Document:

Form of Note

 EXHIBIT 4.2 
  

[Form of Floating Rate Note Due 2006] 
  
 UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. 
  
 TRANSFERS OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 
  
 CSX CORPORATION 
  
 $• 
 FLOATING RATE NOTES DUE 2006 
  

			
	 No. •
	 	CUSIP No. •

  
 This security (the
“Security”) is one of a duly authorized issue of securities (herein called the “Securities”) of CSX Corporation, a Virginia corporation (hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to), issued and to be issued in one or more series under an indenture, unlimited as to aggregate principal amount, dated as of August 1, 1990 between the Company and JPMorgan Chase Bank, formerly known as The
Chase Manhattan Bank, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture (as hereinafter defined)), as supplemented by a First Supplemental Indenture dated as of June 15, 1991, a Second
Supplemental Indenture dated as of May 6, 1997, a Third Supplemental Indenture dated as of April 22, 1998, a Fourth Supplemental Indenture dated as of October 30, 2001 and a Fifth Supplemental Indenture dated as of October 27, 2003, to which
indenture and all indentures supplemental thereto (the indenture, as supplemented being herein called the “Indenture”) reference is hereby made for a statement of the respective rights thereunder of the Company, the Trustee and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, which series has been issued in an initial aggregate principal amount of
$• (• DOLLARS). All Securities of this series need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Securities of this series. Any such additional
Securities of this series will have the same interest rate, 

 maturity and other terms as those initially issued. Further Securities of this series may also be authenticated and
delivered as provided by Sections 304, 305, 306 or 906 of the Indenture. This Security represents an aggregate initial principal amount of $• (• DOLLARS) (as adjusted from time to time in accordance with the terms and provisions hereof and
as set forth on Exhibit A hereto, the “Principal Amount”) of the Securities of such series, with the Interest Payment Dates, date of original issuance, and date of Maturity specified herein and bearing interest on said Principal Amount at
the interest rate specified herein. 
  
 The Company, for value
received, hereby promises to pay CEDE & CO., or its registered assigns, the principal sum of $• (• DOLLARS) on August 3, 2006 and to pay interest (computed on the basis of the actual number of days elapsed in each quarterly interest
period and a 360-day year) thereon from August 3, 2004 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, or, if the date of this Security is an Interest Payment Date to which interest has been paid
or duly provided for, then from the date hereof, quarterly in arrears on February 3, May 3, August 3 and November 3 of each year, commencing November 3, 2004, and at Maturity at a floating rate of interest per annum determined by JPMorgan Chase
Bank, or its successors as calculation agent (the “Calculation Agent”) in accordance with the procedures specified herein, until the principal hereof is paid or duly made available for payment. The Company shall pay interest on overdue
principal and premium, if any, and (to the extent lawful) interest on overdue installments of interest at the rate per annum borne by the Security. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will,
as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the January 15, April 15,
July 15 or October 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for shall forthwith cease
to be payable to the Holder on such Regular Record Date and may be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date to be fixed by the Trustee for
the payment of such Defaulted Interest, notice whereof shall be given to the Holder of this Security not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system on which the Securities of this series may be listed or quoted, and upon such notice as may be required by such exchange or system, all as more fully provided in such Indenture.
Notwithstanding the foregoing, interest payable on this Security at Maturity will be payable to the person to whom principal is payable. 
  
 The per annum interest rate on this Security will be equal to the Three Month LIBOR Rate (as defined below) plus 30 basis points (0.30%). The interest
rate will be reset on the third day of the months of February, May, August and November of each year beginning November 3, 2004 (each, a “LIBOR Rate Reset Date”). The per annum interest rate for the period from and including the issue date
to the first LIBOR Rate Reset Date will be equal to the Three Month LIBOR Rate as of July 30, 2004 plus 30 basis points (0.30%) (the “Initial Interest Rate”). 
  
 If any LIBOR Rate Reset Date falls on a day that is not a Business Day, the LIBOR Rate Reset Date will be postponed to the
next day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the LIBOR Rate Reset Date will be the next 
  

 2 

 preceding Business Day. The interest rate in effect on any LIBOR Rate Reset Date will be the applicable rate as reset on
that date for the next succeeding quarterly interest period. The interest rate applicable to any other day will either be the Initial Interest Rate or the interest rate as reset on the immediately preceding LIBOR Rate Reset Date. 
  
 If any Interest Payment Date, other than the date of Maturity, falls on a day
that is not a Business Day, the Interest Payment Date will be postponed to the next day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the Interest Payment Date will be the immediately preceding
Business Day. If the date of Maturity of this Security falls on a day that is not a Business Day, the payment of interest and principal will be made on the next succeeding Business Day, and no interest on such payment will accrue for the period from
and after the date of Maturity. 
  
 The “Three Month LIBOR
Rate” means the rate determined in accordance with the following provisions: 
  

	 	(1)	On the LIBOR Interest Determination Date (defined below), the Calculation Agent or its affiliate will determine the Three Month LIBOR Rate which shall be the rate for deposits in
U.S. Dollars having the three-month maturity which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on the LIBOR Interest Determination Date. 

  

	 	(2)	If no rate appears on Telerate Page 3750 on the LIBOR Interest Determination Date, the Calculation Agent or its affiliate will request the principal London offices of four major
reference banks in the London Inter-Bank Market, which may include Barclays Capital Inc., UBS Securities LLC or affiliates of the Trustee, to provide it with their offered quotations for deposits in U.S. Dollars for the period of three months,
commencing on the applicable LIBOR Rate Reset Date, to prime banks in the London Inter-Bank Market at approximately 11:00 a.m., London time, on that LIBOR Interest Determination Date and in a principal amount that is representative for a single
transaction in U.S. Dollars in that market at that time. If at least two quotations are provided, then the Three Month LIBOR Rate will be the average (rounded, if necessary, to the nearest one hundredth (0.01) of a percent) of those quotations. If
fewer than two quotations are provided, then the Three Month LIBOR Rate will be the average (rounded, if necessary, to the nearest one hundredth (0.01) of a percent) of the rates quoted at approximately 11:00 a.m., New York City time, on the LIBOR
Interest Determination Date by three major banks in New York City selected by the Calculation Agent or its affiliate for loans in U.S. Dollars to leading European banks, having a three-month maturity and in a principal amount that is representative
for a single transaction in U.S. Dollars in that market at that time. If the banks selected by the Calculation Agent or its affiliate are not providing quotations in the manner described by this paragraph, the rate for the period following the LIBOR
Interest Determination Date will be the rate in effect on that LIBOR Interest Determination Date. 

  
 “Telerate Page 3750” means the display designated as “Telerate page 3750” on Moneyline Telerate, Inc. (or such other page as may
replace “Telerate page 3750” on such service) or such other service displaying the offer prices, as may replace Moneyline Telerate, Inc. 
  

 3 

 “LIBOR Interest Determination Date” means the second LIBOR Business Day preceding each LIBOR
Rate Reset Date. 
  
 “LIBOR Business Day” means any
Business Day on which dealings in deposits in U.S. Dollars are transacted in the London Inter-Bank market. 
  
 This Security is exchangeable in whole or from time to time in part for definitive Registered Securities of this series only as provided in this
paragraph. If (x) the Depository with respect to the Securities of this series (the “Depository”) notifies the Company that it is unwilling, unable or ineligible to continue as Depository for this Security or if at any time the Depository
ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor Depository is not appointed by the Company within 90 days, (y) the Company in its sole discretion determines that this Security shall be
exchangeable for definitive Registered Securities and executes and delivers to the Trustee a Company Order providing that this Security shall be so exchangeable or (z) there shall have happened and be continuing an Event of Default or any event
which, after notice or lapse of time, or both, would become an Event of Default with respect to the Securities of the series of which this Security is a part, this Security or any portion hereof shall, in the case of clause (x) above, be exchanged
for definitive Registered Securities of this series, and in the case of clauses (y) and (z) above, be exchangeable for definitive Registered Securities of this series, provided that the definitive Security so issued in exchange for this Security
shall be in authorized denominations and be of like tenor and of an equal aggregate principal amount as the portion of the Security to be exchanged, and provided further that, in the case of clauses (y) and (z) above, definitive Registered
Securities of this series will be issued in exchange for this Security, or any portion hereof, only if such definitive Registered Securities were requested by written notice to the Security Registrar by or on behalf of a Person who is a beneficial
owner of an interest herein given through the Holder hereof. Any definitive Registered Security of this series issued in exchange for this Security, or any portion hereof, shall be registered in the name or names of such Person or Persons as the
Holder hereof shall instruct the Security Registrar. Except as provided above, owners of beneficial interests in this Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders
thereof for any purpose under the Indenture. 
  
 Any exchange of
this Security or portion hereof for one or more definitive Registered Securities of this series will be made at the New York office of the Security Registrar. Upon exchange of any portion of this Security for one or more definitive Registered
Securities of this series, the Trustee shall endorse Exhibit A of this Security to reflect the reduction of its Principal Amount by an amount equal to the aggregate principal amount of the definitive Registered Securities of this series so issued in
exchange, whereupon the Principal Amount hereof shall be reduced for all purposes by the amount so exchanged and noted. Except as otherwise provided herein or in the Indenture, until exchanged in full for one or more definitive Registered Securities
of this series, this Security shall in all respects be subject to and entitled to the same benefits and conditions under the Indenture as a duly authenticated and delivered definitive Registered Security of this series. 
  
 The principal and any interest in respect of any portion of this Security
payable in respect of an Interest Payment Date or at the Stated Maturity thereof, in each case occurring prior to the exchange of such portion for a definitive Registered Security or Securities of this series, will be 
  

 4 

 paid, as provided herein, to the Holder hereof which will undertake in such circumstances to credit any such principal
and interest received by it in respect of this Security to the respective accounts of the Persons who are the beneficial owners of such interests on such Interest Payment Date or at Stated Maturity. If a definitive Registered Security or Registered
Securities of this series are issued in exchange for any portion of this Security after the close of business at the office or agency where such exchange occurs on (i) any Regular Record Date and before the opening of business at such office or
agency on the relevant Interest Payment Date, or (ii) any Special Record Date and before the opening of business at such office or agency on the related proposed date for payment of Defaulted Interest, then interest or Defaulted Interest, as the
case may be, will not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of such Registered Security, but will be payable on such Interest Payment Date or proposed date for payment, as the case may
be, only to the Holder hereof, and the Holder hereof will undertake in such circumstances to credit such interest to the account or accounts of the Persons who were the beneficial owners of such portion of this Security on such Regular Record Date
or Special Record Date, as the case may be. 
  
 Payment of the
principal of and any such interest on this Security will be made at the offices of JPMorgan Chase Bank, as Paying Agent, in the Borough of Manhattan, The City of New York, or at such other office or agency of the Company as may be designated by it
for such purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts by check mailed to the
registered Holders thereof; provided, however, that at the option of the Holder, payment of interest may be made by wire transfer of immediately available funds to an account of the Person entitled hereto as such account shall be
provided to the Security Registrar and shall appear in the Security Register. 
  
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series (including this Security and the interests represented hereby) may be
declared due and payable in the manner and with the effect provided in the Indenture. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and any interest on the Securities of this series (including this Security and the interests
represented hereby) shall terminate. 
  
 Article Fourteen of the
Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on this Security and (b) certain restrictive covenants and the related defaults and Events of Default, upon compliance with certain conditions set
forth therein. The provisions of Article Fourteen of the Indenture apply to Securities of this series. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the time Outstanding on behalf of the Holders
of all 
  

 5 

 Securities of such series to waive compliance by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and the Persons who are beneficial owners of
interests represented hereby, and of any Security issued in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Security. 
  
 As set forth in, and subject to, the provisions of the Indenture, no Holder of any Security of this series will have any
right to institute any proceeding with respect to the Indenture or for any remedy thereunder, unless such Holder shall have previously given to the Trustee written notice of a continuing Event of Default with respect to the Securities of this
series, the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities of this series shall have made written request, and offered reasonable indemnity, to the Trustee to institute such proceeding as trustee, and the
Trustee shall not have received from the Holders of a majority in aggregate principal amount of the Outstanding Securities of this series a direction inconsistent with such request and shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal of (and premium, if any) or interest on this Security on or after the respective due dates expressed
herein. 
  
 No reference herein to the Indenture and no provision
of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional to pay the principal of (and premium, if any) and interest on this Security at the time, place and rate, and in the coin or
currency, herein prescribed. 
  
 As provided in the Indenture and
subject to certain limitations therein and herein set forth, the transfer of Registered Securities of the series of which this Security is a part may be registered on the Security Register of the Company, upon surrender of such Securities for
registration of transfer at the office of the Security Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder thereof or his attorney
duly authorized in writing, and thereupon one or more new Securities of this Series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

 
 No service charge shall be made for any such registration of transfer or
exchange of Securities as provided above, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary. 
  
 The Securities of this series of which this
Security is a part are issuable only in registered form without coupons, in denominations of $1,000.00 and any integral multiple thereof. As 
  

 6 

 provided in the Indenture and subject to certain limitations therein set forth, the Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
  
 The Securities of this series shall be dated the date of their authentication. 
  
 All terms used in this Security which are defined in the Indenture shall have
the meanings assigned to them in the Indenture. 
  
 Unless the
certificate of authentication hereon has been executed by or on behalf of JPMorgan Chase Bank, the Trustee under the Indenture, or its successor thereunder, by the manual signature of one of its authorized officers, this Security shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 7 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  

					
	 Dated: August      , 2004
	 	 
	 	 	 CSX CORPORATION

			
	 [Seal]
	 	 By:
	 	  

	 	 	 Name:
	 	 David A. Boor

	 	 	 Title:
	 	 Vice President – Tax and Treasurer

  

	
	 Attest:

	  

	 Corporate Secretary

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Securities of
a series issued under the Indenture described herein. 
  

			
	 JPMORGAN CHASE BANK,

	 as Trustee

		
	 By:
	 	  

	 	 	Authorized Officer

  

 S-1 

 FORM OF TRANSFER NOTICE 
  
 FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
  
 Insert Taxpayer Identification No. 

	
	  
                                       
                                        
                                        
                                        
                                        
                   

	Please print or typewrite name and address including zip code of assignee
	  
                                       
                                        
                                        
                                        
                                        
                   

	the within Security and all rights thereunder, hereby irrevocably constituting and appointing
	 
	
	                                      
                           attorney to transfer said Security on the books of the Security Registrar with full power
of substitution in the premises.

  
  

			
	Date:                     	  	                                      
                                        
                                        
                                        
                    NOTICE:     The signature to this assignment must correspond with the name as written
upon the face of the within-mentioned instrument in every particular, without alteration or
any change
whatsoever.

  

 1 

 EXHIBIT A 
  

Schedule of Exchanges 
  

 E-1Provided By MZ Data Products

Exhibit 4.1 

Indenture, dated as
of October 24, 2003, by and between Banco Bradesco S.A., acting through its Grand Cayman
branch, as Issuer, and The Bank of New York Trust Company (Cayman) Limited, as Trustee 

October 24, 2003

BANCO BRADESCO S.A.,
                                       acting
through its Grand Cayman branch,
                                                     as
Issuer,

and

THE BANK OF NEW YORK
TRUST COMPANY (CAYMAN) LIMITED,
                                                     as
Trustee

INDENTURE
                                   Relating
to the 8.75% Subordinated Notes due 2013

CROSS-REFERENCE TABLE 

	Trust Indenture Act  	Indenture  
	Section	Section
	310(a)(1)	8.17
	(a)(2)	8.17
	(a)(3)	N.A. 
	(a)(4)	N.A. 
	(a)(5)	8.9;8.10;8.17
	(b)	8.9;8.17;15.3
	(c)	N.A. 
	311(a)	8.18
	(b)	8.18
	(c)	N.A. 
	312(a)	2.20
	(b)	15.11
	(c)	15.12
	313(a)	8.13
	(b)(1)	N.A. 
	(b)(2)	8.13
	(c)	6.8,8.13;15.3
	(d)	8.13
	314(a)	6.8,6.9;15.1;15.3
	(b)	N.A. 
	(c)(1)	6.13;12.2;13.4 
	(c)(2)	6.13;11.3;12.2;13.4 
	(c)(3)	15.1
	(d)	N.A. 
	(e)	15.1
	(f)	N.A. 
	315(a)	8.1
	(b)	8.16;15.3 
	(c)	8.1
	(d)	8.1
	(e)	7.13
	316(a)(last sentence)	9.2
	(a)(1)(A)	7.12
	(a)(1)(B)	7.4
	(a)(2)	N.A. 
	(b)	7.9
	(c)	9.1
	317(a)(1)	7.6
	(a)(2)	7.5
	(b)	6.11
	318(a)	1.3
	(c)	1.3

______________________
                                                                            N.A.
means Not Applicable
                                      NOTE: This Cross-Reference
Table shall not, for any purpose, be deemed to be a part of the Indenture.

Table of Contents 

	Contents  	   	Page  
	1.  	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 	1  
	   	1.1     Definitions  	1  
	   	1.2     Construction  	10  
	   	1.3     Incorporation
by Reference of Trust Indenture Act  	11  
	   	1.4     Conflict
with Trust Indenture Act  	11  
	2.  	THE NOTES  	11  
	   	2.1     Designation  	11  
	   	2.2     Limitation
on Principal Amount of Notes  	12  
	   	2.3     Authentication
and Delivery of Notes  	12  
	   	2.4      Form
of Trustee's Authentication  	13  
	   	2.5      Form
of the Notes  	13  
	   	2.6      Maturity
of the Notes  	15  
	   	2.7      Interest  	16  
	   	2.8      Deferral
of Interest and Principal  	17  
	   	2.9      Record
Date  	18  
	   	2.10    Issuance  	18  
	   	2.11    Denominations,
etc  	18  
	   	2.12    Execution
of Notes  	19  
	   	2.13    Registration;
Restrictions on Transfer  	19  
	   	2.14    Mutilated,
Destroyed, Lost and Stolen Notes  	24  
	   	2.15    Payments  	25  
	   	2.16    Taxation  	26  
	   	2.17    Persons
Deemed Owners  	28  
	   	2.18    Cancellation  	29  
	   	2.19    Allocation
of Principal and Interest  	29  
	   	2.20    Noteholder
Lists  	29  
	   	2.21    Temporary
Notes  	29  
	   	2.22    CUSIP
Numbers  	29  
	3.  	 ESTABLISHMENT OF ACCOUNTS  	30  
	   	3.1      Establishment
and Administration of Payment Account and Interest Subaccount  	30  
	   	3.2      Establishment
and Administration of Reserve Account  	31  
	4.  	 REDEMPTION  	33  
	   	4.1      No
General Optional Redemption  	33  

- i -

	   	4.2      Optional
Redemption in the Event of Change in Tax Treatment  	33  
	   	4.3      Optional
Redemption Date  	34  
	   	4.4      Notice
of Redemption  	34  
	   	4.5      Deposit
of Optional Redemption Price  	35  
	   	4.6      Notes
Payable on Optional Redemption Date  	35  
	5.  	THE INSURANCE POLICY  	35  
	6.  	COVENANTS  	37  
	   	6.1      Payment
of Principal and Interest  	37  
	   	6.2      Performance
Under the Transaction Documents  	37  
	   	6.3      Maintenance
of Approvals  	37  
	   	6.4      Maintenance
of Books and Records  	38  
	   	6.5      Use
of Proceeds  	38  
	   	6.6      Notice
of Defaults and Events of Default  	38  
	   	6.7      Notice
of Currency Inconvertibility/Non-Transfer Event and Other Events  	38  
	   	6.8      Provision
of Financial Statements and Reports  	38  
	   	6.9      Further
Actions  	40  
	   	6.10    Appointment
to Fill a Vacancy in Office of Trustee  	40  
	   	6.11    Payments
and Paying Agents  	40  
	   	6.12    Maintenance
of Existence  	41  
	   	6.13    Consolidation,
Merger, Conveyance or Transfer  	42  
	   	6.14    Listing  	42  
	   	6.15    Additional
Information for Ratings  	42  
	7.  	 DEFAULT AND REMEDIES  	43  
	   	7.1      Events
of Default  	43  
	   	7.2      Acceleration
of Maturity; Rescission and Annulment  	44  
	   	7.3      Delay
or Omission Not Waiver  	45  
	   	7.4      Waiver
of Past Defaults  	45  
	   	7.5      Trustee
May File Proofs of Claim; Appointment of Trustee as Attorney-in-Fact
in

Judicial Proceedings 

	45  
	   	7.6      Trustee
May Enforce Claims Without Possession of Notes  	46  
	   	7.7      Application
of Money Collected  	46  
	   	7.8      Limitation
on Suits  	47  
	   	7.9      Unconditional
Right of Noteholders to Receive Principal and Interest  	48  
	   	7.10    Restoration
of Rights and Remedies  	48  
	   	7.11    Rights
and Remedies Cumulative  	48  

- ii -

	   	7.12    Control
by Noteholders  	48  
	   	7.13    Undertaking
for Costs  	49  
	   	7.14    Waiver
of Stay or Extension Laws  	49  
	8.  	 CONCERNING THE TRUSTEE  	49  
	   	8.1      Certain
Rights and Duties of Trustee  	49  
	   	8.2      Trustee
Not Responsible for Recitals, etc.  	52  
	   	8.3      Trustee
and Others May Hold Notes  	52  
	   	8.4      Moneys
Held by Trustee or Paying Agent  	52  
	   	8.5      Compensation
of Trustee and Its Lien  	52  
	   	8.6      Right
of Trustee to Rely on Officer's Certificates and Opinions of Counsel  	53  
	   	8.7      The
Bank of New York Trust Company (Cayman) Limited as Trustee  	53  
	   	8.8      Persons
Eligible for Appointment as Successor Trustee  	54  
	   	8.9      Resignation
and Removal of Trustee; Appointment of Successor  	54  
	   	8.10    Acceptance
of Appointment by Successor Trustee  	55  
	   	8.11    Merger,
Conversion or Consolidation of Trustee  	55  
	   	8.12    Maintenance
of Offices and Agencies  	56  
	   	8.13    Reports by Trustee 

	58  
	   	8.14    Trustee
Risk  	58  
	   	8.15    Appointment
of Co-Trustee  	58  
	   	8.16    Notice
of Default  	60  
	   	8.17    Eligibility;
Disqualification.  	60  
	   	8.18    Preferential
Collection of Claims Against Issuer.  	60  
	9.  	 CONCERNING THE NOTEHOLDERS  	60  
	   	9.1      Acts
of Noteholders  	60  
	   	9.2      Notes
Owned by Issuer and Affiliates Deemed Not Outstanding  	62  
	10.  	 NOTEHOLDERS' MEETINGS  	62  
	   	10.1    Purposes
for Which Noteholders' Meetings May Be Called  	62  
	   	10.2    Trustee,
Issuer and Noteholders May Call Meeting  	63  
	   	10.3    Persons
Entitled to Vote at Meeting  	63  
	   	10.4    Determination
of Voting Rights; Conduct and Adjournment of Meeting  	63  
	   	10.5    Counting
Votes and Recording Action of Meeting  	64  
	11.  	 SUPPLEMENTAL INDENTURES  	64  
	   	11.1    Supplemental
Indenture with Consent of Noteholders  	64  
	   	11.2    Supplemental
Indentures Without Consent of Noteholders  	66  
	   	11.3    Execution
of Supplemental Indentures  	67  

- iii -

	   	11.4    Effect
of Supplemental Indentures  	67  
	   	11.5    Conformity
with Trust Indenture Act  	67  
	   	11.6    Reference
in Notes to Supplemental Indentures  	67  
	   	11.7    Moody's
Consent and Notification  	67  
	   	11.8    Consent
of the Central Bank of Brazil  	67  
	12.  	 SATISFACTION AND DISCHARGE  	68  
	   	12.1    Satisfaction
and Discharge of Notes  	68  
	   	12.2    Satisfaction
and Discharge of Indenture  	69  
	   	12.3    Application
of Trust Money  	70  
	13.  	 DEFEASANCE  	70  
	   	13.1    Issuer's
Option to Effect Defeasance or Covenant Defeasance  	70  
	   	13.2    Defeasance
and Discharge  	70  
	   	13.3    Covenant
Defeasance  	70  
	   	13.4    Conditions
to Defeasance or Covenant Defeasance  	71  
	   	13.5    Deposited
Money and Permitted Investments to Be Held in Trust; Other Miscellaneous

Provisions 

	72  
	   	13.6    Reinstatement  	73  
	14.  	SUBORDINATION  	73  
	   	14.1    Notes
Subordinate to Other Obligations  	73  
	   	14.2    Payment
Over of Proceeds Upon Dissolution, etc.  	74  
	   	14.3    Payment
Permitted in Certain Situations  	74  
	   	14.4    Provisions
Solely to Define Relative Rights  	75  
	   	14.5    Trustee
to Effectuate Subordination  	75  
	   	14.6    Notice
to Trustee  	75  
	   	14.7    Reliance
on Judicial Order or Certificate of Liquidating Agent  	76  
	   	14.8    Trustee
Not Fiduciary For Holders Of Other Obligations  	76  
	15.  	 MISCELLANEOUS  	76  
	   	15.1    Compliance
Certificates and Opinions  	76  
	   	15.2    Form
of Documents Delivered to Trustee  	77  
	   	15.3    Notices,
etc. to Trustee  	77  
	   	15.4    Notices
to Noteholders; Waiver  	79  
	   	15.5    Effect
of Headings and Table of Contents  	79  
	   	15.6    Successors
and Assigns  	79  
	   	15.7    Severability
Clause  	80  
	   	15.8    Benefits
of Indenture  	80  

- iv -

	   	15.9    Legal
Holidays  	80  
	   	15.10    Currency
Rate Indemnity  	80  
	   	15.11    Communication
by Noteholders with Other Noteholders  	82  
	   	15.12    Governing
Law  	82  
	   	15.13    Waiver
of Jury Trial  	82  
	   	15.14    Submission
to Jurisdiction, etc.  	82  
	   	15.15    Execution
in Counterparts  	83  

	EXHIBIT A(1)	Form of Restricted Global Note
	EXHIBIT A(2)	Form of Regulation S Global Note
	EXHIBIT A(3)	Form of Exchange Note
	EXHIBIT B	Form of Claim Notice for Insurance Policy
	EXHIBIT C(1)	Certificate of Extension of Maturity
	EXHIBIT C(2)	Form of Proof of Loss for Insurance Policy
	EXHIBIT D	Form of Risk Based Capital Requirements Certificate
	EXHIBIT E	Form of Authentication and Delivery Order
	EXHIBIT F	Form of Regulation S Certificate
	EXHIBIT G	Form of Restricted Notes Certificate
	EXHIBIT H	Form of Unrestricted Notes Certificate
	

- v -

INDENTURE (the
"Indenture") dated as of October 24, 2003  

BETWEEN

(1) BANCO
BRADESCO S.A., a company incorporated under the laws of the Federative Republic of
Brazil, acting through its Grand Cayman branch (the "Issuer"); and  

(2) THE
BANK OF NEW YORK TRUST COMPANY (CAYMAN) LIMITED, as trustee (the "Trustee") and as note
registrar and paying agent in New York.  

WHEREAS

(A)            The
Issuer has duly  authorized  the  issuance of the Notes (as  defined  below) in such
 principal  amount or amounts as may from time to time be  authorized  in
               accordance with the terms of this Indenture;

(B)            The
Issuer has duly authorized the execution and delivery of this Indenture to provide for
the issuance of the Notes and the  authentication  and delivery thereof                by
the Trustee;

(C)            All
things  necessary to make the Notes,  when executed by the Issuer and  authenticated  and
delivered by the Trustee as provided in this  Indenture,  the valid,
               binding and legal obligations of the Issuer, and to constitute these
presents a valid indenture and agreement according to its terms, have been done; and

(D)            Each of
the parties  hereto is entering  into this  Indenture for the benefit of the other party
and for the equal and ratable  benefit of the holders  of (i) the                Issuer's
8.75%  Subordinated  Notes due 2013 issued in accordance with the terms of this Indenture
(the “Original  Notes”),  (ii) any Additional Notes (as defined                herein)
 that may be issued from time to time under this  Indenture,  and (iii) the  Exchange
 Notes (as defined  herein) to be issued in exchange for the Initial                Notes
(as defined herein).

NOW, THEREFORE, the
parties hereto agree as follows: 

1.
            Definitions and Other Provisions of General Application

1.1
           Definitions

All terms used herein
which are defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein.

The following
capitalized terms shall have the meanings set forth below:

"Accounting Practices
Adopted in Brazil" means the Corporate Law Method together with the industry specific
guidelines (provided by the rules and regulations of the Conselho
Monetario Nacional (the National Monetary Council), the Central Bank, the Commissão de
Valores Mobiliários (the Brazilian Securities Commission) and other
regulatory entities) that are also considered part of the accounting practices adopted in
Brazil.  

"Act", when used with
respect to any Noteholder, has the meaning set forth in Section 9.1. 

"Additional Amounts"
has the meaning set forth in Section 2.16. 

- 1 -

"Additional Interest
Amount" has the meaning set forth in Section 2.8(b). 

"Additional Notes" has
the meaning set forth in Section 2.1(c). 

"Advance Payment" has
the meaning set forth in Section 3.2(a). 

"Affiliate" with
respect to any Person, means any other Person that, directly or indirectly, controls,
is controlled by or is under common control with such Person; it being
understood that for purposes of this definition, the term "control" (including the
terms "controlling", "controlled by" and "under common control with")
of a Person shall mean the possession, direct or indirect, of the power to vote 10% or
more of the equity or similar voting interests of such Person or to
direct or cause the direction of the management and policies of such Person, whether
through the ownership of such interests, by contract or otherwise.  

"Agent Member" means a
member of, or participant in, DTC, Euroclear or Clearstream, as the case may be. 

"Amount in Arrears"
has the meaning set forth in Section 2.8(a). 

"Applicable
Procedures" has the meaning set forth in Section 2.13(f)(i). 

"Arrears Rate" has the
meaning set forth in Section 2.7. 

"Authenticating Agent"
means the Person acting as Authenticating Agent hereunder pursuant to Section 8.12. 

"Authorized Agent"
means any Paying Agent, Authenticating Agent, Note Registrar or other agent
appointed in accordance with this Indenture to perform any function
that this Indenture authorizes such agent to perform. 

"Authorized
Representative" of the Issuer or any other Person means, subject to the requirements of
the Trust Indenture Act, the person or persons authorized to act on behalf
of such entity pursuant to a valid power of attorney by its Board of Directors or any
other similar competent governing body of such entity or any other
Person duly authorized in accordance with its organizational documents; provided, that
with respect to the Officers' Certificates to be delivered pursuant to
Section 6.8(c), such Officers' Certificates shall be executed by two executive officers
of the Issuer, at least one of them being an Executive Vice President.  

"Authorized
Signatory" means any officer of the Trustee or any other individual who shall be duly
authorized by appropriate corporate action on the part of the Trustee to
authenticate Notes. 

"Board of Directors",
when used with respect to a corporation, means either the board of directors of such
corporation or any committee of that board duly authorized to act for
it, and when used with respect to a limited liability company, partnership or other
entity other than a corporation, any Person or body authorized by the
organizational documents or by the voting equity owners of such entity to act for them. 

"Board Resolution"
means a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Issuer to have been adopted by the Board of Directors of the Issuer and to
be in full force and effect on the date of such certification. 

- 2 -

"Brazil" means the
Federative Republic of Brazil. 

"Brazilian reais" and
"R$" mean the lawful currency of Brazil.  

"Business Day" means
any day except a Saturday, a Sunday or a legal holiday or a day on which banking
institutions (including, without limitation, the members of the Federal
Reserve System) are authorized or required by law, regulation or executive order to
close in The City of New York, London, the Cayman Islands, Bermuda or São
Paulo. 

"Claim Notice" means a
notice in the form of Exhibit B hereto. 

"Clearstream" means
Clearstream Banking, société anonyme.  

"Closing Date" means
October 24, 2003. 

"Common Depositary"
means the common depositary for Euroclear and/or Clearstream. 

“Consent Agreement” means
the issuer consent agreement dated as of October 24, 2003, among the Issuer, the
Foreign Enterprise (as defined therein) and the Insurer, as amended or
modified from time to time in accordance with its terms. 

"Corporate Law Method"
means the Lei das Sociedades por Ações (Law 6,404/76, as amended), which sets forth the
accounting method required to be followed by all Brazilian corporate
entities.  

"Corporate Trust
Office" means the office of the Trustee or Note Registrar at which the corporate trust
business of the Trustee or Note Registrar, as the case may be, shall at
any particular time be administered, which at the time of the execution of this
Indenture is, in each case, located care of The Bank of New York at 101
Barclay Street, Floor 21W, New York, New York 10286, Attention: Global Finance Unit. 

"Covenant Defeasance"
has the meaning set forth in Section 13.3. 

"Currency
Inconvertibility/Non-Transfer Event" has the meaning set forth in the Insurance Policy. 

"CUSIP" means the
CUSIP Service Bureau. 

"Custodian" has the
meaning set forth in Section 2.5. 

"Default" means an
event or condition that, with the giving of notice, lapse of time or failure to
satisfy certain specified conditions, or any combination thereof,
would become an Event of Default if not cured or remedied. 

"Defeasance" has the
meaning set forth in Section 13.2. 

"Distribution
Compliance Period" means, with regard to Notes offered and sold in their initial
distribution outside the United States in reliance on Regulation S,
the period of 40 consecutive days beginning on the later of (i) the date on which the
Notes are first offered to persons other than distributors (as defined in
Regulation S) in reliance on Regulation S, and (ii) the date on which the Notes are
initially issued, authenticated and sold. 

- 3 -

"DTC" means The
Depository Trust Company, having a principal office at 55 Water Street, New York,
New York 10041-0099, together with any Person succeeding thereto by
merger, consolidation or acquisition of all or substantially all of its assets,
including substantially all of its securities payment and transfer
operations. 

"Euroclear" means
Euroclear Bank S.A./N.V., as operator of the Euroclear system. 

"Event of Default" has
the meaning set forth in Section 7.1. 

"Exchange Act" means
the U.S. Securities Exchange Act of 1934, as amended and in effect from time to time. 

“Exchange Notes” means
the 8.75% subordinated notes due 2013 to be issued in exchange for the Initial Notes in
accordance with the Registration Rights Agreement. 

"GAAP" means generally
accepted accounting principles in the United States, which are in effect from time to
time. 

"Global Note" has the
meaning set forth in Section 2.5. 

"Governmental
Approval" means any authorization, consent, approval, order, license, franchise,
ruling, permit, certification, waiver, exemption, filing or
registration by or with any Governmental Authority (including,
without limitation, environmental approvals, zoning variances, special exceptions
and non-conforming uses) relating to the execution, delivery or
performance of any Transaction Document. 

"Governmental
Authority" shall mean any regulatory, administrative or other legal body, any court,
tribunal or authority or any public legal entity or public agency of the
Cayman Islands, Brazil or the United States of America or any other jurisdiction whether
created by federal, provincial or local government, or any other legal
entity now existing or hereafter created, or now or hereafter controlled, directly or
indirectly, by any public legal entity or public agency of any of the
foregoing. 

"Grace Period" means
the 15-day grace period for the payment of interest specified in Section 7.1(b). 

"Guarantee of
Indebtedness" means an obligation of a person to pay the Indebtedness of another person
including, without limitation: 

(i)           an
obligation to pay or purchase such Indebtedness;

(ii)          an
obligation to lend money or to purchase or subscribe for shares or other  securities or
to purchase  assets or services in order to provide funds
                             for the payment of such Indebtedness; or

(iii)         any
other agreement to be responsible for such Indebtedness.

"Increased Interest"
means any and all amounts that become payable pursuant to Section 5 of the Registration
Rights Agreement. 

- 4 -

"Indebtedness", with
respect to any person, means any amount payable (whether as a direct obligation or
indirectly through a Guarantee of Indebtedness by such person) pursuant
to an agreement or instrument involving or evidencing money borrowed or received, the
advance of credit, a conditional sale or a transfer with recourse or with
an obligation to repurchase or pursuant to a lease with substantially the same economic
effect as any such agreement or instrument and which, under GAAP, would
constitute a capitalized lease obligation. 

"Indenture" has the
meaning set forth in the preamble hereto. 

"Initial
Non-Refundable Premium" has the meaning set forth in the Insurance Policy. 

"Initial Notes" means,
collectively, the Original Notes and Additional Notes. 

"Initial Refundable
Premium" has the meaning set forth in the Insurance Policy. 

"Insurance Policy"
means the Policy of Political Risk Insurance, Policy No. 03-255, dated October 24,
2003, between the Insurer and the Trustee, as amended or modified from
time to time in accordance with the terms thereof. 

"Insurer" means
Sovereign Risk Insurance Ltd., as agent on behalf of ACE Bermuda Insurance Ltd. and XL
Insurance (Bermuda) Ltd, and its successors and assigns. 

"Interest Payment
Date" has the meaning set forth in Section 2.7. 

"Interest Period"
means the period beginning on an Interest Payment Date and ending on the day before the
next Interest Payment Date. 

"Interest Subaccount"
has the meaning set forth in Section 3.1(a). 

"Issuer" has the
meaning set forth in the preamble to this Indenture. 

"Issuer Order" means a
written request or order signed in the name of the Issuer by two of its Authorized
Representatives. 

"Law" means any
constitutional provision, law, statute, rule, regulation, ordinance, treaty, order,
decree, judgment, decision, certificate, holding, or injunction,
enforceable at law or in equity, along with the interpretation and administration
thereof by any Governmental Authority charged with the
interpretation or administration thereof. 

"Luxembourg Paying
Agent" has the meaning set forth in Section 8.12(h) hereof. 

"Luxembourg Transfer
Agent" has the meaning set forth in Section 8.12(h) hereof. 

"Majority Noteholders"
means the holders of more than 50% in aggregate principal amount of the Notes then
Outstanding at any time. 

"Maturity Date" has
the meaning set forth in Section 2.6. 

"Moody's" means
Moody's Investors Service, Inc. 

"Noteholder" means a
Person in whose name a Note is registered in the Note Register. 

- 5 -

"Note Rate" means, for
any Interest Period, a rate per annum equal to that set forth in Section 2.7. 

"Note Register" has
the meaning set forth in Section 2.13. 

"Note Registrar" means
any Person acting as Note Registrar pursuant to Section 2.13. 

"Notes" means,
collectively, the Initial Notes and the Exchange Notes, treated as a single class of
securities, as amended or supplemented from time to time in accordance
with the terms hereof, that are issued pursuant to this Indenture. 

"Officer's
Certificate" means a certificate of an Authorized Representative of the Issuer in
compliance with the requirements of Section 15.1. 

"Opinion of Counsel"
means a written opinion of counsel in compliance with the requirements of Section 15.1
hereof from any Person which may include, without limitation, counsel
for the Issuer, whether or not such counsel is an employee of the Issuer. 

"Optional Redemption
Date" has the meaning set forth in Section 4.3. 

"Optional Redemption
Price" has the meaning set forth in Section 4.3. 

"Original Notes" has
the meaning set forth in the recitals to this Indenture. 

"Other Obligations"
means all Indebtedness of the Issuer including, without limitation, (a) principal and
interest thereon (and other amounts payable in respect thereof), (b) Indebtedness
of others guaranteed by the Issuer, whether outstanding on the date of execution of this
Indenture or thereafter created, assumed or incurred, (c) all financial
obligations derived from the application of law, including, without limitation, all
tax, social security, labor and other similar obligations, (d) all
indebtedness or obligations to the depositors of the Issuer, (e) all obligations of
the Issuer to make payment pursuant to the terms of financial
instruments and derivatives, (f) any guarantee by the Issuer of any Other
Obligations of a third party and (g) amendments, renewals, extensions,
modifications or refundings of any such Other Obligations; but excluding
(i) the Notes, whether outstanding on the date of this Indenture or thereafter issued
and (ii) the outstanding subordinated indebtedness of the Issuer or other
hybrid instrument, if any, as per the terms of Resolution 2837. 

