Document:

Exhibit 4.15

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Exhibit 4.15

PETRÓLEO BRASILEIRO S.A. 

PETROBRAS 

		
	 	AGREEMENT 835/96 
	 	 
	 	    PURCHASE AND SALE AGREEMENT OF RAW 
	 	    MATERIALS MADE BY AND BETWEEN 
	 	    PETRÓLEO BRASILEIRO S.A. – PETROBRAS 
	 	    AND COPESUL – COMPANHIA PETROQUÍMICA 
	 	    DO SUL, AS FOLLOWS: 

PETRÓLEO BRASILEIRO S.A - PETROBRAS, a mixed-capital company, with its principal place of business at Avenida República do Chile, 65 - 19° andar, in the city of Rio de Janeiro, State of Rio de Janeiro, enrolled with the National
Register of Legal Entities of the Ministry of Finance (CNPJ/MF), under no. 33.000.167/0001 -01, hereinafter referred to as PETROBRAS, herein represented by its CEO, Mr. JOEL MENDES RENNO; and COPESUL Companhia Petroquímica do Sul, with
its principal place of business at Rodovia Tabaí-Canoas, Km 419, in the city of Triunfo, State of Rio Grande do Sul, enrolled with the CNPJ/MF under no. 88.948 -492/0001-92, hereinafter referred to as COPESUL, herein represented by its
Officers, Messrs. LUIZ FERNANDO CIRNE LIMA and ROGÉRIO AFFONSO DE OLIVEIRA; mutually resolve to enter into this Agreement, in accordance with the following terms and conditions: 

SECTION ONE- PURPOSE 

1.1. The purpose of this Agreement is the sale and supply, without exclusivity, of the raw materials listed in Schedule I -PRODUCTS AND QUALITY, by PETROBRAS, and its purchase and receipt by COPESUL, exclusively for own
consumption in its industrial facilities in Triunfo, State of Rio Grande do Sul.

SECTION TWO – RISKS AND RESPONSIBILITIES 

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2.1. COPESUL is fully aware of the risks associated with the use of products contemplated by this Agreement and agrees that its personnel is aware of such risks, taking full responsibility to warn, train and protect its employees, contractors
and clients as regards the risks to persons and property somehow connected to the products.

2.2. PETROBRAS does not offer any guarantee that the supplied products are adequate for any specific use, except as to the supply specification and conditions set forth in Section Six- PROPERTY SUPPLY AND TRANSFER and in Schedule I -PRODUCTS
AND QUALITY. COPESUL also takes full responsibility for the results from the use of the products in its facilities, either individually or in combination with other articles or substances, and in any manufacturing process wherein the products
may be used as raw material. 

2.3. In compliance with the supply specification and conditions in Section Six - PROPERTY SUPPLY AND TRANSFER and in Schedule I - PRODUCTS AND QUALITY, COPESUL agrees to hold PETROBRAS free and clear of any claims, damages and/or losses suffered or caused to third parties arising from the application of this Agreement, imputed as being the responsibility of COPESUL
and/or of its representatives, contractors, third parties under its responsibility or connected thereto in any way.

SECTION THREE – DELIVERY SCHEDULE 

3.1.1. COPESUL may review the annual consumption expectation of raw materials up to March 31 of the subsequent year, while PETROBRAS, at its exclusive discretion, may accept such review or not.

3.2. Except for the provisions set forth in Section Nine - FORCE MAJEURE, should COPESUL, due to its exclusive negligence, fail to receive the minimum annual amount of 85% (eighty-five percent) specified in item 3.1, PETROBRAS
shall present COPESUL with the calculations of the additional costs for providing the difference between the amount of requested raw materials as well as that effectively purchased by COPESUL and, provided the losses to
PETROBRAS are technically proved and
acknowledged by both parties, the parties shall then agree on some form of redress.

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3.3. COPESUL shall inform in writing, up to the 5th (fifth) day of each current month (N), the monthly amounts of raw materials it intends to receive within the subsequent six months, (N+1 to N+6), adopting the following
maximum variations in relation to what was previously informed for the same month:

	Month 	Variation 
	First (N+1)	3% 
	Second (N + 2)	5% 
	Third (N + 3)	10% 
	Fourth (N + 4)	Free 
	Fifth (N + 5)	Free 
	Sixth (N + 6)	Free 

3.3.1. The maximum variation adopted for a given month, from the moment it takes up the N+4 position until it reaches the N+1, shall be 12% (twelve percent), provided it is not caused by problems related to the supply and quality of the supplied
raw materials. 

3.3.2. PETROBRAS shall employ its best efforts to previously inform on the quality of the raw materials to be supplied, so as to enable COPESUL’s proper consumption programming and the compliance with the maximum variations
set forth in item 3.3. 

3.4. Up to the 10th (tenth) day of each month, PETROBRAS shall confirm its possibility to supply the raw materials for the following month. 

3.5. COPESUL’s failure to inform or in the event of receipt of communication not within schedule shall entail the supply of the quantities informed in the previous month, PETROBRAS not being subject to the penalties set
forth in item 3.8 hereof. 

3.6. COPESUL’s failure to collect the amounts scheduled for a given month shall release PETROBRAS from having to replace, in any subsequent month, the non-collected amounts, PETROBRAS not being subject to the penalties set
forth in item 3.8. 

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3.7. Should COPESUL, for reasons not specified in item 6.4 and in Section Nine - FORCE MAJEURE of the Agreement, and not even for supply reductions of raw materials, not receive and not accept to purchase the monthly amounts requested
in item 3.3 of the Agreement, PETROBRAS shall present COPESUL with the calculations of its additional costs for providing the difference between the amount of requested raw materials as well as that effectively purchased by
COPESUL and, provided the losses to PETROBRAS are technically proved and acknowledged by both parties, the parties shall then agree on some form of redress.

3.8. If, for reasons other than those defined in Section Nine -FORCE MAJEURE of the Agreement, and not even due to COPESUL’s negligence, PETROBRAS cannot supply the monthly amounts requested pursuant to item 3.3, COPESUL
shall present PETROBRAS with the calculations of the losses caused by the supply shortage of raw materials and, provided these are technically proved and acknowledged by both parties, the parties shall then agree on some
form of redress. 

SECTION FOUR – DEMURRAGE 

4.1. When the raw materials are transported by ship, in the event of demurrage due to COPESUL’s fault, all the costs arising from the demurrage event shall be borne by COPESUL and shall be calculated in
accordance with Schedule VI – LAY PERIOD AND DEMURRAGE. 

SECTION FIVE - TERM 

5.1. This Agreement shall bind the parties on the date of execution, and shall be valid for 16 (sixteen) years as of September 30, 1997, renewable for successive periods of 5(five) years, as mutually agreed upon by the parties.

5.1.1. As of the date this Agreement becomes effective, the parties shall consider the Naphtha Purchase and Sale Agreement, entered into on March 22, 1983, terminated.

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SECTION SIX – PROPERTY SUPPLY AND TRANSFER  

6.1. PETROBRAS shall supply, under normal conditions, the raw materials for COPESUL, in accordance with the specifications in SCHEDULE I - PRODUCTS AND QUALITY, through the REFAP/COPESUL System and the Tramandaí
REFAP/COPESUL Terminal System.

6.2. The transfer of property of the raw materials shall take place in accordance with the provision in Section Eleven - MISCELLANEOUS, item 11.4 of this Agreement. 

6.3. All methods and procedures related to the measurements of the amounts supplied, installation and calibration of the gauges, frequency of the measurements, measurement basis and forms to harmonize any differences observed in the measurements
made are specified in Schedule III – MEASUREMENT.

6.4. The raw materials supplied by PETROBRAS that do not meet supply specification and conditions, defined in this section and in Schedule I - PRODUCTS AND QUALITY, may be rejected by COPESUL, in which event the
deliveries shall be interrupted until PETROBRAS may present raw materials in supply conditions. In such cases, PETROBRAS shall keep COPESUL informed on the actions and expectations for the prompt reestablishment of the
regular supply conditions, employing efforts in the sense of meeting the consumption needs of COPESUL. 

6.4.1. In case COPESUL, informed in due time, may formally accept the raw materials off specification, PETROBRAS shall not be held liable for direct, indirect or consequent damage that may be caused to COPESUL and/or
third parties it supplies, from the use of such products, PETROBRAS being released from having to replace, in any subsequent month, the accepted amount of raw materials. 

6.4.2. COPESUL’s acceptance of a given amount of raw materials off-specification shall not imply, in any way, specification alteration or COPESUL’s obligation to
accept other amounts under such conditions.

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6.5. PETROBRAS shall not be subject to the penalties set forth in item 3.8 of this Agreement due to the reduction of supply resulting from the non-acceptance of the raw material by COPESUL, pursuant to item 6.4, provided item 11.5 of
Schedule II – AMOUNTS is complied with. 

6.6. PETROBRAS and COPESUL shall seek to establish adequate procedures to gradually reduce the amounts of unwanted contaminants in the supplied raw materials. 

SECTION SEVEN - INTERRUPTIONS 

7.1. PETROBRAS and COPESUL shall keep the other party informed on any events that may affect the regular supply of raw materials and shall employ their best efforts for the prompt reestablishment of its regular operation.

7.2. COPESUL shall seek to adapt its interruption plans for preventive maintenance to the interruption plans of the local refinery (REFAP) and to the interruption plans of the other Petrochemical Units supplied by PETROBRAS, with the
purpose of obtaining a better continuity of the supply to be made by PETROBRAS. 

7.3. PETROBRAS and COPESUL shall always keep the other party informed on the dates scheduled for its programmed maintenance interruptions of over 5 (five) days, providing the schedule of products/consumption of raw materials in
both, in writing and at least 60 (sixty) days in advance.

7.3.1. Collection interruptions on the part of COPESUL, for periods longer than 5 (five) days, provided they have not been previously informed, shall subject it to the penalties set forth in item 3.7 of this Agreement. 

SECTION EIGHT - TERMINATION 

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8.1. PETROBRAS and COPESUL may unilaterally and legally terminate this Agreement, regardless of judicial or extra-judicial notification, the other party having no right to claim or be indemnified in the following cases:

8.1.1. relapse of or continuity to the provisions in item 11.2; 

8.1.2. bankruptcy, dissolution, judicial or extra-judicial liquidation, or COPESUL’s preventive composition with creditors, whether requested, approved or adjudicated; 

8.1.3. partial or full transfer of this Agreement to third parties, not authorized by the other party; and 

8.1.4. transformation, merger, incorporation or any form of succession of one of the parties, even if timely justified, may affect the performance of this Agreement. 

8.2. This Agreement may be terminated by any of the parties, at any time, in case of institutional alterations or for whatever reasons due to force majeure which may significantly alter the productive capacity of the other party.

8.3. In case one of the parties does not use its right to terminate the Agreement under this Section, it may suspend its execution, at its exclusive discretion, until the infracted contractual clauses have been complied with by the other party.

SECTION NINE –FORCE MAJEURE 

9.1. None of the parties may be held liable for the nonperformance of its obligations when such is motivated by an act of God or force majeure, pursuant to the provisions in article 1.058, sole paragraph of the Brazilian Civil Code. 

SECTION TEN- TAXES 

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10.1. Taxes and social contributions regarding the purpose of this Agreement shall be paid pursuant to the law.

SECTION ELEVEN - MISCELLANEOUS 

11.1. Without the prior express authorization of the other party, PETROBRAS and COPESUL may not: 

11.1.1. assign or offer as guarantee in any way, whether fully or partially, the credits of any nature arising from this Agreement; 

11.1.2. transfer this Agreement, entirely or partially; and 

11.1.3. use, refer or mention the name of the other party, or an equivalent expression, in advertising or publicity communication, in any way.

11.2. The parties, at their exclusive discretion, may suspend the execution of this Agreement in the event of nonperformance of any of the Sections or contractual condition, until the infracted contractual clauses have been complied with by the
other party.

11.3. PETROBRAS and COPESUL mutually assume the commitment, in case of reciprocal convenience and in accordance with the legislation in force and through a fair remuneration, to make possible the use of its
logistic structures to each other, based on the nature of such operations.

11.4. Previously to the effectiveness of this Agreement, pursuant to the provision in Section Five- TERM, the parties are to enter into a Contractual Addendum, which shall be made an integral part of this Agreement, providing for the following:

11.4.1. Transfer of property of Petrochemical Naphtha: 

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11.4.1.1. PETROBRAS intends that: 

11.4.1.1.1. The transfer of property of naphtha produced at the REFAP take place at "A" of the REFAP. 

11.4.1.1.2. The transfer of property of the imported naphtha and cabotage take place at the flange discharge edge of the ship, and that COPESUL bear the costs deriving therefrom.

11.4.1.2. COPESUL intends that: 

11.4.1.2.1. The transfer of property of all the naphtha supplied take place at "A" of the REFAP. 

11.4.1.2.2. PETROBRAS be liable for any losses at the transfer.

11.4.2. Payment form: 

11.4.2.1. PETROBRAS intends that: 

11.4.2.1.1. The invoicing be made for cash payments, term payments being allowed. 

11.4.2.1.2. Should the invoicing be made for term payments, PETROBRAS wishes that it be made within the shortest term in effect for the supply of Petrochemical naphtha by PETROBRAS to the Petrochemical Units. 

11.4.2.2. COPESUL intends that: 

11.4.2.2.1. The invoicing be made for term payments, and, if agreed upon by the parties, be made for cash payments.

11.4.2.1.2. In case the invoicing is made for term payments, COPESUL requires that it be made within at least 14 (fourteen) days, 28 (twenty-eight) days being desired.

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11.4.3. Sale conditions for effluents. 

11.4.3.1. PETROBRAS intends: 

11.4.3.1.1. That, as of the moment the legislation ceases to require COPESUL to sell its effluent with exclusivity to PETROBRAS, the latter has preemptive rights to purchase same.

11.4.3.1.2. To acquire, with preference, the C9 bi-hydrogenated current, to incorporate into its fuel line, produced by COPESUL under the name Solvent C9 160-220. 

11.4.3.2. COPESUL intends: 

11.4.3.2.1. That, as of the moment the legislation ceases to require COPESUL to sell its effluent with exclusivity to PETROBRAS, COPESUL may trade the sale conditions of the effluent without having to grant
preferences.

11.4.3.2.2 To trade, without preference, its Solvent C9 160-220. 

1.5. PETROBRAS is the exclusive supplier of raw materials to COPESUL. However, should it be in the interest of COPESUL and PETROBRAS, and permitted by law in force, COPESUL may purchase part of
the amount of raw materials from another supplier, necessary for the supply of its industrial needs.

11.6. PETROBRAS’ goal is to supply COPESUL with raw materials of its own production which may represent 70% (seventy percent) of COPESUL’s entire consumption, for which COPESUL hereby agrees to
cooperate in the definition of the adequate investments for such purpose and to participate in such investments.  

11.7. The documents below are attached hereto, and are made an integral part of this
Agreement, as follows: 

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SCHEDULE I – PRODUCTS AND QUALITY 

SCHEDULE II – QUANTITIES 

SCHEDULE III – MEASUREMENT 

SCHEDULE IV – PRICES AND ADJUSTMENTS 

SCHEDULE V– PAYMENT FORM

SCHEDULE VI – LAY PERIOD AND DEMURRAGE 

SCHEDULE VII – EFFLUENT RETURN 

11.7.1. Whenever necessary, PETROBRAS and COPESUL may mutually reevaluate these Schedules, adapting them to the new existing conditions.

SECTION TWELVE – LEGISLATION ALTERATION/CHANGE

12.1. If, at any time, during the effectiveness of this Agreement, there should be any changes to the legislation which may affect any Section hereof or even the essence of this Agreement, resulting in adverse economical consequences to any of the
parties, the parties may request a renegotiation of the contractual terms.

