Document:

Amend No. 1 to Electric Power Purchase and Sale Agreement

 Exhibit 4.19 
  
 Chesf 
  
 Companhia Hidro Elétrica do São Francisco 
  
 ELECTRIC POWER PURCHASE AND SALE AGREEMENT 
  
 CHESF 
  
 X 
  
 BRASKEM S.A. 
  
 BASIC PETROCHEMICALS UNIT - UNIB

  
 ADDENDUM TO CCVE - 012/2004 

 FIRST TERM OF ADDENDUM TO THE ELECTRIC POWER PURCHASE AND SALE AGREEMENT CELEBRATED BETWEEN COMPANHIA HIDRO
ELÉTRICA DO SÃO FRANCISCO - CHESF AND BRASKEM S.A., ON OCTOBER 20, 2004. 
  
 By this instrument, the PARTIES 
  
 COMPANHIA HIDRO ELÉTRICA DO SÃO FRANCISCO — CHESF, a public services concessionaire engaged in the supply of electric power, headquartered in the city of Recife, in the state of Pernambuco, at Rua Delmiro Gouveia,
n° 333, Bairro do Bongi, enrolled before the CNPJ of the Ministry of Finance under no. 33.541.368/0001-16, and enrolled before the state tax office under no. 18.1.001.0005584-6, hereinafter simply referred to as “CHESF” and
represented herein pursuant its Social Bylaws by its Directors, described and undersigned at the end of the agreement; and 
  
 BRASKEM S.A., with headquarters in the city of Camaçari, in the state of Bahia, at Rua Eteno, n° 1561, Petrochemical Complex, enrolled before the CNPJ
of the Ministry of Finance under no. 42.150.391/0001-70, and enrolled before the state tax office under no. 01.027.389-NO, hereinafter simply referred to as “CONSUMER” and represented herein pursuant is Social Bylaws by its
Directors who have been described at the end and who have signed this agreement; 
  
 WHEREAS 
  

	 	•	 	pursuant art. 25 of Law no. 10.848 dated March 15, 2004, the PARTIES have decided to modify the power supply agreement purporting to have it comply with the new sectorial
regulations regarding the commercialization of electric power, replacing it by several electric power purchase and sale agreements and the use of the transmission and connection system, 

  

	 	•	 	as result, the PARTIES have signed the Electric Power Purchase and Sale Agreement on October 20, 2004, referred to herein as AGREEMENT; 

  

	 	•	 	and pursuant art. 25 of Law no. 10.848, dated March 15, 2004, the parties being interested in amending said AGREEMENT; 

  
 have decided to celebrate the 1st. Term of Addendum to the AGREEMENT pursuant the
following clauses and conditions: 
  
 FIRST CLAUSE – This Term of
Addendum (“ADDENDUM”) purports to extend the term of the AGREEMENT and, for all contractual purposes, to establish: 
  
 a) the required amounts for the year 2010; 

 b) the limits regarding the revision of requirements for year 2010, 
  
 SECOND CLAUSE — the AGREEMENT being amended herein shall have its
term extended to remain in effect until December 31, 2010, being extinguished at that time upon full accomplishment of all obligations arising therein; 
  
 THIRD CLAUSE — The ELECTRIC POWER RESERVE CHART appended to Annex I of the AGREEMENT being amended herein by the ELECTRIC POWER RESERVE CHART listed on
Annex I to this Term of Addendum; 
  
 FOURTH CLAUSE — The chart
showing the limits for the variation regarding the annual revision of requirements, found in sub-item (c) of the Third Paragraph of Clause 5 of said AGREEEMENT being amended herein is replaced by the table infra. 
  

					
	 Year of
 Supply

	 	 Lower Limit
 %

	 	 Upper Limit
 %

	 2006
	 	83	 	120
	 2007
	 	70	 	120
	 2008
	 	70	 	120
	 2009
	 	70	 	120
	 2010
	 	65	 	125

 FIFTH CLAUSE — All the remaining terms envisaged in the AGREEMENT remain unchanged, and they shall
remain throughout their term of effectiveness. 
  
 And, in witness whereof, the
PARTIES have celebrated this TERM OF ADDENDUM in two (2) counterparts, each considered to be an original, in the presence of the two undersigned witnesses. 
  
 Recife, October 20, 2004. 
  

					
	Companhia Hidro Elétrica do São Francisco – CHESF
			
	  	 	 	 	  
	 Dilton da Conti Oliveira
	 	 	 	 Mozart Bandeira Arnaud

	 Director-President
	 	 	 	 Operations Director

	 CPF: 018.205.404-72
	 	 	 	 CPF: 137.474.444-15

  

					
	CONSUMER: BRASKEM S.A. – UNIB-BA	 	 	 	 
			
	  	 	 	 	  
	 Bernardo Afonso de Almeida
	 	 	 	 Ricardo de Maya Gomes Simões

	 Gradin
	 	 	 	 Power Manager/Attorney in Fact

	 Director
	 	 	 	 CPF: 382.605.654-04

	 CPF: 316.183.245-00
	 	 	 	 

  

					
	Witnesses:	 	 	 	 
			
	  	 	 	 	  
	 Manoel Carnauba Cortez
	 	 	 	 José Carlos de Miranda Farias

	 CPF: 209.049.084-53
	 	 	 	 CPF: 090.244-174-49

 ELECTRIC POWER RESERVE CHART - ANNEX I 
  
 Annex to the Term of Addendum No. 01 of the Electric Power Reserve and Supply Agreement,
celebrated between CHESF and BRASKEM - UNIB-BA, on 10/20/2004. 
  

