Document:

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                                                                    EXHIBIT 10.6

                     EQUIPMENT SUPPLY AND SERVICES AGREEMENT

                                     BETWEEN

                                   MIRROR S.A.

                                       AND

                         ERICSSON TELECOMUNICACOES S.A.

                              DATED AUGUST 4, 1999

Confidential Treatment Requested. Confidential portions of this document have
been omitted and filed separately with the Securities and Exchange Commission.
<PAGE>   2

                                TABLE OF CONTENTS

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Article I Definitions; Interpretation.............................................2

     Section 1.1 Definitions......................................................2
     Section 1.2 Interpretation..................................................10

Article II Strategic Relationship................................................10

     Section 2.1 Business Dealings Among the Parties.............................10
     Section 2.2 Common Understandings...........................................10
     Section 2.3 Principles Governing Business Conduct...........................11
     Section 2.4 Purchase Commitment.............................................11

Article III Term; Condition Precedent; Suspensive Condition......................12

     Section 3.1 Term............................................................12
     Section 3.2 Effective Date..................................................12
     Section 3.3 Suspensive Conditions...........................................12

Article IV Scope of Agreement and Turnkey Responsibilities.......................13

     Section 4.1 Scope of Agreement..............................................13
     Section 4.2 Turnkey Concept.................................................13
     Section 4.3 Turnkey Switch Service Areas....................................13
     Section 4.4 Modification of Responsibilities................................13
     Section 4.5 Supplier's Subcontractors.......................................14
     Section 4.6 Subcontractor Management........................................14

Article V Order Procedures and Title Passage.....................................15

     Section 5.1 Order Procedures................................................15
     Section 5.2 Title Passage and Risk of Loss..................................15

Article VI Time Schedule.........................................................16

     Section 6.1 Performance to Schedule.........................................16
     Section 6.2 Time Is of the Essence..........................................16
     Section 6.3 Anticipated Delays..............................................16
     Section 6.4 Progress Report.................................................16
     Section 6.5 No Release Upon Payment of Liquidated Damages...................17

Article VII Prices and Payment Terms.............................................17

     Section 7.1 [***]...........................................................17
     Section 7.2 Import Duties; Taxes............................................18
     Section 7.3 Prices..........................................................18
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<TABLE>
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     Section 7.4 Price Basis.....................................................19
     Section 7.5 Invoices........................................................19
     Section 7.6 Payment Terms...................................................20
     Section 7.7 Calculation of Interest.........................................22
     Section 7.8 Payment Disputes................................................22
     Section 7.9 Financing.......................................................23
     Section 7.10 [***]..........................................................23

Article VIII Supply Agreement Administration and Project Management..............23

     Section 8.1 Project Management..............................................23
     Section 8.2 Progress Review Meeting.........................................24
     Section 8.3 Agreement Administration by Mirror..............................24
     Section 8.4 Supplier Employees..............................................25

Article IX Division of Responsibilities..........................................25

     Section 9.1 Joint Responsibilities..........................................25
     Section 9.2 Mirror Responsibilities.........................................25
     Section 9.3 Supplier Responsibilities.......................................27
     Section 9.4 [***]...........................................................29

Article X Indemnification, Damages, and Delays...................................30

     Section 10.1 General Indemnity..............................................30
     Section 10.2 Personal Injury................................................30
     Section 10.3 Claims.........................................................30
     Section 10.4 Infringement Indemnity.........................................31
     Section 10.5 [***]..........................................................32
     Section 10.6 Failure to Meet Time Schedule (Liquidated Damages).............32
     Section 10.7 [***]..........................................................35

Article XI Quality Assurance.....................................................36

     Section 11.1 Quality Assurance..............................................36

Article XII Environmental Policy.................................................36

     Section 12.1 Environment; Environmental Policy..............................36

Article XIII Warranties..........................................................37

     Section 13.1 Hardware Warranty..............................................37
     Section 13.2 Application Procedures for Hardware Warranty...................37
     Section 13.3 Software Warranty..............................................37
     Section 13.4 Year 2000 Warranty.............................................38
     Section 13.5 Warranty for Services..........................................39
     Section 13.6 No Trouble Found...............................................40
     Section 13.7 [***]..........................................................40
     Section 13.8 [***]..........................................................41
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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     Section 13.9  [***].........................................................41
     Section 13.10 Equipment Changes or Substitutions by Supplier................41
     Section 13.11 Network Expansion and Spares (Continuity of Supply)...........42
     Section 13.12 Disclaimer of Warranties......................................42
     Section 13.15 No Other Warranties...........................................45

Article XIV Software.............................................................45

     Section 14.1 Software.......................................................45
     Section 14.2 Software Patches...............................................45
     Section 14.3 Software Upgrades..............................................45
     Section 14.4 Restrictions on Use............................................45
     Section 14.5 Backward Compatibility.........................................46

Article XV Documentation.........................................................46

     Section 15.1 Documentation to be Provided by Supplier.......................46
     Section 15.2 License to Documentation.......................................47
     Section 15.3 Proprietary Information........................................47
     Section 15.4 Documents to Become Property of Mirror.........................47
     Section 15.5 Responsibility for Documents...................................47

Article XVI Force Majeure and Acts of Providence.................................47

     Section 16.1 Force Majeure..................................................47
     Section 16.2 Acts of Providence.............................................48
     Section 16.3 Exclusions.....................................................48
     Section 16.4 Procedure for Calling Force Majeure or Acts of Providence......48
     Section 16.5 Effects of Force Majeure or Acts of Providence.................49

Article XVII Representations and Warranties......................................50

     Section 17.1 Representations and Warranties of Supplier.....................50
     Section 17.2 Representations and Warranties of Mirror.......................51

Article XVIII Insurance..........................................................52

     Section 18.1 Insurance......................................................52

Article XIX Limitation on Liability..............................................52

     Section 19.1 Limitation of Liability........................................52

Article XX Confidentiality.......................................................53

     Section 20.1 Confidentiality................................................53

Article XXI Events of Default; Termination.......................................55

     Section 21.1 Mirror Events of Default.......................................55
     Section 21.2 Remedies for Supplier Events of Default........................56
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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     Section 21.3 Supplier Events of Default.....................................56
     Section 21.4 Remedies for Supplier Event of Default.........................56
     Section 21.5 Effects of Termination on Pre-Existing Rights..................57

Article XXII Governing Law; Resolution of Disputes...............................57

     Section 22.1 Governing Law..................................................57
     Section 22.2 Disputes.......................................................57
     Section 22.3 Executive Resolution...........................................57
     Section 22.4 Arbitration....................................................57

Section XXIII [***]..............................................................59

     Section 23.1 [***]..........................................................59
     Section 23.2 [***]..........................................................59

Article XXIV Miscellaneous.......................................................60

     Section 24.1 Compliance with Law............................................60
     Section 24.2 Publicity and Trademark........................................60
     Section 24.3 Assignment.....................................................60
     Section 24.4 Notices........................................................60
     Section 24.5 Modifications to Notice Address................................61
     Section 24.6 Records........................................................61
     Section 24.7 Severability...................................................61
     Section 24.8 Survival.......................................................62
     Section 24.9 Consent........................................................62
     Section 24.10 Discrepancies or Inconsistencies..............................62
     Section 24.11 Amendment, Modification or Addendum...........................62
     Section 24.12 No Waiver of Rights; No Novation..............................62
     Section 24.13 Costs and Expenses............................................63
     Section 24.14 Relationship of the Parties...................................63
     Section 24.15 Language of Agreement.........................................63
     Section 24.16 Third Party Beneficiaries.....................................63
     Section 14.17 Duty to Mitigate..............................................63
     Section 14.18 Schedules.....................................................63
</TABLE>

                         SCHEDULE               TITLE

                         Schedule 4.1           [***]

                         Schedule 5.1(a)        [***]

                         Schedule 6.1(a)        [***]

                         Schedule 7.3           [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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   Schedule 7.9           [***]

   Schedule 9.1(a)        [***]

   Schedule 9.3(a)        [***]

   Schedule 9.3(d)        [***]

   Schedule 10.7          [***]

   Schedule 13.1          [***]

   Schedule 13.2          [***]

   Schedule 13.9          [***]

   Schedule 14.1          [***]

   Schedule 15.1          [***]

   Schedule 17.1(a)       [***]

   Schedule 23.1          [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<PAGE>   7

                     EQUIPMENT SUPPLY AND SERVICES AGREEMENT

         THIS EQUIPMENT SUPPLY AND SERVICES AGREEMENT (this "AGREEMENT") is
entered into as of the date specified on the signature page hereof between
MIRROR S.A., a corporation duly organized under the laws of Brazil with its head
office located at Av. Chile, no. 500, 25(0) andar, in the city and State of Rio
de Janeiro, Brazil, registered with the Brazilian Registry of Legal Entities
(CNPJ) n(0) 02.730.101/0001-43 ("MIRROR"), and ERICSSON TELECOMUNICACOES S.A., a
Sociedade Anonima organized under the laws of Brazil, with its head office
located at Rua Maria Prestes Maia no. 300, in the city and State of Sao Paulo,
Brazil, registered with the Brazilian Registry of Legal Entities (CNPJ) n(0)
33.067/745/0001.27 ("SUPPLIER"). Each of Mirror and Supplier are referred to
herein as a "PARTY" and, collectively, as the "PARTIES."

                                    RECITALS

         WHEREAS, Mirror has entered into two agreements with ANATEL, the Termos
de Autorizacao do Servico Telefonico Comutado, Modalidades Local e Longa
Distancia, entered into on February 4, 1999 (collectively, the "LICENSE") to
provide switched, fixed telecommunications services in Region I of Brazil (as
defined in Schedule I of the Request for Bid in Bidding Procedure No.
0001/98/SBP/ANATEL), comprising the following states of the Brazilian territory:
Rio de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas,
Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranhao, Para, Amapa,
Amazonas and Roraima (the "TERRITORY");

         WHEREAS, Supplier is a worldwide provider of integrated
telecommunications solutions, with manufacturing operations in several
countries, including a state-of-the-art manufacturing facility located in the
city of Sao Jose dos Campos, state of Sao Paulo, Brazil;

         WHEREAS, Mirror seeks to purchase Equipment and Services from Supplier
for the purpose of engineering, commissioning, building and installing a public
switched telecommunications network in the Territory (the "PROJECT"), [***] on a
Turnkey basis as provided herein;

         WHEREAS, Supplier is willing to supply to Mirror, and Mirror is willing
to purchase from Supplier, Equipment and Services for deployment in connection
with the Project on the terms and conditions set forth in this Agreement; and

         [***]

         NOW, THEREFORE, in consideration of the mutual premises contained
herein, the Parties hereby agree as follows:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       1
<PAGE>   8

                                    AGREEMENT

                                    ARTICLE I
                           DEFINITIONS; INTERPRETATION

         Section 1.1. Definitions. Capitalized terms used but not otherwise
defined herein shall have the respective meanings set forth below:

         "ACCEPTANCE" means Partial Provisional Acceptance, Provisional
Acceptance and/or Final Acceptance, as the case may be.

         "ACCEPTANCE TEST PROCEDURES" means mutually agreed methods of testing
and procedures that will be used to measure the performance of the Network,
Switch Service Areas, Equipment, Systems, Software and Services, which methods
shall be defined and administered in accordance with Schedule 9.3(a).

         "ACTS OF PROVIDENCE" has the meaning set forth in Section 16.2.

         "ADDITIONAL EQUIPMENT" has the meaning set forth in Section 13.10(c).

         "AFFECTED PARTY" has the meaning set forth in Section 16.4(a).

         "AFFILIATE," with respect to any Person, means any other Person, now or
hereafter existing, who, directly or indirectly, Controls, is Controlled by, or
is under common Control with, such Person.

         "AGREEMENT" means this Agreement and its Schedules.

         "ANATEL" means the Agencia Nacional de Telecomunicacoes of Brazil.

         "AUTHORITY" means any governmental or other regulatory authority,
agency or instrumentality with jurisdiction over the operations of Mirror in
Brazil, including but not limited to ANATEL, and includes any officer empowered
by such Authority to perform all or any of the functions of the Authority or the
functional equivalent successors of the Authority.

         "AUDITOR" has the meaning set forth in Section 7.1(c).

         "AUTHORIZED AGENT" has the meaning set forth in Section 20.1(e).

         "BRAZIL" means the Republica Federativa do Brasil.

         "BUSINESS DAY" means any day other than a Saturday, Sunday or a day on
which commercial banks are authorized or required to be closed in Sao Paulo or
Rio de Janeiro, Brazil.

         "BUSINESS PLAN" means Mirror's business plan comprising the pro-forma
balance sheet, the pro-forma statement of earnings and cash flow and pro-forma
financing requirements for Mirror, as such Business Plan may from time to time
be revised by Mirror.

                                       2
<PAGE>   9

         "CDMA" means "code division multiple access" technology.

         "CELL SITE" means a Site containing transmission and ancillary
Equipment designed to broadcast wireless signals to other Cell Sites, to one or
more Switches and/or to Customers, which signals are used to complete calls on
the Network.

         "CHANGE ORDER" has the meaning set forth in Schedule 5.1(a).

         "CHANGE ORDER PROCEDURE" means the procedure for requesting and
implementing Change Orders as specified in Schedule 5.1(a).

         [***]

         "CLASS A HARDWARE CHANGE" means a modification of existing Equipment to
remedy non-conformance to the Specifications that is required to correct design
defects of a type that result in electrical or mechanical inoperative conditions
or operating conditions that do not conform to the Specifications or Prudent
Industry Practice, or that is required to enhance safety.

         "CLASS AC HARDWARE CHANGE" means a modification of existing Equipment
to remedy electrical or mechanical inoperative conditions or operating
conditions that do not conform to the Specifications or Prudent Industry
Practice with respect to such existing Equipment, which result from the
installation of new Equipment or which result from such existing Equipment being
used in combination with other new Equipment supplied by Supplier.

         "COMMERCIAL LAUNCH" means the date on which the Equipment or Systems
that are the subject of an Order Document are completed and have achieved
Provisional Acceptance (including the completion of the Trial Run, if
applicable) and Mirror, at its sole discretion, causes such Equipment or Systems
to begin to operate with Customers (not including customers taking service on a
trial basis during the Trial Run).

         "COMMISSIONING" means, with respect to any Equipment or System, the
powering of the Equipment or System, as the case may be, the loading of the
Software and the activation of the Equipment or System.

         "COMPLETED SITES" has the meaning set forth in Section 7.6(a)(ii).

         "CONFIDENTIAL INFORMATION" has the meaning set forth in Section
20.1(a).

         "CONTROL" is possessed by a Person over another Person (such other
Person the "SUBJECT PERSON") if such Person (alone or in combination with one or
more related Persons and/or Affiliates), (i) holds shares or possesses rights
that assure it the majority of votes in resolutions in a general meeting of
shareholders and the power to elect a majority of the subject Person's directors
and officers; (ii) holds shares or possesses rights either directly or
indirectly through the control of other subject Person(s) that assure its
prevalence in corporate resolutions and the power to elect the majority of the
subject Person's directors and officers; (iii) satisfies the definitions of
"control" set forth in articles 116 and 243(2) of the Brazilian Company Act or
any successor or replacement

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       3
<PAGE>   10

legislation thereof or (iv) has the power otherwise to cause the direction of
the management of the subject Person; "CONTROLLING" or "CONTROLLED" have
corresponding meanings.

         "COURSES" has the meaning set forth in Section 9.3(d).

         "CUSTOMER" means a subscriber to the telecommunications services
provided by Mirror over the Network, other than under the terms of a Trial Run.

         [***]

         [***]

         [***]

         "DISPUTE" has the meaning set forth in Section 22.2.

         "DISPUTE NOTICE" has the meaning set forth in Section 22.3(a).

         "DOCUMENTATION" means the documents describing the Equipment, the
Services, Software and each of the Systems, general operating instructions,
drawings, diagrams and other written material as well as electronic material if
any (such as in the form of CD-ROM and other electronic media) that Supplier is
required to provide to Mirror under this Agreement.

         "DOLLARS" or "US DOLLARS" or "US$" means the lawful currency of the
United States of America.

         "EFFECTIVE DATE" has the meaning set forth in Section 3.2.

         "EQUIPMENT" means the equipment including, without limitation,
Hardware, Software and spare parts necessary to provide telecommunications
services to Customers within the Territory, consistent with applicable Laws and
Specifications.

         "EVENTS OF DEFAULT" has the meaning set forth in Section 21.1.

         "EXCESS CAPACITY" has the meaning set forth in Section 13.10(c).

         "EXCESS DUTIES" has the meaning set forth in Section 7.2.

         [***]

         "FINAL ACCEPTANCE" means that the Equipment, Services and/or Systems
that are the subject of an Order Document have been completed and successfully
have met all of the requirements for Final Acceptance set forth in Schedule
9.3(a) and/or such Order Document, as the case may be, and all Punchlist items,
if any, have been completed.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       4
<PAGE>   11

         "FINANCING AGREEMENT" means one or more agreements regarding financing
by Supplier of the Equipment and Services contemplated to be supplied/performed
under this Agreement as well as related import duties and taxes, as more fully
described in the Term Sheet.

         "FINANCING FACILITY" has the meaning set forth in Section 3.3(b).

         "FORCE MAJEURE" has the meaning set forth in Section 16.1.

         "GOVERNMENT" means the government of Brazil, any state, region,
municipality or other political subdivision and/or any ministry, department,
agency or other instrumentality thereof.

         [***]

         "HARDWARE" means all the Equipment as defined herein, including spare
parts but not including Software.

         "HARDWARE WARRANTY" has the meaning set forth in Section 13.2(b).

         "HARDWARE WARRANTY PERIOD" has the meaning set forth in Section
13.2(b).

         "INDEMNIFIED EQUIPMENT" has the meaning set forth in Section 10.4(a).

         "INDEMNIFIED PARTY" has the meaning set forth in Section 10.3(a).

         "INDEMNIFYING PARTY" has the meaning set forth in Section 10.3(a).

         "INFRASTRUCTURE EQUIPMENT AND SERVICES" has the meaning set forth in
Section 2.4(a).

         "INITIAL BUILD" has the meaning set forth in Section 7.6(a).

         "INSTALLATION" or "INSTALLATION SERVICES" means the Services listed in
Schedule 13.1 relating to assembling and installing of Equipment.

         "INTEREST RATE" has the meaning set forth in Section 7.6(c).

         "LAW" means the Constitution of Brazil, the Constitution of the State
of Rio de Janeiro or any other state located in the Territory, statutes,
provisional measures ("medidas provisorias"), Permit terms, judicial orders,
injunctive relief and other decisions, executive decrees, codes, administrative
decisions and rulings, regulations, assessments or requirements, in each case,
by or of any Authority generally affecting the residents of Brazil or the State
of Rio de Janeiro or any other state located in the Territory, or specifically
affecting any of the Parties or their performance under this Agreement. In
addition, Laws shall include all of the foregoing promulgated by any authority
of any other jurisdiction to which the Parties or any of them are subject.

         "LICENSE" has the meaning set forth in the Recitals to this Agreement.

         "LIQUIDATED DAMAGES" has the meaning set forth in Section 10.6(f).

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       5
<PAGE>   12

         "LOSS" means any loss, damage, claim, obligation, liability or expense,
including reasonable attorneys' and experts' fees.

         "MIRROR" has the meaning set forth in the Introductory Paragraph to
this Agreement.

         "MIRROR DELAYS" has the meaning set forth in Section 10.6(f).

         "MIRROR INDEMNIFIED PERSONS" has the meaning set forth in Section
10.1(a).

         "MIRROR PROJECT MANAGER" has the meaning set forth in Section 8.1(b).

         "MIRROR'S WAREHOUSE" means Mirror's storage facilities located at
specific sites to be designated from time to time by Mirror in a notice to
Supplier.

         "NETWORK" means the complete and operating integrated ensemble of
Systems, Equipment and Services, necessary to permit Mirror to provide
telecommunications services to Customers in the Territory, consistent with
applicable Laws and the Specifications.

         "NORTEL" has the meaning set forth in Section 9.3(e).

         "O&M" means operations and maintenance.

         "OEM EQUIPMENT" means Equipment supplied by Supplier but manufactured
by a third party vendor in accordance with Section 13.2(c).

         "ORDER DOCUMENT" has the meaning set forth in Schedule 5.1(a).

         "OTHER PURCHASE" has the meaning set forth in Section 7.6(a).

         "PARTIAL COMMERCIAL LAUNCH" means, with respect to an SSA Purchase
Order, the Commercial Launch (at Mirror's sole discretion) of less than all of
the number of Cell Sites specified in such SSA Purchase Order.

         "PARTIAL PROVISIONAL ACCEPTANCE" means, with respect to an SSA Purchase
Order, the Provisional Acceptance (at Mirror's sole discretion) of less than all
of the number of Cell Sites specified in such SSA Purchase Order.

         "PARTY" or "PARTIES" has the meaning set forth in the Introductory
Paragraph to this Agreement.

         [***]

         "PERMIT" means any consent, license, approval, permit, exemption,
registration, no objection certificate or other authorization of whatever nature
that is required to be granted at any time by any Person (a) for the purposes of
the Project including, without limitation, the construction, installation and
operation of the Network, the sale of the Equipment and the provision

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       6
<PAGE>   13

of the Services; or (b) to allow Mirror to be permitted to enter into, or to
exercise its rights or observe or perform its obligations under, this Agreement.

         "PERSON(S)" includes, without limitation, any individual, firm,
company, association, partnership, joint venture, trust, investment company,
pension fund or investment fund, or other entity, or any government or any
ministry, department or agency thereof.

         "PLUG-IN" has the meaning set forth in Section 13.3(c).

         [***]

         "PRIME SUBCONTRACTOR" means a Subcontractor that has entered into a
contract with Supplier or Mirror (as the case may be) with a value in excess of
R$5 million per year.

         "PROJECT" has the meaning set forth in the Recitals.

         "PROPRIETARY RIGHTS" has the meaning set forth in Section 10.4(a).

         "PROVISIONAL ACCEPTANCE" means that a particular System or Switch
Service Area or Other Purchase has met the requirements for Provisional
Acceptance set forth in Schedule 9.3(a) with respect to all components of such
System or all Sites in, and other aspects of, such Switch Service Area or Other
Purchase, as the case may be, except for Punchlist items.

         "PRUDENT INDUSTRY PRACTICE" means those practices, methods, equipment
specifications and standards of safety and performance (including compliance
with all equipment manufacturers' specifications and recommended standards for
O&M), as the same may change from time to time, as are commonly used by firms
performing engineering, furnishing, installation and construction services on
facilities of a type and size similar to those provided by Supplier under this
Agreement, which in the exercise of reasonable judgment and in the light of the
facts that are known or should have been known at the time the decision was
made, are considered good, safe and prudent practice in connection with the
design, construction and use of equipment, software, facilities and
improvements, with commensurate standards of safety, performance, dependability,
efficiency and economy. Prudent Industry Practice is not intended to be limited
to the optimum practice or method to the exclusion of all others, but rather to
be a spectrum of reasonable and prudent practices and methods.

         "PSTN" means the public switched telephone network in the Territory and
in Brazil as a whole.

         "PUNCHLIST" means a list of non-material defects or faults in Services,
Equipment, a Switch Service Area, a System or an Other Purchase that do not
prevent the Network or any of its elements from entering into commercial
operation in accordance with the Specifications and Prudent Industry Practice,
which items must be resolved by Supplier prior to Final Acceptance thereof.

         "PURCHASE COMMITMENT" has the meaning set forth in Section 2.4(b).

         "PURCHASE ORDER" has the meaning set forth in Schedule 5.1(a).

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       7
<PAGE>   14

         "REAL" or "REAIS" OR "R$" means the lawful currency of Brazil.

         "REQUEST FOR QUOTATION" has the meaning set forth in Schedule 5.1(a).

         "RESPONSE NOTICE" has the meaning set forth in Section 22.3(b).

         "RESPONSIBILITY MATRIX" means the table allocating tasks and
responsibilities between Mirror and Supplier for a given phase of the Project as
set forth in Schedule 9.1(a).

         "SCHEDULES" means the schedules attached to this Agreement.

         "SCOPE OF WORK" means the description of the work that Supplier shall
perform under this Agreement, as set forth in Schedule 4.1.

         "SERVICES" means all services required to engineer, furnish and install
the Equipment and Systems comprising the Network and to prepare the Network for
operation, as described in Schedules 4.1, 7.3 and 13.1 that Supplier is required
to provide to Mirror under this Agreement.

         "SITE" means Mirror's Warehouse or any specific premises where Supplier
shall deliver Equipment or perform Services, as designated by Mirror in
accordance with this Agreement.

         "SOFT LAUNCH" means, as applicable with respect to a Switch Service
Area or System, the commencement of the Trial Run after the Provisional
Acceptance (or Partial Provisional Acceptance) of such Switch Service Area or
System, as the case may be.

         "SOFTWARE" means the proprietary and/or third party software computer
programs (consisting of firmware and logic instructions in machine-readable code
residing in, or intended to be loaded in, system memories that provide basic
logic, operating instructions and user-related application instructions, but
excluding customer data) as well as associated Documentation used to describe,
maintain and use the programs that are integral to any Equipment required for
the Network; any reference herein to Software being sold, purchased or the like
is understood to be a reference to the Software being licensed by Supplier (or,
for third-party software supplied by Supplier, licensed by the manufacturer of
such Software) for use by Mirror.

         "SOFTWARE PATCH" means periodic updates or corrections to the Software
issued by Supplier to Mirror; provided, however, the foregoing does not apply to
any features other than those provided by this Agreement unless, in connection
with any such Software Patch, Supplier is unable to remove or render such
additional features inoperable without adversely affecting the other items which
are properly a part of the Software or the Software Patch.

         "SOFTWARE WARRANTY" has the meaning set forth in Section 13.4.

         "SOFTWARE WARRANTY PERIOD" means the period during which the Software
Warranty is in effect pursuant to Section 13.4(a).

                                       8
<PAGE>   15

         "SPECIFICATIONS" means the technical standards and specifications, as
well as the requirements of the Equipment, each Switch Service Area and each
System, as set forth on Schedule 13.1.

         "SUBCONTRACTOR" means any Person engaged by any other Person, either
directly or indirectly through one or more subcontracts, to provide specific
Equipment or Services for the Network.

         "SUPPLIER" has the meaning set forth in the introductory paragraph to
this Agreement.

         "SUPPLIER PROJECT MANAGER" has the meaning set forth in Section 8.1(a).

         "SUPPLIER REPRESENTATIVE" means any agent, representative, servant,
Subcontractor, officer or employee of Supplier or its successors or permitted
assigns.

         "SWITCH" means a Network element deployed within the Network that
enables the concentration, distribution, supervision of telecommunications
traffic and the gathering of billing data for calls to and from Mirror's
Customers.

         "SWITCH SERVICE AREA" or "SSA" means the portion of the Network
installed within the geographic area covered by a single Switching center and
all subsidiary Equipment attached to the Switches comprising such Switching
center including, without limitation, base station Equipment, transmission
Equipment and power system Equipment.

         "SSA PURCHASE ORDER" has the meaning set forth in Schedule 5.1(a).

         "SSA REQUEST FOR QUOTATION" has the meaning set forth in Schedule
5.1(a).

         "SYSTEM" means a group of Equipment, Services, components and
infrastructure related to the Network and performing a specific function in the
Network such as, without limitation, billing system, transport system, voice
messaging system and data system.

         "TECHNICAL ASSISTANCE SERVICES" means the Services listed under such
heading in Schedule 13.9.

         "TERM" has the meaning set forth in Section 3.1.

         "TERM SHEET" means the term sheet for the Financing Agreement, attached
hereto as Schedule 7.9.

         "TERRITORY" has the meaning set forth in the Recitals to this
Agreement.

         "TIME SCHEDULE" has the meaning set forth in Section 6.1.

         "TOOLS" has the meaning set forth in Section 9.3(j).

                                       9
<PAGE>   16

         "TRIAL RUN" means, as applicable, with respect to a Switch Service
Area, the period prior to Commercial Launch when the Switch Service Area will be
optimized and operating with "friendly" Customers for purposes of testing and
validating the Equipment and Systems comprising such Switch Service Area and not
for purposes of revenue generation. [***]

         "TURNKEY" has the meaning set forth in Section 4.2.

         "UNCOMPLETED SITES" has the meaning set forth in Section 7.6(a)(ii).

         "WARRANTY PERIOD" means the Software Warranty Period and/or the
Hardware Warranty Period, as the case may be.

         "YEAR 2000 COMPLIANT" has the meaning set forth in Section 13.5(a).

         Section 1.2. Interpretation. In this Agreement, (i) any reference to an
agreement or document shall mean such agreement or document as the same may be
supplemented, amended or modified from time to time in accordance with its
terms; (ii) in the computation of periods of time from a specified date to a
later specified date, the word "from" means "from but excluding" and the words
"until" and "to" mean "to and including"; (iii) words importing the singular
shall include the plural and vice versa, and (iv) words importing the masculine
gender shall include the feminine and vice versa; (v) reference to any article,
section, clause, paragraph or schedule shall mean the applicable article,
section, clause, paragraph of, or schedule to, this Agreement, unless the
context otherwise requires; (vi) terms defined in this Agreement, when used in a
schedule to this Agreement, shall have the same meaning in such schedule as in
the Agreement; and (vii) capitalized terms used in a schedule that are not
defined in this Agreement shall have the meaning attributed to them in such
schedule.

                                   ARTICLE II
                             STRATEGIC RELATIONSHIP

         Section 2.1. Business Dealings Among the Parties. Mirror and Supplier
are entering into a collaborative relationship intended to enable Mirror to
obtain a competitive advantage in offering telecommunications services in the
Territory pursuant to the License. Each of the Parties will demonstrate
integrity and commitment to the Project of the highest order.

         Section 2.2. Common Understandings. The Parties understand and
acknowledge that the following principles are critical to the success of the
relationship established by this Agreement and accordingly will strive to:

               (a) create business value for each of the Parties;

               (b) provide a high level of commitment to the relationship;

               (c) work together through the learning curve;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       10
<PAGE>   17

               (d) work together to accelerate innovation and expansion of the
market for the services to be provided by Mirror; and

               (e) develop and implement reliable methods, measurements, waste
reduction and other quality assurance principles.

         Section 2.3. Principles Governing Business Conduct. In support of the
critical success factors set forth in Section 2.1 and Section 2.2, the Parties
shall conduct business in the manner set forth below:

               (a) Communication between the Parties shall be accurate, timely,
complete and concise. The Parties shall provide information that is meaningful
and not hold such information as leverage against one another.

               (b) The Parties shall endeavor to resolve issues and complete
negotiations at the lowest appropriate management levels within their respective
organizations. When escalation of an issue to a more senior management
representative is warranted, the Parties shall jointly escalate such issue.

               (c) The Parties shall strive continuously to improve business
processes and the efficiency and functionality of their technology and
Equipment.

               (d) Supplier shall strive to identify and explore applications of
new technologies. Accordingly, technological innovations in relevant substantive
fields shall be constantly monitored and reviewed by Supplier and discussed with
Mirror for applicability to the Project, both within and outside of the context
of the Product Improvement Program.

               (e) The intent of the Parties is to share, as set forth herein or
otherwise mutually agreed by the Parties, the risks and benefits resulting from
business activities under this Agreement.

         Section 2.4. Purchase Commitment.

               (a) For purposes of this Agreement, "INFRASTRUCTURE EQUIPMENT AND
SERVICES" means wireless local access infrastructure Equipment and related
Services provided on a Turnkey basis, including all Services required to
engineer, furnish and install such Equipment and to achieve Final Acceptance
with respect thereto, and "1.9 EQUIPMENT" shall mean Infrastructure Equipment
and Services operating at 1.900 MHz., provided on a Turnkey basis, in each case
identified as such in Schedule 7.3.

               (b) [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       11
<PAGE>   18

[***].

               (c) [***].

                                   ARTICLE III
                 TERM; CONDITION PRECEDENT; SUSPENSIVE CONDITION

         Section 3.1. Term. The term of this Agreement (the "TERM") shall be
five (5) years from the Effective Date, unless terminated earlier pursuant to
Article XXI, subject to renewal upon the mutual agreement of the Parties.

         Section 3.2. Effective Date. For the purposes of this Agreement, the
date that is the later of (a) the date on which the Parties execute the Term
Sheet, (b) the date on which the Parties execute this Agreement and (c) the date
on which the Parties complete and attach hereto all of the Schedules to this
Agreement is referred to as the "EFFECTIVE DATE".

         Section 3.3. Suspensive Conditions. In the event that:

               (a) the Parties fail to complete and attach hereto all of the
Schedules to this Agreement specified in Section 24.17 by August 5, 1999 (or
such other date as agreed by the Parties); or

               (b) the Parties fail (i) to complete all required due diligence,
and (ii) to receive all required corporate authorizations, in each case in
respect of the vendor financing facility contemplated by the Term Sheet (the
"FINANCING FACILITY"), by August 25,1999, unless otherwise agreed by the
Parties; then

this Agreement shall terminate automatically as of such date and be of no
further force and effect, without liability for default.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       12
<PAGE>   19

                                   ARTICLE IV
                 SCOPE OF AGREEMENT AND TURNKEY RESPONSIBILITIES

         Section 4.1. Scope of Agreement. Pursuant to the Scope of Work and
subject to the terms and conditions of this Agreement, Supplier agrees to supply
to Mirror and Mirror agrees to purchase from Supplier, Equipment and Services as
specified in any Order Document.

         Section 4.2. Turnkey Concept. Supplier shall manage and oversee the
overall implementation of the portions of the Network for which Supplier is
responsible under this Agreement (Supplier's "TURNKEY" responsibilities) in
accordance with the terms of this Agreement in accordance with the Scope of
Work, Time Schedule and the Specifications and as specified in greater detail in
Sections 4.3 and 4.4. The Parties acknowledge that Supplier is responsible for
only the portion of the Network specified in the Scope of Work and the
Responsibility Matrix, that other vendors, including, without limitation,
Nortel, have "turnkey" responsibilities with respect to other portions of the
Network and for the operation of the Network as a whole and that Supplier shall
not be held liable for any of the "turnkey" responsibilities of such other
vendors or any obligations of Mirror hereunder.

         Section 4.3. Turnkey Switch Service Areas. Supplier's Turnkey
responsibilities with respect to implementing the portion of each Switch Service
Area or Other Purchase, for which it is responsible, as the case may be (as
detailed more fully in the Responsibility Matrix), shall encompass, without
limitation:

         [***]

         Section 4.4. Modification of Responsibilities. During the Term, Mirror
may, with the consent of Supplier, which consent shall not unreasonably be
withheld, delayed or conditioned, modify the Responsibility Matrix for the
Project such that Mirror assumes a greater role in the management of the
Project, thereby modifying the Turnkey nature of the Project and Supplier's
obligations hereunder. Mirror agrees to provide Supplier with three (3) months'
notice prior to implementing any such modification. Any modification to this
Agreement required to implement the provisions of this Section 4.4 shall require
the agreement of the Parties.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       13
<PAGE>   20

         Section 4.5. Supplier's Subcontractors. Supplier may subcontract the
provision of the Services as it deems appropriate and, as agreed in advance by
Mirror, the manufacture of Equipment, subject to the following provisions:

               (a) All Subcontractors must have a demonstrated track record of
(i) performing highest quality work, (ii) reliability and (iii) experience in
performing the relevant tasks for which such Subcontractors are contracted.

               (b) Prior to engaging any Prime Subcontractor, Supplier shall
first notify Mirror and obtain the consent of Mirror to the engagement of such
Prime Subcontractor. If Mirror does not reject such Prime Subcontractor within
eight (8) Business Days of such notification, the appointment of such Prime
Subcontractor shall be deemed to have been accepted by Mirror.

         Section 4.6. Subcontractor Management.

               (a)[***].