SECTION THIRTEEN - ADDRESSES 

13.1. Any and all correspondence related hereto or to the execution hereof is to be sent to the addresses below, the parties being allowed to indicate others, in writing:

PETRÓLEO BRASILEIRO S.A. - PETROBRAS 

Avenida República do Chile, 65 - 19° andar 

20.035 -900 - RIO DE JANEIRO - RJ 

COPESUL - COMPANHIA PETROQU¥MICA DO SUL 

BR 386 -Rodovia Tabaí/ Canoas, km 419 - Polo Petroquímico 

95.853 -000 - TRIUNFO - RS 

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SECTION FOURTEEN - JURISDICTION 

14.1. The parties hereby elect the courts of the city of Rio de Janeiro, State of Rio de Janeiro, as having jurisdiction to settle any disputes arising from this Agreement or its performance, to the exclusion of any other court however privileged it
may be.

IN WITNESS WHEREOF, the parties sign this Agreement in 3 (three) counterparts of identical form and content, to one sole effect, in the presence of the undersigned witnesses, for all legal purposes.  

     Triunfo, February 23, 1996. 

     [sgd] 

Joel Mendes Rennó 

PETRÓLEO BRASILEIRO S.A. – PETROBRAS 

  

			
	[sgd]_________________________ 	 	[sgd]___________________________ 
	Luiz Fernando Cirne Lima	 	Rogério Affonso de Oliveira

COPESUL - COMPANHIA PETROQU¥MICA DO SUL 

Witnesses: 

			
	[sgd]_________________________ 	 	[sgd]___________________________ 
	Name: Percy Louzada de Abreu 	 	Name: Hardi Luiz Schuck 

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RAW MATERIAL SUPPLY AGREEMENT 

LIST OF SCHEDULES TO THE RAW MATERIAL SUPPLY AGREEMENT 

The schedules to this Agreement, indicated by their names, have been duly certified by the following representatives of the parties:

By PETRÓLEO BRASILEIRO S.A. - PETROBRAS 

Name: Percy Louzada de Abreu   

Initials: 

By COPESUL - COMPANHIA PETROQU¥MICA DO SUL 

Name: Hardi Luiz Schuck 

Initials:  

SCHEDULE I – PRODUCTS AND QUALITY 

SCHEDULE II – QUANTITIES 

SCHEDULE III – MEASUREMENT 

SCHEDULE IV – PRICES AND ADJUSTMENTS 

SCHEDULE V– PAYMENT FORM

SCHEDULE VI – LAY PERIOD AND DEMURRAGE 

SCHEDULE VII – EFFLUENT RETURN 

	
	Triunfo, February 23, 1996 
	 
	[sgd]____________________________ 
	Joel Mendes Rennó

PETRÓLEO BRASILEIRO S.A. – PETROBRAS 

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	[sgd]____________________________ 	 	[sgd]_________________________ 
	Luiz Fernando Cirne Lima 	 	Rogério Affonso de Oliveira 

COPESUL - COMPANHIA PETROQU¥MICA DO SUL 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE I - PRODUCTS AND QUALITY 

I.1. PETROBRAS shall collect in its facilities, for quality control purposes, 3 (three) samples of the raw materials from each lot transferred, keeping 2 (two) as proof for a period of 30 (thirty) days.

I.1.1. The supply shall only commence after PETROBRAS has confirmed the compliance with product specifications.

I.1.2. Should COPESUL, whether due to a critical supply situation or any other cause, at its discretion, wish to start to receive prior to PETROBRAS’ confirmation the compliance with product specifications, it should inform
PETROBRAS in writing. 

I.2. PETROBRAS shall seek to ensure the quality of its products through a Quality Plan, using control and process monitoring methods.

I.3. Should COPESUL detect any contaminants or noncompliance with any item of the guaranteed specification in Table 1 of this Schedule, it shall notify PETROBRAS on such fact. PETROBRAS is hereby required to immediately start
the procedures for confirming and quantifying such fact.

I.3.1. If the raw materials supplied by PETROBRAS are off the specification guaranteed in Table 1 of this Schedule, except for the provision in item 6.4.1. of the Agreement, PETROBRAS shall be required to analyze the claims related to the losses an additional costs to COPESUL arising from the processing the raw materials off specification and, provided they are technically proved and
acknowledged by both parties, the parties shall then agree on some form of redress.

I.4. In the event of divergence as to product quality, COPESUL is to inform PETROBRAS within the period defined in item I.1, that it will analyze one of the proof samples and track the variables, ensuring a joint decision between the

companies.

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I.5. The technical specifications for the supply of the raw materials dealt with herein, as well as the respective analysis methods to be practiced by PETROBRAS and COPESUL are specified in Table I - "Technical Specifications of Raw Materials" of this Schedule.

I.5.1. Any alteration to the methodology is to be previously agreed upon by the parties. 

I.5.2. Any alteration to or introduction of new items in the specification contained herein is to be previously agreed upon by the parties. 

I.6. PETROBRAS shall inform COPESUL of the results of the analyses of the cabotage and import products carried out by the PETROBRAS’ appointed inspectors or technicians in the loading ports, prior to their arrival to the
unloading terminal. 

I.7. With the purpose of improving the quality of the supplied raw materials, PETROBRAS and COPESUL shall seek to develop analysis methods and procedures that aim to bring the guaranteed amounts of the technical specification in
Table I closer to those intended by COPESUL, contained in Table II. 

I.7.1. PETROBRAS and COPESUL shall evaluate the alteration of the limits of the technical specification in Table I and/or inclusion of the parameters contained in Table II of this Schedule. 

I.8. In case the raw materials supplied are off the specification guaranteed in Table I hereof, and should it be convenient for both parties, the parties may negotiate a sale price reduction, so as to compensate COPESUL for the
nonperformance of the minimum quality requirements and reduce costs of any nature that PETROBRAS may have to specify the raw materials or to give them another destination.

I.8.1. COPESUL acceptance of the raw materials off the specification guaranteed, at a
lower price, releases PETROBRAS from any liabilities on the consequences arising from such raw materials. 

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I.9. The documents listed below are an integral part hereof and specify the raw materials contemplated by this Agreement: 

I.9.1. NAPHTHA 

I.9.1.1. Guaranteed Technical Specification - Table I 

I .9.1.2. Items intended by COPESUL - Table II 

I .9.2. PROPANE AND BUTANE (LPG) 

I .9.2.1. Guaranteed Technical Specification - Table I 

I.9.2.2. Items intended by COPESUL - Table II (to be defined in the future) 

I.9.3. CONDENSED GAS 

I.9.3.1. Technical Specification to be further defined by the parties.

I.9.1.1. NAPHTHA - TECHNICAL SPECIFICATION- TABLE I 

	TECHNICAL SPECIFICATION 

    NAPHTHA 
	ANALYSIS 	UNIT 	GUARANTEED 

    AMOUNT 	REFERENCE 
	LEAD 	ppb max mass 	 50 	PETROBRAS N-1897/ UOP350 
	COPPER 	ppb max mass 	 note 	PETROBRAS N-1897 UOP350 
	LEAD -I- 

    COPPER 	ppb max mass 	 note 	PETROBRAS N-1897 UOP350 
	IRON 	ppb max mass 	 note 	PETROBRAS N-1897 UOP350 
	ETHANOL 	ppm max mass 	 100 	GC 
	METHANOL 	ppm max mass 	 20 	GC 
	MTBE 	ppm max mass. 	(1)	GC (1)

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	CHLORIDE 	 	ppm max mass 	 	10 	 	UOP-588 /UOP606 
	TOTAL 	 	 	 	 	 	 
	 		 		 		 
	SULPHUR 	 	ppm max mass 	 	500 	 	ASTM 05453/ 04294/ D12661 
	 	 	 	 	 	 	UOP357 
	 		 		 		 
	DISTILLATION 	 	 	 	 	 	ASTM-D-86 
	                    PIE 	 	°C min 	 	30 	 	 
	                    50% 	 	°C max 	 	note 	 	 
	                    PFE 	 	°C max 	 	204 	 	 
	 		 		 		 
	DISTILLATION 	 	% max vol. 	 	note	 	ASTM-D-86 
	RESIDUE	 	 	 	 	 	 
	 		 		 		 
	DENSITY 	 	 	 	0.65 – 0.735 	 	ASTM D4052 
	 		 		 		 
	PONA (2)	 	 	 	 	 	GC high resolution 
	PARAFFINS 	 	% mass min 	 	(2)	 	 
	NAPHTHENIC 	 	% mass 	 	balance 	 	 
	AROMATIC 	 	% max mass 	 	balance 	 	 
	OLEFIN 	 	% max mass 	 	1.0 	 	 
	 	 	 	 	 	 	 
	 		 		 		 
	SAYBOLT 	 	min.	 	(2)	 	 
	COLOR 	 	 	 	 	 	 
	 		 		 		 

			
	(1)	 	Method under development and limit to be set forth until the effectiveness of the Agreement, pursuant to the provisions in Section Five - TERM. 
	(2)	 	Limit to be set forth until the effectiveness of the Agreement, pursuant to the provisions in Section Five - TERM. 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE I – PRODUCTS AND QUALITY 

I.9.2.1. PROPANE AND BUTANES - TECHNICAL SPECIFICATION TABLE I 

							
	 
	TECHNICAL SPECIFICATION 
	PROPANE E BUTANES 
	 
	ANALYSIS 	 	UNIT 	 	GUARANTEED 	 	REFERENCE 
	 	 	 	 	AMOUNT 	 	 
	 		 		 		 
	Vapor pressure at 37.8 C 	 	kgf/cm2, max 	 	15 	 	MB-205 ABNT-IBP 
	 		 		 		 
	Distillation temperature 	 	°C, max 	 	2 	 	MB-285 ABNT-IBP 
	95% to 760 mm, Hg 	 	 	 	 	 	 
	 		 		 		 
	corrosiveness 	 	max 	 	1 	 	MB-281 ABNT-IBP 
	 		 		 		 
	Volatile Sulphur 	 	g/m3, max 	 	0.36 	 	MB-327 ABNT-IBP 
	 		 		 		 
	Humidity 	 	 	 	(1)	 	 
	 		 		 		 

(1) The product may not contain free or dispersed water. 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE I – PRODUCTS AND QUALITY 

1.9.1.2. NAPHTHA – ITEMS INTENDED BY COPESUL - TABLE II 

							
	 
	ANALYSIS 	 	 	 	INTENDED 	 	REFERENCE 
	 	 	UNIT 	 	VALUE 	 	 
	 	 	 	 	COPESUL 	 	 
	 		 		 		 
	LEAD 	 	ppb max mass 	 	20 	 	PETROBRAS N-18971 UOP350 
	 		 		 		 
	COPPER 	 	ppb max mass 	 	10 	 	PETROBRAS N-1897 UOP350 
	 		 		 		 
	LEAD + COPPER 	 	ppb max mass 	 	30 	 	PETROBRAS N-1897 UOP350 
	 		 		 		 
	IRON 	 	ppb max mass 	 	50 	 	PETROBRAS N-1897 UOP350 
	 		 		 		 
	ALUMINUM 	 	ppb max mass 	 	2 	 	(1)
	 		 		 		 
	MERCURY 	 	ppb max mass 	 	exempt 	 	(11 
	 		 		 		 
	ARSENIC 	 	ppb max mass 	 	2 	 	(1)
	 		 		 		 
	PHOSPHORUS 	 	ppm max mass 	 	2 	 	(1)
	 		 		 		 
	ETHANOL 	 	ppm max mass 	 	100 	 	GC 
	 		 		 		 
	METHANOL 	 	ppm max mass 	 	1 	 	GC 
	 		 		 		 
	MTBE 	 	ppm max mass 	 	2 	 	(2)
	 		 		 		 
	ORGANIC 	 	ppm max mass 	 	1 	 	UOP779 
	CHLORIDES 	 	 	 	 	 	 
	 		 		 		 
	TOTAL 	 	ppm max mass 	 	10 	 	UOP-588 /UOP606 
	CHLORIDES 	 	 	 	 	 	 
	 		 		 		 
	SULPHUR 	 	ppm max mass 	 	300 	 	ASTM D5453/ D4294/D1266/ 
	 	 	ppm min mass 	 	100 	 	UOP357 
	 		 		 		 
	DISTILLATION 	 	 	 	 	 	ASTM-D-86 
	                    PIE 	 	°C min 	 	36 	 	 
	                    50% 	 	°C max. 	 	75 	 	 
	                    PFE 	 	°C max 	 	170 	 	 
	 		 		 		 
	DISTILLATION 	 	% max vol 	 	1.0 	 	ASTM-D-86 
	RESIDUE 	 	 	 	 	 	 
	 		 		 		 
	DIESEL AND	 	- 	 	- 	 	(1)
	PETROLEUM 	 	 	 	 	 	 
	CONTAMINATION	 	 	 	 	 	 

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	- DENSITY 	 	 	 	0.65 – 0.70 	 	ASTM D4052 
	 		 		 		 
	PONA 	 	% min mass 	 	 	 	GC high resolution 
	                    PARAFFINS 	 	% mass 	 	73.0 	 	 
	                    NAPHTHENIC 	 	% max mass 	 	balance 	 	 
	                    AROMATIC 	 	% max mass 	 	6.0 	 	 
	                    OLEFINS 	 	 	 	1.0 	 	 
	 		 		 		 
	SAYBOLT COLOR 	 	min. 	 	+30 	 	 
	 		 		 		 

			
	(1)	 	Method not available, the viability of its inclusion is to be evaluated 
	(2)	 	Method under development 

Other unwanted contaminants, though without specification standards, are: Sodium, Potassium, Nitrogen, Amines and Zinc. 

II.1. The amounts of raw materials purchased, except for the provision in Section Seven - INTERRUPTIONS, are the following: 

Until the start of the extension operation of COPESUL, expected for the second semester of 1998: 

									
	 		 		 
	 	 	ANNUAL AMOUNT : (t)	 	MONTHLY AMOUNT (t)
	 		 		 
	RAW 	 	MINIMUM 	 	MAXIMUM 	 	MINIMUM 	 	MAXIMUM 
	MATERIALS 	 	 	 	 	 	 	 	 
	 		 		 		 		 
	NAPHTHA 	 	1.451.400 	 	2.419.000 	 	121.000 	 	201.600 
	 		 		 		 		 

After the start of the extension operation of COPESUL, expected for the second semester of 1998: 

									
	 		 		 
	 	 	ANNUAL AMOUNT : (t)	 	MONTHLY AMOUNT : (t)
	 		 		 
	RAW 	 	MINIMUM 	 	MAXIMUM 	 	MINIMUM 	 	MAXIMUM 
	MATERIALS 	 	 	 	 	 	 	 	 
	 		 		 		 		 
	NAPHTHA 	 	2.100.000 	 	3.500.000 	 	175.000 	 	291.667 
	 		 		 		 		 

II.2 COPESUL shall inform the monthly and annual amount of naphtha and propane, butanes and condensed gas required, the last 3 (three) denominated complementary raw  materials, in accordance with the provision in Section Three - DELIVERY SCHEDULE. 

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II.2.1. The annual consumption expectation of raw materials is to contemplate the estimated amount of each raw material to be consumed by COPESUL in the following calendar year, as well as the naphtha amount equivalent to the
complementary raw materials requested, calculated in accordance with the equivalent ratios specified in 11.3 of this Schedule (naphtha-equivalent). 

II.2.2. PETROBRAS agrees to supply and COPESUL to purchase the annual amount of naphtha-equivalent equal to the sum of raw materials requested by COPESUL, in accordance with the quantitative limits of item II.1 of this
Schedule, the supply of complementary raw materials being subject to previous agreement between the parties. 

II.2.3. The monthly consumption expectation of raw materials dealt with in Section Three - DELIVERY SCHEDULE of the Agreement is to contemplate the amount of each raw material to be consumed by COPESUL within the
following 6 (six) months.  

II.2.3.1. Should COPESUL neither purchase nor accept to receive the amounts of raw materials requested, it shall be subject to the provisions in Section Three - DELIVERY SCHEDULE, item 3.7 of the Agreement. 