									
	 Period of Supply

	 	 Period of the year

	 	 ELECTRIC POWER RESERVE
 (amounts in kW)

	 item

	 	 Month/year

	 	 	 Peak

	 	 Off peak

	 1
	 	Nov/2004	 	dry	 	75,000	 	135,000
	 2
	 	Dec/2004	 	wet	 	84,000	 	135,000
	 3
	 	Jan to Apr/2005	 	wet	 	63,000	 	138,000
	 4
	 	May to Nov/2005	 	dry	 	63,000	 	138,000
	 5
	 	Dec /2005	 	wet	 	63,000	 	138,000
	 6
	 	Jan to Apr/2006	 	wet	 	83,000	 	150,000
	 7
	 	May to Nov/2006	 	dry	 	83,000	 	150,000
	 8
	 	Dec/2006	 	wet	 	83,000	 	150,000
	 9
	 	Jan to Apr/2007	 	wet	 	85,000	 	150,000
	 10
	 	May to Nov/2007	 	dry	 	85,000	 	150,000
	 11
	 	Dec/2007	 	wet	 	85,000	 	150,000
	 12
	 	Jan to Apr/2008	 	wet	 	85,000	 	150,000
	 13
	 	May to Nov/2008	 	dry	 	85,000	 	150,000
	 14
	 	Dec/2008	 	wet	 	85,000	 	150,000
	 15
	 	Jan to Apr/2009	 	wet	 	85,000	 	150,000
	 16
	 	May to Nov/2009	 	dry	 	85,000	 	150,000
	 17
	 	Dec/2009	 	wet	 	85,000	 	150,000
	 18
	 	Jan to Apr/2010	 	wet	 	85,000	 	150,000
	 19
	 	May to Nov/2010	 	dry	 	184,000	 	150,000
	 20
	 	Dec/2010	 	wet	 	184,000	 	150,000Electric Power Purchase and Sale Agreement dated 10/20/2004

 Exhibit 4.20 
  
 Elec 
  
 Chesf 
  
 Companhia Hidro Elétrica do São Francisco 
  
 ELECTRIC POWER PURCHASE AND SALE AGREEMENT 
  
 CHESF 
  
 X 
  
 BRASKEM S.A. 
  
 CHLORO SODA UNIT – UCS - AL

  
 CCVE-012/2004 
  

 ELECTRIC POWER PURCHASE AND SALE AGREEMENT CELEBRATED BETWEEN COMPANHIA HIDRO ELÉTRICA DO
SÃO FRANCISCO - CHESF AND BRASKEM S.A. 
  
 By this deed, the
Parties 
  
 COMPANHIA HIDRO ELÉTRICA DO SÃO FRANCISCO
— CHESF, a public services concessionaire engaged in the supply of electric power, headquartered in the city of Recife, in the state of Pernambuco, at Rua Delmiro Gouveia, n° 333, Bairro do Bongi, enrolled before the CNPJ of the
Ministry of Finance under no. 33.541.368/0001-16, and enrolled before the state tax office under no. 18.1.001.0005584-6, hereinafter simply referred to as “CHESF” and represented herein pursuant its Social Bylaws by its Directors,
described and undersigned at the end of the agreement; and 
  
 BRASKEM
S.A.-UCS-AL, with headquarters in the city of Maceió, in the state of Alagoas, at Av. Assis Chateaubriand, n° 5260, Bairro Portal da Barra, enrolled before the CNPJ of the Ministry of Finance under no. 42.150.391/0022-03, and enrolled
before the state tax office under no. 240.071.115-AL, hereinafter referred to simply as “CONSUMER”, represented herein pursuant its Social Bylaws by its Directors described and undersigned at the end of the agreement. 
  
 WHEREAS 
  

	 	•	 	on June 02, 1998, the PARTIES celebrated the Electric Power Reserve Agreement for the supply of electric power by CHESF to the CONSUMER’s industrial
installations, located within the Municipality of Maceió, in the state of Alagoas, under a voltage of 230 kV, and governed by the hourly-seasonal tariff structure; 

  

	 	•	 	pursuant art. 25 of Law no. 10.848, dated March 15, 2004, the PARTIES are interested in amending this agreement intending to make it comply with the new sectorial regulations
regarding the sale of electric power, 

  

	 	•	 	§ 2 of art. 54 of Decree no. 5.163, dated July 30, 2004 has determined that all amendments to electric power supply agreements must be first replaced by separate agreements
drawn for the purchase and sale of electric power, and for the use of transmission and connecting systems; 

  

	 	•	 	the Electric Power Purchase and Sale agreement must be celebrated with the concessionaire of the public power generating service; the Use of the Transmission System Agreement must
be celebrated with ONS, since the consumer service is provided by the Basic Powergrid installations, and the Connection Agreement must be executed with the power transmission concessionaire at the point of access 

  
 the PARTIES have therefore decided to celebrate this Electric Power Purchase and Sale
Agreement (“AGREEMENT”) in replacement to the Electric Power Supply and Reserve Agreement, celebrated on June 02, 1998, pursuant the hourly-seasonal tariff structure, and pursuant the following clauses and conditions: 
  
 CHAPTER I 
  
 TERMINOLOGY AND ANNEXES 
  
 CLAUSE 1 – Purporting to obtain a perfect understanding and precise definition of the technical terminology employed in this AGREEMENT together with its
annexes, the concept referring to the following words and expressions is agreed forthwith between the PARTIES: 
  
 (a) “ANEEL”; Agência Nacional de Energia Elétrica (National Electric Power Agency), a regulating agency responsible for the control of
electric power supply, empowered by Law no. 9.427 dated December 26, 1996, and regulated by Decree no. 2.335, dated December 06, 1997; 
  
 (b) “COMPETENT AUTHORITY”: any government agency empowered to interfere in this AGREEMENT or in the activities executed by the PARTIES;

  
 (c) “BILLING CYCLE”: a time interval taking place between the date
the power consumption measuring meters are read for billing purposes, as defined by CHESF, measured as of the previous month until the day of measurement on the month of reference; 
  
 (d) “CONNECTION TO THE TRANSMISSION SYSTEM AGREEMENT” agreement celebrated between the users and the power transmission
concessionaires, which establishes the terms and conditions to connect the users to the Basic Power grid; 
  
 (e) “TRANSMISSION SYSTEM USE AGREEMENT”: an agreement that establishes the terms and conditions for the use of the Basic Power grid by a user, including the transmission services provided by the power
transmission concessionaires, by means of the control and supervision of ONS, and the providing of the coordination and 

