1000, 12(0) andar (12th floor) - Funcionarios ( Employees), registered in
CNPJ-MJ under number 03.934.024/001-06 (hereinafter referred to as "Quintas &
Quintas"), agree with the present supply contract, which will be ruled according
to the following clauses and conditions expressed below as well as its valid
legislation (hereinafter referred to as the "Contract").

1.     SUPPLY

1.1    Product: Singlemode Acrylate Optical Fiber (hereinafter referred
       "Product").

1.2    Amount: 470,000 km (four hundred and seventy thousand kilometers) of the
       Product.

1.3    Term of the Supply Contract: from January 2001 to December 2003.

1.3.1  Quarterly Scheduled Delivery Program of the Product until 2003:

         -----------------------------------------------------------------------
         Period              Year 2001          Year 2002          Year 2003
         -----------------------------------------------------------------------
         1st Quarter         15,000 km          45,000 km          45,000 km
         -----------------------------------------------------------------------
         2nd Quarter         15,000 km          45,000 km          45,000 km
         -----------------------------------------------------------------------
         3rd Quarter         36,000 km          45,000 km          45,000 km
         -----------------------------------------------------------------------
         4th Quarter         44,000 km          45,000 km          45,000 km
         -----------------------------------------------------------------------

1.3.2  According to the possibility, Xtal shall supply an additional amount of
       up to 30.000 km (thirty thousand kilometers) of the Product during the
       first semester of the year 2001, and Quintas & Quintas undertakes to
       acquire this additional amount of the Product that Xtal may offer under
       the same commercial conditions established in this Contract.

1.4    Product Specification

1.4.1  Attenuation: 100% @ 1310 nm < 0,35 dB/km.; @ 1550nm < 0,21 dB/km

1.4.2  Length: 40% maximum of 8.400m, with multiples of 2.100m, up to 25.200m
       and, 60% minimum of 25.200m, with multiples of 2.100m, up to 50.400m.

1.4.3  Technical Specifications: According to Quintas & Quintas specifications
       "Single mode optical fiber characteristics (ITU - T G 652)"annex 1 and
       other specifications according to Xtal pattern "DMKV007-0", annex 2.

<PAGE>

1.4.4  Aiming to assure the purchase of the contracted amounts, and considering
       the technological evolution of the Product, it is entitled to Quintas &
       Quintas and Xtal the possibility of specification change. Any change in
       the Product only will be done with the formal agreement between Quintas &
       Quintas and Xtal.

1.5    Package: the spools and the protecting covers will be returned to Xtal in
       conditions of re-utilization in accordance to the respective loan
       invoice. If the packages are damaged, Quintas & Quintas shall indemnify
       Xtal according to the correspondent value specified in the loan invoice.

1.5.1  Xtal will be responsible for removing the package from the place where
       the product is delivered, and will be responsible for all costs with
       respect to such removal.

1.5.2  Xtal cannot remove the package before they are used by Quintas & Quintas,
       and Quintas & Quintas shall return the packages as soon as they stop
       using them.

1.5.3  No value will be owed by Quintas & Quintas for the use of the package, if
       the packages return to Xtal in re-utilization conditions, as described in
       item 1.5.

1.6    Delivery Place: at Quintas & Quintas Factory (at the address below) and
       Xtal shall be responsible for the freight
       Quintas and Quintas Condutores Eletricos do Brasil Ltda.
       Rua Paraiba, 1000 - 12(0)Andar - Funcionarios
       Belo Horizonte - MG
       CGC 03.934.024/001-06

2.     PAYMENT CONDITIONS

2.1    Prices (freight and insurance included - paid by Xtal)

2.1.1  The net price of the Product to the amounts scheduled in the item 1.3.1
       shall be the ones mentioned below (hereinafter referred the Net Price),
       and it is here established that the Net Price shall be reviewed according
       to the item 2.1.2

Year 2001

       o      First Semester: US$ 47.00 / km (Forty seven dollars per
              kilometer).

       o      Second Semester: US$ 47.00 / km (Forty seven dollars per
              kilometer), admitting a maximum readjustment of up to 5% (five per
              cent) lower or higher in the price, if the Market Price is
              superior or inferior to the price above mentioned.

Year 2002

       o      First Semester: 25% of the amount at US$ 40.00 / km (Forty dollars
              per kilometer) and 75% of the amount at the Market Price.

       o      Second Semester: 25% of the amount at US$ 40.00 / km (Forty
              dollars per kilometer) and 75% of the amount at the Market Price.

Year 2003

       o      First Semester: 50% of the amount at US$ 45.00 / km (Forty five
              dollars per kilometer) and 50% of the amount at the Market Price.