II.2.3.2. Should PETROBRAS not be able to supply the monthly amounts of raw materials requested by COPESUL, it shall be subject to the provisions in Section Three - DELIVERY SCHEDULE, item 3.8 of the Agreement. 

II.2.4. In case the amounts of raw materials requested by COPESUL exceed the maximum annual limit provided for in this Schedule, PETROBRAS shall then employ its best efforts to supply the additional amounts, however, it
shall be released from meeting such request and exempted from any fault and liability.

II.2.4.1. The supply of raw materials over the maximum amount mentioned herein shall not
allow PETROBRAS to discount the exceeding amount in any subsequent year.

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II.3. The naphtha amount of this Agreement may be substituted, upon mutual agreement between the parties, for propane, butanes and/or condensed gas, following the maximum limits set forth in item II.4 of this Schedule and the
equivalent ratios contained in the table below:

			
	 		 
	COMPLEMENTARY RAW	 	NAPHTHA 
	MATERIALS 	 	EQUIVALENT 
	 		 
	PROPANE 	 	1.15 
	 		 
	BUTANES 	 	0.90 
	 		 
	CONDENSED GAS 	 	0.80 
	 		 

II.4. The maximum amounts of propane, butanes and condensed gas to be supplied by PETROBRAS, and consumed by COPESUL, in accordance with the equivalent ratios to naphtha of item 11.3 of this Schedule, are the following:

					
	 		 		 
	COMPLEMENTARY RAW	 	 ANNUAL 	 	MONTHLY 
	MATERIALS 	 	AMOUNT(t)	 	AMOUNT (t)
	 		 		 
	PROPANE 	 	550.000 	 	45.830 
	 		 		 
	BUTANES 	 	650.000 	 	54.170 
	 		 		 
	CONDENSED GAS 	 	1,450,000 	 	120,830 
	 		 		 

II.5. Due to the characteristics of receipt of petroleum and byproducts at Tramandaí Terminal, PETROBRAS shall maintain the minimum stock of raw materials in the area comprising the Tramandaí Terminal, REFAP and
COPESUL, sufficient to keep COPESUL in operation for 15 (fifteen) days, taking into account the minimum consumption amounts set forth in this Schedule, and that the storage capacity of COPESUL corresponds to 19 (nineteen) days
of such minimum consumption.

II.5.1. In special situations, the parties may negotiate different limits of minimum raw material storage in the area comprising the Tramandaí Terminal, REFAP and COPESUL. 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE III – MEASUREMENT 

III.I. For the measurement and registration of amounts of raw materials supplied to COPESUL, for invoicing purposes, PETROBRAS shall use the measuring instruments, testing instruments, filters, line densimeters, meters and flow
totalizers, denominated "Official Measurement Instruments", all of which of prestigious brands and models, in a Measurement Station (EMED), to be installed in REFAP, which shall be used as a measuring basis for invoicing.

III.1.1. For the measurement of the raw materials supplied by PETROBRAS, COPESUL shall make available “User Measuring Instruments” in its facilities, of brands and models preferably equal to those of the "Official Measurement
Instruments". 

III.1.1.1. In case the "User Measuring Instruments" are of a different brand and model from those of the "Official Measuring Instruments", they are to comply with the provisions in item III.2 of this Schedule. 

III.1.2. For the supply of the returns of COPESUL to REFAP, COPESUL’s measuring instruments shall be designated the "Official Measuring Instruments", while the measuring instruments of PETROBRAS shall be the
"User Measuring Instruments". 

III.1.3 While the Measuring Stations are not installed, the measuring system through the tank level variation shall continue to be used.

III.1.4. Each of the parties shall be entitled to free access to the measuring systems of the other, pursuant to their norms and procedures, for any purpose.

III.1.5. The flow band of the "Official Measuring Instruments" and the "User Measuring Instruments" is to be set between the parties, based on the agreed upon flows. 

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III.2. Up to 6 (six) months after the start of operation of the "Official Measuring Instruments" and the "User Measuring Instruments", the parties shall set the maximum relative difference of acceptable measurement.

III.3. The check of the supplied product amount shall be made on a daily basis by PETROBRAS and by COPESUL, and on the same day of measurement, the information on the ascertained amounts shall be exchanged, except on weekends
and holidays, so as to follow up every day any departure between the measuring systems.

III.3.1. The parties shall agree on the hour set for the reading of the gauges or the tanks.

III.3.2. The daily measurement report and all the registers related to the supplied product amounts ascertained by the "Official Measuring Instruments" and by the "User Measuring Instruments", as well as the data related to the handling of tanks,
are to be made available to the parties, for any check or claim, until one year after the due date of the respective invoices.

III.3.2.1. Any negotiation of daily measuring differences is to be made by analyzing a time period never shorter than 30 (thirty days). 

III.3.3. PETROBRAS and COPESUL are to maintain the data with the record of their instruments for a minimum period of one year, in order to carry out a statistical analysis of the measurements and reliability of the systems. 

III.4. In case of maintenance, non-availability or non-adjustment to the "Official Measuring Instruments", the ascertainment shall be made through the "User Measuring Instruments", provided they are proven to be accurate.

III.4.1. Should it not be possible to use the "User Measuring Instruments", for invoicing purposes, one of the following methods shall be used, in order:

a) Volume variation measurement of the supply tanks; 

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b) Volume variation measurement of the receipt tanks; and 

c) Another criterion agreed upon by the parties. 

III.4.2. For base volume measurement, the calculation of amounts at 20°C are to be made pursuant to Resolution no. 6-70 dated 06/25/70 of the CNP - INPM - "Tables of Density and Volume Correction of Petroleum Products ", with the due
transformation into mass values. 

III.4.2.1. For the mass ascertainment through PETROBRAS’ EMED, a line densimeter installation is provided for. 

III.5. The parties hereto are to elaborate a maintenance, gauging and calibration program of the "Official Measuring Instruments" and "User Measuring Instruments" providing for a routine check of the instruments. 

III.5.1. It is hereby agreed that the instruments shall be deemed commercially accurate for the purposes of quantity ascertainment if the tests thereon indicate an individual inaccuracy up to the limits set in item III.2 of this Schedule. 

III.5.2. In the calibration of the "Official Measuring Instruments", in case of supply of raw materials, a variation of 0.05% (point zero five percent) between the results under the same operating conditions of pressure and flow, shall be
considered acceptable, in accordance with PETROBRAS’ General Instruction Handbook (MIG), and according to the rules in the Petroleum Measurement Standards Handbook, Chapter 4 - Proving Systems, Section 2 of the American Petroleum Institute
(API). 

III.6. The maintenance and calibration of the “Official” and/or “User” measuring instruments shall always be made with prior written notice to the other party, given at least 2 (two) business days in advance, in order for such
party to send representatives to follow up on the job. PETROBRAS and COPESUL may, at any time, request the checking and calibration of the instruments of the other
party. 

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III.6.1. In the absence of a representative of the other party, such checking shall proceed having the infracting party no right to any claims. 

III.6.2. PETROBRAS and COPESUL are to provide copies of the calibration reports of their respective instruments, whenever requested by the other party. 

III.6.3. When the instrument check and calibration are requested outside the maintenance plan, by any of the parties, and their precision is verified, the costs arising therefrom shall be borne by the requesting party.

III.7. Whenever the daily differences between the “Official Measuring Instruments" and the "User Measuring Instruments" show readings higher than the amounts set forth in item III.2, they shall be deemed doubtful, and proper procedures to
identify and calibrate the inaccurate instrument shall promptly begin.

III.7.1 Should the maximum limited percentage set forth in item 111.2 not be complied with, after the adjustment of both instruments, the parties are to mutually agree on the amounts, for invoicing purposes. Such condition shall endure until the
provided for difference is met, at which time the invoiced amounts shall be corrected.  

III.8. In the event the supply of the raw materials is made by a different system from that of the Tramandaí / REFAP / COPESUL, PETROBRAS and COPESUL shall meet in order to establish the principles to be adopted for the
correct quantification of the supplied raw materials. 

III.9. In case it is not possible to use the line densimeter, PETROBRAS and COPESUL shall mutually establish the procedures for the correct density ascertainment in the measurements made in base volume, for its
transformation into mass units.

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE IV – PRICES AND ADJUSTMENTS 

IV.1 For the raw materials produced or imported by PETROBRAS and supplied to COPESUL, at the delivery place defined in Section Six -PROPERTY SUPPLY AND TRANSFER of this Agreement, COPESUL shall pay PETROBRAS the
amount corresponding to the sum of the following installments: 

IV.1.1 For Petrochemical Naphtha: 

IV.1.1.1. The supply price of Petrochemical Naphtha to COPESUL shall comply with the provisions contained in Inter-ministerial Statement of Justification (EM) no. 400/93, dated 12/10/93, or further regulation that may succeed it. 

IV.1.1.1.1 In case EM no. 400/93 is no longer in force and there is no further regulation, the parties shall agree on the price of the Petrochemical Naphtha, as well as the commercial supply conditions, at an arm’s length basis,
and pursuant to the Letter of Intent, executed by the parties on 07/31/95. 

IV.1.1.2. The charge to use the oil pipeline between Alberto Pasqualini Refinery (REFAP) and the battery limit of the Raw Material Central Unit of COPESUL for the transportation of Petrochemical Naphtha, duly approved by the DNC –
National Fuel Department or another body that may substitute it. Such charge shall be reviewed periodically by PETROBRAS and its adjustments shall be in effect after the approval of the DNC. PETROBRAS shall inform COPESUL of all
the revisions of such charge, as well as the calculation methodology, prior to sending them for approval by said Department.

IV.1.1.3. The parties may enter into an agreement with the purpose of setting the premium payment or the penalty for the performance or nonperformance to certain quality requirements of Petrochemical Naphtha. 

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IV.I.2. For Propane, Butanes and Condensed gas: 

 The price and such other commercial conditions for the supply of said raw materials shall be previously and mutually agreed upon between the parties, including the specific charge for the use of pipelines and terminals, as well as other
costs to PETROBRAS arising herefrom and/or from the legislation in force.

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE V - PAYMENT FORM 

V.1. The payment form to be adopted for the invoicing of Petrochemical Naphtha, by PETROBRAS, and of the returns, by COPESUL, shall be defined as specified in Section Eleven - MISCELLANEOUS, item 11.4 of the Agreement. 

TERM SALE CONDITIONS

V.2. The invoicing of PETROBRAS to COPESUL shall be made immediately after each delivery, based on the provisions in SCHEDULE III - MEASUREMENT. 

V.2.1. The invoices of each delivery shall be issued for the price specified in SCHEDULE IV - PRICES AND ADJUSTMENTS, plus financial charges that PETROBRAS may be practicing at the time the raw materials are invoiced.

V.3 The payment of the invoices issued by PETROBRAS for the Petrochemical Naphtha is to be made in accordance with the provisions in Section Eleven - MISCELLANEOUS, item 11.4 of the Agreement. 

V.3.1. The payment terms for propane, butanes and condensed gas shall be agreed upon between the parties prior to the start of the first supply.

V.4. Late payments shall be subject to charges calculated pro-rata by PETROBRAS at the time. 

V.5. Late payments of any invoice by COPESUL shall entitle PETROBRAS to suspend the term invoicing, irrespective of any notice, and the supplies may be maintained as a prior deposit of the amount involved, at the discretion of
PETROBRAS. 

 

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 V.6. Within 3 (three) days as of the receipt of the invoices, COPESUL may challenge them if any error is detected therein, except for the provisions in SCHEDULE III – MEASUREMENT on the measurement difference corrections. In such event, until the invoice due dates, the parties are to provide, as mutually agreed upon, whatever is necessary for the correction of any detected error, within the period set forth in
item V.3 for the payment of the amount effectively due, PETROBRAS not being entitled to charge interest in arrears for any delay in the correction of the amounts, should the error be verified.

CASH SALE CONDITIONS 

V.7. COPESUL shall make daily deposits in favor of PETROBRAS after the end of each measuring period, in accordance with the provisions in Schedule III - MEASUREMENT, item III.3.1, the amount being calculated based on the amount of
supplied raw materials. 

V.7.1. The deliveries shall be carried out through the issue of Cash Sale Invoices at the price on the exit date of the raw materials, pursuant to Schedule IV - PRICES AND ADJUSTMENTS. 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE VI - LAY PERIOD AND DEMURRAGE 

VI.1. Pursuant to Section Four - DEMURRAGE of the Agreement, when the supply of raw materials derives from the import using non-freighted ship or belonging thereto, the total demurrage amount charged to PETROBRAS shall be debited to COPESUL, PETROBRAS having to present the proof of all the costs arising from the demurrage. 

V1.2. Pursuant to Section Four - DEMURRAGE of the Agreement, when the supply of raw materials arising from the import on a ship freighted by PETROBRAS or belonging thereto, the total demurrage amount shall be debited to COPESUL
as follows: 

VI.2.1. LAY PERIOD 

VI.2.1.1. The lay period allowed shall start when the ship has docked or after 6 (six) hours as of the issue of the Operation Notice (Notificação de Pronto para Operar), prevailing whatever occurs first. 

VI.2.1.2. Such Operation Notice shall be issued at the usual anchoring location, when the ship is ready to operate in relation to all aspects.

VI.2.1.3 The lay period shall end when the unloading hoses are disconnected, after the unloading completion. 

V1.2.1.4. The purchaser shall be allowed a lay period of 36 (thirty-six) running hours for the total ship unloading, including Sundays and holidays, (SHINC), or  "pro-rata" for "part cargo". 

V1.2.1.5. The period corresponding to the events related below shall be discounted from the calculation of the demurrage: 

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a) Shifting of ship from anchoring to unloading mooring; 

b) Ship’s unstable conditions, including breaking down or other problems that may reduce the unloading efficiency; 

c) prohibition of or restriction to the unloading attributed to the
seller or ship’s charterer or freighter; 

d) delay or failures attributed to the Captain, crew or ship’s agent; and

e) supply of bunkers, discharge of ballast or residual water, when these cause any unloading interruption.

V1.2.2. DEMURRAGE 

VI.2.2.1. For any period exceeding the allowed lay period, as specified in the previous chapter, the purchaser shall pay the amount corresponding to US Dollars converted according to the bid price on the date the invoice is issued, through the
presentation of supporting collection documents, COPESUL being subject to the financial charges, payment terms and fines, as described in Schedule V - Payment Form. 

VI.2.2.2. Any of the following documents shall suffice for the calculation of the demurrage: STATEMENT OF FACTS or TIME SHEET of the inspection company (in the event of divergent information, the former shall prevail over the latter); a CHARTER
PARTY or the ship’s RECAP may be requested when the ship has been chartered per trip. 

VI.2.2.3. The demurrage is to be paid by the purchaser for the rate specified in the CHARTER PARTY or RECAP or FIXTURE, in case of ships chartered in VCP and COA. For ships chartered in TCP, the rate shall be the daily rent plus the fuel cost. For
private ships, the rate shall be calculated by the AFRA index for similar vessels, in force on the unloading date. In lack of C/P, COA, TCP or private ship, the payment shall be made based on the rate ascertained according to the World Scale table,
by applying the market rate as described in the AFRA index.

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE VII – EFFLUENT RETURN 

VII.1. COPESUL shall sell to PETROBRAS the total amount of petroleum effluent products from its plant operations, mentioned in item V11.1.2, with no possibility of consumption in the chemical industry, and which may be incorporated
into the petroleum byproducts subject to the Federal Government Monopoly.

VII.1.1. In case, in the future, the Federal Government Monopoly is no longer practiced by PETROBRAS, and there is no other legal provision on the effluent return, the parties shall meet in order to discuss the supply conditions based
on the deregulation of the sector. 

VII1.1.1. The conditions for making or not a priority effluent supply to PETROBRAS shall be set forth in accordance with the provisions in Section Eleven, item 11.4 of the Agreement. 

VII.1.2. The products subject matter hereof are classified below, and shall be called return products: 

VII.1.2.1. The products incorporated by PETROBRAS into its LPG (Liquefied Petroleum Gas) are the hydrocarbonates of the C3 and C4 band. 