  

 
operation control services pertaining to the interconnected services by ONS, pursuant a model approved by ANEEL; 
  
 (f) “ELECTRIC POWER”: is the amount of electric power that is being supplied over a
given period of time, expressed in Watts/hour (Wh) or by its multiples; 
  
 (g)
“PEAK HOURS”: a Period made up of three (3) consecutive daily hours, encompassed in the interval between 18:00 and 21:00 hours, excepting Saturdays, Sundays and national holidays. The daily time interval of three consecutive hours may be
redefined within the time interval between 17:00 and 22:00 hours, agreed between CHESF and the CONSUMER, taking into account the characteristics of the latter’s electric system; 
  
 (h) “OFF-PEAK HOURS”: a period made up of two daily consecutive hours, which are a
complement to those that have been defined by the OFF-PEAK HOURS; 
  
 (i)
“IGPM”: Índice Geral de Preços de Mercado (General Market Price Index) computed by Fundação Getúlio Vargas; 
  
 (j) “AUCTION”: means the auction or auctions pertaining to the purchase of electric power deriving from the existing power
generation systems, pursuant Law 10.848, dated March 15, 2004, and by Decree 5.163, dated July 30, 2004. 
  
 (k) “SERVICE OF NOTICE REGARDING CONTROVERSIES”; is a formal document intended to inform the PARTIES regarding any controversies arising from the provisions of this AGREEMENT and/or pertaining to it;

  
 (l) “ONS”: means the National Electric Power System Operator
(Operador Nacional do Sistema Elétrico), created by Law no. 9.648/98 and regulated by Decree no. 5.081/04; 
  
 (m) “DRY PERIOD”: a period made up of seven consecutive months encompassing the power supply derived from the consumption measurements taken between May and
November of each year; 
  
 (n) “WET PERIOD”: a period made up of five
consecutive months, encompassing the power supply derived from the consumption readings made between December of a given year and April of the following year; 
  

(o) “POINT OF DELIVERY”: means the point of connection starting at CHESF’s transmitting installations and ending at the electric installations of
the CONSUMER’s INDUSTRIAL UNIT; 
  

 (p) “POWER”: electric power referring to a unit of time expressed in kilowatts (kW); 
  
 (q) “POWER RESERVE CHART”: pursuant Annex I; 
  
 (r) “ELECTRIC POWER RESERVE”: demand for power contracted, referred chronologically
to a given period of time; 
  
 (s) “HOURLY-SEASONABLE ELEMENTS”: are
made up of the composition of the dry and wet periods together with the Peak and Off-peak Hours; 
  
 (t) “INTERCONNECTED SYSTEM”: means the generation, transmission and distribution installations, connected to the Basic Transmission Gridwork, including their respective installations; 
  
 (u) “INDUSTRIAL UNIT”: the CONSUMER’s industrial installations located
in Maceió-AL. 
  
 Sole Paragraph – All the afore defined terms,
when used in the singular within the context of this AGREEMENT and its annexes shall also mean their plural form and vice versa. 
  
 CLAUSE 2 – ANNEX I – ELECTRIC POWER RESERVE CHART is an appurtenant to this AGREEMENT. 
  
 CHAPTER II 
  
 OBJECT AND TERM OF EFFECTIVENESS 
  
 CLAUSE 3 – The purpose of this AGREEMENT is to establish the terms and
conditions pertaining to the RESERVE OF ELECTRIC POWER, corresponding to the commercialization of said Electric Power, to be made available by CHESF to the CONSUMER at the POINT OF DELIVERY, pursuant the amounts and periods that have
been listed on the chart found in ANNEX I, and over which shall apply the tariffs to be determined by ANEEL, pursuant the hourly-seasonal tariff structure. 
  
 CLAUSE 4 – This AGREEMENT shall go into effect on November 30, 2004, and it shall remain in effect for a period of five years, or until the effective
accomplishment of all contractual obligations, including the payment of the Invoice/Electric Power Bill referring to the last month of delivery of electric power. 
  
 Sole Paragraph – The effectiveness and the execution of the obligations and commitments governed by this AGREEMENT shall
be entailed to the signing of the instruments infra, to which the PARTIES pledge forthwith: 
  

	 	a)	CONNECTION TO THE TRANSMISSION SYSTEM AGREEMENT, between the CONSUMER and the involved TRANSMISSION AGENT; 

  

	 	b)	CONNECTION TO THE TRANSMISSION SYSTEM AGREEMENT, between CHESF and the involved TRANSMISSION AGENT; 

  

	 	c)	TRANSMISSION SYSTEM USE AGREEMENT by the CONSUMER; 

  

	 	d)	TRANSMISSION SYSTEM USE AGREEMENT by CHESF. 

  
 CHAPTER III 
  
 ELECTRIC POWER RESERVE 
  
 CLAUSE 5 – For the purposes envisaged in Clause 3, and pursuant the provisions in Clauses 4, 6 and 7 of this AGREEMENT, CHESF pledges to insure the availability of ELECTRIC POWER to cater to the
CONSUMER’s needs during the periods and in the amounts established in ANNEX I. 
  
 First Paragraph – For all the purposes of this AGREEMENT, the dates for the start of the effectiveness of the electric power reservations shall be counted for each month as of 00:00 hours of the
first day of the supply periods taken into account in ANNEX I. 
  
 Second
Paragraph – Every year as of 2005, and at least sixty (60) days in advance of the AUCTION, the CONSUMER shall inform CHESF in writing as of its power needs to be effective as of January of the following years, considering
that: 
  

	 	(a)	CHESF shall inform the date of the AUCTION at least thirty days in advance of the date the CONSUMER is supposed to inform its own estimate.

  

	 	(b)	in case CHESF fails to effect said communication, the date of September 30 shall prevail for the CONSUMER to present said forecast. 

  

	 	(c)	in case the CONSUMER fails to make its electric power consumption reserve within the timeframe determined in this paragraph, CHESF shall for all purposes use
the Electric Power Consumption Reservation Chart in effect. 