"Outstanding", when
used with respect to Notes or any principal amount thereof, means, as of the date of
determination, all Notes theretofore authenticated and delivered under
this Indenture, except Notes: 

(i)
          theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

(ii)          for
which redemption money in the necessary amount has been  theretofore  deposited in trust
with the Trustee;  provided,  that if such Notes are to                              be
redeemed prior to the maturity thereof,  notice of such redemption has been duly given
pursuant to Article 4 or provision therefore  satisfactory
                             to the Trustee has been made;

(iii)         or
portions thereof deemed to have been paid within the meaning of Section 12.1;

(iv)          as to
which defeasance has been effected pursuant to Article 13; or

- 6 -

(v)           that
have been  exchanged for other Notes or Notes in lieu of which other Notes have been
 authenticated  and delivered  pursuant to this  Indenture
                             other than any Notes in respect of which  there shall have
been  presented  to the Trustee  proof  satisfactory  to it that such Notes are held by a
                             bona fide purchaser in whose hands such Notes constitute
valid obligations of the Issuer;

provided, however,
that in determining whether the Noteholders of the requisite principal amount of the
Outstanding Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Notes owned by the Issuer, or any of
its Subsidiaries or Affiliates, shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Notes so owned
which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right to
act with respect to such Notes and that the pledgee is not the Issuer or a
Subsidiary thereof or any Affiliate of the Issuer or any Subsidiary thereof. For the
avoidance of doubt, the Issuer will not be discharged from its
obligations under this Indenture upon payment of interest on the Notes with funds
provided by the Insurer under the Insurance Policy (other than with
funds constituting the Advance Payment made to the Trustee on the Closing Date for
deposit in the Reserve Account) and, for all purposes of this Indenture,
(i) the Insurer shall be subrogated to the rights of the Noteholders with respect to
such payment, and (ii) the Notes shall be deemed to remain Outstanding at
any time that amounts remain due and owing to the Insurer under Condition 8 of the
Insurance Policy. 

"Paying Agent" means
the Trustee and its successors and assigns and any other paying agent appointed by the
Issuer in accordance with Sections 2.15(b) and 6.11. 

"Payment Account"
means the account contemplated in Section 3.1 hereof. 

"Payment Date" means
any of the Interest Payment Dates, the Stated Maturity Date, the Maturity Date, the
Optional Redemption Date or any other date on which payments on the
Notes in respect of principal, interest or other amounts, including as a result of
any acceleration of the Notes, are required to be paid pursuant to
this Indenture and the Notes. 

"Permitted Brazilian
Investments" means liquid investments which accrue interest at least equal to CDI
(Certificado de Deposito Interbancario) or any other benchmark interest
rate that replaces CDI, if available.  

"Permitted
Investments" means the following types of investments: 

(i)            direct
 obligations of the United States (including  obligations  issued or held in book-entry
form on the books of the Department of                the Treasury of the United States)
or obligations the timely payment of the principal of and interest on which is fully
guaranteed by the United States;

(ii)
          obligations,  debentures, notes or other evidence of indebtedness issued or
guaranteed by agencies or instrumentalities of the United                States and
backed by the full faith and credit of the United States,  including, but not limited to,
any of the following:  United States Treasury,  Export-Import                Bank of the
United States and Government National Mortgage Association;

- 7 -

(iii)          general
obligation bonds issued by State or municipal governments,  the interest on which is
exempt from United States federal income                taxes, rated Aa2 or better by
Moody’s;

(iv)
          repurchase  agreements with financial  institutions  (including the Trustee) or
savings and loan associations  rated Aa2 or better by                Moody’s,
 respectively,  and having a combined  capital and surplus of at least two hundred  fifty
 million  dollars  ($250,000,000)  fully  secured by collateral                security,
 actually  delivered to the Trustee or its agent,  described in clauses (i) or (ii) of
this definition and  continuously  having a market value at least                equal to
the amount so invested;

(v)            banker’s
 acceptances  issued by, or  interest-bearing  demand or time deposits  (including
 certificates of deposit) in, a bank with                either (x) a long-term credit
rating of Aa2 or better by Moody’s or (y) a short term rating of P1 or better by Moody’s;

(vi)
          commercial paper rated P1 or better by Moody’s; and

(vii)          money
market funds rated A or better by Moody’s.

Nothing  contained
herein shall be construed to prohibit the Issuer and the Trustee from entering into any
 transactions or agreements that,  except                for the identity of the parties,
would otherwise be permitted hereunder.

"Person" means an
individual, partnership, corporation (including a business trust), limited liability
company, joint stock company, trust, unincorporated association, joint
venture or other entity, or a government or any political subdivision or agency thereof. 

"Place of Payment",
when used with respect to the Notes means the office or agency of the Trustee
maintained pursuant to Section 8.12 and such other place or places, if
any, where the principal of and interest on the Notes are payable as specified herein. 

"Policy Limit" has the
meaning assigned to such term in the Insurance Policy. 

"Predecessor Notes",
with respect to any particular Note, means any previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; for
the purposes of this definition, any Note authenticated and delivered under Section 2.14
in lieu of a lost, destroyed or stolen Note shall be deemed to evidence
the same debt as the lost, destroyed or stolen Note. 

"Process Agent" has
the meaning set forth in Section 15.14. 

"Proof of Loss" means
an affidavit in the form of Exhibit C(2). 

"Record Date" means,
with respect to any payment to be made on a Payment Date, the Business Day that is ten
Business Days prior to such Payment Date. 

"Reference Rate of
Exchange" has the meaning set forth in the Insurance Policy. 

“Registration Rights
Agreement” means the registration rights agreement dated as of October 24, 2003 between
the Issuer and Merrill Lynch, Pierce, Fenner & Smith Incorporated as the
same may be amended or supplemented from time to time and any other registration
rights agreement entered into in connection with the issuance of
Additional Notes hereunder. 

- 8 -

"Regulation S" means
Regulation S promulgated under the Securities Act, as amended and in effect from time to
time. 

"Regulation S
Certificate" has the meaning set forth in Section 2.13(f)(i). 

"Regulation S Global
Note" has the meaning set forth in Section 2.5. 

"Regulation S Note"
means a Note required to bear the Restrictive Legend applicable to Regulation S
Notes provided for in Exhibit A(2), including the Regulation S
Global Note. 

"Reserve Account" has
the meaning set forth in Section 3.2. 

"Resolution 2837"
means Resolution No. 2837 of May 30, 2001 issued by the Conselho Monetário Nacional
(National Monetary Council of Brazil), as amended, modified or superseded
from time to time.  

"Responsible
Officer", when used with respect to the Trustee, means any officer in the Corporate
Trust Office (or any successor group of the Trustee) including any vice
president, assistant vice president, assistant treasurer or any other officer of the
Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any corporate
trust matter is referred because of his knowledge and familiarity with
the particular subject and who shall have direct responsibility for the administration of
this Indenture. 

"Restricted Note"
means a Note required to bear the Restrictive Legend applicable to Restricted Notes
provided for in Exhibit A(1), including the Restricted Global Note. 

"Restricted Notes
Certificate" has the meaning set forth in Section 2.13(f)(ii). 

"Restrictive Legend"
means the legends required by the Forms of Note attached hereto as Exhibit A. 

"Risk-Based Capital
Requirements" has the meaning set forth in Section 2.8. 

"SEC" means the
Securities and Exchange Commission of the United States. 

"Securities Act" means
the U.S. Securities Act of 1933, as amended and in effect from time to time. 

"Stated Maturity Date"
has the meaning set forth in Section 2.6. 

"Subsidiary" means,
as to any Person, a corporation, company, partnership or other entity of which shares
of stock or other ownership interests having ordinary voting power (other
than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors
(or similar governing body) of such corporation, partnership or other entity are at
the time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of the
Issuer.  

"Taxes" has the
meaning set forth in Section 2.16. 

"Taxing Jurisdiction"
has the meaning set forth in Section 2.16. 

- 9 -

"The Bank of New York"
means The Bank of New York, a New York banking corporation. 

"Transaction
Documents" means, collectively, this Indenture, the Notes, the Insurance Policy and the
Consent Agreement. 

"Trustee" means the
person named as the "Trustee" in the preamble to this Indenture and its successors and
assigns. 

"Trust Indenture Act"
means the U.S. Trust Indenture Act of 1939, as amended and in effect from time to time. 

"United States" means
the United States of America. 

"U.S. dollars" or
"U.S.$" means the lawful currency of the United States.  

1.2
           Construction

For all purposes of
this Indenture (and for all purposes of any other Transaction  Document or any other
instrument or agreement that  incorporates  provisions of                this Indenture
by reference), except as otherwise expressly provided or unless the context otherwise
requires:

(a)           the
terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

(b)           except
as otherwise  expressly  provided herein,  (i) all accounting terms used herein shall be
interpreted,  (ii) all financial  statements and all
                             certificates and reports as to financial  matters required
to be delivered to the Trustee  hereunder shall be prepared,  and (iii) all  calculations
                             to be made for the purposes of  determining  compliance
 with this  Indenture  shall be made,  by reference  to the  Issuer's  financial
 statements                              prepared in accordance with, or by application
of, Accounting Practices Adopted in Brazil;

(c)           all
 references in this  Indenture  (including  the  Appendices,  Exhibits and  Schedules
 hereto) to designated  "Articles",  "Sections"  and other
                             subdivisions are to the designated Articles, Sections and
other subdivisions of this Indenture;

(d)           the
words  "herein",  "hereof"  and  "hereunder"  and other words of similar  import refer to
this  Indenture  as a whole and not to any  particular
                             Article, Section or other subdivision;

(e)           unless
the context clearly indicates otherwise, pronouns having a masculine or feminine gender
shall be deemed to include the other;

(f)           unless
otherwise  expressly  specified,  any agreement,  contract or document  defined or
referred to herein shall mean such agreement,  contract or
                             document as in effect as of the date  hereof,  as the same
may  thereafter  be amended,  supplemented  or  otherwise  modified  from time to time in
                             accordance with the terms of this Indenture and the other
Transaction  Documents and shall include any agreement,  contract,  instrument or
document                              in  substitution  or  replacement  of any of the
foregoing  entered into in accordance  with the terms of this  Indenture and the other
 Transaction                              Documents;

(g)            any
reference to any Person shall include its permitted successors and assigns in accordance
with the terms of this Indenture and the other Transaction Documents

- 10 -

including, in the case
of any Governmental Authority, any Person succeeding to its functions and capacities; and

(h)           unless
the context clearly requires  otherwise,  references to "Law" or to any particular Law
shall include Laws or such particular Law as in effect                              at
each, every and any of the times in question, including any amendments,  replacements,
 supplements, extensions,  modifications,  consolidations,
                             restatements, revisions or reenactments thereto or thereof,
and whether or not in effect at the date of this Indenture.

1.3
           Incorporation by Reference of Trust Indenture Act

Whenever this
Indenture refers to a provision of the Trust Indenture Act, such provision is
incorporated by reference in, and made part of, this Indenture.

1.4
           Conflict with Trust Indenture Act

If any provision
 hereof limits,  qualifies or conflicts  with a provision of the Trust  Indenture Act
which is required under such Act to be a part of and govern                this
Indenture,  the latter provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act which may be
               so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.

2. THE NOTES

2.1
           Designation

(a)           The
Notes may be issued in one or more  tranches.  All Notes  shall be  substantially
 identical  except as to  denomination  and the other  matters
                             described in Sections 2.1(c) and 2.2(b).

(b)           There is
hereby  created a series of Original  Notes  designated the "8.75%  Subordinated  Notes
due 2013",  issuable in one or more tranches in the
                             aggregate principal amount of U.S.$500,000,000, which are to
be issued pursuant to this Indenture.

(c) With
respect to any additional notes ("Additional Notes") issued after the Closing Date
(excluding Notes issued upon registration or transfer of,
or in exchange for, or in lieu of, other Notes pursuant to
Sections 2.13, 2.14, 2.15, and 11.5), which such issuance of Additional Notes shall be
subject to the prior written consent of the Central Bank of
Brazil as regards its compliance with the subordination conditions of Resolution 2837,
there shall be established in or pursuant to a Board
Resolution which shall be delivered to the Trustee accompanied by an Officer's
Certificate; or established in one or more indentures
supplemental hereto, prior to the issuance of such Additional Notes: 

(1)            the
aggregate  principal  amount of such  Additional  Notes that may be  authenticated  and
delivered  under this Indenture and their
                                            denomination;

(2) the
issue price and issuance date of such Additional Notes, including the date from which
interest on such Additional Notes shall accrue; provided, however, that no Additional
Notes may be issued at a price that would cause such 

- 11 -

Additional Notes to
have "original issue discount" within the meaning of Section 1273 of the U.S. Internal
Revenue Code of 1986, as amended; and

(3)            if
applicable,  that such Additional Notes shall be issuable in whole or in part in the form
of one or more Global Notes and, in such
                                            case, the respective  depositaries  for such
Global Notes, the form of any legend or legends that shall be borne by such Global Notes
                                            in addition to or in lieu of those set forth
in  Exhibits A(1)  and A(2)  hereto and any  circumstances  in addition to or in lieu of
                                            those set forth in Section 2.13 in which any
such Global Note may be exchanged in whole or in part for Additional  Notes  registered,
                                            or any transfer of such Global Note in whole
or in part may be registered,  in the name or names of persons other than the depositary
                                            for such Global Note or a nominee thereof.

If any of the terms of
any  Additional  Notes are  established by action taken pursuant to a Board  Resolution,
 a copy of an appropriate  record of                              such action  shall be
 certified  by an  Authorized  Representative  of the Issuer and  delivered  to the
Trustee at or prior to the delivery of the                              Officers'
Certificate or indenture supplemental hereto setting forth the terms of the Additional
Notes.

(d)           Issuance
 of  Additional  Notes  shall be subject to  confirmation  from  Moody's,  if  Moody's
 is then  rating the Notes,  that the rating of such
                             additional series of notes shall be equal to or better than
the rating of the existing Notes.

2.2
           Limitation on Principal Amount of Notes

(a) The
maximum aggregate principal amount of the Notes provided for in Section 2.1 that may
be Outstanding at any time shall be unlimited. Notes
repurchased upon the redemption thereof as provided in
Section 4.2 hereof may not be reissued. For the avoidance of doubt, however, the
Issuer or any of its Subsidiaries may at any time, subject
to the prior written consent of the Central Bank of Brazil, purchase Notes in the open
market or otherwise and at any price and such Notes need
not be cancelled and may be resold; provided, that, any such resale is in
compliance with all relevant laws, regulations and
directives. 

(b)           The
Board of  Directors of the Issuer  shall  establish  in or pursuant to a Board
 Resolution  (i) subject  to  Section 2.2(a),  the limit upon the
                             aggregate  principal  amount of each  tranche  of the Notes
 that may be  authenticated  and  delivered  under  this  Indenture  (other  than  Notes
                             authenticated  and  delivered  upon  registration  of
 transfer  of, or in  exchange  for,  or in lieu of other  Notes of that  tranche
 pursuant to                              Sections 2.13,  2.14 and 2.21 and except for
Notes which,  pursuant to  Section 11.6,  are deemed  never to have been  authenticated
 and  delivered                              hereunder), (ii)  the denominations in which
the Notes of such tranche shall be issuable.

2.3
           Authentication and Delivery of Notes

(a)            Any
time and from time to time after the  execution  and  delivery  of this  Indenture,  the
Issuer may  deliver  Notes  executed by the Issuer to the Trustee for authentication,
 together with an Issuer Order in the form set out in Exhibit E for the authentication
 and delivery of such Notes, and the Trustee shall thereupon  authenticate and make
 available  for delivery  such Notes in accordance  with such Issuer  Order,  without any
further  action by the Issuer.  In  accordance  with the  Registration  Rights Agreement,
the Trustee will

- 12 -

authenticate  and make
available for delivery  Exchange Notes in exchange for Initial Notes.  The Trustee shall
 authenticate  Exchange Notes only for a principal                              amount
not exceeding the principal amount of Initial Notes.

(b)           No Note
shall be secured by or entitled to any benefit under this  Indenture or be valid or
obligatory  for any purpose unless there appears on such
                             Note a certificate of  authentication,  substantially  in
the form provided for in Section 2.4,  executed by the Trustee by the manual  signature
of                              any Authorized  Signatory,  and such certificate upon any
Notes shall be conclusive  evidence,  and the only evidence,  that such Note has been
duly                              authenticated and delivered hereunder.

(c)           The
Trustee  shall have the right to decline to  authenticate  and deliver the Notes under
this  Section 2.3  if the  Trustee,  after  receipt of an
                             Opinion of  Counsel,  determines  that such  action may not
 lawfully  be taken by the Issuer or the  Trustee or if the Trustee in good faith by its
                             Board of Directors,  board of trustees,  executive
committee, a trust committee of directors or trustees or Responsible Officer shall
determine that                              such action does not comply with the
provisions of this Indenture or any document or instrument  delivered in connection
 herewith,  or could expose                              the Trustee to personal
 liability.  Prior to the  authentication  and  delivery of the Notes,  the Trustee
 shall also  receive  such other  funds,                              accounts,
 documents,  certificates,  instruments or opinions as may be required thereunder or it
may request in order to provide it with assurances                              that all
action necessary in connection therewith has been taken.

(d)
          Notwithstanding  the foregoing,  if any Note shall have been  authenticated and
delivered  hereunder but never issued or sold by the Issuer, and the
                             Issuer shall deliver such Note to the Trustee for
 cancellation  as provided in  Section 2.18  for all purposes of this Indenture such Note
shall be                              deemed never to have been authenticated and
delivered hereunder and shall never have been or be entitled to the benefits hereof.

2.4            Form of
Trustee's Authentication

The Trustee's
certificate of authentication on all Notes shall be in substantially the following form:

"This Note is one of
the Notes referred to in the within-mentioned Indenture.

THE BANK OF NEW YORK
TRUST COMPANY (CAYMAN) LIMITED,
 as Trustee 

By:......................................

    Authorized Signatory"

2.5            Form of
the Notes

(a) Notes
offered and sold in reliance on Rule 144A will initially be represented by one or more
permanent Global Notes (in substantially the form of
Exhibit A(1) with the applicable Restrictive Legend) in
definitive, fully registered book-entry form (collectively, the "Restricted Global
Note") which will be registered in the name of DTC or its
nominee and deposited on behalf of the purchasers of the Notes represented thereby
with a custodian for DTC for credit to the respective
accounts of such purchasers (or to such other accounts as they may direct) at DTC.  

- 13 -

(b) Notes
offered and sold in reliance on Regulation S will initially be represented by one or
more permanent Global Notes (in substantially the form of
Exhibit A(2) with the applicable Restrictive Legend) in definitive, fully registered
book-entry form (collectively, the "Regulation S Global
Note" and together with the Restricted Global Note, the
"Global Notes") which will be registered in the name of a nominee for Euroclear and
Clearstream and deposited on behalf of the purchasers of the
Notes represented thereby with a common depositary for Euroclear and Clearstream for
credit to the respective accounts of such purchasers (or to
such other accounts as they may direct) at Euroclear or Clearstream.  

(c)           Exchange
Notes  exchanged for interests in the Restricted  Global Note, the Regulation S Global
Note or any Initial Notes in definitive form will be                              issued
in the form of one or more  permanent  Global Notes  substantially  in the Form of
Exhibit A(3) in  definitive,  fully-registered  book-entry
                             form,  which will be  registered  in the name of a nominee
of DTC and  deposited  on behalf of the holders of the Notes  represented  thereby with a
                             custodian for DTC for credit to the respective accounts of
such holders (or to such other account as they may direct) at DTC.

(d)           The
Notes  shall be in  registered  form and may have such  letters,  numbers or other  marks
of  identification  and such  legends or  endorsements
                             printed,  lithographed,  engraved,  typewritten or
photocopied  thereon as may be required to comply with the rules of any securities
 exchange upon                              which the Notes are to be listed or to
conform to any usage in respect  thereof,  or as may,  consistently  herewith,  be
prescribed by the Board of                              Directors of the Issuer or by the
Authorized  Representative  executing such Notes,  such  determination  by said
 Authorized  Representative  to be                              evidenced by its signing
the Notes.

(e)           The
Notes may be issued in the form of  definitive  Notes under the  circumstances  described
 in  Sections 2.13(c),  (d) and (e).  Notes  issued in
                             definitive form shall be registered in the name or names of
such Persons and for the principal amounts as the Issuer may request.

(f) The
Issuer initially appoints DTC to act as depositary with respect to the Restricted
Global Note. The Trustee is authorized to enter into a
letter of representations with DTC in the form provided to
the Trustee by the Issuer and to act in accordance with such letter. The Trustee, as
custodian ("Custodian"), will act as custodian of the
Restricted Global Note for DTC or appoint a sub-custodian to act in such capacity. So
long as DTC or its nominee is the registered owner of the
Restricted Global Note, it shall be considered the holder of the Notes represented
thereby for all purposes hereunder and under the
Restricted Global Note. None of the Issuer, the Trustee or any Paying Agent
shall have any responsibility or liability for any aspect
of the records relating to or payments made by DTC on account of beneficial interests in
the Restricted Global Note. Interests in the Restricted
Global Note shall be transferred on DTC's book-entry settlement system. 

(g)            At such
time as all  beneficial  interests in a particular  Global Note have been  exchanged  for
Notes in  definitive  form or a particular  Global Note has been redeemed,  repurchased
or canceled in whole and not in part,  such Global Note shall be returned to or retained
and canceled by the Trustee in accordance with  Section 2.18.  At any time prior to such
 cancellation,  if any beneficial  interest in a Global Note is exchanged for or
 transferred to a Person who will take delivery  thereof in the form of a beneficial
interest in another Global Note or in the form of Notes in definitive form, the principal
amount of Notes

- 14 -

represented  by such
Global Note shall be reduced  accordingly  and an  endorsement  shall be made on such
 Global  Note by the  Trustee or by DTC,  Euroclear  or
                             Clearstream,  as the case may be, at the direction of the
Trustee to reflect such reduction;  and if the beneficial  interest is being exchanged
for                              or transferred  to a Person who will take delivery
 thereof in the form of a beneficial  interest in another  Global Note,  the principal
 amount of                              such other Global Note shall be increased
 accordingly and an endorsement  shall be made on such Global Note by the Trustee or by
DTC,  Euroclear or                              Clearstream,  as the case may be, at the
direction of the Trustee to reflect such increase.  In addition,  at any time prior to
the  cancellation of                              any Global Note,  if a Note in
 definitive  form is exchanged  for, or  transferred  to a Person who will take delivery
in the form of, a beneficial                              interest in such Global Note,
then the Trustee shall cancel such Note in definitive form in accordance with  Section 2.18,
 and the principal amount                              of such Global Note shall be
 increased  accordingly  and an  endorsement  shall be made on such Global Note by the
Trustee or by DTC,  Euroclear or                              Clearstream, as the case
may be, at the direction of the Trustee to reflect such increase.

(h)           The
forms of Notes may have such  appropriate  insertions,  omissions,  substitutions  and
other  variations  as are  required or  permitted by this
                             Indenture and may have such letters,  numbers or other marks
of identification  and such legends or endorsements  placed thereon as may,  consistent
                             herewith,  be  applicable  thereto or  determined by
officers of the Issuer  executing  such Notes,  as evidenced by their  execution
 thereof.  Any                              portion of the text of any Note may be set
forth on the reverse  thereof,  with an  appropriate  reference  thereof on the face of
the Note.  If the                              Notes conflict or are inconsistent with
the provisions of the Indenture, then this Indenture shall control.

(i)           Agent
Members shall have no rights under this  Indenture  with respect to any Global Note held
on their behalf by DTC,  Euroclear or  Clearstream or                              by the
Trustee,  as Custodian of the  Restricted  Global Note or the common  depositary in
relation to the  Regulation S Global Note, and DTC or its
                             nominee and the nominee of Euroclear  and  Clearstream  may
be treated by the Issuer,  the Trustee and any agent of the Issuer or the Trustee as the
                             absolute owner of the relevant  Global Note for all purposes
 whatsoever.  Notwithstanding  the foregoing,  nothing herein shall prevent the Issuer,
                             the Trustee or any agent of the Issuer or the Trustee from
giving effect to any written  certification,  proxy or other  authorization  furnished by
                             DTC,  Euroclear or Clearstream or impair,  as between DTC,
 Euroclear or Clearstream and their respective Agent Members,  the operation of customary
                             practices of DTC, Euroclear or Clearstream governing the
exercise of the rights of a holder of a beneficial interest in the relevant Global Note.

2.6
           Maturity of the Notes

(a) Subject
to Section 2.8, the Notes shall mature on October 24, 2013 (the "Stated Maturity
Date"); provided, however, that if on or before the Stated Maturity Date the Issuer
delivers a certificate, substantially in the form of Exhibit C(1), to the Trustee
(with a copy of such certificate to Moody's) stating that it has sufficient funds in
Brazilian reais at the Reference Rate of Exchange or U.S. dollars to repay the principal
amount of the Notes and any other Indebtedness payable on the Stated Maturity Date and
that it cannot make such payment in respect of the Notes due to a Currency
Inconvertibility/Non-Transfer Event which has occurred and is continuing on the date of
the certificate, and that it has used its reasonable best efforts to convert and
transfer such funds, then if such certificate shall be received by the Trustee on or
before the Stated Maturity Date, the obligation of the Issuer to repay the principal
amount of the Notes then shall be extended  

- 15 -

to the earlier to
occur of (i) April 24, 2015 and (ii) 30 days after the date on which the Currency
Inconvertibility/Non-Transfer Event that prevented the Issuer
from satisfying its payment obligations under the Notes has
ended (such actual maturity date for the Notes, the "Maturity Date"). 

(b)           In the
case of any  extension of the Stated  Maturity  Date,  the Stated  Maturity  Date shall
be  considered a Payment Date under the terms of this
                             Indenture,  and  interest at the Note Rate shall be due on
the Notes on such Stated  Maturity  Date and on each Payment  Date  occurring  thereafter
                             until the Maturity Date.

(c)           Upon the
occurrence of any extension of the Stated  Maturity Date under this  Section 2.6,  the
Issuer shall  promptly,  but in any event within two
                             Business Days thereafter, deliver notice thereof to the
Noteholders in accordance with the provisions of Section 15.4.

(d)           No
payments in respect of the  principal of the Notes shall be paid prior to the Maturity
 Date except in the case of the  occurrence of an Event of
                             Default in the circumstances set out in Section 7.2 or upon
redemption prior to the Maturity Date pursuant to Article 4.

2.7            Interest

(a) Interest
shall accrue on the Notes from and including October 24, 2003 at the rate of 8.75% per
annum for each Interest Period (the "Note Rate"), provided,
that (i) interest on the then-outstanding principal balance of the Notes after the
Maturity Date and (ii) interest on any overdue interest,
other than any interest payment not paid or delayed due to a default by the Insurer
under the Insurance Policy, shall accrue (to the extent
lawful) including, for the avoidance of doubt, during the Grace Period at the Note
Rate plus 1% per annum (the "Arrears Rate"), and,
provided further, that Increased Interest may accrue
on the Notes pursuant to the terms of the Registration Rights Agreement. Subject to
Sections 2.7(b) and 2.8, all interest shall be paid by the
Issuer to the Trustee and distributed by the Trustee in accordance with this Indenture
semiannually in arrears on October 24 and April 24 of each
year (or if such date is not a Business Day, the next succeeding Business Day following
such day unless such payment would thereby fall into the
next calendar month, in which case payment will be brought forward to the preceding
Business Day and the amount of interest payable will not be
altered as a result) during which any portion of the Notes shall be Outstanding (each,
an "Interest Payment Date"), commencing on April 24,
2004, to the Person in whose name a Note is registered at the close of business on
the preceding Record Date. Interest shall be calculated
based on a 360-day year of twelve 30-day months.  

(b)           If the
Issuer fails to make a payment of interest on the Notes on the relevant  Payment Date,
 other than in connection  with a deferral of interest
                             pursuant to Section 2.8(a),  and such failure continues for
the period of the Grace Period,  the Issuer shall, with the consent of the Trustee,  fix
                             or cause to be fixed a special  record date and a payment
 date.  At least one  Business  Day before the  special  record  date,  the Issuer (or
the                              Trustee,  in the name of and at the expense of the
Issuer)  shall  transmit to the  Noteholders a notice  specifying  the special  record
date,  the                              related payment date and the amount of such
interest to be paid.

- 16 -

2.8
           Deferral of Interest and Principal

(a)           Deferral
of Payments

Notwithstanding the
provisions of Sections 2.6 and 2.7, if the payment of interest on any Interest Payment
Date or any Optional Redemption Date or the payment of
principal on the Stated Maturity Date or the Maturity Date or any Optional Redemption
Date, as the case may be, would cause the Issuer to fail
to satisfy the Issuer's Required Net Worth (Patrimônio Líquido Exigido) and other
financial ratios to fall below the minimum levels required
by regulations generally applicable to Brazilian banks, now existing or hereafter
promulgated or enacted by Brazilian banking or monetary
authorities (the "Risk-Based Capital Requirements"), the
Issuer shall defer such interest or principal payment (and any other amounts payable in
respect thereof), as the case may be, pursuant to the
terms of Resolution 2837, until the date no later than 14 days after the date the Issuer
is no longer in violation of the Risk Based Capital
Requirements or the payment of such interest or principal amount, or any portion
thereof, would no longer cause the Issuer to violate the
Risk Based Capital Requirements. The deferral of any payment in accordance with
this Section 2.8(a) shall not constitute an Event of
Default. Any amount of interest or principal or any other amounts payable in respect of
the Notes not paid on an Interest Payment Date, the
Stated Maturity Date, the Maturity Date or the Optional Redemption Date, as the
case may be, as a result of such deferral shall, so long
as the same remains outstanding, constitute an "Amount in Arrears". The Issuer shall
be required to pay any Amount in Arrears within 14 days of
such date as it is no longer entitled to defer payment of such amounts. The Issuer
shall, as soon as practicable upon becoming aware that
the payment of interest or principal will cause it to fail to satisfy the Risk Based
Capital Requirements as provided herein, and in any event
within two Business Days thereof, deliver to the Trustee (with a copy to Moody's and the
Insurer) a certificate, substantially in the form set forth
in Exhibit D.  

(b)
          Additional Interest Amounts

Each Amount in Arrears
shall bear interest (in the case of any interest amount, as if it constituted the
principal of the Notes) at a rate which corresponds to the
Arrears Rate from time to time applicable to the Notes and the amount of such interest
(the "Additional Interest Amount") with respect to each
Amount in Arrears shall be due and payable pursuant to this Section 2.8 and shall be
calculated by the Trustee applying the Arrears Rate to
the Amount in Arrears and otherwise mutatis mutandis as provided in the foregoing
provisions of this Section 2.8. The Additional Interest
Amount accrued up to any Interest Payment Date shall be added, for the purpose only
of calculating the Additional Interest Amount accruing
thereafter, to the Amount in Arrears remaining unpaid on such Interest Payment Date so
that it will itself become an Amount in Arrears.  

(c)           Notice
of Deferral of Payment and Payment of Amount in Arrears

The Issuer shall use
its reasonable  efforts to give not more than 14 nor less than two Business Days' prior
notice to the Noteholders  (with a copy                              to the Insurer), in
accordance with Section 15.4:

(i)            of any
Interest Payment Date or Optional Redemption Date on which, pursuant to Section 2.8(a),
interest will not be paid;

- 17 -

(ii)           of any
 portion of the  principal  otherwise  payable on the  Maturity  Date or any  Optional
 Redemption  Date  which,  pursuant  to
                                            Section 2.8(a), will not be paid; and

(iii)          of any
date upon which amounts in respect of any Amount in Arrears and/or Additional Interest
Amounts shall become due and payable;

provided  always that
any failure by the Issuer to comply with its  obligations  to notify the  Noteholders  in
accordance  with this Section 2.8(c)                              shall not affect the
 obligation  of the Issuer to defer any payment or pay any Amount in Arrears  when due in
 accordance  with the  provisions  of                              Section 2.8(a).

(d)           Partial
Payment of Amounts in Arrears

If amounts in respect
of Amounts in Arrears and Additional Interest Amounts are at any time only partially
payable:

(i)            all
unpaid amounts of Amounts in Arrears shall be payable before any Additional Interest
Amounts;

(ii)           Amounts
in Arrears  accrued for any Interest  Period shall not be payable  until full payment has
been made of all Amounts in Arrears                                             that have
accrued during any earlier  Interest  Period and the order of payment of Additional
 Interest  Amounts shall follow that of                                             the
Amounts in Arrears to which they relate; and

(iii)          the
Amounts in Arrears or Additional  Interest  Amounts payable in respect of any Note in
respect of any Interest Period shall be pro
                                            rated to the total amount of all unpaid
Amounts in Arrears or, as the case may be, Additional  Interest Amounts accrued in
respect of                                             that period to the date of payment.

2.9            Record
Date

The Trustee may treat
the Person in whose name any Note is registered on the applicable Record Date as the
Noteholder for all purposes under this Indenture.

2.10           Issuance

The Initial Notes
shall be issued only in a transaction  or  transactions  exempt from  registration  under
the  Securities  Act to permitted  Persons or entities                pursuant  to Rule
144A  and/or  Regulation S  under the  Securities  Act.  The Notes  shall be subject to
 restrictions  on  transfer  and resale as  provided  in                Section 2.13.

2.11
          Denominations, etc.

The Notes shall be
issued only in fully registered form,  without coupons and as otherwise  provided herein.
 Subject to  Section 2.2(b),  Notes sold pursuant to Rule 144A shall be issued in the
form of beneficial  interests in one or more Restricted  Global Note in denominations of
U.S.$ 100,000 and integral  multiples of U.S.$10,000 in excess thereof. Subject to
 Section 2.2(b),  Notes sold pursuant to Regulation S shall be issued in the form of
beneficial  interests in one or more Regulation S Global Note in denominations of
U.S.$10,000 and integral multiples thereof.  Beneficial interests in any Global Note
shall be shown on, and transfers thereof shall be effected

- 18 -

only through, the
book-entry records maintained by DTC, Euroclear and Clearstream and their respective
participants.  Notes issued in physical,  certificated form                shall not be
permitted to be traded through the facilities of DTC,  Euroclear or Clearstream,  except
in connection with a transfer of a Note in certificated form                to a
transferee  that takes  delivery in the form of beneficial  interests in a Global Note
pursuant to Rule 144A or  Regulation S,  as the case may be, or in the
               form of a beneficial interest in the Exchange Note held in global
registered form.

2.12
          Execution of Notes

The Notes shall be
executed on behalf of the Issuer by one of its  Authorized  Representatives.  The
 signature of any such officers on the Notes may be manual or                facsimile.
 Notes bearing the manual or facsimile  signatures of individuals who were, at the time
such signatures were affixed, the proper officers of the Issuer                shall bind
the Issuer,  notwithstanding  that such  individuals or any of them have ceased to hold
such offices prior to the  authentication  and delivery of such                Notes or
did not hold such offices at the date of such Notes. In accordance with the  Registration
 Rights  Agreement,  the Issuer will execute  Exchange Notes in                exchange
for Initial Notes for authentication and delivery by the Trustee pursuant to Section
2.3(a).

2.13
          Registration; Restrictions on Transfer

(a) The
Issuer shall cause to be kept at the Corporate Trust Office of the Note Registrar a
register which, subject to such reasonable regulations as
the Issuer may prescribe, shall provide for the
registration of Notes and for the registration of transfers and exchanges of Notes.
This register and, if there shall be more than one Note
Registrar, the combined registers maintained by all such Note Registrars, are herein
sometimes referred to as the "Note Register". The Trustee
is hereby appointed the initial Note Registrar for the purpose of registering Notes
and transfers and exchanges of Notes as herein provided.
Upon any resignation or removal of the Note Registrar, the Issuer shall promptly
appoint a successor, or in the absence of such
appointment, assume the duties of such Note Registrar. The Issuer may appoint one or
more co-registrars. 

(b)           If a
Person other than the Trustee is appointed  by the Issuer as Note  Registrar,  the Issuer
will give the Trustee  prompt  written  notice of the
                             appointment  of a Note Registrar and of the location,  and
any change in the location of the Note Register,  and the Trustee shall have the right to
                             inspect  the Note  Register at all  reasonable  times and to
obtain  copies  thereof,  and the  Trustee  shall have the right to rely upon such Note
                             Register as to the names and addresses of the Noteholders
and the principal amounts and numbers of such Notes.

(c)            Except
as otherwise  provided  herein,  transfer of any Restricted  Global Note shall be limited
to transfers in whole, but not in part, to DTC, its successors or their respective
 nominees.  Any Restricted  Global Note shall be exchanged for definitive Notes,  without
coupons,  and delivered to and registered in the name of Persons named by DTC,  rather
than to the nominee for DTC, if (i) the Issuer advises the Trustee in writing that DTC is
no longer  willing or able to discharge  properly its  responsibilities as Registered
 Depositary with respect to the Notes or that DTC has ceased to be a clearing agency
 registered  under the Exchange Act, and, in either case, the Issuer is unable to appoint
a qualified  successor within 90 days after notice from DTC or after the Issuer becomes
aware of such cessation,  (ii) the Issuer, at its option,  elects to terminate the
book-entry  system through DTC with respect to the Notes and cause issuance of
certificated  Notes or (iii) after the occurrence and during the  continuation of a
Default or an Event of Default,

- 19 -

DTC or beneficial
owners holding interests  representing an aggregate principal amount of Notes of more
than 50% of the Notes represented by the Restricted Global
                             Note shall so advise the Trustee by written request.

(d) Any
Regulation S Global Note shall be exchangeable for definitive Notes, without coupons
and delivered to and registered in the name of Persons named
by Euroclear and Clearstream, rather than to the nominee for Euroclear and
Clearstream, if (i) the Issuer advises the Trustee in writing
that Euroclear or Clearstream is closed for business for a
continuous period of 14 days (other than by reason of legal holidays) or has announced
an intention permanently to cease business; or (ii)
after the occurrence and during the continuation of a Default or an Event of
Default, Euroclear or Clearstream or beneficial owners
holding interests representing an aggregate principal amount of Notes of more than 50%
of the Notes represented by the Regulation S Global Note
shall so advise the Trustee by written request; provided, that in no event shall a
Regulation S Global Note be exchanged for Notes in
definitive form prior to the expiration of the Distribution Compliance Period. 

(e)           Upon the
 occurrence of any of the events in clauses (c)  and (d) above,  the Trustee  shall,  by
forwarding any notice  received from the Issuer to                              DTC,
 Euroclear  or  Clearstream,  be deemed to have  notified  all  Persons who hold a
 beneficial  interest in the  relevant  Global Note  through
                             participants in DTC,  Euroclear or Clearstream or beneficial
 owners through  participants in DTC,  Euroclear or Clearstream of the  availability of
                             definitive  Notes.  Upon surrender of the relevant Global
Note and receipt of  instructions  for  re-registration,  the Note Registrar will
exchange                              the relevant Global Note for an equal aggregate
principal amount of definitive Notes.

(f)
          Notwithstanding  any other  provision  of this  Indenture or the Notes,
 transfers  and  exchanges of  Restricted  Notes and  Regulation S  Notes or
                             beneficial interests therein, as the case may be, shall be
made only in accordance with this Section 2.13(f):

(i)
Restricted Global Note to Regulation S Global Note. If the owner of a
beneficial interest in the Restricted Global Note wishes at any time to transfer such
interest to a Person who wishes to take delivery thereof in the form of a beneficial
interest in the Regulation S Global Note, such transfer may be effected only in
accordance with the provisions of this clause (f)(i) and clause (f)(vii) below and
subject to the Applicable Procedures. Upon receipt by the Note Registrar, of (A) a
written order given by an Agent Member of DTC directing that a beneficial interest in
the Regulation S Global Note in a specified principal amount be credited to a
specified Agent Member's account with Euroclear or Clearstream as the case may be, and
that a beneficial interest in the Restricted Global Note in an equal principal amount
be debited from a specified Agent Member's account with DTC and (B) a Regulation S
Certificate (a "Regulation S Certificate") in the form set forth in Exhibit F, and
duly executed by the Agent Member owner of such beneficial interest in the Restricted
Global Note or his attorney duly authorized in writing, then the Note Registrar, but
subject to clause (f)(vii) below, shall reduce the principal amount of the Restricted
Global Note and increase the principal amount of the Regulation S Global Note by such
specified principal amount as provided in Section 2.5(h). Any beneficial interest
in the Restricted Global Note that is transferred to a Person that takes delivery in the
form of a beneficial interest in the Regulation S Global Note will, upon transfer, cease
to be an interest in the Restricted Global Note and will become an interest  

- 20 -

in the Regulation S
Global Note subject to all transfer restrictions and other procedures applicable to
beneficial interests in the Regulation S
Global Note. "Applicable Procedures"
means, with respect to any transfer or transaction involving a Global Note or
beneficial interest therein, the rules and
procedures of DTC, Euroclear and Clearstream, in each case to the extent
applicable to such transaction and as in
effect from time to time. 