VII.1.2.2. The products incorporated by PETROBRAS into its gasoline are the hydrocarbonates of the C5 to C8 band, non-aromatic and the C9 mono-hydrogenated. 

VII.2. COPESUL shall inform the expectation of return amounts to be sold to PETROBRAS, along with the raw material expectation mentioned in Section Three-DELIVERY SCHEDULE, items 3.3 and 3.3.1 of the Agreement. 

VII.2.1. Due to the high dependency of the return production upon the raw materials supplied by PETROBRAS, COPESUL shall employ its best efforts in order to
comply with the expected amounts, though it may not be penalized for not performing within the program, when motivated by variations not provided for in the composition of the raw materials supplied to COPESUL. 

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VII.3. The commercial and financial conditions to be used for the invoicing of the return products shall be the same as those used by PETROBRAS for the sale of the Petrochemical Naphtha. 

VII.3.3. Taxes and social contributions related to the return products shall be paid pursuant to the law. 

VII.4. The procedures related to the measurement and ascertainment of the amounts of the return products supplied by COPESUL to PETROBRAS are the ones also valid for the ascertainment of the amounts of raw materials
supplied by PETROBRAS to COPESUL, specified in Schedule III - MEASUREMENT of this Agreement. 

VII.4.1. The return products shall be considered delivered to PETROBRAS after the measurement point, at the flange edge of the COPESUL’s pipeline with that of PETROBRAS. 

VII.5. The parties shall meet to define a sample and quality control plan that meets PETROBRAS’ needs. 

VII.5.1. COPESUL may not be held liable for the noncompliance with the specification of the return products, in case the loss of specification is proven to be a consequence of the raw material quality supplied by
PETROBRAS to COPESUL. 

VII.5.2. COPESUL may not be penalized, in case, in the interest of PETROBRAS, it sends part of its products that may be incorporated into gasoline, separate from the others, causing the loss of specification contained herein.

VII.5.3. If the return products sold by COPESUL to PETROBRAS are off the
specification guaranteed in item VII.5.6, PETROBRAS may, at its discretion, receive the products without being required to receive the products under the same conditions in the future.

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VII.5.4. The parties may negotiate a price reduction for receipt of the return products off specification. 

VII.5.5. PETROBRAS’ consent to receive products off specification shall exempt COPESUL from any liabilities for any losses caused to PETROBRAS. 

VII.5.6. The specification of the return products contemplated in this Schedule is shown in the tables below: 

VII.5.6.1. Technical specification- Products that may be Incorporated into gasoline. 

VII.5.6.2. Technical specification- Products that may be Incorporated into LPG. 

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RAW MATERIAL SUPPLY AGREEMENT 

SCHEDULE VII – EFFLUENT RETURN 

VII.5.6.1. TECHNICAL SPECIFICATION- PRODUCTS THAT MAY BE INCORPORATED INTO GASOLINE 

							
	TECHNICAL SPECIFICATION 
	PRODUCTS THAT MAY BE INCORPORATED INTO GASOLINE 
	 
	ANALYSIS 	 	UNIT 	 	GUARANTEED 	 	REFERENCE 
	 	 	 	 	AMOUNT 	 	 
	 		 		 		 
	Vapor pressure 	 	 kg-U=2 	 	0.7 	 	MB-162 ABNT-IBP 
	 		 		 		 
	Induction period 	 	 minutes, mm 	 	360 	 	MB-288 ABNT-IBP 
	 		 		 		 
	glue 	 	 mg/100 ml 	 	5 	 	MB-289 ABNT-IBP 
	 		 		 		 
	distillation 	 	°C 	 	 	 	MB-45 ABNT-IBP 
	 	 	 10%, max. 	 	70 	 	 
	 	 	 50%, max. 	 	140 	 	 
	 	 	 90%, max. 	 	200 	 	 
	 	 	 PFE, max. 	 	220 	 	 
	 	 	 residue % max vol 	 	2 	 	 
	 		 		 		 
	sulphur 	 	 % weight 	 	0.25 	 	MB-327 ABNT-IBP 
	 		 		 		 
	Corrosiveness at 50°C, 	 	 	 	 	 	 
	max 3 hours 	 	 	 	1 	 	MB-287 ABNT-IBP 
	 		 		 		 

Note: When PETROBRAS requests the separate C6C8 cut to be sent, the following items may not be reached: vapor pressure, distillation, glue and induction period.

VII.5.6.2. TECHNICAL SPECIFICATION - PRODUCTS THAT MAY BE INCORPORATED INTO LPG. 

							
	TECHNICAL SPECIFICATION 
	PRODUCTS THAT MAY BE INCORPORATED INTO LPG 
	 		 
	ANALYSIS 	 	UNIT 	 	GUARANTEED 	 	REFERENCE 
	 	 	 	 	AMOUNT 	 	 
	 		 		 		 
	Vapor pressure at 37.8 °C 	 	Kgfl cm2, max 	 	15 	 	MB-205 ABNT-IBP 

							
	distillation temperature 95% to	 	°C, max 	 	2 	 	MB-285 ABNT-IBP 
	760 mm Hg 	 	 	 	 	 	 
	 		 		 		 
	corrosiveness 	 	max 	 	1 	 	MB-281 ABNT-IBP 
	 		 		 		 
	volatile sulphur 	 	g/m3, max 	 	0.36 	 	MB-327 ABNT-IBP 
	 		 		 		 
	humidity 	 	 	 	(1)	 	 
	 		 		 		 

 (l) The product may not contain free or dispersed water.Exhibit 4.10

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Exhibit 4.10 

Services Agreement and Other Covenants 

By this private instrument, and in the best terms of law, the Parties hereinbelow to wit: 

Empresa Brasileira de Telecomunicações S.A. - EMBRATEL, headquartered at Avenida Presidente Vargas, 1.012, in the city and state of Rio de Janeiro, Corporate Taxpayer’s ID (CNPJ/MF) 33.530.486/0001 -29, hereby
represented in the form of its Bylaws, hereinafter referred to as EMBRATEL; and 

NET Serviços de Comunicação S/A, headquartered at Rua Verbo Divino, 1356, in the city and state of São Paulo, Corporate Taxpayer’s ID (CNPJ/MF) 00.108.786/0001 -65, and its subsidiaries ("NET Operations"),
duly listed in the Exhibit I to the present Heads of Agreement, all of them represented by its articles of incorporation, hereinafter referred to as NET; 

NET and EMBRATEL severally designated as Party and jointly as Parties;

WHEREAS: 

(I) On November 22, 2005, the Parties entered into a Telecommunications Services Agreement and Other Covenants, the Services Agreement and Other Covenants and the Loan for Use Agreement ("Agreements"), all of them providing for certain obligations
in order to make feasible the rendering of voice services by EMBRATEL to its end customers; 

(II) EMBRATEL intends to explore voice services by means of the concurrent utilization of NET’s and EMBRATEL’s infrastructures, in synergy that enables the combination and optimization of resources and know how of the Parties, so
that they may offer on an integrated basis, video, broadband and voice, the called triple play; 

(III) The Parties acknowledge and agree that the Agreements mentioned in Whereas (1), in view of the execution of this Agreement, had no effectiveness as of the date of its execution, as if they never have existed, therefore, not generating any
rights or obligations between the Parties since then, reason that they decide to terminate them and replace them with this present Agreement, except for the Loan for Use Agreement; and 

(IV) The NET services, subject-matter hereof shall be contracted by EMBRATEL, pursuant to article 94 of the General Law of Telecommunications - LGT, and EMBRATEL shall provide the Switched Fixed Telephone Service – STFC, Multimedia
Communication Service -SCM and/or service related to another regulation structure; 

They resolve to enter into this present Services Agreement and Other Covenants ("Agreement"), which shall be ruled by applicable regulation and by following conditions: 

1. Purpose 

1.1. This Agreement aims at formalizing the contracting by EMBRATEL of the following services: (i) telecommunication services comprising the provision of shared and two-way accesses, including access to the capacity in CMTS and other
infrastructures, purpose of additional investments in HFC Network, to be provided pursuant to this Agreement and Exhibits ("Telecommunication Services") and (ii) Voice Service global management services, including advertising, sales, call center,
postage, field services and dealership ("Other Services), in accordance with corresponding NET’s obligations required to EMBRATEL explore Voice Services, as defined in Clause 3 hereof, on a retroactive basis to March 2006. 

1

 1.1.1 For the purposes of this Agreement, Voice Services are those explored based on the granting of Switched Fixed Telephony Service – STFC of EMBRATEL, Multimedia Communication Service – SCM and/or by means of another regulation
structure that best suits to their exploration by EMBRATEL, by means of the utilization of NET’s HFC network concerning access to end customers, concurrently using EMBRATEL’s telecommunications network, in order to serve the market of residential consumers and small-sized companies, as well as other related companies to which NET currently already provides its services. Notwithstanding EMBRATEL explores Voice Services, these may compose an
integrated provision of video, broadband and voice, called triple-play. 

1.1.2 In order to perform this Agreement, NET will employ its infrastructure (including, but not limited to its coaxial cable access network and optical fiber network), know how and expertise in the current market explored for the development of
tasks related to advertising, sales, call center, postage, field services and dealership with end customers contracting the Voice Services; and EMBRATEL, on its turn, will employ its infrastructure, especially its telecommunications network for the
development of tasks related to billing, interconnection, conciliation of traffic and provision of other telecommunications inputs required for the provision of Voice Services, preferably using as of July 2006, Siemens platform or another equivalent
quality supplier, duly certified by the Cable Television Leboratories, Inc. - CableLabs, with technology based on PacketCable standard and which may appropriately be used, among others, the SIP protocol. 

2. Voice Service Exploration Area 

2.1 The approach to explore Voice Services shall take place in the cities where NET provides DOCSIS two-way network, starting in the cities of São Paulo/SP, Rio de Janeiro/RJ, Santos/SP, Campinas/SP, Curitiba/PR, Florianópolis/SC,
Porto Alegre/RS, Belo Horizonte/MG and Brasília/DF and then comprising all other cities where NET operates. 

2.1.1 The Parties shall jointly define, according to their convenience, the order and terms in which the Voice Services shall be explored in areas that do not have DOCSIS two-way network. 

3. Activities and Obligations of the Parties 

3.1 Concerning Voice Services: 

3.1.1 Pursuant to the provision in Exhibit VI below, NET is responsible for: 

- Preparing and advising on products, offers and price plans for Voice Services and PUC, subjecting them to the previous validation of EMBRATEL, with sufficient advance to: (i) submit to the National Telecommunications Agency ("ANATEL"), when
necessary and (ii) implementation of infrastructure involved; 

- Define, among those provided for in item 1.5 of Exhibit VI below and subitems, the PUC to be offered in each Voice Services product, and previous acknowledgment to EMBRATEL;

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- Executing sales pilots in the laboratory format to test new offers related to Voice Services; 

- Preparing and advising on promotions, subjecting them to the previous validation of EMBRATEL;

- Defining the positioning against competitors, including attributes and competitive advantages; 

- Defining the market of operation, its comprehensiveness and target public, observing the operation of current market explored; 

- Defining the packets among other services of NET and Voice Services, and their designations; 

- Defining the layout of invoice, its name and other items and submit it to the previous validation of EMBRATEL; 

- Defining and engaging supplier of call center and telemarketing, granting the first option to Brasil Center; 

-
Developing new offers of Voice Services, with sufficient advance to: (i) submit to ANATEL and publication, when necessary; and (ii) implementation in the infrastructure involved; and 

- Validating the draft of Voice Services agreement to end
customers prepared by EMBRATEL. 

3.1.2 EMBRATEL shall be responsible for: 

- Submitting the offers to ANATEL, once received the specifications prepared by NET, pursuant to applicable rules; 

- Informing NET, within no later than two (2) business days after receiving the specifications referred to above, if it is
necessary to submit specifications to ANATEL, in order to NET plan and execute the launching of Voice Services products and offers; 

- Indicating and maintaining relationship interface responsible for receiving, analyzing and validating products, offers, price plans and packets of Voice Services and other elements related thereto; 

- Updating and
forwarding to NET, up to the fifth (5th) business day of each month, a database that enables the development of Voice Services business campaigns, so that to avoid the overlapping of approaches; and 

- Preparing the draft of Voice Services
to be provided to end customers, subjecting them to NET’s validation. 

3.2. Concerning Communication: 

3.2.1 Pursuant to Exhibit VI below, NET shall be responsible for: 

- Carrying out advertising campaigns for Voice Services products and offers; 

- Procedures and measures with the National Council of Advertising Self-Regulation – CONAR; 

- Managing Voice Services logotype, observing the handbook for the use of Voice Services logotype established jointly with EMBRATEL; 

- Using EMBRATEL brand in accordance with the rules set forth in Exhibit VI below and with the handbook for the use of brand to be made available by EMBRATEL; 

- Defining and engaging the advertising agency; 

- Defining the communication strategy and
the concept of campaigns; 

- Defining the communication materials; 

- Defining the communication vehicles; and 

- Making available to EMRRATEL the information derived from definitions referred to in this item 3.2.1 in order to make feasible the Voice
Services-related communications. 

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 3.2.2 EMBRATEL shall be responsible for: 

- Advertising Voice Services products and offers, occasion upon which the information made available and specifications prepared by NET shall be observed and complied with; and 

- Disclosing via its in-house
communication vehicles, the Voice Services; and 

- Developing and making available a handbook for the use of EMBRATEL brand to be used by NET. 

3.3 Concerning Sales:  

3.3.1 NET shall be responsible for: 

- Defining and managing its current and potential sales channel; 

- Measuring its sales team in order to meet the Estimate of Demand; 

- Developing and execute training; scripts and sales guide in its sales channels; 

- Establishing by common agreement with EMBRATEL, the policies to be implemented by the backoffice (understood as the operating structure destined to the update of information into EMBRATEL’s systems), in compliance with the Agreement
for the Information Technology Service Level ("SLA IT"), provided for in Exhibit II hereof; 

- Managing the mailings for Voice Services marketing and communication campaigns; 

- Defining the credit policy applied to Voice Services, in compliance with
the applicable rules; 

- Validating the Voice Services customers’ addresses; and 

- Bearing the telecommunications infrastructure costs that offer the number of access, the respective traffic and data and voice links. 

3.3.2 EMBRATEL shall be responsible for: 

- Confirming to NET Voice Services total sales made, except for the errors found, within a term no later than twelve (12) hours, observing the SLA IT rules; and 

- Conform its in-house processes and policies in order to implement, as per SLA IT, the
credit policies and address of Voice Services defined by NET. 

3.4 Concerning Call Center: 

3.4.1 NET shall be responsible for: 

- Providing services to Voice Services customers via Call Center and on an on-site basis, in accordance with the quality levels required by the regulation applicable to the pay TV service and Multimedia Communication Service – SCM,
redirecting to EMBRATEL the answer for situations outlined in item 3.4.2 below; 

- Training and upgrading multipliers and suppliers; 

- Preparing and updating call center guides, including scripts and call center and telemarketing procedures; 

-
Preparing and updating training material for call center and telemarketing; 

- Publishing and updating supporting tool for call center and telemarketing agents; 

- Carrying out customers loyalty and retention activities; and 

- Bearing
telecommunications infrastructure costs related to (i) its access number "4004"; (ii) data and voice links and (iii) respective traffic, deducted from the traffic destined to 4004, originated by Voice Services 

3.4.2 EMBRATEL shall be responsible for: 

- Making available information requested by NET in order to prepare call center and telemarketing scripts; 

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 - Serving the customers redirected by NET, providing service support pursuant to the Agreement for Call Center Performance Indicators ("SLA Call Center”), provided for in Exhibit V hereof, and that includes, concerning the infrastructure
provided by EMBRATEL and other obligations set forth herein: (i) all call center process requiring the access to EMBRATEL systems and (ii) provide information and/or clarifications to the customer on the statement items recorded in EMBRATEL bill,
the sending of a copy of bill, extension of maturity, cancellation of bill, treatment of challenge of amounts, rebates, reversals and/or cancellation of amounts recorded and registration into the NET SMS system, and EMBRATEL shall maintain updated a
track record of agreements with end customers. The call center support provided for herein may be required, without being restricted to this vehicle, by means of call transfer between NET call center and EMBRATEL call center;

- Providing the access via the number 10321 to Voice Services end customers, as provided for in “SLA Call Center”, also being responsible for redirecting the calls to NET call center positions; and

- Carrying out update of information at EMBRATEL systems by backoffice, as provided for SLA Call Center, among them, without being limited thereto: alteration in the phone number, alteration in the collection address, alteration in the address of
facility, alteration in the maturity date and terminal deactivation at EMBRATEL systems used as provided for in SLA IT. 