               (b) Supplier shall be and remain fully responsible to Mirror for
providing the Equipment and Services in accordance with the requirements of this
Agreement, the Time Schedule, the Specifications and Prudent Industry Practice,
irrespective of the performance of its Subcontractors and their respective
Subcontractors, employees, agents, representatives and consultants.

               (c) Nothing contained herein shall be interpreted to create any
contractual or labor relationship between any Subcontractor and Mirror, except
to the extent such relationship is created by a direct contract between Mirror
and such Subcontractor. [***] Supplier shall be fully responsible to Mirror for
the acts and omissions of Subcontractors contracted by it or by its
Subcontractors, and Supplier shall indemnify, defend and hold harmless Mirror
against any and all Losses that Mirror may suffer, incur or bear as a result of
any acts, omissions or default by or on behalf of any such Subcontractor.

               (d) Mirror shall have the right to cause Supplier to dismiss from
the Project any Subcontractor engaged by Supplier if, in Mirror's reasonable
judgment, such Subcontractor or its employees or Subcontractors is not
performing in a competent, workmanlike and professional manner and in accordance
with Mirror's policies governing employee conduct and Prudent Industry
Practices, upon written notice given to Supplier at least thirty (30) days in
advance of the

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       14
<PAGE>   21

intended date for such dismissal; provided that such dismissal notice shall be
ineffective if, within such thirty (30) day period, Supplier is able to cure the
condition giving rise to Mirror's dismissal request to Mirror's reasonable
satisfaction. Notwithstanding the foregoing sentence, if Supplier reasonably
determines that any Prime Subcontractor whose dismissal Mirror requests must
complete its work under any then outstanding Order Document prior to its
dismissal (in order to avoid any delay in the performance of Supplier's
obligations under the Time Schedule), Supplier shall be allowed to maintain such
Prime Subcontractor until such work then outstanding is completed. Such
dismissal shall in no way release Supplier from its obligations and
responsibilities under this Agreement.

                                    ARTICLE V
                       ORDER PROCEDURES AND TITLE PASSAGE

         Section 5.1. Order Procedures.

               (a) Schedule 5.1(a) sets forth the procedure agreed to by the
Parties for the purchases to be made under this Agreement.

               (b) In the event of any inconsistency between the terms and
conditions contained in this Agreement and the terms and conditions of any Order
Document or other written agreement executed by the Parties, the terms of this
Agreement shall prevail unless such Order Document or other written agreement
expressly purports to modify such terms.

               (c) Except as otherwise provided for in Sections 2.4 and 4.3 -
4.5, only an Order Document duly executed by Mirror and accepted by Supplier as
provided in this Article V shall constitute a firm commitment or obligation to
purchase on the part of Mirror and a firm commitment to supply or provide the
subject Equipment or Services on the part of Supplier.

         Section 5.2. Title Passage, Risk of Loss.

               (a) Subject to Mirror's right to reject any Equipment that does
not conform to the Specifications, title to and risk of Loss of the Equipment
shall pass to Mirror upon the earlier of (i) Provisional Acceptance and (ii) 120
days from the date of shipment of such Equipment from Supplier's
manufacturing/assembly facilities in Brazil.

               (b) Title to Supplier's intellectual property, including, without
limitation, Software, patents, copyrights, trademarks and tradenames, shall not
be conveyed to Mirror at any time.

               (c) Mirror shall notify Supplier promptly of any claim with
respect to Loss that occurs while Supplier has the risk of Loss and shall
cooperate in every reasonable way to facilitate the settlement of any claim
related to any such Loss.

                                       15
<PAGE>   22

                                   ARTICLE VI
                                  TIME SCHEDULE

         Section 6.1. Perform to Schedule.

               (a) The Parties shall adhere to the schedule of milestones set
forth in Schedule 6.1(a) or to any amendment or replacement thereof as well as
to the schedule of milestones set forth in each Order Document (each, as
applicable, the "TIME SCHEDULE") for performance of their respective
responsibilities set forth in the Responsibility Matrix and shall use all
reasonable efforts to minimize all delays. In no event shall the date for any
Commercial Launch specified on the version of the Time Schedule attached hereto
as Schedule 6.1(a) be changed in any version/revision of the Time Schedule
accompanying any Order Document without the consent of both Parties.
Notwithstanding the foregoing, Supplier shall not be in breach of its
obligations with respect to any milestone on the Time Schedule nor be
responsible for any delays or damages (including, without limitation, Liquidated
Damages) to the extent that such delays or damages arise from the exercise by
Mirror of any discretionary right under this Agreement (other than as provided
in Section 9.3(h)) in a manner that directly and unreasonably impedes, prevents
or burdens Supplier's ability to conform to the Time Schedule. In the event that
Mirror's exercise of such rights unduly impedes, prevents, or burdens Supplier's
ability to conform to the Time Schedule, then the time of performance of any of
Supplier's obligations hereunder, including the obligations to meet each of the
milestones under the Time Schedule, shall be extended by the actual time of
delay caused by such event, unless the Parties otherwise agree.

               (b) Notwithstanding anything in the Time Schedule to the
contrary, in no event shall Liquidated Damages for Supplier's delays in meeting
the milestones in the Time Schedule be applicable prior to [***] following
the date on which Mirror validly issues a "notice to proceed" to Supplier
representing that it has secured the relevant Site for such Cell Site and
confirming that Supplier may commence construction of such Cell Site.

               (c) The Time Schedule (which, unless otherwise agreed, shall be
created using "Microsoft Project" software) will indicate the relevant time
periods for the engineering, manufacture, shipment, delivery and receipt of the
Equipment and the provision of the Installation, testing, Commissioning,
Provisional Acceptance, Final Acceptance and all other Services.

         Section 6.2. Time Is of the Essence. The Parties specifically
acknowledge and agree that time is of the essence in the performance of all of
their respective obligations set forth in this Agreement.

         Section 6.3. Anticipated Delays. Each Party shall immediately  notify
the other of any anticipated delay in the performance of its obligations under
this Agreement from the date specified in the Time Schedule; provided that such
notification shall not relieve such Party of any of its obligations under this
Agreement except as otherwise specifically provided herein.

         Section 6.4. Progress Report. Supplier shall provide Mirror, on a
periodic basis as agreed by the Parties and in connection with the Project
review meetings held in accordance with Section 8.2, a written report (in hard
and electronic format) showing the scheduled progress versus actual progress,
giving the details of work completed in relation to the Time Schedule. Such
report shall also include a detailed explanation of any delays and a detailed
projection of when the work shall be completed. In the event that both Parties
have agreed in writing to changes in the Time Schedule, Supplier shall provide
an updated Time Schedule to Mirror reflecting such agreement.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       16
<PAGE>   23

         Section 6.5. No Release upon Payment of Liquidated Damages. The
payments of Liquidated Damages for not achieving Provisional Acceptance or any
other milestones on time shall not release Supplier from the responsibility to
continue the delivery of the Equipment, the completion of the Services, and its
other obligations under this Agreement.

                                   ARTICLE VII
                            PRICES AND PAYMENT TERMS

         Section 7.1. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       17
<PAGE>   24
[***].
         Section 7.2. Import Duties; Taxes.

               (a) [***].

         Section 7.3. Prices.

               (a) The prices charged by Supplier under this Agreement for
Equipment and Services shall be as specified in Schedule 7.3 [***].

               (b) If the Parties are unable to agree as to Supplier's
compliance [***] then such issue shall be determined pursuant to Section 22.4.

               (c) The prices set forth in Schedule 7.3 are quoted, and shall be
invoiced and paid, in Reais. Such prices are quoted as of the Effective Date. To
maintain the economic and financial balance of the Agreement, such prices shall
be adjusted as follows:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       18
<PAGE>   25

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
  Description                      Adjustment Criteria
--------------------------------------------------------------------------------

<S>                          <C>
Equipment (other than         Adjustment by application to the price of the
"base station controllers"    [***] every twelve (12) months from the Effective
("BSCs") supplied by          Date or at shorter intervals if applicable Laws so
Supplier)                     permit.

--------------------------------------------------------------------------------
Services                      Adjustment by application to the price of the
                              [***] to be applied to prices every twelve (12)
                              months from the Effective Date or at shorter
                              intervals, if applicable Laws so permit.

--------------------------------------------------------------------------------
</TABLE>

               (d) As long as the Parties have executed the Financing Agreement
on or before the expiration of the Deferral Period, concurrently with the first
drawdown of funds by Mirror under the Financing Agreement, Supplier shall grant
to Mirror credits in the aggregate amount of [***] to be applied by Mirror
toward the purchase price of Equipment and Services hereunder.

         Section 7.4. Price Basis. The prices set forth on Schedule 7.3 for all
Equipment shall be on the basis of Carriage and Insurance Paid to the applicable
Sites, as defined in the ICC Incoterms 1990 [***].

               (a) In the event of any conflict between the terms of this
Agreement and the assignment of responsibilities and liabilities between the
Parties pursuant to Incoterms 1990, the express terms of this Agreement shall
prevail.

         Section 7.5. Invoices or applicable charging documents.

               (a) Supplier shall invoice Mirror for amounts due in accordance
with the schedule set forth in Section 7.6(a).

               (b) Mirror shall have no obligation to pay Supplier for any
charges, unless such charges are expressly authorized by this Agreement or an
Order Document and Mirror has received an invoice for such charges.

               (c) Each invoice issued hereunder shall reference the Order
Document number and identify the payment event, charges and applicable taxes, if
any. Each invoice shall be sent to the billing address identified in the
relevant Order Document. No term or condition of any such invoice inconsistent
with this Agreement shall be binding upon Mirror, unless such term or condition
has been expressly agreed upon by Mirror in compliance with Section 5.1 and
Section 24.11.

               (d) Invoices for all Equipment and Services supplied pursuant to
this Agreement shall be denominated and paid in [***].

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       19
<PAGE>   26

         Section 7.6. Payment Terms.

               (a) Payment Schedule.

                    (i) Mirror shall pay Supplier for Equipment and Services
                    provided hereunder in respect of SSA Purchase Orders for the
                    engineering, furnishing, Installation and Commissioning of
                    the first Cell Sites in any SSA (the "INITIAL BUILD") of
                    each Switch Service Area and for Order Documents other than
                    in respect of the Initial Build of a Switch Service Area or
                    for a System (each an "OTHER PURCHASE") in accordance with
                    the following schedule:

<TABLE>
<CAPTION>
------------------------------------------ -------------------------------- --------------------
             PAYMENT MILESTONE                PERCENTAGE FOR INITIAL BUILD     PERCENTAGE FOR
                                            OF OF SSAS OTHER THAN RIO DE      INITIAL BUILD OF
                                                JANEIRO & BELO HORIZONTE      RIO DE JANEIRO &
                                                 AND FOR OTHER PURCHASES       BELO HORIZONTE
                                                                                    SSAS
========================================== ================================ ====================
<S>                                                <C>                      <C>
Purchase Order accepted by Supplier                       [***]                    [***]
------------------------------------------ -------------------------------- --------------------
Provisional Acceptance                                    [***]                    [***]
------------------------------------------ -------------------------------- --------------------
Commercial Launch                                         [***]                    [***]
------------------------------------------ -------------------------------- --------------------
Final Acceptance                                          [***]                    [***]
------------------------------------------ -------------------------------- --------------------
TOTAL                                                     [***]                    [***]
------------------------------------------ -------------------------------- --------------------
</TABLE>

                     (ii) With respect to an SSA Purchase Order, in the event
                     that Mirror elects to permit Partial Provisional Acceptance
                     or Partial Commercial Launch, the payment otherwise
                     applicable upon Provisional Acceptance or Commercial
                     Launch, as the case may be, in the table set forth at
                     Section 7.6(a)(i) shall be [***].

                     (iii) Mirror shall pay Supplier for training provided by
                     Supplier pursuant to Section 9.3(d) [***] upon the
                     completion of the Course in question or delivery of the
                     training materials, as the case may be.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       20
<PAGE>   27

               (b) Payment Due Date. All payments to be made by Mirror to
Supplier under the terms of this Agreement shall be due and payable within the
thirty (30) days immediately following the date that Supplier delivers the
invoice to Mirror in accordance with this Agreement (except that in the event
the thirtieth day does not fall on a Business Day, then payment shall be due on
the next Business Day following such date), unless a different payment due date
is required in order to accommodate drawing conditions of the Financing Facility
(including conditions relating to required minimum draw amounts).

               (c) Late Payments. In the event that Mirror does not make payment
on invoices within the time prescribed in Section 7.6(b), Mirror shall pay
interest on the outstanding balance of the relevant invoice(s), at a rate of
[***] per annum (the "INTEREST RATE") from the day on which payment was due to
the day on which it is made, plus a [***] late payment fee.

               (d) Modality of Payments. Payments shall be made by check, bank
draft or acceptable electronic transfer of funds to the accounts or in
compliance with instructions that Supplier shall specify on each invoice, or in
accordance with any applicable payment mechanism provided for in the Financing
Facility, or as otherwise mutually agreed by the Parties.

               (e) [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       21
<PAGE>   28
         [***]

         Section 7.7. Calculation of Interest. Interest applicable to any amount
payable hereunder shall be calculated for the actual number of days elapsed on
the basis of a year consisting of three hundred and sixty (360) days.

         Section 7.8. Payment Disputes.

               (a) In the event that Mirror disputes all or part of any invoice,
Mirror shall, on or prior to the date on which the relevant payment would be due
in accordance with Section 7.6(b), deliver to Supplier a statement specifying
the basis for the dispute. Mirror shall pay the undisputed amount of such
invoice pursuant to Section 7.6(b) but may withhold the disputed amount pending
resolution of such dispute.

               (b) If the Parties are able to resolve the dispute within twenty
(20) Business Days of the receipt by Supplier of the notice specified in Section
7.8(a), any amount owing to Supplier or to Mirror shall be reflected as a charge
or a credit, as the case may be, adjusted by the late payment charges set forth
in Section 7.6(c), on the next invoice (unless the dispute is with respect to
amounts set forth on the final invoice, in which case the Party owing any
amounts shall pay such amounts within five (5) Business Days of the resolution
of the dispute).

               (c) If the Parties are unable to resolve the dispute within
twenty (20) Business Days of the receipt by Supplier of the notice specified in
Section 7.8(a), the dispute shall be resolved as provided in Article XXII.

               (d) Within fifteen (15) Business Days of the resolution of a
payment dispute pursuant to Article XXII, (i) Mirror shall pay any amounts
determined to be owing by it, together with interest accrued at the Interest
Rate (calculated pro rata on a daily basis) from the date on which such payment
was due pursuant to Section 7.6(b) until paid in full; and (ii) Supplier shall
refund to Mirror any amounts determined to have been overpaid, if applicable,
together with

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       22
<PAGE>   29

interest accrued at the Interest Rate (calculated pro rata on a daily basis)
from the date that such overpayment was made until repaid in full to Mirror.

         Section 7.9. Financing.

               (a) Supplier shall, subject to the provisions of Sections 3.2 and
3.3, provide vendor debt financing for the Equipment and Services supplied to
Mirror under this Agreement on competitive market terms [***]. Financing will be
provided on the terms set out in the Term Sheet, a copy of which will by
attached hereto as Schedule 7.9(a).

               (b) Notwithstanding anything to the contrary contained in this
Agreement, it shall be a condition precedent to Mirror's obligations to pay any
amounts to Supplier and Supplier's obligation to provide Equipment and Services
under this Agreement that the Parties execute the Financing Agreement on the
terms and conditions set forth in the Term Sheet, unless otherwise agreed by the
Parties.

         Section 7.10. [***]

                                  ARTICLE VIII
             SUPPLY AGREEMENT ADMINISTRATION AND PROJECT MANAGEMENT

         Section 8.1. Project Management.

               (a) Supplier's Project Manager. Supplier shall, during the Term,
appoint a manager for the Project (the "SUPPLIER PROJECT MANAGER") who shall:

                    (i) be fully conversant with the background of the Project;

                    (ii) be empowered and have authority to make day to day
                    decisions regarding the Project, while having full authority
                    over Supplier's Project personnel in Brazil and assets
                    dedicated to the Project;

                    (iii) maintain and update the Time Schedule and deliver the
                    Time Schedule as revised from time to time to the Mirror
                    Project Manager;

                    (iv) ensure compliance with the Time Schedule;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       23
<PAGE>   30

                    (v) maintain the closest possible cooperation with the
                    Mirror Project Manager;

                    (vi) reside in Brazil and be available at Project Sites as
                    reasonably requested; and

                    (vii) be fluent in English and have a working knowledge of
                    Portuguese.

               (b) Mirror Project Manager. Mirror shall, during the Term of this
Agreement, appoint a manager for the Project (the "MIRROR PROJECT MANAGER") to
be the liaison with the Supplier Project Manager, who shall:

                    (i) be fully conversant with the background of the Project;

                    (ii) be empowered and have authority to make day-to-day
                    decisions regarding the Project and its personnel;

                    (iii) ensure compliance with the Time Schedule;

                    (iv) maintain the closest possible cooperation with the
                    Supplier Project Manager;

                    (v) be available at Project Sites as reasonably requested;
                    and

                    (vi) be fluent in English and have a working knowledge of
                    Portuguese.

         Section 8.2. Progress Review Meeting.

               (a) During the term of implementation of the Network, both the
Mirror Project Manager and the Supplier Project Manager shall hold Project
review meetings at such intervals to be agreed upon by the Parties to review,
monitor and control the progress of the implementation of the Network in all its
aspects in conformity with the Specifications and the Time Schedule.

               (b) If Supplier or Mirror, as the case may be, deem it unlikely
that it will be able to fulfill all of its obligations on the respective dates
set out in the Time Schedule, then such Party shall request a meeting to
determine what action is required. Any action that might be determined as a
consequence hereof shall be without prejudice to any right or remedy Mirror or
Supplier may have under this Agreement.

               (c) Minutes of the meetings contemplated by this Section 8.2
shall be kept in English or Portuguese as mutually agreed by the Parties.

         Section 8.3. Agreement Administration by Mirror. The Mirror Project
Manager shall be responsible for administering the Agreement and ensuring the
necessary coordination with other Mirror departments. He shall be responsible
for coordinating the Project implementation between Mirror and Supplier;
reviewing and approving all quotations and invoices, inventory of Equipment
delivered; Time Schedules; issuing Order Documents, monitoring the overall
progress of the

                                       24
<PAGE>   31

Project; coordinating with Supplier to conclude agreement on the Acceptance Test
Procedures as provided in Section 9.3(a); providing Supplier with clarification
on the technical specification requirements and approving and issuing Change
Orders. The Mirror Project Manager's territorial responsibilities shall be for
all areas covered by the Agreement. He may designate, as may be required for
certain periods of time, project managers for specific Switch Service Areas,
regions or Systems and define their administrative, managerial, territorial and
authorization responsibilities, which he will communicate in writing to the
Supplier Project Manager.

         Section 8.4. Supplier Employees. Mirror may, at any time, cause
Supplier to dismiss an employee from the Project if, in Mirror's reasonable
judgment, such employee is not performing in a competent, workmanlike and
professional manner and in accordance with Mirror's policies governing employee
conduct (as identified by Mirror to Supplier in writing) and Prudent Industry
Practices. Within three (3) Business Days of receiving Mirror's request, the
Parties shall meet to discuss the removal of such employee. If Supplier, acting
reasonably, agrees that such employee should be dismissed from the Project, then
Supplier shall so remove such employee within seven (7) Business Days of such
decision. If Supplier does not consent to the removal of such employee, Supplier
agrees to consult with such employee and to monitor such employee's conduct to
ensure compliance with the requirements of this Section 8.4. Any delays or costs
resulting from the replacement of Supplier's employee shall be borne by
Supplier.

                                   ARTICLE IX
                          DIVISION OF RESPONSIBILITIES

         Section 9.1. Joint Responsibilities.

               (a) Responsibility Matrix. Without limiting the generality of any
of the provisions of this Agreement, the respective rights and division of
responsibilities of Mirror and Supplier are set forth in the Responsibility
Matrix attached as Schedule 9.1(a). Mirror shall discharge those
responsibilities identified as those of Mirror, including Mirror's portion of
responsibilities that are to be jointly performed by Mirror and Supplier.
Supplier shall discharge those responsibilities identified as those of Supplier,
including Supplier's portion of responsibilities that are to be jointly
performed by Supplier and Mirror.

               (b) Punchlist. Both Parties will agree on items and issues to be
placed on each Punchlist. Supplier shall in good faith resolve as quickly as
possible the items placed on each Punchlist.

         Section 9.2. Mirror Responsibilities.

               (a) Costs. Mirror shall bear the costs of its own legal fees,
interconnection facilities, telephone and utility charges and other services and
items being supplied by Mirror under this Agreement.

               (b) Engineering Information. Mirror shall:

                                       25
<PAGE>   32

                    (i) Provide to Supplier necessary engineering information
                    reasonably requested by Supplier and in accordance with the
                    Responsibility Matrix and the Time Schedule;

                    (ii) Provide, upon reasonable request, System usage
                    information where Mirror's analysis of System requirements
                    has been requested by Supplier or is otherwise required by a
                    specific provision of this Agreement in order for Supplier
                    to discharge its obligations under this Agreement and where
                    the information requested is reasonably necessary for such
                    purposes.

               (c) O&M. Mirror shall assume responsibility for the lawful and
proper O&M of the Network.

               (d) Export Controls. Where required by the country of origin of
the Equipment, Mirror shall comply with all applicable export Laws with respect
to the requirements of which Supplier has advised Mirror in writing.
Specifically, but without limitation, where the Equipment is subject to export
controls and Supplier has advised Mirror in writing with respect to the
requirements of such export controls, Mirror agrees that it will not resell or
re-export Equipment or technical data in any form without obtaining appropriate
export or re-export licenses from the applicable exporting country government.

               (e) Permits. Mirror shall be responsible for obtaining all
Permits (other than permits specifically required to be obtained by Supplier or
any of its Subcontractors) required for implementation of the Network, including
but not limited to, Site building permits, zoning variances and the like from
appropriate Authorities. Pursuant to the Responsibility Matrix, Supplier shall
provide Mirror with all Permit applications for Permits that Mirror is
responsible to obtain pursuant to this Section 9.2(e) on an accurate and timely
basis to enable Mirror to submit them to the appropriate Authority.

               (f) Other Obligations. Mirror shall perform all of its other
obligations pursuant to this Agreement, including the following:

                    (i) allow Supplier's personnel employed in the work
                    reasonable access to the Sites at all times, and to permit
                    the use by such personnel of all routes, roadways and ramps
                    under the control of Mirror when such access and use are
                    necessary for the proper performance of Supplier's
                    obligations hereunder;

                    (ii) permit all Supplier's personnel employed in the work
                    hereunder to use at all times such portions of existing
                    plants or equipment under Mirror's control as are reasonably
                    necessary for the proper completion of such work, as long as
                    such use will not interfere with Mirror's business
                    operations;

                                       26
<PAGE>   33

                    (iii) take reasonable security measures to safeguard all
                    Equipment on Mirror's premises against all damages or Loss
                    caused by Mirror's employees from the Delivery until the
                    date that the risk of Loss of such Equipment transfers to
                    Mirror pursuant to Section 5.2(a);

                    (iv) ensure that Mirror's personnel carrying out activities
                    at the Sites do not interfere with the progress of
                    Supplier's obligations hereunder;

                    (v) where applicable, take all necessary actions in
                    accordance with the relevant Responsibility Matrix to ensure
                    that the Sites are ready and available for commencement of
                    Installation;

                    (vi) make available a representative to acknowledge receipt
                    of the Equipment;

                    (vii) bear any additional costs, including, without
                    limitation, freight, insurance, storage and taxes, if
                    applicable, relating to a Change Order that requires
                    delivery of Equipment to a Site other than the Site
                    specified in the Order Document to which such Change Order
                    pertains; and

                    (viii) make available, upon request, to Supplier, any
                    information, that Supplier needs to carry out its
                    obligations under this Agreement, provided that Mirror has
                    access to such information.

         Section 9.3. Supplier Responsibilities. Without limiting other
obligations of Supplier under this Agreement, Supplier shall have the following
responsibilities:

               (a) Acceptance Procedure. Supplier shall adhere to the Acceptance
procedures, including the Acceptance Test Procedures, each as set forth in
Schedule 9.3(a).

               (b) Upgrades; New Products or Services. Supplier shall make new
and upgraded Equipment and Services available to Mirror as and when they become
available. Where such new or upgraded Equipment or Services are developed by
Supplier, Supplier shall, subject to Section 14.3, negotiate the price [***]
and delivery schedule in good faith.

               (c) Retrofits. Supplier shall, with Mirror's prior written
consent, provide a retrofit package to permit the Network to comply [***].

               (d) Training. Supplier shall provide training courses for
planning, installation and O&M of Equipment and Services purchased under this
Agreement. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       27
<PAGE>   34
[***]. Course listings, content, schedules and prices are set forth in Schedule
9.3(d).

               (e) Cooperation and Coordination With Other Vendors. Supplier
recognizes that Mirror will be developing the Network using vendors in addition
to Supplier including, without limitation, Northern Telecom Limited and its
Affiliates (collectively, "NORTEL"). Supplier shall, in engineering furnishing
and installing the Infrastructure Equipment and Services for which it is
responsible under this Agreement, cooperate and coordinate its activities with
such other vendors such that such Infrastructure Equipment and Services shall
interface in accordance with the Specifications with the Equipment and Services
supplied by such other vendors. Supplier acknowledges that Nortel will take a
leading role in the coordination and management of the Project in accordance
with the Responsibility Matrix.

               (f) Legal and Safety Standards. Supplier is responsible for
assuring that proper safety measures are taken to avoid accidents and that all
work performed is done in accordance with the relevant health and occupational
safety Laws, whether the work is performed by Supplier or its Subcontractors.
Supplier shall be responsible, at its own expense, for ensuring that all
necessary procedures are in place and supervision is provided to ensure the
safety of all persons who may at any time or for whatever reason be present on
any of the Sites that are under the control of Supplier as part of Supplier's
provision of the Services, including, without limitation, the Installation
Services.

               (g) Site Security. Up to Commercial Launch, Supplier shall use
reasonable efforts to ensure the security of the Sites in a manner consistent
with Mirror's security requirements by providing security Services at the prices
set forth in Schedule 7.3 and shall ensure that entry to such Sites is properly
monitored and only authorized persons are permitted to enter and remain on any
of such Sites. Supplier shall allow Mirror or any person authorized by Mirror to
inspect any Site at any time while Supplier is providing Services on the Site.

               (h) Inspection. Mirror and its employees, agents and
representatives shall at all times have the right to inspect the performance by
Supplier of the design, engineering, construction, Installation, testing and
Acceptance, whether in the process of being prepared or executed. If the work
does not conform to the terms of this Agreement, the Specifications and all
applicable Laws, Mirror shall have the right to order the suspension of such
work; provided that Mirror's exercise of such right shall not be deemed to be an
"exercise by Mirror of any discretionary right under this Agreement" giving rise
to an extension of the Time Schedule under Section 6.1(a).

               (i) Operation and Maintenance Support. Supplier, [***], shall
allocate a total of [***] of support Services by qualified technical personnel
to be used by Mirror to support the Network (including all Switch Service Areas)
during the [***] of operation, commencing on the Soft Launch of the first Switch
Service Area (or, if there is no Soft Launch, on Provisional Acceptance of such
Switch Service Area), with the actual utilization of

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       28
<PAGE>   35

such support resources to be determined by agreement of the Parties. The
personnel [***] to provide such support Services shall include qualified O&M
cell sites and transmission specialists. Such personnel shall be primarily
assigned to work in the Mirror's Network Operations Center. To the extent that
Mirror requests that such personnel work in any location outside of the Switch
Service Area in which Mirror's Network Operations Center is located, Mirror
shall reimburse Supplier for the associated reasonable travel expenses incurred
by such personnel. [***].

               (j) Tools and Test Equipment. Unless otherwise specifically
provided in this Agreement, Supplier shall provide all tools and testing
equipment (the "TOOLS") required for the implementation of the Equipment and
Services being provided under this Agreement. Unless otherwise specifically
provided in this Agreement, Supplier shall provide and pay for all materials,
labor, Tools, Equipment, transportation and other facilities necessary for the
performance and completion of the Project. Supplier shall pay all charges for
any special handling of the Equipment. All Tools used during the implementation
of Equipment and Services being provided that (i) have been purchased and paid
for by Mirror as specified on an Order Document, and (ii) that have been
purchased by Supplier specifically for use in implementing the Project and for
which Supplier has included the full, undepreciated or unamortized cost in the
amounts being charged to Mirror pursuant to this Agreement, shall become the
property of Mirror at the earlier of Commercial Launch or Final Acceptance.

               (k) [***].

               (l) Supplier Responsible for Incorrect Delivery; Excess Items. If
any Equipment is delivered to a point other than the one set forth in an Order
Document, any additional expenses incurred in delivery of such Equipment to the
correct point of delivery and the risk of transportation shall be borne by
Supplier. Supplier is also responsible for items delivered in excess of those
required in the relevant Purchase Order or any excess installation material.

               (m) Acceptance of Sites. Supplier shall use its commercially
reasonable efforts to approve or disapprove of any candidate location for
construction of a Cell Site at the time of the site visit to such location, or
within two (2) Business Day thereafter.

               (n) [***].

         Section 9.4. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       29
<PAGE>   36

                                    ARTICLE X
                      INDEMNIFICATION, DAMAGES, AND DELAYS

         Section 10.1. General Indemnity.

               (a) Supplier shall indemnify, defend and hold harmless Mirror and
its directors, officers, representatives, agents, servants, Subcontractors,
employees, successors and permitted assigns (collectively, "MIRROR INDEMNIFIED
PERSONS") from any and all Losses (including damage to property owned by third
parties) arising out of or in connection with this Agreement to the extent such
damages were caused by the breach of this Agreement by Supplier or the negligent
acts or omissions, willful misconduct or strict liability of Supplier or any
Supplier Representative.

               (b) Mirror shall indemnify, defend and hold harmless Supplier and
its directors, officers, representatives, agents, servants and employees
(collectively, "SUPPLIER INDEMNIFIED PERSONS") from any Losses (including damage
to property owned by third parties) arising out of or in connection with this
Agreement to the extent that such damages were caused by the breach of this
Agreement by Mirror or the negligent acts or omissions, willful misconduct or
strict liability of Mirror or its agents, Subcontractors, officers or employees,
or any Person responsible to Mirror while performing Mirror's obligations under
this Agreement.

         Section 10.2. Personal Injury.

               (a) Supplier shall indemnify, defend and hold harmless the Mirror
Indemnified Persons from any and all Losses on account of death or personal
injury (whether to Mirror Indemnified Persons or to third parties) arising out
of or in connection with this Agreement to the extent that such injury or death
is caused by the negligent acts or omissions, willful misconduct or strict
liability of Supplier or any Supplier Representative.

               (b) Mirror shall indemnify, defend and hold harmless the Supplier
Indemnified Persons from any Losses on account of death or personal injury
(whether to Supplier Indemnified Persons or to third parties) arising out of or
in connection with this Agreement to the extent that such injury or death was
caused by the negligent acts or omissions, willful misconduct or strict
liability of Mirror or its agents, representatives, Subcontractors, officers or
employees, or any Person responsible to Mirror while performing Mirror's
obligations under this Agreement.

         Section 10.3. Claims. In any claim for indemnification brought pursuant
to this Agreement:

               (a) The Person entitled to indemnification (the "INDEMNIFIED
PARTY") shall promptly notify the Person obligated to provide indemnification
(the "INDEMNIFYING PARTY") promptly upon (A) receipt of notice of the
commencement of a claim by a third party for which indemnification is sought
pursuant to this Agreement, (B) becoming aware of a claim (other than one
covered by clause A, hereof) or facts supporting the likelihood of a Loss, in
each case eligible

                                       30
<PAGE>   37

for indemnification pursuant to this Agreement; or (C) the occurrence of any
material event or change with respect to an ongoing claim, in writing.

               (b) In case any such claim is brought against any Indemnified
Party, and it notifies the Indemnifying Party of the commencement thereof, or in
respect of any ongoing action, the Indemnifying Party will be entitled to
participate therein and to assume the defense thereof. Subsequent to such
assumption of defense, the Indemnifying Party shall not be liable to the
Indemnified Party for any legal or other expenses subsequently incurred by the
Indemnified Party other than the reasonable expenses of monitoring such defense,
and shall control the defense of such claim unless the Indemnified Party
reasonably believes there to be a conflict between its interests and those of
the Indemnifying Party, in which case the Indemnified Party may employ its own
counsel for such defense and the reasonable costs of such counsel as well as
other cost reasonably incurred in such defense shall be borne by the
Indemnifying Party. Whether or not the Indemnifying Party shall have assumed the
defense of a claim for which the Indemnified Party is entitled to be
indemnified, the Indemnified Party shall not admit any liability with respect
to, settle, compromise or discharge such claim without the prior written consent
of the Indemnifying Party, which consent shall not unreasonably withheld,
conditioned or delayed.

               (c) The Indemnified Party shall, at the Indemnifying Party's
expense, cooperate and consult with the Indemnifying Party in the defense of
such claim and shall, upon request, provide all reasonable information and
assistance for defense against any such suit, claim or demand.

         Section 10.4. Infringement Indemnity.

               (a) Defense Against Infringement Claims. In any claim, action,
suit or legal arbitration, mediation or other proceedings, Supplier, at
Supplier's expense, shall indemnify, defend and hold harmless Mirror, its
directors, officers, agents, employees, successors and permitted assigns against
any third-party claim that Supplier's Equipment, including Software, and
Services supplied hereunder (collectively, the "INDEMNIFIED EQUIPMENT")
infringes any patent or copyright, trademark, trade secret or other tangible or
intangible property right, whether Brazilian or foreign (collectively,
"PROPRIETARY RIGHTS") by reason of Mirror's use of such Proprietary Rights and
Equipment in furnishing basic telecommunication services in accordance with the
Specifications. Supplier shall reimburse Mirror its actual reasonable costs for
personnel (including legal counsel and experts) and resources engaged in
providing information or assistance requested by Supplier or in defending such
claim, action, suit, legal arbitration, mediation or other proceeding. Supplier
shall indemnify, defend and hold harmless Mirror, its officers, agents,
employees, Subcontractors, successors and permitted assigns against any Losses
on account of such alleged infringement or violation.

               (b) Supplier to Act. If Mirror's use of the Indemnified Equipment
is enjoined, or, in Supplier's reasonable opinion, is likely to be enjoined,
Supplier shall, at its option and expense, either procure the right for Mirror
to continue using such Indemnified Equipment or replace or modify the
Indemnified Equipment so that such Indemnified Equipment becomes non-infringing,
whichever can be accomplished more quickly. If none of the foregoing options is
possible, Supplier will remove the enjoined Indemnified Equipment and refund to
Mirror any amounts paid

                                       31
<PAGE>   38

to Supplier, less a reasonable charge for any actual period of use by Mirror.
Should the Indemnified Equipment so removed be a component of the Network and
such removal causes the Network not to meet the [***] or any other of the
Specifications, then Supplier shall be liable for restoring the Indemnified
Equipment to the [***] or other such Specification and for all Losses caused
to Mirror resulting from such removal.

               (c) Information Supplied by Mirror. Supplier shall have no
liability for any claim of infringement of any Proprietary Rights to the extent
that such claim (i) arises directly and wholly from adherence to Specifications,
designs, drawings or instructions furnished by Mirror; (ii) arises from
adherence to instructions to apply Mirror's trademark, trade name or other
company identification; (iii) resides in non-Supplier Equipment that is
furnished by Mirror to Supplier for use under this Agreement, (iv) relates to
uses of Indemnified Equipment provided by Supplier in combination with other
Indemnified Equipment furnished either by Supplier or other Persons, which
combination was not Installed, recommended or otherwise approved by Supplier,
(v) arises as a result of Mirror's modification of the Indemnified Equipment in
a manner not contemplated by the Specifications without Supplier's prior consent
or (vi) arises as a result of Mirror's use of the Equipment in a manner contrary
to the Specifications.