(ii)
Regulation S Global Note to Restricted Global Note. If the owner of a
beneficial interest in the Regulation S Global Note wishes at
any time to transfer such interest to a
Person who wishes to take delivery thereof in the form of a beneficial interest in
the Restricted Global Note, such transfer
may be effected only in accordance with this clause (f)(ii) and subject to the
Applicable Procedures. Upon receipt by
the Note Registrar of (A) a written order given by an Agent Member of Euroclear or
Clearstream directing that a beneficial
interest in the Restricted Global Note in a specified principal amount be credited to a
specified Agent Member's account with DTC
and that a beneficial interest in the Regulation S Global Note in an equal principal
amount be debited from a specified Agent
Member's account with Euroclear or Clearstream as the case may be, and (B) if such
transfer is to occur during (but only
during) the Distribution Compliance Period, a Restricted Notes Certificate (a
"Restricted Notes Certificate") in the form
set forth in Exhibit G, and duly executed by the Agent Member owner of such beneficial
interest in the Regulation S Global Note or
his attorney duly authorized in writing (accompanied, in the case of a transfer under
an exemption from the registration
requirements under the Securities Act
other than pursuant to Rule 144A or Rule 144 under the Securities Act, by an opinion
of counsel stating that such exemption is
available to the transferor), then the Note Registrar shall reduce the principal
amount of the Regulation S Global Note and
increase the principal amount of the Restricted Global Note by such specified
principal amount as provided in Section 2.5(h).
Any beneficial interest in the Regulation S Global Note that is transferred to a
Person that takes delivery in the form of a
beneficial interest in the Restricted Global Note will, upon transfer, cease to be
an interest in the Regulation S Global Note
and will become an interest in the Restricted Global Note subject to all transfer
restrictions and other procedures
applicable to beneficial interests in the Restricted Global Note.  

(iii)
Restricted Non-Global Note to Restricted Global Note or Regulation S Global
Note. If the holder of a Restricted Note (other than a Global Note) wishes at any time
to transfer all or any portion of such Note to a Person who wishes to take delivery
thereof in the form of a beneficial interest in the Restricted Global Note or the
Regulation S Global Note, such transfer may be effected only in accordance with the
provisions of this clause (f)(iii) and clause (f)(vii) below and subject to the
Applicable Procedures. Upon receipt by the Note Registrar of (A) such Note in accordance
with Section 2.13(h) and instructions directing that a beneficial interest in the
Restricted Global Note or Regulation S Global Note in a specified principal amount not
greater than the principal amount of such Note be credited to a specified Agent
Member's account and (B) a Restricted Notes Certificate, if the specified account is to
be credited with a beneficial interest in the Restricted Global Note, or a Regulation S
Certificate, if the specified account is to be credited with a beneficial interest in
the Regulation S Global Note, duly executed by such holder or his attorney duly
authorized in writing, then the Note Registrar, but subject to clause (f)(vii) below,
shall cancel such Note (and issue a 

- 21 -

new Note in respect of
any  untransferred  portion  thereof) and increase the principal  amount of the
 Restricted  Global Note or the  Regulation S
                                            Global Note, as the case may be, by the
specified principal amount as provided in Section 2.5(h).

(iv)
Regulation S Non-Global Note to Restricted Global Note or Regulation S
Global Note. If the holder of a Regulation S Note (other
than a Global Note) wishes at any time to
transfer all or any portion of such Note to a Person who wishes to take delivery
thereof in the form of a beneficial
interest in the Restricted Global Note or the Regulation S Global Note, such transfer
may be effected only in accordance with this
clause (f)(iv) and clause (f)(vii) below and subject to the Applicable Procedures. Upon
receipt by the Note Registrar of (A) such
Note in accordance with Section 2.13(h) and instructions directing that a beneficial
interest in the Restricted Global Note or
Regulation S Global Note in a specified principal amount not greater than the
principal amount of such Note be credited
to a specified Agent Member's account and (B) if the specified account is to be credited
with a beneficial interest in the
Regulation S Global Note, a Regulation S Certificate, duly executed by such holder
or his attorney duly authorized in
writing, then the Note Registrar, but
subject to clause (f)(vii) below, shall cancel such Note (and issue a new Note in
respect of any untransferred portion
thereof) and increase the principal amount of the Restricted Global Note or the
Regulation S Global Note, as the case may be,
by the specified principal amount as provided in Section 2.5(h). 

(v)
Non-Global Note to Non-Global Note. A Note that is not a Global Note may be
transferred, in whole or in part, to a Person who takes
delivery in the form of another Note that is
not a Global Note; provided, that, if the Note to be transferred in whole or in part is
a Restricted Note, then the Note Registrar
shall have received (A) a Restricted Notes Certificate, satisfactory to the Note
Registrar and duly executed by the transferor
holder or his attorney duly authorized in writing, in which case the transferee holder
shall take delivery in the form of a
Restricted Note, or (B) a Regulation S Certificate, satisfactory to the Note Registrar
and duly executed by the transferor holder
or his attorney duly authorized in writing, in which case the transferee holder
shall take delivery in the form of a
Regulation S Note (subject in each case to Section 2.13(k)).  

(vi)
Exchange or Transfer between Global Note and Non-Global Note. A beneficial
interest in a Restricted Global Note or a Regulation S Global Note may be exchanged for
a Note that is not a Global Note as provided in Section 2.13(c), (d) and (e), or
transferred to a Person who wishes to take delivery thereof in the form of
certificated Notes to be registered in the name of such Person as provided in Section 2.13(e);
provided that, if the transferee takes delivery in the form of a Restricted Note, the
Note Registrar shall have received a Restricted Notes Certificate, satisfactory to
it and duly executed by the transferor holder or his attorney duly authorized in
writing; provided, further, that, if such interest is a beneficial interest in the
Restricted Global Note, then such interest shall be exchanged for, or transferred to a
Person who takes delivery thereof in the form of, a Restricted Note (subject to Section 2.13(k)).
A Restricted Note or Regulation S Note that is not a Global Note may be exchanged for
or transferred to a Person who takes delivery thereof in the form of a beneficial
interest in a Global Note only if (A) such exchange occurs in connection with a transfer 

- 22 -

effected in accordance
 with clause  (f)(iii) or (iv) above or (B) such Note is a Regulation S Note and such
 exchange or transfer  occurs after the
                                            Distribution Compliance Period.

(vii)
Regulation S Global Note to be Held Through Euroclear or Clearstream during
Distribution Compliance Period. The Issuer shall use
its best efforts to ensure that, until the
expiration of the Distribution Compliance Period, beneficial interests in the
Regulation S Global Note may be held only in
or through accounts maintained by Euroclear or Clearstream (or by Agent Members
acting for the account thereof), and no
Person shall be entitled to effect any transfer or exchange that would result in any such
interest being held otherwise than in or
through such an account; provided, that this clause (f)(vii) shall not prohibit any
transfer or exchange of such an interest in
accordance with clause (f)(ii) above.  

(g)           All
Notes issued upon any  registration  of transfer or exchange of Notes shall be the valid
 obligations  of the Issuer,  evidencing the same debt,                              and
entitled to the same  security and benefits  under this  Indenture  and the other
 Transaction  Documents,  as the Notes  surrendered  upon such
                             registration of transfer or exchange.

(h)           Every
Note in definitive  form  presented or surrendered  for  registration  of transfer or
exchange shall be duly endorsed,  or be accompanied by a
                             written  instrument of transfer or exchange in form
 satisfactory to the Issuer and the Note Registrar or any transfer  agent,  duly executed
by the                              Noteholder  thereof or such  Noteholder's  attorney
duly  authorized in writing.  To permit  registrations  of transfers and  exchanges,  the
Issuer                              shall,  subject to the other terms and  conditions
 of this  Article 2,  execute,  and the Trustee  shall  authenticate,  Global  Notes and
Notes in                              definitive form at the Note Registrar's request.

(i)           No
service charge shall be required of any Noteholders  participating  in any transfer or
exchange of Notes in respect of such transfer or exchange,
                             but the Note Registrar may require  payment of a sum
sufficient to cover any Tax that may be imposed in connection  with any transfer or
exchange of                              Notes, other than exchanges pursuant to Section
2.13(c) not involving any transfer.

(j)           The Note
Registrar  shall not be required  (x) to issue,  register the transfer of or exchange any
Note during a period  beginning at the opening of                              business
15 days before the day of the mailing of a notice of  redemption  of Notes  selected for
 redemption  under  Section 4.4  and ending at the                              close of
business on the day of such mailing or (y) to issue,  register the transfer of or
exchange any Note so selected for  redemption in whole or                              (z) to
 issue,  register the transfer of or exchange any Note during any period  designated  in
the text of such Note as a period  during which such
                             issuance, registration for transfer or exchange need not be
made.

(k)            If
Notes are issued upon the  transfer,  exchange or  replacement  of Notes not bearing a
 Restrictive  Legend,  the Notes so issued shall not bear a  Restrictive Legend.  If
Notes are issued upon the transfer,  exchange or replacement of Notes bearing a
Restrictive  Legend,  or if a request is made to remove the  Restrictive  Legend on a
Note,  the Notes so issued shall bear a  Restrictive  Legend,  or the  Restrictive
 Legend shall not be removed,  as the case may be,  unless (i) such Notes are  exchanged
in an exchange offer  registered  under the Securities Act pursuant to which Notes
 originally  issued pursuant to an exemption from the Securities Act are exchanged for
Notes of like principal amount not bearing a Restrictive Legend, including, without
limitation, the exchange of Exchange Notes for

- 23 -

Initial Notes in
accordance  with the  Registration  Rights  Agreement,  (ii) such Notes are otherwise
sold under an effective  registration  statement  under the
                             Securities  Act,  (iii) such  Notes are issued upon the
transfer,  exchange or replacement  of Notes bearing the  Restrictive  Legend  applicable
to                              Regulation S  Notes  provided for in  Exhibit A(2)
 hereto and the  Distribution  Compliance  Period has expired,  or (iv) there is
delivered to the                              Issuer such satisfactory evidence,  which
may include an Unrestricted Notes Certificate,  the form of which is attached as Exhibit H,
and an opinion                              of  independent  legal  counsel in the State
of New York, as may be reasonably  required by the Issuer that neither the  Restrictive
 Legend nor the                              restrictions  on transfer set forth therein
are required to ensure that  transfers  thereof  comply with the  provisions  of Rule 144A,
 Rule 144 or                              Regulation S  under the Securities Act or that
such Notes are not "restricted  securities"  within the meaning of Rule 144 under the
Securities Act.                              Upon provision of such  satisfactory
 evidence,  the Trustee,  at the direction of the Issuer,  shall  authenticate and
deliver a Note that does not                              bear the  Restrictive  Legend.
 The Issuer agrees to indemnify  the Trustee for, and to hold it harmless  against,  any
loss,  liability or expense,                              including the fees and expenses
of counsel,  reasonably  incurred,  arising out of or in connection  with actions taken
or omitted by the Trustee in                              reliance upon such legal
opinion and the delivery of a Note that does not bear a Restrictive Legend.

(l)           The
transfer and exchange of beneficial  interests in a Global Note for  beneficial
 interests in another  Global Note, of Notes in definitive  form
                             for beneficial  interests in a Global Note or of beneficial
 interests in a Global Note for Notes in definitive form shall be effected in accordance
                             with the Applicable  Procedures.  In connection with such a
transfer,  the Note Registrar,  DTC, Euroclear or Clearstream may require the transferor
                             to deliver,  in addition to any other  documents  required
to be  delivered  pursuant to this  Article 2,  a written  order in  accordance  with the
                             Applicable  Procedures  containing  information  regarding
the Agent  Member's  account to be credited with a beneficial  interest in the applicable
                             Global Note and/or the Agent Member's account to be debited
in an amount equal to the beneficial  interest in the Global Note being transferred,  as
                             the case may be.

2.14
          Mutilated, Destroyed, Lost and Stolen Notes

(a)           If (i) any
 mutilated or defaced Note is surrendered to the Trustee,  or the Issuer and the Note
Registrar and the Trustee receive evidence to their
                             satisfaction of the destruction,  loss or theft of any Note,
and (ii) there is delivered to the Issuer,  the Note Registrar and the Trustee evidence
                             to their  satisfaction  of the ownership and  authenticity
 thereof,  and such security or indemnity as may be required by them to save each of them
                             harmless,  then,  in the  absence of notice to the  Issuer,
 the Note  Registrar  or the  Trustee  that such Note has been  acquired  by a bona fide
                             purchaser,  the Issuer shall execute and upon the Issuer's
request the Trustee shall  authenticate and make available for delivery,  in exchange for
                             or in lieu of any such mutilated,  destroyed,  lost or
stolen Note, a new Note of like tenor,  interest rate and principal amount,  bearing a
number                              not then  outstanding  and  registered  in the same
manner.  If, after the delivery of such new Note, a bona fide  purchaser of the original
Note in                              lieu of which such new Note was issued  presents for
payment such  original  Note,  the Issuer and the Trustee shall be entitled to recover
such new                              Note from the Person to whom it was delivered or
any Person taking  therefrom,  except a bona fide purchaser,  and shall be entitled to
recover upon                              the  security  or  indemnity  provided
 therefor  to the extent of any loss,  damage,  cost or  expenses  incurred  by the
Issuer or the  Trustee in                              connection therewith.

- 24 -

(b)
          Notwithstanding  the foregoing,  in case any such mutilated,  destroyed,  lost
or stolen Note has become or is about to become due and payable,  the
                             Issuer,  upon  satisfaction of the conditions set forth in
clauses (i) and (ii) of clause (a) hereof and subject to the prior written consent of the
                             Central Bank of Brazil, may, instead of issuing a new Note,
pay such Note.

(c)           Upon the
 issuance of any new Note under this  Section 2.14,  the Issuer may require  the payment
of a sum  sufficient  to cover any Tax that may be                              imposed
in relation thereto and any other expenses (including the fees and expenses of the
Trustee reasonably incurred) connected therewith.

(d)           Every
new Note  issued  pursuant  to this  Section 2.14  in lieu of any  mutilated,  destroyed,
 lost or stolen  Note shall  constitute  an original
                             additional contractual obligation of the Issuer,  whether or
not the mutilated,  destroyed,  lost or stolen Note shall be at any time enforceable by
                             anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Notes duly issued hereunder.

(e)           The
 provisions  of this  Section 2.14  are exclusive  and shall  preclude (to the extent
 lawful) all other rights and remedies with respect to the
                             replacement or payment of mutilated, destroyed, lost or
stolen Notes.

2.15           Payments

(a)           The
Issuer hereby  acknowledges and confirms that it is and at all times shall remain
 absolutely and  unconditionally  obligated to pay all amounts
                             due and owing by the Issuer  hereunder  and under any other
 Transaction  Document,  as the same shall become due and owing,  subject  however to it
                             being in compliance  with the  subordination  conditions of
Resolution  2837. If in respect of any Interest Period there are  insufficient  funds in
                             the Reserve  Account to meet the Issuer's  interest  payment
 obligations  on the relevant  Interest  Payment  Date,  the Issuer shall deposit funds
                             necessary to pay such  obligations,  unless a Currency
 Inconvertibility/Non-Transfer  Event has occurred and is  continuing on such date and
unless                              otherwise  stated in the  subordination  conditions
of Resolution  2837,  in  immediately  available  funds in U.S.  dollars to the Payment
 Account                              provided for herein by 11.00 a.m.  (New York City
time) on the relevant  Interest  Payment Date. In the event that there are sufficient
funds in the                              Reserve Account and no Currency
 Inconvertibility/Non-Transfer  Event has occurred and is continuing on the relevant
date, all payments of principal                              and interest required to be
made by the Issuer hereunder shall be made by the Issuer depositing  immediately
 available funds in U.S. dollars to the                              Payment  Account
 provided for herein by 11.00 a.m.  (New York City time) on the date such payments are
due to the  Noteholders.  To the extent that                              on the relevant
 Interest  Payment Date,  surplus funds have been deposited by or on behalf of the Issuer
in the Payment  Account,  the Trustee will                              remit such funds
to the  Issuer on such  date;  provided  however,  that on such date no  amounts  are
then due and owing to the  Insurer  under the                              Insurance
Policy.

(b)            So long
as any of the Notes remain  Outstanding,  the Issuer will  maintain one or more agents in
the Borough of Manhattan in New York City to whom (i) the  Notes may be presented for
payment and (ii) the Notes may be presented for exchange,  transfer,  redemption or
 registration  of transfer as provided in this Indenture and (iii) where notices to and
demands upon the Issuer in respect of the  Indenture and the Notes may be served.  The
Issuer may have one or more  additional  Paying  Agents.  Unless  otherwise specified,

- 25 -

the Issuer hereby
 initially  designates the Corporate Trust Office as the office to be maintained by it
for each such purpose and where the Note Register will be
                             maintained.  If the Issuer  shall fail to so  designate  or
maintain  any such office or agency or shall fail to give such notice of the location or
                             of any change in the location  thereof,  presentations  and
demands may be made and notices may be served at the Corporate  Trust Office.  Principal
                             or interest on any Note that is payable on any Interest
 Payment Date or the Maturity Date or earlier as provided  herein upon any  acceleration
 of                              the Notes shall be paid to the Person in whose name that
Note (or one or more  Predecessor  Notes) is registered at the close of business,  New
York                              City time,  on the Record Date for such  payment.
 Payment of principal  of and interest on the Notes shall be made at the Place of Payment
 payable                              as provided herein.  Payments in respect of Global
Notes will be made by wire transfer of immediately  available funds to the accounts of,
or to the                              order of DTC,  Euroclear or  Clearstream,  as the
case may be. No Notes need be  surrendered in order to receive  payment of principal,
 interest or                              other amounts as provided  herein,  except in
connection  with a redemption of the Notes pursuant to Section 4.2  and in connection
with the payment                              of principal on the Maturity Date.

(c)           Subject
to the foregoing  provisions of this Section 2.15,  each Note delivered under this
Indenture upon registration of transfer of or in exchange
                             for or in lieu of any other Note shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other Note.

(d)           Claims
 against the Issuer (if any) for payment in respect of the  Notesshall be prescribed and
become void unless made within a period of six years                              from
the appropriate payment date thereof.

2.16           Taxation

(a) All
payments of or in respect of principal and interest on the Notes and other amounts,
if any, hereunder shall be made free and clear of, and
without withholding or deduction for or on account of, any
present or future taxes, penalties, fines, duties, assessments or other governmental
charges (or interest on any of the foregoing) of whatsoever
nature imposed, levied, collected, withheld or assessed by, within or on behalf of
Brazil, the Cayman Islands and, in the event that the
Issuer appoints any additional Paying Agents, the jurisdiction of such additional
Paying Agents, or, in each case, any political subdivision
or governmental authority thereof or therein having power to tax ("Taxing
Jurisdiction", and such taxes, penalties, fines, duties,
assessments or charges, collectively, "Taxes"), unless such withholding or deduction is
required by law. In the event that any withholding or
deduction for or on account of any Taxes is required, the Issuer shall pay such
additional amounts ("Additional Amounts") as may be
necessary to ensure that the amounts received by the Noteholders after such
withholding or deduction shall equal the respective
amounts of principal and interest that would have been receivable by such Noteholders
in the absence of such withholding or deduction. The Issuer
will not, however, pay any Additional Amounts in connection with any Tax that is imposed
due to any of the following:  

(i)            the
 Noteholder or beneficial  owner has some  connection  with the Taxing  Jurisdiction
 other than merely  holding the Notes or receiving  principal or interest payments on the
Notes (such as citizenship, nationality, residence, domicile, or existence of a business,
a permanent establishment, a dependent agent, a place of

- 26 -

business or a place of
management present or deemed present within the Taxing Jurisdiction);

(ii)           any tax
imposed on, or measured by, net income of the Noteholder;

(iii)          the
Noteholder or beneficial owner fails to comply with any certification,  identification or
other reporting requirements concerning                                             its
nationality,  residence,  identity or connection with the Taxing  Jurisdiction,  if (i) such
compliance is required by applicable                                             law,
regulation,  administrative practice or treaty as a precondition to exemption from all or
a part of the Tax, (ii) the Noteholder                                             or
beneficial  owner is able to comply with such  requirements  without undue  hardship and
(iii) at least 30 days prior to the first
                                            payment date with respect to which such
requirements under the applicable law,  regulation,  administrative  practice or treaty
shall                                             apply, the Issuer has notified all
Noteholders that they will be required to comply with such requirements;

(iv) the
Noteholder fails to surrender (where surrender is required) its Note within 30 days
after the Issuer has made available to the
Noteholder a payment of principal or
interest, provided, that the Issuer will pay Additional Amounts to which a Noteholder
would have been entitled had the Note owned
by such Noteholder been surrendered on any day (including the last day) within such
30-day period; 

(v)            any
estate, inheritance, gift, value added, use or sales taxes or any similar taxes,
assessments or other governmental charges;

(vi)           where
such  withholding or deduction is imposed on a payment on the Notes to an individual and
is required to be made pursuant to any
                                            European Union Directive on the taxation of
savings  implementing the conclusions of the Economic and Financial  Council of Ministers
                                            of the member states of the European Union
(ECOFIN)  Council  meeting of  November 26-27,  2000 or any law  implementing or
complying                                             with, or introduced in order to
conform to, such Directive; or

(vii)          where
the Noteholder or beneficial  owner could avoid such withholding or deduction by
requesting that a payment on the Notes be made
                                            by, or presenting the relevant Notes for
payment to, another Paying Agent located in a Member State of the European Union.

(b)           The
Issuer will (i) make  such  withholding  or deduction on its payments of principal and
interest on the Notes as required by the relevant  Taxing
                             Jurisdiction  and (ii) remit the full amount  withheld or
deducted to the relevant  taxing  authority in accordance  with applicable law. The
Issuer                              will furnish to the Trustee,  within 30 days after
the date of payment of any such Taxes due pursuant to  applicable  law,  certified
 copies of tax                              receipts  or, if such  receipts  are not
 obtainable,  documentation  evidencing  such  payment.  Upon  request,  copies of such
 receipts  or other                              documentation, as the case may be, will
be made available to the Noteholders.

(c)            At
least 10 Business Days prior to the first Interest  Payment Date for the Notes,  and, if
there has been any change with respect to the matters set forth in the below-mentioned
 certificate  at least 10 Business  Days prior to each  Interest  Payment Date for the
Notes,  the Issuer shall  furnish to the Trustee an Officers'  Certificate instructing
the Trustee as to any circumstances in which payments of principal of or interest on the
Notes (including

- 27 -

Additional  Amounts)
 due on such date  shall be  subject to  deduction  or  withholding  for or on  account
 of any Taxes and the rate of any such  deduction  or
                             withholding and certifying  that the Issuer shall pay all
amounts  required to be deducted or withheld to the  appropriate  governmental
 authority.                              The Issuer  covenants to indemnify the Trustee
and any other Paying Agents for, and to hold each harmless  against,  any loss,
 liability or expense                              reasonably  incurred without
 negligence,  bad faith or willful  misconduct on their part, arising out of or in
connection with actions taken or not                              taken by any of them in
reliance on any  certificate  furnished to them pursuant to this  paragraph or the
failure to furnish any such  certificate.                              The  obligations
 of the Issuer under the preceding  sentence  shall survive the  resignation  or removal
of the Trustee,  the Note Registrar or any                              Paying Agent,
 payment of the Notes and the  termination  of this  Indenture for a period of three
years after the redemption and payment in full of                              the Notes.
 Any  certificate  required by this Section to be provided to the Trustee and any other
Paying Agent shall be deemed to be duly  provided                              if
 telecopied  to the Trustee and such other Paying  Agent.  Upon  request,  the Issuer
shall  provide the Trustee  with  documentation  reasonably
                             satisfactory  to the  Trustee  evidencing  the  payment of
taxes in respect of which the  Issuer  has paid any  Additional  Amounts.  Copies of such
                             documentation shall be made available by the Trustee to the
Noteholders or the other Paying Agents, as applicable, upon request therefor.

(d)           The
Issuer shall  promptly pay when due any present or future  stamp,  administrative,  court
or  documentary  taxes or any other excise or property
                             taxes, charges or similar levies that arise in a Taxing
Jurisdiction from the execution,  delivery,  enforcement or registration of each Note or
any                              other document or instrument  referred to herein or
therein.  The Issuer shall  indemnify and make whole the  Noteholders  for any present or
future                              stamp,  court or  documentary  taxes or any other
 excise or property  taxes,  charges or similar  levies  payable by the Issuer as
provided in this                              clause (d) paid by such Noteholders.

(e)           All
 references  in this  Indenture to  principal,  interest,  and other  amounts  payable
 hereunder  shall be deemed to include  references to any
                             Additional Amounts payable under this Section with respect
to such principal,  interest,  or other amounts. The foregoing  obligations shall survive
                             any termination, defeasance or discharge of the Notes and
this Indenture.

(f)           If the
Issuer shall at any time be required to pay Additional  Amounts to Noteholders  pursuant
to the terms of this Indenture,  the Issuer will use                              its
 reasonable  efforts to obtain an exemption  from the payment of (or  otherwise  avoid
the  obligation to pay) the Tax which has resulted in the
                             requirement that it pay such Additional Amounts.

(g)           The
Issuer agrees that, if the conclusions of the ECOFIN Council meeting of  November 26-27,
 2000 are implemented,  it will maintain a paying agent                              in
an EU member state that will not be obligated to withhold or deduct tax pursuant to the
Directive.

2.17           Persons
Deemed Owners

Prior to due
presentment of a Note for registration of transfer,  the Person in whose name any Note is
registered shall be deemed to be the owner of such Note for                the purpose of
receiving payment of principal of and interest on such Note and for all other purposes
whatsoever,  whether or not such Note be overdue, regardless                of any notice
to anyone to the contrary.

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2.18
          Cancellation

All Notes  surrendered
for payment,  redemption,  registration of transfer or exchange or deemed lost or stolen
shall, if surrendered to any Person other than the                Trustee,  be delivered
to the Trustee for  cancellation  and may not be reissued or sold. The Issuer may at any
time deliver to the Trustee for  cancellation  any                Notes  previously
 authenticated  and delivered  hereunder which the Issuer may have acquired in any manner
 whatsoever.  All Notes so delivered shall be promptly                canceled by the
 Trustee.  No Notes shall be  authenticated  in lieu of or in exchange  for any Notes
 canceled as provided in this  Section,  except as expressly                permitted by
this Indenture.  All canceled Notes held by the Trustee shall be held by the Trustee in
accordance  with its standard  retention  policy,  unless the                Issuer shall
direct by an Issuer Order that they be returned to it.

2.19
          Allocation of Principal and Interest

Each payment of
principal of and interest on each Note shall be applied, first, to the payment of
accrued but unpaid interest (other than Additional Interest Amounts
but including Amounts in Arrears), and any Additional Amounts related thereto to the
date of such payment, second, to the payment of accrued and unpaid
Additional Interest Amounts, and any Additional Amounts related thereto,
and third, the balance, if any, on the Maturity Date or Optional Redemption Date to the
payment of the principal amount of such Note remaining unpaid, and any
Additional Amounts related thereto.  

2.20
          Noteholder Lists

The Trustee shall
preserve in as current a form as is reasonably  practicable  the most recent list
available to it of the names and addresses of Noteholders  and                shall
otherwise comply with  Section 312(a)  of the Trust Indenture Act. If the Trustee is not
the Note Registrar,  or to the extent otherwise  required under the                Trust
 Indenture Act, the Issuer shall furnish to the Trustee,  in writing at least seven
Business Days before each Interest  Payment Date and at such other times
               as the Trustee may request in writing,  a list in such form and as of such
date as the Trustee may reasonably  require of the names and addresses of  Noteholders,
               and the Issuer shall otherwise comply with Section 312(a) of the Trust
Indenture Act.

2.21
          Temporary Notes

Until  certificates
 representing  Notes are ready for  delivery,  the Issuer may prepare and the Trustee,
 upon receipt of an Issuer  Order,  shall  authenticate                temporary  Notes.
 Temporary Notes shall be  substantially  in the form of certificated  Notes but may have
variations that the Issuer  considers  appropriate for                temporary Notes and
as shall be reasonably acceptable to the Trustee;  provided always that such variations
shall relate only to the forms of the Notes and not to                the terms of
subordination of the Notes.  Without  unreasonable delay, the Issuer shall prepare and
the Trustee shall authenticate  certificated Notes in exchange                for
temporary Notes.  Holders of temporary Notes shall be entitled to all the benefits of
this Indenture.

2.22           CUSIP
Numbers

The Issuer in issuing
the Notes may use “CUSIP”  numbers (if then generally in use),  and, if so, the Trustee
shall use “CUSIP” numbers in notices of redemption as a convenience to Noteholders;
 provided that any such notice may state that no  representation  is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice
of a redemption and that reliance may be placed only on the other identification numbers
printed on

- 29 -

the Notes, and any
such redemption  shall not be affected by any defect in or omission of such numbers.  The
Issuer will promptly notify the Trustee in writing of                any change in the “CUSIP” numbers.

3. ESTABLISHMENT OF ACCOUNTS 

3.1
           Establishment and Administration of Payment Account and Interest Subaccount

(a) On the
Closing Date, the Trustee shall establish and, until the Notes and all amounts due in
respect thereof have been paid in full, maintain a special
purpose, segregated trust account (the "Payment Account") with The Bank of New York
Trust Company (Cayman) Limited for the benefit of the
Noteholders. All payments required to be made by the
Issuer under or with respect to the Notes shall be deposited into the Payment Account.
The Issuer agrees that the Payment Account shall be
maintained in the name of the Trustee and under its sole dominion and control (for the
benefit of the Noteholders and the Trustee, and, after the
payment of any claim under the Insurance Policy, the Insurer) and used solely to make
payments of principal, interest and other amounts from
time to time due and owing on, or with respect to, the Notes and to make payments to the
Insurer after payment of any claims under the Insurance
Policy in accordance with Condition 8 of the Insurance Policy. No funds contained
in the Payment Account shall be used for any other purpose
or in any manner not expressly provided for herein nor shall the Issuer or any other
Person have an interest therein or on amounts on deposit
therein. In addition, on the Closing Date, the Trustee shall establish and, until
the Notes and all amounts due in respect thereof have been
paid in full, maintain a segregated subaccount of the Payment Account (the "Interest
Subaccount"), into which the Insurer shall deposit all
payments required to be made under the Insurance Policy and into which the Trustee
shall deposit amounts withdrawn from the Reserve Account
pursuant to Section 3.2(e).  

(b) The
Trustee shall apply all such funds as from time to time are on deposit in the Payment
Account, other than funds on deposit in the Interest
Subaccount, to all such amounts as are due to the
Noteholders pursuant to this Indenture; provided, however, that after any claim
payment by the Insurer, such funds shall first be applied
to reimburse the Insurer in accordance with the provisions of Condition 8 of the
Insurance Policy. All such funds shall be applied
ratably, without preference or priority of any kind among Noteholders, in accordance
with the Indenture; provided, however, that after any
payment by the Insurer, such funds shall first be applied to reimburse the Insurer in
accordance with the provisions of Condition 8 of the
Insurance Policy. If these funds are insufficient to pay such amounts as are due on
any Payment Date, then such funds shall be paid ratably,
without preference or priority of any kind among Noteholders, in the following order
of priority: first, to the payment of all amounts due to
the Trustee under the first two sentences of Section 8.5(a) hereof; second, to the
payment of all amounts due to the Insurer under Condition 8
of the Insurance Policy; third, to the payment of accrued and unpaid interest
including, if any, Increased Interest (other than
Additional Interest Amounts), and any Additional Amounts
related thereto; fourth, to the payment of accrued and unpaid Additional Interest
Amounts, and any Additional Amounts related thereto; fifth,
on the Maturity Date or Optional Redemption Date, to the payment of principal, and any
Additional Amounts related thereto; sixth, to the payment of
all amounts due to the Trustee under the indemnity contained in Section 8.5(a) hereof.  

- 30 -

(c)      In the event
that a Currency  Inconvertibility/Non-Transfer  Event has occurred and is continuing  and
the amounts on                   deposit in the Payment  Account,  other than amounts on
deposit in the Interest  Subaccount,  are insufficient to pay                   such
accrued and unpaid  interest as is due on any Payment  Date,  the Trustee  shall apply
all funds as from time to                   time are on deposit in the Interest
 Subaccount,  whether due to payments received from the Insurer or transfers from
                  the  Reserve  Account,  to the  payment of accrued  and  unpaid
 interest  due to the  Noteholders  pursuant  to this                   Indenture.  All
such funds shall be applied ratably,  without  preference or priority of any kind among
 Noteholders,                   in  accordance  with the  Indenture.  If these funds are
 insufficient  to pay such amounts in respect of accrued and                   unpaid
interest as are due on any Payment Date (after receipt of funds from the Reserve
 Account,  if any), then such                   funds shall be paid ratably, without
preference or priority of any kind among Noteholders,  in the following order of
                  priority:  first, to the payment of accrued and unpaid interest
 including,  if any,  Increased  Interest (other than                   Additional
Interest Amounts),  and any Additional Amounts related thereto;  and second, to the
payment of accrued and                   unpaid  Additional  Interest  Amounts in respect
of interest  deferred  pursuant to  Section 2.8,  and any Additional
                  Amounts related thereto.

3.2      Establishment
and Administration of Reserve Account

(a) On the
Closing Date, and until the Notes and all amounts due in respect thereof have
been paid in full to the Trustee, the Trustee shall establish and
maintain a special purpose, segregated trust account which shall to the
extent permitted by law and/or regulations and available be an
interest bearing account (the "Reserve Account") with The Bank of New
York Trust Company (Cayman) Limited for the benefit of the Noteholders. The Reserve
Account shall initially be funded (i) by the Insurer in an amount equal
to U.S.$21,875,000 (the "Advance Payment"), which shall be the
Initial Refundable Premium, and shall be equal to the sum of six months of interest
on the Notes at the Note Rate payable in accordance with the provisions
of the Insurance Policy, and (ii) by the Issuer in an amount equal to
U.S.$22,500, which is equal to 18 months of the Trustee’s fees and
certain expenses hereunder. The funds so deposited in the Reserve
Account shall be deemed to satisfy the Insurer's obligation under the Insurance Policy
to cover the Insurer's payment obligation under the Insurance Policy in
an amount equal to the Advance Payment.  

(b)      The Issuer
 agrees  that the  Reserve  Account  shall be  maintained  in the name of the  Trustee
 and under its sole                   dominion and control (for the benefit of the
Noteholders and the Trustee) and,  subject to Section 3.2(g) and Section
                  14 below,  used solely to make payments of interest from time to time
due and owing on, or with respect to, the Notes                   pursuant to  Section 3.2(f)
 hereof. No funds contained in the Reserve Account shall be used for any other purpose or
                  in any  manner  not  expressly  provided  for  herein,  nor shall the
 Issuer or any other  Person  have any right of                   withdrawal or any other
interest therein or in any Permitted  Investments purchased pursuant to Section 3.2(c) or
any                   proceeds  thereof other than as set out in Section  3.2(d) below.
 Funds in the Reserve  Account shall not constitute                   payment for any of
the  obligations of the Issuer under this Indenture or the Notes other than  hereinafter
 provided                   upon the occurrence and continuance of a Currency
Inconvertibility/Non-Transfer Event.

(c)      So long as no
Currency  Inconvertibility/Non-Transfer Event shall have occurred and be continuing, the
funds on deposit in the Reserve  Account may, at the direction of the Issuer,  be
invested by the Trustee in Permitted  Investments  selected by the Issuer and at the
written direction of the Issuer; provided, that all Permitted Investments purchased by

- 31 -

the Trustee  during
any Interest  Period must mature no later than two  Business  Days prior to the
                  next succeeding Interest Payment Date occurring after the investment of
such amounts.  All                   Permitted  Investments  and any proceeds  thereof
shall be credited to the Reserve Account                   and shall at all times be
issued or  registered  in the name of the  Trustee.  The Trustee                   shall
have no liability for any losses resulting from any such Permitted Investments.

(d)      All  interest
 earned on amounts on deposit in the  Reserve  Account  shall be paid by the
                  Trustee into an account specified in writing by the Issuer.

(e)      To the extent
that the Trustee has at the request of the Issuer  invested funds on deposit
                  in the Reserve  Account in Permitted  Investments of the type referred
to in  clauses (ii)                   and (iv)  thereof,  if the  Trustee  receives
 written  notice  of the  occurrence  of any                   decrease  in  the  rating
 of  any  Permitted  Investment  of  the  type  referred  to  in                   clauses (ii)
 and (iv) thereof to a level below "P1", the Trustee shall reinvest the funds
                  invested  in such  Permitted  Investment  as  soon as  practicable  in
 another  Permitted                   Investment in accordance with the written
instructions of the Issuer.

(f) If, during
the continuance of a Currency Inconvertibility/Non-Transfer Event, the funds
on deposit in the Payment Account are insufficient to pay all accrued
and unpaid interest due on the Notes on any Payment Date (including,
without limitation, any interest at the Arrears Rate), and provided
the Trustee has received a Proof of Loss from the Issuer, the Trustee
shall, on each Payment Date, withdraw from the Reserve Account and pay to the
Interest Subaccount, to the extent that funds are available therefor,
an amount equal to the amount of accrued and unpaid interest due on
the Notes (including Amounts in Arrears and Additional Interest
Amounts) on such Payment Date less any amounts on deposit in the
Payment Account on such date; provided that the Trustee shall not
withdraw funds from the Reserve Account and pay such funds to the
Interest Subaccount if, on such date, amounts are payable under the
Insurance Policy, except for any such funds necessary to pay any
interest on interest not paid or delayed other than due to a default
by the Insurer under the Insurance Policy. 

(g)      (i) In the
event  that,  at any time prior to or on the  Maturity  Date,  a  Subordination
                  Event (as defined in Section 14.6) shall have occurred and be
continuing,  irrespective of                   whether  a  Currency
 Inconvertibility/Non-Transfer  Event  shall  have  occurred  and  be
                  continuing,  the Trustee  shall (i) cease to make any  payments  of
interest  owing on, or                   with respect to, the Notes pursuant to Section
3.2(b) above,  and (ii) cease to invest the                   funds on deposit  in the
 Reserve  Account at the  direction  of the  Issuer  pursuant  to
                  Section 3.2(c) above.

(ii) In the event
that,  at any time prior to or on the  Maturity  Date,  a  Subordination
                  Event shall have  occurred and be  continuing,  and the Issuer  shall
not have  sufficient                   funds to make all payments due in respect of any
Other  Obligations  or the payment of any                   Other  Obligations has been
 accelerated,  the Trustee shall,  upon being informed of such
                  insufficiency  by the  Issuer,  pay to the  Issuer  the funds on
 deposit  in the  Reserve                   Account.

(iii) In the event of
any  liquidation,  dissolution  or other  winding  up of the  Issuer
                  prior to or on the Maturity  Date,  whether  voluntary or  involuntary
 and whether or not                   involving insolvency or bankruptcy, the provisions
of Section 14.2 below shall apply.

- 32 -

(iv) In the event
that,  prior to or on the  Maturity  Date, a  Subordination  Event shall
                  have  occurred  and shall no  longer be  continuing  and  shall not
have  resulted  in the                   payment by the  Trustee of the funds on  deposit
in the  Reserve  Account to the Issuer as                   provided  above,  the Trustee
shall continue to control and manage the Reserve Account and                   use the
 funds on  deposit  therein  in  accordance  with  those  terms of this  Indenture
                  applicable where no Subordination Event has occurred and is continuing.

(h)      As soon as
 practicable  after and in any event prior to the earlier of (i) five  Business
                  Days after the  cessation of any Currency
 Inconvertibility/Non-Transfer  Event in respect                   of which amounts have
been paid to the  Noteholders  from the Reserve Account and (ii) one
                  Business  Day  before  the  Interest  Payment  Date  immediately
 succeeding  the  date of                   cessation of a Currency
 Inconvertibility/Non-Transfer  Event in respect of which  amounts                   have
been paid to the  Noteholders  from the Reserve  Account,  the Issuer shall replenish
                  the Reserve  Account up to an amount equal to the sum of the Advance
Payment and an amount                   equal to the  interest  that would accrue on the
Notes at the Arrears Rate during a 30-day                   period,  provided,  that this
Section  3.2(h) shall be  applicable  only if the  Insurance                   Policy is
still in full force and effect  and has not lapsed and that the  maximum  amount
                  payable under the Insurance  Policy has not become due and payable in
accordance  with its                   terms.

(i)      Upon
 satisfaction  by the  Issuer  of its  payment  obligations  under  the  Notes on the
                  Maturity  Date,  the Trustee shall pay all funds on deposit in the
Reserve  Account to the                   Issuer no later than one Business Day after the
later of (i) the Maturity  Date,  and (ii)                   the date upon which all
amounts due in respect of the Notes have been paid in full.

4. REDEMPTION

4.1      No General
Optional Redemption

(a)      The Issuer
 shall have no right to redeem all or any  portion of the Notes  prior to their
                  Maturity Date except as provided in Section 4.2.