3.5 Concerning Infrastructure: 

3.5.1 NET shall be responsible for: 

- Preparing the internal coaxial network of end customers to provide Voice Services, as well as to install the equipment called embedded Multimedia Terminal Adapter – eMTA ("eMTA") and carry out tests to assess the operations of Voice
Services, pursuant to the applicable rules; 

- Executing the Voice Services maintenance services of user/customer, including the installation services, and when necessary, the uninstallment of eMTA (but not the maintenance of own equipment); 

- Maintaining and operating its coaxial cable access
network and optical fiber network under conditions required to provide Voice Services (defined herein as "HF Network"), and the operation includes the following activities: 

•  Quality monitoring; 

•  Availability monitoring; and 

•
Retrieval.  

- Maintaining processes and policies to prevent indoor and outdoor attacks; 

- Preparing the Estimate of Demand provided for in Clause Four hereof; 

- Supplying eMTA and CMTS gates, according to sales made; 

- Making available IP address
offered by EMBRATEL, in its DHCP servers, as per Estimate of Demand; 

- Expanding its DHCP servers as per Estimate of Demand; 

- Expand CMTS, as per Estimate of Demand;

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- Specifying by common agreement with EMBRATEL, the interfaces of equipment for utilization in the interconnection of networks; 

- Appointing and maintaining a team devoted to services and support (defined herein as "NOC"), in the identification, diagnosis and retrieval of failures at NET infrastructure supporting Voice Services; 

- Informing NOC, within no lather than fifteen
(15) minutes, any Massive Failure as defined in SLA Technical provided for in the Exhibit III ("SLA Technical"), detected in its network affecting Voice Services; 

- Making available a report to follow-up flaws indentified at HFC Network, CMTS, Nodes
and DHCP Servers, as provided for in the SLA Technical; 

- Carrying out alterations in the configuration and preventive interventions in CMTS and/or DHCP servers that may affect Voice Services on a coordinated basis with EMBRATEL; 

- Inform EMBRATEL on preventive interventions carried out at HFC Network
using the existing disclosure tools; 

- Carrying out emergency interventions at any moment, as per procedures and practices to be determined in the Handbook of Operating Practices and Procedures that will guide the technical and operational
relationship between the Parties in that not immediately ruled herein ("MPPO"), as to be agreed upon between the Parties; 

- Preparing the expansion projects of its HPC Network in compliance with a Special Project, as specified in Clause Eight
hereof, and execute the expansion as per rules agreed upon the Parties; and 

- Making available a report monitoring failures identified at HFC networks and NET IP, as provided for in SLA Technical. 

3.5.2 EMBRATEL shall be responsible for: 

- Maintaining and operating in compliance with SLA Technical, its telecommunications network necessary to provide Voice Services, and the operation includes the following activities: 

•  Monitoring of quality; 

•  Monitoring of availability;

•  Retrieval; and 

•  Supply of NGN Network elements as per sales made, within term provided for in SLA IT. 

- Informing NOC, within no later than fifteen (15) minutes, on any Massive Failure, as defined in SLA Technical, or  any other
striking form, detected at its telecommunications network affecting the Voice Services; 

- Making available the IP Network with adequate capacity to provide Voice Services and expand it as per Estimate of Demand; 

- Making available NGN Network with adequate capacity to provide Voice Services and expand it as per Estimate of Demand and as provided for in SLA Technical; 

- Making available interfaces of equipment as defined by common agreement with NET; 

-
Maintaining processes and policies to prevent indoor and outdoor attacks; 

- Carrying out alterations of configuration or preventive interventions at IP and NGN networks that may affect Voice Services on a coordinated basis with NET; 

- Carrying out
emergency interventions at any moment, as per procedures and practices to be determined in MPPO to be executed between the Parties; 

- Bearing, by end customer of activated Voice Services, with activation fee corresponding to the portion of
acquisition cost of each CMTS as provided for in Clause Six below; 

- Appointing and maintaining, as provided for in SLA Technical, a team devoted to call center and support in the identification, diagnosis and retrieval of failures in EMBRATEL
infrastructure supporting the Voice Services; 

- Making available failure monitoring report identified at IP and NGN Networks of EMBRATEL, as provided for in SLA Technical; 

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- Making available to NET the phone numbers of STFC, in number that exceeds
the monthly service of Estimate of Demand by fifteen per cent (15%), as per SLA Technical, as long as there are no restrictions established by ANATEL; 

- Making available to NET invalid IP numbers, in number that exceeds the monthly service of
Estimate of Demand by fifteen per cent (15%) as per SLA Technical; 

- Testing the suitability of eMTA equipment with the telephone network; and 

- Ensuring that phone numbers allocated to the Voice Services are not used by other products, plans and services of EMBRATEL 

3.5.3 The Parties shall review the exceeding percentage of STFC figures and invalid IP numbers to be made available by EMBRATEL, after three (3) months when Voice Services start to be explored and periodically, whenever another review is necessary,
observing the demand verified in the period and the regulatory issues involved. 

3.5.4 For the scope of Voice Services and for the purposes of understanding of what was established in this item: 

(a) IP Network is the telecommunications infrastructure necessary to provide the Voice Services that allows the interconnection of NET operations, as well as their interconnection with NGN Network. It is composed of, among others, routers, switches,
firewalls and optical fibers, antennas, transmission equipment and optical reception by radio or another transportation means. 

(b) NGN Network is telecommunications infrastructure required to provide telephony, and therefore, necessary to provide the Voice Services. The NGN Network is composed of, among others, softswitch, media gateways, provisioning servers,
signaling gateways, announcement servers, record keeping servers, operations systems and management of Network elements. 

3.5.5 The Parties shall specify by common agreement referring to the Voice Services requirements, the technical standards of IP Network, NGN Network, HFC Network, CMTS and DHCP servers supporting Voice Services, as well as eMTA. It is agreed that
the technical standards shall support the most updated versions of Packetcable and SIP, when required. 

3.5.5.1 The Parties shall maintain updated the elements mentioned above supporting the Voice Services. 

3.6 Concerning Logistics and Supplies: 

3.6.1 NET shall be responsible for: 

- Safekeeping and conservation of eMTA upon transportation destined to or derived from end customers premises; and 

- Carrying out the withdrawal of eMTA under the conditions agreed upon between the Parties in MPPO. 

3.6.2 EMBRATEL shall be responsible for: 

- Bearing the full costs of eMTA in amounts sufficient to properly answering the Estimates of Demand; 

- Managing the eMTA inventory; 

- Maintaining stockroom at places adjacent to NET distribution centers, ensuring the tax regular standing; 

- Ensuring the appropriate supply of eMTA; 

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- Maintaining, at any time, a minimum inventory of eMTA equivalent to the supply of thirty (30)
days of installations, as per Estimate of Demand; 

- Selecting suppliers of eMTA according to the technical specifications defined by common agreement between the Parties; and 

- Executing the eMTA equipment maintenance services. 

 3.7 Concerning Information Technology: 

 3.7.1 NET shall be responsible for:

- Managing the phone numbers of STFC or, where applicable, of SCM, and the IP numbers received from EMBRATEL;

- Managing and maintaining its sales support systems, service support and support to the installation of Voice Services; 

- Managing and controlling the exchange of files related to sales, alterations and cancellations of Voice Services; 

- Managing
the requests of changes necessary to the development of Voice Services; 

- Requiring to EMBRATEL changes in the systems when necessary to provide Voice Services; 

- Maintaining the systems that support the provision of Voice Services; 

- Making available, operating, maintaining and retrieving, according to SLA IT the following systems and environments necessary to provide Voice Services, which may be accessed by EMBRATEL according to the need of Voice Services operation and by
means of agreement between the Parties:

•  Provisioning systems; 

•  Sales systems; 

•  Service systems; 

•  Service support systems; 

•  Complaints registration systems; 

•  Work Force Systems; and 

•  Retrieval
Systems. 

- Carrying out alterations of configuration or interventions in the systems supporting the Voice Services and having impact on EMBRATEL systems only by means of previous authorization of EMBRATEL; under the penalty of bearing the costs
associated with the alterations deemed necessary in EMBRATEL systems. 

3.7.2 EMBRATEL shall be responsible for: 

- Making available, operating, maintaining and retrieving, according to SLA IT, the following systems and environments necessary to provide Voice Services, which may be accessed by NET according to the need of Voice Services operation and by means
of agreement between the Parties: 

•  NGN Network provisioning systems; 

•  IP Network provisioning systems; 

•  Operation and retrieval systems; 

•  Environment to exchange pre-configuration files; 

•  Measurement and billing
support systems; 

•  Billing systems; 

•  Collection systems; and 

•  Support tools and record systems. 

- Developing and implementing the modifications of systems required to implement new products and to provide Voice Services specified by NET, pursuant to this Agreement, and in compliance with SLA IT rules; 

8

- Carrying out alterations of configuration or interventions in the systems that support Voice Services and impacting on NET systems only by means of previous authorization of NET, under the penalty of bearing the costs related to the alterations
  deemed necessary at NET systems; 

  - Linking the offers to the provisioning codes defined by the Parties and used by their support systems to call center and sales; 

  - Defining, informing and ensuring to NET the compliance with terms for the
  development of modifications in its various systems necessary to provide the Voice Services; 

  - Ensuring the technical support to the various systems necessary to provide the Voice Services; and 

  - Carrying out, whenever necessary, training and upgrade of systems used by employees and representatives of NET, pursuant to SLA IT. 

 3.8. Concerning Billing and Collection: 

 3.8.1 NET shall be responsible for: 

- Printing and posting the Voice Service bills, according to the requirements and procedures agreed upon between the Parties and as provided for in the applicable Service Level Agreement which composes the Exhibit IV hereof (“SLA Billing”); 

- Carrying out the collection activities of Voice Services customers, according to the requirements and procedures agreed upon between the Parties; 

- Setting forth, jointly with EMBRATEL, the Voice Services billing and collection policies and
procedures; and 

- Informing to EMBRATEL, within twenty-four (24) hours, about the problems involving printing or postage of Voice Service bills; and 

- Observing the Voice Services collection policies attributed thereto, agreed upon between the
Parties. 

3.8.2 EMBRATEL shall be responsible for: 

- Provisioning the billing platforms to the extent that installations are confirmed; 

- Billing and invoicing the Voice Services customers; 

- Forwarding to NET the information that shall be included in the Voice Services statement of collection, invoices and trade bills, including the joint billing of third parties; 

- Complying with the terms determined by ANATEL as to calls billing; 

- Observing the Voice Services collection policies attributed thereto and agreed upon between the Parties; 

- Observing the billing schedule in compliance with SLA Billing and in accordance with the layouts of collection documents agreed upon between the Parties; 

- Determining the taxes and contributions levying and deriving from Voice Services and providing all the payments to be set forth by laws; 

- Recording and billing all the calls made by Voice Services customers, as per their origin and destination,
hour or other parameters agreed upon between the Parties, according to the products, offers, price plans and packets previously defined and in compliance with the provision in item 3.8.3; 

- Carrying out all the interconnection traffic conciliation
activities, as well as the registration of interconnection revenues and expenses specifically associated with the Voice Services; 

- Being responsible for the third parties incoming and outgoing traffic interconnection revenues billing, related to
Voice Services and to account therefor; 

- Providing NET with the Voice Services billing assurance information, within no later than five (5) business days after the date of generation for each billing cycle, as defined by EMBRATEL, allowing to
identify the volume of billing not yet executed and to be executed; 

- Using NET as the single vehicle for billing and/or printing of all Voice Services collection documents, except for the issue of a copy, when this is requested by NET or in other cases according to the procedures agreed upon between the Parties; 

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-
  Immediately informing NET, but never no later than twelve (12) hours, as soon as it identifies an error or problem in its various billing systems that may interfere in the Voice Services customer service, equally informing the corrective actions and
  the contingencies for solution of the problem identified; 

  - Providing clarifications to NET, within forty-eight (48) hours of request, about the problems involving billing and collection; 

  - Ensuring the assertive billing by two (2) errors for one
  thousand (1,000) bills, according to the regulation; and 

  - Sending again billing files forwarded over the past sixty (60) days, upon NET’s request, within no later than forty-eight (48) hours after the request. 

 3.8.3 The billing and registration of Voice Services calls shall be provided by EMBRATEL as per procedures agreed upon between the Parties, inclusive referring to the treatment of frauds, observing the terms of prevailing regulation. 

 3.8.4 The collection of amounts referring to the payments made by end customers in consideration of Voice Services shall be provided by EMBRATEL in bank account exclusive for this purpose, observing the collection procedures and practices jointly
  defined by the Parties. NET shall have access to the inflow records and further information related to said bill. The Parties shall endeavor their best efforts to jointly migrate to the co-billing system of their products and services.

4. Estimate of Demand 

4.1 The Parties shall conduct studies and projections for the provision of Voice Services and shall define within day five (5) of each month, the Estimate of Demand for the six (6) months following the items listed below, by location: 

•  Amount of lines to be activated (STFC numbers); 

•  Amount of customers; 

•  Amount of PUC; and 

•  Amount of IP numbers. 

4.1.1 The alteration in the Estimate of Demand for the three (3) first months as of the date of this alteration is made by the Parties shall not require the Parties to meet the exceeding demand as to their respective commitments to supply equipment,
numbering and infrastructure resources. 

4.2 No Estimate of Demand shall exist applicable to the first quarter of exploration of Voice Services. 

5. Sales Targets 

5.1 The Parties shall jointly define the periodicity and the amount of sales targets, inclusive by city. 

6. Fees 

6.1 The prices of Telecommunication Services and Other Services shall be determined according to the rules below and shall be jointly limited to the fees calculated according to item 6.1.4 below: 

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(i) The gross monthly price of Telecommunication Services, excluding the activation fee by end customer provided for in item 6.2, shall be the amount determined taking into account: (i) the number of new Voice Service customers; and (ii) the market
prices; and 

 (ii) The gross monthly price of Other Services shall be the amount corresponding to the costs effectively incurred by NET for the execution of their obligations corresponding thereto, accrued of a fee margin of five per cent (5%). 

 6.1.1 These are the following criteria to calculate Income that shall be the basis of the monthly fees related to the provision of Telecommunication Services and other Services as per item 6.1.4 below: 

 6.1.1.1 Out of the full amount collected by EMBRATEL to pay for the Voice Services (including, but not limited to, subscription revenues; local calls, fixed-fixed and fixed-mobile; domestic and international calls using CSP 21, fixed-fixed and
  fixed-mobile; from PUC of EMBRATEL etc.), EMBRATEL shall deduct: (i) the interconnections costs (understood as the balance between interconnection revenues and expenses effectively incurred by EMBRATEL in its relationship with other operators, as a
  result of Voice Service calls, considering the item 6.1.1.3 below, as well as interconnection revenues and expenses, purpose of item 6.1.1.2 below) and (ii) taxes and contributions that, directly or indirectly are due (or to fall due) as a result of
  provision of Voice Services, reaching the Income (the "Income"). 