         Section 10.5. [***].

         Section 10.6. Failure to Meet Time Schedule (Liquidated Damages).

               (a) With respect to Equipment and Services for the Initial Build
of the first and second Switch Service Areas (Rio de Janeiro and Belo
Horizonte):

                    (i) In the event that Commercial Launch with respect to the
                    Initial Build of the first and second Switch Service Areas
                    occurs after the relevant due date set forth in the Time
                    Schedule because of actions directly attributable to
                    Supplier including, without limitation, Supplier's failure
                    to

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       32
<PAGE>   39

                    perform its obligations hereunder in the manner and at the
                    times specified in this Agreement, Supplier shall pay to
                    Mirror Liquidated Damages [***] equal to [***].

                    (ii) In the event that on the relevant due date set forth in
                    the Time Schedule (A) Mirror, at its sole discretion, elects
                    to proceed with Commercial Launch of only a portion of the
                    Equipment and Services comprising the Initial Build of the
                    first and second Switch Service Areas, and (B) the failure
                    of the other portion of the Equipment and Services to be
                    ready for Commercial Launch is due to actions directly
                    attributable to Supplier, including, without limitation,
                    Supplier's failure to perform its obligations hereunder in
                    the manner and at the times specified in this Agreement,
                    Supplier shall pay to Mirror Liquidated Damages [***] equal
                    to [***].

               (b) With respect to Equipment and Services for the Initial Build
of the third and fourth Switch Service Areas (Belem and Manaus):

                    (i) In the event that Commercial Launch with respect to the
                    Initial Build of the third or fourth Switch Service Area
                    occurs after the relevant due date set forth in the Time
                    Schedule because of actions directly attributable to
                    Supplier including, without limitation, Supplier's failure
                    to perform its obligations hereunder in the manner and at
                    the times specified in this Agreement, Supplier shall pay to
                    Mirror liquidated damages [***] equal to [***]

                    (ii) In the event that on the relevant due date set forth in
                    the Time Schedule (A) Mirror, at its sole discretion, elects
                    to proceed with Commercial Launch of only a portion of the
                    Equipment and Services comprising the Initial Build of the
                    third or fourth Switch Service Areas, and (B) the failure of
                    the other portion of the Equipment and Services to be ready
                    for Commercial Launch is due to actions directly
                    attributable to Supplier, including, without limitation,
                    Supplier's failure to perform its obligations hereunder in
                    the manner and at the times specified in this Agreement,
                    Supplier shall pay to Mirror liquidated damages [***] equal
                    to [***].

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       33
<PAGE>   40

               (c) With respect to Equipment and Services for the Initial Build
of the fifth or sixth Switch Service Areas (Sao Luis and Natal):

                    (i) In the event that Commercial Launch with respect to the
                    Initial Build of the fifth or sixth Switch Service Area
                    occurs after the relevant due date set forth in the Time
                    Schedule because of actions directly attributable to
                    Supplier including, without limitation, Supplier's failure
                    to perform its obligations hereunder in the manner and at
                    the times specified in this Agreement, Supplier shall pay to
                    Mirror liquidated damages [***] equal to [***]

                    (ii) In the event that on the relevant due date set forth in
                    the Time Schedule (A) Mirror, at its sole discretion, elects
                    to proceed with Commercial Launch of only a portion of the
                    Equipment and Services comprising the Initial Build of the
                    fifth and sixth Switch Service Areas, and (B) the failure of
                    the other portion of the Equipment and Services to be ready
                    for Commercial Launch is due to actions directly
                    attributable to Supplier, including, without limitation,
                    Supplier's failure to perform its obligations hereunder in
                    the manner and at the times specified in this Agreement,
                    Supplier shall pay to Mirror liquidated damages [***] equal
                    to [***].

               (d) With respect to Equipment and Services other than for the
Initial Build of the first six (6) Switch Service Areas:

                    (i) In the event that Commercial Launch with respect to any
                    Equipment or Services purchased under any Order Document
                    other than for the Initial Build of the first six (6) Switch
                    Service Areas, occurs after the relevant due date set forth
                    in the Time Schedule, because of actions directly
                    attributable to Supplier including, without limitation,
                    Supplier's failure to perform its obligations hereunder in
                    the manner and at the times specified in this Agreement,
                    Supplier shall pay to Mirror liquidated damages [***] equal
                    to [***]

                    (ii) In the event that on the relevant due date set forth in
                    the Time Schedule (A) Mirror, at its sole discretion, elects
                    to proceed with Commercial Launch of only a portion of the
                    Equipment and Services comprising any Order Document other
                    than for the Initial Build of the first

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       34
<PAGE>   41

                    six (6) Switch Service Areas, and (B) the failure of the
                    other portion of the Equipment and Services to be ready for
                    Commercial Launch is due to actions directly attributable to
                    Supplier, including, without limitation, Supplier's failure
                    to perform its obligations hereunder in the manner and at
                    the times specified in this Agreement, Supplier shall pay to
                    Mirror liquidated damages [***] equal to [***].

               (e) At Mirror's option, Supplier may satisfy any and all
liquidated damages due for failure to meet the milestones set forth in the Time
Schedule for Acceptance and/or Commercial Launch in the form of [***].

               (f) The liquidated damages specified in Section 10.6(a) through
(d) (the "LIQUIDATED DAMAGES") shall not be applicable to the extent that
actions or omissions of Mirror were the cause of the delays described in Section
10.6(a) through (d) ("MIRROR DELAYS"). In the event of Mirror Delays, the dates
set forth in the Time Schedule for Supplier's performance shall be adjusted to
reflect such Mirror Delays. The extent of adjustment shall be [***] as agreed
between Mirror and Supplier, and the adjustment shall be based on a review of
the relevant Supplier critical path development and deployment plans (i.e.,
planning, evaluation and review technical/critical path method ("PERT/CPM")
chart). Where additional expenses are incurred by Supplier in making up for a
Mirror Delay, Supplier and Mirror shall agree on equitable adjustment in
Supplier's prices to compensate for such additional expenses.

               (g) The Parties hereby acknowledge and agree that the actual
damages that would be incurred by Mirror in the event of a failure to comply
with the Time Schedule by Supplier would be difficult to calculate and that the
Liquidated Damages provided for in this Agreement are fair and reasonable under
the circumstances.

         Section 10.7. [***].

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       35
<PAGE>   42

                                   ARTICLE XI
                                QUALITY ASSURANCE

         Section 11.1. Quality Assurance.

               (a) Without restricting the generality of the provisions of
Section 9.3 and Article XIII, it is understood and agreed that Supplier has sole
responsibility for the quality of the Equipment and Services supplied or
provided hereunder.

               (b) Supplier shall deliver the Equipment and provide the Services
to Mirror in accordance with the terms and conditions of this Agreement
diligently and by competent and professional personnel.

               (c) Supplier shall maintain a quality program that is adequate to
ensure a consistent level of quality in the Equipment and Services supplied
under this Agreement and to ensure that the Equipment and Services conform to
all applicable Laws, Prudent Industry Practices and the Specifications.

               (d) Provided that Mirror does not unreasonably interfere with
Supplier's performance of its obligations hereunder, Mirror reserves the right
to conduct [***] quality assessments, inspections or tests on the Equipment and
Services in accordance with a sampling plan jointly developed by the Parties,
prior to shipment, at Supplier's premises. If Mirror elects to exercise such
rights, then Supplier shall, prior to shipment, advise Mirror when the Equipment
or Services are available for audit or testing at Supplier's premises. Supplier
shall make space available for Mirror's personnel to carry out the audit or
testing, and provide full cooperation to Mirror's personnel.

               (e) Supplier also agrees to provide to Mirror, upon reasonable
request, quality program data information such as improvement program data,
inspection data, statistical process control information, test results, [***]
results pertaining to the Equipment and Services supplied under the terms of
this Agreement.

               (f) Mirror's quality assurance assessment or inspections shall
not constitute a waiver or renunciation of any rights and remedies granted to
Mirror pursuant to this Agreement and shall not excuse Supplier from compliance
with all provisions of this Agreement.

                                   ARTICLE XII
                              ENVIRONMENTAL POLICY

         Section 12.1. Environment; Environmental Policy. Supplier assures
Mirror that it has a written business policy that addresses environmental
protection and preservation issues and the management and disposal of waste
products. Supplier certifies that this written business policy:

               (a) was implemented prior to the signing of this Agreement,
remains in effect and is required to be followed by all personnel under
Supplier's control;

               (b) was and will be brought to the attention of Supplier's other
representatives and Subcontractors who have been requested to follow such
written business policy;

               (c) states that Supplier will comply with and will cause all
Supplier Representatives to comply with Laws respecting the environment; and

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       36
<PAGE>   43

               (d) is and will be available to Mirror upon request at any time
during the Term.

         Each of the Parties agrees that Supplier must seek to comply with and
minimize liability under environmental Laws at all times during the Term.
Supplier shall indemnify, defend and hold the Mirror Indemnified Persons
harmless from any Losses arising out of or related to a breach by Supplier of
the terms of this Section 12.1.

                                  ARTICLE XIII
                                   WARRANTIES

         Section 13.1. Specifications. The Equipment and Services supplied or
furnished by Supplier under this Agreement shall conform to the Specifications
and shall comply with all applicable Laws and Prudent Industry Practices.

         Section 13.2. Hardware Warranty. Notwithstanding the Acceptance of any
Equipment, Supplier warrants to Mirror that:

               (a) All the Hardware supplied by Supplier under this Agreement
shall be new and unused (except for testing required pursuant to this
Agreement).

(b) For the period of [***] commencing on the earlier of Final Acceptance or
Commercial Launch of the portion of the Network containing such Hardware (the
"HARDWARE WARRANTY PERIOD"), all of the Hardware supplied by Supplier hereunder
shall be free from defects in design, material and workmanship, and will conform
to the Specifications, all Permits and applicable Law (the "HARDWARE WARRANTY").
The warranty period for any Equipment or part thereof repaired or provided as a
replacement under this Hardware Warranty is [***] or the unexpired term of the
Hardware Warranty Period applicable to the repaired or replaced Equipment or
part, whichever is longer.

               (c) OEM Equipment.

                    (i) Other than as provided in Section 13.2(c)(ii), with
                    respect to OEM Equipment, Supplier hereby assigns to Mirror
                    the warranties given to Supplier by its vendor of such OEM
                    Equipment, and such warranties will remain in force for a
                    term of at least [***] from the earlier of Final Acceptance
                    or Commercial Launch. [***].

                    (ii) Supplier shall use its reasonable best efforts to
                    negotiate to assign the warranties contemplated in this
                    Section 13.2(c).

         Section 13.3. Application Procedures for Hardware Warranty. If, under
proper use during the applicable Hardware Warranty Period, a defect or
nonconformity is identified in any Hardware supplied by Supplier, Mirror shall
notify Supplier in writing of such defect or

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       37
<PAGE>   44

nonconformity promptly after Mirror discovers such defect or nonconformity and
proceed as described in the Warranty Procedures, as set forth in Schedule 13.3.
Upon receipt of notification from Mirror of such defect or nonconformity during
the Hardware Warranty Period, Supplier shall take the following actions:

               (a) Supplier shall repair or replace such Hardware pursuant to
the terms and conditions set forth in Schedule 13.3

               (b) Where Supplier has elected to repair or replace Hardware that
has been installed by Supplier and Mirror can not, without undue expense, return
the Hardware to Supplier, Supplier will promptly repair or replace the Hardware
at Mirror's Site.

               (c) If Supplier has elected to repair or replace a defective
circuit board or plug-in component (i.e. a circuit board or similar electronic
component that is designed such that, in a rack or assembly of electronic
equipment, it may be manually replaced by pulling it from its socket connector
and replacing it with a like component for the purposes of maintenance or repair
without changing the functionality and/or performance of the overall electronic
equipment) (a "PLUG-IN"), Mirror is responsible for removing and reinstalling
it. For any Hardware other than Plug-Ins, Supplier shall be responsible for
removal and reinstallation of the Hardware.

               (d) Equipment returned for repair or replacement will be accepted
by Supplier only in accordance with its instructions and procedures for such
returns. The transportation expense associated with returning such Hardware to
Supplier shall be borne by Supplier. Supplier shall pay the costs of
transportation of the repaired or replaced Equipment to the destination
designated by Mirror within the Territory. The reinstallation of the repaired or
replacement part, subassembly or unit (other than a Plug-In) shall be performed
by Supplier under the supervision of Mirror. Mirror shall notify Supplier of
each defect discovered in the Equipment within a reasonable period of time from
discovery of such defect. Mirror shall, upon Supplier's reasonable request,
provide any additional information concerning such defect and its occurrence.

               (e) To the extent Supplier makes generally available to its
customers a warranty extension program for Equipment, Mirror has the option to
participate in such program [***]. Mirror shall give Supplier notice of its
decision to purchase any available extension at least ninety (90) days prior to
the expiration of the warranty to be extended.

         Section 13.4. Software Warranty. Notwithstanding Acceptance of any of
the Supplier Equipment, Supplier warrants to Mirror (the "SOFTWARE WARRANTY")
that:

               (a) from the Provisional Acceptance thereof, each item of
Software will be free from defects that materially affect the use of such
Software and will perform in accordance with the Specifications therefor for a
period ending [***] from the earlier of Final Acceptance or Commercial Launch
(the "SOFTWARE WARRANTY PERIOD");

               (b) with respect to Software from a supplier other than Supplier,
Supplier hereby assigns to Mirror the warranties given to Supplier by its
supplier of such items and such warranties

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       38
<PAGE>   45
will remain in effect for a term of at least [***] from the earlier of Final
Acceptance or Commercial Launch. [***].

               (c) Subject to the provisions set forth in Section 13.3(b),
Supplier will repair or replace, whichever can be done most promptly and with
the least disruption to Mirror's business, all Software that does not satisfy
the requirements of the Software Warranty during the Software Warranty Period.

         Section 13.5. Year 2000 Warranty.

               (a) As part of the Hardware Warranty and the Software Warranty,
Supplier represents, warrants and covenants to Mirror that all Equipment
provided by Supplier to Mirror hereunder, including without limitation, any and
all enhancements, upgrades, customizations, modifications, maintenance releases
and the like delivered by or on behalf of Supplier, is "Year 2000 Compliant", as
defined herein. "YEAR 2000 COMPLIANT" means that any function of such Equipment
containing or calling on a calendar function, including, without limitation, any
function indexed to the CPU clock, and any function providing specific dates or
days, or calculating spans of dates or days, shall record, store, process,
provide and, where appropriate, insert, true and accurate dates and calculations
for dates and spans prior to, including and following January 1, 2000 and shall
correctly recognize and process the date of February 29, and any related data,
during leap years. Without limiting the generality of the foregoing, Supplier
further represents, warrants and covenants:

                    (i) That such Equipment will continue to perform in
                    compliance with all Specifications applicable thereto,
                    without the need for manual intervention, prior to, on, and
                    after January 1, 2000;

                    (ii) That such Equipment will not abnormally end or abort or
                    provide invalid or incorrect results as a result of date
                    data, specifically including date data that represents or
                    references different centuries or more than one century; and

                    (iii) That such Equipment has been designed to ensure Year
                    2000 Compliance, including, but not limited to, date data
                    century recognition, calculations that accommodate same
                    century and multi-century formulas and date values, and date
                    data interface values that reflect the century.

               (b) Notwithstanding the foregoing, the year 2000 warranty
provided in this Section 13.5 shall not apply to the extent that the failure of
any such Equipment to be Year 2000 Compliant was caused by:

                    (i) the failure of Equipment supplied by any person other
                    than Supplier and its Subcontractors properly to exchange
                    date data with Equipment supplied by Supplier;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       39
<PAGE>   46

                    (ii) Mirror's failure to use such Equipment in accordance
                    with the Documentation and other reasonable instructions
                    provided by Supplier; and

                    (iii) Mirror's failure to install Software Patches supplied
                    by the Supplier that are intended to render such Equipment
                    Year 2000 Compliant.

               (c) Supplier will, at its sole expense and without charge to
Mirror, repair or replace, whichever can be done most promptly and with the
least disruption to Mirror's business, all Equipment that does not satisfy the
requirements of the warranty specified in this Section 13.4 during the period
ending on the date specified in Section 13.4(d).

               (d) Notwithstanding anything in this Agreement or any schedule
hereto to the contrary, the warranty made in this Section shall extend until
June 30, 2001.

               (e) The warranty contained in this Section 13.4 is the only
warranty granted by Supplier to Mirror regarding Year 2000 Compliance. Nothing
contained in this Section 13.4 shall be construed to limit any rights or
remedies Mirror may otherwise have under the other warranties undertaken by
Supplier under this Agreement.

               (f) Any provisions of this Agreement or any Schedule hereto that
tend to limit or eliminate the liability of either party shall have no
application with respect to the representation, warranty and covenant set forth
in this Section 13.4(d).

         Section 13.6. Warranty for Services. The Services furnished by Supplier
under this Agreement shall conform to the Specifications and shall comply with
all applicable Laws and Prudent Industry Practice. Supplier warrants to Mirror
that all Services will be performed in a careful, workmanlike and professional
manner and in accordance with the Specifications or any mutually agreed
specification for such Services, using material free from defects except where
such material is provided by Mirror. If the Services prove to be not so
performed and if Mirror so notifies Supplier within the [***] Supplier, at its
option and expense, will promptly correct any defects and deficiencies for which
it is responsible. If Supplier is unable to correct such defects and
deficiencies, it shall promptly render to Mirror [***].

         Section 13.7. No Trouble Found. If Supplier reasonably determines that
Equipment for which the warranty Services are claimed is not defective or
non-conforming, Mirror shall pay Supplier's reasonably incurred costs of
handling, inspecting, testing, and transporting such Equipment, and, if
applicable, reasonable travel and related expenses. However, if upon return to
service the item fails to operate properly, Mirror and Supplier shall jointly
work to determine the cause of such failure and, if it is determined that the
failure in fact was the result of a warranted defect or nonconformity in such
item, Mirror's obligation to pay such costs shall be extinguished, Mirror shall
be reimbursed by Supplier for any costs that Mirror paid to Supplier and
Supplier's obligations under the Hardware Warranty and/or the Software Warranty,
as the case may be, shall apply.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       40
<PAGE>   47

         Section 13.8. [***].

         Section 13.9. Support Services Program. Supplier shall provide to
Mirror Emergency Technical Assistant Services ("ETAS") and Technical Assistant
Services ("TAS") support for the Equipment on the terms and conditions set out
in Schedule 13.9.

         Section 13.10. [***].

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       41
<PAGE>   48
[***].

         Section 13.11. [***].

         Section 13.12. Equipment Changes or Substitutions by Supplier. At any
time during its performance of this Agreement, Supplier may implement changes in
the Equipment identified in Schedule 13.1, modify the drawings and
Specifications relating thereto, or substitute Equipment of a similar or more
recent design. Supplier shall provide Mirror with advance written notice of any
change, modification or substitution including notice of Supplier's intention to
change the Equipment price. The notice shall be given at least thirty (30) days
in advance of the effective date of the change, modification or substitution.
However, notice of ten (10) days will be necessary where the Parties reasonably
consider the change as minor, where there is no such price change and where
items (a) through (g) set forth below are complied with. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       42
<PAGE>   49
[***].

If each of the foregoing requirements has been met to Mirror's satisfaction,
Mirror and Supplier shall agree upon a Change Order in accordance with the Order
Procedures. With respect to changes, modifications, and substitutions that do
not conform to the foregoing requirements, Supplier shall notify Mirror in
writing thirty (30) days prior to their effective dates. In the event that any
such change is not desired by Mirror, Mirror shall notify Supplier within thirty
(30) days from the date of notice and Supplier shall not furnish any such
changed Equipment to Mirror on any orders in process at the time Supplier is so
notified. If a change is acceptable to Mirror, such change shall be reflected in
a Change Order.

         Section 13.13. Network Expansion and Spares (Continuity of Supply).

               (a) Class A and AC Hardware Changes.

                    (i) Supplier shall provide Class A Hardware Changes with
                    respect to Equipment that it supplies under this Agreement
                    [***] to Mirror during the reasonable useful life of such
                    Equipment.

                    (ii) Supplier shall provide Class AC Hardware Changes in
                    connection with existing Equipment that it supplied under
                    this Agreement [***] to Mirror during the Warranty Period
                    applicable to any new Equipment (including, without
                    limitation, new features or options), and provided that the
                    installation of such new Equipment gave rise to the need for
                    such Class AC Hardware Change.

               (b) Network Expansion Availability. For a period of [***] from
the expiration of the Term, Supplier shall make available to Mirror standard
Supplier Equipment that is compatible with, functionally equivalent to, and will
permit normal expansion of, the Network within the parameters defined by the
Specifications and under terms and conditions [***] mutually agreed to by Mirror
and Supplier. If Supplier discontinues the supply of compatible standard
Equipment during such period of time, then Supplier shall make available to
Mirror a commercially reasonable program for migration to Supplier's
then-current Equipment offering similar functionality.

               (c) Discontinued Items. Nothing herein shall bar Supplier from
discontinuing individual items of Equipment. Supplier shall notify Mirror at
least [***] before Supplier

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       43
<PAGE>   50

discontinues accepting orders for an item of Supplier's Equipment sold under
this Agreement provided, however, that if Supplier offers Equipment for sale
that is equivalent in form, fit and function to the discontinued Equipment, the
notification period may be shorter than [***] but in no event shorter than
[***].

               (d) Spare Parts Availability. Supplier warrants the availability
of spare parts or their functional equivalent for the Equipment for a period of
[***] from the expiration of the Term. [***] Should Supplier during the
aforementioned period discontinue production of any spare parts, Supplier will
give Mirror advance written notice and will assist Mirror to find suitable
replacements, to enable Mirror to place orders for its requirements of spare
parts or to enter into any other mutually satisfactory arrangements with
Supplier prior to discontinuance of production of such spare parts.

               (e) Retrofits. In the event that the addition of any new
Equipment to the Network renders any existing Equipment that was supplied by
Supplier inoperable or unable to operate in accordance with the Specifications
and the provisions of Section 13.13(a) do not apply, Supplier will, at the
request of Mirror and at a reasonable price that is mutually agreeable to the
Parties, modify such existing Equipment such that it operates in accordance with
the Specifications.

         Section 13.14. Disclaimer of Warranties. For all warranties and
guarantees set forth in this Article XIII, Mirror hereby agrees that Supplier
shall not be liable or responsible for any deficiencies to the extent that they
result from:

               (a) Supplier's reliance on erroneous material information
furnished by Mirror to Supplier;

               (b) reasons of Force Majeure;

               (c) unauthorized material changes, modifications or revisions
made by Mirror to the Equipment;

               (d) any failure to meet the [***] materially attributable to
Mirror, including, without limitation: (i) Mirror's failure to apply Supplier's
explicit plans or instructions for System design, preventative and remedial
maintenance, frequency management, parameter adjustments and Cell Site traffic
engineering for radio capacity; (ii) Mirror's failure to implement all
Supplier-recommended recovery and System stabilization procedures; (iii)
Mirror's failure to replace defective circuit packs; (iv) Mirror's failure to
follow applicable written instructions of Supplier, where such instructions are
capable of reasonable interpretation and are unambiguous; or (v) Mirror's
decision not to implement Software patches provided by Supplier promptly upon
their availability where such Software patches are made available by Supplier to
Mirror free of charge;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       44
<PAGE>   51

               (e) modification, misuse, neglect or abuse of the Equipment,
except when made, done or caused by Supplier; improper wiring, repairing,
splicing, alteration, installation, storage or maintenance, except when made,
done or caused by Supplier or its agents, or any Supplier Representative; use in
a manner not in accordance with Supplier's written specifications, operating
instructions or Software licenses or failure of Mirror to apply previously
applicable Supplier modifications and corrections where Mirror received written
instructions to do so;

               (f) defects in Equipment neither manufactured nor supplied by
Supplier under the terms of this Agreement; and

               (g) In addition, Supplier makes no warranty with respect to
Supplier Equipment that has had any serial numbers or month and year of
manufacture that were marked on such Equipment as of the date of Provisional
Acceptance thereof removed, obliterated or altered, and with respect to
expendable items, including, without limitation, fuses, light bulbs, motor
brushes and the like.

         Section 13.15. No Other Warranties. Other than as set forth in this
Article XIII, Supplier makes no other warranties, express or implied, on
Equipment or Services.

                                   ARTICLE XIV
                                    SOFTWARE

         Section 14.1. Software. Supplier reserves title to the Software
supplied by Supplier and hereby grants to Mirror a [***] right to use license
for the Software in accordance with the terms and conditions set out herein (the
"SOFTWARE LICENSE") and the price set forth in Schedule 7.3. Included in this
initial load will be the most recent release generally available ("GA")
including, but not limited to, the license, the initial Software base load, the
embedded Software license, the base Software features and all optional Software
features purchased by Mirror that are available on the date that is ninety (90)
days prior to the date programmed for Commercial Launch in the Time Schedule.
The features for the initial base load are set out in Schedule 14.1. Mirror may
assign such license to an Affiliate without requiring Supplier's permission or
to any third-Person with Supplier's prior written consent, which consent shall
not unreasonably be withheld, delayed or conditioned.

         Section 14.2. Software Patches. Supplier shall provide, at no cost to
Mirror, any Software Patch as such Software Patches become available. Supplier
shall grant Mirror a right to use license for any Software Patch on the same
terms and conditions as specified in Section 14.1.

         Section 14.3. Software Upgrades. Software upgrades approved by Supplier
for commercial release will be provided [***]. The cost of installing such
upgrades shall be for the account of Mirror. Optional features included in
upgrades and new Software releases shall be provided to Mirror at a price to be
agreed upon by the Parties [***].

         Section 14.4. Restrictions on Use.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       45
<PAGE>   52

               (a) All use and copying of the Software not expressly permitted
by this Agreement is prohibited.

               (b) Mirror may:

                    (i) make up to [***] copies of the Software solely for
                    archival or back-up purposes; provided, that when making
                    such permitted copies, Mirror shall ensure that such copies
                    contain any copyright notice or other proprietary legend in
                    the same form and location as appearing on the original copy
                    of such Software, or in such other form and location
                    specified in writing from time to time by Supplier. In
                    addition, Mirror shall not remove any marking indicating
                    proprietary rights from the Software.

                    (ii) use the Software only at the Sites or such other
                    locations approved in writing by Supplier; provided that
                    Mirror retains a record of the number and location of all
                    originals and copies of the Software.

               (c) Mirror may not alter, modify, adapt or translate any of the
Software or create any derivative work based thereon. Mirror may not (and shall
not permit any third party to) reverse engineer, decompile, disassemble, or
otherwise attempt to derive the human-readable source code for the Software.

         Section 14.5. Backward Compatibility. Supplier shall cause each
Software revision level, during the Software Warranty Period or such longer
period not to exceed [***] as Mirror continuously maintains and pays for
Software maintenance in accordance with this Agreement, to be backwards
compatible with existing Software and the immediately preceding Software Patches
made available to Mirror by Supplier.

                                   ARTICLE XV
                                  DOCUMENTATION

         Section 15.1. Documentation to be Provided by Supplier.

               (a) Supplier shall provide its standard Documentation package (as
described in Schedule 15.1) [***] to Mirror and as reasonably required for
Mirror's personnel who are involved in the planning, Commissioning, Acceptance,
Installation, O&M, supervision, and administration of the Network or any System.

               (b) Supplier shall provide [***] one additional full set
of Documentation to Mirror upon request.

               (c) Supplier shall make the Documentation available on CD-ROM or
as mutually agreed by the Parties. Documentation provided via Supplier's CD-ROM
media may be printed and copied by Mirror to the extent necessary for the O&M of
the Equipment to which the Documentation pertains. However, Mirror may not press
any copies of CD-ROM discs.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       46
<PAGE>   53

               (d) Supplier shall provide, [***] to Mirror, a copy of its
Documentation in both English and Portuguese (other than materials supplied on
CD-ROM, which shall only be in English). During the applicable Warranty Period
set forth herein, Supplier shall provide, also at no charge to Mirror, updates
for such Documentation. Supplier shall amend or replace the Documentation to
reflect any design change.

         Section 15.2. License to Documentation. Subject to section 15.1, Mirror
is hereby granted a royalty-free, [***] and non-exclusive license and
right to reproduce (for Mirror's own use), translate, and use the Documentation
provided by Supplier and have it used by its Subcontractors, for purposes
relating to the Project. If Mirror translates the Documentation, Supplier shall
not be liable for any errors or omissions in such Documentation arising out of
the modification or translation. [***]

         Section 15.3. Proprietary Information. All plans, drawings, designs and
specifications submitted by Mirror or on its behalf, are Confidential
Information to be protected in accordance with Article XX herein, shall remain
the property of Mirror, may be copied only in accordance with Article XX herein
and may not be disclosed to third parties by Supplier without Mirror's prior
written consent, except as provided in Article XX. These materials shall be
returned to Mirror promptly upon its request without any copy remaining with
Supplier.

         Section 15.4. Documents to Become Property of Mirror. Documentation,
including, without limitation, plans, drawings, designs, and specifications
supplied by Supplier in connection with the Equipment shall become the property
of Mirror, provided, however, that title to Supplier's intellectual property
rights shall not be conveyed to Mirror at any time. In addition, such
Documentation supplied by Supplier is Confidential Information to be protected
by Mirror in accordance with Article XX. Mirror shall have full rights to use
the Documentation supplied by Supplier in the course of the normal O&M of the
Network.

         Section 15.5. Responsibility for Documents.

               (a) Each Party supplying technical data or documents shall be
responsible for the completeness and accuracy of such technical data or
documents in accordance with this Agreement. If such technical data or documents
are not complete or are inaccurate, each Party shall notify the responsible
Party and thereafter such responsible Party shall promptly complete and/or
correct such technical data or documents.

               (b) Supplier shall make available upon reasonable notice, during
normal business hours to authorized representatives of Mirror all backup
technical documents relating to the Project.

                                   ARTICLE XVI
                      FORCE MAJEURE AND ACTS OF PROVIDENCE

         Section 16.1. Force Majeure. "FORCE MAJEURE" shall comprise any human
event or a combination of human events that neither of the Parties could
control, foresee or prevent, and

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       47
<PAGE>   54

whose occurrence neither of them, their respective agents, employees or
Subcontractors acting under its direction, contributed to, which events cause a
Party or the Parties to default or delay in performing their obligations under
this Agreement. Such Force Majeure events shall include, without limitation, the
following:

               (a) acts of a public enemy, war or threat of imminent war
(declared or undeclared), revolution, riot, rebellion, insurrection, military or
usurped power, state of siege, declaration of a state of emergency or martial
law, civil commotion, act of terrorism or sabotage, embargo or blockade,
declaration of public calamity;

               (b) politically motivated or otherwise widespread strikes,
suspensions, interruptions, work slow-downs or other labor disruptions;

               (c) explosions, chemical or radioactive contamination or ionizing
radiation;

               (d) air crashes, objects falling from aircraft, pressure waves
caused by aircraft or aerial devices traveling at supersonic speed;

               (e) the expropriation, confiscation, compulsory acquisition,
nationalization or seizure of all or any part of Supplier's or Mirror's assets
or capital stock by any Government or any Authority; or

               (f) any exercise of sovereign or executive prerogative or similar
action by an Authority.

         Section 16.2. Acts of Providence. "ACTS OF PROVIDENCE" shall comprise
any natural phenomena that neither of the Parties could control, foresee or
prevent and whose occurrence none of them, their respective agents, employees or
Subcontractors acting under its direction contributed to, which events cause a
Party or Parties to default or delay in performing its or their obligations
under this Agreement for a period longer than fifteen (15) days. Such Acts of
Providence include, without limitation, epidemics, meteorites, fire, lightning,
earthquake, cyclone, whirlwind, hurricane, earthquake, tempest, unusually severe
storm, drought, flood (other than reasonably foreseeable seasonal flooding) or
other unusual or extreme adverse weather or environmental condition or action of
the elements.

         Section 16.3. Exclusions. None of the following events shall be
considered events of Force Majeure or Acts of Providence:

               (a) lack of funds;

               (b) inconvertibility of currency; or

               (c) unavailability, late delivery, or changes in cost of
Equipment, materials or spare parts for the Project.

         Section 16.4. Procedure for Calling Force Majeure or Acts of
Providence.

                                       48
<PAGE>   55

               (a) If one Party wishes to claim relief from the performance of
its obligations on account of any event or circumstance of Force Majeure or an
Act of Providence (hereinafter, the "AFFECTED PARTY"), then the Affected Party
shall give notice to the other Party of such event or circumstance as soon as
reasonably practicable after becoming aware of such event or circumstance.

               (b) Each notice served by an Affected Party to the other Party
pursuant to this Section 16.4 shall specify the event or circumstance of Force
Majeure or Act of Providence in respect of which the Affected Party is claiming
relief. Noncompliance with the procedure specified herein shall relieve the
other Party from accepting the Affected Party's claim until notice is so
provided. The Affected Party shall, by reason of any event or circumstance of
Force Majeure or Act of Providence in respect of which it has claimed relief
under this Section 16.4:

                    (i)   use its commercially reasonable efforts to mitigate
                          the effects of such Force Majeure or Act of Providence
                          and to remedy any inability to perform its obligations
                          hereunder due to such events as promptly as reasonably
                          practicable; provided that: (A) the Affected Party
                          shall not be obliged to take any steps that would not
                          be in accordance with Prudent Industry Practice or
                          would be beyond its control; and (B) the Affected
                          Party shall not be required to settle any strikes or
                          other labor dispute on terms that are adverse to the
                          Affected Party and not commercially reasonable;

                    (ii)  furnish timely periodic reports to the other Party
                          regarding the progress in overcoming the adverse
                          effects of such event of Force Majeure or Act of
                          Providence;

                    (iii) make available to the other Party reasonable
                          facilities for obtaining further information about the
                          event or circumstance of Force Majeure or Act of
                          Providence; and

                    (iv)  resume the performance of its obligations under this
                          Agreement immediately after the events of Force
                          Majeure or Acts of Providence are remedied or cease to
                          exist or are deemed to have ended under the following
                          paragraph.

When the Affected Party is able, or would have been able if it had complied with
its obligations under this Section 16.4, to resume the performance of all of its
obligations under this Agreement affected by the occurrence of an event or
circumstance of Force Majeure or Act of Providence, then the period of Force
Majeure or Act of Providence relating to such event or circumstance shall be
deemed to have ended.

         Section 16.5. Effects of Force Majeure or Acts of Providence.

               (a) An Affected Party shall be relieved from any liability for
delays in performance or the non-performance of its obligations under this
Agreement or, in the case of

                                       49
<PAGE>   56

Supplier, for failure to manufacture or deliver Equipment or Services where and
to the extent that such non-performance is attributable to the event of Force
Majeure or Act of Providence. If an event of Force Majeure or an Act of
Providence causes a delay in a Party's performance of its obligations under this
Agreement, such Party shall use reasonable efforts to resolve such delay and
complete such performance in accordance with the Time Schedule. The Parties
shall use their reasonable commercial efforts to revise such Time Schedule to
reflect the actual impact on the construction and operational schedules of the
event of Force Majeure or Act of Providence.