(b)
     Notwithstanding  the  provisions  of  Section 4.2,  the  Issuer  may not  redeem the
Notes                   pursuant to Section 4.2  (i) prior to the earlier of the fifth
 anniversary of the Closing                   Date and such date as redemption  pursuant
to Section 4.2  may be permitted by the Central                   Bank of Brazil and any
other applicable Brazilian  Governmental  Authority and (ii) on any
                  date on which a Currency Inconvertibility/Non-Transfer Event is
subsisting.

4.2      Optional
Redemption in the Event of Change in Tax Treatment

Subject to Sections 2.8
and 4.1(b), the Notes may be redeemed at the election of the Issuer, as a whole, but
not in part, at any time upon the giving of notice as provided in Section 4.4,
solely if (i) the Issuer certifies to the Trustee in writing immediately prior to
the giving of such notice that it has or will become obligated to pay Additional
Amounts with respect to the Notes in excess of the Additional Amounts which the
Issuer would be obliged to pay if payments of interest under the Notes were subject to
withholding or deduction at a rate of 15% as a result of any generally applicable
change in or amendment to the laws or regulations of a Taxing Jurisdiction, or any
generally applicable change in the application or official interpretation of such laws
or regulations, which change or amendment, in each case, occurs after the date of
issuance of any of the Notes, (ii) such obligation cannot be avoided by the
Issuer taking reasonable measures available to it and (iii) the Central Bank of
Brazil has approved such redemption; provided, 

- 33 -

however, that no such
notice of redemption shall be given earlier than 60 days prior to the
earliest date on which the Issuer would be obligated to pay such Additional
Amounts, if a payment in respect of the Notes were then due. Prior to the
giving of any notice of redemption of the Notes pursuant to this Section 4.2,
the Issuer shall deliver to the Trustee an Officers' Certificate,
stating that the Issuer is entitled to effect such a redemption pursuant to this
Indenture, and setting forth in reasonable detail a statement of the facts
giving rise to such right of redemption. Concurrently, the Issuer will
deliver to the Trustee a written Opinion of Counsel, in form and substance
satisfactory to the Trustee, stating, among other things, that the Issuer has
become obligated to pay such Additional Amounts as a result of a change or amendment
described in this Section 4.2 and that the Issuer cannot avoid payment of such
Additional Amounts by taking reasonable measures available to it and that all
governmental approvals necessary for the Issuer to effect such redemption
have been obtained and are in full force and effect or specifying any such
necessary approvals that as of the date of such opinion have not been obtained.  

4.3      Optional
Redemption Date

In the event the
Issuer determines to redeem the Notes as permitted hereunder, the Issuer shall be
required to specify in its notice the proposed date of redemption (the "Optional
Redemption Date") and shall pay to the Trustee (on behalf of the Noteholders)
on the Optional Redemption Date an amount equal to the sum of (i) the
aggregate principal amount of the Notes that are then Outstanding, (ii) all
accrued but unpaid interest on the Notes at the applicable Note Rate through and
including the Optional Redemption Date and (iii) all other amounts then due on the
Notes as provided in this Indenture or the Notes (collectively, the
"Optional Redemption Price"). The Notes shall not be deemed repaid and
cancelled unless and until the Trustee shall have received in the Payment
Account the Optional Redemption Price.  

4.4      Notice of
Redemption

Notice of redemption
 contemplated  by Section 4.3  shall be given by the Issuer to the Noteholders
         in  accordance  with  Section 15.4  not less  than 30 nor more than 60 days
 prior to the  proposed          Optional  Redemption  Date (with a copy of such notice
to Moody's and the Insurer).  All notices of          redemption shall state:

(i)      the Optional
Redemption Date;

(ii)     the Optional
 Redemption  Price (as  calculated  as of the specified  Optional  Redemption
                  Date);

(iii)    the names and
addresses of the Paying Agents;

(iv)     that Notes
 called for  redemption  must be  surrendered  to a Paying Agent to collect the
                  Optional Redemption Price;

(v)      that on the
Optional  Redemption  Date the Optional  Redemption  Price will become due and
                  payable  upon each such Note,  and that  interest  thereon  shall cease
to accrue from and                   after said date; and

(vi)     the CINS
and/or CUSIP number, if any.

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4.5      Deposit of
Optional Redemption Price

On any  Optional
 Redemption  Date,  the Issuer  shall  deposit with the Trustee an amount of money
         sufficient to pay the Optional  Redemption  Price of all the Notes.  The Issuer
will cause the bank          through  which  payment on the Notes is to be made to
deliver to each Paying  Agent and the Trustee          by 1:00  p.m.  New York  time,
 one  Business  Day (and if such date is not a  business  day in the
         jurisdiction  of any Paying  Agent,  on the next  preceding  business  day in
such  Paying  Agent's          jurisdiction)  prior to the due date  therefor  such
 irrevocable  confirmation  (by tested  telex,          facsimile,  authenticated  Swift
MT 100/103  Message or by such other method as agreed  between the          Issuer and
the Trustee) of its  intention to make such  payment.  At least one Business Day (and if
         such  date  is not a  business  day in the  principal  Paying  Agent's
 jurisdiction,  on the  next          preceding business day in such Paying Agent's
 jurisdiction) prior to any Optional Redemption Date,          the Issuer will provide to
the principal  Paying Agent a notice regarding the payment by the Issuer          to the
principal Paying Agent of the Optional Redemption Price.

4.6      Notes Payable
on Optional Redemption Date

Notice of Optional
 Redemption  having been given as aforesaid,  the Notes so to be redeemed shall,
         on the Optional  Redemption Date,  become due and payable at the Optional
 Redemption Price therein          specified  and from and after such date  (unless  the
Issuer  shall  default in the  payment of the          Optional  Redemption  Price) such
Notes shall cease to bear interest.  Upon surrender of such Notes          for
 redemption  in  accordance  with the  notice,  such  Notes  shall be paid by the Issuer
at the          Optional  Redemption  Price.  Installments  of interest due on or prior
to the Optional  Redemption          Date shall be payable to the  Noteholders
 registered as such on the relevant  Record Dates. If any          Note  called  for
 redemption  shall not be so paid upon  surrender  thereof  for  redemption,  the
         principal shall,  until paid, bear interest from the scheduled  redemption date
at the Note Rate to          the date that all amounts owing under the Notes shall have
been paid in full.

5.       THE
INSURANCE POLICY

(a)      The Trustee
 acknowledges that the Issuer has purchased the Insurance Policy on its behalf
                  to  provide  for the  benefit  of the  Noteholders  limited  insurance
 against a Currency                   Inconvertibility/Non-Transfer  Event and has
entered into the Consent  Agreement  with the                   Insurer.  The Issuer and
the  Holders  hereby  authorize  and direct the  Trustee to enter                   into
the Insurance Policy.  The Issuer hereby confirms that the Initial Refundable Premium
                  and the Initial  Non-Refundable  Premium  payable in respect of the
Insurance  Policy have                   been paid by the Issuer on or prior to the
Closing Date.

(b) Upon the
Trustee's receipt from the Issuer of a Proof of Loss, the Trustee will promptly,
and in no event later than two Business Days following the receipt by
the Trustee of the Proof of Loss, forward to the Insurer in
accordance with the terms of the Insurance Policy, a Claim Notice
substantially in the form of Exhibit B; provided, however, that the
Trustee will not submit any Claim Notice upon receipt by it of a Proof of Loss from
the Issuer until the entire Advance Payment has been applied
by it pursuant to Section 3.2(f), unless the scheduled interest
payment that is the subject of the Proof of Loss would exceed the
amount of unapplied Advance Payment, in which case the Trustee will
submit a Claim Notice to the Insurer only for such deficiency amount. 

(c)      The Trustee
 agrees to give written  notice to the Insurer (with a copy of such notice to Moody's),
in each case promptly of, and in any event within two Business Days after the  occurrence
of such event,  of (i) any failure by the Issuer to make any payment on or in

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respect of the Notes
required under this  Indenture,  (ii) any  Default or Event of Default,  (iii)
                  any  redemption  or  prepayment  of the Notes before the Stated
 Maturity  Date,  and (iv)                   discovery  by the  Trustee of an event which
it  determines  may give rise to a loss under                   the Insurance Policy.

(d) The Insurer
has agreed to pay any amounts payable under the Insurance Policy (other than
the Advance Payment) directly into the Interest Subaccount. The
Trustee shall hold any such amounts in trust in the Interest
Subaccount for use in making any required payments of interest due
under this Indenture; provided, however, that if, in the time between
receipt of such amounts by the Trustee and the Interest Payment
Date on which such amounts are to be used (in whole or in part)
to pay interest on the Notes, a Subordination Event has
occurred and is continuing on such Interest Payment Date, the
Trustee shall return such amounts (together with accrued interest
thereon) to the Insurer under the Insurance Policy in accordance
with the terms of the Insurance Policy (including, without
limitation, Condition 8 thereof), subject to the obligations of the
Insurer to repay such amounts to the Trustee as provided in the
Insurance Policy. 

(e)      The Trustee
shall give all notices,  make all filings and take all actions  required of it
                  pursuant to the terms of the Insurance Policy including,  without
 limitation,  the filing                   of a claim  with the  procedures  and  subject
 to the time  limitations  set forth in the                   Insurance  Policy.  In
connection with its  satisfaction of its obligations  hereunder and
                  under the  Insurance  Policy the Trustee shall  request,  under the
terms of the Indenture                   and the Consent Agreement,  that the Issuer
provide all such information and take all such                   actions as are required
to ensure the continued  enforceability  of the Insurance  Policy,                   and
in connection with the submission of any claim  thereunder and the satisfaction of any
                  requirement provided therein.

(f)
     Notwithstanding  anything to the contrary set forth in this Indenture,  the Insurer
shall,                   to the extent it makes any payment  with respect to the Notes
under the  Insurance  Policy                   (other than the  Advance  Payment  made to
the Trustee on the Closing  Date for deposit in                   the Reserve  Account),
 become subrogated to the rights of the recipients of such payments                   to
the extent of such  payments.  Subject to and  conditioned  upon any such  payment with
                  respect to the Notes by the Insurer,  each  Noteholder  shall be
deemed,  by acceptance of                   its Note,  without further  action,  to have
directed the Trustee to assign to the Insurer                   all rights to the
 payment of  interest  with  respect to the Notes which are then due for
                  payment to the extent of all payments made by the Insurer  under the
Insurance  Policy and                   any other amounts in connection  therewith in
accordance with Condition 8 of the Insurance                   Policy.

(g)      In the event
that the loss adjustment  expenses  incurred by the Insurer in respect of its
                  payment of a claim  under the  Insurance  Policy are the  subject of
dispute  between  the                   Issuer and the  Insurer,  the Issuer  shall pay
the amount of such  expenses in dispute to                   the  Trustee  at the same
 time and in the same  manner  in which it would  have paid such
                  expenses  if they had not been in dispute,  and such amount  shall be
held in trust by the                   Trustee for the  benefit of the Issuer and the
 Insurer  until such time as the dispute is                   resolved.  Upon
 notification  by the Issuer and the Insured of resolution of any dispute,
                  the Trustee shall then apply such loss  adjustment  expenses  pursuant
to the terms of the                   Insurance Policy but in accordance with the terms
of such resolution.

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6.       COVENANTS

For so long as the
Notes remain  outstanding  or any amount remains unpaid on such Notes under this
         Indenture, the Issuer shall comply with the terms and covenants set forth below.

6.1      Payment of
Principal and Interest

(a)      The  Issuer
 will duly and  punctually  pay the  principal  of and  interest,  including  Increased
                  Interest,  if any, and other amounts  (including any  Additional
 Amounts) on the Notes in                   accordance with the terms of the Notes and
this Indenture.

(b)      If the Issuer
shall defer the payment of principal or interest in accordance with Section 2.8,  the
                  Issuer will use reasonable  efforts to reenter into compliance with the
Risk-Based Capital                   Requirements   within  180  days  after   delivery
 of  the   certificate   described   in                   Section 2.8(a).

6.2      Performance
Under the Transaction Documents

(a)      The Issuer
agrees duly and punctually to perform,  comply with and observe all obligations
                  and  agreements to be performed by it under the terms of the Notes and
this  Indenture and                   the other Transaction  Documents  including,
 without  limitation,  payment of premiums in                   respect of the Insurance
 Policy and the delivery of all notices  required to be delivered
                  pursuant to the Insurance Policy.

(b)      The Issuer
shall  promptly  notify the Trustee and the Insurer (with a copy of such notice
                  to  Moody’s) of (i) the  occurrence  of any event of default  under the
Consent  Agreement                   and of any event or condition  known to any of its
officers  that with the passage of time                   or the giving of notice would
 constitute  an event of default  under such  agreement  and                   (ii) any
 circumstance  that may render the Insurer  liable  under the  Insurance  Policy,
                  including  if the Issuer  has  reason to believe it will not be able to
convert  Brazilian                   reais and/or transfer U.S. dollars to the Trustee.

(c)      Upon the
 occurrence of a Currency  Inconvertibility/Non-Transfer  Event,  the Issuer will
                  (i) provide  sufficient  evidence to the Insurer to  establish  the
validity of a claim in                   accordance  with the Consent  Agreement,  (ii) segregate
 and maintain  segregated  at all                   times funds in Brazilian reais or
Permitted  Brazilian  Investments (valued at face value)                   at least
 equivalent  in value to the amount of interest in U.S.  dollars for each tranche
                  of the Notes due on the next  Payment  Date  (calculated  based on the
 Reference  Rate of                   Exchange on the Interest  Payment Date on which
 payment  cannot be made due to a Currency
                  Inconvertibility/Non-Transfer  Event) or, if U.S.  dollars are
available but are otherwise                   subject to restrictions on transfer,
 segregate funds in U.S.  dollars equal to the amount                   of interest due
on such Payment Date and  (iii) continue to use reasonable best efforts to
                  convert  funds in an amount equal to the value of the funds and/or
 securities  segregated                   pursuant to clause (ii)  above into U.S.
dollars and to transfer such funds to the Trustee                   or to transfer the
funds segregated in U.S. dollars to the Trustee, as the case may be.

6.3      Maintenance
of Approvals

The Issuer  shall duly
obtain and maintain in full force and effect all  approvals,  consents or licenses of any
Governmental Authority which are necessary under the laws of Brazil, the

- 37 -

Cayman  Islands or any
other  jurisdiction  having  jurisdiction  over the  Issuer or the  Issuer's
         business,  assets or property,  or the transactions  contemplated  herein,  as
well as of any third          party under any  agreement to which the Issuer may be
subject,  in connection  with the  execution,          delivery and  performance of the
Indenture,  the Notes and each other  Transaction  Document by the          Issuer or the
validity or enforceability of any thereof.

6.4      Maintenance
of Books and Records

The Issuer  shall
 maintain  books,  accounts  and records as may be  necessary  to comply with all
         applicable  Laws and so as to enable its financial  statements to be prepared
and allow the Trustee          and any person  appointed  by it free  access to the same
at all  reasonable  times  during  normal          business hours and to discuss the same
with responsible officers of the Issuer.

6.5      Use of
Proceeds

The  Issuer  shall use
the net  proceeds  from the  offer  and sale of the  Notes  for its  general
         corporate purposes.

6.6      Notice of
Defaults and Events of Default

The Issuer will give
written  notice to the Trustee  (with a copy of such notice to Moody's and the
         Insurer),  promptly  and in any  event  within  ten days  after  the  Issuer
 becomes  aware of the          occurrence, of any Default or any Event of Default,
 accompanied by an Officer's Certificate of the          Issuer setting forth the details
 thereof and stating what action that the Issuer  proposes to take          with respect
thereto.

6.7      Notice of
Currency Inconvertibility/Non-Transfer Event and Other Events

The Issuer shall give
written notice to the Trustee (with a copy of such notice to Moody's and the
Insurer), immediately after the Issuer becomes aware (i) of any action
taken by the Brazilian government that could reasonably give rise to a
Currency Inconvertibility/Non-Transfer Event, or (ii) that any Currency
Inconvertibility/Non-Transfer Event has occurred, or (iii) that any
Currency Inconvertibility/Non-Transfer Event has ceased, or (iv) following
the delivery of a certificate pursuant to Section 2.8(a) regarding the
failure to satisfy the Risk-Based Capital Requirements, that the Issuer is no
longer in violation of the Risk-Based Capital Requirements or that the payment
of the applicable interest or principal amount, or any portion thereof, would not
cause the Issuer to violate the Risk-Based Capital Requirements; provided,
that, if the Issuer is unable to make a payment of interest as the same
becomes due and payable in accordance with the provisions of Section 2.15
because of a Currency Inconvertibility/Non-Transfer Event, then it shall
immediately submit a Proof of Loss in the form of Exhibit C(2) to the Trustee. 

6.8      Provision of
Financial Statements and Reports

(a) The Issuer
shall provide to the Trustee, in English or accompanied by a certified English
translation thereof, (A) within 90 days after the end of each fiscal quarter (other
than the second and fourth quarters), Banco Bradesco S.A.'s ("Bradesco") unaudited
and consolidated balance sheet and statements of income for the quarter then ended,
(B) within 120 days after the end of the first two fiscal quarters of each fiscal year,
Bradesco's audited and consolidated balance sheet and statements of income for the
six-month period then ended, (C) within 120 days after the end of each fiscal year,
Bradesco's audited and consolidated balance sheet and statements of income for the year 

- 38 -

then ended,  in each
case described in (A), (B) and (C), in accordance  with  Accounting  Practices
                  Adopted in Brazil and (D) such other publicly available  financial data
as the Trustee may                   reasonably  request;  provided that, any such
financial  statements will be deemed to have                   been delivered on the date
on which  Bradesco has posted such financial  statements on its                   website
at  www.bradesco.com.br  (it being  understood  that the Issuer will (i)  promptly
                  notify the Trustee that it has posted such  financial  statements on
such website and (ii)                   promptly  provide such other  information as the
Trustee may reasonably  request and which                   the Issuer may provide
without violating any applicable law).

(b)      The Issuer
shall provide to the Trustee,  in English or accompanied by a certified English
                  translation  thereof,  (A) within  180 days after the end of each
fiscal year, the audited                   and  unconsolidated  balance  sheet and
 statement of income of the Issuer's  Grand Cayman                   branch,  for the
year then ended,  prepared in  accordance  with  International  Financial
                  Reporting  Standards and (B) such  other publicly  available  financial
data regarding the                   Grand Cayman branch as the Trustee may reasonably
request.

(a)      The Issuer
 shall  provide  (i) to the  Trustee  and the  Insurer,  at the same time as each of the
                  financial  statements is delivered to the Trustee pursuant to clause (b)
above, or (ii) to                   the Trustee within 14 days of any request by the
Trustee an Officer's  Certificate stating                   that a review of the Issuer's
 activities  has been made during the period covered by such                   financial
 statements  with a view to determining  whether the Issuer has kept,  observed,
                  performed and fulfilled its covenants and  agreements  under this
 Indenture;  and that no                   Default  or Event of  Default  has  occurred
 during  such  period or, if one or more have                   actually  occurred,
 specifying  all such events and what actions have been taken and will
                  be taken with respect to such event.

(d)      Following
 the  exchange  offer or the  effectiveness  of a shelf  registration  statement
                  pursuant  to the  Registration  Rights  Agreement,  whichever  is
 earlier,  to the extent                   required by Section 314(a) of the Trust
 Indenture Act, the Issuer shall furnish  promptly                   to the  Trustee
 and, in the manner and to the extent  provided  in Section  313(c) of the
                  Trust Indenture Act and Section 15.4 of this Indenture,  to each of the
Noteholders copies                   of its annual report and the  information,
 documents and other reports that are specified                   in  Sections  13 and
15(d) of the  Exchange  Act.  The Issuer  shall also  comply with the
                  other  provisions of Section 314(a) of the Trust  Indenture  Act. In
addition,  the Issuer                   shall furnish promptly to the Trustee a copy of
any report or other document  furnished to                   its shareholders  (other
than documents that the Issuer is not permitted to disclose under
                  applicable law).

(e)      For so long
as the Notes are listed on the Luxembourg  stock exchange and the rules of the
                  Luxembourg  stock  exchange  so  require,  reports  filed with the SEC
or  required  to be                   provided to the  Noteholders  pursuant to this
 Indenture may be obtained at the office of                   the Luxembourg Paying Agent.

(f)      Delivery of
such reports,  information  and documents to the Trustee is for  informational
                  purposes only and the Trustee’s receipt of such shall not constitute
 constructive  notice                   of any information  contained therein or
determinable from information  contained therein,                   including the Issuer’s
 compliance  with any of its  covenants  hereunder (as to which the
                  Trustee is entitled to rely exclusively on Officers’ Certificates).

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6.9      Further
Actions

The Issuer shall, at
its own cost and expense,  satisfy any condition or take any action (including
         the obtaining or effecting of any necessary consent, approval,  authorization,
 exemption,  filing,          license,  order, recording or registration) at any time
required in accordance with applicable Laws          (as applicable) to be taken,
 fulfilled or done in order to (a) enable the Issuer to lawfully enter          into,
 exercise  its rights  and  perform  and comply  with its  obligations  under the Notes,
 the          Indenture and each of the other  Transaction  Documents,  (b) ensure that
the Issuer's  obligations          under the Notes, the Indenture and each of the other
Transaction  Documents are legally binding and          enforceable,  (c) make  the
 Notes,  the  Indenture  and each of the  other  Transaction  Documents
         admissible  in  evidence in the courts of the State of New York,  Brazil or the
Cayman  Islands and          (d) enable  the  Trustee  to  exercise  and  enforce  its
 rights  under and  carry out the  terms,          provisions and purposes of the
Indenture and each of the other Transaction Documents,  (e) take any          and all
actions  necessary to preserve the  enforceability  of, and maintain the  Trustee's
 rights          hereunder and the other  Transaction  Documents,  including,  without
 limitation,  refraining from          taking any action that  reasonably can be expected
to have an adverse effect on the  enforceability          of, or any of the Trustee's
 rights under,  this  Indenture  and the other  Transaction  Documents,          (f) assist,
 to the extent reasonably practicable,  the Trustee in the Trustee's performance of its
         obligations under this Indenture and the other Transaction Documents.

6.10     Appointment
to Fill a Vacancy in Office of Trustee

The Issuer,  whenever
necessary to avoid or fill a vacancy in the office of Trustee,  shall appoint          in
the manner provided in Section 8.8,  a successor Trustee,  so that there shall at all
times be a          Trustee with respect to the Notes.

6.11     Payments and
Paying Agents

(a)      Subject to
the terms of the Transaction  Documents and to the subordination  conditions of
                  Resolution  2837, the Issuer shall, on the due date of the principal of
or interest on the                   Notes or other  amounts  (including  Additional
 Amounts),  deposit with the Trustee a sum                   sufficient  to pay  such
 principal,  interest  or  other  amounts  (including  Additional
                  Amounts) so becoming due.

(b)      Whenever  the
Issuer  shall  appoint a Paying Agent other than the Trustee with respect to
                  the Notes,  it shall  cause such  Paying  Agent to execute  and
 deliver to the Trustee an                   instrument in which such agent shall agree
with the Trustee,  subject to the provisions of                   this Section:

(i)      that it will
hold all sums  received  by it as such agent for the  payment of the
                           principal of or interest,  including Increased Interest,  if
any, on any Notes in                            trust for the benefit of the  Noteholders
 or of the Trustee or,  after any claim                            payment under the
Insurance Policy, of the Insurer;

(ii)     that it will
give the  Trustee  notice of any  failure  by the Issuer to make any
                           payment of the principal of or interest,  including Increased
 Interest,  if any,                            on any Notes (including  Additional
Amounts) and any other payments to be made by                            or on behalf of
the Issuer under this  Indenture or the Notes when the same shall
                           be due and payable;

- 40 -

(iii)    that it will
pay any such  sums so held in trust by it to the  Trustee  forthwith
                           upon the  Trustee's  written  request at any time during the
 continuance  of the                            failure referred to in clause (ii) above;
and

(iv)     that it will
comply with the provisions of the Trust  Indenture Act applicable to
                           it as a Paying Agent.

(c)      Any Paying
Agent  appointed  must at all times be a bank having a long term unsecured debt
                  rating of at least “A3” by Moody’s.

(d)      If the Issuer
shall act as its own Paying Agent with respect to any Notes,  it will, on or
                  before each due date of the principal of or interest,  including
 Increased  Interest,  if                   any,  on such  Notes,  set  aside,  segregate
 and hold in trust  for the  benefit  of the                   Noteholders  a sum
 sufficient  to pay such  principal or interest  (including  Additional
                  Amounts) so  becoming  due until such  amounts  shall be paid to the
 Noteholders  and the                   Issuer will promptly notify the Trustee of its
action or any failure to take action.

(e)      Anything  in
this  Section 6.11  to the  contrary  notwithstanding,  the Issuer may at any
                  time, for the purpose of obtaining a satisfaction  and discharge with
respect to any Notes                   hereunder,  or for any other reason, pay or by
Issuer Order direct any Paying Agent to pay                   to the  Trustee  all sums
held in trust for such Notes by the  Issuer or any Paying  Agent
                  hereunder,  such sums to be held by the Trustee  upon the trusts
 herein  contained;  and,                   upon such payment by any Paying Agent to the
Trustee,  such Paying Agent shall be released                   from all further
liability with respect to such money.

(f)      Anything in
this  Section 6.11  to the contrary  notwithstanding,  the  agreements to hold
                  sums in trust as provided in this Section are subject to the provisions
of Section 12.3.

(g) Any money
deposited with the Trustee or any Paying Agent, or then held in trust for the
payment of the principal of or interest on any Note and remaining
unclaimed for two years after such principal or interest has become
due and payable shall be paid to the Issuer upon Issuer Order, or (if
then held by the Issuer) shall be discharged from such trust; and
holder of such Note shall thereafter, as an unsecured general creditor, look only to
the Issuer for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all
liability of the Issuer as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, will at the expense of
the Issuer cause a notice to be given to the Noteholders in
accordance with Section 15.4 that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30
days from the date of such notice, any unclaimed balance of such money then remaining
will be repaid to the Issuer. 

6.12     Maintenance
of Existence

Subject to Section 6.13,
the Issuer shall do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and rights (charter and
statutory) of the Issuer; provided, however, that the Issuer shall not be
required to preserve any such charter or statutory right if the Board of
Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Issuer and that the loss thereof is
not disadvantageous in any material respect to the Noteholders. 

- 41 -

6.13
    Consolidation, Merger, Conveyance or Transfer

(a)      The Issuer
shall not,  without the consent of  Noteholders  holding 66 2/3% in outstanding
                  principal  amount of the then outstanding  Notes  consolidate with or
merge into any other                   Person  or convey or  transfer  in one
 transaction  or a series of  transactions,  all or                   substantially all
its properties and assets to any other person unless thereafter:

(i)      the  Person
 formed by such  consolidation  or into which the Issuer is merged or
                           the Person which acquires by conveyance or transfer all or
 substantially  all of                            the properties and assets of the Issuer
shall expressly  assume,  by an indenture                            supplemental
 hereto,  executed and delivered to the Trustee, in form agreed with
                           the Trustee,  the due and punctual  payment of the  principal
and interest on all                            the Notes and the  performance  or
observance of every covenant of this Indenture                            on the part of
the Issuer to be performed or observed;

(ii)     immediately
 after  giving  effect to such  transaction,  no  Default or Event of
                           Default  shall have  occurred  or covenant or  agreement
 herein  shall have been                            materially breached, and be
continuing; and

(iii)    the Person
 formed by such  consolidation,  or into which the Issuer is merged or
                           the Person which acquires by conveyance or transfer all or
 substantially  all of                            the  properties  and assets of the
Issuer,  as the case may be, shall  deliver to                            the Trustee an
 officers'  certificate  and an Opinion of Counsel,  each  stating
                           that such  consolidation,  merger,  conveyance or transfer
and, if a supplemental                            indenture is required in  connection
 with such  transaction,  such  supplemental                            indenture comply
with this Section 6.13 and that all conditions  precedent herein
                           provided for relating to such transaction have been complied
with.

(b)      Upon any
 consolidation of the Issuer with, or merger of the Issuer into, any other Person
                  or any conveyance or transfer of the properties and assets of the
Issuer  substantially as                   an entirety in accordance  with this  Section 6.13,
 the  successor  Person formed by such                   consolidation  or into which the
Issuer is merged or to which such  conveyance or transfer                   is made shall
succeed to, and be  substituted  for, and may exercise every right and power
                  of, the Issuer under this Indenture  with the same effect as if such
successor  Person had                   been named as the Issuer herein,  and thereafter
the predecessor  Person shall be relieved                   of all obligations and
covenants under this Indenture and the Notes.

6.14     Listing

The Issuer  shall make
all  reasonable  efforts to obtain and  maintain the listing of the Notes on          the
Luxembourg  stock  exchange but, if it is unable to do so, having made such efforts,  or
if the          maintenance  of such listing is to be unduly  onerous,  the Issuer will
instead make all reasonable          efforts to obtain and maintain a listing of the
Notes on another stock exchange.

6.15     Additional
Information for Ratings

So long as any Notes
remain outstanding, the Issuer shall:

(a)      so far as
 permitted by law, at all times give  Moody’s,  for so long as Moody’s is rating
                  the Notes,  such information as it shall  reasonably  request in order
that it may perform                   its function as a rating agency in respect of the
Notes;

- 42 -

(b)      inform  Moody’s,
 for so long as  Moody’s  is  rating  the  Notes,  as soon as  reasonably
                  practicable of any amendments or  modifications  that have been or are
proposed to be made                   to this Indenture or to the Insurance Policy; and

(c)      in addition
to copies of notices specifically  referred to herein, send a copy to Moody’s,
                  for so long as  Moody’s  is rating the Notes,  of all  notices  sent by
it to the  Trustee                   under the terms of this Indenture, other than
routine notices.

7.    DEFAULT AND REMEDIES 

7.1      Events of
Default

The  following  events
 shall each be an "Event of  Default"  under the terms of the Notes and this
         Indenture:

(a)      subject to
Sections 2.6  and 2.8, default in the payment of principal  (including  Amounts
                  in  Arrears  in  respect  of  principal)  in  respect of any Note which
has become due and                   payable in  accordance  with the terms of the Notes,
 whether on the  Maturity  Date,  the                   Optional Redemption Date or
otherwise; or

(b) subject to
Section 2.8, default continuing for a period of 15 days in the payment of
interest, Amounts in Arrears in respect of interest, Additional
Interest Amounts or any Additional Amounts due on any Note on the
due date therefor or any other date on which the payment of interest,
Amounts in Arrears in respect of interest, Additional Interest
Amounts or Additional Amounts is required to be paid in accordance
with the terms of the Notes and the Indenture and the Trustee shall
not have otherwise received such amounts from the Insurer under the
Insurance Policy, the Reserve Account or otherwise; provided,
however, that the failure by the Issuer to make a payment of
interest due on any Note shall not constitute an Event of Default if
such amounts are acknowledged in writing by the Insurer to be due and
payable under the Insurance Policy; or 

(c)      a court or
agency  or  supervisory  authority  in the  Cayman  Islands  or  Brazil  having
                  jurisdiction  in respect of the same shall have  (i) instituted  a
proceeding or entered a                   decree or order for relief under any
bankruptcy, insolvency, rehabilitation,  readjustment                   of debt,
 marshalling  of assets and  liabilities or similar law, or for the winding up or
                  liquidation of its affairs, or adjudging the Issuer bankrupt or
insolvent,  (ii) entered a                   decree  or  order  approving  as  properly
 filed a  petition  seeking  a  reorganization,                   arrangement,
 adjustment or  composition  of the Issuer under any  applicable law except a
                  reorganization permitted under Section 6.13,  (iii) entered a decree or
order appointing a                   custodian,  receiver,  liquidator,   assignee,
 trustee,  sequestrator  or  other  similar                   official  of the Issuer or
all or  substantially  all its  assets,  and such  proceedings,                   decree
or order shall not have been vacated or shall have  remained in force  undischarged
                  or  unstayed  for a period of 60 days,  or any event which under the
laws of Brazil or the                   Cayman Islands has an analogous effect to any of
the foregoing events; or

(d)      the
commencement by the Issuer of a voluntary case or proceeding  under any applicable
 bankruptcy, insolvency,  reorganization  or other  similar law or of any other case or
 proceeding  to be  adjudicated a bankrupt or  insolvent,  or the consent to it by answer
or  otherwise  to the entry of a decree or order for relief in  respect of the Issuer in
an  involuntary  case or  proceeding  under any  applicable  bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or

- 43 -

insolvency case or
proceeding  against it or the dissolution of the Issuer or any event which under
                  the laws of Brazil or the Cayman  Islands has an analogous  effect to
any of the foregoing                   events; or

(e)      the  Issuer
 has  submitted  a Proof of Loss as a result of which the  Insurer  has paid a
                  claim under the  Insurance  Policy in  circumstances  where the Issuer
was not entitled to                   submit a Proof of Loss.

The foregoing will
constitute  Events of Default  whatever the reason for any such Event of Default
         and whether it is  voluntary or  involuntary  or is effected by operation of law
or pursuant to any          judgment,  decree or order of any court or any order,  rule
or regulation of any  administrative or          governmental body.

7.2      Acceleration
of Maturity; Rescission and Annulment

(a) If an Event
of Default described in clauses (c) and (d) of Section 7.1 occurs in respect
of Cayman Islands law and is continuing, the Trustee, or the
Noteholders of at least 33 1/3% in outstanding principal amount of
the Notes, by notice to the Issuer, may, and the Trustee at the
written request of such Noteholders shall, declare the principal of and
accrued and unpaid interest, if any, on all the Notes to be due and
payable. Upon such a declaration, such principal and accrued and
unpaid interest shall be immediately due and payable. If an Event of
Default described in clause (c) and clause (d) of Section 7.1
occurs (other than in respect of Cayman Islands law) and is
continuing, the principal of and accrued and unpaid interest on all
the Notes will become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any
Noteholders. For the avoidance of doubt, under current applicable
law, the Issuer shall only be required to make any payment pursuant
to this Section 7.2 after it has been declared bankrupt or put into
liquidation or otherwise dissolved (dissolvido) for the purposes of
Brazilian law, in which case such payment will be subject to the provisions
of Article 14 hereof. In addition, if the Issuer makes such
payments from Brazil, the Issuer will be required to obtain the
approval of the Central Bank of Brazil for the remittance of funds
outside Brazil. 

(b)      If an Event
of Default  occurs and is  continuing,  the Trustee  may pursue any  available
                  remedy to collect the payment of  principal  of or interest on the
Notes or to enforce any                   provision of the Notes or this Indenture.

(c)      At any time
after a declaration of acceleration in accordance  with  Section 7.2(a)  above
                  has been made with  respect to the Notes and before a  judgment  or
decree for  payment of                   the money due has been obtained by the Trustee
as  hereinafter  in this Article  provided,                   the Majority  Noteholders,
 by written  notice to the Issuer and the Trustee,  may rescind                   and
annul such declaration and its consequences if:

(i)      there shall
have been paid to or deposited  with the Trustee a sum  sufficient to
                           pay:

(A)       all  overdue
 installments  of  interest  on the  Notes  (including  all
                                    Amounts in Arrears and Additional Interest Amounts);

(B)       the
 principal  of any Notes  that have  become  due other  than by such
                                    declaration of acceleration and interest thereon at
the Arrears Rate;

- 44 -

(C)       to the
extent  that  payment of such  interest  is lawful,  interest  on
                                    overdue interest at the Arrears Rate; and

(D)       all sums
paid or advanced by the Trustee  hereunder  and the  reasonable
                                    compensation,  expenses, disbursements, and advances
of the Trustee, its                                     agents and counsel; and

(ii)     all Events of
Default,  other than the  nonpayment  of the principal of the Notes
                           that has  become due  solely by such  acceleration,  have been
cured or waived as                            provided in Section 7.4.

(d)      No such
 rescission  shall affect any  subsequent  default or impair any right  consequent
                  thereon.

7.3      Delay or
Omission Not Waiver

No delay or omission
of the Trustee or of any  Noteholder to exercise any right or remedy  accruing
         upon any Event of Default  shall impair any such right or remedy or constitute a
waiver of any such          Event of Default or an  acquiescence  therein.  Every right
and remedy  given by this Article or by          law to the Trustee or to the
 Noteholders  may be exercised  from time to time, and as often as may          be deemed
 expedient,  by the Trustee or by the  Noteholders,  as the case may be. No waiver of any
         Event of Default,  whether by the Trustee or by the  Noteholders,  shall  extend
to or shall affect          any subsequent Event of Default or shall impair any remedy or
right consequent thereon.

7.4      Waiver of
Past Defaults

(a)      The Majority
 Noteholders may on behalf of the Noteholders of all the Notes waive any past
                  default hereunder and its consequences, except a default not
theretofore cured:

(i)      in the
payment of the principal of or interest on any Note, or

(ii)     in respect of
a covenant  or  provision  hereof  which  under  Article 11.1  cannot be  modified or
                           amended without the consent of each affected Noteholder,

or except as otherwise
prohibited by the Trust Indenture Act.

(b)      Upon any such
waiver,  such default shall cease to exist, and any Event of Default arising
                  therefrom shall be deemed to have been cured, for every purpose of this
Indenture;  but no                   such  waiver  shall  extend  to any  subsequent  or
other  default  or  impair  any  right                   consequent thereon.

7.5      Trustee  May
File  Proofs  of  Claim;  Appointment  of  Trustee  as  Attorney-in-Fact  in  Judicial
         Proceedings

(a)      In case  of
 pendency  in any  receivership,  insolvency,  bankruptcy,  liquidation,  readjustment,
reorganization or any other judicial  proceedings  relating to the Issuer or any obligor
on the Notes or the property of the Issuer or of such other obligor or their  creditors,
 the Trustee  (irrespective  of whether the  principal  of the Notes  shall then be due
and  payable  as  therein  expressed  or by  declaration  or otherwise  and  irrespective
 of whether the Trustee shall have made any demand on the Issuer for payment of overdue

- 45 -

principal or interest)
 shall be entitled and  empowered by  intervention  in such  proceedings  or
                  otherwise,  to take any and all actions  authorized under the Trust
Indenture Act in order                   to have  claims  of the  Holders  and the
 Trustee  allowed  in any  such  proceeding.  In                   particular, the
Trustee shall be authorized to:

(i)      file and
prove a claim for the whole  amount of principal  and interest  owed and
                           unpaid in respect of the Notes and to file such other  papers
or documents as may                            be necessary  or advisable in order to
have the claims of the Trustee  (including                            any claim for the
reasonable compensation,  expenses,  disbursements and advances
                           of the Trustee,  its agents and counsel and all other  amounts
due to the Trustee                            under  Section 8.5) and of the Noteholders
 allowed in such judicial  proceeding;                            and

(ii)     collect and
receive any moneys or other  property  payable or  deliverable on any
                           such claims and to distribute same.

(b)      In any such
event, any receiver,  assignee,  trustee,  liquidator or sequestrator or other
                  similar official in any such judicial  proceeding is hereby  authorized
by each Noteholder                   to make such  payment to the Trustee and in the
event that the  Trustee  shall  consent to                   the making of such payments
directly to the Noteholders,  to pay to the Trustee any amount                   due to
it for the reasonable  compensation,  expenses,  disbursements  and advances of the
                  Trustee,  its  agents  and  counsel,  and  any  other  amounts  due to
the  Trustee  under                   Section 8.5.

(c) Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent
to or accept or adopt on behalf of any Noteholder any plan
of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Noteholder thereof,
or to authorize the Trustee to vote in respect of the claim of any
Noteholder in any such proceeding; provided, however, that the
Trustee may, on behalf of the Noteholders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a
creditors' committee or other similar committees. 

7.6      Trustee May
Enforce Claims Without Possession of Notes

All rights of action
and claims under this  Indenture or the Notes may be  prosecuted  and enforced
         by the  Trustee  without  the  possession  of any of the  Notes or the
 production  thereof  in any          proceeding  relating thereto,  and any such
proceeding  instituted by the Trustee may be brought in          its own name and as
 trustee  of an  express  trust for the  whole  amount  of such  principal  and
         interest  remaining unpaid,  and any recovery of judgment shall, after provision
for the payment of          the reasonable  compensation,  expenses,  disbursements and
advances of the Trustee,  its agent and          counsel, be for the ratable benefit of
the Noteholders.

7.7      Application
of Money Collected

(a)      Any money
 collected  by the  Trustee  with  respect to the Notes  (whether  paid into the
                  Payment Account or otherwise),  other than money received from the
Insurer pursuant to the                   Insurance Policy or withdrawn from the Reserve
Account  pursuant to Section 3.2(e),  shall                   be applied in the following
 order, at the date or dates fixed by the Trustee and, in case                   of the
 distribution  of such money on account of principal or  interest,  upon  surrender
                  thereof if fully paid:

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FIRST:  To the payment
of all amounts due to the Trustee  under the first two sentences of
                  Section 8.5(a) hereof

SECOND:  After any
claim payment by the Insurer under the Insurance Policy, to the payment
                  of all amounts due to the Insurer in  accordance  with the terms of the
 Insurance  Policy                   (including, without limitation, Condition 8 thereof)
and the Consent Agreement.