  

	 	(d)	CHESF pledges to validate the forecast dealt with in this paragraph, provided the provisions of the Third Paragraph of this clause are complied with.

  

 Third Paragraph – The Power Consumption Reserve Chart dealt with in ANNEX I shall be elaborated and defined
during each year electric power is supplied, pursuant the following rules: 
  

	 	(a)	Up until October 20, 2004, the CONSUMER shall present its consumption estimate for each hourly-seasonal segment, estimating a supply period for the next subsequent
five (5) years. 

  

	 	(b)	The power requirements to be informed pursuant sub-item (a) must comply with the following terms: 

  

	 	I.	The power requirements for the year of 2005 shall be at least eighty percent of the last amount informed until 2003 by the CONSUMER, said amount having been validated
by CHESF 

  

	 	II.	The power requirements for 2006 shall be at least 85% of the power requirements defined for 2005, pursuant previous condition I. 

  

	 	III.	The power requirements for 2007 to 2009 shall be defined at will by the CONSUMER. 

  

	 	(c)	The annual estimates established in the Second Paragraph of this Clause shall remain within the limits of variation expressed in the table infra, and they shall refer to the
power requirements established in sub-items (a) and (b) above: 

  

					
	 Year of
 supply

	 	 Lower limit
 %

	 	 Upper limit
 %

	 2006
	 	83	 	120
	 2007
	 	70	 	120
	 2008
	 	70	 	120
	 2009
	 	70	 	120

  
 Fourth Paragraph – Any
power load increases or reductions requested by the CONSUMER outside of the terms and conditions envisaged in the third paragraph of this Clause shall be dealt with as exceptions, and they shall be subject to CHESF’s agreement, to
be expressed in writing up to 60 days before the request is made by the CONSUMER. 
  
 Fifth Paragraph – For information purposes only, up until June 30 of each year the CONSUMER shall inform in writing its power requirements estimate for the following five years, starting in January
of the subsequent year, in order to enable CHESF to convey said information to the electric power consumption agencies. 
  
 CHAPTER IV 
  
 OPERATIONAL, TECHNICAL AND COMMERCIAL CHARACTERISTICS 
  
 CLAUSE 6 – The PARTIES shall submit themselves to the POWERGRID PROCEDURES established by ONS and ratified by ANEEL. 
  

 CLAUSE 7 – The operational conditions pertaining to the physical delivery of electric power and the
requirements regarding the purchase and sale that are the object of this AGREEMENT shall be ruled by the POWERGRID PROCEDURES, and they shall be governed by ANEEL. 
  
 Sole Paragraph – In the event of disturbances or power shutdowns of the TRANSMISSION SYSTEM, CHESF, intending to maintain
the entitlements of the CONSUMER, and at the latter’s discretion, may represent said CONSUMER before ONS in order to define and to determine the responsibilities arising thereof. 
  
 CLAUSE 8 – The ELECTRIC POWER which is the object of this agreement shall be
delivered at the POINT OF DELIVERY in tri-phasic, alternate current, at 60 Hertz frequencies, and under nominal voltage of 230 kV in between phases. 
  
 CLAUSE 9 – The measurement of active and reactive ELECTRIC POWER shall be accomplished by CHESF by means of appropriate measuring devices, of a class
and accuracy equal to or less than 1% (one percent). Any measurements accomplished using measuring devices that may show differences of over 1% (one percent) shall imply in a mandatory correction of the previous bills that may be not precise, up
until a maximum of the last 6 previous bills, the respective differences found being either dunned from or credited to the CONSUMER. 
  
 First Paragraph – If it so wishes, the CONSUMER may monitor the measurements, as well as check their respective calculations. 
  
 Second Paragraph – The measurement device for the consumption, to be used by
CHESF’s in its billing procedure, shall be installed at the sub-station belonging to the CONSUMER and it shall be kept under the latter’s responsibility. 
  
 Third Paragraph – It is up to the CONSUMER to design and to install under its own responsibility the corrective equipment
which it may need to improve the power consumption factor. 
  
 CLAUSE 10
– The CONSUMER shall pay CHESF monthly the tariff in effect for each megawatt-hour for each BILLING CYCLE, abiding by the hourly-seasonal tariff structure defined and published by ANEEL. 
  
 CLAUSE 11 – The electric power tariffs shall be determined by ANEEL. 

 

 CHAPTER V 
  

REGARDING BILLING AND PAYMENT OF THE BILL 
  
 CLAUSE 12 – The consumption readings and the bills for the power supply contracted herein shall be accomplished every thirty (30) day intervals. The due dates
for each monthly Invoice/Power Bill shall be expressed therein, abiding by the minimum time frame envisaged in the regulations. 
  
 CLAUSE 13 – The power requirements equivalent to the Power Requirement Reservations envisaged in the ANNEX to this AGREEMENT shall contain the minimum billing
amounts, even if no corresponding consumption took place during the supply periods listed on the POWER CONSUMPTION RESERVATION CHART defined in the aforementioned CLAUSE. 
  
 Sole Paragraph – Any changes that may eventually be agreed to between the parties in the amounts and on the dates defined for
the start of the effectiveness of the power requirements contracted herein shall be considered as being the minimum amounts for billing purposes. 
  
 CLAUSE 14 – The hourly-seasonal power consumption for each segment, billed monthly to the CONSUMER shall be billed for whatever amount is greater: 

 
 1- The greatest consumption, determined through a measurement accomplished within a 15-
(fifteen) minute interval for each hourly-seasonal segment, during the monthly supply period corresponding to the billing; 
  
 2- The power consumption contracted for the supply period. 
  
 First Paragraph – The paid up portion of the consumption, referring to each hourly-seasonal segment which is greater than the amount of the power requirements
reserved by the CONSUMER for the same segment, shall be applied to the tariff in excess of the current tariff. If the excess demand portion is within the tolerance limit established by the Granting Authority, which is currently up to five (5%) of
the reserved power requirements, the excess tariff shall not apply, there being used the respective hourly-seasonal tariff instead. 
  