               (b) If any Force Majeure or Act of Providence occurs and results
in a delay or failure in performance, the non-Affected Party may elect to: (i)
terminate that part of any Order Document affected by the Force Majeure or Act
of Providence as to Equipment not already shipped or Services not already
rendered if the Force Majeure or Act of Providence continues for a period of
forty five (45) days after notifications; (ii) suspend that part of any Order
Document affected by the Force Majeure or Act of Providence for the duration of
the Force Majeure or Act of Providence, buy, sell, obtain, or furnish elsewhere
Equipment to be bought, sold, obtained, or furnished hereunder, and deduct from
any Order Document commitment the quantity bought, sold, obtained, or furnished
or for which such commitment has been made elsewhere; or (iii) resume
performance of such Order Document once the Force Majeure or Act of Providence
ceases with an option for the non-Affected Party to extend the delivery or
performance date up to the length of time the Force Majeure or Act of Providence
endured along with reasonable remobilization time. Unless written notice is
given within thirty (30) days after such non-Affected Party is provided written
notice of the occurrence of a Force Majeure or Act of Providence, option (iii)
shall be deemed selected. Nothing contained herein or elsewhere shall impose any
obligation on either Party to settle any labor difficulty.

                                  ARTICLE XVII
                         REPRESENTATIONS AND WARRANTIES

         Section 17.1. Representations and Warranties of Supplier. Supplier
represents and warrants that:

               (a) the persons executing this Agreement, and those identified in
Schedule 17.1(a) who are initialing the Schedules on its behalf, have express
authority to do so under specific or standing delegation and, in so doing, to
bind Supplier thereto;

               (b) it is duly organized, validly existing and in good standing,
if applicable, under the laws of its jurisdiction of establishment, with full
power and authority, as the case may be, to own, lease and operate the assets
held or used by it to conduct its business as currently conducted. It has the
power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions provided for hereby have been duly authorized
by its governing body, and no other proceeding on the part of such Party is
necessary to authorize the execution or delivery of this Agreement or the
consummation of any of the transactions contemplated hereby. This Agreement has
been duly executed and delivered by Supplier and constitutes a legal, valid and
binding obligation of such Party, enforceable against it in accordance with the
terms set forth herein; and

                                       50
<PAGE>   57

               (c) each of (i) the execution and delivery of this Agreement by
such Party and (ii) the consummation of the transactions provided for hereby
does not and will not (i) conflict with or violate any provision of the
Certificate of Incorporation, Memorandum of Association, Articles of
Association, Bylaws, Estatutos Sociais or any other document of governance of
such Party, (ii) violate, conflict with or result in the breach or termination
of, or otherwise give any other Person the right to accelerate, renegotiate or
terminate or receive any payment, or constitute a default, event of default or
an event that, with notice, lapse of time, or both, would constitute a default
or event of default, under the terms of any material contract to which such
Party is a party or is bound, (iii) result in the creation of any material
pledges upon any of their respective properties, or (iv) constitute a violation
by any such Party of any applicable Law.

         Section 17.2. Representations and Warranties of Mirror. Mirror
represents and warrants that:

               (a) the persons executing this Agreement, and those identified in
Schedule 17.1(a) who are initialing the Schedules on its behalf, have express
authority to do so under specific or standing delegation, and in so doing, to
bind Mirror thereto;

               (b) it is duly organized, validly existing and in good standing,
if applicable, under the laws of its jurisdiction of establishment, with full
power and authority, as the case may be, to own, lease and operate the assets
held or used by it to conduct its business as currently conducted. It has the
power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions provided for hereby have been duly authorized
by its governing body, and no other proceeding on the part of such Party is
necessary to authorize the execution or delivery of this Agreement or the
consummation of any of the transactions contemplated hereby. This Agreement has
been duly executed and delivered by Mirror and constitutes a legal, valid and
binding obligation of such Party, enforceable against it in accordance with the
terms set forth herein; and

               (c) each of (i) the execution and delivery of this Agreement and
(ii) the consummation of the transactions provided for hereby does not and will
not (i) conflict with or violate any provision of the Certificate of
Incorporation, Memorandum of Association, Articles of Association, Bylaws,
Estatutos Sociais or any other document of governance of Mirror, (ii) violate,
conflict with or result in the breach or termination of, or otherwise give any
other Person the right to accelerate, renegotiate or terminate or receive any
payment, or constitute a default, event of default or an event that, with
notice, lapse of time, or both, would constitute a default or event of default,
under the terms of any material contract to which Mirror is a party or is bound,
(iii) result in the creation of any material pledges upon its properties, or
(iv) constitute a violation by Mirror of any applicable Law.

                                       51
<PAGE>   58

                                  ARTICLE XVIII
                                    INSURANCE

         Section 18.1.     Insurance.

               (a) Supplier agrees to maintain, so long as it supplies
Equipment, performs Installation or other Services for any Equipment or has
obligations regarding warranties under Article XIII, the following insurance
coverage as well as all other insurance required by Law in the jurisdiction
where the work is performed:

                    (i) Worker's Compensation. Supplier shall at all times
                    during the Term provide workers' compensation and related
                    insurance as required by Law;

                    (ii) General Liability. Supplier shall at all times during
                    the Term maintain policies of insurance with a reliable
                    insurance company for comprehensive general liability with a
                    limit of not less than [***] inclusive per occurrence for
                    personal injury, bodily injury, death, automotive liability,
                    third-party liability and property damage. Supplier shall
                    include Mirror as an additional insured and a stated
                    beneficiary on all such policies.

                    (iii) Self-Insurance. Supplier shall have the option where
                    permitted by Law to self-insure any or all of the foregoing
                    insurance.

                    (iv) Demonstration of Insurance. Within thirty (30) days
                    following the Effective Date and thereafter upon request by
                    Mirror, Supplier shall provide to Mirror proof that it
                    maintains the insurance coverage as required above.

                                   ARTICLE XIX
                             LIMITATION ON LIABILITY

         Section 19.1. Limitation of Liability.

               (a) Scope of Liability. Mirror's exclusive remedies and the
entire liability of Supplier and its Affiliates and their employees and agents
for any claim, Loss, damage or expense of Mirror or any other entity arising out
of the transactions or actions contemplated by this Agreement, or the use or
performance of the Network or any Equipment, System or Service, whether in
action for or arising out of the breach of contact, tort, including negligence,
indemnity, or strict liability shall be as follows:

                    (i) For delay, Liquidated Damages and penalties - the
                    remedies set forth in the relevant section of Article X;

                    (ii) For the inadequate performance or non-performance of
                    Equipment or Services or claims that they do not conform to
                    a warranty - the remedies set forth in the applicable
                    Section of Article XIII;

                    (iii) For tangible property damage and personal injury
                    caused by Supplier's negligence or willful misconduct - the
                    amount of direct damages;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       52
<PAGE>   59

                    (iv) For everything other than as set forth above - the
                    amount of the direct damages not to exceed the purchase
                    price of the Equipment and Services giving rise to Mirror's
                    claim, including any reasonable attorneys fees and costs
                    awarded to Mirror;

                    (v) Notwithstanding any other provision of this Agreement,
                    including without limitation the definition of Loss set
                    forth in Section 1.1, in no event (whether in contract or in
                    tort, including breach of warranty, negligence or strict
                    liability) shall a Party, its Affiliates or its employees
                    and agents be liable for any consequential, indirect, moral
                    or exemplary damages incurred by the other Party of any
                    nature whatsoever, including loss of profits or revenues,
                    anticipated savings, loss of data or associated equipment,
                    cost of capital or any other indirect economic Losses, even
                    if such Party has been advised of the possibility of such
                    damages. Supplier shall not be responsible for any Loss to
                    the extent that such Loss resulted from Mirror's breach of
                    this Agreement, negligence or willful misconduct or Mirror's
                    failure timely to fulfill its obligations hereunder.

                                   ARTICLE XX
                                 CONFIDENTIALITY

         Section 20.1. Confidentiality.

               (a) Confidential Information Defined. "CONFIDENTIAL INFORMATION"
shall mean such information disclosed by one Party to the other that at the time
of disclosure is designated as confidential or proprietary (or like
designation), is disclosed in circumstances of confidence or would be understood
by the Parties exercising reasonable business judgment to be confidential
pursuant to this Agreement and shall include, without limitation, formulas,
processes, designs, photographs, plans, samples, Equipment performance reports,
subscriber lists, pricing information, studies, findings, inventions, ideas,
drawings, schematics, sketches, specifications, parts lists, technical data,
data bases, software in any form, flowcharts, algorithms, and other business and
technical information. Confidential Information may be communicated orally, in
writing, by electronic or magnetic media, by visual observation and by other
means. The Party receiving said notification shall, from that time forward treat
such information as Confidential Information. Excluded from Confidential
Information is that which the recipient had in its possession without
confidential limitation prior to disclosure, which is independently known or
developed by either Party, which is known or becomes known to the general public
without breach of this Agreement, or which is rightfully received from a third
Person and without confidential limitation.

               (b) Exchange of Information. From time to time during the
performance of this Agreement, the Parties may deem it necessary to provide each
other with Confidential Information. The Parties agree:

                    (i) Nondisclosure. To maintain the confidentiality of such
                    Confidential Information and not to disclose it to any third
                    Person except as authorized by the original disclosing Party
                    in writing.

                                       53
<PAGE>   60

                    (ii) "Need to Know" Disclosure. To restrict disclosure of
                    Confidential Information only to employees and Authorized
                    Agents who have a "need to know." Such Confidential
                    Information shall be handled with the same degree of care
                    that the receiving Party applies to its own Confidential
                    Information but in no event shall such Confidential
                    Information be treated with less than reasonable care.

                    (iii) Precautions. To take all necessary and appropriate
                    precautions to guard the confidentiality of Confidential
                    Information, including informing its employees and
                    Authorized Agents who handle such Confidential Information
                    that it is confidential and not to be disclosed to others.

                    (iv) Ownership. That Confidential Information is and shall,
                    subject to Section 15.4, at all times remain the property of
                    the disclosing Party. No use of any Confidential Information
                    is permitted except as otherwise provided herein and, except
                    as otherwise provided herein, no license to a Party under
                    any trademark, patent, copyright, mask work or any other
                    intellectual property right, is either granted or implied by
                    the conveying of Confidential Information to such Party.

                    (v) Use. To use such Confidential Information only as
                    required for the purposes of this Agreement.

                    (vi) Reproduction. That Confidential Information furnished
                    in written, pictorial, magnetic or other tangible form shall
                    not be reproduced or copied, in whole or part, except as
                    reasonably necessary (i) by Supplier for its performance
                    under this Agreement, and (ii) by Mirror for its
                    installation and O&M of Equipment and Services furnished by
                    Supplier under this Agreement; if copied or reproduced shall
                    bear the same notices or legends, if any, as the originals
                    and shall, together with any full or partial copies thereof,
                    be returned, destroyed or erased (including any computer
                    memory thereof) when no longer needed for the purposes
                    authorized under this Agreement. The receiving Party shall
                    use reasonable efforts to return, destroy, or erase such
                    tangible Confidential Information (including copies,
                    reproductions or other documents containing Confidential
                    Information) within ten (10) Business Days of the disclosing
                    Party's written request.

                    (vii) Legal Compulsion. The receiving Party may disclose
                    Confidential Information pursuant to any valid legal or
                    regulatory requirement or order of a court, regulatory
                    agency or other Authority having jurisdiction; provided,
                    that such disclosure shall be as narrowly tailored as
                    possible to comply with such legal or regulatory requirement
                    or order. Upon becoming aware of any such requirement to
                    disclose Confidential Information, the receiving Party
                    immediately shall so notify the disclosing Party of such
                    requirement and of the information that it

                                       54
<PAGE>   61

                    proposes to provide in compliance with such requirement. The
                    disclosing Party shall have the right to contest such
                    requirement at its own cost and expense.

                    (viii) Survival. This Article shall continue until
                    termination of this Agreement; provided, however that all
                    obligations hereunder with respect to Confidential
                    Information received prior to such expiration, cancellation
                    or termination of this Agreement shall survive such
                    expiration, cancellation or termination for a period of two
                    (2) years after termination.

               (c) Agreement Disclosure. Except as may be required by, or
necessary in order to comply with, applicable Law, neither Supplier nor Mirror
shall disclose to any third party the contents of this Agreement, the schedules
or any amendments hereto or thereto for a period of two (2) years after the
termination of this Agreement without the prior written consent of the other
Party, which will not be unreasonably withheld. Supplier, to the extent
appropriate, can disclose the content of the Agreement to its Authorized Agents,
provided such Authorized Agents agree in writing to maintain such information
confidential. Mirror may disclose this Agreement to banks, financing entities
and potential equity investors and their respective advisors with a view to
obtaining funds; provided that said banks and financing entities and potential
equity investors agree to maintain such information confidential. In addition,
Mirror's shareholders may, as and to the extent required by, or necessary to
ensure compliance with, applicable laws, including, without limitation,
applicable securities laws and regulations, disclose this Agreement to banks,
financing entities and potential equity investors and their respective advisors
with a view to obtaining funds; provided that said banks and financing entities
and potential equity investors agree to maintain such information confidential.

               (d) Third Parties. Except as provided below with respect to
Authorized Agents, neither Party shall disclose Confidential Information of the
Party hereto to any third Person without such other Party's prior written
consent. Any such consent may be conditioned upon execution by the third Person
of a nondisclosure agreement in a form satisfactory to the Party whose
Confidential Information is being disclosed.

               (e) Authorized Agents. For purposes of this Article XX, the term
"AUTHORIZED AGENT" includes an attorney, an expert, a consultant, a
Subcontractor, or other third Person, but only to the extent such Party is
performing or enforcing (or assisting the receiving Party to perform or enforce)
or advising the receiving Party with respect to its rights and obligations under
this Agreement, and provided that such third Person is bound by a professional
ethical obligation of confidentiality or agrees in writing (a copy of which
document will be produced to the disclosing Party at its request) to the same
conditions respecting use of Confidential Information contained in this clause
and to any reasonable conditions requested by the disclosing Party.

                                   ARTICLE XXI
                         EVENTS OF DEFAULT; TERMINATION

         Section 21.1. Mirror Events of Default. The following events shall be
considered events of default ("EVENTS OF DEFAULT") by Mirror under this
Agreement:

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<PAGE>   62

               (a) Mirror materially breaches a material obligation under this
Agreement, which breach remains uncured thirty (30) days after Mirror has
received notice from Supplier identifying such material breach and requesting
that such breach be cured;

               (b) Mirror makes a general assignment for the benefit of
creditors, or if a petition in bankruptcy or under any insolvency law is filed
by or against Mirror and such petition is not dismissed within sixty (60) days
after it has been filed; and

               (c) ANATEL revokes the License.

         Section 21.2. Remedies for Mirror Event of Default.

               (a) If Mirror commits an Event of Default that has not been cured
within the applicable cure period provided in Section 21.1, Supplier may
terminate this Agreement on thirty (30) days notice to Mirror; provided, that if
the applicable Event of Default is cured within such thirty (30) day notice
period, such notice shall be invalid and this Agreement shall not be terminated
on account of such cured Event of Default.

         Section 21.3. Supplier Events of Default. The following events shall be
considered Events of Default by Supplier under this Agreement:

               (a) Supplier or any Supplier Representative breaches a material
obligation under this Agreement, including, without limitation, [***] to provide
vendor financing in accordance with the terms and conditions of this Agreement
(Section 7.9), [***] which breach remains uncured thirty (30) days after Mirror
has received notice from Supplier identifying such material breach and
requesting that such breach be cured;

               (b) Liquidated Damages payable by Supplier at any time pursuant
to this Agreement reach [***];

               (c) Supplier makes a general assignment for the benefit of
creditors, or if a petition in bankruptcy or under any insolvency law is filed
by or against Supplier and such petition is not dismissed within sixty (60) days
after it has been filed.

         Section 21.4. Remedies for Supplier Event of Default. If Supplier
commits an Event of Default that has not been cured within the applicable cure
period provided in Section 21.3, if any, Mirror may elect either to:

               (a) [***]; or

               (b) terminate this Agreement [***] on thirty (30) days notice to
Mirror; provided, that if all Events of Default are cured within such thirty
(30) day notice period and there are no other outstanding Supplier Events of
Default or other defaults under this Agreement, such notice shall be invalid and
this Agreement shall not be terminated on account of such cured Event of
Default.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       56
<PAGE>   63

         Section 21.5. Effects of Termination on Pre-Existing Rights. Each
Party's termination rights shall be without prejudice to the rights or claims it
may have hereunder against the other with respect to its performance,
nonperformance or breach of obligations hereunder. Any termination of this
Agreement shall not affect: (i) any right or obligation of any Party arising
prior to termination or (ii) the right to use Equipment and Services acquired
and paid for under this Agreement, or otherwise to exercise the rights granted
hereunder provided such rights survive termination of this Agreement pursuant to
Section 24.8. In the event termination is due to Supplier Events of Default, at
Mirror's option, any orders for Equipment or Services placed with Supplier prior
to the effective date of termination shall be completed in accordance with the
terms of this Agreement.

                                  ARTICLE XXII
                      GOVERNING LAW; RESOLUTION OF DISPUTES

         Section 22.1. Governing Law. The validity, construction and
interpretation of, and the rights and obligations of the Parties, pursuant to
this Agreement and any amendment hereto shall be governed by the Laws of Brazil.

         Section 22.2. Disputes. Except as otherwise provided in this Agreement,
every dispute, controversy or disagreement of any kind or nature between the
Parties arising out of or in connection with this Agreement (each, a "DISPUTE")
shall be resolved in accordance with the following provisions of this Article
XXII.

         Section 22.3. Executive Resolution.

               (a) Upon the occurrence of a Dispute, either Party may deliver a
notice to the other Party (a "DISPUTE NOTICE") requesting that the Dispute be
referred to the senior management of the Parties. Any Dispute Notice shall
include the names of the senior management of the Party nominated to attempt to
resolve the Dispute and a schedule of their availability during the eighteen
(18) day period following the date of the delivery of the Dispute Notice. Any
Dispute Notice shall be delivered promptly after the Dispute arises.

               (b) Within three (3) days after receipt of a Dispute Notice, the
other Party shall provide a notice to the requesting Party (the "RESPONSE
NOTICE") indicating the names of the senior management of such other Party
nominated to attempt to resolve the Dispute, and a schedule of their
availability during the fifteen (15) day period following the date of the
delivery of the Response Notice.

               (c) During the fifteen (15) day period following the delivery of
the Response Notice, the nominated members of the senior management of the
Parties shall meet as frequently as possible and shall attempt in good faith to
resolve the Dispute.

         Section 22.4. Arbitration. In the event that any Dispute has not been
resolved within [***] of the delivery of a Response Notice, an arbitral tribunal
may be established in accordance with the following provisions:

               (a) The Party wishing to appeal to the arbitral tribunal shall
notify the other Party indicating the nature of the Dispute and the name of its
appointed arbitrator.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       57
<PAGE>   64

               (b) Within [***] from the date of receipt of the notice referred
to in Section 22.4(a), the other Party shall inform the first Party by written
notice of its appointed arbitrator. In the event such appointment is not made,
the first Party may request the President of the International Chamber of
Commerce to appoint the second arbitrator on behalf of the other Party.

               (c) Within [***] from the date of the appointment referred to in
Section 22.4(b), the appointed arbitrators shall appoint a third arbitrator who
shall preside over the proceedings. If an agreement upon the third arbitrator is
not reached, such appointment shall be made by the President of the
International Chamber of Commerce.

               (d) The arbitration shall be governed by the Rules of Arbitration
of the International Chamber of Commerce, except as provided otherwise herein,
and the arbitral tribunal shall adopt the substantive Laws of Brazil, without
giving effect to any conflict of Law rules contained therein.

               (e) All proceedings and records of the arbitration shall be
conducted and maintained in the English language. All notices, requests, demands
and other communications shall be in writing in the English language and shall
be delivered pursuant to Section 24.4.

               (f) Any Party may apply to the arbitrators for the privilege of
conducting discovery. The right to conduct discovery shall be granted by the
arbitrators with a view to avoiding surprise and providing reasonable access to
necessary information or information likely to be presented during the course of
the arbitration, without regard to whether or the extent to which such
information is confidential.

               (g) The Parties shall be given the right to cross-examine any
witness whose testimony is so admitted.

               (h) No indirect, consequential, incidental, moral or punitive
damages shall be sought by or imposed on the Parties (other than as contemplated
by Section 10.5).

               (i) Any confidentiality covenant established in this Agreement
shall apply to the arbitration proceedings.

               (j) The arbitration shall be conducted in the city of Rio de
Janeiro, Brazil.

               (k) Within [***] from the date the arbitral tribunal is formed,
the arbitrators shall present a detailed arbitral award, which shall be
determined based on a majority of votes. Such arbitral award shall detail and
quantify the liabilities of the defaulting Party as well as indicate the
proportion of the arbitrators' fees and expenses to be borne by each Party and
terms for the respective payment. The arbitral award shall, except in the event
of fraud or material mistake, be final, without appeal and binding upon the
Parties.

               (l) Any judgment on such award must comply with the requirements
of enforceability in Brazil and shall be enforced in the same manner as if it
were a final judgment from any judicial court of such jurisdiction.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       58
<PAGE>   65

               (m) The Parties agree that either Party may have the need to
obtain immediate relief including, without limitation, specific performance
and/or injunction from a judicial court. Therefore, the filing for and obtaining
of injunctive relief (or another type of remedy that cannot be obtained from an
arbitral tribunal under applicable Law) in connection with this Agreement shall
be permitted and shall not be considered a breach hereof; provided that such
remedy or judicial relief (i) is limited to what is required to prevent imminent
damage to a Party and (ii) does not resolve the merits or substance of any such
Dispute.

               (n) If, for any reason, the arbitration proceedings or the
enforcement of any arbitral award thereunder is ultimately frustrated by any
Party and the other Party is unable to obtain appropriate legal remedy to
conduct the arbitration proceedings or to enforce the arbitral award against
such Party, the injured Party shall not be denied or restricted access to any
judicial or extrajudicial forum provided that, in such event, the Parties shall
submit any Dispute to the courts of the city of Rio de Janeiro, Brazil.

                                  SECTION XXIII

         Section 23.1. [***]

         Section 23.2. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       59
<PAGE>   66
[***].

                                  ARTICLE XXIV
                                  MISCELLANEOUS

         Section 24.1. Compliance with Law. The Parties shall comply with all
applicable Laws. In addition, Supplier acknowledges that it has received and
reviewed a copy of the License and shall, in performing its obligations under
this Agreement, comply with the requirements therein governing the procurement
of Equipment and Services.

         Section 24.2. Publicity and Trademark. Nothing contained in this
Agreement shall be construed as conferring any right to use any name, trademark
or other designation of either Party hereto, including any abbreviation, or
simulation of any of the foregoing, in advertising, publicity or marketing
activities. Any publicity, advertising, etc., with regard to this Agreement or
the Network that mentions the other Party shall be mutually agreed upon in
writing prior to disclosure or dissemination.

         Section 24.3. Assignment.

               (a) This Agreement shall inure to the benefit of and be binding
upon the Parties hereto and their respective successors and permitted assigns.
Except as provided in Sections 24.3(b) and (c), neither Party shall assign or
transfer this Agreement without the prior written consent of the other Party.

               (b) Supplier may assign all or any portion of its rights and
delegate its duties, obligations and liabilities hereunder to a designated
(direct or indirect) Affiliate of Supplier, provided that Supplier remains
jointly and severally liable as to the performance of all of its obligations
under this Agreement by such subsidiary. A merger or business combination of
Supplier shall not constitute an assignment under this Section 24.3, provided
that the entity resulting from such merger or business combination fully and
unconditionally agrees to be bound by the terms and conditions of this
Agreement.

               (c) Mirror may assign its rights and delegate its duties,
obligations and liabilities to a designated (direct or indirect) subsidiary of
Mirror, provided that Mirror remains jointly and severally liable as to the
performance of all of its obligations by such subsidiary without requiring the
consent of Supplier. In addition, upon notice to Supplier, Mirror may assign
this Agreement as security to Persons providing debt financing for the Project
and Supplier shall cooperate with Mirror as required to effectuate such
collateral assignment. A merger or business combination of Mirror shall not
constitute an assignment under this Section 24.3, provided that the entity
resulting from such merger or business combination fully and unconditionally
agrees to be bound by the terms and conditions of this Agreement.

         Section 24.4. Notices.

               (a) Notices required to be given by one Party to another shall be
deemed properly given if reduced to writing and personally delivered or
transmitted by postage prepaid registered or

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       60
<PAGE>   67

certified post, return receipt requested, by air courier, or by facsimile or
electronic mail with confirmation receipt to the addresses indicated below. Such
notices shall be deemed to have been given and shall be effective upon receipt.

               (b)  Notice to Mirror:

                    Mirror S.A.
                    Avenida Republica do Chile 500, 25th andar
                    20031-170 Rio de Janeiro, R.J.
                    Brasil
                    Tel:     5521-824-5000
                    Fax:  5521-544-2740
                    Attention:    Chief Operating Officer

               (c)  Notice to Supplier:

                    Ericsson Telecomunicacoes S.A.
                    Address: Rua Maria Prestes Maia no. 300
                    Sao Paulo, S.P.
                    Tel:  5511
                    Fax:  5511
                    Attention:

                    With a copy to:

                    Ericsson Wireless Communications Inc.
                    6455 Lusk Boulevard
                    San Diego, California 92121-2779
                    Tel:  858-332-5348
                    Fax:  858-332-7189
                    Attention:  General Counsel

         Section 24.5. Modifications to Notice Address. Either Party may change
the addresses for giving notice by providing the other Party with written
information about such change of address in accordance with Section 24.4.

         Section 24.6. Records. Both Parties shall maintain complete and
accurate records of all matters that relate to their obligations hereunder in
accordance with generally accepted accounting principles and practices,
uniformly and consistently applied in a format that will permit audit. Unless
otherwise provided in this Agreement the Parties shall retain such records for a
period of five (5) years from the date of their creation or the period required
by the applicable Laws, whichever is greater.

         Section 24.7. Severability. Any term or provision of this Agreement
that is held to be invalid, void, unenforceable or illegal will in no way
affect, impair or invalidate the remaining terms or provisions, which will
remain in full force and effect as though the Agreement did not contain

                                       61
<PAGE>   68

the particular invalid or unenforceable term or provision, and the rights and
obligations of each Party shall be construed and enforced accordingly. To the
extent that any provision shall be held to be invalid, illegal or unenforceable,
such provision shall be considered null and void but the remaining provisions of
this Agreement shall remain in effect. In the event the invalid illegal or
unenforceable provision is considered an essential element of this Agreement,
the Parties shall promptly negotiate replacement provisions that are acceptable
to both Parties and are valid, legal and enforceable, and come as close as
possible to reflect accurately the intentions of the Parties underlying the
invalid, illegal or unenforceable provision or provisions.

         Section 24.8. Survival. Termination of this Agreement, for whatever
cause, shall be without prejudice to any right or obligation of any Party hereto
in respect of this Agreement that has arisen prior to such termination or
expiration. If this Agreement is terminated by either Party prior to the
completion of Final Acceptance for any Order Document, then the Order Document's
Provisional Acceptance and Final Acceptance will be based on that Equipment
actually delivered to the corresponding Site(s) as of the effective date of
termination. The Parties' rights and obligations, which, by their nature, would
continue beyond the termination, cancellation, or expiration of this Agreement,
shall survive the termination, cancellation or expiration of this Agreement,
including, without limitation, the provisions of Sections 7.2, 7.6, 7.8, 10.1,
10.2, 10.3, 10.4, 15.2, 15.4, 17.1, 17.2, 19.1, 20.1, 21.5, 24.1, 24.2, 24.3,
24.6, 24.8, 24.10, 24.124.14, 24.15, 24.16, and 24.17, and Articles XIII, XIV
and XXII.

         Section 24.9. Consent. Wherever in this Agreement consent, approval or
mutual agreement is required of Mirror or Supplier, the appropriate Party agrees
not to withhold or delay unreasonably such consent or approval.

         Section 24.10. Discrepancies or Inconsistencies. In the event of any
discrepancy or inconsistency between this Agreement and any of its Schedules,
the terms and conditions of this Agreement shall prevail to the extent of any
such discrepancy or inconsistency.

         Section 24.11. Amendment, Modification or Addendum. Any amendment,
modification or addendum to this Agreement shall be made by making specific
reference to the provision(s) to be amended, modified or added and shall be made
in writing signed by all Parties hereto. All other provisions not specifically
referred to in such amendment, modification or addendum shall remain unchanged
and in full force and effect.

         Section 24.12. No Waiver of Rights; No Novation.

               (a) No waiver by either Party of any default or defaults by the
other Party in the performance of any of the provisions of this Agreement:

                    (i) shall operate or be construed as a waiver of any other
                    or further default or defaults whether of a like or
                    different character;

                    (ii) shall operate or be construed as a novation of any of
                    the rights and obligations established herein; or

                                       62
<PAGE>   69

                    (iii) shall be effective unless in writing duly executed by
                    a duly authorized representative of such Party.

               (b) Neither the failure by a Party to insist on any occasion upon
the performance of the terms, conditions and provisions of this Agreement nor
time or other indulgence granted by one Party to the other shall act as a waiver
of such breach or acceptance of any variation or the relinquishment or the
novation of any such right or any other right hereunder, which shall remain in
full force and effect.

         Section 24.13. Costs and Expenses. Except as otherwise provided in this
Agreement, each Party shall pay its own costs and expenses in relation to the
negotiation, preparation, execution and carrying into effect of this Agreement.

         Section 24.14. Relationship of the Parties. This Agreement shall not be
interpreted or construed to create an association, joint venture or partnership
between the Parties or to impose any partnership obligation or liability upon
either Party and neither Party shall have any right, power or authority to enter
into any agreement or undertaking for, or act on behalf of, or to act as or be
an agent or representative of, or to otherwise bind, the other Party.

         Section 24.15. Language of Agreement. This Agreement shall be executed
in the English language and the Parties shall initial a sworn, official
translation of this Agreement (without the schedules) to the Portuguese
language, which shall be prepared within ninety (90) days from the Effective
Date. Such translation shall be used in the event that presentation of a
Portuguese translation of this Agreement to any Brazilian court, tribunal or
Authority is required. In the event that an official translation of the
schedules to this Agreement is required, the Parties shall jointly agree upon
such official translation. The cost of such translation of the Schedules shall
be borne by Supplier. All documents, notices, waivers and all other written
communications between the Parties in connection with this Agreement shall,
unless the Parties otherwise agree, be in English.

         Section 24.16. Third Party Beneficiaries. This Agreement is intended to
be solely for the benefit of the Parties hereto and is not intended to confer
any benefits upon, or create any rights in favor of, any Person other than the
Parties hereto.

         Section 24.17. Duty to Mitigate. Notwithstanding anything in this
Agreement to the contrary, in the event that one Party defaults or appears
reasonably likely to default on its obligations under this Agreement, such Party
shall in good faith use commercially reasonable efforts to avoid and/or
mitigate, as applicable, any damages, penalties, Liquidated Damages, liabilities
or expenses that would be incurred by such Party.

         Section 24.18. Schedules. The following Schedules are hereby
incorporated in and shall constitute a part of this Agreement as though included
in the body hereof:

      SCHEDULE            TITLE

      Schedule 4.1        [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       63
<PAGE>   70

      Schedule 5.1(a)     [***]

      Schedule 6.1(a)     [***]

      Schedule 7.3        [***]

      Schedule 7.9        [***]

      Schedule 9.1(a)     [***]

      Schedule 9.3(a)     [***]

      Schedule 9.3(d)     [***]

      Schedule 10.7       [***]

      Schedule 13.1       [***]

      Schedule 13.3       [***]

      Schedule 13.9       [***]

      Schedule 14.1       [***]

      Schedule 15.1       [***]

      Schedule 17.1(a)    [***]

      Schedule 23.1       [***]

                                     * * * *

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       64
<PAGE>   71

         Thus being agreed, the Parties have executed this Agreement in two
counterparts, in the presence of two (2) witnesses signing below.

         Rio de Janeiro, August 4, 1999.

------------------------------------- ------------------------------------------
MIRROR S.A.

By:                                        By:
   ----------------------------               ----------------------------

Name:                                      Name:
     --------------------------                 --------------------------

Title:                                     Title:
      -------------------------                  -------------------------
------------------------------------- ------------------------------------------
ERICSSON TELECOMUNICACOES S.A.

By:                                        By:
   ----------------------------               ----------------------------

Name:                                      Name:
     --------------------------                 --------------------------

Title:                                     Title:
      -------------------------                  -------------------------
------------------------------------- ------------------------------------------
WITNESSES:

Name:                                      Name:
     --------------------------                 --------------------------

RG:                                        RG:
   ----------------------------               ----------------------------

CPF:                                       CPF:
    ---------------------------                ---------------------------
------------------------------------- ------------------------------------------

                                       65
<PAGE>   72

                                  SCHEDULE 4.1

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 4 pages
have been omitted from this Schedule.

<PAGE>   73

                                 SCHEDULE 5.1(a)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 11
pages have been omitted from this Schedule.
<PAGE>   74

                                 SCHEDULE 6.1(a)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 16
pages have been omitted from this Schedule.
<PAGE>   75

                                  SCHEDULE 7.3

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 64
pages have been omitted from this Schedule.
<PAGE>   76

                                                                    SCHEDULE 7.9

                         FINANCING AGREEMENT TERM SHEET

                                      NONE

<PAGE>   77

                                 SCHEDULE 9.1(a)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 44
pages have been omitted from this Schedule.
<PAGE>   78

                                 SCHEDULE 9.3(a)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 7 pages
have been omitted from this Schedule.
<PAGE>   79

                                 SCHEDULE 9.3(d)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 12
pages have been omitted from this Schedule.
<PAGE>   80

                                  SCHEDULE 10.7

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 2 pages
have been omitted from this Schedule.
<PAGE>   81

                                  SCHEDULE 13.1

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 271
pages have been omitted from this Schedule.
<PAGE>   82

                                  SCHEDULE 13.2

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 14
pages have been omitted from this Schedule.
<PAGE>   83

                                  SCHEDULE 13.9

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 11
pages have been omitted from this Schedule.
<PAGE>   84

                                  SCHEDULE 14.1

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 1 page
has been omitted from this Schedule.
<PAGE>   85

                                  SCHEDULE 15.1

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 13
pages have been omitted from this Schedule.
<PAGE>   86

                                SCHEDULE 17.1(a)

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 1 page
has been omitted from this Schedule.
<PAGE>   87

                                  SCHEDULE 23.1

                                     [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 5 pages
have been omitted from this Schedule.

                                       16<PAGE>   1
                                                                    EXHIBIT 10.7

                     EQUIPMENT SUPPLY AND SERVICES AGREEMENT

                                     BETWEEN

                                   MIRROR S.A.

                                       AND

                           NORTEL NETWORKS CORPORATION

              NORTHERN TELECOM DO BRASIL INDUSTRIA E COMERCIO LTDA.

              NORTHERN TELECOM DO BRASIL COMERCIO E SERVICOS LTDA.