THIRD:  To the
 payment  of accrued  and  unpaid  interest  including,  if any,  Increased
                  Interest  (other than Additional  Interest  Amounts),  and any
Additional  Amounts related                   thereto.

FOURTH:  To the
 payment  of accrued  and  unpaid  Additional  Interest  Amounts,  and any
                  Additional Amounts related thereto.

FIFTH:  On the
Maturity  Date or Optional  Redemption  Date,  to the payment of principal,
                  and any Additional Amounts related thereto.

SIXTH:  To the payment
of all amounts due to the Trustee under the indemnity  contained in
                  Section 8.5(a) hereof.

SEVENTH:  To the
Issuer.

(b)      Any money
collected by the Trustee with respect to the Notes from the Insurer  pursuant to
                  the Insurance  Policy or withdrawn  from the Reserve  Account  pursuant
to Section  3.2(f)                   shall be applied in accordance with Section 3.1(c).

7.8      Limitation on
Suits

Subject to Section 7.9,
 no Noteholder  shall have any right to institute any proceeding,  judicial          or
otherwise,  with respect to this Indenture or the Notes or for the  appointment of a
receiver or          trustee, or for any other remedy hereunder, unless:

(a)      such
Noteholder has previously  given written notice to the Trustee of a continuing  Event
                  of Default with respect to the Notes or the continuing  breach of a
covenant  contained in                   this Indenture; and

(b)      the
 Noteholders  of not  less  than  33  1/3%  in  aggregate  principal  amount  of  then
                  Outstanding Notes shall have made written request to the Trustee to
institute  proceedings                   in respect of such  Event of Default or such
 breach,  as the case may be, in its own name                   as Trustee hereunder; and

(c)      such
 Noteholder  or  Noteholders  have  offered to the  Trustee  security  and  indemnity
                  satisfactory  to it  against  the  costs,  expenses  and  liabilities
 to be  incurred  in                   compliance with such request; and

(d)      the Trustee
for 60 days after its receipt of such  notice,  request and offer of indemnity
                  has failed to institute any such proceeding; and

(e)      no direction
 inconsistent  with such written request has been given to the Trustee during
                  such 60-day period by the Majority Noteholders;

- 47 -

it being  understood
 and  intended  that no one or more  Noteholders  shall  have any right in any
         manner  whatever  by virtue of, or by  availing  of, any  provision  of this
 Indenture  to affect,          disturb  or  prejudice  the  rights  of any  other
 Noteholder,  or to  obtain or to seek to obtain          priority  or  preference  over
any  other  such  Noteholder  or to  enforce  any right  under  this          Indenture,
 except in the manner herein provided and for the equal and proportionate benefit of all
         the Noteholders.

7.9      Unconditional
Right of Noteholders to Receive Principal and Interest

Notwithstanding  any
other  provisions in this  Indenture,  the  Noteholders  shall have the right,
         which is  absolute  and  unconditional  (subject  always  however  to the terms
of the  Transaction          Documents  and the  subordination  conditions  of
 Resolution  2837),  to  receive  payment  of the          principal of and interest on
such Note on the respective  due dates  expressed in such Note (or, in          the case
of redemption or repayment,  on the Optional  Redemption Date or the Maturity Date, as
the          case may be),  except as provided in  Section 2.8  and  Section 14,  and to
institute  suit for the          enforcement  of any such  payment,  and such right shall
not be  impaired  or affected  without the          consent of such Noteholder.

7.10     Restoration
of Rights and Remedies

If the Trustee or any
 Noteholder  has  instituted  any  proceeding  to enforce any right or remedy
         under this Indenture and such proceeding has been  discontinued  or abandoned
for any reason,  then          and in  every  such  case the  Issuer,  the  Trustee  and
the  Noteholders  shall,  subject  to any          determination in such proceeding,  be
restored severally and respectively to their former positions          hereunder,  and
 thereafter  all rights and  remedies  of the  Trustee  and the  Noteholders  shall
         continue as though no such proceeding had been instituted.

7.11     Rights and
Remedies Cumulative

If the Issuer  shall
 default in the  performance  of, or breach,  any covenant or warranty in this
         Indenture or the Notes,  the Trustee may pursue any  available  remedy to
enforce any  provision of          the Notes or this Indenture.  Except as otherwise
 provided in the last paragraph of  Section 2.14,          no right or remedy  herein
 conferred  upon or  reserved to the  Trustee or to the  Noteholders  is
         intended to be exclusive  of any other right or remedy,  and every right and
remedy  shall,  to the          extent  permitted  by law, be  cumulative  and in
 addition  to every other right and remedy  given          hereunder  or now or
 hereafter  existing  at law or in  equity  or  otherwise.  The  assertion  or
         employment  of any right or remedy  hereunder,  or  otherwise,  shall not
 prevent  the  concurrent          assertion or employment of any other appropriate right
or remedy.

7.12     Control by
Noteholders

The Majority
Noteholders shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on the Trustee with respect to the Notes; provided, that: 

(a)      the Trustee
 shall have the right to decline to follow any such  direction  if the  Trustee,  being
advised by counsel,  determines  that the action so  directed  may not  lawfully be taken
or would  conflict with this  Indenture or if the Trustee in good faith shall,  by a
Responsible  Officer,  determine  that the proceedings  so  directed  would  involve it
in personal  liability  or it  reasonably  believes it will not adequately  be
 indemnified  against the costs,  expenses and  liabilities  which might be incurred by
it in complying with such

- 48 -

direction or be
unjustly prejudicial to the Noteholders not taking part in such direction; and

(b)      the  Trustee
 may  take  any  other  action  deemed  proper  by the  Trustee  which is not
                  inconsistent with such direction.

7.13     Undertaking
for Costs

All parties to this
Indenture agree, and each Noteholder by its acceptance  thereof shall be deemed
         to have agreed,  that any court may in its discretion  require,  in any suit for
the enforcement of          any right or remedy under this  Indenture,  or in any suit
against the Trustee for any action taken          or omitted by it as Trustee,  the
filing by any party  litigant in such suit of an  undertaking  to          pay the costs
of such suit,  and that such court may in its  discretion  assess  reasonable  costs,
         including  reasonable  attorneys' fees,  against any party litigant in such
suit, in the manner and          to the extent  provided in the Trust  Indenture  Act,
 and having due regard to the merits and good          faith of the claims or defenses
 made by such party  litigant;  but neither the  provisions of this          Section  nor
the Trust  Indenture  Act shall be deemed to  authorize  any court to require  such an
         undertaking  or to make such  assessment in any suit  instituted by or against
the Trustee,  to any          suit instituted by any Noteholder, or group of Noteholders,
 holding in the aggregate more than 10%          in principal amount of then Outstanding
 Notes, or to any suit instituted by any Noteholder for the          enforcement  of the
payment of the principal of or interest on any Note on or after the  respective
         maturities  expressed in such Note (or, in the case of  redemption  or
 repayment,  on or after the          Optional Redemption Date or the Maturity Date).

7.14     Waiver of
Stay or Extension Laws

The  Issuer  covenants
 (to the  extent  that it may  lawfully  do so) that it will not at any time
         insist upon, or plead, or in any manner  whatsoever  claim or take the benefit
or advantage of, any          stay or extension law wherever  enacted,  now or at any
time  hereafter in force,  which may affect          the  covenants  or the  performance
 of this  Indenture;  and the Issuer (to the extent that it may          lawfully do so)
hereby  expressly  waives all benefit or advantage  of any such law, and  covenants
         that it will not hinder,  delay or impede the execution of any power herein
granted to the Trustee,          but will  suffer  and  permit  the  execution  of every
 such  power as though no such law had been          enacted.

8. CONCERNING THE TRUSTEE 

8.1      Certain
Rights and Duties of Trustee

(a)      The  Trustee,
 prior to the  occurrence  of an Event of  Default or any breach by the Issuer of any
covenant  contained in this Indenture which, other than the covenants  contained in
Sections 6.1,  6.6, 6.7, 6.11(a),  6.11(d),  6.12 and 6.13 herein,  continues  for a
period of 14 days,  and after the cure or waiver all Events of Default or breaches  that
may have  occurred,  undertakes  to perform  only such duties as are specifically  set
 forth in this  Indenture  and the  Trust  Indenture  Act,  and no  implied  covenants
 or obligations  shall be read into this Indenture  against the Trustee.  The application
of Section  3.15(a)(1) of the Trust  Indenture  Act to this  Indenture  is  expressly
 excluded.  In case an Event of  Default  has occurred or following any breach by the
Issuer of any covenant  contained in this  Indenture  (which has not been cured or waived
and which,  other than the covenants  contained in  Sections 6.1,  6.6,  6.7,  6.11(a),
6.11(d),  6.12 and 6.13 herein,  continues for a period of 14 days) and prior to the
receipt of instructions (if any) from the  Noteholders,  the Trustee  shall  exercise
 such of the rights and powers vested in it by this Indenture, and

- 49 -

use the same degree of
care and skill in their exercise,  as a prudent person would exercise or use
                  under the circumstances in the conduct of his or her own affairs.

(b) (i) The
Trustee may conclusively rely and shall be fully protected in acting, or
refraining from acting, upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
consent, order, Note, debenture or other paper or document
(whether in original or facsimile form) believed by it in good faith
to be genuine and to have been signed or presented by
the proper party or parties; provided, that in the case of
any such certificates or opinions which by the provisions
hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the
same to determine whether or not they conform to the
requirements of this Indenture but need not verify the
contents thereof. 

(ii)     Any request,
 direction,  order or demand of the Issuer mentioned herein shall be
                           sufficiently  evidenced by an Officer's  Certificate  (unless
 other  evidence in                            respect  thereof be herein  specifically
 prescribed);  and any resolution of the                            Board of Directors
shall be evidenced to the Trustee by a copy thereof  certified
                           by the  secretary  or an  assistant  secretary  of the
 Issuer.  Whenever  in the                            administration  of this  Indenture,
 the Trustee  shall deem it desirable  that a                            matter be proved
or  established  prior to  taking,  suffering  or  omitting  any
                           action  hereunder,  the Trustee  (unless  other  evidence be
herein  specifically                            prescribed)  may, in the absence of bad
faith on its part,  rely on an  Officer's                            Certificate.

(iii)    The Trustee
 shall be under no obligation to exercise any of the trusts or powers
                           vested in it by this  Indenture,  and may refuse to perform
 any duty or exercise                            any such  rights  or  powers  unless  it
shall  have  been  offered  security  or                            indemnity  to  its
 reasonable  satisfaction  against  the  costs,  expenses  and
                           liabilities which may reasonably be incurred therein or
thereby.

(iv)     The Trustee
shall not be liable for any action  taken,  suffered or omitted by it
                           in good faith and  believed  by it in good faith to be
 authorized  or within the                            discretion  or rights  or  powers
 conferred  upon it by this  Indenture  or with                            respect to any
action it takes or omits to take in good faith in accordance  with
                           a direction received by it from the Majority Noteholders.

(v) Subject to
Section 8.1(b)(i), the Trustee shall not be bound to make any
investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval,
appraisal, Note, debenture or other paper or document with respect to
the Notes unless requested in writing so to do by the
Majority Noteholders then Outstanding, provided, that, if
the payment within a reasonable time to the Trustee of the
reasonable costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion
of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the
Trustee may require indemnity reasonably satisfactory to it
against such expenses or liabilities as a condition to
so proceeding. The reasonable expense of every such
investigation shall be paid by the Issuer or, if paid by the
Trustee, shall be repaid by the Issuer upon demand. 

- 50 -

(vi)     The  Trustee
may  execute  any of the trusts or powers  hereunder  or perform any
                           duties hereunder either directly or by or through agents,
 attorneys,  custodians                            or nominees  and the  Trustee  shall
not be  responsible  for any  misconduct  or                            negligence  on
the part of any agent,  attorney  custodian  or nominee  appointed
                           with due care by it hereunder.

(vii)    The Trustee
 shall not be liable for any error of judgment  made in good faith by
                           a Responsible  Officer or Responsible  Officers of the Trustee
unless it shall be                            proved that the Trustee was negligent in
ascertaining the pertinent facts.

(viii)   The Trustee
 shall not be liable with  respect to any action  taken or omitted to
                           be taken by it in good  faith in  accordance  with any
 direction  of the  Issuer                            given  under  this  Agreement;
 provided,  that the  Trustee's  conduct  does not                            constitute
negligence or willful misconduct.

(ix)     The  Trustee
 shall  have no  obligation  to invest  and  reinvest  any cash held
                           pursuant  to this  Agreement  in the  absence  of  timely  and
 specific  written                            investment  direction  from the  Issuer.
 In no event shall the Trustee be liable                            for the selection of
investments or for investment losses incurred  thereon.  The
                           Trustee shall have no liability in respect of losses  incurred
as a result of the                            liquidation of any investment  prior to its
stated maturity or the failure of the                            Issuer to provide timely
written investment direction.

(x)      The  Trustee
 shall  not be  deemed to have  notice  of any  Default  or Event of
                           Default unless a Responsible  Officer of the Trustee has
actual knowledge thereof                            or  unless  written  notice  of any
 event  which is in fact  such a  default  is                            received by the
Trustee at the  Corporate  Trust Office of the Trustee,  and such
                           notice  references  the Notes and this  Indenture;  provided,
 however,  that the                            Trustee shall be deemed to have actual
 knowledge of the existence of any Default                            or  Event  of
 Default   which  has  arisen   pursuant  to  the   provisions   of
                           Section 7.1(a) or (b).

(xi)     The  rights,
 privileges,  protections,  immunities  and  benefits  given  to the
                           Trustee,  including,  without  limitation,  its  right  to  be
 indemnified,  are                            extended to, and shall be  enforceable  by,
the Trustee in each of its capacities                            hereunder,  and each
agent, custodian and other Person employed to act hereunder;
                           and

(xii)    The Trustee
may request that the Issuer deliver an Officer's  Certificate setting
                           forth the names of individuals and/or titles of officers
 authorized at such time                            to  take  specified   actions
  pursuant  to  this  Indenture,   which  Officer's
                           Certificate  may  be  signed  by any  person  authorized  to
 sign  an  Officer's                            Certificate,  including  any  person
 specified  as so  authorized  in  any  such                            certificate
previously delivered and not superseded.

(c)      None of the
provisions  contained in this Indenture shall require the Trustee to expend or
                  risk its own funds or otherwise incur personal  financial  liability in
the performance of                   any of its duties or in the  exercise of any of its
rights or powers,  if there shall be a                   reasonable   ground  for
 believing   that  the  repayment  of  such  funds  or  indemnity
                  satisfactory to it against such liability is not reasonably assured to
it.

(d)      The Trustee
may consult  with  counsel and the written  advice or opinion of counsel  shall be full
and complete authorization and protection in respect of any action taken or

- 51 -

omitted by it
hereunder in good faith and in accordance with such advice or opinion of counsel.

(e)      If the
 Trustee  has or shall  acquire a  conflicting  interest  within the meaning of the
                  Trust  Indenture Act, the Trustee shall either  eliminate such interest
or resign,  to the                   extent  and in the  manner  provided  by,  and
 subject  to the  provisions  of, the Trust                   Indenture Act and this
Indenture.

8.2      Trustee Not
Responsible for Recitals, etc.

The  recitals
  contained   herein  and  in  the  Notes,   except  the  Trustee's   certificate  of
         authentication,  shall be  taken  as the  statements  of the  Issuer  and the
 Trustee  assumes  no          responsibility  for the  correctness  of the same. The
Trustee makes no  representations  as to the          validity or  sufficiency  of this
 Indenture or of the Notes.  The Trustee shall not be accountable          for the use or
application by the Issuer of any of the Notes or of the proceeds of such Notes.

8.3      Trustee and
Others May Hold Notes

The Trustee or any
Paying Agent or Note Registrar or any other Authorized Agent of the Trustee,  or
         any Affiliate thereof, in its individual or any other capacity,  may become the
owner or pledgee of          Notes and may  otherwise  deal with the  Issuer,  or any
other  obligor  on the Notes with the same          rights it would have if it were not
Trustee,  Paying Agent, Note Registrar or such other Authorized          Agent.

8.4      Moneys Held
by Trustee or Paying Agent

(a)      All moneys
 received by the Trustee or any Paying  Agent  shall,  until used or applied as
                  herein  provided,  be held in trust for the  purposes  for which they
were  received,  and                   shall be segregated  from other funds of the
Trustee or Paying Agent.  Neither the Trustee                   nor any Paying Agent
shall be under any liability  for interest on any moneys  received by
                  it hereunder except such as it may agree in writing with the Issuer to
pay thereon.

(b)      The Trustee
shall arrange with all Paying Agents for the payment,  from funds furnished by
                  the Issuer to the Trustee  pursuant to this  Indenture,  of the
 principal of and interest                   and other amounts due on the Notes
(including Additional Amounts).

(c)      If,
   following   the   occurrence   and   during   the   continuance   of   a   Currency
                  Inconvertibility/Non-Transfer  Event,  the Trustee or any Paying  Agent
shall  receive any                   moneys in a currency  other than U.S.  dollars,  the
Trustee or such Paying Agent,  as the                   case may be, shall use its
 reasonable  efforts  lawfully to convert such moneys into U.S.                   dollars
at a rate no less favorable than the Reference Rate of Exchange.

8.5      Compensation
of Trustee and Its Lien

(a)      The Issuer
 covenants  and agrees to pay the Trustee (all  references  in this  Section 8.5  to the
Trustee  shall be deemed  to apply to the  Trustee  in its  capacities  as  Trustee,
 Paying  Agent and Note Registrar)  such  amount as shall be agreed  upon in writing
 with the Issuer in full  compensation  for all services  rendered by the Trustee
 hereunder for the period  beginning on the Closing Date and ending on the Stated
Maturity Date. Except as herein otherwise  expressly  provided,  the Issuer will pay or
reimburse the Trustee upon its request for all reasonable expenses and disbursements
incurred or made by the Trustee in

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accordance with any of
the provisions of this Indenture (including the reasonable  compensation and
                  the reasonable expenses,  advances and disbursements of its counsel and
of all persons not                   regularly in its employ)  except any such expense or
 disbursement  as shall be determined                   to have  been  caused  by its own
 negligence  or  willful  misconduct.  The  Issuer  also                   covenants and
agrees to indemnify  each of the Trustee and each  predecessor  Trustee for,
                  defend,  and hold  harmless  each of the  Trustee and each  predecessor
 Trustee and their                   respective officers,  directors,  employees,
 representatives and agents from and against,                   any loss,  liability,
 claim,  damage or expense  incurred  without  negligence or willful
                  misconduct on its part or any of its employees,  officers or agents,
 arising out of or in                   connection with (i) the  acceptance or
administration of the trust or trusts hereunder and                   this Indenture,
 including, without limitation, the costs and expenses of defending itself
                  against any claim  (whether  against  the Issuer,  a  Noteholder  or
any other  Person) or                   liability  and (ii) the  exercise or  performance
 or any of its rights,  powers or duties                   hereunder  and including
 liability  which the Trustee may incur as a result of failure to
                  withhold,  pay or report  Taxes.  The  obligations  of the Issuer under
this Section shall                   constitute additional Indebtedness hereunder.

(b)      The
obligations of the Issuer under this Section 8.5  shall survive payment in full of the
                  Notes,  the  resignation  or removal of the Trustee and the
 termination of this Indenture                   for a period of three years after the
redemption and payment in full of the Notes.

(c)      When the
 Trustee or any  predecessor  Trustee  incurs  expenses  or renders  services  in
                  connection with the performance of its  obligations  hereunder
 (including its services as                   Paying  Agent,  if so  appointed  by the
 Issuer)  after an Event of Default  occurs,  the                   expenses  and
 compensation  for such  services  are  intended to  constitute  expenses of
                  administration  under  applicable  bankruptcy,  insolvency or other
similar  United States                   Federal or state law or analogous foreign law
for the relief of debtors.

(d)      The Trustee
 shall have a lien prior to the Notes as to all  property and funds held by it
                  hereunder  for  any  amount  owing  it  or  any  predecessor   Trustee
 pursuant  to  this                   Section 8.5,  except with respect to (i) the
indemnity to the Trustee contained in Section                   8.5(a),  (ii) all
 amounts  held in the Reserve  Account,  and  (iii) amounts  held in the
                  Interest Subaccount.

8.6      Right of
Trustee to Rely on Officer's Certificates and Opinions of Counsel

Before the Trustee
 acts or refrains  from acting with respect to any matter  contemplated  by this
         Indenture,  it may require an Officer's  Certificate of the Issuer or an Opinion
of Counsel,  which          shall  conform to the  provisions of  Section 15.1.  The
Trustee shall not be liable for any action          it takes or omits to take in good
faith in reliance on such  certificate or opinion as set forth in          Section 8.1(b)(ii).

8.7      The Bank of
New York Trust Company (Cayman) Limited as Trustee

If at any time whilst
The Bank of New York Trust Company  (Cayman)  Limited is appointed as Trustee
         hereunder:

(i)      the long term
 unsecured  debt rating of The Bank of New York falls below "A3" by Moody's;
                  or

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(ii)     The Bank of
New York Trust Company  (Cayman) Limited ceases to (a) be majority owned by or
                  (b) controlled by The Bank of New York; or

(iii)    The Bank of
New York Trust Company  (Cayman)  Limited ceases to bear “Bank of New York” in
                  its name;

then The Bank of New
York Trust Company  (Cayman) Limited will resign and the Issuer will appoint a
         successor trustee in accordance with the provisions of Section 8.9.

8.8      Persons
Eligible for Appointment as Successor Trustee

If The Bank of New
York Trust Company (Cayman) Limited ceases to be appointed as Trustee  hereunder
         for any reason,  the Issuer will appoint a successor  trustee.  Any  successor
 trustee will at all          times be a bank with a combined  capital and surplus of at
least  U.S.$100,000,000  and have a long          term unsecured debt rating of at least
"A3" by Moody's.

8.9      Resignation
and Removal of Trustee; Appointment of Successor

(a)      The Trustee,
 or any trustee or trustees  hereafter  appointed,  may at any time resign by
                  giving  written  notice to the  Issuer  and by giving  notice of such
 resignation  to the                   Noteholders in the manner provided in Section 15.4.

(b)      In case at
any time any of the following shall occur with respect to any Notes:

(i)      the  Trustee
 shall  cease to be  eligible  under  Section 8.7 or Section 8.8 and
                           shall  fail to resign  after  written  request  therefor  by
the Issuer or by any                            Noteholder; or

(ii)     the Trustee
shall become  incapable of acting,  or shall be adjudged  bankrupt or
                           insolvent,  or a receiver of the Trustee or of its property
 shall be  appointed,                            or any  public  officer  shall take
 charge or  control of the  Trustee or of its                            property  or
 affairs  for  the  purpose  of   rehabilitation,   conservation  or
                           liquidation;

then,  in any such
case,  (A) the  Issuer may remove the Trustee,  and appoint a successor
                  trustee by written instrument,  in duplicate,  executed by order of the
Board of Directors                   of the Issuer, or (B) any  Noteholder who has been a
bona fide Noteholder for at least six                   months may, on behalf of himself
and all others similarly situated,  petition any court of                   competent
 jurisdiction  for the removal of the Trustee and the appointment of a successor
                  Trustee.  Such court may  thereupon  after such notice,  if any, as it
may deem proper and                   prescribe, remove the Trustee and appoint a
successor Trustee.

(c) The Majority
Noteholders of the Notes at the time Outstanding may at any time remove the
Trustee and appoint a successor Trustee by delivering to the Trustee
so removed, to the successor Trustee so appointed and to the
Issuer, the evidence provided for in Section 9.1 of the action
taken by the Noteholders, provided, that unless a Default or Event
of Default shall have occurred and be continuing, the Issuer shall consent (such
consent not to be unreasonably withheld). 

(d)      If the
Trustee shall resign, be removed,  or become incapable of acting or if a vacancy shall
occur in the  office of Trustee  with  respect to the Notes for any cause,  the Issuer
 shall  promptly  appoint a successor  Trustee or  Trustees  by written  instrument,  in
 duplicate,  executed  by order of the Board of Directors of the Issuer, one copy of which

- 54 -

instrument  shall be
delivered to the former Trustee and one copy to the successor  Trustee.  If no
                  successor  Trustee  shall  have  been so  appointed  and have  accepted
 such  appointment                   pursuant to Section 8.10  within 3 days after the
mailing of such notice of resignation or                   removal, the former Trustee
may, at the Issuer's expense,  petition any court of competent
                  jurisdiction for the appointment of a successor Trustee,  or any
Noteholder who has been a                   bona fide  Noteholder  for at least six
months  may,  on behalf of himself  and all others                   similarly  situated,
 petition any such court for the appointment of a successor  Trustee.
                  Such court may thereupon  after such notice,  if any, as it may deem
proper and prescribe,                   appoint a successor Trustee.

(e)      Any
 resignation  or removal of the Trustee  and any  appointment  of a successor  Trustee
                  pursuant to this Section shall become  effective  only upon  acceptance
of  appointment by                   the successor Trustee as provided in Section 8.10.

8.10     Acceptance of
Appointment by Successor Trustee

(a)      Any successor
Trustee  appointed under Section 8.9 shall execute,  acknowledge and deliver
                  to the Issuer and to its  predecessor  Trustee an instrument  accepting
 such  appointment                   hereunder,  and  thereupon the  resignation  or
removal of the  predecessor  Trustee shall                   become effective and such
successor Trustee,  without any further act, deed or conveyance,                   shall
become vested with all the rights,  powers,  trusts,  duties and  obligations of its
                  predecessor Trustee hereunder,  with like effect as if originally named
as Trustee herein;                   but,  nevertheless,  on the written request of the
Issuer or of the successor Trustee, the                   Trustee  ceasing to act shall,
 upon  payment of any such  amounts then due it pursuant to                   the
 provisions of  Section 8.5,  execute and deliver an instrument  transferring  to such
                  successor  Trustee all the rights,  powers and trusts of the Trustee so
ceasing to act and                   shall duly assign,  transfer and deliver to such
successor  Trustee all property and money                   held by such Trustee  ceasing
to act.  Upon  request of any such  successor  Trustee,  the                   Issuer
 shall  execute any and all  instruments  in writing  for more fully and  certainly
                  vesting in and  confirming  to such  successor  Trustee all such
 rights and  powers.  Any                   Trustee ceasing to act shall, nevertheless,
 retain a lien upon all property or funds held                   or collected by such
Trustee to secure any amounts then due it pursuant to Section 8.5.

(b)      No successor
Trustee shall accept  appointment as provided in this Section 8.10  unless at
                  the time of such acceptance such successor Trustee shall be eligible
under Section 8.8.

(c)      Upon
 acceptance of  appointment by a successor  Trustee,  the Issuer shall give notice of
                  the  succession of such Trustee  hereunder to the  Noteholders  in the
manner  provided in                   Section 15.4.  If the Issuer fails to give such
notice within 10 days after  acceptance of                   appointment by the successor
Trustee,  the successor Trustee shall cause such notice to be                   given at
the expense of the Issuer.

8.11     Merger,
Conversion or Consolidation of Trustee

(a)      Any  Person
 into which the  Trustee  may be merged or  converted  or with which it may be
                  consolidated,  or any corporation  resulting from any merger,
 conversion or consolidation                   to which the Trustee shall be a party,  or
any Person  succeeding to all or  substantially                   all the  corporate
 trust  business of the Trustee,  shall be the successor of the Trustee
                  hereunder  without the  execution or filing of any paper or any further
act on the part of                   any of the parties  hereto;  provided that such
successor  Trustee shall be eligible under                   the provisions of Section
8.8 hereof.

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(b) In case at
the time such successor to the Trustee shall succeed to the trusts created by
this Indenture, any of the Notes shall have been authenticated but
not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor Trustee and
deliver such Notes so authenticated and, in case at that time any of
the Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor trustee, and in such cases
such certificate shall have the same force under the Notes and under
this Indenture as if authenticated by such predecessor Trustee;
provided, that, the certificate of the Trustee shall have
provided that the right to adopt the certificate of authentication
of any predecessor Trustee or the authenticated Notes in the name
of any predecessor Trustee shall apply only to its successor or
successors by merger, conversion or consolidation. 

8.12     Maintenance
of Offices and Agencies

(a)      The Issuer
shall at all times maintain in the Borough of Manhattan,  The City of New York,
                  and in such other  Places of Payment,  if any,  as shall be  specified
 for the Notes,  an                   office  or  agency  where  Notes may be  presented
 or  surrendered  for  registration  of                   transfer,  exchange or
 redemption  and for payment of  principal  and  interest and where
                  notices to and demands upon the Issuer in respect of this  Indenture
 and the Notes may be                   served.  Such office shall  initially be the
Corporate  Trust Office.  Notices and demands                   to or upon the  Trustee
 in respect  of the Notes or this  Indenture  may be served at the
                  Corporate  Trust  Office.  The Issuer shall not change the  designation
 of such office or                   agency  without prior written  notice to the Trustee
and the  designation of a replacement                   office or agency.  Written
 notice of the location of each of such office or agency and of                   any
change of  location  thereof  shall be given by the Issuer to the  Trustee  and by the
                  Trustee to the Noteholders in the manner specified in  Section 15.4.
 In the event that no                   such office or agency  shall be  maintained  or
no such notice of location or of change of                   location  shall be given,
 presentations,  surrenders  and demands may be made and notices                   may be
served at the Corporate Trust Office.

(b)      There shall
at all times be a Note  Registrar  and a Paying  Agent  hereunder.  The Issuer
                  shall enter into an appropriate  agency  agreement with any Note
Registrar or Paying Agent                   that is not a party to this Indenture.  The
agreement shall  incorporate the provisions of                   the Trust  Indenture
 Act and implement the  provisions of this  Indenture  that relate to
                  such  agent.  At any time when any Notes  remain  Outstanding,  the
Trustee may appoint an                   Authenticating  Agent or Agents with respect to
the Notes which shall be authorized to act                   on behalf of the Trustee to
authenticate  Notes issued upon original  issuance,  exchange,
                  registration of transfer or pursuant to Section 2.13,  and Notes so
authenticated shall be                   entitled  to the  benefits of this  Indenture
 and shall be valid and  obligatory  for all                   purposes as if
authenticated  by the Trustee  hereunder (it being understood that wherever
                  reference  is made in this  Indenture to the  authentication  and
delivery of Notes by the                   Trustee or the Trustee's certificate of
authentication,  such reference shall be deemed to                   include
 authentication  and delivery on behalf of the Trustee by an Authenticating  Agent
                  and  a  certificate   of   authentication   executed  on  behalf  of
 the  Trustee  by  an                   Authenticating Agent).

(c)      The Trustee
at its office  specified in the  definition  of  "Corporate  Trust  Office" in
                  Section 1.1, is hereby appointed as Paying Agent and Note Registrar
hereunder.

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(d)      Any Paying
 Agent (other than the  Trustee)  not a party to this  Indenture,  from time to
                  time appointed  hereunder  shall execute and deliver to the Trustee an
instrument in which                   said  Paying  Agent  shall  agree  with the
 Trustee,  subject to the  provisions  of this                   Section 8.11, that such
Paying Agent will:

(i)      hold all sums
held by it for the payment of  principal  of and  interest on Notes
                           in trust for the benefit of the Persons  entitled  thereto
 until such sums shall                            be paid to such Persons or otherwise
disposed of as herein provided;

(ii)     give the
 Trustee  within  five  days  thereafter  notice of any  Default  by any
                           obligor  upon the  Notes  in the  making  of any such  payment
 of  principal  or                            interest; and

(iii)    at any time
during the continuance of any such Default,  upon the written request
                           of the  Trustee,  forthwith  pay to the Trustee all sums so
held in trust by such                            Paying Agent.

(e)
     Notwithstanding any other provision of this Indenture,  any payment required to be
made to                   or received or held by the Trustee may, to the extent
 authorized by written  instructions                   of the  Trustee,  be made to or
received or held by a Paying  Agent for the account of the                   Trustee.

(f)      Any Person
into which any  Authorized  Agent may be merged or  converted  or with which it
                  may be consolidated,  or any Person resulting from any merger,
consolidation or conversion                   to which any Authorized  Agent shall be a
party, or any  corporation  succeeding to all or                   substantially  all of
the corporate trust business of any Authorized  Agent,  shall be the
                  successor  of such  Authorized  Agent  hereunder,  if such  successor
 Person is otherwise                   eligible  under this  Section 8.11,  without the
 execution  or filing of any paper or any                   further act on the part of
the parties hereto or such  Authorized  Agent or such successor                   Person.

(g)      Any
 Authorized  Agent may at any time resign by giving  written  notice of resignation to
                  the Trustee and the Issuer.  The Issuer may, and at the request of the
Trustee  shall,  at                   any time,  terminate the agency of any  Authorized
 Agent by giving written notice of such                   termination  to  the
 Authorized  Agent  and to  the  Trustee.  Upon  the  resignation  or
                  termination of an Authorized  Agent or in case at any time any such
Authorized Agent shall                   cease to be eligible under this  Section 8.11
 (when, in either case, no other  Authorized                   Agent performing the
functions of such Authorized  Agent shall have been  appointed),  the
                  Issuer shall promptly appoint one or more qualified  successor
 Authorized  Agents (except                   in the case of any  Authenticating  Agent,
 where the Trustee shall so appoint) to perform                   the  functions  of the
 Authorized  Agent  which has  resigned  or whose  agency  has been
                  terminated  or who shall have ceased to be eligible  under this  Section 8.11.
 The Issuer                   shall give written notice of any such  appointment to all
 Noteholders in accordance  with                   Section 15.4 (but need only give
notice in the manner specified in clause (a) thereof).

(h) The Issuer
initially appoints The Bank of New York as Note Registrar and Paying Agent and
Dexia Banque Internationale à Luxembourg as a paying agent (the “Luxembourg
Paying Agent”) in connection with the Notes. The Issuer
will appoint Dexia Banque Internationale à Luxembourg (or
other Luxembourg entity) as transfer agent (the “Luxembourg
Transfer Agent”) in the event the Notes are issued in definitive registered
form.  

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(i)      So long as
the Notes are listed on the  Luxembourg  stock  exchange  and the rules of such
                  exchange  so  require,  the Issuer  will  maintain a paying  agent and
 transfer  agent in                   Luxembourg.  If the Notes are listed on any other
 securities  exchange,  the Issuer  will                   satisfy any  requirement at
such securities  exchange as to paying agents.  So long as the                   Notes
ate listed on the Luxembourg  stock  exchange,  any change in the Luxembourg  Paying
                  Agent or the  Luxembourg  Transfer  Agent or any change in the
 location of their  offices                   shall be  notified  to holders of the Notes
by the giving of notice to the  holders of the                   Notes in accordance with
the provisions of Section 15.4 of this Indenture.

8.13     Reports by
Trustee

On or before May 15 in
every  year,  so long as any Notes are  Outstanding  hereunder,  the Trustee
         shall transmit to the Noteholders  specified in  Section 313(a)  of the Trust
Indenture Act a brief          report, dated as of the preceding  December 31,  to the
extent required by Section 313 of the Trust          Indenture Act in accordance with the
procedures set forth in said Section.

A copy of each report
at the time of its mailing to  Noteholders  shall be mailed to the Issuer and
         filed with the SEC and each stock exchange, if any, on which the Notes are
listed.

The Issuer shall
 promptly  notify the Trustee in writing if the Notes  become  listed on any stock
         exchange and of any  delisting  thereof and the Trustee  shall  comply with
 Section  313(d) of the          Trust Indenture Act.

8.14     Trustee Risk

None of the provisions
 contained in this Indenture shall require the Trustee to expend or risk its          own
funds or otherwise incur personal  financial  liability in the performance of any of its
duties          or in the  exercise  of any of its  rights  or  powers,  if it shall
 have  reasonable  ground  for          believing  that the repayment of such funds or
liability is not  reasonably  assured to it. Whether          or not expressly  provided
 herein,  every  provision of this Indenture  relating to the conduct or
         affecting the liability of or affording  protection to the Trustee shall be
subject to  Section 8.1          except to the extent provided herein.

8.15     Appointment
of Co-Trustee

(a)      It is the
purpose of this  Indenture  that there shall be no  violation  of any law of any
                  jurisdiction,  denying or restricting the right of banking corporations
or associations to                   transact  business  as  Trustee in such
 jurisdiction.  It is  recognized  that in case of                   litigation under
this Indenture or any Transaction Document,  and in particular in case of
                  the  enforcement  of any such  document on default,  or in case the
Trustee  deems that by                   reason of any present or future law of any
 jurisdiction  it may not  exercise  any of the                   powers,  rights or
remedies herein granted to the Trustee or hold title to the properties,
                  in trust, as herein granted,  or take any other action which may be
desirable or necessary                   in connection therewith,  the Trustee shall have
the power and may execute and deliver all                   instruments  necessary  to
 appoint  one  or  more  Persons  to  act  as a  co-trustee  or
                  co-trustees,  or separate trustee or separate trustees.  The following
 provisions of this                   Section 8.14 are adopted to these ends.

(b)      In the event
that the Trustee  appoints one or more Persons to act as a co-trustee or  co-trustees, or
separate trustee or separate trustees,  each and every remedy,  power,  right,  claim,
 demand,  cause of action, immunity, estate, title, interest and lien expressed or

- 58 -

intended by this
 Indenture to be exercised by or vested in or conveyed to the Trustee with respect
                  thereto shall be exercisable by and vested in such separate or
 co-trustee(s)  but only to                   the extent  necessary to enable such
 separate or  co-trustee(s)  to exercise such powers,                   rights and
remedies,  and every covenant and obligation  necessary to the exercise thereof
                  by such separate or  co-trustee(s)  shall run to and be  enforceable
 by them or either of                   them.

(c)      Should any
instrument in writing be required by the separate  trustee(s) or  co-trustee(s)
                  so appointed by the Trustee for more fully and certainly  vesting in
and confirming to him                   or it such properties,  rights, powers,  trusts,
duties and obligations,  any and all such                   instruments in writing shall,
on request,  be executed,  acknowledged and delivered by the                   Issuer. In
case any separate trustee or co-trustee,  or a successor to either,  shall die,
                  become incapable of acting,  resign or be removed,  all the estates,
 properties,  rights,                   powers,  trusts, duties and obligations of such
separate trustee or co-trustee,  so far as                   permitted by law,  shall
vest in and be exercised by the Trustee until the  appointment of                   a new
trustee or successor to such separate trustee or co-trustee.

(d)      Every
separate trustee and co-trustee  shall, to the extent permitted by law, be appointed
                  and act subject to the following provisions and conditions:

(i)      all rights,
 powers, duties and obligations conferred or imposed upon the Trustee
                           shall be conferred or imposed upon and  exercised or performed
by the Trustee and                            such  separate  trustee or  co-trustee
 jointly  (it being  understood  that such                            separate  trustee
or co-trustee is not authorized to act  separately  without the
                           Trustee joining in such act),  except (A) to the extent that
under any law of any                            jurisdiction  in  which  any  particular
 act or acts  are to be  performed,  the                            Trustee  shall be
 incompetent  or  unqualified  to perform such act or acts,  in
                           which event such rights,  powers,  duties and obligations
 (including the holding                            of title to any property or any
portion thereof in any such  jurisdiction)  shall                            be exercised
and performed  singly by such separate  trustee or  co-trustee,  but
                           solely at the  direction  of the  Trustee  and  (B) if at any
time the  long-term                            unsecured debt rating of such  co-trustee
by Moody's shall fall below that of the                            Trustee,  then the
 Trustee,  or another  co-trustee  appointed by the Trustee in
                           accordance  with this  Section 8.14,  shall  exercise  and
 perform  singly  such                            rights, powers, duties and obligations;

(ii)     no trustee
 hereunder shall be personally liable by reason of any act or omission
                           of any other trustee hereunder;

(iii)    the  Trustee
 may at any time accept the  resignation  of or remove any  separate
                           trustee or co-trustee; and

(iv)     each
co-trustee  appointed hereunder shall at all times be a bank with a combined
                           capital and surplus of at least  U.S.$100,000,000  and have a
long-term unsecured                            debt rating of at least "A3" by Moody's.

(e)      Any notice,
 request or other  writing  given to the Trustee  shall be deemed to have been
                  given to each of the then separate  trustees and  co-trustees,  as
effectively as if given                   to each of them.  Every  instrument  appointing
any separate  trustee or co-trustee  shall                   refer to this Indenture and
the conditions of this Article 8.