 6.1.1.2 For the purposes of calculation of balance between interconnection revenues and expenses pursuant to previous item, that equivalent to one TU-RL shall be recorded as interconnection revenues, determined according to the prevailing network
  number rules, associated with: (i) domestic long calls made via CSP 21 or to non-geographic number traded by EMBRATEL, involving number managed by NET and charged out of the partnership for the exploration of the Voice Services; and (ii) international long-distance calls, forwarded by EMBRATEL ending in Voice Services numbers managed by NET and charged abroad. Likewise, that equivalent to one TU-RL shall be recorded as interconnection expenses, determined according to prevailing
regulation, associated with calls charged in Voice Services numbers managed by NET and ending in other numbers of EMBRATEL, except for the calls destined to NET "4004", which shall be all excluded from accounting. 

6.1.1.3 For the calculation of fixed local interconnection, EMBRATEL shall record as interconnection revenue or expense, the net amount effectively paid or received as a result of traffic of Voice Services numbers, managed by NET, in its
relationship with EMBRATEL with other operators, considering the total traffic of its local services. This net amount shall be the difference between: (1) the amount to be received or paid by EMBRATEL to the other operators not taking into account
the traffic corresponding to the Voice Service calls and (ii) the amount to be received or paid considering this traffic. 

6.1.2 Until Income is financially positive, the amount informed by EMBRATEL shall be based on the estimate of collection deriving from the Voice Services, referring to the accrual month. 

6.1.3 When Income is financially positive, according to the calculation determined in item 6.1.1 and subitems, this shall be the calculation basis for payment to NET for services rendered, subject-matter hereof. 

6.1.4 The Income shall be divided between the Parties, and the portion to be paid by EMBRATEL to NET, shall include all the taxes and contributions owed by it in view of the receipt of said installment pursuant to the laws prevailing at that time,
so that both Parties receive the same net amount. In this regard, EMBRATEL shall pay to NET the portion of Income determined according to the following formula: 

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MN = Income/(2 –1/100) 

 Where: 

MN – Amount to be paid by EMBRATEL to NET; and 

I – Sum of tax rates levying on the portion received by NET. 

 6.2 In addition to the fees for the Telecommunications Services as provided for in previous item, a fee per end customer to which Voice Services are activated shall be due by EMBRATEL to NET, which shall be calculated as per rule set forth in
Exhibit VIII hereto. 

 6.2.1 EMBRATEL shall be exempted from paying the activation fee whenever and while the number of activated end customers is lower than the amount of activation fees then already paid by EMBRATEL to NET. Notwithstanding such exemption, NET shall not
provide any refund of these payments. 

 6.3 Each Party shall bear the costs, expenses, charges and taxes corresponding to the execution of respective activities and obligations according to the terms and conditions of this Clause and this Agreement. 

 7. Payment 

 7.1 EMBRATEL shall inform NET, within day 15 of the month subsequent to the accrual month for the provision of Other Services and the Telecommunication Services, and the first accrual month was March 2006, the Income determined in accordance with
6.1.1 of Clause Six above. 

 7.2 EMBRATEL shall monthly forward to NET a file containing the following information: (i) the total amount billed against Voice Service customers and (ii) overdue amounts, specifying the maturity dates. 

 7.2.1 After ninety (90) days as of the execution date of this Agreement, the file mentioned above shall specify the information also per location of Voice Services collection. 

7.3 EMBRATEL shall monthly make available to NET interconnection traffic reports with other operators involving Voice Service calls that compose the interconnection revenues and expenses, purpose of item 6.1.1.1 and 6.1.1.2 above, in format and
breakdown similar to that used in formal statements (DETRAF), as per model composing the Exhibit VII hereof. NET may request, should it deem necessary and by means of previous written communication to EMBRATEL, a file containing the calls composing
the amounts shown. 

7.4 Each one of NET’s companies shall issue the respective tax documents related to the rendering of Telecommunication Services or Other Services, and in relation to the Telecommunication Services, apart from the tax documents related to the
provision of shared and two-way accesses, separate and specific tax documents shall be issued, for the activation fee per end customer provided for in item 6.2 above. 

7.5 NET shall be make available to EMBRATEL, jointly with tax documents and bills according to item 7.6 below, a report of end customers activation made from the first to the last day of each calendar month for the purposes of collecting the
activation fee provided for in item 6.2 above. 

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7.6 The tax documents and bills shall be delivered to EMBRATEL at the address specified in the Introduction hereof, at least, ten (10) days in advance in relation to the date of their respective maturities. 

 7.6.1 Should the delivery term for tax documents and invoices be not complied with by NET, the maturity of invoices shall be extended for the days of delay of said delivery. 

 8. SLA and Penalties 

 8.1 The Parties undertake to abide by Service Level Agreements and Call Center Performance Indicators - SLA set forth in the Exhibits hereto, as well as respective penalties eventually defined by the Parties. 

 8.1.1 The Parties may define other SLA deemed necessary to better explore the Voice Services.

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9. Reports 

 9.1 NET shall be responsible for providing EMBRATEL, within periodicity and format to be agreed upon between the Parties: (i) with managerial reports in order to monitor the performance of business performance indicators; and (ii) a performance
  report on the parameters defined in SLA provided for herein. 

 9.1.1 The Parties shall jointly define the content and form of the reports mentioned above, taking into account the systems development costs eventually necessary in order to meet their requirements. 

 9.2 EMBRATEL shall be responsible for providing NET, within periodicity and format to be agreed upon between the parties: (i) with traffic report related to Voice Services; (ii) interconnection revenues and expenses report (by type of traffic and
  city); and (iii) performance report on parameters defined in SLA provided for herein. 

 10. Effectiveness 

 10.1 This Agreement shall be effective for ten (10) years as of March 2006, and automatic renewal for equal and successive periods of one (1) year, unless otherwise expressed by NET or by EMBRATEL, at least, ninety (90) days in advance of the date
  estimated for expiration. 

 11. Extinguishment 

 11.1 This Agreement may be extinguished by: 

 11.1.1 Lapse of its effectiveness term; 

 11.1.2 Termination by means of previous out-of-court notice, in the following assumptions: 

 11.1.2.1 Insolvency, in-court or out-of-court reorganization, adjudication of bankruptcy or in-court or out-of-court winding-up of any of the Parties; 

 11.1.2.2 Failure to comply, should the infringing Party, notified in writing is notified by the other Party, at least, sixty (60) days in advance, to remedy the non-compliance, and fails to comply with it within such term, or within another term
  agreed upon in writing between the Parties. In this assumption, the aggrieved Party may elect the total or partial termination, in relation only to the defaulting party hereto, as well as the aggrieved Party may also elect for not terminating this
  Agreement; and 

 11.1.2.3 Partial or total dissolution, deriving from mutual interest of the Parties, according to written formalization. 

 11.2 Under any assumption of termination of this Agreement a transition period shall be ensured, of at least, six (6) months after the expiration date. 

 11.2.1 In Addition, the Parties shall remain committed to the execution of their activities and the mutual assistance after the transition period, during a term to be defined thereby. 

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12. Responsibilities 

 12.1 Without prejudice to other provisions provided for herein, only direct damages shall be indemnified, provided that if evidenced, caused by either of the Parties to the other, whether by itself, or by its employees, agents or third parties
  engaged for the performance of this Agreement, expressly excluding any indemnification or responsibility of the Parties for loss of profit, indirect damages and business failures, unless in the assumptions provided for in items 12.1.1 and 12.2
  below. 

 12.1.1 A Party shall be responsible against the other, pursuant to article 402 of the Brazilian Civil Code (Law 10,406, as of January 11, 2002), for any action or omission provenly malicious against the obligations provided for herein. 

 12.2 Whenever the failure to comply with an obligation set forth herein causes damages to the end customer of EMBRATEL or NET, the Party causing the damages shall indemnify the damaged end customer and where applicable, the other Party, maintaining
  it indemnified for any and all burden, charge and/or expense supported as a result of failure to comply, whether if required under the administrative or legal authority. 

 13. Review 

 13.1 The Parties in bona fide undertake to jointly assess, where applicable, to amend the terms and conditions hereof whenever either of the Parties alleges on a grounded basis the economic-financial imbalance. 

 14. Assignment 

 14.1 The Parties may only assign or transfer this Agreement or any benefits, interests, rights and obligations deriving therefrom, in whole or in part to third parties, by means of previous consent and in writing by the other Party. 

 14.1.1 Notwithstanding the provision in the caput, the Parties may assign, in whole or partially their obligations and rights under this Agreement to any of its Affiliated Companies, by means of notice to the other Party. 

 14.1.2 The expression affiliated company means any and all corporation, company, joint venture or entity that, directly or indirectly owns the control, it is subsidiary or is under common control of either of the Parties. 

 15. Confidentiality 

 15.1 The Parties, by themselves and by their employees, representatives and/or sub-contractors involved in the execution hereof undertake to maintain the absolute confidentiality and secrecy on this Agreement and any and all Confidential
  Information, being expressly forbidden to assign, transfer, disclose on any account, under any form or means, unless for express and written consent from the other Parties, this Agreement and/or Confidential Information, under the penalty of
  answering for losses and damages that directly and provenly caused as a result of failure to comply with such prohibition. 

 15.2 For the purposes of this Clause, Confidential Information means any information, data, document, layout, product, planned product, service or planned services, sub-contractor, customer, potential customer, breakdown of customers calls, computer
  software, program, process, method, know how, invention, idea, marketing promotion, discovery, current or planned activity, research, development or another material to which the Parties have access by virtue of this Agreement, any information or
  knowledge referring to the businesses or commercial secrecies from either of the Parties, commercial and technical information and other related to the operation and business development of the Parties conveyed by a Party to the other: (a) graphically, in writing or any other form that may be read or decoded by machinery and computers; (b) orally; and (e) other forms incorporation or showing the content of information containing the words
"CONFIDENTIAL" or "SECRET" or any other similar expressions. 

15

15.3 Nevertheless, Confidential Information is not that: (a) known by the receiver Party without any restriction as to its confidentiality upon receipt, or independently developed by the receiver Party; (b) obtained from third party not subject to
any confidentiality obligation and without infringement of confidentiality by the receiver Party; (c) is of public domain when received, or reaches the public domain without guilty of the receiver Party; (d) is disclosed without restrictions to
either of the Parties by any third party not subject to any confidentiality obligation; or (e) is disclosed as an act of law or regulation, court decision or act from appropriate governmental authority. In this case, the receiver Party shall
immediately notify in writing the disclosing Party prior to disclosure and limit it to that strictly necessary in order to meet the requirement. 

 16. General Provisions 

 16.1 The Parties shall provide each other all the information and elements necessary to support eventual regulatory, administrative, in-court and/or out-of-court procedural progress, deemed necessary in view of or in relation to the performance of
  this Agreement. 

 16.2 The Parties ensure that the signatories hereof are their appropriate legal representatives to assume obligations on their behalf and effectively represent their interests. 

 16.3 Unless for specific provisions, the Parties shall make their communications, notices and understandings in writing, except for urgent situations, in this case the oral understandings shall be confirmed in writing within seventy-two (72)
  subsequent hours, by their representatives designated below: 

 NET representative: Rodrigo Duelos 

 EMBRATEL representative: Flávia Ribeiro Francisco 

 16.4 The Parties shall appoint in writing and shall maintain updated their respective contacts in order follow-up the issues related hereto. 

 16.5 The Parties indicate the addresses mentioned in the Introduction hereof to receive notices and deliver correspondences. 

 16.6 The failure to exercise by either of the Parties of rights or legal powers entitled thereto as a result of this Agreement, or the forbearance with delay in the compliance with obligations from the other Party shall not affect those rights or
  legal powers, which may be exercised at any time, at the exclusive discretion of the interested party, not altering the conditions set forth herein. 

 16.7 Any alteration in the conditions of this Agreement shall be formalized by means of addendum to be entered into between the Parties. 

16

16.8 Should any provision hereof be considered contrary to the Law by appropriate Court, said provision shall be applied to the highest extent allowed, and other provisions remaining in full force and effect. 

 16.9 Act of God or force majeure shall exclude responsibility, as set forth in sole paragraph of article 393 of the Brazilian Civil Code. 

 16.9.1 The Party to be affected by act of God or force majeure shall notify the other party, immediately and in writing, about the extent of fact and the estimated term during which it shall not be able to comply with or by which it shall be compelled to delay the compliance with its obligations resulting herefrom. 

 16.9.2 The Party affected by act of God or force majeure shall endeavor its best efforts to cease their effects. 

 16.9.3 The effects of act of God or force majeure disappearing, the affected Party shall immediately and in writing notify the other party to acknowledge this fact, restoring the original status. 

 16.9.4 Should the occurrence of act of God or force majeure only partially damage the execution of obligations arising herefrom by either of the Parties, this Party shall comply with the obligations that were not affected by the occurrence of act of
  God or force majeure, to the highest extent as possible. 

 16.10 No provision hereof shall be construed to aim, directly or indirectly, the granting of any right, appeal or claim, under any allegation to third parties. 

 16.11 In all matters related hereto, neither of the Parties may declare it has authority to assume or to create any obligation, whether express or implied, on behalf of the other Party, except for the provisions expressly provided for herein. 

 16.12 The Parties are companies fully independent between themselves, so that no provision hereof may be construed to mean the creation of any employment relationship between the Parties, as well as among the employees of one Party and the other.

 16.13 The Parties acknowledge that brands and logotypes of the other Party represent the most valuable assets, and they undertake to observe them and protect them, abstaining from using them directly or indirectly with any purpose rather than those
  expressly authorized by this Agreement. 

 16.14 The following exhibits initialed by the Parties are an integral part hereof, as if they were transcribed therein: EXHBIT I NET Operations, EXHIBIT II — SLA IT, EXHIBIT III - SLA Technical, EXHIBIT IV — SLA Billing, EXHIBIT V —
  SLA Call Center, EXHIBIT VI —Rules to define products, offers, price plans and use of brand, EXHIBIT VII — Template of Interconnection Report and EXHIBIT VIII— Rule to calculate the activation fee. 

 16.15 This Agreement represents the full understanding between the Parties in relation to its subject-matter, and shall prevail over any other past understandings on its subject-matter. 

 16.16 This Agreement binds the Parties and successors, on any account, in all its rights and obligations. 

17

17. Dissolution of heads of agreement (MOU) 

 17.1 The Parties resolve to dissolve and replace the Heads of Agreement with this Agreement entered into between themselves on February 8, 2006. 

 18. Jurisdiction 

 18.1 The Parties elect the central court of Rio de Janeiro — RJ, to the detriment of any other no matter how privileged it may be. 

 

 Rio de Janeiro, December 7,2006. 