                            DATED AS OF JULY 9, 1999

Confidential Treatment Requested. Confidential portions of this document have
been omitted and filed separately with the Securities and Exchange Commission.
<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----

<S>                                                                                                              <C>
Article I Definitions; Interpretation.............................................................................2

     Section 1.1 Definitions......................................................................................2
     Section 1.2 Interpretation..................................................................................11

Article II Strategic Relationship................................................................................12

     Section 2.1 Business Dealings Among the Parties.............................................................12
     Section 2.2 Common Understandings...........................................................................12
     Section 2.3 Principles Governing Business Conduct...........................................................12
     Section 2.4 Purchase Commitment.............................................................................13

Article III Term; Condition Precedent; Suspensive Condition......................................................13

     Section 3.1 Term............................................................................................13
     Section 3.2 Effective Date..................................................................................14
     Section 3.3 Suspensive Conditions...........................................................................14

Article IV Scope of Agreement and Turnkey Responsibilities.......................................................14

     Section 4.1 Scope of Agreement..............................................................................14
     Section 4.2 Turnkey Concept.................................................................................14
     Section 4.3 Turnkey Network.................................................................................14
     Section 4.4 Turnkey Switch Service Areas....................................................................14
     Section 4.5 Turnkey Systems.................................................................................15
     Section 4.6 Modification of Turnkey Responsibilities........................................................15
     Section 4.7 Nortel's Subcontractors.........................................................................15
     Section 4.8 Subcontractor Management........................................................................16
     Section 4.9 Specifications..................................................................................16
     Section 4.10 Technical Services Agreement/INPI Registration.................................................16

Article V Order, Delivery, Title Passage and Import Procedures...................................................17

     Section 5.1 Order Procedures................................................................................17
     Section 5.2 Delivery of Certain Equipment...................................................................17
     Section 5.3 Title Passage and Risk of Loss of Equipment.....................................................17
     Section 5.4 Import Procedures for [***].....................................................................18

Article VI Time Schedule.........................................................................................18

     Section 6.1 Perform to Schedule.............................................................................18
     Section 6.2 Time Is of the Essence..........................................................................19
     Section 6.3 Anticipated Delays..............................................................................19
     Section 6.4 [***]...........................................................................................19
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       i

<PAGE>   3

<TABLE>
<S>                                                                                                             <C>
     Section 6.5 No Release Upon Payment of Liquidated Damages...................................................19

Article VII Prices and Payment Terms.............................................................................19

     Section 7.1 [***]...........................................................................................19
     Section 7.2 Import Duties; Taxes............................................................................20
     Section 7.3 Prices..........................................................................................21
     Section 7.4 Price Basis.....................................................................................22
     Section 7.5 Invoices........................................................................................23
     Section 7.6 Payment Terms...................................................................................23
     Section 7.7 Calculation of Interest.........................................................................27
     Section 7.8 Payment Disputes................................................................................28
     Section 7.9 Financing.......................................................................................28
     Section 7.10 [***]..........................................................................................28

Article VIII Supply Agreement Administration and Project Management..............................................29

     Section 8.1 Project Management..............................................................................29
     Section 8.2 Progress Review Meeting.........................................................................30
     Section 8.3 Agreement Administration by Mirror..............................................................30
     Section 8.4 Nortel Employees................................................................................30

Article IX Division of Responsibilities..........................................................................31

     Section 9.1 Joint Responsibilities..........................................................................31
     Section 9.2 Mirror Responsibilities.........................................................................31
     Section 9.3 Nortel Responsibilities.........................................................................32
     Section 9.4 [***]...........................................................................................35

Article X Indemnification, Damages, and Delays...................................................................35

     Section 10.1 General Indemnity (Mirror).....................................................................35
     Section 10.2 Infringement Indemnity.........................................................................36
     Section 10.3 [***]..........................................................................................37
     Section 10.4 Failure to Meet Time Schedule (Liquidated Damages).............................................37
     Section 10.5 [***]..........................................................................................40

Article XI Quality Assurance.....................................................................................41

     Section 11.1 Quality Assurance..............................................................................41

Article XII Environmental Policy.................................................................................41

     Section 12.1 Environment; Environmental Policy..............................................................41

Article XIII Warranties..........................................................................................42

     Section 13.1 Hardware Warranty..............................................................................42
     Section 13.2 Application Procedures for Hardware Warranty...................................................43
     Section 13.3 Software Warranty..............................................................................44
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       ii

<PAGE>   4

<TABLE>
<S>                                                                                                             <C>
     Section 13.4 Year 2000 Warranty.............................................................................44
     Section 13.5 Warranty for Services..........................................................................45
     Section 13.6 No Trouble Found...............................................................................45
     Section 13.7 [***]..........................................................................................45
     Section 13.8 [***]..........................................................................................45
     Section 13.9 Support Services Program.......................................................................46
     Section 13.10 [***].........................................................................................46
     Section 13.11 [***].........................................................................................47
     Section 13.12 [***].........................................................................................47
     Section 13.13 Equipment Changes or Substitutions by Nortel..................................................47
     Section 13.14 Network Expansion and Spares (Continuity of Supply)...........................................48
     Section 13.15 Disclaimer of Warranties......................................................................49

Article XIV Software.............................................................................................50

     Section 14.1 Software.......................................................................................50
     Section 14.2 Software Patches...............................................................................50
     Section 14.3 Software Upgrades..............................................................................50

Article XV Documentation.........................................................................................50

     Section 15.1 Documentation to be Provided by Nortel.........................................................50
     Section 15.2 License to Documentation.......................................................................51
     Section 15.3 Proprietary Information........................................................................51
     Section 15.4 Documents to Become Property of Mirror.........................................................51
     Section 15.5 Responsibility for Documents...................................................................51

Article XVI Force Majeure and Acts of Providence.................................................................52

     Section 16.1 Force Majeure..................................................................................52
     Section 16.2 Acts of Providence.............................................................................52
     Section 16.3 Exclusions.....................................................................................53
     Section 16.4 Procedure for Calling Force Majeure or Acts of Providence......................................53
     Section 16.5 Effects of Force Majeure or Acts of Providence.................................................54

Article XVII Representations and Warranties......................................................................54

     Section 17.1 Representations and Warranties of Nortel.......................................................54
     Section 17.2 Representations and Warranties of Mirror.......................................................55

Article XVIII Insurance..........................................................................................56

     Section 18.1 Insurance......................................................................................56

Article XIX Limitation on Liability..............................................................................57

     Section 19.1 Limitation of Liability........................................................................57
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                      iii

<PAGE>   5

<TABLE>
<S>                                                                                                             <C>
Article XX Confidentiality.......................................................................................57

     Section 20.1 Confidentiality................................................................................57

Article XXI Events of Default; Termination.......................................................................60

     Section 21.1 Mirror Events of Default.......................................................................60
     Section 21.2 Remedies for Mirror Events of Default..........................................................60
     Section 21.3 Nortel Events of Default.......................................................................60
     Section 21.4 Remedies for Nortel Events of Default..........................................................61
     Section 21.5 Effects of Termination on Pre-Existing Rights..................................................61

Article XXII Governing Law; Resolution of Disputes...............................................................61

     Section 22.1 Governing Law..................................................................................61
     Section 22.2 Disputes.......................................................................................61
     Section 22.3 Executive Resolution...........................................................................61
     Section 22.4 Arbitration....................................................................................62

Section XXIII [***]...............................................................................................63

     Section 23.1 [***]..........................................................................................63
     Section 23.2 [***]..........................................................................................63

Article XXIV Miscellaneous.......................................................................................64

     Section 24.1 Compliance with Law............................................................................64
     Section 24.2 Publicity and Trademark........................................................................64
     Section 24.3 Assignment.....................................................................................64
     Section 24.4 Notices........................................................................................64
     Section 24.5 Modifications to Notice Address................................................................65
     Section 24.6 Records........................................................................................65
     Section 24.7 Severability...................................................................................65
     Section 24.8 Survival.......................................................................................66
     Section 24.9 Consent........................................................................................66
     Section 24.10 Discrepancies or Inconsistencies..............................................................66
     Section 24.11 Amendment, Modification or Addendum...........................................................66
     Section 24.12 No Waiver of Rights; No Novation..............................................................66
     Section 24.13 Costs and Expenses............................................................................67
     Section 24.14 Relationship of the Parties...................................................................67
     Section 24.15 Language of Agreement.........................................................................67
     Section 24.16 Third Party Beneficiaries.....................................................................67
     Section 24.17 Relationship of Nortel Networks, Nortel Servicos and Nortel Industria.........................67
     Section 24.18 Schedules.....................................................................................67
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       iv

<PAGE>   6

<TABLE>
<CAPTION>
                      SCHEDULE                           SCHEDULES

<S>                                                      <C>
                      Schedule 4.1                       [***]

                      Schedule 4.9                       [***]

                      Schedule 4.10                      [***]

                      Schedule 5.1(a)                    [***]

                      Schedule 6.1                       [***]

                      Schedule 7.3(a)                    [***]

                      Schedule 7.6(f)(vi)                [***]

                      Schedule 7.9                       [***]

                      Schedule 7.10                      [***]

                      Schedule 8.1(a)                    [***]

                      Schedule 9.1(a)                    [***]

                      Schedule 9.3(a)                    [***]

                      Schedule 9.3(d)                    [***]

                      Schedule 10.6                      [***]

                      Schedule 13.2                      [***]

                      Schedule 13.9                      [***]

                      Schedule 14.1                      [***]

                      Schedule 15.1                      [***]

                      Schedule 17.1(a)                   [***]

                      Schedule 23                        [***]
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       v

<PAGE>   7
                     EQUIPMENT SUPPLY AND SERVICES AGREEMENT

     This EQUIPMENT Supply and Services Agreement (this "AGREEMENT") is entered
into as of the date specified on the signature page hereof between MIRROR S.A.,
a corporation duly organized under the laws of Brazil with its head office in
the city and State of Rio de Janeiro, Brazil, Avenida Republica do Chile, no.
500, 25 degrees andar, registered with the Brazilian Registry of Legal Entities
(CNPJ) n degrees 02.730.101/0001-43 ("MIRROR"), and NORTEL NETWORKS CORPORATION,
a Canadian corporation with its head office located at 8200 Dixie Road,
Brampton, Ontario, Canada ("NORTEL NETWORKS"), NORTHERN TELECOM DO BRASIL
INDUSTRIA E COMERCIO LTDA., a corporation duly organized under the laws of
Brazil, with its head office in the city and State of Sao Paulo, Brazil, Avenida
das Nacoes Unidas, no. 17891, 4 degrees andar, Santo Amaro, registered with the
Brazilian Registry of Legal Entities (CNPJ) under n degrees 67.807.859/0001-88,
("NORTEL INDUSTRIA"), and NORTHERN TELECOM DO BRASIL COMERCIO E SERVICOS LTDA.,
a corporation duly organized under the laws of Brazil, with its head office in
the city and state of Sao Paulo, Brazil, Avenida das Nacoes Unidas, no. 17891,
10 degrees andar, Parte A, Santo Amaro, registered with the Brazilian Registry
of Legal Entities (CNPJ) under n degrees 01.993.432/0001-03, ("NORTEL SERVICOS"
and, together with Nortel Networks and Nortel Industria and any Affiliate of any
of them that provides Equipment or Services hereunder, "NORTEL"). Each of Mirror
and Nortel are referred to herein as a "PARTY" and, collectively, as the
"Parties."

                                    RECITALS

     Whereas, Mirror has entered into two agreements with ANATEL, the Termos de
Autorizacao do Servico Telefonico Comutado, Modalidades Local e Longa Distancia,
entered into on February 4, 1999 (collectively, the "LICENSE") to provide
switched fixed telecommunications services in Region I of Brazil (as defined in
Schedule I of the Request for Bid in Bidding Procedure No. 0001/98/SBP/ANATEL),
comprising the following states of the Brazilian territory: Rio de Janeiro,
Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio
Grande do Norte, Ceara, Piaui, Maranhao, Para, Amapa, Amazonas and Roraima (the
"TERRITORY");

     Whereas, Nortel is a worldwide provider of integrated telecommunications
solutions, with manufacturing operations in several countries, including a
state-of-the-art manufacturing facility located in the city of Campinas, state
of Sao Paulo, Brazil;

     Whereas, Mirror seeks to purchase Equipment and Services from Nortel for
the purpose of engineering, commissioning, building and installing a public
switched telecommunications network in the Territory (the "PROJECT"), [***] on a
Turnkey basis as provided herein;

     Whereas, Nortel is willing to supply to Mirror, and Mirror is willing to
purchase from Nortel, Equipment and Services for deployment in connection with
the Project on the terms and conditions set forth in this Agreement;

     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       1

<PAGE>   8
[***]

     WHEREAS, Mirror and Nortel have executed a Letter of Understanding dated
March 31, 1999 (as subsequently amended) to support the start of Project
implementation before the execution of this Agreement.

     NOW, THEREFORE, in consideration of the mutual premises contained herein,
the Parties hereby agree as follows:

                                    AGREEMENT

                                    ARTICLE I
                           DEFINITIONS; INTERPRETATION

     Section 1.1 Definitions. Capitalized terms used but not otherwise defined
herein shall have the respective meanings set forth below:

     "ACCEPTANCE" means Partial Provisional Acceptance, Provisional Acceptance
and/or Final Acceptance, as the case may be.

     "ACCEPTANCE TEST PROCEDURES" means mutually agreed methods of testing and
procedures that will be used to measure the performance of the Network, Switch
Service Areas, Equipment, Systems and Services to determine compliance with the
Specifications, which methods shall be defined and administered in accordance
with Schedule 9.3(a).

     "ACTS OF PROVIDENCE" has the meaning set forth in Section 16.2.

     "ADDITIONAL EQUIPMENT" has the meaning set forth in Section 13.10(c).

     "AFFECTED PARTY" has the meaning set forth in Section 16.4(a).

     "AFFILIATE," with respect to any Person, means any other Person, now or
hereafter existing, that, directly or indirectly, Controls, is Controlled by, or
is under common Control with, such Person.

     "AGREEMENT" means this Agreement and its Schedules.

     "ANATEL" means the Agencia Nacional de Telecomunicacoes of Brazil.

     "AUTHORITY" means any governmental or other regulatory authority, agency or
instrumentality with jurisdiction over the operations of Mirror in Brazil,
including but not limited to ANATEL, and includes any officer empowered by such
Authority to perform all or any of the functions of the Authority or the
functional equivalent successors of the Authority.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       2

<PAGE>   9

     "AUDITOR" has the meaning set forth in Section 7.1(c).

     "AUTHORIZED AGENT" has the meaning set forth in Section 20.1(e).

     "BRAZIL" means the Republica Federativa do Brasil.

     "BUSINESS DAY" means any day other than a Saturday, Sunday or a day on
which commercial banks are authorized or required to be closed in Sao Paulo or
Rio de Janeiro, Brazil or in Toronto, Ontario, Canada.

     "BUSINESS PLAN" means Mirror's business plan comprising the pro-forma
balance sheet, the pro-forma statement of earnings and cash flow and pro-forma
financing requirements for Mirror, as such Business Plan may from time to time
be revised by Mirror.

     "CDMA" means "code division multiple access" technology.

     "CELL SITE" means a Site containing transmission and ancillary Equipment
designed to broadcast wireless signals to other Cell Sites, to one or more
Switches and/or to Customers, which signals are used to complete calls on the
Network.

     "CHANGE ORDER" has the meaning set forth in Schedule 5.1(a).

     "CHANGE ORDER PROCEDURE" means the procedure for requesting and
implementing Change Orders as specified in Schedule 5.1(a).

     [***]

     "CLASS A HARDWARE CHANGE" means a modification of existing Equipment to
remedy non-conformance to the Specifications that is required to correct design
defects of a type that result in electrical or mechanical inoperative conditions
or unsatisfactory operating conditions or that is required to enhance safety.

     "CLASS AC HARDWARE CHANGE" means a modification of existing Equipment to
remedy electrical or mechanical inoperative conditions or unsatisfactory
operating conditions, which results from Equipment aging or when it is used in
combination with specific other Equipment or in combination with a particular
feature or option.

     "COMMERCIAL LAUNCH" means the date on which the Equipment or Systems that
are the subject of an Order Document are completed (including the completion of
the Trial Run, if applicable) and such Equipment or Systems begin to operate
with paying customers (not including customers taking service on a trial basis
during the Trial Run).

     "COMMISSIONING" means the powering of the Equipment, the loading of the
Software and the activation of the Equipment.

     "COMPLETED SITES" has the meaning set forth in Section 7.6(a)(iv).

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       3

<PAGE>   10

     "CONFIDENTIAL INFORMATION" has the meaning set forth in Section 20.1(a).

     "CONTROL" is possessed by a Person over another Person (such other Person
the "SUBJECT PERSON") if such Person (alone or in combination with one or more
related Persons), (i) holds shares or possesses rights that assure it the
majority of votes in resolutions in a general meeting of shareholders and the
power to elect a majority of the subject Person's directors and officers; (ii)
holds shares or possesses rights either directly or indirectly through the
control of other subject Person(s) that assure its prevalence in corporate
resolutions and the power to elect the majority of the subject Person's
directors and officers; (iii) satisfies the definitions of "control" set forth
in articles 116 and 243(2) of the Brazilian Company Act or any successor or
replacement legislation thereof or (iv) has the power otherwise to cause the
direction of the management of the subject Person; "CONTROLLING" or "CONTROLLED"
have corresponding meanings.

     "COURSES" has the meaning set forth in Section 9.3(d).

     [***]

     "CUSTOMER" means a subscriber to the telecommunications services provided
by Mirror over the Network that is charged by Mirror for such services.

     [***]

     [***]

     [***]

     "DELIVERY" means delivery of Equipment to the applicable Site in
conformance with the Specifications and the provisions of Section 5.2.

     "DISPUTE" has the meaning set forth in Section 22.2.

     "DISPUTE NOTICE" has the meaning set forth in Section 22.3(a).

     "DOCUMENTATION" means the documents describing the Network, the Equipment,
the Services, Software and each of the Systems, general operating instructions,
drawings, diagrams and other written material as well as electronic material
(such as in the form of CD-ROM and other electronic media), if any.

     "DOLLARS" or "US DOLLARS" or "US$" means the lawful currency of the United
States of America.

     "EFFECTIVE DATE" has the meaning set forth in Section 3.2.

     "EQUIPMENT" means all of the equipment including, without limitation,
hardware, software and spare parts necessary to provide telecommunications
services to Customers within the Territory, consistent with applicable Laws and
specifications.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       4

<PAGE>   11

     "ETAS" has the meaning set forth in Section 13.9.

     "EVENTS OF DEFAULT" has the meaning set forth in Section 21.1.

     "EXCESS CAPACITY" has the meaning set forth in Section 13.10(c).

     "EXCESS DUTIES" has the meaning set forth in Section 7.2(a).

     [***]

     "FINAL ACCEPTANCE" means that the Equipment, Services and/or Systems that
are the subject of an Order Document have been completed and successfully have
met all of the requirements for Final Acceptance set forth in Schedule 9.3(a)
and/or such Order Document, as the case may be, and all Punchlist items, if any,
have been completed to Mirror's satisfaction.

     "FINANCING AGREEMENT" means one or more agreements regarding financing of
Equipment and Services as well as related import duties and taxes, as more fully
described in the Term Sheet.

     "FINANCING FACILITY" has the meaning set forth in Section 7.2(b).

     "FORCE MAJEURE" has the meaning set forth in Section 16.1.

     "GOVERNMENT" means the government of Brazil, any state, region,
municipality or other political subdivision and/or any ministry, department,
agency or other instrumentality thereof.

     [***]

     "HARDWARE" means all the Nortel Equipment and Scope Equipment as defined
herein, including spare parts but not including Software.

     "HARDWARE WARRANTY" has the meaning set forth in Section 13.1(b).

     "HARDWARE WARRANTY PERIOD" has the meaning set forth in Section 13.1(b).

     [***]

     "IMPORTED SERVICES" has the meaning set forth in Section 4.10.

     "INDEMNIFIED EQUIPMENT" has the meaning set forth in Section 10.2(a).

     "INFRASTRUCTURE EQUIPMENT AND SERVICES" has the meaning set forth in
Section 2.4(a).

     "INITIAL BUILD" has the meaning set forth in Section 7.6(a)(i).

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       5

<PAGE>   12

     "INSTALLATION" or "INSTALLATION SERVICES" means the Services listed in
Schedule 4.9 relating to assembling and installation of Equipment.

     "INTEREST RATE" has the meaning set forth in Section 7.6(c).

     "LAW" means the Constitution of Brazil, the Constitution of the State of
Rio de Janeiro or any other state located in the Territory, statutes,
provisional measures ("medidas provisorias"), Permit terms, judicial orders,
injunctive relief and other decisions, executive decrees, codes, administrative
decisions and rulings, regulations, assessments or requirements, in each case,
by or of any Authority generally affecting the residents of Brazil or the State
of Rio de Janeiro or any other state located in the Territory, or specifically
affecting any of the Parties or their performance under this Agreement. In
addition, Laws shall include all of the foregoing promulgated by any authority
of any other jurisdiction to which the Parties or any of them are subject.

     "LICENSE" has the meaning set forth in the Recitals to this Agreement.

     "LIQUIDATED DAMAGES" has the meaning set forth in Section 10.4(f).

     "LOAN" has the meaning set forth in Section 7.6(f)(vi).

     "LOSS" means any loss, damage, claim, obligation, liability or expense,
including reasonable attorneys' and experts' fees.

     [***]

     "MIRROR" has the meaning set forth in the Introductory Paragraph to this
Agreement.

     "MIRROR DELAYS" has the meaning set forth in Section 10.4(f).

     "MIRROR INDEMNIFIED PERSONS" has the meaning set forth in Section 10.1(a).

     "MIRROR-INSTALLED EQUIPMENT" has the meaning set forth in Section 5.2(a).

     "MIRROR PROJECT MANAGER" has the meaning set forth in Section 8.1(c).

     "MIRROR'S WAREHOUSE" means Mirror's storage facilities located at specific
sites to be designated from time to time by Mirror in a notice to Nortel.

     "NETWORK" means the complete and operating integrated ensemble of Systems,
Equipment and Services, necessary to permit Mirror to provide telecommunications
services to Customers in the Territory, consistent with applicable Laws and the
Specifications.

     "NORTEL" has the meaning set forth in the Introductory Paragraph to this
Agreement.

     "NORTEL EQUIPMENT" means the Equipment identified as such on Schedule
7.3(a) that Nortel is required to provide (either directly or through
Subcontractors) to Mirror under this

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       6

<PAGE>   13

Agreement, including, without limitation, the Hardware and Software specified on
such Schedule and OEM Equipment.

     "NORTEL INDUSTRIA" has the meaning set forth in the Introductory Paragraph
to this Agreement.

     "NORTEL PROJECT MANAGER" has the meaning set forth in Section 8.1(b).

     "NORTEL REPRESENTATIVE" means any agent, representative, servant,
Subcontractor, officer or employee of Nortel or its successors or permitted
assigns.

     "NORTEL SERVICES" means the Services that Nortel is required to provide
under this Agreement as specified on Schedule 7.3(a) including, without
limitation, (i) Project Management Services, (ii) Services associated with the
engineering, furnishing, commissioning and Installing Nortel Equipment and
Nortel provided Systems and the preparation of such Equipment and Systems for
operation, and (iii) Services that, by agreement of Mirror and Nortel, Nortel
will provide that are associated with the engineering, furnishing, commissioning
and/or Installing of Scope Equipment and other non-Nortel Equipment and the
preparation of such Equipment for operation.

     "NORTEL SERVICOS" has the meaning set forth in the Introductory Paragraph
to this Agreement.

     "NORTEL NETWORKS" has the meaning set forth in the Introductory Paragraph
to this Agreement.

     "O&M" means operations and maintenance.

     "OEM EQUIPMENT" means Equipment supplied by Nortel that is manufactured by
a third Person vendor but is not Scope Equipment.

     "ORDER DOCUMENT" has the meaning set forth in Schedule 5.1(a).

     "OTHER PURCHASE" has the meaning set forth in Section 7.6(a).

     "PARTIAL COMMERCIAL LAUNCH" means, with respect to an SSA Purchase Order,
the Commercial Launch (at Mirror's sole discretion) of less than all of the
number of Cell Sites specified in such SSA Purchase Order.

     "PARTIAL PROVISIONAL ACCEPTANCE" means, with respect to an SSA Purchase
Order, the Provisional Acceptance (at Mirror's sole discretion) of less than all
of the number of Cell Sites specified in such SSA Purchase Order.

     "PARTY" or "PARTIES" has the meaning set forth in the Introductory
Paragraph to this Agreement.

                                       7

<PAGE>   14

     [***]

     "PERMIT" means any consent, license, approval, permit, exemption,
registration, no objection certificate or other authorization of whatever nature
that is required to be granted at any time by any Person (a) for the purposes of
the Project including, without limitation, the construction, installation and
operation of the Network, the sale of the Equipment and/or the provision of the
Services; or (b) to allow Mirror to be permitted to enter into, or to exercise
its rights or observe or perform its obligations under, this Agreement.

     "PERSON(S)" includes, without limitation, any individual, firm, company,
association, partnership, joint venture, trust, investment company, pension fund
or investment fund, or other entity, or any government or any ministry,
department or agency thereof.

     "PLUG-IN" has the meaning set forth in Section 13.2(c).

     [***]

     "PRIME SUBCONTRACTOR" means a Subcontractor that has entered into a
contract with Nortel or Mirror (as the case may be) with a value in excess of
R$5 million per year.

     "PROJECT" has the meaning set forth in the Recitals to this Agreement.

     "PROJECT MANAGEMENT SERVICES" means the portion of the Services to be
provided by Nortel identified as such on Schedules 7.3(a) and 8.1(a).

     "PROPRIETARY RIGHTS" has the meaning set forth in Section 10.2(a).

     "PROVISIONAL ACCEPTANCE" means that a particular System, Switch Service
Area or Other Purchase has met the requirements for Provisional Acceptance set
forth in Schedule 9.3(a) with respect to all components of such System or all
Sites in, and other aspects of, such Switch Service Area or Other Purchase, as
the case may be, except for non-material Punchlist items.

     "PRUDENT INDUSTRY PRACTICE" means those practices, methods, equipment
specifications and standards of safety and performance (including compliance
with all equipment manufacturers' specifications and recommended standards for
O&M), as the same may change from time to time, as are commonly used by firms
performing turnkey engineering, furnishing, installation and construction
services on facilities of the type and size similar to the Network, which in the
exercise of reasonable judgment and in the light of the facts that are known or
should have been known at the time the decision was made, are considered good,
safe and prudent practice in connection with the design, construction and use of
equipment, software, facilities and improvements, with commensurate standards of
safety, performance, dependability, efficiency and economy. Prudent Industry
Practice is not intended to be limited to the optimum practice or method to the
exclusion of all others, but rather to be a spectrum of reasonable and prudent
practices and methods.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       8

<PAGE>   15

     "PSTN" means the public switched telephone network in the Territory and in
Brazil as a whole.

     "PUNCHLIST" means a list of defects or faults in Services, Equipment, a
Switch Service Area, a System or an Other Purchase, to be resolved by Nortel
prior to Final Acceptance thereof.

     "PURCHASE COMMITMENT" has the meaning set forth in Section 2.4(b).

     "PURCHASE ORDER" has the meaning set forth in Schedule 5.1(a).

     "QUALCOMM" means QUALCOMM Incorporated, a Delaware corporation, or its
successors or permitted assigns, or any other Equipment supplier (other than
Nortel) supplying CDMA wireless access infrastructure Equipment for the Network.

     "REAL" or "REAIS" OR "R$" means the lawful currency of Brazil.

     "REQUEST FOR QUOTATION" has the meaning set forth in Schedule 5.1(a).

     "RESPONSE NOTICE" has the meaning set forth in Section 22.3(b).

     "RESPONSIBILITY MATRIX" means the table allocating tasks and
responsibilities between Mirror and Nortel for a given phase of the Project as
set forth in Schedule 9.1(a).

     "RSS" means the Residential Subscriber Systems identified in Schedules 4.9
and 7.3(a).

     "SCHEDULES" means the schedules attached to this Agreement.

     "SCOPE EQUIPMENT" means Equipment supplied by Nortel but manufactured by a
third party vendor identified as such in Schedule 7.3(a).

     "SCOPE SERVICES" means Services that are associated with the engineering,
furnishing, commissioning and/or installing of Scope Equipment and the
preparation of such Equipment for operation, other than such Services that, by
agreement of the Parties, are Nortel Services, as provided in the definition of
Nortel Services.

     "SCOPE OF WORK" means the description of the work that Nortel shall perform
under this Agreement, as set forth in Schedule 4.1.

     "SERVICES" means all services required to engineer, furnish and install the
Equipment and Systems comprising the Network and to prepare the Network for
operation.

     [***]

     "SITE" means Mirror's Warehouse or any specific premises where Nortel shall
deliver Equipment or perform Services, as designated by Mirror.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       9

<PAGE>   16

     "SOFT LAUNCH" means, as applicable with respect to a Switch Service Area or
System, the commencement of the Trial Run after the Provisional Acceptance (or
Partial Provisional Acceptance) of such Switch Service Area or System, as the
case may be.

     "SOFTWARE" means the proprietary and/or third party software computer
programs (consisting of firmware and logic instructions in machine-readable code
residing in, or intended to be loaded in, system memories that provide basic
logic, operating instructions and user-related application instructions, but
excluding customer data) as well as associated Documentation used to describe,
maintain and use such programs that are integral to any Equipment required for
the Network; any reference herein to Software being sold, purchased or the like
is understood to be a reference to the Software being licensed by Nortel for use
by Mirror.

     "SOFTWARE LICENSE" has the meaning set forth in Section 14.1.

     "SOFTWARE WARRANTY" has the meaning set forth in Section 13.3.

     "SOFTWARE WARRANTY PERIOD" means the period during which the Software
Warranty is in effect pursuant to Section 13.3(a).

     "SPECIAL CREDITS" has the meaning set forth in Section 7.3(f).

     "SPECIFICATIONS" means the technical standards and specifications, as well
as the requirements, of the Nortel Equipment and, as applicable, Scope
Equipment, in each case as set forth on Schedule 4.9 and on the relevant Order
Document, as the case may be.

     "STAND-ALONE OEM EQUIPMENT" has the meaning set forth in Section 13.1(d).

     "SUBCONTRACTOR" means any Person engaged to provide specific Equipment or
Services for the Network.

     "SWITCH" means a Network element deployed within the Network that enables
the concentration, distribution, supervision of telecommunications traffic and
the gathering of billing data for calls to and from Mirror's Customers.

     "SWITCH SERVICE AREA" or "SSA" means the portion of the Network installed
within the geographic area covered by a single Switching center and all
subsidiary Equipment attached to the Switches comprising such Switching center
including, without limitation, base station Equipment, transmission Equipment
and power system Equipment. "SSA PURCHASE ORDER" has the meaning set forth in
Schedule 5.1(a).

     "SSA REQUEST FOR QUOTATION" has the meaning set forth in Schedule 5.1(a).

     "SYSTEM" means a group of Equipment, Services, components and
infrastructure related to the Network and performing a specific function in the
Network such as, without limitation, billing system, transport system, voice
messaging system and data system.

                                       10

<PAGE>   17

     "TECHNICAL ASSISTANCE SERVICES" means the Services listed under such
heading in Schedule 9.3(d).

     "TECHNICAL SERVICES AGREEMENT" has the meaning set forth in Section 4.10.

     "TERM" has the meaning set forth in Section 3.1.

     "TERM SHEET" means the term sheet for the Financing Agreement, which will
be attached hereto as Schedule 7.9.

     "TERRITORY" has the meaning set forth in the Recitals to this Agreement.

     "TIME SCHEDULE" has the meaning set forth in Section 6.1(a).

     "TOOLS" has the meaning set forth in Section 9.3(j).

     [***]

     "TRIAL RUN" means, as applicable, with respect to a Switch Service Area,
the period prior to Commercial Launch when the Switch Service Area will be
optimized and operating with non-regularly paying customers. [***]

     "TURNKEY" has the meaning set forth in Section 4.2.

     "UNCOMPLETED SITES" has the meaning set forth in Section 7.6(a)(iv).

     "VOLUME CREDITS" has the meaning set forth in Section 7.3(e).

     "WARRANTY PERIOD" means the Software Warranty Period and/or the Hardware
Warranty Period, as the case may be.

     "YEAR 2000 COMPLIANT" has the meaning set forth in Section 13.4(a).

     Section 1.2 Interpretation. In this Agreement, (i) any reference to an
agreement or document shall mean such agreement or document as the same may be
supplemented, amended or modified from time to time in accordance with its
terms; (ii) in the computation of periods of time from a specified date to a
later specified date, the word "from" means "from but excluding" and the words
"until" and "to" mean "to and including"; (iii) words importing the singular
shall include the plural and vice versa, and (iv) words importing the masculine
gender shall include the feminine and vice versa; (v) reference to any article,
section, clause, paragraph or schedule shall mean the applicable article,
section, clause, paragraph of, or schedule to, this Agreement, unless the
context otherwise requires; (vi) terms defined in this Agreement, when used in a
schedule to this Agreement, shall have the same meaning in such schedule as in
the Agreement; and (vii)

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       11

<PAGE>   18

capitalized terms used in a schedule that are not defined in this Agreement
shall have the meaning attributed to them in such schedule.

                                   ARTICLE II
                             STRATEGIC RELATIONSHIP

     Section 2.1 Business Dealings Among the Parties. Mirror and Nortel are
entering into a collaborative relationship intended to enable Mirror to obtain a
significant competitive advantage in offering telecommunications services in the
Territory pursuant to the License. Each of the Parties will demonstrate
integrity and commitment to the Project of the highest order so as to achieve
world class status with respect thereto and to maximize the success of the
Project.

     Section 2.2 Common Understandings. The Parties understand and acknowledge
that the following principles are critical to the success of the relationship
established by this Agreement and accordingly will strive to:

         (a) create business value for each of the Parties;

         (b) provide a high level of commitment to the relationship;

         (c) work together through the learning curve;

         (d) work together to accelerate innovation and expansion of the market
for the services to be provided by Mirror; and

         (e) develop and implement reliable methods, measurements, waste
reduction and other quality assurance principles.

     Section 2.3 Principles Governing Business Conduct. In support of the
critical success factors set forth in Section 2.1 and Section 2.2, the Parties
shall conduct business in the manner set forth below:

         (a) Communication between the Parties shall be accurate, timely,
complete and concise. The Parties shall provide information that is meaningful
and not hold such information as leverage against one another.

         (b) The Parties shall endeavor to resolve issues and complete
negotiations at the lowest appropriate management levels within their respective
organizations. When escalation of an issue to a more senior management
representative is warranted, the Parties shall jointly escalate such issue.

         (c) The Parties shall strive continuously to improve business processes
and technology standards.

         (d) Nortel shall identify and explore applications of new technologies.
Accordingly, technological innovations in relevant substantive fields shall be
constantly monitored

                                       12

<PAGE>   19

and reviewed by Nortel and discussed with Mirror for applicability to the
Project, both within and outside of the context of the [***].

         (e) The intent of the Parties is to share, as set forth herein or
otherwise mutually agreed by the Parties, the risks and benefits resulting from
business activities under this Agreement.

     Section 2.4 Purchase Commitment.

         (a) For purposes of this Agreement, "INFRASTRUCTURE EQUIPMENT AND
SERVICES" means wireless local access infrastructure Nortel Equipment and
related Nortel Services provided on a Turnkey basis, including all Nortel
Services required to engineer, furnish and install such Equipment and to achieve
Final Acceptance with respect thereto, in each case identified as such in
Schedule 7.3(a).

         (b) [***]

         (c) [***]

                                   ARTICLE III
                 TERM; CONDITION PRECEDENT; SUSPENSIVE CONDITION

     Section 3.1 Term. The term of this Agreement (the "TERM") shall be five (5)
years from the Effective Date, unless terminated earlier pursuant to Article
XXI, subject to renewal upon the mutual agreement of the Parties.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       13

<PAGE>   20

     Section 3.2 Effective Date. For the purposes of this Agreement, the date
that is the later of (a) the date on which the Parties execute the Term Sheet
and (b) the date on which the Parties execute this Agreement is referred to as
(the "EFFECTIVE DATE").

     Section 3.3 Suspensive Conditions. In the event that the Parties fail (i)
to complete all required due diligence, and (ii) to receive all required
corporate authorizations, in each case in respect of the Financing Facility, by
July 31,1999, unless otherwise agreed by the Parties, this Agreement shall
terminate automatically and be of no further force and effect, without liability
for default.

                                   ARTICLE IV
                 SCOPE OF AGREEMENT AND TURNKEY RESPONSIBILITIES

     Section 4.1 Scope of Agreement. Pursuant to the Scope of Work and subject
to the terms and conditions of this Agreement, Nortel agrees to supply to Mirror
and Mirror agrees to purchase from Nortel, Nortel Equipment and Nortel Services.
In addition, Nortel shall consider in good faith any request to supply any other
Equipment and/or Services in accordance with the terms and conditions of this
Agreement.