- 59 -

(f)      Any separate
 trustee or co-trustee  may at any time  constitute  the Trustee its agent or
                  attorney-in-fact  with full power and  authority,  to the extent not
prohibited by law, to                   do any lawful act under or in  respect  of this
 Indenture  on its behalf and in its name.                   If any separate trustee or
co-trustee shall die, become incapable of acting,  resign or be
                  removed, all of its estates, properties,  rights, remedies and trusts
shall vest in and be                   exercised by the Trustee,  to the extent
 permitted by law,  without the  appointment of a                   new or successor
trustee.

8.16     Notice of
Default

If a Default  or an
Event of  Default  occurs  and is  continuing  and if the  Trustee  has  actual
         knowledge thereof, as determined pursuant to Section 8.1(b)(x),  the Trustee
shall transmit to each          Noteholder  (with a copy to the  Insurer),  in the
 manner and to the  extent  provided  in Section          313(c) of the Trust  Indenture
Act,  notice of the Default or Event of Default as and to the extent          provided
 by the Trust  Indenture  Act the  earlier of 30 days after it occurs or 30 days after
the          Trustee has  knowledge of such  Default or an Event of Default.  Except in
the case of a Default or          Event of Default in payment of principal  of or
interest on any Note,  the Trustee may withhold the          notice if and so long as its
Board of  Directors,  or a committee  of its trust  officers,  in good          faith
determines that withholding the notice is in the interests of the Noteholders.

8.17     Eligibility;
Disqualification.

Upon qualification
of this Indenture under the Trust Indenture Act, this Indenture shall have a
Trustee who satisfies the requirement of Sections 310(a)(1), (2) and (5) of
the Trust Indenture Act. Notwithstanding the foregoing, the Trustee (or, in
the case of a corporation included in a bank holding company system, the
related bank holding company) shall have a combined capital and surplus of at
least U.S.$100,000,000 as set forth in its most recent published annual report of
condition. In addition, if the Trustee is a corporation included in a
bank holding company system, the Trustee, independently of such bank
holding company, shall meet the capital requirements of Section
310(a)(2) of the Trust Indenture Act. The Trustee shall comply with
Section 310(b) of the Trust Indenture Act; provided, however, that there
shall be excluded from the operation of Section 310(b)(1) of the Trust
Indenture Act any indenture or indentures under which other securities, or
certificates of interest or participation in other securities, of the Issuer
are outstanding, if the requirements for such exclusion set forth in Section 310(b)(1)
of the Trust Indenture Act are met. The provisions of Section 310 of the
Trust Indenture Act shall apply to the Issuer and any other obligor of the
Notes. 

8.18     Preferential
Collection of Claims Against Issuer.

The Trustee shall
comply with Section  311(a) of the Trust  Indenture  Act,  excluding any creditor
         relationship  listed in Section  311(b) of the Trust  Indenture  Act. A Trustee
who has resigned or          been removed shall be subject to Section 311(a) of the Trust
Indenture Act to the extent  indicated          therein.  The  provisions  of Section 311
of the Trust  Indenture Act shall apply to the Issuer and          any other obligor of
the Notes.

9. CONCERNING THE NOTEHOLDERS

9.1      Acts of
Noteholders

(a)      Any request,
demand, authorization,  direction, notice, consent, waiver, modification,  supplement, or
other action provided by this Indenture to be given or taken by

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Noteholders
(collectively, an "Act" of such Noteholders, which term also shall refer to the
instruments or record evidencing or embodying the same) may be embodied
in and evidenced by one or more instruments of substantially similar tenor
signed by such Noteholders in person or by an agent duly appointed in
writing or, alternatively, may be embodied in and evidenced by the
record of Noteholders voting in favor thereof, either in person or by proxies duly
appointed in writing, at any meeting of Noteholders duly called and
held in accordance with the provisions of Article 10, or a
combination of such instruments and any such record. Except as herein
otherwise expressly provided, such action shall become effective
when such instrument or instruments or record, or both, are delivered to the Trustee,
and when it is specifically required herein, to the Issuer. Proof
of execution of any such instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 8.1) conclusive in favor of the Trustee and the Issuer, if
made in the manner provided in this Section 9.1. The record of any
meeting of Noteholders shall be proved in the manner provided in Section 10.5.  

(b)      The fact and
date of the execution by any Person of any such  instrument or writing may be proved by
the  certificate                   of any public or other officer of any jurisdiction
 authorized to take  acknowledgments  of deeds or administer oaths                   that
the Person executing such instrument  acknowledged to such officer the execution thereof,
 or by an affidavit of                   a witness to such execution sworn to before any
such notary or other such officer,  and where such execution is by an
                  officer of a corporation or association or of the Issuer, on behalf of
such  corporation,  association or the Issuer,                   such certificate or
affidavit shall also constitute  sufficient proof of such Person's  authority.  The fact
and date                   of the execution of any such  instrument or writing,  or the
authority of the Person  executing the same, may also be                   proved in any
other manner which the Trustee deems sufficient. 

(c)      The ownership
of the Notes,  the  principal  amount and serial  numbers of Notes held by any Person,
 and the date or                   dates of holding the same,  shall be proved by the
Note  Register and the Trustee  shall not be affected by notice to                   the
contrary. 

(d)      Any Act by
the  Noteholders  (i) shall bind the holder of each Note and every future  Noteholder of
such Note and the                   Noteholder of every Note issued upon the transfer
 thereof or the exchange  therefor or in lieu  thereof,  whether or                   not
notation of such action is made upon such Note, and whether or not such  Noteholder has
given its consent (unless                   required  under  this  Indenture)  to such
Act or was  present  at any duly held  meeting,  and  (ii) shall  be valid
                  notwithstanding  that such Act is taken in connection  with the
transfer of such Note to any other Person,  including                   the Issuer or any
Affiliate thereof. 

(e)      Until such
time as written  instruments  shall have been  delivered  with  respect  to the
 requisite  percentage  of                   principal amount of Notes for the Act
contemplated by such  instruments,  any such instrument  executed and delivered
                  by or on behalf of a Noteholder  may be revoked  with  respect to any
or all of such Notes by written  notice by such                   Noteholder (or its duly
appointed agent) or any subsequent  Noteholder (or its duly appointed  agent),  proven in
the                   manner in which such instrument was proven unless such instrument
is by its terms expressly irrevocable. 

(f)      Notes
 authenticated  and delivered  after any Act of  Noteholders  may, and shall if required
by the Issuer,  bear a                   notation in form  approved by the Issuer as to
any action  taken by such Act of  Noteholders.  If the Issuer shall so
                  determine,  new Notes so modified as to

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 conform,  in the opinion of the
Issuer,  to such action,  may be prepared and                   executed by the Issuer
and authenticated and delivered by the Trustee in exchange for outstanding Notes. 

(g)      The Issuer
may, in the  circumstances  permitted by the Trust  Indenture  Act,  but shall not be
obligated  to, fix a                   record date for the purpose of determining  the
Noteholders  entitled to sign any instrument  evidencing or embodying
                  an Act of the  Noteholders or to vote on any action.  If a record date
is fixed,  those Persons who were  Noteholders                   at such record date,
 and only those Persons (or their duly appointed  proxies or agents),  shall be entitled
to sign                   any such instrument  evidencing or embodying an Act of
Noteholders,  to revoke any such instrument  previously signed                   or to
vote on such action,  as the case may be,  whether or not such Persons  continue to be
 Noteholders  after such                   record date.  If not set by the Issuer prior
to the first  solicitation  of a Noteholder  by any Person in respect of
                  any such  action,  or, the case of any such vote,  prior to such vote,
 the record  date for any such  action or vote                   shall be the 30th day
prior to such  first  solicitation  or vote,  as the case may be. No such  instrument
 shall be                   valid or  effective  if signed  more  than 90 days  after
 such  record  date,  and may be  revoked  as  provided  in                   paragraph (e)
 above.  Promptly  after any record  date is set by the Issuer  pursuant  to this  Section 9.1(g),
 the                   Issuer,  at its own expense,  shall cause notice of such record
date,  the proposed  action by the  Noteholders to be                   given to the
Trustee in writing and to each Noteholder in the manner set forth in Section 15.4. 

(h)      Without
 limiting the  foregoing,  a Noteholder  entitled  hereunder to take any action
 hereunder with regard to any                   particular Note may do so with regard to
all or any part of the principal  amount of such Note or by one or more duly
                  appointed  agents,  each of which  may do so  pursuant  to such
 appointment  with  regard to all or any part of such                   principal amount. 

(i)      The Initial
 Notes and the Exchange  Notes shall vote and consent  together on all matters as one
class,  and none of                   the Notes, and no tranche of Notes, shall have the
right to vote or consent as a separate class on any matter. 

9.2      Notes Owned
by Issuer and Affiliates Deemed Not Outstanding 

In  determining
 whether the holders of the  requisite  aggregate  principal  amount of Notes have
 concurred  in any request,          demand,  authorization,  direction, notice, consent
and waiver or other act under this Indenture, Notes which are owned by the
         Issuer or its Affiliates  shall be  disregarded  and deemed not to be
 Outstanding  for the purpose of any such  determination          except that for the
purposes of determining  whether the Trustee shall be protected in relying on any such
direction,  consent          or waiver,  only Notes which a  Responsible  Officer of the
 Trustee  actually  knows to be so owned shall be so  disregarded.          The Issuer
shall furnish the Trustee,  upon its reasonable  request,  with a list of such
Affiliates.  In case of a dispute as          to such right, any decision by the Trustee,
taken upon the advice of counsel, shall be full protection to the Trustee. 

10. NOTEHOLDERS'
MEETINGS  

10.1     Purposes for
Which Noteholders' Meetings May Be Called 

A  meeting  of
 Noteholders  may be  called  at any time and from  time to time  pursuant  to this
 Article 10  for any of the          following purposes: 

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(a)      to give any
notice to the Issuer or to the  Trustee,  or to give any  directions  to the  Trustee,
 or to waive or to                   consent to the waiving of any default  hereunder and
its  consequences,  or to take any other action authorized to be                   taken
by Noteholders pursuant to Article 7; 

(b)      to remove the
Trustee and appoint a successor Trustee pursuant to Article 8; 

(c)      to consent to
the execution of an indenture or indentures  supplemental  hereto pursuant to Section 11.1,
 which such                   execution shall be subject to the prior written consent of
the Central Bank of Brazil; or 

(d)      to take any
other action authorized to be taken by or on behalf of the holders of any specified
 aggregate  principal                   amount of the Notes under any other provision of
this Indenture or under applicable law. 

10.2     Trustee,
Issuer and Noteholders May Call Meeting 

The Trustee may call a
meeting of the Noteholders at any time by giving notice thereof as provided in Section 15.4.
In case the Issuer, pursuant to a Board Resolution, or the holders of at
least 10% in aggregate principal amount of the Notes then Outstanding shall
have requested the Trustee to call a meeting of Noteholders, by written request
setting forth in general terms the action proposed to be taken at the meeting,
and the Trustee shall not have given notice of such meeting within 20 days
after receipt of such request, then the Issuer or such Noteholders in the amount above
specified may determine the time and the place in the Borough of Manhattan,
The City of New York, for such meeting and may call such meeting to take any
action authorized in Section 10.1 by giving notice thereof as provided in
Section 15.4. Notice of every meeting of the Noteholders shall set forth the
time and place of such meeting and, in general terms, the action proposed to be
taken at such meeting and shall be given not less than 30 nor more than 60
days prior to the date fixed for the meeting; provided, that, in the case of
any meeting reconvened after adjournment, such notice shall be given not less than 10
nor more than 60 days prior to the date fixed for such meeting.  

10.3     Persons
Entitled to Vote at Meeting 

To be entitled to vote
at any meeting of  Noteholders  a person shall be (a) the  Persons who were  Noteholders
 on the record          date  determined  pursuant to  Section 9.1(g)  or (b) a  person
 appointed by an  instrument  in writing as proxy for any such          Noteholder.  The
only  persons  who shall be entitled  to be present or to speak at any  meeting of
 Noteholders  shall be the          persons  entitled to vote at such  meeting and their
 counsel and any  representatives  of the Trustee and its counsel and any
         representatives of the Issuer and its counsel. 

10.4     Determination
of Voting Rights; Conduct and Adjournment of Meeting 

(a)
     Notwithstanding  any other provisions of this Indenture,  the Trustee may make such
reasonable  regulations as it may                   deem advisable for any meeting of
 Noteholders,  in regard to proof of the holding of Notes and of the appointment of
                  proxies,  and in regard to the  appointment  and duties of inspectors
of votes,  the  submission  and  examination of                   proxies,  certificates
and other evidence of the right to vote, and such other matters  concerning the conduct
of the                   meeting as it shall think fit. Such regulations may provide that
written instruments  appointing proxies,  regular on                   their face, may be
presumed valid and genuine  without the proof  specified in Section 9.1 or other proof.
 Except as                   otherwise  permitted  or  required  by any such
 regulations,  the  holding  of Notes  shall be

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 proved in the  manner
                  specified  in  Section 9.1  and the  appointment  of any  proxy  shall
be  proved  in the  manner  specified  in said                   Section 9.1  or by
having the  signature  of the person  executing  the proxy  witnessed or  guaranteed  by
any bank,                   banker, trust company or firm satisfactory to the Trustee. 

(b)      The Issuer or
the  Noteholders  calling  the  meeting,  as the case may be,  shall  appoint a temporary
 chairman.  A                   permanent  chairman  and a  permanent  secretary  of the
 meeting  shall be elected by vote of the  Noteholders  of a                   majority
in aggregate principal amount of the Notes represented at the meeting and entitled to
vote. 

(c) Subject to
the provisions of Section 9.2, at any meeting each Noteholder or proxy shall be
entitled to one vote for each U.S.$10,000 principal amount of Notes
held or represented by him; provided, however, that no vote shall be cast
or counted at any meeting in respect of any Note challenged as not
Outstanding and ruled by the chairman of the meeting to be not
Outstanding. The chairman of the meeting shall have no right to vote other than by
virtue of Notes held by him or instruments in writing as aforesaid
duly designating him as the person to vote on behalf of other
Noteholders. Any meeting of Noteholders duly called pursuant to Section 10.2 may be
adjourned from time to time, and the meeting may be held as so
adjourned upon notice as set forth in Section 10.2. At any meeting, the
presence of persons holding or representing Notes with respect to
which such meeting is being held in an aggregate principal amount
sufficient to take action upon the business for the transaction of which such meeting
was called shall be necessary to constitute a quorum; but, if
less than a quorum be present, the persons holding or
representing a majority of the Notes represented at the meeting may
adjourn such meeting with the same effect, for all intents and
purposes, as though a quorum had been present.  

10.5     Counting
Votes and Recording Action of Meeting 

The vote  upon any
 resolution  submitted  to any  meeting  of  Noteholders  shall be by  written  ballots
 on which  shall be          subscribed  the  signatures  of the  Noteholders  or of
their  representatives  by proxy and the serial  numbers and principal          amounts
of the Notes held or  represented  by them.  The permanent  chairman of the meeting
 shall  appoint two  inspectors of          votes who shall  count all votes  cast at the
 meeting  for or  against  any  resolution  and who shall make and file with the
         secretary  of the  meeting  their  verified  written  reports  in  duplicate  of
all votes  cast at the  meeting.  A record in          duplicate  of the  proceedings  of
each  meeting of  Noteholders  shall be prepared by the  secretary of the meeting and
there          shall be attached to said record the  original  reports of the  inspectors
 of votes on any vote by ballot  taken  thereat and          affidavits  by one or more
persons  having  knowledge  of the facts  setting  forth a copy of the notice of the
 meeting.  The          record  shall show the serial  numbers of the Notes voting in
favor of or against any  resolution.  The record shall be signed          and verified by
the  affidavits of the  permanent  chairman and  secretary of the meeting and one of the
 duplicates  shall be          delivered to the Issuer and the other to the Trustee to be
preserved by the Trustee,  the latter to have attached  thereto the          ballots
voted at the meeting.  Any record so signed and verified shall be conclusive evidence of
the matters therein stated. 

11. SUPPLEMENTAL
INDENTURES  

11.1     Supplemental
Indenture with Consent of Noteholders 

(a)
     Notwithstanding  any  provision of this Section 11, the Trustee and the Issuer shall
not make any  amendments  to and                   shall not waive any terms or
 conditions  of the Notes and/or

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 this  Indenture  without  obtaining  the prior  written
                  consent of the Insurer in accordance with the terms of the Insurance
Policy. 

(b) With the
consent of the Majority Noteholders, the Issuer, when authorized by a Board
Resolution, may, and the Trustee, subject to Sections 11.3 and 11.4,
shall, enter into an indenture or indentures supplemental hereto for the
purpose of amending the provisions of this Indenture or of
modifying in any manner the rights of the Noteholders under this
Indenture; provided, however, that without the consent of the Noteholder of each
Outstanding Note affected thereby, no such supplemental indenture
shall cause any of the following:  

(i)      change the
maturity of any payment of the  principal  of, or any  installment  of interest on, any
Note,  or                            reduce the principal amount thereof or the rate of
interest  thereon,  or change the method of computing the
                           amount of principal  thereof or interest  payable  thereon on
any date or change any place of payment where,                            or the coin or
currency in which, the principal of or interest  (including  Additional  Amounts) on any
Note                            is  payable,  or impair the right of the  Noteholders  to
 institute  suit for the  enforcement  of any such                            payment on
or after the  maturity or the date of payment,  as the case may be,  thereof  (or, in the
case of                            redemption or repayment,  on or after the Optional
Redemption Date or the Payment Date, as the case may be),                            or
modify the  provisions  of this  Indenture  with  respect to the  subordination  of the
Notes in a manner                            adverse to the Noteholders; or 

(ii)     reduce the
percentage in aggregate  principal amount of the Outstanding  Notes, the consent of whose
holders                            is required for any such supplemental  indenture, or
the consent of whose holders is required for any waiver                            of
 compliance  with  certain  provisions  of  this  Indenture  or  certain  defaults
 hereunder  and  their                            consequences, provided for in this
Indenture; or 

(iii)    modify any of
the provisions of this Section or  Section 7.4,  except to increase any such  percentage
or to                            provide that certain other  provisions of this Indenture
cannot be modified or waived without the consent of                            each
Noteholder affected thereby. 

(c)      Upon receipt
by the Trustee of Board Resolutions and such other  documentation as the Trustee may
reasonably  require                   and upon the filing  with the  Trustee of evidence
 of the Act of said  Noteholders,  the  Trustee  shall join in the
                  execution of such  supplemental  indenture or other  instrument,  as
the case may be,  subject to the  provisions  of                   Sections 11.3 and 11.4. 

(d)      It shall not
be  necessary  for any Act of  Noteholders  under this  Section to approve  the
 particular  form of any                   proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof. 

(e)      After an
amendment  under this  Section 11.1  becomes  effective,  the Issuer will mail to the
 Noteholders  a notice                   briefly describing such amendment.  The failure
to give such notice to all Noteholders,  or any defect therein,  will
                  not impair or affect the validity of an amendment under this Section 11.1. 

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11.2     Supplemental
Indentures Without Consent of Noteholders 

Notwithstanding
 anything to the contrary  provided for in Section 11.1  hereof (but subject to Section
11.1(a)  hereof),  the          Issuer,  when  authorized  by a Board  Resolution,  at
any  time and  from  time to time,  may,  without  the  consent  of any
         Noteholders,  enter  into one or more  indentures  supplemental  hereto in form
 satisfactory  to the  Trustee  for any of the          following purposes: 

(a)      to establish
the form and terms of Notes permitted by Sections 2.1 and 2.5; or 

(b)      to evidence
the  succession of another entity to the Issuer and the assumption by any such successor
of the covenants                   of the Issuer herein contained; or 

(c)      to evidence
the succession of a new Trustee hereunder pursuant to Section 8.9; or 

(d)      to convey,
 transfer  and  assign to the  Trustee  properties  or assets to secure  the  Notes,  and
to  amplify  the                   description of any property at any time subject to
this Indenture or the Transaction  Documents or to assure,  convey                   and
confirm unto the Trustee any  property  subject or required to be subject to this
 Indenture  or the  Transaction                   Documents; or 

(e)      to modify,
 eliminate or add to the  provisions  of this  Indenture to such extent as shall be
necessary to effect or                   maintain its  qualification  under the Trust
Indenture Act, if necessary,  or under any similar United States federal
                  statute hereafter  enacted,  and to add to this Indenture such other
provisions as may be expressly  permitted by the                   Trust Indenture Act,
excluding,  however,  the provisions referred to in Section 316(a)(2) of the Trust
Indenture Act                   as in effect at the date as of which this  instrument
 was  executed or any  corresponding  provision  in any similar                   United
States federal statute hereafter enacted; or 

(f)      to permit or
facilitate the issuance of Notes in uncertificated form; or 

(g)      to cure any
ambiguity,  to correct or supplement any provision in this  Indenture or the  Transaction
 Documents that                   may be defective or inconsistent  with any other
provision  herein,  or to make any other  provisions with respect to
                  matters or questions  arising under this Indenture,  provided such
action shall not adversely affect the interests of                   the Noteholders in
any material respect; or 

(h)      to provide
for the  issuance of  Additional  Notes,  which shall have terms  substantially
 identical in all material                   respects to the Original Notes (except for
any terms  established in or pursuant to a Board  Resolution in accordance
                  with  Section 2.1(c)  or 2.2(b)),  and which shall be treated,
 together with any  outstanding  Original  Notes, as a                   single issue of
securities; or 

(i)      to provide
for the  issuance of  Exchange  Notes,  which shall have terms  substantially  identical
 in all  material                   respects to the Initial Notes such  Exchanged  Notes
have been  exchanged  for, and which shall be treated,  together                   with
any outstanding Initial Notes, as a single issue of securities; or 

(j) to add to,
change or eliminate any of the provisions of Article 14 in respect of any series of
Notes; provided, that any such action pursuant to this clause (i)
shall not adversely affect the interests of the Noteholders in any
material respect.  

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11.3     Execution of
Supplemental Indentures 

In executing
 supplemental  indenture permitted by this Article 11 or the modifications  thereby of
the trusts created by this          Indenture,  the Trustee shall be provided  with,  and
(subject to  Section 8.1)  shall be fully  protected in relying upon, an          Opinion
of Counsel  stating that the execution of such  supplemental  indenture is  authorized or
permitted by this  Indenture          and all  conditions  precedent to the execution of
such  supplemental  indenture have been met. The Trustee may, but shall not          be
obligated to, enter into any  supplemental  indentures  which affect the Trustee's own
rights,  duties or immunities  under          this Indenture, the Notes or otherwise. 

11.4     Effect of
Supplemental Indentures 

Upon the  execution of
any  supplemental  indenture  under this  Article 11,  this  Indenture  shall be modified
in accordance          therewith,  and such  supplemental  indenture  shall form a part
of this  Indenture  for all  purposes;  and every  Noteholder          theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby. 

11.5     Conformity
with Trust Indenture Act 

Every  supplemental
 indenture  executed  pursuant to this Article 11 shall conform to the requirements of
the Trust Indenture          Act as then in effect. 

11.6     Reference in
Notes to Supplemental Indentures 

Notes  authenticated
 and delivered  after the execution of any  supplemental  indenture  pursuant to this
Article 11 may, and          shall if  required by the Issuer,  bear a notation  in form
 approved by the Issuer and the Trustee as to any matter  provided          for in such
 supplemental  indenture;  and, in such case,  suitable  notation may be made upon
Outstanding  Notes after proper          presentation  and demand.  If the Issuer  shall
so  determine,  new Notes so  modified  as to  conform,  in the opinion of the
         Issuer and the Trustee,  to any such  supplemental  indenture may be prepared
and executed by the Issuer and authenticated and          delivered by the Trustee in
exchange for Outstanding Notes. 

11.7     Moody's
Consent and Notification 

(a)      The Issuer
and the Trustee  may not enter into an  indenture  or  indentures  supplemental  hereto
for the purpose of                   amending the proviso in Section 11.1(b)  without the
prior written consent of Moody's,  if Moody's is then rating the                   Notes. 

(b)      The Trustee
may not enter into an amendment or  supplement  to the Insurance  Policy  without the
written  consent of                   Moody’s,  if Moody’s is then rating the Notes,
 unless such  amendment or  supplement  is to cure any ambiguity or to
                  correct or  supplement  any provision in the Insurance  Policy that may
be defective or  inconsistent  with any other                   provision therein. 

(c)      Any
 amendments to this  Indenture or any terms and  conditions of the Notes will be promptly
 notified in writing by                   the Issuer to Moody's, if Moody's is then
rating the Notes. 

11.8     Consent of
the Central Bank of Brazil 

Notwithstanding any
provision of this Article 11, the execution of any indenture or supplemental  indenture,
 the amendment of          any of the  Transaction  Documents  and/or the Notes  pursuant
to this

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  Article 11 or the  issuance of  Additional  Notes,  is          subject to the
prior written consent of the Central Bank of Brazil. 

12. SATISFACTION
AND DISCHARGE  

12.1     Satisfaction
and Discharge of Notes 

(a)      The Notes
shall,  on or prior to the Interest  Payment Date with respect to the  repayment of
principal  thereof,  be                   deemed to have been paid for all purposes of
this  Indenture,  and the entire  indebtedness  of the Issuer in respect
                  thereof shall be deemed to have been satisfied and discharged, upon
satisfaction of the following conditions: 

(i)      either  (A) the
 Issuer shall have given a notice of redemption to each  Noteholder  pursuant to Section 4.4
                           and all other  conditions  to such  redemption  contained in
Article 4  shall have been met or (B) the Notes                            shall have
otherwise become due and payable or shall become due and payable within one year; 

(ii)     the Issuer
shall have irrevocably  deposited or caused to be deposited with the Trustee,  in trust,
money in                            an amount which shall be  sufficient to pay when due
all the principal of and interest due and to become due                            on the
Notes in U.S.  dollars  for each  tranche  thereof to  maturity  or  redemption,  as the
case may be,                            including, for the avoidance of doubt, all
amounts payable to the Insurer under this Indenture; 

(iii)    if any such
deposit of money shall have been made prior to the  Maturity  Date,  or the Optional
 Redemption                            Date of such Notes,  as the case may be, the
Issuer  shall have  delivered  to the  Trustee an Issuer  Order
                           stating that such money shall be held by the Trustee in trust; 

(iv)     the  Issuer
has  delivered  irrevocable  instructions  to the  Trustee  under  this  Indenture  to
apply the                            deposited money toward the payment of principal of
and interest on the Notes; 

(v)      no Default or
Event of Default shall have  occurred and be continuing on the date of such deposit,  and
such                            deposit will not result in a breach or violation of, or
constitute a default under,  any other instrument to                            which the
Issuer is a party or by which the Issuer is bound,  or any laws or regulations to which
the Issuer                            is subject; 

(vi)     in the case
of redemption of Notes,  the Issuer Order with respect to such redemption  pursuant to
Article 4                            shall have been given to the Trustee; and 

(vii)    there shall
have been  delivered  to the Trustee an Opinion of Counsel to the effect that such
 satisfaction                            and  discharge  of the  indebtedness  of the
Issuer with  respect to the Notes shall not be deemed to be, or
                           result in, a taxable  event with respect to the  Noteholders
 for purposes of United States  federal  income                            taxation
 unless the Trustee shall have received  documentary  evidence that each  Noteholder
 either is not                            subject to, or is exempt from, United States
federal income taxation. 

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(b)      Upon
 satisfaction  of the aforesaid  conditions  with respect to the Notes,  the Trustee
 shall,  upon receipt of an                   Issuer Order, execute proper instruments
acknowledging satisfaction and discharge of the Notes. 

(c)      In the event
that Notes which shall be deemed to have been paid as  provided in this  Section 12.1  do
not mature and                   are not to be redeemed  within the 60-day  period
 commencing  on the date of the deposit with the Trustee of moneys,                   the
Issuer shall, as promptly as practicable,  give a notice,  in accordance with  Section 15.4,
 to such Noteholders                   (with a copy of such  notice  to  Moody's)  to the
 effect  that  such  Notes  are  deemed  to have been paid and the
                  circumstances thereof. 

(d)
     Notwithstanding  the  satisfaction  and discharge of any Notes as aforesaid,  the
 obligations  of the Issuer and the                   Trustee in respect of such Notes
under  Sections 2.3,  2.12,  2.13,  2.14,  2.15, 2.16, 2.17, 2.18, 2.20, 2.21, 6.11,
                  8.5, 8.9 and 8.12 and this Article 12 shall survive such satisfaction
and discharge. 

12.2     Satisfaction
and Discharge of Indenture 

(a)      This
Indenture shall upon the Issuer Order cease to be of further effect (except as herein
expressly  provided),  and                   the Trustee, at the expense of the Issuer,
shall execute proper instruments acknowledging  satisfaction and discharge
                  of this Indenture, when: 

(i)      either: 

(x)      all Notes
theretofore  authenticated and delivered (other than (A) Notes which have been destroyed,
                                    lost or stolen and which have been replaced or paid
as provided in  Section 2.14,  (B) Notes deemed                                     to
have been paid in  accordance  with  Section 12.1  and (C) Notes  for whose  payments
 money has                                     theretofore  been  deposited in trust or
segregated  and held in trust by the Issuer and thereafter
                                    repaid to the Issuer or  discharged  from such trust,
 as provided  in  Section 6.11(g))  have been
                                    delivered to the Trustee for cancellation; or 

(y)      all Notes not
theretofore  delivered to the Trustee for  cancellation  shall be deemed to have been
                                    paid in accordance with Section 12.1; and 

(ii)     all other
sums due and payable hereunder  (including,  without limitation,  amounts payable
hereunder to the                            Insurer) have been paid; and 

(iii)    the Issuer
has  delivered to the Trustee an Officer's  Certificate  and an Opinion of Counsel,  each
stating                            that all  conditions  precedent  herein  provided for
 relating to the  satisfaction  and  discharge of this
                           Indenture have been complied with. 

(b)      Upon
satisfaction of the aforesaid  conditions,  the Trustee shall,  upon receipt of an Issuer
Order,  execute proper                   instruments acknowledging  satisfaction and
discharge of the Indenture and take all other action reasonably requested
                  by the Issuer to evidence the termination of any and all liens created
by or with respect to this Indenture. 

(c)
     Notwithstanding the satisfaction and discharge of this Indenture as aforesaid,  the
obligations of the Issuer and the                   Trustee under  Sections 2.3,  2.12,
 2.13, 2.14, 2.15, 2.16,

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 2.17, 2.18, 2.20, 2.21, 6.11, 8.5, 8.9 and 8.12 and this
                  Article 12 shall survive such satisfaction and discharge. 

(d)      Upon
 satisfaction  and  discharge of this  Indenture as provided in this  Section 12.2,  the
Trustee  shall  assign,                   transfer and turn over to or upon the order of
the Issuer,  any and all money,  securities  and other  property  then
                  held by the Trustee for the  benefit of the  Noteholders,  other than
money  deposited  with the Trustee  pursuant to                   Section 12.1(a) or
6.11(e) and interest and other amounts earned or received thereon. 

12.3     Application
of Trust Money 

Subject to  Section 6.11(g),
 the money deposited with the Trustee pursuant to Section 12.1 shall not be withdrawn or
used for          any purpose  other  than,  and shall be held in trust for and applied
to (either  directly or through any Paying  Agent),  the          payment of the
 principal  of and  interest  on the Notes or  portions of  principal  amount  thereof in
respect of which such          deposit was made.  Money deposited and held in trust
pursuant to this Article 12  shall not be subject to claim of the holders          of
Other Obligations. 

13. DEFEASANCE  

13.1     Issuer's
Option to Effect Defeasance or Covenant Defeasance 

The Issuer  may,
 subject to having  obtained  the prior  approval  of the  Central  Bank of Brazil,  at
its option by a Board          Resolution,  at any time,  elect to have either  Section 13.2
 or  Section 13.3  applied to the Notes upon compliance with the          conditions set
forth below in this Article 13. 

13.2     Defeasance
and Discharge 

Upon the Issuer's
exercise of the option provided in Section 13.1 to have this Section 13.2 applied to
all the Notes, the Issuer shall be deemed to have been discharged from its
obligations with respect to the Notes Outstanding on the date the conditions
in Section 13.4 are satisfied (a "Defeasance"). For this purpose, such defeasance
means that the Issuer shall be deemed to have paid and discharged the entire
indebtedness represented by the Notes and to have satisfied all its other
obligations under the Notes and this Indenture, including the provisions of
Article 12 (and the Trustee, at the expense of the Issuer, shall execute
proper instruments acknowledging the same), except for the following, which shall
survive until otherwise terminated or discharged hereunder: (a) the rights
of such Noteholders to receive, solely from the trust fund described in
Section 13.4 and as more fully set forth in such Section, payments in respect of the
principal of and interest (including any Additional Amounts) on the Notes when
such payments are due, (b) the Issuer's obligations with respect to such
Notes under Sections 2.3, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.20, 2.21, 6.12, 8.9
and 8.12 and such obligations as shall be ancillary thereto, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (d) this
Article 13 and the Issuer's obligations to the Trustee under Section 8.5.
Subject to compliance with this Article 13, the Issuer may exercise its
option under this Section 13.2 notwithstanding the prior exercise of its option under
Section 13.3.  

13.3     Covenant
Defeasance 

Upon the Issuer's
exercise of the option provided in Section 13.1 to have this Section 13.3 applied to
the Notes, the Issuer shall be released from its obligations under Section 6
(other than Sections 6.1, 6.5 and 6.11) with respect to the Notes (a "Covenant
Defeasance") and the  

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provisions of Article 14  shall cease to be effective,  in each
case on and after the date the          conditions set forth in Section 13.4  are
satisfied.  For this purpose,  such covenant  defeasance means that, with respect to
         the Notes,  the Issuer may omit to comply with and shall have no  liability in
respect of any term,  condition  or  limitation          set forth in any such Section or
clause,  whether  directly or indirectly by reason of any reference  elsewhere  herein to
any          such Section or clause or by reason of any  reference in any such  Section
or clause to any other  provision  herein or in any          other document, but the
remainder of this Indenture shall be unaffected thereby. 

13.4     Conditions to
Defeasance or Covenant Defeasance 

The following shall be
the conditions to application of either Section 13.2 or Section 13.3 to the then
Outstanding Notes: 

(a)      The Issuer
shall  irrevocably  have  deposited or caused to be deposited with the Trustee in trust
for the purpose of                   making the following  payments  specifically
 pledged as security  for, and  dedicated  solely to, the benefit of the
                  Noteholders,  (i) U.S.  dollars,  or (ii) Permitted  Investments or
(iii) a  combination  thereof, in an amount which                   through the
 scheduled  payment of principal  and  interest in respect  thereof in  accordance  with
their terms will                   provide, not later than one day before the due date of
any payment,  money in an amount,  sufficient,  in the opinion                   of an
internationally  recognized firm of independent public accountants expressed in a written
certification thereof                   delivered to the Trustee, to pay and discharge,
 and which shall be applied by the Trustee to pay and discharge,  the
                  principal of and each  installment of interest  (including  Additional
 Amounts) on the Notes on the Interest Payment                   Date or the Maturity
Date, as the case may be,  (including  Additional  Amounts and amounts payable  hereunder
to the                   Insurer) in accordance with the terms of this Indenture and the
Notes.  Notwithstanding  the definition of "Permitted                   Investments" set
out in Section 1.1 above, a Permitted  Investment in this Section must have a rating of
at least Aa3                   by Moody's or its equivalent. 

(b)      In the case
of an election under  Section 13.2,  the Issuer shall have delivered to the Trustee an
Opinion of Counsel                   stating that (i) the Issuer has received from, or
there has been published by, the U.S.  Internal  Revenue  Service a
                  ruling,  or (ii) since  the date of this Indenture  there has been a
change in the  applicable  United States federal                   income tax law or the
 interpretation  thereof,  in either case to the effect  that,  and based  thereon such
opinion                   shall confirm that,  the  Noteholders  will not recognize
 income,  gain or loss for United States federal income tax                   purposes as
a result of such deposit,  defeasance  and discharge and will be subject to United States
 federal income                   tax on the same  amount,  in the same  manner  and at
the same  time as  would  have  been the case if such  deposit,
                  defeasance and discharge had not occurred,  unless the Trustee has
received documentary evidence that each Noteholder                   is either not
subject to or is exempt from United States federal income tax. 

(c)      In the case
of an election under  Section 13.3,  the Issuer shall have delivered to the Trustee an
Opinion of Counsel                   to the effect that the  Noteholders  will not
recognize  income,  gain or loss for United States  federal  income tax
                  purposes as a result of such deposit and covenant  defeasance and will
be subject to United States federal income tax                   on the same amount,  in
the same manner and at the same time as would have been the case if such deposit and
covenant                   defeasance had not occurred. 

(d)      No Default or
Event of Default  shall have  occurred and be  continuing  on the date of such deposit
and,  insofar as                   subsections 7.1(c)  and (d) inclusive are concerned,
 at any time 

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during the period ending on the 123rd day after the                   date
of such deposit or, if longer,  ending on the day following  the  expiration  of the
longest  preference  period                   applicable  to the Issuer in respect of
such deposit (it being  understood  that this  condition  shall not be deemed
                  satisfied until the expiration of such period). 

(e)      Such
Defeasance or Covenant  Defeasance  shall not result in a breach or violation of, or
constitute a default under,                   any other agreement or instrument to which
the Issuer is a party or by which it is bound. 

(f)      The Issuer
shall have delivered to the Trustee an Opinion of Counsel to the effect that payment of
amounts  deposited                   in trust with the Trustee as provided  in  clause (a)
 hereof  will not be subject to future  taxes,  duties,  fines,
                  penalties,  assessments or other governmental charges imposed, levied,
collected,  withheld or assessed by, within or                   on behalf of a Taxing
 Jurisdiction,  except to the extent that Additional Amounts in respect thereof shall
have been                   deposited in trust with the Trustee as provided in clause (a)
hereof. 

(g)      The Issuer
shall have delivered to the Trustee an Officer's  Certificate and an Opinion of Counsel,
each stating that                   all  conditions  precedent  provided  for  relating
 to either the  Defeasance  under  Section 13.2  or the  Covenant
                  Defeasance under Section 13.3, as the case may be, have been complied
with. 

(h)      Such
Defeasance or Covenant  Defeasance  shall not (i) cause the Trustee to have a conflicting
 interest for purposes                   of the Trust  Indenture  Act with respect to any
 securities of the Issuer or  (ii) result  in the trust arising from
                  such deposit constituting an investment company as defined in the
Investment Company Act of 1940, as amended. 

(i)      At the time
of such deposit,  (i) no default in the payment of all or a portion of principal of (or
premium,  if any)                   or interest on any Other Obligations  shall have
occurred and be continuing,  and no event of default with respect to
                  any Other  Obligations  shall have  occurred  and be  continuing  and
shall have  resulted in such Other  Obligations                   becoming or being
declared due and payable prior to the date on which it would  otherwise have become due
and payable                   and (ii) no  other event of default  with respect to any
Other  Obligations  shall have  occurred  and be  continuing                   permitting
 (after notice or the lapse of time or both) the holders of such Other Obligations (or a
trustee on behalf                   of the  holders  thereof) to declare  such Other
 Obligations  due and payable  prior to the date on which they would
                  otherwise have become due and payable,  or, in the case of either clause (i)
or clause (ii)  above, each such default                   or event of default shall have
been cured or waived or shall have ceased to exist. 

13.5     Deposited
Money and Permitted Investments to Be Held in Trust; Other Miscellaneous Provisions 

(a)      Subject to
the provisions of Section 6.11(g),  all money and Permitted  Investments  (including the
proceeds thereof)                   deposited  with the Trustee  pursuant to  Section 13.4
 in respect of the Notes shall be held in trust and applied by                   the
Trustee,  in accordance with the provisions of the Notes and this Indenture,  to the
payment,  either directly or                   through any Paying Agent (but not
including the Issuer acting as its own Paying Agent) as the Trustee may  determine,
                  to the  Noteholders,  of all sums due and to become due thereon in
respect of principal and interest,  but such money                   need not be
 segregated  from other funds

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 except to the extent  required by law.  Money so held in
trust shall not be                   subject to the provisions of Article 14. 

(b)      The Issuer
shall pay and indemnify the Trustee  against any tax, fee or other charge  imposed on or
assessed  against                   the money or Permitted  Investments  deposited
 pursuant to  Section 13.4  or the principal and interest  received in
                  respect thereof. 

(c)      Anything in
this  Article 13  to the contrary  notwithstanding,  the Trustee  shall deliver or pay to
the Issuer from                   time to time upon request any money or Permitted
 Investments  held by it as provided in  Section 13.4  which, in the
                  opinion of an internationally  recognized firm of independent public
accountants expressed in a written certification                   thereof  delivered to
the Trustee,  are in excess of the amount  thereof which would then be required to be
deposited                   to effect an equivalent defeasance or covenant defeasance. 