 EMBRATEL 

NET 

Witnesses: 

 1-/s/_________________

Name: 

RG: 

 2-/s/_________________

Name: 

RG: 

18

EXHIBIT I 

NET Operations 

 NET Anápolis LTDA., headquartered in the city of Anápolis, state of Goiás, at Rua Secai, 179, Corporate Taxpayer’s ID (CNPJ) 33.584.277/0001 - 68; 

  NET Arapongas LTDA., headquartered in the city of Arapongas,
  state of Paraná, at Rua Marabú, 542, Corporate Taxpayer’s ID (CNPJ) 81.897.118/0001 -66; 

  NET Bauru LTDA., headquartered in the city of Bauru, state of São Paulo, at Avenida Duque de Caxias, 4-66, Corporate
  Taxpayer’s ID (CNPJ) 64.083.561/0001 - 84; 

  NET Belo Horizonte LTDA., headquartered in the city of Belo Horizonte, state of Minas Gerais, at Avenida, 515, Corporate Taxpayer’ss ID (CNPJ) 38.738.308/0001 -01; 

  NET Brasília
    LTDA., headquartered in the city of Brasília, Federal District, at SIG/SuI Quadra 01, 725, Corporate Taxpayer’s ID (CNPJ) 26.499.392/0001 -79; 

    NET Campinas Ltda., headquartered in the city of Campinas, state of São
  Paulo, at Rua Jasmim, 610, Corporate Taxpayer’s ID (CNPJ/MF) 61.698.510/0001 -79: 

  NET Campo Grande LTDA., headquartered in the city of Campo Grande, state of Mato Grosso do Sul, at Avenida Afonso Pena, 3.004, Corporate
  Taxpayer’s ID (CNPJ) 24.615.96510001 -57; 

  NET Curitiba LTDA., headquartered in the city of Curitiba, state of Paraná, at Rua Mamoré, 340, Mercês, Corporate Taxpayer’s ID (CNPJ) 82.342.83310001 -03; 

  NET
    Florianópolis LTDA., headquartered in the city of Florianópolis, state of Santa Catarina, at Av. Rio Branco, 808, Corporate Taxpayer’s ID (CNPJ/MF) 72.461.072/0001 -47; 

    NET Franca LTDA. Headquartered in the city of
  Franca, state of São Paulo, at Rua Carmem Irene Batista, 2.837, Corporate Taxpayer’s ID (CNPJ) 60.348.41410001 -38; 

  NET Goiânia LTDA., headquartered in the city of Goiânia, state of Goiás, at Rua 15, Quadra
  j-15, Lote 08, n 970 – Setor Marista, Corporate Taxpayer’s ID (CNPJ) 33.659.475/0001 - 43; 

  NET Indaiatuba LTDA., headquartered in the city of Indaiatuba, state of São Paulo, at Rua 11 de Junho, 1.849/1.853, Corporate
  Taxpayer’s ID (CNPJ) 58.393.695/0001 - 07; 

  NET Joinville LTDA., headquartered in the city of Joinville, state of Santa Catarina, at Av. Procópio Gomes, 419, Corporate Taxpayer’s ID (CNPJ) 85.271.898/0001 -95; 

  NET Londrina
    LTDA., headquartered in the city of Londrina, state of Paraná, at Rua Santos, 737, Corporate Taxpayer’s ID (CNPJ) 80.924.459/0001 -10; 

    NET Maringá LTDA., headquartered in the city of Maringá, state of
  Paraná, at Av. Nóbrega, 494, Corporate Taxpayer’s ID (CNPJ) 81.712.416/0001 -34; 

  NET Piracicaba LTDA., headquartered in the city of Piracicaba, state of São Paulo, at Avenida Independência, 3552, Corporate
  Taxpayer’s ID (CNPJ) 64.592.116/0001 - 40; 

  NET Ribeirão Preto S/A, headquartered in the city of Ribeirão Preto, state of São Paulo, at Rua Antônio Fernandes Figueiroa, 1.675, Lagoinha, Corporate Taxpayer’s
  ID (CNPJ) 64.807.456/000140; 

  NET Rio S/A, headquartered in the city of Rio de Janeiro, state of Rio de Janeiro, at Rua Vilhena de Morais, 380, B. 02, sala 201 e 3o andar, Corporate Taxpayer’s ID (CNPJ) 28.029.775/0001 -09; 

  NET
    São Carlos S/A, headquartered in the city of São Carlos, state of São Paulo, at Avenida Dr. Carlos Botelho, 1.986, Corporate Taxpayer’s ID (CNPJ) 57.724.759/0001 - 34; 

    NET São José do Rio Preto
      LTDA., headquartered in the city of São José do Rio Preto, state of São Paulo, at Rua Lafaiete Spinoia de Castre, 1.922, Corporate Taxpayer’s ID (CNPJ) 69.082.83210001 - 09; 

      NET São Paulo LTDA., headquartered in the city of São Paulo, state of São Paulo, at Rua Verbo Divino, 1356, térreo, blocos 1 e 2, Chácara Santo Antônio, Corporate Taxpayer’s ID (CNPJ) 65.697.161/0001 -21 and its branch NET
        SANTOS, headquartered at Rua General Francisco Glicério, 647, Santos/SP, Corporate Taxpayer’s ID (CNPJ) 65.697.161/0019 -50; 

        NET Sorocaba LTDA., headquartered in the city of Sorocaba, state of São Paulo, at Av.
  Antônio Carlos Comitre, 1074, esquina com Rua Pedro Mofina, 81, Corporate Taxpayer’s ID (CNPJ) 64.637.903/0001 -60; 

19

NET Sul Comunicações LTDA., headquartered in the city of Porto Alegre, state of Rio Grande do Sul, at Rua Silveiro, 1111, Corporate Taxpayer’s ID (CNPJ) 73.676.51210001 -46; 

  Televisão a Cabo Criciúma LTDA., headquartered in the city of Criciúma, state of Santa Catarina, at Rua Joaquim Nabuco, 458, Corporate Taxpayer’s ID (CNPJ) 80.168.321/0001 - 39; 

  TV Cabo e Comunicações de
  Jundiaí S/A, headquartered in the city of Jundiai, state of São Paulo, at Rua Professor João Batista Curado, 151, Corporate Taxpayer’s ID (CNPJ) 62.059.084/0001 - 96;

  DR - Empresa de Distribuição e Recepção de TV LTDA., headquartered in the city of Porto Alegre, state of Rio Grande do Sul, at Rua Silveiro, 1111, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0001 -96, the
  branches of which are listed below and integrate this present Agreement: 

  •  NET Bagé, located at Rua do Acampamento, 2550, in the city of Bagé, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ)
  93.088.342/0026 -44; 

  •  NET Bento Gonçalves, located at Rua Domingos Paganelli, 100, in the city of Bento Gonçalves, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0026 -44; 

  •  NET Blumenau, located at Avenida Brasil, 60, in the city of Blumenau, state of Santa Catarina, Corporate Taxpayer’s ID (CNPJ) 93.088,342/0031 -01; 

  •  NET Capão da Canoa, located at Rua Andira, 625, in the
  city of Capão da Canoa, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0040 -00; 

  •  NET Caxias do Sul, located at Rua Os 18 do Forte, 1236, in the city of Caxias do Sul, state of Rio Grande do
  Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342J0033 -73; 

  •  NET Chapecó located at Rua Nereu Ramos, 237 E, sala 01, Galeria Zandonai, in the city of Chapecó, state of Santa Catarina, Corporate
  Taxpayer’s ID (CNPJ)  93.088.342/0012 -49; 

  •  NET Cruz Alta, located at Rua Pinheiro Machado, 1157, in the city of Cruz Alta, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0035 -35; 

  •  NET Erechim, located at Rua Soledade, 277, in the city of Erechim, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0009 -43; 

  •  NET Farroupilha, located at Rua Tiradentes, 607, in the city
  of Farroupilha, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0039 -69; 

  •  NET Lajeado, located at Avenida 7 de setembro, 184, sala 101, in the city of Lajeado, state of Rio Grande do Sul, Corporate
  Taxpayer’s ID (CNPJ) 93.088.342/0042 -64; 

  •  NET Novo Hamburgo, located at Rua Gomes Portinho, 619, in the city of Novo Hamburgo, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0036 -16;
  

  •  NET Passo Fundo, located at Rua Princesa Isabel s/n, in the city of Passo Fundo, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088342/001087; 

  •  NET Pelotas, located at Rua
  Hipólito José da Costa, 155, in the city of Pelotas, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.082.342/0007 -81; 

  •  NET Rio Grande, located at Rua Dom Bosco, 991, in the city of Rio
  Grande, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0015 -91; 

  •  NET Santa Cruz do Sul, located at Rua Marechal Deodoro, 1008, in the city of Santa Cruz do Sul, state of Rio Grande do Sul,
  Corporate Taxpayer’s ID (CNPJ) 93.088.342/0017 -53; 

  •  NET Santa Maria, located at Rua Visconde de Pelotas, 2122, in the city of Santa Maria, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088.342/0037
  -05; 

  •  NET Uruguaiana, located at Rua Domingos de Almeida, 1.727, in the city of Uruguaiana, state of Rio Grande do Sul, Corporate Taxpayer’s ID (CNPJ) 93.088342/0034 -54. 

20

EXHIBIT II 

SLA IT 

 - Access 

o Each one of the Parties shall make available access to all the systems deemed necessary, at the locations and amounts defined by common agreement. 

 - Support 

o The operation of EMBRATEL systems shall be available twenty-four (24) hours/day, seven (7) days/week. 

 - Modifications 

  o The modifications of system shall observe the methodologies defined by each Party and shall be detailed in IT MPPO. Each Party undertakes to inform to the other party, within five (5) business days, about the terms and conditions
  for the modifications requested. 

 - Maintenance 

o The scheduled stoppage and maintenance of all the systems required to provide Voice Services shall be previously agreed upon and authorized by the Parties. 

 - Training 

  o The trainings of systems shall take place whenever: 

  •  New versions are made available; 

  •  Modifications are introduced. 

  o Trainings shall take place with minimum periodicity of 6 months. 

  o Trainings shall take place at
  location to be defined by the Parties, at least, fifteen (15) days in advance. 

 - Exchange of Files 

  o The exchange of files shall be made every two (2) hours, and first sending at 8:00 am, from NET to EBT, and the first sending from EBT to NET, at 10:00 am. 

  o 14 files shall be exchanged during the day (7 sendings NET to EBT at
  8:00 am, 10:00 am, 12:00 pm, 2:00 pm, 4:00 pm, 6:00 pm, 8:00 pm and 7 sendings EBT to NET at 10:00 am, 12:00 pm, 2:00 pm, 4:00 pm, 6:00 pm, 8:00 pm and 10:00 pm). 

  o The return of a record sent by NET shall occur within no later than twelve (12)
  hours, as of the date the record is sent, under the penalty of deducting the sales target established. 

  o The flow of exchange of files shall occur according to processes and rules jointly implemented by the Parties. Alterations in the process shall
  be requested by either Party to the other and previously approved between the Parties. 

  o The Macro Flow shall be observed in the exchange of files, as explained below: 

	NET	 	EBT
	Send file for pre-configuration

    
		Receipt and treatment of files
	Receipt of pre-configured files 

    
	Return of pre-configured files
	Authorization to install phone at subscriber 

    
	 

21

	Send confirmation of installation 		Receipt of confirmation of installation and 

    billing starts 

 - Errors Support 

 The errors support shall be better detailed by common agreement between the Parties in MPPO IT. Notwithstanding EMBRATEL shall: 

 a) Make available support at EMBRATEL or through suppliers as follows: 

 a.1) Provide access to the interface of EMBRATEL operation area to report problems via phone 21-2132-4646, observing the call open process for support by EMBRATEL, with the following terms and resolution indicators: 

									
	 
	 	 	Mechanisms of Calculation	 	Target	 	Resolution	 	 Frequency
	 	 	 	 	 	 	Term	 	 
	 Service Level	 	 	 	 	 	 	 	 
	Indicator	 	 	 	 	 	 	 	 
	 
	 
	Calls solved 	 	% of problems 	 	Priority A -97% 	 	06 hours 	 	Monthly 
	 	 	 	 	              A - 03 % 	 	09 hours 	 	 
	 	 	solved on time in relation to the 

    total problems solved by priority 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Priority B - 96% 	 	08 hours 	 	 
	 	 	 	 	              B-04% 	 	12 hours 	 	 
	 
	 	 	 	 	Priority C - 94% 	 	12 hours 	 	 
	 	 	 	 	              C - 06% 	 	18 hours 	 	 
	 
	 	 	 	 	Priority D - 91% 	 	24 hours 	 	 
	 	 	 	 	              D- 9% 	 	36 hours 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 
	 
	Average deviation 

  of problems solution	 	 	 	Priority A- 10% 	 	 	 	 
	 	 	 	Priority B - 12% 	 	 	 	 
	 	 	% of average deviation in

  relation to the solution term 

  established for the total of 

  problems solved beyond term by 

  priority 	 	Priority C - 13% 	 	 	 	 
	 	 	 	Priority D- 15%	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Monthly 
	 

22

a.2) The Priorities mentioned in table above observe the following description: 

	Priority	Description
	A 	The system to ALL operators of a location IS NOT AVAILABLE. 
	B 	The system is affected or it is not available for a certain group of operators. 
	C 	The system to a specific operator is affected, causing difficulties in its regular work. 
	D	The system to a specific operator is affected, but there are alternatives available to execute the work 

 a.3) Problems rated as Priority A, occurred (i) during nighttime, between 8:00 pm and 8:00 am; (II) during weekends, and; (iii) during holidays shall be treated as urgent according to the item below. 

 - The problems classified as "Priorities B, C and D", occurred during the period between 8:00 am and 8:00 pm, from Monday to Friday, shall be answered observing the limit of eight (8) hours of work/day of scheduled shifts. 

23

EXHIBIT III

SLA Technical

 The technical requirements for the maintenance and operation of NGN, IP and HFC Networks shall be detailed in MPPO to be agreed upon between the Parties. 

 Functional parameters to be observed by EMBRATEL at its IP Network: 

 •  Round-trip-delay lower than 75ms 

•  Jitter lower than 30ms 

  •  Loss of packets lower than 1%

  •  99.9% Voice Service availability

 Functional parameters to be observed by NET at its IP Network: 

 •  Round-trip-delay lower than 75ms

•  Jitter lower than 30ms.

•  Loss of packets lower than 2%

•  99.9% Voice Service availability

 Jitter measurement methodology the Voice Service availability shall be defined by common agreement in MPPO. 

 Both EMBRATEL and NET undertake to endeavor their best efforts so that all the occurrences of failures at NGN, IP Networks of both Parties and HFC to be solved within no later than twenty-four (24) hours. 

 The measuring parameter for interconnection route with telephony networks shall not exceed one per cent (1%). 

 Total congestion rate shall not exceed four per cent (4%). 

 The team of EMBRATEL and NET, devoted to services and support for identification, diagnosis and retrieval of failures, shall operate 24 hours, 7 days a week, 365 days per year. 

 Each Party shall make available to the other party access to their network management systems, allowing the assessment of Voice Services quality. The magnitude of visibility of these accesses shall be defined in MPPO. 

 Each Party shall make available to the other Party a Massive Failure Report at its Network, within no later than twenty-four (24) hours after failure is solved. The report shall contain: (i) the cause for the failure; (ii) the number of end
  customers affected; and (iii) the procedure adopted for resolution. 

 As to Numbers: 

 •  The telephone numbers that will feed the systems, as well as the definitions of local areas, shall be in accordance with the Switched Fixed Telephone Service Number Plan - STK, regulated by ANATEL; 

  •  The phone numbers made available by
  EMBRATEL for the Voice Service shall comprise the Local Areas of the cities defined by the Parties in the exploration of Voice Services; 

24

•  The sending of numbers for sale by EMBRATEL shall occur on a monthly basis, up to the fifteenth
  (15th) day of actual month, in order to meet the Estimate of Demand of the subsequent month, as defined in the Estimate of Demand;

  •  The sending of numbers on an emergency basis, upon request of NET, shall be provided by Embratel,
  observing the same process of periodic sending of numbers, with terms to be defined in MPPO. 

 In order to understand the expressions used herein, the following definitions shall be used: 

- Massive Failure: this is the total non-availability of equipment, such as CMTS, routers and other elements of NGN and IP networks, affecting the Voice Services. 

- Round-Trip Delay: this is the time that an IP packet takes to go from one point to another point of the network, by an issuer, until receipt and the sending of a packet confirming receiver to issuer. 

- Jitter: this is the average value of all incremental delay differences, from start of measurement to current packet. 

- Loss of packets: this is the percentage of packets lost in relation to the total number of packets sent during connection. 

- Local Areas: the number of local area associated with a certain location as established by the STFC services number plan. 

25

EXHIBIT IV 

SLA Billing 

 EMBRATEL shall send the items of Voice Services statement on a monthly basis, as per the following schedule: 

	NET Maturities

    (day/month)	EBT cycle	EBT Maturity

    (day/month)	Maximum date for EBT file

    (day/month)
	5/m*	1	5/m	11/m-1**
	8/m	2	8/m	16/m-1
	10/m	3	10/m	20/m-1
	15/m	4	15/m	26/m-1
	20/m	5	20/m	30/m-1
	25/m	6	25/m	5/m

 *m=maturity month for NET and EMBRATEL invoices. 