 Second Paragraph – The billing corresponding to the reactive electric power and the reactive power requirements, established to exist by means of appropriate
measurements, and which is in excess of the amounts allowed by the reference electric power factor established by the Granting Authority shall be computed by using the criteria made available by the laws in effect. 
  

 CLAUSE 15 – Billing shall be accomplished on a monthly basis according to the periods, amounts and tariffs
referred to in this AGREEMENT, and it shall be the object of a sole Invoice/Electric Power Bill, pursuant the provisions in Clause 16. 
  
 Sole Paragraph – The billable electric power consumption for each CONTRACTUAL MONTH shall correspond to the ELECTRIC POWER measured as having been used.

  
 CLAUSE 16 – The Invoice/Electric Power Bill shall be presented by
CHESF to the CONSUMER at least five (5) business days prior to its maturity, which shall be stated on the bill. 
  
 First Paragraph – In case the limit due date does not fall on a business day in effect in Maceió, in the state of Alagoas, the payment may be made on
the subsequent first business day. 
  
 Second Paragraph – On the first
business day subsequent to the month of supply, CHESF shall send, and the CUSTOMER shall accept a copy of the original collection document either through fax or through another safe electronic means as agreed between the
PARTIES, with the purpose to render the payment process faster, and CHESF pledges to forward the initial collection document until 12:00 hours of the maturity date of the Invoice/Electric Power Bill. 
  
 Third Paragraph – In case the original collection document is presented at any
time after the due date established in the previous paragraph for any reasons that cannot be blamed on the CONSUMER, the due date of the Invoice/Electric Power Bill affected by the delay, and pertaining to said collection document shall be
automatically extended by the same number of days as those of the delays. 
  
 Fourth Paragraph – The payment shall be deposited into a bank account kept at a banking institution defined by CHESF, which may also select to issue bills of acceptance which shall be retired by means of bank payments.

  
 CLAUSE 17 – If there are any discrepancies between the amounts
listed on the Invoice/Electric Power Bill, the CONSUMER may request CHESF to revise the controversial portion of the bill, and to make the appropriate payment until the due date of the full amount. 
  
 First Paragraph – In case the discrepancy derives from a mistake in billing, and
the request is found to hold water, CHESF pledges to issue a new Invoice/Electric Power Bill until one (1) days after receiving a request for revision. 
  

 Second Paragraph – The provisions in Clause 19 shall apply for any amounts being contested that may be later
agreed on, or which may get defined as being the amounts due, except for the fine. Interest and adjustment for inflation shall be computed as of the due date of the parcel being contested and until the date of its settlement, excluding the day of
settlement itself. 
  
 Third Paragraph – If the discrepancies
regarding the amounts billed remain unresolved for a period in excess of thirty (30) days, the PARTIES shall proceed as determined in the Clauses of Chapter IX. 
  
 CHAPTER VI 
  
 REGARDING PAYMENT ARREARS AND ITS CONSEQUENCES 
  
 CLAUSE 18 – Arrears are said to exist when the CONSUMER fails to settle any amounts due on their respective due dates. 
  
 CLAUSE 19 – In case of arrears by the CONSUMER to effect the payment of
any Invoice/Electric Power Bill issued predicated on this AGREEMENT, the amounts due shall be adjusted for inflation pro rata die according to the variation of the IGPM index determined by Fundação Getúlio Vargas, or by
another index that may come to replace it in case the former is extinguished, or by any index that may be agreed on between the PARTIES, and the following arrears increases shall be levied over the amounts thus adjusted: 
  
 a) a fine of 2 % (two percent) levied over the amount of the liability; 
  
 b) arrears interest of one (1%) percent per month computed pro rata die over the amount of
the liability during the period encompassed between the date of the arrears and the effective date of payment, excluding the latter date. 
  
 First Paragraph – The arrears increases envisaged in the preceeding sub-items shall be levied over the amounts in arrears, and they shall be adjusted for
inflation by the pro rata die variation of the IGPM, or, in case the latter is extinguished, by another index having a similar function that may come to replace, and which has been previously agreed on between the PARTIES. The arrears
interest referred to by this paragraph shall be computed predicated on the variation of the IGPM index belated one month in regards to the due date of the Invoice/Electric Power Bill. 
  
 Second Paragraph – For the effects of the adjustment for inflation referred to in the previous paragraph, in case the payment in
arrears is made up to or before thirty (30) days, any negative variation of the IGPM shall be considered as being null. 
  

 CHAPTER VI 
  

ACTS OF GOD, OF FORCE MAJEURE OR RATIONING 
  
 CLAUSE 20 – In case one of the PARTIES fails to accomplish any of its obligations as consequence of an Act of God or of Force Majeure, as disposed by
art. 393 of the Brazilian Civil Code, this AGREEMENT shall remain in effect, albeit the PARTY affected by the event shall not be held accountable for the consequences arising from the non accomplishment of its obligation during the
term of duration of the event, and prorated to its effects, and the counteraction of the affected PARTY shall be held in abeyance for a like period. 
  
 Sole Paragraph – the PARTY affected by any event that may be characterized as being an Act of God or an event of Force Majeure shall inform the other
of the circumstances surrounding the event in no later than in five days, explaining the nature of the event, the time expected to accomplish the obligation being affected, and all other pertinent information, and it shall regularly refresh said
information. 
  
 CLAUSE 21 – In case any hydrological conditions occur
that may be unfavorable to the generation of electric power, this shall not exempt CHESF from having to accomplish the obligations envisaged in this AGREEMENT except as disposed in Clause 22. 
  
 CLAUSE 22 – In case of rationing decreed by the Granting Authority, the
contractual obligations shall be ruled by the laws in effect. 
  