     Section 4.2 Turnkey Concept. Nortel shall manage and oversee the overall
development and implementation of the Network (Nortel's "TURNKEY"
responsibilities) in accordance with the terms of this Agreement including,
without limitation, the Scope of Work, the Time Schedule, the Specifications and
as specified in greater detail in Sections 4.3 through 4.6.

     Section 4.3 Turnkey Network. Nortel's responsibilities with respect to
implementing the Network as a whole (as detailed more fully in the
Responsibility Matrix) shall encompass the Project Management Services and,
without limitation, the following:

     [***]

     Section 4.4 Turnkey Switch Service Areas. Nortel's Turnkey responsibilities
with respect to implementing each Switch Service Area or Other Purchase, as the
case may be (as detailed more fully in the Responsibility Matrix), shall
encompass, without limitation:

     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       14

<PAGE>   21

         [***]

     Section 4.5 Turnkey Systems. Nortel's Turnkey responsibilities with respect
to implementing each System (as detailed more fully in the Responsibility
Matrix) shall encompass, without limitation:

         [***]

     Section 4.6 Modification of Turnkey Responsibilities. During the Term,
Mirror may, upon consultation with Nortel, modify the Responsibility Matrix for
the Project such that Mirror assumes a greater role in the management of the
Project, thereby modifying the Turnkey nature of the Project and Nortel's
obligations hereunder. Mirror agrees to provide Nortel with three (3) months'
notice prior to implementing any such modification.

     Section 4.7 Nortel's Subcontractors. Nortel may subcontract the manufacture
of Nortel Equipment and the provision of Nortel Services as it deems
appropriate, subject to Section 24.1 and to the following provisions:

         (a) All Subcontractors must have a demonstrated track record of (i)
performing world-class quality work, (ii) reliability and (iii) experience in
performing the relevant tasks for which such Subcontractors are contracted.

         (b) Prior to engaging any Prime Subcontractor, Nortel shall first
notify Mirror and obtain the consent of Mirror to the engagement of such Prime
Subcontractor.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       15

<PAGE>   22

     Section 4.8 Subcontractor Management.

         (a) [***]

         (b) Nortel shall be and remain fully responsible to Mirror for
providing the Equipment and Services in accordance with the terms and conditions
of this Agreement irrespective of [***] the performance of Subcontractors, or
any of their respective employees, agents, representatives and consultants.

         (c) Nothing contained herein shall be interpreted to create any
contractual or labor relationship between any Subcontractor and Mirror, except
to the extent such relationship is created by a direct contract between Mirror
and such Subcontractor. [***] Nortel shall be fully responsible to Mirror for
the acts and omissions of Subcontractors contracted by it [***] and Nortel
shall indemnify, defend and hold harmless Mirror against any and all Losses
arising out of or related to any acts, omissions or default by or on behalf of
any Subcontractor in connection with its or Nortel's obligations under this
Agreement.

         (d) Mirror shall have the right to cause Nortel to dismiss from the
Project any Subcontractor engaged by Nortel [***] if, in Mirror's reasonable
judgment, such Subcontractor (or any of its employees or Subcontractors) is not
performing in a competent, workmanlike and professional manner and in accordance
with Mirror's policies governing employee conduct and Prudent Industry
Practices, upon written notice given to Nortel at least thirty (30) days in
advance of the intended date for such dismissal. Notwithstanding the foregoing
sentence, if Nortel reasonably deems that any Prime Subcontractor whose
dismissal Mirror requests must complete its work under any then outstanding
Order Document prior to its dismissal (in order to avoid any delay in the
performance of Nortel's obligations under the Time Schedule), Nortel shall be
allowed to maintain such Prime Subcontractor until such work then outstanding is
completed. Such dismissal shall in no way release Nortel from its obligations
and responsibilities under this Agreement.

     Section 4.9 Specifications. The Equipment and Services supplied or
furnished by Nortel under this Agreement shall be of world-class quality, shall
conform to the Specifications set out in Schedule 4.9 and shall comply with all
applicable Laws and Prudent Industry Practice.

     Section 4.10 Technical Services Agreement/INPI Registration. To the extent
certain Nortel Services under this Agreement constitute technical assistance
performed by engineers or technicians that are not resident in Brazil ("IMPORTED
SERVICES"), the Parties have agreed to execute

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       16

<PAGE>   23

as of the date hereof a Technical Services Agreement, substantially in the form
contained in Schedule 4.10 (the "TECHNICAL SERVICES AGREEMENT"). Mirror and
Nortel shall cooperate in registering the Technical Services Agreement with the
Brazilian National Institute of Industrial Property to allow the remittance by
Mirror of amounts due hereunder to Nortel for any such Nortel Services. In the
event of any conflict between the provisions of this Agreement and any provision
in the Technical Services Agreement, the provisions of this Agreement shall
prevail.

                                    ARTICLE V
              ORDER, DELIVERY, TITLE PASSAGE AND IMPORT PROCEDURES

     Section 5.1 Order Procedures.

         (a) Schedule 5.1(a) sets forth the procedure agreed to by the Parties
for the purchases to be made under this Agreement.

         (b) In the event of any inconsistency between the terms and conditions
contained in this Agreement and the terms and conditions of any Order Document
or other written agreement executed by the Parties, the terms of this Agreement
shall prevail unless such Order Document or other written agreement expressly
purports to modify such terms.

         (c) Except as otherwise provided for in Sections 2.4 and 4.3 - 4.6,
only an Order Document duly executed by Mirror and accepted by Nortel as
provided in this Article V shall constitute a firm commitment to purchase on the
part of Mirror and a firm commitment to supply or provide the subject Equipment
or Services on the part of Nortel.

     Section 5.2 Delivery of Certain Equipment.

         (a) Nortel shall ensure that the RSS Equipment and other Nortel
Equipment or Scope Equipment being supplied hereunder, the installation of which
is not included within Nortel's responsibilities hereunder ("MIRROR-INSTALLED
EQUIPMENT"), is suitably packed and shall take measures to protect the
Mirror-Installed Equipment from moisture, rain, rust, corrosion and shock
according to the different shapes, special features, characteristics and
requirements of such Mirror-Installed Equipment. Nortel shall pack, mark and
ship all Mirror-Installed Equipment in accordance with any and all common
carrier requirements. Mirror may reject any Delivery of Mirror-Installed
Equipment that does not conform to the terms of this Agreement or the applicable
Order Document.

         (b) All of the RSS Equipment shall be shipped in complete sets, as
identified in Schedule 7.3(a), together with any Tools and material for
installation. No payment shall be made by Mirror for RSS Equipment not sent in
complete sets unless Delivery of incomplete sets has been agreed to by the
Parties.

         (c) Unless otherwise specified in the applicable Order Document,
Mirror-Installed Equipment shall be Delivered to Mirror's Warehouse.

     Section 5.3 Title Passage and Risk of Loss of Equipment.

                                       17

<PAGE>   24

         (a) Subject to Mirror's right to reject any Nortel Equipment or Scope
Equipment that does not conform to the Specifications, title to and risk of Loss
of the Nortel Equipment or Scope Equipment, as the case may be (other than the
Mirror-Installed Equipment), shall pass to Mirror upon the earlier of (i)
Provisional Acceptance and (ii) 120 days from the date of shipment (in the case
of Equipment other than Imported Equipment) or customs clearance (in the case of
Imported Equipment), as the case may be.

         (b) Title to and risk of Loss of the Mirror-Installed Equipment shall
pass to Mirror upon Delivery.

         (c) Title to Nortel's intellectual property, including, without
limitation, Software, patents, copyrights, trademarks and tradenames, shall not
be conveyed to Mirror at any time.

         (d) Nortel shall indemnify, defend and hold harmless Mirror from and
against any Loss that occurs with respect to any Nortel Equipment or Scope
Equipment prior to the passage of the risk of Loss, as provided in this Section
5.3.

     Section 5.4 Import Procedures for [***].

         (a) [***] Nortel shall be solely responsible for and shall provide
all administrative, logistic, compliance, customs clearance and other support
services related to [***] other than any required signatures of, and
delegation of powers by, Mirror and the physical payment of applicable import
duties and taxes.

         (b) Nortel shall take all reasonable steps to [***] through
appropriate equipment configuration and other such measures.

                                   ARTICLE VI
                                  TIME SCHEDULE

     Section 6.1 Perform to Schedule.

         (a) The Parties shall adhere to the schedule of milestones set forth in
Schedule 6.1 or to any amendment or replacement thereof as well as to the
schedule of milestones set forth in each Order Document (each, as applicable,
the "TIME SCHEDULE") for performance of their respective responsibilities set
forth in the Responsibility Matrix and shall use reasonable best efforts to
minimize all delays. In no event shall the date for any Commercial Launch
specified on the version of the Time Schedule attached hereto as Schedule 6.1 be
changed in any version/revision of the Time Schedule accompanying any Order
Document without the consent of both Parties. Notwithstanding the foregoing,
Nortel shall not be in breach of its obligations with respect to any milestone
on the Time Schedule nor be responsible for any delays or damages to the extent
that such delays or damages arise solely from the exercise by Mirror of any
discretionary right under this Agreement (other than as provided in Section
9.3(h)) in a manner that directly and unduly impedes, prevents or burdens
Nortel's ability to conform to the Time Schedule. In the event that Mirror's

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       18

<PAGE>   25

exercise of such rights unduly impedes, prevents, or burdens Nortel's ability to
conform to the Time Schedule, then the time of performance of any of Nortel's
obligations hereunder, including the obligation to meet each of the milestones
under the Time Schedule, shall be extended by the actual time of delay caused by
such event, unless the Parties otherwise agree. [***]

         (b) The Time Schedule (which, unless otherwise agreed, shall be created
using "Microsoft Project" software) will indicate the relevant time periods for
the engineering, manufacture, shipment, Delivery and receipt of the Equipment
and the provision of the Installation, testing, Commissioning, Provisional
Acceptance, Final Acceptance and all other Services.

     Section 6.2 Time Is of the Essence. Nortel specifically acknowledges and
agrees that time is of the essence in the performance of all of Nortel's
obligations set forth in this Agreement.

     Section 6.3 Anticipated Delays. Each Party shall immediately notify the
other of any anticipated delay in the performance of its obligations under this
Agreement from the date specified in the Time Schedule; provided that such
notification shall not relieve such Party of any of its obligations under this
Agreement except as otherwise specifically provided herein.

     Section 6.4 Progress Report. Nortel shall provide Mirror, on a periodic
basis as agreed by the Parties, a written report (in hard and electronic format)
showing the scheduled progress versus actual progress, giving the details of
work completed in relation to the Time Schedule. Such report shall also include
a detailed explanation of any delays and a detailed projection of when the work
shall be completed. In the event that both Parties have agreed in writing to
changes in the Time Schedule, Nortel shall provide an updated Time Schedule to
Mirror reflecting such agreement.

     Section 6.5 No Release upon Payment of Liquidated Damages. The payments of
Liquidated Damages for not achieving Provisional Acceptance or any other
milestones on time shall not release Nortel from the responsibility to continue
the Delivery of the Equipment, the completion of the Services, and its other
obligations under this Agreement.

                                   ARTICLE VII
                            PRICES AND PAYMENT TERMS

     Section 7.1 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       19

<PAGE>   26

         [***]

     Section 7.2 Import Duties; Taxes.

         (a) [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       20

<PAGE>   27
         [***]

         (d) The Parties shall cooperate to structure the purchases of Equipment
and Services hereunder in a manner that is most tax efficient for both Parties.

     Section 7.3 Prices.

         (a) The prices charged by Nortel under this Agreement for Equipment and
Services shall be as specified in Schedule 7.3(a) [***]

         (b) If the Parties are unable to agree as to Nortel's compliance
[***] then such issue shall be determined pursuant to Section 22.4.

         (c) The prices set forth in Schedule 7.3(a) (other than in respect of
Imported Equipment) are quoted, and shall be invoiced and paid, in Reais. Such
prices are quoted as of the Effective Date. To maintain the economic and
financial balance of the Agreement, such prices shall be adjusted as follows:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       21

<PAGE>   28
<TABLE>
<CAPTION>
---------------------          -------------------------------------------------
     DESCRIPTION               ADJUSTMENT CRITERIA
---------------------          -------------------------------------------------
<S>                            <C>
Equipment (other than              Adjustment by application to the price of the
Imported Equipment)            [***] every twelve (12) months from the
                               Effective Date or at shorter intervals if
                               applicable Laws so permit.
---------------------          -------------------------------------------------
Services                           Adjustment by application to the price of the
                               [***] to be applied to prices every twelve (12)
                               months from the Effective Date or at shorter
                               intervals, if applicable Laws so permit.
---------------------          -------------------------------------------------
</TABLE>

         (d) The prices set forth in Schedule 7.3(a) applicable to Imported
Equipment are quoted, and shall be invoiced and paid, in [***] and shall not
be subject to adjustment for inflation or currency fluctuations.

         (e) Schedule 7.3(a) sets forth a mechanism under which Mirror may earn
credits ("VOLUME CREDITS") applicable to the purchase of Nortel Equipment based
on the [***]

         (f) [***]

     Section 7.4 Price Basis.

         (a) The prices set forth on Schedule 7.3(a) for Imported Equipment
shall be Carriage Paid to the Sites, as defined in the ICC Incoterms 1990
[***].

         (b) The prices set forth on Schedule 7.3(a) for all Equipment other
than Imported Equipment shall be on the basis of Carriage and Insurance Paid to
the applicable Sites, as defined in the ICC Incoterms 1990 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       22

<PAGE>   29

[***]

         (c) In the event of any conflict between the terms of this Agreement
and the assignment of responsibilities and liabilities between the Parties
pursuant to Incoterms 1990, the express terms of this Agreement shall prevail.

     Section 7.5 Invoices.

         (a) Mirror shall have no obligation to pay Nortel for any amounts under
this Agreement, unless such amounts are expressly authorized by this Agreement
or an Order Document and Mirror has received an invoice for such charges.

         (b) Nortel shall invoice Mirror for amounts due in accordance with the
schedule set forth in Section 7.6(a). Invoices, together with all supporting
documentation, must be received by Mirror within five (5) days of the date of
invoicing. If Mirror has not received any invoice within such five (5) day
period, Nortel shall reissue the invoice in question dated as of the date of
such reissuance. Notwithstanding the foregoing, no invoice shall be required to
be issued in respect of payments of interest due in accordance with Section
7.6(f)(iv).

         (c) Each invoice rendered under this Agreement shall refer to the Order
Document number and identify the specific payment event in compliance with this
Article VII, the amounts due and applicable taxes. Each invoice shall be sent to
the billing address identified in the relevant Order Document. No term or
condition of any such invoice inconsistent with this Agreement shall be binding
upon Mirror, unless such term or condition has been expressly agreed upon by
Mirror in compliance with Section 5.1 and Section 24.11.

         (d) Invoices shall be denominated [***]

     Section 7.6 Payment Terms.

         (a) Payment Schedule.

             (i) Mirror shall pay Nortel for Equipment and Services provided
                 hereunder in respect of SSA Purchase Orders for the
                 engineering, furnishing, Installation and Commissioning of the
                 Switch and/or first Cell Sites in any SSA (the "INITIAL BUILD")
                 of each Switch Service Area and for Order Documents other than
                 in respect of the Initial Build of a Switch Service Area or for
                 a System ("OTHER PURCHASE") in accordance with the following
                 schedule:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       23

<PAGE>   30

<TABLE>
<CAPTION>
------------------------------------------              --------------------------------   -------------------
             PAYMENT MILESTONE                          PERCENTAGE FOR INITIAL BUILD OF       PERCENTAGE FOR
                                                        SSAS OTHER THAN RIO DE JANEIRO &     INITIAL BUILD OF
                                                          BELO HORIZONTE AND FOR OTHER       RIO DE JANEIRO &
                                                                   PURCHASES               BELO HORIZONTE SSAs
------------------------------------------              --------------------------------   -------------------
<S>                                                                   <C>                          <C>
Acceptance by Nortel of SSA Purchase Order                           [***]                        [***]
or Other Purchase
------------------------------------------              --------------------------------   -------------------
Provisional Acceptance                                               [***]                        [***]
------------------------------------------              --------------------------------   -------------------
Commercial Launch                                                    [***]                        [***]
------------------------------------------              --------------------------------   -------------------
Final Acceptance                                                     [***]                        [***]
------------------------------------------              --------------------------------   -------------------
TOTAL                                                                [***]                        [***]
------------------------------------------              --------------------------------   -------------------
</TABLE>

             (ii)  Mirror shall pay Nortel for Mirror-Installed Equipment
                   provided hereunder [***] of such Mirror-Installed
                   Equipment.

             (iii) Mirror shall pay Nortel for training provided by Nortel
                   pursuant to Section 9.3(d) [***] upon the completion of the
                   Course in question or delivery of the training materials, as
                   the case may be.

             (iv)  With respect to an SSA Purchase Order, in the event that
                   Mirror elects to permit Partial Provisional Acceptance or
                   Partial Commercial Launch, the payment otherwise applicable
                   upon Provisional Acceptance or Commercial Launch, as the case
                   may be, in the table set forth at Section 7.6(a)(i) shall be
                   [***].

             [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       24

<PAGE>   31

                      [***]

         (b) Payment Due Date. All payments to be made by Mirror to Nortel under
the terms of this Agreement shall be due and payable within the thirty (30) days
immediately following the date of the invoice (except that in the event the
thirtieth day does not fall on a Business Day,

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       25

<PAGE>   32

then payment shall be due on the next Business Day following such date), unless
a different payment due date is required in order to accommodate drawing
conditions of the Financing Facility (including conditions relating to required
minimum draw amounts).

         (c) Late Payments. In the event that Mirror does not make payment on
invoices within the time prescribed in Section 7.6(b), Mirror shall pay interest
on the outstanding balance of the relevant invoice(s), at a rate of [***] per
annum (the "INTEREST RATE") from the day on which payment was due to the day on
which it is made, plus, in the case of principal amounts due in Brazilian Reais,
a [***] late payment fee.

         (d) Modality of Payments. Payments shall be made by check, bank draft
or acceptable electronic transfer of funds to the accounts, or in compliance
with instructions, that Nortel shall specify on each invoice, or in accordance
with any applicable payment mechanism provided for in the Financing Facility, or
as otherwise mutually agreed by the Parties.

         (e) Imported Equipment. With respect to Imported Equipment, Nortel
covenants that no payment by Mirror to Nortel shall be required, due or payable
(other than any amounts due on submission of the relevant Order Document) prior
to the dates corresponding to the payment milestones established in Section
7.6(a) and that all invoices shall reflect such requirement.

         (f) [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       26

<PAGE>   33

                   [***]

     Section 7.7 Calculation of Interest. Interest applicable to any amount
payable hereunder shall be calculated for the actual number of days elapsed on
the basis of a year consisting of three hundred and sixty (360) days.

     Section 7.8 Payment Disputes.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       27

<PAGE>   34

         (a) In the event that Mirror disputes all or part of any invoice,
Mirror shall deliver to Nortel a notice specifying the basis for the dispute.
Mirror shall pay the undisputed amount of such invoice pursuant to Section
7.6(b) and Section 7.6(d) but may withhold the disputed amount pending
resolution of such dispute.

         (b) If the Parties are able to resolve the dispute within twenty (20)
Business Days of the receipt by Nortel of the notice specified in Section
7.8(a), any amount owing to Nortel or to Mirror shall be reflected as a charge
or a credit, as the case may be, adjusted by the late payment charges set forth
in Section 7.6(c) on the next invoice (unless the dispute is with respect to
amounts set forth on the final invoice, in which case the Party owing any
amounts shall pay such amounts within five (5) Business Days of the resolution
of the dispute).

         (c) If the Parties are unable to resolve the dispute within twenty (20)
Business Days of the receipt by Nortel of the notice specified in Section
7.8(a), the dispute shall be resolved as provided in Article XXII.

         (d) Within fifteen (15) Business Days of the resolution of a payment
dispute pursuant to Article XXII, (i) Mirror shall pay any amounts determined to
be owing by it, together with interest accrued at the Interest Rate (calculated
pro rata on a daily basis) from the date on which such payment was due pursuant
to Section 7.6(b) until paid in full; and (ii) Nortel shall refund to Mirror any
amounts determined to have been overpaid, if applicable, together with interest
accrued at the Interest Rate (calculated pro rata on a daily basis) from the
date that such overpayment was made until repaid in full to Mirror.

     Section 7.9 Financing.

         (a) Nortel shall, subject to the provisions of Sections 3.2 and 3.3,
provide vendor debt financing for the Equipment and Services supplied to Mirror
under this Agreement on competitive market terms [***] Financing will be
provided on the terms set out in the Term Sheet.

         (b) Except as otherwise provided in Section 7.6(f), it shall be a
condition precedent to Mirror's obligations to pay any amounts to Nortel and
Nortel's obligation to provide Equipment and Services under this Agreement that
the Parties execute the Financing Agreement on the terms and conditions set
forth in the Term Sheet, unless otherwise agreed.

     Section 7.10 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       28

<PAGE>   35

                                  ARTICLE VIII
             SUPPLY AGREEMENT ADMINISTRATION AND PROJECT MANAGEMENT

     Section 8.1 Project Management.

         (a) Project Management Services. Nortel shall perform the Project
Management Services specified on Schedule 8.1(a).

         (b) Nortel's Project Manager. Nortel shall, during the Term, appoint a
manager for the Project (the "NORTEL PROJECT MANAGER") to coordinate Nortel's
provision of Project Management Services who shall:

             (i)   be fully conversant with the background of the Project;

             (ii)  be empowered and have authority to make day to day decisions
                   regarding the Project, while having full control of Nortel's
                   applicable assets and Project personnel in Brazil;

             (iii) maintain and update the Time Schedule and deliver the Time
                   Schedule as revised from time to time to the Mirror Project
                   Manager;

             (iv)  ensure compliance with the Time Schedule;

             (v)   maintain the closest possible cooperation with the Mirror
                   Project Manager;

             (vi)  reside in Brazil and be available at Project Sites as
                   reasonably requested; and

             (vii) be fluent in English and have a working knowledge of
                   Portuguese.

         (c) Mirror Project Manager. Mirror shall, during the Term of this
Agreement, appoint a manager for the Project (the "MIRROR PROJECT MANAGER") to
be the liaison with the Nortel Project Manager, who shall:

             (i)   be fully conversant with the background of the Project;

             (ii)  be empowered and have authority to make day-to-day decisions
                   regarding the Project and its personnel;

             (iii) ensure compliance with the Time Schedule;

             (iv)  maintain the closest possible cooperation with the Nortel
                   Project Manager;

             (v)   be available at Project Sites as reasonably requested; and

                                       29

<PAGE>   36

             (vi)  be fluent in English and have a working knowledge of
                   Portuguese.

         Section 8.2 Progress Review Meeting.

         (a) During the term of implementation of the Network, both the Mirror
Project Manager and the Nortel Project Manager shall hold Project review
meetings at such intervals to be agreed upon by the Parties to review, monitor
and control the progress of the implementation of the Network in all its aspects
in conformity with the Specifications and the Time Schedule.

         (b) If Nortel or Mirror, as the case may be, deem it unlikely that it
will be able to fulfill all of its obligations on the respective dates set out
in the Time Schedule, then such Party shall request a meeting to determine what
action is required. The Nortel Project Manager and the Mirror Project Manager
shall each have been delegated appropriate authority from Nortel and Mirror,
respectively, to develop and execute any action plan required to enable the
Parties to fulfill their respective obligations under this Agreement. Any action
plan implemented pursuant to the terms hereof shall be without prejudice to any
right or remedy Mirror or Nortel may have under this Agreement.

         (c) Minutes of the meetings contemplated by this Section 8.2 shall be
kept in English or Portuguese as mutually agreed by the Parties.

     Section 8.3 Agreement Administration by Mirror. The Mirror Project Manager
shall be responsible for administering the Agreement and ensuring the necessary
coordination with other Mirror departments. He shall be responsible for
coordinating the Project implementation between Mirror and Nortel; reviewing and
approving all quotations, invoices and inventory of Equipment Delivered;
monitoring Time Schedules; issuing Order Documents, monitoring the overall
progress of the Project; coordinating with Nortel to conclude agreement on the
Acceptance Test Procedures as provided in Section 9.3(a); providing Nortel with
clarification on the technical specification requirements; and approving and
issuing Change Orders. The Mirror Project Manager's territorial responsibilities
shall be for all areas covered by the Agreement. He may designate, as may be
required for certain periods of time, project managers for specific Switch
Service Areas, regions or Systems and define their administrative, managerial,
territorial and authorization responsibilities, which he will communicate in
writing to the Nortel Project Manager.

     Section 8.4 Nortel Employees. Mirror may, at any time, cause Nortel to
dismiss an employee from the Project if, in Mirror's reasonable judgment, such
employee is not performing in a competent, workmanlike and professional manner
and in accordance with Mirror's policies governing employee conduct and Prudent
Industry Practices. Any delays or costs resulting from the replacement of
Nortel's employee shall be borne by Nortel.

                                       30

<PAGE>   37

                                   ARTICLE IX
                          DIVISION OF RESPONSIBILITIES

     Section 9.1 Joint Responsibilities.

         (a) Responsibility Matrix. Without limiting the generality of any of
the provisions of this Agreement, the respective rights and division of
responsibilities of Mirror and Nortel are set forth in the Responsibility Matrix
attached as Schedule 9.1(a). Mirror shall discharge those responsibilities
identified as those of Mirror, including Mirror's portion of responsibilities
that are to be jointly performed by Mirror and Nortel. Nortel shall discharge
those responsibilities identified as those of Nortel, including Nortel's portion
of responsibilities that are to be jointly performed by Nortel and Mirror.

         (b) Punchlist. Both Parties will agree on items and issues to be placed
on each Punchlist. Nortel shall in good faith resolve as quickly as possible the
items placed on each Punchlist.

     Section 9.2 Mirror Responsibilities.

         (a) Costs. Mirror shall bear the costs of its own legal fees,
interconnection facilities, telephone and utility charges and other services and
items being supplied by Mirror under this Agreement.

         (b) Engineering Information. Mirror shall:

             (i)   Provide to Nortel necessary engineering information
                   reasonably requested by Nortel and in accordance with the
                   Responsibility Matrix and the Time Schedule;

             (ii)  Provide, upon reasonable request, System usage information
                   where Mirror's analysis of System requirements has been
                   requested by Nortel or is otherwise required by a specific
                   provision of this Agreement in order for Nortel to discharge
                   its obligations under this Agreement and where the
                   information requested is reasonably necessary for such
                   purposes.

         (c) O&M. Mirror shall assume responsibility for the lawful and proper
O&M of the Network.

         (d) Export Controls. Where required by the country of origin of the
Equipment, Mirror shall comply with all applicable export Laws with respect to
the requirements of which Nortel has advised Mirror in writing. Specifically,
but without limitation, where the Equipment is subject to export controls and
Nortel has advised Mirror in writing with respect to the requirements of such
export controls, Mirror agrees that it will not resell or re-export Equipment or
technical data in any form without obtaining appropriate export or re-export
licenses from the applicable exporting country government.

         (e) Permits. Mirror shall be responsible for obtaining all Permits
(other than permits specifically required to be obtained by Nortel or any
Subcontractor) required for implementation of the Network, including but not
limited to, Site building permits, zoning

                                       31

<PAGE>   38

variances and the like from appropriate Authorities. Pursuant to the
Responsibility Matrix, Nortel shall provide Mirror with all Permit applications
for Permits that Mirror is responsible to obtain pursuant to this Section 9.2(e)
on an accurate and timely basis to enable Mirror to submit them to the
appropriate Authority.

         (f) Other Obligations. Mirror shall perform all of its other
obligations pursuant to this Agreement, including the following:

             (i)   allow Nortel's personnel employed in the work reasonable
                   access to the Sites at all times, and to permit the use by
                   such personnel of all routes, roadways and ramps under the
                   control of Mirror when such access and use are necessary for
                   the proper performance of Nortel's obligations hereunder;

             (ii)  permit all of Nortel's personnel employed in the work
                   hereunder to use at all times such portions of existing
                   plants or equipment under Mirror's control as are reasonably
                   necessary for the proper completion of such work, as long as
                   such use will not interfere with Mirror's business
                   operations;

             (iii) take reasonable security measures to safeguard all Nortel
                   Equipment and Scope Equipment on Mirror's premises against
                   all damages or Loss caused by Mirror's employees from the
                   Delivery until the date that the risk of Loss of such
                   Equipment transfers to Mirror pursuant to Section 5.3;

             (iv)  ensure that Mirror's personnel carrying out activities at the
                   Sites do not interfere with the progress of Nortel's
                   obligations hereunder;

             (v)   where applicable, take all necessary actions in accordance
                   with the relevant Responsibility Matrix to ensure that the
                   Sites are ready and available for commencement of
                   Installation;

             (vi)  make available a representative to acknowledge receipt of the
                   Equipment; and

             (vii) bear any additional costs, including, without limitation,
                   freight, insurance, storage and taxes, if applicable,
                   relating to a Change Order that requires delivery of
                   Equipment to a Site other than the Site specified in the
                   Order Document to which such Change Order pertains.

     Section 9.3 Nortel Responsibilities. Without limiting any other obligations
of Nortel under this Agreement, Nortel shall have the following
responsibilities:

         (a) Acceptance Procedure. Nortel shall adhere to the Acceptance
procedures, including the Acceptance Test Procedures, each as set forth in
Schedule 9.3(a).

                                       32

<PAGE>   39

         (b) New Products or Services. Nortel shall make new and upgraded
Equipment and Services available to Mirror as and when they become available.
Where such new or upgraded Equipment or Services are developed by Nortel, Nortel
shall, subject to Section 14.2, negotiate the price [***] and delivery schedule
in good faith.

         (c) Retrofits. Nortel shall, with Mirror's prior written consent,
provide a retrofit package to permit the Network to comply with [***]

         (d) Training. Nortel shall provide training courses for planning,
installation and O&M of Equipment and Services purchased under this Agreement.
[***] Course listings, content and schedules are set forth in Schedule 9.3(d).

         (e) Cooperation and Coordination With Other Vendors. Nortel recognizes
that Mirror will be developing the Network using vendors in addition to Nortel
including, without limitation, Qualcomm. Nortel shall, in engineering and
designing the Network and the Systems comprising the Network, cooperate and
coordinate its activities with such other vendors such that the Network shall
function in a seamless manner without regard to which vendor supplied a
particular Equipment or Service.

         (f) Legal and Safety Standards. Nortel is responsible for assuring that
proper safety measures are taken to avoid accidents and that all work performed
is done in accordance with the relevant health and occupational safety Laws,
whether the work is performed by Nortel or its Subcontractors. Nortel shall be
responsible, at its own expense, for ensuring that all necessary procedures are
in place and supervision is provided to ensure the safety of all persons who may
at any time or for whatever reason be present on any of the Sites as part of
Nortel's provision of the Services, including, without limitation, the
Installation Services.

         (g) Site Security. Up to Commercial Launch, Nortel shall ensure the
security of the Sites in a manner consistent with Mirror's security requirements
by providing security Services at the prices set forth in Schedule 7.3(a) and
shall ensure that entry to such Sites is properly monitored and only authorized
persons are permitted to enter and remain on any of such Sites. Nortel shall
allow Mirror or any person authorized by Mirror to inspect any Site at any time
while Nortel is providing Services on the Site.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       33

<PAGE>   40

         (h) Inspection. Mirror and its employees, agents and representatives
shall at all times have the right to inspect the performance by Nortel of the
design, engineering, construction, Installation, testing and Acceptance, whether
in the process of being prepared or executed. If, in Mirror's reasonable
judgment, the work does not conform to the terms of this Agreement, the
Specifications and all applicable Laws, Mirror shall have the right to order the
suspension of such work; provided that Mirror's exercise of such right shall not
be deemed to be an "exercise by Mirror of any discretionary right under this
Agreement" giving rise to an extension of the Time Schedule under Section
6.1(a).

         (i) Operation and Maintenance Support. Nortel, [***], shall allocate a
total of [***] of support Services by qualified technical personnel to be used
by Mirror to support the Network (including all Switch Service Areas) during the
[***] of operation, commencing on the Soft Launch of the first Switch Service
Area (or, if there is no Soft Launch, on Provisional Acceptance of such Switch
Service Area), with the actual utilization of such support resources to be
determined by agreement of the Parties. The personnel [***] to provide such
support Services shall include (A) O&M switch specialists and (B) qualified O&M
cell sites and transmission specialists. [***]

         (j) Tools and Test Equipment. Unless otherwise specifically provided in
this Agreement, Nortel shall provide all tools and testing equipment (the
"TOOLS") required for the implementation of the Network under this Agreement.
Unless otherwise specifically provided in this Agreement, Nortel shall provide
and pay for all materials, labor, Tools, Equipment, transportation and other
facilities necessary for the performance and completion of the Project. Nortel
shall pay all charges for any special handling of the Equipment. All Tools used
during the implementation of the Network that (i) have been purchased and paid
for by Mirror as specified on an Order Document, and (ii) have been purchased by
Nortel specifically for use in implementing the Project and for which Nortel has
included the full, undepreciated or unamortized cost in the amounts being
charged to Mirror pursuant to this Agreement, shall become the property of
Mirror at the earlier of Commercial Launch or Final Acceptance.

         (k) [***]

         (l) Nortel Responsible for Incorrect Delivery; Excess Items. If any
Nortel Equipment or Scope Equipment is delivered to a point other than the one
set forth in an Order Document, any additional expenses incurred in Delivery of
such Equipment to the correct point of delivery and the risk of transportation
shall be borne by Nortel. Nortel is also responsible for items delivered in
excess of those required in the relevant Order Document or any excess
installation material.

         (m) Advertising. Nortel shall assist Mirror in its advertising and
promotion efforts and shall cooperate with Mirror to establish joint advertising
and promotion programs.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
                                       34

<PAGE>   41

         (n) Acceptance of Sites. Nortel shall use its best efforts to approve
or disapprove of any candidate location for construction of a Cell Site at the
time of the site visit to such location, or within one (1) Business Day
thereafter.

         (o) [***]

     Section 9.4 [***]

                                    ARTICLE X
                      INDEMNIFICATION, DAMAGES, AND DELAYS

     Section 10.1 General Indemnity (Mirror).

         (a) General. Nortel shall indemnify, defend and hold harmless Mirror
and its directors, officers, representatives, agents, servants, Subcontractors,
employees, successors and permitted assigns (collectively, "MIRROR INDEMNIFIED
PERSONS") from any and all Losses (including damage to property owned by third
parties) arising out of or in connection with this Agreement to the extent such
damages were caused by the breach of this Agreement by Nortel or the negligent
acts or omissions, willful misconduct or strict liability of Nortel or any
Nortel Representative.

         (b) Personal Injury (Mirror). Nortel shall indemnify, defend and hold
harmless the Mirror Indemnified Persons from any and all Losses on account of
death or personal injury (whether to Mirror Indemnified Persons or to third
parties) arising out of or in connection with this Agreement to the extent that
such injury or death was caused by the negligent acts or omissions, willful
misconduct or strict liability of Nortel or any Nortel Representative.