<PAGE>

       o      Second Semester: 50% of the amount at US$ 42.00 / km (Forty two
              dollars per kilometer) and 50% of the amount at the Market Price.

2.1.2  Net Price in Reais (R$): it is the value of the Net Price converted to
       reais (R$), (hereinafter referred to as "the Net Price in Reais"), using
       the commercial dollar rate of sale (PTAX), given by the information
       system of the Central Bank, transaction PTAX800, option 5 ("accounting
       quotations") for the immediately previous day to the invoicing of the
       product.

2.1.3  Invoicing: it will be done based on the net price of the Product in Reais
       with accrued taxes, according to item 3. below.

2.1.4 a) The following months are established for meetings between Xtal and
      Quintas & Quintas, aiming to determine the price readjustment values, to
      the percentile of the contracted amounts at the Market Price, as described
      in the item 2.1.1:

       o      Year 2001: May and November

       o      Year 2002: May and November

       o      Year 2003: May and November

2.1.4  b) The readjustment of the prices will be done based on the price of the
       Product in the North-American market.

2.1.4  c) The price reference to be used in the first price readjustment meeting
       shall be US$ 47,00/km (forty-seven dollars per kilometer). This value is
       equivalent to the price of US$ 36.19 / km (thirty six dollars and
       nineteen cents per kilometer) for the same type of Product in the
       North-American Market in November 2000. In the subsequent meetings, the
       price references to the readjustment calculation will be the last
       readjusted price and the value of the Product in the North-American
       Market, on the date of the meeting.

2.1.5  If there is a reduction of the Import Tax aliquot (hereinafter referred
       as "II") of the Product, Xtal undertakes to reduce the Net Price, in the
       maximum period of 30 (thirty) days, at the same proportion of the aliquot
       reduction of the Product "II".

2.1.6  If the Product "II" aliquot increases, Quintas & Quintas undertakes to
       accept the increase in the Net Price, in the maximum period of 30
       (thirty) days, at the same proportion of the aliquot reduction of the
       Product "II".

2.2    Payment

2.2.1  Payment Term:

2.2.1  a) From January to July 2001, the payment will be a vista, no longer than
       3 (three) days after the Invoice issue, with a discount of the Financial
       Tax correspondent to the projection of the CDI (certificate of inter bank
       deposit) of 30 days, published in the newspaper Gazeta Mercantil of the
       last day of the previous month of the Product invoice.

2.2.1  b) From August 2001 to December 2003, the period of the payment shall be
       30 (thirty) days from the delivery date, without the increase of any
       Financial Tax.

2.2.2  Payment Readjustment based on the Exchange Variation:

<PAGE>

2.2.2  a) Exchange Variation is defined by the corresponding value, in Real
       (R$), of the difference between what would be the net price of the
       Product in Real (R$) on the date of the payment and its net price on the
       invoicing date.

2.2.2  b) Exchange Variation of up to 5% (five percent) shall not give rise to
       any readjustment of the payment value.

2.2.2  c) Quintas & Quintas has to compensate Xtal by 50% (fifty percent) of the
       positive exchange variation in the part that such variation exceeds the
       rate of 5% (five percent) mentioned above.

2.2.2  d) In the negative exchange variation, according to the definition above,
       Quintas & Quintas will be compensated by Xtal, in 50% (fifty percent) of
       the part if such variation exceeds 5% (five percent).

2.2.3  On the payment date, Quintas & Quintas should pay the product invoiced
       independently of the Exchange Variation verified in respect to such
       payment.

2.2.4  At the end of every month the Exchange Variations will be calculated of
       the payments made by Quintas & Quintas during the referred period. The
       Exchange Variation calculated above in the form of item 2.2.2 in the
       reference month will be computed in the first Revenue of the following
       month.

2.2.5  If the there is a Exchange Variation superior to 5% (five per cent) in
       the previous revenue, the compensation will be made through financial
       payment, in a way that the part in debt should compensate the other part
       according to the item 2.2.2 c) and 2.2.2 d).

3.     TAXES ON THE NET PRICE IN REAL (R$)

3.1    ICMS tax (sales tax) will be included according to the State where the
       product is sold.

3.2    15% of IPI (excise tax) tax to be mentioned separately in the Invoice.

4.     BANK GUARANTEE AND FINE

4.1    Bank Guarantee: on the day of the first revenue Quintas & Quintas shall
       present a bank guarantee in the equivalent value of the revenue of 45
       (forty-five) days, that will be revalidated each 30 (thirty) days.