 CHAPTER VII 
  
 REGARDING TERMINATION

  
 CLAUSE 23 – This AGREEMENT shall be terminated pursuant
to law by the PARTY complying with its contractual obligations in case any of the following hypotheses comes about: 
  

	(a)	In case bankruptcy, composition with creditors, dissolution of the judicial or extra judicial liquidation of the other PARTY are decreed; 

  

	(b)	In case the other PARTY has any legal, government-granted or regulatory authorization revoked, said authorization being essential for the accomplishment of the activities or
the obligations envisaged in this AGREEMENT, including but not being limited to the concession of the public power generation services; 

  

	(c)	In case of the default of the other obligations envisaged in this AGREEMENT. 

  

	(d)	Through the initiative of the CONSUMER, provided CHESF is informed of this action in writing at least eighteen (18) days in advance counted as of the termination of
the respective ongoing supply period extending as of the date of denunciation, irrespectively of being dry or wet, as shown in the annexed Chart I or in its updates; 

  

	(e)	At any time, through the unilateral representation by the party prejudiced, if there is an infraction of any norm ruling the general electric power usage conditions, or in case of
non compliance of this AGREEMENT, unless an Act of God or an Event of Force Majeure has taken place (article 393, sole paragraph of the Brazilian Civil Code). 

  
 First Paragraph – Whenever this AGREEMENT or the official regulations regarding the supply of electric power so allow,
termination shall be replaced by an interim and conditional abeyance of supply, until the event causing the suspensive measure is overcome. 
  
 Second Paragraph – Termination shall be formal, and it shall be informed in writing to the appropriate regulatory entities so that they may take whatever
measures are needed. 
  
 CLAUSE 24 – In case termination takes place
as arising from an Act of God or of Force Majeure, and provided the PARTIES are not in arrears, said parties are released from having to accomplish this AGREEMENT except for the obligations that are supervening to said obligations.

  
 CLAUSE 25 – In case of the termination envisaged in this
AGREEMENT, no compensation or refund shall be due by one PARTY to the other, except for the compensation for the electric power already supplied and its possible ancillary services. 
  
 Sole Paragraph – The liability of each one of the PARTIES within the
context of this AGREEMENT shall in any case be limited to the amount of the power supply already accomplished, and none of the PARTIES shall undertake any obligation to indemnify the other for any resulting damages, including stoppage
of profits, moral damages or any other type of indemnity of the same nature. 
  

 CHAPTER VIII 
  
 GUARANTEE AND RELEASE FROM THE OBLIGATION OF HAVING TO MAINTAIN AN ELECTRIC POWER RESERVE 
  
 CLAUSE 26 – Complying with provisions of Clauses 14 and 15 of this
AGREEMENT, if the CONSUMER goes into arrears regarding the payment of more than one bill within a period of twelve months, CHESF shall be entitled to entail the continuity of the supply to the providing of a guarantee by the
CONSUMER. 
  
 First Paragraph – In case the provisions in the
header of this Clause come about, and within fifteen (15) days counted as of the service of notice, the CONSUMER shall provide a bank surety letter or any other guaranty acceptable to CHESF, said guarantee extending for twelve months,
and being of an amount corresponding to the last two bills. 
  
 Second
Paragraph – The CONSUMER shall be released from the guarantee at the end of the 12 month period without going into default. 
  
 Third Paragraph – In case the CONSUMER fails to pay its monthly bills on their respective due dates at a place indicated by CHESF, the latter
shall be released by law from having to maintain the Reserves of Electric Power as determined by this AGREEMENT or to go on supplying said electric power as determined herein, and it may go ahead with the interruption of the supply of
electric power pursuant to law. 
  
 Fourth Paragraph – Taking into
account the fact that the CONSUMER is allowed to acquire electric power in a free condition and in addition to the amounts established in this AGREEMENT, and as disposed in this Clause, it is agreed forthwith between the PARTIES that
the interruption of supply established in the previous Paragraph shall correspond to the full power load. 
  
 Fifth Paragraph – In compliance with the aforementioned Third Paragraph, only after the full liability (if any) has been paid off, including taxes, arrears increases, additional payment and all other
lawful comminations, the power supply shall be restored for the periods and as of the date that the parties may have stipulated in writing, and said adjustment shall serve as an addendum to this AGREEMENT in case of abeyance or a new agreement if
the current AGREEMENT has been terminated. 
  
 CHAPTER IX

  
 RESOLVING CONTROVERSIES 
  
 CLAUSE 27 – A controversy begins with a CONTROVERSY SERVICE OF NOTICE served by
one PARTY to the other. 
  
 CLAUSE 28 – In case there are
controversies arising from this AGREEMENT, the PARTIES shall attempt to resolve the controversy in an amicable fashion within fifteen (15) days counted as of the service of the CONTROVERSY NOTICE. 
  

 CLAUSE 29 – If it is not possible to resolve the controversy pursuant the previous Clause, the PARTIES
if they so agree, may submit the controversy to ANEEL’s mediation, according to specific, applicable norms. 
  
 CLAUSE 30 – If the controversy cannot be resolved as determined in the previous Clauses, the PARTIES may resort to judicial means in order to
definitely redeem said controversy. 
  
 CHAPTER X

  
 GENERAL PROVISIONS 
  
 CLAUSE 31 – In case the CONSUMER acquires said electric power in a free
status, this AGREEMENT shall have priority in the allocation of the electric power consumed. The electric power referentials regarding this AGREEMENT shall be computed predicated on the load factor to be agreed between the
PARTIES. 
  
 CLAUSE 32 – The implementation of the
CONSUMER’s own generators, used together with those of the system must have been previously informed to CHESF.  
  
 CLAUSE 33 – For all legal purposes this AGREEMENT is assigned the value of R$ 423.800.000,00 (four hundred and twenty-three million, eight hundred
thousand reais). 
  
 CLAUSE 34 – This AGREEMENT may not be
amended, nor shall any waivers be accepted as to its provisions except when accomplished in writing by the PARTIES in compliance with applicable laws. 
  
 CLAUSE 35 – No delays or forebearance by any of the PARTIES regarding the execution of any entitlement, power, privilege or resource contained in this
AGREEMENT shall be construed as capable of prejudicing said entitlement, power, privilege or resource, nor shall it be construed as their waver, or novation of any obligation(s). 
  