         (c) Claims. In any claim for indemnification brought pursuant to this
Agreement:

             (i)   The Mirror Indemnified Persons shall promptly notify Nortel
                   upon (A) receipt of notice of the commencement of a claim by
                   a third party for which indemnification is sought pursuant to
                   this Agreement, (B) becoming aware of a claim (other than one
                   covered by clause A, hereof) or facts supporting the
                   likelihood of a Loss, in each case eligible for
                   indemnification pursuant to this Agreement or (C) the
                   occurrence of any material event or change with respect to an
                   ongoing claim, in writing.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       35

<PAGE>   42

             (ii)  In case any such claim is brought against any Mirror
                   Indemnified Person, and it notifies Nortel of the
                   commencement thereof, or in respect of any ongoing action,
                   Nortel will be entitled to participate therein and to assume
                   the defense thereof. Subsequent to such assumption of
                   defense, Nortel shall not be liable to the Mirror Indemnified
                   Person for any legal or other expenses subsequently incurred
                   by the Mirror Indemnified Person, other than the reasonable
                   expenses of monitoring such defense, and shall control the
                   defense of such claim unless the Mirror Indemnified Person
                   reasonably believes there to be a conflict between its
                   interests and those of Nortel, in which case the Mirror
                   Indemnified Person may employ its own counsel for such
                   defense and the reasonable costs of such counsel as well as
                   other costs reasonably incurred in such defense shall be
                   borne by Nortel. Whether or not Nortel shall have assumed the
                   defense of a claim for which the Mirror Indemnified Person is
                   entitled to be indemnified, the Mirror Indemnified Person
                   shall not admit any liability with respect to, settle,
                   compromise or discharge such claim without the prior written
                   consent of Nortel, which consent shall not unreasonably be
                   withheld, conditioned or delayed.

             (iii) The Mirror Indemnified Person shall, at Nortel's expense,
                   cooperate and consult with Nortel in the defense of such
                   claim and shall, upon request, provide all reasonable
                   information and assistance for defense against any such suit,
                   claim or demand.

     Section 10.2 Infringement Indemnity.

         (a) Defense Against Infringement Claims. In any claim, action, suit or
legal arbitration, mediation or other proceedings, Nortel, at Nortel's expense,
shall indemnify, defend and hold harmless Mirror, its directors, officers,
agents, employees, successors and permitted assigns, against any claim that
Nortel's Equipment, including Software, and Services supplied hereunder
(collectively, the "INDEMNIFIED EQUIPMENT") infringes any patent or copyright,
trademark, trade secret or other tangible or intangible property right, whether
Brazilian or foreign (collectively, "PROPRIETARY RIGHTS") by reason of Mirror's
use of such Proprietary Rights in furnishing telecommunication services in
accordance with the Specifications. Nortel shall reimburse Mirror its actual
reasonable costs for personnel (including legal counsel and experts) and
resources engaged in providing information or assistance requested by Nortel or
in defending such claim, action, suit, legal arbitration, mediation or other
proceeding. Nortel shall indemnify, defend and hold harmless Mirror, its
officers, agents, employees, Subcontractors, successors and permitted assigns
against any and all Losses on account of such alleged infringement or violation.

         (b) Nortel to Act. If Mirror's use of the Indemnified Equipment is
enjoined, Nortel shall, at its expense, either procure the right for Mirror to
continue using such Indemnified Equipment or replace or modify the Indemnified
Equipment so that such Indemnified Equipment becomes non-infringing, whichever
can be accomplished more quickly. If none of the foregoing options is possible,
Nortel will remove the enjoined Indemnified Equipment and refund to Mirror

                                       36

<PAGE>   43

any amounts paid to Nortel, less a reasonable charge for any actual period of
use by Mirror. Should the Indemnified Equipment so removed be a component of the
Network and such removal causes the Network not to meet the [***] or any other
of the Specifications, then Nortel shall be liable for restoring the Indemnified
Equipment to the [***] or other such Specification and for all Losses caused to
Mirror resulting from such removal.

         (c) Information Supplied by Mirror. Nortel shall have no liability for
any claim of infringement of any Proprietary Rights to the extent that such
claim (i) arises directly and wholly from adherence to Specifications, designs,
drawings or instructions furnished by Mirror; (ii) arises from adherence to
instructions to apply Mirror's trademark, trade name or other company
identification; (iii) resides in non-Nortel Equipment or Scope Equipment that is
furnished by Mirror to Nortel for use under this Agreement or (iv) relates to
uses of Indemnified Equipment provided by Nortel in combination with other
Indemnified Equipment furnished either by Nortel or other Persons, which
combination was not Installed, recommended or otherwise approved by Nortel.

     Section 10.3 [***]

     Section 10.4 Failure to Meet Time Schedule (Liquidated Damages).

         (a) With respect to Equipment and Services for the Initial Build of the
first and second Switch Service Areas (Rio de Janeiro and Belo Horizonte):

             (i)   In the event that, at the sole discretion of Mirror,
                   Commercial Launch with respect to the Initial Build of the
                   first or second Switch Service Areas occurs after the
                   relevant due date set forth in the Time Schedule because of
                   actions directly attributable to Nortel including, without
                   limitation, Nortel's failure to perform its obligations
                   hereunder in the manner and at the times specified in this
                   Agreement, Nortel shall pay to Mirror Liquidated Damages
                   [***] equal to [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       37

<PAGE>   44

             (ii)  In the event that on the relevant due date set forth in the
                   Time Schedule (A) Mirror, at its sole discretion, elects to
                   proceed with Commercial Launch of only a portion of the
                   Equipment and Services comprising the Initial Build of the
                   first or second Switch Service Areas, and (B) the failure of
                   the other portion of the Equipment and Services to be ready
                   for Commercial Launch is due to actions directly attributable
                   to Nortel, including, without limitation, Nortel's failure to
                   perform its obligations hereunder in the manner and at the
                   times specified in this Agreement, Nortel shall pay to Mirror
                   Liquidated Damages [***] equal to [***]

         (b) With respect to Equipment and Services for the Initial Build of the
third and fourth Switch Service Areas (Recife and Fortaleza):

             (i)   In the event that, at the sole discretion of Mirror,
                   Commercial Launch with respect to the Initial Build of the
                   third or fourth Switch Service Area occurs after the relevant
                   due date set forth in the Time Schedule because of actions
                   directly attributable to Nortel including, without
                   limitation, Nortel's failure to perform its obligations
                   hereunder in the manner and at the times specified in this
                   Agreement, Nortel shall pay to Mirror Liquidated Damages
                   [***] equal to [***]

             (ii)  In the event that on the relevant due date set forth in the
                   Time Schedule (A) Mirror, at its sole discretion, elects to
                   proceed with Commercial Launch of only a portion of the
                   Equipment and Services comprising the Initial Build of the
                   third or fourth Switch Service Areas, and (B) the failure of
                   the other portion of the Equipment and Services to be ready
                   for Commercial Launch is due to actions directly attributable
                   to Nortel, including, without limitation, Nortel's failure to
                   perform its obligations hereunder in the manner and at the
                   times specified in this Agreement, Nortel shall pay to Mirror
                   liquidated damages [***] equal to [***]

         (c) With respect to Equipment and Services for the Initial Build of the
fifth and sixth Switch Service Areas (Salvador and Vitoria):

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       38

<PAGE>   45

             (i)   In the event that, at the sole discretion of Mirror,
                   Commercial Launch with respect to the Initial Build of the
                   fifth or sixth Switch Service Area occurs after the relevant
                   due date set forth in the Time Schedule because of actions
                   directly attributable to Nortel including, without
                   limitation, Nortel's failure to perform its obligations
                   hereunder in the manner and at the times specified in this
                   Agreement, Nortel shall pay to Mirror liquidated damages
                   [***] equal to [***]

             (ii)  In the event that on the relevant due date set forth in the
                   Time Schedule (A) Mirror, at its sole discretion, elects to
                   proceed with Commercial Launch of only a portion of the
                   Equipment and Services comprising the Initial Build of the
                   fifth or sixth Switch Service Areas, and (B) the failure of
                   the other portion of the Equipment and Services to be ready
                   for Commercial Launch is due to actions directly attributable
                   to Nortel, including, without limitation, Nortel's failure to
                   perform its obligations hereunder in the manner and at the
                   times specified in this Agreement, Nortel shall pay to Mirror
                   liquidated damages [***] equal to [***]

         (d) With respect to Equipment and Services other than for the Initial
Build of the first six (6) Switch Service Areas:

             (i)   In the event that, at the sole discretion of Mirror,
                   Commercial Launch with respect to any Equipment or Services
                   purchased under any Order Document other than for the Initial
                   Build of the first six (6) Switch Service Areas, occurs after
                   the relevant due date set forth in the Time Schedule because
                   of actions directly attributable to Nortel including, without
                   limitation, Nortel's failure to perform its obligations
                   hereunder in the manner and at the times specified in this
                   Agreement, Nortel shall pay to Mirror liquidated damages
                   [***] equal to [***]

             (ii)  In the event that on the relevant due date set forth in the
                   Time Schedule (A) Mirror, at its sole discretion, elects to
                   proceed with Commercial Launch of only a portion of the
                   Equipment and Services comprising any Order Document other
                   than for the Initial Build of the first six (6) Switch
                   Service Areas, and (B) the failure of the other portion of
                   the Equipment

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       39

<PAGE>   46

                   and Services to be ready for Commercial Launch is due to
                   actions directly attributable to Nortel, including, without
                   limitation, Nortel's failure to perform its obligations
                   hereunder in the manner and at the times specified in this
                   Agreement, Nortel shall pay to Mirror liquidated damages
                   [***] equal to [***]

         (e) At Mirror's option, Nortel may satisfy any and all penalties due
for failure to meet the milestones set forth in the Time Schedule for Acceptance
and/or Commercial Launch in the form of [***]

         (f) The liquidated damages specified in Section 10.4(a) through (d)
(the "LIQUIDATED DAMAGES") shall not be applicable to the extent that actions or
omissions of Mirror were the direct cause of the delays described in Section
10.4(a) through (d) ("MIRROR DELAYS"). In the event of Mirror Delays, the dates
set forth in the Time Schedule for Nortel's performance shall be adjusted to
reflect such Mirror Delays. The extent of adjustment shall be [***] as agreed
between Mirror and Nortel, and the adjustment shall be based on a review of the
relevant Nortel critical path development and deployment plans (i.e., planning,
evaluation and review technical/critical path method ("PERT/CPM") chart). Where
additional expenses are incurred by Nortel in making up for a Mirror Delay,
Nortel and Mirror shall agree on equitable adjustment in Nortel's prices to
compensate for such additional expenses.

         (g) The Parties hereby acknowledge and agree that the actual damages
that would be incurred by Mirror in the event of a failure to comply with the
Time Schedule by Nortel would be difficult to calculate and that the Liquidated
Damages provided for in this Agreement are fair and reasonable under the
circumstances.

     Section 10.5 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       40

<PAGE>   47

                                   ARTICLE XI
                                QUALITY ASSURANCE

     Section 11.1 Quality Assurance.

         (a) Without restricting the generality of the provisions of Section 9.3
and Article XIII, it is understood and agreed that Nortel has sole
responsibility for the quality of the Equipment and Services supplied or
provided hereunder.

         (b) Nortel shall deliver the Equipment and provide the Services to
Mirror in accordance with the terms and conditions of this Agreement diligently
and by competent and professional personnel.

         (c) Nortel shall maintain a quality assurance program that is adequate
to ensure a consistent level of quality in the Equipment and Services supplied
under this Agreement and to ensure that the Equipment and Services conform to
all applicable Laws, professional requirements and the Specifications.

         (d) Mirror reserves the right to conduct [***] quality assessments,
inspections or tests on the Equipment and Services in accordance with a sampling
plan jointly developed by the Parties, prior to shipment, at Nortel's premises.
If Mirror elects to exercise such rights, then Nortel shall, prior to shipment,
advise Mirror when the Equipment or Services are available for audit or testing
at Nortel's premises. Nortel shall make space available for Mirror's personnel
to carry out the audit or testing, and provide full cooperation to Mirror's
personnel.

         (e) In the event that any Equipment or any Service provided hereunder
by Nortel fails to meet the requirements of the Specifications, Nortel shall,
subject to the applicable warranty provisions contained herein, promptly replace
the Equipment or repair it to conform to the Specifications. If the Equipment is
inspected on Site, the Parties will jointly determine the appropriate action
required in respect of any Equipment that does not satisfy the requirements of
the Specifications.

         (f) Nortel also agrees to provide to Mirror, upon reasonable request,
quality program data information such as improvement program data, inspection
data, statistical process control information, test results. [***] pertaining to
the Equipment and Services supplied under the terms of this Agreement.

         (g) Mirror's quality assurance assessment or inspections shall not
constitute a waiver or renunciation of any rights and remedies granted to Mirror
pursuant to this Agreement and shall not excuse Nortel from compliance with all
provisions of this Agreement.

                                   ARTICLE XII
                              ENVIRONMENTAL POLICY

     Section 12.1 Environment; Environmental Policy. Nortel assures Mirror that
it has a written business policy that addresses environmental protection and
preservation issues and the management and disposal of waste products, in each
case in a manner that is designed to ensure compliance with applicable Laws
relating to environmental protection and to minimize liability under such Laws.
Nortel certifies that this written business policy:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       41

<PAGE>   48

         (a) was implemented prior to the signing of this Agreement, remains in
effect and is required to be followed by all personnel under Nortel's control;

         (b) was brought to the attention of Nortel's other representatives and
subcontractors who have been requested to follow such written business policy;

         (c) states that Nortel will comply with and will cause all Nortel
Representatives to comply with Laws respecting the environment; and

         (d) is available to Mirror upon request at any time during the Term.

Each of the Parties agrees that Nortel must seek to comply with and minimize
liability under applicable environmental Laws at all times during the Term.
Nortel shall indemnify, defend and hold the Mirror Indemnified Persons harmless
from any Losses arising out of or related to a breach by Nortel of the terms of
this Section 12.1.

                                  ARTICLE XIII
                                   WARRANTIES

     Section 13.1 Hardware Warranty. Notwithstanding the Acceptance of any
Equipment, Nortel warrants to Mirror that:

         (a) New Equipment. All the Hardware supplied by Nortel under this
Agreement shall be new and unused (except for testing required pursuant to this
Agreement).

         (b) Nortel Equipment. For the period of [***] commencing on the earlier
of Final Acceptance or Commercial Launch of the portion of the Network
containing such Hardware (the "HARDWARE WARRANTY PERIOD"), all Nortel Equipment
(other than the Stand-Alone OEM Equipment) shall be free from defects in design,
material and workmanship, and will conform to the Specifications (the "HARDWARE
WARRANTY"). Notwithstanding the foregoing, the Hardware Warranty Period
applicable to RSS Equipment shall be [***] from Delivery of such RSS Equipment.
The warranty period for any Equipment or part thereof repaired or provided as a
replacement under this Hardware Warranty is [***] or the unexpired term of the
Hardware Warranty Period applicable to the repaired or replaced Equipment or
part, whichever is longer.

         (c) Scope Equipment. Nortel hereby assigns to Mirror the warranties
given to Nortel by the vendor of all Scope Equipment, and such warranties will
remain in force for a term of at least [***] from the earlier of Final
Acceptance or Commercial Launch. If Nortel is prevented from assigning such
warranties (or if the applicable warranties are for a shorter period than
[***]), then Nortel will fully warrant such Equipment (on the same terms
applicable to Hardware) for a period of [***] from the earlier of Final
Acceptance or Commercial Launch.

         (d) Stand Alone OEM Equipment. With respect to stand-alone OEM
Equipment such as, without limitation, computers, workstations and field test
equipment ("STAND-ALONE OEM

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       42

<PAGE>   49

EQUIPMENT"), Nortel will assign to Mirror the warranties given to Nortel by its
vendor of such Stand-Alone OEM Equipment. [***]

         (e) Nortel shall use its reasonable best efforts to negotiate to assign
the warranties contemplated in Section 13.1(c) and Section 13.1(d).

     Section 13.2 Application Procedures for Hardware Warranty. If, under proper
use during the applicable Hardware Warranty Period, a defect or nonconformity is
identified in any Hardware supplied by Nortel, Mirror shall notify Nortel of
such defect or nonconformity promptly after Mirror discovers such defect or
nonconformity and proceed as described in the Warranty Procedures, as set forth
in Schedule 13.2. Upon receipt of notification from Mirror of such defect or
nonconformity during the Hardware Warranty Period, Nortel shall take the
following actions:

         (a) Nortel, at its option, shall promptly repair or replace such
Hardware without charge.

         (b) Where Nortel has elected to repair or replace Hardware that has
been installed by Nortel and such Hardware cannot, without undue expense or
burden, be returned to Nortel, Nortel will promptly repair or replace the
Hardware at Mirror's Site.

         (c) If Nortel has elected to repair or replace a defective plug-in
component (i.e. a circuit board or similar electronic component that is designed
such that, in a rack or assembly of electronic equipment, it may be manually
replaced by pulling it from its socket connector and replacing it with a like
component for the purposes of maintenance or repair without changing the
functionality and/or performance of the overall electronic equipment) (a
"PLUG-IN"), Mirror is responsible for removing and reinstalling it. For any
Hardware other than Plug-Ins and RSS Equipment, Nortel shall be responsible for
removal and reinstallation of the Hardware.

         (d) Hardware returned for repair or replacement will be accepted by
Nortel only in accordance with its instructions and procedures for such returns.
The transportation expense associated with returning such Hardware to Nortel
shall be borne by Nortel. Nortel shall pay the costs of transportation of the
repaired or replaced Hardware to the destination designated by Mirror within the
Territory. The reinstallation of the repaired or replacement part, subassembly
or unit (other than a Plug-In or RSS Equipment) shall be performed by Nortel
under the supervision of Mirror. Mirror shall, upon Nortel's reasonable request,
provide any additional information concerning such defect and its occurrence.

         (e) To the extent Nortel makes generally available to its customers a
warranty extension program for Hardware, Mirror has the option to participate in
such program [***]. Mirror shall give Nortel notice of its decision to purchase
any available extension at least ninety (90) days prior to the expiration of the
warranty to be extended.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       43

<PAGE>   50

     Section 13.3 Software Warranty. Notwithstanding Acceptance of any of the
Nortel Equipment, Nortel warrants to Mirror (the "SOFTWARE WARRANTY") that:

         (a) from the Provisional Acceptance thereof, each item of Software will
be free from defects that materially affect the use of such Software and will
perform in accordance with the Specifications therefor for a period ending [***]
from the earlier of Final Acceptance or Commercial Launch (the "SOFTWARE
WARRANTY PERIOD");

         (b) with respect to Software from a supplier other than Nortel, Nortel
hereby assigns to Mirror the warranties given to Nortel by its supplier of such
items and such warranties will remain in effect for a term of at least [***]
from the earlier of Final Acceptance or Commercial Launch. [***]

         (c) Subject to the provisions set forth in Section 13.(b), Nortel will
repair or replace, whichever can be done most promptly and with the least
disruption to Mirror's business, all Software that does not satisfy the
requirements of the Software Warranty during the Software Warranty Period.

     Section 13.4 Year 2000 Warranty.

         (a) As part of the Hardware Warranty and the Software Warranty, Nortel
represents, warrants and covenants to Mirror that all Equipment provided by
Nortel to Mirror hereunder, including without limitation, any and all
enhancements, upgrades, customizations, modifications, maintenance releases and
the like delivered by or on behalf of Nortel, is "Year 2000 Compliant", as
defined herein. "YEAR 2000 COMPLIANT" means that any function of such Equipment
containing or calling on a calendar function, including, without limitation, any
function indexed to the CPU clock, and any function providing specific dates or
days, or calculating spans of dates or days, shall record, store, process,
provide and, where appropriate, insert, true and accurate dates and calculations
for dates and spans prior to, including and following January 1, 2000 and shall
correctly recognize and process the date of February 29, and any related data,
during leap years. Without limiting the generality of the foregoing, Nortel
further represents, warrants and covenants:

             (i)   That such Equipment will continue to perform in compliance
                   with all Specifications applicable thereto, without the need
                   for manual intervention, prior to, on, and after January 1,
                   2000;

             (ii)  That such Equipment will not abnormally end or abort or
                   provide invalid or incorrect results as a result of date
                   data, specifically including date data that represents or
                   references different centuries or more than one century; and

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       44

<PAGE>   51

             (iii) That such Equipment has been designed to ensure Year 2000
                   Compliance, including, but not limited to, date data century
                   recognition, calculations that accommodate same century and
                   multi-century formulas and date values, and date data
                   interface values that reflect the century.

         (b) Notwithstanding anything in this Agreement or any Schedule or
Exhibit hereto to the contrary, the warranty made in this Section shall extend
until December 31, 2001.

     Section 13.5 Warranty for Services. Nortel warrants to Mirror that all
Services will be performed in a careful, workmanlike and professional manner and
in accordance with the Specifications or any mutually agreed specification for
such Services, using material free from defects except where such material is
provided by Mirror. If the Services prove to be not so performed and if Mirror
notifies Nortel within [***] Nortel, at its expense, will promptly correct any
defects and deficiencies. If Nortel is unable to correct such defects and
deficiencies, it shall promptly render to Mirror [***]

     Section 13.6 No Trouble Found. If Nortel reasonably determines that
Equipment for which the warranty Services are claimed is neither defective nor
non-conforming, Mirror shall pay Nortel's reasonably incurred costs of handling,
inspecting, testing, and transporting such Equipment, and, if applicable,
reasonable travel and related expenses. However, if upon return to service the
item fails to operate properly, Mirror and Nortel shall jointly work to
determine the cause of such failure and, if it is determined that the failure in
fact was the result of a warranted defect or nonconformity in such item,
Mirror's obligation to pay such costs shall be extinguished, Mirror shall be
reimbursed by Nortel for any costs that Mirror paid to Nortel and Nortel's
obligations under the Hardware Warranty and/or the Software Warranty, as the
case may be, shall apply.

     Section 13.7 [***]

     Section 13.8 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       45

<PAGE>   52

         [***]

     Section 13.9 Support Services Program. Emergency Technical Assistance
Services ("ETAS") support for the Equipment shall be provided [***] to Mirror
during the Warranty Period. In addition, Nortel shall provide Technical
Assistance Services using the personnel specified in Section 9.3(i). The
description of Nortel customer and Technical Assistance Services is set forth in
Schedule 13.9.

     Section 13.10 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       46

<PAGE>   53

[***]

     Section 13.11 [***]

     Section 13.12 [***]

     Section 13.13 Equipment Changes or Substitutions by Nortel. At any time
during its performance of this Agreement, Nortel may implement changes in the
Equipment identified in Schedule 4.9, modify the drawings and Specifications
relating thereto, or substitute Equipment of a similar or more recent design.
Nortel shall provide Mirror with advance written notice of any change,
modification or substitution including notice of Nortel's intention to change
the Equipment price. The notice shall be given at least thirty (30) days in
advance of the effective date of the change, modification or substitution.
However, notice of ten (10) days will be necessary where the Parties reasonably
consider the change as minor, where there is no price change and where items (a)
through (g) set forth below are complied with. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       47

<PAGE>   54

         [***]

     If each of the foregoing requirements has been met to Mirror's
satisfaction, Mirror and Nortel shall agree upon a Change Order in accordance
with the Order Procedures. With respect to changes, modifications, and
substitutions that do not conform to the foregoing requirements, Nortel shall
notify Mirror in writing thirty (30) days prior to their effective dates. In the
event that any such change is not desired by Mirror, Mirror shall notify Nortel
within thirty (30) days from the date of notice and Nortel shall not furnish any
such changed Equipment to Mirror on any orders in process at the time Nortel is
so notified. If a change is acceptable to Mirror, such change shall be reflected
in a Change Order.

     Section 13.14 Network Expansion and Spares (Continuity of Supply).

         (a) Class A and AC Hardware Changes. Nortel shall provide Class A and
Class AC Hardware Changes [***] to Mirror for the life of the Nortel
Equipment.

         (b) Network Expansion Availability. For a period of [***] from the
expiration of the Term, Nortel shall make available to Mirror standard Nortel
Equipment that is compatible with, functionally equivalent to, and will permit
normal expansion of, the Network within the parameters defined by the
Specifications and under terms and conditions [***] mutually agreed to by
Mirror and Nortel. If Nortel discontinues the supply of compatible standard
Nortel Equipment during such period of time, then Nortel shall make available to
Mirror a commercially reasonable program for migration to Nortel's then-current
Nortel Equipment offering similar functionality.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<PAGE>   55
         (c) Discontinued Items. Nothing herein shall bar Nortel from
discontinuing individual items of Nortel Equipment. Nortel shall notify Mirror
at least [***] before Nortel discontinues accepting orders for an item of Nortel
Equipment sold under this Agreement; provided, however, that if Nortel offers
Nortel Equipment for sale that is equivalent in form, fit and function to the
discontinued Nortel Equipment, the notification period may be shorter than [***]
but in no event shorter than [***]

         (d) Spare Parts Availability. Nortel warrants the availability of spare
parts or their functional equivalent for the Nortel Equipment for a period of
[***] from the expiration of the Term. [***] Should Nortel during the
aforementioned period discontinue production of any spare parts, Nortel will
give Mirror advance written notice, and will assist Mirror to find suitable
replacements, to enable Mirror to place orders for its requirements of spare
parts or to enter into any other mutually satisfactory arrangements with Nortel
prior to discontinuance of production of such spare parts.

     Section 13.15 Disclaimer of Warranties. For all warranties set forth
hereunder, Mirror hereby agrees that Nortel shall not be liable or responsible
for any deficiencies to the extent that they result from:

         (a) Nortel's reliance on erroneous material information furnished by
Mirror to Nortel;

         (b) reasons of Force Majeure;

         (c) unauthorized material changes, modifications or revisions made by
Mirror to the Equipment;

         (d) any failure to meet the [***] materially attributable to Mirror,
including, without limitation: (i) Mirror's failure to apply Nortel's explicit
plans or instructions for System design, preventative and remedial maintenance,
frequency management, parameter adjustments and Cell Site traffic engineering
for radio capacity; (ii) Mirror's failure to implement all Nortel-recommended
recovery and System stabilization procedures; (iii) Mirror's failure to replace
defective circuit packs; (iv) Mirror's failure to follow applicable written
instructions of Nortel, where such instructions are capable of reasonable
interpretation and are unambiguous; or (v) Mirror's decision not to implement
Software patches provided by Nortel promptly upon their availability where such
Software patches are made available by Nortel to Mirror free of charge;

         (e) modification, misuse, neglect or abuse of the Equipment, except
when made, done or caused by Nortel; improper wiring, repairing, splicing,
alteration, installation, storage or maintenance, except when made, done or
caused by Nortel or its agents, or any Nortel

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       49

<PAGE>   56

Representative; use in a manner not in accordance with Nortel's written
specifications, operating instructions or Software licenses or failure of Mirror
to apply previously applicable Nortel modifications and corrections where Mirror
received written instructions to do so;

         (f) defects in Equipment neither manufactured nor supplied by Nortel
under the terms of this Agreement; and

         (g) In addition, Nortel makes no warranty with respect to Nortel
Equipment that has had any serial numbers or month and year of manufacture that
were marked on such Equipment as of the date of Provisional Acceptance thereof
removed, obliterated or altered, and with respect to expendable items,
including, without limitation, fuses, light bulbs, motor brushes and the like.

                                   ARTICLE XIV
                                    SOFTWARE

     Section 14.1 Software. Nortel reserves title to the Software supplied by
Nortel and grants to Mirror a license on the terms specified in Schedule 14.1
(the "SOFTWARE LICENSE"). Included in this initial load will be the most recent
release generally available ("GA") including, but not limited to, the license,
the initial Software base load, the embedded Software license, the base Software
features and all optional Software features purchased by Mirror that are
available on the date that is ninety (90) days prior to the date programmed for
Commercial Launch in the Time Schedule. Mirror may assign such license to an
Affiliate or to any third Person with Nortel's prior written consent, which
consent shall not unreasonably be withheld, delayed or conditioned.

     Section 14.2 Software Patches. Nortel shall provide, at no cost to Mirror,
Software patches for Software licensed hereunder to Mirror, as such Software
patches become available. Nortel shall grant Mirror a ninety-nine (99) year
right to use license for any Software patch.

     Section 14.3 Software Upgrades. Upgrades approved by Nortel for commercial
release and associated with base Software loads and new releases associated with
base Software loads will be provided [***] from the Commercial Launch of such
Nortel Equipment. Mirror shall be responsible for any purchases of additional
Hardware and related Services required to permit the installation and operation
of Software upgrades and new Software releases. [***]

                                   ARTICLE XV
                                  DOCUMENTATION

     Section 15.1 Documentation to be Provided by Nortel.

         (a) Nortel shall provide its standard Documentation package (as
described in Schedule 15.1) [***] to Mirror and as reasonably required for
Mirror's personnel who are

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<PAGE>   57

involved in the planning, Commissioning, Acceptance, Installation, O&M,
supervision, and administration of the Network or any System.

         (b) Nortel shall provide [***] one additional full set of Documentation
to Mirror upon request.

         (c) Nortel shall make the Documentation available on CD-ROM or as
mutually agreed by the Parties. Documentation provided via Nortel's CD-ROM media
may be printed and copied to the extent necessary for the O&M of the Equipment
to which the Documentation pertains. However, Mirror may not press any copies of
CD-ROM discs.

         (d) Nortel shall provide, [***] to Mirror, a copy of its Documentation
in both English and Portuguese. During the applicable Warranty Period set forth
herein, Nortel shall provide, also at no charge to Mirror, updates for such
Documentation. Nortel shall amend or replace the Documentation to reflect any
design change.

     Section 15.2 License to Documentation. Mirror is hereby granted a
royalty-free, ninety-nine (99) year and non-exclusive license and right to
reproduce, translate, modify and use the Documentation provided by Nortel and
have it used by its Subcontractors, for purposes relating to the Network. If
Mirror modifies or translates the Documentation, Nortel shall not be liable for
any errors or omissions in such Documentation arising out of the modification or
translation. [***]

     Section 15.3 Proprietary Information. All plans, drawings, designs and
specifications submitted by Mirror or on its behalf, are Confidential
Information to be protected in accordance with Article XX herein, shall remain
the property of Mirror, may be copied only in accordance with Article XX herein
and may not be disclosed to third parties by Nortel without Mirror's prior
written consent. These materials shall be returned to Mirror promptly upon its
request without any copy remaining with Nortel.

     Section 15.4 Documents to Become Property of Mirror. Documentation,
including, without limitation, plans, drawings, designs, and specifications
supplied by Nortel in connection with the Equipment shall become the property of
Mirror, provided, however, that title to Nortel's intellectual property rights
shall not be conveyed to Mirror at any time. In addition, such Documentation
supplied by Nortel is Confidential Information to be protected by Mirror in
accordance with Article XX. Mirror shall have full rights to use the
Documentation supplied by Nortel in the course of the normal O&M of the Network.

     Section 15.5 Responsibility for Documents.

         (a) Each Party supplying technical data or documents shall be
responsible for the completeness and accuracy of such technical data or
documents. If such technical data or documents are not complete or are
inaccurate, each Party shall notify the responsible Party and

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<PAGE>   58

thereafter such responsible Party shall promptly complete and/or correct such
technical data or documents.

         (b) Nortel shall make available upon reasonable notice, during normal
business hours to authorized representatives of Mirror all back-up technical
documents relating to the Project.

                                   ARTICLE XVI
                      FORCE MAJEURE AND ACTS OF PROVIDENCE

     Section 16.1 Force Majeure. "FORCE MAJEURE" shall comprise any human event
or a combination of human events that neither of the Parties could control,
foresee or prevent, and whose occurrence neither of them, their respective
agents, employees or Subcontractors acting under its direction, contributed to,
which events cause a Party or the Parties to default or delay in performing
their obligations under this Agreement. Such Force Majeure events shall include,
without limitation, the following:

         (a) acts of a public enemy, war or threat of imminent war (declared or
undeclared) occurring in or involving Brazil, revolution, riot, rebellion,
insurrection, military or usurped power, state of siege, declaration of a state
of emergency or martial law, act of terrorism or sabotage (in each case
occurring in or involving Brazil), embargo or blockade, declaration of public
calamity;

         (b) politically motivated or otherwise widespread strikes, suspensions,
interruptions, work slow-downs or other labor disruptions;

         (c) explosions, chemical or radioactive contamination or ionizing
radiation;

         (d) air crashes, objects falling from aircraft, pressure waves caused
by aircraft or aerial devices traveling at supersonic speed;

         (e) the expropriation, confiscation, compulsory acquisition,
nationalization or seizure of all or any part of Nortel's or Mirror's assets or
capital stock by any Government or any Authority; or

         (f) any exercise of sovereign or executive prerogative or similar
action by any Authority.

     Section 16.2 Acts of Providence. "ACTS OF PROVIDENCE" shall comprise any
natural phenomena that neither of the Parties could control, foresee or prevent
and whose occurrence none of them, their respective agents, employees or
Subcontractors acting under their direction contributed to, which events cause a
Party or Parties to default or delay in performing its or their obligations
under this Agreement. Such Acts of Providence include, without limitation,
epidemics, meteorites, fire, lightning, earthquake, cyclone, whirlwind,
hurricane, earthquake, tempest, unusually severe storm, drought, flood (other
than reasonably foreseeable seasonal flooding) or other unusual or extreme
adverse weather or environmental condition or action of the elements.

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<PAGE>   59

     Section 16.3 Exclusions. The following events shall not be considered
events of Force Majeure or Acts of Providence:

         (a) lack of funds;

         (b) inconvertibility of currency; or

         (c) unavailability, late delivery, or changes in cost of Nortel
Equipment, materials or spare parts for the Project.

     Section 16.4 Procedure for Calling Force Majeure or Acts of Providence.

         (a) If one Party wishes to claim relief from the performance of its
obligations on account of any event or circumstance of Force Majeure or an Act
of Providence (hereinafter, the "AFFECTED PARTY"), then the Affected Party shall
give notice to the other Party of such event or circumstance as soon as
reasonably practicable after becoming aware of such event or circumstance.

         (b) Each notice served by an Affected Party to the other Party pursuant
to this Section 16.4 shall specify the event or circumstance of Force Majeure or
Act of Providence in respect of which the Affected Party is claiming relief.
Noncompliance with the procedure specified herein shall relieve the other Party
from accepting the Affected Party's claim until notice is so provided. The
Affected Party shall, by reason of any event or circumstance of Force Majeure or
Act of Providence in respect of which it has claimed relief under this Section
16.4:

             (i)   use its best efforts to mitigate the effects of such Force
                   Majeure or Act of Providence and to remedy any inability to
                   perform its obligations hereunder due to such events as
                   promptly as reasonably practicable; provided that:

                      (1) the Affected Party shall not be obliged to take any
                          steps that would not be in accordance with Prudent
                          Industry Practices or would be beyond its control; and

                      (2) the Affected Party shall not be required to settle any
                          strikes or other labor dispute on terms that are
                          adverse to the Affected Party and not commercially
                          reasonable.

             (ii)  furnish weekly reports to the other Party regarding the
                   progress in overcoming the adverse effects of such event of
                   Force Majeure or Act of Providence;

             (iii) afford to the other Party reasonable facilities for obtaining
                   further information about the event or circumstance of Force
                   Majeure or Act of Providence; and

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<PAGE>   60

             (iv)  resume the performance of its obligations under this
                   Agreement immediately after the events of Force Majeure or
                   Acts of Providence are remedied, cease to exist or are deemed
                   to have ended under the following paragraph.

When the Affected Party is able, or would have been able if it had complied with
its obligations under this Section 16.4, to resume the performance of all of its
obligations under this Agreement affected by the occurrence of an event or
circumstance of Force Majeure or Act of Providence, then the period of Force
Majeure or Act of Providence relating to such event or circumstance shall be
deemed to have ended.

     Section 16.5 Effects of Force Majeure or Acts of Providence.

         (a) An Affected Party shall be relieved from any liability for delays
in performance or the non-performance of its obligations under this Agreement
or, in the case of Nortel, for failure to manufacture or deliver Equipment or
Services where and to the extent that such non-performance is attributable
directly to the event of Force Majeure or Act of Providence. If an event of
Force Majeure or an Act of Providence causes a delay in the construction or
Commissioning of the Network, Nortel shall use its best efforts to resolve and
complete the construction of the Network in accordance with the Time Schedule.
The Parties shall use their reasonable commercial efforts to revise such Time
Schedule to reflect the actual impact on the construction and operational
schedules of the event of Force Majeure or Act of Providence.