13.6     Reinstatement 

If the Trustee or the
Paying Agent is unable to apply any money in accordance with Section 13.2 or 13.3 and
13.5 by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of the Issuer under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to this Article 13 until such time as the Trustee or Paying Agent is permitted
to apply all such money in accordance with Section 13.2 or 13.3 and 13.5;
provided, however, that if the Issuer makes any payment of principal of or
interest on or Additional Amounts in respect of the Notes following the reinstatement
of its obligations, the Issuer shall be subrogated to the rights of the
Noteholders to receive such payment from the money held by the Trustee or the
Paying Agent.  

14. SUBORDINATION  

14.1     Notes
Subordinate to Other Obligations 

(a) The Issuer
covenants and agrees, and each Noteholder, by his acceptance thereof, likewise
covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article (subject to the provisions of
Article 13), the indebtedness represented by the Notes and the
payment of the principal of and interest (and any other amounts
payable in respect thereof) on each and all of the Notes are hereby expressly made
subordinate and subject in right of payment to the prior payment in
full of all Other Obligations of the Issuer; provided, however, that
the Issuer’s obligations to the Noteholders shall be subordinate to the
obligations of the Issuer to the Insurer after payment of a claim
under the Insurance Policy in accordance with the terms of the Insurance Policy and
the Consent Agreement; provided further, that such subordination
in right of payment shall apply only after the Issuer has been
declared bankrupt or put into liquidation or otherwise dissolved (dissolvido) for the
purposes of Brazilian Law, whether voluntarily or involuntarily and
whether or not such event involves insolvency or bankruptcy or after
any similar event which has an analogous effect to the foregoing pursuant to the
law of Brazil has occurred. The Notes shall rank pari passu in right
of payment amongst themselves.  

(b)      The
 consolidation  of the Issuer  with,  or the merger of the Issuer  into,  another  Person
or the  liquidation  or                   dissolution  of the Issuer  following the
conveyance or transfer of its  properties  and assets  substantially  as an
                  entirety  to  another  Person  upon the  terms  and  

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conditions  set
 forth in  Section 6.13  shall  not be  deemed a                   dissolution,  winding
up,  liquidation,  reorganization,  assignment  for the benefit of creditors or
 marshalling of                   assets and liabilities of the Issuer for the purposes
of this Section if the Person formed by such  consolidation  or                   into
which the Issuer is merged or the Person which  acquires by conveyance or transfer  such
 properties  and assets                   substantially  as an entirety,  as the case may
be, shall,  as a part of such  consolidation,  merger,  conveyance or
                  transfer,  comply with the conditions  set forth in  Section 6.13  and
the Notes will continue to be outstanding  and                   will be treated as
subordinated debt of the Issuer pursuant to the terms of Resolution 2837. 

14.2     Payment Over
of Proceeds Upon Dissolution, etc. 

(a)      In the event
of any liquidation,  dissolution or other winding up of the Issuer, whether voluntary or
involuntary and                   whether or not involving  insolvency or  bankruptcy,
 before the  Noteholders  are entitled to receive any payment on
                  account of principal of or interest on the Notes (and any other amounts
 payable in respect  thereof)  including from                   funds  deposited  in the
Reserve  Account,  the  holders of Other  Obligations  shall be  entitled  to  receive,
 for                   application to the payment thereof,  any payment or distribution
of any kind or character,  whether in cash, property                   or  securities,
 which  may be  payable  or  deliverable  in  respect  of the  Notes  in any such  case,
 proceeding,                   dissolution, liquidation or other winding up event. 

(b)      In the event
that,  notwithstanding  the foregoing  provisions of this Section,  the Trustee or any
Noteholder  shall                   have received in the event of any liquidation,
 dissolution or other winding up of the Issuer,  whether  voluntary or
                  involuntary  and whether or not involving  insolvency or  bankruptcy,
 any payment or  distribution  of assets of the                   Issuer of any kind or
 character,  whether in cash,  property or  securities  including  from funds  deposited
in the                   Reserve  Account,  before all Other  Obligations are paid in
full or payment  thereof  provided for, and if such fact                   shall, at or
prior to the time of such payment or distribution,  have been made known to a Responsible
Officer of the                   Trustee or, as the case may be, such  Noteholder,  then
and in such event such payment or distribution  shall be paid                   over or
delivered forthwith to the trustee in bankruptcy,  receiver,  liquidating trustee,
custodian, assignee, agent                   or other Person making payment or
 distribution  of assets of the Issuer for  application to the payment of all Other
                  Obligations  remaining  unpaid,  to the extent necessary to pay all
Other Obligations in full, after giving effect to                   any concurrent
payment or distribution to or for the holders of Other Obligations. 

(c)      For purposes
of this Article only, the words "cash,  property or securities" shall not be deemed to
include shares of                   stock of the Issuer as reorganized or readjusted,  or
securities of the Issuer or any other corporation  provided for                   by a
plan of  reorganization  or readjustment  which are  subordinated  in right of payment to
all Other  Obligations                   which may at the time be outstanding to
substantially  the same extent as, or to a greater extent than, the Notes are
                  so subordinated as provided in this Article. 

14.3     Payment
Permitted in Certain Situations 

Nothing  contained in
this Article or elsewhere in this Indenture or in any of the Notes shall prevent (a) the
Issuer,  at any          time  except  during (i) the  deferral of payment  referred to
in Section  2.8(a),  or (ii) the  pendency of any  liquidation,          dissolution or
other winding up referred to in  Section 14.2,  from making payments at any time of
principal of or interest on          the Notes (and any other amounts  payable in respect
 thereof) or (b) the  application  by the Trustee of any money 

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 deposited          with
it  hereunder  to the  payment of or on account  of the  principal  of or  interest  on
the Notes (and any other  amounts          payable in respect  thereof)  of any  series
or the  retention  of such  payment  by the  Noteholder,  if, at the time of such
         application by the Trustee,  it did not have actual  knowledge that such payment
would have been  prohibited by the provisions          of this Article. 

14.4     Provisions
Solely to Define Relative Rights 

Nothing  contained  in
this Article or elsewhere  in this  Indenture  or in the Notes is intended to or shall
 (a) impair  the          Issuer's  obligation to pay to the  Noteholders  the principal
of and interest on the Notes (and any other amounts  payable in          respect
 thereof) as and when the same shall become due and payable in accordance with their
terms  (provided  always that the          events set out in Section 2.8(a) or Section
14.2 have not occurred);  or (b) affect the relative  rights against the Issuer of
         the  Noteholders  and creditors of the Issuer;  or  (c) prevent  the Trustee or
any  Noteholder  from  exercising all remedies          otherwise  permitted by
applicable law upon default under this  Indenture,  subject to the rights,  if any, under
this Article          of the holders of Other  Obligations,  to receive  cash,  property
and  securities  otherwise  payable or  deliverable  to the          Trustee or such
Noteholder. 

14.5     Trustee to
Effectuate Subordination 

Each  Noteholder  by
his  acceptance  thereof  authorizes  and directs the Trustee on his behalf to take such
action as may be          necessary  or  appropriate  to  effectuate  the  subordination
  provided  in  this  Article  and  appoints  the  Trustee  his          attorney-in-fact
for any and all such purposes. 

14.6     Notice to
Trustee 

Payment of principal
or interest on the Notes (and any other amounts payable in respect thereof) are
subject to the provisions of Section 2.8(a) and Section 14.2 and the Issuer
shall give prompt written notice to the Trustee of any fact known to the
Issuer which would prohibit the making of any payment to or by the Trustee in
respect of the Notes (a "Subordination Event") pursuant to Section 2.8(a)
and Section 14.2. For the avoidance of doubt, a Subordination Event
includes any event or circumstance which would (i) postpone payment of any
part of any debt of the Issuer which the Central Bank of Brazil has authorized
to be classified as "Tier II" of the Issuer's patrimônio de referência (reference net
worth) under Resolution 2837, or (ii) subordinate any payment of any such
debt to the Issuer's Other Obligations. Such Notice shall be given by the
Issuer to the Trustee in writing not later than the later of the day that is two
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal or interest or any other amounts payable in respect thereof on any
security) and the day on which such Subordination Event occurs.
Notwithstanding anything to the contrary herein, if the Trustee shall not have
received such a notice from the Issuer by 10 a.m. New York time on the day
upon which any money becomes payable pursuant to the Notes, the Trustee
shall have full power and authority to receive such money and to apply the same to the
purpose for which such money was received.  

The Trustee  shall be
entitled to rely on the  delivery  to it of a written  notice by a Person  representing
 himself to be a          holder of Other  Obligations  (or a trustee  therefor)  to
 establish  that such  notice  has been  given by a holder of Other          Obligations
 (or a trustee  therefor).  In the event  that the  Trustee  determines  in good faith
that  further  evidence  is          required  with  respect  to the  right of any
 Person  as a holder of Other  Obligations  to  participate  in any  payment  or
         distribution  pursuant  to this  Article,  the  Trustee  may  request  such
 Person  to  furnish  evidence  to the  reasonable          satisfaction  of the Trustee
as to the amount of Other  Obligations  held by such  Person,  the extent to which such
Person is          entitled to  participate  in such  payment or  distribution  and any
other facts 

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 pertinent to the rights of such Person under          this  Article,  and if
such  evidence is not  furnished,  the Trustee  may defer any payment to such Person
 pending  judicial          determination as to the right of such Person to receive such
payment. 

14.7     Reliance on
Judicial Order or Certificate of Liquidating Agent 

Upon any payment or
distribution of assets of the Issuer referred to in this Article,  the Trustee,  subject
to the duties and          responsibilities  of the Trustee under the Trust Indenture
Act, and the  Noteholders  shall be entitled to rely upon any order          or decree
entered by any court of competent  jurisdiction in which such  insolvency,  bankruptcy,
 receivership,  liquidation,          reorganization,  dissolution,  winding up or
similar  case or  proceeding  is  pending,  or a  certificate  of the  trustee in
         bankruptcy,  receiver,  liquidating trustee,  custodian,  assignee for the
benefit of creditors,  agent or other Person making          such payment or
 distribution,  delivered to a Responsible  Officer of the Trustee or to the
 Noteholders,  for the purpose of          ascertaining the Persons entitled to
participate in such payment or distribution,  the holders of Other  Obligations and other
         indebtedness of the Issuer, the amount thereof or payable thereon,  the amount
or amounts paid or distributed  thereon and all          other facts pertinent thereto or
to this Article. 

14.8     Trustee Not
Fiduciary For Holders Of Other Obligations 

The  Trustee  shall
not be deemed to owe any  fiduciary  or other duty to the  holders of Other  Obligations
 and shall not be          liable to any such holders or creditors if it shall in good
faith  mistakenly  pay over or distribute to Noteholders or to the          Issuer or to
any other Person cash,  property or  securities  to which any holders of Other
 Obligations  shall be entitled by          virtue of this Article or otherwise. 

15. MISCELLANEOUS  

15.1     Compliance
Certificates and Opinions 

(a)      Upon any
 application or request by the Issuer to the Trustee that the Trustee take any action
under any provision of                   this Indenture,  the Issuer shall furnish to the
Trustee such  certificates and opinions as may be required under the
                  Trust  Indenture Act,  including,  where  applicable,  a certificate or
opinion by an  independent  certified  public                   accountant  reasonably
 satisfactory  to the Trustee that complies with Section 314 of the Trust  Indenture Act.
Each                   such certificate or opinion shall be given in the form of an
Officers'  Certificate,  if to be given by an officer of                   the Issuer, or
an Opinion of Counsel, if to be given by counsel,  and shall comply with the requirements
of the Trust                   Indenture Act and any other requirements set forth in this
Indenture. 

(b)      Every
 certificate or opinion with respect to compliance with a condition or covenant  provided
for in this Indenture                   shall include in substance: 

(i)      a statement
that each individual signing such certificate or opinion has read such covenant or
condition; 

(ii)     a brief
statement as to the nature and scope of the examination or  investigation  upon which the
statements                            or opinions contained in such certificate or
opinion are based; 

- 76 -

(iii)    a statement
that, in the opinion of each such individual,  such  examination or investigation  has
been made                            as is necessary to enable such individual to express
an informed  opinion as to whether or not such covenant                            or
condition has been complied with; and 

(iv)     a statement
 as to whether,  in the opinion of each such  individual,  such  condition  or covenant
has been                            complied with. 

(c)      With the
delivery of this  Indenture,  the Issuer is furnishing to the Trustee,  and from time to
time thereafter may                   furnish,  an  Officer's  Certificate  identifying
 and  certifying  the  incumbency  and specimen  signatures  of the
                  Authorized  Representatives.  Until the Trustee  receives a subsequent
 Officer's  Certificate,  the Trustee shall be                   entitled to conclusively
rely on the last such Officer's  Certificate delivered to it for purposes of determining
the                   Authorized Representatives of the Issuer. 

15.2     Form of
Documents Delivered to Trustee 

(a)      In any case
where several matters are required to be certified by, or covered by an opinion of any
specified  Person,                   it is not  necessary  that all such matters be
certified  by, or covered by the opinion of, only one such Person,  or
                  that they be so  certified by only one  document,  but one such Person
may certify or give an opinion with respect to                   some  matters  and one
or more other such  Persons as to other  matters,  and any such  Person may certify or
give an                   opinion as to such matters in one or several documents. 

(b)      Any
certificate or opinion of an officer of the Issuer may be based,  insofar as it relates
to legal matters,  upon a                   certificate  or opinion of, or
 representations  by,  counsel,  unless such  officer  knows,  or, in the  exercise of
                  reasonable  care,  should know that the  certificate or opinion or
 representations  with respect to the matters upon                   which such officer's
 certificate or option is based are erroneous or otherwise  inaccurate.  Any such
certificate or                   Opinion of Counsel may be based, insofar as it relates
to factual matters,  upon a certificate of, or representations                   by, an
Authorized  Representative  of the Issuer stating that the information with respect to
such factual matters is                   in the possession of the Issuer,  unless such
counsel knows,  or in the exercise of reasonable care should know, that
                  the certificate or representations with respect to such matters are
erroneous. 

(c)      Any Opinion
of Counsel  stated to be based on the opinion of other  counsel  shall be  accompanied
 by a copy of such                   other opinion. 

(d)      Where any
Person is required to make, give or execute two or more  applications,  requests,
 consents,  certificates,                   statements,  opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
                  instrument. 

15.3     Notices, etc.
to Trustee 

Any Act of Noteholders
or other document  required or permitted by this Indenture  shall be deemed to have been
made or given,          as applicable,  only if such notice is in writing and delivered
 personally,  or by registered or certified first-class United          States mail with
postage prepaid and return receipt  requested,  or made, given or furnished in writing by
confirmed  telecopy          or facsimile transmission, or by prepaid courier service to
the appropriate party as set forth below: 

- 77 -

	Trustee:	The Bank of New York Trust Company (Cayman) Limited
	 	c/o The Bank of New York
	 	101 Barclay Street
	 	Floor 21W
	 	New York, New York 10286
	 
	 	Attention: Global Finance Unit
	 	Telecopier: +1 (212) 815 5802
	 	Telephone: +1 (212) 235 2349
	 
	Issuer:	Banco Bradesco S.A.
	 	Grand Cayman Branch
	 	Ansbacher House (3rd Floor)
	 	20 Genesis Close
	 	P.O. Box 1818 GT
	 	George Town
	 	Grand Cayman
	 	Cayman Islands
	 	Attention: General Manager
	 	Telecopier: +1 345 945-1200
	 	Telephone: +1 345 945-1430
	 
	With a copy to:	c/o Banco Bradesco S.A.
	 	Avenida Ipiranga, 282, 10o Andar
	 	01046-920 - Sío Paulo - SP
	 	Attention: Marlene Moran Millan
	 	Telephone: +55 11 3235 9566
	 	Telecopier: +55 11 3235 9161
	 	Swift BBDEBRSPOCO

Copies of all  notices
 received  or given by the  Trustee  hereunder  or under  each  other  Transaction
 Documents  shall be          delivered  concurrently  with their  delivery or promptly
after their  receipt,  as  applicable,  (but in any event within one          Business
Day) hereunder to Moody's at: 

	 	Moody's Investors Service, Inc.
	 	99 Church Street
	 	New York, New York 10007
	 	Attention: Latin American ABS Monitoring, Maria Muller
	 	Telephone: +1 (212) 553-4309
	 	Telecopier: +1 (212) 553-4392

All notices or copies
of notices required to be given to the Insurer pursuant to the terms of this Indenture
shall be sent          to: 

	 	Sovereign Risk Insurance Ltd.
	 	c/o Kitson Brokerage Services Ltd.
	 	5 Reid Street
	 	Hamilton, HM 11, Bermuda
	 	Attention: Chief Underwriter
	 	Telephone: +1 (441) 295-2525
	 	Telecopier: +1 (441) 295-7357

- 78 -

Any person  may change
its  address by giving  notice of such  change in the manner set forth  herein.  Any
notice  given to a          person by courier shall be deemed delivered upon receipt
thereof (unless the party refuses to accept  delivery,  in which case          the person
 shall be deemed to have  accepted  delivery  upon  presentation).  Any  notice  given to
a person by  telecopy  or          facsimile  transmission  shall be deemed  effective
 on the date it is actually  sent to the  intended  recipient by confirmed
         telecopy or facsimile transmission to the telecopier number specified above. 

15.4     Notices to
Noteholders; Waiver 

Where this Indenture
provides for notice to Noteholders of any event, such notice shall be given by the
Trustee and shall be deemed sufficiently given (unless otherwise herein
expressly provided) if (a) given in writing and mailed, first-class postage
prepaid, to each Noteholder, at its address as it appears in the Note Register, not
later than the latest date, if any, and not earlier than the earliest date, if
any, prescribed for the giving of such notice, (b) published in English on at
least one Business Day in a morning edition in a leading newspaper having general
circulation in the Borough of Manhattan, The City of New York, and (c) so
long as the Notes are listed on the Luxembourg stock exchange and the rules of
that exchange so require, published in English in a leading newspaper having
general circulation in Luxembourg (which is expected to be the Luxemburger
Wort) or, if such publication is not practicable, in another leading English language
daily newspaper with general circulation in Europe, and, in each case, such
notice to be published on at least one Business Day in a morning edition,
whether or not it shall be published in Saturday, Sunday or holiday editions. Any
notice will be deemed validly given on (i) the date of mailing in respect of
notices given in accordance to clause (a) and (ii) the date of
publication in the case of notices given in accordance with clause (b) and (if
applicable) clause (c). Where this Indenture provides for notice, such
notice may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Trustee,
but such filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver. In the case of notice is given by mail pursuant
to clause (a), neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Noteholder shall affect the sufficiency of such
notice with respect to other Noteholders.  

In the case of the
suspension of regular mail service or by reason of any other cause it shall be
 impracticable  to give such          notice by mail pursuant to clause (a),  then such
notification as shall be made with the approval of the Trustee,  in addition          to
notice given pursuant to clause (b) and (if applicable)  clause (c),  shall constitute a
sufficient  notification for every          purpose hereunder. 

15.5     Effect of
Headings and Table of Contents 

The  Article  and
 Section  headings  herein  and the Table of  Contents  are for  convenience  only and
shall not  affect the          construction hereof. 

15.6     Successors
and Assigns 

All covenants,
 agreements,  representations and warranties in this Indenture by the Trustee and the
Issuer shall bind and, to          the extent  permitted  hereby,  shall inure to the
benefit of and be enforceable by their  respective  successors and assigns,
         whether so expressed or not. 

- 79 -

15.7     Severability
Clause 

In case any provision
in this Indenture or in the Notes shall be invalid,  illegal or  unenforceable,  the
validity,  legality          and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby. 

15.8     Benefits of
Indenture 

The  Insurer  shall be
a third  party  beneficiary  of this  Indenture  and shall be  entitled to rely upon and
to enforce the          provisions  of this  Indenture.  Nothing in this  Indenture or in
the Notes,  express,  or implied,  shall give to any Person,          other than the
 parties  hereto,  the  Insurer,  and their  successors  hereunder,  the  Noteholders
 and the holders of Other          Obligations, any benefit or any legal or equitable
right, remedy or claim under this Indenture. 

15.9     Legal Holidays 

In any case where the
Optional  Redemption  Date, the Interest  Payment Date, the Stated Maturity Date or the
Maturity Date of          any Note or any date on which any  defaulted  interest or
Amount in Arrears is  proposed  to be paid,  shall not be a business          day at any
Place of Payment or in the  jurisdiction  of any Paying  Agent then  (notwithstanding
 any other  provision of this          Indenture  or such Note)  payment of  interest
 and/or  principal  need not be made at such Place of Payment or by such Paying
         Agent on such date,  but may be made on the next  succeeding  business  day at
such Place of Payment or by such  Paying  Agent          with the same force and effect
as if made on the Optional  Redemption  Date, the Interest  Payment Date,  the Stated
 Maturity          Date or the Maturity  Date,  or on the date on which the  defaulted
 interest or Amount in Arrears is proposed to be paid,  as          the case may be, and,
except as provided in any supplemental  indenture  setting forth the terms of such Note,
if such payment          is timely made, no interest shall accrue for the period from and
after such Optional  Redemption Date,  Interest Payment Date,          Stated  Maturity
 Date or Maturity  Date or date for the payment of defaulted  interest or Amount in
Arrears,  as the case may          be, to the date of such payment. 

15.10    Currency Rate
Indemnity 

(a)      The U.S.
 dollar is the sole  currency  of  account  and  payment  for all sums  payable  by the
 Issuer  under or in                   connection with each tranche of the Notes or this
Indenture,  including damages.  Any amount received or recovered in                   a
currency other than U.S.  dollars (whether as a result of, or of the enforcement of, a
judgment or order of a court                   of any jurisdiction,  in the winding-up or
dissolution of the Issuer or otherwise) by any Noteholder (including,  for
                  the  avoidance of doubt,  the Insurer  after any claim  payment) in
respect of any sum expressed to be due to it from                   the Issuer will only
 constitute  a  discharge  to the Issuer to the extent of the amount in U.S.  dollars
 which the                   recipient is able to purchase  with the amount so received
or  recovered  in that other  currency on the date of that                   receipt or
recovery (or, if it is not  practicable  to make that purchase on that date, on the first
date on which it                   is practicable to do so). If the U.S.  dollar amount
is less than the U.S.  dollar amount  expressed to be due to the
                  recipient  under any Note,  the Issuer will indemnify it against any
loss sustained by it as a result as set forth in                   Section 15.10(b).  In
any  event,  the  Issuer  will  indemnify  the  recipient  against  the cost of making
any such                   purchase.  For the  purposes  of this  Section 15.10,  it will
be  sufficient  for the  Noteholder  to  certify  in a                   satisfactory
 manner  (indicating  sources of  information  used)  that it would  have  suffered a
loss had an actual                   purchase  of U.S.  dollars  been made with the
amount so  received  in that other  currency on the date of receipt or
                  recovery  (or,

- 80 -

 if a purchase  of U.S.  dollars on such date had not
been  practicable,  on the first date on which it                   would  have been
 practicable,  it being  required  that the need for a change  of date be  certified  in
the  manner                   mentioned  above).  The  indemnities set forth in this
 Section 15.10  constitute  separate and independent  cause of                   action,
 shall apply  irrespective  of any indulgence  granted by any Noteholder and shall
continue in full force and                   effect despite any other judgment,  order,
claim or proof for a liquidated amount in respect of any sum due under any
                  Note. 

(b)      The Issuer
 covenants and agrees that the following  provisions  shall apply to conversion of
currency in the case of                   the Notes and this Indenture: 

(i) If for the
purpose of obtaining judgment in, or enforcing the judgment of, any court in any
country, it becomes necessary to convert into a currency
(the "judgment currency") an amount due in any other currency
(the "base currency"), then the conversion shall be made at
the rate of exchange prevailing on the business day before the
day on which the judgment is given or the order of enforcement is made, as the case
may be (unless a court shall otherwise determine).  

(ii)     If there is a
change in the rate of exchange  prevailing  between the  business  day before the day on
which                            the judgment is given or an order of  enforcement is
made, as the case may be (or such other date as a court                            shall
 determine),  and the date of receipt of the amount due, the Issuer will pay such
additional (or, as e                            case may be, such  lesser)  amount,  if
any,  as may be  necessary  so that the amount paid in the  judgment
                           currency  when  converted at the rate of exchange  prevailing
on the date of receipt will produce the amount                            in the base
currency originally due. 

(iii)    In the event
of the  winding-up  of the  Issuer at any time  while any  amount or  damages  owing
 under any                            tranche of the Notes and this Indenture,  or any
judgment or order rendered in respect thereof, shall remain
                           outstanding,  the Issuer will indemnify and hold the
Noteholders (including, for the avoidance of doubt, the
                           Insurer after any claim payment) and the Trustee harmless
 against any deficiency  arising or resulting from                            any
variation in rates of exchange  between (1) the date as of which the equivalent in U.S.
 dollars for any                            tranche of the amount due or  contingently
 due under the Notes of such  tranche and this  Indenture  (other
                           than under this  clause (b)(iii))  is calculated for the
purposes of such  winding-up and (2) the final date                            for the
filing of proofs of claim in such  winding-up.  For the purpose of this  clause (b)(iii),
 the final                            date for the  filing  of proofs  of claim in the
 winding-up  of the  Issuer  will be the date  fixed by the
                           liquidator or otherwise in  accordance  with the relevant
 provisions of applicable  law as being the latest                            practicable
 date as at which  liabilities of the Issuer may be  ascertained  for such  winding-up
 prior to                            payment by the liquidator or otherwise in respect
thereto. 

(iv)     The
 obligations  contained  in  clauses (a),  (b)(i),  (b)(ii)  and  (b)(iii) of this
 Section 15.10  shall                            constitute separate and independent
 obligations from the other Indenture  obligations of the Issuer,  shall
                           give rise to separate and independent  causes of action
against the Issuer,  shall apply irrespective of any                            waiver or
extension  granted by any  Noteholder or the Trustee or either of them from time to time
and shall                            continue in full force and effect  notwithstanding
any 

- 81 -

judgment or order or the filing of any proof of claim                            in
the  winding-up of the Issuer for a liquidated  sum in respect of amounts due hereunder
or under any such                            judgment or order.  Any such  deficiency  as
aforesaid  shall be deemed to constitute a loss suffered by the
                           holders of the Note or the  Trustee,  as the case may be, and
no proof or  evidence of any actual loss shall                            be  required
 by  the  Issuer  or  the   liquidator   or  otherwise   or  any  of  them.   In  the
 case  of                            subsection (b)(iii)  above, the amount of such
deficiency shall not be deemed to be reduced by any variation
                           in rates of exchange occurring between the said final date and
the date of any liquidating distribution. 

(v) The term
"rate(s) of exchange" shall mean the rate of exchange quoted by Reuters at 10:00 a.m.
(New York City time) for spot purchases of the base currency
with the judgment currency and includes any premiums and
costs of exchange payable. In this Section 15.10, the term
"business day" shall mean a business day in the jurisdiction
in which the currency conversion takes place.  

(c)      All costs and
taxes payable in connection  with the procedures  referred to in this  Section 15.10
 shall be borne by                   the Issuer. 

(d)      Any  transfer
 of funds  pursuant  to this  Section  15.10  shall be subject  to  compliance  with the
 subordination                   conditions of Resolution 2837. 

15.11    Communication
by Noteholders with Other Noteholders 

Noteholders may
communicate  pursuant to  Section 312(b)  of the Trust  Indenture Act with other
 Noteholders  with respect to          their rights under this Indenture and the Notes.
 The Issuer,  the Trustee,  the Note Registrar and anyone else shall have the
         protection of Section 312(c) of the Trust Indenture Act. 

15.12    Governing Law 

This Indenture shall
be governed by, and construed in accordance with, the laws of the State of New York. 

15.13    Waiver of
Jury Trial 

THE ISSUER AND THE
TRUSTEE  HEREBY  IRREVOCABLY  WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
 PROCEEDING OR  COUNTERCLAIM          (WHETHER BASED ON CONTRACT,  TORT OR OTHERWISE)
 ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE ACTIONS OF THE TRUSTEE IN
         THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF OR THEREOF. 

15.14    Submission to
Jurisdiction, etc. 

(a)      The Issuer
and the Trustee  irrevocably  submit to the  non-exclusive  jurisdiction  of any court of
the State of New                   York or any United States federal court sitting in the
Borough of Manhattan,  The City of New York, New York,  United                   States,
 and any  appellate  court from any thereof.  The Issuer and the Trustee  irrevocably
 waive,  to the fullest                   extent  permitted by law, any objection to any
suit,  action,  or proceeding  that may be brought in connection  with
                  this Indenture in such courts  whether on the grounds of venue,
 residence or domicile or on the ground that any such                   suit,  action or
proceeding has been brought in 

- 82 -

an inconvenient forum. The Issuer and the Trustee agree
that final, non-appealable judgment in any such suit, action or
proceeding brought in such court shall be conclusive and binding upon
the Issuer or the Trustee, as the case may be, and may be enforced in any court to the
jurisdiction of which the Issuer or the Trustee is subject by a suit
upon such judgment, as the case may be; provided, that service of
process is effected upon the Issuer or the Trustee in the manner
provided by this Indenture.  

(b) The Issuer
hereby irrevocably appoints and empowers the New York branch of Banco Bradesco S.A.,
located at 450 Park Avenue, 32nd/33rd Floor, New York, New York
10022 as its authorized agent, and the Trustee hereby irrevocably
appoints and empowers The Bank of New York, located at 15 Broad
Street, Floor 26, New York, New York 10286 (Corporate Trust
Department) as its authorized agent, (each a "Process Agent") to accept and acknowledge
for and on their behalf, and on behalf of their property, service of
any and all legal process, summons, notices and documents which may be
served in any such suit, action or proceeding in any New York State court or United
States federal court sitting in the State of New York in the Borough
of Manhattan and any appellate court from any thereof, which service
may be made on such designee, appointee and agent in accordance with legal procedures
prescribed for such courts. The Issuer and the Trustee will take any
and all action necessary to continue such designation in full
force and effect and to advise the Issuer or the Trustee, as
applicable, of any change of address of such Process Agent; should
such Process Agent become unavailable for this purpose for any reason, the Issuer or the
Trustee, as applicable, will promptly and irrevocably designate a
new Process Agent within New York, New York, which will agree to act as
such, with the powers and for the purposes specified in this subsection (b). The
Issuer irrevocably consents and agrees to the service of any and all
legal process, summons, notices and documents out of any of the
aforesaid courts in any such action, suit or proceeding by hand
delivery to it at its address set forth in Section 15.3 or to any
other address of which it shall have given notice pursuant to Section 15.3 or to its
Process Agent. Service upon the Issuer or the Trustee or a Process
Agent as provided for herein will, to the fullest extent permitted by
law, constitute valid and effective personal service upon it and the failure of any
Process Agent to give any notice of such service to the Issuer or the
Trustee, as applicable, shall not impair or affect in any way the
validity of such service or any judgment rendered in any action or proceeding based
thereon.  

15.15    Execution in
Counterparts 

This  Indenture  may
be  executed  in any  number of  counterparts,  each of which when so  executed  shall be
deemed to be an          original, but all such counterparts shall together constitute
but one and the same instrument. 

- 83 -

IN WITNESS WHEREOF,
the parties have caused this Indenture to be duly executed by their respective officers
thereunto duly authorized as of the day and year first above written.  

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By: NORBERTO PINTO BARBEDO 
	 	Title: Diretor Vice-Presidente 
	 
	 
	 
	 
	 	By: JOSÉ GUILHERME LEMBI DE FARIA 
	 	Title: Diretor Gerente 
	 
	 
	 
	 
	 
	 
	 	THE BANK OF NEW YORK TRUST COMPANY (CAYMAN) LIMITED, 
	 	as Trustee, Note Registrar and Paying Agent 
	 
	 
	 
	 
	 	By: PATRICIA M. PHILLIPS 
	 	Title: Assistant Vice President 
	 
	 
	 
	 	WITNESSES: 

- 84 -

GRAND CAYMAN 

CAYMAN ISLANDS 

BRITISH WEST INDIES 

On this 24th day of
 October,  2003  before me, a notary  public  within  and for said  county,  personally
 appeared Patricia M. Phillips to me personally  known who being duly sworn,  did say
that he is a Director of The Bank of New York Trust Company (Cayman) Limited, one of the
persons described in and which executed the foregoing  instrument,  and acknowledges said
instrument to be the free act and deed of said persons. 

	By:	VANESSA MACK 
	Title:	Notary Public, State of New York 
	 	No. 01MA6030711
	 	Qualified in Kings County
	 	Commission Expires September 20, 2005

[NOTARIAL SEAL] 

- 85 -

EXHIBIT A(1)

FORM OF RESTRICTED
GLOBAL NOTE 

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE UNITED STATES  SECURITIES ACT OF 1933, AS AMENDED (THE
 "SECURITIES  ACT"), OR THE  SECURITIES  LAWS OF ANY STATE OR OTHER  JURISDICTION.
 NEITHER  THIS  SECURITY  NOR ANY  INTEREST OR  PARTICIPATION  HEREIN MAY BE REOFFERED,
 SOLD,  ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, SUCH REGISTRATION. 

THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF  (1) REPRESENTS THAT IT IS A "QUALIFIED  INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A UNDER THE  SECURITIES  ACT)  PURCHASING  THIS  SECURITY
 FOR ITS OWN ACCOUNT OR FOR THE  ACCOUNT OF ONE OR MORE  QUALIFIED INSTITUTIONAL  BUYERS;
 (2) AGREES TO OFFER,  SELL OR OTHERWISE  TRANSFER  SUCH  SECURITY,  PRIOR TO THE DATE
(THE "RESALE  RESTRICTION TERMINATION  DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
 ORIGINAL  ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF
THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH  SECURITY),  ONLY
(A) TO THE ISSUER OR ANY AFFILIATE THEREOF,  (B) PURSUANT TO A REGISTRATION  STATEMENT
THAT HAS BEEN DECLARED  EFFECTIVE UNDER THE SECURITIES ACT,  (C) FOR SO LONG AS THE
SECURITIES  ARE ELIGIBLE FOR RESALE  PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY
 BELIEVES IS A "QUALIFIED  INSTITUTIONAL  BUYER", THAT PURCHASES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A QUALIFIED  INSTITUTIONAL  BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  IN A PRINCIPAL  AMOUNT OF NOT LESS THAN
U.S.  DOLLAR  100,000,  (D)  PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES IN COMPLIANCE  WITH RULE 903 OR 904 UNDER  REGULATION S UNDER THE SECURITIES  ACT,
(E) PURSUANT TO ANOTHER  AVAILABLE  EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF THE
SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE
STATES OF THE UNITED STATES OR ANY OTHER  APPLICABLE  JURISDICTION;  AND (3) AGREES THAT
IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS  TRANSFERRED  A NOTICE
 SUBSTANTIALLY  TO THE EFFECT OF THIS  RESTRICTIVE  LEGEND.  THIS LEGEND WILL BE REMOVED
UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY,  A NEW YORK CORPORATION ("DTC"),  NEW YORK, NEW YORK, TO THE ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER,  EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC), ANY TRANSFER,
 PLEDGE OR OTHER USE HEREOF FOR VALUE OR  OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL
 INASMUCH  AS THE  REGISTERED  OWNER  HEREOF,  CEDE & CO.,  HAS AN INTEREST HEREIN. 

TRANSFERS  OF THIS
 SECURITY  SHALL BE LIMITED TO TRANSFERS  IN WHOLE,  BUT NOT IN PART,  TO NOMINEES OF DTC
OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S  NOMINEE,  AND TRANSFERS OF PORTIONS OF
THIS SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO IN THIS SECURITY. 

A(1)-1

BANCO BRADESCO S.A.,
 acting
through its Grand Cayman Branch 

 
8.75% SUBORDINATED
NOTES DUE 2013 

 
GLOBAL REGISTERED NOTE 

No. R-1
CUSIP No.:
 05946N AC 9
ISIN No.:  US05946NAC92 

Initial Principal
Amount:  U.S.$135,000,000
                                                                                               Initial
Issuance Date:  October 24, 2003

This Note is one of a
duly authorized issue of Notes of Banco Bradesco S.A., a company incorporated under
the laws of the Federative Republic of Brazil, acting through its Grand Cayman branch
(the "Issuer"), designated as its 8.75% Subordinated Notes due 2013 (the "Notes"),
issued in an initial aggregate principal amount of U.S.$500,000,000 under an indenture
(the "Indenture") dated as of October 24, 2003 between the Issuer and The Bank of New
York Trust Company (Cayman) Limited as Trustee (the "Trustee", which term includes
any successor trustee under the Indenture), to which Indenture reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Issuer, the Trustee and the Noteholders,
and of the terms upon which the Notes are, and are to be, authenticated and delivered.
All terms used in this Note which are defined in the Indenture and not otherwise defined
herein shall have the meanings assigned to them in the Indenture.  

The Notes  include
 the  Initial  Notes and the  Exchange  Notes  issued in  exchange  for the  Initial
 Notes in  accordance  with the Registration  Rights  Agreement  The  Initial  Notes and
the  Exchange  Notes are  treated as a single  class of  securities  under the Indenture. 

The Issuer, for value
received, hereby promises to pay to Cede & Co. or its registered assigns, as nominee
of The Depository Trust Company ("DTC") and the holder of record of this Note (the
"Holder" or "Noteholder"), the principal amount specified herein in U.S. dollars on
October 24, 2013 (or earlier as hereinafter referred to) upon surrender hereof at
the office or agency of the Trustee referred to below; provided, however, if the
Issuer has provided the certificate required to be presented under Section 2.6 of the
Indenture, the principal amount of the Notes shall be due as provided in the Indenture;
provided, further, that the Issuer may defer payment of the principal amount of the
Notes under the circumstances described in Section 2.8 of the Indenture.  

The Issuer promises to
pay interest on the outstanding principal amount hereof from and including October 24,
2003, or from the most recent Payment Date to which interest has been paid or duly
provided for, semi-annually on October 24 and April 24 of each year, commencing on
April 24, 2004, (each an "Interest Payment Date"), at a rate equal to 8.75% per annum;
provided, that (i) interest on the then-outstanding principal amount hereof after
the maturity hereof and (ii) interest on any overdue interest, other than any
interest payment not paid or delayed due to a default by the Insurer under the Insurance
Policy, shall accrue (to the extent lawful) at 9.75% per annum; provided, further,
that the Issuer may defer the payment of interest under the circumstances
described in Section 2.8 of the Indenture. Interest payable, and punctually paid or
duly provided for, on this Note on any Interest Payment Date will, as provided in the
Indenture, be paid in U.S. dollars to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the relevant Record Date
for such interest payment.  

A(1)-2

Principal or interest
on any Note that is payable on any  Interest  Payment  Date or the  Maturity  Date or
earlier as provided  herein upon any  acceleration  of the  Notes  shall be paid to the
 Person  in whose  name  that  Note (or one or more  Predecessor  Notes) is registered
 at the close of business,  New York City time,  on the Record Date for such  payment.
 Payment of principal of and interest on the Notes  shall be made at the Place of Payment
 (or,  if such  office is not in The City of New York,  at either such office or an
office to be  maintained  in such City) as  provided  herein.  Payments  in respect of
Global  Notes will be made by wire  transfer  of immediately  available funds to the
accounts of DTC.  Subject to  Section 15.9 of the Indenture,  in the event the date for
any payment of the  principal of or interest on any Note is not a Business  Day,  then
payment will be made on the next  Business Day with the same force and effect as if made
on the  nominal  date of any such date for such  payment  and no  additional  interest
 will accrue on such payment as a result of such payment being made on the next
succeeding  Business Day.  Interest  accrued with respect to this Note shall be
calculated based on a 360-day year of twelve 30-day months. 

This Note does not
purport to  summarize  the  Indenture  and  reference  is made to the  Indenture  for
 information  with  respect to interests, rights, benefits, obligations, proceeds, and
duties evidenced hereby. 

The Notes are subject
to redemption by the Issuer on the terms and conditions specified in the Indenture. 

If an Event of Default
shall occur and be continuing,  the outstanding  principal amount of all the Notes may
become or may be declared due and payable in the manner and with the effect provided in
the Indenture. 

Modifications of the
Indenture may be made by the Issuer and the Trustee only to the extent and in the
 circumstances  permitted by the Indenture. 

The Notes shall be
issued only in fully  registered form,  without  coupons.  Subject to  Section 2.2(b)  of
the Indenture,  Notes sold pursuant to  Rule 144A  shall be issued in the form of a
 beneficial  interest in one or more global  securities  in  denominations  of
U.S.$100,000 and higher multiples of U.S.$10,000. 