 CLAUSE 36 – Any notice or communication made by one PARTY to the other in regards to this AGREEMENT shall be
accomplished in Portuguese, and it may be delivered or sent by certified mail, facsimile or by electronic means, and in any case with a formal proof of receipt, to the addresses mentioned by the PARTIES in the preamble of this instrument, or
to any addresses that the PARTIES may designate in the future. 
  
 CLAUSE 37 – This AGREEMENT is entailed to the legislation and regulation currently in effect and supervening to it, and, in regards to the purchase and sale of electric 

  

 
power it replaces the Electric Power Supply Reserve Agreement celebrated between the PARTIES on June 02, 1998. 
  
 CLAUSE 38 – The TERM OF COMMITMENT FOR THE TRANSFER OF ADDITIONAL ELECTRIC POWER
RESERVE, as contained in ANNEX II, is made an appurtenant of this AGREEMENT. 
  
 CLAUSE 39 – The Courts of the Judicial District of Recife, in the State of Pernambuco are elected to redeem any quandaries or doubts arising from this AGREEMENT and/or related to it, with the express waiver of any other
even if more privileged. 
  
 AND, IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED
THIS INSTRUMENT IN TWO (02) COUNTERPARTS, EACH CONSIDERED TO BE AN ORIGINAL, IN THE PRESENCE OF THE TWO UNDERSIGNED WITNESSES. 
  

					
	Recife, October 20, 2004.	 	 	 	 
			
	  	 	 	 	  
	 Dilton da Conti Oliveira
 Director-President

CPF: 018.205.404-72
	 	 	 	 Mozart Bandeira Arnaud
 Operations Director

CPF:137.474.444-15

			
	CONSUMER: BRASKEM S.A. - UCS-AL	 	 	 	 
			
	  	 	 	 	  
	 Roberto Lopes Pontes Simões
 Director

CPF: 141.330.245-91
	 	 	 	 Ricardo de Maya Gomes Simões
 Electric Power
Manager/ Attorney
 in Fact CPF: 382.605.654-04

			
	Witnesses:	 	 	 	 
			
	  	 	 	 	  
	 Francisco Carlos Ruga
 CPF:
426.048.420-68
	 	 	 	 José Carlos de Miranda Farias
 CPF:
090.244-174-49

  

 ANNEX I 
  
 ELECTRIC POWER RESERVE CHART 
  

									
	 Supply Period

	  	Period of the Year

	  	 ELECTRIC POWER
RESERVES
 (amounts in kW)

	 item

	  	Month/year

	  	  	Peak

	  	Off-peak

	 1
	  	Nov/2004	  	Dry	  	164,000	  	164,000
	 2
	  	Dec 2004	  	Wet	  	164,000	  	164,000
	 3
	  	Jan to Apr/2005	  	Wet	  	136,000	  	164,000
	 4
	  	May to Nov /2005	  	Dry	  	136,000	  	164,000
	 5
	  	Dec/2005	  	Wet	  	136,000	  	164,000
	 6
	  	Jan to Apr/2006	  	Wet	  	164,000	  	164,000
	 7
	  	May to Nov/2006	  	Dry	  	164,000	  	164,000
	 8
	  	Dec/2006	  	Wet	  	164,000	  	164,000

  

									
	 9
	  	Jan to Apr/2007	  	Wet	  	164,000	  	164,000
	 10
	  	May to Nov/2007	  	Dry	  	164,000	  	164,000
	 11
	  	Dec/2007	  	Wet	  	164,000	  	164,000
	 12
	  	Jan to Apr/2008	  	Wet	  	184,000	  	184,000
	 13
	  	May to Nov/2008	  	Dry	  	184,000	  	184,000
	 14
	  	Dec/2008	  	Wet	  	184,000	  	184,000
	 15
	  	Jan to Apr/2009	  	Wet	  	184,000	  	184,000
	 16
	  	May to Nov/2009	  	Dry	  	184,000	  	184,000
	 17
	  	Dec/2009	  	Wet	  	184,000	  	184,000

  

 ANNEX II 
  
 TERM OF COMMITMENT FOR THE TRANSFER OF ADDITIONAL ELECTRIC POWER RESERVE CELEBRATED BETWEEN BRASKEM S.A’s CONSUMER UNITS WITH CHESF’s
AGREEMENT. 
  
 By this instrument, and hereinafter simply referred to jointly
as “CONSUMERS”, the PARTIES:  
  

	•	 	BRASKEM S.A. - UNIB-BA, located at Rua Eteno, n° 1561, in the Municipality of Camaçari, in the State of Bahia, complying with the 230kV voltage supplied by the
basic powergrid, enrolled before the CNPJ/MF under no. 42.150.391/0001-70, represented herein pursuant is Social Bylaws by its Directors who have been described at the end and who have signed this agreement; 

  

	•	 	BRASKEM S.A. - UCS/MVC/PVC-BA, located Rua Oxigênio, n° 765, within the area of the Basic Complex, in the Municipality of Camaçari, in the State of
Bahia, complying with the 230kV voltage supplied by the basic powergrid, enrolled before the CNPJ/MF under no. 42.150.391/0018-19, represented herein pursuant is Social Bylaws by its Directors who have been described at the end and who have signed
this agreement; 

  

	•	 	BRASKEM S.A. - UCS-AL, located at Avenida Assis Chateaubriand, n° 5.260, Ponta! da Barra, in the Municipality of Maceió, in the State of Alagoas, complying
with the 230kV voltage supplied by the basic powergrid, enrolled before the CNPJ/MF under no. 42.150.391/0022-03, represented herein pursuant is Social Bylaws by its Directors who have been described at the end and who have signed this agreement;

  
 And the CONSENTING PARTY, 
  
 COMPANHIA HIDRO ELÉTRICA DO SÃO FRANCISCO — CHESF, a public
services concessionaire engaged in the supply of electric power, headquartered in the city of Recife, in the state of Pernambuco, at Rua Delmiro Gouveia, n° 333, Bairro do Bongi, enrolled before the CNPJ of the Ministry of Finance under no.
33.541.368/0001-16, and enrolled before the state tax office under no. 18.1.001.0005584-6, hereinafter simply referred to as “CHESF” and represented herein pursuant its Social Bylaws by its Directors, described and undersigned at
the end of the agreement; and 
  