* m-l=month preceding the maturity of NET and EMBRATEL invoices. 

 NET shall be subject, as of the expiration of term to be defined as estimated below, to the following quality parameters in the execution of activities related to the billing and collection of Voice Services: 

			
	 
	KPI – EXECUTIVE 	 	SLA 
	 
	 
	Customer receives invoice 	 	 
	 	 	95% of customers shall receive invoice, at least, 5 days in advance of maturity* 
	 
	1.b Invoices returned due error in address 	 	to Lower or equal to one per cent (1%)
	 

 * subject to Embratel sending the items of Voice Service statement within terms of the first table of Exhibit IV 

			
	KPI – OPERATIONAL 	               SLA 
	 
	1 . Control information made available to EMBRATEL per cycle	 	99% of correct operational information, available every cycle no later than seven days after the respective cycle 
	 
	2. Fiscal CD and Backup 	 	100% of CDs recorded containing all batches up to D+5 (D = last day of production of cycle 4 - EBT)
	 

 NET shall inform within fifteen (15) days as of the execution date hereof, within which term it shall start to meet the quality parameters set forth above, as well as eventual budgets in order to make feasible the provision of information for
  EMBRATEL’s assessment. 

26

EXHIBIT V

SLA Call Center

 1 -EMBRATEL shall observe the following operation parameters: 

					
	 
	 	 	 	 	Target to answer calls transferred
	Area	 	 	 	 
	 	 	Definition of SLA	 	 
	 
	Embratel Call Center	 	Service level – daily and weighted 	 	95% of calls answered at = < 10" for calls transferred by Net call center 
	 
	Embratel Call Center	 	Call Abandonment Average Rate after 10" (individual answer) –daily and weighted 	 	= < 4% of total calls 
	 

							
	 
	Area 	 	Activity 	 	Description 	 	Time to execute the activity
	 	 	 	 	 	 
	 
	Embratel 

    Backoffice 	 	Send copy by means of paper of via Web 	 	Receive the call transferred or the  occurrence 

    generated at NET SMS  by NET Call Center 

    and send the copy of invoice at Embratel 

    systems by mail or email or make available 

    to  customer via Web and download the 

    occurrence at NET SMS 	 	95% within 24 consecutive

    hours and the balance

    within 48 consecutive 

    hours
	 
	 	 	Phone number changes 	 	Receive the file sent by NET IT, start the 

    process to change the phone number at 

    Embratel systems and record the information 

    at NET SMS. 	 	within 15 consecutive days
	 
	 	 	Collection address changes 	 	Receive the file sent by NET IT, start the 

    process to change the collection  address at 

    Embratel systems and  record the information 

    at NET SMS. 	 	within 7 consecutive days
	 
	 	 	Installation address changes	 	Receive the file sent by NET IT, start the 

    process to change the  installation address at 

    Embratel  systems and record the information  

    at NET SMS. 	 	within 7 consecutive days 
	 
	 	 	Maturity date changes 	 	Receive the file sent by NET IT, start the 

    process to change the maturity  date at 

    Embratel systems and  record the information 

    at NET SMS. 	 	within 7 consecutive days 
	 
	 	 	Terminal is deactivated	 	Receive the file sent by NET IT, start the 

    process to deactivate terminal at Embratel 

    systems and  record the information at NET 

    SMS. 	 	within 21 consecutive days 
	 
	 	 	Financial answers are recorded	 	Receive the call transferred from NET call

    center and record all the clarifications

    provided at NET SMS	 	 Immediately
	 

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	 	 	 	 	related to doubts on items billed 	 	 
	 
	 	 	Granting of loans, 

      reversals  and rebates, extension of 

    maturity andc ancellation of 

    invoice 	 	Receive the call transferred from Net call center,

    granting of loans, reversals or rebates derived 

    from Embratel systems or extend the maturity or 

    cancel the invoice and record all the measures 

    taken at NET SMS (whether or not applicable)	 	within 24 consecutive hours*
	 
	Embratel 

    NOC 	 	Technical Closing of 

    Complaint 	 	Receive the complaint opened at Embratel 

  system, execute the measures 

  necessary to retrieve voice service, 

  conduct the technical closing 

  at Embratel system. 	 	95% within 24 consecutive 

    hours and the balance 

    within no later than 48 

    Consecutive hours ** 
	 

 * As long as this does not rely on investigation from other areas and that amounts involved are within the representatives’ authority. 

 ** except for occurrences subject to intervention from other operators (for instance: opening of interconnection, center programming etc.) 

 2 – As of July 2006, NET shall observe the following quality indicators, as determined by Quality Targets General Plan- pay-TV (PGMQ); 

					
	Quality Indicator 	 	Target 	 	 
	 		 
	 04 — ICR — Index of correspondence answered	 	90% 	 	Method of Calculation 
	ICR= (TOTAL NUMBER OF CORRESPONDENCES ANSWERED ON TIME IN THE PERIOD) /(TOTAL NUMBER OF CORRESPONDENCES ANSWERED IN THE PERIOD) X 100

	 
	 05 — IAP — Index of Individual Service 	 	90% 	 	IAP= (NUMBER OF INDIVIDUAL SERVICES PROVIDED ON TIME IN THE PERIOD)/ (NUMBER OF INDIVIDUAL SERVICES PROVIDED IN THE COLLECTION PERIOD) X 100

	 
	 06 — ICC — Index of completed calls in  PMM 	 	80% 	 	ICC = (TOTAL NUMBER OF COMPLETED CALLS IN EACH PMM DURING THE COLLECTION PERIOD)/ (TOTAL NUMBER OF CALLS IN EACH PMM/ ) X 100

	 
	 07 — ILA — index of calls answered in  PMM within 10 SECONDS on the  measurement date defined by Anatel 	 	90% 	 	ILA = (TOTAL NUMBER OF CALLS    ANSWERED ON TIME AFTER    SELECTION (URA or PHONE OPERATOR) IN PMM)/ (TOTAL    NUMBER OF CALLS WITH    SELECTION (URA or PHONE OPERATOR) IN PMM DURING THE COLLECTION PERIOD) X 100 

	 

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* in other days Net shall maintain, at least, the levels required in Pay-TV PGMQ  

 3- The Parties shall endeavor joint efforts, as per tasks assigned thereto pursuant to the Agreement, in order to comply with the following quality indicators, as of July 2006: 

					
	Quality Indicator 	 	Target 	 	Method of Calculation 
	 
	 011 —IRS — Service Complaint Index	 	3% 	 	IRS= (TOTAL NUMBER OF COMPLAINTS RECEIVED IN THE PERIOD-COMPLAINTS ON THE PROGRAMMING CONTENT) / (TOTAL  NUMBER OF SUBSCRIBERS IN THE PERIOD)

	 
	 02 — IIS — Service Installation Index	 	90%	 	 
	 
	 03 — ICCo — Collection Interruption  Index	 	90%	 	ICCo= (TOTAL NUMBER OF COLLECTIONS INTERRUPTED ON TIME IN THE PERIOD) / (TOTAL NUMBER OF REQUESTS IN THE PERIOD) X100

	 
	 08 — IREDC —index of complaint due to error in collection document 	 	5% 

    (5 per 

    thousand)	 	IREDC= (TOTAL NUMBER OF ANSWERS RELATED TO ERROR IN COLLECTION DOCUMENT IN THE PERIOD / (TOTAL NUMBER OF COLLECTION DOCUMENTS MATURING IN THE PERIOD) X 1000 
	 
	09 — IITS —index of outages solved 	 	90% 	 	IITS= (NUMBER OF OUTAGES SOLVED WITHIN DETERMINED TIME) / (TOTAL NUMBER OF OUTAGES OF THE PERIOD) X 100 

	 
	10 — ISRA — Index of repairs request answered 	 	90%	 	ISRA= (TOTAL NUMBER OF REQUESTS OF  THE PERIOD ANSWERED ON TIME – NUMBER OF REQUESTS DERIVING FROM OUTAGES)/ (TOTAL NUMBER OF REPAIR REQUESTS RECEIVED) X 100 

	 

 3 – The Quality Indicators referred to in items 2 and 3 above have the following meaning: 

 01 - IRS – Service Complaint Index - Complaint: this is the act of requesting measures to the operators due to failure to comply with its legal or contractual obligations. 

 02 - IIS – Service Installation Index – Installation within 48 hours of the agreed term. It is worth mentioning that the agreed term refers to the date of scheduling and not to the date of sale. 

 03 - ICCo – Collection Interruption Index – Collection is interrupted within 24 hours and never exceeds 48 hours. 

 04 – ICR – Index of correspondence answered –These are the correspondences received at the addresses previously determined and disclosed by means of letter, fax and email within seven (7) days and never exceeding ten (10) days. 

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05 - IAP – Index of Individual Service – Service by ATP within 20 min never exceeding 30 min 

 06 - ICC – Index of completed calls in PMM - PMM (period of high traffic) from 9:00 am to 11:00 am and from 7:00 pm to 10:00 pm. 

Answer in PMM 80% of phone calls forwarded to the call center. (information made available by fixed-line operator assisting the call center) 

 07 - ILA – Index of calls answered in PMM - PPM (period of high traffic) from 9:00 am to 11:00 am and from 7:00 pm to 10:00 pm. 

Complete the call in PMM in 20 seconds after the selection (URA or phone operator) and 60-second maximum waiting in 95% of the cases. 

 08 - IREDC – index of complaint due to error in collection document – Errors are collections of amounts different from business negotiation, i.e., discounts due to promotion, renegotiation, loss of signal, etc, are not
  considered errors. 

 09 - HTS – Index of outages solved – Within 24 hours / never exceeding 48 hours (except for act of God or force majeure justified to Anatel within 72 hours). In the events of outage, due to act of God or force majeure exceeding 48
  hours, the operation shall publish in local newspaper of widespread circulation within standard to be defined. It shall also inform to the person in charge of the communication with Anatel about the occurrence and providing evidence, such as photos,
  etc. The documents (whether physical or digital documents) that worked as basis for the indexes informed shall be available during 24 months. 

 10 - ISRA Index of repair requests answered – Within 24 hours – or within term requested by subscriber/ never exceeding 48 hours. Technical visits that are not caused by external outage problems. External outages are: address in
  outage, massive degradation of image or derived from external network. 

 4 - NET shall inform EMBRATEL within fifteen (15) days as of the execution date hereof: which of the information below may be made available without additional investments being required: 

 costs and term necessary to provide other information required, furnishing the budget of these potential additional investments for EMBRATEL assessment. 

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	Indicator	 	Anatel Target 	 	NET Reports Information
	 
	ILA – index of calls

    answered 	 	 	 	Total of service-targeted calls (PABX)
	 
	Total of calls answered within 10 seconds 
	 
	Total of calls answered within 60 seconds 
	 
	Total of calls answered by URA after 60 seconds. Number received of repair requests via National Code 
	 
	IRS service complaint 

    index 	 	 	 	Total of repair requests received prior to the collection period still pending at the end of the collection period. 
	 
	Number of accesses operating at the end of collection period. 
	 
	ISRA index of repairs 

    request answered —

    residential user 	 	 	 	Total of repair requests answered within 48 hours after request via National Code. 
	 
	Total of repair requests answered within 24 hours after request. 
	 
	Total of repair requests received during the collection period. 
	 
	Total of repair requests received prior to the collection period and still pending at the end of collection period. 
	 
	Total of repair requests answered more than 48 hours after request. 
	Total repair requests answered within 8 hours after request via National Code 
	 

					
	ISRA index of repair

      request answered - 

    non-residential user 	 	 	 	Total of repair requests answered within 8 hours after request via National Code. 
	 
	Total repair requests answered within 24 hours after request. 
	 
	Total repair requests received during the collection period. 
	 
	Total of repair requests received prior to the collection period and still pending at the end of the collection period. 
	 
	Total repair requests answered more than 24 hours after request. 
	Total of requests received during collection period via National Code.
	 
	IIS index of residential

    service installation service	 	 	 	Total of requests received during the collection period via National Code.
	 
	Total of requests received prior to the collection period and still pending at the end of the collection period. 
	 
	Total of requests answered within 3 days 
	 
	Total of requests answered within 10 days 
	 
	Total of requests answered exceeding the term – higher than 10 days 
	 
	Total of requests not answered due to lack of coverage 
	 
	Total of requests not answered due to unjustified visit and new scheduling. 
	 
	Total of requests received during the collection period. 
	Total of requests received during the collection period via National Code
	 
	IIS index of non-residential 

    serice installation 	 	  	 	Total of requests received during the collection period via National Code
	 
	Total of requests received prior to the collection period and still pending at the end of the collection period. 
	 
	Total of requests answered within 24 hours 
	 
	Total of requests answered within 72 hours 
	 
	Total of requests answered exceeding the term – above 72 hours 
	 
	Total of requests not answered due to lack of coverage 
	 
	Total of requests not answered due to unjustified visit and new scheduling. 
	 
	Total of requests received during the collection period. 
	Total number of bills issued during the month. 
	 
	Number of Error

    Complaints in Bills by

    1000 	 	  	 	Total number of bills issued during the month. 
	 
	Number of complaints of bills received. 
	 
	Number of bills challenged with credit refunded. 
	 
	Number of bills challenged recorded during the collection period. 
	 

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EXHIBIT VI

 Rules to define Products, Offers, Price Plans and Use of Brand 

 1.1 The Parties establish that Voice Services shall be identified, disclosed and traded under the brands EMBRATEL and NET, always used on an equanimous basis when Voice Services are provided together with NET broadband service. When provided
  together with NET broadband and pay-TV services, the brands designating each of the Parties shall be used proportionally to the number of services provided by each one. 

 1.2 The designation of Voice Services and products related thereto shall be made according to category attributes (for instance, “cable phone"), as to be proposed by NET and validated by EMBRATEL, binding upon EMBRATEL and NET brands, observing
  the rule of item 1.1 above and the rules provided for in respective handbooks for the use of NET and EMBRATEL brands. 

 1.3 The Parties shall jointly define the technical features of Voice Services, their logotype and applications, as well as a handbook for the use of Voice Services logotype. 

 1.4 In order to ensure that NET obligations are performed on an independent basis, preserving the operational flexibility required to EMBRATEL explore the Voice Services for launch of products, offers, price plans, packets and other elements
  associated therewith, the Parties may by common agreement establish rules, including procedures and terms to be observed by NET and EMBRATEL in the preparation, recommendation and validation thereof. 

 1.5 The Voice Services may be provided to end customers with the following package of Services, Utilities and Convenience ("PUC"): "waiting call", "follow me", "three-way conference", "call blockage" provided for in the regulation and "caller
  identification". 

 1.5.1 The Parties shall jointly define a schedule for the implementation of the following PUC: "number relocation", "detailed account", "choice of number”, golden number and “mailbox ", 

 1.5.2 The implementation of any alteration in specifications or characteristics of PUC indicated in 1.5 above shall be subject to previous consent between the Parties, inclusive on the schedule of development. 

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EXHIBIT VIII 

 Rule to calculate activation fee 

 The amount of activation fee by end customer referred to in item 6.2 of Clause 6, shall be equal: 

 (1) to the amount corresponding to fifty per cent (50%) of the acquisition cost of each CMTS apportioned by the number of customers supported thereby, defined according to the NET measurement practices to be justified by the best engineering
  practices, accrued of taxes pursuant to the applicable laws; 

 added, where applicable, by means of evidence by NET, 

 (2) to the amount equivalent to the share assigned to EMBRATEL related to the costs corresponding to additional investments in HFC Network installed, according to the following proportion: (i) 5/6 for NET and 1/6 for EMBRATEL, in the
  event of new buildings cabling; (ii) 3/4 for NET and 1/4 for EMBRATEL, in the event of Nodes breakage; and (iii) as per apportionment to be defined at the time jointly between the Parties, in other situations, such as: cabling of new
  geographic areas and for utilization of TERAYON areas for DOCSIS. 

33

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