         (b) If any Force Majeure or Act of Providence occurs and results in a
delay or failure in performance, the non-Affected Party may elect to: (i)
terminate that part of any Order Document affected by the Force Majeure or Act
of Providence as to Equipment not already shipped or Services not already
rendered if the Force Majeure or Act of Providence continues for a period of
forty five (45) days after notifications; (ii) suspend that part of any Order
Document affected by the Force Majeure or Act of Providence for the duration of
the Force Majeure or Act of Providence, buy, sell, obtain, or furnish elsewhere
Equipment to be bought, sold, obtained, or furnished hereunder, and deduct from
any Order Document commitment the quantity bought, sold, obtained, or furnished
or for which such commitment has been made elsewhere; or (iii) resume
performance of such Order Document once the Force Majeure or Act of Providence
ceases with an option for the non-Affected Party to extend the delivery or
performance date up to the length of time the Force Majeure or Act of Providence
endured. Unless written notice is given within thirty (30) days after such
non-Affected Party is provided written notice of the occurrence of a Force
Majeure or Act of Providence, option (iii) shall be deemed selected. Nothing
contained herein or elsewhere shall impose any obligation on either Party to
settle any labor difficulty.

                                  ARTICLE XVII
                         REPRESENTATIONS AND WARRANTIES

     Section 17.1 Representations and Warranties of Nortel. Each of Nortel
Networks, Nortel Industria and Nortel Servicos represents and warrants that:

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<PAGE>   61

         (a) the persons executing this Agreement, and those identified in
Schedule 17.1(a) who are initialing the Schedules on its behalf, have express
authority to do so under specific or standing delegation and, in so doing, to
bind the each of Nortel Networks, Nortel Industria and Nortel Servicos thereto;

         (b) it is duly organized, validly existing and in good standing, if
applicable, under the laws of its jurisdiction of establishment, with full power
and authority, as the case may be, to own, lease and operate the assets held or
used by it to conduct its business as currently conducted. It has the power and
authority to enter into this Agreement and to carry out its obligations
hereunder. The execution and delivery of this Agreement and the consummation of
the transactions provided for hereby have been duly authorized by its governing
body, and no other proceeding on the part of such Party is necessary to
authorize the execution or delivery of this Agreement or the consummation of any
of the transactions contemplated hereby. This Agreement has been duly executed
and delivered by each of Nortel Networks, Nortel Industria and Nortel Servicos
and constitutes a legal, valid and binding obligation of such Party, enforceable
against it in accordance with the terms set forth herein; and

         (c) each of (i) the execution and delivery of this Agreement by such
Party and (ii) the consummation of the transactions provided for hereby does not
and will not (i) conflict with or violate any provision of the Certificate of
Incorporation, Memorandum of Association, Articles of Association, Bylaws,
Estatutos Sociais or any other document of governance of such Party, (ii)
violate, conflict with or result in the breach or termination of, or otherwise
give any other Person the right to accelerate, renegotiate or terminate or
receive any payment, or constitute a default, event of default or an event that,
with notice, lapse of time, or both, would constitute a default or event of
default, under the terms of any material contract to which such Party is a party
or is bound, (iii) result in the creation of any material pledges upon any of
their respective properties, or (iv) constitute a violation by any such Party of
any applicable Law.

     Section 17.2 Representations and Warranties of Mirror. Mirror represents
and warrants that:

         (a) the persons executing this Agreement, and those identified in
Schedule 17.1(a) who are initialing the Schedules on its behalf, have express
authority to do so under specific or standing delegation, and in so doing, to
bind Mirror thereto;

         (b) it is duly organized, validly existing and in good standing, if
applicable, under the laws of its jurisdiction of establishment, with full power
and authority, as the case may be, to own, lease and operate the assets held or
used by it to conduct its business as currently conducted. It has the power and
authority to enter into this Agreement and to carry out its obligations
hereunder. The execution and delivery of this Agreement and the consummation of
the transactions provided for hereby have been duly authorized by its governing
body, and no other proceeding on the part of such Party is necessary to
authorize the execution or delivery of this Agreement or the consummation of any
of the transactions contemplated hereby. This Agreement has been duly executed
and delivered by Mirror and constitutes a legal, valid and binding obligation of
such Party, enforceable against it in accordance with the terms set forth
herein; and

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<PAGE>   62

         (c) each of (i) the execution and delivery of this Agreement and (ii)
the consummation of the transactions provided for hereby does not and will not
(i) conflict with or violate any provision of the Certificate of Incorporation,
Memorandum of Association, Articles of Association, Bylaws, Estatutos Sociais or
any other document of governance of Mirror, (ii) violate, conflict with or
result in the breach or termination of, or otherwise give any other Person the
right to accelerate, renegotiate or terminate or receive any payment, or
constitute a default, event of default or an event that, with notice, lapse of
time, or both, would constitute a default or event of default, under the terms
of any material contract to which Mirror is a party or is bound, (iii) result in
the creation of any material pledges upon its properties, or (iv) constitute a
violation by Mirror of any applicable Law.

                                  ARTICLE XVIII
                                    INSURANCE

     Section 18.1 Insurance.

         (a) Nortel agrees to maintain, so long as it supplies Equipment,
performs Installation or other Services for any Equipment or has obligations
regarding warranties under Article XIII, the following insurance coverage as
well as all other insurance required by Law in the jurisdiction where the work
is performed:

             (i)   Worker's Compensation. Nortel shall at all times during the
                   Term provide workers' compensation and related insurance as
                   required by Law;

             (ii)  General Liability. Nortel shall at all times during the Term
                   maintain policies of insurance with a reliable insurance
                   company for comprehensive general liability with a limit of
                   not less than [***] inclusive per occurrence for personal
                   injury, bodily injury, death, automotive liability,
                   third-party liability and property damage. Nortel shall
                   include Mirror as an additional insured and a stated
                   beneficiary on all such policies.

             (iii) Self-Insurance. Nortel shall have the option where permitted
                   by Law to self-insure any or all of the foregoing insurance.

             (iv)  Demonstration of Insurance. Within thirty (30) days following
                   the Effective Date and thereafter upon request by Mirror,
                   Nortel shall provide to Mirror proof that it maintains the
                   insurance coverage as required above.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

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<PAGE>   63

                                   ARTICLE XIX
                             LIMITATION ON LIABILITY

     Section 19.1  Limitation of Liability.

         (a) Scope of Liability. Mirror's exclusive remedies and the entire
liability of Nortel and its Affiliates and their employees and agents for any
claim, Loss, damage or expense of Mirror or any other entity arising out of the
transactions or actions contemplated by this Agreement, or the use or
performance of the Network or any Equipment, System or Service, whether in
action for or arising out of the breach of contact, tort, including negligence,
indemnity, or strict liability shall be as follows:

             (i)   For delay and penalties -- the remedies set forth in the
                   relevant section of Article X;

             (ii)  For the inadequate performance or non-performance of
                   Equipment or Services or claims that they do not conform to a
                   warranty -- the remedies set forth in the applicable Section
                   of Article XIII;

             (iii) For tangible property damage and personal injury caused by
                   Nortel's negligence or willful misconduct -- the amount of
                   direct damages;

             (iv)  For everything other than as set forth above an amount of the
                   direct damages not to exceed the purchase price of the
                   Equipment and Services giving rise to Mirror's claim,
                   including awarded reasonable counsel fees and costs;

             (v)   Notwithstanding any other provision of this Agreement,
                   including without limitation the definition of Loss set forth
                   in Section 1.1, neither Party, its Affiliates and its
                   employees and agents shall be liable for any consequential,
                   indirect, moral or exemplary damages incurred by the other
                   Party of any nature whatsoever, including loss of profits or
                   revenues, anticipated savings, loss of data or associated
                   equipment, cost of capital or any other indirect economic
                   Losses. Nortel shall not be responsible for any claim, loss,
                   damage or expense to the extent resulting from Mirror's
                   negligence or willful misconduct.

                                   ARTICLE XX
                                 CONFIDENTIALITY

     Section 20.1  Confidentiality.

         (a) Confidential Information Defined. "CONFIDENTIAL INFORMATION" shall
mean such information disclosed by one Party to the other that at the time of
disclosure is designated as confidential or proprietary (or like designation),
is disclosed in circumstances of confidence or would be understood by the
Parties exercising reasonable business judgment to be confidential pursuant to
this Agreement and shall include, without limitation, formulas, processes,
designs, photographs, plans, samples, Equipment performance reports, subscriber
lists, pricing information, studies, findings, inventions, ideas, drawings,
schematics, sketches, specifications, parts lists, technical data, data bases,
software in any form, flowcharts, algorithms, and other business and

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<PAGE>   64
technical information. Confidential Information may be communicated orally, in
writing, by electronic or magnetic media, by visual observation and by other
means. The Party receiving said notification shall, from that time forward treat
such information as Confidential Information. Excluded from Confidential
Information is that which the recipient had in its possession without
confidential limitation prior to disclosure, which is independently known or
developed by either Party, which is known or becomes known to the general public
without breach of this Agreement, or which is rightfully received from a third
Person and without confidential limitation.

         (b) Exchange of Information. From time to time during the performance
of this Agreement, the Parties may deem it necessary to provide each other with
Confidential Information. The Parties agree:

             (i)   Nondisclosure. To maintain the confidentiality of such
                   Confidential Information and not to disclose it to any third
                   Person except as authorized by the original disclosing Party
                   in writing.

             (ii)  "Need to Know" Disclosure. To restrict disclosure of
                   Confidential Information only to employees and Authorized
                   Agents who have a "need to know." Such Confidential
                   Information shall be handled with the same degree of care
                   that the receiving Party applies to its own Confidential
                   Information but in no event shall such Confidential
                   Information be treated with less than reasonable care.

             (iii) Precautions. To take all necessary and appropriate
                   precautions to guard the confidentiality of Confidential
                   Information, including informing employees and Authorized
                   Agents who handle such Confidential Information that it is
                   confidential and not to be disclosed to others.

             (iv)  Ownership. That Confidential Information is and shall,
                   subject to Section 15.4, at all times remain the property of
                   the disclosing Party. No use of any Confidential Information
                   is permitted except as otherwise provided herein and, except
                   as otherwise provided herein, no license to a Party under any
                   trademark, patent, copyright, mask work or any other
                   intellectual property right, is either granted or implied by
                   the conveying of Confidential Information to such Party.

             (v)   Use. To use such Confidential Information only as required
                   for the purposes of this Agreement.

             (vi)  Reproduction. That Confidential Information furnished in
                   written, pictorial, magnetic or other tangible form shall not
                   be reproduced or copied, in whole or part, except as
                   reasonably necessary (i) by Nortel for its performance under
                   this Agreement, and (ii) by Mirror for its installation and
                   O&M of Equipment and Services furnished by Nortel under this
                   Agreement; if copied or reproduced shall bear the same

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<PAGE>   65

                    notices or legends, if any, as the originals and shall,
                    together with any full or partial copies thereof, be
                    returned, destroyed or erased (including any computer memory
                    thereof) when no longer needed for the purposes authorized
                    under this Agreement. The receiving Party shall use
                    reasonable efforts to return, destroy, or erase such
                    tangible Confidential Information (including copies,
                    reproductions or other documents containing Confidential
                    Information within ten (10) Business Days of the disclosing
                    Party's written request.

             (vii)  Legal Compulsion. The receiving Party may disclose
                    Confidential Information pursuant to any valid legal or
                    regulatory requirement or order of a court, regulatory
                    agency or other Authority having jurisdiction; provided,
                    that such disclosure shall be as narrowly tailored as
                    possible to comply with such legal or regulatory requirement
                    or order. Upon becoming aware of any such requirement to
                    disclose Confidential Information, the receiving Party
                    immediately shall so notify the disclosing Party of such
                    requirement and of the information that it proposes to
                    provide in compliance with such requirement.

             (viii) Survival. This Article shall continue until termination of
                    this Agreement; provided, however that all obligations
                    hereunder with respect to Confidential Information received
                    prior to such expiration, cancellation or termination of
                    this Agreement shall survive such expiration, cancellation
                    or termination for a period of two (2) years after
                    termination.

         (c) Agreement Disclosure. Except as may be required by, or necessary in
order to comply with, applicable Law, neither Nortel nor Mirror shall disclose
to any third party the contents of this Agreement, the schedules or any
amendments hereto or thereto for a period of two (2) years after the termination
of this Agreement without the prior written consent of the other Party, which
will not be unreasonably withheld. Nortel, to the extent appropriate, can
disclose the content of the Agreement to its Subcontractors, provided such
Subcontractors agree in writing to maintain such information confidential.
Mirror may disclose this Agreement to banks, financing entities and potential
equity investors and their respective advisors with a view to obtaining funds;
provided that said banks and financing entities and potential equity investors
agree to maintain such information confidential. In addition, Mirror's
shareholders may, as and to the extent required by, or necessary to ensure
compliance with, applicable laws, including, without limitation, applicable
securities laws and regulations, disclose this Agreement to banks, financing
entities and potential equity investors and their respective advisors with a
view to obtaining funds; provided that said banks and financing entities and
potential equity investors agree to maintain such information confidential.

         (d) Third Parties. Except as provided below with respect to Authorized
Agents, neither Party shall disclose Confidential Information of the Party
hereto to any third Person without such other Party's prior written consent. Any
such consent may be conditioned upon execution by

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the third Person of a nondisclosure agreement in a form satisfactory to the
Party whose Confidential Information is being disclosed.

         (e) Authorized Agents. For purposes of this Article XX, the term
"AUTHORIZED AGENT" includes an attorney, an expert, a consultant, a
Subcontractor, or other third Person, but only to the extent such Party is
performing or enforcing (or assisting the receiving Party to perform or enforce)
or advising the receiving Party with respect to its rights and obligations under
this Agreement, and provided that such third Person is bound by a professional
ethical obligation of confidentiality or agrees in writing (a copy of which
document will be produced to the disclosing Party at its request) to the same
conditions respecting use of Confidential Information contained in this clause
and to any reasonable conditions requested by the disclosing Party.

                                   ARTICLE XXI
                         EVENTS OF DEFAULT; TERMINATION

     Section 21.1 Mirror Events of Default. The following events shall be
considered events of default ("EVENTS OF DEFAULT") by Mirror under this
Agreement:

         (a) Mirror materially breaches a material obligation under this
Agreement, which breach remains uncured thirty (30) days after Mirror has
received notice from Nortel identifying such material breach and requesting that
such breach be cured;

         (b) Mirror makes a general assignment for the benefit of creditors, or
a petition in bankruptcy or under any insolvency law is filed by or against
Mirror and such petition is not dismissed within sixty (60) days after it has
been filed; and

         (c) ANATEL revokes the License.

     Section 21.2 Remedies for Mirror Event of Default. If Mirror commits an
Event of Default that has not been cured within the applicable cure period
provided in Section 21.1, Nortel may terminate this Agreement on sixty (60) days
notice to Mirror; provided, that if the applicable Event of Default is cured
within such sixty (60) day notice period, such notice shall be invalid and this
Agreement shall not be terminated on account of such cured Event of Default.

     Section 21.3 Nortel Events of Default. The following events shall be
considered Events of Default by Nortel under this Agreement:

         (a) Nortel or any Nortel Representative breaches a material obligation
under this Agreement, including, without limitation, [***] to provide vendor
financing (Section 7.9), [***] which breach remains uncured thirty (30) days
after Nortel has received notice from Mirror identifying such material breach
and requesting that such breach be cured;

         (b) Liquidated Damages payable by Nortel at any time pursuant to this
Agreement reach [***]; and

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       60

<PAGE>   67

         (c) Any of Nortel Networks, Nortel Industria or Nortel Servicos makes a
general assignment for the benefit of creditors, or if a petition in bankruptcy
or under any insolvency law is filed by or against Nortel and such petition is
not dismissed within sixty (60) days after it has been filed.

     Section 21.4 Remedies for Nortel Events of Default. If Nortel commits an
Event of Default that has not been cured within the applicable cure period
provided in Section 21.3, if any, Mirror may elect either to:

         (a) [***]
or

         (b) terminate this Agreement [***] on thirty (30) days notice to
Nortel; provided, that if all Events of Default are cured within such thirty
(30) day notice period and there are no other outstanding Nortel Events of
Default or other defaults under this Agreement, such notice shall be invalid and
this Agreement shall not be terminated on account of such cured Event of
Default.

     Section 21.5 Effects of Termination on Pre-Existing Rights. Each Party's
termination rights shall be without prejudice to the rights or claims it may
have hereunder against the other with respect to its performance, nonperformance
or breach of obligations hereunder. Any termination of this Agreement shall not
affect (i) any right or obligation of any Party arisen prior to termination; and
(ii) the right to use Equipment and Services acquired and paid for under this
Agreement, or otherwise exercise the rights granted hereunder provided such
rights survive termination of this Agreement pursuant to Section 24.8. In the
event termination is due to Nortel Events of Default, at Mirror's option, any
orders for Equipment or Services placed with Nortel prior to the effective date
of termination shall be completed in accordance with the terms of this
Agreement.

                                  ARTICLE XXII
                      GOVERNING LAW; RESOLUTION OF DISPUTES

     Section 22.1 Governing Law. The validity, construction and interpretation
of, and the rights and obligations of the Parties pursuant to, this Agreement
and any amendment hereto shall be governed by the Laws of Brazil.

     Section 22.2 Disputes. Except as otherwise provided in this Agreement,
every dispute, controversy or disagreement of any kind or nature between the
Parties arising out of or in connection with this Agreement (each, a "DISPUTE")
shall be resolved in accordance with the following provisions of this Article
XXII.

     Section 22.3 Executive Resolution.

         (a) Upon the occurrence of a Dispute, either Party may deliver a notice
to the other Party (a "DISPUTE NOTICE") requesting that the Dispute be referred
to the senior management of the Parties. Any Dispute Notice shall include the
names of the senior management of the Party nominated to attempt to resolve the
Dispute and a schedule of their availability during the eighteen

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       61

<PAGE>   68

(18) day period following the date of the delivery of the Dispute Notice. Any
Dispute Notice shall be delivered promptly after the Dispute arises.

         (b) Within three (3) days after receipt of a Dispute Notice, the other
Party shall provide a notice to the requesting Party (the "RESPONSE NOTICE")
indicating the names of the senior management of such other Party nominated to
attempt to resolve the Dispute, and a schedule of their availability during the
fifteen (15) day period following the date of the delivery of the Response
Notice.

         (c) During the fifteen (15) day period following the delivery of the
Response Notice, the nominated members of the senior management of the Parties
shall meet as frequently as possible and shall attempt in good faith to resolve
the Dispute.

     Section 22.4 Arbitration. In the event that any Dispute has not been
resolved within [***] of the delivery of a Response Notice, an arbitral tribunal
may be established in accordance with the following provisions:

         (a) The Party wishing to appeal to the arbitral tribunal shall notify
the other Party indicating the nature of the Dispute and the name of its
appointed arbitrator.

         (b) Within [***] from the date of receipt of the notice referred to in
Section 22.4(a), the other Party shall inform the first Party by written notice
of its appointed arbitrator. In the event such appointment is not made, the
first Party may request the President of the International Chamber of Commerce
to appoint the second arbitrator on behalf of the other Party.

         (c) Within [***] from the date of the appointment referred to in
Section 22.4(b), the appointed arbitrators shall appoint a third arbitrator who
shall preside over the proceedings. If an agreement upon the third arbitrator is
not reached, such appointment shall be made by the President of the
International Chamber of Commerce.

         (d) The arbitration shall be governed by the Rules of Arbitration of
the International Chamber of Commerce, except as provided otherwise herein, and
the arbitral tribunal shall adopt the substantive Laws of Brazil, without giving
effect to any conflict of Laws rules contained therein.

         (e) All proceedings and records of the arbitration shall be conducted
and maintained in the English language. All notices, requests, demands and other
communications shall be in writing in the English language and shall be
delivered pursuant to Section 24.4.

         (f) Any Party may apply to the arbitrators for the privilege of
conducting discovery. The right to conduct discovery shall be granted by the
arbitrators at their sole discretion with a view to avoiding surprise and
providing reasonable access to necessary information or information likely to be
presented during the course of the arbitration, without regard to whether or the
extent to which such information is confidential.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       62

<PAGE>   69

         (g) The Parties shall be given the right to cross-examine any witness
whose testimony is so admitted.

         (h) No indirect, consequential, incidental, moral or punitive damages
shall be sought by or imposed on the Parties (other than as otherwise permitted
by this Agreement).

         (i) Any confidentiality covenant established in this Agreement shall
apply to the arbitration proceedings.

         (j) The arbitration shall be conducted in the city of Rio de Janeiro,
Brazil.

         (k) Within [***] from the date the arbitral tribunal is formed, the
arbitrators shall present a detailed arbitral award, which shall be determined
based on a majority of votes. Such arbitral award shall detail and quantify the
liabilities of the defaulting Party as well as indicate the proportion of the
arbitrators' fees and expenses to be borne by each Party and terms for the
respective payment. The arbitral award shall, except in the event of fraud or
material mistake, be final, without appeal and binding upon the Parties.

         (l) Any judgment on such award must comply with the requirements of
enforceability in Brazil and shall be enforced in the same manner as if it were
a final judgment from any judicial court of such jurisdiction.

         (m) The Parties agree that either Party may have the need to obtain
immediate relief including, without limitation, specific performance and/or
injunction from a judicial court. Therefore, the filing for and obtaining of
injunctive relief (or another type of remedy that cannot be obtained from an
arbitral tribunal under applicable Law) in connection with this Agreement shall
be permitted and shall not be considered a breach hereof; provided that such
remedy or judicial relief (i) is limited to what is required to prevent imminent
damage to a Party and (ii) does not resolve the merits or substance of any such
Dispute.

         (n) If, for any reason, the arbitration proceedings or the enforcement
of any arbitral award thereunder is ultimately frustrated by any Party and the
other Party is unable to obtain appropriate legal remedy to conduct the
arbitration proceedings or to enforce the arbitral award against such Party, the
injured Party shall not be denied or restricted access to any judicial or
extrajudicial forum provided that, in such event, the Parties shall submit any
Dispute to the courts of the city of Rio de Janeiro, Brazil.

                                  SECTION XXIII
                                     [***]

     Section 23.1 [***]

     Section 23.2 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       63

<PAGE>   70

[***]

                                  ARTICLE XXIV
                                  MISCELLANEOUS

     Section 24.1 Compliance with Law. The Parties shall comply with all
applicable Laws. In addition, Nortel acknowledges that it has received and
reviewed a copy of the License and shall, in performing its obligations under
this Agreement, comply with the requirements therein governing the procurement
of Equipment and Services.

     Section 24.2 Publicity and Trademark. Nothing contained in this Agreement
shall be construed as conferring any right to use any name, trademark or other
designation of either Party hereto, including any abbreviation, or simulation of
any of the foregoing, in advertising, publicity or marketing activities. Any
publicity, advertising, etc., with regard to this Agreement or the Network that
mentions the other Party shall be mutually agreed upon in writing prior to
disclosure or dissemination.

     Section 24.3 Assignment.

         (a) This Agreement shall inure to the benefit of and be binding upon
the Parties hereto and their respective successors and permitted assigns. Except
as provided in Sections 24.3(b) and (c), neither Party shall assign or transfer
this Agreement without the prior written consent of the other Party.

         (b) Nortel may assign its rights and delegate its duties, obligations
and liabilities hereunder to a designated (direct or indirect) subsidiary
controlled by Nortel, provided that Nortel remains jointly and severally liable
as to the performance of all of its obligations by such subsidiary.

         (c) Mirror may assign its rights and delegate its duties, obligations
and liabilities to a designated (direct or indirect) subsidiary of Mirror,
provided that Mirror remains jointly and severally liable as to the performance
of its obligations by such subsidiary without requiring the consent of Nortel.
In addition, upon notice to Nortel, Mirror may assign this Agreement as security
to Persons providing debt financing for the Project and Nortel shall cooperate
with Mirror as required to effectuate such collateral assignment.

     Section 24.4 Notices.

         (a) Notices required to be given by one Party to another shall be
deemed properly given if reduced to writing and personally delivered or
transmitted by postage prepaid registered or certified post, return receipt
requested, by air courier, or by facsimile or electronic mail with confirmation
receipt to the addresses indicated below. Such notices shall be deemed to have
been given and shall be effective upon receipt.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       64

<PAGE>   71

         (b) Notice to Mirror:

             Mirror S.A.
             Avenida Republica do Chile 500, 25th andar
             20031-170 Rio de Janeiro, R.J.
             Brasil
             Tel: 5521-824-5000
             Fax: 5521-544-2740
             Attention: Chief Operating Officer

         (c) Notice to Nortel:

             Nortel Networks Corporation
             Northern Telecom do Brasil Industria e Comercio Ltda.
             Northern Telecom do Brasil Comercio e Servicos Ltda.
             Av. Das Nacoes Unidas 17891 - 10(O) Andar
             Santo Amaro - Sao Paulo
             SP - Brasil  04795-100
             Tel: 5511-882-4901
             Fax: 5511-882-4990
             Attn: Director President

     Section 24.5 Modifications to Notice Address. Either Party may change the
addresses for giving notice by providing the other Party with written
information about such change of address in accordance with Section 24.4.

     Section 24.6 Records. Both Parties shall maintain complete and accurate
records of all matters that relate to their obligations hereunder in accordance
with generally accepted accounting principles and practices, uniformly and
consistently applied in a format that will permit audit. Unless otherwise
provided in this Agreement the Parties shall retain such records for a period of
five (5) years from the date of their creation or the period required by the
applicable Laws, whichever is greater.

     Section 24.7 Severability. Any term or provision of this Agreement that is
held to be invalid, void, unenforceable or illegal will in no way affect, impair
or invalidate the remaining terms or provisions, which will remain in full force
and effect as though the Agreement did not contain the particular invalid or
unenforceable term or provision, and the rights and obligations of each Party
shall be construed and enforced accordingly. To the extent that any provision
shall be held to be invalid, illegal or unenforceable, such provision shall be
considered null and void but the remaining provisions of this Agreement shall
remain in effect. In the event the invalid illegal or unenforceable provision is
considered an essential element of this Agreement, the Parties shall promptly
negotiate replacement provisions that are acceptable to both Parties and are
valid, legal and enforceable, and come as close as possible to reflect
accurately the intentions of the Parties underlying the invalid, illegal or
unenforceable provision or provisions.

                                       65

<PAGE>   72

     Section 24.8 Survival. Termination of this Agreement, for whatever cause,
shall be without prejudice to any right or obligation of any Party hereto in
respect of this Agreement that has arisen prior to such termination or
expiration. If this Agreement is terminated by either Party prior to the
completion of Final Acceptance for any Order Document, then the Order Document's
Provisional Acceptance and Final Acceptance will be based on that Equipment
actually delivered to the corresponding Site(s) as of the effective date of
termination. The Parties' rights and obligations, which, by their nature, would
continue beyond the termination, cancellation, or expiration of this Agreement,
shall survive the termination, cancellation or expiration of this Agreement
including, without limitation, the provisions of Sections 7.8, 10.1, 10.2, 10.3,
10.4, 15.2, 15.4, 19.1, 20.1, 24.1, 24.2, 24.6, 24.8, 24.14, 24.15, and 24.17,
and Articles XIII, XIV and XXII.

     Section 24.9 Consent. Wherever in this Agreement consent, approval or
mutual agreement is required of Mirror or Nortel, the appropriate Party agrees
not to withhold or delay unreasonably such consent or approval.

     Section 24.10 Discrepancies or Inconsistencies. In the event of any
discrepancy or inconsistency between this Agreement and any of its Schedules,
the terms and conditions of this Agreement shall prevail to the extent of any
such discrepancy or inconsistency.

     Section 24.11 Amendment, Modification or Addendum. Any amendment,
modification or addendum to this Agreement shall be made by making specific
reference to the provision(s) to be amended, modified or added and shall be made
in writing signed by all Parties hereto. All other provisions not specifically
referred to in such amendment, modification or addendum shall remain unchanged
and in full force and effect.

     Section 24.12 No Waiver of Rights; No Novation.

         (a) No waiver by either Party of any default or defaults by the other
Party in the performance of any of the provisions of this Agreement:

             (i)   shall operate or be construed as a waiver of any other or
                   further default or defaults whether of a like or different
                   character;

             (ii)  shall operate or be construed as a novation of any of the
                   rights and obligations established herein; or

             (iii) shall be effective unless in writing duly executed by a duly
                   authorized representative of such Party.

         (b) Neither the failure by a Party to insist on any occasion upon the
performance of the terms, conditions and provisions of this Agreement nor time
or other indulgence granted by one Party to the other shall act as a waiver of
such breach or acceptance of any variation or the relinquishment or the novation
of any such right or any other right hereunder, which shall remain in full force
and effect.

                                       66

<PAGE>   73

     Section 24.13 Costs and Expenses. Except as otherwise provided in this
Agreement, each Party shall pay its own costs and expenses in relation to the
negotiation, preparation, execution and carrying into effect of this Agreement.

     Section 24.14 Relationship of the Parties. This Agreement shall not be
interpreted or construed to create an association, joint venture or partnership
between the Parties or to impose any partnership obligation or liability upon
either Party and neither Party shall have any right, power or authority to enter
into any agreement or undertaking for, or act on behalf of, or to act as or be
an agent or representative of, or to otherwise bind, the other Party.

     Section 24.15 Language of Agreement. This Agreement shall be executed in
the English language and the Parties shall initial a sworn, official translation
of this Agreement (without the schedules) to the Portuguese language, which
shall be prepared within ninety (90) days from the Effective Date. Such
translation shall be used in the event that presentation of a Portuguese
translation of this Agreement to any Brazilian court, tribunal or Authority is
required. In the event that an official translation of the schedules to this
Agreement is required, the Parties shall jointly agree upon such official
translation. All documents, notices, waivers and all other written
communications between the Parties in connection with this Agreement shall,
unless the Parties otherwise agree, be in English.

     Section 24.16 Third Party Beneficiaries. Except as provided in Section
20.1(c), this Agreement is intended to be solely for the benefit of the Parties
hereto and is not intended to confer any benefits upon, or create any rights in
favor of, any Person other than the Parties hereto.

     Section 24.17 Relationship of Nortel Networks, Nortel Servicos and Nortel
Industria. Each of Nortel Networks, Nortel Servicos and Nortel Industria shall
be jointly and severally liable for the obligations of Nortel under this
Agreement.

     Section 24.18 Schedules. The following Schedules shall constitute a part of
this Agreement as though included in the body hereof:

<TABLE>
<CAPTION>
                      SCHEDULE                           SCHEDULES

<S>                                                      <C>
                      Schedule 4.1                       [***]

                      Schedule 4.9                       [***]

                      Schedule 4.10                      [***]

                      Schedule 5.1(a)                    [***]

                      Schedule 6.1                       [***]

                      Schedule 7.3(a)                    [***]
</TABLE>

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       67

<PAGE>   74

<TABLE>
<S>                                                      <C>
                      Schedule 7.6(f)(vi)                [***]

                      Schedule 7.9                       [***]

                      Schedule 7.10                      [***]

                      Schedule 8.1(a)                    [***]

                      Schedule 9.1(a)                    [***]

                      Schedule 9.3(a)                    [***]

                      Schedule 9.3(d)                    [***]

                      Schedule 10.5                      [***]

                      Schedule 13.2                      [***]

                      Schedule 13.9                      [***]

                      Schedule 14.1                      [***]

                      Schedule 15.1                      [***]

                      Schedule 17.1(a)                   [***]

                      Schedule 23                        [***]
</TABLE>

                                     * * * *

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       68

<PAGE>   75

     Thus being agreed, the Parties have executed this Agreement in three (3)
counterparts, in the presence of two (2) witnesses signing below. Rio de
Janeiro, July 9, 1999.

<TABLE>
<S>                                                     <C>
------------------------------------------------------- -----------------------------------------------------
MIRROR S.A.

By:                                                     By:
    ----------------------------------------------          -----------------------------------------------

Name:                                                   Name:
      --------------------------------------------            ---------------------------------------------

Title:                                                  Title:
       -------------------------------------------             --------------------------------------------
------------------------------------------------------- -----------------------------------------------------
NORTHERN TELECOM DO BRASIL
INDUSTRIA E COMERCIO LTDA.

By:                                                     By:
    ----------------------------------------------          -----------------------------------------------

Name:                                                   Name:
      --------------------------------------------            ---------------------------------------------

Title:                                                  Title:
       -------------------------------------------             --------------------------------------------
------------------------------------------------------- -----------------------------------------------------
NORTHERN TELECOM DO BRASIL
COMERCIO E SERVICOS LTDA.

By:                                                     By:
    ----------------------------------------------          -----------------------------------------------

Name:                                                   Name:
      --------------------------------------------            ---------------------------------------------

Title:                                                  Title:
       -------------------------------------------             --------------------------------------------
------------------------------------------------------- -----------------------------------------------------
NORTEL NETWORKS
CORPORATION

By:
    ----------------------------------------------

Name:
      --------------------------------------------

Title:
       -------------------------------------------
------------------------------------------------------- -----------------------------------------------------
WITNESS:                                                WITNESS:

Name:                                                   Name:
      --------------------------------------------            ---------------------------------------------

RG:                                                     RG:
    ----------------------------------------------          -----------------------------------------------

CPF:                                                    CPF:
     ---------------------------------------------           ----------------------------------------------
------------------------------------------------------- -----------------------------------------------------
</TABLE>

                                       69
<PAGE>   76

                                  SCHEDULE 4.1

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 5 pages
have been omitted from this Schedule.

<PAGE>   77

                                  SCHEDULE 4.9

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 624
pages have been omitted from this Schedule.

                                       2
<PAGE>   78

                                  SCHEDULE 4.10

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 15
pages have been omitted from this Schedule.

                                       3
<PAGE>   79

                                 SCHEDULE 5.1(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 13
pages have been omitted from this Schedule.

                                       4
<PAGE>   80

                                  SCHEDULE 6.1

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 3 pages
have been omitted from this Schedule.

                                       5
<PAGE>   81

                                 SCHEDULE 7.3(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 148
pages have been omitted from this Schedule.

                                       6
<PAGE>   82

                               SCHEDULE 7.6(f)(vi)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 1 page
has been omitted from this Schedule.

                                       7
<PAGE>   83

                                                                    SCHEDULE 7.9

                         FINANCING AGREEMENT TERM SHEET

                                      NONE

<PAGE>   84

                                  SCHEDULE 7.10

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 14
pages have been omitted from this Schedule.

                                       9
<PAGE>   85

                                 SCHEDULE 8.1(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 5 pages
have been omitted from this Schedule.

                                       10
<PAGE>   86

                                 SCHEDULE 9.1(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 4 pages
have been omitted from this Schedule.

                                       11
<PAGE>   87

                                 SCHEDULE 9.3(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 6 pages
have been omitted from this Schedule.

                                       12
<PAGE>   88

                                SCHEDULE 9.3(d)

                                     [***]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 75
pages have been omitted from this Schedule.
<PAGE>   89

                                  SCHEDULE 10.6

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 4 pages
have been omitted from this Schedule.

                                       13
<PAGE>   90

                                  SCHEDULE 13.2

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 10
pages have been omitted from this Schedule.

                                       14
<PAGE>   91

                                  SCHEDULE 13.9

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 9 pages
have been omitted from this Schedule.

                                       15
<PAGE>   92

                                  SCHEDULE 14.1

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 3 pages
have been omitted from this Schedule.

                                       16
<PAGE>   93

                                  SCHEDULE 15.1

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 15
pages have been omitted from this Schedule.

                                       17
<PAGE>   94

                                SCHEDULE 17.1(a)

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 1 page
has been omitted from this Schedule.

                                       18
<PAGE>   95

                                   SCHEDULE 23

                                    [* * *]

Certain material (indicated by an asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission. A total of 5 pages
have been omitted from this Schedule.

                                       19

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