 WHEREAS 
  

	 	•	 	on October 20, 2004, CHESF has signed an Electric Power Purchase and Sale Agreement with each of the CONSUMERS; and 

  

	 	•	 	the CONSUMERS are interested in signing a TERM OF COMMITMENT to set up a specific treatment for an additional portion pertaining to an ELECTRIC POWER RESERVE with
CHESF’s agreement, and in face of the previousness required by the Electric Power Purchase and sale Agreements for the hiring of its power loads until the year 2010, and the difficulty in envisaging that the consumer unit may be allocated
this additional electric power load, the PARTIES  

  
 have
decided to celebrate this TERM OF COMMITMENT FOR THE TRANSFER OF AN ADDITIONAL ELECTRIC POWER RESERVE, pursuant the following terms and conditions: 
  
 FIRST CLAUSE – For all contractual purposes, the intent of this TERM OF COMMITMENT is to establish the amount and the terms for the allocation of an
additional electric power supply share regarding the reservation of electric power established in the Electric Power Purchase and Sale Agreements. 
  
 SECOND CLAUSE – The allocation referred to in the First Clause shall be accomplished without prejudice to the criteria and the conditions established in
Clauses 5 and 13 of the Electric Power Purchase and Sale Agreements all through the years of 2007, 2008, 2009 and 2010, pursuant the forecast to be informed by the CONSUMERS for years 2006, 2007, 2008 and 2009. 
  
 THIRD CLAUSE – An additional share of the total electric power reserve shall be
allowed, as determined in the chart annexed to this TERM OF COMMITMENT, which shall be allocated to the CONSUMERS units at their discretion. 
  
 Sole Paragraph – Any communication by the CONSUMERS regarding the allocation of the additional share to the consumer units must be forwarded to
CHESF each year so as to coincide with the date envisaged in the Second Paragraph of CLAUSE 5 of the Electric Power Purchase and Sale Agreements. 
  

FOURTH CLAUSE – All the conditions envisaged in the Electric Power Purchase and Sale Agreements shall remain unchanged, and they shall remain fully in
force throughout their term of effectiveness. 
  

 And, in witness whereof, the parties have celebrated this ELECTRIC POWER RESERVE TRANSFER COMMITMENT in two (2)
counterparts, each considered to be an original, in the presence of the two undersigned witnesses. 
  
 Recife, October 20, 2004 
  

					
	CONSUMER: BRASKEM S.A. – UNIB - BA	 	 	 	 
			
	  	 	 	 	  
	 Bernardo Afonso de Almeida Gradin
 Director
 CPF: 316.183.245-00
	 	 	 	 Ricardo de Maya Gomes Simões
 Power Manager /
Attorney in Fact
 CPF: 382.605.654-04

			
	CONSUMER: BRASKEM S.A. – UCS/MVC/PVC-BA	 	 	 	 
			
	  	 	 	 	  
	 Roberto Lopes Pontes Simões
 Director

CPF: 141.330.245-91
	 	 	 	 Ricardo de Maya Gomes Simões
 Power
Manager / Attorney in Fact
 CPF: 382.605.654-04

			
	CONSUMER: BRASKEM S.A. – UCS-AL	 	 	 	 
			
	  	 	 	 	  
	 Roberto Lopes Pontes Simões
 Director

CPF: 141.330.245-91
	 	 	 	 Ricardo de Maya Gomes Simões
 Power
Manager / Attorney in Fact
 CPF: 382.605.654-04

	
	CONSENTING PARTY: Companhia Hidro Elétrica do São Francisco - CHESF
			
	  	 	 	 	  
	 Dilton da Conti Oliveira
 Director-President

CPF: 018.205.404-72
	 	 	 	 Mozart Bandeira Arnaud
 Operations Director

CPF: 137.474.444-15

			
	Witnesses:	 	 	 	 
			
	  	 	 	 	  
	 Manoel Carnaúba Cortez
 CPF:
209.049.084-53
	 	 	 	 José Carlos de Miranda Farias
 CPF:
090.244-174-49

  

 ANNEX I 
  
 ELECTRIC POWER RESERVE CHART 
  

									
	 Period of Supply

	  	Period of the Year

	  	POWER RESERVE
(amounts in kW)

	 item

	  	Month/Year

	  	  	Peak

	  	Off-peak

	 1
	  	Jan to Apr/2005	  	Wet	  	—  	  	—  
	 2
	  	May to Nov/2005	  	Dry	  	—  	  	—  
	 3
	  	Dec/2005	  	Wet	  	—  	  	—  
	 4
	  	Jan to Apr /2006	  	Wet	  	—  	  	—  
	 5
	  	May to Nov /2006	  	Dry	  	—  	  	—  
	 6
	  	Dec/2006	  	Wet	  	—  	  	—  
	 7
	  	Jan to Apr /2007	  	Wet	  	16,000	  	16,000

  

									
	 8
	  	May to Nov /2007	  	Dry	  	16,000	  	16,000
	 9
	  	Dec/2007	  	Wet	  	16,000	  	16,000
	 10
	  	Jan to Apr /2008	  	Wet	  	42,000	  	42,000
	 11
	  	May to Nov /2008	  	Dry	  	42,000	  	42,000
	 12
	  	Dec/2008	  	Wet	  	42,000	  	42,000
	 13
	  	Jan to Apr /2009	  	Wet	  	50,000	  	50,000
	 14
	  	May to Nov /2009	  	Dry	  	50,000	  	50,000
	 15
	  	Dec/2009	  	Wet	  	50,000	  	50,000
	 16
	  	Jan to Apr /2010	  	Wet	  	50,000	  	50,000
	 17
	  	May to Nov/2004	  	Dry	  	50,000	  	50,000
	 18
	  	Dec/2010	  	Wet	  	50,000	  	50,000

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