4.2    Fine: 2% (two percent) of fine will be charged over the amount of the
       payment in case of the delay, in the event Xtal has not caused it and it
       is established that Quintas & Quintas will be

entitled to pay the financial charges that may be duly.

5.     COMMITMENT OF PURCHASE AND SALE

5.1    Xtal agrees to meet the Quarterly Delivery Program described in item
       1.3.1 of the contract, dividing it per weeks. It should also make the
       delivery within 3 (three) business days of the Invoicing date, subject to
       the suspension of the respective payment, excluding the event of force
       majeur or fortuitous events.

5.2    If there is any eventual shortage of raw material or no availability of
       equipment that implies in the interruption of Xtal production during the
       year of 2001, there will not be any fines due to delays in the delivery

<PAGE>

       of the product, not releasing Xtal from the obligation of delivering the
       delayed quantity in no longer than 60 (sixty) days starting from the
       regularization of the raw material supply or availability of equipment.

5.2.1  In the event of force majeur, if the supply of the Product is not enough
       to meet all the commitments of Product delivery to the customer, Xtal
       undertakes to divide equally the supply of the available Product among
       the customers that it has the commitment of Obligatory Purchase ("Take or
       Pay").

5.2.2  In the years of 2002 and 2003, excluding the event of fortuitous events,
       force majeur and shortage of raw material, Xtal and excluding what is
       established in item 5.5, if Xtal does not meet the delivery commitment,
       established in item 1.3.1, Quintas & Quintas shall be financially
       indemnified in 100% of the referred value to the quantities delayed, not
       releasing Xtal from the obligation of future delivery of the delayed
       fiber.

5.2.3  The maximum period of 10 (ten) days will be considered tolerable before
       Xtal is considered to have delayed the delivery.

5.3    In the event of substantial alteration of the economical-financial
       equilibrium of this Contract, the values will be renegotiated and
       readjusted annually.

5.4    In the event of obligatory purchase ("Take or Pay"): Quintas & Quintas
       undertakes obligatorily to buy the quantities described in item 1.3.1,
       guaranteeing the total payment of the quantities to be shipped, as
       described in the item 2. If Quintas & Quintas, after the beginning of the
       delivery of the Product by Xtal, give up, without any justification,
       partially or totally, the acquisition of the contracted fiber quantities,
       excluding the event of fortuitous events and force majeur, Xtal shall be
       financially reimbursed of the amount equivalent to the quantities to be
       delivered.

5.5    Notwithstanding the obligation of the fulfillment of the delivery of the
       contracted quantities in each semester, the monthly supplies may have a
       maximum variation of 20% and Xtal will not suffer any of the penalties.

6.     PRODUCT GARANTEE

       Xtal will substitute without any burden to Quintas & Quintas, any
       quantity of Product, in no-conformity situation with the specifications
       determined in the item 1.4 of this contract, provided the cabling
       operations have been made using the adequate technical standard and that
       the generating fact of this situation is communicated formally to Xtal
       within a period of 10 (ten) days, starting from the date of its
       occurrence. The period of this warranty is of 06 (six) months counting as
       of the date of the shipment of the Product.

7.     END OF THE CONTRACT

       This Contract shall enter in effect immediately upon signature by the two
       parties and shall remain in effect until December 31st, 2003. The
       contract cannot be transferred totally or partially, without previous
       accordance of both parts. If Quintas & Quintas does not present bank
       guarantee, according to item 4.1, up to January 15th, this Contract shall
       be cancelled.

8.     IMPORTANT MODIFICATIONS

<PAGE>

       If it is necessary, Quintas & Quintas shall inform in its purchase order,
       any corporate changes or changes in its by-laws that may imply in any
       alteration to any of the obligations or condition established in this
       contract.

9.     RESOLUTION OF LITIGATIONS

       The courts of the city of Sao Paulo shall rule any controversy due to
       this contract, and the parties waive to any other court, even if it is
       more beneficial.

10.    SIGNATURES

XTAL FIBRAS OPTICAS S/A

Campinas, SP, December _____, 2000.

Signed:

Rafael B. Gandara - Financial Director

Celso Arantes Simoes - Marketing & Sales Director

Antonio Carlos de Campos - Managing Director

QUINTAS & QUINTAS CONDUTORES ELETRICOS DO BRASIL LTDA.

Signed:

Manuel Pedro Quintas - Financial Adm. Director

Pedro Lima - Financial Director

11. WITNESS:

------------------------------------------------------
Name
Occupation
Quintas & Quintas Condutores Eletricos do Brasil Ltda.
Document:

Signed:
Nivaldo Seixas - Sales Manager -Xtal Optical Fibers S/A RG 20.449.226-91 SSP-SP

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