Prior to and at the
time of due presentment of this Note for  registration  of transfer,  the Issuer,  the
Trustee,  the Note Registrar and any agent of the  Issuer,  the Note  Registrar  or the
Trustee  may treat the Person in whose name this Note is  registered  as the owner hereof
for all purposes,  whether or not this Note is overdue,  and neither the Issuer,  the
Trustee,  the Note Registrar nor any agent thereof shall be affected by notice to the
contrary. 

Unless the certificate
of  authentication  hereon has been duly executed by the  Authenticating  Agent by manual
 signature,  this Note shall not be entitled to any benefit under the Indenture, or be
valid or obligatory for any purpose. 

THIS NOTE SHALL BE
CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 

A(1)-3

IN WITNESS WHEREOF,
the Issuer has caused this Note to be duly executed.  

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:____________________________________
	 	      Name:
	 	      Title:
	 
	 
	 
	 	By:____________________________________
	 	      Name:
	 	      Title:

A(1)-4

CERTIFICATE OF
AUTHENTICATION

This is one of the
Notes referred to in the within-mentioned Indenture.

	 	THE BANK OF NEW YORK TRUST COMPANY (CAYMAN) LIMITED, 
	 	as Trustee
	 
	 
	 
	 	By:____________________________________________
	 	                                    Authorized Signatory
	 
	 
	 
	 
	 	Date:

A(1)-5

SCHEDULE OF
TRANSFERS AND EXCHANGES  

	 	Aggregate	 	Authorized signature
	Date of	principal amount of Notes	Current principal 	by or on behalf
	transfer or exchange	transferred or exchanged	amount of this Note	of the Note Registrar
	
	
	
	

A(1)-6 

ASSIGNMENT FORM 

To assign this Note,
fill in the form below: For value received, (I) or (we) hereby sell, assign and transfer
this Note to 

(Insert Assignee’s
Soc. Sec. or Tax I.D. no.)  

(Print or Type
Assignee’s Name, Address and Zip Code)  

and irrevocably
appoint______________________________________________________________________
Attorney
to transfer this Note on the books of the Note Registrar with full power of substitution
in the premises.  

Date:_________________________________ 

Your Signature:_________________________________
                                                                                                                            
(Sign
exactly as your name appears on the face of this Note) 

A(1)-7 

EXHIBIT A(2) 

FORM OF REGULATION S
GLOBAL NOTE 

THIS  SECURITY  HAS
NOT BEEN  REGISTERED  UNDER  THE  UNITED  STATES  SECURITIES  ACT OF 1933,  AS  AMENDED
 (THE "SECURITIES  ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER  JURISDICTION,
 AND,  ACCORDINGLY,  MAY NOT BE OFFERED OR SOLD WITHIN THE  UNITED  STATES OR TO OR FOR
THE  ACCOUNT  OR  BENEFIT  OF U.S.  PERSONS  EXCEPT AS SET FORTH IN THE  FOLLOWING
 SENTENCE.  BY ITS ACQUISITION  HEREOF,  THE HOLDER  (1) REPRESENTS  THAT IT IS NOT A
U.S.  PERSON,  IS NOT  ACQUIRING  THIS  SECURITY FOR THE ACCOUNT OR BENEFIT OF A U.S.
PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE  TRANSACTION,  (2) BY ITS ACCEPTANCE
 HEREOF,  AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,  ONLY (A) TO THE
ISSUER OR ANY AFFILIATE THEREOF,  (B) PURSUANT TO A REGISTRATION  STATEMENT THAT HAS BEEN
DECLARED  EFFECTIVE  UNDER THE SECURITIES  ACT,  (C) FOR SO LONG AS THE  SECURITIES ARE
ELIGIBLE FOR RESALE  PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"),  TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED  INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
 THAT  PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED  INSTITUTIONAL
 BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A
IN A TRANSACTION  MEETING THE  REQUIREMENTS  OF RULE 144A,  (D) PURSUANT TO OFFERS AND
SALES THAT OCCUR OUTSIDE THE UNITED STATES IN COMPLIANCE  WITH RULE 903 OR 904 UNDER
 REGULATION S  UNDER THE  SECURITIES  ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ALL APPLICABLE  SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR ANY OTHER
 APPLICABLE  JURISDICTION  AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
THIS SECURITY IS TRANSFERRED A NOTICE  SUBSTANTIALLY  TO THE EFFECT OF THIS  RESTRICTIVE
 LEGEND.  THIS LEGEND WILL BE REMOVED AFTER 40  CONSECUTIVE  DAYS  BEGINNING ON AND
INCLUDING  THE LATER OF (A) THE DAY ON WHICH THE  SECURITIES  ARE OFFERED TO PERSONS
OTHER THAN  DISTRIBUTORS  (AS DEFINED IN  REGULATION S)  AND (B) THE DATE OF THE CLOSING
OF THE ORIGINAL  OFFERING. AS USED HEREIN,  THE TERMS "OFFSHORE  TRANSACTION",  "UNITED
STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT. 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF EUROCLEAR BANK S.A./N.V.  AS
OPERATOR OF THE  EUROCLEAR  SYSTEM  ("EUROCLEAR")  OR  CLEARSTREAM  BANKING,  SOCIéTé  ANONYME
 ("CLEARSTREAM"),  TO THE  ISSUER  OR ITS AGENT FOR REGISTRATION  OF  TRANSFER,  EXCHANGE
 OR  PAYMENT,  AND ANY  CERTIFICATE  ISSUED  IS  REGISTERED  IN THE NAME OF THE BANK OF
NEW YORK DEPOSITARY  (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED  REPRESENTATIVE OF EUROCLEAR OR CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE
BANK OF NEW YORK  DEPOSITARY  (NOMINEES)  LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN  AUTHORIZED REPRESENTATIVE  OF EUROCLEAR OR CLEARSTREAM),  ANY TRANSFER,  PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITARY (NOMINEES) LIMITED, HAS AN
INTEREST HEREIN. 

A(2)-1 

TRANSFERS OF THIS
SECURITY  SHALL BE LIMITED TO TRANSFERS IN WHOLE,  BUT NOT IN PART, TO NOMINEES OF
EUROCLEAR OR CLEARSTREAM  OR TO A SUCCESSOR  THEREOF OR SUCH  SUCCESSOR'S  NOMINEE,  AND
TRANSFERS OF PORTIONS OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THIS SECURITY. 

A(2)-2 

BANCO BRADESCO S.A.,

                                                acting through its Grand Cayman Branch 

8.75% SUBORDINATED
NOTES DUE 2013 

GLOBAL REGISTERED
NOTE 

No. U-1

CUSIP No.:
 P07867 AC 1

ISIN No.:  XS0179416234 

Initial Principal
Amount:  U.S.$365,000,000

                                                                                              Initial
Issuance Date:  October 24, 2003 

This Note is one of a duly authorized
issue of Notes of Banco Bradesco S.A., a company incorporated under the laws of the
Federative Republic of Brazil, acting through its Grand Cayman branch (the
“Issuer”), designated as its 8.75% Subordinated Notes due 2013 (the
“Notes”), issued in an initial aggregate principal amount of
U.S.$500,000,000 under an indenture (the “Indenture”) dated as of October
24, 2003 between the Issuer and The Bank of New York Trust Company (Cayman) Limited as
Trustee (the “Trustee”, which term includes any successor trustee under
the Indenture), to which Indenture reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and immunities thereunder of
the Issuer, the Trustee and the Noteholders, and of the terms upon which the Notes are,
and are to be, authenticated and delivered. All terms used in this Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings assigned to them
in the Indenture. 

The Notes include the Initial Notes
and the Exchange Notes issued in exchange for the Initial Notes in accordance with the
Registration Rights Agreement. The Initial Notes and the Exchange Notes are treated as a
single class of securities under the Indenture. 

The Issuer, for value received,
hereby promises to pay to The Bank of New York Depositary (Nominees) Limited or its
registered assigns, as nominee of Euroclear Bank S.A./N.V. as operator of the Euroclear
System (“Euroclear”)and Clearstream Banking, société
anonyme (“Clearstream”) and the holder of record of this Note (the
“Holder” or “Noteholder”), the principal amount
specified herein in U.S. dollars on October 24, 2013 (or earlier as hereinafter referred
to) upon surrender hereof at the office or agency of the Trustee referred to below;
provided, however, if the Issuer has provided the certificate required to be
presented under Section 2.6 of the Indenture, the principal amount of the Notes shall
be due as provided in the Indenture; provided, further, that the Issuer may defer
payment of the principal amount of the Notes under the circumstances described in
Section 2.8 of the Indenture. 

The Issuer promises to pay interest
on the outstanding principal amount hereof from and including October 24, 2003, or from
the most recent Payment Date to which interest has been paid or duly provided for,
semi-annually on October 24 and April 24 of each year, commencing on April 24,
2004, (each an “Interest Payment Date”), at a rate equal to 8.75% per
annum; provided, that (i) interest on the then-outstanding principal amount
hereof after the maturity hereof and (ii) interest on any overdue interest, other
than any interest payment not paid or delayed due to a default by the Insurer under the
Insurance Policy, shall accrue (to the extent lawful) at 9.75% per annum; provided,
further, that the Issuer may defer the payment of interest under the circumstances
described in Section 2.8 of the Indenture. Interest payable, and punctually paid or
duly provided for, on this Note on any Interest Payment Date will, as provided in the
Indenture, be paid in U.S. dollars to the Person in whose name this Note (or one or more

A(2)-3 

predecessor Notes) is registered at the close of business on the relevant Record Date for
such interest payment. 

Principal or interest on any Note
that is payable on any Interest Payment Date or the Maturity Date or earlier as provided
herein upon any acceleration of the Notes shall be paid to the Person in whose name that
Note (or one or more Predecessor Notes) is registered at the close of business, New York
City time, on the Record Date for such payment. Payment of principal of and interest on
the Notes shall be made at the Place of Payment (or, if such office is not in The City of
New York, at either such office or an office to be maintained in such City) as provided
herein. Payments in respect of Global Notes will be made by wire transfer of immediately
available funds to the accounts of Euroclear and Clearstream. Subject to Section 15.9
of the Indenture, in the event the date for any payment of the principal of or interest on
any Note is not a Business Day, then payment will be made on the next Business Day with
the same force and effect as if made on the nominal date of any such date for such payment
and no additional interest will accrue on such payment as a result of such payment being
made on the next succeeding Business Day. Interest accrued with respect to this Note shall
be calculated based on a 360-day year of twelve 30-day months. 

This Note does not purport to
summarize the Indenture and reference is made to the Indenture for information with
respect to interests, rights, benefits, obligations, proceeds, and duties evidenced
hereby. 

The Notes are subject to redemption
by the Issuer on the terms and conditions specified in the Indenture. 

If an Event of Default shall occur
and be continuing, the outstanding principal amount of all the Notes may become or may be
declared due and payable in the manner and with the effect provided in the Indenture. 

Modifications of the Indenture may be
made by the Issuer and the Trustee only to the extent and in the circumstances permitted
by the Indenture. 

The Notes shall be issued only in
fully registered form, without coupons. Subject to Section 2.2(b) of the Indenture,
Notes sold pursuant to Regulation S shall be issued in the form of beneficial interests in
one or more global securities in denominations of U.S.$10,000 and multiples thereof. 

Prior to and at the time of due
presentment of this Note for registration of transfer, the Issuer, the Trustee, the Note
Registrar and any agent of the Issuer, the Note Registrar or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all purposes, whether
or not this Note is overdue, and neither the Issuer, the Trustee, the Note Registrar nor
any agent thereof shall be affected by notice to the contrary. 

Unless the certificate of
authentication hereon has been duly executed by the Authenticating Agent by manual
signature, this Note shall not be entitled to any benefit under the Indenture, or be valid
or obligatory for any purpose. 

THIS NOTE SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 

A(2)-4 

IN WITNESS WHEREOF,
the Issuer has caused this Note to be duly executed.  

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

A(2)-5 

CERTIFICATE OF
AUTHENTICATION 

This is one of the
Notes referred to in the within-mentioned Indenture. 

	 	THE BANK OF NEW YORK TRUST COMPANY (CAYMAN) LIMITED, 
	 	
as Trustee
	 
	 
	 
	 	By:	

	 	Authorized Signatory
	 
	 
	 
	 	Date:

A(2)-6 

SCHEDULE OF
TRANSFERS AND EXCHANGES  

	 	Aggregate	 	Authorized signature
	Date of	principal amount of Notes	Current principal 	by or on behalf
	transfer or exchange	transferred or exchanged	amount of this Note	of the Note Registrar
	
	
	
	

A(2)-7 

ASSIGNMENT FORM 

To assign this Note,
fill in the form below: For value received, (I) or (we) hereby sell, assign and transfer
this Note to 

(Insert Assignee’s
Soc. Sec. or Tax I.D. no.)  

(Print or Type
Assignee’s Name, Address and Zip Code)  

and irrevocably
appoint______________________________________________________________________
Attorney
to transfer this Note on the books of the Note Registrar with full power of substitution
in the premises.  

Date:_________________________________ 

Your Signature:_________________________________
                                                                                                                            
(Sign
exactly as your name appears on the face of this Note) 

A(2)-8 

EXHIBIT A(3) 

FORM OF EXCHANGE NOTE 

BANCO BRADESCO S.A.

                                                acting through its Grand Cayman Branch 

8.75% SUBORDINATED
NOTES DUE 2013 

GLOBAL REGISTERED
NOTE 

No. [ ]

CUSIP No.:
 05946N AD 7

ISIN No.: US05946NAD75 

Initial Principal
Amount:  U.S.$[ ]
                                                                                              
Initial
Issuance Date:  October 24, 2003 

This Note is one of a duly authorized
issue of Notes of Banco Bradesco S.A., a company incorporated under the laws of the
Federative Republic of Brazil, acting through its Grand Cayman branch (the
“Issuer”), designated as its 8.75% Subordinated Notes due 2013 (the
“Notes”), issued in an initial aggregate principal amount of
U.S.$500,000,000 under an indenture (the “Indenture”) dated as of October
24, 2003 between the Issuer and The Bank of New York Trust Company (Cayman) Limited as
Trustee (the “Trustee”, which term includes any successor trustee under
the Indenture), to which Indenture reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and immunities thereunder of
the Issuer, the Trustee and the Noteholders, and of the terms upon which the Notes are,
and are to be, authenticated and delivered. All terms used in this Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings assigned to them
in the Indenture. 

The Notes include the Initial Notes
and the Exchange Notes issued in exchange for the Initial Notes in accordance with the
Registration Rights Agreement The Initial Notes and the Exchange Notes are treated as a
single class of securities under the Indenture. 

The Issuer, for value received,
hereby promises to pay to Cede & Co. or its registered assigns, as nominee of The
Depository Trust Company (“DTC”) and the holder of record of this Note
(the “Holder” or “Noteholder”), the principal amount
specified herein in U.S. dollars on October 24, 2013 (or earlier as hereinafter referred
to) upon surrender hereof at the office or agency of the Trustee referred to below;
provided, however, if the Issuer has provided the certificate required to be
presented under Section 2.6 of the Indenture, the principal amount of the Notes shall
be due as provided in the Indenture; provided, further, that the Issuer may defer
payment of the principal amount of the Notes under the circumstances described in
Section 2.8 of the Indenture. 

The Issuer promises to pay interest
on the outstanding principal amount hereof from and including October 24, 2003, or from
the most recent Payment Date to which interest has been paid or duly provided for,
semi-annually on October 24 and April 24 of each year, commencing on April 24, 2004
(each an “Interest Payment Date”), at a rate equal to 8.75% per annum;
provided, that (i) interest on the then-outstanding principal amount hereof
after the maturity hereof and (ii) interest on any overdue interest, other than any
interest payment not paid or delayed due to a default by the Insurer under the Insurance
Policy, shall accrue (to the extent lawful) at 9.75% per annum; provided, further,
that the Issuer may defer the payment of interest under the circumstances described in
Section 2.8 of the Indenture. Interest 

A(3)-1 

payable, and punctually paid or duly provided
for, on this Note on any Interest Payment Date will, as provided in the Indenture, be paid
in U.S. dollars to the Person in whose name this Note (or one or more predecessor Notes)
is registered at the close of business on the relevant Record Date for such interest
payment. 

Principal or interest on any Note
that is payable on any Interest Payment Date or the Maturity Date or earlier as provided
herein upon any acceleration of the Notes shall be paid to the Person in whose name that
Note (or one or more Predecessor Notes) is registered at the close of business, New York
City time, on the Record Date for such payment. Payment of principal of and interest on
the Notes shall be made at the Place of Payment (or, if such office is not in The City of
New York, at either such office or an office to be maintained in such City) as provided
herein. Subject to Section 15.9 of the Indenture, in the event the date for any
payment of the principal of or interest on any Note is not a Business Day, then payment
will be made on the next Business Day with the same force and effect as if made on the
nominal date of any such date for such payment and no additional interest will accrue on
such payment as a result of such payment being made on the next succeeding Business Day.
Interest accrued with respect to this Note shall be calculated based on a 360-day year of
twelve 30-day months. 

This Note does not purport to
summarize the Indenture and reference is made to the Indenture for information with
respect to interests, rights, benefits, obligations, proceeds, and duties evidenced
hereby. 

The Notes are subject to redemption
by the Issuer on the terms and conditions specified in the Indenture. 

If an Event of Default shall occur
and be continuing, the outstanding principal amount of all the Notes may become or may be
declared due and payable in the manner and with the effect provided in the Indenture. 

Modifications of the Indenture may be
made by the Issuer and the Trustee only to the extent and in the circumstances permitted
by the Indenture. 

The Notes shall be issued only in
fully registered form, without coupons. Subject to Section 2.2(b) of the Indenture,
Exchange Notes shall be issued in the form of beneficial interests in one or more global
securities in denominations of U.S.$10,000 and multiples thereof. 

Prior to and at the time of due
presentment of this Note for registration of transfer, the Issuer, the Trustee, the Note
Registrar and any agent of the Issuer, the Note Registrar or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all purposes, whether
or not this Note is overdue, and neither the Issuer, the Trustee, the Note Registrar nor
any agent thereof shall be affected by notice to the contrary. 

Unless the certificate of
authentication hereon has been duly executed by the Authenticating Agent by manual
signature, this Note shall not be entitled to any benefit under the Indenture, or be valid
or obligatory for any purpose. 

THIS NOTE SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 

A(3)-2 

IN WITNESS WHEREOF,
the Issuer has caused this Note to be duly executed.  

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

A(3)-3 

CERTIFICATE OF
AUTHENTICATION 

This is one of the
Notes referred to in the within-mentioned Indenture. 

	 	THE BANK OF NEW YORK TRUST COMPANY (CAYMAN) LIMITED, 
	 	
as Trustee
	 
	 
	 
	 	By:	

	 	Authorized Signatory
	 
	 
	 
	 	Date:

A(3)-4 

SCHEDULE OF
TRANSFERS AND EXCHANGES  

	 	Aggregate	 	Authorized signature
	Date of	principal amount of Notes	Current principal 	by or on behalf
	transfer or exchange	transferred or exchanged	amount of this Note	of the Note Registrar
	
	
	
	

A(3)-5 

ASSIGNMENT FORM 

To assign this Note,
fill in the form below: For value received, (I) or (we) hereby sell, assign and transfer
this Note to 

(Insert Assignee’s
Soc. Sec. or Tax I.D. no.)  

(Print or Type
Assignee’s Name, Address and Zip Code)  

and irrevocably
appoint______________________________________________________________________
Attorney
to transfer this Note on the books of the Note Registrar with full power of substitution
in the premises.  

Date:_________________________________ 

Your Signature:_________________________________
                                                                                                                            
(Sign
exactly as your name appears on the face of this Note) 

A(3)-6 

EXHIBIT B 

FORM OF CLAIM NOTICE
FOR INSURANCE POLICY 

[LETTERHEAD OF INSURED] 

[Date] 

Sovereign Risk Insurance
Ltd.

Wessex House, 5th Floor

45 Reid Street

Hamilton, HM 12, Bermuda 

Re: Policy of Political
Risk Insurance No.  

This [Preliminary Application] [Final
Application] is delivered to you pursuant to Article A.4 of the Policy of Political
Risk Insurance for Capital Market Transactions (together with the duly-executed
Declarations, Schedules and Endorsements, and as amended, supplemented and otherwise
modified from time to time, the “Policy”), dated October 24, 2003, among
(i) Sovereign Risk Insurance Ltd., as agent for the Insurers named therein (the
“Agent”), and (ii) The Bank of New York Trust Company (Cayman)
Limited (the “Insured”). All capitalized terms used and not otherwise
defined in this certificate shall have the meanings assigned thereto in the Policy. 

I, [ ], a duly authorized
representative of the Insured, hereby certify, represent and warrant to Agent on behalf of
the Insured as follows: 

     I.    
          This Application relates to the [ ], [ ] Scheduled Payment Date (the
          “Date of Loss”). 

     II.    
          A Covered Risk set forth in Article A.1.1: 

___         clause (i)  

___         clause (ii)  

has occurred on [ ], [ ] and is
continuing as of the date hereof. 

     III.    
          Attached hereto is evidence demonstrating the inability of the Insured and the
          Issuer and the Foreign Enterprise to convert the Local Currency
          that is the subject of this claim or to transfer the Policy Currency that is the
          subject of this claim outside the Host Country. 

     IV.    
          The Insured, the Issuer and the Foreign Enterprise have each made
          all reasonable efforts to convert the Local Currency that is the subject of the
          claim and/or remit the Policy Currency that is the subject of the claim through
          all legal and regulatory mechanisms available, commencing from the Date of Loss
          through the date hereof. 

     V.    
          The amount of this claim is U.S. $[ ]. [[ ] in Local Currency has been deposited
          into [specify relevant bank account details], which funds, as of the Date of
          Loss, have a value equal to U.S. $[ ] according to the Reference Rate of
          Exchange as calculated pursuant to Article A.3 of the Policy and have been
          designated by the Issuer and the Foreign Enterprise for the making of the
          [Scheduled Payment] [Premium Payment] that is the subject of the claim. The
          calculation and 

B-1 

evidence of appropriate exchange rate are attached hereto.]
          [U.S. $[ ] has been deposited into [specify relevant bank account details.] and
          have been designated by the Issuer and the Foreign Enterprise for the
          making of the [Scheduled Payment][Premium Payment] that is the subject of the
          claim.] The [Local Currency][Policy Currency] has been deposited into the
          Issuer’s bank account as specified above and will be delivered to Sovereign
          as a condition to claim payment and after Sovereign’s determination of
          liability under the Policy. 

     VI.    
          No exclusion applies, and all representations and warranties set forth in the
          Policy are true, correct and complete as of this date, and the Insured has
          complied with all of its requirements under the Policy in all material respects. 

     VII.    
          The aggregate amount of claims paid to date under the Policy (U.S. $[ ]) when
          added to the amount of this claim (U.S. $[ ]) does not exceed the Policy Limit
          (U.S. $[ ]). 

As a result of the Covered Risk
stated in clause II above, the Insured hereby requests that the Agent make payment to the
Insured in the amount of U.S.$[ ], for coverage pursuant to the Policy, which amount
constitutes the Loss incurred by the Insured. 

IN WITNESS WHEREOF, the undersigned
has executed this certificate as of the [ ] day of [ ], [ ]. 

[•]  

By:_____________________________

Name:

Title: 

B-2 

EXHIBIT C(1) 

CERTIFICATE OF
EXTENSION OF MATURITY 

[DATE] 

The Bank of New York
Trust Company (Cayman) Limited
[address] 

Dear Sirs: 

Reference is made to that certain
(i) Indenture (the “Indenture”) dated as of October 24, 2003 between
Banco Bradesco S.A., acting through its Grand Cayman Branch (the
“Issuer”) and you, as trustee (the “Trustee”) and
(ii) Policy of Political Risk Insurance, Policy No. 03-255 (the
“Policy”) dated October 24, 2003 issued to you for the benefit of the
Noteholders by Sovereign Risk Insurance Ltd., as agent for the insurers named therein (the
“Insurer”). Capitalized terms not defined herein shall have the meanings
set forth in the Indenture. 

Pursuant to Section 2.6 of the
Indenture, the Issuer hereby certifies to you, the Trustee, acting on behalf of the
holders of the Issuer’s 8.75% Subordinated Notes due 2013, as follows: 

The Issuer has sufficient funds in
Brazilian reais at the Reference Rate of Exchange to repay the principal amount of the
Notes and any other Indebtedness payable on the Stated Maturity Date and the Issuer cannot
make such payment in respect of the Notes because of a Currency
Inconvertibility/Non-Transfer Event which occurred on [insert date] and which is
continuing on the date hereof, and the Issuer has used its reasonable best efforts to
convert and transfer such funds. 

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

C-1 

EXHIBIT C(2) 

FORM OF PROOF OF LOSS
FOR INSURANCE POLICY 

[DATE] 

The Bank of New York
Trust Company (Cayman) Limited
[address] 

Dear Sirs: 

Reference is made to that certain
(i) Indenture (the “Indenture”) dated as of October 24, 2003 between
Banco Bradesco S.A., acting through its Grand Cayman Branch (the
“Issuer”) and you, as trustee (the “Trustee”) and
(ii) Policy of Political Risk Insurance, Policy No. 03-255 (the
“Policy”) dated October 24, 2003 issued to you for the benefit of the
Noteholders by Sovereign Risk Insurance Ltd., as agent for the insurers named therein (the
“Insurer”). Capitalized terms not defined herein shall have the meanings
set forth in the Indenture. 

Pursuant to Section 6.7 of the
Indenture, the Issuer hereby certifies to you, the Trustee, acting on behalf of the
holders of the Issuer’s 8.75% Subordinated Notes due 2013, as follows: 

The Issuer has sufficient funds in
Brazilian reais at the Reference Rate of Exchange to pay in full the interest payment due
on [insert date] and the Issuer cannot make such interest payment because of a
Currency Inconvertibility/Non-Transfer Event which occurred on [insert date] and
which is continuing on the date hereof, and the Issuer has used its reasonable best
efforts to convert and transfer such funds. 

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

C-2 

EXHIBIT D 

FORM OF RISK BASED
CAPITAL REQUIREMENTS CERTIFICATE 

[DATE] 

The Bank of New York
Trust Company (Cayman) Limited
[address] 

[Insurer’s contact information] 

Dear Sirs: 

Reference is made to that certain
Indenture dated as of October 24, 2003, between Banco Bradesco S.A., acting through its
Grand Cayman Branch (the “Issuer”) and you, as trustee (the
“Trustee”). Capitalized terms not defined herein shall have the meanings
set forth in the Indenture. 

Pursuant to Section 2.8 of the
Indenture, the Issuer hereby certifies to you, the Trustee, acting on behalf of the
holders of the Issuer’s 8.75% Subordinated Notes due 2013, that the payment of
[interest on [ ] [insert Interest Payment Date or Optional Redemption Date]]
[principal on [ ] [insert Stated Maturity Date, Maturity Date or Optional Redemption
Date]] would cause the Issuer to fail to satisfy the Risk Based Capital Requirements. 

The Issuer hereby requests deferral
of such [interest] [principal] payment until the date that the Issuer is no longer in
violation of the Risk Based Capital Requirements or the payment of such [interest]
[principal] amount, or any portion thereof, would not cause the Issuer to violate the Risk
Based Capital Requirements. 

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

D-1 

EXHIBIT E 

FORM OF AUTHENTICATION
AND DELIVERY ORDER 

The Bank of New York
Trust Company (Cayman) Limited
as Trustee
c/o The Bank of New York
101 Barclay
Street 
Floor 21W
New York, NY
10286 
Attention: Global Finance Unit 

Ladies and Gentlemen: 

Pursuant to Section 2.3 of the
Indenture dated as of October 24, 2003 (the “Indenture”) by and among
Banco Bradesco S.A., acting through its Grand Cayman Branch (the
“Issuer”) and The Bank of New York Trust Company (Cayman) Limited, as
Trustee, you are hereby ordered in your capacity as such to authenticate U.S.$ [specify
amount] in principal amount of the Issuer’s 8.75% Subordinated Notes due 2013, in
the manner provided in the Indenture, in global form in the amount of [specify amount
in U.S. dollars] [in respect of the Restricted Global Note] [and] [specify amount
in U.S. dollars] in respect of the Regulation S Global Note] heretofore duly
executed by the proper Authorized Officer of the Issuer and delivered to you as provided
in the Indenture and to hold the Restricted Global Notes in your capacity as custodian for
The Depository Trust Company and deliver the Regulation S Global Note to The Bank of New
York Depositary (Nominees) Limited as common depositary for Euroclear and Clearstream. 

	 	BANCO BRADESCO S.A. 
	 	acting through its Grand Cayman Branch 
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:

E-1 

EXHIBIT F 

FORM OF
REGULATION S CERTIFICATE 

(For transfers pursuant to
Section 2.13(f)(i), 
(iii) and (iv) of the Indenture) 

To: The Bank of New York
Trust Company (Cayman) Limitedas 
Note Registrar 

Re: 8.75%
Subordinated Notes due 2013 of Banco Bradesco S.A., acting through its Grand Cayman
branch (the "Notes")  

Reference is made to the Indenture,
dated as of October 24, 2003, (the “Indenture”), between Banco Bradesco
S.A., acting through its Grand Cayman branch (the “Issuer”) and The Bank
of New York Trust Company (Cayman) Limited, as trustee. Terms used herein and defined in
the Indenture or in Regulation S under the U.S. Securities Act of 1933, as amended
(the “Securities Act”) are used herein as so defined. 

This certificate relates to U.S.$ [ ]
principal amount of Notes, which are evidenced by the following certificate(s) (the
“Specified Notes”): 

CUSIP No(s). [ ] 

CERTIFICATE No(s). [ ] 

The person in whose name this
certificate is executed below (the “undersigned”) hereby certifies that
either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is
acting on behalf of all the beneficial owners of the Specified Notes and is duly
authorized by them to do so. Such beneficial owner or owners are referred to herein
collectively as the “Owner.” If the Specified Notes are represented by a
Global Note, they are held through DTC or an Agent Member in the name of the undersigned,
as or on behalf of the Owner. If the Specified Notes are not represented by a Global Note,
they are registered in the name of the undersigned, as or on behalf of the Owner. 

The Owner has requested that the
Specified Notes be transferred to a person (the “Transferee”) who will
take delivery in the form of a Regulation S Note. In connection with such transfer,
the Owner hereby certifies that, unless the Specified Notes are being transferred to the
Issuer or such transfer is being effected pursuant to an effective registration statement
under the Securities Act, it is being effected in accordance with Rule 903 or 904 or
Rule 144 under the Securities Act and with all applicable securities laws of the
states of the United States and other jurisdictions. Accordingly, the Owner hereby further
certifies as follows: 

     1.    
          Rule 903 or 904 Transfers. If the transfer is being effected in
          accordance with Rule 903 or 904: 

     (a)    
          if the transfer is being effected in accordance with Rule 904, the Owner is
          not a distributor of the Notes, an affiliate of the Issuer, an affiliate of any
          distributor of the Notes or a person acting on behalf of any of the foregoing; 

     (b)    
          the offer of the Specified Notes was not made to a person in the United States; 

F-1 

     
(c)    
          either: 

     (i)    
          at the time the buy order was originated, the Transferee was outside the United
          States or the Owner and any person acting on its behalf reasonably believed that
          the Transferee was outside the United States (within the meaning of
          Regulation S), or 

     (ii)    
          the transaction is being executed in, on or through the facilities of a
          designated offshore securities market (within the meaning of Regulation S)
          and neither the Owner nor any person acting on its behalf knows that the
          transaction has been prearranged with a buyer in the United States; 

     (d)    
          no directed selling efforts have been made in the United States by the Owner,
          any affiliate or any person acting on their behalf; 

     (e)    
          if the transfer is being effected in accordance with Rule 903, the
          requirements of Rule 903(b)(2) have been satisfied; 

     (f)    
          if the transfer is being effected in accordance with Rule 904 and if the
          Owner is a dealer in Notes or has received a selling concession, fee or other
          remuneration in respect of the Specified Notes, and the transfer is to occur
          during the Distribution Compliance Period, then the requirements of
          Rule 904(b)(1) have been satisfied; 

     (g)    
          if the transfer is being effected in accordance with Rule 904 and if the
          Owner is an affiliate of the Issuer or of a distributor solely by virtue of
          holding a position as an officer or director of such person, then the
          requirements of Rule 904(b)(2) have been satisfied; and 

     (h)    
          the transaction is not part of a plan or scheme to evade the registration
          requirements of the Securities Act. 

     2.    
          Rule 144A Transfers. If the transfer is being effected pursuant to
          Rule 144: 

     (a)    
          the transfer is occurring after October 24, 2004 and is being effected in
          accordance with the applicable amount, manner of sale and notice requirements of
          Rule 144; or 

     (b)    
          the transfer is occurring after October 24, 2005 and the Owner is not, and
          during the preceding three months has not been, an affiliate of the Issuer. 

     3.    
          Transfers During the Distribution Compliance Period. If the Transferee
          will take delivery in the form of a beneficial interest in the Regulation S
          Global Note and the transfer is being effected during the Distribution
          Compliance Period, such beneficial interest will be held immediately after such
          transfer only in or through accounts maintained by Euroclear or Clearstream (or
          by Agent Members acting for the account thereof). 

F-2

We understand that this certificate
is required in connection with certain securities laws of the United States. In connection
therewith, if administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer, the Trustee and the initial purchasers of the Notes. 

Dated: 

	 	

	 	(Print  the name
of the  undersigned,  as such term is defined in the second paragraph of this certificate)

	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	(If the  undersigned is a corporation,  partnership or fiduciary,
                                                              the title of the  person  signing  on  behalf of the  undersigned
                                                              must be stated)

F-3 

EXHIBIT G 

FORM OF RESTRICTED
NOTES CERTIFICATE 

(For transfers pursuant to
Section 2.13(f)(ii), (iii), (iv) and (v) of the Indenture) 

To: The Bank of New York
Trust Company (Cayman) Limitedas 
Note Registrar 

Re: 8.75%
Subordinated Notes due 2013 of Banco Bradesco S.A., acting through its Grand Cayman
branch (the "Notes")  

Reference is made to the Indenture,
dated as of October 24, 2003 (the “Indenture”), between Banco Bradesco
S.A., acting through its Grand Cayman branch (the “Issuer”) and The Bank
of New York Trust Company (Cayman) Limited, as trustee. Terms used herein and defined in
the Indenture or in Regulation S the U.S. Securities Act of 1933, as amended (the
“Securities Act”) are used herein as so defined. 

This certificate relates to U.S.$ [ ]
principal amount of Notes, which are evidenced by the following certificate(s) (the
“Specified Notes”): 

CINS No(s). [ ] 

CERTIFICATE No(s). [ ] 

The person in whose name this
certificate is executed below (the “undersigned”) hereby certifies that
either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is
acting on behalf of all the beneficial owners of the Specified Notes and is duly
authorized by them to do so. Such beneficial owner or owners are referred to herein
collectively as the “Owner”. If the Specified Notes are represented by a
Global Note, they are held through DTC or an Agent Member in the name of the undersigned,
as or on behalf of the Owner. If the Specified Notes are not represented by a Global Note,
they are registered in the name of the undersigned, as or on behalf of the Owner. 

The Owner has requested that the
Specified Notes be transferred to a person (the “Transferee”) who will
take delivery in the form of a Restricted Note. In connection with such transfer, the
Owner hereby certifies that, unless the Specified Notes are being transferred to the
Issuer or such transfer is being effected pursuant to an effective registration statement
under the Securities Act, it is being effected in accordance with Rule 144A or
Rule 144 under the Securities Act or the exemption from the registration requirements
under the Securities Act set forth in paragraph 3 below, as the case may be, and with
all applicable securities laws of the states of the United States and other jurisdictions.
Accordingly, the Owner hereby further certifies as follows: 

     1.    
          Rule 144A Transfers. If the transfer is being effected in accordance with
          Rule 144A: 

     (a)    
          the Specified Notes are being transferred to a person that the Owner and any
          person acting on its behalf reasonably believe is a “qualified
          institutional buyer” within the meaning of Rule 144A, acquiring for its own
          account or for the account of one or more qualified institutional buyers in a
          transaction meeting the requirements of Rule 144A and in accordance with any
          applicable securities laws of any State of the United States; and 

G-1 

     
(b)    
          the Owner and any person acting on its behalf have taken reasonable steps to
          ensure that the Transferee is aware that the Owner may be relying on Rule 144A
          in connection with the transfer; and 

     2.    
          Rule 144 Transfers. If the transfer is being effected pursuant to Rule
          144: 

     (a)    
          the transfer is occurring after October 24, 2004 and is being effected in
          accordance with the applicable amount, manner of sale and notice requirements of
          Rule 144; or 

     (b)    
          the transfer is occurring after October 24, 2005 and the Owner is not, and
          during the preceding three months has not been, an affiliate of the Issuer; and 

     3.    
          Other Applicable Exemptions. If the transfer is being effected pursuant
          to another exemption from the registration requirements under the Securities
          Act: 

     (a)    
          the transfer is being effected in accordance with the following exemption from
          the registration requirements under the Securities Act: _______________________
          (the “Alternative Exemption”); 

     (b)    
          the Alternative Exemption is available to the Owner for such transfer, and the
          Owner has taken all steps necessary to effect the transfer in accordance with
          the Alternative Exemption; and 

     (c)    
          attached hereto are such documents and/or an opinion of U.S. counsel stating
          that the Alternative Exemption is available to the Owner for such transfer as
          required by the Note Registrar in connection herewith. 

We understand that this certificate
is required in connection with certain securities laws of the United States. In connection
therewith, if administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer, the Trustee and the initial purchasers of the Notes. 

Dated: 

	 	

	 	(Print  the name
of the  undersigned,  as such term is defined in the second paragraph of this certificate)

	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	(If the  undersigned is a corporation,  partnership or fiduciary,
                                                              the title of the  person  signing  on  behalf of the  undersigned
                                                              must be stated)

G-2 

EXHIBIT H 

FORM OF UNRESTRICTED
NOTES CERTIFICATE 

(For removal of
Securities Act Restrictive Legends pursuant to Section 2.13(k) of the Indenture) 

To: The Bank of New York
Trust Company (Cayman) Limitedas 
Note Registrar 

Re: 8.75%
Subordinated Notes due 2013 of Banco Bradesco S.A., acting through its Grand Cayman
branch (the "Notes")  

Reference is made to the Indenture,
dated as of October 24, 2003 (the “Indenture”), between Banco Bradesco
S.A., acting through its Grand Cayman branch (the “Issuer”) and The Bank
of New York Trust Company (Cayman) Limited, as trustee. Terms used herein and defined in
the Indenture or in Regulation S under the U.S. Securities Act of 1933, as amended
(the “Securities Act”) are used herein as so defined. 

This certificate relates to U.S.$ [ ]
principal amount of Notes, which are evidenced by the following certificate(s) (the
“Specified Notes”): 

CUSIP No(s). [ ] 

CERTIFICATE No(s). [ ] 

The person in whose name this
certificate is executed below (the “undersigned”) hereby certifies that
either (i) it is the sole beneficial owner of the Specified Notes or (ii) it is
acting on behalf of all the beneficial owners of the Specified Notes and is duly
authorized by them to do so. Such beneficial owner or owners are referred to herein
collectively as the “Owner”. If the Specified Notes are represented by a
Global Note, they are held through Euroclear or Clearstream or an Agent Member in the name
of the undersigned, as or on behalf of the Owner. If the Specified Notes are not
represented by a Global Note, they are registered in the name of the undersigned, as or on
behalf of the Owner. 

The Owner has requested that the
Specified Notes be exchanged for Notes bearing no Securities Act Restrictive Legend
pursuant to Section 2.13(k) of the Indenture. In connection with such exchange, the
Owner hereby certifies that the exchange is occurring after October 24, 2005 and the Owner
is not, and during the preceding three months has not been, an affiliate of the Issuer.
The Owner also acknowledges that any future transfers of the Specified Notes must comply
with all applicable securities laws of the states of the United States and other
jurisdictions. Attached hereto are such documents and/or opinions of U.S. counsel as may
be reasonably required by the Issuer in connection herewith. 

We understand that this certificate
is required in connection with certain securities laws of the United States. In connection
therewith, if administrative or legal proceedings are commenced or threatened in
connection with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate to any interested party in such proceeding. This
certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer, the Trustee and the initial purchasers of the Notes. 

H-1 

Dated: 

	 	

	 	(Print  the name
of the  undersigned,  as such term is defined in the second paragraph of this certificate)

	 
	 
	 
	 	By:	

	 	 	Name:
	 	 	Title:
	 
	 
	 
	 	(If the  undersigned is a corporation,  partnership or fiduciary,
                                                              the title of the  person  signing  on  behalf of the  undersigned
                                                              must be stated)

H-2

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